TELLUS HOLDINGS LTD · Tellus demonstrates quality management by maintaining internationally...

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TELLUS HOLDINGS LTD

Chandler Project Community Update

Duncan van der Merwe (Managing Director)Jaime Livesey (Head of Geoscience and New Ventures)Richard Phillips (General Manager HSECC)

June 2017

TCH-5-30-20-15

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Agenda

Agenda item

Tellus Update

Chandler Project - BFS and EIS Update

Titjikala to Alice Springs Road Update

Next Steps

Appendices

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Tellus Holdings Ltd Overview• In the business of creating economic, social

and environmental value from hazardous waste, clay and salt

• Public unlisted infrastructure development company

Established “Utility Style” business

• Tellus' business model follows world's best practice techniques operating in Europe & N. America.

• Dual use facilities – mine commodity under mining act, store equipment, archives & waste under environmental act

WA Gov.’s IWDF(ClayVault 50/50 JV) Sandy Ridge(WA)

Chandler (NT)

Vision

National Warehouses (Toll)

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Proposal Location

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Tellus Strategy – Safety FirstTellus demonstrates quality management by maintaining internationally recognised

Occupational Health and Safety, Environment and Quality management systems

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Over the last 6 months, Tellus has achieved significant technical and commercial progress

2012 – 2014 5 year (3+2) contract to operate the IWDF

SR and CH Scoping Study completed

Continued engagement with community and Gov.

Commenced 39 t pilot kaolin pilot (Perth)

Commenced wet salt processing pilot (US)

Commenced dry salt processing pilot (Germany)

Major Project Status for CH. granted by NT Gov.

2015 – 2017 Independent value engineering reviews

SR Interim Bankable Feasibility Study

CH PFS Update completed

Continued Gov. and local community engagement

Lodged SR Draft Public Environment Review (PER)

Lodged CH Draft EIS (Feb 2017)

Toll logistics - 8 storage and transfer stations

Hundreds of millions of dollars of signed MOUs with majorcustomers

Indicative debt term sheet for Sandy Ridge

Indicative A$120 million debt financing MOU mostly forChandler

1. IWDF = Intractable Waste Disposal Facility, 2. SR = Sandy Ridge, 3. CH = Chandler, PFS = Pre-feasibility Study, BFS = Bankable Feasibility Study

2009 – 2011 Incorporation ofTellus

IWDF(1) / SR(2) Concept Study completed

Site selection studies: 5 salt beds (CH(3)) and 1 kaolin bed (SR) across Australia (IAEAguidelines)

Started engagement with local communities

History of Tellus

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Tellus in the Community

Support local communities (Titjikala Tidy Town) Create local jobs for TO’s Support local sports teams

Support education programs - CDU Site visits for Traditional OwnersSupport environmental program -30 rangers

Tellus supports training, local jobs and business, investment and regional development

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Tellus in the Community

Signed Agt with NT Gov (local opportunities) Create local indigenous contractor opportunities

Support local girls programs Tellus in the media - Radio, TV NewspaperSupport youth programs (50 kids – fees)

Tellus supports training, local jobs and business, investment and regional development

Support local sports teams

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Proven Low Risk Business Model

150 projects worldwide

Europe a leader in underground salt storage –Germany 20 mines

Tellus business model and technology is proven international best practice

EU Waste Acceptance Criteria (2003/33/EC)

“….in salt mines, the salt isconsidered to provide totalcontainment”.

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Tellus’ national infrastructure footprint is close to customers and existing rail and roads

ClayVault JV – Mt Walton

Sandy Ridge Facility Alice – Core Shed/ Office

Chandler –Field Camp

Perth Office & Pilot

National warehouse network

Chandler Facility

Apirnta S&T Facility

Tellus Locations

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Proposed Chandler Project - Introduction

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Proposed Chandler Project

Container wash down

Container Transfer Yard

Mine development Spoil Stockpiles

Temporary Salt

Stockpile

Topsoil Stockpile

Portal

Solar Hybrid Power Station

Admin Building

Technology Park

Shafts

General Stores and Maintenance

Facilities

Water pond catchment

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Proposed Chandler Project

3.2 km

1.5 km

Unique assets: Waste permanently isolated in a ~ 500 million year old salt bed Geology: Salt bed ~ 800m deep, ~ 250m thick, ~ 18km wide, salt bed (length unknown) Aquifer and climate: No aquifers have passed through the salt bed over the last ~ 500 million years. Located in an arid area.Infrastructure: Next to Central Australian railway line

