ian ransome: mining the deep ocean (day 2 - session 5: global hotspots)
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Day 2- Session 5: Global Hotspots Mining the Deep Ocean Objective Capital Global Mining Investment Conference 2010 Stationers' Hall, City of London 28-29 September 2010 Speaker: Ian Ransome - International Council on Mining & MetalsTRANSCRIPT
GLOBAL MININGINVESTMENT CONFERENCE 2010
STATIONERS’ HALL ● CITY OF LONDON ● TUESDAY-WEDNESDAY, 28-29 SEP 2010
www.ObjectiveCapitalConferences.com
Investment Conferences
Mining the deep oceanIan Ransome – CEO, Diamond Fields International Ltd
DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2)
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GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
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Atlantis II
Meeting The Technical Challenges To Develop New Resources
Meeting The Technical Challenges To Develop New Resources
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• Increased Global Demand for mineral resources• >80% of Global mineral resources beneath the Oceans• Rise in Metal prices combined with development in deep water
technology now make Marine mining feasible• Land Resources becoming scarcer
• Increased Global Demand for mineral resources• >80% of Global mineral resources beneath the Oceans• Rise in Metal prices combined with development in deep water
technology now make Marine mining feasible• Land Resources becoming scarcer 4
NEXT FRONTIER – MARINE RESOURCES
• Transition to Marine Resource Exploration and Mining happening at depth up to 5 000 metres NOW….
• Marine Mineral Resources reserved by major countries such as China, Russia, Germany, France etc…….
• Witnessing the birth of a NEW industry…….
• Transition to Marine Resource Exploration and Mining happening at depth up to 5 000 metres NOW….
• Marine Mineral Resources reserved by major countries such as China, Russia, Germany, France etc…….
• Witnessing the birth of a NEW industry……. 5
NEXT FRONTIER – MARINE RESOURCES
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NEXT FRONTIER – SMS AND SEDEX DEPOSITS
Marine Seafloor Massive Sulphides and Sedimentary Exhalative Suphide Deposits formed at Ocean Ridge Spreading Ridges at depths between 1 500 – 3 000 metres
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Atlantis II
Jiddah
Atlantis II
POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEXRed Sea Commission Mining Licence 30 Years
2km
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Atlantis II Deeps
LIMIT OF BRINES
Atlantis II
Mining Depths: 1900 – 2200 metresBrine Pool:200 metres thick62°C – 45°C
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Atlantis II
NEXT FRONTIER
HISTORY
•Atlantis II Deposit Explored since 1969• 1974 Red Sea Commission Formed to jointly Explore Atlantis II• 1977 – 1982 Preussag AG German Exploration Company contracted to undertake Feasibility Study of Atlantis II Deeps• Resource, Processing, Metallurgical, Pre-Pilot Mining and Environmental Studies Successfully Completed (US$28 Million)• Largest known marine SEDEX Deposit in the World
MV VALDIVIA
MV SEDCO 445
FLOATATION PLANT ABOARD SEDCO 45
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Atlantis II
1 metre
Preussag A.G. Coring Programs
•Total 628 core samples•Sampling Density 0.091km²•Average Sampling depth 8.5m
North Basin
East BasinWest Basin
Southwest Basin
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Atlantis II
HISTORIC RESOURCE ESTIMATE
Bulk Resources Based on top 8.5 metres Average
•91 700 000 tonnes DSF• 1 890 000 tonnes Zn• 425 000 tonnes Cu• 3 750 tonnes Ag• 47 tonnes Au• 5 368 tonnes Co
Minimum Resource
9.4%
0.2%
Zinc
East Basin
West Basin
Southwest Basin
North Basin
The Atlantis II Project Is A Technical Challenge• Deposit is located in 2000 meters of water• 70km from nearest shore• New processing and mining technology required• No existing infrastructure • Elevated Brine Pool temperatures 45°C – 62°C• Fine Particle Size Distribution (PSD) of Ore 80% < 2
microns
A Commercial risk• Worlds Deepest mining operation and First deep sea mud
deposit to be mined
The Atlantis II Project Is A Technical Challenge• Deposit is located in 2000 meters of water• 70km from nearest shore• New processing and mining technology required• No existing infrastructure • Elevated Brine Pool temperatures 45°C – 62°C• Fine Particle Size Distribution (PSD) of Ore 80% < 2
