welcome [] · kmf divided into high grade and
TRANSCRIPT
Welcome to
Presentation 12 April 2005 Presentation 12 April 2005
ASSMANG MANGANESE
CONTENTS CONTENTS l Introduction and Geology l Ore Resources l Mining Processes & Capabilities l Recent History l The Future
Assmang Assmang Introduction Introduction
Assmang’s manganese mining operations are
situated in the Northern Cape
Province of South Africa.
Cato Ridge
Port Elizabeth
Black Rock Mine Operations
Cape Town
J ohann esburg
Durban
Introduction to Introduction to ASSMANG ASSMANG
l Operates in the Northern Cape Province
l High Grade Manganese at Nchwaning
l Low Grade Manganese at Gloria
l Exports ore through Port Elizabeth and Durban l Supplies Assmang Subsidiary Feralloys plant at Cato Ridge
Beeshoek
Black Rock
KMF divided into HIGH GRADE and LOW GRADE areas
Two major grades required by
World Market: High + 48 Mn Low + 38 Mn
Inhomogeneous grade
distribution within each area
Mamatwan *
Wessels * * Nchwaning 2
Gloria *
Nchwaning 3 *
Preparation for converting to the new mining licence has reached an advanced stage
STRATIGRAPHIC STRATIGRAPHIC COLUMN OF COLUMN OF THE KMF THE KMF
HOTAZEL HOTAZEL FORMATION FORMATION
NO 1 Mn OREBODY
NO 2 Mn OREBODY
Mn MARKER Manganese Orebodies 6 m thick.
Parting between No1 and No 2 orebody = 20 m
No 2 body lower in Mn and Higher in Fe
GLORIA MINING AREA GLORIA MINING AREA
CURRENT MINING DEVELOPMENT
NCHWANING MINING AREA NCHWANING MINING AREA
CURRENT MINING DEVELOPMENT
CONTENTS CONTENTS l Introduction and Geology l Ore Resources
– Gloria – Nchwaning Orebody No 1 – Nchwaning Orebody No 2
l Mining Processes & Capabilities l Recent History l The Future
GLORIA MINING AREA RESOURCES GLORIA MINING AREA RESOURCES
GRADE DISTRIBUTION Mn < 36 %
Mn 36 38 %
Mn > 38 %
GRADE Measured Indicated Inferred Total > 38% 7,690,930 65,128,908 38,597,425 111,417,263 36 38% 1,864,250 17,608,171 10,435,152 29,907,573 < 36% 31,126 243,452 21,220,071 21,494,649 TOTAL 9,586,306 82,980,531 70,252,648 162,819,485
NCHWANING MINING AREA NCHWANING MINING AREA – – No 1 Ore body No 1 Ore body
Mn < 46 % Mn 46 48 % Mn > 48 %
GRADE Measured Indicated Inferred Total > 48% 3,299,083 63,780,416 67,079,499 46 48% 1,564,436 10,999,802 12,564,238 < 46% 3,983,415 64,588,325 68,571,740 TOTAL 8,846,934 139,368,543 148,215,477
NCHWANING MINING AREA NCHWANING MINING AREA – – No 2 Ore body No 2 Ore body
Mn < 46 % Mn 46 48 %
GRADE Measured Indicated Inferred Total > 48% 0 46 48% 1,845,834 1,845,834 < 46% 180,112,897 180,112,897 TOTAL 181,958,731 181,958,731
CONTENTS CONTENTS l Introduction and Geology l Ore Resources l Mining Processes & Capabilities l Recent History l The Future
ROOM & PILLAR MINING ( 7 x 7 m pillars, 8 m wide Roadways)
BLASTING ON DAY SHIFT ( Face advance between 3.3 and 4.0 m)
12 t LHD & 25 t BELL TRUCKS MOVE ORE TO NEAREST CONVEYOR
UNDERGROUND CRUSHING TO –150 mm
WASHING & SCREENING PLANT ON SURFACE
ORE IS SPLIT INTO VARIOUS SIZE FRACTIONS
SURFACE STOCKPILES @ 300 – 400 t EACH TRACKED ON COMPUTER
SELECTED SURFACE STOCKPILES LOADED ONTO TRAINS
INSTALLED CAPACITIES INSTALLED CAPACITIES l Total current hoisting capabilities are 5.8 mtpa – Nch 2 vertical # @ 1.6 Mtpa (High Grade) – Nch 3 decline @ 2.8 Mtpa (High Grade) – Gloria decline @ 1.4 Mtpa (Low Grade)
l Current surface plant capacities are 4.5 Mpta – Gloria Surface plant @ 1.83 Mtpa – Nchwaning surface plant @ 2.67 Mtpa
l Ore loading and Rail capacity ± 3.5 Mtpa l Estimated capacity of Port Elizabeth Harbour ± 4.2 Mtpa
CONTENTS CONTENTS l Introduction and Geology l Ore Resources l Mining Processes & Capabilities l Recent History
– Financials – Nchwaning 3 project
l The Future
OPERATING PROFIT/REVENUE OPERATING PROFIT/REVENUE RATIO RATIO
46.58%
39.05%
44.28%
54.75%
45.53%
28.81%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
