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Day 2 - Session 5: Global Hotspots (part 2)
- 1. Investment Conferences GLOBAL MINING INVESTMENT CONFERENCE 2010 DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2) Mining the deep ocean Ian Ransome – CEO, Diamond Fields International Ltd Opportunities in Zimbabwe David Hargreaves – CEO, Fair Trade Gemstones World Mining Hotspots Glen Jones – Exec Director, Intierra Resource Intelligence ● CITY OF LONDON ● TUESDAY-WEDNESDAY, 28-29 SEP 2010 STATIONERS’ HALL www.ObjectiveCapitalConferences.com
- 2. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
- 3. Meeting The Technical Challenges To Develop New Resources 3
- 4. NEXT FRONTIER – MARINE RESOURCES • 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
- 5. 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……. 5
- 6. 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 6
- 7. Jiddah Atlantis II POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEX Red Sea Commission Mining Licence 30 Years 7
- 8. Atlantis II Deeps Mining Depths: 1900 – 2200 metres Brine Pool: 200 metres thick 62°C – 45°C LIMIT OF BRINES 2km 8
- 9. NEXT FRONTIER HISTORY •Atlantis II Deposit Explored since 1969 • 1974 Red Sea Commission Formed to jointly Explore Atlantis II • 1977 – 1982 Preussag AG German MV VALDIVIA 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) FLOATATION PLANT • Largest known marine SEDEX MV SEDCO 445 ABOARD SEDCO 45 Deposit in the World 9
- 10. Preussag A.G. Coring Programs North Basin West Basin •Total 628 core samples East Basin •Sampling Density 0.091km² •Average Sampling depth 1 metre 8.5m Southwest Basin 10
- 11. HISTORIC RESOURCE ESTIMATE North Basin Bulk Resources Based on 9.4% top 8.5 metres Average •91 700 000 tonnes DSF • 1 890 000 tonnes Zn • 425 000 tonnes Cu • 3 750 tonnes Ag East Basin • 47 tonnes Au Zinc • 5 368 tonnes Co Minimum Resource West Basin 0.2% Southwest Basin 11
- 12. TECHNICAL CHALLENGES 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 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 12
- 13. MINING SYSTEM REQUIREMENTS: • Mine muds in hostile environment • Transport material 2000 metres to surface • Geodynamic Positioning CONVENTIONAL DRILL SHIP • Integrated Design • Capital Intensive • Operating Costs 13
- 14. STAND ALONE MINING RISER SUBSEA PLATFORM Offshore Oil Industry FPSO BUOYANCY CANS Offshore Oil Industry RISER PIPES Offshore Oil Industry RISER BUOYANCY Offshore Oil Industry RISER LIFT PUMP (RLP) Offshore Oil Industry SYSTEM MINING TOOL (SMT) Dredging Industry 14
- 15. 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 15
- 16. SYSTEM FLOW DESIGN Offshore Processing Support Vessel Offloading and Stockpiling Concentrate Transport Integrated Mining Tool Hydrometallurgy Product 16
- 17. • 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 17
- 18. FISCAL 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 18
- 19. • Minimal Infrastructure • Limited Social Disturbance • Minimal Overburden or Stripping • Minimal Waste • Increased Worker Safety – Remote Controlled at the “Mine Face” 19
- 20. BUSINESS STRATEGY • 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 20
- 21. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
- 23. Zimbabwe Country Data Location: Southern Africa, between South Africa and Zambia Area: 390,580 sq km of which 2910 is water. About 1.5x the size of the UK. It is landlocked and shares borders with Botswana, Mozambique, South Africa and Zambia. People: The population is approaching 12 millions compared with 5.2 million in 1970. The population increase of 1.5% annually presages 16 millions by 2030. Well over one million people have fled into neighbouring Botswana and South Africa. Climate: Tropical, moderated by altitude. Rainy season, November to March. Natural Resources: Coal, chromium, asbestos, gold, nickel, copper, iron ore, vanadium, lithium, tin, PGMs. GDP per capita:US $200 Unemployment: 80% World Rankings: 136/139 World Economic Forum Global Competitiveness; 4th from the bottom in the Fraser Institute Mining Survey Fair Trade Gemstones
- 24. Zimbabwe’s Mineral Wealth, 1991 Mineral/unit Output 1991 Value 1991 World Rank Chromite/t 643.098 $56M 5 Copper/t 13,811 $32M Gold/t 17.8 $195M 14 Iron Ore/Mt 1.14 $46M Lithium/t 9,186 $38M 2 Nickel/t 11,313 $92M 15 Coal/Mt 5.6 $206M PGMs/t 0 0 Diamonds 0 0 Total $665M Source: World Index of Population and Resources, David Hargreaves Fair Trade Gemstones
- 25. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
- 26. Objective Capital Global Mining Investment Conference World Mining Hotspots September 2010 Presented By: Glen Jones
- 27. The data contained in this presentation is a snapshot from the live Intierra database. The statistics are obtained mostly from daily stream of data from Stock Exchange feeds around the world, including Canada, United States, Johannesburg, Australia and London, Hong Kong and Philippines Data base is updated daily.
