3 About the Trident Project US$1.8-billion investmentLocated in the Solwezi District of Northwestern Province, ZambiaApproximately 150km from Solwezi on the T5 main road to MwinilungaComprises five prospecting large scale licencesA number of attractive base metal prospects including the Sentinel deposit and the Enterprise deposit5 x large-scale mining licences awarded 20 April 2011 for 25 years tenureEIA approved 8 July 2011 and Addendum 12 August 2013Resettlement Action Plan approved 15 October 2013
5 Sentinel MINE IN CONSTRUCTION – commissioning MID 2014 Updated resource published May 2012:514 boreholes for 172,692m defined an NI resource of:Total measured & indicated : 0.51% CuInferred : 0.42% CuCut-off : 0.2% CuMineral Reserve: % CuProved : % CuProbable : %Cu.Strip ratio 2.2 : 1Mine planning:Grade of 0.5% Cu requires a high throughput of 55 Mtpa to achieve production target of 280 – 300,000t Cu per annum.Sentinel will put Zambia at the forefront of global mining technology
6 Enterprise MINE IN APPROVAL – EARLY WORKS UNDERWAY Maiden resource published December 2012:359 boreholes for 116,000m defined an NI resource of:Total measured indicated : 1.07% NiInferred : 0.70% NiCutoff : 0.15% NiMineral Reserve: % NiFurther potential to expand Mineral Resource and Reserve on the Enterprise South West ZoneMine planning:Resource confirms potential for an operation producing on average 38,000 Ni per annum with scope to increase to 60,000t Ni per annumEIA under applicationEnterprise to share infrastructure with Sentinel
8 ABOUT THE SENTINEL MINE – Project Scope 55Mtpa target throughput3 semi mobile in pit crushers and assembly of large scale mining equipmentLargest operating SAG/Ball mill trains in the world (100MW milling power)265,000t of freight = 14,500 truckloads of materials2 rivers to be dammed/divertedLife of mine TSF600km of ZESCO 330kV power transmission lines Lumwana – Kalumbila – Lusaka West690 staff houses plus 590 houses in resettlementDevelopment of a new town, airport, clinic, school etc….Zambia’s largest single development project in recent times
9 PROGRESS PHOTOS – SENTINEL PLANT AREA Here are some photos of the site, which you will see closer in a moment.First the main plant area.AERIAL PHOTO 31-DEC-2013
10 CONSTRUCTION PROGRESS – END DEC 2013 PROJECT BASELINE SCHEDULE CREATED ON JULY 2012OVERALL PROGRESSACTUAL = %PLAN = %Construction progress is running very well and we are very close to our projected schedule.The main area which is reducing cumulative progress is the powerline which we are pushing very hard with our partners ZESCO.201220132014May12Jun12Jul12Aug12Sep12Oct12Nov12Dec12Jan13Feb13Mar13Apr13May13Jun13Jul13Aug13Sep13Oct13Nov13Dec13Jan14Feb14Mar14Apr14May14Jun14Jul14Aug14Sep14
11 Filipinos / Indonesians Employment – END DEC 2013DepartmentLocalExpatFilipinos / IndonesiansTOTALInfrastructure52411105640FQML Plant68826412 / 1441270Operations and Support52630-556FQMO Roads67015685Subcontractors14561151571Overall Manpower3,8641976614,722Percentage (%)82%4%14%100%We are employing over 3000 people on the project currently of which 80% are local Zambians.We have around 670 Filipinos and Indonesians on the site. These are very hard workers and have good trade skills. The Filipinos and Indonesians are training the local Zambian workforce. They fit in very well with the local Zambians and we do not have any friction between them.Safety record at 31 Dec 2013 :The project had recorded a total of five lost time incidents at 13,415,504 man-hours completed. LTI frequency rate was 0.060
12 3 x ROPE SHOVELs - 1,350t, 57m3 bucket The mine fleet will be very large to deliver the high volumes to the plant.Here are the 3 x rope shovels which will extract mainly waste material from the mine.You can just see a man standing at the top gantry in this picture.
