Dean Journeaux - nmliron.com EU Iron Ore... · VP Metallurgy & Plant Design . 19 . ... Dean Journeaux . ... • 84% recovery with integrated plant • 4.2 mtpy of sinter fines and

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Dean Journeaux President and CEO New Millennium Iron Corp. EU Iron Ore Conference 8-9 October 2012 Vienna, Austria

Active Projects Now and Resources for the Future

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Safe Harbour Statement

New Millennium Iron Corp. shall not be liable or responsible for any claim or damage, direct or indirect, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information. Users should not rely on information for any purpose other than for gaining general knowledge of New Millennium Iron Corp. Although New Millennium Iron Corp. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Resources listed as “historical” are not currently in compliance with NI 43-101, and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.

2 EU Iron Ore Conference - October 8 & 9, 2012

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NML: Newest Producer in Canada’s Labrador Trough

• Now producing direct shipping ore • Among the world’s largest holders

of certified iron ore resources • Not just one project, but an entire

iron ore district • Taconite holdings now in advanced

feasibility study stage • Highly experienced management

team, with strong ties to the Labrador Trough

• NML Office Locations


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Vision and Expertise

Position at New Millennium

Years Experience Area of Experience Previous employment experience

Bish Chanda Senior VP Marketing & Strategy 35+ Iron ore Chief engineer: IOC

Moulaye Melainine Senior VP Development 25+ Mining Manager Mining Ops & Comptroller: SNIM, Mauritania

Paul F. Wilkinson Senior VP Environmental & Social Affairs 35+ Environment & social

sciences PFW & Associates Inc., Associate Director

of Northern Studies: McGill University

Mark Freedman CFO 17 Accounting Partner: Roll Harris & Associates

Ernest Dempsey VP Investor Relations & Corporate Affairs 35+ Iron ore sales &

marketing VP: Mitsubishi, IOC

Cathy Dornan VP Communications 20+ Communication & public relations

Cathy Dornan Public Affairs Inc., Bristol Communications Inc.

Rock Gagnon VP Metallurgy & Plant Design 19 Iron ore Metallurgical Engineer: MetChem and COREM

Stephen Fontanals Director of Operations Research 15 Iron ore Financial Controller, Wabush Mines

B.K. Balakrishnan Chief Geologist 40+ Canadian mining geology Geologist: IOC

Robert A. Martin Chairman of the Strategic

Advisory Committee of the Board of Directors

40+ Iron ore Former President and CEO

40+ years experience in iron ore Former President of Met-Chem Former Project Manager of QCM Mont-Wright

Dean Journeaux President & CEO, Director


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Building Long-Term Growth

Exploration

DSO

Taconite

Direct Shipping Ore In Production

KéMag & LabMag deposits The Company Builder

Defining the resource base A Huge Iron Ore District, controlled by NML


Building Long-Term Growth

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Partner with Strategic Captive Iron Ore Need

a respected multi-national company

Committed to improving European operations, which require 20-25 mtpy of iron ore

Investing in steel-making and downstream processes to become a leading player in Europe

Reducing raw material costs through captive inputs is key element of the improvement strategy for ironmaking

One of the world’s largest steel companies

Crude steel capacity of 28 mtpy with plan to increase to 40 mtpy by 2020

Partnership in DSO Project and Taconite Projects

Tata Steel owns 26.5% of NML and has 3 Board members

~ 3,700 nautical miles


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DSO: The New Producer

• Puts 25 DSO deposits into JV • Labrador Trough management

and operating experience

20% OWNERSHIP OF JV 80% OWNERSHIP OF JV

• 100% off-take guaranteed for life of mine • Arranges financing up to $300 M of project

costs • Finances 80% of project costs over $300 M

CONTRIBUTIONS CONTRIBUTIONS

BENEFITS BENEFITS • 20% Equity free carry up to $300 M

• Minimizes marketing risk • Lower ocean freight cost impact on FOB

pricing compared to Asian markets • Receives 20% of JV cash distribution

• High quality, captive ore from stable and proximate source

• Starter project that adds to growing global mining portfolio

Joint Venture Operator .


