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O D W BN I A M O N D S E U I L D

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Namdeb Operations29 March 2006

Presented by: Chris SivertsenGeneral Manager


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Agenda1. WHAT IS NAMDEB?

• Location• Deposit• History

2. SAFETY, HEALTH and ENVIRONMENTAL3. FINANCIAL TRENDS4. PRODUCTION5. CONTINUOUS IMPROVEMENT6. STRATEGIC BUSINESS PLAN7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS

• Capital program• Pocket Beaches • Marine Dredging Project• Elizabeth Bay LoM Extension• Inshore Project


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What is Namdeb?

A collection of Mines

Northern Areas

Orange River Mines

Mining Area 1

Pocket Beaches

Atlantic 1

ETOSHA PAN

Republic of

SPERRGEBIET


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… on a World Class Placer deposit

What is Namdeb?


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UPINGTONUPINGTONORANGEORANGE

VAALVAAL

ORANGE

ORANGE

ORANJEMUNDORANJEMUNDKIMBERLEYKIMBERLEY

JOHANNESBURGJOHANNESBURG

Where did the diamonds come from?


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• First Diamond found in 1908 by Zacharias Lewala

• Extensive Mining by 1912, around Luderitz

• CDM formed in 1920

• Focus around Oranjemund from 1934

• Marine Mining first tested in 1960

• Namdeb created in 1994

• Over 80 million carats produced to date

History


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Agenda

1. WHAT IS NAMDEB?• Location• Deposit• History

2. SAFETY , HEALTH and ENVIRONMENTAL3. FINANCIAL TRENDS4. PRODUCTION5. CONTINUOUS IMPROVEMENT6. STRATEGIC BUSINESS PLAN7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS



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2005 ACHIEVEMENTS

Safety

• 4 Million Fatality Free Man Shifts reached

• 30% Reduction in Minor Injuries against 2004

• Retained triple NOSCAR status

• Lowest ever LTI Severity rate

• All 3 operations placed on the International top 100 list for world class SHE performance

• MA1 – Best Surface Plant

• All operations awarded 5 Star Platinum status

NOSA NAMIBIA AWARDS


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20% REDUCTION IN LOST TIME INJURIES

15

810

29

149 8

37

711 10

5

10

15

20

25

30

35

1997 1998 1999 2000 2001 2002 2003 2004 2005

LTI LTI Target 2005 Fatalities

Safety - 2


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0.18

0.60

0.320.23

0.200.07 0.20

0.35

0.230.17

0.000.100.200.300.400.500.600.70

1997 1998 1999 2000 2001 2002 2003 2004 2005

L.T.I.F.R. Target 2005

GROUP AVERAGE 2005 = 0.22

Reduction in Lost Time Injury Frequency Rate

Safety – 3


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Namdeb Hospital

AIDS RELATED DEATHS (ART benefit)

0

1

2

3

4

5

6

7

8

2002 2003 2004 2005

Deaths

163 Employees and/or Life Partners now on ART


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Environmental

ISO 14001 Audits– Namdeb to be recommended for certification to

new ISO 14001: 2004 version

Simplified Environmental Management System Pilot Study

– Pocket Beaches site 2,3 and 4 selected

Rehabilitation and Closure

– Draft plans for Orange River Mines and Pocket Beaches

– Class 0 Closure cost estimate completed

– Pilot studies initiated


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Skilpadberg Rehabilitation Trial

before

after

Environmental - 2


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Agenda





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SBP Revenue Analysis by Area

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2006 2007 2008 2009 2010

MA1 excl MDP Marine Dredge Orange River Northern AreasBeach & Marine Midwater Atlantic 1


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Agenda





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Production – Trend

Namdeb Carat Production

0.0

500.0

1000.0

1500.0

2000.0

2500.0

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Car

ats

'000

Atlantic1MidwaterBeach & MarineNorthern AreasOrange RiverMarine DredgeMA1 excl MDP


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Agenda


2. SAFETY and ENVIRONMENTAL3. FINANCIAL TRENDS4. PRODUCTION5. CONTINUOUS IMPROVEMENT6. STRATEGIC BUSINESS PLAN7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS



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Continuous Improvement

Longer life

Total mineable accreted 2.4m tons & 115 000 cts

U 70 to U 90 accreted1.3 m tons & 65 000

cts

3 Plant Accreted Beaches


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– Configure Process for Maximum Recovery

