SOGUIPAMI Public Company for the Management of Mining Assets RÉPUBLIQUE DE GUINÉE TRAVAIL – JUSTICE - SOLIDARITÉ Bauxite from Guinea, a profitable investment opportunity M. Ahmed KANTE Former Minister of Mines General Manager of SOGUIPAMI

Summary 1.Mining potential in Guinea 2.The bauxite sector in Guinea 3.Reforms for the development of mining potential 4.Key Facts 5.Immediate investment opportunities in the bauxite sector 6.Perspectives

1.MINING POTENTIAL IN GUINEA

40 billion tons with an alumina content higher than 40% + 20 billion tons of ore with a world class 60% iron content 700,000 tons with production costs that make projects competitive 30 million carats with opportunities for discoveries of new reserves BAUXITE IRON GOLD DIAMOND Possibility of discovering new minerals (nickel, copper, cobalt, manganese,...) 1.MINING POTENTIAL IN GUINEA 19 million tons ESTIMED RESERVE 400 carats ANNUAL PRODUCTION PRODUCTION 0 ton 20 tons 0,1 % of the estimated reserves 488 tons (1989 – 2015)

2. THE BAUXITE SECTOR IN GUINEA

Evolution of bauxite production in Guinea (1950 – 2015) Source : BRGM 41 years without a new mine 2. THE BAUXITE SECTOR IN GUINEA years non stop of bauxite production years of active operations for the first alumina plant in Africa

3. REFORMS IMPLEMENTED TO DEVELOP THE MINING POTENTIAL

Economic reforms since 2010 to make the country attractive 3. REFORMS FOR THE DEVELOPMENT OF MINING POTENTIAL (1/3) Improving the business climate: Progress in “Doing Business ranking” and in the “Mo Ibrahim Index” Net increase in electricity production: inauguration of the Kaleta dam (2015), start of work on a new dam (Souapiti Dam), Solar Energy, rehabilitation & modernization of the distribution network. Creating a government owned mining asset management company: The SOGUIPAMI Installation of fiber optics: better access to ICT Opening of Guinea to massive quality foreign investment Economic Stability: Debt cancellation macroeconomic reforms, inflation control redressing of balance of payments Foreign exchange reserves Republican institutions have been established: : Constitutional Court, High Judicial Council, Court of Accounts Strengthening of Democracy: Presidential elections (2010, 2015), legislative (2013), municipal & communal (scheduled for 2016)

The SOGUIPAMI, a tool at the service of the Guinean State for the development of Guinea's mining potential…… The role of SOGUIPAMI is: o The management of shares held by the Guinean State in mining companies, in industrial companies, in infrastructures and in services related to mining. o Management of mining rights on behalf of the State: marketing & transport of mining products ; o Management of the Geological infrastrucutures o Participation in mining exploration programs through ownership or partnership in exploration permits for promotional purposes; 3. REFORMS FOR THE DEVELOPMENT OF MINING POTENTIAL (3/3) GBT SMG GUIO RD MAG ANA 1&2 MM SMG GUI ORD MAR ELA SMG GUIO RD DALA GNA CA ME N GIO A M C CA ME N GMRGMR GBT AXIS SBG

Others reforms to develop the mining sector…. Establishment of consultative committees in the mining communities in the prevention and management of conflicts. Implementation of the policy of local content and employment training for communities, supplies of goods and local inputs. Sharing of mining transport infrastructure, a first experience in Africa. UNPRECEDENTED BOOM OF GUINEA MINING A one stop shop dedicated to mining projects, modernization and cleaning of the mining cadaster 3. REFORMS FOR THE DEVELOPMENT OF MINING POTENTIAL (2/3) With these reforms, Guinea is ready to meet the world demand for bauxite.

