BBA Capability Statement May 2010

A China-focused Global Procurement House BATEMAN BEIJING AXIS A China-focused Global Procurement House Capability Statement May 2010 A Joint Venture between Bateman Engineering N.V. and THE BEIJING AXIS Ltd. -0- Projects I Equipment I Commodities

A China-focused Global Procurement House AGENDA Who We Are What We Do Services and Sector/Product Range How We Operate Track Record Clients Our People Contacts and Global Footprint -1- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS: A CHINA-FOCUSED GLOBAL PROCUREMENT HOUSE A JV between Bateman Engineering N.V. and THE BEIJING AXIS Ltd. BATEMAN BEIJING AXIS provides intelligent China sourcing solutions that balance total cost, delivery time and quality in order to achieve sustainable sourcing advantages We offer insight, impact, reliability and confidence on the basis of a highly synergistic partnership between Bateman Engineering N.V. – a global leader in the execution of feasibility work and the design, engineering, procurement and construction management of mineral processing plants; and THE BEIJING AXIS Ltd. – a cross-border business bridge to/from China focused on three principal areas: Strategy, Sourcing and Investment We work across industries but have exceptional experience in metals, mining, minerals processing, industrial machinery, chemicals, transport and automotive components BATEMAN BEIJING AXIS has multinational and integrated teams supported by head office in Beijing, providing independent solutions in a manner that is consistent with the highest international corporate governance standards attainable, and that respects the environment so as to assure sustainability -2- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN ENGINEERING AT A GLANCE Founded in 1921 Completed over 1,000 projects in more than 50 countries since 1980 Clients include major resource companies and many juniors Registered in Netherlands with presence across five continents Approximately 1500 employees Provide full range of services starting from concept engineering through feasibility study to design, engineering, procurement, erection & commissioning of working process plants Serve the full range of minerals & metals, e.g. uranium, copper, zinc, nickel, PGM metals, industrial minerals, coal, diamonds, gold & ferrous metals -3- Projects I Equipment I Commodities

A China-focused Global Procurement House THE BEIJING AXIS AT A GLANCE Founded in 2002 Completed more than 100 projects in 5 major geographical areas Clients include large international and Chinese blue chip MNC’s and SME’s Registered in Hong Kong with presence across four continents Approximately 30 employees In Strategy, THE BEIJING AXIS (TBA) China Strategy Group help clients enter new markets, expand existing markets, develop and implement new strategies, and better understand their customer base and competitive environment through analysis and intervention In Sourcing, TBA China Sourcing Unit support international firms as they exploit China’s status as a leading global supply-base; whilst at the same time supporting Chinese firms that are looking at global sourcing. We provide a comprehensive range of procurement services across the supply chain with a focus on cost savings, quality control and on-time delivery. In Investment, TBA China Capital Advisors help clients raise capital from strategic investors and advise clients on cross-border acquisition, disposal and joint-venture transactions. -4- Projects I Equipment I Commodities

