Day 2 - Opening Keynote (Emerging Mining Destinations) and Session 4 (Resource Nationalism)


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Day 2- Opening Keynote: Emerging Mining Destinations
Session 4: Resource Nationalism

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Opening Keynote: David Hutchins - Grafton Resources
Jaakko Kooroshy - The Hague Centre for Strategic Studies
Stuart Russell - Government of Western Australia

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Day 2 - Opening Keynote (Emerging Mining Destinations) and Session 4 (Resource Nationalism)

  1. 1. Investment Conferences GLOBAL MINING INVESTMENT CONFERENCE 2010 DAY 2 – OPENING KEYNOTE: EMERGING MINING DESTINATIONS – SESSION 4: RESOURCE NATIONALISM Opening Keynote: Emerging Mining Destinations David Hutchins – Fund Manager, Grafton Resources How are governments responding to the resource crisis Jaakko Kooroshy – Policy Analyst, The Hague Centre for Strategic Studies Making your jurisdiction attractive to mining Stuart Russell – Senior Trade & Investment Manager , Government of Western Australia ● CITY OF LONDON ● TUESDAY-WEDNESDAY, 28-29 SEP 2010 STATIONERS’ HALL
  2. 2. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
  3. 3. Grafton Resource Investment Limited A Resources Based Realisation Fund 3
  4. 4. Disclaimer  THIS DOCUMENT IS CONFIDENTIAL AND IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.  The information contained in this document (“Presentation”) has been prepared by Newland Fund Management LLP (“Newland”) acting on behalf of Grafton Resource Investments Limited (the “Company”). It has not been independently verified and is subject to material updating, revision and further amendment. The Presentation does not constitute an admission document, listing particulars or a prospectus relating to the Company in any jurisdiction, does not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for such securities. The Presentation does not constitute a recommendation regarding any decision to sell or purchase securities in the Company. The Presentation is being delivered for information purposes only to a limited number of persons who are lawfully permitted to receive it.  Information contained herein is confidential information and the property of the Company. It and any further information made available to any recipient must be held in complete confidence and may not be reproduced, used or disclosed in whole or in part without the prior written consent of the Company. The Presentation shall not be copied, reproduced or distributed in whole or in part at any time without the prior written consent of the Company.  While the information in here has been prepared in good faith, neither the Company nor Newland Asset Management LLP (“Newland”) nor any of their respective shareholders, directors, officers, agents, employees or advisors give or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisors (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor Newland nor any of their respective shareholders, directors, officers, agents, employees or advisors take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.  This document is only addressed to and directed at persons in member states of the European Economic Area who are (i) a “qualified investor” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) (“Qualified Investor”) and (ii) an “eligible counterparty” within the meaning of Article 24 (2), (3) and (4) of Directive 2004/39/EC (“MiFID”) as MiFID is implemented into national law of the relevant EEA state (“Eligible Counterparty”).  In addition, in the United Kingdom this document is being distributed only to, and is directed only at Qualified Investors who (i) have professional experience in matters relating to investments falling within Article 19(5) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”) and (ii) are Eligible Counterparties or Regulated Professional Clients within the meaning given in COBS 3.6.1 & 3.5.2 of the FSA Handbook as at 1st November 2007 (such persons together being referred to as “Relevant Persons”).  This document has not been approved by an authorised person. Any investment to which this document relates is available only to (and any investment activity to which it relates will be engaged only with) Relevant Persons. This document is directed only at Relevant Persons and persons who are not Relevant Persons should not take any action based upon this document and should not rely on it. It is a condition of you receiving this document that you warrant to the Newland that you are a Relevant Person.  