Slide 1: Tenke Fungurume – Indaba 2011
Tenke Fungurume – Indaba 2011 1
Slide 2: Project Location
Project Location KOV TENKE FUNGURUME Kolwezi Kakanda DEPOSIT DEPOSI Kamoto Dikuluwe Kambove Likasi T TOWN Democratic D ti Republic R bli Of Congo C RAILWAY (K ) Ruashi Kipushi Etoile Lubumbashi Zambia Kansanshi Musoshi Kinsenda N Konkola th Mufulira Nchanga 0 Zambia 100 Km Chambishi Kitwe Sakania Nk
Slide 3: A Tier-One Copper Operation
A Tier-One Copper Operation • Largest Foreign Investment in DRC • World-Class Design and Construction • Significant Infrastructure Upgrades • Expanding Social & Community Programs Women entrepreneurs in Fungurume • Project Provides Important Benefits: • Employment • Local Services • Taxes • Royaltie
Slide 4: Tenke Fungurume Ownership Structure
Tenke Fungurume Ownership Structure Freeport-McMoRan Lundin Mining** Gécamines Copper & Gold Corporation 70% 30% TF Holdings Limited 80%* 20%* Tenke Fungurume Mining S.A.R.L. Beneficial Ownership* • ownership agreed to in October 2010 and pending Presidential Decree (Agreements signed by all parties
Slide 5: Mining District
Mining District Tenke Fungurume Concessions Airstrip Construction Village Overburden Storage Plan Area Processing Facility Tenke Fungurume Tailings Pond F Fwaulu l Deposits D it Kwatebala b l Deposit i Power Substation Tenke Village Dipeta Syncline Exploration Tenke Deposits Fungurume Village Camp D
Slide 6: Exploration
Exploration F 103 N F 112 N F 005 N F 104 N Oxide Ore • Only half of the concession Mixed Ore has been explored 2000m • Expansion feasibility studies Sulfide Ore to be completed in 2011 Bearing m Beds at Depth 6
Slide 7: Key Data
Key Data • High-grade copper-cobalt deposits • Open pit mine • Oxide ores with metal recovered by an agitated-leach process producing copper cathode metal and cobalt hydroxide • Production • Design capacity of 115 115,000 000 t Cu and 88,000 000 t Co annually • Mill operated at ~11K t/d in 4Q2010, a
Slide 8: Operations Overview
Operations Overview Open Pit Infrastructure Mine Sulphuric Purchased Power, Water, Roads (mined & Acid Sulphur stockpiled) Plant Ore Acid Grinding Ground Leaching PLS Solvent Rich Electrowinning (SAG Mill) Slurry & CCD Extraction Electrolyte (EW) (SX) Tailings to Cobalt Plant Storage Facility Copper
Slide 9: Environment
Environment • During project construction, TFM invested more than $50 million in environmental protection protection, including the installation of a synthetic liner for the tailings storage facility, the first of its kind for a base metals mine in Africa • Biodiversity Action Plan • Including major
Slide 10: Infrastructure
Infrastructure • TFM is investing up to $170 million t rehabilitate to h bilit t the th N’seke N’ k Power P N’zilo Dam* Station, with completion scheduled in 2013 ($120 million committed to date) • TFM has additionally invested in several other regional infrastructure rebuilding projects: • National
Slide 11: Logistics
L i ti Logistics Dar es Tunduma Salaam Dil l Dilolo SITE Lobito Kasumbalesa Ndola New Kapiri Mposhi Katimo Chirundu Malimo Livingstone Walvis Beitbridge Bay Groblersburg Komatipoort DRC Maputo Johannesburg Durban and Richards Bay Ndola (Zambia) 470 km Johannesburg (RSA) 2 580 km 2,580 Dar es Salaam
Slide 12: Economic Benefits
E Economic i Benefits B fit • Largest foreign investment in DRC and vital source of revenue for national and regional g development p • Through December 31, 2010, TFM has cumulatively paid more than $331 million in taxes, duties and other payments to the DRC government: work permits, visas and custo
Slide 13: TFM Corporate Responsibility
TFM Corporate C t Responsibility R ibilit TFM is committed to: • providing a safe, healthy, and transparent environment for employment, production, and sharing of the economic benefits that flow from our presence • Playing an important role in local and national development • Social development prog
