Download - 29 May 2008 SYDNEY NSW 2000 VIA:
29 May 2008 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre Level 4, 20 Bridge Street SYDNEY NSW 2000 VIA: www.asxonline.com Dear Sir, Re: China Nickel Conference Please find attached a copy of a presentation being given by the Managing Director today at the China Nickel Conference in Shanghai. A copy of the presentation has also been posted on our website www.rusina.com.au. Yours faithfully Mark Hanlon CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
China �ickel ConferenceShanghai
29 May 2008
The Philippines:
The New Emerging Nickel Laterite Province
Disclaimer
Certain statements in this document relate to the future, including forward looking statements relating to financial
position and strategy. These forward looking statements involve known and unknown risks, uncertainties,
assumptions and other important factors that could cause the actual results, performance or achievements of be
materially different from future results, performance or achievements expressed or implied by such statements.
Such risks, uncertainties, assumptions and other important factors include, among other things, general economic
conditions, exchange rates, interest rates, the regulatory environment, structural changes in the industries in
which the Company operates, competitive pressures, selling price and market demand. The forward looking
statements in this document reflect views held only as of the date of this document.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Resources is based on
information compiled by Scott Robson (B.Sc,) who is a Member of The Australian Institute of Mining and
Metallurgy. Scott Robson has sufficient experience which is relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Scott Robson consents to the inclusion in the report of the matters on his information in the form and
context in which it appears”.
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Presentation Outline
• The Philippines
• Introducing Rusina (ASX: RML, AIM:RMLA),
DMCI Holdings (PSE:DMC) &
European Nickel (AIM: ENK)
• The Acoje Project
– Current operation: Direct Ore Shipping
– DMCI Ferronickel Smelter Plans
– On-site processing: innovative simple heap
leach process
• The Barlo Project
• ENK’s Hermosa R&D Facility
• Conclusion
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The Philippines - An Emerging Nickel Laterite Province:
• Philippines has a strong mining history and was the leading mining country in South East Asia
during the 1980’s.
• Low commodity prices and lack of capital led to many mines closing in the early 1990’s
• The new Mining Act of 1995 set out to re-encourage mining investment.
• This was unfortunately challenged in the Supreme Court and was finally
ratified in 2004
• President Arroyo creates the Minerals Development Council in 2004.
• Since then the Philippines is the NEW emerging nickel laterite province
– Mining friendly region
– Has been underexplored until now
– Laterite deposits are significant & good grade
• Proximity to China a key advantage4
Introducing Rusina, DMCI & European Nickel
• Listed on ASX: RML, AIM: RMLA
• Focused on the Philippines
• Explorer and Developer. Nickel, Chromite, PGM’s Copper and Gold.
• Listed on London’s AIM: ENK
• Developers of proprietary heap leach process
• Projects span Turkey, Philippines & Albania
• BHP Billiton a stategic partner
• Targeting 50,000tpa Ni in 5 years to be a mid-tier producer
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• Listed on PSE: DMC
• Focused on the Philippines
• Diversified: Construction, Power, Water, Housing, Coal, Mining
Acoje Project History
• Historically South East Asia’s largest
metallurgical Chromite mine. Closed early
1990’s
• Produced 15,000 oz Platinum Group Metals
in the 1970’s
• Falconbridge explored the Zambales nickel
laterites in the late 1970’s
• Rusina acquires property in 2006.
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ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
Acoje Geology
• Preserved ophiolite suite – large
layered mafic/ultramafic complex.
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• PGM located within the altered
dunite.
Hostrocks are :
• Nickel laterites located over
weathered ultramafic
(harzburgite)
Harzburgite
Gabbro
Dunite
• Chromite hosted within the dunite
and harzburgite host rocks.
ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
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SaproliteSaprolite
LimoniteLimonite
PIGIRONPIGIRON
Source: CSA Australia Pty LtdSource: CSA Australia Pty Ltd
Acoje Project – Nickel Laterites
• Limonite zone - High iron, medium nickel grades.
• - Easy to mine, soft laterite soils.
• Saprolite zone - Harder rock, boulder zone.
