debeers venetia mine final

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DeBeers Venetia Mine Final

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  • SAFE, SIMPLE AND EFFECTIVE!

    De Beers Venetia Mine

    WelcomesAnglo American plc

  • SAFE, SIMPLE AND EFFECTIVE!

    Venetia Mine Vision

    Our Venetia an efficient and cost-effectivediamond operation responsibly securing our prosperity

    SAFE, SIMPLE AND EFFECTIVE!

  • SAFE, SIMPLE AND EFFECTIVE!

    Processes

    A culture of continuous business improvement and standardization

    entrenched in all processes within the workplace to ensure the short

    term viability and long term sustainability

    DELIVERY

    Reputation High levels of confidence instilled with our

    shareholders and key stakeholders (employees and external) by managing the mine within

    acceptable and understandable levels of risk.

    QUALITY

    Financial

    Sufficient cash generated to serve the FoC commitments and fund the growth and future expansion needs in such a way as not to compromise any of the covenants.

    COST

    People

    Competent, innovative and passionate people and teams committed to continuous improvement

    MORALE

    Our Definition of Victory

    ZERO HARM to People, Planet & Profit Always

    SAFETY

  • SAFE, SIMPLE AND EFFECTIVE!

  • SAFE, SIMPLE AND EFFECTIVE!

    Resources

  • SAFE, SIMPLE AND EFFECTIVE!

    Kimberlite Cluster

    K03

    K02

    K11

    K08K05

    K06

    K12K04

    K07K16

    K01

    K18

    K10

  • SAFE, SIMPLE AND EFFECTIVE!

    Kimberlite Cluster

    K03

    K02

    K11

    K08K05

    K06

    K12 K04K07 K16

    K01

    K18

    K10

  • SAFE, SIMPLE AND EFFECTIVE!

    Resource Models

    North

    K01 and K02 Modelled

    to 1044m below surface

    K03 modelled

    to 600m below surface

    Satellites modelled

    to various depth

    K01K02K03

    K04

  • SAFE, SIMPLE AND EFFECTIVE!

    Post SBP Resource Classification

    Low Indicated

    High Inferred

    Medium Inferred

    Very Low Inferred

    2009 SBP Open Pit Mining Limit Current Mining Surface

    Surface to B63

    Surface to B13

    B64 to B87

    Surface to B14

    B15 to B27

    B28 to B58

    B59 to B72

    B36 to 49

    Surface to B35

    K03 K02 K01 K04

  • SAFE, SIMPLE AND EFFECTIVE!

    Resources

    0

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    K01 Indicated Tones K01 Inferred Tones K2 Indicated Tones K2 Inferred Tons K3 Inferred Total Carats

    Open Pit to end of Cut 3

    Open Pit Cut 4

    Underground Phase 1

    Underground Phase 2

    Tons 125.9Carats 168.4

    Tons 57.9Carats 74.8

    Tons 83.5Carats 97.8

    Tons 41.9Carats 36.6

  • SAFE, SIMPLE AND EFFECTIVE!

    Current Production

  • SAFE, SIMPLE AND EFFECTIVE!

    Total Waste MinedBudget = 22.68mT

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    0200400600800

    1,0001,2001,4001,6001,8002,0002,2002,400

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    YTD (Mar) 7% up vs budget

    2009 Budget = 1.5Mt YTD Actual = 4.86mT YTD Budget = 4.54mT

  • SAFE, SIMPLE AND EFFECTIVE!

    Kimberlite MinedBudget = 3.63mT

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    YTD (Mar) 1% up vs budget

    2009 Budget = 1.5Mt YTD Actual = 0.91mT YTD Budget = 0.90mT

  • SAFE, SIMPLE AND EFFECTIVE!

    2009 Budget = 1.5Mt YTD Actual = 5.78mT

    Total Tons MinedBudget = 26.30mT

    YTD Budget = 5.44mT

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    1,200

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    2,400

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    YTD (Mar) 6% up vs budget

  • SAFE, SIMPLE AND EFFECTIVE!

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    Kimberlite TreatedBudget = 4.00mT

    YTD (Mar) 5% down vs

    budget

    2009 Budget = 1.5Mt YTD Actual = 0.92mT YTD Budget = 0.97mT

  • SAFE, SIMPLE AND EFFECTIVE!

