Tenke – Adding Value For StakeholdersMay 2012

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Project LocationProject Location

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HistoryHistory

4 April, 1919 FungurumeExploration Camp

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Patience and PerseverancePatience and Perseverance

1917 Union Miniere first explores area

1996 Lundin acquires majority interest

2000 FCX (Phelps Dodge) acquires option on Tenke

2005 FCX exercises option to acquire 70% interestp q

2007 Phase 1 construction start : 115,000 tpa Cu, 8,000 tpa Co

2009 First copper in March

2010 Debottleneck Expansion: 132 000 tpa Cu 11 000 tpa Co 2010 Debottleneck Expansion: 132,000 tpa Cu, 11,000 tpa Co

2011 Phase 2 Expansion starts: 195,000 tpa Cu, 15,000 tpa Co

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Ownership and FundingOwnership and Funding

FCX(Delaware)FCX

(Delaware)Lundin Mining Corp.

(Canada)Lundin Mining Corp.

(Canada)(Delaware)(Delaware) (Canada)(Canada)

70%* 30%*

TF Holdings Ltd.(Bermuda)

TF Holdings Ltd.(Bermuda)

Gécamines(DRC)

Gécamines(DRC)

80% 20% Effective Ownership**

FCX 56%Tenke Fungurume Mining (SARL)

(DRC)Tenke Fungurume Mining (SARL)

(DRC)

FCX 56%

Lundin 24%

Gécamines 20%

* Capital Funding Obligation** Effective Ownership per revised 2010 TFM Agreements

Concession LayoutConcession Layout

40 years of oxides from yjust these 3 deposits

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Value Creation Starts - December 20077

Phase 1 - December 20088

Phase 2 Expansion - Dec 2011

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Kwatebala Prestripping 2008Kwatebala Prestripping 200810

Kwatebala Pit – Dec 2011

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Advanced Technology in the DRC

Mining

Continuous Miners – first application in base metals ppworld wide

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Advanced Technology in the DRC

ProcessPurchased

Sulphur

Open PitMine

(mined &Sulphuric

Acid

Process

Ore

p

Acid

(mined &stockpiled)

AcidPlant

Electrowinning(EW)

Grinding(SAG Mill)

Leaching& CCD

Leaching& CCD

SolventExtraction

SolventExtraction

Ground

Slurry

PLS Rich

Electrolyte& CC& CC(SX)(SX)

y

Tailings toStorage Facility Copper

CathodeCobalt

Cobalt Plant

Cobalt>70% recovery >90% recovery

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Production 2009-2012eCopper Cobalt

(kMT)

120 127 132

( )

70

9 2 11.3 11.3 2.6

9.2

2009 2010 2011 2012E

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Tenke Expansion PotentialPhase 2: well advanced• Oxide agitated leach• Oxide, agitated leach

expansion from 130 to 195 ktpa Cu cathode, 15 ktpa Coktpa Cu cathode, 15 ktpa Co

• $US 850 million investment• Completion Q1 2013Completion Q1 2013

Future Possible ExpansionsFuture Possible Expansions • Potential Heap Leach of low

grade oregrade ore• Multi-phased mixed & Sulfide

expansion plans: objective to reach approx. 500,000 tpa Cu

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LogisticsLogistics

DRC

Ndola (Zambia) 290 milesJohannesburg (RSA) 1,600 miles

161,000 km1,000 km

Dar es Salaam (Tanzania) 1,555 milesWalvis Bay (Namibia) 1,845 milesRichards Bay (RSA) 1,875 milesDurban (RSA) 1,975 miles

Infrastructure Investment

>$175 m in power infrastructure>$175 m in power infrastructure

>$10 m in upgrades to the National and local roads

“Since 2006, TFM has funded over $190 million in infrastructure

j t ”projects”

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Employment• Phase 1: >8000 construction work force• Phase 2: > 1 200 construction work force• Phase 2: > 1,200 construction work force• Operations: 2,800 full time employees and 3,900 contractors• 98% of the operational employees are DRC citizens • Collective bargaining:100 % of full-time employees unionizedg g p y

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Environmental Commitment• Environmental Management

Procedures and training• Procedures and training• Monitoring – air, water, flora and noise• Mitigation and corrective action• Inspections

• Biodiversity ConservationFlora diversity surveys• Flora diversity surveys

• Seedbank collections• Ecosystem reconstruction• Reclamation tests

• Environment/Social Impact AssessmentsI t ti l St d d• International Standards

• Stakeholder Engagement• Sustainable Development• Resettlement Action Plans

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Social Commitment• Healthy Programs – Clinics, HIV, and

malarial abatement:malarial abatement:• 66% reduction for workforce malaria• 47% reduction for local population• 47% reduction for local population

• Agriculture programs: • Productivity greatly improved• Productivity greatly improved

• Fresh water supply:• Incidents of cholera eliminated• Incidents of cholera eliminated

• Education and Training:• 2011 > 4000 employees trained• 2011 - > 4000 employees trained• 6 schools directly supported

>2000 t d t ll d • >2000 students now enrolled

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Economic Contributions to the DRC

In 2011: $185 million in taxes and related distributions to the DRC DRC Since 2006, these payments have totalled approximately $516 million, including:• $127 million in payroll tax and related social obligations• $127 million in payroll tax and related social obligations• $147 million in customs and related taxes• $214 million in royalties and other tax obligations$214 million in royalties and other tax obligations• $28 million in work permits, visas and related payments

Including social spending, contributions > $690 million to the DRC economy

“TFM’s cumulative investment exceeds $2 billion: the largest private investment in the country’s history.”p ate est e t t e cou t y s sto y

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Tenke Fungurume Adding Value For Stakeholdersg g

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