Bauxite factsheet

INDEPENDENT BAUXITE
PRODUCER BY LATE 2013/
EARLY 2014
Bauxite is the primary raw feed material
used in the production of aluminium

OVERVIEW

Bauxite mining Alumina refining Aluminium smelting Consumers and

225Mtpa* 87Mtpa* 42Mtpa* fabrication

5t bauxite (ore) > 2t alumina (refinery) > 1t aluminium (smelting)

> Strong demand for aluminium: since 2000, aluminium > Aluminium usage typically increases with industrialisation:
consumption growth (6.9%) has exceeded global GDP useinChina and other emerging markets to increase
growth,higher than other comparable base/industrial withrisingincome per capita and demand for
metals(copper, nickel, steel) consumer goods

> Increasing intensity of use: aluminiums high strength > Wide range of applications supports strong demand:
toweightratio and good conductivity replacing steel construction (27%); transport(23%); electrical (14%);
andcopperinconstruction/transport and power/electrical packaging(12%); consumer(12%); machinery (7%);
applications, respectively other (5%)

Alumina capacity expansions (Mtpa) Chinese alumina/bauxite imports (ktpm)

Alumina Bauxite
China develops c. 30% of global refining capacity
Current imports at c. 50Mtpa

WHY BAUXITE?
> Strong aluminium demand translates into strong bauxite demand; China:
40Mt of aluminium production growing at 6.9% pa requires c. 15Mt > Since 2006, China has developed 30% of global refining capacity;
ofnew bauxite production each year current 5 year plan calls for further 30% growth

> Scale of new mine development required each year is approaching
the size of largest mines currently in production: Weipa c. 20Mtpa;
Trombetas c. 20Mtpa; CBG c. 14Mtpa
> By 2020 projected consumption suggests at least 80Mt of new alumina
capacity and over 160Mt of new bauxite demand that is 8 Weipa
scale mines in the next 8 years
> Chinese bauxite imports increased from 3Mt in 2005 to c. 45Mt in 2011
potential to exceed 100Mtpa by 2020
> Over 80% of bauxite imports from Indonesia: continued supply under
question based on declining quality of ore and recent government
banon raw ore exports

For more information please visit www.alufermining.com

EVOLVING BAUXITE/ALUMINIUM
MARKETDYNAMIC
> Shift from vertical integration model to construction of
independent refineries and smelters seeking raw material supplies
(integrated refinery production declined from 71% in 2008 to
c. 54% in 2011)
> Historically, alumina refining capacity was a bottleneck; bauxite
market pricing was determined by alumina majors (ALCOA, Rio Tinto
Alcan, BHP)
Alumina capacity and bauxite supply (Mt)
Source: Harbor Intelligence and James F. King
Capacity requirements
Production forecast with
committed projects
Mt
Committed projects
Current capacity
Year
BAUXITE SUPPLY/DEMAND FUNDAMENTALS
> Consumption of bauxite is forecast to grow at 6.9% from c. 220Mt in
2011 to c. 750Mt in 2030 with demand from China, India, developing
Asia and Latin America
> By 2020: projected consumption suggests at least 80Mt of new
alumina capacity
> Consumption of bauxite in 2010: 216Mt; projected consumption
in2020: 380Mt
> By 2020: projected consumption suggests at least 160Mt of new
bauxite supply
KEY BOARD AND MANAGEMENT TEAM
Adonis Pouroulis Chairman
Mining entrepreneur whose expertise lies in the
discovery and exploration of natural resources across
Africa. Also founder and Chairman of London listed
Petra Diamonds and Chariot Oil & Gas.
Danny Keating Chief Executive Officer
Over 15 years experience in mine production, project
management and project evaluation previously
with Anglo American, Konkola Copper Mines.
Subsequently worked in London as a mining analyst
and in corporate finance.
Paul Siveyer Chief Financial Officer
Over 20 years experience in financial operations
and management in the investment banking and
alternative investment sectors. Previously CFO at
Cross Asset Management, prior to which he worked
at Bankers Trust and JP Morgan.
Andries Cilliers Chief Technical Officer
Geologist; 15 years experience developing and
managing exploration programmes in West Africa
working for BHPB and De Beers.
> Substantial growth in Chinese aluminium and alumina capacity
has altered industry supply dynamics with pricing power shifting
upstream to alumina and bauxite producers = growth of a third
party bauxite market
> New sources of bauxite are required as the industry faces potential
shortage of good quality domestic bauxite in China and diminishing
reserves of high quality ore in a number of countries, creating the impetus
for refiners and smelters to secure a long-term supply of ore
Bauxite pricing dynamics delivered price to China
Capacity creep
> Infrastructure requirements of most new projects reflect higher
capital investment and longer timeframes to first production
> Incentive prices for new production range from US$40/t to US$60/t
across most producing regions
> Quality of ore at existing mines is declining; rising reactive silica and
increasing monohydrate content requires processing in higher cost,
high-temperature refineries
For more information please visit www.alufermining.com
CONTACT DETAILS
Alufer Mining Limited
Yves Occello Non-Executive Director
Address Trafalgar Court, Admiral Park, StPeter Port,
Bauxite and alumina specialist; previously oversaw
Guernsey, GY1 3EL
technical projects for Rio Tinto Alcan and was
Email info@alufermining.com
COOof Pechiney Bauxite Alumina Division. Range
Web www.alufermining.com
ofoperational experience with bauxite mines in
Africa,Europe and Australia. Guinea
Address Rsidence Marine, Cit Ministrielle,
Jeremy Nottingham Non-Executive Director Commune de Dixinn, Conakry BP 304,
Aluminium specialist with over 20 years project Rpubliquede Guine
development and aluminium smelter operational
Media contact
exerience in multiple regions including Africa
Address Jos Simson/Emily Fenton,
(Guinea), the Middle East, Malaysia and China.
TavistockCommunications,
131 Finsbury Pavement,
Lamine Tour Executive Director: Guinea
London EC2A 1NT
Guinea national with strong relationships and
network connections in Guinea.Key in-country Tel +44 (0) 207 920 3150
liaison for Alufer.Worked for TOTAL and Global Web www.tavistock.co.uk
Alumina in Guinea after living and working in the
USfor 15 years. www.alufermining.com