BBA Capability Statement May 2010

-0-Projects I Equipment I Commodities

A China-focused Global Procurement House

Capability StatementMay 2010

BATEMAN BEIJING AXISA China-focused Global Procurement House

A Joint Venture between Bateman Engineering N.V. and THE BEIJING AXIS Ltd.



Who We Are

What We Do

Services and Sector/Product Range

How We Operate

Track Record

Clients

Our People

Contacts and Global Footprint

AGENDA



BATEMAN BEIJING AXIS: A CHINA-FOCUSED GLOBAL PROCUREMENT HOUSE

A JV between Bateman Engineering N.V. and THE BEIJING AXIS Ltd.

� BATEMAN BEIJING AXIS provides intelligent China sourcing solutions that balance total cost, delivery time and quality in order to achieve sustainable sourcing advantages

� We offer insight, impact, reliability and confidence on the basis of a highly synergistic partnership between Bateman Engineering N.V. – a global leader in the execution of feasibility work and the design, engineering, procurement and construction management of mineral processing plants; and THE BEIJING AXIS Ltd. – a cross-border business bridge to/from China focused on three principal areas: Strategy, Sourcing and Investment

� We work across industries but have exceptional experience in metals, mining, minerals processing, industrial machinery, chemicals, transport and automotive components

� BATEMAN BEIJING AXIS has multinational and integrated teams supported by head office in Beijing, providing independent solutions in a manner that is consistent with the highest international corporate governance standards attainable, and that respects the environment so as to assure sustainability



BATEMAN ENGINEERING AT A GLANCE

� Founded in 1921

� Completed over 1,000 projects in more than 50 countries since 1980

� Clients include major resource companies and many juniors

� Registered in Netherlands with presence across five continents

� Approximately 1500 employees

� Provide full range of services starting from concept engineering through feasibility study to design, engineering, procurement, erection & commissioning of working process plants

� Serve the full range of minerals & metals, e.g. uranium, copper, zinc, nickel, PGM metals, industrial minerals, coal, diamonds, gold & ferrous metals



THE BEIJING AXIS AT A GLANCE

� Founded in 2002

� Completed more than 100 projects in 5 major geographical areas

� Clients include large international and Chinese blue chip MNC’s and SME’s

� Registered in Hong Kong with presence across four continents

� Approximately 30 employees

� In Strategy, THE BEIJING AXIS (TBA) China Strategy Group help clients enter new markets, expand existing markets, develop and implement new strategies, and better understand their customer base and competitive environment through analysis and intervention

� In Sourcing, TBA China Sourcing Unit support international firms as they exploit China’s status as a leading global supply-base; whilst at the same time supporting Chinese firms that are looking at global sourcing. We provide a comprehensive range of procurement services across the supply chain with a focus on cost savings, quality control and on-time delivery.

� In Investment, TBA China Capital Advisors help clients raise capital from strategic investors and advise clients on cross-border acquisition, disposal and joint-venture transactions.



� Enhanced procurement scope : Synergy between Bateman global project engineering and technical ability and TBA China strategic and operational knowledge

� Greater project execution leverage : TBA marketing and research expertise provided on globalplatform of Bateman project experience

Extensive China sourcing experience and knowledgeLeading mining process engineering technologies

Entrepreneurial culture, flexibility and speedLarge company systems, platforms and procedures

Established networks and supplier databasesEstablished networks and supplier databases

SYNERGY BETWEEN THE TWO JV PARTNERS

Bateman Capabilities

Core project-management capability Strategic and analytical approach

Global footprint Strong China presence

Long history and significant experience curve Leading position as China bridge in chosen markets

Five years collaboration with THE BEIJING AXIS Ltd. Five years collaboration with Bateman Engineering N.V.

