Minerals and Energy Project Pipeline in South Australia Dr Paul - PowerPoint PPT Presentation

Minerals and Energy Project Pipeline in South Australia Dr Paul Heithersay GMUSG & SACOME Conference and Trade Expo 2012

Let’s talk about Olympic Dam 4th largest copper deposit in  Largest Uranium Resource in 120 the world the world 100  4 th largest Copper Resource in the World 80  4 th largest Gold Resource in the World 60 40 20 0 Andina # El Teniente # Chuquicamata # Olympic Dam Escondida Oyu Tolgoi Camp Pebble Grasberg Camp Collahuasi Camp Norilsk Camp (Nickel)

Lets talk about Olympic Dam  Australia’s largest underground mine, ~ 300 km tunnels  Roxby Downs ~ 4500 people 4

Olympic Dam Expansion

Olympic Dam Announcement “ alternative, less capital-intensive design of the Olympic Dam  open-pit expansion, involving new technologies, to substantially improve the economics of the project.” “the long term outlook for the copper market remains strong and  we will continue to work closely with all stakeholders as we refine our longer term development plans for this unique, world class ore body. We want to find the right solution to unlock this resource” “The South Australian Government has been fully supportive of  Olympic Dam and has created an environment that is highly conducive to business investment. We have been very much encouraged by their attitude to business development and the Olympic Dam expansion project” “Olympic Dam is a resource of enormous potential and we will  continue to work on technological and design alternatives that have the potential to substantially improve the economics of the expansion, while also completing some early stage site works.”

What this means  BHPH will consider new mass handling technologies including conveyors rather than trucks  Minimum starter pit design  New processing technology including Heap Leach of primary sulphides  Leading to a step change in capital required to begin the project  Technologies are being developed in SA with the assistance of local universities and companies  The technology, if successful could unlock lower grade ores than currently mined  Potentially leading to longer minelife.  Time frames need to fall within Federal Government EIS approvals

