Paul Maney
Innovation Manager
28th February 2019
Innovation through the CycleShaping the future – one grain of sand at a time
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Disclaimer – Forward Looking Statements
Forward Looking Statements
This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production
potential; estimates of future capital expenditure and cash costs; estimates of future product supply, demand and consumption; statements regarding future product prices; and statements
regarding the expectation of future Mineral Resources and Ore Reserves.
Where Iluka expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation
or warranty, express or implied, is made by Iluka that the matters stated in this presentation will in fact be achieved or prove to be correct.
Forward-looking statements are only predictions and are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed,
projected or implied by such forward-looking statements. Such risks and factors include, but are not limited to:
• changes in exchange rate assumptions;
• changes in product pricing assumptions;
• major changes in mine plans and/or resources;
• changes in equipment life or capability;
• emergence of previously underestimated technical challenges; and
• environmental or social factors which may affect a licence to operate.
Except for statutory liability which cannot be excluded, Iluka, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material
contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any
information in this presentation or any error or omission there from.
Iluka does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect
the occurrence of unanticipated events, except as may be required under applicable securities laws.
Non-IFRS Financial Information
This presentation uses non-IFRS financial information including mineral sands EBITDA, mineral sands EBIT, Group EBITDA and Group EBIT which are used to measure both group and
operational performance. A reconciliation of non-IFRS financial information to profit before tax is included in the supplementary slides. Non-IFRS measures have not been subject to audit
or review.
Mineral Resources Estimates
The information in this presentation that relates to Mineral Resources estimates previously announced to ASX. Iluka confirms that it is not aware of any new information or data that
materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in those
announcements continue to apply and have not materially changed. Iluka confirms that the form and context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcements.
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Operations and Assets
SOURCE: Iluka, Smithers Boston Conference 2018
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Zircon
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Titanium Dioxide
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Stages of the Mineral Sands Process
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Process Overview – Mining Units and
Concentrator
SOURCE: Iluka Jacinth-Ambrosia Site Visit 2018Feed Hopper
Grizzly Screen
Drum Scrubber
TrommelConstant Density Tanks
Hydro
cyclonesThickener Spirals
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Process Overview Mineral Separation
SOURCE: Iluka Jacinth-Ambrosia Site Visit 2018
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Synthetic Rutile Process Flow
SOURCE: Iluka South West Site Visit 2017
Reduction Separation Aeration Hydrocycloning Leaching Drying
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Innovation @ Iluka
Implementation of compelling new ideas that create and deliver value for
customers, shareholders and employees
_______________________
Innovation at Iluka Resources
““
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Iluka Innovation Framework
Horizons
Pipeline
Behaviours
Lenses
Concentrator, Jacinth Ambrosia
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Innovation Horizons and Portfolio Balance
Geology in Mining Pit, Jacinth Ambrosia
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Innovation Behaviours
Collaborating employees
lead to new innovation ideas
and the improvement of
innovation ideas.
Testing assumptions early in
the process enables Iluka
employees to learn and
adapt and if failure is to
occur to fail as early as
possible in the process.
Learning from failures
enable Iluka employees to
improve ideas.
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Lenses of Innovation
Challenge the status quo
where employees
question deeply held
beliefs inside Iluka and
inside industries about
what drives success.
Identify ways to leverage
our competencies and
strategic assets and
identify customers’
unarticulated needs.
Harness discontinuities
by spotting unnoticed
patterns or trends that
could substantially change
the rules of the game.
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Innovation is at Our Core
Our Innovation Community and Outcomes
Innovation Manager
Innovation Leads
Innovation Champions
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3
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Dedicated role
Additional to nominal
role 10-15%
Additional to nominal
role 10-15%
1368
Members
758
Ideas
1618
Votes
9 Active
Challenges
19 Closed
Challenges
25 referred
to Iluka IDT
Product
Development
Complex Ore
RefiningMining Methods Rehabilitation
2 of Iluka’s
26 Patents
Material
Expected
Returns
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Innovation Process
• Hackathons
• Standing
Challenges
• Timebound
Challenges
• Workshops
Unsuccessful ideas to have feedback as to
reason for not going ahead
IPMS
Idea Generation
& Team Review
Innovation
Development
Team
Innovation
Leadership
Team
MEP /
Execution
Iluka IDT
Pipeline
• Development
• Feasibility
• Presentation
• Assessment
• Prioritisation
• Support for
Execution
Grow &
Transform
Improve
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Challenge framework
Iluka IDT
MW Improve
SRL Improve
SW Improve
Perth Improve
Ideas Anytime
MB Improve
Cataby Improve
Time Bound
Challenge
Grow
Transform
• Aligned to business units and
subsequently geographical
location
• Standing challenges allow
ease of idea submission and
evaluation through the
IdeaScale Innovation Portal
either via desk top or mobile
application
• As needed time bound
challenges are run and
archived
• Ideas Anytime is a catch all
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Innovation Challenge Funnel
New Ideas
IDT Review
Functional Review
ILT Review
Execution
Implemented
Unsuccessful
Parked
Concentrator, Jacinth Ambrosia
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An example of ideas being captured
Reducing our environmental footprint and our cost
base by utilizing an emerging solution known as a
BiobiN that reduces compostable volumes by 50%
and enables these to be converted to compost and
biofuel rather than going to landfill in Ceduna.
Idea Opportunity
Idea Domain Improve
Iluka Plan Excel in Our Core
Replicable Yes
Funnel Status JAIDT Review
Idea Owner
Challenge JA Improve
Idea Number 762
Idea Status
Idea Update
Quotes sourced from the vendor and currently working through the detailed financial analysis for the
JAILT review. There is a dependency associated with the change of tubs and cutlery to biodegradable
varieties or moving to reuseable packs (Idea 811).
Idea Link
https://iluka.ideascale.com.au/a/dtd/Waste-Management-Sealed-Compost-Bins-Culture-Change/1526-10#idea-tab-comments
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Opportunities moving forward
Amplifying the innovation narrative
Strengthening the drive to value
• Development of Value Driver Trees
• Financial Evaluation
Maximising our IdeaScale Investment
• Leveraging internal functionality and API’s
• Proof of Concept and Execution Project Management
• Benefits tracking
• Iluka IDT Pitch Funnel and Idea Evaluation
Continued challenge focus
• Aligning challenges to the Innovation Strategy
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3
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Focused innovation across the value chainKey challenges looking to be unlocked in Grow and Transform
Sustainable Value
Chain
Automated and Digital
Value Chain
Alternate Excavation
Precision Extraction
Digital Resources
Our priority is ensuring our people are safe and we continue to maintain our
social license to operate. Focus on driving ways to improve our environmental
and social footprint, and to ensure our people are safe through innovation
Exploiting automation, digital and remote operations to optimize the processes of
exploration, mining, processing, rehabilitation and functions to leverage our
existing assets and maximize the return on future investments
With marginal deeper resources and increased material movements associated
with rehabilitation, new more cost effective ways of excavation are required to
leverage our resource base and drive productivity
Our ore orebodies are more complex with declining grades, increased impurities
and challenging physical properties. Recovery and processability are key, as is
defining new products to continue to transform our customers experience and
value-in-use
Leveraging smarter and faster targeting technologies to identify and evaluate
opportunities. Materially increase the number of targets and resources added,
reduce in-country expenses, and reduce the time from sample to resource
Innovation Theme Innovation Imperative
Synthetic Rutile Polished Section
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Iluka Resources Limitedwww.iluka.com
For more information, contact:
Paul Maney
Innovation Manager