A China-focused Global Procurement House SYNERGY BETWEEN THE TWO JV PARTNERS Bateman Capabilities THE BEIJING AXIS Capabilities Core project-management capability Strategic and analytical approach Leading mining process engineering technologies Extensive China sourcing experience and knowledge Large company systems, platforms and procedures Entrepreneurial culture, flexibility and speed Established networks and supplier databases Established networks and supplier databases Long history and significant experience curve Leading position as China bridge in chosen markets Global footprint Strong China presence Five years collaboration with THE BEIJING AXIS Ltd. Five years collaboration with Bateman Engineering N.V. Enhanced procurement scope: Synergy between Bateman global project engineering and technical ability and TBA China strategic and operational knowledge Greater project execution leverage: TBA marketing and research expertise provided on global platform of Bateman project experience -5- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA EXPERIENCE CURVE CREATES ADVANTAGE IN FIVE AREAS Top level management with renowned track records in the global mineral processing industry and China sourcing arena People Qualified engineers and senior sourcing consultants with recognised China knowledge and sourcing experience Specialised teams working closely with clients to ensure effective project delivery Innovative, entrepreneurial company ethos underlying all operations Bateman Beijing Axis Advantage Solid standardised processes and operating procedures Holistic risk orientation and service quality control procedures at all levels Processes Safety, Health & Environmentally-conscious supplier evaluation system Project-controlled software packages and communication systems for meeting scheduling and cost objectives Best practice knowledge management processes and tools Post-project learning, sharing and knowledge management Knowledge Benchmark data for selected industries, pre-qualified supplier databases Latest in-house innovative engineering, procurement, construction and management technology Extensive client list – large international and Chinese blue chip MNCs Track Record References reflect high client satisfaction Comprehensive list of past projects across a variety of geographies, sectors and commodities Excellent networks in China’s industrial associations, trade associations, ministries, academia ‘Guanxi’ and individual companies Global reach in mining and resources sector and supply chain industry Long-established personal connections and trust based on solid track record -6- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS PROVIDES SERVICES IN 2 BUSINESS AREAS China Procurement & Bulk Commodity Trading Bateman Beijing Axis provides intelligent China procurement services for international clients, and offers bulk commodity trading services for bulk commodity producers and users. China Procurement Services Procurement for Bateman Global Projects Procurement Bateman Beijing Axis provides comprehensive integrated procurement solutions and for Bateman support to Bateman projects that are being executed globally. For Bateman clients, this ensures cost effective project procurement solutions through the effective leveraging of Global Projects China and other low cost country sourcing in the supply chain Procurement for Independent External Clients Globally Bateman Beijing Axis provides sourcing and supply chain services to external clients by Procurement leveraging our people, processes, knowledge, track record/experience and networks. Our for Independent solutions are comprehensive and encompass supplier identification, evaluation, External Clients prequalification, selection, negotiation, commercial/contracting, transaction monitoring, Globally QA/QC, expediting and logistics. The emphasis is on solid project management, holistic risk management and strategic relationship management Bulk Commodity Services Bulk Commodity Procurement, Marketing, Trading and Financing By leveraging the knowledge and networks of the 2 JV partners, Bateman Beijing Axis Bulk Commodity provides bulk commodity trading solutions. We support bulk commodity producers (i.e. Procurement, metals, minerals, softs, etc.) with their international marketing efforts and we assist bulk Marketing, Trading commodity users with their procurement efforts. In selected cases, we also do financing and Financing across the transaction chain -8- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA CHINA PROCUREMENT SERVICES BBA China Procurement Services China Sourcing Competitiveness Analysis & Needs Analysis Comprehensive Project Management Strategic Relationship Management Supplier Identification, Evaluation and Selection Holistic Risk Management Supplier Engagement Commercial Contracting Transaction Monitoring and Assistance QA/QC, 3rd Party Management, Expediting Logistics Assistance -9- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (I) Needs Analysis & China Sourcing Competitiveness Analysis Formulate a successful China agenda with regard to global procurement Critical China-focused research and analysis on the macro as well as micro situation Integrating with client’s business plan, overall strategy, and specific procurement needs for holistic solutions that create value and mitigate risk Supplier Identification, Evaluation and Selection Established methodology for choosing the right supplier Based on on-the-ground research and extensive networks High-level filtering of suppliers followed by more specific filtering Supplier Engagement Comprehensive assistance for all procedures of engaging with