Performance
Strategy
The purpose of exploration is to add value to the Group by discovering or acquiring resources that can increase future cash flows.
A fundamental element of the Group's business strategy is a clear focus on finding and mining only the largest, lowest cost, resources that are profitable at all parts of the natural price cycle and that deliver a sustainable competitive advantage. These are described as Tier 1 resources.
Greenfield exploration, which aims to establish completely new operating business units, involves geographic or commodity diversification away from existing Group operations. The greenfield portfolio comprises primarily opportunities in bauxite, copper, iron ore, energy and minerals (coal and uranium).
Brownfield exploration is directed at sustaining or growing the existing Group business units. The brownfield environment provides the easiest opportunity for creating value through exploration as the Group controls highly prospective title around its existing operations where the likelihood of finding additional resources is strong. With processing infrastructure already in place, this means capital expenditure requirements for developing additional orebodies are usually lower than in a greenfield setting.
| Greenfield projects |
JORC Category | |
|---|---|---|
| Simandou | Inferred | 2.25 billion tonnes @ 66 per cent iron |
| La Granja | Inferred | 2.77 billion tonnes @ 0.51 per cent copper |
| Resolution | Inferred | 1.34 billion tonnes @ 1.51 per cent copper |
| Eagle East | Exploration Target | 2 - 3 million tonnes @ 0.8 - 0.9 per cent nickel |
| Sulawesi | Inferred | 162 million tonnes @ 1.62 per cent nickel |
| Mozambique mineral sands | Exploration Target | 7 - 12 billion tonnes @ 3 - 4.5 per cent Total Heavy Mineral |
| Bunder | Inferred | 37 million tonnes @ 0.74 carats |
| Jadar | Inferred | 114 million tonnes @ 1.8 per cent Li2O and 13.1 per cent B2O3 |
| Tamarack South | Exploration Target | 5 - 11 million tonnes @ 1.0 - 1.1 per cent nickel and 0.6 - 0.7 per cent copper |
| Brownfield sites |
||
| Bingham Canyon | Indicated and Inferred | 640 million tonnes @ 0.46 per cent copper |
| Bingham Canyon | Exploration Target | 500 - 600 million tonnes @ 0.1 - 0.15 per cent molybdenum |
| Corumbá | Exploration Target | 8 - 10 billion tonnes @ 52 - 55 per cent iron |
| Ranger 3 | Exploration Target | 15 - 20 million tonnes containing 30,000 - 40,000 tonnes of uranium oxide |