THE BEIJING AXIS Capabilities



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People

Processes

Knowledge

Track Record

‘Guanxi’

� Top level management with renowned track records in the global mineral processing industry and China sourcing arena

� Qualified engineers and senior sourcing consultants with recognised China knowledge and sourcing experience

� Specialised teams working closely with clients to ensure effective project delivery� Innovative, entrepreneurial company ethos underlying all operations

� Solid standardised processes and operating procedures� Holistic risk orientation and service quality control procedures at all levels� Safety, Health & Environmentally-conscious supplier evaluation system� Project-controlled software packages and communication systems for meeting scheduling and

cost objectives

� Best practice knowledge management processes and tools� Post-project learning, sharing and knowledge management� Benchmark data for selected industries, pre-qualified supplier databases� Latest in-house innovative engineering, procurement, construction and management technology

� Extensive client list – large international and Chinese blue chip MNCs� References reflect high client satisfaction� Comprehensive list of past projects across a variety of geographies, sectors and commodities

� Excellent networks in China’s industrial associations, trade associations, ministries, academia and individual companies

� Global reach in mining and resources sector and supply chain industry� Long-established personal connections and trust based on solid track record

BBA EXPERIENCE CURVE CREATES ADVANTAGE IN FIVE AREA S



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



Procurement for Independent External Clients

Globally

Bulk Commodity Procurement,

Marketing, Trading and Financing

BATEMAN BEIJING AXIS PROVIDES SERVICES IN 2 BUSINES S AREASChina Procurement & Bulk Commodity Trading

China Procurement Services Procurement for Bateman Global ProjectsBateman Beijing Axis provides comprehensive integrated procurement solutions and support to Bateman projects that are being executed globally. For Bateman clients, this ensures cost effective project procurement solutions through the effective leveraging of China and other low cost country sourcing in the supply chain

Procurement for Independent External Clients GloballyBateman Beijing Axis provides sourcing and supply chain services to external clients by leveraging our people, processes, knowledge, track record/experience and networks. Our solutions are comprehensive and encompass supplier identification, evaluation, prequalification, selection, negotiation, commercial/contracting, transaction monitoring, QA/QC, expediting and logistics. The emphasis is on solid project management, holistic risk management and strategic relationship management

Bulk Commodity Services Bulk Commodity Procurement, Marketing, Trading and FinancingBy leveraging the knowledge and networks of the 2 JV partners, Bateman Beijing Axis provides bulk commodity trading solutions. We support bulk commodity producers (i.e. metals, minerals, softs, etc.) with their international marketing efforts and we assist bulk commodity users with their procurement efforts. In selected cases, we also do financing across the transaction chain

Procurement for Bateman

Global Projects

Bateman Beijing Axis provides intelligent China procurement services for international clients, and offers bulk commodity trading services for bulk commodity producers and users.



BBA CHINA PROCUREMENT SERVICESS

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t China Sourcing Competitiveness Analysis & Needs Analysis

Supplier Identification, Evaluation and Selection

Supplier Engagement

Commercial Contracting

Transaction Monitoring and Assistance

QA/QC, 3rd Party Management, Expediting

Logistics Assistance



BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (I)

Needs Analysis & China Sourcing Competitiveness Ana lysis

Supplier Identification, Evaluation and Selection

� Formulate a successful China agenda with regard to global procurement

� Critical China-focused research and analysis on the macro as well as micro situation

� Integrating with client’s business plan, overall strategy, and specific procurement needs for holistic solutionsthat create value and mitigate risk

� Established methodology for choosing the right supplier

� Based on on-the-ground research and extensive networks

� High-level filtering of suppliers followed by more specific filtering

Supplier Engagement � Comprehensive assistance for all procedures of engaging with suppliers by on-the-ground team

� Ensure that all documents are collected in time and product specifications are closely adhered to



BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (II)

Commercial Contracting

Transaction Monitoring and Assistance

� Full negotiation support for price and commercial terms

� Support for drafting, inspecting and modifying of contracts

� Entrenched relationships with international and local law firms for professional advice , if required

� Complete transaction management from placement of order to completion of contract

� BBA acts as bridge between supplier and buyer, reduces risks caused by misunderstanding while expediting process

QA/QC, 3rd Party Management, Expediting� As client’s dedicated China partner, BBA sends specialised staff to visit suppliers and report back on sourcing

project

� QA/QC assistance, on-site inspection and factory acceptance support

� Management of third parties when required

� Expediting activities to ensure project plan and timeline compliance



BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (III)

Logistics Assistance

Strategic Relationship Management

� Management of shipping/freight agencies and/or recommending BBA logistics services providers to significantly reduce transportation costs and supply chain risks

� Relationship management is key in China – BBA assists clients to develop long-term and mutually-beneficial relationships with suppliers and partners in China

� Troubleshooting if a problem occurs; BBA assists to repair relationships and provide contract solutions in case of unexpected contingencies such as a contract-related dispute

