Slide 1: Las Bambas
LAS BAMBAS Suresh Vadnagra EGM Operations – Americas March 2018 1
Slide 2: Important Information
Important Information The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (internal or external to your organisation/firm), or published, in whole or in part,
Slide 3: MMG: growth ambitions
MMG: growth ambitions • An international copper and zinc producer US$ MILLION with a significant growth focus • Headquartered in Melbourne, Australia. • Listed on the Hong Kong Stock Exchange and the Australian Securities Exchange. • Major shareholder: China Minmetals Corporation, a Fortune 500 comp
Slide 4: MMG Limited
MMG Limited A growing international copper and zinc portfolio – largest investment in Peru. 2018 production guidance: 70,000 to 80,000 tonnes of copper cathode. 2018 C1 guidance: US$1.60 – US$1.75/lb 2018 production 2018 production guidance: guidance: 170,000 410,000 to 430,000 tonnes of tonnes of z
Slide 5: Peru: delivering growth
Peru: delivering growth Why Peru? US$ MILLION • High geological potential • Qualified personnel • Transparent fiscal regime • Stable rules of the game (EIS, permits and taxes) • Asset security • Government committed to economic growth Our first experience in Latin America and Peru – now a strategic
Slide 6: Peru offers a favorable legal framework for foreign investment
Peru offers a favorable legal framework for foreign investment: • Non discriminatory treatment: foreign investors receive the same treatment as local investors. • Unrestrictive access to most economic sectors*. • Free transfer of capital. • Guarantee for Private Property. • Freedom to purchase stock
Slide 7: Delivering the world's largest Greenfield Copper Project
Delivering the world’s largest Greenfield Copper Project Las Bambas, Apurimac, Peru • Large – Expected to produce 2 million tonnes of copper in the first five years Road of operation. Railway • Long life - Ore reserves of 7.494 million tonnes of copper and mineral resources of 11.625 million tonnes
Slide 8: Las Bambas timeline
Las Bambas timeline 2004 2008 2009 2010 2011 2012 Xstrata Copper Completed Completed › Held public hearing for the › The government approved the › Engineered roads and acquired the right exploration of Feasibility Environmental Impact Study EIS after an extensive citizen main components for to explo
Slide 9: Industry leading ramp up
Industry leading ramp up Ramp up profiles of similar1 greenfield copper concentrators • Key to successful ramp up was getting the right leadership in place • MMG assembled experienced local team • Backed up by MMG’s world class technical expertise 2 • Supported by MMG’s Operational 3 4 Excellence pr
Slide 10: Ferrobamba pit
Ferrobamba pit • The mine moves more than 160 Mt of rock and ore per year. • 51.1 Mt of ore processed through crush, grind, float process plant. 10
Slide 11: Concentrator Plant
Concentrator Plant Conventional Grinding + Flotation Moly and Cu Filter Circuit 11
Slide 12: Transport
Transport • Transport in locked containers. • Bimodal transportation: 495km by truck to a transfer station located on the 99th km of Yanahuara district in Arequipa, and continues 238km by train up to Matarani port. 12
Slide 13: Matarani Port
Matarani Port Dock denominated Mooring F: • Train unload / transfer building exclusively for Las Bambas. • Concentrate warehouse with a capacity of 100,000 tonnes for LB. • A new dock capable of receiving 550,000 DWT Supramax bulk carriers. • A ship loader with a capacity of 2,000 t/h. 13
Slide 14: Social Context
Social Context • Apurimac, previously recognized as one of the least developed provinces in Peru • Apurimac population approximately 450,000 • ~16 communities around the site; 38 along the road to Pillones • Further 32 communities along the transport corridor • 3 regions, 6 provinces, 16 districts •
Slide 15: MLC Model: 3 principles
All agents are responsible for development: the MLC Model 3 principles: Multi-agent: gathers the largest number of agents in a region. Leveraged: each agent contributes resources (time, work, capital, land, others). Co-Responsible: each agent is clear about his/her role in the initiative and perform
Slide 16: The community scope: Resettlement process
The community scope: Resettlement process • Resettlement process involved 514 families (approximately 1,600 persons). • In-kind compensation included houses constructed in Nueva Fuerabamba plus public infrastructure including schools, hospitals and community facilities. • Livelihood restoration incl
Slide 17: Fuerabamba: then and now
Fuerabamba: then and now 17
Slide 18: Fuerabamba: then and now
Fuerabamba: then and now 18
Slide 19: Fuerabamba: then and now
Fuerabamba: then and now 19
Slide 20: Nueva Fuerabamba: Education and health
Nueva Fuerabamba: Education and health 20
Slide 21: The district scope: Social development
The district scope: Social development Direct investment of more than S /. 1,100 million soles before starting operations, in coordination with the communities and the National Government: • Improvement and construction of roads, schools, communal buildings, churches, health centers, nurseries and p
Slide 22: Provincial scope: Cotabambas and Grau Las Bambas Social Fund (FOSBAM)
Provincial scope: Cotabambas and Grau LAS BAMBAS SOCIAL FUND (FOSBAM) • The government allocated US $64.5 million to it once the International Bidding Process called by ProInversión was awarded. • Managed by a Board of Education Agriculture Directors: three district mayors, two provincial mayors and
Slide 23: The regional scope: Internal Indebtedness Mechanism for Works
The regional scope: Internal Indebtedness Mechanism for Works • Funding of social projects for US $160 million allocated by the national government to the Apurímac region • Support provided by Las Bambas to help implement this method and prepare the necessary technical studies. • Investments in sani
Slide 24: Social indicators in Apurimac have improved in recent years
Social indicators in Apurimac have improved in recent years Indicators 2007 2011 2015 Extreme poverty 30% 24% 8% Malnutrition of children under 5 years 44%1/ 39% 22% Reading Ability of 2nd grade children 8% 12% 36% Mathematics Skills of 2nd graders 7% 5% 18% Source: INEI, Minedu 1 / Data for the yea
Slide 25: Development Challenges: Managing social conflict
Development Challenges: Managing social conflict • Mining companies cannot resolve conflicts on their own. • Shared goals and interests in conflict management. • Government provides an institutional framework for constructive dialogue. • e.g. Vice Ministry of Territorial Governance. 25
Slide 26: Peru: Mining 'Destination of Choice'
Peru: Mining ‘Destination of Choice’ • ‘Can do’ attitude to big projects: US$ MILLION - Delivered world’s largest copper project this decade at Las Bambas. • Government partnership: - Strong working partnership with ‘whole of government’ support for operations. • Stable investment regime: - Fiscal,
Slide 27: Thank you
Thank you 27