Contents. Makoto Inaba Team Leader Ambatovy Project Dept. Sumitomo Corporation 27 April, 2010

Transcription

1 Makoto Inaba Team Leader Ambatovy Project Dept. Sumitomo Corporation 27 April, Contents 1. Project Highlight 2. Location 3. Project Summary 4. Key Milestones 5. Technology / Process 6. Project Structure 7. Construction Status 8. Relationship with Madagascar 9. Environment 10. CSR 2/X

2 1. Project Highlight The Ambatovy Project has the annual design capacity to produce 60,000 tonnes of high grade Nickel and 5,600 tonnes of high grade Cobalt for at least 27 years in Madagascar. Named the Europe, Middle East and Africa Mining Deal of the Year 2007 by Project Finance International. Positioned to be one of the world s biggest lateritic nickel mines by One of the Madagascar s largest capital project to date. Received sub-saharan Africa s largest project financing ever at US$2.1 billion. First project developed under Madagascar s Large Mining Investment Act (LGIM). 3/X 2. Location The mine site is located 80 km east of Antananarivo, the capital of Madagascar. Slurried laterite ore will be delivered from the mine site via a 220 km-long pipeline to a process plant and refinery located near port city of Toamasina. Process / Refinery Plant Site Mine Site 4/X

3 3. Project Summary Annual capacity: 60,000 tonnes LME Class 1 Ni Reserve (Proven and Provable): 125 million tonnes 5,600 tonnes high-grade Co Approximately 210,000 tonnes Ammonium Sulphate Project life: Investment: Production Cost: Approximately 27 years Estimated at US$4.5 billion Anticipated to be among the lowest in the industry 5/X 4. Key Milestones Phelps Dodge(PD) acquired exploration permit February Dynatec earned a 100% interest in the Project August Sumitomo entered participated in the Project October Kores and SNC-Lavalin participated in the Project (Dynatec:40%, Sumitomo:27.5%, Kores:27.5%, SNC Lavalin:5%) December 2006 February 2007 June EA approved by Malagasy Government - LGIM approval granted from Malagasy Government - Sherritt acquired Dynatec (Sherritt:40%, Sumitomo:27.5%, Kores:27.5%, SNC Lavalin:5%) August Project debt financing agreement reached and construction commenced March Construction Progress 70% Late 2010 ~ Construction Completion - Full capacity production 6/X

4 5. Technology / process Test work confirmed high extractions, low retention times, low acid consumption and good liquid/solid separation. All processes commercially proven and currently operating on a commercial scale. Conservative approach to plant design - high level of redundancy and surge capacity is built into the flowsheet. Produce LME grade nickel and cobalt in an onsite refinery. 7/X 6. Project structure Operator Finance/Marketing Start-up Operation Support Sherritt Sumitomo Corp. Kores *1 SNC-Lavalin (Canada) (Japan) (Korea) (Canada) Ambatovy Nickel Project 40% 27.5% Mine / Process Plant / Refinery 27.5% 5% Senior Loan :US$2,100mil Project Finance (JBIC (Madagascar) / EDC / EIB / KEXIM / AfDB) AMSA *2 (Mining) DMSA *2 (Processing, Refining) (Canada) (Japan) (Korea) (Luxembourg) (Tunisia) EDC JBIC KEXIM EIB AfDB 8/X

5 7. Construction Status Mine Site 9/X 7. Construction Status Plant Site Overall 10/X

6 7. Construction Status PAL Area 11/X 7. Construction Status Utilities and Ancillaries 12/X

7 7. Construction Status Local Workers 13/X 7. Construction Status Port Expansion 14/X

8 7. Construction Status Tailings Area 15/X 8. Relationship with Madagascar Contribution to Madagascar Economy: Largest foreign investment project in Madagascar Increase in export and tax revenue Contribution to the development of the local economy Job creation, Training program LRDI (Local Resource Development Initiative) Support job creation: 1. Maximum over 10,000 people during construction phase (75% is expected to be Malagasy) 2. Average 2,300 people will be directly hired during operation phase (85% is expected to be Malagasy) Over 7,000 people including indirect employment will be hired 16/X

9 9. Environment Compliance to Guidelines (WB, IFC, EP,PGEDS) Unique Action Plan: No Net Loss and Net Gain though participation in BBOP Securing Offset Area Establishment of Buffer Forest around the footprint Creation of Mine footprint replacement forest 17/X 10. CSR Social commitments ALBI (Ambatovy Local Business Initiative) Resettlement villages CSR Health, Safety and Environment Social Investment The Ambatovy Project makes social investments in area as health, education, minor infrastructure and small-business development. 18/X

10 Thank you 19