- Higher grade nickel, lower iron%
AcojeAcoje LateriteLaterite XX--section haul road to section haul road to MalimlimMalimlim
ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
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Cut-off grade Ni = 0.75%
• JORC estimate independently conducted by SRK Perth
• Estimate based on 1,349 pits, 294 HQ diamond holes nominally spaced 100m x
100m.
ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
JORC Nickel Resource Update
Property JORC Category Million Tonnes �i (%) Co (%)
Acoje Limonite Indicated 21.5 1.04 0.08
Inferred 4.2 1.03 0.08
Acoje Saprolite Indicated 20.9 1.25 0.04
Inferred 2.2 1.03 0.06
Total Acoje 48.8 1.13 0.06
ZCMC Laterite Inferred 23.5 1.18 0.05
Total Combined 72.3 1.15 0.06
Cut off grade Ni = 0.75% Rounding may introduce minor computatioCut off grade Ni = 0.75% Rounding may introduce minor computational errorsnal errors
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RUSINA
&
PARTNERS
50505050
40404040
2020202020202020
8888
3333
20202020
Kt pa
Capital Intensity is estimated capital cost divided by required annual nickel production for that
process
Source: Adapted from the Nickel Sector Metal and Equity Review, Fox Davies Capital
ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
Acoje Strategy
�ICKEL – THREE TIERED APPROACH
�OW Develop short term cash flow through nickel laterite DSO.
SOO� Participate in medium term smelting operations via Electric Arc Furnace with DMCI.
LATER Develop long term, low cost, sustainable mining via Heap Leach with ENK.
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ACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECTACOJE PROJECT
Nickel – Direct Ore Shipping (DOS)
DOS alliance contract with DMCI. No risk to Rusina. 50% Profit share.
DMCI Have built the port at Santa Cruz. Protected all year loading.
Acoje closest Nickel DOS producer to China! Shipping commenced.
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2 days 2 days
DMCI Santa Cruz Port completed Dec 2007 DMCI Santa Cruz Port completed Dec 2007
Nickel – Direct Ore Shipping
• Alliancing Contract DMCI Mining.
• DMCI responsible for all funding, mining, grade control, rehabilitation, road and port developments as
well as well as marketing and sales obligations of 5 million tonnes of ore over 5 years.
• Mine reconfigured to service Ni grades between 1 and 2% Ni. Current market conditions require ore
greater than 1.4% Ni.
• Currently ramping production rates to 1mtpa
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DMCI PortDMCI PortDMCI PortDMCI Port
A3Una PortA3Una PortA3Una PortA3Una Port
DMCI StockpilesDMCI StockpilesDMCI StockpilesDMCI Stockpiles
Nickel – Acoje DSO operation
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Nickel – Smelter Initiatives
• DMCI & Rusina jointly investigating
Calcine Kiln / Electric Arc Furnace.
• 3000 – 6000 tpa Ni production
• Rusina has free carry for 40%
interest to provide ore.
• Need saprolite ore feed. >1.7% Ni
• Reviewing 4 process routes;
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OreOre
Oil or CokeOil or Coke
PCPC
PCPC
Pulverised coal (PC)Pulverised coal (PC)
Oil or CokeOil or Coke
crushercrusher
Feasibility Study dependent on equipment availability and cost, Feasibility Study dependent on equipment availability and cost, percentage percentage
reduction possible in Kiln, suitability of reduction possible in Kiln, suitability of SemiraraSemirara coal, pricing of coal, pricing of
intermediate products, and power costs. intermediate products, and power costs.