13 3 x PCX5500 LOADers - 205t, 21m3 bucket Here are the large excavator / face shovels responsible mainly for moving ore to the plant.
14 36 x TRUCKS – 21 x 960E + 15 x 860E (*)(*) Final numbers subject to confirmationThe large trucks will hold 330 tonnes, and the smaller trucks will hold 250 tonnes.We have chosen the fleet to suit the availability of tyres from the market.
15 IN PIT CRUSH – 3 x (ThyssenKrupp) 63-89 20MTPA Sentinel mine will use in pit crushers, cut down into the mine, to process the ore.Because the haul trucks need to transport less vertical distance, this will save diesel and costs.The in pit crushers will be transported to new positions every 5 years approximately.
16 100MW Milling – 2 x 40’SAG + 2 x 28’BALL Sentinel requires around 100MW of milling power to grind the ore feed to the plant.The process plant will have the largest currently operating SAG/Ball mill trains in the world.
17 PROGRESS PHOTOS – PLANT AREA MILL BUILDINGS 31-DEC-2013FLOTATION AREA 31-DEC-2013STOCKPILE VAULT 20-JAN-2014CONVEYOR LINE 21-JAN-2014
24 ZESCO POWER INFRASTRUCTURE PROJECT First Quantum commitments to ZESCO grid upgrades:First Quantum to upfront finance and has contracted :68km Lumwana – Kalumbila 330kV transmission line + substations;400km Kalumbila – Mumbwa 330kV transmission line;145km Mumbwa – Lusaka West 330kV transmission line;Upgrades to Kansanshi substation.ZESCO (ADB & EIB finance) will contract :Lusaka West + Mumbwa switchyards.ZESCO KANSANSHI SUBSTATION WORKS 20-JAN-2014
25 1. Lumwana – kalumbila line (68km) single circuit 330kv
26 PROGRESS PHOTOS – ZESCO SUBSTATION AT SENTINEL SWITCHYARD, EAST GANTRY FOOTINGS 01-NOV-2013SWITCHYARD 1-NOV-2013POWERLINE CLEARING & EARTHWORKS20-DEC-2013SWITCHYARD 30-DEC-2013
27 2. Lusaka West – kalumbila line (545km) DOUBLE CIRCUIT 330Kv
28 TOWN DEVELOPMENT UPFRONT INVESTMENT IN THE COMMUNITY
29 About the New TownLocated in the Solwezi District of Northwestern Province, Zambia :Approximately 150km from Solwezi on the T5 main road to MwinilungaAt the heart of the ‘New Copperbelt’Proper planning and services for 10,000 homesTown plan approved by Solwezi Council on 7 March 2012EIA approved by ZEMA on 12 August 2013Town name must be chosen and approved by GovernmentVision Statement Kalumbila town to grow into one of the best new towns in Zambia, if not Africa.
30 Expertly Designed & FULLY SERVICED TOWN Town design by Zambian and international firms.Water, sewerage and waste11 Jul 2012 – MOU signed with NWWWeekly waste collectionMetered electrical reticulation31 Jan 2013 – Contracts signed with NWEC28 Nov 2012 – ZESCO agreement signedRoads:First Quantum construction – RDAPaved roads with street lights and separate bike paths & sidewalksClinics, schools, police station and recreation.
31 MFEZ to encourage local businesses Application to ZDA for MFEZ status:Substantial tax incentives to businesses setting up in the area:0% tax for first 5 years, next 3 years at 50%, next 2 years at 75%;0% tax on dividends for a period of 5 years;0% import duties on raw materials, capital goods, machinery for 5 years;Deferment of VAT on machinery and equipment.Further the MFEZ will facilitate increased home ownership:0% VAT on home purchase, passed through to the homeowner.The MFEZ provides no direct benefit to the mine – rather it stands to encourage local and international businesses to develop in the town.This is good for local procurement and regional development. And will generate its own multiplier employment for beyond the life of mine.