The information contained herein is not for publication or distribution to persons in the United States of America, its territories or possessions or to any US person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). Any failure to comply with this restriction may constitute a violation of United States securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. The securities referred to here are not being registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an exemption from registration.  Certain statements contained in this document constitute "forward-looking statements". Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the relevant entities, or the results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements in this document, will in fact, occur. 4
  5. 5. Overview  Grafton Resource Investment Limited (‘Grafton’ or ‘the company’) focuses on developing and realising a small portfolio of selected assets  The company was formed at the end of 2008, by the founders of the successful ‘Resources Investment Trust’, to take advantage of the low valuations of companies in the resources sector  Grafton engages in an active management style and will look to encourage consolidation and other corporate activity.  The company was established as a dedicated resources based realisation fund. It is a closed-end fund with a 5 year life. After this period, cash will be returned to shareholders. 5
  6. 6. Overview  Grafton had an NAV per share of $39.05 on the 31st August(1,864,645 shares outstanding)  Grafton has evolved as an incubator in the resources sector. The company is concentrating on marshalling assets (approximately $80m) to develop its portfolio of resource companies to a stage where they can be: A. Sold to third parties B. Listed on a recognised stock exchange C. Developed so that they are cash generative for the group 6
  7. 7. Investment Case  Through some of its main investments, Grafton has a net interest in: A. 1.20bn bbls of oil (250 million recoverable) B. 33M tonnes of iron ore C. 220,000 oz of JORC gold resource D. 23,000 hectares of rare fallen lumber E. 50% of Bulgaria's largest independent water project  Excluding the top 6 ventures outlined below, the remaining companies in Grafton’s portfolio are valued at ~ US$14m, with ~61% listed on a recognised stock exchange. 7
  8. 8. Grafton Resource Investments Ltd NAV per share 8
  9. 9. Grafton’s Assets (31/08/2010) Company Percentage Madagascar Oil 28.5% Hydrostroi Bourgas 16.3% Phoenix Lumber Co. SA 10.3% South American Ferro Metals 9.1% Compostela Mining 3.6% Kolar Gold 3.4% Other Unlisted Companies 6.8% All Listed Companies 10.5% Termed Deposit 5.1% Net Current Assets 6.3% Total 100% 9
  10. 10. Grafton Resource Investments Ltd Commodity Breakdown Commodities Breakdown (31/08/2010) Other 6% Precious Metals 15% Water and Timber 30% Energy 34% Base Metals 15% 10
  11. 11. Directors and Management  Peter Seabrook – Director Peter is a graduate of Oriel College, Oxford, and has over twenty years experience as an investment manager. He joined Fleming Investment Management Limited in 1984 and became a director of Robert Fleming Holdings Limited in 1994. During his tenure there he was appointed UK chief investment officer. In 1997 Peter moved to Societe Generale Asset Management in a similar role, and after leaving in 2002 he held the post of chairman at Ocean Resources Capital Holdings until 2007.  David Hutchins - Director David has 20 years’ experience as a resources analyst and fund manager. His career began with the Melbourne Stock Exchange in 1979 and subsequently became an executive director of M&G Investment Management. He headed the International Desk at M&G Investment Management from 1995, where he was concurrently responsible for M&G's investments in the precious metals and commodities sector globally. He was a founding director of Resources Investment Trust plc at the launch in January 2002 and is a non-executive director of Rivington Street Holdings Plc and a non-executive director of Australian listed SA Metals Limited. 11
