rob jackson - gemco south32 - south32 and gemco working to create shared value

SOUTH32 & GEMCO WORKING TO CREATE SHARED VALUE

• ROB JACKSON, ASSET PRESIDENT • 27 AUGUST 2015

South32 is a globally diversified metals and mining company Head Office: Perth, Western Australia.

Regional Hubs: Perth, Johannesburg.

Values: Care, Togetherness, Trust, Excellence.

Company strategy: Optimising our distinctive capabilities, unlocking the potential of our existing footprint and developing options to compete for any excess capital. This is achieved by being a best in class operator, focusing on relationships, demonstrating entrepreneurial spirit and being financially disciplined.

Securities trade: Australian Stock Exchange (ASX), Johannesburg Stock Exchange (JSE), London Stock Exchange (LSE) and the NY American Depository Receipts Programme, under the listing code of S32.

27 AUGUST 2015 SOUTH32 & GEMCO – WORKING TO CREATE SHARED VALUE SLIDE 2

•OUR COMPANY – SOUTH32

•OUR OPERATIONS

Worsley Alumina, Western Australia

Alumina, South Africa

Mozal Alumina, Mozambique

Australia Manganese GEMCO, Northern Territory

Cannington, Queensland

Illawarra Metallurgical Coal, New South Wales

Cerro Matoso, Northern Columbia

Manganese, South Africa South Africa Energy Coal

• WE ARE A GLOBALLY DIVERSIFIED METALS AND MINING COMPANY WITH A PORTFOLIO OF HIGH QUALITY, WELL MAINTAINED, CASH GENERATIVE ASSETS

Australia Manganese TEMCO, Tasmania

Mineracao Rio do Norte (MRN), Brazil

Brazil Aluminium

27 AUGUST 2015 SOUTH32 & GEMCO – WORKING TO CREATE SHARED VALUE

Bauxite and Alumina • Worsley Alumina is an integrated bauxite mining and alumina refining operation located in Western Australia. • Brazil Aluminium business includes our interests in the bauxite mine Mineração Rio do Norte (MRN), an Alumar

consortium which comprises an integrated alumina refinery and aluminium smelter.

Aluminium • South Africa Aluminium operates an aluminium smelter known as Hillside in Richards Bay, Kwazulu-Natal. • The Mozal aluminium smelter is located in the Boane District in Mozambique.

Coal • The South Africa Energy Coal operations consist of the Khutala Colliery, Klipspruit Colliery, Middleburg Colliery,

Wolvekrans Colliery and associated processing facilities. • Illawarra Coal operates three underground metallurgical coal mines including Appin, West Cliff and Dendrobium, as

well as two preparation plants, West Cliff Coal Preparation Plant (CPP) and Dendrobium CPP, in New South Wales.

Manganese • Australia Manganese comprises the GEMCO open-cut manganese mine in the Northern Territory, and the TEMCO

manganese alloy plant in Tasmania. • The South Africa Manganese operations are situated at Hotazel in the Northern Cape. The ore is accessed from the

Wessels underground mine and the Mamatwan open-cut mine. Supplied to export markets and the Metalloys manganese alloy smelter.

Nickel • Cerro Matoso is an open-cut lateritic nickel mine and ferronickel smelter,

northern Colombia.

Silver, Lead and Zinc • Cannington is a silver, lead and zinc underground mine and concentrator operation located in

Northwest Queensland, Australia.


OUR COMMODITIES


•REGIONAL OPERATING MODEL

• Our businesses are run by people who understand their communities and the environment in which they operate.

• Our African businesses are managed from a regional hub in Johannesburg, with our Australian and South American businesses through Perth.

• This integrated approach allows us to more closely align our businesses with the needs of our stakeholders and empowers us to optimise support functions regionally to deliver more efficient and productive operations.

27 AUGUST 2015 SOUTH32 & GEMCO - WORKING TO CREATE SHARED VALUE SLIDE 6

•MANGANESE MARKET OVERVIEW

• Manganese generally occurs naturally as an oxide (manganese ore)

• >90% of manganese produced is used in steel making.

• Manganese ore is reduced in a furnace to convert it to a metallic, manganese alloy, which is then used to make steel.


•GEMCO OVERVIEW

• Groote Eylandt Mining Company Pty Ltd (GEMCO)

• GEMCO is operated by South32 and is a joint venture between South32 (60%) and Anglo Operations (Australia) (40%)

• The Groote Eylandt deposit was discovered by BHP Exploration in 1960 and the first mining operation commenced in 1964 with a very simple ore washing and sorting plant.

