Oyu Tolgoi Site Visit, August 2015

Transcription

Analyst and Investor Mine Visit
AUGUST 25-27, 2015
Oyu Tolgoi – a world-class
copper and gold mine
Forward-looking statements
This presentation includes certain “forward-looking information” within the meaning of applicable
Canadian securities legislation and “forward-looking statements” within the meaning of the “safe
harbour” provisions of the United States Private Securities Litigation Reform Act of 1995.
All statements and information, other than statements of historical fact, are forward-looking
statements and information that involve various risks and uncertainties. There can be no
assurances that such statements or information, including any statements relating to the status
of the Company’s relationship and interaction with the Government of Mongolia on the continued
development of the Oyu Tolgoi project and Oyu Tolgoi LLC internal governance, will prove
accurate and actual results and future events could differ materially from those expressed or
implied in such statements. Such statements and information contained herein represent the
Company’s best judgment as of the date hereof based on information currently available. The
Company does not assume any obligation to update any forward-looking statements or
information or to conform these forward-looking statements or information to actual results,
except as required by law.
For a more detailed list of specific forward-looking statements and information applicable to the
Company, refer to the “Forward-Looking Information and Forward-Looking Statements” section
of the Annual Information Form dated as of March 20, 2015 in respect of the year ended
December 31, 2014 and in the forward-looking statements contained in the Company’s press
release dated May 18, 2015 announcing the agreement to develop the underground mine.
All amounts are in U.S. dollars, unless otherwise stated.
2
Turquoise Hill overview

Strong Q2’15 production; record
concentrate production and throughput

Maintaining 2015 guidance

Robust operating cash flow in Q2’15;
large cash position and debt-free
balance sheet

Signing of underground agreement;
progressing project finance and updating
underground feasibility study

Oyu Tolgoi expected to be third largest
copper mine globally at full production

Low-cost copper producer well
positioned for long-term
3
Production highlights
Concentrator throughput ('000 tonnes)
Concentrates produced ('000 tonnes)
9,025
7,778
7,029
7,505
215.5
7,512
186.7
5,560
140.0
134.1
Q2'14
Q3'14
130.9
102.9
Q1'14
Q2'14
Q3'14
Q4'15
Q1'15
Q2'15
Q1'14
Throughput in 2H’15 expected to benefit from July shutdown
‘000 tonnes
60
Cu in concentrates ('000 tonnes) and grades
0.74
% Grade
0.8
Au in concentrates ('000 ounces) and grades
278
250
0.6
238
1.20
0.52
36.2
1.09
36.6
0.4
33.6
150
0.60
25.3
100
50
0
0
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Copper production in 2H’15 expected to be higher than 1H’15
0.80
0.80
0.48
132
113
0.49
0.2
Q1'14
% Grade
1.60
200
0.52
20
Q2'15
1.46
0.53
40
‘000 oz
300
0.69
50.3
Q1'15
Q2’15 production impacted by strong throughput and higher grades
55.3
0.59
Q4'15
0.40
86
66
0
0.00
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Gold production in 2H’15 expected to moderate as
grades decline beginning late in Q3’15
4
Financial highlights
Cash position ($'000,000)
Operating cash flow ($'000,000)
$417.5
$1,166.9
$954.2
$259.2
$862.8
$239.2
$153.8
$105.3
Cu: $2.97*
Au: $1,292*
$345.2
$140.7
Cu: $3.06
Au: $1,289
$201.2
$(111.9)
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q1'14
Growing cash position, debt-free balance sheet
$10.4
Expansion Capex
Cu: $2.66
Au: $1,218
Cu: $2.74
Au: $1,205
Source: Average quarterly Comex copper price and average quarterly LME gold price.
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Cash operating costs ($'000,000)
Sustaining activities
$292.4
$44.8
$14.2
Cu: $2.97
Au: $1,200
Five consecutive quarters of positive operating cash flow
Capital Expenditures ($’000,000)
$49.9
Cu: $3.16
Au: $1,284
$284.6
$245.5
$38.3
$36.4
$2.5
$6.7
$28.1
$30.4
$220.3
$218.9
$200.1
$3.4
$8.1
39.5
30.6
33.9
31.6
27.0
20.0
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
2015 CAPEX guidance: ~$230 million, ~$185 million sustaining
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
2015 cash operating cost guidance: ~$1 billion
5
Summary of Underground Development Plan
Concludes outstanding shareholder matters

