TIQ Latin America. Mining - METS

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1 TIQ Latin America Mining - METS

2 Latin America Overview

3 Latin America Overview

4 Mining Investments in Latin America Source: Latin America Mining and Energy Consensus Forecast

5 Trade Mission October weeks of mission through 2 countries (Peru & Chile) and 4 cities (Arequipa, Lima, Santiago & Rancagua) 4x mine site visit Cerro Verde (Freeport), El Brocal (Buenaventura), Rio seco (Buenaventura) and El Teniente (Codelco) Over 30 new leads appointed Over 20 personalized meetings TIQ presence consolidated at ALL TIER 1 mining in Peru Possibility of over AUD in new business One success cases achieved during the Mission (Diamond Grid USD 250k)

6 Trade Mission Press Release

7 Round table with Cerro Verde, Rio tinto and Milpo Mining Hosted by Minister Lynham, Queensland Minister of Natural Resources & Mines, and State Development Attended: Rio Tinto, Freeport-MacMoran Cerro Verde and Milpo Mining

8 Round table with Cerro Verde, Rio tinto and Milpo Mining

9 First mine site - Cerro verde Cerro Verde (operated by Freeport-McMoRan) is an open-pit copper and molybdenum mining complex with a large-scale $4.4B expansion advancing toward completion in late This expansion will treble concentrator facilities taking annual production to 600 million pounds of copper.

10 First mine site - Cerro verde

11 Second Mine visit - El Brocal Compañía de Minas Buenaventura S.A.A. is a Peruvian miner engaged in the exploration, mining, development and processing of gold, silver and other precious metals. The company is the largest locally owned precious metals producer and operates several mines in Peru (Orcopampa, Uchucchacua, Poracota, Tantahuatay, La Zanja, Rio Seco, Julcani, Antapite and Mallay) and has controlling interest in mining companies Cedimin and El Brocal. Buenaventura, through a JV with Newmont Mining Corp., also owns 43.7% of Yanacocha, Latin America's largest gold mine, and 19.6% of copper producer Cerro Verde. The mission visited the Tajo Norte mine that is an open pit operation that exploits content polymetallic ores, sulfides mainly comprised of silver, lead, zinc and copper. For project website visit:

12 Second Mine visit - El Brocal

13 Third mine visit - Rio seco - Buenaventura

14 Third mine visit - Rio seco - Buenaventura

15 Lima event Bussines meeting with all Tier 1 mining companies in Peru - Volcan, Rio Tinto, Buenaventura, Chamber of Commerce, Grana Montero, Souther Copper and Antamina *Adam and Roque Benavides CEO of Buenaventura

16 Fourth mine visit Coldeco

17 Fourth mine visit El Teniente - Coldeco

18 Fourth mine visit El Teniente - Coldeco

19 Connect TIQ in Latin America

20 Connect TIQ in Latin America

21 CHILE - Why do business in Chile? Stable democratic government 22 Trade Agreements 60 countries Free Trade Agreement with Australia Double Taxation Treaty with Australia Unemployment is low Port of entry to Latin America Prudent fiscal policies - Public debt is approximately 10% of GDP Solid business practices - Rule of law Low corruption - Chile ranks #23 of 177 on Transparency International s 2015 Corruption Perceptions Index;

22 Mining in Chile Chile s mining industry generates large demand for imports. Mining industry has been and will continue to be a key driver in the development of Chile. Chilean copper reserves represent 25% of world total reserves and produces 34% of copper sold in the world. Production of 6 million tons of fine copper/year. Chilean mining consists primarily of open pit, hard rock mining. Mining Equipment. Total imports: USD 4.2 billion. Estimated USD 80 billion in new investment over next 10 years.

23 Chile - Projects Companies Projects Commodities Anglo American Los Bronces - 65kms from Santiago tons/year - USD 2.8 billion Copper Collahuasi Doña Inés de Collahuasi - Tarapaca region Copper BHP Pan Pacific Copper, Mitsui, SCM Minera Escondida - Atacama Desert in the North of Chile World s largest copper producer Copper Caserones - Located in Copiapo region - USD 4.2 billion Copper Codelco Chuquicamata underground mine Copper Codelco New level in El Teniente Mine - Rancagua tons/year - USD 3.5 billion Copper Antofagasta Minerals Antucoya - Construction Copper KGHM International Sierra Gorda - Antofagasta region - USD 3.9 billion Copper