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    Carats RecoveredBudget = 3.97mCts

    YTD (Mar) 0.1% up vs

    budget

    2009 Budget = 1.5Mt YTD Actual = 0.97mCts YTD Budget = 0.96mCts

  • SAFE, SIMPLE AND EFFECTIVE!

    Looking ForwardEnhancement Opportunities

  • SAFE, SIMPLE AND EFFECTIVE!18

    Business Sustainability Programme Road Map

    Select optimal depletion strategy

    13/4

    Detailed schedulingDetailed pit (incl. K03), stockpiles and the Underground schedules

    21/4

    Match schedule to Group

    requirements

    Finalise SBP & LOM Output

    Group RequirementsCash flow, EBITDA

    Dividends, Debt Repayments

    5/5 Draft Report (off mine)Draft Report (on mine) 17/531/5

    9/4

    Mine Planning Pit Optimisation

    Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules)

    Integrate high level schedules with K03

    2009 Base Line SBP updated with current indices

    Cut 4v27

    Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G)

    30/3

    31/3

    15/3

    NOTE: Ore Extraction opportunities divided into: Bankable High Potential Further Opportunities

    Mining Equipment efficiencies (shovels & trucks)

    Mining

    Bench Height implementation study

    Operational delay review

    Truck Bowl Optimisation

    Equipment Lifecycle review

    15/3

    20/3

    30/3

    Ongoing

    Underground expansion

    Iterative verification of the interface

    with the Underground

    team

    21/4

    19/3

    Rehabilitation and ClosureLiability TBC

    NOTE: Ore Processing opportunities divided into: Bankable High Potential Further OpportunitiesAll need earliest start dates

    Plant Recovery factor study(RATU Implementation)

    Ore Processing

    Satellite Stockpile treatment

    Red Area Tailings treatment

    K03 treatment

    30/3

    7/4

    Mix 03 treatment

    Final Report (off mine) 30/6

  • SAFE, SIMPLE AND EFFECTIVE!

    Q2 2009 +

    Q1 2010 +

    Q4 2010 to Q1 2013

    Q1 2011 +

    2013 +

    Ongoing Review

    Satellite Stockpile

    Red Area Tailings Dump

    K03

    Mix 03RATU Implementation

    Improve plant efficiency

    Upgrade obsolete technology

    MODRUP replacement

    Increase in throughput rates of satellite and other magnetic material

    Bulk reduction in magnetic material

    Wet Magrolls

    RisksMine test unit versus production unit

    Improve plant efficiency

    Upgrade obsolete technology

    MODRUP replacement

    Increase in throughput rates of satellite and other magnetic material

    Bulk reduction in magnetic material

    Wet Magrolls

    Increase in throughput rates of satellite and other magnetic material

    Bulk reduction in magnetic material

    Wet Magrolls

    RisksMine test unit versus production unit

    1,536,000Total carats

    7,534,481 Total tons (LOM)

    20 cpht Grade (@ 2DS)

    Consist out of K4, K5,

    K6

    Composition

    1,536,000Total carats

    7,534,481 Total tons (LOM)

    20 cpht Grade (@ 2DS)

    Consist out of K4, K5,

    K6

    Composition

    RisksHigh yields, exceed recovery capacityGrade variationEMV fleet availabilityAccelerate EMV capital spend

    2,433,000Total carats

    114,064 Total tons

    2133 cpht Grade (@ 2DS)

    -3mm + 1 mm

    recovery tailings

    Composition

    RisksGrade variation

    Accelerated timelinesRed Area Infrastructure/Services SupplyContaminants (grease, steel etc.)Long lead items

    2,433,000Total carats

    114,064 Total tons

    2133 cpht Grade (@ 2DS)

    -3mm + 1 mm

    recovery tailings

    Composition

    RisksGrade variation

    Accelerated timelinesRed Area Infrastructure/Services SupplyContaminants (grease, steel etc.)Long lead items

    3,500,000Total carats

    12,500,000 Total tons

    28 cpht Reserve grade

    (@2DS)

    MVKBR, DVK, MVK

    Composition

    3,500,000Total carats

    12,500,000 Total tons

    28 cpht Reserve grade

    (@2DS)

