Heavy Haul Rail Sao Paulo 2012

Rail Capacity Enhancement Projects in the Pilbara

– Western Australia

Overview

A leading provider of integrated engineering and project delivery services to the Resources and Infrastructure markets

Integrated project assessment, design and delivery management service offering across the mine, rail port and infrastructure asset lifecycles

Delivered or delivering, 45 projects for key blue chip clients, with combined capital value of $39bn

Market leader in the Australian heavy haul rail market

Leading mine site EPCM service provider to the Australian iron ore sector

Leader in remote operations enablement and technology integration in the resources sector

2

Mine Rail Technology Infrastructure

Asset evaluation and consulting

Pre - feasibility studies Feas i bility studies

Detailed engineering design

Project delivery services Project construction

management Commissioning and

handover

Operations services

Maintenance services Continuous improvement

Environmental , health and safety management and training

Plant and mine closure and rehabilitation services

Optimis e Technology

enablement services

Sustaining capital works

The Calibre Service Continuum

Diversified integrated engineering and project delivery offering across the asset lifecycle

3

4

Geological & Mining

Consulting

Mine-site Infrastructure

Rail Services

Industrial Technology

Sustainability Infrastructure Services

Port Services

Safety Training

• Track & civil

• Operations

• Signaling & communication

• Rail infrastructure

• Stockpile & blending

• Ship loading

• Infrastructure

• Simulation

• Design

• Delivery

• Optimisation

• Geological services

• Early stage mine design and consulting

• Corporate support

• Mine safety services

• Environmental management training

• Engineering solutions for sustainable environmental management

• Materials handling

• Mine infrastructure

• Minerals processing

• Industrial, commercial and retail structures

• Roads and bridges

• Urban development

• Safety & rescue training

• OSH consulting

• OSH compliance and documentation

Client deliverables by group businesses

The Calibre Group consists of complementary businesses providing integrated services across the asset lifecycle, to the resources and infrastructure sectors

Integrated services across the value chain Mine Rail Port Infrastructure

5

Operations across Australia with an expanding geographical presence

6

Enduring Value

Major Pilbara Players

BHP Billiton

Iron Ore

» 7 mining operations » 1000km track » 2 port facilities

» 14 iron ore mines » 1400+km mainline

track » 3 ports – Dampier

(East Intercourse and Parker Point), Cape Lambert

7

Rio Tinto Iron Ore

Fortescue Metals Group

» 2 iron ore mines » 700+km track

Enduring Value

Rio Tinto Iron Ore – Expansion Projects

8

» Services 14 mines via a mainline system of 1500km track

» First operated in 1966

» Investing US$15bn on Pilbara expansions between 2010 to 2015

» Targeting 353mtpa

» Additional 50% capacity to existing (225mtpa in 2011)

» 1 new mine – Hope Downs

» 3 mine expansions – Brockman 4, Western Turner Syncline, Nammuldi plus sustaining works at Marandoo to increase life of mine

Enduring Value

Rio Tinto Iron Ore – Expansion Projects

9

Rail capacity expansions, technology and innovation

» Staged capacity upgrades to mainline targeting 353 mtpa by 2015

» Introduction of ECP (electronically

controlled pneumatic) braking systems on entire fleet

» Deployment of AutoHaul TM driverless

trains throughout the Pilbara Mine Location Map

Enduring Value

Fortescue Metals Group - Operations

10

Enduring Value

Fortescue Metals Group - Overview

» Firmly established itself as one of the world's leaders in iron ore production and sea-borne trading.

» Tenements located throughout the resource rich Pilbara region of Western Australia » Construction of the initial mine, rail & port project commenced in 2006.

