Mozal Aluminium Smelter

Smelter Location

Project Overview

• 506,000 tpa primary aluminium smelter constructed in two phases

• Aluminium Pechiney AP30S technology

• Approx. US$ 2bn total (historical) funding

• US$ 1.1bn non-recourse project funding, internationally syndicated

• Shareholding BHP Billiton 47%, Mitsubishi 25%, IDC 24%, GOM 4%

Milestones

14 May 1998 Phase 1 go-ahead

18 June 2000 First metal cast

22 December 2000 Last pot started potline 1

21 June 2001 Phase 2 go-ahead

7 April 2003 First metal potline 2

20 August 2003 Last pot started potline 2

Phase 1: 31 months from go ahead to full commissioning,

>US$ 100m under budget

Phase 2: 26 months from go ahead to full commissioning,

>US$ 195m under budget

Two world records ~ in Mozambique

Phase 2 Achievements

• Benchmark construction safety record - LTIFR 1.07

• Zero reportable environmental incidents

• Construction workforce peaked at 5,033 - 70% Mozambican

• Excellent IR climate zero manhours lost in 14 million worked

• US$ 92m expended in the Mozambican economy

Achievements – Operations

• Highest pot efficiency for AP30 technology

• Benchmark anode effect rate of 0.04 per pot per day

• “Best-in-class” start up for potline 2 in terms of speed, efficiency

quality and safety

• Exceptional metal quality

Why Mozambique ?

The project fits within the economic transition in Mozambique which started in the early 90’s

Quality of Life

JobCreation

EconomicGrowth

OPTIMISE CAHORA BASSA

MARKET FOR ENERGY

INITIATE A MEGA PROJECT

MOZAL PROJECT

KICKSTARTMOZAMBIQUE

INDUSTRY

LINKAGES &INDUSTRIAL PARK

FIGHT POVERTYCOMMUNITY

DEVELOPMENT

MOZAMBIQUE MOZAL

Economic Impact

• Mozal in 2002 = 53% of exports and 28% of imports

• 2002 real GDP growth 8% (Mozal 2.1%)

• Net positive impact on balance of payments around $100m at

steady state

• Mozambique export earnings US $220m to US $1bn

Local Business Participation

• Phase 2 project spend of US$92m

• Expanded operation spending US $3.5m per month on goods and

services in local economy

– 170 active local suppliers, 30 added in last 12 months

• Specific programs for Small and Medium Enterprise development

– Phase 2 construction (SMEELP) 28 packages

– Expanded operation (Mozlink) 12 contracts targeted

Social Contribution

• Mozal Community Development Trust established in 2001• Budget of $2m per annum• Focus in immediate vicinity of the smelter• Projects related to community infrastructure, health, small enterprise

development, education, sports and culture• Projects screened for sustainability, poverty relief contribution and

addressing identified social impacts• Partnering approach with NGO’s and agencies

• 700 pupils• Grades 6 & 7• Water & electricity• Sports field• Program extended to

4 more schools• Secondary school

being built• Malaria incidence

dramatically reduced

Revisiting The Linkages

Quality of Life

JobCreation

EconomicGrowth

OPTIMISE CAHORA BASSA

MARKET FOR ENERGY

INITIATE A MEGA PROJECT

MOZAL PROJECT

KICKSTARTMOZAMBIQUE

INDUSTRY

LINKAGES &INDUSTRIAL PARK

FIGHT POVERTYCOMMUNITY

DEVELOPMENT

MOZAMBIQUE MOZAL

Conclusion

Together we make a difference

~ Thank youThank you ~

www.mozal.com