    MVKBR, DVK, MVK

    Composition

    2,746,000Total carats

    8,373,000 Total tons

    33 cpht Grade (@ 2DS)

    63% Waste, 27%

    kimberlite

    Composition

    2,746,000Total carats

    8,373,000 Total tons

    33 cpht Grade (@ 2DS)

    63% Waste, 27%

    kimberlite

    Composition

    Risks High yields, exceed recovery capacity Excessively hard material Grade variation

    Ore Processing Business Sustainability Program Implementation Plan

  • SAFE, SIMPLE AND EFFECTIVE!

    Q1 2008 +

    Q2 2009 +

    Q4 2009 +

    Q1 2010 +

    Q4 2010 +

    Q4 2010 to Q4 2013

    2011 +

    2009 Year Performance 2010 onwards BSP

    42.5%42.5%

    Pit Layout

    Average Loading Rates per period - RH200

    1274880 803

    1214 1247949 817

    1503 1336 12971510

    19402170 2236

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    10001500

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    2500

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    0120

    0902

    2009

    0320

    0904

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    0520

    0906

    2009

    0720

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    2009

    0920

    0910

    2009

    1120

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    Production Period

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    Average Loading Rates per period - RH340

    13911163 963 1061 1010 1077

    1314 14801570 1517 1571

    2365 2323.4 2476

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    10001500200025003000

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    Production Period

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    10 Q1 = 56%09 YR = 39%

    Budget Rate: RH340 = 1800tph, RH200 = 1400tph New Rate: RH340 = 2400tph, RH200 = 1800tph

    Significant Improvement in December 2009 and January 2010 since Cut 3 and Cut 4

    trims backlog has been mined out

    Shovel Efficiencies

    Phase 1

    2.58%

    60.00%

    25.84%

    11.58%2.23% 68.20%

    22.31%

    10.00%

    2.58%

    51.11%

    34.73%

    11.58%

    17.4%17.4%

    2009 Year Performance 2010 Budget Performance

    Idle Time

    Phase 2

    13.7%13.7%

    2011 onwards BSP

    Bench Heights

    Drill Efficiencies

    Final High WallPosition

    TrimBlock

    2nd ProductionBlock

    1st ProductionBlock

    Bench Heights

    Bowl Optimisation

    Equipment Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020BLAST HOLE DRILL RIG 250mm 0 0 0 0 0 0 0 28,500,000 57,000,000 0 0 0O&K RH340 SHOVELS 0 0 0 80,000,000 80,000,000 0 80,000,000 80,000,000 0 0 0 0994 FRONT END LOADER 0 0 0 0 0 0 0 0 0 0 0 0HAULTRUCK CAT 789 0 0 0 0 0 0 18,377,196 36,754,391 0 0 0 0HAULTRUCK CAT 793 0 0 0 0 0 137,972,778 91,981,852 68,986,389 206,959,167 0 0 0TRACK DOZER CAT D9R 0 0 0 0 0 0 5,600,000 5,600,000 0 0 0 0TRACK DOZER CAT D10R 0 0 45,515,268 37,929,390 7,585,878 7,585,878 0 0 7,585,878 15,171,756 0 0TYRE DOZER CAT 834 0 0 0 17,054,778 5,684,926 11,369,852 5,684,926 5,684,926 0 0 0 0MOTOR GRADER CAT 16H 0 0 0 4,848,308 0 0 0 4,848,308 4,848,308 0 0 0MOTOR GRADER CAT 24H 0 0 0 12,374,533 0 12,374,533 0 0 0 0 0 0WATER TANKER 85 000lt 0 0 0 11,417,365 0 0 0 0 0 0 0 0385 TYPE EXCAVATOR 0 0 0 0 0 0 0 11,341,038 0 0 0 0375 TYPE EXCAVATOR 0 0 5,270,519 0 0 0 0 0 0 0 0 0988 FEL 0 0 0 0 0 0 5,374,260 5,374,260 0 0 0 0TYRE HANDLER 0 0 0 0 0 0 0 5,374,260 0 0 0 0SERVICE TRUCKS 0 0 0 0 2,479,678 2,479,678 0 0 0 0 2,479,678 2,479,678Dewatering Truck 0 0 0 0 0 2,479,678 0 0 0 0 2,479,678 0Dewatering Excavator Unit 0 5,270,519 0 0 0 0 5,270,519 0 0 0 0 5,270,519Hiab Trucks 0 0 0 2,000,000 0 0 0 0 2,000,000 0 0 0WATER BOWSERS 0 0 0 0 1,800,000 0 0 0 0 1,800,000 0 0FUEL BOWSER 0 0 0 0 1,800,000 0 0 0 0 1,800,000 0 0LOW BED 0 2,400,000 0 0 0 0 0 0 0 0 0 0SKID STEER 0 0 0 0 0 0 374,134 0 0 0 0 0HIGHWALL SCALER 0 0 0 0 0 0 2,400,000 0 0 0 0 0COMPACTOR 0 0 0 0 0 0 0 0 0 0 0 0Spare RH340 Buckets 0 6,449,246 0 0 0 0 0 0 0 0 0 0Total 0 14,119,765 50,785,787 165,624,374 99,350,482 174,262,397 215,062,887 252,463,572 278,393,353 18,771,756 4,959,356 7,750,197 1,281,543,927