  12. 12. Directors and Management  Kjeld Thygesen – Fund Manager Kjeld is a graduate of the University of Natal in South Africa and has 30 years experience as a resources analyst and fund manager. His resume includes managing a portfolio of South African mining companies for African selection trust, working with James Capel and Co. in London as part of their highly rated gold and mining research team, and manager of N M Rothschild & Sons' commodities and Natural Resources Department in 1979. In 1987 he became an executive director of N M Rothschild International Asset management Limited, subsequently co-founding Lion Resource Management Limited, a specialist investment manager in the mining and natural resources sector. Kjeld has been a director of Ivanhoe Mines Ltd since 2001 and served as Investment Director for Resources Investment Trust PLC from 2002 – 2006.  David Cather – Consulting Mining Engineer David graduated from the Royal School of Mines, Imperial College, and has extensive experience in the development and management of a wide range of resource projects. He has held senior executive positions at operational and line management levels with both De Beers and Anglo American. David is a Chartered Engineer, a member of IoM3, and a Competent Person. He is a director of Compostela Mining Limited, an exploration company with copper/gold porphyry assets in the Philippines.  Willie West – Consultant Former Partner, Potts West Trumbull, Members of the Australian Stock Exchange. Sold to Prudential Bache 1990. Venture capital investor together with clients in Eastern European start-ups, including $100 million raise for Hungarian Investment Co. Ltd., in conjunction with John Govett in 1990; the provision of $500 million of “seed capital” for the development of early stage resources in Eastern Europe and the former Soviet Union. Latterly a founder of Resources Investment Trust plc and thereafter the development of a $200 million venture capital portfolio in the resource sector. 12
  13. 13. About the Fund  Quoted on the Irish Stock Exchange  All securities are held directly to the order of the fund by BNY Mellon, which is the administrator and custodian.  No prime broker or margin facilities.  Sole debt is the convertible loan stock  Portfolio contains 38 stocks, but its value is heavily weighted towards core development projects  The top 6 holdings, accounting for ~80% of the portfolio, are outlined below 13
  14. 14. Madagascar Oil (MOL)  Oil exploration company in Madagascar with PSC’s over two major blocks -Bemolanga and Tsimiroro  DeGoyler & McNaughton and Netherland Sewell have produced independent assessment of the resources for Bemolanga and Tsimiroro respectively  Bemolanga contains an estimated resource of 9.8bn bbls of bitumen (2.5 bn bbls recoverable). Madagascar Oil owns 40% after farming out 60% to TOTAL for $100m.  Tsimiroro contains an estimated resource of 5.5 bn bbls of which 0.94 bn bbls classified as “Contingent”. MOL owns 100% of the field.  MOL therefore has a net reserve of 1.94 bn bbls. Grafton own 12.71% of MOL and so can be said to ‘have a net interest in ~ 0.25bn bbls of recoverable heavy oil. 14
  15. 15. Hydrostroi Bourgas  Partially built water reservoir near Bourgas, Bulgaria – a water stressed area  Asset acquired by H-B.  Debt finance being arranged for completion of dam, water treatment plant and infrastructure  First sale of water anticipated in Q2/11. Annual volume average 6.5mm3.  NPV12 = €34.6m. Annual free cash flow estimated at €5m.  On 8x multiple, this gives a FV of €40m. 15
  16. 16. Phoenix Lumber Company SA  Phoenix Lumber Company SA (Phoenix) have, under licence and option, 50,000 hectares of the hurricane hit North-West region of Nicaragua, from which they are extracting rare hardwood timber  Phoenix expects the project to conclude by 2015, with cash returned to investors. Total cash flow for the project is estimated at circa $100m 16
  17. 17. South American Ferro Metals  South American Ferro Metals (SAFM) has, through its fully owned subsidiary, acquired the rights to the Ponte Verde property in Minas Gerais, Brazil  The Ponte Verde property has been partly drilled with the geology well understood, and contains an estimated 150 Million tonnes + of hematite rich itabirite, grading 39% in situ, increasing to 65% on beneficiation  A further drilling programme will bring the resource to JORC standard in 2010  Based on a price of US$ 40 per tonne at the mine gate, cash costs of around US$ 12.0 per tonne and an output of 3.0 Mtpa, this generates an estimated enterprise value of US$ 250- 300 million  RTO agreed with ASX listed Riviera Resources 17
  18. 18. Compostela Mining  Gold exploration project adjacent to infamous Mt Diwalwal gold rush area, Mindanao, Philippines  Unique “Operating Agreement” implemented over 950 ha of tribal land  Drilling commenced in Q4/09 which has confirmed high sulphidation mineralisation associated with gold and base metals. Initial set of assay results imminent.  Viewed as similar potential to Medusa Co-O Mine – 50km to north. 100kozpa. Market cap of $600m. 18
