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
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) 1,000 950 900 850 800 750 700 650 600 550 500 450 400 CARATS AREA Atlantic 1 - Production Performance 2000 2001 2002 2003 2004 2005 2006B 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
DBMN LARGEST DIAMOND MINER IN 2005 DBMN A1 922 000 52% Namdeb DA1 798 000 45% Other - marine 55 000 3% 1 775 000 100% Motto :Innovation... challenging the boundaries DBMN Fleet (2005 922 000 carats) 201k 138k CS = 96k Atlantic Ya Toivo 186k 152k Grand Banks Pacific 149k!Gariep Vision :The largest diamond miner in Namibia...forever
LTIFR TREND 25 OHSAS18001 2.50 20 2.0 0 15 1. 50 LTI' s LTIFR 10 1. 0 0 5 0.50 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0.00 LTI's 21 11 7 13 7 7 4 7 4 5 6 2 2 1 4 0 LTIFR 1.96 1.04 0.77 1.27 0.65 0.41 0.24 0.28 0.19 0.2 0.42 0.13 0.17 0.08 0.32 0 ENVIRONMENTAL RESEARCH FOCUS TAILINGS PLUME H 2 S eruption Luderitz NATURAL VARIABILITY TOOL ACTION Orange River floods
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
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
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- Q1 2006 DBMN RATE IMPROVEMENT HISTORY 300 Wide Channel 250 Mining Rate in m2/h 200 150 100 Jet Water DBE II DBE 2.5 Enlarged drill pipe 50 0 1999 2000 2001 2002 2003 2004 2005 2006
DBMN PRODUCTIVITY IMPROVEMENT ATLANTIC 1 HISTORY CARATS & GRADE 1000.00 0.700 900.00 800.00 Carats Recovered (000) Grade Recovered (ct/m2) 0.600 700.00 0.500 Carats (000) 600.00 500.00 400.00 0.400 0.300 Cts/m2 300.00 0.200 200.00 0.100 100.00 0.00 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06B 0.000
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. 178 2% U/Water del. 4 0% WOW 452 5% PM 185 2% In-port - 0% Mining 7,452 84% TOTAL 8,902 100% 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
CHALLENGING THE LIMITS Days to complete a mine support survey 17 15 10.5 8.5 7.9 Meob Bay Spencer Bay Zealous 97 Zealous 98 Zealous 99 1 AUV Bathymetry Pre 2000 Swath Bathymetry Today
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
GLOBAL RESOURCE 2004 - celebrate ESTIMATE success - CALCULATIONS Cut-off (cts/m²) Area (km²) Mcts Ave grade (ct/m²) 0.000 1,402 63.5 0.045 Profitability of Present Resource - July 2005 0.025 868 60.0 0.069 0.050 574 52.2 0.091 0.075 385 43.7 0.113 0.100 263 35.9 0.137 0.125 185 29.6 0.160 0.150 133 24.4 0.184 0.175 98 20.3 0.208 0.200 75 17.2 0.231 0.225 58 14.8 0.254 0.250 46 12.8 0.277 0.275 37 11.2 0.299 0.300 30 9.7 0.321 0.325 24 8.4 0.344 0.350 20 7.4 0.368 0.375 17 6.6 0.390 0.400 15 6.0 0.410 0.425 13 5.4 0.430 0.450 11 4.9 0.450 0.475 9 4.4 0.474 0.500 8 4.0 0.494 Mct 8 7 6 5 4 3 2 1 0 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
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 1,000 500 Capital = N$5.29b 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Years Teamwork Integrity Excellence Respect MARINE SBP SCENARIOS MOST LIKELY 1800 1600 N$3.27b 1400 Carats ('000' 1200 1000 800 600 AMV2 Current Fleet Improvements 400 200 Current Fleet 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mission :To prospect for & mine marine diamonds in a sustainable manner to the benefit of our shareholders & stakeholders
MARINE SBP SCENARIOS BLUE SKY 2500 N$6.20b 2000 AMV3 Carats ('000' 1500 1000 AMV2 Other Vessels Current Fleet Improvements 500 Current Fleet 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Vision :The largest diamond miner in Namibia...forever Marine contribution in the Namdeb context... Marine includes mid-water and Beach & marine 1,800 1,600 MARINE LAND 1,400 1,200 000 crts 1,000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
While land production continues for years, note profit declines and marine potential growth 2500 2000 1500 Profits to Namdeb(before royalties & taxes) A1 Dredge DA1 Atlantic 1 N$ millions 1000 500 0-500 2004 2005 2006 2007 2008 2009 2010 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
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) 2006-2010 Motto :Innovation... challenging the boundaries CONCLUSION
STRATEGIC ALIGNMENT GRN Vision 2030 6% ANNUAL ECONOMIC GROWTH Drivers: Education & skills development Infrastructure Fiscal policy Beneficiation New mines De Beers Chapter 2 US$2.4 BILLION EBITDA BY 2009 7 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
The journey continues Thank you Questions/discussions