Resolves initial development costs

Maintains Investment Agreement tax stability principles

Tax settlement of $30 million

Clarifies sales royalty calculation

Eliminates 2% net smelter royalty
Provides path forward for restarting underground development

Acknowledges definition of feasibility study as an estimate

Management Services Payment: 3% for underground construction

Outlines comprehensive funding plan
Overall NPV impact to Turquoise Hill is ~2% of total reserve case value
6
Unlocking the next phase of development
Resolution of
shareholder
matters
• Completed with signing of agreement
• Tax matters, 2% NSR, sales royalty calculation, MSP
Project
financing
• Advancing discussions with IFIs and IMLAs
• Expect to sign project financing by end of 2015
• Drawdown expected Q1’16/Q2’16 following approval of the updated
feasibility study by the Turquoise Hill, Rio Tinto and Oyu Tolgoi boards
Underground
feasibility study
• 2015 feasibility study tentatively approved by MMC pending update of
schedules and alignment with underground agreement
• Updated feasibility study to be resubmitted to MMC in September 2015
• Ahead of final board approvals, capital estimate completed
Permits
• Work on-going to secure all necessary permits
7
Restart milestones
Q3’15
Project Readiness
Q4’15
Q1’16
July underground restart
Estimate update, readiness works, early mobilization
• Update CAPEX estimate
• Complete critical and remedial works
• Enable schedule to de-risk and financing
processes
• Minimize cost and exposure without unduly
delaying project
Project
Approval
(Turquoise Hill, Rio Tinto,
Oyu Tolgoi boards)
To confirm
Feasibility Study
(Mongolian Minerals Council)
• Comply with law/underground agreement
• Reschedule of 2014/2015
• Now final checks and translation
Q2’16
Submitted
Project Financing
• Complete financing
• Enable Mongolian Government to action security
• Avoid drawdown until project approved
• Legally required – to update planned
schedule and for underground
agreement
• OTFS 2015 approved and registered
with order to update
Turquoise Hill
Technical
Report
Feasibility study update
Re-submit
As approved for
notice to proceed
Preparation, project
financing approvals
Conditions precedent , security,
project approvals
Sign
Drawdown
(incur fees)
(~$4B, repay shareholders)
1
Readiness execution plan
The aim is to ramp-up project team and
project readiness to restart without delay,
while not committing to any long-term
obligations
•
Mobilize and ramp up Owner’s and EPCM’s
respective teams
•
Complete full project re-estimate, re-schedule
and update project scope for OTFS 2015
•
Develop project systems, procedures,
processes and finalize the PEP
•
Deliver the detailed engineering and early
procurement for plant, equipment and
materials critical to project restart
•
Execute necessary critical works that are key
enablers for recommencement of lateral
development mining activity
•
Obtain necessary project permits for
commencing project execution
Project financing – flow of funds
Today1
At project financing drawdown
Payable to Turquoise Hill*
Receivable from Oyu Tolgoi*
Shareholder loan: $6.8 billion
1. In accordance with the ARSHA, Turquoise Hill funded the common share investments in
Oyu Tolgoi on behalf of Erdenes Oyu Tolgoi LLC; at June 30, 2015 the balance is
approximately $950 million
* Balances as of June 30, 2015 | Interest rate LIBOR + 6.5%
Proceeds: $4.2 billion2
$4.2 billion
$4.2 billion
Payable to Turquoise Hill*
Deposit from Turquoise Hill
to $3.0 billion3
to $3.0 billion
Investment: $4.2 billion
Waive 2.5%** guarantee fee
while $4.2 billion on deposit
2. Project finance facility made directly with Oyu Tolgoi
