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Home My WebLink About20131093 Ver 1_Other Documents_20131104G ILUKA Aurelian Springs, NC tl r h Chuck Stilson Presentation to Halifax County Board of Adjustment 10 September 2013 Company Overview —About Iluka ICU % • Iluka is a global company trading on the Australian Stock Exchange with a market capitalization of over $4 billion USD • Iluka is the world's largest supplier of zircon and second largest supplier of titanium minerals • We began mining in the U.S. in 1972. Mining operations in Virginia began in 1998 • We demonstrate industry - leading Environment, Health, and Safety programs worldwide 12/09/2013 1 Company Overview — End Uses of Products ILUKA Titanium Pigment • Pigment (replaced lead in paints) • Food Products (white on M &Ms) • Cosmetics & Toiletries (reflects the sun) • Paper & Plastic Products (enhances color and U.V. resistant) • Pharmaceuticals (non- toxic) Titanium Metal • Aerospace Applications (engines, wings, sub - frames) • Sporting Goods (golf clubs, fishing lures) • Automobiles • Medical Applications (artificial joints, pace makers, braces) Geology and Exploration Mineral Sands deposits were formed along ancient shorelines along the Atlantic coast. Mining of these deposits has occurred since 1930's • VA State Geologist published mineral sands discovery in Sussex County, VA in 1987 Zircon • Ceramics — Glazes for Tiles • Refractory — lining of kilns • Fire Brick • Foundry Sand - moldings and quality steel coating • Cubic Zirconia — jewelry • Zirconium Metal KY`s fl'' ILUKA 3 Map showing elevation and HM deposits in VA and NC 4 12/09/2013 2 Land Preparation ,Lu KA • Previously forested areas are grubbed to remove stumps and roots. The woody debris is piled and burned. • Sediment and erosion control is installed • Topsoil is removed and placed in perimeter berms and stockpiles '"° `-� -tea- -•- 0. •• e • .•- • • !and Sedime : nt Control Measures 5 The Mining Process ,Lu `A • The deposit is mined with excavators, feeding a mobile mining unit • At the mining unit, the ore is sized, mixed with water, and pumped to the mine concentrator NNNIF; ' W1. " . - . - - 6 12/09/2013 3 Processing — Ore Transport • Ore is pumped to the concentrator through HDPE (plastic) pipe • The first pump in the system is on the mining unit • Booster pump(s) are required for long distance pumping i// ILUKA "—� Processing — Spiral Separation ►// ILUKA • Heavy minerals (including ilmenite and zircon) are separated from light minerals (mainly quartz) • This separation is done by gravity using several stages of spirals • Heavy (dense) minerals gravitate to the inside of the spiral and light minerals are pushed to the outside of the spiral s 12/09/2013 12 Processing — Dewatering and Transportation ILU KA • The final step is to dewater the concentrate in preparation for transport to the Mineral Separation Plant (MSP) in Stony Creek, VA r 9 Water Use 9//" ILUKA • Water is critical to the mining process and transporting ore around the mine (pumping ore and tails) and for separation in the concentrator. • All water is recycled through the process • The system operates as a closed -loop although some water is lost through evaporation, infiltration, and bonding with clays in the tailings ponds • Make -up water for the Aurelian Springs operation will be sourced from deep wells, municipal supply, or some combination of the two Tailings Collection Process Mining Ponds Ponds Ponds Unit Plant Plant 12/09/2013 5 Reclamation Overview ILUKA • The reclaimed and contoured land is seeded in pasture (typically with a mixture of Orchard Grass, Fescue, Red Clover, and White Clover) • Iluka's Private - University reclamation research partnership with Virginia Tech is the longest current study into mine reclamation and productivity in United States Planted Fall 2007, Photo Spring 2008 Planted Fall 2007, Photo Spring X08 11 Concurrent Reclamation `' ILUKA • Reclamation to date (Aug 2013) in Virginia: — 702 acres released from bond — additional 831 acres have been seeded in final pasture — additional 107 acres are undergoing final reclamation Reclaim�d Field —'ConCord Mine, VA — Summer 