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DSO: Adapting to the North

• Life-of-mine central processing complex, housed under a weather-proof structural dome

• First company in Schefferville area to operate year round

• Engineered to be a cost-efficient operation

• Quality to meet Tata Steel Europe’s specifications with Fe > 64.5% and Al2O3 + SiO2 < 4.5%, Moisture <2.5% in winter

• 84% recovery with integrated plant

• 4.2 mtpy of sinter fines and super fines


Erection of Dome Trusses

DSO Project Plant Site

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DSO : First Saleable Product – September 10, 2012


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Binding Heads of Agreement Signed with Tata Steel in March 2011

• Feasibility Study in progress with completion targeted for end of 2012 LabMag and KéMag deposits being evaluated Budget of $50 million Jointly managed and cost shared: Tata Steel 64%, NML 36%

• Scope under study is 22 mtpy concentrator feeding 17 mtpy pellet plants • Infrastructure includes 600+ km slurry pipeline, 270+ km transmission

line and port facilities • Tata Steel investment decision in Q2, 2013 • Subject to a positive feasibility study, Tata will arrange financing up to

$4.85 Billion, excess to be shared pro-rata • Off-take interest in proportion to ownership


Taconite Project: Company Builder

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Taconite Project: Equity Sharing

Equity Opportunity for NML of Up to 40%

Valued at $290 M $4.85 B CAPEX 30:70 equity-to-debt ratio

Option to

acquire up to an additional

16%

4% ROFR if Tata brings in a

third party

Cost of Financing 16% Additional Equity ~$230 M based on: $4.85 B CAPEX 30:70 equity-to-debt ratio

Cash Flow to NML: $250 - $300 M

based on 36% ownership

20% Equity

free-carry

NNK owns 20% of LabMag Project


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Taconite: Pre-Feasibility Study Results

PFS Long-term Current 0

5

10

15

20

25

30

35

40

45

0

2

4

6

8

10

12

14

16

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90.00 125.00 160.00

Post-Tax IRR

% Post-Tax NPV

(Discounted at 8%)

CDN B$

Acid Pellet Price: US $ / tonne

Sensitivity to Sales Price

PFS

1. After taxes 2. Discounted at 8% 3. After start of commercial production

Mine Capital Cost $4.4 B

Net Present Value1,2 $5.6 B

Payback Period3 4 years

Internal Rate of Return1 21%

Production 22 M Tonnes / year

Expected mine life

LabMag KéMag

46 years 28 years

SENSITIVITY TO SALES PRICE

KéMag PFS

Results (2009)

Assumes production of 22 Mtpy


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Taconite Project: Simple Geology

• Magnetic taconite ore similar to that of Minnesota’s Mesabi Iron Range • Sedimentary ore body averaging 60 meters thick with 7 distinct stratigraphic layers • Total mineral formation strike length: 10 km long, 1.5 km wide • Shallow, near surface, slightly dipping ore body with very low stripping ratio • Minor overburden and internal waste • Open pit mineable • Average head grade: ±30% total Fe

EU Iron Ore Conference - October 8 & 9, 2012

Millennium Iron Range Taconite: Typical Cross-Section

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Taconite Project: Innovative & Competitive

• High Pressure Grinding Rolls (HPGR) replace SAG mills, resulting in substantial energy savings

• Large scale and most technologically advanced equipment will be installed

• Product range capable of servicing needs of steelmakers globally

• Silica grade will be reduced in an upgrading circuit to produce DR grade pellets

• Based on pot grate tests at respected SGA lab in Germany, pellet quality was found to be comparable or even superior to other commercial grade pellets

EU Iron Ore Conference - October 8 & 9, 2012

High quality products from ~30% Fe head grade Concentrate Fe 69.8% SiO2 2.2% BF Pellets Fe 66.4% SiO2 2.4% DR Pellets Fe 67.8% SiO2 1.8%

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Taconite Project: The Pipeline Alternative

High quality products from ~30% Fe head grade Concentrate Fe 69.8% SiO2 2.2% BF Pellets Fe 66.4% SiO2 2.4% DR Pellets Fe 67.8% SiO2 1.8%

• Fine grained concentrate ideal for slurry transportation

• Cost-effective alternative to rail • Indicative rail tariff is

$12 - $15/t (CAPEX + OPEX)

• Pipeline cost estimate is $5/t (CAPEX) + $2/t (OPEX)