3. At drawdown, Turquoise Hill will provide Oyu Tolgoi with $400 million for fees and taxes
* Calculated on balances as of June 30, 2015 | Interest rate LIBOR + 6.5%
** When guarantee fee paid, Oyu Tolgoi pays 1.9% and Turquoise Hill pays 0.6%
Oyu Tolgoi cash call
Priority of funding used for development
 Oyu Tolgoi operating cash flow
 Project financing funds
 Turquoise Hill cash
Funding
Payable to Turquoise Hill
(2.5%** guarantee fee on funds used)
Shareholder loan: ↑
Equity loan: ↑
Funding
Shareholder loan: ↑
Equity loan: ↑
Funding
Reduction in deposit
from Turquoise Hill*
Deposit: ↓
* Indicative, does not show the withholding tax implications | original shareholder loan interest rate LIBOR + 6.5% | new amounts
subject to interest rate no more than LIBOR + 6.5%
** Guarantee fee - Oyu Tolgoi pays 1.9% and Turquoise Hill pays 0.6%
10
Medium-term timeline
2015 – 2016
• Sign project finance
• Complete feasibility
study
2016 – 2021
2021 – 2026
• Hugo North Lift 1 Construction
2026 ++
• First draw bell production
• Hugo North Lift 2
• Ramp-up to full production
• Hugo South
• Hugo North Lift 2 drilling
• Board approvals
• Drawdown project
finance
Additional Exploration
Evaluate Concentrator Options
11
2014 Technical Report
Reserve Case (Feasibility Study):
Life of Mine Case:
Open Pit and Hugo North (L1)
Open Pit, Hugo N (L1, L2), Hugo S, Heruga
Plant
*Life of Mine Case includes inferred, so not included in economic evaluation
 Proposes next sensible step in development, delivering significant value and
initiating access to future development
 Economics based on Reserve case production
 Large Resource base provides optionality (long life and expansion)
 Mine and processing design considers expansion probability
12
Highly attractive project economics
Units
2014 Reserve
Case
Total Processed
Bt
1.5
Cu Grade
%
0.85
Au Grade
g/t
0.32
Ag Grade
g/t
1.94
Copper Recoverable
B lb
24.9
Gold Recoverable
Moz
11.9
Silver Recoverable
Moz
78.0
Life
Years
41
Expansion Capital
US$B
4.9
NPV (8.0%) After Tax
US$B
7.43
%
29%
Years
9
IRR After Tax
Payback Period
Notes:
US$ amounts presented in real 2015 terms
(1) Expansion capital includes only direct project costs
13
Multiple development options
 Production creep targeted along with expansion
 Actual operating performance will inform choice of expansion path
 A decision to expand the concentrator is not required for a couple years
14
Copper industry overview
Post-2020 copper mine C1+sustaining cost curve (c/lb, 2015$)
400
 Third largest copper
mine after planned
expansion1
Oyu Tolgoi
Other Mines
300
 Top 10 copper
deposit by
contained reserves
and resource2
200
100
kt
0
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
 One of the largest
gold deposits by
contained reserves
and resources2
Cumulative production (kt)
-100
Source: Wood Mackenzie (Q1 2015 update)
Normal C1 cost + sustaining capex, range capped at -100/lb & 400/lb
2020 base, highly probable and probable mines only
1. Oyu Tolgoi’s 10-year average peak production including underground
2. Metals Economics Group and 2014 Oyu Tolgoi Technical Report (2020-2024 average costs)
15
Long-term copper fundamentals strong
 Small surplus likely over
next few years
Copper supply/demand outlook (mt)
Base
30
Highly Probable
Primary Demand
 Ongoing attrition at existing
mines driven by declining
grade
Forecast
25
20
 Continued demand growth
requires new capacity in
the medium-term
15
10
 Market anticipates deficit
towards end of decade
5
0
2000
2005
2010
Source: Wood Mackenzie (Q1 2015 update)
2015
2020
2025
 China now largest buyer of
gold and continues to be
largest consumer of copper
16
Turquoise Hill – a long-term growth opportunity