Holistic Risk Management� Wide angle on risk in every stage of execution so as to mitigate overall risk profile

Comprehensive Risk Management� Integrated project management across all aspects of the programme, over the life of the programme



BBA BULK COMMODITY SERVICES

BBA Bulk Commodity Services

Commodity Seller and Buyer Identification, Evaluation and Selection

Seller Engagement for Support with Off-take Placement / Management

Buyer Engagement for Support in Securing Strategic Supply

Facilitation of Commercial Contracting / Transaction

Financing Support and Transaction Risk Management

Sampling, Testing and QA/QC

Logistics Support and AssistanceStr

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Man

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Hol

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Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



Manufacturing IndustriesMining & Extractive Industries

SERVICES AND SECTOR/PRODUCT RANGE - OVERVIEW

Bulk Commodities

Services

Minerals and Metals

Mining Machinery

Mining Services

Coal

Fe Alloys

Metals

Chemicals

ElectricalEquipment

Other

AutomotiveSpare Parts

Transportation

Building/ Construction

Logistics

Constructors

Design & Drafting

EPC/M Contractors

Project Management

IT/IS Outsourcing

Services

Ores

Capital / Process Plants

IndustrialMetals



SERVICES AND SECTOR/PRODUCT RANGE : MINING & EXTRACTIVE INDUSTRIES (I)

� Steel : Bars, Angles, H/I-beams, HRC/CRC, etc.

� Cobalt

� Copper

� Magnesium

� Aluminium

� Chrome

� Granite

� Coal

� Iron ore

� Manganese

� Safety Consulting Services

� EPC/M Contractors

Minerals and Metals

Mining Machinery

Mining Services



SERVICES AND SECTOR/PRODUCT RANGE : MINING & EXTRACTIVE INDUSTRIES (II)

� Material Handling Equipment : Conveyors; Cranes and hoists; Feeders and apron feeders; Locomotives; Rapid wagon loaders and dumpers; Ship loaders; Stackers and reclaimers; Train loaders and unloading systems; Vehicles (earthmoving trucks, trailers, forklifts, mobile cranes, etc.)

� Ore Dressing Machinery : Grinding mils; Centrifuges; Crushers; Filters; Flotation equipment; Hydro extractors; Magnetic separators; Screens; Screw classifiers; Thickeners

� Steel Vessels and Structures : Agitators; Furnaces; Heat exchangers (SS and CS); Pressure vessels (SS and CS) and boilers; Tanks, towers and stacks (SS and CS); Structural steelwork

� Electrical Equipment : Transformers, Generators, Switchgear, Electrical cables; Motors

� Mechanical Equipment : Blowers; Boilers; Compressors and air systems; Pumps; Valves

� Mine Consumables : Chemicals; Conveyor belting, idlers and rollers; Drill bits; Grinding media; Mill accessories (linings, girth-gear, etc.); Pipes and fittings; Rope, wire and steel cables; Pump spares; Bearings; Safety equipment; Vehicle spares

Minerals and Metals

Mining Machinery

Mining Services



SERVICES AND SECTOR/PRODUCT RANGE : BULK COMMODITIES

� Non-coking bituminous coal

� Coke and semi-coke

� Coking Coal

� Anthracite

� Iron ore, concentrate, non-iron pyrites, unagglomerated

� Manganese pres, concentrates, iron ores >20% manganese

� Chromium ore and concentrates

� Copper ores and concentrates

� Ferro-chromium, >4% carbon

� Ferro-chromium, <4% carbon

� Ferro-silicon, <55% silicon

� Platinum, unwrought or in powder form; semi-manufactured forms

� Cold rolled stainless steel, w >600mm, t 3.0-4.75mm

� Hot rolled stainless steel coil, w >600mm, t 4.75-10mm

� Hot rolled stainless steel flat, w >600mm, t >10mm

Coal

Fe Alloys

Metals

Ores



SERVICES AND SECTOR/PRODUCT RANGE : MANUFACTURING INDUSTRIES (I)

� Wheel rims

� Tyres

� Axles

� Brake linings

� Drums and discs

� Suspensions

� Interiors, seats etc.

� Body / chassis etc.

