On Diamonds We Build. Namdeb Operations. 29 March General Manager O N D I A M O N D S W E B U I L D

Transcription

1 Presented by: Namdeb Operations Chris Sivertsen General Manager 29 March 2006

2 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

3 What is Namdeb? Northern Areas Pocket Beaches Atlantic 1 A collection of Mines Mining Area 1 SPERRGEBIET Orange River Mines ETOSHA PAN Republic of

4 What is Namdeb? on a World Class Placer deposit

5 Where did the diamonds come from? ORANGE ORANJEMUND UPINGTON ORANGE ORANGE JOHANNESBURG KIMBERLEY VAAL

6 History First Diamond found in 1908 by Zacharias Lewala Extensive Mining by 1912, around Luderitz CDM formed in 1920 Focus around Oranjemund from 1934 Marine Mining first tested in 1960 Namdeb created in 1994 Over 80 million carats produced to date

7 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

8 Safety 2005 ACHIEVEMENTS 4 Million Fatality Free Man Shifts reached 30% Reduction in Minor Injuries against 2004 Retained triple NOSCAR status Lowest ever LTI Severity rate NOSA NAMIBIA AWARDS All 3 operations placed on the International top 100 list for world class SHE performance MA1 Best Surface Plant All operations awarded 5 Star Platinum status

9 Safety % REDUCTION IN LOST TIME INJURIES LTI LTI Target 2005 Fatalities

10 Safety Reduction in Lost Time Injury Frequency Rate GROUP AVERAGE 2005 = L.T.I.F.R. Target 2005

11 AIDS RELATED DEATHS (ART benefit) Namdeb Hospital 163 Employees and/or Life Partners now on ART Deaths

12 Environmental ISO Audits Namdeb to be recommended for certification to new ISO 14001: 2004 version Simplified Environmental Management System Pilot Study Pocket Beaches site 2,3 and 4 selected Rehabilitation and Closure Draft plans for Orange River Mines and Pocket Beaches Class 0 Closure cost estimate completed Pilot studies initiated

13 Environmental - 2 before Skilpadberg Rehabilitation Trial after

14 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

15 SBP Revenue Analysis by Area 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, MA1 excl MDP Marine Dredge Orange River Northern Areas Beach & Marine Midwater Atlantic 1

16 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

17 Production Trend Carats ' Namdeb Carat Production Atlantic1 Midwater Beach & Marine Northern Areas Orange River Marine Dredge MA1 excl MDP

18 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

19 Continuous Improvement Total mineable accreted 2.4m tons & cts 3 Plant Accreted Beaches Longer life U 70 to U 90 accreted 1.3 m tons & cts

20 Continuous Improvement Plant Turnaround Strategy Configure Process for Maximum Recovery Optimise Plant Flow Sheet Minimise Working Cost Maintain a Skilled & Motivated Team

21 Continuous Improvement Elizabeth Bay Mine Reconciled MCF Focus group initiated Mine Call Factor Focus Group Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06

22 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

23 Strategic Business Planning JUNE 2005 SBP PRODUCTION PROFILE 2 Plant Dump 3 Plant 3 Plant Dump 4 Plant 4 Plant Dump PTF PTF Dump Dredge RTR Pocket Beaches Marine Dredge Daberas Sendelings EBay Fluvial Footwall 1 Plant Dump OMS South OMS North Auchas Obib Auchas Lower Arrisdrif Bogenfels Land Inter Tidal Ultra Shallow Base Case Most Likely Blue Sky

24 Declining Land Resource Carat Production ('000) June 2004 SBP Carat Profile Years 30.7 Blue Sky Most Likely Base Case

25 Where are our Projects? Elizabeth Bay Pocket Beaches Sendelingsdrift Inshore Projects Dump Retreatment Marine Dredging Recovery Projects Wet Overburden Mining South N DOUGLAS BAY MINING LICENCE LÜDERITZ ELIZABETH BAY MINE ELIZABETH BAY MINING LICENCE BOGENFELS MINING LICENCE Bogenfels Arch ATLANTIC1 MINING LICENCE MINING AREA No1 MINING LICENCE Sendelingsdrif ORANGE RIVER Daberas MINING LICENCE Auchas. ORANJEMUND ALEXANDER BAY ORANGE RIVER

26 Average Stone Size varies 0.25 HOTTENTOTS BAY Elizabeth Bay LUDERITZ Chameis ORANJEMUND

27 Where do we focus? Reward Bubble Size Represent Capital Investment (N$) Do it! Share? AMV 2 WOMS(Dredge2) Invest to reduce risk Sendelings Off-Beach System AMV 3 Park Risk

28 Historical Recoveries from Land and Sea LAND 70.4 m TOTAL CARATS MINED SPERRGEBIET & COAST Namdeb Midwater 0.8 m SEA 8.2 m Atlantic m MDC 1.7 m SEA PRODUCTION

29 Focus moving from Land to the Sea Carat Production ('000) June 2004 SBP Carat Profile Base Case Years Carat Production ('000) Land Marine June 2004 SBP Carat Profile Most Likely Years Carat Production ('000) Land Marine June 2004 SBP Carat Profile Blue Sky Land Marine Years

30 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

31 Sampling & Prospecting LAND N$ MILLION EXPENDITURE 1994 TO 2005 Today s Money SEA '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

