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    Wetar

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    Tsubasa Oozora
    The Wetar Project is an open-pit copper mine located on Wetar Island, Indonesia. It began production in 2017 and has experienced operational issues related to geotechnical challenges, unreliable crushing infrastructure, and high acid levels affecting recovery. Improvement initiatives in 2019 include expanding acid neutralization capacity, commissioning a new crusher, developing the new Lerokis pit, and transitioning to owner mining operations to increase throughput. With these changes, copper production is forecasted to increase to between 22,000 and 25,000 tonnes in 2019.

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    Wetar

    Uploaded by

    Tsubasa Oozora
    17 views22 pages
    The Wetar Project is an open-pit copper mine located on Wetar Island, Indonesia. It began production in 2017 and has experienced operational issues related to geotechnical challenges, unreliable crushing infrastructure, and high acid levels affecting recovery. Improvement initiatives in 2019 include expanding acid neutralization capacity, commissioning a new crusher, developing the new Lerokis pit, and transitioning to owner mining operations to increase throughput. With these changes, copper production is forecasted to increase to between 22,000 and 25,000 tonnes in 2019.

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    The Wetar Project is an open-pit copper mine located on Wetar Island, Indonesia. It began production in 2017 and has experienced operational issues related to geotechnical challenges, unreliable crushing infrastructure, and high acid levels affecting recovery. Improvement initiatives in 2019 include expanding acid neutralization capacity, commissioning a new crusher, developing the new Lerokis pit, and transitioning to owner mining operations to increase throughput. With these changes, copper production is forecasted to increase to between 22,000 and 25,000 tonnes in 2019.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views22 pages

    Wetar

    Uploaded by

    Tsubasa Oozora
    The Wetar Project is an open-pit copper mine located on Wetar Island, Indonesia. It began production in 2017 and has experienced operational issues related to geotechnical challenges, unreliable crushing infrastructure, and high acid levels affecting recovery. Improvement initiatives in 2019 include expanding acid neutralization capacity, commissioning a new crusher, developing the new Lerokis pit, and transitioning to owner mining operations to increase throughput. With these changes, copper production is forecasted to increase to between 22,000 and 25,000 tonnes in 2019.

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    of 22

    Wetar Project

    Peter Johnston, GM - Operations


    Investor Day
    16 May 2019
    PT Merdeka Copper Gold Tbk. 1
    Development History

    Billeton Operation Finders Feasibility Merdeka Operation


    (1990 To 1997) and Operation

    • Gold equivalent • Feasibility study • Takeover bid


    production of completed in 2010 launched Q4 2017
    600,000 AuEq and updated in • Control achieved
    ounces 2013. end of Q1 2018.
    • Focused on • Sold 25% of • Development of
    precious metals project to Daewoo Lerokis 2019
    cap that sits on top for US$ 45 m in • Turn around
    of sulphide 2014 program
    orebody. • Pre mining of Kali undertaken to
    • Island wide Kuning improve
    exploration commenced 2016 production.
    programs focused • Construction • Exploration drilling
    on precious completed in 2016 resumed.
    metals. • Commercial • Partolang
    copper production resource definition
    in 2017 complete H1 2019
    • Geophysics
    survey 2019.

    PT Merdeka Copper Gold Tbk. 2


    Location

    Eastern Indonesia -
    Maluku Province

    Northern side of Wetar


    Island.

    Wetar is x approx 150


    km by x 50km.

    Populations is approx
    8000.

    Personnel commute via


    air from Bali to Alor (3
    hrs) & boat from Alor
    to Wetar 6 hrs)
    PT Merdeka Copper Gold Tbk. 3
    Tenement Locations

    PT Merdeka Copper Gold Tbk. 4


    Snapshot

    Mining Method Conventional Open Pit


    Metals Copper
    Mineralisation Volcanic Massive Sulphide
    Type (“VMS”)
    Process Method Sulphide Heap leach
    Plant Capacity
    - Crushing Expanding to 2 Mtpa
    - SX/EW Cu 25,000 t pa
    Recovery 60-73%
    Mineral
    Resources 196 Kt Cu

    Mineral
    Reserves 93 Kt Cu

    Workforce 800 staff & 800 Contractors

    PT Merdeka Copper Gold Tbk. 5


    Safety and Environment

    Safety

     4 million hours (453 days) LTI free.


     Good safety system and culture.
     Focus on Front Line Supervision
    training and behavior focus.

    Environment
     Spending US$ 3 M to de-risk storm water
    management.
     Application of environmental engineering design
    and closure concepts to new developments and
    processes.

    PT Merdeka Copper Gold Tbk. 6


    Human Resources

    Department Total • Circa 800 Contractors


    Management 6 • Recruiting owner mining teams
    Commercial 49 • 30% local Wetar Island staff
    External Affairs 67 • Turnover 1% per month average
    Processing - LP 61
    Processing - Met 30
    Processing - Ops 80
    OHSET 38
    Supply Chain 54
    Maintenance 194
    Mining 189
    Exploration 15
    Human Resources 10
    Total 793

    PT Merdeka Copper Gold Tbk. 7


    Process Schematic

    PT Merdeka Copper Gold Tbk. 8


    Open Pit Mining
    • Low strip ratio, positive reconciliation.
    • Legacy geotechnical issues at Kali Kuning pit – pit
    SUMMARY Tonnes Grade %Cu Contained Cu
    finishes Q2 19. ORE RESERVE 5,638,658 2.27 127,822
    • Transitioning from Kali Kuning pit to Lerokis pit TOTAL MINE CALL 6,294,343 2.39 150,634
    during Q2/3 19. VARIANCE % 12% 6% 18%
    TOTAL PRODUCTION 6,107,745 2.39 145,751
    • High grade deposits between 2-3% Cu VARIANCE % -3.0% -0.3% -3.2%
    • Conventional drill / blast and load & haul.
    • Transitioning to owner mining during 2019.

