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24ºC Tuesday 10 February, 2015 Issue 1 Mining Indaba™ Daily News New Expanded App CAPE TOWN PRECIPITATION: 60% HUMIDITY: 48% WIND 26 KM/H 1 PAGE 11 ‘Challenging Times’ Greet Mining Indaba 2015 Investors are focusing increasingly on Africa, which has posted “epic” growth of 6%, according to Frank Holmes, CEO and chief investment officer of U.S. Global Investors Inc. Holmes spoke yesterday, the second day of the Investment Discovery Forum taking place alongside the Investing in African Mining Indaba programme. emed “Beyond the obvious,” this year’s forum focused on untapped mining investment opportunities and the future of big mining in Africa. Conducting a SWOT analysis of Africa, Holmes pointed to political risk, noting that some African governments could be less than friendly towards mining. “In investing, the big thing is understanding demographics and understanding changes to growth: what are the policies that change or enhance growth?” Cash Economy Growing In the US, everything was based on the 10-year bond. In Africa, the economy was based on cash, not policy. “e cash economy is going to grow more rapidly, and it makes much more opportunity going forward.” Forbes’ rich lists, Holmes said, were a marker for Africa’s growing economies. e continent’s 10 richest football players, for example, collectively brought in US$120 million a year; the rise of Nollywood was another positive statement about what was taking place in Africa. Mounting input costs and inadequate electricity supply are two key constraints that could be resolved if the mining industry and African governments started working together, according to a report released by the World Bank last week. “e Power of the Mine: A Transformative Opportunity for Sub-Saharan Africa” was the topic of a special panel discussion Monday at the start of Investing in African Mining Indaba. Implications for the Continent Sudeshna Banejee, one of six of the World Bank report’s co-authors, opened the discussion by detailing some of its findings and their potential implications for the continent. e report estimates that by 2020, 650 million people will not have access to electricity in Africa. Mining operations obviously become more difficult in areas without sufficient energy infrastructure, as companies then have to find ways to meet their power needs themselves. Dr. Kerfalla Yansane, the Guinean minister of mines and geology, underscored this fact when discussing the costs of gold mining in Guinea. “For companies to self-supply electricity [for mining operations], it costs 25 cents to produce one watt. But if [companies] use other options, it can cost as little as 5 cents.” Benefit of Mining Companies In turn, African countries can benefit from the presence of mining companies because they make creditworthy consumers, leading to increased generation of capital and the potential for further foreign investment. Richard Morgan, the head of government relations for Anglo American, expressed concern that the relationship Investment Forum Focuses on Policy, Opportunity By Lorraine Kearney (Continued on page 16) Fast-growing economies, infrastructure opportunities, untapped mineral wealth … delegates at the Discovery Investment Forum hear how Africa could be the investment game-changer of the next two decades - provided it can stabilise its policies. Special Panel Unpacks ‘Power of the Mine’ Institutional Investor Managing Director, Christopher Fordham, hosts a “Conversation with Tony Blair.” Blair was Prime Minister of Great Britain and Northern Ireland from 1997 – 2007, having secured an historic third term in office. As leader of the Labour party, he led extensive public service reform, introduced a national minimum wage, oversaw constitutional reform, led the London 2012 Games bid and was instrumental in the Northern Ireland peace process. He also oversaw devolution in Scotland and Wales. Africa Governance Initiative Continuing his role in public life, he now works to secure peace and prosperity in the Middle East, improve governance in Africa, encourage understanding of world faiths and boost access to sport for children in the North East of England. “Mr. Blair has vast experience as a global leader and through the charity he founded in 2008, the Africa Governance Initiative, he has worked with African governments to improve regulation and investment oversight,” Jonathan Moore, Mining Indaba Managing Director, said. “As a result, Mr. Blair will provide unique and charismatic insights to our global delegation who are vested in capitalising African mining.” e former Prime Minister’s speech takes place at 12:25 this afternoon on the Main Stage. Tony Image? They call it Africa. We call it home. Connect with us at our hospitality area outside the Westin Grand Hotel from 3pm, Monday to Wednesday. www.standardbank.com/cib Authorised financial services and registered credit provider (NCRCP15) The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 191817-10/14 Moving Forward is a trademark of The Standard Bank of South Africa Limited Standard Bank Moving Forward TM Also trading as Stanbic Bank Global Commodities Trends PAGES 4 & 7 Copper and Gold PAGE 13 Tony Blair Former Prime Minister United Kingdom Tony Blair to Address Mining Indaba This Afternoon F ormer British Prime Minister Tony Blair will be the featured guest speaker today when Euromoney W ith more than 7,000 delegates attending the 21st Investing in African Mining Indaba, the world’s largest and most influential mining investment event, Managing Director Jonathan Moore welcomed delegates to the conference yesterday noting these are “challenging times.” Speaking on the opening day, Moore noted that Bloomberg tracking showed that commodities markets had fallen significantly in the past year. ere was sluggish growth in China, and the European Union and U.S. were also under strain. Among the attendees at Mining Indaba this year are senior representatives from more than 110 countries, among them key personnel from multi-national institutional investment firms, individual investors, A Key Driver Following Moore’s official welcome, Cape Town Mayor Patricia de Lille spoke to delegates about the event and its impact on the Mother City, saying that in the past eight years Mining Indaba had injected R552 million into the City of Cape Town, mostly in accommodation and tourism activities. “e Mining Indaba is a key driver in placing Cape Town as the events capital of Africa, and as such is benefiting By Lorraine Kearney portfolio managers, private equity managers, hedge funds, sovereign funds, merchant banks, analysts, and more. (Continued on page 16) between governments and the private sector could be difficult, with electricity tending to become a political issue. Mark Bristow, chief executive officer of Randgold Resources, pointed to the essence of this conflict: “We [in business] worry about the next quarter; governments worry about the next election.” Anita George, another panellist and a senior director of the Energy and Extractive Global Practice of the World Bank Group, contended that while government-business conversations required expert facilitation, such problems could be resolved. “A good question is: How do we get all parties around the table? e World Bank could be integral to that.” Focus: Ghana, Guinea and Zambia During the discussion part of the session, panellists answered questions posted online or submitted by the audience—many of them focusing in particular on Ghana, Guinea and Zambia. Nii Osah Mills, Ghana’s land and natural resources minister, said Ghana had achieved a degree of success in government-industry cooperation by encouraging privatisation by companies that could then provide electricity to the national grid. “I believe Ghana is a good example of what this report tries to point out.” Anglo’s Morgan expressed the hope that the conversation would continue in the mining world beyond the conference. “Firstly, we all need to go outside our envelope more than we have,” he said. “Secondly we need to realise that, with technology, there’s more than one way to do things.” By Robyn Kirk ’

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Page 1: Mining Indaba Show Daily News: Day1

24ºC

Tuesday10 February, 2015Issue 1

M i n i n g I n d a b a ™ D a i l y N e w s

New Expanded App CAPE TOWN

PRECIPITATION: 60%HUMIDITY: 48%

WIND26 KM/H

1

PAGE 11

‘Challenging Times’ Greet Mining Indaba 2015

Investors are focusing increasingly on Africa, which has posted “epic” growth of 6%, according to Frank Holmes, CEO and chief investment officer of U.S. Global Investors Inc.

Holmes spoke yesterday, the second day of the Investment Discovery Forum taking place alongside the Investing in African Mining Indaba programme. Themed “Beyond the obvious,” this year’s forum focused on untapped mining investment opportunities and the future of big mining in Africa.

Conducting a SWOT analysis of Africa, Holmes pointed to political risk, noting that some African governments could be less than friendly towards mining.

“In investing, the big thing is understanding demographics and understanding changes to growth: what are the policies that change or enhance growth?”

Cash Economy Growing

In the US, everything was based on the 10-year bond. In Africa, the economy was based on cash, not policy. “The cash economy is going to grow more rapidly, and it makes much more opportunity going forward.”

Forbes’ rich lists, Holmes said, were a marker for Africa’s growing economies. The continent’s 10 richest football players, for example, collectively brought in US$120 million a year; the rise of Nollywood was another positive statement about what was taking place in Africa.

Mounting input costs and inadequate electricity supply are two key constraints that could be resolved if the mining industry and African governments started working together, according to a report released by the World Bank last week.

“The Power of the Mine: A Transformative Opportunity for Sub-Saharan Africa” was the topic of a special panel discussion Monday at the start of Investing in African Mining Indaba.

Implications for the Continent

Sudeshna Banejee, one of six of the World Bank report’s co-authors, opened the discussion by detailing some of its findings and their potential implications for the continent.

The report estimates that by 2020, 650 million people will not have access to electricity in Africa. Mining operations obviously become more difficult in areas without sufficient energy infrastructure, as companies then have to find ways to meet their power needs themselves.

Dr. Kerfalla Yansane, the Guinean minister of mines and geology, underscored this fact when discussing the costs of gold mining in Guinea. “For companies to self-supply electricity [for mining operations], it costs 25 cents to produce one watt. But if [companies] use other options, it can cost as little as 5 cents.”

Benefit of Mining Companies

In turn, African countries can benefit from the presence of mining companies because they make creditworthy consumers, leading to increased generation of capital and the potential for further foreign investment.

Richard Morgan, the head of government relations for Anglo American, expressed concern that the relationship

Investment Forum Focuses on Policy, Opportunity

By Lorraine Kearney

(Continued on page 16)

Fast-growing economies, infrastructure opportunities, untapped mineral wealth … delegates at the Discovery

Investment Forum hear how Africa could be the investment game-changer of the next two decades -

provided it can stabilise its policies.

Special Panel Unpacks ‘Power of the Mine’

Institutional Investor Managing Director, Christopher Fordham, hosts a “Conversation with Tony Blair.”

Blair was Prime Minister of Great Britain and Northern Ireland from 1997 – 2007, having secured an historic third term in office. As leader of the Labour party, he led extensive public service reform, introduced a national minimum wage, oversaw constitutional reform, led the London 2012 Games bid and was instrumental in the Northern Ireland peace process. He also oversaw devolution in Scotland and Wales.

Africa Governance Initiative

Continuing his role in public life, he now works to secure peace and prosperity in the Middle East, improve governance in Africa, encourage understanding of world faiths and boost access to sport for children in the North East of England.

“Mr. Blair has vast experience as a global leader and through the charity he founded in 2008, the Africa Governance Initiative, he has worked with African governments to improve regulation and investment oversight,” Jonathan Moore, Mining Indaba Managing Director, said.

“As a result, Mr. Blair will provide unique and charismatic insights to our global delegation who are vested in capitalising African mining.”

The former Prime Minister’s speech takes place at 12:25 this afternoon on the Main Stage.

Tony Image?

Tony Image?

They call it Africa. We call it home.Connect with us at our hospitality area outside the Westin Grand Hotel from 3pm, Monday to Wednesday.

www.standardbank.com/cib

Authorised financial services and registered credit provider (NCRCP15)The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 191817-10/14

Moving Forward is a trademark of The Standard Bank of South Africa Limited

StandardBank Moving ForwardTM

Also trading as Stanbic Bank

140 x650mm

Global Commodities Trends

PAGES 4 & 7

Copper and Gold

PAGE 13

Tony Blair

Former Prime Minister

United Kingdom

Tony Blair to Address Mining Indaba This Afternoon

Former British Prime Minister Tony Blair will be the featured guest speaker today when Euromoney

With more than 7,000 delegates attending the 21st Investing in African Mining Indaba, the world’s largest and most influential mining

investment event, Managing Director Jonathan Moore welcomed delegates to the conference yesterday noting these are “challenging times.”

Speaking on the opening day, Moore noted that Bloomberg tracking showed that commodities markets had fallen significantly in the past year. There was sluggish growth in China, and the European Union and U.S. were also under strain.

Among the attendees at Mining Indaba this year are senior representatives from more than 110 countries, among them key personnel from multi-national institutional investment firms, individual investors,

A Key Driver Following Moore’s official welcome, Cape Town Mayor Patricia de Lille spoke to delegates about the event and its impact on the Mother City, saying that in the past eight years Mining Indaba had injected R552 million into the City of Cape Town, mostly in accommodation and tourism activities.

“The Mining Indaba is a key driver in placing Cape Town as the events capital of Africa, and as such is benefiting

By Lorraine Kearney

portfolio managers, private equity managers, hedge funds, sovereign funds, merchant banks, analysts, and more.

(Continued on page 16)

between governments and the private sector could be difficult, with electricity tending to become a political issue.

