Future Expectations for Mining Eurasia MENA Mining Summit Johannes Drielsma 16/17 May 2012 - Istanbul, Turkey www.euromines.org

Euromines – what it is Recognized representative of the European metals and minerals mining industry; Service provider to its members with regard to EU policy; Network for cooperation and for the exchange of information throughout the sector within Europe; Link to contacts with the mining community throughout the world. www.euromines.org

Euromines – what it does Defines common industry positions and actions. Establishes a constructive dialogue with the governmental institutions in order to ensure early consultation in all those areas of EU policy and legislation affecting the industry, and to asserting the industry's views and positions. Advocates for the extractive industry by promoting the benefit and societal value of both its activities and its products. www.euromines.org

Euromines Membership Euromines Represents large and small companies and subsidiaries in Europe and in other parts of the world; 18 national mining federations 27 direct company members 350,000 jobs; Representing 42 different metals and minerals For some metals and minerals, Europe is the world's leading producer. www.euromines.org

Countries represented Austria Bulgaria Cyprus Czech Rep. Finland France Germany Greece Hungary Ireland Norway Poland Portugal Romania Slovakia Sweden Turkey UK www.euromines.org

Euromines Structure Based in Brussels Membership meetings twice a year. Working committees and groups meet regularly throughout the year; Euromines is following trade and investment questions for the mining industry outside and inside Europe. Euromines Committees: Environment Committee Health & Safety Committee Communication Committee Policy Committee Gold Mining Assembly Magnesite Producers Assembly www.euromines.org

Our Key Messages RESOURCES DEMAND STANDARDS We strongly believe that Europe has a viable resource base DEMAND The demand for raw materials is continuously increasing STANDARDS Europe should maintain an enabling environment that provides for achievement of the highest standards in the industry

Key challenges and opportunities Meeting “base-load” demand for minerals Remaining relevant in a global economy – “having something to sell to the world” Increased competition for resources and therefore increased supply risks Further de-coupling of economic growth from resource and energy use (Producing more value with less material)

Meeting “base-load” demand Upgrade and maintenance of infrastructure (health, transport, energy,…) Accommodating increased urbanisation Deploying new sustainable technologies Sharing equitably the benefits of new technologies Re-balancing lifestyles and employment across regions

level playing field in access to resource in third countries EU Raw Materials Initiative Foster sustainable supply from European sources Ensure level playing field in access to resource in third countries Boost resource efficiency and recycling Integrated strategy Three pillars launched Nov. 2008 Underpinned by Research Horizon 2020 - National Minerals Policies - Land-use Planning Policies - Clear and understandable authorisation processes 10

National Minerals Policies Ensure that mineral resources are provided to society: In Economically viable ways Harmonised with other national policies and Based on sustainable development principles which includes : Economic Environmental Social Requirements

Common Approaches to National Minerals Policies A horizontal approach (several ministries) Broad consultation (round-tables) Sharing best practices (EU, national, industry) Addressing key themes: Maximising sustainable development Accelerating permitting processes Future minerals availability (skills & infrastructure) Integration with land-use planning policies Geological research & innovation

Mineral Supply is directly related to Exploration effort Average yearly investments forecast in non-ferrous mineral exploration by regions ($ value on 31/12/07, corrected by the change in the CPI index). Source: Metals Economic Group, Wikipedia, US Department of Labor Statistics. yr2011 Source: P. Christmann 2009 13

Better Exploration... Use higher resolution geophysics to find more ore deposits in an established mining area; uses existing infrastructure and workforce

Better modelling... Geological Surveys conducts research in advanced 3D-GIS modelling in established mining areas Research integrates numerous data-sets that can then be queried to reveal prospective targets

Skellefte-Pyhäsalmi (Cu, Zn, Au, Ni, Co) AND KEY METALLOGENIC PROVINCES Lapland (Fe) Skellefte-Pyhäsalmi (Cu, Zn, Au, Ni, Co) Bergslagen (Fe, Zn) Irish (Zn) Foresudetic basin (Cu, Co, Pt, Re) Carpathians (Pb, Zn, Au) Balkans (Cu, Au, Sn) Iberian Pyrite Belt (Cu, Zn, Sn) Greece (Al, Ni) mardi 15 janvier 2019 Service Ressources Minérales > 16 16

The example of Finland Kylylahti Cu-Co Talvivaara Ni Suurikuusikko Au Kevitsa Ni Suhanko PGE Kolari Fe Laiva Au Pampalo Au Kylylahti Cu-Co

Fraser Institute Ranking 2011: Attractiveness for Investment

Better Mining... Paste backfill, to reduce surface footprint Extract more product for given mine footprint Extract more ore per mine Underground hybrid engines, for better ventilation Rock mechanics, to allow safer deep mining

The example of magnesite BUWAL = Swiss Life-Cycle Impact Assessment Method

Modern mining explained Resources: All ICMM publications are available at www.icmm.com To receive notifications of all new ICMM publications, subscribe to their mailing list by emailing info@icmm.com www.icmm.com

Better Mineral Processing... More Recovery with reduced inputs Pre-concentration to allow ore sorting and waste disposal underground Flotation techniques to allow good recoveries from coarser particles Reduced milling energy More capture of by-product minor metals and minerals More vertical integration: mine-mill-hydrometallurgical plant

The example of Copper Source: BHP-Billiton (2011) using US Geological Survey (1900-83) and Brook Hunt (1984 onwards) data

The Future looks Bright Euromines 12, Avenue de Broqueville B-1150 Brussels Belgium Tel.: +32 2 775 63 31 Fax: +32 2 770 63 03 E-mail: assistant@euromines.be www.euromines.org www.euromines.org