0.8 km

1.8 km

860 m downcast (salt production shaft) 820 m upcast shaft (ventilation)5,760 m decline (waste and ventilation)

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Proposed Apirnta Facility

Backfill over placed waste

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Chandler - Geology & Mineral ResourcesTellus has to do drill to understand the geology (rock) and the hydrology (water)

Historic exploration Tellus drilling (geology)

Tellus drilling (hydrology)

Core from mining horizon

Core examination - international expertsHalite (salt)

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JORC resource, pilot and mining activities JORC Measured Resource estimate (NaCl) is 309 Mt1 Wet processing pilot completed in the USA Dry processing pilot completed in Germany that refines 95.4% rock

salt (NaCl) into 98.3% saleable grades2 Reinterpreted 145 km of seismic and approximately 4,500m of

wireline data Resource & mine planning drilling and sampling (2 holes, 1,937m)3 Water investigations holes (8 holes, 2,009m) Site topographical survey and digital aerial photography Market development agreement (PT Damarco trading company) Finance agreements

1 http://www.tellusholdings.com/2016/pdf/2014/2014_Jul_02_Chandler_Maiden_JORC_Measured_Resource.pdf

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Tellus’ Strategy – Storage, Recovery & Permanent Isolation

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Tellus bringing “world’s best practice” solutions for a difficult to manage problem

Sandy Ridge - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) - LLW level Yes

Low level radioactive waste (LLW) Yes

Intermediate (ILW) & High level radioactive waste (HLW) No

Chandler - wastes accepted and excluded

Chemical waste (NEPM Schedule A List 1: Waste categories) Yes

Naturally occurring radioactive waste (“NORM”) – Exemption Level Yes

Nuclear Waste (enriched uranium & plutonium) - LLW, ILW, HLW No

Industry waste source Best practice safety case

Mining Oil and Gas Certified Management System

Utilities (power supply, water supply, waste collection, treatment and disposal services

Regulated packaging and transport systems

Manufacturing (heavy industry, chemical industry, equipment and machinery)

Strict waste characterisation and acceptance criteria

Agriculture, forestry and fisheries

Multiple man-made barriers (‘engineered barrier’)

State Emergency Service (man made or natural disasters)

Thick 500 million year old, dry salt bed (‘geological barrier’)

Waste Acceptance Criteria

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Agriculture, forestry & fishing

Construction Government – Fed, State, Local (Emergency Services)

Healthcare

Manufacturing -Chemicals

Manufacturing -Heavy Industry

Manufacturing -Oil and Gas

Media and Telecom’s

Mining - coal, metals, non-metals, exploration

Professional, scientific and technical services

Utilities- electricity, gas supply, water, sewerage

Wholesale and retail trade

Where do the waste materials come from?

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How do we determine what type of waste it is?

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How do we package the waste?

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How do we transport waste to site?

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How do we transport waste to site?

Tellus can recommend established and reputable transport and logistics companies

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Tellus views waste as a valuable material (recover)

Safe storage of like with like materials in licenced facilities- creates recovery opportunities

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Chandler – Supporting the Circular Economy

Category 5% recycle 15% recycle

Jobs

Passenger vehicles driven for 1 year

Solar farm (1.0MW average PV panel)

Wind turbines installed (1.92MW average turbine)

16 20

32 40

<30 >40

13,535 16,774

Notes:

2/3 of greenhouse gas abatement savings from permanent isolation, 1/3 from recovery of valuable materialstCO2e equivalent assumptions currently being audited

2 MW solar

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How de we permanently isolate the waste?

