Presentation by Jonathon Forbes, Director of Industry Development SACOME

1. Infrastructure: What the mining industry needs Presentation by Jonathon Forbes, Director of Industry Development SACOME

2. Who is SACOME? • An industry representative body • Funded by industry for industry • The peak body for Government/Industry interaction/collaboration

3. What does SACOME do? • Influence Government policy • Promote the industry • Assist industry • A Resources Industry Strategic Plan

4. South Australian Resource Exports Resource Exports are the largest single sectorcontributing to South Australian exports, at over a third (39%) of total state exports of $10.8bn Resources, 12% $1.10bn Resources, 37% $3.97bn Agriculture, 35% $3.06bn Wine, 11% $1.14bn Wine, 19% $1.62bn Agriculture, 25% $2.71bn 2003-2004 Total Exports = $9billlion 2012-2013 Total Exports = $10.8billlion

5. Resource Industry Snapshot 2013 • 19 major Mines • 4 major Hydrocarbon Basins • Employment 13,135 • Exploration AU$600m p.a. • Export Revenues 39% AU$4.3 bn • Over 30 exciting Mineral and Energy Projects

6. SACOME Infrastructure Study – Key Findings (2007)

7. RESIC Infrastructure Study – Aurecon (2009)

8. RESIC Infrastructure Study - Aurecon (2009) Recommendation– that a more detailed study of the infrastructure demands, capacities and the potential clustering and network opportunities for these input and output infrastructure types is required to allow a more detailed analysis of commercial opportunities to develop and share infrastructure. Data from this analysis will assist RESIC in determining and prioritising their activities in planning future infrastructure.

9. RESIC Infrastructure Study – Parsons Brinkerhoff (2011) • Eyre Peninsula Mining Sector demand for:

10. RESIC 2011 Study – Recommendations • Infrastructure Corridors and Utility Hubs • Development of 3 new deep sea ports / rail & road logistics • Electricity Infrastructure – Eyre Peninsula (275kV augmentation by end of 2016) • Water resources mapping – priority to Eyre Peninsula • Govt facilitation of investment in resources infrastructure

11. Regional Mining & Infrastructure Project (RMIP) – Deloitte (2013) • The State Govt received $1.5m from Commonwealth Regional Infrastructure Fund for the RMIP project . Managed by DPTI. • Deloittes contracted in Jan 2013 • The project has developed three regionally specific plans that are integrated within and across the regions of: • the Far North, • Eyre and Western, and • Yorke and Mid North/Braemar provinces

12. Regional Mining & Infrastructure Project (RMIP) – Deloitte (2013) • Builds on the previous work by outlining details of infrastructure solutions including cost & pros and cons. • e.g. Energy: the EP & Western Region report outlined six different options for supplying power to the EP to enable mines to access energy needs. • Outlines six indicative business cases on a variety of specific infrastructure issues across the State • Final report is confidential and yet to be released by State Government.

13. Centrex Metals – Eyre Iron Magnetite project • Joint Ventures between WISCO (Eyre Iron JV) and Baotou Iron & Steel Group (Bungalow) • Resources from Eyre Iron & Bungalow mine projects to port via slurry pipeline. • Resources from Wilgerup DSO Hematite via road to port. • 5Mtpa Magnetite from Fusion Eyre Iron JV • 5Mtpa Magnetite from Bungalow JV project

14. Centrex Metals & WISCO – Port Spencer • Original plan for a capesize capable port. • New plan utilises a trans-shipment method, as utilised by CSL at Arrium port in Whyalla. • Reduced Jetty length from 515m to 200m • Reduced capital cost to $142 million • Reduced operational costs

15. Centrex Metals & WISCO – Port Spencer • Original option for a Cape size vessel port. • Current PFS identified transhipment option

16. IronRoad – Central Eyre Iron Project • Initial 12.4 Mtpa Magnetite Iron concentrate operation. Expansion plans to 20Mtpa. • Rail link to project using standard gauge - potential links to national network. • Port project to can either be stand alone or multi-user facility. • Electricity from upgraded 275kV line. • Water from a dedicated 27GLpa desalination plant.

17. IronRoad – Cape Hardy • 30Mtpa capable Cape Size port • Potential multi-user facility

18. IronClad– Wilcherry Hill Iron Project • Stage 1 producing 1Mtpa of DSO hematite, growing to 3Mtpa by stage 3. • Resources from Wilcherry Hill project to port via road haulage. • Public roads will be upgraded to suit the double road train configuration. • Port will utilise a trans-shipment method using covered shipping containers.

19. IronClad – Lucky Bay • 1-3Mtpa capable Trans-shipment port

20. Ports on the Eyre Narrow Gauge rail line Pt. Bonython Arrium Whyalla upgrade Port options Iron Ore Mine, Project, Prospect, Occurrence Current and Potential Port projects

21. So we know about the ‘what’, now for the ‘how’...

22. State Govt role... • Constantly look for efficiencies in approvals process across all relevant Govt departments. • Work closer with industry to look for ways to get projects up on a regional basis – tightly focussed working group - working to agreed timelines • Examine ways to share risks with the private sector where a project has wider economic benefits to the State e.g. viability gap funding, minimum guarantees. • Look for ways to involve the Federal Govt – I.A.

23. Local Govt role... • Lobby State Govt to establish a “Eyre Peninsula Mining & Community Development Taskforce” as recommended by SACES EP Mining Impact Study to: -provide a single and strengthened forum for information sharing as to the development of mine sites, infrastructure and community impacts; - to assist councils in preparatory planning for housing and support services; - to provide a focus to all State agencies activity as a result of mining proceeding to support EPLGA & RDA..... • Publicly support the mining industry at every opportunity.

24. “We want to be moving at the speed of business, not the speed of government” Paul Heithersay: ‘Resource Stocks’ magazine Jan/Feb 2014

25. Thank you.......