- 28. Intierra Database database • >40,000 companies • >3500 listed companies • >39,000 global projects • monitor all size of projects and all commodities
- 29. Assumptions • All values in $ US • Commodities when calculated can be primary or secondary • Data from Jan/09 to September/10
- 30. Active Projects 0 1000 2000 3000 4000 5,000 6,000 7,000 8,000 Australia Canada United States China Mexico South Africa Peru Brazil Argentina Top Ten Countries Chile
- 32. Number of Active Projects 18,000 0 2000 4000 6000 8000 10,000 12,000 14,000 16,000 Gold Copper Silver Uranium Lead-Zinc Nickel Coal Iron Diamonds Platinum Top Ten Commodities
- 33. Active Gold Projects Top Ten Countries Brazil: 276 projects = 2% South Africa: 237 projects = 2% Argentina: 287 projects = 2% Peru: 414 projects = 3% Chile: 216 projects = 2% Canada: China: 4055 projects = 35% 710 projects = 6% Mexico: 840 projects = 7% United States: 1368 projects = 11% Australia: 3520 projects = 30%
- 34. Active Copper Projects Top Ten Countries Philippines: 113 projects = 2% Sweden: 107 projects = 2% China: 177 projects = 3% Peru: 264 projects = 5% Argentina: 103 projects = 2% Canada: Chile: 2198 projects = 39% 269 projects = 5% Mexico: 336 projects = 6% United States: 411 projects = 7% Australia: 1633 projects = 29%
- 35. Active Silver Projects Active Silver Projects Top Ten Countries Top Ten Countries Chile: 82 projects = 2% Indonesia: 71 projects = 2% China: 96 projects = 2% Argentina: 166 projects = 4% Sweden: 66 projects = 2% Peru: 299 projects = 7% United States: 561 projects = 14% Canada: 1299 projects = 32% Australia: 639 projects = 16% Mexico: 771 projects = 19%
- 36. Active Uranium Projects Top Ten Countries Tanzania: 47 projects = 1% Nambia: 43 projects = 1% Argentina: 57 projects = 2% South Africa: 62 projects = 2% Mongolia: 65 projects = 2% Kyrgyzstan: Sweden: 70 projects = 2% 38 projects = 1% United States: 517 projects = 16% Australia: 1348 projects = 43% Canada: 950 projects = 30%
- 37. Active Lead-Zinc Projects Top Ten Countries Argentina: 45 projects = 2% Ireland: 35 projects = 1% Sweden: 58 projects = 2% China: 107 projects = 4% Indonesia: 24 projects = 1% Peru: 147 projects = 5% United States: 157 projects = 6% Mexico: 330 projects = 12% Canada: 1029 projects = 37% Australia: 813 projects = 30%
- 38. Active Nickel Projects Top Ten Countries United States: 40 projects = 2% Indonesia: 39 projects = 2% Finland: 44 projects = 2% China: 45 projects = 2% Russia: 36 projects = 2% South Africa: 147 projects = 5% Brazil: 50 projects = 2% Philippines: 57 projects = 3% Australia: 859 projects = 44% Canada: 784 projects = 39%
- 39. Active Coal Projects Top Ten Countries Russia: 36 projects = 2% India: 32 projects = 2% Mongolia: 52 projects = 3% England: 30 projects = 2% China: 89 projects = 5% Indonesia: 91 projects = 5% Canada: 136 projects = 8% Australia: 564 projects = 33% South Africa: 175 projects = 10% United States: 516 projects = 30%
- 40. Active Iron Projects Top Ten Countries Chile: 40 projects = 3% United States: 23 projects = 2% Sweden: 40 projects = 3% Russia: 42 projects = 3% Peru: 20 projects = 1% India: 58 projects = 4% China: 93 projects = 7% Brazil: 117 projects = 8% Australia: 848 projects = 60% Canada: 124 projects = 9%
- 41. Active Diamonds Projects Top Ten Countries Sierra Leone: 26 projects = 2% Namibia: 23 projects = 2% Angola: 31 projects = 3% Tanzania: 19 projects = 2% Congo (Democratic Republic of): 41 projects = 4% Canada: Botswana: 526 projects = 50% 47 projects = 4% Brazil: 56 projects = 5% South Africa: 128 projects = 12% Australia: 175 projects = 16%