    Equipment Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020BLAST HOLE DRILL RIG 250mm 0 0 0 0 0 0 0 0 0 0 0 0O&K RH340 SHOVELS 0 0 0 0 77,431,189 0 0 0 0 0 0 0994 FRONT END LOADER 0 0 0 0 0 0 0 0 0 0 0 0HAULTRUCK CAT 789 0 0 0 0 0 0 0 0 0 0 0 0HAULTRUCK CAT 793 0 0 0 24,655,583 49,311,166 24,655,583 0 73,966,749 0 0 0 0TRACK DOZER CAT D9R 0 0 0 0 0 0 0 5,600,000 0 0 0 0TRACK DOZER CAT D10R 0 0 33,363,800 33,363,800 25,022,850 0 0 0 0 0 0 0TYRE DOZER CAT 834 0 0 7,226,888 7,226,888 14,453,776 7,226,888 14,453,776 0 0 0 0 0MOTOR GRADER CAT 16H 0 0 0 5,716,367 0 0 0 5,716,367 0 0 0 0MOTOR GRADER CAT 24H 0 0 0 14,270,647 0 14,270,647 0 0 0 0 0 0WATER TANKER 85 000lt 0 0 0 11,392,410 0 0 0 0 0 0 0 0385 TYPE EXCAVATOR 0 0 0 0 0 0 0 5,670,519 0 0 0 0375 TYPE EXCAVATOR 0 0 5,270,519 0 0 0 0 0 0 0 0 0988 FEL 0 0 0 0 0 0 5,374,260 0 0 0 0 0TYRE HANDLER 0 0 0 0 0 0 0 5,374,260 0 0 0 0SERVICE TRUCKS 0 0 0 0 2,479,678 2,479,678 0 0 2,479,678 0 0 0Dewatering Truck 0 0 0 0 0 2,479,678 0 0 2,479,678 0 0 0Dewatering Excavator Unit 0 5,270,519 0 0 0 5,270,519 0 0 5,270,519 0 0 0Hiab Trucks 0 0 0 2,000,000 0 0 0 2,000,000 0 0 0 0WATER BOWSERS 0 0 0 0 1,800,000 0 0 0 1,800,000 0 0 0FUEL BOWSER 0 0 0 0 1,800,000 0 0 0 1,800,000 0 0 0LOW BED 0 2,400,000 0 0 0 0 0 0 0 0 0 0SKID STEER 0 0 0 0 0 0 374,134 0 0 0 0 0HIGHWALL SCALER 0 0 0 0 0 0 0 0 0 0 0 0COMPACTOR 0 0 0 0 0 0 0 0 0 0 0 0Spare RH340 Buckets 0 6,449,246 0 0 0 0 0 0 0 0 0 0Total 0 14,119,765 45,861,207 98,625,695 172,298,659 56,382,993 20,202,170 98,327,895 13,829,875 0 0 0 519,648,259