microns
A Commercial risk• Worlds Deepest mining operation and First deep sea mud
deposit to be minedBut:
Largest known and only tested Marine SEDEX in the World. It has the potential to focus expertise and innovation on a new frontier -- deep sea mineral resources
But:Largest known and only tested Marine SEDEX in the World. It has the potential to focus expertise and innovation on a new frontier -- deep sea mineral resources
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Atlantis II
TECHNICAL CHALLENGES
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Atlantis II
MINING SYSTEM
CONVENTIONAL DRILL SHIP
• Integrated Design• Capital Intensive• Operating Costs
REQUIREMENTS:
• Mine muds in hostile environment• Transport material 2000 metres to surface• Geodynamic Positioning
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Atlantis II
STAND ALONE MINING RISER
SYSTEM MINING TOOL (SMT)
Dredging Industry
RISER LIFT PUMP (RLP)
Offshore Oil Industry
RISER BUOYANCYOffshore Oil Industry
RISER PIPESOffshore Oil Industry
BUOYANCY CANSOffshore Oil Industry
SUBSEA PLATFORMOffshore Oil Industry FPSO
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Atlantis II
Offshore Processing Challenges
• Ore is fine grained sulphide muds
• Pre-Pilot Mining Operations undertaken by Preussag (1980’s) successively concentrated offshore using floatation to 30% Zn @ 70% Recoveries
• New processing techniques using sea water are being developed to achieve recoveries up to 85%
• Filtration using Rotary Vacuum Filters or Disc Nozzle Filters – Slurry Transport
Offshore Processing Challenges
• Ore is fine grained sulphide muds
• Pre-Pilot Mining Operations undertaken by Preussag (1980’s) successively concentrated offshore using floatation to 30% Zn @ 70% Recoveries
• New processing techniques using sea water are being developed to achieve recoveries up to 85%
• Filtration using Rotary Vacuum Filters or Disc Nozzle Filters – Slurry Transport
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Atlantis II
SYSTEM FLOW DESIGN
Integrated Mining Tool
Support Vessel
Offshore Processing
Concentrate Transport
Offloading and Stockpiling
HydrometallurgyProduc
t
• Early studies by the Red Sea Commission show that neither sensitive coral reefs or fauna within surface layers affected
• The Atlantis II Project can be developed with minimal environmental impact
• The environment at Atlantis II is naturally variable
• Possibility of Pumping Tailings under brine layer by return riser
• Early studies by the Red Sea Commission show that neither sensitive coral reefs or fauna within surface layers affected
• The Atlantis II Project can be developed with minimal environmental impact
• The environment at Atlantis II is naturally variable
• Possibility of Pumping Tailings under brine layer by return riser
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Atlantis II
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Atlantis II FINANCIAL VIABILITY
• Project Currently in Engineering Feasibility Stage• Project Costings Dependent on final Design Selection
• Initial Financial Viability Assessment undertaken using updated Preussag A.G. Feasibility Study (1981)• Variable IRR returns calculated ranging from 16.1% - 22% Production Model Dependent• Expected IRRs to range from 25%-35% from new Feasibility study using improved technologies, improved resource base and recoveries
FISCAL
• Minimal Infrastructure
• Limited Social Disturbance
• Minimal Overburden or Stripping
• Minimal Waste
• Increased Worker Safety – Remote Controlled at the “Mine Face”
• Minimal Infrastructure
• Limited Social Disturbance
• Minimal Overburden or Stripping
• Minimal Waste
• Increased Worker Safety – Remote Controlled at the “Mine Face”
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Atlantis II
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Atlantis II • 26 Other Deeps Known in
Red Sea
• Vast Areas of Ridge Complex Unexplored
• Major Potential for Massive SEDEX , SMS Deposits
• Technology developed from Atlantis II Project will be applied to developing these further prospects
• Operational Cost Advantages working from Saudi Arabia
• Diamond Fields set to Be at forefront in Deep Water Marine Resources – the Next Frontier
BUSINESS STRATEGY
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners: