Mr. Mike Welch - Northern Lights
Mr. Mike Welch - Northern Lights
Mr. Mike Welch - Northern Lights
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Mining : Major Developments,<br />
Exploration and Existing Opportunities<br />
for Regional Involvement<br />
<strong>Mike</strong> <strong>Welch</strong><br />
Xstrata Nickel Raglan Mine<br />
February 2, 2012
Disclaimer<br />
The views expressed in this presentation contain information obtained<br />
from publicly available sources that have not been independently<br />
verified. Xstrata Nickel makes no representations, or express or implied<br />
warranty as to the accuracy, completeness or reliability of the<br />
information, nor can accept any liability for it. All forward looking<br />
information has been prepared on the basis of a number of assumptions<br />
that may prove to be incorrect. This presentation and its contents<br />
should not be relied upon as a recommendation or forecast by Xstrata<br />
Nickel or advice of any sort. Nothing in this presentation should be<br />
construed as either an offer to sell or a solicitation of an offer to buy or<br />
sell shares in Xstrata plc or its subsidiary or associate companies in any<br />
other jurisdiction in which they are registered and/or operate.<br />
2
Xstrata plc<br />
Xstrata Nickel<br />
Raglan Mine<br />
3
Xstrata Nickel<br />
Raglan<br />
4
Raglan Mine<br />
5
Nickel in Society<br />
Around 40 years ago<br />
with carbon steel<br />
Over 50 years ago with nickel<br />
containing stainless steel<br />
Source: Nickel, Vol. 15-4, June 2000, Nickel Institute 7
Nickel in Society<br />
8<br />
Images : Nickel Institute
Raglan Exploration<br />
Reserves and Resources<br />
N<br />
Katinniq<br />
Qakimajurq<br />
Kikialik<br />
Mine 2<br />
Mine 3<br />
Katinniq Mill<br />
and Concentrator<br />
Donaldson Project<br />
And Airport<br />
Cross Lake<br />
70 kilometres<br />
ACTIVE MINES<br />
MINES IN DEVELOPMENT<br />
KNOWN RESOURCES<br />
Prod 1997-2011<br />
= 12.8Mt @ 2.8 Ni<br />
Disc 1997-2011<br />
= 27.4Mt @ 3.0 Ni<br />
Disc 2006-2011<br />
= 13.6Mt @ 3.2 Ni<br />
Drilling 2006-2011<br />
= 412 km<br />
9
Raglan Exploration<br />
History and Discovery Toolbox<br />
•! Geological Mapping and<br />
Prospecting<br />
•! Regional geology 1898 Dr. Albert<br />
Peter Low (GSC)<br />
•! Prospecting 1931 Cyril Knight Co.<br />
•! Discovery of Katinniq July 10, 1956<br />
Harold Kenty<br />
•! Start of mining 1997 Xstrata<br />
•! Airborne Survey, Magnetic<br />
and Electromagnetic<br />
•! ATEM and VTEM (46,000 km of<br />
survey)<br />
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Raglan Exploration<br />
History and Discovery Toolbox (continued)<br />
•! Ground Survey, Magnetic<br />
and Electromagnetic<br />
•!<br />
Crone ltd, SQUID (1,000 km)<br />
•! Bore Hole Electromagnetic<br />
survey 2006-2011<br />
•!<br />
Crone ltd, Pulse EM (1,000 holes)<br />
•! Diamond Drilling<br />
2006-2011<br />
•!<br />
Bradley Nuvumiut Partnership<br />
(412 km)<br />
11
Raglan Exploration<br />
Mine 2 – Integrated Geosciences Discovery<br />
2010-2011<br />
Success for the 40kt Project<br />
Production 2014<br />
12
Major Investment<br />
In August 2011, Xstrata plc approved the<br />
investment of $530 million USD to begin<br />
developing new projects at the Raglan<br />
Mine.<br />
Toward the<br />
40kt<br />
project<br />
13
Success in Exploration and<br />
World-class Projects<br />
Qakimajurq<br />
•! Mine Life: 2023<br />
•! 350 kt per annum<br />
•! 2.5 million tonnes<br />
@ 4.5% Ni<br />
Mine 2 (Lower)<br />
•!Mine Life: 2018<br />
•!300 kt per annum<br />
•!1.5 million tonnes<br />
@ 3.5% Ni<br />
14
New Opportunities<br />
Current Production<br />
•!1.3 million tonnes<br />
•!26 kt of nickel-inconcentrate<br />
New Production in 2016<br />
•!1.3 million tonnes<br />
•!40 kt of nickel-inconcentrate<br />
15
Regional Involvement in<br />
Nunavik<br />
According to the Raglan<br />
Agreement (1995)<br />
•! Makivik Corporation<br />
•! Landholding<br />
•! Salluit<br />
•! Kangiqsujuaq<br />
$ 100M since 2004<br />
Profit Sharing ($)<br />
2004 0.3M<br />
2005 9.4M<br />
2006 16.7M<br />
2007 32.6M<br />
2008 6.8M<br />
2009 7.7M<br />
2010 15.2M<br />
16
Raglan Mine’s Challenges<br />
Workforce<br />
•! Inuit employee training<br />
•! Skills development<br />
Opportunities with Plan Nord<br />
Plan Nord’s desire to address the<br />
shortage of manpower through training<br />
is an obvious opportunity for the<br />
Raglan Mine<br />
17
Raglan Mine’s Challenges<br />
(continued)<br />
Energy Costs & Greenhouse<br />
Gas Emissions<br />
•!Power: 20 MW<br />
•!Diesel: 50 000 000 l/year<br />
•!Energy Costs: $0.32/KWh<br />
Opportunities with Plan Nord<br />
Access to a reliable and renewable<br />
energy at a competitive price,<br />
enabling to stay robust through the<br />
mining cycle and on a long-term basis<br />
18
Nakurmik<br />
Thank you<br />
Merci<br />
19