  19. 19. Kolar Gold Plc  Data regarding the Kolar gold fields, located in southern India, indicate a world class gold asset, with an estimated resource of ~10Moz Au  Kolar Gold Plc (KG) has a JV with the United Mine Employees Co-operative Society with the first and last right to acquire the mining leases and assets of the Kolar gold fields  Short term cash flow is possible through a low capex tailings project, and a JORC resource of 10Moz would be worth over $500m  Kolar is also pursuing a deal with Geomysore Services India to take a stake in several high potential exploration projects around the region of Karnataka, India  Grafton owns approximately 15% of KG 19
  20. 20. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
  21. 21. THE NEW POLITICAL ECONOMY OF RARE METALS Global Mining Investment Conference London, September 29, 2010. JAAKKO KOOROSHY
  22. 22. RESOURCES, STRATEGIES & POLICY INTRODUCTION The Hague Centre of Strategic Studies (HCSS) •Independent think-tank providing strategic orientation and navigation services •Clients range from national governments, transnational organizations to private companies & NGOs •Young, rapidly growing organizations with excellent European and trans-Atlantic ties •“Natural resource scarcity”(= political economy of commodity markets) among key topics •Focus on the political economy of rare metals with much in- house expertise, an excellent track-record and strong networks
  23. 23. RESOURCES, STRATEGIES & POLICY SCARCITY: AGE OLD FEAR & FASCINATION I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. Then I heard what sounded like a voice among the four living creatures, saying, "A quart of wheat for a dinares, and three quarts of barley for a dinares”
  24. 24. RESOURCES, STRATEGIES & POLICY WHY COMMODITIES MATTER AGAIN… • “new economy” (1995-2001) >> “revenge of the old economy” (2004) >>“revenge of the old political economy” (2008) >> “new normal” (2009-?) • Commodities key part of the story, with • high price levels and strong volatility • tight markets and supply side constraints • states and their proxies (SWFs, SOEs, regulatory bodies) as key actors in markets • added factor Climate Change debate  Intense politicization and securitization of commodity markets Commodities as key strategic issue in a multipolar world Emerging nexus of environmental, economic & security policy
  25. 25. RESOURCES, STRATEGIES & POLICY WHY COMMODITIES MATTER AGAIN... 300.0 250.0 200.0 150.0 Base Metals Index AGRICULTURAL TIMBER Food CROPS Energy 100.0 50.0 0.0
  26. 26. RESOURCES, STRATEGIES & POLICY GOVERNMENT INTERVENTION IN RARE METALS MARKETS •Rare metals are especially prominent in the resource debate due to: • Western import-dependence & crucial role of China • indispensability for high- & green-tech applications • inelasticity & concentration of supply • fast-growing & highly volatile demand  This creates supply security concerns and makes (some) metals into “strategic” resources!  The strategic value & political economy of each metal is unique, evolving rapidly, and …
  27. 27. RESOURCES, STRATEGIES & POLICY GOVERNMENT INTERVENTION IN RARE METAL MARKETS •In response to supply security concerns, importing countries • designate particular rare metals as “critical” • actively monitor supply and demand • create stockpiles & develop domestic supply • diversify & secure supply • regulate trade and consumption •Authorities of exporting countries seek to • increase profits through taxation, licensing, nationalization • control valuable downstream industries through preferential supply or export restrictions • use rare metals as strategic bargaining chips.  … this can matter greatly for the success of business ventures and investments in the market for a given rare metal!
  28. 28. RESOURCES, STRATEGIES & POLICY EUROPEAN POLICY RESPONSE TO RARE METALS DEBATE •Raw Materials Initiative (RMI) led by DG Enterprise & Industry resulted in the 2008 Communication with focus on non-energy mineral resources: •Ensure equal access for European industry globally •Promote supply expansion from European sources •Boost resource efficiency and recycling •Follow-up EU criticality study released June 2010: •Examines 41 minerals and metals with 14 labeled as “critical” •Recommends to tailor policy responses for each critical material •Extensive consultation process has just been wrapped up • Watch out! A new Commission Communication on latest developments and the progress of the RMI at the end of this year
  29. 29. RESOURCES, STRATEGIES & POLICY EUROPEAN POLICY RESPONSE TO RARE METALS DEBATE Source: European Commission, DG Enterprise and Industry “Critical Raw Materials for the EU” Brussels, 2010.
