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A Successful Upstream Integration in the Heavy

Mineral Sands Industry JM FOURCADE

CEO, TIZIR LIMITED

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Agenda

1. Creating a Joint Venture Between MDL, Australia and Eramet, France

2. Developing a Huge TiO2 and Zr Mining Project in Senegal

3. Starting up a New Global Actor in the Heavy Mineral Sands Industry

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ERAMET SA

• Mining and Metallurgy Group

• 15000 People, 22 Countries

• Nickel, Manganese, Super Alloys

2008 Tinfos Acquisition (incl. TTI)

2009 – 2010 Strategic Analysis

� TTI Upstream Integration Project

History

Creating a Joint Venture Between MDL and Eramet

MINERAL DEPOSITS LTD

• Extensive Experience in H M S

• Successful Gold Project in Senegal

Concession of Grand Cote in 2007

DFS of the GCO Project 2010

� Downstream Integration & Partnership

CREATION OF TIZIR LIMITED OCTOBER 2011

JV 50/50

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Creating a Joint Venture Between MDL and Eramet

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TiZir Titanium and Iron (TTI)

Tyssedal Ilmenite Upgrading Plant

Creating a Joint Venture Between MDL and Eramet

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Creating a Joint Venture Between MDL and Eramet

Smelts ilmenite to produce a titanium-rich slag and pig iron co-product

Ilmenite Electric

Furnace

Titanium

Slag

Pigment

Producers

(Sulphate process)

High Purity

Pig IronFoundries

~345ktpa mostly

sourced~200ktpa

containing ~80% TiO2

~110ktpa

Input Pre-reduction Smelting Outputs Customers

Rotary

Kiln

Tyssedal – What does it do?

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Developing a Huge TiO2 and Zr Mining Project in Senegal

Senegal

Ownership:

TiZir 90%, Senegal Govt. 10%

Concession:

25 years extendable

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Simple

Ore Body

No overburden

Minor

vegetation

Free flowing

sands

Minimal slimes

Uniform grain

size

Water

Shallow water

table +

Deep aquifer

Allows dredge

mining

Assemblage

10.7% zircon

74.5% ilmenite

2.5% rutile

3.2% leucoxene

90.9% VHM

Quality

Project

85ktpa zircon +

575ktpa

ilmenite

Long mine life

Scale

100km x 4 km

ore body

7,000 t/hr

dredge

36MW power

station

Own railway and

port facilities

Grande Côte – What makes it a quality project?

Developing a Huge TiO2 and Zr Mining Project in Senegal

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Developing a Huge TiO2 and Zr Mining Project in Senegal

Process Flow Sheet

Dredge

Wet Concentration Plant (WCP) Spirals

Stockpile of Heavy Mineral Concentrate

(HMC)

Wet High-Intensity Magnetic Separation

(WHIMS) Plant

Non- Magnetic Tailings Wet Tables

MSP Dry Mill

Zircon Rutile Leucoxene Products

Ilmenite Dry

Mill

Tailings

Magnetic

Stockpiles

Tailings

Tailings

Mining

Processing

Mineral Separation Plant (HMC to MSP)Truck

Tailings

Non-Magnetic Zircon/Rutile/Leucoxene/Kyanite/Quartz

Ilmenite

NB – All Tailings return to Dredge Pond

55 Mt/ y

1 Mt / y

7000 t/h

1.7 % HM

100 t/ h

30 t / h

140 t/h

55 Mt/y

7000 t/h

1.7% HM

1 M t/y

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Developing a Huge TiO2 and Zr Mining Project in Senegal

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TiZir Products

Avg annual

productionProduction description / target markets

Zircon 85 Kt

• Premium quality – low in key impurities

• Suitable for full spectrum of zircon consumers

• Container shipments provides logistics benefits for customers

Ilmenite

400 Kt

54% TiO2

• Feedstock for Tyssedal plant or market

175 Kt

59% TiO2

• Feedstock for chloride pigment production

Rutile 6 Kt • Premium grade and fine grain size – ideal for welding sector

Leucoxene 10 Kt • Suitable for welding sector

Titanium slag 200 Kt • Premium quality slag suitable for Sulphate process

Pig Iron 110 Kt • Premium quality for high quality iron castings

Developing a Huge TiO2 and Zr Mining Project in Senegal

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Safety is our Culture

• During the Construction Phase over 11 million hours reached with only 3 lost time

injuries (FR = 0.27)

• 400,000 hours of safety training delivered

• Peak construction workforce of 2,400, inclusive of 240 expats on site

• Expected long term workforce of 660 total incl. 65 expats initially

• Emergency Response Team & Clinic operational from start of construction

• Fire, injury & critical emergency drills carried out weekly

• Transition to Operations

• Zero Harm Policy

• Adaption of the philosophy

Developing a Huge TiO2 and Zr Mining Project in Senegal

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Community & Social Responsibility

Creating employment and investing in

education, health & infrastructure

• Substantial positive impact on the local

economy

• Local kindergarten built and supported

• Successful relationship with local village

elders

• Land compensation rates inline with World

Bank standards

• Assistance with infrastructure ongoing –

water bores, water towers, roads, etc

• Refurbishment of local schools program

underway

Developing a Huge TiO2 and Zr Mining Project in Senegal

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Sound Environmental Management

Operating to world-class

environmental standards

• Potential risk identification

• Develop & Implement an environment

management system based on ISO 14001.

Follow IFS standards and Equator Principles

• Rehabilitation plan proven, tested &

approved (Re-vegetation to use native plant

species – seed collection started)

• Monitoring program in place

• Partnerships with local service providers

(farmers, waste management)

Developing a Huge TiO2 and Zr Mining Project in Senegal

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Developing a Huge TiO2 and Zr Mining Project in Senegal

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Starting up a New Global Actor in the Heavy Mineral Sands Industry

• From a • SP TiO2 Feedstocks

• HP Pig Iron Player, to a

• CP + SP TiO2 Feedstocks

• HP Pig Iron

• High TiO2 products

• Zr for ceramics, refractory

+ other applications

Player

• Within very versatile and cyclical markets, our size (circa 8% of the world

MS) and our process allow us the flexibility and the ability to adapt to

the changing conditions.

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Starting up a New Global Actor in the Heavy Mineral Sands Industry

TTI optionality creates market flexibility

Slag

39%

Ilmenite

61%

Ilmenite

18%

Rutile

18%

Syn Rutile

+UGS

18%

Slag

46%Pigment

production

feedstock source

(Outside China)