jose viveiros, bahia mineração: update on pedra de ferro, caitité, in bahia
DESCRIPTION
Jose Viveiros, Chief Executive Officer, Bahia Mineração delivered this presentation at the 2013 Americas Iron Ore conference. Americas Iron Ore is one of the most respected annual gatherings for North and South American iron ore markets. The agenda features iron ore industry and market developments; new project developments and expansions in North and South America; overview of steel demand; iron ore spot market price; infrastructure and transport challenges and investment opportunities. After five successful editions, the Americas Iron Ore Conference consolidates as the largest meeting place for executives and professionals of the steel and iron ore industry in the region. For more information, please visit the conference website: https://www.immevents.com/mining-conference/americas-iron-ore-conferenceTRANSCRIPT
www.enrc.com Phone: +44 (0) 20 7389 1440
Eurasian Natural Resources Corporation PLC
Pedra de Ferro Project
November 2013 Belo Horizonte
2
Disclaimer
This presentation includes statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ‘believes’, ‘estimates’, ‘plans’, ‘projects’, ‘anticipates’, ‘expects’, ‘intends’, ‘may’, ‘will’, or ‘should’ or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include matters that are not historical facts or are statements regarding the Group’s intentions, beliefs or current expectations concerning, among other things, the Group’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed upon them. Such statements are subject to risks and uncertainties, most of which are difficult to predict and generally beyond the Group's control. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The Group cautions you that forward-looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if the assumptions underlying any of these statements prove incorrect, the Group’s actual results of operations, financial condition and liquidity and the development of the industry in which the Group operates may materially differ from those made in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the Group’s results of operations, financial condition and liquidity and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations, changes in business strategy, political and economic uncertainty. Subject to the requirements of the Prospectus Rules and the Listing Rules or any applicable law or regulation, the Group expressly disclaims any obligation or undertaking publicly to review or confirm analysts expectations or estimates or to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
The information set out in this presentation relates to the six months ended 30 June 2011 and, unless otherwise stated, is compared to the corresponding period of 2010, the six months ended 30 June 2010.
Where applicable in the document all references to ‘t’ are to metric tonnes, to ‘kt’ are to thousand metric tonnes, and ‘mt’ to million metric tonnes unless otherwise stated.
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Agenda
1. Pedra de Ferro Project Location
2. Mineral Resource Statement
3. Production Plan
4. DSO Schematic Flowsheet (1 Mtpa)
5. Beneficiation Plant: Process Route (19.5 Mtpa)
6. DSO Current Operation
7. The West-East Integration Railway
8. BAMIN Private Port (Aritaguá): basic design
9. Environmental Licensing
10. Main Achievements (2010 to 2013)
11. Next Steps
BELO
HORIZONTE
CAETITE SALVADOR
IHEUS
BRAZIL
BAHIA
MINAS GERAIS
BAHIA
STATE
RAILWAY 534km
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Population: 14,000,000
Demographic density: 25 hab/km2 (15º)
GDP per capital Bahia: approx. US$4,500 (19º)
GDP per capita Brazil: approx. US$10,000
Pedra de Ferro Project Location
Mineral Resource Statement
PdF Mineral Resources:
Rock Type /
Classification Tonnes (Mt) Fe (%) Al2O3 SiO2 Mn (%) P (%) PPC (%)
Hematite Measured 58 66.74 1.00 2.11 0.159 0.089 0.70
Indicated 92 66.79 0.83 2.48 0.251 0.037 0.55
M&I 150 66.77 0.89 2.34 0.215 0.057 0.61
Inferred 21 65.60 0.84 2.82 0.237 0.050 0.76
Itabirite Measured 215 33.64 1.22 48.62 0.421 0.056 0.85
Indicated 377 31.21 1.05 52.45 0.326 0.029 0.71
M&I 592 32.09 1.11 51.06 0.360 0.039 0.76
Inferred 476 33.8 1.3 48.2 0.30 0.05 0.87
Combined Measured 273 40.67 1.17 38.74 0.366 0.063 0.82
Indicated 469 38.16 1.01 42.69 0.311 0.031 0.68
M&I 742 39.08 1.07 41.24 0.331 0.043 0.73
Inferred 497 35.2 1.3 46.3 0.29 0.05 0.87
Total 1,239 37.50 1.18 43.24 0.313 0.044 0.78
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Production Plan
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Year 1 to 3: 1Mtpa DSO - Direct
Shipping Ore (construction period)
Year 4 to 8: 10Mtpa DSO and 7-8
Mtpa Concentrate (>67% Fe)
Year 9 to 19: 6Mtpa Direct