– Optimise Plant Flow Sheet

– Minimise Working Cost

– Maintain a Skilled & Motivated Team

2 Plant Turnaround Strategy

Continuous Improvement - 2


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Elizabeth Bay Mine Reconciled MCF

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06

Focus group initiated

Mine Call Factor Focus Group

Continuous Improvement - 3


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Agenda





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JUNE 2005 SBP PRODUCTION PROFILE2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2 Plant Dump3 Plant3 Plant Dump4 Plant4 Plant DumpPTFPTF DumpDredgeRTRPocket BeachesMarine DredgeDaberasSendelingsEBayFluvial Footwall1 Plant DumpOMS SouthOMS NorthAuchasObibAuchas LowerArrisdrifBogenfels LandInter TidalUltra Shallow

Base Case Most Likely Blue Sky

Strategic Business Planning


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June 2004 SBP Carat Profile

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Years

Car

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00)

Blue SkyMost LikelyBase Case

16.1

30.720.5

Declining Land Resource


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Sendelingsdrif

Where are our Projects?

ORANGERIVERMINING

LICENCE

MININGAREANo1

MININGLICENCE

BOGENFELSMINING

LICENCE

ATLANTIC1MINING

LICENCE

ORA

NG

E RI

VER

ALEXANDER BAY

Auchas

.

Daberas

Bogenfels Arch

ORANJEMUND

DOUGLASBAY

MININGLICENCE

LÜDERITZ

ELIZABETHBAY

MININGLICENCE

ELIZABETH BAY MINE

NN

Elizabeth Bay

Recovery ProjectsMarine Dredging

Dump Retreatment

Pocket Beaches

Wet Overburden Mining South

Sendelingsdrift

Inshore Projects


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ORANJEMUNDORANJEMUND

HOTTENTOTS BAY

Elizabeth Bay

Chameis

1.00.8

0.6

0.5

0.4

0.40.4

0.30.2

0.1

0.25

0.15

0.25

....

1.0 - 2.0

LUDERITZLUDERITZ....

Average Stone Size varies


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Where do we focus?

Bubble Size Represent Capital Investment (N$)

AMV 2

Sendelings Off-Beach System

AMV 3WOMS(Dredge2)

Risk

Rew

ard

Invest to Invest to Invest to reduce riskreduce riskreduce risk

ParkParkParkShare?Share?Share?

Do it !Do it !Do it !


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TOTAL CARATS MINED SPERRGEBIET & COAST1908 - 2003

LAND70.4 m

SEA8.2 m

Atlantic 15.8 m

MDC1.7 mNamdeb

Midwater0.8 m

SEA PRODUCTION1962 - 2003

Historical Recoveries from Land and Sea


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Focus moving from Land to the Sea

June 2004 SBP Carat ProfileBase Case

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Years

Car

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00)

LandMarine

June 2004 SBP Carat ProfileMost Likely

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Years

Car

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00)

LandMarine

June 2004 SBP Carat ProfileBlue Sky

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Years

Car

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00)

LandMarine


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Agenda





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Sampling & Prospecting

N$

MIL

LIO

N

EXPENDITURE – 1994 TO 2005Today’s Money

LAND SEA

0

50

100

150

200

250

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05


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JUNE 2005 SBP PRODUCTION PROFILE2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020



BG36

Liberation Plant

DUMPS

FLUVIAL FOOTWALL

ORANGE RIVER

Sampling linked to SBP


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100 000 cts

INFERRED RESOURCE

*

*

**

*

**

**

* 2006 Sample pits

315 000 cts

INDICATED RESOURCE

Sendelingsdrif Bulk Sample (2007)


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Drilling confirms gravels extensionto south and west

Mega trench complete• Theft during treatment• Cementation in west

Resource extension confirmed north and south

Pocket Beach Site 2 Extension


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JUNE 2005 SBP PRODUCTION PROFILE

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020



0 0 0 1.04 0.09 0 0 0

0.14 0.09 0.36 0.48 0.23 0.1 0 0 0 0

0.1 0.1 0 0.17 0.54 0.12 0 0 0 0 0

0 0 0 0.39 0.37 0.15 0 0 0 0

0.09 0.09 0 0 0.85 0.34 0.34 0 0 0

0.08 0.1 0.4 0 0 0 0

0 0.36 1.24 0.56 1.97 0.12 0

0.3 0 0.85 0.61 0.56 0.69 0.23

Jetrig

Seawalker

Resource Estimation

(Geostatistical Analysis)

