Vale Mission 2012Belo Horizonte Brazil

Australian Technology: Inspiring Global Mining

Innovation

Robert TrzebskiCEO – Austmine Ltd

Unprecedented demand driven by the needs of emerging economies

Mature ore bodies and fewer tier one surface deposits being discovered

Inevitable migration from surface to underground operations

Lower grades with longer haul distances combined with massive volume demand

Next generation ore bodies bringing inherently complex mineralisation.

Stakeholders demanding less environmental impact from our operations

Carbon constrained future framed by the context of Global warming

Structurally higher energy prices and possibly real energy constraints

Future being different from the past in some fundamental, unavoidable ways.

Challenges of future mining

• Mining industry currently represent for approx. 8% of GDP• Minerals exports account for $138 billion – more than 50%

of Australia’s exports• Annual investments over $50 billion – $4 billion in R&D• Directly employs some 200,000 Australians (2% of total

national employment)• Total government revenue payments (taxes and royalties)

of US$4 billion• Global supplier – 2nd largest minerals sector by value of

production (after USA)• Commodity exports will reach $480 bilion in 2030 from a

base of $210 billion in 2010.

Australia’s mining industry

Source: AFR 4 March 2012

+758 (3.8% pa)

Specialist Mining Services Companies lisited in ASX

Category Annual Revenue Example companiesMining contractors $16.5 bn Leighton, Transfield Services, Downer, MacmahonConstruction $13.7 bn Leighton, Mondelphous, Watpac, CloughConsumables $13.2 bn Orica, Wes Trac, Incitec, OneSteelEngineering $8.3 bn Worley Parsons, Coffey, Ausenco, CardnoLogistic Suppliers $8.1 bn QR National, Toll, Asciano, K&SRail Equipment & infra $5.0 bn Downer, UGL, Bradken, EngencoLabour Hire $4.3 bn Workpac, Skilled Group, Programmed Group, HumanisElectrical Contractors $2.8 bn Hastie, Norfolk, Southern Cross ElectricalUtilities $2.6 bn Duet Group, APA, EnvestraDrillers $2.1 bn Boart Longyear, Ausdrill, AJ Lucas, SwickEquipment Hire $2.1 bn Coates Hire, Emeco, Boom LogisticsSpecialist Equipment $1.3 bn Boart Longyear, Ludowici, ImdexFabricators $1.1 bn RCR, AusGroup, Austin EngineeringTesting Services $1.1 bn Campbell BrothersRemote Housing $938 m Decmil, Fleetwood, NomadMining Software $878 m Runge, Data 3, ISS GroupRecycling, Waste Management $476 m CMA Corp, Tox Free, Electrometals TechnologyFinancial Services $468 m Wilson HTM, Bell FinancialOther $122 m Greencap, Aspermont, Environment Group, Clean TeQ

• Exports of technology, equipment and services represent 3.3% of total goods and services exports

• Directly employs some 500,000 Australians globally - over 5% of total national employment

• Global supplier – 2nd largest exporter of mining products and services (after USA)

• Leader in mining innovation in terms of funding of R & D - estimated $4 billion per year

Australia’s mining technology sector

The demand for resources continues to expand in China, India, Russia, the FSU, Brazil and smaller emerging economies

This is driving the demand for Mining Technologies like never before, particularly in the areas of exploration, mine development tools, automation and communication, and advanced mineral processing

ALL economic predications continue to emphasise the probability of an ongoing Supercycle in the demand for resources

We believe the coming years will see the highest ever

demand for resources and therefore technologies to find,

mine and process these commodities and convey them to

market safely with the highest level of productivity.

Out of Crisis the Emergence of the“Technology Age of Mining”

Global Mining Activity Index

“Financial system repair 2009”

• Massive government stimulus

• Growth returns

• Emerging nations power ahead

• Confidence returns

• “Shell shock” hangover

2009’03 to ‘07

“Boom Age of Mining” 2004 to 2007

• High commodity prices

• Easy access to capital

• High Labour costs/low availability

• More volume = more equipment

• Exploit known deposits, marginal new ground.Historical

High

“Technology Age of Mining”

• Unprecedented volume challenge

• Combat declining grades

• Productivity focus/low cost

• Autonomy & Smart Systems

• Safety via technology

• Less people = more technology

+2010

Time (Year)

“Global financial melt down ’07 to ‘09”

• Banker driven risk taking stalls system

• Distorted balance sheets uncovered

• Housing market distortions spread panic

• Monopoly money mentality grinds to a halt

’07 to ‘08

Post crashLow

• The Mining Technologies & Services (MTS) sector has had an excellent period of growth since the Global Financial Crisis

• Exports of Australian MTS have accelerated and we believe that the total value of exports is in excess of $15 billion

• Development of mining opportunities continues to grow across the globe, but particularly in the previously ignored geographies in more remote locations

The Outlook for mining technologies…

1. Orica ($4.74 billion)

2. Downer ($1.95 billion)

3. Boart Longyear ($1.48 billion)

4. WesTrac ($1.18 billion)

5. Monadelphous ($830 million)

6. UGL ($773 million)

7. Ausdrill ($632.9 million)

8. NRW ($610 million)

9. Bradken ($578 million)

10. WorleyParsons ($562.5 million)

11. Ausenco ($513.4 million)

12. Sinclair Knight Merz ($500 million)

13. Barminco ($485.8 million) .

…

47. Imdex ($121 million)

48. Lycopodium ($120.3 million)

49. Australian Contract Mining ($110 million)

50. Boom Logistics ($105.3 million)

Top 50 ASX-listed Mining Technology & Services Companies

Minimum export revenue in 2010: $6.4 billion

Australia’s MTS sector consist of over 1,200 companies ; approx. 500 are exporters

Total exports of Australian mining products and services is in excess of $8 billion

Source: HighGrade.net

Who we are…Austmine Ltd

oAustralian Export Association of Mining Technology & Services

oEstablished in 1989

oSome 150 member companies across Australia

oExporting over $6 billion to over 72 countries

oWorld’s leaders in mining innovation

oChampion productivity, cost-efficiency, safety and environment

oCost-effective marketing support to the global mining network

oInternationally recognised brand

What we do…

oRepresent Australia’s METS export sector internationally

oPromote members’ capability globally

oInfluence governments and relevant stakeholders in Australia and beyond

oNetworking platform for the mining community

oDatabase of new and information on projects, companies, markets

oTrade missions to overseas exhibitions and mine site visits

oPublish the annual Austmine Directory

oBiennial Austmine Conference & Exhibition

Our Members: a snapshotSnapshot of member companies

Alliance Partners

Outlook 2012 and beyond…

•Austmine Networking Series 2012 in Brisbane, Melbourne, Wollongong, Newcastle, Perth… for more info visit www.austmine.com.au

•Missions to Brazil (16-20 April), Mining World Russia (23-27 April), South Africa / Mozambique (May/June), Mining World Central Russia –

Kazakhstan (September), MinExpo 2012 – USA (September), West Africa (October) and IMME India (December)

•13th Edition of Austmine Directory, April 2012

•Austmine Seminar – MCA Minerals Week, Canberra 30 May

•2012 Austmine Annual Dinner – Perth 20 June

•Austmine 2013 Conference & Exhibition in Perth – May 2013

www.austmine.com.au

Smart Mining… Made in Australia

www.austmine.com.au

THANK YOU!