2013 12 12/09/2013 A Typical Reclamation Sequence ILUKA Clearing 6 to 24 months Mining 6 months Pond construction and tailing activities 12 to 24 months Stabilization, contouring, topsoil return, and seeding 12 to 24 months Monitoring for compliance 24 months TOTAL 5 — 8 years VA Reclamation Awards `i ILUKA • Reclamation in Virginia has been very successful. Over the past few years, Iluka has been awarded four reclamation awards: — 2006 State Mineral Mining Reclamation Award - Winner — Non - Quarry and Best Overall — 2007 National Reclamation Award - Honorable Mention — Non -Coal Category — 2008 State Mineral Mining Reclamation Award - Winner — Non - Quarry and Best Overall — 2009 National Reclamation Award - Winner — Non -Coal Category and Best Overall T 131 12/09/2013 7 Project Overview 9%/ ILUKA Located in Halifax County, in the area of Aurelian Springs Project area covers approximately 3,772 acres • Approximately 1450 acres will be mined, with approximately 100 acres in an "active state" of mining at any time Iluka NC -VA likely to be the only domestic supplier of titanium post 2018 Significant benefits to local community Seeking approval for Phase 1 of the project today Phase 1 involves relocation of our Concord concentrator to AS North Phase 2 involves relocation of our Brink concentrator to AS South J Local Benefits Y 9/ ILUKA • Jobs Created by Mining Operations (Phase 1 and 2) — 79 direct jobs, 60 contractor jobs, and an estimated 75 indirect jobs, for a total of 214 • Projected to reduce unemployment in Halifax County by almost 1% (based on 2012 unemployment figures) • Direct payroll of $3.8M per year (estimated) • Projected weekly wage of new jobs is $923 per week, 64% above Halifax County average weekly wage (based on 2012 data) Nearly $18M per year in contracting expenditures (estimated) it 1 Y m' 12/09/2013 0 i// Aurelian Springs Project Area ILUKA Conditional Use Permit (CUP) Parcels • Yellow = mining and connectivity • Red = concentrator site • Blue = process water ponds ,I] 12/09/2013 9 CUP uses will include: {� Mining ?ea Reclamation ta3� Connecting corridors ,a fi e Concentrator site ,I] 12/09/2013 9 Aurelian Springs Project Area ,Lu `A Constraints Analysis • Physical Environment • Biological Environment • Cultural Resources • Infrastructure • Quality of Life Issues 12/09/2013 10 Quality of Life 9%/ ILUKA Areas of Concern Iluka's Best Management Practice • Dust Dust suppression, screening berms, vegetation screens • Noise Screening berms, setback from road • Light Directional lighting • Water / Wells Dual water supply, mitigation plan • Traffic Coordination with County and NCDOT, traffic studies, safety standards, internal roadways Best Management Practice — Screening Berm ILUKA Proposed landscaped screening berms along Aurelian Springs Rd — Landscaped on road side — Will reduce noise, light, dust, and visible operations zz 12/09/2013 11 Proposed Traffic Pattern ,Lu KA • Maintains sight distances required by NCDOT - � 9 • Internal traffic screened by perimeter berms �� n • Drive - through wheel -wash �a • Two driveways limit be"P 6P intersection conflicts � SR� ANebm 54^nW � 23 Aurelian Springs CUP #2013 -12 ,Lu `A • Staff Recommendation - Approval - Six (6) conditions materially acceptable to Iluka • Iluka's Request - Approval -Allow the project to move forward and be vetted by State and Federal permitting agencies 12/09/2013 12 Summary 9%/ ILUKA Iluka is actively working to develop a titanium and zircon mine in Halifax County There are significant benefits to the community, state, and nation (likely the only domestic source of titanium post 2018) • Iluka utilizes Best Management Practices to minimize adverse impacts • Iluka is locally managed with international backing. Iluka is financially able to deliver on promises and stand behind environmental commitments • Iluka has a proven operational track record and is best positioned to develop the North Carolina deposit • Iluka is working with other state and federal agencies in the development of this project J Y GR ILUKA Iluka Resources Limited www.iluka.com For more information, contact: Chuck Stilson, Project Manager c1�r 2s 12/09/2013 13