1. MIM Strategy in Mineral Resources Overview of the Minerals Sector in Iraq MIM Strategy in Mineral Resources Overview of the Minerals Sector in Iraq Details of Iraq’s Mineral Resources, Mining and Downstream Industries Challenges we Face in Developing the Minerals Sector Opportunities in Iraq’s Minerals Sector Iraq’s 2030 Vision Statement for the Minerals Sector Implementing the Minerals Sector Strategy Strategic Objectives Creating a Business Enabling Environment Reforms Needed in Iraq’s Minerals Sector Investing in Technology, Research and Education MIM 07-09-2011

2. Overview of the Minerals Sector in Iraq  More than 50 years of minerals exploration and prospecting expertise in Iraq.  Geosurv Iraq, a government entity within the Ministry of Industry and Minerals has the role of exploration and development of minerals resources as well as mining activities.  Geosurv Iraq is responsible for implementing “the Mineral Investment Law” no. 91 in year 1988.  The outcome is discovery and assessment of many deposits of minerals raw material & industrial rocks with a given list of proven mineral reserves, a lot more is not explored yet.  The Ministry of Industry and Minerals utilizes these minerals as input to various industrial fields : Phosphate Fertilizers, Cement Industry, Glass & Ceramics, Construction Materials, Chemical Industries, Native Sulfur, Refractory, and Silicon Industries. However, the level of utilization and exploitation is still poor.

3. Details of Iraq's Mineral Reserves, Mining and Downstream Industries IRAQI MINERAL RESOURCES Downstream industriesMining statusReservesMineral commodity Chemical industries, Sulfur, Ibin Sina, Fertilizer Not operating since 2003 (Project)V. LargeNative sulfur FertilizersOperatingV. LargePhosphate rock Mining, Glass & ceramics, Ibin SinaOperatingV. LargeSilica sand Ceramics, MiningOperatingV. LargeKaolin Drilling mud & foundaryOperatingMediumBentonite Cement, MiningOperatingMediumIronstone Cement, MiningOperatingV. LargeLimestone Na 2 SO 4 productionNot operating since 2003 (Project)SmallGlauberite RefractoriesOperatingV. SmallBauxite Refractories & white cementOperatingSmallFlint clay CeramicsOperatingSmallFeldspathic sand Drilling, Food and petrochemicals Al-FuratOperatingLargeSalt (NaCl) Construction materialOperatingMediumGypsum Construction materialsOperatingV. LargeAggregates Filter aidNot operating (Project)V. smallPorcelanite Brick and cementOperatingV. LargeRecent mud Magnesia bricksNot operating (deposit)V. LargeDolostone Drilling mud & filter-aidNot operating (Project)SmallAttapulgite Ferrous and non- ferrous metallurgyOperatingOccurrencesMetallic minerals

4. Challenges we Face in Developing the Mineral Sector  The transformation process to market economy requires active participation of the Private Sector in all stages of the minerals supply chain.  Minerals production is currently under-utilized. In addition to the lack of significant investment despite the huge quantities and acceptable qualities of these resources in Iraq.  The non-renewable nature of the mineral resources and the increase of the demand in the future require efficiency of use, recycling and expansion of exploration with near – surface and deeper.  There is an increasing pressure on access to land restricting the areas of land accessible for mineral exploration.  Permitting procedures become more complex and processes become longer.  The set of policies, laws, standards, guidelines that should be formulated to be enforced to attain optimum performance is not yet in place.  Application of environmental regulations