A deep salt geological repository in a 500 Million year old, flat, 250m thick, 800m deep, 18 km wide, salt bed. Does not require ongoing monitoring as it is passively safe

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Salt mine related tourism

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Gov’t Policies that Align with Tellus’ Projects

Jobs - Local & Indigenous

Training and Skills

Royalties and Taxes Jobs – Women & Youth

Community Investment

Waste Infrastructure ContractingLocal andIndigenous

Innovation

Diversifying the Economy

Asian Trade

Government Social and Economic Policies Government Environmental and Haz. Waste Policies

Product Stewardship Reg’sRecycling is one of the few manufacturing sectors still growing in Australia

SustainabilityEncouraging valuable materials to re-enter the circular economy

Environmental Protection RegulationsMinimise adverse impacts on environment and human health and meeting national and international obligations

Hazardous chemicals (OHS Reg’s)Reduce OHS risk in theworkplace

Transport of Dangerous Goods Reg’sPrevents accidents and promotes safe transport

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Tellus is part of a $14.5 billion waste sector that employees over 50,000 people. These are green, sustainable, well paid jobs covering technical (engineering, chemistry, science), commercial (sales, business) and operational skills.

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NT Government’s EIA Process

We are here

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Titjikala to Alice Springs Road Update Tellus has met with the Northern Territory Government to discuss the

possible asphalting the Titjikala to Alice Springs Road (“Road”)

Tellus has met with the Australian Government to discuss the Road

Tellus has been asked to provide an unsolicited Road proposal

The parties are working out the design criteria for the Road

From the design criteria the cost of the Road is calculated

When the final cost is known, the parties will discuss possible next steps.

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Next Steps

Multiple gate capital investment program (3- 6 years to get to final investment decision)

Desktop (FEL 1) Desktop + Limited Field Work (FEL 1) Pre-feasbility study (FEL 2) Bankable feasbility study (FEL 3)

Capi

tal I

nves

tmen

t Pro

gram

?

We are

here

October 2017

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EIS Information

EIS information is on Tellus’ web site Community consultation is ongoing

Key Contacts – Tellus

Duncan van der MerweGroup Managing Director: +61 2 8257 3395

: info@tellusholdings.com

Richie Phillips GM HSEC and Compliance: +61 2 8257 3395

: : info@tellusholdings.com

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Questions?

Contact Details

Richie Phillips

GM HSEC and ComplianceE: info@tellusholdings.com.au

A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000

T: +61 2 8257 3395 www.tellusholdings.com.au

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Appendix

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Advantages of Geological Repositories

Geological Repository – Arid Near Surface Clay (Sandy Ridge) Geological Repository – Deep Underground Salt (Chandler)

Landfill

• Landfills do not permanently isolate waste from the biosphere• Once site is closed, it requires ongoing monitoring• Risk of groundwater contamination (pollution risk)• Typical landfill liner thickness ~1.5m or less• Lifespan of containment– 10-30 years(1)

• Can not issue permanent isolation / disposal certificates (hence cannot remove liability from customer balance sheet)

Engineered Barriers (Short Life)

• Can permanently isolate waste from the biosphere• Once site is closed, it requires no ongoing monitoring (post ICP), passively safe• No risk of groundwater contamination• Lifespan of containment– hundreds of thousands to millions of years• Can issue permanent isolation / disposal certificates – hence can remove customer liability• Globally considered “best practice”

Natural Barriers (Rock-long life)

1 10th International Waste Management and Landfill Symposium, Sardinia, 2005, R. COSSU, Dipartimento IMAGE, Università di Padova, Via Loredan, 20, 35131 Padova

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ClayVault WA (JV)

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Sandy Ridge Project (WA)

After 11 years of operations

Waste Inspection Building

Low Level Rad. Materials Store

Weighbridge

Admin office and Inspection Gate

Container Yard

Kaolin Process Plant and Store

Kaolin Ore Stockpile

Services Area (fuel, power, water,

maintenance)

Technology Park (future)

Accommodation Village (1.8km)

Water Ponds and Wash-down

Water Supply (12km)

Active Mine Pit

Active Waste Cell 1st Cell being Rehabilitated

Closed Cells (monitoring phase)

Unique assets: Waste permanently isolated in ~ 70 million year old clay bedGeology: Clay bed is ~ 6m deep under impermeable caprock, average ~ 14m thick, ~20km wide and ~ 160km long Aquifer and climate: No aquifer and in an arid area Infrastructure: 7.6 km from existing IWDF site

