30.10.2013 Launching mining projects in Mongolia–a major contractor’s perspective, Eric Erdenebat Tseveendorj

© Orica Limited Group

Mongolia Mining Summit:

Launching Mining Projects in Mongolia – A Major

Contractor’s Perspective

Eric Erdenebat Tseveendorj, Country Manager, Orica Limited 30-31 October 2013

Forward looking statements

This presentation has been prepared by Orica Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Orica Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

Non-IFRS information

This presentation makes reference to certain non-IFRS financial information. Management use this information to measure the operating performance of the business and has been presented as this may be useful for investors. This information has not been reviewed by the Group’s auditor.

Disclaimer

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1. Introduction

2. Key Issues of Mongolia

3. Mongolia: Need/Wants and Challenges

4. How to Succeed in Mongolia

Contents

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CONFIDENTIAL: Information contained in this document is strictly confidential.

Clever Resourceful Solutions

Clever adjective skilful; talented; adroit; ingenious; quick

to understand & learn

Resourceful adjective full of resource; ingenious; skilful

in overcoming difficulties

No Accidents Today

Succeed Through Collaboration

Find Valuable Solutions

It’s Our Business

Vision and Values

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1. World’s largest provider of commercial explosives to mining and infrastructure markets with 28% global market share.

2. Largest supplier of chemical products to mining, water treatment and other industrial, food and cosmetics markets in Australia and New Zealand and a growing presence in Latin America.

3. Global leader in providing ground support in mining & tunnelling.

4. Leading global supplier of cyanide for use in gold extraction.

5. ASX listed with market capitalization in the Top 50.

Who We Are

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Orica’s global support system!

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•Established in 2004 (10 years of presence) in Mongolia

•Most major mining projects in Mongolia deploy Orica

products and/or services

•Main Services and Products are:

• Blasting services

• Commercial explosives

• Underground support products

• Chemicals

Orica Mongolia LLC

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Orica Green Edge represents us!

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Key Issues of Mongolia

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Better watch China closely!

• Almost all of the minerals exported to China

• Chinese economy influence the commodity prices

• China forecasts and new trends

– Shifting to slow-high growth (will maintain 7.5%)

– Consumption based economy

– Urbanization is occurring much faster rate

– Investing heavily on value added and innovative products

– Energy consumption will grow.

• In conclusion, domestic consumption and urbanization will drive future Chinese

economic growth, and thus will create a substantial demand for related

Mongolian minerals.

Key Issues: Why China is important?

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Chinese domestic consumption and urbanisation will key

drivers Mongolian minerals!

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• Mongolia as an Independent country, have democratic political system that is

inclusive of all voices, nationalistic and/or progressive.

• Legal Environment

– The newly adopted Investment law will protect investments for a duration

depending on the amount.

– The Government, Parliament and President of Mongolia are in agreement to

promote investment in mining; and hopefully, will not repeat past mistakes

that created instability.

• Social Political

– Multiparty system will always have various voices, including resource

nationalists

Key Issues: Domestic

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Mongolia: Need/Wants and Challenges

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What Mongolia Need?

• Need investors to develop the est. $2 trillion worth of minerals and associated

infrastructure.

• Need advanced and environmentally friendly technologies.

• Need experienced management systems to complete the identified projects.

• In sum, need Capital, Technology and Management system.

What are the Challenges:

• Lack of capital due to astronomic interest rates in Mongolia.

• Lack of sophisticated technologies and technical capabilities

• Experienced management systems

• Poor Infrastructure and logistics

• Corruption and inefficient public sector

• Dependent on China factor

Challenges

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Mongolia is the 19th largest and the most sparsely populated independent country

in the world, with a population of around 2.9 million people

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How to Succeed in Mongolia

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• Need high technical expertise for efficiency and productivity

– Note that the Chinese competition for low costs

– International companies with global support systems have advantages

• Operational excellence and deliverability

• Willingness to invest for the future

• Need experienced management, productivity boasting technology and capital

investment.

How to succeed in Mongolia

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Mongolia need high technology solutions!

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Conclusion:

Invest while bringing in experienced technical capabilities and managament.

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