suppliers by on-the-ground team Ensure that all documents are collected in time and product specifications are closely adhered to -10- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (II) Commercial Contracting Full negotiation support for price and commercial terms Support for drafting, inspecting and modifying of contracts Entrenched relationships with international and local law firms for professional advice, if required Transaction Monitoring and Assistance Complete transaction management from placement of order to completion of contract BBA acts as bridge between supplier and buyer, reduces risks caused by misunderstanding while expediting process QA/QC, 3rd Party Management, Expediting As client’s dedicated China partner, BBA sends specialised staff to visit suppliers and report back on sourcing project QA/QC assistance, on-site inspection and factory acceptance support Management of third parties when required Expediting activities to ensure project plan and timeline compliance -11- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA CHINA PROCUREMENT SERVICES IN MORE DETAIL (III) Logistics Assistance Management of shipping/freight agencies and/or recommending BBA logistics services providers to significantly reduce transportation costs and supply chain risks Strategic Relationship Management Relationship management is key in China – BBA assists clients to develop long-term and mutually-beneficial relationships with suppliers and partners in China Troubleshooting if a problem occurs; BBA assists to repair relationships and provide contract solutions in case of unexpected contingencies such as a contract-related dispute Holistic Risk Management Wide angle on risk in every stage of execution so as to mitigate overall risk profile Comprehensive Risk Management Integrated project management across all aspects of the programme, over the life of the programme -12- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA BULK COMMODITY SERVICES BBA Bulk Commodity Services Commodity Seller and Buyer Identification, Evaluation and Selection Comprehensive Project Management Strategic Relationship Management Seller Engagement for Support with Off-take Placement / Management Holistic Risk Management Buyer Engagement for Support in Securing Strategic Supply Facilitation of Commercial Contracting / Transaction Financing Support and Transaction Risk Management Sampling, Testing and QA/QC Logistics Support and Assistance -13- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE - OVERVIEW Mining & Bulk Manufacturing Industries Services Extractive Commodities Industries Automotive EPC/M Chemicals Logistics Spare Parts Contractors Minerals and Coal Metals Industrial Transportation Ores Metals Project Mining Constructors Management Machinery Electrical Capital / Fe Alloys Process Equipment Plants Mining Building/ IT/IS Metals Other Design & Services Outsourcing Construction Drafting Services -15- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE : MINING & EXTRACTIVE INDUSTRIES (I) Steel: Bars, Angles, H/I-beams, HRC/CRC, etc. Minerals and Cobalt Metals Copper Magnesium Aluminium Chrome Mining Granite Machinery Coal Iron ore Manganese Mining Safety Consulting Services Services EPC/M Contractors -16- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE : MINING & EXTRACTIVE INDUSTRIES (II) Minerals and Material Handling Equipment: Conveyors; Cranes and hoists; Metals Feeders and apron feeders; Locomotives; Rapid wagon loaders and dumpers; Ship loaders; Stackers and reclaimers; Train loaders and unloading systems; Vehicles (earthmoving trucks, trailers, forklifts, mobile cranes, etc.) Ore Dressing Machinery: Grinding mils; Centrifuges; Crushers; Filters; Flotation equipment; Hydro extractors; Magnetic separators; Mining Screens; Screw classifiers; Thickeners Machinery Steel Vessels and Structures: Agitators; Furnaces; Heat exchangers (SS and CS); Pressure vessels (SS and CS) and boilers; Tanks, towers and stacks (SS and CS); Structural steelwork Electrical Equipment: Transformers, Generators, Switchgear, Electrical cables; Motors Mining Mechanical Equipment: Blowers; Boilers; Compressors and air Services systems; Pumps; Valves Mine Consumables: Chemicals; Conveyor belting, idlers and rollers; Drill bits; Grinding media; Mill accessories (linings, girth-gear, etc.); Pipes and fittings; Rope, wire and steel cables; Pump spares; Bearings; Safety equipment; Vehicle spares -17- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE : BULK COMMODITIES Non-coking bituminous coal Coal Coke and semi-coke Coking Coal Anthracite Ores Iron ore, concentrate, non-iron pyrites, unagglomerated Manganese pres, concentrates, iron ores >20% manganese Chromium ore and concentrates Copper ores and concentrates Ferro-chromium, >4% carbon Fe Alloys Ferro-chromium, <4% carbon Ferro-silicon, <55% silicon Platinum, unwrought or in powder form; semi-manufactured forms Metals Cold rolled stainless steel, w >600mm, t 3.0-4.75mm Hot rolled stainless steel coil, w >600mm, t 4.75-10mm Hot rolled stainless steel flat, w >600mm, t >10mm -18- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE : MANUFACTURING INDUSTRIES (I) Automotive Wheel rims Polyethylene Spare Parts Tyres Chemicals Polypropylene Axles Rubber Brake linings Drums and discs Fabricated steel Suspensions Industrial Forgings Metals Castings Interiors, seats etc. Body / chassis etc. Cement (clinker/finished) Building materials Sedans Generators Transportation Buses Electrical Equipment Batteries Trailers Wires / Cables Bicycles Electric motors Motorcycles Solar panels Train components and spare parts Solar heaters -19- Projects I Equipment I Commodities

