LAS BAMBAS
December 2016
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Important Information
The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed
on, directly or indirectly, to any other person (whether within or outside your organisation/firm),or published, in whole or in part, for any purpose
without the prior written consent of the Company. No representation or warranty express or implied is made as to, and no reliance should be
placed on, the fairness, accuracy, completeness or correction of the information or opinions contained in this presentation. It is not the intention
to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the Companys financial or trading
position or prospects. The information contained in this presentation should be considered in the context of the circumstances prevailing at the
time, and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of
the Company nor any of its respective affiliates, advisors or representatives, shall have any liability whatsoever (in negligence or otherwise) for
any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation includes forward-looking statements. Forward-looking statements include, but are not limited to, the companys growth
potential, cost projections, expected infrastructure development, capital cost expenditures, market outlook and other statements that are not
historical facts. When used in this presentation, the words such as could, plan, "estimate, expect, intend, may, "potential, should" and
similar expressions are forward-looking statements. Although MMG believes that the expectations reflected on these forward-looking statements
are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these
forward-looking statements. This presentation may contain certain information derived from official government publications, industry sources
and third parties. While we believe inclusion of such information is reasonable, such information has not been independently verified by us or
our advisors, and no representation is given as to its accuracy or completeness.
This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in the United States or any other
jurisdiction and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in
relation thereto, nor does this presentation constitute a recommendation regarding the securities of the Company. This presentation is not for
distribution in the United States. Securities may not be offered or sold in the United States absent registration or exemption from registration
under the US Security Act. There will be no public offering of the Companys securities in the United States.
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The Las Bambas Joint Venture
MMG led consortium (JV) acquired Las
Bambas on 31 July 2014.
JV structure: MMG (62.5%), and GXIIC
(22.5%), CITIC (15.0%).
MMG operates Las Bambas on behalf
of Joint Venture adopting MMG
standards, processes and systems.
JV Board Maximum six Directors with
MMG appointing the Chairman.
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About MMG Limited
Global resources company that explores,
develops and mines base metal deposits
around the world.
Established in 2009 and now operating on
four continents.
Objective to be valued as a top mid-tier
miner by 2020.
Headquarters in Melbourne, Australia -
listed on the Hong Kong Stock Exchange
and Australian Securities Exchange.
MMGs major shareholder is China
Minmetals Corporation (CMC).
MMG Limited:
Operations and Projects
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MMG Limited:
Our beliefs
We Mine for Progress
Vision
To build the worlds most respected diversified base metals company.
Mission
We mine to create wealth for our people, host communities and shareholders.
Objective
To be valued as one of the worlds top mid-tier miners by 2020.
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Safety and sustainability
Safety is our first value TRIF of 2.1 per million
hours worked in 2015.
Safety Performance
Las Bambas TRIF of 1.01 in 2015 and 1.38 as
of June 2016.
Safety aligned with management incentives
critical to performance.
MMG CEO Chair of International Council on
Mining and Metals (ICMM) Committed to ICMM
10 principles of Sustainable Development.
Global partnership with UNICEF for child health,
development partner with national governments.
(1) Total Recordable Injury Frequency per million hours worked. US$ 63.5 million investment in social
(2) Las Bambas safety data incorporated into MMG from January 2015.
development programs in 2015 focus on Peru,
Laos PDR and DRC.
MMG Limited:
Executive team
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MMG Limited:
Board composition
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Las Bambas:
Local, experienced team
MMG
Las Bambas Corporate
President Functions
Vicepresident Vicepresident Vicepresidente Vicepresident Corporate
Vicepresident
Operations Commercial & Corporate Affairs Services
SHEC human resources
Finance
Technical Safety Costs Stakeholders Legal
Services & Health Recruiting Relations
& Reporting
Mine Shared
Personnel Regional
Environment Taxes Services
Administration Development
Concentrator
Plant Community Organisational I.T.
Treasury Communications
Relations Development
Maintenance
Security Industrial Risk Procurement
Relations Management
Infrastructure
Exploration
Expansion of
Resources
Major Projects
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Las Bambas is a world-class,
high-quality asset
Located in Cotabambas, Apurimac, Peru.
Open pit mining method, conventional
copper concentrator.
Clean copper concentrate with gold, silver
and molybdenum by-products.
First quartile cost position.
Mine life in excess of 20 years
Only 10% of the tenement has been
explored to date.
Construction stage employed up to 20,000
workers.
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Las Bambas is a world-class,
high-quality asset
Total annual production capacity estimated by 2017
Mineral reserves are 7.7 million tonnes of
Copper and mineral resources are 12.7
million tonnes of Copper.
2016 Guidance on Copper contained in
concentrate at 250,000 300,000 tonnes.
First shipment sent on January 2016.
Completed commissioning in 45 days and
ramp-up in 5 months
During the first 5 years, Las Bambas
estimates a production of 2 million tonnes
of Copper Global Top 6.
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Community engagement has been
aligned to project construction
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Las Bambas Exploration Targets and
Geology
$
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Pit Ferrobamba
The mine handles more than 160Mt of rock and ore per year.
50Mt/year of ore mined for plant processing.
Approx. 10Mt of ore will be stored in stockpiles for future treatment.