Mark Bristow, chief executive officer of Randgold Resources, pointed to the essence of this conflict: “We [in business] worry about the next quarter; governments worry about the next election.”

Anita George, another panellist and a senior director of the Energy and Extractive Global Practice of the World Bank Group, contended that while government-business conversations required expert facilitation, such problems could be resolved. “A good question is: How do we get all parties around the table? The World Bank could be integral to that.”

Focus: Ghana, Guinea and Zambia

During the discussion part of the session, panellists answered questions posted online or submitted by the audience—many of them focusing in particular on Ghana, Guinea and Zambia.

Nii Osah Mills, Ghana’s land and natural resources minister, said Ghana had achieved a degree of success in government-industry cooperation by encouraging privatisation by companies that could then provide electricity to the national grid. “I believe Ghana is a good example of what this report tries to point out.”

Anglo’s Morgan expressed the hope that the conversation would continue in the mining world beyond the conference. “Firstly, we all need to go outside our envelope more than we have,” he said. “Secondly we need to realise that, with technology, there’s more than one way to do things.”

By Robyn Kirk

’

Page 2: Mining Indaba Show Daily News: Day1

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When any sector is going through challenging times, it is often those individuals with a long-term vision and commitment, who travel far

and wide to position themselves to uncover the real insights, that ultimately make the most shrewd business investments. It is that old adage: it’s all about setting oneself up for success.

It has been well recorded that along with the Arctic, sub-Saharan Africa remains the most underexplored and highly prospective mineralised region on earth. It is at times such as this we need to remind ourselves of this fact.

The long-term demand for minerals will inevitably be upward as population growth continues globally, driving demand for resources. This will be entrenched by increased urbanisation and a growing middle-class in China, India and Africa.

‘Where the world connects with African Mining’

Already, over a third of Africa’s 1 billion inhabitants live in urban areas and that proportion is expected to rise to 50% by 2030. Africa’s total urban population is expected to exceed those of China and India by 2050 – just take a look at the demographic curves for many African nations.

As African economies have for the most part become increasingly stable and shown more consistent and predictable growth, overseas investors are steadily more comfortable with placing investment on the continent. Doors have opened to regions and projects that were considered off limits some years previously.

What is not clear however is who will be successful in capitalising upon these market drivers in this period of weak commodity prices.

While market dynamics for mining are indeed challenging this year, mining companies and investors come to Mining Indaba™ because it is where the world connects with African Mining™.

In challenging times more than ever insight is needed and that is only truly achieved when the right calibre of people are brought together.

New Owner, New InvestmentIn 2015 we are reaffirming our core value proposition for the event of uniting investors with attractive mining companies on the continent and, of course, key government actors.

In July Euromoney Institutional Investor PLC (“Euromoney”), the international publishing, events and electronic information group, acquired “Mining Indaba,” the most influential and global gathering of financiers, investors, mining professionals and government officials in the world’s largest mining investment event.

During the past five years the estimated value of the Mining Indaba brand has increased by 150% and we will continue to grow under its new ownership. What is notable is that Euromoney has identified a growing regional and international demand for investor-focused events in the $1.2 trillion global metals and mining sector.

This is significant. Euromoney will incorporate Mining Indaba into its market-leading stable of global commodities and investment brands, including Metal Bulletin, Industrial Minerals, Coaltrans, IJGlobal and Institutional Investor.

It will also draw on its strong links to institutional investors and governments worldwide to further enhance the investor content and networking which is at the heart of Mining Indaba.

In its 20+ years of existence Mining Indaba has become a vital pathway to channel billions of U.S. dollars from foreign investments into Africa’s mining sector.

In 2015 we have made substantial investments in the Mining Indaba at a time when other events and the overall sector is contracting.

This reaffirms our belief that Africa mining continues to have an optimistic outlook with many long-term potentials on the horizon. We are investing because Africa‘s natural riches continue to be within the sights of some of the world’s largest investors both private and public.

Enhanced Insight and ContentWhile during the latter half of 2013 and the first half of 2014 much of the mainstream news media’s focus was on the protracted labour issues in South African mining, that has somewhat overshadowed the reporting of African mining prospects.

Over the past 20 years, Mining Indaba has established itself as the must-attend event for professionals currently vested or looking to vest in attractive mining opportunities throughout ALL of Africa. We are committed to bringing Africa’s most attractive mining investment opportunities to the world’s investors.

Industry Defining Speakers

We have made significant investments to bring distinguished experts to present a global overview of the mining sector, macro-economic dynamics impacting the mining sector, and the overall investment climate in Africa. Just an example of the investment focussed content includes:

• Distinguished Keynote Presentations from: � Tony Blair, Former Prime Minister of the

United Kingdom

� Robert Friedland, Executive Chairman and Founder, Ivanhoe Mines Ltd.

� Anita George, Senior Director, Global Practice on Energy and Extractive Industries, World Bank Group

� Dr. Dambisa Moyo, International Bestselling Author and Global Economist

� Rob Hersov, Founder & Chairman, Invest Africa

� Jim O’Neill, Chairman, Cities Growth Commission

� Bob Diamond, CEO & Founding Partner, Atlas Merchant Capital

� Paolo Scaroni, Vice Chairman, Rothschild

� Ashish Thakkar, Founder, Mara Group & Mara Foundation

• Greater breadth of corporate mining presentations with representation from high-end juniors to mid-tier to multinational mining companies.

• Geo-centric investment panels providing comprehensive discussion on opportunities in ALL of Africa’s emerging hot zones. Panel members will include sovereign wealth fund managers with significant investment holdings in Africa’s natural resources sector, institutional investors with an appetite for new commodities and emerging regions, mining ministers with case studies on attracting mining companies into their respective nations, and much more. Deep dive into specific African nations with detailed overviews on country’s progressive mining policy, new companies and projects, and other critical investor insight.

We are about bringing pan-African mining opportunities and investors together. With our new owner and re-affirmed focus on investors, Mining Indaba is well placed to deliver exciting, new learning and networking opportunities that will deliver value to approximately 7,000 professionals from more than 110 countries with one common focus: investing in African mining.

Bringing African Mining Investors Together

1 Mining Indaba Opening Highlights

2 Commentary

4 Commodities: Low Prices Impact Market

6 Mining Company Listings

7 Commodities: African Mining Sector

10 Exhibitor List

11 Expanded Mobile App for Delegates

13 Outlook: Gold and Copper

14 Ministerial Forums; Special Sessions

By Jonathan Moore Managing Director, Mining Indaba

7:30-18:00 Exhibit Hall Open

8:05-8:25H.E. Minister Ngoako Ramathlodi, Republic of South Africa

Main Stage

8:05-8:25 Jim O’Neill, BRUEGEL Main Stage

9:15-9:35 Anglo American company session Main Stage

9:35-9:55 Rio Tinto company session Main Stage

12:25 Tony Blair, Former British Prime Minister Main Stage

13:15-14:45 Networking Lunch Lunch Marquee

16:05-16:55Keynote Panel: How Will Private Equity Impact the Mining Sector?

Main Stage

16:55-17:35ICMM Panel on Investing and Sustainable Mining

Main Stage

17:35-18:20 Cocktail Reception Exhibition Hall

19:30-21:00 Gala Dinner Vergelegen Estate

TABLE OF CONTENTSMining Indaba™ www.miningindaba.com

The official daily newspaper covering the 2015 Investing in Africa Mining Indaba™ conference and related events, including special activities by sponsors, exhibitors, and attendees.

Mining Indaba™225 Park Avenue South, Floor 6New York, NY 10003 USA+44 207 779 8890

Mining Indaba™ and Euromoney Institutional Investor PLC assume no responsibility for the validity of sponsor, exhibitor or attendee claims in items reported.

©2015 Mining Indaba™. All rights reserved.

Editorial and ProductionMike BottaChief EditorMelissa OsterwellGraphic DesignerGracjan LisGraphic Designer

CorrespondentsLorraine Kearney Robyn KirkKudzai Mazvarirwofa Elias Nkabinde

MarketingMaria PalombiniGroup Marketing Director

CorporateJonathan MooreManaging Director

2

TUESDAY HIGHLIGHTS

SHOW DAILY 2015

“I think it’s a very good event…and a useful forum for us to have a lot of meetings in one go instead of traveling around the globe.”

– Delegate from MagIndustries Corp., 2014 Mining Indaba

“It’s very beneficial for us, we get a lot out of it, we pick up a lot of business out of Indaba every year. We meet new people, we meet new clients, and we reinforce our relations with our existing clients.”

– Delegate from NedBank Capital, 2014 Mining Indaba

Page 3: Mining Indaba Show Daily News: Day1

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Low Prices Lead to Slow Down, Cutback, Divestment Talk By Show Daily Staff

Falling commodities prices have led to a slow down in production, a shelving of some operations, and renewed interest in divesting certain mining assets, according to

Michael Widmer, Head of Metals Research, Bank of America Merrill Lynch.

“We do see a bit of a divergence in production trends,” Widmer said in a pre-Mining Indaba interview. “On the base metal side producers have been the most proactive in showing production discipline.” The picture is a bit different for thermal coal and iron ore, he added, where there is still a fair amount of supply coming into the market.

Widmer was featured on the Mining Indaba program schedule as a participant in Monday’s Commodities Review and Outlook Forum: Global Commodities and Exploration Trends Panel.

“A lot of the mines have cutbacks in reaction to falling prices, that is certainly a reality,” Widmer said. “We do see companies trying to divest operations,” Widmer said. “BHP comes to mind, Vale, Anglo American to some extent is always rumored to maybe have a second look at the platinum operations, although for slightly different reasons. Divestment is an issue in the industry and it’s being looked at quite actively.”

China, China, China

As a number of mining analysts and bankers have been noting of late, the slowdown in China’s economy has taken a toll on commodities prices, many pointing in particular to difficulties in the residential housing sector. Widmer agreed to an extent, but said the longer-term issue for China is a general rebalancing of its economy.

“Housing contracting is a fair comment,” he said. “Housing starts are very weak in China. There’s a fair amount of housing inventory in the country that had been built in previous years and that is certainly somewhat problematic at the moment.” But, other factors also came into play, including last year’s government-run anti-corruption campaign in copper that led to severe under-spending relative to target and lower spending by the state-run power grid.

Another issue, Widmer said, involves imports. “The Chinese may import raw materials like mine supply, but in refined material generally they’ve become much more self-sufficient,” he said. “Once they import the raw materials, they process it domestically into refined material. The only base metal where they are still a material net importer right now is copper. For the rest they are more or less balanced on the refined side, and that is a big change for the market compared to what we’ve seen in previous years.

He noted that a longer term challenge is one of general rebalancing of the economy and that China has put in place a number of government initiatives to do just that.

Africa Challenges

As for Africa in particular, one of mining’s biggest challenges remains the lack of adequate infrastructure. Unlike countries such as China, which invest in infrastructure rather than just focusing on extraction of raw materials and resources, many African nations fall short in that regard.

“In some nations, infrastructure—power infrastructure in particular—does provide a severe obstacle to growth of the industry,” Widmer said.

Lack of rail transport and access to ports also are often cited as obstacles for mining companies in parts of Africa, in some instances leading to alternate measures of handling concentrate.

“In some of the countries in the copper belt, you don’t have the smelting capacity locally or domestically so copper concentrates are (at times) shipped to the other countries, but every once in a while, regionally or nationally, someone steps in and says we want to build the smelting industry domestically and effectively stop the shipment outside the country,” he said. “It’s not just an issue in Africa. We do see it in a lot of other places—Indonesia to pick another country outside the region that has taken similar steps.”

Can African Nations Cooperate?

As for cooperative efforts among nations to solve cross-border infrastructure issues, Widmer said while it’s difficult to generalise, there is a degree of infrastructure integration, in South Africa power for example, from one place to another but whether that can be improved upon is a different question.

“Go into some of the Central African countries and the degree of integration is somewhat lower than in the southern part of Africa,” he added. “There’s a bit of give and take, but integration certainly would help.”

Last year, the Ebola crisis also caused transportation difficulties for mining companies in the affected region, although the impact today appears to be rather limited.

“It was a big operational issue for producers in some of the Ebola regions,” he said. “We do know that a lot of the mining operations were not impacted, but in terms of infrastructure and shipping of mined material through portions of Africa, those are areas where we were hearing about trade barriers

being erected. There was a period last year where trucks filled with copper were not allowed to cross every border on fear that drivers would carry Ebola with them, but miners have been quite good to work around these issues.”