BOGENFELS

ITC

ULTRA SHALLOW

Sampling linked to SBP - 2


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Agenda





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Other, 50

Earthmoving, 115

Atlantic 1 Dredging Trial,

400

Accommodation Upgrade, 35

Geological Sampling

Recovery, 28

No. 3 Plant Upgrade, 93

Strategic Projects, 12

Exploration, 45Inshore, 21

ORBIT, 21

Pocket Beaches, 136

CAPITAL PROGRAM FOR 2006 IS N$956m

Strategic Projects


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SITESITE 22

SITESITE 33 && 44

SITESITE 1111 && 1212

LUDERITZ

ORANJEMUND

DREIMASTER BAY

BUNTFELDSCHUH

CHAMEIS BAY

FORT REEF

SOUTH ROCK

NORTH ROCK

BAKERS BAY CAMP

ATLA

NTIC

OCEA

N

ATLA

NTIC

OCEA

N

Chamais Chamais GateGate

54

3

21

Plant Location Site 2

Plum Pudding Island

Sinclair Island

Roast Beef Islets

GREEN PRECIPICE

DERNBERG

Bogenfels Arch

Seal Colony

Barge 77


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Pocket Beaches Site 2 – new concept


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A

B

C

D

E

F

A

BC

B234B235XB

5

5

5

5

5

5

5

5

5

5

5

5

5 10

10

5

10 15

5

2.52.5

7.5 2.5

7.5

7.5

7.5

7.57.5

7.5

7.5

10

10

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

5

7.5

7.5

10

2.5

2.5

5

55

52.5

2.5

2.5

2.5

2.5

0 0

0

0

0

0

0

00

2.5

5

55

2.5

5 2.5

2.52.5

2.5

2.5

2.5

Cut-off WallSite 11 & 12 - Project Concept

Stripping : 21.5 million tonsGravel : 1.1 million tonsCarats : 365 000

Gravel Mining

Dredge Overburden Removal


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PBA Phase 2 – Major Risks

• Cut-off Wall Integrity• Security when mining & treating high

grade material• Dredge water supply• Duration of pond dewatering• Environmental & Stakeholder Issues• Project timing

!

!

!!

!!

- 3rd Party Audits- Testwork- Prototype Equipment (SWI Trials)- Specialist Studies- Contingency Plans- Stakeholder Involvement

Assurance Plan


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• Evaluate the potential to economically extract lower grade marine resources with TSHD technology. ( ≤ 0.1 ct/m2)

• High mining rates (Target > 900m2/hr)

• Carat Production from January 2007

• Lower capital / high working cost operation

• Expansion potential in low grade deposit

OBJECTIVES

Marine Dredging Project


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The concept


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How?


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The Pipeline


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Pumping!!!


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BEFORE DREDGING

AFTER DREDGING

SURVEY DURING DREDGING OPERATIONS

MINING AREA


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All marine life:• Baseline surveys done• Monitoring will continue for 14 months

Overflow monitoring• Overflow appears very clean• Monitor samples taken

Environmental (8%)

Sea overflow Land overflow


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• Mining Rate– 7 weeks of dredging

completed– 1 086 000 m2 mined– Average 920 m2 / hr

• Depletion– Initial test panel depletion low ( < 60%)– Draghead changes made– Additional mining and sampling – Significant improvement ( 75%)

RESULTS

Atlantic 1 Trial


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87% 65%

82% 64%

P1D06 depletion 75%

Atlantic 1 Trial


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Elizabeth Bay Project: N$ 450 million

New Primary Liberation Area with water-flush

primary crusher

New Secondary Liberation

Building, with secondary

crushers, tertiary crushers and

mills.New Sea Water Intake system, new CCR, new fine tailings disposal

system, new workshop, new Recovery and other

infrastructure


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A World Class Plant with a long future


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Key Statistics of a fast track project

• Project feasibility launched: October 2001

• Project approval: March 2003

• Construction began: September 2003

• Construction completed: November 2004

• Ramp-up slower than expected – Series 3

• Construction Contractors were 84% Namibian overall


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Inshore Project - Area of interest

R & D Project


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We have come a long way!

Attempts in the 1980’s


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The Jet Rig


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The Jet Rig - 2


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The Seawalker


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Gully Mining Machine Prototype


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We are changing our paradigms . . .


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Thank you !

on diamonds we build - anglo american plc/media/files/a/anglo-american-plc-v2/... · • inshore...

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