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Chandler Proposal introduction – salt mining & waste mgt

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Proposal introduction – salt mining and waste management

Australian hazardous waste market

Market size -volume (Mt)

• ~ 53.5 Mt total waste generated(2)

• ~10.3% (5.5 Mtpa) haz.(3)

• ~ 900 Mt legacy waste(2)

Marketsize value (A$)(2)

• ~ $14.2 billion(2) Australian waste market• ~ $2.4 billion(4) existing / reported hazardous waste market• ~ 50,000 + jobs, growth sector, recession proof

Sustainability• Australia is one of the highest emitters of hazardous

waste on a per capitabasis(1)

• Waste production in Australia has grown at six times population growth.

Volume of haz. waste across Australia

Waste treatment and disposal options

Landfill (Disposal), 35%

Treatment, 33%

Reuse / Recycling, 24%

Storage,5%

Sent Overseas, Energy2% Recovery, 1%

Note: Refer to End Notes for source

Situation: Recover vs

protect

• Regulators and community recognize that med-high hazardous waste should be permanently isolated(ESM)(2)

• Valuable materials should be recovered (circular economy)

• Growth in forecast & legacy waste volumes & complexity• Lack of practical & economic permanent solutions to date• Regulatory & community demands increasing

Problem: Demand↑,

Supply↓

• Can store, recover or permanently isolatewaste• Simple to use, cost effective, global best practicesolutions• Remove customer’s contingent liability

Tellus Solution

Tyres, abattoir effluent, grease trap, sewage, clinical wastes

are not targeted by Tellus

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Chandler Underground

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International Benchmarking Trip

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Winsford Rocksalt Mine - UKLargest salt mine in the UK - operating for over 170 years – combined mining and storage business.

Mining by drill and blasting

Operating since 1844Salt for snow and ice clearance in winter

Mining with continuous miners Large underground voids created

Located in rural part of NW England

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Alternative Mine Uses -UK

Concept of alternative uses of the underground void first identified in 1990’s

Deepstore launched in 1997

The first Alternative Mine Use (AMU)Mining areas after clean up

Storage room construction in progress Documents arriving for archiving

Room and pillar system >23M m3

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Minosus - UKMinosus JV set up by Salt Union Ltd and Veolia for storage and disposal of hazardous wastes

Level 3 verification testing

APC from Energy from Waste plants Secure receiving facility constructed

WAC met – waste loaded for underground APC delivered in bulk - packed on site

Underutilised existing shaft

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Minosus – Dry Packaged PlacementMultiple packages taken underground and placed into secure permanent isolation location

Containers opened in sealed storage room

Containers being driven to disposal areaContainers received 200m below ground

APC bags “pyramid stacked” Monitoring of underground atmosphere

Transit containers moved into mine shaft

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Hydraulic Backfilling Options

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Chandler - Multi Barrier SystemCombination of engineered and geological barriers provide permeant isolation

High integrity sealing systems

Multi barrier isolation system

Salt backfill and creep

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Waste Acceptance Criteria (Household & NEPM)

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Waste Acceptance Criteria (Household & NEPM)

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Waste acceptance - NORM

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Groundwater Overview Arid environment with ~ 260 mm per annum of rain. Evaporation

rates > 3,000 mm per annum (15 times average rainfall).

Not within a Water Control District.

Not connected to Mereenie Aquifer System.

Not connected to the Great Artesian Basin.

Not connected to Titjikala groundwater aquifer / water supply.

Groundwater bore holes encountered ancient lenses of water and aquifersin 4 distinct zones.

No groundwater aquifers have been detected below 400 mbgl.

Target aquifer for water supply is within the Upper Langra Formation (160 m to 220 mbgl).

Flow rates at water abstraction depth are ~ 12 litres per second.

Very saline water (18,000 mg/l) and salinity increases with depth.

Groundwater levels monitored every month.

Groundwater quality measured.

Groundwater flows southeast.

Water Management Plan drafted to manage construction and operation water demand and to protect water quality.

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Groundwater Research 2015 - 2016

Non-intrusive research

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Conceptual Groundwater Model