98/99 99/00 00/01 '01/02 '02/03 '03/04
OPERATING PROFIT (R 000) OPERATING PROFIT (R 000)
R234,557
R168,202
R239,416
R401,312
R333,545
R207,227
R0 R50,000 R100,000 R150,000 R200,000 R250,000 R300,000 R350,000 R400,000 R450,000
98/99 99/00 00/01 '01/02 '02/03 '03/04
REVENUE (R 000) REVENUE (R 000)
R503,603
R430,740
R540,718 R732,997
R732,529
R719,314
R0
R100,000
R200,000
R300,000
R400,000
R500,000
R600,000
R700,000
R800,000
98/99 99/00 00/01 '01/02 '02/03 '03/04
RECENT COST/TON FIGURES RECENT COST/TON FIGURES R170
R163
R140 R158 R175
R168
R0 R20 R40 R60 R80 R100 R120 R140 R160 R180
98/99 99/00 00/01 '01/02 '02/03 '03/04
RECENT SALES PROFILE RECENT SALES PROFILE
1,475,060
1,360,171
1,444,961
1,403,615
1,581,560
1,794,155
0 200,000 400,000 600,000 800,000
1,000,000 1,200,000 1,400,000 1,600,000 1,800,000
98/99 99/00 00/01 '01/02 '02/03 '03/04
RECENT CAPITAL RECENT CAPITAL EXPENDITURE EXPENDITURE Rm Rm
80 93
85 110
218
0
50
100
150
200
250
99/00 00/01 '01/02 '02/03 '03/04
NCHWANING 3 – Objectives
l Achieve a 20% reduction in unit operating cost
l Loader and hauler operations are to be separated
l Underground facilities required to handle multiple grades simultaneously
l Minimize ore handling between face and surface plant
Nchwaning 3
Shaft infra structure
l WHY ? – To replace diminishing reserves
– Establish low cost mine
– Provide for Future Growth
l WHAT ? – Men & Material Shaft
5.6m dia & 419m deep
– Vent shaft 5.6m raisebored
– Decline 4.4 x 8.2m x 2200 m @ 11.5
degrees
NCHWANING 3 PROJECT STATUS
l Project Start Date was June 1999 l Planned completion date August 2003 l Revised completion date March 2005 l Planned capital cost R 517 million l Revised capital cost R 775 million l Delays and Additional costs due to:
– Design changes – Delays due to water and ground conditions – Main contractor defaulting
26 May 2004 First production of high grade ore from the underground mining operation
NCHWANING 3 PROJECT Contingency plan
l In order to offset the negative effects of the delayed project a temporary ore pass was introduced
l This allowed for 409 633 production tons since 26 May 2004
l All the production was specifically suited to Cato Ridge, resulting in improved efficiencies.
Current Current Underground Underground Development Development
Decline Shaft
Persons Shaft Ventilation Shaft
Workshop
Crusher
Upper Silo Tunnel
Lower Silo Tunnel
Run of Mine Bunkers
The commissioning of the Nchwaning 3 mine marks the beginning of a new era in the long history of Assmang. The future of Assmang as a reliable supplier of high
quality manganese ore is assured.
CONTENTS CONTENTS l Introduction and Geology l Ore Resources l Mining Processes & Capabilities l Recent History l The Future
THE FUTURE THE FUTURE l ASSMANG have access to an excellent high grade orebody on the No 1 manganese seam.
l ASSMANG can relatively easily access and mine the No 2 medium grade orebody to supply blast and electric furnaces.
l ASSMANG has made significant capital investments to position for future demand.
l Sales volumes are increasing while operating costs are improving.
l ASSMANG is actively pursuing continuous improvement policies
FUTURE PLANS FUTURE PLANS l ASSMANG aims to be a reliable supplier of high grade ore for the next 30 years.
l ASSMANG aims to significantly grow market share in China by supplying medium grade to the blast and electric furnaces.
l This strategy could see a doubling of ore output within the next 6 to 8 years.
l ASSMANG is committed to optimising the available ore resources by constructing DMS and Sinter facilities by 2010.
l ASSMANG will remain aggressively involved in the logistics of ore transport and shipping to ensure the anticipated volume growth
CONCLUSION CONCLUSION l At ASSMANG energy is not
everything … …. it is the only thing.
l We do it better !