» 2008 - rail & port infrastructure were completed and operations were underway at their

flagship Cloudbreak mine

Production levels:

» FY10 = 27 million tonnes of iron ore » FY11 = 40 million tonnes of iron ore » FY12 = 55 million tonnes of iron ore » Expansion = 155 million tonnes of iron ore

11

Enduring Value

Fortescue Metals Group - Port & Rail Infrastructure Continued

RAIL » First large-scale railway development undertaken in the Pilbara in more than 40 years » Currently the heaviest haul line in the world – 40 tonne axle load capacity » As of December 2012 total rail infrastructure = 700km, including 10 bridges » Current rolling stock includes:

– 43 locomotives – 3000 ore wagons – 30 fuel tanker wagons – 47 ballast wagons

» Each train carries up to 33,000 tonnes of iron ore, consists of 240 ore wagons and in 2.7kms long

» Train Control Centre located in Perth: FMG to introduce an Integrated Train Control System

Further Expansion Plans +155mtpa:

» Acquire two more trains » Operate 13 ore trains – each train to complete at least one trip per day

12

Enduring Value

Fortescue Metals Group - Operations

CHICHESTER HUB » Designed to take capacity from 55Mtpa to 90Mtpa » Additional 5Mtpa capacity – JV with BC Iron

Cloudbreak:

» 40Mtpa since 2008 » Train load-out facility – capable of feeding 16,000 tonnes of ore per hour » 256km heavy heal railway from mine to Herb Elliot Port

Christmas Creek:

» Expansion underway to increase capacity » Ore processing plant operating at 18Mtpa » 50km rail extension to existing Port Hedland to Cloudbreak rail line

13

Enduring Value

Fortescue Metals Group – Expansion Projects

14

HERB ELLIOT PORT » Expand to 4 berths » A second and third train unloader » A third stacker » A second and third reclaimer » A third and fourth shiploading berth (AP3 and AP4) » A second and third shiploader

RAIL EXPANSION » Duplicating 120kms of the mainline from Port Hedland » New 130km rail spur to the Solomon Hub » Four new bridges » Two new rail loops to deliver iron ore to Herb Elliott Port

SOLOMON HUB » Large, low cost mining operation 120km west of the Chichester Hub » Maiden reserve of 716 million tonnes

– First stage to produce 60Mtpa of ore from the Firetail & Kings deposits

Enduring Value

BHP Billiton Iron Ore - Overview

» BHP Billiton Iron Ore is one of the world’s premier suppliers of iron ore, employing 13,000 people across the Pilbara.

» Mining operations are supported by the town of Newman while Port Hedland

houses the company’s port and rail facilities. » The massive Mt Whaleback mine, established in 1968, is the biggest single-

pit open-cut iron ore mine in the world being more than five kilometres long and nearly 1.5 kilometres wide.

» Adjacent are smaller deposits, Orebodies 29, 30 and 35. Smaller satellite

mines – Wheelarra and Orebodies 18, 23, 24 and 25 – are located outside the town of Newman.

» The Yandi and Area C mines are located about 100 kilometres north-west of

Newman. The Yarrie mine is 200 kilometres east of Port Hedland.

15

Enduring Value

BHP Billiton - Operations

16

Location of Operations

Enduring Value

BHP Billiton Iron Ore

17

» 220 Mtpa combined capacity

» Port Hedland Inner Harbour Expansion commissioning scheduled for H2 CY12

» Jimblebar Mine Expansion delivers 35 Mtpa of mining capacity with larger processing

capacity, first production scheduled for Q1 CY14

» Rail Yard Facilities Expansion creates flexibility and increases our direct load capability

with commissioning expected in H2 CY14

Enduring Value

BHP Billiton Iron Ore – Utilisation of Dual Track

» Achieved 145 mtpa with single track infrastructure

» Single track operation required a large number of passing loops which created

inefficiency

» Dual track can deliver more than 300 mtpa of capacity with modest investment

18

BHP Billiton Iron Ore Train

Enduring Value

Oakajee Port & Rail - Overview

» OPR established in 2007 – JV between Murchison Metals Ltd, Mitsubishi Development

Pty Ltd & Crosslands Resources Ltd » Deep water port 24km north of Geraldton » Will cater for the world’s largest ore carriers » 570km rail network to service operating & emerging projects » Project Value: $3.5bn » Currently on hold

OAKAJEE PORT:

» Site boasts a natural deep anchorage » Capacity to accommodate cape size vessels » State of art facilities

RAIL NETWORK:

» Strategic rail corridor from Oakajee to the North East at Weld range & Jack Hills » Heavy haul single track with passing loops – initial export capacity potential 45Mtpa

19

Enduring Value

Oakajee Port & Rail - Operations

20

Project Location

Enduring Value

Roy Hill - Overview

» 55Mtpa project – the next iron ore mining, rail & port project to be developed in the Pilbara