• The first beneficiation plant was commissioned in 1972 with a capacity of 1.0mtpa which was incrementally expanded to 2.8mtpa over the following 35 years.

• GEMCO has enjoyed significant investment in the last seven years with expansion projects resulting in capacity increases from 2.8mtpa in FY07 to the current mine and logistics capacities of 4.8mtpa and 5.9mtpa respectively.


•GEMCO OVERVIEW

• Groote Eylandt is Aboriginal Land under the Commonwealth Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA)

• The Anindilyakwa People are the Traditional Owners of Groote Eylandt

• The Anindilyakwa Land Council (ALC) is the Land Council and represents the Traditional Owners

• The island is largely undeveloped and still used for traditional Aboriginal practices

• The existing mine is the main development on the island

• There are three small towns on the island, and several rural outstations


•GEMCO OVERVIEW

• GEMCO estimated reserve and resource lives of 11 and 15 years respectively.

• GEMCO also holds Exploration Permits for the majority of Groote Eylandt outside of the area it does not hold leases for.

• On top of that it holds some 7000km2 of Exploration Permits in East Arnhem Land west of Groote Eylandt.

• GEMCO is the world’s largest single producer of manganese ore.

• GEMCO sits in the first quartile on the manganese industry cost curve.1

• Efficiency and cost minimisation focus over the last five years has resulted in the unit cost of production being reduced from US$1.33/dmtu to US$1.06/dmtu.2

Emplacement Areas

1. Sourced from CRU based upon CY2014production 2. “Competent Persons Report, BHP BILLITON - GEMCO, Groote Eylandt Manganese Mine, Australia” 9 Feb 2014.


•GEMCO OVERVIEW

• GEMCO has full control of dedicated infrastructure

⎯ Port and Harbour (Milner Bay)

⎯ Airport, Power Station, Town (Alyangula)

• GEMCO is close to main manganese ore markets.

• GEMCO is one of the lowest cost manganese ore producers on the planet.

• GEMCO directly employs approximately 900 people

• Approximately 75% of the workforce are on a 7:7 roster with the balance mostly on a 5:2 roster.

• Approximately 70% of our employee’s fly-in-fly-out of Cairns or Darwin. The majority of the remainder live in Alyangula.


•GEMCO OVERVIEW

• Mine design is based on 40m wide strips up to 1.2 kilometres long.

• GEMCO maintains a number of active pits at any time to optimise the concentrator feed in terms of yield, grade and lump and fine split.

• Overburden removal is by dozer push and/or truck excavator stripping depending upon the characteristics of a given pit.

• Ore is moved with the same excavators and trucks after the ore is blasted.

• The fleet that currently supports the mining operation includes 3 x 250t tonne Hitachi excavators, 13 x Cat D11 dozers, 3 Cat loaders, 29 x Cat 95t 777 haul trucks and 2 drills.


•GEMCO OVERVIEW

• The high grade ore is mined and delivered by haul truck to the Concentrator where it is crushed, screened, washed and further beneficiated by heavy media separation.

• The first beneficiation plant was commissioned in 1972 with a capacity of 1.0mtpa which was incrementally expanded to 2.8mtpa over the following 35 years.

• GEMCO has enjoyed significant investment in the last seven years with expansion projects resulting in concentrator capacity increases from 2.8mtpa in FY07 to the current 4.8mtpa.

• Current US$139m expansion project underway is to construct an additional 500ktpa capacity through technology that will improve the concentrators recovery and/or reprocess waste material.


•GEMCO OVERVIEW

• Product is transported from the concentrator by road train to GEMCO’s captive port at Milner Bay.

• Ships are typically berth 45 to 55kt vessels.

• Logistics chain has current capacity of 5.9mtpa, comfortably exceeding the planned expanded capacity of the GEMCO concentrating facilities.

• GEMCO exports most of it’s product to the key Asian steelmaking countries of China, South Korea, India and Japan.


•GEMCO’S ECONOMIC CONTRIBUTION

• GEMCO is the main contributor to the Groote Eylandt economy and is a significant contributor to the broader NT economy.

• Since 2006, GEMCO has paid A$872m in royalties to the NT Government (A$97m per year) and A$179m to the Traditional Owners of Groote Eylandt ($18m per year).

• Additional community investment includes initiatives such as Polly Farmer Foundation, MJD Foundation and Learning on Country.

• Desire for a dialogue with communities and NT Government on how we can work together to ensure the long-term sustainability of GEMCO and the local community.

rob jackson - gemco south32 - south32 and gemco working to create shared value

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