Austmine

1. Vale Mission 2012
Belo Horizonte
Brazil
Australian Technology:
Inspiring Global Mining
Innovation
Robert Trzebski
CEO – Austmine Ltd

2. Challenges of future mining
Unprecedented demand driven by the needs of emerging economies
Mature ore bodies and fewer tier one surface deposits being discovered
Inevitable migration from surface to underground operations
Lower grades with longer haul distances combined with massive volume
demand
Next generation ore bodies bringing inherently complex mineralisation .
Stakeholders demanding less environmental impact from our operations
Carbon constrained future framed by the context of Global warming
Structurally higher energy prices and possibly real energy constraints
Future being different from the past in some fundamental, unavoidable ways.

3. Australia’s mining industry
• Mining industry currently represent for approx. 8% of GDP
• Minerals exports account for $138 billion – more than 50% of
Australia’s exports
• Annual investments over $50 billion – $4 billion in R&D
• Directly employs some 200,000 Australians (2% of total
national employment)
• Total government revenue payments (taxes and royalties) of
US$4 billion
• Global supplier – 2nd largest minerals sector by value of
production (after USA)
• Commodity exports will reach $480 bilion in 2030 from a base
of $210 billion in 2010.

4. +758 (3.8% pa)
Source: AFR 4 March 2012

5. Specialist Mining Services Companies lisited in ASX
Category Annual Revenue Example companies
Mining contractors $16.5 bn Leighton, Transfield Services, Downer, Macmahon
Construction $13.7 bn Leighton, Mondelphous, Watpac, Clough
Consumables $13.2 bn Orica, Wes Trac, Incitec, OneSteel
Engineering $8.3 bn Worley Parsons, Coffey, Ausenco, Cardno
Logistic Suppliers $8.1 bn QR National, Toll, Asciano, K&S
Rail Equipment & infra $5.0 bn Downer, UGL, Bradken, Engenco
Labour Hire $4.3 bn Workpac, Skilled Group, Programmed Group, Humanis
Electrical Contractors $2.8 bn Hastie, Norfolk, Southern Cross Electrical
Utilities $2.6 bn Duet Group, APA, Envestra
Drillers $2.1 bn Boart Longyear, Ausdrill, AJ Lucas, Swick
Equipment Hire $2.1 bn Coates Hire, Emeco, Boom Logistics
Specialist Equipment $1.3 bn Boart Longyear, Ludowici, Imdex
Fabricators $1.1 bn RCR, AusGroup, Austin Engineering
Testing Services $1.1 bn Campbell Brothers
Remote Housing $938 m Decmil, Fleetwood, Nomad
Mining Software $878 m Runge, Data 3, ISS Group
Recycling, Waste Management $476 m CMA Corp, Tox Free, Electrometals Technology
Financial Services $468 m Wilson HTM, Bell Financial
Other $122 m Greencap, Aspermont, Environment Group, Clean TeQ

6. Australia’s mining technology sector
• Exports of technology, equipment and services
represent 3.3% of total goods and services exports
• Directly employs some 500,000 Australians globally -
over 5% of total national employment
• Global supplier – 2nd largest exporter of mining
products and services (after USA)
• Leader in mining innovation in terms of funding of R & D
- estimated $4 billion per year

7.  The demand for resources continues to expand in China,
India, Russia, the FSU, Brazil and smaller emerging
economies
 This is driving the demand for Mining Technologies like never
before, particularly in the areas of exploration, mine
development tools, automation and communication, and
advanced mineral processing
 ALL economic predications continue to emphasise the
probability of an ongoing Supercycle in the demand for
resources

8. We believe the coming years will see the highest ever demand
for resources and therefore technologies to find, mine and
process these commodities and convey them to market safely
with the highest level of productivity.

9. Out of Crisis the Emergence of the
“Technology Age of Mining”
“Boom Age of Mining” 2004 to 2007 “Financial system repair 2009”
• High commodity prices • Massive government stimulus
• Easy access to capital 2009 • Growth returns
’03 to ‘07
• High Labour costs/low availability • Emerging nations power ahead
• More volume = more equipment • Confidence returns
• Exploit known deposits, marginal new ground. • “Shell shock” hangover
Historical
High
Global
Mining +2010
Activity
Index “Technology Age of Mining”
’07 to ‘08
• Unprecedented volume challenge
“Global financial melt down ’07 to ‘09” • Combat declining grades
Post crash
Low • Banker driven risk taking stalls system • Productivity focus/low cost
• Distorted balance sheets uncovered • Autonomy & Smart Systems
• Housing market distortions spread panic • Safety via technology
• Monopoly money mentality grinds to a halt • Less people = more technology
Time (Year)

10. The Outlook for mining technologies…
• The Mining Technologies & Services (MTS) sector has had
an excellent period of growth since the Global Financial
Crisis
• Exports of Australian MTS have accelerated and we believe
that the total value of exports is in excess of $15 billion
• Development of mining opportunities continues to grow
across the globe, but particularly in the previously ignored
geographies in more remote locations

11. Top 50 ASX-listed Mining Technology & Services
Companies
1. Orica ($4.74 billion)
2. Downer ($1.95 billion)
3. Boart Longyear ($1.48 billion)
4. WesTrac ($1.18 billion)
5. Monadelphous ($830 million) Minimum export revenue in 2010:
6. UGL ($773 million) $6.4 billion
7. Ausdrill ($632.9 million) Australia’s MTS sector consist of
8. NRW ($610 million) over 1,200 companies ; approx.
9. Bradken ($578 million) 500 are exporters
10. WorleyParsons ($562.5 million) Total exports of Australian
11. Ausenco ($513.4 million) mining products and services is
in excess of $8 billion
12. Sinclair Knight Merz ($500 million)
13. Barminco ($485.8 million) .
…
15. Imdex ($121 million)
16. Lycopodium ($120.3 million)
17. Australian Contract Mining ($110 million)
18. Boom Logistics ($105.3 million) Source: HighGrade.net

12. Who we are…
Austmine Ltd
oAustralian Export Association of Mining Technology & Services
oEstablished in 1989
oSome 150 member companies across Australia
oExporting over $6 billion to over 72 countries
oWorld’s leaders in mining innovation
oChampion productivity, cost-efficiency, safety and environment
oCost-effective marketing support to the global mining network
oInternationally recognised brand

13. What we do…
oRepresent Australia’s METS export sector internationally
oPromote members’ capability globally
oInfluence governments and relevant stakeholders in Australia and
beyond
oNetworking platform for the mining community
oDatabase of new and information on projects, companies, markets
oTrade missions to overseas exhibitions and mine site visits
oPublish the annual Austmine Directory
oBiennial Austmine Conference & Exhibition

14. Snapshot of member companies
Our Members: a snapshot

16. Alliance Partners

17. Outlook 2012 and beyond…
•Austmine Networking Series 2012 in Brisbane, Melbourne, Wollongong,
Newcastle, Perth… for more info visit www.austmine.com.au
•Missions to Brazil (16-20 April), Mining World Russia (23-27 April), South
Africa / Mozambique (May/June), Mining World Central Russia –
Kazakhstan (September), MinExpo 2012 – USA (September), West Africa
(October) and IMME India (December)
•13th Edition of Austmine Directory, April 2012
•Austmine Seminar – MCA Minerals Week, Canberra 30 May
•2012 Austmine Annual Dinner – Perth 20 June
•Austmine 2013 Conference & Exhibition in Perth – May 2013

18. Smart Mining… Made in Australia
www.austmine.com.au
THANK YOU!
www.austmine.com.au