  30. 30. RESOURCES, STRATEGIES & POLICY COMMISSION RESEARCH INTO RARE METAL SUPPLY CHAIN BOTTLENECKS EU 2020 strategic targets: •20% less carbon emissions •20% energy savings •20% green energy supply •The Joint Research Commission (JRC) is examining rare metals supply chain bottlenecks that might prevent realization of 2020 Targets •Will list metals that provide serious obstacles to deploying high-priority energy technologies •Includes concrete recommendations how to ensure adequate supply •HCSS, Oakdene Hollins, and Namtec in the lead •Part of the European policy formulation process, study to be published Spring 2010
  31. 31. RESOURCES, STRATEGIES & POLICY MEMBER STATE RESPONSES: GERMANY A driving force behind the EU Raw Materials Initiative (RMI) Following ongoing “Rohstoffdialog”, the German government is currently finalizing its new “Rohstoffstrategie”. Key elements are: •Close cooperation between various ministries, BGR & corporations, with a new “Rohstoffagentur” as central actor •Strengthening of bilateral cooperation with resource-rich developing countries •International engagement to lower market distortions and promote global investments through “ungebundene Finanzkrediete” (UFK)
  32. 32. RESOURCES, STRATEGIES & POLICY MEMBER STATE RESPONSES: FRANCE •The announced creation of a “Comité pour les metaux strategiques” (COMES) has been delayed •Key elements of the plan: •Exploration for REEs (€ 6 mil.) • R&D around gallium, germanium, niobium, PGMs & REEs (€140 mil.) •Recycling of rare metals (€ 250 mil.)
  33. 33. RESOURCES, STRATEGIES & POLICY MEMBER STATE RESPONSES: UK •Treasury Department (2008) has promoted laissez- faire approach •Earlier criticality study followed up by a new study with AEA in the lead, commissioned by DEFRA •New UK government yet to take a stance on the issue
  34. 34. RESOURCES, STRATEGIES & POLICY CONCLUSION: WHERE DOES EUROPE STAND ON RARE METALS? • EU is stepping ahead with member states’ responses still fragmented: •Germany is in the lead •Strong French response has been somewhat delayed •UK is still looking to develop a coherent policy •Compared to US and Japanese efforts to ensure supply security: •No stockpiling •No establishment of domestic / Western supply chains for rare metals •Little government investments as of yet This might change very fast!
  35. 35. RESOURCES, STRATEGIES & POLICY SHORT RECAP •Like other commodity markets, the markets for metals have become subject to intense politicization and securitization •In times of the “new normal”, the unique political economy of each metal market creates specific threats and opportunities for miners and investors •Grasping, anticipating and navigating this political economy is rapidly becoming a key determinant to business success in the world of mining •HCSS is a reliable partner in strategic orientation & navigation
  36. 36. RESOURCES, STRATEGIES & POLICY SHORT RECAP •Questions??? •Please get in touch!  
  37. 37. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
  38. 38. Making your jurisdiction attractive to mining (while at the same time driving Australia’s economy!) Stuart Russell Senior Trade & Investment Manager Global Mining Investment Conference London, 29 September 2010 Government of Western Australia – European Office
  39. 39. Broad policy objectives in Western Australia The policies: Designed to encourage the continued responsible development of the State’s resource industries. Key priorities: 1. To improve the State’s legislative and regulatory framework 2. To support exploration and development 3. To put an emphasis on safety and sustainability 4. To maximise the benefits from the minerals and petroleum industries to the Western Australian community.
  40. 40. About Western Australia  Nation’s largest state, covering one third of the continent.  Population of 2.2 million.  Abundance of natural resources: minerals, energy and agriculture  Relaxed lifestyle with high quality infrastructure.  Gateway to Asia
  41. 41. World Leader in Mineral and Energy Production Oil & Gas Lead/Zinc Bauxite Diamond Iron Ore Oil & Gas Nickel Salt Nickel Tantalum Manganese Gold Iron Ore Chromite Nickel Gold Gold Iron Ore Titanium Minerals Copper/Zinc Oil & Gas Nickel Perth Bauxite Coal Titanium Minerals Tantalum
  42. 42. Big State provides wealth of opportunities SELECTED WA COMMODITIES RELATIVE TO WORLD PRODUCTION ENDING 2009, BY QUANTITY Western Australia’s resource Alumina production is both world Diamonds scale and world class Garnet Gold Ilmenite Iron ore LNG Nickel Rutile Salt Tantalum Zircon 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Western Australia Rest of Australia Source: DMP, ABARE and USGS
  43. 43. Top ten export destinations (2009-10) Source: Australian Bureau of Statistics
