Base res. (t Cu) 1 SICOMINES Sarl GECAMINES & Chinese Consortium Aggr. 6,900,000 10,616,000

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1 The Democratic Republic of Congo as a potentially major supplier of copper : overcoming the hurdles Dr Dieudonné-Louis TAMBWE Deputy Technical Director CTCPM DRC Ministry of Mines

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3 DRC copper resources and reserves

4 Mining Research and Extractive operations sites in the Katanga Province (as registered, in March 2010)

5 Projects base and proven reserves N.B. : Base reserves include proven reserves, cf. feasibility studies, together with measured and indicated resources # Company Major owners Deposit(s) Proven res. (t Cu) Base res. (t Cu) 1 SICOMINES Sarl GECAMINES & Chinese Consortium Aggr. 6,900,000 10,616,000 2 Tenke Fungurume Mining, TFM Sarl Freeport Mc MoRan, Lundin/TMC Kwatebala 2,300,000 25,000,000 3 Katanga Mining Limited Katanga Mining (TSX)/Glencore Kamoto, KOV, 2,200,000 17,223,063 Tilwizembe 4 Kigamyambo and Musonoie Tailings - Aggr. 1,676,399 1,681,000 5 FRONTIER Sprl First Quantum Minerals Ltd Lufua/Kishiba 1,430,000 2,410,000 6 RUASHI MINING Metorex Ruashi 1,141,889 1,702,000 7 MUMI SAMREF Mutanda 958,343 NA 8 Compagnie Miniere de Luisha, COMILU CREC, COVEC, EXIM BANK CHINA Luisha 721,264 1,588,975 9 Anvil Mining Company Kinsevere, AMCK ANVIL Kinsevere 318,000 NA 10 Shituru Mining Corporation, SMCO East China Capital Holding Aggr. Likasi 305, , Compagnie Miniere du Sud-Katanga, CMSK GFI Luswishi 233, , Boss Mining CAMEC Luita, Mukondo 51,908 2,310, Chemicals of Africa, CHEMAF Shalina Resources Ltd Etoile 1,550,884

6 tf TFM Project : Added reserves, as on Q.1, 2010 x 1000 t Cu Reserves ,676 Current Mine : Fungurume 567 Mambilima 477 Kwatebala Pumpi kt Added 1,180 Production Mwadinkomba kt Pumpi kt Fwaulu kt Tenke kt Net added 1,090 Reserves Fungurume Mambilima Pumpi Mwandinkomba 36.3 Fwaulu 49.9 A dded 1,300.0 Production Net added 1,085.2 Kansalawile kt Reserves Q.1/2010 4,851.2 Mambilima +494 kt Fungurume kt 4 km 6

7 Overview of mining operations

8 Historical locations of major copper extractive opérations (UMHK/GECAMINES) Cu GROUPE OUEST GROUPE CENTRE GROUPE SUD 8

9 Major copper mining projects and production at full completion Rank Project name Deposit Kamoto Copper Co. DRC Copper Project Tenke Fungurume Mining, TFM Sarl Anvil Mining Company Kinsevere, AMCK Kamoto KOV, Tilwizembe Feasability Study Target production at full capacity (tpa) Available 300,000 Kwatebala Available 250,000 Kinsevere Available 60,000 4 RUASHI MINING Ruashi Available 45, Chemicals of Africa, CHEMAF Compagnie Miniere du Sud-Katanga, CMSK Etoile Internal FS (SX-EW) 40,000 Luswishi Non Av. 15,000 7 SICOMINES Aggr. Internal FS 300,000

10 Tenke Fungurume Mining Sarl (Freeport Mc MoRan, Lundin) Investment : USD 2,3 billion TFM Sarl, listed at thetsx, is currently operating one of the largest copper-cobaltcobalt project in DRC, encompassing deposits located along the Tenke and Fungurume axis. Kwatebala is the most studied deposit. Extractive processes : Open pit mining Ore Concentration Leaching circuits Coupling SX/EW Production capacity (p.a.): Currently : 115,000 t copper metal Expansion to 250,000 t by 2012 Ultimately : 400,000 t copper metal.