Reduction Pellet Feed and 10-
11Mtpa Blast Furnace Concentrate
Total output: 265Mt of products
Production
Sequence 1
(Yr. 1 to 3) 1 Mtpa (20% LO + 80% Natural Fines)
Sequence 2
(Yr. 4 and 8)
10 Mtpa (20% LO + 80% Natural Fines)
and 7-8 Mtpa Conc. >67% Fe
Sequence 3
(Yr. 9 and 19)
6 Mtpa Conc. >68% Fe + 10-11 Mtpa >
67%
Total output ~ 265 Mt of products
DSO Schematic Flowsheet (1 Mtpa)
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ROM HEMATITE
-800 mm
-12,5mm
+32,0mm
Secondary Crusher
Feeder
Tertiary Crusher
Screening
Primary Crusher
Product Stockpiles
-32,0mm + 12,5mm
Beneficiation Plant: Process Route (19.5 Mtpa)
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Ball Mill
grinding4
Coarse
Magnetic
Separation
1st Desliming
stage 2nd
Deslimng
stage
HF
Screening
Rougher
Cleaner
Tailing
Dam
Concentrate
Thickening Tailings
Thickening
Concentrate
Belt Filtering Concentrate
Pile
Recycle
Water
Tank
Surge
Pile Fine
Magnetic
Separation
SM
Concentrate
Tailing
3rd
Deslimng
stage
Flotation
Concentrate
Current DSO Operation – Quality of the product sold
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DATE VOLUME Fe SiO2 Al2O3 P Mn H2O LOI +12,5mm +6,3mm +4,75mm +1mm +0,150mm-0,150mm
270.132 65,14 4,39 0,96 0,077 0,022 2,14 1,24 4,92 11,47 8,62 18,46 15,19 41,34
CHEMICAL (%)DSO Delivered SIZE DISTRIBUTION (%)
Current DSO Operation – Mine Pit
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Current DSO Operation – equipment
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Primary Crusher Secondary Crusher
Screening Tertiary Crusher
Current DSO Operation - logistic
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41 Km
FCA Railway
Aratu Port
Belo Horizonte
Current DSO Operation - logistic
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• Loading capacity of two trains of 32 wagons each ( 2.000 t / train ) per day;
• Facilities (maintenance workshops, road scale truck, product stockyard, waterspray , etc.).
Railroad Terminal
Licínio de Almeida
The West-East Integration Railway
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Miba
534 km from Caetité to Ilhéus.
Bahia State Government main project.
Supported by Federal Government through PAC
“Economic Acceleration Program” (guaranteed
budget allocation for construction).
VALEC – Federal Government Railway
Company - will be responsible for construction,
maintenance and railway Operational Control
Centre (OCC) => “open access model”.
BAMIN will be responsible for their rolling stocks
operation and maintenance, paying a trackage
right tariff to VALEC to recover railway
investment, maintenance and operational
control costs.
Trackage right tariff defined by ANTT (National
Agency for Land Transportation) in a buying
capacity contract to be signed with VALEC.
The West-East Integration Railway: construction status
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Total executed (average) 27,9 % August
25,2 % July
The West-East Integration Railway: construction status
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S
E
C
T
I
O
N
1
The West-East Integration Railway: construction status
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S
E
C
T
I
O
N
2
The West-East Integration Railway: construction status
18
S
E
C
T
I
O
N
3
The West-East Integration Railway: construction status
19
S
E
C
T
I
O
N
4
BAMIN Private Port (Aritaguá): basic design
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Environmental Licensing
Main Licenses
MINE / PLANT/
WATER
SUPPLY
PRIVATE
PORT
ARITAGUÁ
Preliminary License
(LP)
Completed
(Apr 2010)
Completed
(Nov 2012)
Installation License
(LI)
Completed
(Nov 2010) 2014 (P)
Operating License
(LO) 2016 (P) 2016 (P)
Main Achievements (2010 to 2013)
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Marketing: 45 steel mills visited. MOUs and LOIs for future iron ore sales signed with 19 steel mills
Railway
Provisional
Environmental
License
Sintering
and
Pelletizing
Tests
(Concentrate)
Sintering
and
Pelletizing
Tests
(Concentrate)
100%
BAMIN
Sintering/
Pelletizing
Tests
3 Chinese
Mills
100% MIBA
51% MPB
Railway
Installation
Environmental
License
BAMIN Mine
Installation
Environmental
License
Railway
Signature
Construction
Contract
May 2010 Sep 2010 Oct 2010 Nov 2010 Dec 2010 2011-2012
Public hearings for
Aritaguá Port
GU received
(300 Kt)
DSO Implementation
Metallurgical tests
(DSO)
Marketing of the
DSO products
2013
Start of
DSO
Production
and Sales
Conclusion
of the first
offtake
Contract
Negotiation
for the 2014
contract
ongoing
Next Steps
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Increase the DSO production to the target of 80,000 t/ month;
Obtain the LI for the Aritaguá Private Port and start the construction;
Sign the Transportation Agreement for the FIOL Railway with VALEC.