Olympic Dam Project Pre-Commitment

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Mineral Resources Major Project Pipeline Mines 1. Olympic Dam 10.Beltana 2. *Challenger 11.White Dam 3. Beverley 12.Cairn Hill 4. Middleback 13.Iron Chieftain 20 mines Ranges 14.Ankata 5. Leigh Creek 15.Kanmantoo 6. *Malu 16.Beverley North 7. *Angas 17.Peculiar Knob 8. *Honeymoon 18.*Wilgerup 9. Jacinth- 19.Wilcherry Hill Ambrosia 20.Mindarie Major Projects *Arckaringa (CTL) Gum Flat (Fe2O3) Poochera (Kaolin) 27 projects Beverley South (U3O8) Hawks Nest (Fe2O3) *Portia (Au) *Bird-in-Hand (Au) Hillside (Cu, Au) Project Magnet Phase 2 Bramfield (Fe2O3) *Kalkaroo (Cu-Au-Mo) (Fe2O3) *Carrapateena (Cu-Au) *Menninnie Dam Razorback (Fe3O4) Clinton (CTL) (Pb-Zn-Ag) Samphire (U3O8) Crocker Well (U3O8) Mutooroo (Cu-Co) Tripitaka (HM) Flinders-Reliance (Zn) Mutooroo (Fe2O3) *Tunkillia (Au, Ag) Four Mile(U308) Oban (U3O8) Warramboo (Fe3O4) FuturGas (CTL) Olympic Dam Expansion (Cu-U-Au-Ag) Major Prospects Acropolis (Cu-U-Au-Ag) *Coolybring (Fe3O4) Lock (Coal) Netherleigh Park (Cu) Taurus (Pt, Pd, Cu) *Alvey (Pt, Pd) Deloraine (Au) Mainwood (Au) *Netley Hill (Cu, Mo) Telephone Dam (Pb, Zn) ~90 Major *Aphrodite (U3O8) *Dromedary (HM) Malache (Zn, Pb) North Kalkaroo (Cu, Au) *Titan (Cu, Au) Aristotle (Zn) *Emmie Bluff (Cu) Maldorky (Fe) North Portia (Cu, Au) Tomahawk/Tunkillia area 191 (Au) Armchair (U3O8) Emmie North (Cu) Melton (Cu, Au) Notrab (HM) Toondulya (Cu, Au) Prospects Aroona 2 (Zn, Pb) Eurelia (Diamonds) Minbrie (Fe) *Oakdale (Zn, Cu) Torrens South JV (Cu, Au) Atacama (HM) Eurinilla Dome (Cu, Au) Miranda (Cu) Parara (IOCGU) Typhoon (Au) *Baggy Green (Au) Flinders Island (Diamond) Mojave (HM) Paris (Ag) Typhoon (HM) Bagot Well (Cu) Giffen Well (Fe2O3) *Mongolata (Au) *Parkinson Dam (Ag, Zn, Cu, Au) Ultima Dam (Au, U3O8) Bald Hill Iron (Fe) Glenrae (IOCG) Monsoon (Au) Pindari (Ni, Cr) Victory (U3O8, REE) *Barns (Au) Golf Bore (Au) *Moonta (Cu) Pollinga (Mn) *Vulcan (Cu, Au, U3O8) *Barton West (HM) Goulds Dam (U3O8) Moorilyanna (Cu) Princess Royal (Cu) Weednanna (Pb, Zn, Ag, Cu, Au) Becaroo (U3O8, REE) Greenpatch (Fe3O4) Mount Brady (Fe, Cu, REE) *Prospect Hill (Sn) Wheal Ellen (Zn, Pb, Ag) Big Lake 20 (U3O8) *Hercules (Fe3O4) *Mount Caroline (Ni, Cu, Pt, Pd) *Pundinya (U3O8) Willamulka (Cu, Au) Big Lake 28 (U3O8) Hicks Hill (Fe) Mount Christie Siding (Cr2O3) Punt Hill (Cu, Au) Willy Willy (HM) *Black Hills (Au) Jamieson Tank (Mn) Mount Cora (Fe) Radium Hill (U3O8, Th, Ra) Winjabbie East (Cu, REE) Blanchewater (U3O8) *Junction Dam (U3O8) Mount Davies (Ni) Sequoia (Fe, U3O8) Wirrda (Cu, Au) Blinman (Cu) *Jungle Dam (Ag, Au, Fe) Mount Distance (U3O8) Sheoak (Au, Ag) * Yadglin (U3O8) *Blue Rose (Cu, Au) *Kangaroo Dam (Pt, Pd, Au) *Mount Gunson (Cu, Co) Shylock (Cu, Au) Yanyarrie (Ba) Bungalow (Fe3O4) Kenmore II (Ni, Cu) Mount Torrens (Cu-U-Au-Ag) Skye (Au, Ag) Yarramba (U3O8) Burra (Cu) Kopi (Fe) *Mount Woods (IOCGU) Snaefell (Fe) Zeus (Cu, Ni) 10 10 Carrow (Fe) Lady Jane (Au) Mulyungarie (U3O8) Springfield (Diamond) * PACE Co-funded *Claude Hills (Ni) Lilydale (Fe) Mutooroo Iron (Fe) *Stuart (IOCGU) * PACE Co-funded * PACE Co-funded