    Variance in Capital FCT 0 0 4,924,580 66,998,679 -72,948,177 117,879,404 194,860,717 154,135,677 264,563,478 18,771,756 4,959,356 7,750,197 761,895,668

    2010 SBP - Cut 4 v27 (Base Case)

    2010 SBP - Cut 3+ without K3

    EMV Life CycleAverage Load per Truck (2008 - 2010/02/10)

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    7

    2

    0

    1

    0

    0

    8

    2

    0

    1

    0

    0

    9

    2

    0

    1

    0

    1

    0

    2

    0

    1

    0

    1

    1

    2

    0

    1

    0

    1

    2

    793 789

    793 Target Payload = 225t

    10t (5%)Improvement

    789 Target Payload = 180t

    Truck Efficiencies

    793 U/L793 U/L

    789 U/L789 U/L

    AttendanceAttendance

    Shovel UtilShovel Util

    Shovel W/TShovel W/T

    Truck W/TTruck W/T

    Operational Delays

    Mining Business Sustainability Program Implementation Plan

    Ongoing Review

  • SAFE, SIMPLE AND EFFECTIVE!

    1

    Select optimal depletion strategy

    13/4

    Select optimal depletion strategy

    13/4

    Detailed schedulingDetailed pit (incl. K03), stockpiles and the Underground schedules

    21/4

    Detailed schedulingDetailed pit (incl. K03), stockpiles and the Underground schedules

    21/4

    Match schedule to Group

    requirements

    Finalise SBP & LOM Output

    Group RequirementsCash flow, EBITDA

    Dividends, Debt Repayments

    5/5

    Match schedule to Group

    requirements

    Finalise SBP & LOM Output

    Group RequirementsCash flow, EBITDA

    Dividends, Debt Repayments

    Match schedule to Group

    requirements

    Finalise SBP & LOM Output

    Group RequirementsCash flow, EBITDA

    Dividends, Debt Repayments

    5/5 Draft Report (off mine)Draft Report (on mine) 17/5Draft Report (on mine) 17/531/5

    9/4

    Mine Planning Pit Optimisation

    Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules)

    Integrate high level schedules with K03

    2009 Base Line SBP updated with current indices

    Cut 4v27

    Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G)

    30/3

    31/3

    15/3

    9/4

    Mine Planning Pit Optimisation

    Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules)

    Integrate high level schedules with K03

    2009 Base Line SBP updated with current indices

    Cut 4v27

    Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G)

    30/3

    31/3

    15/3

    Mine Planning Pit Optimisation

    Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules)

    Integrate high level schedules with K03

    2009 Base Line SBP updated with current indices

    Cut 4v27

    Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G)

    30/3

    31/3

    15/3

    NOTE: Ore Extraction opportunities divided into: Bankable High Potential Further Opportunities

    Mining Equipment efficiencies (shovels & trucks)

    Mining

    Bench Height implementation study

    Operational delay review

    Truck Bowl Optimisation

    Equipment Lifecycle review

    15/3

    20/3

    30/3

    Ongoing

    NOTE: Ore Extraction opportunities divided into: Bankable High Potential Further Opportunities

    Mining Equipment efficiencies (shovels & trucks)

    Mining

    Bench Height implementation study

    Operational delay review

    Truck Bowl Optimisation

    Equipment Lifecycle review

    15/3

    20/3

    30/3

    Ongoing

    Mining Equipment efficiencies (shovels & trucks)

    Mining

    Bench Height implementation study

    Operational delay review

    Truck Bowl Optimisation

    Equipment Lifecycle review

    15/3

    20/3

    30/3

    Ongoing

    Underground expansion

    Iterative verification of the interface

    with the Underground

    team

    21/4

    19/3

    Rehabilitation and ClosureLiability TBC

    Underground expansion

    Iterative verification of the interface

    with the Underground

    team

    21/4

    19/3

    Underground expansion

    Iterative verification of the interface

    with the Underground

    team

    21/4

    19/3

    Rehabilitation and ClosureLiability TBC

    Rehabilitation and ClosureLiability

    Rehabilitation and ClosureLiability TBC

    NOTE: Ore Processing opportunities divided into: Bankable High Potential Further OpportunitiesAll need earliest start dates

    Plant Recovery factor study(RATU Implementation)