Pure copper and gold exposure

Positive operating cash flow and focusing on asset optimization

Agreed path forward for development of the high-grade underground mine

Significant growth, development and expansion opportunities

Resources located near China with further prospectivity
17
Appendix
Probable Development Schedule
Project Start
Complete Convey to Surface
Sustainable Underground
Production
Complete Concentrator
Upgrade
1st Draw Bell
Complete Ramp-up
Firing
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Set-Up
Excavation (Lateral / Mass / Vertical)
Undercutting
Extraction Level Access
Underground Ore Production
Material Handling
(CTS + Crushers + Shafts)
Surface Infrastructure
Concentrator
Processing
Upgrade
19
Oyu Tolgoi at China’s doorstep
20
Made in Mongolia

Mongolians now occupy 95% of Oyu Tolgoi roles

Since 2010, in-country spend of $4.6 billion
(Mongolian suppliers, salaries, taxes and other
Government payments)

Partnered with nearly 800 local suppliers in 2014,
accounting for over 50% of procurement spend

In April 2015, Oyu Tolgoi signed a Cooperation
Agreement with local governments for community
development

Oyu Tolgoi recognized by Mongolian National
Chamber of Trade and Industry as leading jobs
creator for 2013

Mongolian Mining Journal awarded ‘Oyu Tolgoi
Best Responsible Mine of the Year’ in 2014

Oyu Tolgoi expected to represent about 30% of
country’s GDP when fully developed
21
Oyu Tolgoi Operations Update
Forward Looking Statements
This presentation includes certain “forward-looking information” within the meaning of applicable Canadian
securities legislation and “forward-looking statements” within the meaning of the “safe harbour” provisions of
the United States Private Securities Litigation Reform Act of 1995.
All statements and information, other than statements of historical fact, are forward-looking statements and
information that involve various risks and uncertainties. There can be no assurances that such statements or
information, including any statements relating to the status of Turquoise Hill’s relationship and interaction with
the Government of Mongolia on the continued development of the Oyu Tolgoi project and Oyu Tolgoi LLC
internal governance, will prove accurate and actual results and future events could differ materially from those
expressed or implied in such statements. Such statements and information contained herein represent Turquoise
Hill’s best judgment as of the date hereof based on information currently available. Turquoise Hill does not
assume any obligation to update any forward-looking statements or information or to conform these forwardlooking statements or information to actual results, except as required by law.
For a more detailed list of specific forward-looking statements and information applicable to Turquoise Hill, refer
to the “Forward-Looking Information and Forward-Looking Statements” section of the Annual Information Form
dated as of March 20, 2015 in respect of the year ended December 31, 2014 and in the forward-looking
statements contained in Turquoise Hill’s press release dated May 18, 2015 announcing the agreement to develop
the underground mine.
БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2014, ОЮУ ТОЛГОЙ ХХК
COPYRIGHT © 2014 OYU TOLGOI , ALL RIGHTS RESERVED
2
Summary
 Significant number of improvement initiatives across all aspects of business