� Sedans

� Buses

� Trailers

� Bicycles

� Motorcycles

� Train components and spare parts

� Polyethylene

� Polypropylene

� Rubber

� Fabricated steel

� Forgings

� Castings

� Cement (clinker/finished)

� Building materials

� Generators

� Batteries

� Wires / Cables

� Electric motors

� Solar panels

� Solar heaters

Chemicals

ElectricalEquipment

AutomotiveSpare Parts

Transportation

IndustrialMetals



SERVICES AND SECTOR/PRODUCT RANGE : MANUFACTURING INDUSTRIES (II)

� Packaging material and processing machinery

� Waste management equipment and processing machinery

� Medical equipment

� Hydraulic equipment

� Cement (finished, clinker)

� Various building materials

� Fasteners

� Cranes

� Hoisting equipment

� EPC/M Contractors

� Tiles

� Various fittings

� Bathroom / Kitchen finishing

� Ceramics

� Furnaces

� Hot rolling mill

� Cold mill

� Casters

� Foil handling system

Other

Building/ Construction

Capital / Process Plants



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



� Only by following a systematic project methodology are we are able to provide intelligent sourcing solutions that balance total cost, delivery time and quality so as to achieve sustainable sourcing advantages

� Our analytical approach as well as our established networks, supplier databases and experienceensure that we are able to comprehensively manage all aspects of a China sourcing initiative in a manner that adds value and mitigates risks

� Our methodology is based on 12 interrelated and clearly defined steps which are applied by the members of our procurement team

� BBA applies 3 key principles in every single stage of our procurement methodology:

1. Comprehensive Overall Project Management 2. Holistic Risk Management3. Strategic Relationship Management

BBA FOLLOWS A SYSTEMATIC METHODOLOGYIN ORDER TO MITIGATE RISKS AS BEST AS POSSIBLE



BATEMAN BEIJING AXISPROCUREMENT SERVICE DELIVERY PLATFORM & METHODOLOGY

Supply C

hain M

anagement

& S

upport

Procurement needs analysis and China procurement competitive analysis

Supplierpre-qualification, due diligence & final selection

Commercial process, contracting & contract management

Transaction monitoring

Systematicindustrysearch& supplieridentification

Negotiation,tender evaluation

Supplierengagement, RFQ & tendering (SOI, RFP)

Siteinspections, sample testing &standards

Quality mgmt (QA/QC),Expediting & 3rd partymgmt

Logistics

1 2 4

568

� Overall Project Management � Holistic Risk Management� Strategic Relationship Management

Analysis Initial scoping, supplier evaluation, due diligence and final selection

EngagementSupplier engagement, client visits, testing, application of detailed filters and negotiation

Process Transaction monitoring, quality assurance, expediting, 3rd party management and logistics

Strategic Sourcing

Supply C

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Coordination & assistance on site (material mgmt, commissioning, etc.)

12

3STEP STEP STEP STEP

Supplier evaluation of applicationof high-level filters

STEP STEP STEP STEP

STEP STEP STEP STEP



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



Client Leading diversified mining company

Project Overview The client had never sourced any equipment from China before, yet in this case the project involved the sourcing of

an entire plant from China.

One of BBA’s joint venture partners was contracted to supply two sulphuric acid plants for the nickel processing plant of the mining operation.

After comparison with suppliers from the US, Europe, India and China, the client chose China as the preferred country to source from due to the strong savings and shortened delivery times.

BBA provided a range of procurement services, including Supplier Selection, Due Diligence, Shop Design, Quality Assurance and Quality Control, Expediting, Facilitated Construction and Installation.

The total project order value was USD 30 million.

CASE STUDY 1 – MINE PROCESS PLANT: BACKGROUNDProject Procurement for two Sulphuric Acid Plants a s

Part of a World Class Mining Operation in Africa

View of the acid plant



Project Implementation BBA provided strategic planning in order to identify procurement risks, and a project team was set up to prepare

solutions for mitigating any risks.

The key issues in this case can be summarised as follows:• Chinese vs. international standards• Correct raw material selection• Drawing approval process• QA/QC• Packing and logistics methods

An international team was formed which consisted of the design team, the quality inspection team, and several technology consultants.

To ensure optimal quality, BBA dispatched QA/QC engineers to the supplier factories in order to monitor and provide guidance for the work execution.

An advanced project control monitoring system was applied to calculate the project progress and reports were provided on a daily and weekly basis in order to avoid delays and eliminate any problems if and when they occurred.