    Ore Processing

    Satellite Stockpile treatment

    Red Area Tailings treatment

    K03 treatment

    30/3

    7/4

    Mix 03 treatment

    NOTE: Ore Processing opportunities divided into: Bankable High Potential Further OpportunitiesAll need earliest start dates

    Plant Recovery factor study(RATU Implementation)

    Ore Processing

    Satellite Stockpile treatment

    Red Area Tailings treatment

    K03 treatment

    30/3

    7/4

    Mix 03 treatment

    Plant Recovery factor study(RATU Implementation)

    Ore Processing

    Satellite Stockpile treatment

    Red Area Tailings treatment

    K03 treatment

    30/3

    7/4

    Mix 03 treatment

    Final Report (off mine) 30/6Final Report (off mine) 30/6

    0.5 x Tyre DiaAngle of repose = 37 deg

    F = 36.9m if berm is 1.8m

    A = 8.4m

    Our berms are 1.80metres high i.e0m additionalfor safety reasons

    0.0 m safety berm2 m backbreak

    Toe = 0m B = 1.8m

    E = A x a = 29.3m C = 5.6m

    Dual Haul Road Cross Section

    0.0 m for pipes

    37m0.5 x Tyre Dia

    Angle of repose = 37 degF = 36.9m if berm is 1.8m

    A = 8.4m

    Our berms are 1.80metres high i.e0m additionalfor safety reasons

    0.0 m safety berm2 m backbreak

    Toe = 0m B = 1.8m

    E = A x a = 29.3m C = 5.6m

    Dual Haul Road Cross Section

    0.0 m for pipes

    37m

    Increased North domain boundary

    Previous North domain boundary

    Geotech domains and slope changes

    Increased North domain boundary

    Previous North domain boundary

    Geotech domains and slope changes

    Ultimate Pit (RG)Ultimate Pit (RG)

    K1

    K3

    Plan View - Bench 10 (576 amsl)

    C4 V27 (Design)C4 V27 (Design)

    K1

    K2

    K3

    K4K1K1

    K2K2

    K3K3

    K4K4

    Skin AnalysisSkin Analysis

    Cut 3 (Design)Cut 3 (Design)

    Cut 3+Cut 3+

    Cut 4+Cut 4+

    120m

    120m

    120m120m

    120m120m

    8.19?10.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    ?

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.210.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.19?10.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    ?

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.210.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    Ultimate Pit (RG)Ultimate Pit (RG)

    Plan View - Bench 10 (576 amsl)

    K1

    K2

    K3

    K4K1K1

    K2K2

    K3K3

    K4K4

    Cut 3 (Design)

    C4 V27 (Design)C4 V27 (Design)

    Cut 3+Cut 3+

    Cut 4+Cut 4+

    8.19?10.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    ?

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.210.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.19?10.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    ?

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    8.210.29.27.3Stripping Ratio

    751561364271Waste

    2314109LOM @ 4Mt

    27

    92

    Cut 3+ & Cut 4+ (Net)

    Cut 4+ (HLD)

    V27 Dgn

    Cut3+ (HLD)

    161211LOM @3.5Mt

    16%23%27%Rev/Cost Ratio

    553937Ore

    104.57/CK&VK

    79.48/CKW

    Ca 104

    $/crt (FSV)

    245.5

    791.6

    Intrinsic Value

    (Million US$)

    13

    50

    Bottom Bench

    2005

    2009

    Mineral Resource

    202.6112.98

    187.6242.26

    Cpht(+2#)

    CaratsMillion

    Tonnes(Million)

    104.57/CK&VK

    79.48/CKW

    Ca 104

    $/crt (FSV)

    245.5

    791.6

    Intrinsic Value

    (Million US$)

    13

    50

    Bottom Bench

    2005

    2009

    Mineral Resource

    202.6112.98

    187.6242.26

    Cpht(+2#)

    CaratsMillion

    Tonnes(Million)

    K01

    K02

    K03

    K03 Whittle Pit optimisation results

    LOM 10 years stand alone

    Ore tons 12.5Mt Carats 3.4M carats Waste tons 15.9Mt Stripping ratio 1.28 Reserve Grade 27cpht Resource grade 18cpht

    K01K02

    K03

    Version 27 Pit Design

    Q1 2010

    Q1 2010 Approval

    Q1 2010 Approval

    Q2 2010(study complete)

    Q2 2010(study complete)

    Q1 2011 +

    Reduced Ramp Widths

    Increased Slope Angles

    Cut 3+ (tuck-in)Whittle shells

    Net EffectWhittle Shells

    K03 Mining

    Planning Road Map

    Mining Planning Business Sustainability Program Implementation Plan

    Ongoing Review

  • SAFE, SIMPLE AND EFFECTIVE!

