ASSMANG LIMITED BEESHOEK IRON ORE 12/04/2005. GLOSAM 1950 s

Transcription

1 ASSMANG LIMITED BEESHOEK IRON ORE 12/4/25 GLOSAM 195 s

2 GLOSAM 195 s MINING OPERATIONS

3 National Locality Map NAMIBIA NORTHERN CAPE 74 Km 64 Km BOTSWANA Beeshoek Black Rock Sishen Kimberley FREE STATE 114 Km NORTH WEST Bloemfontein Cato Ridge ZIMBABWE NORTHER PROVINCE Durban MOZMBIQUE MPUMALANGA Machadodorp Pretoria Maputo Johannesburg SWAZILAND GAUTENG LESOTHO KWAZULU NATAL Richards Bay 861 Km EASTERN CAPE Saldanha Cape Town WESTERN CAPE Port Elizabeth

4 KUMBA Proposed new Railway line Distribution of ore deposits Southern Area Existing Railway line

5 Distribution of Ore deposits Northern Area KUMBA

6 GLOSAM 195 s LOADING FACILITIES

7 Geological Map

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11 IRON ORE RESOURCES 24/25 PIT/FARM MEASURED RESOURCES INDICATED RESOURCES INFERRED RESOURCES TOTAL RESOURCES TONNES TONNES TONNES TONNES Fe K 2 O Al 2 O 3 P SiO 2 BEESHOEK NORTH 35,771,383 8,, 43,771, BEESHOEK NORTH NEW PROJECTS 61,846,872 61,846, BEESHOEK SOUTH 67,49,893 24,, 91,49, DETRITAL 7,998,6 9,, 7,998,6 SOUTHERN FARMS 165,19,149 7,998,6 41,, 25,17, BRUCE 296,21, 296,21, KING/MOKANING 291,, 7,, 361,, DETRITAL 12,, 12,, NORTHERN FARMS 587,21, 82,, 669,21, Total 752,13,149 7,998,6 123,, 874,128,

12 GLOSAM 195 s MINING OPERATIONS

13 Drilling and Sampling Blast Preparation Ore Benificiation Blast Simulation

14 21 25m wide ramp system 1m bench height >5m berm width <51 degree slope angle

15 Classification of Products R.O.M RESOURCES Uncontaminated Feed tons available per annum 5.6 Mil Wash & Screening Plant Fines 1,68 mil Lumpy 2.2 mil W&S Material Balance Lumpy 37% Fines 26% DRI 19% Sludge 18% DRI PRODUCT.8 Mil /T/A FINES PRODUCT 2.16 Mil/T/A LUMPY PRODUCT 3.4 Mil /T/A JIG RESOURCES Possible Contaminated Feed tons per annum 3. Mill Jig Plant Fines,48 mil Lumpy 1.2 mil JIG Material Balance Lumpy 37.8% Fines 16.2% Sludge 15.% Discard 31.%

16 BEESHOEK 195 s BLASTING OPERATIONS

17 8, 7, 6, RANDS ' 5, 4, 3, 2, 1, YEARS Revenue

18 25, 2, RANDS ' 15, 1, 5, YEARS Operating Profit

19 18, 16, 14, RANDS ' 12, 1, 8, 6, 4, 2, YEARS Capital Expenditure

20 COST/TON 1994 TERMS 6,, 3.4 R 33 R 31 5,, R 29 Tons produced 4,, 3,, 2,, R 27 R 25 R 23 R 21 Cost R/ton R 19 1,, R 17 Jun 98 Jun 99 Jun Jun 1 Jun 2 Jun 3 Jun 4 Jun 5 Jun 6 Year Tons produced Cost/ton Jun 94 terms R 15

21 7,, 6,, 5,, 4,, 3,, 2,, 1,, Production

22 PHASE 1 OPTIMIZE CURRENT BEESHOEK/OLYNFONTEIN OPERATION (COMPLETED) PHASE 2 DEVELOP NORTHERN AREA

23 Kumba Proposed new Railway line Distribution of ore deposits Southern Area Existing Railway line

24 OPTIMIZE CURRENT BEESHOEK/OLYNFONTEIN OPERATION Develop BN Pit Area R 75 mil (Extend LOM by 3.4 years) Jig Plant completed 21 process contaminated ore Enhance Quality Control / Product Quality Fully exploit available reserves in Beeshoek North & South Mines Increase production to 6 mil in 24 Beeshoek Life of Mine options beyond 29 lower depreciation costs Immediate closure Sell Beeshoek BEE company Maintain production at lower levels Potential to optimize Beeshoek infrastructure

25 PRODUCTION RATE PHASE I T O N S 6,, 5,, 4,, 3,, 2,, 1,, YEAR Lumpy Fines DRI

26 DEVELOP NORTHERN AREA Establish new infrastructure ± R 15 R2 Million Modular approach critical phase in and growth as Beeshoek is depleted Closer to export markets additional tonnage on railway line 35 year Life of Mine Ongoing Exploration to extend LOM, increase confidence and increase reserves

27 Distribution of Ore deposits Northern Area Kumba

28 PRODUCTION RATE PHASE I AND II T O N S 16,, 14,, 12,, 1,, 8,, 6,, 4,, ,, YEAR BEESHOEK BKM

29 1. Complete bankable feasible study 9 % accuracy of Northern Area at a cost of R 38 mil 2. Increase production from 8 MT in Year 29 to 15.5 MT in Year 215 (Saldanha/Coega) 3. Build up capacity as required Modular plant in line with capacity expansion 4. Ongoing exploration to improve geological resources database. 5. Establish infrastructure to provide capacity for increased production power, water, etc.

30 6. Complete Environmental Impact Assessment and Social Impact Assessment 7. Conclude capacity increase negotiations Saldanha/Coega 8. Final Permitting and Licensing well advance through liaison with DME 9. Board approval final decision November Construction commence January 26

31 GENERAL ISO 91: 2, 141: 1996 and OHSAS 181:1999. Certification Continual Improvement Dewatering of Beeshoek Pits R 28 mil HIV/Aids management plan 4.8 % prevalence

32 CONCLUSION Excellent available Resources Long term live of mine 3 years Experienced pool of expertise to transfer to BKM Good financial results under difficult conditions R/$ Sufficient Rail Capacity will be available to grow exports/market penetration Excellent cooperation between ARM / ASSORE / ASSMANG Future capacity potential to supply local demand.

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