De Beers Marine Namibia

Transcription

1 De Beers Marine Namibia The journey continues Mission :To prospect for & mine marine diamonds in a sustainable manner to the benefit of our shareholders & stakeholders Sharehol der St ruct ure in N amibia GRN DBC 50% 50% NAMDEB 30% 70% DBM NAMIBIA Sharehol ders Operating companies

2 Lüderitz Windblown deposits Elizabeth Bay Deflation deposits NAMIBIA Distribution of Namdeb s deposits Pocket Beaches Chameis Linear Beaches Submerged Beaches OMD River deposits RSA PRODUCTION HAS GROWN BY 82% SINCE MIGRATION FROM RSA CARATS (000's) 1, CARATS AREA Atlantic 1 - Production Performance B 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 AREA (m² 000'S) Motto :Innovation... challenging the boundaries

3 DBMN LARGEST DIAMOND MINER IN 2005 DBMN A % Namdeb DA % Other - marine % % Motto :Innovation... challenging the boundaries DBMN Fleet ( carats) 201k 138k CS = 96k Atlantic Ya Toivo 186k 152k Grand Banks Pacific 149k!Gariep Vision :The largest diamond miner in Namibia...forever

4 LTIFR TREND 25 OHSAS LTI' s LTIFR LTI's LTIFR ENVIRONMENTAL RESEARCH FOCUS TAILINGS PLUME H 2 S eruption Luderitz NATURAL VARIABILITY TOOL ACTION Orange River floods

5 More than just a mining company Training & Development is an integral part of overall strategy to ensure a competent & skilled workforce, & to support AA. 605 permanent employees 70% Namibian N$15 million on training per annum AA certified in 2003/4/5 Donations to the needy in the society Teamwork Integrity Excellence Respect More than just a mining company HIV/AIDS. RESPONSE ART programme VCT programme Education campaign Free for employees & their life partners Teamwork Integrity Excellence Respect

6 TOOL DEVELOPMENT & FUTURE CAPACITY BUILDING CRAWLER MOUNTED DREDGE Recent technology in Atlantic 1 Ongoing incremental improvement AIRLIFT DRILL-SHIP Known technology in Atlantic 1 Ongoing incremental improvements Quantum improvement in 2005

7 TRAILER SUCTION HOPPER DREDGE... future candidate? New technology in Atlantic 1 Quantum leap potential Chameis trial - Jan 2005 Environmental sensitivity Trial mining in Atlantic 1- Q DBMN RATE IMPROVEMENT HISTORY 300 Wide Channel 250 Mining Rate in m2/h Jet Water DBE II DBE 2.5 Enlarged drill pipe

8 DBMN PRODUCTIVITY IMPROVEMENT ATLANTIC 1 HISTORY CARATS & GRADE Carats Recovered (000) Grade Recovered (ct/m2) Carats (000) Cts/m B 0.000

9 GRAND BANKS 2005 UTILISATION Hours % Positioning 248 3% Env 198 2% RAS 55 1% Sea Trials - 0% Steaming - 0% Other delays 130 1% A/Water del % U/Water del. 4 0% WOW 452 5% PM 185 2% In-port - 0% Mining 7,452 84% TOTAL 8, % 84% 2% 3% 1% 0% 1% 2% 5% 2% 0% Positioning Env RAS Sea Trials Steaming Other delays A/Water del. U/Water del. WOW PM In-port Mining RESOURCE GENERATION EFFORTS GEOPHYSICAL SURVEY N$30m SAMPLING N$113m PRODUCTION N$1 377m m.v.ya TOIVO m.v. DOUGLAS BAY m.v. GRAND BANKS m.v. CORAL SEA m.v. DEBMAR ATLANTIC ENVIRONMENT N$3.9m m.v. DEBMAR PACIFIC m.v.!gariep

10 CHALLENGING THE LIMITS Days to complete a mine support survey Meob Bay Spencer Bay Zealous 97 Zealous 98 Zealous 99 1 AUV Bathymetry Pre 2000 Swath Bathymetry Today

11 TOOL PERFORMANCE ASSESSMENT Maximum trench depth: 6 m Trench Tailings Ya Toivo Mined ground 1.5 x vertical exaggeration Drillship Mined ground ATLANTIC 1 RESOURCE AREAS Primary Exploration Areas Areas of low interest Low information High potential Low information 4m overburden contour Thick mud areas High potential Low information Diminishing potential northwards Moderate potential Low information Diminishing potential offshore Atlantic 1 Mining Licence- approx. 6100km 2 new Global Resource Area- 1432km 2 Low potential Low information

12 GLOBAL RESOURCE celebrate ESTIMATE success - CALCULATIONS Cut-off (cts/m²) Area (km²) Mcts Ave grade (ct/m²) , Profitability of Present Resource - July Mct Reserve Indicated Inferred non-profit profitable Existing Fleet (N$889m +163k cts pa) DP, DA, GP Conversion 500NB to 600NB Treatment Plant replacement Power generating upgrade New Vessels AMV2 - N$1.4b + 392k cts pa Dredge Trial R & D (N$48m) AMS Phase 2 Technology Development Future Vessels NEV AMV3 Investing in the future... Strategic projects Teamwork Integrity Excellence Respect

13 Combined marine & land production Future Scenarios 3,500 3,000 Total Most Likely Total Blue Sky 2,500 Capital = N$10.32b '000c 2,000 1,500 1, Capital = N$5.29b Years Teamwork Integrity Excellence Respect MARINE SBP SCENARIOS MOST LIKELY N$3.27b 1400 Carats ('000' AMV2 Current Fleet Improvements Current Fleet Mission :To prospect for & mine marine diamonds in a sustainable manner to the benefit of our shareholders & stakeholders

14 MARINE SBP SCENARIOS BLUE SKY 2500 N$6.20b 2000 AMV3 Carats ('000' AMV2 Other Vessels Current Fleet Improvements 500 Current Fleet Vision :The largest diamond miner in Namibia...forever Marine contribution in the Namdeb context... Marine includes mid-water and Beach & marine 1,800 1,600 MARINE LAND 1,400 1, crts 1,

15 While land production continues for years, note profit declines and marine potential growth Profits to Namdeb(before royalties & taxes) A1 Dredge DA1 Atlantic 1 N$ millions RISKS & CHALLENGES Resource development: suitable ground & grade Skills to meet expansion US$/N$ exchange rate Financing for AMV2/3 Midwater DBMN runs a full active risk management programme Motto :Innovation... challenging the boundaries

16 BHAG Short term N$250 million profit to Namdeb for 2005 Was exceeded. Actual = N$338m Medium term 1 million carats from existing fleet by 2007 Long term 10 million carats (Sea + Land) Motto :Innovation... challenging the boundaries CONCLUSION

17 STRATEGIC ALIGNMENT GRN Vision % ANNUAL ECONOMIC GROWTH Drivers: Education & skills development Infrastructure Fiscal policy Beneficiation New mines De Beers Chapter 2 US$2.4 BILLION EBITDA BY strategic levers: Demand growth PPG Value creation through the DTC Cost efficiencies Partnerships Consumer confidence &reputation Organisational effectiveness DBMN & Namdeb BHAG: 10 million carats by 2010 People PPG Resource Development Communications Motto :Innovation... challenging the boundaries Sustainability Risk management programme in place Annual SBP & reviews to 2020 Subscribes to and complies with BPP Certifications: ISO14001, OHSAS18001, ISM, NOSA O & C Review Vision :The largest diamond miner in Namibia...forever

18 The journey continues Thank you Questions/discussions