3. REFORMS FOR THE DEVELOPMENT OF MINING POTENTIAL (3/3) MAJOR CHALLENGE: implementation of the master plan for mining infrastructures based on 3 growth corridors

4. KEY FACTS

4. KEY FACTS (1/2) : recent reduction of supply The Guinea remained the second largest producer of bauxite from 1978 to 2002, behind Australia. She fell to 5th rank in the world in 2010, after being successively surpassed by Brazil, China and Indonesia, and returned to fourth in 2014 with the fall of the Indonesian production following the export bans. stopping of Indonesian exports

SMB (Hongqiao, Winning and UMS) company has shown that it is possible to develop a bauxite project in Guinea in less than a year … “It is very difficult to develop mining projects in Guinea because of the business environment”... concerns in the mind some of investors... But…. SMB Project Development Cycle November 21, 2014 Authorization for recognition January 19, 2016 Research Permits Two months July, 7, 2016 Operating license Seven months Construction work for mining road, port and mine site development July, 20, 2016 First tons of bauxite exported 13 days Despite the worst health crisis (Ebola epidemic) that the country ever experienced. In 9 months SMB’s project has become a reality and has exported to date 4 million tons of bauxite. The first Guinean entrepreneurs will start operations before the end of KEY FACTS (2/2): « SMB EFFECT »/semi industrial exploitation & Guinean entrepreneurship

5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR

5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR (1/4) The bauxite blocks Boffa, an estimated reserve of 6 to 9 billion tons, are some of the most important blocks of bauxite unexploited in the world. These blocks are composed of: 3. Boffa block South: with an area of 658 km2, with estimated reserves of 1954 cut off grade and % cut off grade 1. Boffa block Santou: with an area of 484 km2, with estimated reserves of 2394 cut off grade and % cut off grade 2. Boffa block Center: with an area of 599 km2, with estimated reserves of 1823 cut off grade and % cut off grade The feasibility studies and technical data are available and the Government is preparing to develop these bauxite blocks. 2. Boffa block Hauda: with an area of 200 km2, with estimated reserves of 1763 cut off grade and % cut off grade

MISSIRA BAUXITE PROJECT IN TELIMELE - GUINEA COG = A.Al 2 O 3 Cut Off Grade; Mdt = Million Dry Metric Tonnes Project COGAl 2 O 3 A.Al 2 O 3 R.SiO 2 SiO 2 Fe 2 O3TiO 2 Mdt Missira >43% Missira 38%-43% >38% The Missira Bauxite Project is well positioned to be an easy, low cost project.: project located near the existing CBG infrastructures, 25 km from Sangaredi.  Large high grade, low impurity, gibbsitic bauxite resource  Extremely long life potential  Options for short term high- grade production – with long term growth potential 5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR (2/4)

SOGOLON BAUXITE PROJECT NEAR FRIA REFINERY 5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR (3/4)

BOFFA BAUXITE PROJECT - GUINEA 5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR (4/4)

BOFFA BAUXITE PROJECT – GUINEA (continued) 5. IMMEDIATE INVESTMENT OPPORTUNITIES IN THE BAUXITE SECTOR

6. PERSPECTIVES

Mining Logistics and competitiveness of Guinea The geographic location of Guinea and the access to all world markets require the development of world class infrastructures to increase Guinean attractiveness and competitiveness. Deep sea ports The extension of Conakry port & two new locations for deep sea ports have been located and studies are underway Soguipami is looking for investors Railway The extension of existing railway network is being studied by the Government. Different companies have offered railway development schemes based on the development of Mining activities Mining companies, civil works companies, infrastructures builders are presently discussing options and financing schemes. The door is open for investors for the implementation of the master plan for mining infrastructures 6. PERSPECTIVES (1/2)

The expansion of Guinea power generation capacity will allow the implementation of new mining industries and the creation of local added value is boosted. The key issue for the development of the alumina & aluminium sector in Guinea is the access to affordable and abundant energy. The Government has launched a very heavy investment program based on renewable energy (Hydro- power) The extension of this program will be supported by the consumption of the mining industry. This will help the implementation of competitive alumina and aluminium plants Access to huge volume of high quality raw material and to energy will increase the competitiveness of exported Guinean products (alumina then aluminium) on the world market Energetic ProductionNumber of sites More than 200 MW4 Between 150 and 200 MW3 Between 100 and 150 MW10 Between 50 and 100 MW16 Between10 and 50 MW48 6. PERSPECTIVES (2/2) Garafiri 75 MW Souapiti 435 MW Kaleta 240 MW Koukoutamba 350 MW

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