CASE STUDY 1 – MINE PROCESS PLANT: EXECUTIONProject Procurement for two Sulphuric Acid Plants a s




1) Actuated Dampers and the acid plant's ducting with an average diameter of 2,000mm

2) Jug Valves (used to control the temperature into the converter) of length 4,500mm and 2,200mm in diameter

3) Two Fire Tube Waste Heat Boilers with an average diameter of 3,200mm and an overall length of both passes, from inlet vestibule to outlet, of just under 20,000mm. The empty mass was 333 tonnes

4) Steam Drums 2,340mm in diameter and 11,000mm in length 5) Superheater fabricated of stainless steel with dimensions

5,200mm x 6,200mm x 8,600mm and mass 88 tonnes 6) Interpass Absorption Tower fabricated partly of carbon steel

and partly of stainless steel. The bottom 10,000mm x 7,070mm diameter was carbon steel (which was brick lined on site) and the top 9,700mm x 7,600mm diameter was stainless steel with a total mass of 86 tonnes

CASE STUDY 1 – MINE PROCESS PLANT: OUTCOMEProject Procurement for two Sulphuric Acid Plants a s


During 2008 - 2009, BBA successfully installed at the site all the equipment listed below:

View of the acid plant



Client JSE-listed Aluminium Company

Project Overview The client had sourced magnesium from China through TBA China Sourcing Unit in the past. Yet sourcing large

capital equipment from China was unfamiliar territory for them.

BBA conducted a strategic sourcing report for the client, explaining the current Chinese manufacturing capability as well as the Chinese cost advantage while illustrating the challenges such as regulation, foreign exchange, taxation, logistics, and business culture. The report presented detailed the cost analysis from labour, raw material, and energy consumption.

The client decided to source from China and BBA provided procurement services including Supplier Selection, Due Diligence, Tendering, Transaction Assistance as well as Commissioning at site.

The total project order value was USD 48 million.

CASE STUDY 2 – INDUSTRIAL PROCESS: BACKGROUNDSourcing Strategic Raw Material and Aluminium Proce ss

Capital Equipment for SA

Caster working on site



Project Implementation BBA implemented procurement strategies for different categories of sourcing targets, namely:

• Raw materials - BBA scanned the whole market of raw material producers in China and short-listed the top ten producers in the country

• Capital equipment - BBA identified reputable industry leaders and helped them bid on the project

BBA applied a tender process in order to optimise the initial supplier selection. The filtering criteria was conducted via extensive communication, plant visits, external expert interviews to ensure the production quality, delivery time and cost advantage have a solid foundation. The results were recorded in a report which was submitted to the client.

QA/QC was implemented by BBA engineers and the third party inspectors at the supplier site. BBA engineers monitored the entire production progress and assisted with technical communication due to the weak English skills of the manufacturer

At the commissioning stage, BBA accompanied the supplier to manage the installation on site, provide consultancy to specific adjustments until the caster was able to operate smoothly.

After the contract, BBA has been continuously playing a consultant role to manage the communication, risks and ongoing relationship.

CASE STUDY 2 – INDUSTRIAL PROCESS: EXECUTIONSourcing Strategic Raw Material and Aluminium Proce ss




Products sourced from China:1) 99.95% Magnesium ingot, low Si, Ca and Na

2) Hardeners - Silicon, FeAl, CrAl, MnAl 3) Caster 4) Wire belt (Length: 8.18 m, Width: 0.7 m) Wire Diameter: 3.3mm,

Pitch of wire: 8.5mm, Rod diameter: 6mm, Pitch of rods: 14mm, Working temperature: 250-300(℃), Tension in belt: 90 000N.

5) Endless Corrugated Sidewall Belt, EP630/4+1 (4+2)mm, S240-125, TC220-250 6) HFM work roll change Cylinder 7) Generator sets 8) Bearing includes IMR bearing number EE126096D/126150 and

Work Roll Bearing Number 82680D/82622 9) Tool steel - Grade H11, H13, Diameter 235mm, 285mm 10) Refractory material Tips 11) Welded structure steel charging bucket - Weight 25MT, Steel

grade Q345A 12) Spools for the rolling mill ( Foil mills)

The casters were successfully installed in 2008. BBA’s involvement spanned 30 months. BBA has continued to provide quarterly reports on the magnesium industry.

