OPERATIONS 1.0 2.0 3.0 MICK WILKES Operations Zoom out to be consistent 4.0 5.0 6.0 7.0 8.0 9.0 OZ MINERALS • NOVEMBER 2009 • PAGE 18 OZ MINERALS • NOVEMBER 2009 • PAGE 18
OPERATIONS STRATEGY SUPERIOR TOTAL SHAREHOLDER RETURNS ZERO HARM MAXIMISE BUILD A DISCIPLINED FOCUS ON INVEST IN POTENTIAL PROJECT CAPITAL COPPER EXPLORATION OF ASSETS PIPELINE MANAGEMENT FOUNDATION BUILT ON GOVERNANCE OZ MINERALS • 30 NOVEMBER 2009 • PAGE 19
OPERATIONS - ZERO HARM BY CHOICE Individuals Committed Crew Committed Management Committed Reactive Supervisory Self Management Pro-active CRISIS CONTROL CULTURE COMPLIANCE COMMITMENT It’s broken and we We will strictly super- We will follow the We are truly Safety comes need to fix it vise everything we can rules and procedures committed to safety naturally Injury Rate Zero by Chance Zero by Choice Zero Current Zero Unrealistic Zero Difficult Level at PH Based on models from DuPont and the Queensland Resource Council OZ MINERALS • 30 NOVEMBER 2009 • PAGE 20
PROMINENT HILL – AUSTRALIA’S BEST METALLIFEROUS MINE* Reserves: 75.7Mt @ 1.19% Cu, 0.59g/t Au, Resources: Cu-Au Ore: 189.7Mt @ 1.32% Cu, 0.5g/t Au Au-only ore: 78.8Mt @ 0.06% Cu, 1.4g/t Au, Strip ratio: 5-6 : 1 waste to ore (tonnes basis) Mine: 45Mtpa open pit. Plant: 8Mtpa concentrator Workforce: 600 (including contractors) *Awarded by Australian Mining November 2009 Note: Mineral Resources and Ore Reserves as at 30 June 2009, as published on 30 November 2009. Figures are rounded according to JORC Code guidelines. JORC Code Resources are inclusive of Reserves. OZ MINERALS • 30 NOVEMBER 2009 • PAGE 21
PROMINENT HILL – EXCELLENT FUNDAMENTALS 2010-2012 − 100-110kt/a copper High grade � − 80-90koz/a gold Good metallurgy � − C1 cash cost US85-95c/lb (2010 only) − Increasing throughput to 8.8mtpa Low operating cost � − High grade concentrate ~50-55%Cu − Sales to Asia, Europe and Australia Expandable plant � Average life of 85 ktpa copper, 110 koz gold Excellent jurisdiction pit production: � Current open pit 9 years Low risk environment � mine life U/G Potential significant Reserves increase Good logistics � development Significant exploration � potential New orebody Multiple targets within trucking discoveries distance OZ MINERALS • 30 NOVEMBER 2009 • PAGE 22
STRONG MANAGEMENT TEAM MICK WILKES PHIL TRUSSELL BRIAN KILGARIFF SAMANTHA WILKINSON ROSS SAWERS COMMERCIAL OPERATIONS HUMAN RESOURCES CR, ENVIRONMENT AND GOVERNMENT MARK COLLINS JIM HODGKISON TREVOR MCILWAINE BRETT TRIFFETT PAUL BARAC GRAHAM DEARING SAFETY GEOLOGY MINING METALLURGY MAINTENANCE PROCESSING OZ MINERALS • 30 NOVEMBER 2009 • PAGE 23
DEPTH, DIVERSITY AND SKILLS 17% female employees 80% South Australian employees 11% Indigenous employees Low turnover 13% Leadership development Cross Cultural training Linked training systems OZ MINERALS • 30 NOVEMBER 2009 • PAGE 24
PROMINENT HILL AIR STRIP VILLAGE PROCESS PLANT PIT ROM PAD WASTE DUMP WESTERN COPPER ZONE TAILINGS FACILITY AREA PIT WASTE DUMP ROM PAD SOUTHERN WASTE DUMP OZ MINERALS • 30 NOVEMBER 2009 • PAGE 25
ORE TYPES AND INDICATIVE RECOVERY 55000N 56000N Current pit level Cover Sequence Cover Sequence Cover Sequence May 2009 Survey Overburden Overburden Overburden Stage 1 Stage 2 Stage 3 Stage 3 10000RL Stage 2 Gold ore recovery 85% gold Stage 1 Chalcocite ore recovery May 2009 Survey 88% copper Stage 4 Stage 4 70% gold Mesoproterozoic Basement Stage 2 Stage 3 Fresh Waste Chalcocite Chalcocite Bornite Chalcocite Bornite Gold Bornite ore recovery Bornite Chalcopyrite Gold Only Chalcopyrite ore recovery 80% copper Only Stage 4 83% copper 70% gold 63% gold Chalcopyrite Chalcocite Chalcocite Bornite Chalcopyrite Gold Bornite 9500RL Only OZ MINERALS • 30 NOVEMBER 2009 • PAGE 26
PROMINENT HILL AT FULL PRODUCTION Contained Metal Produced per week 2009 Quarter 4 4000 Quarter 3 3500 Quarter 2 3000 Quarter 1 2500 tonnes 2000 1500 1000 500 0 Feb14 Mar28 May9 Jun20 Aug1 Sep12 Oct24 Ramp up in Q1 and Q2 Overcome issues in Q3 At full production in Q4 − Proven plant availability − Misfires Good recovery − and throughput − Electronic soft starter on the mills High head grade − − Proven metallurgy − High wear rates on the IsaMill Excellent throughput − − Stable power supply − Ore type variability Good availability − − Stable water supply OZ MINERALS • 30 NOVEMBER 2009 • PAGE 27
COSTS STABLE AND COMPETITIVE Significant cost elements: − Unit costs per tonne are tracking to plan 1. Fuel − Fixed costs make up 30-40% 2. Power − Higher throughput – lower unit 3. Labour costs 4. Productivity − Unit mining costs increase with depth − ~80% of costs in AUD − Secure contracts e.g. Thiess OZ MINERALS • 30 NOVEMBER 2009 • PAGE 28
MARGIN IMPROVEMENT PROJECTS (MIP) – TOP 10 Driver Project 1 Increase recovery Optimise flotation reagents Increase recovery Engineered stockpiles 2 Reduce cost Blast hole sampling for grade control 3 4 Reduce cost Optimise powder factors 5 Reduce cost Reduce ROM Pad rehandling 6 Increase water supply and ore throughput Borefield optimisation 7 Increase ore throughput Pebble crushing 8 Reduce water consumption and increase Increase tailings density ore throughput 9 Reduce cost and carbon footprint Water and energy consumption 10 Reduce future carbon cost Develop green energy options OZ MINERALS • 30 NOVEMBER 2009 • PAGE 29
SUMMARY OF OPERATIONS − Excellent fundamentals − Operating at full capacity − Strong management and systems − Low risk operation − Strong government and community support − Proven operational excellence − Competitive operating costs − High cash flow − Ample power and water − Increasing throughput − Reducing costs − Focus on maximising asset value OZ MINERALS • 30 NOVEMBER 2009 • PAGE 30
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