A China-focused Global Procurement House SERVICES AND SECTOR/PRODUCT RANGE : MANUFACTURING INDUSTRIES (II) Capital / Furnaces Cement (finished, clinker) Process Plants Building/ Hot rolling mill Construction Various building materials Cold mill Fasteners Casters Cranes Foil handling system Hoisting equipment EPC/M Contractors Tiles Packaging material and Various fittings Other processing machinery Bathroom / Kitchen finishing Waste management equipment and Ceramics processing machinery Medical equipment Hydraulic equipment -20- Projects I Equipment I Commodities

A China-focused Global Procurement House BBA FOLLOWS A SYSTEMATIC METHODOLOGY IN ORDER TO MITIGATE RISKS AS BEST AS POSSIBLE Only by following a systematic project methodology are we are able to provide intelligent sourcing solutions that balance total cost, delivery time and quality so as to achieve sustainable sourcing advantages Our analytical approach as well as our established networks, supplier databases and experience ensure that we are able to comprehensively manage all aspects of a China sourcing initiative in a manner that adds value and mitigates risks Our methodology is based on 12 interrelated and clearly defined steps which are applied by the members of our procurement team BBA applies 3 key principles in every single stage of our procurement methodology: 1. Comprehensive Overall Project Management 2. Holistic Risk Management 3. Strategic Relationship Management -22- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS PROCUREMENT SERVICE DELIVERY PLATFORM & METHODOLOGY Overall Project Management Holistic Risk Management Strategic Relationship Management Strategic Sourcing STEP 1 STEP 2 STEP 3 STEP 4 Analysis Procurement Supplier Systematic Supplier needs pre- Initial scoping, supplier analysis and industry evaluation of search application qualification, evaluation, due diligence China due diligence procurement & supplier of high-level and final selection identification filters & final competitive selection analysis STEP 8 STEP 7 STEP 6 STEP 5 Engagement Commercial Site Supplier Supplier engagement, process, Negotiation, inspections, engagement, client visits, testing, contracting tender sample RFQ & evaluation application of detailed filters & contract testing & tendering management standards (SOI, RFP) and negotiation STEP 9 STEP 10 STEP 11 STEP 12 Supply Chain Supply Chain Management Management Process & Support & Support Quality mgmt Coordination & Transaction monitoring, Transaction (QA/QC), assistance on Logistics site (material quality assurance, monitoring Expediting & 3rd party mgmt, expediting, 3rd party commissioning, mgmt management and logistics etc.) -23- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 1 – MINE PROCESS PLANT: BACKGROUND Project Procurement for two Sulphuric Acid Plants as Part of a World Class Mining Operation in Africa Client Leading diversified mining company Project Overview View of the acid plant The client had never sourced any equipment from China before, yet in this case the project involved the sourcing of an entire plant from China. One of BBA’s joint venture partners was contracted to supply two sulphuric acid plants for the nickel processing plant of the mining operation. After comparison with suppliers from the US, Europe, India and China, the client chose China as the preferred country to source from due to the strong savings and shortened delivery times. BBA provided a range of procurement services, including Supplier Selection, Due Diligence, Shop Design, Quality Assurance and Quality Control, Expediting, Facilitated Construction and Installation. The total project order value was USD 30 million. -25- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 1 – MINE PROCESS PLANT: EXECUTION Project Procurement for two Sulphuric Acid Plants as Part of a World Class Mining Operation in Africa Project Implementation BBA provided strategic planning in order to identify procurement risks, and a project team was set up to prepare solutions for mitigating any risks. The key issues in this case can be summarised as follows: • Chinese vs. international standards • Correct raw material selection • Drawing approval process • QA/QC • Packing and logistics methods An international team was formed which consisted of the design team, the quality inspection team, and several technology consultants. To ensure optimal quality, BBA dispatched QA/QC engineers to the supplier factories in order to monitor and provide guidance for the work execution. An advanced project control monitoring system was applied to calculate the project progress and reports were provided on a daily and weekly basis in order to avoid delays and eliminate any problems if and when they occurred. -26- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 1 – MINE PROCESS PLANT: OUTCOME Project Procurement for two Sulphuric Acid Plants as Part of a World Class Mining Operation in Africa During 2008 - 2009, BBA successfully installed at the site all the equipment listed below: 1) Actuated Dampers and the acid plant's ducting with an average diameter of 2,000mm 2) Jug Valves (used to control the temperature into the converter) of length 4,500mm and 2,200mm in diameter 3) Two Fire Tube Waste Heat Boilers with an average diameter of 3,200mm and an overall length of both passes, from inlet vestibule to outlet, of just under 20,000mm. The empty mass was 333 tonnes 4) Steam Drums 2,340mm in diameter and 11,000mm in length 5) Superheater fabricated of stainless steel with dimensions 5,200mm x 6,200mm x 8,600mm and mass 88 tonnes 6) Interpass Absorption Tower fabricated partly of carbon steel and partly of stainless steel. The bottom 10,000mm x 7,070mm diameter was carbon steel (which was brick lined on site) and the top 9,700mm x 7,600mm diameter was stainless steel with View of the acid plant a total mass of 86 tonnes -27- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 2 – INDUSTRIAL PROCESS: BACKGROUND Sourcing Strategic Raw Material and Aluminium Process Capital Equipment for SA Client JSE-listed Aluminium Company Caster working on site Project Overview The client had sourced magnesium from China through TBA China Sourcing Unit in the past. Yet sourcing large capital equipment from China was unfamiliar territory for them. BBA conducted a strategic sourcing report for the client, explaining the current Chinese manufacturing capability as well as the Chinese cost advantage while illustrating the challenges such as regulation, foreign exchange, taxation, logistics, and business culture. The report presented detailed the cost analysis from labour, raw material, and energy consumption. The client decided to source from China and BBA provided procurement services including Supplier Selection, Due Diligence, Tendering, Transaction Assistance as well as Commissioning at site. The total project order value was USD 48 million. -28- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 2 – INDUSTRIAL PROCESS: EXECUTION Sourcing Strategic Raw Material and Aluminium Process Capital Equipment for SA Project Implementation BBA implemented procurement strategies for different categories of