Brownfield vs. Greenfield

As for investment in new or existing mining operations, Widmer said mining companies generally like brownfield over greenfield operations since the infrastructure is in place, including the roads, power, and housing for the workers.

“Greenfield brings a lot of issues in that you don’t know exactly what you get. There are difficulties in the ore body,” he said. “If you go to a brownfield operation it’s already running (and they’ve) been mining it quite a while so you invest to sustain operations or invest to expand operations and that is normally much more straightforward, and it is cheaper.

Political Unrest

With some exceptions, most of the continent also has sidestepped any direct difficulties caused by political unrest in the Middle East and parts of Northern and Western Africa, according to the metals research executive.

“In Egypt there is a gold miner directly impacted by the Arab Spring a couple of years back with a lot of uncertainty about whether their operating licenses would be reviewed, and it contributed to quite a bit of downward pressure on the share price of that company,” he said. “Similar trends have been seen in other nations, but generally many of the key mining nations have not been immediately impacted, apart from a few exceptions like Egypt last year.”

Middle Class Growth

In macroeconomic terms, there’s been a continued expansion of the middle class across the continent, leading to increased demand for goods, services and products containing more commodities content. Such economic growth on a longer-term basis might bring new questions concerning how various African governments will ultimately manage mining activities.

Elsewhere, as affluence grows among populations, it sometimes leads to governments taking a more hands on approach to mining, adding regulations and new taxes, actions that could trigger eventual concerns for big mining companies.

As for taxes, Widmer said that mining companies on a comparative basis do keep a watchful eye, “but in reality you

have to pay taxes in every country you mine.” He said a global trend by governments to extract more money from mining companies intensified after the 2008-2009 period.

The Government Threat

A larger concern for mining companies centers on the extent of possible government involvement in the sector. The biggest potential involvement is nationalisation, he said, a discussion that has crept into the mining conversation, including in South Africa and Zimbabwe.

Nationalisation could potentially affect investment, including the knowledge investment that international mining companies bring to several countries on the continent, he said.

Meanwhile, mining companies generally have been working hard to include sustainability efforts and supporting the local communities, he said. In some communities the companies have counseled the locals on HIV and protection from the disease, and made efforts to involve communities in project development.

Such efforts are also taking place on a global basis as, more so than in the past, miners today try to be good citizens, Widmer said, adding that pockets of discontent still pop up along the way and mining companies still face obstacles—government being one of them—that at times prevent them from going further along that path.

Some Good News

One current bright spot for many mining companies, according to Widmer, is the strong U.S. dollar.

“They love it because it protects the margins,” he said about the international miners. “Your revenue base tends to be in the U.S. dollar, but your cost base tends to be in regional currencies, so a strong dollar and weaker domestic currency helps to protect the margins. For South Africa, to pick one, and also Australia, that has been quite significant in protecting their margins.”

Show Daily conducted a Q&A session with CPM Group’s Jeffrey Christian,

another featured member of the Global Commodities and Exploration

Trends Panel. See Page 7.

Economics, Trends, Growth, Investment Policy and Deal-MakingHow Will These Pieces Define African Mining?

BE HERE IN 2016 TO FIND OUT!

STD 16.indd 1 2/2/15 7:17 PM

Page 5: Mining Indaba Show Daily News: Day1

Teacher at Batlharo Tlhaping High SchoolMothibistadt

ANDREW MODUPI LEHOETE

A GREAT TEACHER NEVER

STOPS LEARNING

Andrew Lehoete is a mathematics teacher at Batlharo Tlhaping High School in Mothibistadt. His big concern is the lack of interest in mathematics in South Africa. Thanks to the bursary he received from the Sishen Iron Ore Community Trust, Andrew got the opportunity to further his education and now he is confi dent that he can get his students to achieve a 100% pass rate. Because at Anglo American, we know that when you teach a teacher, you teach a nation.

Join us at the 2015 Mining Indaba™ and discover how we are partnering with others to create shared value for South Africa.

www.angloamerican.co.za

12044 Andrew Lehoete 295x450.indd 1 2015/01/28 4:50 PM

Page 6: Mining Indaba Show Daily News: Day1

6

Stand: 214A-Cap ResourcesA-Cap Resources Ltd has one of the largest uranium deposits in the world, with distinct comparative advantages in terms of process design and infrastructure, and its location in one of the best mining investment environments in the world. A-Cap’s key objective is to move the project rapidly towards development and production, position it to become a secure long term supplier of uranium for the growing nuclear industry and in doing so release for shareholders the substantial latent value underlying this massive uranium asset. (Source: http://acap.com.au)

Level 16, AMP Building140 St Georges TerracePerth WA 6000+61 08 9220 9850acap.com.au

Stand: 214Acacia Mining plcAcacia Mining plc, formerly African Barrick Gold, is Tanzania’s largest gold miner and one of the largest producers of gold in Africa. The company has three producing mines, all located in Northwest Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of exploration projects in Tanzania, Kenya and Burkina Faso. Their approach is focused on strengthening their three core pillars; their business, their people and their relationships. The name change from African Barrick Gold to Acacia Mining reflects a new approach to mining, and an ambition to create a leading African company. (Source: Acacia Mining plc information supplied to Mining Indaba 2015)

No. 1 Cavendish Place, LondonW1G 0QFUnited Kingdom +44 20 7129 7150www.acaciamining.com

Stand: 212African Rainbow Minerals African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with long-life, low-unit-cost operations. ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metal, nickel and coal. ARM also produces manganese and chrome alloys and has an investment in gold through its shareholding in Harmony. (Source: African Rainbow Minerals information supplied to Mining Indaba 2015)

24 Impala RoadChislehurston Sandton 2146South Africa+27 11 779 1300www.arm.co.za

Stand: 2301Anglo AmericanAnglo American is a global and diversified mining business that provides the raw materials essential for economic development and modern life. Anglo American’s people are at the heart of their business. It is their people who use the latest technologies to find new resources, plan and build their mines and who mine, process and move and market their products – from bulk commodities and base metals to precious metals and diamonds (through De Beers) – to their customers around the world. Anglo American’s diversified portfolio of products spans the economic development cycle and, as a responsible miner, they are the custodians of precious resources. The Company works together with their key partners and stakeholders to unlock the long-term value that those resources represent for their shareholders, but also for the communities and countries in which the Company operates – creating sustainable value and making a real difference. Anglo American’s mining operations, growth projects and exploration and marketing activities extend across southern Africa, South America, Australia, North America, Asia and Europe. (Source: Anglo American information supplied to Mining Indaba 2015)

44 Main StreetJohannesburgSouth Africa+ 27 11 638 9111southafrica.angloamerican.com

Speaker ParticipantAngloGold Ashanti LtdHeadquartered in Johannesburg, South Africa, AngloGold Ashanti has 20 gold mining operations in 10 countries, as well as several exploration programs in both the established and new gold producing regions of the world. AngloGold Ashanti produced 4.1Moz of gold in 2013, generating $5.5bn in gold income, utilizing $1.62bn capital expenditure. AngloGold Ashanti has an attributable Ore Reserve of 67.9Moz of gold and an attributable Mineral Resource of 233.0Moz. (Source: AngloGold Ashanti Ltd information supplied to Mining Indaba 2015)

76 Jeppe StreetNewtownJohannesburg, 2001South Africa+27 11 637 6000 www.anglogoldashanti.com

Stand: 3906B2Gold Corp.B2Gold Corp. is a Vancouver based gold producer with four operating mines (two in Nicaragua, one in the Philippines and one in Namibia) and a strong portfolio of development and exploration assets in Namibia, Nicaragua, Mali, Burkina Faso and Colombia. (Source: B2Gold Corp. information supplied to Mining Indaba 2015)

3100-595 Burrard St.Vancouver, British ColumbiaCanada+1 604 681 8371www.b2gold.com

Stand: 3413Boart LongyearBoart Longyear is the leading provider of mineral exploration drilling services and drilling products in the world today. The company is the only integrated drilling services and products provider, combining engineering excellence, global manufacturing facilities and the most experienced drilling services group in the business. Celebrating 125 years in 2015, Boart Longyear ultimately delivers unmatched reliability, productivity, and safety to the worksite. (Source: Boart Longyear information supplied to Mining Indaba 2015)

10808 South River Front ParkwaySuite 400South Jordan, Utah 84095United States+1 801 972 6430 www.boartlongyear.com

Stand: 1112Bondoukou Manganese S.A. These mines are located near the Bondoukou town, in the Zanzan Region of Ivory Coast, 420 km from the northeast corner of the nation, bordering Ghana and Burkina Faso. Bondoukou Manganese Mines have a potential reserve of 8.3 million tons of Mn at an average grade of 32%. The permit covers an area of 150 km2. (Source: http://www.navodayatrading.com/bondoukou.html)

PO Box 18 BP, 1984 Abidjan 18Ivory Coast+22 5020211137/39www.navodayatrading.com/bondoukou.html

ParticipantBumbar MiningBumbar Mining is a communications agency that operates in Angola, exclusively for the promotion of the country’s Geological and Mining sector, with magazines and events at local and international level. In Angola, it is a reference in the provision of communication services, marketing, sales and multifaceted support to the sector; whereas outside the country, it promotes the mining industry brands through exhibitions and database directories on companies that provide services to the mining sector. (Source: Bumbar Mining information supplied to Mining Indaba 2015)

Fubu, CamamaMunicipio de Belas, Luanda – Angola+244 993 334 716www.bumbarmining.com

Stand: 902Cardinal ResourcesCardinal Resources Limited is a focused gold exploration and development company with plans to be a near term producer. Its key assets are located in the mineral-rich country of Ghana, Africa. Cardinal owns and operates 2 drill rigs and has in country infrastructure, which allows it to be a low cost exploration and development company. Cardinal has its operational base located within close proximity to the Bolgatanga Project in North East Ghana and has its corporate office located in Perth, Western Australia. (Source: www.cardinalresources.com.au)

Bolgatanga0Ghana+233 261 905 220www.cardinalresources.com.au

Speaker ParticipantCentamin plcCentamin is a mineral exploration, development and mining company dual listed on the London and Toronto Stock Exchanges. Centamin’s principal asset, the Sukari Gold Mine, began production in 2009 and is the first large scale modern gold mine in Egypt, with an estimated 20 year mine life and ramping up production towards a 450,000-500,000 ounce per annum target from 2015 onwards. Centamin’s development and operating experience gives them a significant advantage in acquiring and developing other gold projects. Centamin’s regional exploration in the Arabian Nubian Shield is focused in Ethiopia where in addition to its existing licenses the Company has a joint venture arrangement with AIM-listed Alecto Minerals plc. Centamin also has a regional exploration license portfolio in Burkina Faso and Côte d’Ivoire, following its acquisition of ASX-listed Ampella Mining Ltd in 2014. (Source: Centamin plc information supplied to Mining Indaba 2015)

2 Mulcaster StreetSt Helier, JerseyJE2 3NJUnited Kingdom+44 1534 828 700www.centamin.com

Stand: 1913COMILOG SACOMILOG SA is a subsidiary of ERAMET. ERAMET acquired 46% of the equity in COMILOG (Gabonese Republic), the world’s second-largest producer of high-content manganese ore and also one of the leading producers of ferromanganese for manufacturing iron and steel and manganese-based chemical products. (Source: www.eramet.com)

Tour Maine Montparnasse33, Avenue du Maine75755 Paris Cedex 15France+33 1 45 38 42 42 www.eramet.com

Stand: 4306Copperzone ResourcesCopperzone Resources is a Canadian-incorporated, innovative company, focusing exploration and development on properties and projects in one of the world’s most renowned mining regions, Zambia’s NW Province and Copperbelt. With seasoned leadership and experienced investors, Copperzone has partnered with three majors on several of its licenses. (Source: Copperzone Resources information supplied to Mining Indaba 2015)

440-55 Metcalfe StreetK1P6L5Canada+1 613 612 5874www.copperzone-resources.com

Stand: 1307Cradle Resources Limited

Cradle Resources Limited (Cradle) is an international niobium development company through its acquisition of a 50% interest in the Panda Hill Niobium Project in Tanzania, with the rights to acquire the balance. The acquisition makes CXX one of the few niobium developers in the world with the market tightly controlled by three large producers and 90% of the supply coming from Brazil. (Source: Cradle Resources Limited information supplied to Mining Indaba 2015)

PO Box 7209, Cloisters Square6850Tanzania +61 8 9389 2000www.cradleresources.com.au