- 42. Active Platinum Projects Top Ten Countries Finland: 12 projects = 1% Botswana: 12 projects = 1% Sweden: 16 projects = 2% China: 27 projects = 3% Russia: 31 projects = 3% Tanzania: 11 projects = 1% United States: 50 projects = 5% South Africa: 155 projects = 15% Canada: 503 projects = 49% Australia: 202 projects = 20%
- 44. Global Gold Projects by Status Grass Roots (no drilling) 6198 38% Exploration (limited drilling) 4732 30% Advanced Exploration 2454 16% Pre-Feasibility/Scoping 524 3% Feasibility 393 4% Construction 180 1% Operating Mines 1211 8% Total 15,692 100%
- 45. Global Copper Projects by Status Grass Roots (no drilling) 2770 39% Exploration (limited drilling) 2285 32% Advanced Exploration 1006 14% Pre-Feasibility/Scoping 280 4% Feasibility 193 4% Construction 80 1% Operating Mines 571 8% Total 7,185 100%
- 46. Global Silver Projects by Status Grass Roots (no drilling) 1620 31% Exploration (limited drilling) 1507 30% Advanced Exploration 867 17% Pre-Feasibility/Scoping 249 5% Feasibility 170 5% Construction 81 2% Operating Mines 519 10% Total 5,013 100%
- 47. Global Uranium Projects by Status Grass Roots (no drilling) 2088 57% Exploration (limited drilling) 985 26% Advanced Exploration 340 9% Pre-Feasibility/Scoping 95 3% Feasibility 37 2% Construction 14 1% Operating Mines 70 2% Total 3,629 100%
- 48. Global Lead - Zinc Projects by Status Grass Roots (no drilling) 1141 35% Exploration (limited drilling) 1068 32% Advanced Exploration 537 16% Pre-Feasibility/Scoping 134 4% Feasibility 83 4% Construction 40 1% Operating Mines 299 9% Total 3,293 100%
- 49. Global Nickel Projects by Status Grass Roots (no drilling) 895 38% Exploration (limited drilling) 699 30% Advanced Exploration 342 15% Pre-Feasibility/Scoping 104 4% Feasibility 66 4% Construction 28 1% Operating Mines 213 9% Total 2,347 100%
- 50. Global Coal Projects by Status Global Coal Projects by Status Grass Roots (no drilling) 274 14% Exploration (limited drilling) 168 9% Advanced Exploration 366 19% Pre-Feasibility/Scoping 89 5% Feasibility 92 7% Construction 61 3% Operating Mines 863 44% Total 1,913 100%
- 51. Global Iron Projects by Status Global Iron Projects by Status Grass Roots (no drilling) 455 26% Exploration (limited drilling) 293 17% Advanced Exploration 330 19% Pre-Feasibility/Scoping 146 8% Feasibility 93 8% Construction 26 1% Operating Mines 384 21% Total 1,727 100%
- 52. Global Diamonds Projects by Status Grass Roots (no drilling) 598 48% Exploration (limited drilling) 378 31% Advanced Exploration 111 9% Pre-Feasibility/Scoping 21 2% Feasibility 18 2% Construction 8 1% Operating Mines 80 7% Total 1,214 100%
- 53. Global PGE Projects by Status Grass Roots (no drilling) 417 37% Exploration (limited drilling) 379 33% Advanced Exploration 137 12% Pre-Feasibility/Scoping 44 4% Feasibility 44 6% Construction 10 1% Operating Mines 101 9% Total 1,132 100%
- 54. Early Late Gold 68% 23% Copper 71% 22% Silver 61% 27% Uranium 83% 14% Lead-Zinc 67% 24% Nickel 68% 23% Coal group 23% 31% Iron Group 43% 35% Diamonds 79% 13% PGE’s 70% 22%
- 56. Global Drilling Projects Global Drilling Projects Global Drilling Projects June 2009 to August 2010 Exploration 835 Advanced Exploration 582 Pre-Feasibility/Scoping 259 Operating 190 Feasibility 137 Construction 51 Grass Roots 21 Care/Maintenance 3 Total 2078
- 57. Global Drilling Global Drilling June 2009 to August 2010 Australia 720 Canada 512 United States 116 Mexico 107 Brazil 41 Peru 32 Ghana 32 Chile 31
- 68. Global Rare Earth Metals Projects
- 70. Global Property Transactions Total: 744 Amount: US$ 38.4B
- 72. Global Property Transactions Number $Amount Gold 259 8.7 B Copper 91 5.5 B Silver 88 3.8 B Uranium 20 871.4 M Lead-Zinc 52 2.1 B Nickel 20 862.9 M Coal Group 35 4.9 B Iron Group 9 2.7 B Diamonds 10 451.4 M PGE’s 12 186.2 M Molybdenum 16 1.1 B
- 73. www.intierra.com
- 74. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations: