1. Session 3: Energy & Extractives A Presentation by Hon. Samuel Russ Deputy Minister of Lands, Mines and Energy Republic of Liberia

2.  Energy  Mining  Oil & Gas

3.  Concession energy demand is 700MW but current supply less than 20MW creating huge investment opporunity  Huge returns to possible: Liberia has highest energy tariffs in world (56 cents per kwh)  Hydropower to access huge potential of Liberia’s waterways: ◦ internal renewable water resources are second in West Africa only to Guinea & Nigeria Mount Coffee hydro power generation - transmission & distribution of power lines due on stream in December 2016 (up to 70 MW)  Many Investment Opportunities available in: ◦ Biofuels from oil palm and rubber wood – 500 MW Potential ◦ Hydro plants – 1,000 MW Potential on St. Paul, St. John & Lofa rivers ◦ Solar ◦ HFO ◦ Construction of National Power Grid  Clients: 4 million people many of whom rely on generators plus numerous concessions in agriculture, mining, ports  Central grid due to be connected to West Africa Power Pool in 2018

4. - Basic services restored in Monrovia -30,000 connections -22 MW installed -Most electricity self-generated Micro hydro plant constructed – to support 3000+ rural connections Cross-border purchase of electricity from Cote d’Ivoire, expected to support 20,000+ connections in areas along border

5. Generation 3 X Heavy Fuel Oil (HFO) Plants under construction – 38 MW capacity (~$60 M) Mount Coffee Hydro Plant (80 MW) – Rehabilitation underway( ~$300M) T&D 7 distinct transmission line projects 4 distribution projects (~200,000 connections) CLSG Line: $500 M T&D projects in Liberia: ~$250M $1.2 bn worth of projects to be implemented in next 5 years, with funding secured. Generation (Renewable) $50 M available for development of renewable energy, especially small- scale hydro and solar (in preparation).

6. WOLOGISI- 1BT @36%Fe WESTERN CLUSTER 563Mt @53%fe CHINA UNION – 1.05 BT @36%fe GOE-FANTRO 64MT @59%Fe PUTU -4.5 BT @39%Fe KITOMA 64MT @61%fe ARCELOR MITTAL 471Mt@67%fe TAWANA 62Mt @64%fe BAO CHICO 3 Age Provinces in Liberia Liberian (Archeaen-Meta Volcanic) Eburean Formations Pan-African (youngest) Iron formation occurs across all age provinces Iron formation commonly associated with composite rock units; schist, mafic, felsic & ultramafic units All major deposits occur within Liberian & Eburnean provinces except Goe-Fantro which occurs within Pan-African

7. Gold occurrences are widespread Gold production is dominated by ASM activities One mechanized gold mine: Aureus Mining: 1.5Moz @3.8g/t MNG Gold: 750k ounces @1- 3g/t Hummingbird: Tuzon 2.47 Moz @1.4 g/t Dugbe 1.8 Moz @ 1.3g/t Aureus Mining MNG Gold Hummingbird

8. Copper, Lead, Barite, Bauxite, Kyanite, Phosphate, Platinum, Manganese, Uranium, Chromite, Corundum, Nickle etc 3 distinct kimberlite diamond clusters have been identified in Western Liberia: Kumgbor cluster ~ 135Ma Weasua cluster ~ 800Ma Mano Godua cluster ~ 135Ma

9.  Drafting of New Minerals & Mining Law & Regulations  Separate Mining Law and Regulations to govern Artisanal & Small-Scale Miners  Formalization of Artisanal & Small-Scale miners into cooperatives

11.  2D seismic data (PSTM/PSDM):24,773 km  2D gravity/magnetic data: 24,508km  2D angle stacks: 24,774km  3D seismic data (PSTM/PSDM):18,345km 2  3D angle stacks: 18,345km 2  Updated Interpretation report (2010)  Well Data from nine recently drilled wells

12.  Construction of refinery/refineries ◦ Refine petroleum crude oil ◦ Process & purify raw natural gas  Management of Refineries  Marketing & Distribution of crude oil products  Storage & Transportation of crude oil & natural gas

13.  Reform program almost complete  Establishes investor friendly climate  Reform to measure up to international standards began in 2011  Considered national views & international best practices  Redrafted new E & P law ◦ Creates stable, enhanced legal climate:  Maintains stable, favorable tax regime  Clear, predictable rules for licensing, contracts, environmental & social provisions  Independent regulator (Petroleum Directorate)  Enhanced transparency  Developed new model production sharing contract

14. Thank you! Hon. Samuel Russ sgargar2002@yahoo.com NIC Focal Person for Investment Inquiries: Paye Gbelayan: payesgbelayan@yahoo.com +231 886897995payesgbelayan@yahoo.com