Stand: 2502CRONIMET Mining AGCRONIMET Mining, a member of family-owned CRONIMET, is a strategic investor and dealer in raw materials. From its headquarters in Karlsruhe, Germany, CRONIMET Mining offers integrated solutions for mining, processing, trading and renewable mining energy. With 20 subsidiaries and strategic partners across three continents and its own raw material storage facilities in South Africa and Armenia, the Company employs a workforce of over 3,500 staff. CRONIMET Mining is committed to operating sustainably with regard to resources and the environment, and driving progress and development in the regions where the company is active. (Source: CRONIMET Mining AG information supplied to Mining Indaba 2015)

Südbeckenstr. 22D-76189 KarlsruheGermany+49 1 622 653926www.cronimet-mining.com

Stand: 121DMSA/Ambatovy

Ambatovy is a large-tonnage, long-life nickel and cobalt mining enterprise located in Madagascar. At a total project cost of more than US$7 billion, Ambatovy is the largest-ever foreign investment in the country – and one of the biggest in sub-Saharan Africa and the Indian Ocean region. It ranks among the largest lateritic nickel mining entities in the world. Ambatovy aims to be a leader in operational efficiency, health and safety, environmental management, and social engagement, while contributing to the long-term prosperity of Madagascar. (Source: www.ambatovy.com)

Immeuble Tranofitaratra 7ème étage Rue Ravoninahitriniarivo Ankorondrano Antananarivo 101 Madagascar +261 20 22 397 35www.ambatovy.com

Stand: 3213Endeavour Mining Corporation

Endeavour is a gold producer delivering growth. Endeavour owns four gold mines producing more than 450,000 ounces per year in Mali, Ghana, Burkina Faso, and Côte d’Ivoire. In addition, in November 2013 a Feasibility Study for the Houndé Project in Burkina Faso was completed showing potential for approximately 180,000 ounces per year over 8 years. The project is now in permitting. (Source: Endeavour Mining Corporation information supplied to Mining Indaba 2015)

Suite 3123595 Burrard StreetVancouver, BC V7X 1J1Canada+1 604 685 4554www.endeavourmining.com

Stand: 3313First Quantum Minerals

First Quantum Minerals Ltd. is an established and rapidly growing mining and metals company operating seven mines and developing five projects worldwide. The company currently produces copper, nickel, gold, zinc and platinum group elements. The company’s current operations are the Kansanshi copper-gold mine, the Guelb Moghrein copper-gold mine, the Las Cruces copper mine, the Kevitsa nickel-copper-PGE mine, the Pyhäsalmi copper-zinc mine, the Ravensthorpe nickel-cobalt mine, and the Çayeli copper-zinc mine. In addition, the company is developing projects in Zambia, Panama and Peru that when complete, will increase their annual copper production capacity to more than 1.3 million tons per annum. (Source: First Quantum Minerals information supplied to Mining Indaba 2015)

Suite 1000330 Bay StreetToronto M5H 2S8Canada+1 416 361 6400www.first-quantum.com

Stand: 1107Frontier Rare EarthsFrontier Rare Earths is an exploration and development company principally focused on projects in Africa. Our flagship asset is the Zandkopsdrift rare earth deposit located in the Northern Cape Province of South Africa and is one of the largest, code compliant rare earth deposits under development worldwide. (Source: Frontier Rare Earths information supplied to Mining Indaba 2015)

Metropolitan Life Building7 Walter Sisulu Avenue, 8001Cape TownSouth Africa+27 21 4466 040www.frontierrareearths.com

Stand: 1115Gryphon Minerals LimitedGryphon Minerals Limited is an emerging West African Gold Producer focused on developing the 3.6 million ounce Banfora Gold Project in Burkina Faso. (Source: Gryphon Minerals Limited information supplied to Mining Indaba 2015)

288 Churchill AvenueSubiaco 6008Australia+61 4 0855 3016www.gryphonminerals.com.au

Stand: 405Hanno ResourcesHanno Resources is a mineral exploration company focused on the Reguibat Shield of northwest Africa. The company completed an exclusive 4-year Technical Cooperation Agreement (TCA) evaluating the mineral potential of Western Sahara in June 2011, earning first right to license up to 20,000km2 of ground. The results of the TCA have given Hanno significant first mover advantage in this highly prospective but very sparsely unexplored area. (Source: www.hannoresources.com)

PerthWestern Australia+61 414 103 378www.hannoresources.com

Stand: 506Harmony Gold Mining Company LimitedMining and exploration operating in South Africa and Papua New Guinea (PNG). Building world class mines in South Africa and PNG. Nine underground mines, one open pit operation and several surface sources in South Africa. 50% joint venture in PNG with Newcrest Mining Ltd. Hidden Valley open pit mine. Golpu project. Exploration. 100%-owned PNG exploration areas. Company changing exploration projects. Low debt with facilities available. Generating robust margins and earnings. Empowered. Compliant with 2014 Mining Charter requirements. Employs about 34 686 people (including 5 695 contractors) in South Africa. Employs about 60 employees in Papua New Guinea (excluding employees from the Morobe Mining Joint Venture). 435 825 447 shares in issue at 30 June 2014. Market capitalization of R13.58bn (US$1.28bn) at 30 June 2014. Listed on JSE Limited, New York Stock Exchange) and Berlin Stock Exchange. (Source: Harmony Gold Mining Company Limited information supplied to Mining Indaba 2015)

P.O. Box 2Randfontein 1760South Africa 27 11 411 2000www.harmony.co.za

ParticipantHindustan Copper LimitedHindustan Copper Limited (HCL), a public sector undertaking under the administrative control of the Ministry of Mines, was incorporated on 9th November 1967. It has the distinction of being the nation’s only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products. (Source: www.hindustancopper.com)

1, Ashutosh Chowdhury AvenueKolkata 700019+91 (0) 33 2283 2226/2529/2952/2871/2032www.hindustancopper.com

Stand: 2609Infra Tech EngineeringInfra Tech Engineering’s key organizational competencies revolve around their Consulting and Construction service divisions. The company employs state of the art technology in ground investigations, geotechnical and pavement design solutions, ground improvement and earthworks construction. Infra Tech Engineering is a solutions provider, building their reputation on innovative and cost effective solutions through applied and theoretical research. Infra Tech operates across the following sectors: Mining, Civil Infrastructure, Land Development, Oil and Gas, Government, Logistics and Industrial. (Source: Infra Tech Engineering information supplied to Mining Indaba 2015)

P.O. Box 441Willetton WA 6955Australia+61 9395 5000www.infratecheng.com

ParticipantIntra Energy CorporationIntra Energy Corporation Limited (IEC) is an Australian-based mining and energy company with major thermal coal assets in Eastern Africa. IEC’s strategy is “African coal to power African growth.” IEC is the only operating thermal coal miner in Eastern Africa. Its flagship project in Tanzania is the Tancoal mine in the Ngaka Coalfield in Tanzania, operated by Tancoal Energy Limited, a joint venture with the National Development Corporation of Tanzania. In January 2013, IEC acquired the operating Nkhachira coal mine in northern Malawi and has commenced mining through its subsidiary, Malcoal Mining Limited. IEC continues to geographically expand its coal asset base in Eastern Africa and is forming partnerships with organizations judged to be leaders in geological excellence, capable of providing known and potential coal resources for development. The preferred acquisition methodology is by farm-in arrangement for early stage development and joint venture or direct purchase for advanced projects with defined JORC resources. Power generation projects and utilization opportunities will involve consortium formation in which IEC will seek an equity position. The Company’s vision is to “become a leader in the development and operation of coal assets to provide energy security solutions and create wealth for its shareholders”. (Source: Intra Energy Corporation information supplied to Mining Indaba 2015)

Suite 2001 Level 20 Australia Square264 George St.Sydney, NSW 2000Australia+61 2 9199 5511www.intraenergycorp.com.au

Stand: 906IronRidge Resources LimitedIronRidge Resources Limited is an Australian domiciled unlisted company focused on iron ore exploration in the Republic of Gabon, West Africa. IronRidge’s projects include Belinga Sud and Tchibanga, both strategically located. Belinga Sud is directly adjacent to a known non- JORC resource (1bt at 60%Fe) currently being upgraded to JORC compliance by the Gabonese government and Tchibanga is ideally located approximately <70km from the proposed deep water port of Mayumba. Both project areas confirm DSO high grade material. (Source: IronRidge Resources Limited information supplied to Mining Indaba 2015)

Level 27, 111 Eagle StreetBrisbane 4000Australia+61 7 3303 0680www.ironridgeresources.com.au

Stand: 2402Ivanhoe MinesIvanhoe Mines, with offices in Canada, the United Kingdom and South Africa, is advancing and developing its three principal projects: the Kamoa copper project, the Platreef platinum project, and the Kipushi zinc-copper mine. Ivanhoe is evaluating other opportunities as part of its objective to become a broadly based, international mining company. (Source: Ivanhoe Mines information supplied to Mining Indaba 2015)

82 on Maude, Second Floor82 Maude StreetSandton 2146South Africa+27 11 088 4300www.ivanhoemines.com

Stand: 1402Jindal Africa Investments (Pty) LtdJindal Africa is a part of Indian multinational conglomerate Jindal Steel and Power Limited (JSPL), which in turn is part of the US$18 billion, diversified O.P. Jindal Group. This industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil & gas, and infrastructure sectors. (Source: Jindal Africa Investments (Pty) Ltd information supplied to Mining Indaba 2015)

Building 1 Parc Nicol3001 William Nicol DriveBryanstonJohannesburg 2021South Africa+27 11 706 8420www.jindalafrica.com

Stand: 803Kibaran Resources LimitedKibaran Resources Limited is an ASX-listed resource company developing the Mahenge Graphite Project with its advanced Epanko Deposit and nickel exploration project in Tanzania, East Africa. (Source: Kibaran Resources Limited information supplied to Mining Indaba 2015)

P.O. Box 2106Subiaco Western Australia6904Australia+61 8 6380 1003www.kibaranresources.com

Select Mining Company Sponsors and Exhibitors

M i n i n g I n d a b a ™ D a i l y N e w s

More Mining Company Sponsors and Exhibitors tomorrow, Page 6

Page 7: Mining Indaba Show Daily News: Day1

Facilitating the realisation of the Africa Mining Vision

Domesticating the Africa Mining Vision through the Country Mining Vision

“What is a Country Mining Vision (CMV)?”The CMV is a tool designed to facilitate the domestication of the Africa Mining Vision at the country level. The mission of the CMV is to

enable African countries use the mining sector as a transformative vehicle for development. The CMV further provides decision-makers and stakeholders with clear and simple guidelines and options for aligning their mining policies to the goals and objective of the AMV.

“How can I learn more about the CMV and how it works?”The African Mineral Development Centre (AMDC) has produced a simple guide called the “Country Mining Vision Guidebook: domesti-

cating the Africa Mining Vision”. The CMV Guidebook provides a clear roadmap for member States to domesticate the Africa Mining Vision (AMV) at the national level. This can be done through a multi-stakeholder consultative process that will lead to broad-based development and

structural transformation in their country.

You can pick up an English or French hard copy of the Guidebook at the AMDC’s booth at Mining Indaba 2015, or by emailing the AMDC directly at [email protected];

More: www.africaminingvision.org: Follow the conversation on twitter: #africaminingvision #africamining African Union

The Global Factors Influencing African Mining An Interview with Market Analyst Jeffrey Christian

Jeffrey Christian, Managing Partner and founder of CPM Group, is a top authority on the global markets for gold, silver, and the platinum group metals, and is well known for his work on other commodities and on commodities derivatives, both for hedging

and investment purposes.

Show Daily interviewed him prior to his scheduled appearance as a key member of Mining Indaba’s Commodities Review and Outlook Forum: Global Commodities and Exploration

Trends Panel held yesterday.

Following are edited excerpts of that interview.

Mining Indaba (MI): What is the macro outlook for African mining, the positives and the negatives?

Jeffrey Christian (JC): The positives for the mining industry per se have to do with GDP growth, the likelihood that demand for basic raw materials will grow over time because of real economic growth and because of population growth.

As for the specific things that will help African mining companies, that’s difficult. To be honest, the African mining industry has a lot of issues that it needs to reconcile in order to be competitive with corporations based in Australia and Canada.

That said, we’ve seen some very creative reorganization. AngloGold Ashanti has done some very interesting things to lower its costs dramatically. Over the last 2 years we’ve seen much more aggressive management in tackling issues to deal with the idea that prices can fall, more action perhaps than you’ve seen with the management of some of the large corporations based in London, North America or Australia.

MI: With Africa’s Middle Class expanding, what’s the impact on mining?

