The future of mining industry investment September 2015

Why mining Mining is one of the true primary industries Converting mineral resources to wealth Bringing people out of poverty Developing jobs and skills Building nations

The Pilbara

Why not mining? It destroys landscape It disturbs forests It pollutes waterways It breaks down social fabric It concentrates wealth Governments don’t get a big enough share Lots of people miss out But are any of these assertions true?

What can this industry do for you? Develop people Develop natural mineral resources Be a revenue stream for governments and indigenous people Build wealth for shareholders, nations and sovereign wealth funds Spur investment in supporting industries Draw-in global financial and technical expertise Bring people out of poverty Strengthen your economy Bring nations into the engine for growth for the world

Sepon - Laos

But how? The resources are where they are Mining companies, local people and governments MUST work together to realise value International standards must be achieved and performance sustained Access to international finance strengthens economies Access to skills and technical expertise develops people Supporting industries build your economy Mining companies are to a degree captive to the resource But mining capital moves at the speed of light – its tough out there, so governments must offer attractive fiscal and compliance regimes to win the investment

Martabe - Indonesia

What happens? People Tailings Environment Access, Farm to market Roads Generation Power Supply Water Downstream industry Processing Shipping Ports Accommodation Camps Education Forests Health Skills Security Distribution Water Mining Method Contractors Suppliers Housing Rehabilitation

So what? Real money comes in to develop the mine Real training and development are necessary to build a workforce Investment in and utilisation of supporting industries happens Infrastructure improves Governments have more resources to deliver improvements to standards of living outside the mining area – in cities and towns not directly affected by mining Health and education and development can be enhanced National wealth grows

Didipio - Philippines

So how to avoid the pitfalls and reach genuine sustainability It destroys landscape – plan workable laws and set practical standards for mine operations, local development, final mine closure and re-use It disturbs forests – set expectations for reforestation, buffer zone planting, local species seeding, local nursery investment from indigenous groups, local forest monitoring as part of the life of mine plan It pollutes waterways – insist on high standards of engineering and performance that are affordable and involve local people in monitoring and management It breaks down social fabric – engage early, build capacity, train locals, employ locally, educate locally, develop health networks, LISTEN, continuous positive engagement It concentrates wealth – share! Local people first, indigenous people, local governments, national governments, shareholders, investors, – be open and discuss the facts Governments don’t get a big enough share – practical fiscal and compliance regimes to share benefits and encourage local investment to support the resource developments Lots of people miss out – make sure they are part of it from the beginning, seek formal informed consent, train them, employ them, buy their supplies (food, clothing etc), make it their project supported by the Nation

ICMM Principles The 10 principles 01. Implement and maintain ethical business practices and sound systems of corporate governance Integrate sustainable development considerations within the corporate decision-making process Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities Implement risk management strategies based on valid data and sound science Seek continual improvement of our health and safety performance Seek continual improvement of our environmental performance Contribute to conservation of biodiversity and integrated approaches to land use planning Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products Contribute to the social, economic and institutional development of the communities in which we operate Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders. 10.

References UN Guiding Principles on Business and Human Rights The Voluntary Principles on Security and Human Rights Equator Principles Others

Who is Mannerim Capital? Mannerim Capital is a new consulting firm, created to help mineral project owners get from plans to production We have access to an extensive network of mining professionals, financiers, investors and customers We can help you develop your project or invest in the project of your choice with capable and informed advice, analysis and relationship building across the mining sector Australia is our home and South-East Asia is where we do our best work

Experience Extensive mining industry experience over more than 25 years; WMC Resources BHP Billiton Oxiana Limited OZ Minerals Limited MMG Limited Indophil Resources NL New Age Exploration Tigers Realm Resources Engaging the services of Mannerim Capital will give you; Mineral industry insight A global mining industry network Deep and broad experience in the industry across many commodities High quality analysis of projects, assets, operations and companies in the minerals sector Guidance and advice to bring your strategy to life

Contact us Neil Grimes Managing Director