    Coarse Tailings

    FRD 1

    MTP Stores, S

    ervices, E

    MV

    Primary Crusher

    Air Field

    Explosives Magazine

    Offices

    Prev

    ailing

    Wind

    Direc

    tionFRD 2

    Access Control & Change House

    Twin ShaftComplex

    Dumps

    K2

    K1

    K3

    K4

    Coarse Tailings

    FRD 1

    MTP Stores, S

    ervices, E

    MV

    Primary Crusher

    Air Field

    Explosives Magazine

    Offices

    Prev

    ailing

    Wind

    Direc

    tionFRD 2

    Access Control & Change House

    Twin ShaftComplex

    Dumps

    K2

    K1

    K3

    K4

    Coarse Tailings

    FRD 1

    MTP Stores, S

    ervices, E

    MV

    Primary Crusher

    Air Field

    Explosives Magazine

    Offices

    Prev

    ailing

    Wind

    Direc

    tionFRD 2

    Access Control & Change House

    Twin ShaftComplex

    Dumps

    K2

    K1

    K3

    K4

    Work Breakdown Structure (WBS)

    INPUTSHEETS

    Category (Description of work)

    Grid reference

    PLANNING AND RECONCILITATION WORKSHEETAnnual values:

    Annual updated liability = A + B - C

    A: Premature closure (opening balance)B: Liability accruals (additional disturbance)C: Planned rehabilitation (liability reductions)

    LoM est.Balance Y2Balance Y1Balance

    (C) Rehabilitation Y2(C) Rehabilitation Y1-

    (B) Liabilityaccrual Y2

    (B) Liabilityaccrual Y1+

    (A) Premature Y1(A) Premature Y0(A) Premature

    Y EndY3, Y4Y2Y1Y0

    SUMMARY SHEET

    Roll-up of all sheetsP&Gs

    Contingencies

    SCOPE

    Premature Closure EstimateLOM Closure Estimate

    per annum

    Quantities (volumes and areas)

    Master rates schedule (Cost per unit measurement)

    SURVEY AND

    RECONCILIATION

    Work Breakdown Structure (WBS)

    INPUTSHEETS

    Category (Description of work)

    Grid reference

    PLANNING AND RECONCILITATION WORKSHEETAnnual values:

    Annual updated liability = A + B - C

    A: Premature closure (opening balance)B: Liability accruals (additional disturbance)C: Planned rehabilitation (liability reductions)

    LoM est.Balance Y2Balance Y1Balance

    (C) Rehabilitation Y2(C) Rehabilitation Y1-

    (B) Liabilityaccrual Y2

    (B) Liabilityaccrual Y1+

    (A) Premature Y1(A) Premature Y0(A) Premature

    Y EndY3, Y4Y2Y1Y0

    SUMMARY SHEET

    Roll-up of all sheetsP&Gs

    Contingencies

    SCOPE

    Premature Closure EstimateLOM Closure Estimate

    per annum

    Quantities (volumes and areas)

    Master rates schedule (Cost per unit measurement)

    SURVEY AND

    RECONCILIATION

    Work Breakdown Structure (WBS)

    INPUTSHEETS

    Category (Description of work)

    Grid reference

    PLANNING AND RECONCILITATION WORKSHEETAnnual values:

    Annual updated liability = A + B - C

    A: Premature closure (opening balance)B: Liability accruals (additional disturbance)C: Planned rehabilitation (liability reductions)