sourcing targets, namely: • Raw materials - BBA scanned the whole market of raw material producers in China and short-listed the top ten producers in the country • Capital equipment - BBA identified reputable industry leaders and helped them bid on the project BBA applied a tender process in order to optimise the initial supplier selection. The filtering criteria was conducted via extensive communication, plant visits, external expert interviews to ensure the production quality, delivery time and cost advantage have a solid foundation. The results were recorded in a report which was submitted to the client. QA/QC was implemented by BBA engineers and the third party inspectors at the supplier site. BBA engineers monitored the entire production progress and assisted with technical communication due to the weak English skills of the manufacturer At the commissioning stage, BBA accompanied the supplier to manage the installation on site, provide consultancy to specific adjustments until the caster was able to operate smoothly. After the contract, BBA has been continuously playing a consultant role to manage the communication, risks and ongoing relationship. -29- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 2 – INDUSTRIAL PROCESS: OUTCOME Sourcing Strategic Raw Material and Aluminium Process Capital Equipment for SA The casters were successfully installed in 2008. BBA’s involvement spanned 30 months. BBA has continued to provide quarterly reports on the magnesium industry. Products sourced from China: 1) 99.95% Magnesium ingot, low Si, Ca and Na 2) Hardeners - Silicon, FeAl, CrAl, MnAl 3) Caster 4) Wire belt (Length: 8.18 m, Width: 0.7 m) Wire Diameter: 3.3mm, Pitch of wire: 8.5mm, Rod diameter: 6mm, Pitch of rods: 14mm, Working temperature: 250-300(℃), Tension in belt: 90 000N. 5) Endless Corrugated Sidewall Belt, EP630/4+1 (4+2)mm, S240-125, TC220-250 6) HFM work roll change Cylinder 7) Generator sets 8) Bearing includes IMR bearing number EE126096D/126150 and Work Roll Bearing Number 82680D/82622 9) Tool steel - Grade H11, H13, Diameter 235mm, 285mm 10) Refractory material Tips Caster working on site 11) Welded structure steel charging bucket - Weight 25MT, Steel grade Q345A 12) Spools for the rolling mill ( Foil mills) -30- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 3 – TRANSPORT/AUTOMOTIVE: SUMMARY Establishing a Sourcing and Manufacturing Presence in China for a Leading South African Truck Trailers Manufacturer Background A leading South African manufacturer of freight truck trailers approached Bateman Beijing Axis (BBA) to assist them with establishing a sourcing and manufacturing capacity in China. The need for a China presence revolved around three factors, namely the need to diversify suppliers, the need to reduce labour costs and the desire to gain a foothold in the Chinese market. Project Execution BBA conducted comprehensive research on both market dynamics and industry players and finally recommended a shortlist of 11 suppliers based on the research results and the company’s specific requirements. During business trips to China arranged by BBA, the client was able to meet with 11 suppliers. Eventually the client was able to locate suppliers for each product, and has built up exclusivity with a tire supplier. After one year's transactions, the trailer supplier passed all tests and both parties started negotiations on in-house designs manufactured in China. BBA facilitated aspects such as market research, partner due diligence, the structuring of agreements, strategy formulation to protect the client's intellectual property, and general liaison. Towards the end of 2006, agreement was reached whereby the Chinese party agreed to manufacture all trailer frames, with final stage assembly performed in the original country. In addition, the Chinese party agreed to use the client's proprietary designs to manufacture and assemble a new trailer product to be sold in China. BBA’ client will be remunerated for the use of its intellectual property through a system of royalty payments which are audited and facilitated by BBA -31- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 4 – STEEL MILL: SUMMARY Bidding Execution for A Top Russian Steel Group to Source Rolling Mills in China Background After conducting the initial research to establish the possibility and potential value of sourcing steel mill equipment from China, Bateman Beijing Axis (BBA) was authorised by a top Russian steel group to execute the bidding process in China. Project Execution Combining general market research with our wide network in China’s steel industries, BBA identified a shortlist of suppliers/contractors. By further engaging these suppliers/contractors, BBA compiled a final list of suppliers to recommend to the client. During the bidding execution, Bateman Beijing Axis obtained sufficient support from the bidders due to our good understanding of both Chinese and Russian business culture and our proper application of networks and Guanxi. A pre-bid trip was arranged to introduce the client to the major suppliers/contractors, including the biggest institute, the biggest equipment manufacturer and the most experienced contractor in supplying rolling mills. The trip proved to be productive, and subsequently the suppliers we introduced were all invited to be bidders. Then BBA was made responsible for managing the whole progress of Chinese bidders. As some of the bidders did not have any experience in bidding for a Russian project, BBA also assisted each supplier with preparing Russian documents and helped them overcome a range of language and commercial difficulties. -32- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 5 – MINE PROCESS PLANT MILL: SUMMARY Establishing Strategic Sourcing Infrastructure in China for a global mining engineering company Background Bateman Beijing Axis (BBA) was approached by a global mining engineering company to assist in the establishment of a comprehensive sourcing presence in China. The goal was to identify suitable categories of products to be sourced from China to achieve significant cost saving benefits and to establish the company's own presence in China. Project Execution In an industry crowded with state-owned enterprises and government interests, a gradual approach held the most promising long-term prospects, and based on this premise, BBA proceeded to formulate a comprehensive strategy to engage the Chinese market. Once a sourcing capability was established, BBA assisted in establishing a pilot representative office in Beijing, concentrating on improving the company's sourcing efficiency in China, as well as its ability to gain clients for its processing and bulk handling technology. BBA facilitated the negotiation of a multi-million dollar agreement with one of China's largest heavy engineering companies, as well as with several other prominent engineering houses and manufacturers. For more than two years, the companies have been continuously sourcing various capital equipment and operational products from China, and have established strategic partnerships with 8 suppliers. -33- Projects I Equipment I Commodities