HSE (Critical risk management, leaders toolkit, water recycling)
Production (Value chain throughput improvements)
Maintenance (Tactics, condition monitoring, critical spares, rotables process)
Production planning (Geomet, sequence optimization)
Costs (National/Chinese procurement, contractor/expat reductions)
 Bulk of the work on base systems and processes
 Low hanging fruit, adopt/adapt from other businesses
 Some limited examples of leading practice
 Value chain throughput initiatives
 Mine operations equipment utilization
 Mine operations training
 Key challenge is not identifying opportunities, it’s prioritization
3
Our Vision – Our Future
4
Safety
•
Significant focus on safety in business
•
Injury rates reducing
•
A continuing significant exposure to critical risks with inexperienced workforce
5
Critical Risk Management
 Our first priority
Vehicle
Collision or
Rollover
Vehicle
Impact on
Person
Fall from
Height
Exposure to
Hazardous
Substances
Entanglement
and Crushing
Unplanned
Initiation of
Explosives
Underground
Fire
Slope
Failure
Underground
Inrush
Falling
Objects
Uncontrolled
Release of
Energy
Lifting
Operations
Underground
Rock Fall
Confined
Spaces
Contact
with
Electricity
Exposure to
Thermal
Extremes
Underground
Hoisting
6
Productivity Improvement Program
Objective: step change in productivity
(Aspiration - 25% increase from current demonstrated performance)
Key projects/activities
• 24 month program – transitioning
Outcomes
Increase free
cash flow
Increased and optimized payable
metal from resource to customer
• Mine-to-market process integration
Operational
excellence
Maximized value from operations
while optimizing free cash flows
• Combine leading practices across
Increased
labour
productivity
Increase free cash flow over the next
five years
Improved
utilization of
the assets
Optimized supply chain and
integration with customers
to ongoing improvement
• Stabilizing current processes
through process control
and optimization methodology
(including debottlenecking)
Rio Tinto and external partners
• Strategic production planning by
optimizing mine planning
/sequencing for faster milling and
higher grades)
7
Concentrator Throughput Improvements
8
Process Control Improvements
1. SAG Circuit
•
•
•
•
•
Load Control & Constraint
Maximum Speed Control
Auto Direction balance
Acoustic Retrofit (Audiomill & Hydrophone)
Auto Grind Out, Controlled Stop/Start
•
•
•
Regulatory Control
Feed Density Control
Constraint back to SAG
√
√
√
•
•
•
•
PLC – DCS Migration
Cavity Level Control
Crusher Inventory Balancing
Auto Gap Adjustment
√
√
√
√
•
Tailing Thickener Constraint Control
√
•
•
•
•
Process Control Online KPI
Processbook Trend & Control Monitoring
Constraint Tool
Online documentation
2. Ball Mill Circuit
3. Pebble Circuit
4. Auxiliary Circuit
5. Monitoring Tool
√
√
√
In progress - 80%
√
√
√
√
In progress – 70%
9
Additional Concentrator Magnets
SAG Throughput Increase - Pebble Crusher Utilization
10
SAG Grinding Media Improvements
SAG Throughput Increase – SAG Grinding Media
• Changed from S-Series to T-Series to P60 series, lowering hardness.
• Modified SAG operating philosophy to reduce ball impacts on liners
Jan 2014: S-Series
0.85%C, Surface 60-63HRC
1% round balls
Jan 2015: T-Series
0.74%C, Surface 58-60 HRC
60% round balls
July 2015: P60 Series
0.55%C, Surface 55-56HRC
100% round balls
11
Thickener Distribution Improvements
Tailings Throughput Increase
BEFORE
AFTER
12
Medium‐Term Production Plan Optimization
B
Phase6
Phase7
Phase2
Phase4
Phase8
Phase1
Phase5
Phase9
Phase3
Phase10
A
Waste Cu
Au
As in Con
 Ore Overspill risks from outer phases Phase 01
Phase 02
Phase 03
Phase 04
Phase 05
Phase 06
Phase 07
Phase 08
Phase 09
Phase 10
(Mt)
10
40
40
100
150
50
90
60
30
420
(Mt)
0
10
50
150
260
70
90
230
200
800
(%)
0.72
0.55
0.56
0.42
0.38
0.60
0.54
0.45
0.33
0.44
(g/t)
1.71
0.81
0.16
0.42
0.27
0.08
0.12
0.05
0.30
0.33
(ppm)
40
80
490
190
380
5550
5700
2110
220
1630
Tput
(t/hr)
4080
4290
4860
4070
4090
7420
6260
4660
3350
4400
Phase 6a
Hugo West
40
30
40
70
0.66
0.33
0.07
0.25
7210
‐
7370
4,290
Phase