Maiden Mineral Resource Announced 2011/2012 Minotaur Exploration  Carey's Well Kaolinite - 16.3 Mt (meas.) bright white kaolinised granite yielding 8 Mt of -45micron kaolin within previously defined 47.2 Mt (inf.) of white to off-white kaolinised granite  Perilya North Moolooloo: 214 000 t at 34.4% Zn (ASX release 10.6.11) Terramin  Angus Sunter Deposit: 375 600 t at 3.8% Zn, 1.6% Pb, 15 g/t Ag ± Pb (ASX release 29.11.11) Marmota Energy  Saffron (Junction Dam): 4.36 Mt at 437ppm U 3 O 8 (contains 1 510 t U 3 O 8 ) (ASX release 18.11.11)  Western Plains Resources Peryhyn: 352.4 Mt sub bituminous Coal (ASX release 7.7.11) Lochiel North: 270 Mt Lignite coal (FY 2010 – 2011 Annual Report) IMX Resources  Snaefell Project: 109.8Mt at 30.13% Fe (ASX release 12.10.11)  OZ Minerals Carrapateena: 203 Mt at 1.31% Cu, 0.56 g/t Au, 270 ppm U, 6.0 g/t Ag (Carrapateena Mineral Resource Statement 14.4.11) Lincoln Minerals  Gum Flat Iron ore: 1.8 Mt Hematite Indicated Resource at 50.5% Fe (45% Fe cut-off) including 0.9 Mt DSO hematite at 54.2% Fe (50% Fe cut-off)  Havilah Resources Maldorky Iron Ore: Indicated Resource of 147Mt of 30.1% Fe at a cut-off grade of 18% Fe Centrex – WISCO – Eyre Iron JV  Fusion Magnetite: 319.4 Mt at 20.1% Magnetite (ASX release 31.8.11) Bungalow: 103 Mt at 25.3% Magnetite (ASX release 10.5.11) Carrow: 159 Mt at 27.8 % Magnetite (ASX release 1.6.11) Sumitomo - Minotaur JV  Mutooroo Magnetite: 1.5 Bt at 15.2% DTR magnetite (ASX release 24.11.11) 12

SA Major Resource Projects 15

Future of Iron Ore in South Australia 16 16 16

Developments in the Braemar Province Proposed $7+ Billion Investment in major Iron Ore Projects 17

Major Mines, Projects and Ports Eyre Peninsula 18

Future of Iron Ore in South Australia 19 19 19

Copper MINES *Olympic Dam: BHP-B *Malu (Prominent Hill Open Cut): Oz Minerals Ankata (Prominent Hill Underground): Oz Minerals Kanmantoo: Hillgrove Resources PROJECTS *Carrapateena: Oz Minerals Hillside: Rex Minerals *Kalkaroo: Havilah Resources Mutooroo: Havilah Resources Olympic Dam Expansion: BHP-B PROSPECTS North Portia : Havilah Resources Punt Hill: Monax * PACE Co-funded

Hillside Conceptual Pit

Globally competitive in new Cu discoveries Olympic Dam (1976) Prominent Hill (2001) Carrapateena (2006) Hillside (2009) Source: MinEx Consulting Feb 2010

Iron Oxide Copper Gold Deposits Olympic Dam Total Resource 9 129 Mt at 0.86% Cu, 0.027% U 3 O 8 , 0.32 g/t Au and 1.48g/t Ag Total Ore Reserve 500 Mt at 1.84% Cu, 0.057% U 3 O 8 , 0.76 g/t Au and 3.41 g/t Ag Prominent Hill Total Resource (including Ankata and Malu) – 214.9 Mt at 1.23% Cu, 0.5 g/t Au, 2.8 g/t Ag Production 2010 – 11 (contained metal in concentrate) – 105 751 t Cu, 191 708 oz Au, 530 568 oz Ag Carrapateena Inferred Resource 203 Mt at 1.31% Cu, 0.56 g/t Au, 6.0 Ag, 270 ppm U 3 O 8 Hillside Prospect Inferred Resource 330 Mt at 0.8% Cu equiv ( including 116 Mt at 1.2% Cu Equiv)

Tonnes & Grade for recent Discoveries Copper Deposits >0.5 Mt Cu-eq found 1999-2011 Grade (% Cu) Copper Only Weighted Average Size World 625 Mt @ 0.58% Cu = 3.65 Mt Cu Carrapateena South Aust 208 Mt @ 0.96% Cu = 2.00 Mt Cu (203 Mt @ 1.31% Cu) Prominent Hill (289 Mt @ 1.01% Cu) Kalkaroo (125 Mt @ 0.77% Cu) Hillside (217Mt @ 0.68% Cu) Pre-Mined Resource (Mt of Ore) Source: MinEx Consulting March 2012 25

MINERAL PRODUCTION - SOUTH AUSTRALIA ACTUAL (1996-97 and forecast 2012-20) $11 $10 New Mine production from $9 existing development projects $8 $7 Actual Mineral $6 Billions Production $5 1996-97 to 2010-11 $4 Production from $3 mining operations existing in $2 2012 $1 $0