» Only independent iron ore project with West Australian majority ownership » Approx 115km north of Newman » Mine life of more than 20 years » Aiming to load it’s first shipment of ore for export by 2015

MINE

» Conventional open pit » Processing plant for the project will utilise low risk, proven technology - will be the

largest single feed processing plant in the region

RAIL

» 344km single line, heavy haul railway » Dedicated port stockyard facility located south of Port Hedland » Independently owned & operated » Operate 5 ore trains per day – total payload of 31,450 tonnes of ore

21

Enduring Value

Roy Hill – Overview Continued…

PORT » Purpose built iron ore port facility at Port Hedland » Wharf designed to accommodate an average vessel size of 206,000

tonnes » Capable of handling larger 320,000 tonne cape size vessels

CORPORATE HEADQUATERS & REMOTE OPERATIONS CENTRE

» Construction of integrated Corporate Headquarters & Remote Operations Centre (ROC)

» Ability to integrate operations, marketing and corporate service functions » ROC will provide end-to-end integration of operations through state of the

art automation

ADDITIONAL INFRASTRUCTURE

» Construct & operate an airport » Workforce accommodation for over 5000 staff » Site access roads » Mining & processing support facilities

22

Enduring Value

Roy Hill – Project Scale

23

Enduring Value

Junior Miners – North West Infrastructure

NORTH WEST INFRASTRUCTURE

» Formally the North West Iron Ore Alliance » JV between Atlas Iron Ltd, Brockman Resources Ltd & FerrAus Ltd » Facilitate construction of port facility capable of exporting 50Mtpa » Two berths, stackers & loaders, conveyors, stockyard, rail car dumper & rail loop

24

Enduring Value

Junior Miners – Atlas Iron Ltd

ATLAS IRON “The Pilbara’s Emerging Powerhouse”

» Operations: Pardoo Mine & Wodgina Mine » Expansion Projects (Horizon 1): Target production rate of 15Mtpa by 2015

» Development Projects (Horizon 2): Targeting up to 46Mtpa » Port Infrastructure: Utah Point & South West Creek » Rail: currently utilise road haulage – rail haulage will be prefered for future expansion &

development projects » Signed MoU in April 2012 with QR National – study the development of an independent

rail network

25

Enduring Value

Atlas Iron – Project Area Map

26

Enduring Value

Junior Miners – Brockman

BROCKMAN (RESOURCES) MINING Marillana Mine:

» Flagship project located 100km north-west of Newman » Located close to existing infrastructure – BHP’s railway traverses through the lease » Project requires rail infrastructure » August 2012 – Tripartite Alliance Study Agreement with QR National & Atlas Iron Ltd » Allocated 50Mtpa capacity at Port Hedland via North West Infrastructure set up » Progressing the development of an “independent” rail solution with QR National

Other Projects: Opthalmia Project & West Pilbara Project » Comprise of exploration tenements / prospects

27

Enduring Value

Brockman – Project Area Map

28

Flagship project location

Enduring Value

Junior Miners – BC Iron Ltd

BC IRON LIMITED “The Pilbara’s New Iron Ore Producer”

» 50/50 JV with FMG in 2009 – Nullagine Iron Ore Project » Mine life of 8.5 years » Annualised production rate of 5Mtpa » BC Iron is operator & manager of the project » Contracts FMG’s subsidiary, the Pilbara Infrastructure Company, to provide rail services » 100% owners of Bungaroo project: comprises of 5 Exploration Licences – close to

existing Rio Tinto rail system, the proposed rail & Anketell multi-user port

29

Enduring Value

BC Iron Ltd – Project Area Map

30

Enduring Value

Junior Miners – Aquila Resources

AQUILA RESOURCES LTD West Pilbara Iron Ore Project

» Projected Production rate: 30Mtpa from Stage 1 » Estimate mine life of 15 years » Significant infrastructure required e.g. airstrip » Heavy haul railway from the Central Processing Facility (CPF) to a port location at

Anketell Point (approximately 245km) » Train unloading, iron ore stockpiles, processing, blending and ship loading facilities at

the port location

31

Enduring Value

Aquila Resources – Project Area Map

32

calibregroup.com