Masan Group Corporation · HOSE:MSN
Masan — Masan Resources — Investor Presentation (July 2011)
47 slides from Masan's investor presentation, July 2011
Slide 1: Masan Resources – Nui Phao Project
Masan Resources Nui Phao Project July 2011
Slide 2: Contents
Contents Nui Phao an Ideal Platform for Building Masan Resources Asset History and Transaction Overview Significant Value Enhancement in Nui Phao Since Acquisition World Class Management Team Key Licenses and Approvals Community Environmental Management Well Defined Resources Infra
Slide 3: Nui Phao an Ideal Platform for Building Masan Resources
Nui Phao an Ideal Platform for Building Masan Resources 3
Slide 4: Nui Phao a Unique Asset of Scale That Has Made Significant Progress
Nui Phao a Unique Asset of Scale That Has Made Significant Progress Summary One of the largest tungsten mines in the world with significant deposits of fluorspar, bismuth and copper Unique Asset Polymetallic mine provides exposure to diverse basket of commodities Located in Thai Nguyen Provinc
Slide 5: Asset History and Transaction Overview
Asset History and Transaction Overview 5
Slide 6: Nui Phao History – Significant Progress Made Prior to Acquisition
Nui Phao History – Significant Progress Made Prior to Acquisition 2010 Masan Group establishes Masan 2007 Resources and Dragon Capital acquires Nui Phao 2005 acquires and delists EIA completed and TIberon 2001-2004 approved. Final Mineralization feasibility study delineation and completed. Mining me
Slide 7: Significant Value Enhancement in Nui Phao Since Acquisition
Significant Value Enhancement in Nui Phao Since Acquisition 7
Slide 8: Recent History - Value Enhancement Timeline
Recent History - Value Enhancement Timeline Jan 2, 2011 Signed definitive agreements with Dec 17, 2010 Vietnam Development Deal signed with Bank for a senior Mount Kellet for secured facility for the investment for 20% development of Nui stake in Masan Phao Oct 15, 2010 Resources Acquired remaining
Slide 9: Critical Items De-risked
Critical Items De-risked Masan Resources has successfully delivered on the critical project de-risking activities, and demonstrated our business building capabilities to capital providers Item Current Status Hired Dominic Heaton as CEO, all key management roles filled with experienced industry p
Slide 10: Visible Progress on Site Demonstrates Commitment to Project
Visible Progress on Site Demonstrates Commitment to Project Visible progress at the project site demonstrates Masan Resources commitment and brings confidence in the project with Nui Phao staff, the Dai Tu Community and the Government Item Current Activities Since acquisition, Nui Phao has taken
Slide 11: World Class Management Team
World Class Management Team 11
Slide 12: Masan Resources/Nui Phao Organization Chart
Masan Resources/Nui Phao Organization Chart Dominic Heaton CEO Masan Resources Vu Hong Dale Smith Craig Bradshaw Wilson Soon Business Dty. General Construction Operations Sales & Marketing Deputy CFO Development Director – C&R Director Director Vu Xuan Son Darryn McClelland Mike Payne Ms Yen C&R Pro
Slide 13: Professional Management Team With Extensive Regional Experience
Professional Management Team With Extensive Regional Experience Mr. Dominic Heaton Chief Executive Officer Australian. Responsible for developing Nui Phao, lead exploration activities and build Masan Resources into a scale multi-asset resource company 20+ years of mining experience in Southeast
Slide 14: Key Licenses and Approvals
Key Licenses and Approvals 14
Slide 15: Key Licenses and Approvals in Place
Key Licenses and Approvals in Place Item Current Status New Investment Certificate recognizing new ownership and converting Nui Phao into wholly Investment Vietnamese-owned enterprise issued by Thai Nguyen Provincial People’s Committee on July Certificate 21, 2010 Investment Certificate valid ti
Slide 16: Community
RESOURCES Community
Slide 17: Social Management Planning Meets Equator Principles