    LoM est.Balance Y2Balance Y1Balance

    (C) Rehabilitation Y2(C) Rehabilitation Y1-

    (B) Liabilityaccrual Y2

    (B) Liabilityaccrual Y1+

    (A) Premature Y1(A) Premature Y0(A) Premature

    Y EndY3, Y4Y2Y1Y0

    SUMMARY SHEET

    Roll-up of all sheetsP&Gs

    Contingencies

    SCOPE

    Premature Closure EstimateLOM Closure Estimate

    per annum

    Quantities (volumes and areas)

    Master rates schedule (Cost per unit measurement)

    SURVEY AND

    RECONCILIATION

    Ongoing rehabilitation

    Working smart

    Initial development of infrastructure and project-related disturbance

    Additional operational disturbance

    M

    I

    N

    E

    C

    L

    O

    S

    U

    R

    E

    Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations

    C

    E

    S

    S

    A

    T

    I

    O

    N

    O

    F

    M

    I

    N

    I

    N

    G

    O

    P

    E

    R

    A

    T

    I

    O

    N

    S

    Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies

    Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies

    Time

    L

    i

    a

    b

    i

    l

    i

    t

    y

    Initial development of infrastructure and project-

    related disturbance

    Initial operational disturbance

    with little opportunity for rehabilitation

    Operation of mine

    Initial operational disturbance

    Treatment of stockpiles &rehabilitation effort using ex

    mining machinery

    Rehabilitation effort post mine closure towards

    obtaining closure

    certificate

    Existing Premature closure estimate in this region

    Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented

    Ongoing rehabilitation

    Working smart

    Initial development of infrastructure and project-related disturbance

    Additional operational disturbance

    M

    I

    N

    E

    C

    L

    O

    S

    U

    R

    E

    Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations

    C

    E

    S

    S

    A

    T

    I

    O

    N

    O

    F

    M

    I

    N

    I

    N

    G

    O

    P

    E

    R

    A

    T

    I

    O

    N

    S

    Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies

    Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies

    Time

    L

    i

    a

    b

    i

    l

    i

    t

    y

    Initial development of infrastructure and project-

    related disturbance

    Initial operational disturbance

    with little opportunity for rehabilitation

    Operation of mine

    Initial operational disturbance

    Treatment of stockpiles &rehabilitation effort using ex

    mining machinery

    Rehabilitation effort post mine closure towards

    obtaining closure

    certificate

    Existing Premature closure estimate in this region

    Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented

    Ongoing rehabilitation

    Working smart

    Initial development of infrastructure and project-related disturbance

    Additional operational disturbance

    M

    I

    N

    E

    C

    L

    O

    S

    U

    R

    E

    Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations

    C

    E

    S

    S

    A

    T

    I

    O

    N

    O

    F

    M

    I

    N

    I

    N

    G

    O

    P

    E

    R

    A

    T

    I

    O

    N

    S

    Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies

    Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies

    Time

    L

    i

    a

    b

    i

    l

    i

    t

    y

    Initial development of infrastructure and project-

    related disturbance

    Initial operational disturbance

    with little opportunity for rehabilitation

    Operation of mine

    Initial operational disturbance

    Treatment of stockpiles &rehabilitation effort using ex

    mining machinery

    Rehabilitation effort post mine closure towards

    obtaining closure

    certificate

    Existing Premature closure estimate in this region

    Existing Premature closure estimate in this region

    Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented

    Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented

    Life of Mine (LoM)

    Q2 2010

    Q4 2010 +

    Q1 2011 +

    Baseline Program

    Closure Cost EstimationPremature and LoM

    Life of Mine ClosureLiability & Provisioning

    Rehab & Closure Scope

    Rehabilitation and Closure Liability Management Project

    Ongoing Review

  • SAFE, SIMPLE AND EFFECTIVE!

    Thank You

    De Beers Venetia MineWelcomesAnglo American plcVenetia Mine VisionOur Definition of VictoryResourcesKimberlite ClusterKimberlite ClusterResource ModelsPost SBP Resource ClassificationResourcesCurrent ProductionTotal Waste MinedBudget = 22.68mTKimberlite MinedBudget = 3.63mTTotal Tons MinedBudget = 26.30mTKimberlite TreatedBudget = 4.00mTCarats RecoveredBudget = 3.97mCtsLooking ForwardEnhancement OpportunitiesBusiness Sustainability Programme Road Map Ore Processing Business Sustainability Program Implementation Plan