JC: It has several impacts. First off, you’re seeing increased demand within the continent of Africa. As economies develop, people often talk about mining becoming less important or a smaller percentage of GDP for that country. That’s true, but that masks the reality that as a country advances economically and a middle class emerges, they tend to consume more raw materials including metals. So the consumption and the need for the metals—and sometimes the production if the resources are available domestically—actually increases even as the percentage of GDP declines.

The other thing, which is perhaps more important, is that as a middle class emerges they become more financially and economically sophisticated so that there is perhaps a movement away from this quasi post-colonial-neo socialist sentiment that mining companies are bad and they rape and pillage over to a more nuanced understanding that mining is an integral part of modern economics and that it’s good to have a mining industry domestically rather than just importing all raw materials.

MI: Are any particular countries further along in progress for the Middle Class?

JC: I think Tanzania and Ghana in the African context, and Zambia to some extent. The Democratic Republic of Congo seems to be making some interesting strides now where they maybe were a little bit behind the curve, but they seem to have caught on. But, I’d say Tanzania and Ghana—and to a lesser extent Zambia—really jump off the page as countries that picked up on it early.

MI: Infrastructure spending: What’s working, what isn’t, and where?

JC: It’s definitely happening and working in South Africa. It’s probably happening in Namibia and to a lesser extent Nigeria, although Nigeria is having political problems that have been limiting it. My understanding is that Tanzania has made very good strides over the past decade or so. I think that infrastructure investment has proceeded, but it’s obviously being constrained by financial problems since the Great Recession. There’s a greater understanding that there’s a direct overall societal economic benefit to infrastructure spending.

MI: Some suggest that the China slowdown and oil price slide may cause another world recession?

JC: I think there’s a real danger there. Our own view is that what you see since 2010 has been a rolling recession. The U.K. took a recession and then Europe and Japan, and now Japan’s moved back into recession and Europe is sort of teetering on the brink.

The slowdown in the Chinese economy is overplayed by a lot of people. The Chinese economy probably has greater strength and resiliency than a lot of commentators seem to indicate. That said, the slowdown in Chinese demand clearly is affecting Europe and other parts of the world—Australia, Chile—in terms of demand for imported goods within China.

Our view is that we’ll avoid a world recession in 2015 and probably 2016 as well. We can see a recession in the United States sometime between 2016 and 2018. Our expectation is that it would probably be relatively shallow so we’re not that worried about it.

What we see is an extension of the post-2009 period of sub-par growth with higher unemployment and lower returns on investments than had been the case prior to 2008.

MI: How much does political unrest affect mining?

JC: It is important. It does have an effect. Resource nationalism and political instability have negative effects on mining in specific countries—Argentina is probably the biggest one from that perspective—and the civil unrest in Sudan where oil, gas and mining resources are going untapped.

Southern Egypt has mining resources, but a lot of countries have stayed away from it because of political unrest and the risks to workers from cross border terrorism.

Political unrest has an effect, but it’s mostly on individual countries. Congo was a classic one where you had very good natural resources and they’ve remained untouched in many parts of the country because of the political unrest. But, Congo seems to be getting its act in order and ostensibly, 5 to 10 years from now, could be a major location for new exploration and development of mines.

Sudan and Egypt, in contrast, may have longer-term problems.

Part of it goes back to the international arena where you’ve had a breakdown in international cooperation between the United States and Europe and Russia and China.

There seems to be a reduced interest in being cooperative on the part of the major powers so that these regional and national problems and instabilities remain unresolved longer because you don’t have the major powers getting together to say, look guys, let’s straighten this out.

MI: Is nationalism restricting any outside investment?

JC: I think it is. If you look at Argentina, Argentina from the late 1930s through the 1970s or ‘80s was a pariah state, and it was a pariah state because the legal and regulatory environment was basically prohibitive of foreign investors coming in and looking for, developing, and operating mining facilities. That changed to some extent in the ‘90s and up until a few years ago. As companies came in and spent exploration dollars, they found a tremendous amount of resources—gold, silver, base metals—within Argentina and they started to develop those. Now the Cristina Fernandez de Kirchner government has really been beating up on foreign investors. It doesn’t allow them to repatriate profits, for one thing, and that’s put a real chill into exploration and development of mining in Argentina.

MI: How would you describe Argentina’s current state?

JC: It has been one of the best examples of what not to do to

develop your economy and attract foreign investors.

MI: In a recent presentation in Shanghai, you said that talk of gold going from West to East is more a perception than reality. Can you elaborate?

JC: If you look at base metals, most of the growth in demand—that’s fabrication demand—over the past decade has been in China and Asia. Gold is radically different from base metals. There’s very little investment in physical base metals. People tend to invest in the mining industry. With gold a third of the market output goes to investors.

Asia is the big growth market. If you go back to 1820, China and India were half of the world’s GDP. If you go forward to 50 years from now they could be half of the world’s GDP again. They’ve got all the numbers going for them if they keep their politics in order. That’s going to be reflected in stronger demand across commodities on a long-term basis.

MI: Another point you raised in Shanghai involved companies that measure success in terms of profits and not ounces produced? Which is better?

JC: There’s always been a sort of size-matters type of attitude in the mining industry. A lot of mining executives—maybe there’s a little bit of ego involved—want to be larger. They don’t necessarily want to be the largest mining company, but they want to be large enough to be able to attract the respect of large institutional investors. When they do that they don’t necessarily chase profits, they’re chasing size. If you look at the big companies like BHP or Rio Tinto, which have been on decades long acquisition binges, now they’re saying, okay, let’s divest ourselves of some of these things, let’s get down to a size that we can manage our growth more efficiently so that our investors actually get dividends and profit returns.

MI: To BEE or not to BEE, is that the question for South Africa?

JC: I think it is an issue. It’s been around for 20 years now—since the 1994 elections—and it has, at times, constrained capital formation because the system is not perfect. It surely opens itself up to fraud, but it also opens itself up to economic inefficiencies. You need to have a certain percentage of your shares held by historically disadvantaged entities. So you have to figure out a way for them to buy your shares, or get your shares if not buying them, through various means, which opens up the room for fraud.

And, then, if they sell them, you have to do it again with new people. So how do you, as a non-BEE investor, value the shares of your company? If the BEE sells you their shares, the company has to dilute by going off and finding new BEE investors. There are mechanical issues that have never been resolved for 20 years that cause problems and lead to limitations in capital formation in South Africa.

Page 8: Mining Indaba Show Daily News: Day1

THE FUTURE OF GLOBAL MINING

London

Tel: +44 7444 640276 London Registered addressGrosvenor SW1XYLUnited Kingdom

South Africa

Tel: +27 11 326 6204 | Fax: +27 86 764 1066 The Forum Building 11th Floor, Office number 01Maude Street, Sandton, Johannesburg, South [email protected] | www.mvelominerals.com

Mvelo Minerals was founded in 2006 by a South African mining entrepreneur Sarel Daantjie, with the support and assistance of the two large platinum companies Anglo American and Lonmin Platinum’s Black Economic Empowerment initiative.

“According to me the mining industry has transformed and it is still continuing to transform. Not only did the playing field change, but the rules have changed too. I do believe that the mining industry has played a major role in the expectations of many of our people. We must use this opportunity to share experiences and knowledge to ensure that expectations become a reality.

I believe to achieve this and to be successful we need to empower individuals with skills and opportunities with which they can and will add value to themselves, communities and the world. This can also be done by working together and finding each other so that we can enter in the right partnerships.” - Sarel Daantjie (Founder / Executive Chairman)

Mvelo Minerals is committed to provide quality and sustainable services that are safe and cost-effective as well as good value for money, in order to operate the business profitably which will be mutually beneficial to all stakeholders and constituency.

Mvelo Minerals’ specific goals and objectives is to have the lowest significant incident frequency in the industry (total combined lost time, medical aid and first aid injuries per 200 000 man hour worked) we will be the most productive, cost efficient and well managed company in the mining industry.

LTD

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Page 9: Mining Indaba Show Daily News: Day1

THE FUTURE OF GLOBAL MINING

London

Tel: +44 7444 640276 London Registered addressGrosvenor SW1XYLUnited Kingdom

South Africa

Tel: +27 11 326 6204 | Fax: +27 86 764 1066 The Forum Building 11th Floor, Office number 01Maude Street, Sandton, Johannesburg, South [email protected] | www.mvelominerals.com

Mvelo Minerals was founded in 2006 by a South African mining entrepreneur Sarel Daantjie, with the support and assistance of the two large platinum companies Anglo American and Lonmin Platinum’s Black Economic Empowerment initiative.

“According to me the mining industry has transformed and it is still continuing to transform. Not only did the playing field change, but the rules have changed too. I do believe that the mining industry has played a major role in the expectations of many of our people. We must use this opportunity to share experiences and knowledge to ensure that expectations become a reality.

I believe to achieve this and to be successful we need to empower individuals with skills and opportunities with which they can and will add value to themselves, communities and the world. This can also be done by working together and finding each other so that we can enter in the right partnerships.” - Sarel Daantjie (Founder / Executive Chairman)

Mvelo Minerals is committed to provide quality and sustainable services that are safe and cost-effective as well as good value for money, in order to operate the business profitably which will be mutually beneficial to all stakeholders and constituency.

Mvelo Minerals’ specific goals and objectives is to have the lowest significant incident frequency in the industry (total combined lost time, medical aid and first aid injuries per 200 000 man hour worked) we will be the most productive, cost efficient and well managed company in the mining industry.

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THERE IS A NEW DAY DAWNING IN THE MINING INDUSTRY

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Page 10: Mining Indaba Show Daily News: Day1

SPONSOR STAND LISTINGSPONSOR ..................................................................................STAND NO. SPONSOR ..................................................................................STAND NO. SPONSOR ..................................................................................STAND NO.

A-Cap Resources .............................. 214

AARD Mining Equipment (Pty) Ltd ..........................................1809

Abax Corporate Services .............. 2620

ABB South Africa Pty Ltd .................210

Acacia Mining Plc ............................ 214

acQuire Technology Solutions ........3513

AECI .................................................2401

AECOM SA Pty Ltd ...........................3702

African Mining and Crushing ....... 3804

African Rainbow Minerals ............... 212

AFRILOG South Africa (Pty) ..............141

Agilent Technologies ....................... 138

Alistair Group ................................... 201

ALS Chemex South Africa Pty Ltd ............................................. 3501

Altaaqa Global.................................4101

Amec Foster Wheeler ......................1118

Anglo American ............................. 2301

ASD Inc., A PANalytical Company ........................................4109

Atlas Copco SA .................................1810

ATS Inc. ..............................................811

Ausdrill Limited ............................... 1911

Australia’s Paydirt Magazine/Gold Mining Journal ................................1117

Australian Trade Commission .........901

Autodesk/WorldsView Technologies ................................. 2630

AUTOREDO ......................................... 103

Aveng Moolmans .............................610

B2Gold Namibia (Pty) Ltd. ............ 3906

Babcock International Group ...............................................1919

Bamboo Rock a Digman Group Company ............................... 701

Barloworld Transport ...................... 802

BCM International Ltd. ...................4401

Beak Consultants GmbH ................. 1213

Beijing Shenwu Environment & Energy Technology Corp ........... 2520

Bell Equipment.............................. 4203

BME (Pty) Ltd ................................... 1215

BNP Paribas ...................................... 144

Boart Longyear .............................. 3413

Bollore Afirca Logistics ...................4311

Bondoukou Manganese S.A. ...........1112

Bourevestnik Inc. .............................. 17

Bowman Gilfillan ............................. 135

BRGM ................................................2011

Bruker .............................................4501

Bureau Veritas Testing & Inspection SA (Pty) Ltd ...................1103

Bvi Consulting Engineers Pty ....... 2506

Byrnecut Offshore Pty Ltd ............. 1007

CA Mining Pty Ltd ............................ 504

Canadian Council on Africa ........... 3215

Canadian Solar South Africa ..........4119

Capital Outsourcing Group ............. 809

Cardinal Resources Ltd. ................. 902

Carmeuse Trade & Services (Pty) Ltd ......................................... 2406

Castor Satellite Networks (Pty) Ltd. ......................................... 808

Caterpillar Global Mining ............... 1315

Centric Mining Systems ..................604

CGG .................................................. 2013

Chamber of Mines South Africa ................................... 2007

Chameleon Innovations Australia...........................................1130

Chevron South Africa ......................1901

China Mining Tianjin Exhibition Service Center ................................. 4111

CITIC Heavy Industries South Africa (Pty) Ltd ................................1801

