tellus holdings ltd chandler project update · wet processing ponds (evaporation, crystallization,...
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Tellus Holdings Ltd
Chandler Project Update
Central Australia Mining Seminar
MD Duncan van der Merwe16th March 2015
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Important Notice and Disclaimer
Summary information
This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information
about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete.
It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au. The key information on detailed exploration target statements, mineral resource estimates, and
feasibility results can be found in Tellus’ publically released media announcements. Exploration target statements and mineral resources estimations are appended to comply with ASX guidelines
but investors are urged to read supporting information in full available on the company’s website, and available in their data room.
Future performance
This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar
expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial
position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies
which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party
expertise. Such forward-looking statements, opinions, and estimates are not guarantees of future performance.
Not an offer
This presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the
basis of any contract or commitment.
Competent Person Statement – Chandler Project
The information in this presentation that relates to Mineral Resources - Chandler Project - is based on information compiled by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH
(‘ERCOSPLAN’). Jana Neubert is a senior geologist and employee of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as “European Geologist”
(Registration Number 1033). Ms Neubert has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
Dr Henry AM Rauche is a senior geologist and Managing Director & C.E.O. of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as "European
Geologist" (Registration Number 729). Dr Rauche has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has
undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
Competent Person Statement – Sandy Ridge Project
The information in this presentation that relates to Mineral Resources - Sandy Ridge Project - is based on information compiled by Terra Search Pty Ltd. Mr Jenkins is Principal Geologist of Terra
Search and a Member of the Australian Institute of Geoscientists. Mr Jenkins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and
to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
The information in this presentation that relates to exploration targets is based on information reviewed by Dr. Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological
consultants employed by Tellus. Dr. Beams has BSc Honours and PhD degrees in geology. He is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a
Member of the Australian Institute of Geoscientists (Member #2689). Dr Beams has sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration,
and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral
Resources, and Ore Reserves”.
Exploration Target
Any statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for reporting of exploration
results, mineral resources, and ore reserves (‘JORC Code’). All statements as to exploration targets of Tellus salt and kaolin, and statements as to potential quality and grade are conceptual in
nature. There has been insufficient exploration undertaken to date to estimate a resource and identification of a resource will be totally dependent on the outcome of further exploration.
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Tellus’ Strategy
Community and Stakeholder Engagement
ClayVault WA Project
Sandy Ridge Project
Chandler Project
Contractor opportunities, timelines and potential employment
Appendices
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Table of Contents
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Tellus’ Strategy1
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Strategy - Experienced Project Team1
Experienced Board team Exp. mining/ regulatory team Experienced waste management team
Shell, NSW Minerals CouncilVIC Haz Waste Consult. Committee
Ex BD Coffey Environmental, IBM
Head-AMP Capital Investors, CEO Tenix Infrast. & Lend Lease Capital
Philip GarlingNon Executive Chairman
Duncan van der MerweGroup MD
Ron Sifton NED
Noel DavisMD ClayVault WA
Robert CharterGM Sales and Marketing
Dr Nikki WilliamsNED
Mining (Gencor CSM Energy), waste & infrastructure (BOS, Nobles)
Ex FD Newalta, Canada’s largest salt cavern waste storage operator
Ex WA Environmental Regulator, Managed only Class V waste facility
Employee of EPMS, Project manager at WA Kaolin
Mark ShepherdTellus RockVault NED
John CookTellus RockVault ChairMike Ingram
Kaolin – Sandy Ridge PMEx NSW Chief Mining Engineer, Ex MD Waste Service NSW
Ex MD Coffey WA, managed Australia’s only Class V waste facility
Tellus consists of an experienced board and management team with key individuals having a proven track record developing