Caster working on site

CASE STUDY 2 – INDUSTRIAL PROCESS: OUTCOMESourcing Strategic Raw Material and Aluminium Proce ss




Project Execution BBA conducted comprehensive research on both market dynamics and industry players and finally

recommended a shortlist of 11 suppliers based on the research results and the company’s specific requirements. During business trips to China arranged by BBA, the client was able to meet with 11 suppliers. Eventually the

client was able to locate suppliers for each product, and has built up exclusivity with a tire supplier. After one year's transactions, the trailer supplier passed all tests and both parties started negotiations on in-house designs manufactured in China. BBA facilitated aspects such as market research, partner due diligence, the structuring of agreements, strategy formulation to protect the client's intellectual property, and general liaison. Towards the end of 2006, agreement was reached whereby the Chinese party agreed to manufacture all trailer frames, with final stage assembly performed in the original country. In addition, the Chinese party agreed to use the client's proprietary designs to manufacture and assemble a new trailer product to be sold in China. BBA’ client will be remunerated for the use of its intellectual property through a system of royalty payments which are audited and facilitated by BBA

CASE STUDY 3 – TRANSPORT/AUTOMOTIVE: SUMMARYEstablishing a Sourcing and Manufacturing Presence in China for a Leading South

African Truck Trailers Manufacturer

Background A leading South African manufacturer of freight truck trailers approached Bateman

Beijing Axis (BBA) to assist them with establishing a sourcing and manufacturing capacity in China. The need for a China presence revolved around three factors, namely the need to diversify suppliers, the need to reduce labour costs and the desire to gain a foothold in the Chinese market.



A pre-bid trip was arranged to introduce the client to the major suppliers/contractors, including the biggest institute, the biggest equipment manufacturer and the most experienced contractor in supplying rolling mills. The trip proved to be productive, and subsequently the suppliers we introduced were all invited to be bidders. Then BBA was made responsible for managing the whole progress of Chinese bidders. As some of the bidders did not have any experience in bidding for a Russian project, BBA also assisted each supplier with preparing Russian documents and helped them overcome a range of language and commercial difficulties.

Background After conducting the initial research to establish the possibility and potential value of sourcing steel mill

equipment from China, Bateman Beijing Axis (BBA) was authorised by a top Russian steel group to execute the bidding process in China.

Project Execution Combining general market research with our wide network in China’s steel industries, BBA identified a shortlist of

suppliers/contractors. By further engaging these suppliers/contractors, BBA compiled a final list of suppliers to recommend to the client. During the bidding execution, Bateman Beijing Axis obtained sufficient support from the bidders due to our good understanding of both Chinese and Russian business culture and our proper application of networks and Guanxi.

CASE STUDY 4 – STEEL MILL: SUMMARYBidding Execution for A Top Russian Steel Group to Source Rolling Mills in China



Project Execution In an industry crowded with state-owned enterprises and government interests, a gradual approach held the most

promising long-term prospects, and based on this premise, BBA proceeded to formulate a comprehensive strategy to engage the Chinese market. Once a sourcing capability was established, BBA assisted in establishing a pilot representative office in Beijing, concentrating on improving the company's sourcing efficiency in China, as well as its ability to gain clients for its processing and bulk handling technology.

BBA facilitated the negotiation of a multi-million dollar agreement with one of China's largest heavy engineering companies, as well as with several other prominent engineering houses and manufacturers. For more than two years, the companies have been continuously sourcing various capital equipment and operational products from China, and have established strategic partnerships with 8 suppliers.

Background Bateman Beijing Axis (BBA) was approached by a global mining engineering

company to assist in the establishment of a comprehensive sourcing presence in China. The goal was to identify suitable categories of products to be sourced from China to achieve significant cost saving benefits and to establish the company's own presence in China.

CASE STUDY 5 – MINE PROCESS PLANT MILL: SUMMARYEstablishing Strategic Sourcing Infrastructure in C hina for a global mining

engineering company



The client signed a purchase contract with the preferred supplier, and discovered new business opportunities to import copper and chrome to China. BBA was appointed as representative service provider on a retainer basis, and continues to manage the trading process on behalf of the client.

Background A Chinese metal trading company intended to locate reliable direct suppliers of cobalt from Africa. Considering

the significant potential procurement risk, the company asked Bateman Beijing Axis (BBA) to assist with market research, supplier identification, sourcing trips and negotiations.