Cliffe Dekker Hofmeyr/DLA Piper Africa .....................................1209

Cochrane Steel Products .................. 105

Comexas Afrique ............................ 1803

COMILOG SA ......................................1913

Container World (Pty) Ltd ............. 3301

Control Risks ...................................1406

Copperzone Resources Ltd. ......... 4306

COSAMO (PTY) LTD. ........................2019

Cowan International ....................... 1101

Cradle Resources Limited .............. 1307

CRI Pumps SA (Pty) Ltd .................3001

CRONIMET Mining AG..................... 2502

Cummins Africa ............................. 3604

Dassault Systemes South Africa (Pty) Ltd ................................1126

Dawnus International Ltd. ............. 634

Deloitte ............................................. 125

DHL Global Forwarding .................... 1111

DMSA/Ambatovy ...............................121

DMT Kai Batla (Pty) Ltd. .................1309

DRA Projects SA Pty Ltd ................2524

DTP ................................................... 1813

Dust-a-Side .................................... 1205

Eddy Current Testing SA (Pty) Ltd T/A CK Aerial Surveys ...............1902

EGIS ................................................ 3802

Endeavour Mining .......................... 3213

Energold Drilling Corp. .................. 705

Engen Petroleum Ltd ......................1120

ENSafrica ..........................................1216

EnviroServe Waste Management ................................... 3303

EuroGeoSurveys ............................ 4407

ExecuJet Aviation Pty (Ltd) .......... 3608

F.H. Bertling Logistics (Pty) Ltd .........................................4307

Ferrit s.r.o. ......................................1809

First Quantum Minerals ..................3313

First Solar Development (South Africa) ................................. 2614

FLSmidth South Africa (Pty) LTD .... 302

Fluor South Afircan (pty) Ltd ........2001

Fraser Alexander ............................. 713

Frontier Rare Earths SA Pty Ltd ......1107

Frontier Services Group E.A. ..........1310

Fugro ................................................. 213

Fulcrum Chambers Ltd. ..................1105

Gas At Site (Pty) LTD ..................... 3605

GATES CORPORATION ......................1915

GCS Pty Ltd ...................................... 403

Geological Survey of Finland ......... 804

Geosense Ltd ................................. 2626

Geosoft ........................................... 1202

Geotech Airborne Limited .............. 1110

German Cooperation .....................1003

GINAF Trucks Nederland B.V. ....... 3603

GoIndustry DoveBid SA (Pty) Ltd. . 3612

Golder Associates Africa Pty Ltd .... 1101

Group Five (Pty) Limited ............... 4123

Gryphon Minerals Limited ...............1115

Guernsey International Finance Centre ................................. 139

Hanno Resources ........................... 405

Harmony Gold Mining Co. LTD ....... 506

Henred Freuhauf ...........................1009

HUD Mining Supplies (Pty) Ltd ......1134

Hyspec Mining Services . ................... 13

IDC .................................................... 217

InfoMine.com and MINING.com ... 4304

Infra Tech Pty Ltd .......................... 2609

iNHEMACO S.A. ................................ 2618

Innov-X-Africa ................................. 626

Intermodal Solutions Group (ISG) Pit To Ship Solutions ........................632

International Facilities Services (Pty) Ltd ............................................140

International SOS ............................ 630

Intersocial Consulting .................... 2510

Intertek Mineral Services ................ 3511

IronRidge Resources Limited ........906

ITC Global ........................................ 1208

Ivanhoe Mines ............................... 2402

Japan Bank for International Cooperation .....................................1201

Jindal Africa Investments (Pty) Ltd .........................................1402

JOGMEC ............................................ 1104

Jozi Power ....................................... 220

Kibaran Resources Limited ............. 803

Komatsu South Africa (Pty) Ltd ... 2509

Leapfrog Software ........................... 136

Light Equation ..................................1811

Locate Jersey ..................................4105

Lombard Insurance ....................... 3902

MAC Consulting (Pty) Ltd ................. 310

Macmahon Holdings .......................3101

MagIndustries ................................1204

Major Drilling .................................. 206

MANAGEM Group ........................... 4302

Master Drilling Group Limited ............. 1

Mayer Brown International ........... 1305

Mbuyelo Coal (Pty) Ltd. ................ 4209

MDM Technical Africa (Pty) Ltd. .... 1302

MetGroup (Pty) Ltd. ......................2622

Metso ................................................ 134

Micromine Africa Pty Ltd ............... 628

Mincon .............................................. 813

Mineral Resources Authority ........4405

Minerals Commission Ghana ........4404

Mining Review Africa ......................3611

Ministry of Mines, Government of India ....................... 107

MIREM – MAGTAP........................... 4207

MMCZ .............................................. 4303

MMG Limited ..................................2610

MonuRent Holdings Ltd. ................ 1226

Morocco – Office National des Hydrocarbures et des Mines..........4102

Murray & Roberts ........................... 1508

Mvelo Minerals PLC .......................... 1116

New Partnership for Africa’s Development ................................. 4402

New Resolution Geophysics ..........1128

Newmont Ghana Gold Limited ..... 2516

Nippon Travel Agency .....................1108

Nord Gold N.V. ................................ 622

NOSA (Pty) Ltd ............................... 3806

NSL Engineering Pte Ltd ................. 1114

ORElogy Group Pty Ltd ....................... 4

Orica Africa (Pty) Ltd. ................... 4502

Oryx Enegies SA ...............................410

Osborn Engineered Products ..........303

Outotec (RSA) (Pty) Ltd. .................. 113

Owen Jenkins Ltd – Jobs for Africa ............................... 2505

Partners in Performance ................... 6

Peak Resources Limited ................904

Peninsula Energy Limited .............1404

Platinum Group Metals ....................707

Pretorius Group of Companies ......1913

Projects IQ (Pty) Ltd ........................ 502

PW Mining International Ltd. ........406

PwC ..................................................801

Randgold Resources ........................ 618

Raubex (Pty) Ltd .............................4411

Ravestein BV ...................................1819

Redis Construction Afrika .............. 1304

REFLEX .............................................. 908

Rio Tinto Management Services SA (Pty) Ltd ..................................... 704

RMSI Pvt. Ltd. .................................. 208

ROSOND............................................ 806

Runge Pincock Minarco ..................1301

Saint-Gobain PAM ........................... 602

Samsung C&T Corporation ........... 3005

Sandvik Mining RSA (PTY) Ltd.......2702

Sandvik Mining RSA (PTY) Ltd...... 3706

Sasol Chemicals (Explosives) ....... 2503

Scaw SA (Pty) Ltd. ............................207

Schlumberger Logelco Inc. South Africa Branch ........................ 402

Schneider Electric South Africa Pty Ltd ............................................. 608

Schramm, Inc ............................... 2606

Sedgman Limited ..........................1102

SEDIDRILL SAS .................................. 603

SEI, Kew Project Management .......601

SEMM Logging ................................1306

SENET (Pty) Ltd ..............................4004

SGS South Africa (Pty) Ltd ...............510

Sheltam (Pty) LTD .............. 4010-4012

Sierra Rutile Limited ...................... 204

SLR Consulting .............................. 2628

SNL Metals & Mining ...................... 624

Societe Equatoriale des Mines ......2507

SODEMI ........................................... 4125

South African Airways .......................10

Southern Africa Stainless Steel Development Association ........... 2508

Southern Mapping ..........................501

SRK Consulting (SA) (Pty) Ltd. ........ 117

SSG Consulting CC .......................... 2514

Stefanutti Stocks Mining Services ...........................................1210

STOCKHOLM PRECISION TOOLS AB ........................................ 2005

Sunbird Energy Ltd ....................... 4208

Tanzania – Ministry of Energy and Minerals ..................... 2605

Technical Mechanical Services ...... 2512

Technip Corporate Services .............. 131

Teichmann ......................................4017

terratec Geophyscial Services ...... 2003

TFE South Africa (Pty) Ltd. ............ 3515

The DOW Chemical Company .......3401

The MSA Group ................................1410

Thermo Fisher Scientific Messtechnick GmbH ........................ 202

THIESS ...............................................616

ThyssenKrupp ............................... 2602

Total South Africa .......................... 3606

Transnet SOC Ltd.............................. 2511

True Gold Mining ...........................2009

Trust Merchant Bank ..................... 4308

Tsebo Outsourcing Group ...............3411

United Nations Economic Commission for Africa (UNECA) ..... 807

UTi South Africa (Pty) Ltd. ...............211

Van Vliet Trucks Holland B.V. .......... 127

Vedanta Zinc International ............ 203

Vinci Construction ..........................3507

VIVO Energy South Africa (Pty) Ltd ......................................... 3805

WBHO Construction .......................4201

Wear Check/Set Point Laboratories ..................................1504

Weatherhaven Africa (Pty) Ltd. ........................................ 2412

White Rivers Exploration ............... 805

WireCo WorldGroup ......................4301

Women in Mining UK .....................4019

Wood Mackenzie ........................... 3704

World Gold Council ...................... 3602

WorleyParsons ..............................1906

WSP in Africa .................................. 3201

Xcalibur Airborne Geophysics Pty Ltd. .......................................... 2624

Xrosswater Ltd. .............................. 3315

Zoerkler Gears GmbH & Co KG ........1124

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Page 11: Mining Indaba Show Daily News: Day1

VISIT US at our Mining Indaba stand xxxat Cape Town International Convention Centre

9th - 12th February 2015

For more information contact WorldsView TechnologiesTel: +27 (0) 11 844 1000 | E-mail: [email protected] | www.worldsview.co.za

The Future of How Things Are Made

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Mining Indaba Mobile App Adds Host of New Options for 2015

By Show Daily Staff

Delegates to Mining Indaba 2015 are invited to stay on top of all events through the latest in social networking technology with a new and expanded

mobile App, sponsored by KPMG.

Unveiled for the first time at last year’s event, the 2015 all-in-one app has been significantly upgraded with more content choices, new features, and exclusive information about the African nations.

The app, accessible via iOS, Android and select Web-based applications, includes a full interactive conference agenda along with late-breaking agenda change notifications, an exhibition guide offering individual exhibitor locations and profiles, on-the-spot speaker biographies, live polling and session feedback opportunities, and exclusive thought-leadership content from KPMG.

Navigating the robust app has been expanded and simplified this year to not only serve as a guide, but to allow delegates to quickly and easily connect with others at the event.

Logging into the app is simple, requiring only the attendee ID number (delivered in the registration confirmation email) and the assigned password. Can’t locate either? Don’t worry. Support help for confirmed registered delegates is available through customer service at [email protected].

Once logged in, attendees can: � Access a helpful video guide to the app navigation

� Connect with all event activities

� Reach out to fellow delegates in attendance

� Follow-up on interesting posts to keep conversations going

� Receive regular status updates on sessions

� Inform others about specific interests and activities

By quickly adding a personal profile along with a picture, the app can serve as an immediate introduction to others at Mining Indaba.

The event agenda is displayed in chronological order to allow users to check into current sessions and note upcoming programs of interest. After sessions, there are options to rate, review or post thoughts and comments.

KPMG: Special Content

Especially useful this year are additional features added by sponsor KPMG and designed to assist delegates and interested parties in understanding the economies, countries and opportunities available in mining on the African continent.

In “Unlocking Africa – Collaborating Towards a Shared Vision for Change,” KPMG provides special information on regulatory, geo-mapping, infrastructure and skills development, while “Mining Practice in Africa” offers information obtaining services pertaining to strategy, growth performance, compliance, sustainability and tax, along with specific commodity expertise.

An additional section, “KPMG Insights,” provides delegates with access to a key case study, information on listing in Africa, mining risk assurance and social investment in mining.

Operating Platforms

The upgraded 2015 Mining Indaba app is available for use on a wide range of devices:

� iOS – app is compatible with iPhone, iPad, and iPod Touch running on iOS 6.0 and above. Download from the iTunes store

� Android - app is compatible with Android devices and tablets running on Android 4.0 and above. Download from the Google Play store

� HTML 5 - a web-based application accessible via web-browser (optimized on Chrome) for laptops, Blackberrys, and Windows phones

The special event technology app is powered by DoubleDutch, headquartered in San Francisco and Amsterdam with satellite offices in London and Hong Kong.

In addition to the enhanced app, select Mining Indaba 2015 videos will be posted on the Mining Indaba YouTube Channel. The official Twitter feed is accessible via the @MiningIndaba hashtag.

auto desk

Mining Indaba continues with Special Information Sessions today and tomorrow, all aimed at providing attendees with a wealth of information ranging from hedging in the mining industry to the sharing of resources for success. The sessions, which began Monday, require sign-up by interested delegates. Space is limited.