  44. 44. Investor-friendly State Government Since coming to office in late 2008, the new State Government has:  Created a new department to focus on the mining and petroleum sector  Accelerated approvals relating to mineral titles  Now allows uranium exploration and mining  Welcomes investment in small to large mineral and energy projects  Implemented an Exploration Incentive Scheme
  45. 45. Exploration Incentive Scheme assists explorers An $80 million package that provides:  A drilling subsidy to innovative explorers  A stimulus for applied research relevant to exploration  Complete coverage of WA by 400 metre line spacing airborne magnetic and radiometric surveys  Major gravity surveys and deep seismic lines  New online systems for industry to lodge applications relating to mineral titles and track their progress through approvals processes
  46. 46. Value production ($ million) 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 1966 1967 1968 1969 1970 SALT COAL GOLD 1971 OTHER NICKEL ALUMINA 1972 DIAMOND IRON ORE 1973 PETROLEUM 1974 exploration 1975 1976 1977 1978 HEAVY MINERAL SANDS 1979 1980 1981 Minerals + Petroleum Expl Expend 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Resource production depends on 2003 2004 2005 2006 2007 2008 2009 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Exploration expenditure ($ million)
  47. 47. WA annual exploration expenditure ($ million) 0 1000 1200 1400 200 400 600 800 1964–65 1966–67 1968–69 1970–71 WA 1972–73 1974–75 WA/Aust % 1976–77 1978–79 (2009–10 dollars) 1980–81 1982–83 1984–85 1986–87 1988–89 1990–91 1992–93 1994–95 1996–97 1998–99 2000–01 2002–03 2004–05 2006–07 2008–09 Mineral exploration expenditure in WA 0% 10% 20% 30% 40% 50% 60% 70% WA/Aust %
  48. 48. Annual expenditure ($ million) 0 10 20 30 40 50 60 1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 1986–87 1987–88 1988–89 1989–90 1990–91 1991–92 1992–93 Uranium exploration 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–00 2000–01 expenditure, Western Australia 2001–02 2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10
  49. 49. Oakajee Port, Rail and Industrial Estate – A$10 Billion+ project “the single most important project for Western Australia’s economic development over the next 50 years” Premier Barnett, March 2009.
  50. 50. Existing Ports in Western Australia Site for proposed Oakajee Port
  51. 51. Anketell Port & SIA  This project includes the development of the Anketell Port and Strategic Industrial Area (SIA) to:  Facilitate future mining development in the Pilbara  Develop a multi user deep water port and industrial area that will cater for the project proponents as well as future users  The Anketell project will be managed by a single foundation proponent – yet to be determined
  52. 52. RSPT - MRRT?
  53. 53. India jumps to largest coking coal importer in 2015 Coking Coal Import Demand (million tonnes) 66 49 53 62 32 34 Japan Europe 2009 2015 6 8 2009 2015 27 USA 17 2009 2015 CHINA 2009 2015 Korea 76 2009 2015 25 10 5 12 Taiwan 30 Brazil INDIA 2009 2015 2009 2015 2009 2015 Source: AME, Wood Mackenzie, ANZ
  54. 54. Perth is an Attractive Base for Companies and Talent  Shift in corporate influence to the West driven by Perth’s strategic location - access to natural resources, capital, and a quality lifestyle.  Perth is home to more than a dozen listed companies with market value greater than AU$1 billion – including Woodside, Shell, BHP Billiton, Rio Tinto, Chevron, Newmont Mining, Fortescue Metals Group, Wesfarmers.  It is also home to major petroleum and mineral resources sector research and development facilities and industry bodies including the Association of Mining & Exploration Companies.  Since 2007, Perth has become home to 80 more companies. The total of 783 extends the lead over Sydney (672), Melbourne (362) Brisbane (183) and Adelaide (95).  Australia was ranked 6th in the 2009 World Quality of Life Index Source: UWA Committee for Perth Study, September 2009 IMD World Competitiveness Online 1995-2009; Austrade
  55. 55. Where to from here?…..  Follow up to obtain information on opportunities in Western Australia by:  Joining in various conferences & exhibitions –  MPES 2010 Mine Planning & Equipment Selection, Fremantle 1 December 2010 (  AJM’s 14th Annual Global Iron Ore and Steel Forecast Conference, Perth 22 March 2011 ( Visiting Perth independently or as part of a Business Mission  16-18 December 2010  Follow up with our Office
  56. 56. Contact details Stuart Russell Senior Trade & Investment Manager Government of Western Australia European Office 5th Floor, Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG – United Kingdom Tel: +44 20 7395 0564 | Fax: +44 20 7240 6637 Email: Web:
  57. 57. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations: