Presenter: Michal Frydrych Chief Executive Officer Date:13 May 2011 Presenter: Shayne Flanagan – CEO Freight and Logistics Council – 27 June 2013

Esperance Region – Exports

Growth in use of containers Predominately Nickel Concentrate (Xstrata Nickel and Western Areas) and Nickel Hydroxide (FQM)

Repositioning the Port Financial analysis completed and implemented during 2012: –Financial systems and structures –Compliance and reporting –Financial modelling specific to activities and lines of business Assessment of infrastructure – future capex and opex funding requirements over the next 5 completed. Assessment of commercial and lease arrangements – pricing and contractual obligations – completed.

Asset Management Implementation of key infrastructure upgrades being / to be undertaken at the Port to ensure capacity for all Port Users including: –Rail Maintenance (within the Port) –Maintenance Dredging –Hughes Road Upgrade –Development of additional container hardstand area –Progressive upgrade of maritime assets underway

Port Planning Outline of current port transport planning process: – Traffic Management process in relation to the Esperance Port Access Corridor –Maintaining access Berths 1 and 2 –Development of container handling capacity at Berth 2 –Multi User Iron Ore Facility (MUIOF)

Multi User Iron Ore Facility In January 2012, the WA Government announced: Esperance Port is the preferred gateway for the Yilgarn Iron Ore Province. Additional capacity needs to be privately funded and provide for multiple users. A proponent will be sought through a competitive tender process. Level of expansion will be contingent on verifiable bankable demand.

Multi User Iron Ore Facility A Market Sounding process was undertaken during 2012 and aimed to identify the extent pf private sector interest in developing the additional capacity. More then 50 companies participated: –Mining companies –Potential financiers –Port facilities managers –Infrastructure providers and –Major engineering companies. Prospective equity and debt investors shared their views about the best way forward in developing and operating the planned MUIOF facility.

Multi User Iron Ore Facility Bankable demand was shown to be between 10 and 20 million tonnes per annum. Responses were positive in terms of financiers indicating a clear appetite to invest. Based on the Market Sounding findings a business case was prepared for consideration by the Minister for Transport during January Approval was given to proceed to procurement late in January 2013.

Multi User Iron Ore Facility Invitations for Registrations of Interest and Prequalification (ROIP) were called in February – closing on the 15 March Over 30 responses were received. From these responses a short list of proponents were selected: –Qube Bulk Pty Ltd and Brookfield Infrastructure (Australia) Pty Ltd; –Yilgarn Esperance Solution (YES) consortium. YES consortium comprises McConnell Dowell Constructors (Aust) Pty Ltd, Asciano and Marubeni Corporation Ltd. These will proceed to a formal Request for Proposal (RFP) from which a preferred proponent will be selected. It is expected that the RFP will be released in July 2013.

Multi User Iron Ore Facility The RFP process proposed has been designed having regard to the following considerations: –The complexity of the Project and the fact that, while at this stage there appears to be a market for the MUIOF, the market will ultimately be determined by private investors who will rely on secure take or pay agreements to underwrite their investment. –Designing a process which does not burden Respondents with excessive RFP response costs due to the uncertainties around demand, and thereby deterring Respondents who may otherwise be very credible (i.e. avoiding the “it’s all too hard” argument from Shortlisted Respondents). –Designing a process which allows the Port to put forward its preferred contractual and commercial positions and ensuring sufficient competitive tension to maintain these positions. –Designing a process that, having regard to the above, still provides sufficient robustness to meet probity requirements and allows EPSL to select a Preferred Proponent which it believes is capable of delivering the Project Objectives. –Designing a process with sufficient flexibility to incorporate contractual or other mechanisms to ensure the Preferred Proponent progresses the construction of the MUIOF.

Multi User Iron Ore Facility Operating Lease & Licence Third Party Access Regime Side Deeds Term Lease / Site Access Design / Approvals Defects Guarantees Stakeholder interface Environmental / Port obligations Risk allocation / Step in Term Lease / Site Access Maintenance Port charges / Services Right to rail siding Risk allocation / Step in Environmental / Port obligations / Licences Operations strategy Application for capacity Pricing & Charges Capacity management Dispute Resolution Handling Services Review and Amendment Contract / Subcontract Management Finance side deed Other side deeds as required Construction side deed … Construction Works Lease & Licence Implementation Agreement Performance obligations / Work plan / CPs / Bonding Governs process immediately after selection of Preferred Proponent Default / termination / Damages Management & Reporting 12

Multi User Iron Ore Facility A reference design of the proposed facility has also been developed as part of the RFP documentation – however proponents will be provided with the opportunity to submit their own designs. The aim is to deliver near term capacity which will provide a least cost pathway to market. It is planned to complete evaluation of proposals and selection of the preferred proponent in early 2014, with contractual and financial close achieved in early Q