A China-focused Global Procurement House CASE STUDY 6 – ORE AND CONCENTRATE: SUMMARY Strategic Cobalt Ore Sourcing from Africa Background A Chinese metal trading company intended to locate reliable direct suppliers of cobalt from Africa. Considering the significant potential procurement risk, the company asked Bateman Beijing Axis (BBA) to assist with market research, supplier identification, sourcing trips and negotiations. Project Execution BBA conducted in-depth research on African cobalt sourcing markets. Analysing import options and developing a comprehensive list as well as a shortlist of potentially suitable suppliers, BBA also conducted extensive interviews and multiple visits to potential suppliers. Subsequently BBA presented a detailed report to the client containing findings and recommendations of suitable suppliers and transaction models. BBA also accompanied the client to visit all companies on the shortlist in South Africa, the Democratic Republic of Congo and Zambia, and supported the client during the subsequent negotiations. The client signed a purchase contract with the preferred supplier, and discovered new business opportunities to import copper and chrome to China. BBA was appointed as representative service provider on a retainer basis, and continues to manage the trading process on behalf of the client. -34- Projects I Equipment I Commodities

A China-focused Global Procurement House PROCUREMENT PROJECTS: AUG 2009 - JAN 2010 Procurement for a new processing plant for recovering uranium in Africa Procurement for equipment and plant for an Iron ore processing plant in Africa as well as the mine to port railway system and harbor construction Investigation of the export opportunity for Coal Washing Plant in China for a leading global manufacturer Sourcing a chemical complex for an Australian rare earth producer in Australia Conducting oil sands equipment sourcing for an international engineering company in China Sourcing mining equipment for a leading gold producer in South Africa Sourcing pressure leach plant for a top engineering company in Africa Procurement for a copper processing plant for a major Chinese resource company in Southern Africa Procurement of Acid Coolers for a top engineering company in Africa -35- Projects I Equipment I Commodities