11 Katanga Mining Limited (Glencore) Investment : USD 1,3 (?) billion Katanga Mining Ltd, TSX, operates a large-scale coppercobalt project in DRC, through two JVs : Kamoto Copper Company (KCC) and DRC Copper and Cobalt Project (DCP). Extractive processes : Open pit and underground mining Ore Concentration Leaching circuits Electrowinning Coupling SX/EW (by 2014) Production capacity (p.a.) : Currently : 70,000 t copper metal, Expansion to 150,000 t by 2012 By 2015 : 250,000 t copper metal.

12 Anvil Mining Limited (AVM) Investment : USD 0,435 billion Anvil Mining Ltd, TSX and ASX listed, has been in production in DRC since Kinsevere project, with its deposit located in the Katangan Copper belt, is becoming Anvil's flagship project. Other projects currently operated are Kamoto and Kulu. Extractive processes : Open pit mining (2007) Ore Concentration by HMS (2009) Leaching circuits (Q3, 2011) Coupling SX/EW (Q3, 2011) Production capacity (p.a.) : Currently : 15,000 t copper within concentrate. Expansion to 60,000 t of copper metal (end 2011)

13 Ruashi Mining Sarl (Metorex Ltd 75%, JSE, GCM 25%) The Ruashi, Musonoi Est and Sokoroshe permits form part of the licences granted to Ruashi Mining Sprl in Extractive processes : Open pit and underground mining Comminution Ore Concentration by flotation Leaching circuits Coupling SX/EW Production capacity (p.a.) : Currently : 45,000 t copper metal

14 Major companies, projects development status and copper production in 2010 Rank Project name Owner Deposit Status 1 Tenke Fungurume Mining, TFM Sarl Freeport Mc Moran, Lundin 2010 Prod. (mt) Kwatebala Production (Cathodes) 122,447 2 FRONTIER Sprl First Quantum Ltd Lufua Project stopped (Concentrates) 60,756 3 Katanga M ining Limited Glencore 4 MUMI SAMREF Kamoto KOV, Tilwizembe Mutanda ya Mukonkota Production (Concentrates & Cathodes) 58,116 Research & Production 31,995 5 RUASHI MINING Metorex Ruashi Production ( Cathods & concentrates) 30,815 6 Chemicals of Africa, Shalina Resources CHEM AF Corp. Etoile Production (Cathods) 15,197 7 Compagnie Miniere du Sud-Katanga, CM SK GFI Luswishi Production (Concentrates) 10,903 8 Anvil Mining Company Kinsevere, AM CK Anvil Kinsevere Production (Concentrates) 7,637 Sub-total 1 337,866 9 OTHERS NA Sub-total 2 159,671 TOTAL (Total 1+ Total 2) 497,537

15 Copper production : recent past, present and foreseeable future Companies ANVIL MINING Ltd 13,568 7,570 8,400 14,000 21,000 26,000 26,000 BOSS MINING 29,741 14,599 30,270 33,297 35,000 40,000 45,000 CDM, HUACHIN, JIAXING & CONGO LOYAL 27,647 32,684 36,566 35,800 42,000 44,500 45,000 CHEMAF 5,067 12,547 15,197 12,750 13,500 18,000 22,500 CMSK 15,607 1,497 10,903 12,000 12,000 13,500 15,000 FRONTIER Sprl 117,023 59,560 60, GECAMINES 25,802 15,071 19,111 24,000 26,400 29,700 55,800 KALUMINES - 2,500 6,000 14,400 28,800 MUMI 3,458 4,456 31,995 36,000 36,000 54,000 60,000 RUASHI MINING 27,344 19,068 30,815 36,000 36,000 40,500 45,000 SODIMICO , ,200 1,350 1,500 TFM 66, , , , , ,000 STL/GTL 8,553 5,919 7,411 6,750 6,750 6,750 7,500 Katanga Mining Ltd 29,107 41,110 58,116 60,000 70,000 84, ,000 SICOMINES , ,000 TOTAL (metric tons) 303, , , , , , ,100 TOTAL EXPORTATION 337, , , , , ,709 1,283,953 TOTAL PRODUCTION NA 309, , , , ,709 1,298,953