24 Opportunities for METS in Chile Mining equipment that requires regular replacement (i.e. grinders, off-road trucks ( ), scoop shovels, excavators, cranes, crushers, etc.), underground mining technology services and engineering services. Processing plants Exploration & Exploitation Infrastructure Training Drilling Water and Energy Management Community engagement Air pollution and dust abatement Mine closure Cooperative Agreement with Asociación de Industriales de Antofagasta (AIA) Main trade shows: Expomin, April 2016 ( Santiago Exponor, May 2017 ( Antofagasta

25 2. Challenges of the Chilean mining industry Government of Chile - Ministry of Mining What is Chile doing to stay competitive? Roadmap TODAY SHORT TERM MID TERM DRIVING CORES TENDENCIES/ DRIVERS BUSINESS OPPORTUNITIES TECHNOLOGIES PROJECTS R&D+i TAILINGS SMART MINING SMELTER & REFINING ENERGY & WATER OTHERS VISION AND OBJECTIVES US$M in exports 290 world-class suppliers ENABLING ELEMENTS /RESOURCES ENABLING CORES SUPPLIERS DEVELOPMENT 80% of industrie in first cost quartiles HUMAN CAPITAL

26 Energía (Twh) Agua m3/s Growing Water and Energy Demand Increase in electricity demand from 23TWH to 40TWH High impact of energy on industry costs: aprox. 20% Increase of water consumption (fresh and seawater) of 66% (14,8 m3/s to 24,6m3/s) due decreasing grade of concentrate Use of seawater could increase over 40% of costs associated to energy PROJECTED ENERGY CONSUMPTION (TWH) Base Probable Posible 40 TWH PROJECTED WATER CONSUMPTION (m3/s) SOURCE: FCH (BASED IN COCHILCO S DATA) Agua Fresh Fresca water Agua Seawater de mar 24,6 m3/s

27 Peru at a glance Major Cities: Lima Arequipa, Trujillo, Piura e Cuzco GDP: USD 200 billion 57% Middle Class 47% Below age of 24 USD 8.2 billion in FDI annually 2nd highest credit rating (BBB+) in Latin America behind Chile

28 Mining in Peru More than 14% of GDP comes from mining. Third world producer of copper. 2.8 million tons by More than 61% of the exports are related to mining. There are more than 600 active mining sites of which 188 are underground, and more than 1000 sites under exploration. Mining activity is carried out by private companies operating under long-term licences granted by the central government. Investment from USD 60 billion in copper, gold and silver. Copper, gold and iron ore comprise 88% of the production.

29 Peru at a glance

30 Peru - Projects Companies Projects Commodities China MinMetals Las Bambas acquisition - US$ 5.1 billion copper Freeport McMoRan Cerro Verde - Expansion - US$ 4.6 billion copper and gold Hudbay Minerals Anglo American Southern Copper Buenaventura Constancia - Expansion (Ausenco) - US$ 1.7 billion Quellaveco - Expansion - US$ 3.3 billion copper and gold copper, molybdenum, silver Tia Maria - US$ 1.3 billion - Start operations in 2017 copper Chucapaca - US$ 1.0 billion - Start operations in 2017 Hochschild Mining Crespo - US$ 111 million gold and silver gold

31 Opportunities for METS in Peru Processing plant Equipment Mining Equipment Exploration Infrastructure Preparation Training and skilling the work force Water and Energy Management Community engagement Main trade shows: Expomina, Sept 2016 ( Lima Perumin, Sept 2017 ( Arequipa

32 TIQ in Latin America Antamina Project

33 Challenges Infrastructure / remote access Bureaucratic ineffectiveness, inefficiency & corruption Informality Customs and Taxes Community relations Conflicts are linked to use and availability of water or pollution Insufficient skilled work force

34 Peru and Chile - Resume

35 BRAZIL

36 Brazil

37 ARGENTINA COLOMBIA Emeralds Coal Lithium Gold Gold Manganese

38 TIPS for success in Latin America Identify a local representative Personal relationships matter Language & translate materials Establish your plan for post purchase service Capitalize on quality of product Work with a legal partner Conduct due diligence Contact TIQ for help!!!

39 Pacific Alliance

40 Thank you Marco Miranda Senior Business Development Manager for Latin America Trade & Investment Queensland Av. Andrés Bello 2777 Of. 2002, Las Condes, Santiago, Chile Tel / Mobile marco.miranda@tiq.qld.gov.au