 Includes revised TSF strategy to simplify design and balance mine and mill requirements БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2014, ОЮУ ТОЛГОЙ ХХК
13
Cost Reduction Improvements
 Contractor reductions
 Maintenance labour insourcing
 Maintenance labour efficiency
 Reduced site services
 Procurement savings
 Logistics, Fuel, Grinding Media
 National and Chinese supply
 Expat reductions
 Development of Mongolian leaders
 More than 50% expat reduction target to end 2016
14
Other Key Risks
• Mine design risks
• Mining rate – in particular vertical
development – Hydraulic shovel
reliability, wall control, D&B
performance
• Major component maintenance risks
(some plant moving out of
component honeymoon period)
• Potential catastrophic failure of
critical piece of equipment
(thickener rakes, crusher motor, etc.)
• Inexperienced workforce (safety
culture, peak maintenance
challenges, increased operating
demands). Continued expat
reductions (350 in 2013 to 175
current)
•
Revised mining sequence on track
•
Improvement projects in place, mining
rates are tracking to plan and pit slope
issues are being managed
•
Truck engine replacement program is
ongoing
•
Reliability issues and forward planning
in the concentrator are receiving
significant focus
•
All critical roles are filled, with ongoing
leadership toolkit rollout.
•
Continued reduction in expat support
and promotion of national employees
to leadership roles
15
Oyu Tolgoi Site Visit
AUGUST, 2015
Oyu Tolgoi –
Underground Mine Discussion
Forward-Looking Statements
This presentation includes certain “forward-looking information” within the meaning of applicable
Canadian securities legislation and “forward-looking statements” within the meaning of the “safe
harbour” provisions of the United States Private Securities Litigation Reform Act of 1995.
All statements and information, other than statements of historical fact, are forward-looking
statements and information that involve various risks and uncertainties. There can be no
assurances that such statements or information, including any statements relating to the status
of Turquoise Hill’s relationship and interaction with the Government of Mongolia on the continued
development of the Oyu Tolgoi project and Oyu Tolgoi LLC internal governance, will prove
accurate and actual results and future events could differ materially from those expressed or
implied in such statements. Such statements and information contained herein represent
Turquoise Hill’s best judgment as of the date hereof based on information currently available.
Turquoise Hill does not assume any obligation to update any forward-looking statements or
information or to conform these forward-looking statements or information to actual results,
except as required by law.
For a more detailed list of specific forward-looking statements and information applicable to
Turquoise Hill, refer to the “Forward-Looking Information and Forward-Looking Statements”
section of the Annual Information Form dated as of March 20, 2015 in respect of the year ended
December 31, 2014 and in the forward-looking statements contained in Turquoise Hill’s press
release dated May 18, 2015 announcing the agreement to develop the underground mine.
2
Execution
Hugo North - Underground Mine
Physical Infrastructure
•
•
•
•
•
Underground mine able to
produce 95ktpd.
5 shafts (personnel & equipment
access and ventilation).
Material handling system
(crushers and underground
conveyors to transport ore to the
surface overland conveyor).
Concentrator upgrade to handle
higher copper content of
underground ore.
Associated surface infrastructure
(Underground Mining offices,
control room & associated
facilities).
Operational Capability
•
•
+
•
•
•
•
•
Underground Operations team
(production + ongoing
construction + maintenance +
technical services).
Mongolian workforce with
appropriate expatriate support).
Safety systems and supporting safe
work procedures.
Training systems and capability
Cave Management system,
including appropriate technical
oversight.
Asset Management systems
Support & logistics (major supply
contracts and contractors).
3
Expansion Scope
• Development of HNL1, by panel cave mining method