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Mining Equipment
Loading Drilling
2 P&H 320, 2 P&H 250, 2 CAT 6640 and 2
2 CAT 6060, 2 CAT 7495, 2 P&H 4100 and 1 Loader Le Torneau L2350
Sandvik T560
Carrying Ancillaries
6 Bulldozers Komatsu 475, 4 Graders
44 Trucks Komatsu 930E-4SE and 6 Trucks Caterpillar 797 F
CAT 24M and 7 Wheeldozers CAT 844H
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Crushing
Primary crusher: two sets of gyratory crushers, located adjacent to the
Ferrobamba pit.
Four trucks in simultaneous dumping cycle.
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Overland Conveyor
Ore is transported from primary
crusher to concentrator plant via an
overland conveyor.
Primary crusher is located 5km away
from concentrator.
Ore is discharged from conveyor to a
singular stockpile with live capacity of
approximately 18 hours of operation.
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Concentrator Plant
Conventional Grinding + Flotation
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Grinding Area
Ore reclaimed from stockpile via eight apron feeders.
Grinding via two lines consisting of one SAG mill and one ball mill.
Capacity of 140,000 tonnes per day. Nameplate process capacity of 51.1Mt a year.
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Flotation Area
Conventional Cu Mo froth flotation plant.
28 cells in rougher scavenger circuit and 22 cells in 3rd cleaning stage.
Bulk concentrate piped to Mo separation plant adjoining bulk flotation plant.
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Water Storage
Tailings dam designed to cumulate process water for reclaim
Make-up water (0-10%) sourced from Challuahuacho River, pumped through a
23km pipeline and stored at Chuspiri Dam - capacity of 4.2M m3
Underground water also used as a back-up water source
Las Bambas recycles over 95% of its water
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Tailings Thickeners
Two Delkor Hi-rate thickeners with 80m
of diameter.
Slurry of underflow with 62 percent of
solids.
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Control Center
Siemens PLC (S7300, 7400), with Schneider DCS
Implemented Expert System by FL Schmidt for optimum milling rates
Extending Expert System into Flotation and Tailings management
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Power
Electrical power is supplied from an
existing substation at Cotaruse, located
at 130km from Las Bambas, via a
220kV transmission line.
ATN2 owns and operates the
transmission line (18 years concession)
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Transportation
Copper concentrate is transported from
Las Bambas to Matarani Port (744km).
Concentrate is carried in closed
containers. Extensive use of local
contractors managed by dedicated
logistics contract Transaltisa.
Heavy Haul Road constructed and
managed by Las Bamabs for $240m
investment.
Bimodal transport system: 458km by
trucks using a public highway until Pillones
Transfer Station.
286km by train from Pillones to Matarani
using national railway.
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Matarani Port
Existing port operated by TISUR.
New Berth F commissioned in 2016 to
service Las Bambas, Cerro Verde and
Antapaccay.
Berth F includes:
Exclusive train unloading building
for Las Bambas.
Exclusive 100,000 tonne
concentrate storage shed for Las
Bambas.
New pier capable of receiving
55,000 DWT Supramax Bulk
Carriers.
Shiploader with 2,000 tm/h
capacity.
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Production: Grinding throughput
Plant has running at design capacity since 22 April 5 months ramp-up
Early failures with SAG electrical cards, lines, graters, trommel plates,
cyclone pumps all resolved
Grinding throughput
180.0
160.0
Full reqt with two lines of grinding
Grinding Throughput (ktpd)
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
ktpd Line 1&2 (actual) Full Capacity one line Full Capacity two line ktpd Line 1&2 (bgt)
Shipments 2016
CU CONCENTRATE 2016 SHIPMENTS
160,000.00
139,973.99 135,400.00
140,000.00
121,111.22
120,000.00
100,000.00
78,324.80 77,162.45
wmt
80,000.00
60,000.00 56,323.60
45,327.52
40,000.00 33,993.10 33,998.00
22,661.00 22,662.10
20,000.00
0.00
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16
766,938 WMT of concentrate shipped to November 2016
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Social Development
in Las Bambas
Social Scope
Region
Province
District
Las Communal
Bambas
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Communal level:
Resettlement process
Resettlement process involved 514 families (approximately 3,000 persons).
In-kind compensation included 441 houses constructed in Nueva Fuerabamba plus
public infrastructure including schools, health center and community facilities.
Livelihood restoration includes individual Family Life Plans with a vision of securing
income generation, health and education for the Nueva Fuerabamba community.
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Fuerabamba: Before and after
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Fuerabamba: Before and after
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Fuerabamba: Before and after
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Fuerabamba: Before and after
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District Level:
Direct Investment by Las Bambas
Direct investment (100% funded by Las
Bambas):
Large program: over US$ 310m contributed
since 2007.
Roads, schools, communal buildings,
churches, health centers, water treatment,
nurseries, fostering new businesses.
Training: 2,000 locals trained in computer,
carpentry, welding, electrical, maintenance,
driving.
Environment: 880ha reforested, 1.4 million
trees planted.
Support of cultural events.
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Province Level:
Social Fund of Las Bambas
Managed by a Joint Board:
company + government.
Total of US$ 64.5m.
Investments in sanitation, education,
transport, infrastructure, agriculture Education Agriculture
enhancements.
Impact in Apurimac
Indicators 2010 2015
Extreme poverty 24% 8%
Sanitation Electrification
Malnutrition 39% 22%
Reading skills 16% 36%
Math skills 9% 18%
source : INEI
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Region Level:
Government Program of Works
Advanced royalties from Las Bambas:
total of US$ 160m allocated by the
Federal Government to Apurimac Region
(2014-2015).
Direct involvement of Las Bambas
assisting implementation of Government
programs.
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www.lasbambas.com
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