Project Execution BBA conducted in-depth research on African cobalt sourcing markets. Analysing import options and developing a

comprehensive list as well as a shortlist of potentially suitable suppliers, BBA also conducted extensive interviews and multiple visits to potential suppliers. Subsequently BBA presented a detailed report to the client containing findings and recommendations of suitable suppliers and transaction models. BBA also accompanied the client to visit all companies on the shortlist in South Africa, the Democratic Republic of Congo and Zambia, and supported the client during the subsequent negotiations.

CASE STUDY 6 – ORE AND CONCENTRATE: SUMMARYStrategic Cobalt Ore Sourcing from Africa



Procurement for a new processing plant for recovering uranium in Africa

Procurement for equipment and plant for an Iron ore processing plant in Africa as well as the mine to port railway system and harbor construction

Investigation of the export opportunity for Coal Washing Plant in China for a leading global manufacturer

Sourcing a chemical complex for an Australian rare earth producer in Australia

Conducting oil sands equipment sourcing for an international engineering company in China

Sourcing mining equipment for a leading gold producer in South Africa

Sourcing pressure leach plant for a top engineering company in Africa

Procurement for a copper processing plant for a major Chinese resource company in Southern Africa

Procurement of Acid Coolers for a top engineering company in Africa

PROCUREMENT PROJECTS: AUG 2009 - JAN 2010



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (I)

CJ Petrow

MiningMiningMiningMiningSupply Supply Supply Supply ProductsProductsProductsProducts



R. G. Maintenance Services

CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (II)



Barnes

Group of

Companies

CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (III)

H2M

OMEGA OMEGA OMEGA OMEGA Investment ResearchInvestment ResearchInvestment ResearchInvestment Research



SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (I)



SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (II)



SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (III )



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



Kobus van der Wath

Chief Executive

� Kobus is the founder and Group Managing Director of THE BEIJINGAXIS

� He has been involved in numerous sourcing projects in China since 2002, providing high-level China sourcing strategy guidance and leadership on literally hundreds of China sourcing assignments

� Before that, Kobus was with the Boston Consulting Group (BCG) and Standard Chartered Bank Plc

� He holds an MBA from INSEAD in France and a Master of Information Technology, cum laude, from Curtin University of Technology in Australia

BATEMAN BEIJING AXIS LEADERSHIP

John Ferreira

Chairman

� Mr John Ferreira was appointed as Executive Chairman of Bateman Engineering in October 2009

� He started his career in South Africa at Iscor (today Mittal Steel) as an engineer in training and joined Alusaf two years later

� Later he was appointed as General Manager of Ferrometals, a position he held until he was promoted to Vice President in 2003

� John has a B Eng (Metal) from the University of Pretoria and a Masters in Business Leadership from the University of South Africa

Lilian Luca

ChiefOperating Officer

� Lilian has managed numerous procurement projects in steel, mining and the non-ferrous metallurgy industry in China; he established THE BEIJING AXIS’ presence in Russia

� Lilian’s previous work experience includes line management positions in the Russian consumer goods markets, Strategy Director with WBD in Moscow, as an associate with McKinsey & Company in Russia and in the US

� Lilian holds a BA degree in Economics and International Relations and an MBA degree from INSEAD, France



BATEMAN BEIJING AXIS EXECUTION TEAM MANAGERS

Lixiong Yang

GM: International Procurement

� As GM of International Sourcing for Bateman Engineering N.V. in China, he has managed several mining equipment sourcing projects of high complexity

� Yang also has 20 years of experience in PetroChina & SINOPEC, where he was involved in EPC projects with responsibilities for procurement

� International experience in Africa, Middle East, Asia and Canada

� Significant project management experience on multi-disciplinary projects around the world

� MBA degree

DianaWang

Manager:International Procurement

� Manager of TBA China Sourcing Unit for more than 5 years, Diana has extensive sourcing experience, having managed numerous procurement projects for commodities and industrial goods such as mining trucks, crushers and cranes

� Diana has qualified as a Certified Purchasing Manager

� She holds a BCom Hons International Economics & Trade (BNU) degree, and a BA English Literature degree, both from Beijing Normal University

PaulWilliams

SGM: International Procurement

� Chief Representative of Bateman Engineering N.V. in Beijing, Paul has a solid background in underground gold mining and engineering across Africa and China