A China-focused Global Procurement House CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (I) CJ Petrow Mining Supply Products -37- Projects I Equipment I Commodities

A China-focused Global Procurement House CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (II) R. G. Maintenance Services -38- Projects I Equipment I Commodities

A China-focused Global Procurement House CLIENT EXPERIENCE AMONG LEADING INTERNATIONAL MNCs (III) Barnes Group of Companies H2M OMEGA Investment Research -39- Projects I Equipment I Commodities

A China-focused Global Procurement House SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (I) -40- Projects I Equipment I Commodities

A China-focused Global Procurement House SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (II) -41- Projects I Equipment I Commodities

A China-focused Global Procurement House SUPPLIER EXPERIENCE AMONG LEADING CHINESE MNCs (III) -42- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS LEADERSHIP John Kobus van Lilian Ferreira der Wath Luca Chairman Chief Chief Executive Operating Officer Mr John Ferreira was Kobus is the founder and Lilian has managed appointed as Executive Group Managing Director of numerous procurement Chairman of Bateman THE BEIJINGAXIS projects in steel, mining and Engineering in October He has been involved in the non-ferrous metallurgy 2009 numerous sourcing projects industry in China; he He started his career in in China since 2002, established THE BEIJING South Africa at Iscor (today providing high-level China AXIS’ presence in Russia Mittal Steel) as an engineer sourcing strategy guidance Lilian’s previous work in training and joined Alusaf and leadership on literally experience includes line two years later hundreds of China sourcing management positions in Later he was appointed as assignments the Russian consumer General Manager of Before that, Kobus was with goods markets, Strategy Ferrometals, a position he the Boston Consulting Director with WBD in held until he was promoted Group (BCG) and Standard Moscow, as an associate to Vice President in 2003 Chartered Bank Plc with McKinsey & Company John has a B Eng (Metal) He holds an MBA from in Russia and in the US from the University of INSEAD in France and a Lilian holds a BA degree in Pretoria and a Masters in Master of Information Economics and Business Leadership from Technology, cum laude, International Relations and the University of South from Curtin University of an MBA degree from Africa Technology in Australia INSEAD, France -44- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS EXECUTION TEAM MANAGERS Paul Lixiong Diana Williams Yang Wang SGM: GM: Manager: International International International Procurement Procurement Procurement Chief Representative of As GM of International Manager of TBA China Bateman Engineering N.V. Sourcing for Bateman Sourcing Unit for more than in Beijing, Paul has a solid Engineering N.V. in China, 5 years, Diana has background in underground he has managed several extensive sourcing gold mining and engineering mining equipment sourcing experience, having across Africa and China projects of high complexity managed numerous In China, he has conducted Yang also has 20 years of procurement projects for audits on several explosives experience in PetroChina & commodities and industrial manufacturing facilities, SINOPEC, where he was goods such as mining managed a production involved in EPC projects trucks, crushers and cranes facility of coal processing with responsibilities for Diana has qualified as a equipment, and performed procurement Certified Purchasing numerous supplier vetting International experience in Manager assignments and sourcing Africa, Middle East, Asia She holds a BCom Hons projects and Canada International Economics & Paul holds a B. Eng. Significant project Trade (BNU) degree, and a (Honours) Mining management experience on BA English Literature Engineering Degree multi-disciplinary projects degree, both from Beijing around the world Normal University MBA degree -45- Projects I Equipment I Commodities