    PT Merdeka Copper Gold Tbk. 9


    Heap Leaching

    • Ore crushed to -18 mm and stacked to heap leach pads using grasshoppers and trucks.
    • Irrigated and aerated for + 720 days. Unique sulphide leach generates acid from water irrigation.
    • Existing crusher system limited capacity and unreliable. New crusher being commissioned July 19.
    • Re-handle of dump leach material and the need to remine and re-install aeration affected 2018 leach
    performance.

    PT Merdeka Copper Gold Tbk. 10


    Leach Recovery Curves

    PT Merdeka Copper Gold Tbk. 11


    Heap Leaching Performance

    PT Merdeka Copper Gold Tbk.


    Focus on % area under irrigation 12
    SX/EW Process Plant
    • Heap leach solution containing copper is extracted with Solvent Extraction (“SX/EW”).
    • The efficiency of extraction has been affected by high acid levels (+ 45 g/l).
    • Neutralization plant operation has been significantly improved and will be expanded in H1 2019.
    • Electrowinning is then used to plate LME cathode copper.
    • Trialling new Extractant in SX and refurbishing EW plant with improved design Anodes.

    PT Merdeka Copper Gold Tbk. 13


    Acid Neutralisation Plant

    • Filter expansion commissioned May 19


    • Increase 150 to 200 tpd acid neutralisation
    • Reduce solution free acid 50 to 30 gm/l
    • Increase SX transfer extraction 45 to 65 +%
    • Reduce inventory Cu, increase production.

    PT Merdeka Copper Gold Tbk. 14


    Turn Around and Improvement Initiatives

    Copper Production 2017 Production (23 kt)


    30,000 - Stacked 17 kt cu of dump leach material
    - Heaps developed with inadequate aeration
    20,000 - Low acid levels
    10,000
    2018 Turnaround (17 kt)
    0
    - Re-handle dump leach, re-install aeration
    2016 2017 2018 2019 2020 sulphide leaching better understood
    Actual Actual Actual Forecast Forecast - Acid levels high
    Actual/ Forecast Low End Forecast High End - Low % of pads under irrigation-remining
    heaps
    Copper Stacked - Pit wall failures restrict stacking
    65,000

    55,000
    2019 Forecast (22-25kt)
    - Neutralisation plant expanded
    45,000 - New increased crushing capacity
    35,000 - Heap pad extensions
    25,000
    - Lerokis developed, first ore April 19
    2016 2017 2018 2019 - Increase 1.6 to 2 Mtpa mine, crush & stack
    Actual Actual Actual Forecast - Owner mining fleet
    Actual/ Forecast Low End Forecast High End - SX/EW improvement and refurbishment 15
    PT Merdeka Copper Gold Tbk.
    Operational Performance
    Unit 2017 Actual 2018 Actual
    7000
    Mining
    6500
    Ore Mined M Tonnes 1,884 1,588 6000
    Waste Mined M Tonnes 1,366 1.409 5500
    Mined Grade Cu % 2.09 2.98 5000
    Contained Metal Cu t 39,384 47,272 4500
    4000
    Heap Leach
    3500
    Ore Crushed / Stacked M Tonnes 1,944 1,692
    3000
    Grade Stacked Cu % 2.00 2.58
    Recovered Metal Cu t 23,160 17,071
    Financials
    Leached Produced
    Operating cost US $/ t 29.84 35.35
    Cash Costs * US $ / lb cu 1.05 1.49
    AISC US $ / lb cu 1.56 1.73
    • Leach production improvement
    Sales US $ m 153.6 112.3
    Q1 2019.
    • High fixed costs so production
    Operating EBITDA US $ m 73.0 38.3
    key to higher margins
    EBITDA Margin % 47% 34%

    PT Merdeka Copper Gold Tbk. 16


    Development Layout Plan

    • Kali kuning pit finishes


    Q2 2019, plan is to use
    as leach pads
    Partalong – Resource
    Definition Ongoing
    • Lerokis commences Q2
    2019 and continues
    through to 2021

    • Plan to commence
    production from
    Partolang Q3 2020

    • 2-3 year mine life,


    pending reserve.

    Lerokis Pit starts Kali Kuning Pit


    Q2 2019 2017 - 2019
    PT Merdeka Copper Gold Tbk. 17
    Lerokis Development

    • Mining commenced March 19 and first ore April 19


    • 2.7Mt at 2.8% for 76 Kt Cu reserve
    • Low strip ratio
    • LOM plan to Q4 20 - Q1 21
    • Crush at Lerokis and 15 km road truck haul to plant
    • Heap leach and process at KK facility
    • Similar to KK ores, however higher Zn values
    • Column heap tests positive.

    PT Merdeka Copper Gold Tbk. 18


    Partolang Conceptual Plan-Wetar Next Mine

    PT Merdeka Copper Gold Tbk. 19


    Production, Cost and Capital Guidance

    2019 Guidance

    Copper Production 21,000 to 25,000 tonnes

    AISC US$ 1.30 to US$ 1.50

    Sustaining Capital US$ 8 to US$ 9 million

    Growth Capital US$ 10 to US$ 11 million

    Resource definition and discovery


    US$ 3 million

    PT Merdeka Copper Gold Tbk. 20


    Appendix.
    SITE PHOTO – OCEAN SIDE FACILITIES
    Appendix.
    SITE PHOTO – OCEAN SIDE FACILITIES

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