European Nickel’s USP – simple, low cost heap leaching
• Heap leaching technology commercialised by
ENK
• Continuous testing over 3 yr period at Çaldag
project in Turkey
– Full height trial heaps
– Demonstrate permeability and recovery
• Heap recovery 75%
• Precipitation plant
– Generates plant design data
– Mixed hydroxide product is bagged and
shipped
• BHP Billiton
– Strategic partner
– Joint technology development continuing
Heap Leach at Heap Leach at CaldagCaldag, Turkey, Turkey
Rain Coats on Pads Rain Coats on Pads –– BellavistaBellavista 17
Value Optimisation through Strategic Partnership
• Onsite processing increases payability of nickel metal to ≈75%
• Access to proprietary heap leach process through strategic partnership with ENK
• Targeting ≈30,000tpa Ni production
• ENK & Rusina finalised JV in Dec 2007
• ENK to spend US$10m on BFS to earn 40% of Acoje
• ENK & Rusina to co-invest 50/50 on any other nickel laterite
deposit on Island of Luzon, Philippines
• ENK mobilise development team to Philippines, augmented by
Rusina team
Rusina & European �ickel Joint Venture The Product: Nickel Hydroxide
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Acoje column tests
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• Column tests confirming initial bottle roll tests with good leach kinetics
• Saprolite leaching faster then limonite, but with higher acid consumption
• Permeability maintained through leach
• Mixed ore (limonite and saprolite) leaching better then separate ores
Acoje Pre-Feasibility Underway
• Targeting completion Q3 2008
• Consultants appointed
– Vector Ausenco (Engineering)
– SRK (Mining)
– Snowdens (Resource)
– Gaia South (EIS)
– Wardrop (Port study)
IFC
HA PLS LA PLS
1o Heap 2o Heap
Fe PrecipitationFe Separation
PNP Sep. SNP Sep.Ni/Co Precip. Ni/Co Precip.
Water
Water
PNP SNP
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• 30,000 tpa Ni operation
• 20 year mine life
• Much data available via Caldag
(particularly in the plant design)
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Acoje Heap Leach Trial
• Permits for trial leach pads at Acoje now approved
• Construction commencing immediately by ENK
• Three heaps to be constructed
• 5,000 tonnes ore per heap
• Use of raincoats to control rain runoff
• Cyclone covers on ponds to control rain runoff
• Demonstration of leach recovery and heap permeability in a heavy rain environment
• Demonstrate environmentally benign process to local stake holders
Trial HL Pads Location at old Acoje Airstrip.
Comparison of New Nickel Projects by Resource Size, Potential
Production and Start Date
Source: Public company filingsSource: Public company filings
(1) (1) BerongBerong and and IpilanIpilan pre pre –– JORC resourcesJORC resources
Size of bubble represents resource sizeSize of bubble represents resource size
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Barlo Mine – Zambales Philippines
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• Rusina entered agreement to
Purchase Barlo Mine, 30km
north of Acoje
• VMS Copper Gold system
• Relatively under explored
• Historically mined 55kt hand
sorted >10% Cu
• Large pyrite mineralisation
present on property
• Strategic for Rusina and
partners as a hedge against acid
prices for nearby nickel project
European Nickel’s Hermosa Research & Development Facility
• Regional ENK R&D facility planned to be
built in Bataan, near Subic Bay
• R&D facility to research proprietary
technology on the Heap Leach solutions to
produce higher value final products
• Ten heaps to treat different ores from the
region
• Rusina to benefit from these technologies
being directly applied to Acoje and Zambales
Chromite
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View to South EastView to South EastView to South EastView to South EastView to South EastView to South EastView to South EastView to South East
Pad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaPad AreaProcessProcessProcessProcessProcessProcessProcessProcess
PlantPlantPlantPlantPlantPlantPlantPlant Pond AreaPond AreaPond AreaPond AreaPond AreaPond AreaPond AreaPond Area
Community – Zambales Nickel Laterite Alliance
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• Rusina and its partners have a strong
commitment in obtaining a social
licence to operate from the
community's where we operate.
• Following the recent Typhoon that
passed directly over Santa Cruz, we
were among the first to provide
immediate relief rice and groceries to
over 2000 homes in the community.
• All Large Scale Mining Co’s in
Zambales have formed an Alliance to
co-ordinate
- Social Development
- Community Relations
- Govt Relations
Conclusion
• Long term nickel fundamentals are robust
• Nickel laterite resources are the future of nickel production
• The Philippines will become a major nickel laterite producing
region
• DSO offers immediate cash flow for us, the community & Govt.
• Heap leach process offers low capital cost entry point to value add
• Onsite processing enables value optimisation by increasing metal
payability
• Acoje targeted to be medium sized nickel production of 30,000tpa
• Rusina/DMCI & ENK partnership combines in-country operating
experience with innovative technology
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China Nickel Conference
Shanghai
29 May 2008
Contacts
Rusina Mining DMCI Mining European �ickel
www.rusina.com.au www.dmciholdings.com www.enickel.co.uk
Robert Gregory Caesar Simbulan Simon Purkiss
Managing Director President Managing Director
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