mines, salt and kaolin projects and heavily regulated storage projects
Wiltshire Geological, Schlumberger, TerraSearch
Jaime LiveseyProject Administrator /Snr Geologist
Steve ReeceChandler Technical Advisor
Employee of Golders -managed UK salt / backfill mine for 15 years
Joanna Stewart Priestley Senior HSEC Manager
Employee of Mott MacDonald, Hyder, Parsons Brinkerhoff, PPK,
Natasha AlfordHSEC Manager and Policy
Employee of Rio Tinto Coal, Worley Parsons, DLA Phillips Fox
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Strategy - Salt Products1
Salt - Tellus’ competitive advantage
▪ Strong position to meet Asian demand by providing a guaranteed volume and quality
▪ Darwin – closest port to Asian buyers▪ Large scale resource – easily scalable▪ Reliable supplier - not influenced by climate▪ Associated minerals ▪ Cross selling storage solutions (domestic)
Cyclone map
World: Forecast demand for salt by region, 2012 and 2018 (Mt) 1 World: Forecast demand for salt by end-use, 2012 and 2018 (Mt) 1
Tellus opportunity
Drilling salts used in the oil and gas
industry, salt fluxes used in the smelting and mining industry
To Shanghai : Darwin is ~4,100 km closer than Indian ports, ~5,900km closer than Mexican ports~13,300 km closer than Chilean ports
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Strategy – Tellus Storage Service Offering1
Tellus has applied to the Office of the Clean Energy Regulator for registration of Chandler Project under the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act)
Upper hydrocarbon storage scenario:
Abate 4,6 M tCO2-e over LOM = 36,208 cars off the road or
33 MW solar
1 Photo of German salt/backfill mine
1 Photo of German salt/backfill mine
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Waste Acceptance Criteria Chandler
Liquid waste in barrels, lined & bunded
Dry waste multiple lined and bagged
Nuclear waste (Defence, Energy)
Uranium mining waste
Infectious (Medical) Waste
Uncertified waste
Tellus is bringing “world’s best practice” solutions and recognized high development standards
Industry Waste Sources
Oil & Gas
Mining
Heavy Industry / Power Generation
Manufacturing
Agricultural
Government/SES
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Strategy – Tellus Storage Service Offering
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Best Practice Systems
Certified Management System
Strict acceptance criteria
Packaging and transport criteria
Safety case – man made engineering
Safety case – natural engineering (geology)
Insurance, bonds, Permanent Isolation Certificates
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Tellus’ certifications and values
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309 M t JORC Measured1 Resource
Chandler Project (100% , 29 year LOM)
508 k tpa salt sales500 year LOM
Storage sales 2
Sandy Ridge Project (100%, 26 year LOM)
28k tpa kaolin sales1,475 year LOM
Storage sales 2
1 Refer to Sandy Ridge JORC ( 20 June ’14) and Chandler – JORC (1 July 14) media releases2 Photo of German salt/backfill mine, photo of West Australian clay backfill project
41 M t JORC Inferred1 Resource
Strategy - Projects
Tellus Project and Office Locations
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Strategy - Health Safety and Environment1
No reported Lost Time Injuries in 5 years from Tellus or contractors Tellus audit of contractor site
Three site visits by the NT Government regulatorsSuccessfully passed 2 years of SAI Global audits (OHS, Qty, Environment)
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Community and Stakeholder Engagement
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Community and Stakeholder Engagement
Community consultation
Supporting jobs (WA TO’s)
Supporting jobs (NT TO’s)
Pot. buyers (pit-to port visits)Radio, TV, Newspaper, Online
NT Gov. & Regulator (site visits) TO meetings & site visits
Supporting local business (20+)
Over 30 months - 118 face to face meetings
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Community and Stakeholder Engagement2
http://www.glsc.com.au/home/glsc-land-management-rangers
Support ranger programs (~ 30 rangers and trainers) Support educational training programs (Redtails and CDU)
Support local sports teams (cricket and soccer))Support local communities (Titjikala Tidy Town Award)
Photo source: http://www.redtailsfc.com.au/
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ClayVault WA Project
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ClayVault Joint Venture (WA)3
West Australian Government Facility
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Sandy Ridge Kaolin Mine Project
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Sandy Ridge– Mine to Port
1 Photo of Australian clay backfill project
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Sandy Ridge - Project Summary
Category Detail
Location ▪ 140km WNW Kalgoorlie
Business▪ Dual revenue –
▪ Kaolin/ storage sales
JORC1 ▪ 41 Mt = 1,475 year mine
Life of Mine ▪ 1 yr build +25 yrs op’s
Acts▪ Mine under Mining Act
▪ Storage under Envir. Act
Mine ▪ Open cut
Predevel ▪ $5 M
Capex* ▪ A$62 M (Incl. of pre-devel.)