Tuesday Sessions

Today from 9:30 to 11:30 in Ballroom East 2, the African Development Bank, in conjunction with the Bill and Melinda Gates Foundation, will present Maximizing the Impact of Extractives for Human Development in Africa, a discussion based on the early findings of a report that reviews the timing and magnitude of newly discovered resources in Africa, along with practical policy options for how to manage and direct those new resources to improve the lives of the poorest, while mitigating macroeconomic risks and managing citizen expectations.

From 12:30 to 14:30, also in Ballroom East 2, Environmental Resources Management (ERM) presents Unlocking Greater Shared Value for All Stakeholders in the Mining Sector. The session will explore the role that key stakeholders should play in order to maximise shared value, including how well benefits are being shared, some of the barriers to increasing the benefits to all stakeholders, particularly after closure, and the changes required in order to maximise shared value.

From 14:30 to 16:40, in the Ballroom West, the London Metal Exchange will discuss Hedging for the Mining Industry including how to use the exchange to ‘hedge’ and protect against commodity price fluctuation, thus creating a better environment for raising capital for mining projects. The session will describe the LME, explain what selling forward means for financing of projects, how fundamental issues affect the market and what hedging will do to protect against it, and how to access the LME.

Wednesday Sessions

Tomorrow from 9:30 to 11:30, in the Roof Terrace Room, The Boston Consulting Group (BCG) will present Value Creation in Mining: the Productivity Imperative, a workshop investigating how much value the mining industry has created over the long and short terms. The programme will show the top 10 performers in the industry, explain the sources of their outperformance, and extract the key learnings from the analysis. BCG will moderate a panel discussion to cover the key successes, factors and pitfalls of productivity improvements. After the panel, there will be time to network and discuss with the panelists.

Also tomorrow from 9:30 to 11:30, in Ballroom East 2, African Development Bank presents Shared Resources, Shared Values and Shared Benefits, examining the complex and dynamic relationship between natural resources and economic growth. The panel will discuss the roles that the extractives industry, government, NGOs and financial institutions can play so that the wealth generated by Africa’s natural resources can produce more benefits for the people of Africa and accelerate human development on the continent.

Special Sessions: From Sharing Value to Protection Via Hedging

By Show Daily Staff

“We want to expose our company to the mining world. We’ve never been here, this is our fist time, and we want people to know what we are doing in Congo.”

– Delegate from Mining Company Katanga (MCK), 2014 Mining Indaba

Plan Now for 22nd Investing in African

Mining IndabaTM

8-11 February, 2016

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Copper: Just One More Year of Pain An Interview with Market Analyst Vanessa Davidson

Vanessa Davidson, Group Manager of CRU Group, joined the firm in 1988 and has had extensive experience analysing metal markets across the range of ferrous and non-ferrous industries. She

also has been heavily involved in project feasibility studies and strategy assignments. In 2011, Davidson became manager of CRU’s Copper Team.

Show Daily interviewed Davidson leading up to her scheduled presentation at Mining Indaba’s Commodities Review and Outlook Forum held on Monday. Following are edited excerpts of that interview.

Mining Indaba (MI): What’s the global outlook for copper supply/demand in 2015 and over the next few years?

Vanessa Davidson (VD): People have been talking for some years now about the copper market moving into a huge heavy oversupply. That’s something we really don’t believe is going to happen. We very much see 2015 as a balanced market. Even looking at 2016 and 2017, we’re looking at very small surpluses. That whole concept of a huge oversupply hitting the market caused by different projects commissioned and producing at the same time, we don’t think is going to happen.

In fact, if we look beyond 2017 we see this market moving into a deficit, so we actually see structural shortages beginning to emerge again. I would say the market is looking balanced as opposed to in deficit for 2015, but certainly going forward we think that potentially there’s going to be a shortage of supply developing further on in this decade.

MI: Where do you see the copper price going this year?

VD: We’re forecasting that prices will reach a trough in 2015. To be honest, we expected Q4 to be weaker than Q3, but the out-turn was a little bit weaker than we anticipated. On a daily basis the prices starting 2015 are a little bit lower level than we previously thought.

Given how important the sentiment aspect is at the moment and especially the fact that we’re not expecting a serious tightening in the market in 2015, the combination of those two things makes us feel that the prices probably are going to stay low.

On both a cash and a 3-month basis we’re expecting prices to average a little lower than $6,300 per tonne for 2015. But that is expected to be the trough of the cycle.

MI: What do you see for copper looking out 5 years?

VD: We see a little bit of a recovery in 2016 and then we see the bounce-back starting, so 2017 we should see prices in excess of $7,000 a tonne on an annual average basis. By 2018 we see prices averaging over $8,000 a tonne. We are very bullish about this metal in the medium term.

It’s really just one more year of pain and then we think things will start to improve significantly. Copper was structurally short of material for many years and we don’t think that situation has really corrected itself.

MI: How is the strong dollar coupled with general weakness in Europe affecting the copper price?

VD: I think they’re having a really big influence on copper at this moment. There are a number of non-fundamental factors that impact the price. While the fundamentals are reasonably

good, it’s very clear when you look at today’s price that it’s not being reflected. One thing that people are focusing on is the ascent of the dollar.

The other thing is the tumbling oil price. It’s a question of investors who look at commodities in general—not taking a specific position on copper. Ongoing is the story about the slowdown in China. Given the importance of that market, people are still very uncertain about how that’s going to pan out. The combination of those three things has really hit the price. It’s a decoupling of the price from the fundamentals at this moment.

MI: Where does Africa stand in the global copper production picture? VD: Africa accounts for about 10% of all the total projects in our database, but that implies that all projects are brought on stream, which potentially may not happen. With Africa there are a number of challenges. Shortage of power is one issue that the African market faces. There’s a lack of infrastructure so transporting material around is a challenge.

It’s not just about moving the concentrates and cathode around.

It’s also an issue when importing raw materials or equipment.

Some of the African projects are high cost, which is partly a function of high power costs, but whether or not operations have a sulfur burner makes a difference also.

In addition, the Zambian government has increased the gross royalty payment on open pit mining to 20%, up from 6%. For underground mines, the royalty has increased from 6% to 8%. The new royalties replace corporate tax (but at a much higher rate) and became effective from 1st January 2015. As a result of the royalty increase, Barrick Gold has announced that it is preparing to suspend operations at its Lumwana mine in Q2 2015, as production has become uneconomic under the new royalty scheme. However, Neves Mumba, president of the MMD party and a candidate for president in the upcoming elections, has said that he will re-enter negotiations with Barrick to prevent closure of the mine if he is voted in. Also, some market participants believe that First Quantum will seek to negotiate an exemption from the higher mining royalties at its new Sentinel mine, which is just beginning commercial production, until the capital expenditure of the project is returned.

It’s difficult to predict until we see some of the challenges tackled, but we think there could be a marked change in terms of Africa’s contribution to world copper production in 5 or 10 years.

Gold’s Unique Position Adds to its Complexity

By Show Daily Staff

With gold prices under pressure, some market

observers now question whether the precious metal is still considered the king of commodities.

According to one market expert, it’s all a matter of one’s perspective.

“It really depends on how you see gold, whether you see it as an investment short term or you see it almost as an insurance policy, and also whether you actually see it as a commodity at all,” Walter de Wet, Head of Commodities Research, Standard Bank, said during an interview with Mining Indaba.

De Wet was interviewed by Show Daily in advance of his scheduled presentation as part of Mining Indaba’s Commodities Review & Outlook Forum held on Monday.

Many buyers view gold as a currency that will continue to hold its value relative to most paper money over the long term.

Producers Under Pressure

“But then again if you look at the flip side, and look at gold from a commodity perspective, then at the moment it is not any different than any other commodity where the price has been coming down, the price has begun cutting deeply into the cost curve, (and) producers are coming under pressure,” de Wet said. “From that perspective gold is no different. But unlike other commodities, gold is also seen as a currency and that is unlikely to change in the future.”

With gold prices today in the $1,200 per ounce range, down from more than $1,800 in 2011 and $1,600 as recently as 2013, analysts are faced with a seemingly difficult task when considering the price outlook for the near and medium terms.

Gold’s unique position as both a commodity and a currency adds to the already complex task of forecasting gold prices. Consider that analysts must weigh a series of factors, including interest rates, the U.S. dollar, inflation, stock market activity, oil prices, geopolitics and Asian demand.

Key Drivers

“At the end of the day, the gold balance sheet remains important like in any other commodity and over the long term that is probably what is going to drive the gold outlook,” de Wet said. “The key drivers on a longer term strategic basis are interest rates, and demand specifically from India and China.”

Looking out 10 years, he sees a gold price in the neighborhood of $1,400, adjusted for inflation.

U.S. Monetary Policy

All eyes remain focused on the U.S. interest rates, which are poised for a possible increase in upcoming months, a move that could impact investment demand.

“What’s happening in the U.S. and U.S. monetary policy is going to be significant for the next 12 to 18 months and that significance, of course, would be interest rates, and not necessarily nominal interest rates but the real interest rates,” de Wet said. “The gold price over the last 15 years has had a very high and negative correlation to real interest rates. Real interest rates go higher and investment demand for gold does go lower. The market is expecting rates in the U.S. to go up (but) the big question is just when.”

Hunting for Assets?

Meanwhile, China may be on the hunt for gold and other mining assets in Africa and

elsewhere.

“If they see something strategic for their growth, they would definitely be interested in buying assets anywhere in the world,” according to de Wet.

That could be something to watch going forward in many gold-producing countries, including South Africa and Ghana, since gold miners aggressively have been cutting costs, including for exploration, due to today’s lower prices.

The pullback in exploration is not cutting existing production, but is probably cutting future production, he said. One key reason why existing production hasn’t been cut in many emerging markets relates to the strong dollar vs. weaker local currencies.

“In rand terms or (other) local currency terms, gold has not come off as dramatically as in dollar terms, so that is buffering the producers to some extent and providing them with some much needed relief,” he said.

Benchmark Transparency

With the ICE Benchmark Administration expected to assume responsibility of the LBMA gold price in a shift away from the gold fix platform in 2015, de Wet views it as an encouraging development for the market.

“I think it’s quite positive for any market where transparency is being increased, and (it) is good in the long term for volumes and for trading interests in general,” he said.

Page 14: Mining Indaba Show Daily News: Day1

THE AFRICAN DEVELOPMENT BANK AT Mining Indaba™

PATRON OF THE AFRICAN MINISTERIAL SESSIONS

Tuesday, 10 February 2015 at 09:30 - Ballroom East 2

Maximizing the Impact of Extractives for Human Development in Africa In partnership with the Bill and Melinda Gates Foundation

Tuesday, 10 February 2015 at 15:40 – Auditorium 2 Mining Ministerial Forum - chaired by the African Legal Support Facility With the Democratic Republic of Congo, Zambia, Kenya, Angola and Niger

Wednesday, 11 February 2015 at 09:30 - Ballroom East 2

Shared Resources, Shared Values and Benefits High level panel discussion

Booth # 2801, Aisle 2800,

opposite hall 4A

Contact: [email protected]

10 February 201514:00 – 15:35 Forum: 1 - Hosted by The World Bank Group

Speakers include: Hon. Dr. Jean Claude Brou, Minister of Industry and Mines, Côte d’IvoireHon. H.E. Alemu Sime Feyisa, State Minister of Mines and Geology, EthiopiaHon. H.E. Kerfalla Yansané, Minister of Mines and Geology, GuineaHon. Nii Osah Mills, Minister of Land and Natural Resources, Ghana

15:40 – 17:40 Forum: 2 - Hosted by the African Development BankSpeakers include:Hon. Martin Kabwelulu, Minister of Mines and Geology, Democratic Republic of the CongoHon. Christopher Yaluma, Minister of Mines, Energy and Water Development, ZambiaHon. Najib Balala, Minister of Mining, KenyaHon. Francisco Queiróz, Minister of Geology and Mining, AngolaHon. Omar Tchiana, Minister for Mining and Industrial Development, Niger

The African Mining Ministerial Forum is considered to be a hallmark investment component of the annual Investing in African Mining

Indaba programme. Each year ministers from the most progressive mining regions share information on their national mining policies and their progress in attracting new companies to start projects or expand existing operations.

The Forum, which runs across Tuesday and Wednesday, is segmented into four sessions, each one hosted by major companies deeply invested in the future development of African mining.

