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A powerful tool
to unlock
potential value
Santhosh Mulky
12 March 2021

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Forward
Looking
Statements
Disclaimer
Important Notice
The purpose of this presentation is to provide general information about Fortescue Metals Group
Ltd (“Fortescue”). It is not recommended that any person makes any investment decision in relation
to Fortescue based on this presentation. This presentation contains certain statements which may
constitute “forward-looking statements”. Such statements are only predictions and are subject to
inherent risks and uncertainties which could cause actual values, results, performance or
achievements to differ materially from those expressed, implied or projected in any forward-looking
statements. No representation or warranty, express or implied, is made by Fortescue that the
material contained in this presentation will be achieved or prove to be correct. Except for statutory
liability which cannot be excluded, each of Fortescue, its officers, employees and advisers
expressly disclaims any responsibility for the accuracy or completeness of the material contained in
this presentation and excludes all liability whatsoever (including in negligence) for any loss or
damage which may be suffered by any person as a consequence of any information in this
presentation or any error or omission therefrom. Fortescue accepts no responsibility to update any
person regarding any inaccuracy, omission or change in information in this presentation or any
other information made available to a person nor any obligation to furnish the person with any
further information.
Additional Information
This presentation should be read in conjunction with the Annual Report at 30 June 2020 together
with any announcements made by Fortescue in accordance with its continuous disclosure
obligations arising under the Corporations Act 2001 and ASX Listing Rules. Any references to
reserve and resources estimations should be read in conjunction with Fortescue’s Ore Reserves
and Mineral Resources statements released to the Australian Securities Exchange on 21 August
2020. Fortescue confirms in the subsequent public report that it is not aware of any new information
or data that materially affects the information included in the relevant market announcement and, in
the case of estimates of mineral resources or ore reserves, that all material assumptions and
technical parameters underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed. All amounts within this presentation are stated in United
States Dollars consistent with the functional currency of Fortescue Metals Group Ltd, unless
otherwise stated. Tables contained within this presentation may contain immaterial rounding
differences.

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Senior Mining Engineer
• Open pit mining engineer with over 16 years of experience
– Production, Mine Planning and consulting
Current role
• FMG – Senior Mine Planning Engineer (Iron Bridge magnetite Project)
• Strategic planning, Long Term and 5YMP and
• Long Term Mine Design
About me
Santhosh Mulky

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Datamine Studio OP – about 9 years, found the following capabilities very useful
• Ore loss and Dilution modelling
• Dynamic Pit Designing tool
Minemax – From 2012 till date
• First project – FS of a OP gold mine with a trade-off study (Trolley Assist Vs
Conventional Shovel/Truck – Expit Belt conveying)
Strategic Planning in my current role
• Reserve estimation
• Capacity studies
• Various scenarios to evaluate the extended mine life cases
• Sensitivities to evaluate the sensitivity to price and cost
• To obtain guidance on grade binning/material type strategy
Datamine Mine Planning Tools - Experience

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• Commodities: Iron ore, Copper, Gold, Silver, Phosphate, Potash, Rare Earths Element, PGE etc.
• Combined OP and UG optimisation study for the locked in UG scheduling scenarios – to decide the
optimum time for introducing underground after applying a capital trigger
• Trade off studies e.g. Trolley Assist vs Conventional Shovel and Truck vs Expit Belt Conveying
• Multi pit project optimisation with backfilling options
• Mining and Plant capacity studies
• Processing Technological option evaluation
• Mining ramp-up studies with capitals for truck and shovels
• Mining, Processing and Logistics simultaneous schedule optimisation
• Ore binding (ROM material types) strategy for operations
Minemax experience
Nature and type of work carried out (at previous consulting role)

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Strategic Planning - Preparation
Ore loss and Dilution and modelling – Regularisation to selected SMU size
• Pit optimisation
• To obtain guidance on mining pushbacks (staged mining)
• Various scenarios created by varying the pushback sizes (emphasising mainly on the initial mining
phases)
• Haulage study to obtain haul cycle data for mine ore and waste haulage and reclaiming from stockpiles
to plants – this was used in minemax to calculate truck numbers and enable truck purchase
• Grade tonnage curves to define material types/stockpiles
Products
• Three product types were considered and a penalty model was applied
• This allowed minemax optimise the plan based on the revenue, cost and available inventory to
make the optimum blend

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• Minemax was setup as per the project description using the pit inventory and guidance obtained from the
preparatory steps (Pushbacks, material types, Cycle time etc)
• Appx 6 minemax models created as per the matrix below
(Max difference for NPV for the scenarios in the table above was over 3%)
• Products
– 3 product types were considered and a penalty model was applied (Fe%, SiO2%, Al2O3%, P%)
– This approach enabled minemax generate ‘optimum product’ based on revenue, cost making best use
of the available mineral inventory
– ‘Allowing product mix’ vary year by year allows scheduler address price as a key factor in the
optimisation process
Strategic Planning – Modelling Approach
Minemax Scenarios
matrix (NPV populated
after completing the
scenarios)
Material Types/Stockpiling Scenario
1 2 3
Pushbacks
Scenarios
1
2
3

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How the plan was optimised : Apart from modelling and applying cost to mining,
processing and logistics in line with the project setup
– By allowing minemax to vary the product mix
– By varying the pushback sizes
– By varying the materials/stockpiles
Capital expenditure profile
– Mining fleet
– Processing plant capital, time of construction and size
– Logistics options and timing of capital
Project Findings and Outcome

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Guidance on physicals
– Selection of ultimate pit through the schedule (shells not mined after the end of the
schedule excluded from the LOM pits)
– Mining sequence
– Ore binning strategy to improve blending
– Variable COG –for various sources of mining
– Variable COG – at various plants to achieve the optimum product mix by year
Key drivers – sensitivity to NPV
– Price, Logistics cost and processing cost
– Processing cost
– Mining cost
Project Findings and Outcome

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Any questions?

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