Sakura Ferroalloys Project Metal Bulletin Conference Singapore, 01 st April 2015 P R E S E N T E D BY: T I A A N VA N A S W EG E N D I R E C TO R A S S M A N G C H A I R M A N S A KU R A F E R R OALLOY S
Project Scope Construct two 81 MVA furnaces (HCFeMn and SiMn alloys) and associated infrastructure in the Samalaju Industrial Park, Sarawak, Malaysia 2
Samalaju Industrial Park Samalaju Industrial Park Bakun dam Bintulu port 3
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Project Shareholders 3 Shareholding Companies Contribution to the project 54.36% Raw material Operating experience/ Technical support/ Sales agent 26.64% Facilitator Area sales agent Joint venture Mn alloy producer 19.00% Product Off-take Technical Advisor 5
Project details Capital Capacity USD 328 million 110ktpa of HCFeMn and 70ktpa SiMn Land Site of 100 ha (potential for phase 2) Power Labour Water Logistics Signed PPA for 75MW to 80MW hydro - power Approx 1000 people - Construction phase 188 people - Operational phase 115 people - Outsourced to non core functions 500 1000 m 3 /day Ore: 400kt pa Reductant: 130kt pa Final product: 180 kt pa 6
Smelting process flow Ferromanganese Mn Ore Coke Fluxes +/- 2300 kwh Silicomanganese Mn Ore / Sinter Quartzite Coke +/- 4700 kwh Slag Crushing Slag dump Crushed and screened HCFeMn as saleable product 110 000 tpa Crushed and screened SiMn as saleable product 70 000 tpa 7
Project progress to date Dates Sept 2011 June 2012 February 2013 July 2013 September 2013 October 2013 November 2013 December 2013 February 2014 April 2014 Quarter 4 2015* Major milestones achieved First visit to site of shareholders Project Pre-feasibility completed and approved Detailed Feasibility Study completed and approved Board approval obtained from Shareholders Obtained Environmental Impact Assessment approval Land offer and Power Purchase Agreement signed Metix appointed as Lump Sum Turn Key contractor Commenced with site clearing activities Ground breaking ceremony on site First concrete pour Furnace foundation Commission 1 st Furnace* 8
Project progress Greenfield site 2013 9
Project site March 2014 10
Project site Sept 2014 11
Project site March 2015 (1) 12
Project site March 2015 (2) 13
Furnace building March 2015 14
Furnace building and casting bay area - completed. 15
Safety The significant target of 2 million LTI free hours was reached on 5 Feb 15 (currently ~ 2.5 million hours) 16
Project future milestones May 2015 Dates June 2014 July 2015 August 2015 September 2015 Major milestones Raw material orders, continue with recruiting of personnel Commission HT yard, receive power from SEB First raw material delivered to Bintulu port First raw material delivered to site, operating teams on site Commissioning of Raw Material Section Quarter 4/2015 Commission and production ramp-up of Furnace 1 Quarter 1/2016 Commission and production ramp-up of Furnace 2 Quarter 2/2016 Achieve full operating capacity 17
Is the project still on track? Timelines are tight, but achievable Samalaju Port development progressing, interim arrangement ex Bintulu port Support from State Institutions Investment incentives finalised Power supply from SEB on schedule Operations team progress as planned 18
Is Malaysia still attractive? Power Access to hydro power at competitive rates Labour Available at competitive rates Land Availability Samalaju Industrial Park 100 ha available Environment Need to do DEIA, site earmarked for Heavy Industrial Use Logistics New port developed to serve site < 5km, accept handymax size vessels Other 100% foreign ownership possible, corporate tax rate 25%, 10 year tax exemption possible Malaysia attractive option, near markets in East 19
Project key success factors Project construction to be executed within timeline and budget Guaranteed ore supply from Assmang Experienced project and operations teams sourced Competitively priced hydro electricity - SEB Excellent infrastructure - Samalaju Project equity funded no loans Large, efficient production units Shareholder synergy and support Future expansion options 20
Samalaju Port lay-out 21
Questions? 22