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A Successful Upstream Integration in the Heavy
Mineral Sands Industry JM FOURCADE
CEO, TIZIR LIMITED
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Agenda
1. Creating a Joint Venture Between MDL, Australia and Eramet, France
2. Developing a Huge TiO2 and Zr Mining Project in Senegal
3. Starting up a New Global Actor in the Heavy Mineral Sands Industry
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ERAMET SA
• Mining and Metallurgy Group
• 15000 People, 22 Countries
• Nickel, Manganese, Super Alloys
2008 Tinfos Acquisition (incl. TTI)
2009 – 2010 Strategic Analysis
� TTI Upstream Integration Project
History
Creating a Joint Venture Between MDL and Eramet
MINERAL DEPOSITS LTD
• Extensive Experience in H M S
• Successful Gold Project in Senegal
Concession of Grand Cote in 2007
DFS of the GCO Project 2010
� Downstream Integration & Partnership
CREATION OF TIZIR LIMITED OCTOBER 2011
JV 50/50
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Creating a Joint Venture Between MDL and Eramet
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TiZir Titanium and Iron (TTI)
Tyssedal Ilmenite Upgrading Plant
Creating a Joint Venture Between MDL and Eramet
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Creating a Joint Venture Between MDL and Eramet
Smelts ilmenite to produce a titanium-rich slag and pig iron co-product
Ilmenite Electric
Furnace
Titanium
Slag
Pigment
Producers
(Sulphate process)
High Purity
Pig IronFoundries
~345ktpa mostly
sourced~200ktpa
containing ~80% TiO2
~110ktpa
Input Pre-reduction Smelting Outputs Customers
Rotary
Kiln
Tyssedal – What does it do?
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Developing a Huge TiO2 and Zr Mining Project in Senegal
Senegal
Ownership:
TiZir 90%, Senegal Govt. 10%
Concession:
25 years extendable
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Simple
Ore Body
No overburden
Minor
vegetation
Free flowing
sands
Minimal slimes
Uniform grain
size
Water
Shallow water
table +
Deep aquifer
Allows dredge
mining
Assemblage
10.7% zircon
74.5% ilmenite
2.5% rutile
3.2% leucoxene
90.9% VHM
Quality
Project
85ktpa zircon +
575ktpa
ilmenite
Long mine life
Scale
100km x 4 km
ore body
7,000 t/hr
dredge
36MW power
station
Own railway and
port facilities
Grande Côte – What makes it a quality project?
Developing a Huge TiO2 and Zr Mining Project in Senegal
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Developing a Huge TiO2 and Zr Mining Project in Senegal
Process Flow Sheet
Dredge
Wet Concentration Plant (WCP) Spirals
Stockpile of Heavy Mineral Concentrate
(HMC)
Wet High-Intensity Magnetic Separation
(WHIMS) Plant
Non- Magnetic Tailings Wet Tables
MSP Dry Mill
Zircon Rutile Leucoxene Products
Ilmenite Dry
Mill
Tailings
Magnetic
Stockpiles
Tailings
Tailings
Mining
Processing
Mineral Separation Plant (HMC to MSP)Truck
Tailings
Non-Magnetic Zircon/Rutile/Leucoxene/Kyanite/Quartz
Ilmenite
NB – All Tailings return to Dredge Pond
55 Mt/ y
1 Mt / y
7000 t/h
1.7 % HM
100 t/ h
30 t / h
140 t/h
55 Mt/y
7000 t/h
1.7% HM
1 M t/y
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Developing a Huge TiO2 and Zr Mining Project in Senegal
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TiZir Products
Avg annual
productionProduction description / target markets
Zircon 85 Kt
• Premium quality – low in key impurities
• Suitable for full spectrum of zircon consumers
• Container shipments provides logistics benefits for customers
Ilmenite
400 Kt
54% TiO2
• Feedstock for Tyssedal plant or market
175 Kt
59% TiO2
• Feedstock for chloride pigment production
Rutile 6 Kt • Premium grade and fine grain size – ideal for welding sector
Leucoxene 10 Kt • Suitable for welding sector
Titanium slag 200 Kt • Premium quality slag suitable for Sulphate process
Pig Iron 110 Kt • Premium quality for high quality iron castings
Developing a Huge TiO2 and Zr Mining Project in Senegal
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Safety is our Culture
• During the Construction Phase over 11 million hours reached with only 3 lost time
injuries (FR = 0.27)
• 400,000 hours of safety training delivered
• Peak construction workforce of 2,400, inclusive of 240 expats on site
• Expected long term workforce of 660 total incl. 65 expats initially
• Emergency Response Team & Clinic operational from start of construction
• Fire, injury & critical emergency drills carried out weekly
• Transition to Operations
• Zero Harm Policy
• Adaption of the philosophy
Developing a Huge TiO2 and Zr Mining Project in Senegal
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Community & Social Responsibility
Creating employment and investing in
education, health & infrastructure
• Substantial positive impact on the local
economy
• Local kindergarten built and supported
• Successful relationship with local village
elders
• Land compensation rates inline with World
Bank standards
• Assistance with infrastructure ongoing –
water bores, water towers, roads, etc
• Refurbishment of local schools program
underway
Developing a Huge TiO2 and Zr Mining Project in Senegal
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Sound Environmental Management
Operating to world-class
environmental standards
• Potential risk identification
• Develop & Implement an environment
management system based on ISO 14001.
Follow IFS standards and Equator Principles
• Rehabilitation plan proven, tested &
approved (Re-vegetation to use native plant
species – seed collection started)
• Monitoring program in place
• Partnerships with local service providers
(farmers, waste management)
Developing a Huge TiO2 and Zr Mining Project in Senegal
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Developing a Huge TiO2 and Zr Mining Project in Senegal
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Starting up a New Global Actor in the Heavy Mineral Sands Industry
• From a • SP TiO2 Feedstocks
• HP Pig Iron Player, to a
• CP + SP TiO2 Feedstocks
• HP Pig Iron
• High TiO2 products
• Zr for ceramics, refractory
+ other applications
Player
• Within very versatile and cyclical markets, our size (circa 8% of the world
MS) and our process allow us the flexibility and the ability to adapt to
the changing conditions.
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Starting up a New Global Actor in the Heavy Mineral Sands Industry
TTI optionality creates market flexibility
Slag
39%
Ilmenite
61%
Ilmenite
18%
Rutile
18%
Syn Rutile
+UGS
18%
Slag
46%Pigment
production
feedstock source
(Outside China)