Name and Location
Sandpiper phosphate project.

Location
The project tenements lie in waters about 60 km off the coast of Namibia and cover a combined area of about 7 000 km² in the regional phosphate-enriched province to the south of Walvis Bay in water depths of 180 m to 300 m.

Project Owner/s
Namibian Marine Phosphate (NMP) is a Namibian registered joint venture company, the shareholders of which are Mawarid Mining LLC, from Oman, and Namibian company Havana Investments.

Project Description
The project has total Joint Ore Reserves Committee-compliant measured and indicated resources of 226.8-million tons at 19.7% phosphorus pentoxide.

A feasibility study has confirmed Sandpiper as technically and economically feasible, and envisages steady-state production of three-million tons a year of phosphorus pentoxide concentrate product (rock phosphate) grading 27.5% to 28% phosphorus pentoxide over an initial mine life of 20 years, including a two-year ramp-up period.

It is intended that dredging of the seafloor sediments will be achieved with a large-capacity trailing suction hopper dredge using existing technology.

Potential Job Creation
The operations could potentially employ about 450 Namibians directly and indirectly in the Erongo region.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $297-million and an internal rate of return of 23.6%.

Capital Expenditure
Capital costs to first production for a three-million-tonne-a-year operation are currently estimated at $326.3-million, according to a definitive feasibility study in March 2012.

Planned Start/End Date
Following a final investment decision and securing financing for the project, the estimated construction and commissioning period is 24 months.

Latest Developments
A review application launched by the Confederation of Namibian Fisheries Associations and three other applicants were heard in the High Court of Namibia on July 7.

NMP’s shareholders, legal counsel and management are confident that the judgment will be in NMP’s favour, as they remain committed to the responsible development of the first marine phosphate mining project in Namibia.

The judge has until March next year to hand down judgment, but CEO Chris Jordinson hopes this will be sooner.

NMP has spent the past nine months completing and submitting the recommended supplementary environmental studies and relevant information for the commissioner’s consideration.

Eighteen public and stakeholder consultations pertaining to the project’s environmental factors have been held, coupled with three independent external reviews and four independent peer reviews.

NMP engaged more than 30 international consultancies on the project, with 28 specialist studies conducted.

Jordinson has said that all the additional studies and information enhance the findings presented in the original environmental-impact assessment, indicating that the nature and scale of the proposed dredging operations will have no significant impact on the commercial fishing industry or the marine environment.

Should the court judgment approve the Sandpiper project to proceed, Jordinson expects that it will take a year to get land permits in place around Walvis Bay, following which construction will start, taking a further 24 months.

It will take three years of preparation and development before production will start.

Many fishing industry workers have been protesting against marine phosphate mining in Namibia, urging government to not grant prospective miners an Environmental Clearance Certificate. The workers are represented by the National Union of Namibian Workers and the Trade Union Congress of Namibia.

There are about 16 000 workers in the fishing industry and concerns are that seabed mining for phosphates will inflict irreversible damage to Namibia’s lucrative fishing industry. However, NMP says environmental studies have proven that the seabed mining proposed by the company poses no threat to the environment or marine life.

Key Contracts and Suppliers
J Midgley & Associates and Enviro Dynamics (environmental consultants).

Contact Details for Project Information
Minemakers, tel +61 8 9264 7000, fax +61 8 9264 7099 or email frontdesk@minemakers.com.au; or Magnus Investor Relations & Corporate Communication, John Gardner, tel +61 413 355 997.
Union Resources, tel +61 2 9233 4750, fax +61 2 9233 4749 or email info@unionresources.com.au.
Tungeni Investments, tel +264 61 400 205, fax +264 61 221 333 or email info@tungeniafrica.com.