• A high grade ore body ~2km long and 280m wide,
containing 499Mt ore at 1.66% Cu, 0.34g/t Au
• >200km of underground lateral development
Key
Aspects
• Five vertical shafts and a decline incorporating conveyor
to surface
• Concentrator throughput of 100ktpd is not expanded, but
there is an upgrade to enable processing of higher grade
feed
• Associated surface infrastructure
4
Oyu
Underground
SiteTolgoi
Actuals
• Shaft 1 sink to 1385m in 2008
• 16km off-shaft lateral
development 2008 – Aug 2013
• Shaft 2 sink to 1167m and has
~100m to go
• Shaft 5 sink to 208m and has
~ 1,000m to go
• Extensive geotechnical data
collection program
• Demonstrated performance
and quality
БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2012, ОЮУ
ТОЛГОЙ ХХК
5
5
Ore Flow
6
Probable Development Schedule
Project Start
Complete Convey to Surface
Sustainable Underground
Production
Complete Concentrator
Upgrade
1st Draw Bell
Complete Ramp-up
Firing
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Set-Up
Excavation (Lateral / Mass / Vertical)
Undercutting
Extraction Level Access
Underground Ore Production
Material Handling
(CTS + Crushers + Shafts)
Surface Infrastructure
Concentrator
Processing
Upgrade
7
Production – Reserve Case
Reserve Case: Southern Oyu Open Pit / Hugo North Lift 1 Panels 0 to 2
Final year of processing in 2055
50,000
45,000
Concentrator feed (kt/y)
40,000
35,000
30,000
25,000
20,000
Hugo North
15,000
Central Chalcopyrite
10,000
Central Covellite
Central Chalcocite
5,000
South West
2055
2054
2053
2052
2051
2050
2049
2048
2047
2046
2045
2044
2043
2042
2041
2040
2039
2038
2037
2036
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Note: Based on 2014 Oyu Tolgoi Technical Report
БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2012, ОЮУ
ТОЛГОЙ ХХК
8
8
Geotechnical
• Hugo North orebody is
– Highly faulted
– Fair rock mass strength
– Relatively high insitu (horizontal)
stresses and abutment stresses
• This is good for promoting caving and
minimising secondary breaking
• The challenge and key focus for the Oyu
Tolgoi design and operating plan is around
– Maintaining stability of orebody
development drives
– Managing draw interaction and draw
control
9
9
Cave Support
Ground
Support
Fair to good rockmass, static
conditions ,support resistance
=80kN/m2
Minimum 2.4m bolt
and shotcrete
A high stress environment,
support resistance =
100kN/m2
Add mesh. Cables
and strapping @ 2m
Major faults and
weak rock mass
support pressure
>180kN/m2
Add Cables and
strapping @ 1m
Major faults and strain
burst prone rockmass
ground support regime
Add yieldable
support
10
10
Cave Monitoring
• Cave Growth & Flow monitoring
systems will be in place before start up
of the undercut:
– Seismic system
– TDR & open holes
– Smart/network markers
– Cave Tracker
• Regular surface subsidence monitoring
will be carried out
11
Cave Management
Single data repository
Real-time hazard recognition
CaveCad
Collecting, Validating, Processing,
Analysing and Reporting data
automatically
Pillar stability
Standardised cave
management systems
3D analysis and reporting
HOD
Reports
Convergence
High
Medium
Low
Integrated system; reduces the process of collecting, analysing and reporting significantly
12
© 2011 Rio Tinto Technology & Innovation
Undercut
•
•
•
•
Undercut blasted in advance of drawpoint and drawbell excavation
Undercut face length < 350m and retreats at > 80m per year
Undercut lead / lag is 10m
Undercut face orientation + drives favourable to stress and structure
Undercut
13
Undercut
APEX
To
Drill
Drilling
Blasting
28m
28m
17m
UNDERCUT
17m
EXTRACTION
28m
The ‘Wide W’ has significant benefits over
traditional ‘Small W’
• Improved stability
• Improved operability
14
Extraction
Drawbell
Steel Set
Ore
Pass
Drawpoint
Extraction Drift
IDZ
10 m
28m
Drawbell
blast
12 m
15m
Vent
Raise
Mine
Spacing
Fragmentation
Andina
26m x 13m
Very Fine
New Afton
28m x 15m
Fine
Oyu
Tolgoi
28m x 15m
Fine (Expected)
DOZ
30m x 18m
Mid
Palabora
34m x 17m
Coarse
15
Drawbell Construction
16
Production
At full production:
Production LHD
• 23 x 14 tonne LHD
machines
Secondary Breaking: Hangups
• 2 water cannons
• 3 “medium reach” drill and
blast rigs
Secondary Breaking:
Oversize
• 6 “oversize” drill and blast
• 2 mobile rockbreakers
Smaller extraction drives are
under review as risk
reduction measure
17
Production
Trucking
• 9 x 160 tonne haul trucks
• One way flat haul loop
• Engineered roadbase
• Requires same profile as 80t
truck
Crushing
• 2 of 1,600mm x 2,400mm
gyratory
• 4,000tphr each
• Direct truck tip
• 650t fine ore bin
18
Ore Handling
Ore Handling
Shaft #2
• 10m dia service and production
shaft
• 2 x 60t skips
• 1,630tphr (~19hr/d)
30kt/d
19
Ore Handling
Ore Handling
Conveyor to Surface
• 3 x 2.2km legs
• 1,600mm wide belt @ 6m/s
• 6,500 tphr
• 2 x 6 MW Gearless drives each leg
• Commission 6 mths before 30kt/d
30kt/d
95kt/d
20
Exploration Update
August 27, 2015
Petroglyph from
Javkhlant Mountain
Oyu Tolgoi Mine Site from
Javkhlant Mountain
Exploration Service Agreement
Oyu Tolgoi Orbit
Target Testing
2017
Target Generation,
securing tenement &
definitive test of the Teregt
Licence
2016
2015
2014
TRQ – RTX data compilation
& integration
2014
 TRQ-RTX Service Agreement executed in Dec.
 Integration of TRQ, RTX & public domain data
& transfer into managed systems
 Rock and stream geochemistry interpretations
2015
 Litho-structural & tectonic mapping
 3D petro-physical data modelling
 Prioritise areas for tenement application
 Definitive test of Teregt licence targets
_^^_
^^__^_
2016
• Continued Target Generation & Target Testing
pending successful tenement acquisition
Litho-structural & tectonic map of the service agreement area
2
Integration of data and exploration knowledge
Geology/Remote sensing
• Field observation data points,
• Structural and tectonic interpretations.
• Landsat, SPOT and Aster imagery with
geological and alteration interpretation/analysis.
• Validated geochronology and mineral occurrence
database
Geochemistry
• Surface Rock – 4,800 samples/ 8 elements.
• Stream – 210 samples, 36 elements.
• Litho-chemistry ->150 samples, >45 elements.
Geophysics
• FALCON gravity and magnetics – ~16,000 line
km @800m line spacing / 80m elevation.
• GETECH gravity and magnetic compilation
• Ground magnetics ~10,000lkm
• Ground gravity – >10,000 data points.
• IP – Zeus gradient array, VIP, DDIP
Drilling
• 71,816m / 297 drill holes including 285 with
geology logs, 193 holes with 12,712 analyses
(Au, Cu, Mo only)
3
Regional 3D data modelling and
interpretation
Interpreted Palaeozoic
Basement topography using
magnetic and gravity depth to
source modelling, constrained by
311 drill holes
Interpolation of 3D petro-physical data
model based on inversion of FALCON and
ground gravity and airborne magnetics,
constrained by the basement topography
4
Service Agreement - Oyu Tolgoi
Orbit
Released for Application (4335 km2)
Released for Tender (3750 km2)
Exploration Licenses
Mining Licenses
Ulaan Khud
Reserved Area
^_^_
^_
^
_
_
^_
Protected Area
Cu Deposit
• New exploration licences issued
via online direct application
system for Western Mongolia
initiated on 26th Jan 2015. 900+
companies registered to apply,
54% of applied licences granted.
Teregt
Oyu Tolgoi
Mine Licences
• Eastern Mongolia including the agreement area open for direct application of
exploration licences as of August 24, 2015.
• Turquoise Hill local subsidiaries will apply for licenses following the MRAM
process and guidelines.
5
Mineralized trend of ~26km
6
Teregt Licence – Exploration
Javkhlant South
IVN gradient array IP survey chargeability
Oyu Tolgoi
Teregt
10 km
Teregt
TRQ-RTX exploration:
•geochemical interpretation,
•mapping,
•zircon geochronology & fertility,
•Greenrock fertility
•DDIP & MT geophysical
surveys
Histogram of single zircon ages from the three Teregt U-Pb dating samples
7
Teregt : Zircon and Greenrock Analysis
Green rock
Age dating
!(
!(
344.1
350.9
321.1
(! 254
321.9
!(
327
!(
!(
306
311.9
!( 318.7
353.4
Teregt SE
(Cu-Zn geochem)
• Epidote, chlorite and zircon
chemistries suggest
sampled propylitic alteration
not to be porphyry
associated and intrusive
phases to have low Cu
fertility potential
Teregt Zircon U/Pb ages
Kharmagtai
Oyu Tolgoi
8

Oyu Tolgoi Site Visit, August 2015

Transcription

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