Opex*▪ Labour, transport, utilities,
services
Jobs*▪ Build (40-90), operational (18),
indirect (54)
▪ Excludes O&M contractors
Additional businesses
▪ Recycle & recovery jobs
▪ 3X increase FTE (54)
▪ Other kaolin product jobs
Tax▪ Corporate tax, GST, levies,
royalties
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1 Refer to Sandy Ridge JORC ( 20 June ’14) and Chandler – JORC (1 July 14) media releases* FEL1 Scoping Study Assumptions (DCF Model v2 Mgt Case)
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SR Progress - Next Steps
Studies: PFS (FEL2), Approvals: lodge MLA and PER Commercial negotiations (kaolin, storage, consortium, finance)
Drill up to 43 aircore drill hole (JORC resource), 7 geotechnical holes
84 bulk sampling air core holes (gather 40 tonnes) Simple benefaction pilot (40t ROM refined to 15t product)
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Chandler Salt Mine Project Update
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Chandler - Pit to Port5
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Chandler - Rediscovering the Chandler Salt
Source: McGraw HillImage: Victoria Museum, Source: Colorado Plateau GeosystemsSource: Colorado Plateau Geosystems
Cambrian -580myo lifeless land teeming ocean Salt trap for oil and gasGillen 700myo-Chandler 500myo-Late Cambrian
Tellus drilling - 98% pure halite at 795mFlat thick salt bed ~ 18km wide (CH003 ~ 300m)145km seismic, 6.6km core
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Potentially Australia’s largest commercially viable salt bed
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Chandler - Project Progress5
Country of study contributors:
Project technically feasible, commercially viable, no fatal flaws
370 samples Independent experts confirmed viabilityDrilled 1,937m
Customer visitsSite investigationsEngineering - FEL 2 Update
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Chandler – Design 5
*Not to scale – underground workings not directly under surface plant
Salt dry processing plantStorage processing plant
Wet processing ponds (evaporation, crystallization, bittern ponds)
2 MW solar plant
Vertical ventilation shafts
Portal and decline
Traffic management – blue line salt traffic, orange line – waste traffic
Ventilation management –intake (2nd egress) and exhaust air
Isolation management –store like with like
Room dimensions – 250m L, 10m W 4.5m H,
Water management –decline stops above salt bed, with sump
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Chandler - Summary
Could potentially be Australia’s longest life mine Could potentially be one of central Australia’s largest private employers
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Category Detail
Location ▪ 120km South of Alice Springs
Business▪ Dual revenue –
▪ Salt/ storage sales
JORC1 ▪ 309 Mt = 500 year mine
Life of Mine ▪ 4 yr build +25 yrs op’s
Acts▪ Mine under Mining Act
▪ Storage under Envir. Act
Mine ▪ Underground
Predevel ▪ $10 M
Capex* ▪ A$464 M (Incl. of pre-devel.)