16 DRC copper production : recent past, present and foreseeable future 1,400,000 1,200,000 1,000, ,000 Production (t) Copper cathods (t) Copper cont. In raw & concentr. 600, , ,

17 What opportunities does the country offer to investors?

18 1. Meeting mining value drivers requirements The most important value drivers (high in-situ metal values, long life reserves, rapid pay-back back) are met when it comes to copper mining in DRC, and this is not only true for mega Kwatebala s TFM project 18

19 Highest ore grades of the African Copper belt, in almost all deposits of DRC found so far 14/03/2011 Dr Lolo 19

20 DRC copper deposits are amongst the easiest to operate, with quite low cash costs soso far. Why sould not the history repeat? 14/03/2011 Dr Lolo 20

21 2. Two legal texts govern the DRC mining sector : Mining Law Mining Regulation Acts

22 Research and development expenditures (art. 252 ML) Very quick amortization (i.e. a rate of 50% per year). Postponement of tax payment, in case of reported losses, over following tax years. Provision for mining reserves restoration (art. 257 ML) Possibility of reinvesting up to 5% of taxable profits in updating the project mineral reserves (i.e. investing in further prospection and mining development).

23 Guarantees offered (art. 266, 273 to 276, M.L.) - Free disposition of owned assets and importation of goods and services, as well as necessary funds needed by mining activities. - Free trading of extracted mining products either locally (i.e. smelters) or abroad (international markets). - Prohibition of compulsory expropriation of mining assets, except in very exceptional circumstances set by law, with a fair compensation to the concerned permit holders, paid at least six months prior to the execution of the expropriation decision. - Recognition of unforeseeable, and insurmountable events that can significantly delay miner legal duties.

24 What are the challenges?

25 1. Poor information quality : Resources mostly merely indicated old geological datasets without quality assurance measures clearly implemented, resulting to variable quality of geological and drill holes logs assay and, thus, lacking reliability ; artisanal mining activities, usually targeting higher grade ore areas result in uncertainties on remained amounts of resource (artisanal resource depletion). A strong need for an efficient national geology service.

26 2. Power supply for existing and foreseeable mining projects The copper industry has been facing a shortage of power furniture since MW Avalaible power and mining industry needs in DRC Katanga Copper belt Power (MW) Requirements in terms of energy supply for copper industry in DRC Great power plant projects, such as the Great Inga (40 GW) should be seriously prospected to maintain the development of the DRC mining sector. 26

27 2. Power supply (cont.) meanwhile, operators are resorting to individual solutions that are not always environmentally friendly, since generated by engine combustion; hydro and renewable energies should be specially considered for their affordance and cleanness. Efficient energy-based partnerships have been established with the mining companies to keep up with power demand.

28 3. Business doing maintaining security and political stability in DRC ; securing investors and investment ; promoting a stable and equity-based fiscal environment ; reinforcing the law rule. 4. Logistics : more and better infrastructures having a reliable supply chain for mine construction, etc. due to the quite long distances, the question is how to export at lesser costs ; railway and road transportation systems should be better maintained and more efficiently interconnected within the sub-region ; having well equipped warehousing.

29 Using the mining industry to promote economic and social development

30 Mining royalties and taxes payments to build and/or rehabilitate infrastructures

31 2010 TFM Sarl social programs Health programmes : $ Education and Infrastructure: $ Economic développement (markets, enterpreneurship) : $ Reinplementation programs : $ Financement of the TFM Foundation : $ Total : $ 31

32 Enhancing living conditions of the populations surrounding mining projects

33 Support of Mining Companies to Health System

34 Support of Mining Companies to Education

35 Agro-pastoral activities for a sustainable development

36 Thanks for your kind attention! 36