Mining and gas exploration in the Kimberley

1. 23 September 2009 www.cmewa.com 1 Mining and gas exploration in the Kimberley Reg Howard-Smith Chief Executive

2. Resources industry has long history in the Kimberley 1885 discovery of gold near Halls Creek 1951 first shipments of iron ore from Cockatoo Island 1970s - 1980s diamond and zinc/lead deposits discovered and mines commissioned at Argyle and Cadjebut 2007 recommencement of iron ore mining at Yampi Sound (previous operation ran 1959 – 1993) www.cmewa.com 2

3. A billion dollar industry Total value of production for the region in 2008 was $1.1 billion Nickel, Cobalt and Diamonds - $708 million Iron Ore and Gold - $341 million Copper, Lead and Zinc - $112 million Other - $9 million www.cmewa.com 3

4. Putting resources in perspective The Kimberley Region covers more than 46 million hectares of which 141,919 ha (or 0.3%) is taken up with Mining Leases, State Agreement Mining and Mineral Leases The Pilbara Region covers nearly 55 million hectares of which 828,748 ha (or 1.5%) is taken up with Mining Leases, State Agreement Mining and Mineral Leases Pilbara = a $32 billion industry (total value of production in 2008) www.cmewa.com 4

5. www.cmewa.com 5 Argyle Diamond Mine (Rio Tinto) Operating since 1985 World’s largest supplier of natural coloured diamonds Produces diamonds in a range of colours including white, champagne and pink

6. Savannah Project (Panoramic Resources) Underground nickel mine + processing plant Located 240 km south of Kununurra Since commissioning in August 2004, the Savannah Project has produced over 3.3 million tonnes at 1.2% nickel for 38,700 tonnes contained nickel Concentrate exported to China www.cmewa.com 6

7. Cockatoo Island iron ore (Cliffs Natural Resources / HWE Mining joint venture) The Cockatoo Island Project is a 50/50 Joint Venture between Cliffs Natural Resources and HWE Mining that commenced in 2000 Iron ore was first discovered on Cockatoo Island in the 1880s by pearlers BHP mined iron ore at Cockatoo Island from 1951 – 1986 Cockatoo Island produces a single high iron product known as Cockatoo Island Premium Fines. www.cmewa.com 7

8. Future prospects / potential for the region Coal Bauxite Base metals Uranium 8

9. Browse Basin LNG development Browse Basin lies entirely offshore north of Broome and covers approximately 140 000 km2. Exploration commenced in 1967 Regarded as one of Australia’s most hydrocarbon-rich basins Combined gas reserves over 700 Gm3, but have yet to be developed. Main obstacle to their development is isolation, being almost 300 km from the mainland and in 300–500 m of water www.cmewa.com 9

10. Indigenous engagement Several companies in the region have developed partnerships with indigenous communities: Argyle Participation Agreement Emerging partnership between Kimberley Diamond Company and the Bunuba people Panoramic Resources identifying potential opportunities www.cmewa.com 10

11. Tourism and mining can co-exist www.cmewa.com 11 Best example we can look to is South West Major mining precinct AND Leading tourism precinct

12. Mining in the South West Coal Mineral sands Tin, Tantalum and Spodumene Gold Bauxite / alumina (Peel region) www.cmewa.com 12

13. www.cmewa.com 13 Mine rehabilitation Alcoa a world leader Mines and rehabilitates c.600 hectares of jarrah forest each year in the Darling Range   14,500 hectares have been revegetated and restored to date Rehabilitation is becoming difficult to distinguish from the surrounding forest 

14. Looking to the future Outlook for the Kimberley New jobs, new investment Retaining the unique character of the region www.cmewa.com 14

15. www.cmewa.com 15 For further information please contactReg Howard-SmithThe Chamber of Minerals and Energy of Western Australia IncLocked Bag N984, Perth WA 6844Telephone: (08) 9325 2955Facsimile: (08) 9221 3701Email: chamber@cmewa.com