32 Sampling linked to SBP JUNE 2005 SBP PRODUCTION PROFILE 2 Plant Dump 3 Plant 3 Plant Dump 4 Plant 4 Plant Dump PTF PTF Dump Dredge RTR Pocket Beaches Marine Dredge Daberas Sendelings EBay Fluvial Footwall 1 Plant Dump OMS South OMS North Auchas Obib Auchas Lower Arrisdrif Bogenfels Land Inter Tidal Ultra Shallow DUMPS FLUVIAL FOOTWALL ORANGE RIVER Base Case Most Likely Blue Sky BG36 Liberation Plant

33 Sendelingsdrif Bulk Sample (2007) * * * * INFERRED RESOURCE cts * INDICATED RESOURCE * cts * * * 2006 Sample pits *

34 Pocket Beach Site 2 Extension Mega trench complete Theft during treatment Cementation in west Drilling confirms gravels extension to south and west Resource extension confirmed north and south

35 Sampling linked to SBP - 2 JUNE 2005 SBP PRODUCTION PROFILE 2 Plant Dump 3 Plant 3 Plant Dump 4 Plant 4 Plant Dump PTF PTF Dump Dredge RTR Pocket Beaches Marine Dredge Daberas Sendelings EBay Fluvial Footwall 1 Plant Dump OMS South OMS North Auchas Obib Auchas Lower Arrisdrif Bogenfels Land Inter Tidal Ultra Shallow BOGENFELS Resource Estimation (Geostatistical Analysis) Base Case Most Likely Blue Sky ITC ULTRA SHALLOW Jetrig Seawalker

36 Agenda 1. WHAT IS? Location Deposit History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS Capital program Pocket Beaches Marine Dredging Project Elizabeth Bay LoM Extension Inshore Project

37 Strategic Projects CAPITAL PROGRAM FOR 2006 IS N$956m Atlantic 1 Dredging Trial, 400 Inshore, 21 Exploration, 45 Earthmoving, 115 Strategic Projects, 12 No. 3 Plant Upgrade, 93 Other, 50 Geological Sampling Recovery, 28 Accommodation Upgrade, 35 ORBIT, 21 Pocket Beaches, 136

38 SITE 11 & 12 Bogenfels Arch Seal Colony Plant Location Site 2 5 DREIMASTER BAY Plum Pudding Island Sinclair Island Roast Beef Islets DERNBERG LUDERITZ BUNTFELDSCHUH BAKERS BAY CAMP ATLANTIC ATLANTIC OCEAN OCEAN Barge 77 GREEN PRECIPICE NORTH ROCK SOUTH ROCK ORANJEMUND SITE 3 & 4 SITE 2 FORT REEF CHAMEIS BAY Chamais Gate

39 Pocket Beaches Site 2 new concept

40 Site 11 & 12 - Project Concept Stripping Gravel Carats : C B Dredge Overburden Removal Cut-off Wall : 21.5 million tons : 1.1 million tons A B A E D C B234B235XB F Gravel Mining

41 PBA Phase 2 Major Risks Cut-off Wall Integrity Security when mining & treating high grade material Dredge water supply! Duration of pond dewatering! Environmental & Stakeholder Issues Project timing! - 3 rd Party Audits - Testwork - Prototype Equipment (SWI Trials) - Specialist Studies - Contingency Plans - Stakeholder Involvement!!! Assurance Plan

42 Marine Dredging Project OBJECTIVES Evaluate the potential to economically extract lower grade marine resources with TSHD technology. ( 0.1 ct/m2) High mining rates (Target > 900m2/hr) Carat Production from January 2007 Lower capital / high working cost operation Expansion potential in low grade deposit

43 The concept

44 How?

45 The Pipeline

46 Pumping!!!

47 SURVEY DURING DREDGING OPERATIONS BEFORE DREDGING AFTER DREDGING MINING AREA

48 Environmental (8%) All marine life: Baseline surveys done Monitoring will continue for 14 months Overflow monitoring Overflow appears very clean Monitor samples taken Sea overflow Land overflow

49 Atlantic 1 Trial RESULTS Mining Rate 7 weeks of dredging completed m 2 mined Average 920 m 2 / hr Depletion Initial test panel depletion low ( < 60%) Draghead changes made Additional mining and sampling Significant improvement ( 75%)

50 Atlantic 1 Trial P1D06 depletion 75% 87% 65% 82% 64%

51 Elizabeth Bay Project: N$ 450 million New Secondary Liberation Building, with secondary crushers, tertiary crushers and mills. New Primary Liberation Area with water-flush primary crusher New Sea Water Intake system, new CCR, new fine tailings disposal system, new workshop, new Recovery and other infrastructure

52 A World Class Plant with a long future

53 Key Statistics of a fast track project Project feasibility launched: October 2001 Project approval: March 2003 Construction began: September 2003 Construction completed: November 2004 Ramp-up slower than expected Series 3 Construction Contractors were 84% Namibian overall

54 Inshore Project - Area of interest R & D Project

55 We have come a long way! Attempts in the 1980 s

56 The Jet Rig

57 The Jet Rig - 2

58 The Seawalker

59 Gully Mining Machine Prototype

60 We are changing our paradigms...

61 Thank you!