This year, officially invited countries included Angola, Botswana, Burkina Faso, Côte d'Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Kenya, Liberia, Madagascar, Mauritania, Mozambique, Nambia, Nigeria, Rwanda, Tanzania, and Zambia.

Ministerial Forum: African Nations Look to Boost Mining

10 February 20159:15-9:30 Will Barker, Managing Director, Sunbird Energy

� Ibhubesi Gas Project, a New Domestic Energy Source and Petroleum Industry for South Africa

9:25-10:00 Grant Davey, Managing Director, Cradle Resources Limited �Niobium - The New Age Steel Alloy

10:00-10:15 Ivan Pearce, Senior Partner & Counsel, Fulcrum Chambers LtdDavid Huw Williams QC, Senior Partner & Counsel, Fulcrum Chambers Ltd

�A ‘Dawn Raid’ Survival Kit - Prevention is Better than Cure10:15-10:30 Gregg Smith, Chief Executive Officer, Frontier Services Group

Seamless, Secure Supply Chains in the Most Austere Environments Who to Trust?

10:30-10:45 Bruce Munro, Managing Director, Thiess � Improving Value from a Mine

10:45-11:00 Wu Daohong, International Business Director, Beijing Shenwu Envi-ronment & Energy Technology Corp.

� Increasing the Value of Metals and Minerals Through Differing Technologies

11:00-11:15 Dave Rehse, Mining Director - Africa, Cummins Africa � Solutions for Lower Cost of Ownership

11:15-11:30 Anthony Pursey, Director, Partners in Performance �Get the Maximum Value from Your Project Opportunities, Safely

11:30-11:45 Rob Barker, Group General Manager, Market Development and Africa, Macmahon Holdings

� Bigger, Deeper, Faster - Introducing the World’s Most Powerful Raise Drill

11:45-12:00 Kenneth Gaynor, Director – Power Solutions, Cummins Africa �Off Grid Solutions Ensuring Cost Reductions and Security of Supply to Mines

11 February 20159:15-9:30 Andrew Harris, Owner, Chief Executive Officer, Cowan International

�Coachology: The Art of Turning Potential Into Performance9:30-9:45 Imraan Lambat, Application Engineer, Autodesk

�The Future of How Things are Made

9:45-10:00 Emmanuel Rigaux, CEO and Managing Director, Lafarge Zambia �The Global Cement & Cementitious Expert

10:00-10:30 Dr. Peter Stegmaier, Chief Marketing Officer, Hexagon Mining � Shaping Smart Change: Optimising Design, Planning, and Operations

10:30-11:15 Moderator: Amanda Van Dyke, Chairperson, Women in MiningSpeakers:Jennifer Bell, Partner, Herbert Smith FreehillsCaroline Donally, Director, Denham CapitalNichole McCulloch, Managing Partner, The Ashton PartnershipBerte Simons, Director, Mining & Heavy Industry, Royal Haskoning-DHVNoleen Pauls, Chairperson, Geological Operations Manager, Women in Mining South Africa, MSA GroupKhanyisile Kwenyama, Chief Executive Officer, Business Unity South Africa, South African Chamber of Commerce and Industry

�The Business Case for Diversity on Mining Boards - Why does Diversity Matter?

11:15-11:30 Eric Lecocq, General Manager: Sales, SES � Telecommunications Solutions for the Mining Industry

11:30-11:45 Stephen Boyce, Chief Mining Engineer, Orica �Outcome Focused Blasting

11:45-12:00 Paul Thomson, Chief Executive Officer, A-Cap Resources �Coal and Uranium - Energy in Botswana

Thought Leadership Programming Starts TodayFormerly known as the Corporate White Paper Sessions, the thought-leadership forum provides delegates with access to mining companies that are making significant footprints on the African continent, showcasing existing and

emerging projects. Also incorporated will be case studies and presentations from service and technology providers introducing new system processes that optimise mining productivity and offer cost control to heighten profitability and accelerate the phases of mining projects.

Here is a quick look at the Thought Leadership participants, along with the topics they plan to address today and tomorrow.

11 February 201514:00 – 15:20 Forum: 3 - Hosted by the International Monetary Fund

Speakers include:Hon. Christophe Akagha Mba, Minister of Mines, Industry and Tourism, GabonHon. Joéli Valérien Lalaharisaina, Minister of Mines, Madagascar Hon. Stephen Julius Masele, Deputy Minister of Energy and Minerals, Tanzania

15:25 – 17:20 Forum: 4 - Hosted by JOGMECSpeakers include:Takafumi Tsujimoto, Metals Strategy & Exploration Unit, Executive Director, Member of Board, Japan Oil, Gas and Metals National Corporation (JOGMEC)Hon. H.E. Gen. Sebhat Ephrem, Minister of Energy and Mines, EritreaHon. Isak Katali, Minister of Mines and Energy, NamibiaHon. Evode Imena, Minister of State for Mining, RwandaHon. Boubakar Ba, Minister of Mines and Energy, Burkina Faso

All sessions take place in Auditorium II.

12:00-12:15 Carlos Sumbula, Chief Executive Officer, ENDIAMA-E.P. �Angolan Diamond Industry and Business Opportunities Overview

12:15-12:30 Dirk A. Claessens, Vice President Industrial Sector, IBM � ‘Mining on Demand’ - How Information Technology Can Transform the Mining Industry

12:30-12:45 Gilberto Rodrigues, Chief Executive Officer, Mota-Engil Africa �Mota-Engil Africa - A Solutions Provider

13:30-13:45 Roger Gunson, Executive Manager - Regulatory Operations, Mineral Resources Authority, Papua New Guinea

�Analysis of Papua New Guinea’s Mineral Resources and Mining Opportunities

13:45-14:00 Koen Verbruggen, President, EuroGeoSurveys �The PanAfGeo Agreement: What it Means for Mining in Africa

14:00-15:00 Moderator: Susanna Moorehead, Director, West and Southern Africa, Department for International Development, U.K. GovernmentSpeakers:H.E. Joanna Adamson, High Commissioner, Australia to GhanaMpho Mothoa, Managing Director, Richards Bay Minerals, Rio TintoDr. Ven Pillay, VP, Sustainability: Community, AngloGold AshantiJon Samuel, Group Head of Government and Social Affairs, Anglo AmericanDan Smith, Secretary General, International Alert

�The Voluntary Principles: Managing Human Rights Risks Around Mine Security Operations

Have a Smart Phone? Try Our New App!

For Details, See Page 11

Page 15: Mining Indaba Show Daily News: Day1

OFFICES IN AFRICA

22By combining technical proficiency with effective project management and robust risk mitigation, Fugro’s service offer has become a compelling one for mine operators and developers in Africa.

We provide insight, assurance and value through a comprehensive range of geotechnical and geological survey, monitoring and mapping services, together with in-house expertise in water mapping, pollution control and other key operational issues.

With 22 offices in 14 African countries, Fugro’s technology and resources are strategically located to optimise access and support mining projects across the continent.

[email protected]

COME AND VISIT US AT:Mining Indaba - Cape Town9-12 February 2015

Page 16: Mining Indaba Show Daily News: Day1

M i n i n g I n d a b a ™ D a i l y N e w s 1 6

22 OFFICES IN AFRICA

Fugro’s technology, resources, vision and agility provide high-value mining projects around the world with reliable data, consultancy and engineering services. Our integrated geo-services support every stage in the planning, development, operation and eventual decommissioning of mining facilities. From desk studies, site exploration and hazard identification, through the development of the mine and supporting infrastructure, to long-term environmental monitoring and management, we have the local knowledge and global expertise to deliver success.

[email protected]

COME AND VISIT US AT:Mining Indaba - Cape Town9-12 February 2015

They call it Africa. We call it home.Connect with us at our hospitality area outside the Westin Grand Hotel from 3pm, Monday to Wednesday.

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Forbes’ 10 richest countries were led by South Africa, he said, while the most corrupt were Somalia and Sudan, where government policies had changed so much that investors had ended up losing money. “Lack of government stability drives money away,” Holmes stressed. “Investors look for stable fiscal policies.”

Holmes emphasized the opportunities available in Africa, particularly in transport infrastructure. China, he noted by way of comparison, was building light railways to move large numbers of people around quickly; the United States, following the Second World War, had put returning soldiers to work building highways across the country.

Profound Tipping Point

China was going there first—it was now investing more in infrastructure abroad than at home. “This is a profound tipping point,” Holmes said.

Add to this the continent’s rich exclusivity in minerals, and it was clear that Africa had the opportunity to be a game changer over the next 20 years. “There are huge opportunities for Africa, particularly looking at the investments China is pouring into the continent.”

In Ethiopia, glass is needed by the bottling companies; the country has the sand needed to make bottles, but no glass. “So I am investing in a bottling company in Ethiopia. It is a classic example of a good stable company. It needs glass, and the country’s growth is exponential.

“I have a couple of hundred million dollars investing in Africa,” Holmes said, “and I will

continue to invest in the continent.” The caveat was that this was all subject to government policy. “Bureaucracy threatens growth. Africa needs to streamline its bureaucracy to attract capital.”

Rand Helping Gold

Turning to South Africa, Holmes said the weak rand was helping the gold industry, but that there had to be a greater rationalisation of assets in the country. Other countries flagged at the forum included Eritrea, Burkina Faso and Tanzania, which is seen as one of Africa’s rising stars.

Tanzania’s energy and minerals minister, George Simbachawene, told delegates at the forum that the country had a stable mineral policy and mining legislation, with an industry that was contributing 3.3% to GDP. “We are working to get that to 10% by 2025.”

Only 10% of the country’s vast resources were currently being tapped, Simbachawene said, and investors could look forward to various incentives as well as guaranteed access to geological information, with 80% of the country mapped. This was against the backdrop of fiscal, political and social stability. By 2025, he predicted, Tanzania would be a middle-income country.

Attractive Underlying Assets

On Sunday, Paolo Scaroni, deputy chairman, Rothschild Group, opened the 2nd Mining Indaba Investment Discovery Forum with the message that underlying assets are very attractive in most of the African mining sector.

He stated that today’s depressed price environment is not a threat but rather a major opportunity.

In his speech he discussed that relatively speaking

African assets are not only attractive but can be acquired at good contractual terms with a reasonable risk profile.

Scaroni, who advises clients on their African mining and energy investments, also said the continent was currently the most interesting place globally to do business.

He tackled head on the issue of risk when operating in Africa stating that running operations is not as risky as it looks from New York or London, “while investing in Africa entails accepting a different risk profile, if you want to tame lions, first you need to make sure that the Savannah does not scare you.”

Build True Partnerships

He underlined that while it is perfectly possible to operate in Africa over the long term, companies and investors have to be ready to build true partnerships and that means behaving well contractually, operationally and in relations with the local community.

“Host countries will be happy to have you if you deliver on your promises in terms of production costs and revenues but by contrast, delays and cost increases destroy the social and economic plans of your host country and African leaders talk much more amongst themselves than you would expect.”

The Investment Discovery Forum is designed for serious investors looking to discuss the investment climate and industry developments in Africa, as well as to uncover hidden opportunities, and alternative emerging opportunities, on the continent.

Special correspondent Chris Steel contributed to this story.

the city and its people,” De Lille said. “It had created 4,500 direct and indirect jobs in the eight years between 2006 and 2014.

“It is clear Cape Town is increasingly being seen as a valuable investment destination. It is joining other mid-sized cities around the world as a key driver of economic growth.”

In addition, in January, Cape Town was named one of the seven world cities poised for significant growth in technology and life sciences, alongside Istanbul, Chengdu and Kuala Lumpur, among others, by global corporate real estate services and consulting firm T3 Advisors and Brandeis International Business School.

The Mother City was listed for its favourable business climate, skilled talent particularly in engineering, an emerging start-up culture, excellent infrastructure, presence of quality institutions of higher education, and comparatively favourable rents.

Strategically PositionedIn turn, Cape Town brought benefits to business: it was the second busiest port in the country, had good public transport and was strategically positioned on the Western Cape coast.

“We have also set up a Trade and Investment Desk in my office,” she said. It was established to cut red tape in facilitating business and investment, and to drive Cape Town as a meeting place between east and west and to open markets in Africa.

“Welcome to Cape Town,” she concluded. “I am confident you will like what you see,” she concluded.

“I think it’s probably the singular best event in terms of reconnecting with contacts in the sector. It really does draw everyone who’s interested in African mining into Cape Town.”

– Attendee, 2014 Mining Indaba

Investment Forum ‘Challenging Times’(Continued from page 1) (Continued from page 1)


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