Dyno Nobel Explosivos Chile Successful Case InvestChile – CORFO.

Dyno Nobel Explosivos Chile

Successful Case InvestChile – CORFO

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Objectives and Scope

Share the experience of the participation of Dyno Nobel in Investment Attraction Program of CORFO, InvestChile.

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Agenda

Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

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Agenda

Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

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Dyno Nobel - Origin

Company with more than 150 years of history.

Its origin dates back to the invention of dynamite and the detonator made by our founder Alfred Nobel.

Alfred Nobel was the promoter of the Nobel Prizes each year since 1901 are awarded to people who have made outstanding contributions to society in the areas of Literature, Physics, Chemistry, Medicine, Economics and Peace.

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Dyno Nobel – Recent History Dyno Nobel was purchased in 2008 by Incitec Pivot Limited (ASX –

IPL) an ASX Top 50 company. Incitec Pivot is a chemical manufacturer supplying agricultural fertilizers and industrial chemicals for Australian and international markets.

Fertiliser51%AN

29%

IS11%

Boosters & Dynamite

4%

Packaged2%

Other3%

IPL Share Price (AU$) - XJO

Source : www.asx.com.au

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Dyno Nobel – Who Are We?

Dyno Nobel is a leading supplier of industrial explosives and blasting services to the mining, quarrying, seismic and construction industries.

Dyno Nobel is the market leader in North America – the largest explosives market in the world – and the second largest supplier in Australia – the third largest explosives market in the world.

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Dyno Nobel – Where Are We?

Dyno Nobel has a leading position in the largest markets globally and has started to enter other high growth markets

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Dyno Nobel – Our ProductsComplete Shot & Blasting ServiceExplosives and Inition Systems

Blasting Engineering - continuous improvemen

Rock Fragmentation Consulting(Productivity, cost and safety improvement)

ANFO

Titan® Bulk Emulsions

Packaged Explosives

NONEL ®

Electric Super

Primacord ® & Primaline ®

Trojan® Cast Boosters

Oil & Gas Explosives

Seismic Explosives

Electronic Detonator

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Dyno Nobel – Where Are We Going?

Dyno Nobel is renowned for its excellent safety performance and as a provider of innovative explosive products and services, which together deliver groundbreaking performance for its customers.

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Dyno Nobel – Our Resources

Dyno Nobel employs more than 3,000 people.

Dyno Nobel has 34 manufacturing facilities in Australia, Canada, the U.S., Indonesia, Mexico, South America, and Papua New Guinea.

Dyno Nobel has the capacity to produce over 1 million tons of ammonium nitrate annually.

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Agenda

Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

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Dyno Nobel – Austral Project

Part of the strategic plan re-entry into high growth markets.

South America is the fastest growing mining region in the next 8 years.

Projected South American Metals Mining Investment (2009 – 2017)

Fuentes : CORFO, ABARE

US$B

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Dyno Nobel – Austral Project

The first major investment of Austral Project is the installation of a initiation system plant (detonators) by industrial explosives.

Location and amounts investment of the plant conditional on: Regulations and incentives for foreign investment. Legislation on the control of explosives. Logistics and connectivity vs. target market. Availability of labor. Climatic conditions. ?

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Dyno Nobel – Austral Project

Investment ~ MUS $ 4 in the Region of Coquimbo Chile.

Safety standards and quality control "outstanding."

Manufacture of pyrotechnic detonators, 1 million und / year.

First manufactures electronic detonators in LA: 500 000 und / year.

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Dyno Nobel – Austral Project

Investment Promotion Programme in High Technology

Objective

Support investment decisions in high-tech regions (associated with clusters, IT, Biotechnology, etc..).

What is?:

Co-financing is non-refundable pre-investment studies, training human resources, investment in fixed assets, lease property in the long term.

Beneficiaries:

Foreign company, a project of high technology, real investment minimum of $ 500,000.

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Aplication Program for Promotion of Investment in High Technology

Línea Cofinancia

Todo Chile. Cofinanciamiento Estudios de Preinversión

Estudios ArquitectonicoTodo Chile” Subsidio a Estudios de Preinversión Tope US$60.000 (region)

HT 2. Puesta en marcha Obtención de permisos

HT 3. Formación de Recursos Humanos

Formación de Recursos HumanosHasta el 25% del sueldo bruto anual, con un tope máximo de US$ 5.000 por trabajador

Hasta el 30% del sueldo bruto anual, con un tope máximo de US$ 25.000 por trabajador (P/E)

HT 4 Inversión Activos Fijos Inmovilizados

Inversión en Activos Fijos Inmovilizados realizada en proyecto – Equipo EspecializadoMáximo 40% de la inversión de activos fijos (Tope de US$ 2.000.000)

Dyno Nobel – Austral Project

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Línea Cofinancia

HT 5. Arrendamiento de Inmuebles a Largo Plazo

Contrato por propiedad de tercerosMáximo 40% de la renta. (Tope de US$ 1.000.000).

HT 6. Arrendamiento de Inmuebles de la Corporación

Uso de inmuebles de propiedad de CORFO – N/ADescuento de la renta entre 1% y 100% sobre el valor de m2 a arrendar

HT 7. Capacitación de alta especialización

Capacitación por expertos no fácilmente disponibles en el mercado nacional – (USA & RSA Training) Conjunto de actividades que permitan identificar, capacitar y/o reclutar profesionales chilenos extranjeros de Alta Especialización. 50% del costo de un Programa de Capacitación, por una sola vez. Tope máximo de US$ 100.000.

Dyno Nobel – Austral Project

Aplication Program for Promotion of Investment in High Technology

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Aplication Process

Dyno Nobel – Austral Project

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Dyno Nobel – Austral Project

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MaximunHT - 1(Todo Chile)

HT - 2 HT - 3 HT - 4 HT - 5 HT - 6 HT - 7TOTALUSD $

USD $REQUESTED 52.000 30.000 157.581 599.145 489.783 N.A. 49.970 1.378.479

USD $ APPROVED 44.000 18.050 94.812 360.490 0 N.A. 30.066 547.418% APPROVED 85% 60% 60% 60% 0% 60% 40%

CORFO's High Technology Investment Inccentives

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Agenda

Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

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Conclusions and comments

Dyno Nobel Chile – Next Steps: Expand product portfolio from the set global. Expand scope of services incorporating Asia Pacific and North America Know – How.

Complete Shot & Blasting ServiceExplosives and Inition Systems

Blasting Engineering-continuousimprovemen

Rock Fragmentation Consulting(Productivity, cost and safety improvement)

ANFO

Titan® Bulk Emulsions

Packaged Explosives

NONEL ®

Electric Super

Primacord ® & Primaline ®

Trojan® Cast Boosters

Oil & Gas Explosives

Seismic Explosives

Electronic Detonator

Dyno Nobel Explosivos Chile

Martin Pierola

Commercial Manager

Office: +56 2 2314558 – 2313542 | Mobile: +56 9 77664504

mailto: [email protected]

http://www.dynonobel.com