Slide 14: Employment
E l Employment t • Concession hosts over 130,000 residents • TFM has approximately 2,500 full-time operational workers, and 1,500 contractors. • Direct employment peaked at over 9,000 9 000 during construction • 98% of operational employees are DRC citizens, with ith monthly thl wages ttotaling t li
Slide 15: TFM Social Programs: Focal Areas of Activity
TFM Social Programs: Programs Focal Areas of Acti Activity it Education • Education Resettlement • Health Health • Economic Development • Resettlement Economic Development p • L Long-term t Financial Fi i l Stability St bilit (Foundation) 15
Slide 16: Education/Training
Ed ti /T i i Education/Training • On-site training • In 2010 2010, more than 88,000 000 persons underwent some form of TFM-sponsored training • More than 100 DRC nationals have undergone specialized training at Freeport-McMoRan operations in Chile and the US • University of Lubumbashi internship pro
Slide 17: Health/Safety
H lth/S f t Health/Safety • Malaria Control and Prevention • 50% reduction of malaria in the local community • HIV / AIDS • Trained 130 community peer educators • Voluntary testing and counselling • Cholera • No reported cases in 2010 (water provided to communities by TFM) • >400 cases and 20 deaths
Slide 18: Potable Water & Sanitation
P t bl Water Potable W t & Sanitation S it ti • Clean Water • TFM has constructed over 60 wells within and outside the concession and assists in village-based maintenance and management programs • Fungurume town fresh water piping and reticulation system completed • Sanitation • In partnership with
Slide 19: Economic Development – Microenterprise
Economic Development De elopment – Microenterprise • Demand for jobs is higher than TFM can fulfill • TFM prioritizes i iti llocall suppliers li andd contractors t t • Goal is also to support sustainable economic opportunities outside of the miningg sector • Support for 20 local SMEs • 700 women par
Slide 20: Resettlement
R ttl Resettlement t • 379 households impacted by the project were relocated under a Resettlement Action Plan (RAP) in accordance with national law and international best practice • Total of over 1,500 individuals were successfully relocated to their choice of one of four new communities, each with
Slide 21: TFM Community Foundation
TFM Community C it FFoundation d ti • TFM Mining Contract includes a commitment to provide 0.3% of annual net revenues for community development • Co-managed by TFM and local authorities • Established foundation to allocate and manage funds • Draw on experiences of community foundations around the w
Slide 22: TFM Social Programs – Future Focal Areas
TFM Social Programs – Future F t re Focal Areas • Supply Chain development of local suppliers • Agri-business Agri business and food security • Market rehabilitation for Tenke & Fungurume y • Urban water distribution systems in Tenke and Fungurume g • Urban Growth Management Plan 22
Slide 23: Tenke Fungurume Priorities
Tenke Fungurume Priorities • Optimizing existing facilities • Continue concession-wide exploration • Expansion feasibility study – 2011 • Exploration p and infrastructure development p drive future expansions • Sustainable Economic and Social Benefits to the DRC 23
Slide 24: 6 Established Mines, Stake in 2 World Class Copper Assets
100% Las Cruces 100% Zinkgruvan +14 year LOM +10 year LOM 100% Neves‐Corvo +10 year LOM 100% Pyhäsalmi +8 year LOM Growth Projects Legend 100% Neves‐Corvo Lundin Mining Semblana Inmet Mining 100% Çayeli Lombador Head Office +7 year LOM 80% Cobre Panama +30 year LOM 24% Tenke 24% Tenke Expansion +40
Slide 25: Thank You
TENKE p FUNGURUME Mining