Opex*▪ Labour, transport, utilities,
services
Jobs*▪ Build (280-350), operational
(180), indirect (>540-720)
Additional businesses
▪ Recycle & recovery jobs
▪ 3X increase FTE
▪ Other salt product jobs
Tax▪ Corporate tax, GST, levies,
royalties
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Chandler – Power Requirements
2 MW solar plant
Could potentially be Central Australia’s largest solar power station or one of the biggest mine solar projects
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Chandler - Progress and Next Steps5
Studies: BFS (FEL3), Approvals: lodge EIS Accorded Major Project Status by the NT Government
Drilling geotechnical holes, JORC resource, water bore field wells Simple benefaction pilot (dry and wet)
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Chandler and Sandy Ridge – Pilot Progress5
Salt Dry Pilot - select optical sorter design
Salt Dry Pilot– run pilot
Salt Wet Pilot – run pilot
Kaolin - Collect 40 tonnes (ore)
Kaolin - Run pilot – 15 tonnes (2 grades)
Kaolin - Manufacture paint, ceramic, fibreglass
Salt - Optical sorter results
Small and bulk samples sent to customers
International partners
Pilots: UK Germany USA Australia Samples: Japan China Korea SE Asia
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Contractor opportunities, timelines and potential employment
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Opportunities for the Alice Springs region and NT
Category Pre mine Mine build Mine operations
Jobs Limited Mine & plant build Mine & plant operations
Training Limited work experience
Apprenticeships, traineeships, work experience
Apprenticeships, traineeships, work experience
Investment Studies, approvals, team & internal & customer processes
Capex (civils, plant &equip), team & internal & customer processes
Investment (sustaining capex & opex) team & internal & customer processes
Business opportunities
Contractor labour, drilling, studies, equip. & supplies
Mine build contractor services, equipment & supplies
Mine contractor services Equipment & suppliesSalt related spin off businesses
Sponsorships & trust
Sponsorships Sponsorships SponsorshipCommunity benefits trust
Environmental Work exp. (rangers) Work exp. (rangers) Offset program (ranger programs)
Infrastructure Industrial shed/ office
Improved roads, bridges, power, comm’s
Improved roads, bridges, power, comm’s, training & visitor centre
RoyaltiesTaxes & rates
Exploration Agr’t, Fed & NT taxes
Exploration Agreement Federal, NT , Local taxes/ rates
Royalties - MineralFederal, NT , Local taxes and rates
Tellus has a commitment to local employment, training and supply of equipment and services
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Doing Business with Local Companies6
Tellus’ contract management lifecycle
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Doing Business with Local Companies6
Initial engagement is via registration with:
Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICN NT 08 8922 9422
ICN matches projects with potential suppliers
Tier I Primary contract –overarching contract
Tier II Secondary/ sub contracts
Category Business must demonstrate Evidence
Service Track record “deliver on spec, on time, within budget & value add”
Capacity Human resources (experience , A team vs B team, availability) /equipment /supplies
Qualifications (certificates, licences & tickets- current and appropriate)
Financial viability
Insurances -Public Liability, PI, Vehicle, Workers Comp., Damage to Property
Policies (Environ., Quality, OH&S, local content, supporting local people)
Safety management plan and systems
Price Competitive in market comparison, value for money
Terms Contractual terms are acceptable (risk management)
Companies need to demonstrate track record, capacity, price competitive and risk management
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Sandy Ridge (SR) and Chandler (CH) – Timelines6
Chandler – End of 2015 would have completed baseline monitoring & initial bankable feasibility study and lodged EIS
SRCH
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Opportunities – Local contracts awarded during BFSCategory Service / equipment provided Local
Industrial real estate Shed/ office rental & utilities
Studies - environmental contractors & TO’s Field surveys
Station / Landholder Earthworks machinery, accommodation
Mining service providers Camp and equipment supply
Wholesale fuel distributor Diesel supply
Vehicle rental supplier Vehicle rental
Freight provider Freight service
Geotechnical contractors Personnel
Camping & safety equipment supplier Field equipment supply
Helicopter charter service Charter flights
Accommodation & food and beverage Hotels, taxis, catering, room hire
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Doing Business with Local CompaniesInitial engagement is via registration with: Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICNNT 08 8922 9422ICN matches projects with potential suppliersTier I Primary contract –overarching contractTier II Secondary/ sub contracts
35Chamber of Commerce, Local Business Employment and Government Reps at Site Visit
Chandler – Any Questions?6
Tellus is a Member
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Contact Details
Duncan van der Merwe
Group Managing DirectorE: [email protected]
A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000 T: +61 2 8257 3395 F: +61 2 8233 6199
www.tellusholdings.com.au
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Appendix
General - archives
Licensed - disposal
Licensed - storage
K+S-German salt Mine
Compass Minerals – Deep Storage
4 Chandler - Underground design
Salt mining
K+S-German salt Mine
K+S-German salt Mine
Tellus is planning to develop the safest mine in Australia