• Low-cost solution that gives NML Taconite significant competitive advantage among North American pellet producers

• NML also participating in CN – Caisse de Dépôt railway feasibility study in order to fully assess transportation options available


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• Savage River, Tasmania (built 1967) - World’s first and still operating - 85 km long

• Samarco, Brazil (first line built 1977) - Two 400 km lines in operation - Third line under construction - Leading cost performance • Essar, India (2002) - 267 km pipeline built for Vizag plant - 253 km pipeline built for Paradip plant [2010] • Baotou Steel, Inner Mongolia (2010) - Largest iron ore concentrate pipeline system in China, 145 km - Transports 5.5 million tonnes of iron concentrate per year - Cold weather conditions comparable to Labrador Trough • Minas Rio, Brazil (2011 – under construction) - 522 km, 24” and 26” diameter, 24.5 mtpy

Iron Ore Transportation via Pipeline is Well Established

EU Iron Ore Conference - October 8 & 9, 2012 16

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Managing in Cold Weather

Precedent • Existing pipelines operating at very low temperatures:

– Base Metals concentrates in Siberia, Norilsk (1981), Eight above ground lines, 30 Km, 11"Ø, extremely harsh climate with average temperature of -10ºC and lows of -58ºC.

– Phosphate in Idaho (1982), 137 Km, 8"Ø, Ambient temperature as low as -43ºC.

– Iron ore in Inner Mongolia, Baotou Steel (2010), 145 Km, 14"Ø, Ambient temperature as low as -41ºC.

Freeze Prevention • Pipeline buried below frost line

• Above ground sections at river crossings are insulated and heat-traced

• Slurry flow generates heat – In extreme cases, emergency power and stand-by pumps ensure continuous flow

• Flow can be stopped for extended maintenance periods

• Pipeline is continuously monitored for pressure, temperature, flow and leak detection, and rigorously inspected to ensure reliability

EU Iron Ore Conference - October 8 & 9, 2012 17

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Taconite Project: New Dock at Port of Sept-Îles


Existing Facilities

Artist’s Rendering of New Dock

Federal Government funding approved in February 2012 for state-of-the-art, multi-user loading dock

Port of Sept-Îles has started construction

NML a participant in new dock through $38.4 M investment for 15 Mtpy annual shipping capacity

3 Mt capacity stockpile at terminal

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Taconite Project Status

• Environmental base line studies in progress

• Study Manager engaged, working with leading specialized consultants: – Mining – Concentrator and Upgrading Plant – Slurry pipeline – Tailings, site infrastructure, electrical transmission and product storage

• Outotec, Espoo, Finland: State-of-the-art pelletizing technology

• World Steel Dynamics Inc., Englewood Cliffs, New Jersey: Market Study

• Discussion with potential off-takers

• Feasibility study to be completed by end of 2012

19 EU Iron Ore Conference – October 8 & 9, 2012

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Taconite Project Schedule

2013 2011 2012 2016

Complete Feasibility Study, jointly with Tata Steel

Development to Production

Tata Steel: Final investment decision in April, 2013

2014 2015

2013 2011 2012 2016 2014 2015

2017

2017

Construction

Production buildup


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NML’s Certified Taconite Resources Category (M tonnes)

KéMag LabMag lac Ritchie

Proven + Probable 2,141 3,545

Measured + Indicated

307 1,045 3,330

Inferred 1,014 1,151 1,437

Fe Grade (average)

31.3% 29.5% 30.5%


Millennium Iron Range: A Huge Iron Ore District

• 210 km long Millennium Iron Range is comparable to Minnesota’s Mesabi Iron Range in the US

• Resources large enough to potentially produce for over 100 years

• Extensive drilling in progress to identify other major resources

• Over 10,000 m drilled in 2012

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Conclusion

Properties located in mining-friendly jurisdictions

Two advanced projects in one of world’s richest iron regions

High-value iron to supply rising global demand

Strategic partner Tata Steel needs the ore

Experienced management team

Strategy in place to form new partnerships


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Thank you.

www.NMLiron.com


Documents

Dean Journeaux - nmliron.com EU Iron Ore... · VP Metallurgy & Plant Design . 19 . ... Dean Journeaux . ... • 84% recovery with integrated plant • 4.2 mtpy of sinter fines and