A China-focused Global Procurement House BATEMAN BEIJING AXIS REGIONAL MANAGEMENT AND BUSINESS DEVELOPMENT Cheryl Nitesh A. Javier Haiwei Tang Dullabh Cuñat Huang Manager: GM: GM: Strategy, Manager: Research/KM China BD China Africa (International (International Strategic Marketing Development) Coordination) Cheryl has more than Nitesh has strong Javier joined us as Haiwei has the ten years of sourcing facilitation, project Senior Consultant in integrated experience experience in China management, report 2008 in China sourcing and She has managed writing and Before he worked as China strategy numerous procurement interpersonal skills. He Fin. Manager for a He is good at projects for capital also has extensive leading European managing domestic equipment and knowledge and interest manufacturer in its and international industrial goods across of macro and micro Beijing Branch. He clients relationship. many sectors and for economic/political and Also worked as Market His marketing many international social developmental Analyst for a Foreign capabilities enable the clients issues Trade Agency in constant development Her particular strengths MBA from Henley Beijing of the company lie in the areas of Management College With more than 5 years He has acquired project management, in the UK, MA in experience in China, BA(Hons) Business negotiation and International Relations he holds a BA Administration from trouble-shooting from Rhodes University B.Mgmnt and BA Econ London South Bank MBA degree from and a BA from the (Univ. Valencia, U.K. University, UK Birmingham Business University of Durban- Leuven) School, Cert Proc Westville Mgmt -46- Projects I Equipment I Commodities

A China-focused Global Procurement House STRUCTURE Chairman/CEO/COO Procurement Bulk Commodity Sourcing Strategy, (Bateman & External) Business Development Finance/HR/IT/Admin Paul Williams Trading Research & KM Supplier ID,Eval.,Selection China Pre-qualification Cheryl Tang/Huang HW Commercial, Negotiation, Africa Nitesh D / Mitch C / Jackie L Contracts Tollie Nel Australia QA/QC & Technical KvdW/DougH Expediting FrankP Logistics Global Project Execution Support from Bateman and THE BEIJING AXIS: Johannesburg/Perth/Brisbane/Moscow/Bangalore Canada/Santiago -47- Projects I Equipment I Commodities

A China-focused Global Procurement House CONTACTS AND GLOBAL FOOTPRINT BATEMAN BEIJING AXIS Beijing, China Moscow, Russia Bateman Beijing Axis has a primary focus on Suite 22D, Pine Court 5, 1st Derbenevskiy pereulok capturing advantage in/from China. However, via the Jin Dao Hua Yuan Moscow methodologies and experience that we have Xi Ba He Nan Lu, Chaoyang District Russian Federation developed globally, along with a strong presence in Beijing 100028, China 115114 many key low cost developing economies, we also +86 10 6440 2106 +7 495 787 1770 provide strong and comprehensive procurement cheryl.tang@batemanbeijingaxis.com luca@batemanbeijingaxis.com services in countries such as India, Russia and CIS in cases where these countries’ supplier-bases offer Johannesburg, South Africa Bangalore, India better value. No. 1 Kramer Rd. Bedfordview 65&65/1, Sarakki Industrial Johannesburg 2007 Layout, 13th Cross Road, J.P. South Africa Nagar, 3rd Phase Bangalore +27 11 201 2550 Kamataka, India 560078 Calgary Moscow michele.cosani@batemanbeijingaxis.com +91 80 3048 5211 London Beijing Perth, Australia Calgary, Canada Suite 2/93 Francisco Street Bay 4A, 2016 25th Ave Bangalore Hong Kong Belmont, WA 6104 NE, Calgary, AB. Singapore Australia T2E 6Z4, Canada +61 8 9365 9400 +1 403 291 4815 Brisbane Santiago Johannesburg Brisbane, Australia Santiago, Chile Perth Level 3 Kings Row Galvarino Gallardo 1690 40 McDougall Street Providencial, Santiago Milton (Brisbane), QLD +56 2 650 4700 +61 7 3367 1169 -49- Projects I Equipment I Commodities

BBA Capability Statement May 2010

by Mitch Cosani

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