7 June 2019

Delivering change through Innovation and Sustainability

Moly-Cop Global OperationsLeading global supplier of grinding media critical to mineral processing with integrated steel plants

in Australia and Canada

Information age in the post-war late 20th Century

Where to from here?

Smokestacks in Pittsburgh, c1890s

Industrial Revolution, began with fossil fuels coal, oil, and natural gas, leading

the way

Ewaste in Africa 2017

The 21st Century growing waste issue across all industries

EPA Victoria warns of tyre stockpile fire hazard 2018

The age of cheap, abundant raw materials is over Moly-Cop is working on new technologies to create integrated solutions

Trending Mining ThemesRising Demand for supply chain transparency

• Community expectations are changing which is driving changes in purchasing behavior.

• Apple has become the first company to map their supply chain from manufacturing to the smelter for tin, tantalum, tungsten, cobalt and gold. Consideration given to Sustainable material, conflicts and human rights.

• BHP said “one day soon we will all be able to see the carbon footprint.”

Climate Change

• The UN says Climate Change is the defining issue of our time and we are at a defining moment. It is now a widely accepted fact and the conversation is gaining momentum around real action.

• Chile’s commitment to the Paris climate accord, is to cut emissions 30% by 2030

• APRA and the Bank of England discussed transition risk from the shift towards a zero net emissions economy and liability risk for company directors, trustees, and insurers.

Regulatory and international policy changes

• The OECD suggests that by 2060, copper will have the worse environmental footprint on a per tonne basis than any other material.

• Danny Malchuk - BHP, President Copper Operations, said “Our resources will be increasingly scrutinised in light of recent global accords such as the United Nations Sustainable Development Goals and the Paris Climate Agreement”.

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Modern Mining Sustainability Agenda

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• Environmental and social problems and risks posed by mining are increasinglygenerating conflicts with mining companies

• Declining ore grades for most minerals, thus amount of waste generated perunit of resource produced is likely to increase

• The ‘polluter pays’ principle has become firmly embedded in the policyparadigm

• Moving beyond regulatory compliance, sustainability is becoming critical to thissector, with both risks and opportunities stemming from environmental andsocial pressures.

• B2Gold announced the development of a 7MW solar plant to power its Otjikotomine in Namibia

• Minera Media Luna in Mexico incorporate a rope conveyer to transport ore downthe mountain as opposed to trucking while friction from the cable produces energyused to power the plant

• De Grussa mine, WA, construction of a 10.6MV solar photovoltaic plant with 4MVbattery storage.

• Newmont operates a carbon offset project with annual carbon dioxide productionacross Newmont’s Australian operations declining from five million tonnes to 4.6million tonnes.

Pampa Elvira solar-thermal array for Codelco Gabriela Mistral mine.

SUSTAINABLE POWER PURCHASE AGREEMENT

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• Molycop, has announced the signing of a long-term Power Purchase Agreement (PPA) with energy retailer, Flow Power.

• This agreement runs to 2030 and is backed by offtake agreements with the Bomen SolarFarm and the Sapphire Wind Farm, both located inregional NSW.

• The Bomen Solar Farm is currently under construction and is expected to be fully operational in the 2nd quarter 2020 while the Sapphire Wind Farm has been in full operation since November 2018.

• Under the PPA, Molycop’s expected offtake of renewable energy is 100,000MWh per year which covers more than half of its electricity consumption in NSW. This will make Molycop one of the largest purchasers of renewable energy in Australia.

Innovation focused to deliver change

Integrated ServiceNew Product Development

Material Transformation Technologies

Safety and Sustainability

Collaboration

Digital Platforms

• Smart Sensors

Mill Optimisation

• Moly-Cop Tools

• Training

Logistics and Materials

• Scrap Returns

• Waste Tyres

• Rubber liners

Material development

• Alloys

• Microstructural Engineering

New products

• Ceramic Surface Modified Grinding Media.

Application

• Mill corrosion and abrasive modeling

Polymer injection in Steelmaking

• Tyres recycling

Thermal Micronising

• Carbon recovery

• Base metals

• Rare earth materials

Charge Pellets in Steelmaking

• E-waste and printer powders

Collaboration• Moly-Cop and the University of NSW established an Industry Research Hub in July 2015. Jointly funded by the

Australian Research Council and Industry, $8.8 million “green manufacturing” Research Hub at UNSW

• Collaborate with partner Universities and industries across diverse backgrounds

• New 2019 ARC HUB submission with new partners PlantArc and Sydney Water

• Moly-Cop is a member of the NSW Circular Economy Innovation Network announced in February 2019

Research New Supply Chains Current Supply Chains

Material Transformation

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Wire diverted from Landfill

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• Tyre and bedding spring wire diverted from landfill

• Bailed to increase density

• Use back loads to reduce freight costs

• Regional employment

• Reclaiming wire from existing landfill

• Polymer Injection Technology was developed in collaboration with the University of New South Wales (UNSW).

• It involves partially substituting coke used in EAF steelmaking with polymer materials such as rubber.

• Benefits to Mining:

▪ Grinding media made from more sustainable steel practices e.g. green steel

▪ Reduction in waste tyre stock piles delivering improved environmental outcomes

▪ Building a more sustainable footprint

▪ Supporting and engaging local businesses and social enterprises around collection and processing

Polymer Injection Technology Overview

✓ Moly-Cop steel more environmentally friendly

✓ Diverts millions of tyres from landfill & stockpiles

✓ Reduced greenhouse gas emissions

Polymer Injection Technology

Coke Analysis Typical Rubber

Coke

Moisture% 0 .7

Ash (db) % 2.4 12.30

Volatile Matter 2.60

Hydrogen (db) % 8 0.50

Sulphur (db) % 2 0.82

Fixed Carbon 85.9 84.10

Rubber Crumb is a Coke Substitute

• Sourced from mining and major urban centres

• The chemical composition of rubber tyre crumb is similar to high grade anthracite (87-90% fixed carbon and low ash)

• Rubber properties are better than coke

• Doesn’t absorb moisture

• Not washed like coke so lower potential chlorine

• Does not break down during transport and storage

Mining tyres and rubber mill liners deliver quality rubber feed material and scrap steel used at Moly-Cop’s Waratah

site.

• Moly-Cop and UNSW are developing process technologyknown as Thermal Micronizing which can safely transformwaste into high-value materials.

• At the heart of the technology are several small hightemperature furnaces designed to transform waste attemperatures greater than 1000 degrees

• Focus area are waste tyres and e-waste

✓ The world generated 44.7 million metric tonnes of e-waste, with only 20 per cent of this recycled.

✓ Over 60 million tyres are discarded each year inAustralia with about 16% recycled domestically

Thermal Micronising Overview

✓ Moly-Cop is undertaking feasibility studies to commercialise the technology

✓ Pilot scale plant at the Waratah facility

Thermal Micronising Input & Outputs

Product #1:Solid Carbon of Moderate Quality

Product #2:High Quality Carbon

Output Products Markets

Solid carbon used as a carbon source in Electric Arc Furnace

Other Internal Iron and Steelmaking Facilities

Li-Ion Battery Fabrication

Super capacitor

SiC/Si3N4 Fabrication

Water Treatment

Product #3:Base metals

Input Waste

Product #4:Scrap Steel

Moly-Cop

Product #5:Gas

Traded Commodities

Product #6:Sulphur

Chemicals

Mining Chemicals

The choices we make will answer the questionWhere to from here?

Thank You