5. Opportunities in Iraq's Minerals Sector  Availability of Mineral resources in large quantities and good qualities.  Geosurv Iraq data is available on various aspects of these resources including : reserves, grade, mineralogy, morphology, extension, mining conditions and processing and continued upgrading of geosciences database indicate further exploration opportunities.  Down-stream industries using mineral resources are available but there is a room for significant expansion to satisfy demand increase.  Possibility of exports of processed mineral resources as well as investment on the already existing State Owned Enterprises or establishing new ones.  Opportunities for expansion and developing new minerals.  Consultative study by Booz & Company for Iraq Integrated National Energy Strategy indicates that Iraq demands are expected to grow rapidly(e.g. additional capacities required by 2030 are for: Cement 30mta, Steel 4mta, Bricks 42mta, Aluminum 1mta).  The huge national demands of the Iraq's infrastructure development and rebuilding requires products that are based on mineral resources, so we expect similar trend in Phosphate Fertilizer, Glass and Ceramic, Silicon,..  Availability of local skilled geologists, engineers and technicians in various related specializations of geology and mining as well as established geological and material science colleges. 

6. Iraq's 2030 Vision Statement for the Minerals Sector For the 2030 vision Iraq will be an important regional player in the sustainable development of its mineral resources and will:  Be on the path to becoming globally competitive,  Support province and federal government development,  Serve as a platform for industry growth and export – oriented activities,  Promote knowledge and innovation,  Enable improvement in the socio-economic value- chain (creates direct and indirect jobs), and  Enhance sustainable and responsible growth.

7. Implementing the Minerals Sector Strategy (short, medium and long term) Short term Institutional Building Geosurve Iraq restructuring ( Separating Geo Survey from Mining), Legislative improvements (law number 91/88), activation of province federal Gov. relationship, global links with international entities, Gov. funding, down-stream industries restructuring, R&D center. Medium term Expansion and Exploitation of mineral Resources PPP, Geosurv Iraq Lead exploration and development initiatives, Business Enabling environment, Government Funding, Co financing and FDI, Clusters on Construction Materials and Silicon Industries, Development of effective consultation process, New job creation, Active role of the provinces. Long term Sustainable and responsible Growth and Competitiveness Efficiency of use, recycling, expanding down stream industries and mining, monitoring performance, development of mineral related industries, Promote industry–driven research and innovation, New job creation, Maximizing minerals revenues. ` 2020 2015 2030

8. Strategic Objectives Environmental Social Economical

9. Creating a Business Enabling Environment  Investment friendly policy and legislation Security of tenure, Easy access to land, Short permitting procedures, Attractive fiscal regime, Divestment of Government from mining activities to open additional areas for private investments.  Internationally competitive mining incentives.  Availability of quality Geo-Science data.  Increased support mechanisms and facilities (e.g. infrastructure and improved service delivery, etc.)  Enhanced institutional capacity for monitoring & supervision,…etc  Improvement of the minerals sector's financial opportunities and continuing support for infrastructure investment and through lending and loan guarantees and co financing for mineral sector investments.

10. Reforms Needed in Iraq's Minerals Sector  Open and transparent access to mining.  Reorientation of government from “Owner-operator” to “Admin- regulator”.  Improvement of current legislations and regulations.  Private sector to be the engine of growth.  Institutional reform, human resource development and innovation support.  Strengthening geological data generation.  Enhancing R&D activities and more interaction with university (knowledge transfer).  Extending global cooperation with major international players (e.g. USGS)  Supporting public private partnership.  Establishing cooperation and integration relationships between provinces and federal government.  Promote clustering in construction materials and silicon industries.

11. Investing in Technology, Research and Education Strengthening research and technology development inIraq to allow lower extraction costs and reduced environmental impacts. Cooperating with educational institutions in Iraq in delivering training programs to support new and expanding mineral resources, skill sets in provinces as well as for local entrepreneurism. Developing Geosurv Iraq strategic partnerships with provinces, educational institutions and the private sector to address mineral sector training and research & development requirements coordination with stockholder to provide funding of research and development through the establishment of an international center for excellence in exploration and mining. There is a lack of specialization in our universities on mining. Implementing the concept of sustainability with respect to efficiency of use of natural resources to become an acceptable and integral part of the educational system. Developing products, processes and services embracing all aspects of the mineral utilization chain and encouraging innovation. Enhancing collaboration between research groups working in material sciences and refining both inside outside Iraq.