Jochen Greinacher Deilmann-Haniel, Dortmund, Germany

George Flumerfelt J.S. Redpath, North Bay, Canada

The role of a mining contractor in the global mining industry

PDAC, Toronto, March 7, 2012 -0-

1. Mining contractor • •

Specialised service and construction contractor Predominatly working for (private) owners on mines

This presentation deals with u/g mining contractors only

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2.1 Typical services of a (full service) mining contractor Investment / access projects (greenfield / brownfield) • Shaft construction and equipping • Declines, ramps • u/g infrastructure rooms • u/g construction and assembly work • Preproduction development Operating Mines • Lateral development • u/g Declines, ramps • Raiseboring • u/g construction work • Shaft /tunnel rehabilitation Contract mining -2-

2.2. Special services of a (full service) mining contractor Design and engineering • Concept / prefeasibility / bankable feasibility studies • Shaft design • Tunnel design • Engineering • Schedules and budgets • (usually) not a stand alone business line • Early access to future projects • Cooperation to the benefit of both owner and contractor EPC – Engineering, Procurement, Construction • In some parts of the world

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3. Structure of the mining contracting industry • Broad range of sizes of mining contractors • 5 to 5000+ employees • annual turnover 5 to 100 m $, major players up to 1 billion US$ • Europe 15 to 20, Australia 50 +, North America 30+ contractors • Most of the companies privately owned, only a few major companies listed at the stock exchange

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4. Key factors of a successful mining contractor • • • • •

Highly developed safety culture and systems Technical expertise Specialised equipment Experience Organisation and systems to manage and control projects

• PEOPLE • • • •

Skilled, safety conscious, educated, experienced „vagabound“ attitude War for talent – Owners, engineers and contractors in competition Compensation package adjustment

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5. Major Global Players • The Redpath Group, Canada • Operating companies on 5 continents • Murray & Roberts Cementation, South Africa

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6. The Redpath Group

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Corporate Structure Deilmann-Haniel International Germany

J.S. Redpath Holdings Inc. G.B. Flumerfelt, CEO

Germany Managing Director J.A. Greinacher

Revenue Employees

Americas President G.B. Flumerfelt

South Africa Managing Director J. Erasmus

Australia Managing Director R. Nichols

700 m $/a 5,600 +

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Global Reach

Headquarters North Bay, Ontario, Canada

Regional Offices

• • •

Rouyn-Noranda, Canada Sudbury, Canada Timmins, Canada

• • • •

Reno, United States Santiago, Chile Dortmund, Germany Johannesburg, South Africa

• • • •

Ulaanbaatar, Mongolia Jakarta, Indonesia Brisbane, Australia Perth, Australia -9-

17 Countries of Current Projects

Russia Canada United States

Germany

Mongolia

Portugal Bulgaria

Kyrgyzstan

Indonesia Ecuador

PNG Botswana

Chile

Uruguay

South Africa

Australia

Argentina

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7. Projects Uralkali Freeze Shafts Invanhoe Oyu Tolgoi Shafts

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Uralkali Ust-Jaiva Project, Russia • Construction of a new Potash mine (11 m tpy ROM) • Two freeze shafts 8 m ø, 430 and 530 m deep • Lump sum contract - Minimal interfaces requested by client - 12 -

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• 5.5 years construction time, starting March 2012 • 160 people on site • Local subcontractors

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• Involvement of the mining contractor (DH) from the very beginning, DH performed Project Design including shaft center hole drilling and geotechnical testing • 5 years marketing prior to contract award - 15 -

Ivanhoe/Rio Tinto Oyu Tolgoy Mine, Mongolia • • • •

World class copper mine under construction In the middle of the Gobi desert Redpath was involved from the very early days since 2004 Logistics one of the major challenges - 16 -

Shaft #1

• •

#1 shaft completed, #2 shaft ø10 m currently under construction Additional shafts to be sunk shortly

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Incentive based cost reimbursable contract (IBCR)

Shaft #2

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Shaft #2

Oyu Tolgoy Mine, Mongolia

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Currently more than 14,000 people working on site

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Redpath has more than 650 people on site, 150 of which are expats

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8. Conclusion • Mining Contractors play an important role in the global mining industry • Demand for all services, in particular shaft services, remains strong, both in established mining areas and in „new“ mining countries • Contractors follow clients and have to adjust to clients of different culture and to local conditions • War for talent major challenge now and in the future Mining construction is and remains an exciting business

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Thank you for your attention and GLÜCKAUF

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