Social Management Planning Meets Equator Principles Summary Planning based on Equator Principles and is focused on 3 specific areas: Resettlement Action Plan (RAP) Community Development Plan (CDP) Public Consultation and Dissemination Plan (PCDP) All 3 plans have been accepted by the Gover
Slide 18: Resettlement Action Plan – Investing in Our Community
Resettlement Action Plan – Investing in Our Community RAP Summary The Resettlement Action Plan has been developed with the following objectives in mind: Minimize impact of land acquisition and other socially adverse impacts Ensure that the affected people maintain or improve their economic sta
Slide 19: Compensation and Resettlement Nearing Completion
Compensation and Resettlement Nearing Completion Legend: DMS Completed Land Recovery Decision Issued Compensation Plan Approved Full Payment Made Land Transferred Military Area C&R Summary1 Land Recovery DMS Compensation Land Fully Land Status as of Decision Completed Plan Approved Paid
Slide 20: Resettlement Sites Provide Excellent Infrastructure
Resettlement Sites Provide Excellent Infrastructure Summary1 725 households to be relocated for the project Of this 378 households prefer to self-relocate, 325 (86%) have already moved out of the project area Excellent infrastructure provided at resettlement sites: Asphalt roads with paved s
Slide 21: Economic Restoration To Be Provided For 3,500 People
Economic Restoration To Be Provided For 3,500 People Summary As part of RAP, economic restoration provided for ~1,700 people through several initiatives such as vocational training, farming, animal husbandry and employment Plan to extend activities to ~3,500 people, including direct employment i
Slide 22: Environmental Management
Environmental Management 22
Slide 23: Environmental Management As Per International Standards
Environmental Management As Per International Standards Summary Environmental Impact Assessments approved by both MONRE and World Bank ESIA developed in accordance with Equator Principles EIA/ESIA Environmental management to be reviewed annually for compliance by third party groups Commenced
Slide 24: Environmental Management As Per International Standards
Environmental Management As Per International Standards Summary Sulphide rich tailings and selected mine waste to be stored under water in a dedicated storage facility ARD/Tailings Storage and containment facilities to meet national and international design standards as part of the permitting pr
Slide 25: Well Defined Resources
Well Defined Resources RESOURCES 25
Slide 26: Nui Phao Resource Highlights
Nui Phao Resource Highlights Summary Ore body strike tested over ~1600m and open to the west Ore dips ~45o to the north Ore zones 10’s of meters wide and up +150m Low strip ratio of ~2.1:1 Gentle topography Barren granite to north and south. Waste dumps close to pit Western Pit ~600m Eas
Slide 27: Nui Phao Geology – Schematic Long Section
Nui Phao Geology – Schematic Long Section Summary Mineralization open to the west Planned infill drilling will increase confidence and upgrade inferred resources 27
Slide 28: Reputable Firms Have Validated Mineral Resources and Reserves
Reputable Firms Have Validated Mineral Resources and Reserves Summary 188 holes (covering over 24,000 meters) drilled to estimate resources Resource/Reserve Resource estimation carried out by AMEC (2003), in accordance with NI 43-101 standards Estimation Reserve estimate prepared by Aker Kvaer
Slide 29: Infrastructure
RESOURCES Infrastructure
Slide 30: Good Infrastructure Access
Good Infrastructure Access Access to Site Road: Site ~80 km by road from Hanoi National Road 37 connects Thai Nguyen city (provincial capital) to mine site Rail: Narrow gauge railway connects site to standard/dual gauge Vietnam Railways system Ports: Hai Phong port ~180km from site Q
Slide 31: Good Infrastructure Access