32 Worker housing – for home ownership RESETTLEMENT and livelihood programUpcoming worksBlock plant part assembled awaiting the arrival of the Chinese engineer for commissioningMaterials procurement well underway to avoid annual December slowdown in RSAFirst building contractor (Merkaba – 300 x 3bed small houses) onsite at risk. Contract complete 9 October.Risks to executionEIA not yet approved – expected this month (advertised by ZEMA)Monitoring of stock levels critical to maintain material flowsLack of skilled local labour could impact on the programmeWet Season – need to get as many platforms in place and good road drainage prior to NovemberTransport strike in RSA could impact deliveries – apparently now resolved
33 PROGRESS PHOTOS – SENIOR HOUSING SPORTS FACILITY 04-NOV-2013SENIOR HOUSING - SINGLES 31-MAR-2013SENIOR HOUSING AREA 28-FEB-2013TRIDENT PREP SCHOOL 05-NOV-2013
34 PROGRESS PHOTOS – AFFORDABLE HOUSING AFFORDABLE HOUSING LAYOUTTEACHER’S HOME 3-JAN-2014The affordable housing area, where our employees will own their home.Again you can see how we have tried to minimise the trees lost for construction.TRUST SCHOOL 05-NOV-2013COMPLETED 4-BEDROOM HOUSE 3-JAN-2014
35 BLOCK PLANT – LOCAL FABRICATION We make all our own blocks on site for housing construction – around 5,000 per dayDESIGNBUILDERSIZE (m2)NUMBER (units)AVE COST (US$)Type A : 4bedSelf-perform17550$91,875Type B : 3bed large102200$51,000Type C : 3bed smallMerkaba65300$32,014Type D : 2bedThor (Tom Van Vuuren)46$24,150TOTAL600$23M35
36 Csr & Entitlements ZMK-millions Upfront commitment Annual commitment TOTAL after first 2 yearsArea entitlements & livelihood supportEntitlements & compensation/resettlement package57.6-Livelihood support – Conservation Farming & other programmes3.77.4Community health & infrastructureConstruction of schools, clinics, police station & other buildings22.80.423.6Community health programmes4.62.810.2Solwezi District General Hospital renovations11.0Value addition & conservationSawmill – installations & employment10.02.414.8Conservation programmes – game & forest management2.00.83.6TOTAL CSR & ENTITLEMENTS108.010.1128.2ZMK 108-billion will be spent upfront at Trident on social projects and entitlements to the benefit of the Kalumbila community including building of school, health and police facilities and the refurbishment of the Solwezi General Hospital which services the District.First Quantum has also constructed a licenced sawmill, to provide value addition to otherwise waste timber, which already employs more than 100 local staff;ZMK 10-billion is committed each year on upkeep of the social investments at Trident and extension into livelihood support to the Kalumbila community;In addition to these committed budgets, First Quantum is investing a further ZMK billion in the upfront development of a new town at Kalumbila including construction of an initial 600 affordable houses for Zambian staff.First Quantum has also committed substantial expenditure to its environmental compliance programs at Trident;The local procurement programme continues to expand at Trident since the first local contract was signed in January 2012.In addition First Quantum has already invested more than ZMK 16.5-billion in training systems to develop future workers at the Sentinel mine.
38 PROGRESS PHOTOS – RESETTLEMENT RESETTLEMENT HOUSESRESETTLEMENT HOUSESHere are photos of community buildings for the resettlement project.I believe Garth Lappeman – who is our Resettlement and Community Engagement Manager will give you some more details later on our community projects.Thank you for your attention.I will stop here and ask for questions.RESETTLEMENT SCHOOLRESETTLEMENT CLINIC
39 PROGRESS PHOTOS – CSR MALARIA SCREENING 01-DEC-2014 Here are photos of community buildings for the resettlement project.I believe Garth Lappeman – who is our Resettlement and Community Engagement Manager will give you some more details later on our community projects.Thank you for your attention.I will stop here and ask for questions.LIVELIHOOD SUPPORT 01-DEC-2014LIVELIHOOD SUPPORTMOSQUITO SPRAYING