Mmg Ltd. · HKEX:1208
Mmg — 33rd Mining Convention (Perumin) 2017
33 slides from Mmg's conference presentation, Sep 22, 2017
Slide 1: Mining: Competitiveness and Sustainability
33rd MINING CONVENTION Suresh Vadnagra Minera Las Bambas MINING: COMPETITIVENESS AND SUSTAINABILITY 18 - 22 SEPTEMBER 2017 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN AREQUIPA – PERU 1
Slide 2: Disclaimer
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (internal or external to your organisatio
Slide 3: About MMG Limited
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY About MMG Limited • Global base metals mining company with a focus on copper and zinc. • Mining operations in Australia, Asia, Africa and the Americas. • Headquartered in Melbourne, Australia. • Australian management culture. Experien
Slide 4: About the Joint Venture
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY About the Joint Venture • MMG led the joint venture that acquired Las Bambas on 31 July 2014. • The joint venture’s structure is: MMG (62.5%), GXIIC (22.5%) and CITIC Metal (15%). • The joint venture operates Las Bambas, adhering to M
Slide 5: Globally diversified portfolio of base metal operations and projects
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY We have a globally diversified portfolio of base metal operations and development projects. 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 5
Slide 6: MMG in Peru: Las Bambas
33rd MINING CONVENTION MMG in Peru: Las Bambas MINING: COMPETITIVENESS AND SUSTAINABILITY 18 - 22 SEPTEMBER 2017 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN AREQUIPA – PERU 6
Slide 7: Platform for MMG's growth
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Platform for MMG’s growth Our growth strategy is focused on: • the identification of opportunities to gain potential from our existing assets; • the pursuit of organic growth opportunities based on our projects and exploration; • the
Slide 8: Peru: Platform for MMG's growth
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Peru: Platform for MMG’s growth What MMG saw in Peru and Las Bambas: • High geological potential • Qualified personnel • Stable rules of the game (EIS, permits and taxes) • Political stability • Monetary stability • Security The acqui
Slide 9: Las Bambas: A glance at the operation
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Las Bambas: A glance at the operation Road Railway • It is located in Cotabambas, Apurímac region, Peru. • It has three main deposits: Ferrobamba, Chalcobamba and Sulfobamba. • It produces clean copper concentrate with gold, silver an
Slide 10: Las Bambas has invested in improving the roads
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Las Bambas has invested in improving the roads Investment: US $200 million (fully financed by Las Bambas) This action required reaching agreements with 33 communities and land holders. Completed in 2011 1 8 - 2 2 S E P T E M B E R 2 0
Slide 11: Micro-paving of road to mitigate environmental impacts
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Application of micro-paving on the road to mitigate environmental impacts Investment: US $30 million (fully financed by Las Bambas) Application of micro-paving in all the towns, totalling 83km 2016-2017 1 8 - 2 2 S E P T E M B E R 2 0
Slide 12: Geological potential
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Geological potential • The skarn-porphyry deposits, such as those of Las Bambas, are located within the Eocene- Oligocene Strip of the Andahuaylas-Yauri Belt. • This belt hosts several important projects, such as Haquira, Quechua, Con
Slide 13: Las Bambas Milestones
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Las Bambas Milestones Twelve years from the acquisition of mining rights to the commencement of commercial production. Xstrata Copper Completed Completed Feasibility Held public hearing The government Engineered roads Glencore became
Slide 14: Principles of the MAC Model for social development
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY All agents are responsible for development: the MAC Model Private sector 3 principles: Social Management Principles Central government NGOs Multi-agent: gathers the largest number of agents in a region. • Inclusion and dialogue with s
Slide 15: Social Outreach
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Social Outreach Regional Provincial District Community 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 15
Slide 16: Social Outreach
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Social Outreach Regional Provincial District Community 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 16
Slide 17: Community Outreach: Resettlement Process
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Community Outreach: Resettlement Process Defining the scope Resettlement plan Compliance with Livelihood and methodology of and commitments agreements and Restoration displacement 2009-2010 transfer process Program 2005-2008 2011-2015
Slide 18: Fuerabamba: Before and After
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Fuerabamba: Before and After 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 18
Slide 19: Fuerabamba: Before and After
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Fuerabamba: Before and After 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 19
Slide 20: Fuerabamba: Before and After
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Fuerabamba: Before and After 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 20
Slide 21: Nueva Fuerabamba
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Nueva Fuerabamba 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 21
Slide 22: Nueva Fuerabamba: educational infrastructure
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Nueva Fuerabamba: educational infrastructure 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 22
Slide 23: Nueva Fuerabamba: community infrastructure
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Nueva Fuerabamba: community infrastructure 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 23
Slide 24: Social Outreach
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Social Outreach District Community 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 24
Slide 25: District Outreach: Social Development
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY District Outreach: Social Development Direct investment of more than US $ 350 million prior to commencing operations, in coordination with the communities and the government: • Improvement and construction of roads, schools, community
Slide 26: Social Outreach
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Social Outreach District Community 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 26
Slide 27: Provincial Outreach: Cotabambas and Grau
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Provincial Outreach: Cotabambas and Grau LAS BAMBAS SOCIAL FUND (FOSBAM) • The government allocated US $64.5 million to it once the International Bidding Process called by ProInversión was awarded. Education Agriculture • Managed by a
Slide 28: Social Outreach
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Social Outreach District Community 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 28
Slide 29: Regional Outreach: Internal Loan Method to Promote Works
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Regional Outreach: Internal Loan Method to Promote Works • Funding of social projects for US $160 million allocated by the national government to the Apurímac region • Support provided by Las Bambas to help implement this method and p
Slide 30: Mining has brought social development to the Apurímac Region
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY Mining has brought social development to the Apurímac Region Indicators 2007 2011 2015 Extreme Poverty 30% 24% 8% Malnutrition in children under 5 years of age 44%1/ 39% 22% Reading skills of second grade students 8% 12% 36% Mathemati
Slide 31: Challenges faced by Mining Investment in Peru
33rd MINING CONVENTION Challenges faced by Mining Investment in Peru MINING: COMPETITIVENESS AND SUSTAINABILITY 18 - 22 SEPTEMBER 2017 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN AREQUIPA – PERU 31
Slide 32: Main challenges for growth of the mining industry in Peru
MINING: COMPETITIVENESS 33rd MINING CONVENTION AND SUSTAINABILITY What are the main challenges for the growth and development of the mining industry in Peru? Source: PwC Mining Survey 2016 1 8 - 2 2 S E P T E M B E R 2 0 17 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN 32
Slide 33: Mining: Competitiveness and Sustainability
33rd MINING CONVENTION MINING: COMPETITIVENESS AND SUSTAINABILITY 18 - 22 SEPTEMBER 2017 UNIVERSIDAD NACIONAL DE SAN AGUSTÍN AREQUIPA – PERU 33