This document discusses launching mining projects in Mongolia from the perspective of a major contractor. It notes that Mongolia needs capital, technology, and experienced management to develop its $2 trillion in mineral resources. Key challenges include lack of capital due to high interest rates, lack of sophisticated technology and management systems, and poor infrastructure. It recommends that to succeed in Mongolia, companies need high technical expertise, operational excellence, a willingness to invest for the long term, and experienced management combined with productivity-boosting technology and capital investment. Mongolia's dependence on China for mineral exports is also highlighted.

1. © Orica Limited Group
Mongolia Mining Summit:
Launching Mining Projects in Mongolia – A Major
Contractor’s Perspective
Eric Erdenebat Tseveendorj, Country Manager, Orica Limited 30-31 October 2013

2. Forward looking statements
This presentation has been prepared by Orica Limited. The information contained in this presentation is for informational purposes only.
The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis
for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial
situation or particular needs of any particular person.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,
opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Orica Limited, its directors,
employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or
negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or
warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of
any forecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by their nature subject to
significant uncertainties and contingencies.
Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment
is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of
future performance.
Non-IFRS information
This presentation makes reference to certain non-IFRS financial information. Management use this information to measure the operating
performance of the business and has been presented as this may be useful for investors. This information has not been reviewed by the
Group’s auditor.
Disclaimer
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3. 1. Introduction
2. Key Issues of Mongolia
3. Mongolia: Need/Wants and Challenges
4. How to Succeed in Mongolia
Contents
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CONFIDENTIAL: Information contained in this document is strictly confidential.

4. Clever Resourceful Solutions
Clever adjective skilful; talented; adroit; ingenious; quick
to understand & learn
Resourceful adjective full of resource; ingenious; skilful
in overcoming difficulties
No Accidents Today
Succeed Through Collaboration
Find Valuable Solutions
It’s Our Business
Vision and Values
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5. 1. World’s largest provider of commercial explosives to mining and
infrastructure markets with 28% global market share.
2. Largest supplier of chemical products to mining, water treatment
and other industrial, food and cosmetics markets in Australia and
New Zealand and a growing presence in Latin America.
3. Global leader in providing ground support in mining & tunnelling.
4. Leading global supplier of cyanide for use in gold extraction.
5. ASX listed with market capitalization in the Top 50.
Who We Are
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6. Orica’s global support system!
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7. •Established in 2004 (10 years of presence) in Mongolia
•Most major mining projects in Mongolia deploy Orica
products and/or services
•Main Services and Products are:
• Blasting services
• Commercial explosives
• Underground support products
• Chemicals
Orica Mongolia LLC
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8. Orica Green Edge represents us!
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9. Key Issues of Mongolia
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10. Better watch China closely!
• Almost all of the minerals exported to China
• Chinese economy influence the commodity prices
• China forecasts and new trends
– Shifting to slow-high growth (will maintain 7.5%)
– Consumption based economy
– Urbanization is occurring much faster rate
– Investing heavily on value added and innovative products
– Energy consumption will grow.
• In conclusion, domestic consumption and urbanization will drive future Chinese
economic growth, and thus will create a substantial demand for related
Mongolian minerals.
Key Issues: Why China is important?
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11. Chinese domestic consumption and urbanisation will key
drivers Mongolian minerals!
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12. • Mongolia as an Independent country, have democratic political system that is
inclusive of all voices, nationalistic and/or progressive.
• Legal Environment
– The newly adopted Investment law will protect investments for a duration
depending on the amount.
– The Government, Parliament and President of Mongolia are in agreement to
promote investment in mining; and hopefully, will not repeat past mistakes
that created instability.
• Social Political
– Multiparty system will always have various voices, including resource
nationalists
Key Issues: Domestic
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13. Mongolia: Need/Wants and Challenges
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14. What Mongolia Need?
• Need investors to develop the est. $2 trillion worth of minerals and associated
infrastructure.
• Need advanced and environmentally friendly technologies.
• Need experienced management systems to complete the identified projects.
• In sum, need Capital, Technology and Management system.
What are the Challenges:
• Lack of capital due to astronomic interest rates in Mongolia.
• Lack of sophisticated technologies and technical capabilities
• Experienced management systems
• Poor Infrastructure and logistics
• Corruption and inefficient public sector
• Dependent on China factor
Challenges
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15. Mongolia is the 19th largest and the most sparsely populated independent country
in the world, with a population of around 2.9 million people
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16. How to Succeed in Mongolia
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17. • Need high technical expertise for efficiency and productivity
– Note that the Chinese competition for low costs
– International companies with global support systems have advantages
• Operational excellence and deliverability
• Willingness to invest for the future
• Need experienced management, productivity boasting technology and capital
investment.
How to succeed in Mongolia
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18. Mongolia need high technology solutions!
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19. Conclusion:
Invest while bringing in experienced technical capabilities
and managament.
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