Objective Capital's Industrial Metals, Minerals & Mineable Energy Investment Summit 2011 Ironmongers' Hall, City of London 3 November 2011 Speaker: Brian Coope, Industrial Minerals Analyst

1. INDUSTRIAL METALS, MINERALS
& MINEABLE ENERGY
INVESTMENT SUMMIT
Industrial Minerals – Routes to opportunities
Brian Coope – Industrial Minerals Analyst
IRONMONGERS’ HALL, CITY OF LONDON THURSDAY, 3 NOV 2011
www.ObjectiveCapitalConferences.com

2. Industrial Minerals –
Routes to Opportunities
• Brian Coope – Industrial Minerals Analyst
• Differences between Industrial Minerals and
Metallic Ores and Fuel Minerals
• No terminal markets, lack of standardisation,
close relationship between mineral and
market, multi-product, multi-use

3. Exploration begins with markets

4. SIX STAGES OF A PROJECT
1. Enthusiasm
2. Disillusionment
3. Panic
4. Despair
5. Search for the Guilty
6. Punishment of the Innocent
7. Decorations for those who took no part

6. Routes to Opportunities
• Shortages and rising prices
• Critical lists
• Focus on China
• Technology changes
• Legislative and environmental changes

7. Potash price spike in 2009

9. Moon journeys – Zircon 1974
Reason: Japanese refractory technology shift

10. Zircon Moon journeys
1974, 1989, 1995 and….
Zircon Price US$/tonne
900
800
700
600
US$/tonne
500
400
300
200
100
0
1994
1998
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1996
2000
2002
2004

11. 500
1000
1500
2000
2500
0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Zircon Price US$/tonne
……and 2011
2002
2004
2006
Zircon Moon journeys
2008
2010
Price $/t

12. Critical Lists
1982 2010 2011
House of Lords EU BGS
Antimony Antimony Antimony
Chromium Beryllium Bismuth
Cobalt Cobalt Bromine
Manganese Fluorspar Graphite
Molybdenum Gallium Mercury
Niobium Germanium PGM
Nickel Graphite Niobium
PGM Indium Rare Earths
Phosphate rock Magnesium Strontium
Tantalum Niobium Thorium
Titanium PGM Tungsten
Vanadium Rare Earths
Tantalum
Tungsten

14. EU Critical Raw Materials Study 2010
Rare Earths
Magnesium
Antimony
Barite Fluorspar
Graphite
Lithium Borates Magnesite Chromite
Diatomite Bentonite Silica Manganese
Talc Perlite Titanium Bauxite

15. BGS Risk List 2011 – Top Ten
Element Risk Index Leading producer
Antimony 8.5 China
Platinum group 8.5 South Africa
Mercury 8.5 China
Tungsten 8.5 China
Rare Earths 8.0 China
Niobium 8.0 Brazil
Strontium 7.5 China
Bismuth 7.0 China
Thorium 7.0 India
Bromine 7.0 USA
Graphite 7.0 China

16. China’s role in world IMs
• 1970s – only a few industrial minerals
exported – specialist traders Canton Fair
• 1980s -- Established trade but low prices lead
to anti-dumping
• 1990s – Rise in quality and value-added
products
• 2000s – Increasing domination across the
board, export tariffs & quotas, enforced
closures of illegal and hi-polluting operations

17. Technology Changes
• Clean Energy Technologies
– Batteries, Magnets, Phosphor lighting, Solar cells
– Rare earths, lithium
• TV screens – CRTs to Flat screens
– Strontium down, rare earths up
• Steelmaking and refractory technology
– Magnesia, graphite, alumina, spinels, zircon &
zirconia

18. Legislation & Environmental Changes
• Asbestos -- wonder-material but deadly
– No single substitute
– Reinforcing -- glass, ceramic, cellulose, Wollastonite, Talc. Mica
– Insulation -- glass fibre, mineral wool, ceramic fibre, perlite,
vermiculite
– Gaskets, graphite, wollastonite, glass fibre
• Fire hazards -- polystyrene ceiling tiles -- perlite again
• Fire retardants -- oxides/hydroxides of aluminium, magnesium,
antimony -- bromine
• Emissions -- FGD limestone to gypsum
• Waste & water treatment

19. Opportunities in Industrial Minerals –
which route?
• Most likely to arise for existing IM producers
– Specialised media “Industrial Minerals”, Conferences, etc
– Approaches from exploration companies
• But exploration companies in Gold, Base Metals, & Oil
– May have a regional advantage. When in West Africa,
Siberia, or wherever
– Take an interest in local minerals and mineral-based
industries
– Wealth of data often available