1. An overview of the Australian Mining Industry AMN, Thursday 10 October 2013

2. Australian Economy The economy of Australia has a GDP of US$1.57 trillion. Australia's total wealth is $6.4 trillion In 2011, it was the 13th largest national economy by nominal GDP terms and the 17th-largest measured by adjusted GDP, about 1.7% of the world economy The Australian economy is dominated by its service sector, comprising 68% of GDP

3. Australian Economy 2011 - Minerals and fuels made up 50.6% of Australia’s trade market, reaching $158.7b 2011 - Iron Ore and Coal collectively reaching roughly $100b in exports, nearly one third of Australia’s export market 4 of the world’ s 9 most highly rated banks are Australian

4. Australia & Africa 200+ mining companies with over 700 projects in Africa Australia is pursuing membership with the AfDB and African Development Fund to support efforts in Africa Bilateral trade with Africa has increased annually by 6% over the past decade, currently at $9.7b Currently holds MoU’s with South Africa, Botswana, Mozambique, the Gambia and Nigeria

5. Size of Australia’s Mining Sector Australia’s mining industry has an investment pipeline of $430 billion In the 2011/2012 Financial year, exports of Australian minerals (excluding oil and gas) reached roughly A$164 billion The Australian mining industry accounts for between 8 – 10 % of GDP

6. Size of Australia’s Mining Sector (Cont.) The Australian mineral industry, in recent years, has accounted for around 50% of national exports It has also accounted for 20% of business investment Mining (inclusive of oil and gas) R&D expenditure has more than doubled in the past decade, reaching $4.1 billion in the 2011/2012 FY

7. Mining Sector Breakdown Australia has the worlds largest reserves of brown coal, mineral sands, nickel, lead, uranium, iron ore and zinc Also holds the worlds second largest reserves of bauxite and tantalum Australia is currently home to the world’s third largest reserves of copper

8. Mining Sector Breakdown (Cont.) Australia holds the World’s fourth largest reserves of silver Direct employment in the mining industry in August 2013 was 249,000 95% of workers in the industry are full time employees Australia may hold the largest reserves of certain minerals, however it may not be the largest producer

9. Mining Sector Breakdown (Cont.) Largest private sector employer of indigenous Australians As at May 2013 average full time earnings was $2, 477 per week Since 2001-02, more then $145 billion payed in company income tax and royalties

10. Markets Supplied – Asia Pacific Due to Australia’s geographical location, it is in a prime position to supply the Asian market China, Japan, South Korea and India are the main markets Australian mining supplies Very important markets to be able to supply, with their large populations, these countries are large scale consumers of minerals (especially coal and iron ore) Important consumer with the coming of the “Asian Century” as these countries are becoming economic superpowers (primarily China)

11. Australian Mining Sector Challenges High input costs involved in mining in Australia Mineral resources tax and carbon tax directly impact mining industry Company income tax and royalties already equal $20 billion a year not including the mineral resources tax and carbon tax High industry costs also making trade with Australian minerals less attractive