� In China, he has conducted audits on several explosives manufacturing facilities, managed a production facility of coal processing equipment, and performed numerous supplier vetting assignments and sourcing projects

� Paul holds a B. Eng. (Honours) Mining Engineering Degree



Nitesh A. Dullabh

GM:Africa

Cheryl Tang

GM:China

� Cheryl has more than ten years of sourcing experience in China

� She has managed numerous procurement projects for capital equipment and industrial goods across many sectors and for many international clients

� Her particular strengths lie in the areas of project management, negotiation and trouble-shooting

� MBA degree from Birmingham Business School, Cert Proc Mgmt

� Nitesh has strong facilitation, project management, report writing and interpersonal skills. He also has extensive knowledge and interest of macro and micro economic/political and social developmental issues

� MBA from Henley Management College in the UK, MA in International Relations from Rhodes University and a BA from the University of Durban-Westville

� Javier joined us as Senior Consultant in 2008

� Before he worked as Fin. Manager for a leading European manufacturer in its Beijing Branch. He Also worked as Market Analyst for a Foreign Trade Agency in Beijing

� With more than 5 years experience in China, he holds a BA B.Mgmnt and BA Econ (Univ. Valencia, U.K. Leuven)

� Haiwei has the integrated experience in China sourcing and China strategy

� He is good at managing domestic and international clients relationship.

� His marketing capabilities enable the constant development of the company

� He has acquired BA(Hons) Business Administration from London South Bank University, UK

HaiweiHuang

Manager: China BD (International Marketing Coordination)

Javier CuñatManager: Strategy, Research/KM (International Strategic Development)

BATEMAN BEIJING AXIS REGIONAL MANAGEMENT AND BUSINESS DEVELOPMENT



STRUCTURE

Chairman/CEO/COO

Procurement(Bateman & External)

Paul Williams

Bulk Commodity Trading

Business Development Finance/HR/IT/AdminSourcing Strategy,

Research & KM

Supplier ID,Eval.,SelectionPre-qualification

QA/QC & TechnicalExpediting

Commercial, Negotiation, Contracts

Logistics

ChinaCheryl Tang/Huang HW

AfricaNitesh D / Mitch C / Jackie L

Tollie Nel

AustraliaKvdW/DougH

FrankP

Global Project Execution Support from Bateman and T HE BEIJING AXIS:

Johannesburg/Perth/Brisbane/Moscow/Bangalore

Canada/Santiago



Who We Are

What We Do


How We Operate

Track Record

Clients

Our People


AGENDA



CONTACTS AND GLOBAL FOOTPRINT

BATEMAN BEIJING AXIS

Beijing, ChinaSuite 22D, Pine Court Jin Dao Hua Yuan Xi Ba He Nan Lu, Chaoyang DistrictBeijing 100028, China+86 10 6440 [email protected]

Johannesburg, South AfricaNo. 1 Kramer Rd. Bedfordview Johannesburg 2007South Africa +27 11 201 [email protected]

Perth, Australia Suite 2/93 Francisco Street Belmont, WA 6104Australia +61 8 9365 9400

Brisbane, Australia Level 3 Kings Row40 McDougall StreetMilton (Brisbane), QLD+61 7 3367 1169

Moscow, Russia5, 1st Derbenevskiy pereulokMoscow Russian Federation 115114+7 495 787 [email protected]

Bangalore, India65&65/1, Sarakki Industrial Layout, 13th Cross Road, J.P. Nagar, 3rd Phase BangaloreKamataka, India 560078 +91 80 3048 5211

Calgary, CanadaBay 4A, 2016 25th AveNE, Calgary, AB.T2E 6Z4, Canada +1 403 291 4815

Santiago, ChileGalvarino Gallardo 1690Providencial, Santiago+56 2 650 4700

Bateman Beijing Axis has a primary focus on capturing advantage in/from China. However, via the methodologies and experience that we have developed globally, along with a strong presence in many key low cost developing economies, we also provide strong and comprehensive procurement services in countries such as India, Russia and CIS in cases where these countries’ supplier-bases offer better value.

Beijing

Hong Kong

PerthJohannesburg

Bangalore

Singapore

Moscow

London

Santiago

Calgary

Brisbane

BBA Capability Statement May 2010

Documents

global sourcing

china bridge

tba china strategic

global leader

bateman engineering

tba china capital advisors

concept engineering

interventionin sourcing