A Successful Upstream Integration in the Heavy Mineral Sands Industry JM FOURCADE CEO, TIZIR LIMITED 1
Agenda 1. Creating a Joint Venture Between MDL, Australia and Eramet, France 2. Developing a Huge TiO2 and Zr Mining Project in Senegal 3. Starting up a New Global Actor in the Heavy Mineral Sands Industry 2
Creating a Joint Venture Between MDL and Eramet History ERAMET SA Mining and Metallurgy Group 15000 People, 22 Countries Nickel, Manganese, Super Alloys 2008 Tinfos Acquisition (incl. TTI) 2009 2010 Strategic Analysis TTI Upstream Integration Project MINERAL DEPOSITS LTD Extensive Experience in H M S Successful Gold Project in Senegal Concession of Grand Cote in 2007 DFS of the GCO Project 2010 Downstream Integration & Partnership CREATION OF TIZIR LIMITED OCTOBER 2011 JV 50/50 3
Creating a Joint Venture Between MDL and Eramet 4
Creating a Joint Venture Between MDL and Eramet TiZir Titanium and Iron (TTI) Tyssedal Ilmenite Upgrading Plant 5
Creating a Joint Venture Between MDL and Eramet Tyssedal What does it do? Smelts ilmenite to produce a titanium-rich slag and pig iron co-product Input Pre-reduction Smelting Outputs Customers Ilmenite Rotary Kiln Electric Furnace Titanium Slag High Purity Pig Iron Pigment Producers (Sulphate process) Foundries ~345ktpa mostly sourced ~200ktpa containing ~80% TiO 2 ~110ktpa 6
Senegal Ownership: TiZir 90%, Senegal Govt. 10% Concession: 25 years extendable 7
Grande Côte What makes it a quality project? Simple Ore Body Assemblage Water Scale Quality Project No overburden Minor vegetation Free flowing sands Minimal slimes Uniform grain size 10.7% zircon 74.5% ilmenite 2.5% rutile 3.2% leucoxene 90.9% VHM Shallow water table + Deep aquifer Allows dredge mining 100km x 4 km ore body 7,000 t/hr dredge 36MW power station Own railway and port facilities 85ktpa zircon + 575ktpa ilmenite Long mine life 8
55 Mt/y Mining Process Flow Sheet 55 Mt/ y Dredge 7000 t/h 7000 t/h 1.7 % HM 1 Mt / y Wet Concentration Plant (WCP) Spirals Tailings 1.7% HM Processing Magnetic Stockpiles 100 t/ h 1 M t/y Truck Stockpile of Heavy Mineral Concentrate (HMC) Wet High-Intensity Magnetic Separation (WHIMS) Plant Non- Magnetic Tailings Wet Tables Mineral Separation Plant (HMC to MSP) 140 t/h Non-Magnetic Zircon/Rutile/Leucoxene/Kyanite/Quartz Tailings Tailings Ilmenite Dry Mill MSP Dry Mill 30 t / h Tailings Ilmenite Zircon Rutile Leucoxene Products NB All Tailings return to Dredge Pond 9
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TiZir Products Zircon Avgannual production 85 Kt Production description / target markets Premium quality low in key impurities Suitable for full spectrum of zircon consumers Container shipments provides logistics benefits for customers Ilmenite 400 Kt 54% TiO 2 Feedstock for Tyssedal plant or market 175 Kt 59% TiO 2 Feedstock for chloride pigment production Rutile 6 Kt Premium grade and fine grain size ideal for welding sector Leucoxene 10 Kt Suitable for welding sector Titanium slag 200 Kt Premium quality slag suitable for Sulphate process Pig Iron 110 Kt Premium quality for high quality iron castings 11
Safety is our Culture During the Construction Phase over 11 million hours reached with only 3 lost time injuries (FR = 0.27) 400,000 hours of safety training delivered Peak construction workforce of 2,400, inclusive of 240 expats on site Expected long term workforce of 660 total incl. 65 expats initially Emergency Response Team & Clinic operational from start of construction Fire, injury & critical emergency drills carried out weekly Transition to Operations Zero Harm Policy Adaption of the philosophy 12
Community & Social Responsibility Creating employment and investing in education, health & infrastructure Substantial positive impact on the local economy Local kindergarten built and supported Successful relationship with local village elders Land compensation rates inline with World Bank standards Assistance with infrastructure ongoing water bores, water towers, roads, etc Refurbishment of local schools program underway 13
Operating to world-class environmental standards Sound Environmental Management Potential risk identification Develop & Implement an environment management system based on ISO 14001. Follow IFS standards and Equator Principles Rehabilitation plan proven, tested & approved (Re-vegetation to use native plant species seed collection started) Monitoring program in place Partnerships with local service providers (farmers, waste management) 14
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Starting up a New Global Actor in the Heavy Mineral Sands Industry From a SP TiO2 Feedstocks HP Pig Iron Player, to a CP + SP TiO2 Feedstocks HP Pig Iron High TiO2 products Zrfor ceramics, refractory + other applications Player Within very versatile and cyclical markets, our size (circa 8% of the world MS) and our process allow us the flexibility and the ability to adapt to the changing conditions. 16
Starting up a New Global Actor in the Heavy Mineral Sands Industry TTI optionality creates market flexibility Ilmenite 18% Pigment production feedstock source (Outside China) Ilmenite 61% Slag 39% Slag 46% Syn Rutile +UGS 18% Rutile 18% 17