Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — CLSA China Forum 2007
21 slides from Fortescue's conference presentation, May 15, 2007
Slide 1: Lodgement of Presentation - CLSA China Forum
Fortescue Metals Group Ltd Telephone: + 61 8 6218 8888 ACN: 002 594 872 Facsimile: +61 8 6278 8880 87 Adelaide Terrace East Perth Website: www.fmgi.com.au Western Australia 6004 PO Box 6915, East Perth, Western Australia 6892 15 May 2007 The Companies Officer Australian Stock Exchange Ltd Exchange P
Slide 2: Disclaimer
Shum Desktep cf Iron Ore Su ard for China THE NEW FORCE IN IRON ORE CLSA China Forum, Shanghai 14-416 May 2007 Fortescue Metals Group Ltd DISCLAIMER Important Notice The purpase of this presentation is to provide general information about Fortescue Metals Group Limited (“Fartescue*). i is not recomm
Slide 3: China Requires that Australia Recover Market Share
Fortescue Metals Group Ltd v THE NEW FORCE IN IRON ORE CLSA China Forum, Shanghai 14-416 May 2007 le China Requires that Australia Recover Market Share Chinese Imports by Source —Aust —Brazil India vow S Africa — Others or aD DD 22 4992 1993 1994 4995 1996 1997 1998 1999 2000 2004 2002 2003 2004 200
Slide 4: Iron Ore Market and why China needs the Pilbara
we lron Ore Market and why China needs the Pilbara 4 + Australia is the most competitive supplier fo Asia Australian Ore US$56.90 + Three companies globally set price and South African Ore USS65.20 dominate the seaborne market Brazilian Ore US$72.10 + Fortescue plans to be the 4" major seaborne indi
Slide 5: Unparalleled Assets - Significant Reserves & Resources
la Unparalleled Assets — Significant Reserves & Resources q ¥ + One of the largest bedrock hosted iron ore discoveries in Australia + Ore reserves of 1.053 Bt, Including proved ore reserves of 121 Mt, providing sufficient ore for approximately 20 year mine life at 45Mipa Proved 124 Mi Probable 932 M
Slide 6: Unparalleled Assets - Simple Mining Methods
la Unparalleled Assets — Simple Mining Methods 2 + Superior grade control techniques + Selective mining capability ~ Straight forward grade prediction from model and mapping ~ Textures and grades clearly visible after cutting E Latest Project Highlights + Project completion forecast well within allo
Slide 7: Unparalleled Port Assets
rE Unparalleled Port Assets Port Hedland, Western Australia’s iron ore coast Hn i Ee SONG Leena ae Critical Path Contract @ Looking seaward over BHP’s port
Slide 8: NAN
NAN Bi
Slide 9: Rail Corridor
Rail Corridor ie Rail earthworks on four separate construction fronts and all bridges underway
Slide 10: Permanent Camp - Cloud Break Mine
Permanent Camp — Cloud Break Mine Ore preparation facilities at Cloud Break + Mine buik earthworks for ore preparation facility, airport and access roads advanced + Caterpillar, Terex and Wirtgen selected as principal mine fleet suppliers
Slide 11: Straightforward Construction
la Straightforward Construction Construction Risk TODAY + Multipie sites facilitate paratiel EXTREME construction + Contract risk spread — no single Be contract >10% of total capex HoH . sua! Reiman + Ample power and gas supply gan ‘ t =— + Well proven technical construction risk / bee : typical Pil
Slide 12: Equipment - Mine
Equipment - Mine id Allow 17 days shut-down p.a. __ CRUSHING & SCREENING PLANT Capacity Time Hours per Hour Utilisation per Year {tonne) Efficiency Rate {348 days) 7,600 0.90 0.90 8352 xX 4 = 50 7 Mtpa UNIT CAPACITY: 50.7 Million Tonnes / TRAINLOADER-16000tph 200 cars train 220 cars train 240 cars t
Slide 13: Equipment - Rail Track
la Equipment — Rail Track CK DESIGN CAPACI /) AO Tonne Axle Load | Loading Capacity per Car 40 x 4 = 160 tonnes Tare Mass per Car Approx. 22 tonnes CARRYING CAPACITY: In excess of 138 tonnes per Car Unloading rail steel Foundation of ‘bridge UNIT CAPACITY: 50 Million Tonnes Capacity Time Hours par H
Slide 14: Equipment - Port
ie Equipment - Port 2.008 2 Capacity Time Hours per Hour Utilisation per Year (tonne) Efficiency Rate (348 days} 13,500 0.79 0.85 8,382 X1= 49 Mtpa UNIT CAPACITY: 49 Million Tonnes Capacity Time Hours Hout Utlisatl Ye = “tonne) Efficiency Rae (43 aye) X 1 = 60.7 Mtpa 13,500 | 0.98 | 058 | 8.362 UNIT
Slide 15: Blue Chip List of Suppliers and Partners
6 Blue Chip List of Suppliers and Partners 2 + Laing O’Rourke — Rail Construction + Roche Mining - Outsourced Mining Operations + BGC - Rail Earthworks + GE-Locomotives + McConneli Dowell ~ Marine Structures + Thyssen Krupp — design of Stackers, Reclaimers and Shiploader + China to supply Wagons, Ra
Slide 16: Business Partnering Opportunities for FMG and Chinese Suppliers
la Business Partnering Opportunities for FMG and Chinese Suppliers FMG’s 45 Mtpa project has created + US$300m of manufacturing export business for Chinese companies + One of the largest single export contract for Rail Wagons + Mining industry's largest bulk material handling equipment order from Ch
Slide 17: FMG and Baosteel
ie we FMG and (@) BAOSTEEL + Off-take agreement — up to 20 mtpa for 10 years. + T45- sold out - 100% coritracted, with S5mtpa to Baosteel. + Underwrites future expansion beyond T45. + Major product endorsement for other giobal steel mills. + Technical program to optimise Fortescue ore for market. +
Slide 18: Why a China Australia partnership?
6 Why a China Australia partnership? + The deep experierice of FMG and Chinese manufacturers is creating synergies for both + FMG project expansion vision encourages a long-term partnership perspective for Chinese suppliers and customers + Co-operative creativity delivers innovation for both FMG and
Slide 19: Offtake Growth - Target 110mtpa; Further Options
Bud Offtake Growth — Target 110mtpa; Further Options @CLOUD BREAK mw TEXTURE XC DOSHRISTMASCREEK = OMT LEEUAIN mE RNIGHT BFLINDERS SOLOMON 180 160 140 Tari etme 120 MTPA lA Expansion planned — initial construction design Stage 1 ~ 45 mtpa First Ore On Ship May 2008 ~1 Berth ~ 4 Ship loader ~ 1 Lay-b
Slide 20: Expansion planned - initial construction design
Expansion planned -— initial construction design Stage 2 ~- 100 Mtpa+ ~3 Berths ~ 2 Shiploaders ~ 10 mt stockpile ~ Double rail loop ~2x 2 car train unioader Expansion planned — initial construction design 19
Slide 21: Conclusion
6 Conclusion Huge reserve portfolio — initial mine plan +20 years Products extensively trialed and 100% under contract Open access port and rail infrastructure construction advanced Operation underway mid May 2008 Government and project partners fully committed Expansion plans > 100 Mtpa advanced 20