Good Infrastructure Access Infrastructure on Site Power: From 110kV line from Thai Nguyen Power, ~8km from site Temporary power for construction from existing 35kV power line that passes through mine site Water: Water to be sourced from Cong River Telecommunications: Modern fiber netwo
Slide 32: Construction
RESOURCES Construction
Slide 33: Design and Construction Under Way
Design and Construction Under Way Item Current Status EPSA signed in March 2011 with Jacobs Engineering Group, one of the world’s largest Engineering Design provider of technical , professional and construction services and Procurement Engineering design process well under way Earthworks and l
Slide 34: Production
RESOURCES Production
Slide 35: Mining and Processing
Mining and Processing Summary Conventional single open pit mine: Nominal 1,600m x 620m x 200m deep Mine Equipment – mixed 40 t fleet Drill & Blast 3.5 million tpa ore mined and processed: Work Indices – 12.2kwh/t (moderate) Abrasion Indices – 0.144 (low to medium) Flowsheet developme
Slide 36: Process Flow Diagram
Process Flow Diagram1 Crushing Grinding Copper Flotation Bulk Sulphide Bismuth Flotation Flotation Tungsten Gravity Fluorspar Bismuth Leach Recovery Flotation & Refining Tungsten Concentrate APT Plant Copper APT Fluorspar Bismuth Concentrate 1 Expected process flow, subject to further studies and mo
Slide 37: Production Statistics
Production Statistics Production Statistics Average Ore Production Item Recovery1 Grade1 Feed grade (tpa)2 Ore Throughput NA NA NA 3,500,000 Tungsten (WO3 content) 0.25% 69.0% 88.5% 7,000 Fluorspar 8.23% 76.1% 97.5% 212,000 Bismuth 0.12% 60.0% 90.0% 3,000 Copper 0.25% 87.0% 30.0% 27,000 1 Based on m
Slide 38: The Right Commodities
RESOURCES The Right Commodities
Slide 39: Tungsten
Tungsten Summary 450 Tungsten is an extremely hard metal with the highest 400 melting point of all metals and almost as heavy as gold US$/mtu 350 Given these unique properties, tungsten is virtually un-substitutable for a variety of industrial applications: 300 Cemented carbides – extremely ha
Slide 40: Fluorspar
Fluorspar Summary 450 Fluorspar is a mineral composed of calcium fluoride 400 (CaF2). Acid-grade fluorspar (>97% CaF2) is the primary US$/mt industrial source of fluorine in the world 350 Acid-grade fluorspar is mainly used for manufacturing: Hydrofluoric acid (HF) – 60% of HF is used for 300
Slide 41: Bismuth
Bismuth Summary 12 Bismuth is a non-toxic metal with one of the lowest 11 melting points among metals, very low thermal and electrical conductivity and the unique property of US$/lb 10 expanding on freezing Bismuth is used across a wide range of applications 9 that utilize these properties: 8
Slide 42: Copper
Copper Summary 11000 Copper is one of the most extensively used metals in 10000 the world, since it is among the most malleable and ductile metals, has the second highest thermal and 9000 US$/mt electrical conductivity and highly resistant to corrosion 8000 Copper is used in various ways that ut
Slide 43: Offtake Contracts
RESOURCES Offtake Contracts
Slide 44: Offtake Contracts For Fluorspar and Bismuth in Place
Offtake Contracts For Fluorspar and Bismuth in Place Commodity Details Ongoing discussions with potential offtakers. All seeking access to non-China supply Tungsten Offtaker to be a partner in the business - commit capital for and provide technical expertise towards producing value-added tungste
Slide 45: Financing Secured
Financing Secured RESOURCES 45
Slide 46: Financing to Build Nui Phao Secured
Financing to Build Nui Phao Secured Item Details In December 2010, Mount Kellett Capital Management invested US$100 mm in Masan Resources for a 20% stake, towards development of Nui Phao Equity Masan Group has committed US$25 mm towards the development of the project Vietnam Development Bank h
Slide 47: Disclaimer
Disclaimer This Presentation has been prepared by Masan Group Corporation and/or its affiliated companies (collectively, “MSN”; together with any officer, director, employee, advisor or agent of MSN, collectively, the “Preparers”) for the purpose of setting out certain confidential information in re