1. 2008 and Beyond: The Challenges, Opportunities and Obligations Facing Australia’s Minerals Industry Owen Hegarty, Managing Director and CEO, Oxiana Ltd.

2. 2 The Year of the Rat

3. 3 Three Key Issues >Why we are looking at a once-in-a lifetime opportunity >The challenges facing our industry >What we must do to grasp the opportunity

4. 4 The Opportunity >Stronger for longer >Stronger forever >Paradigm shifts in demand and supply >Emerging super economies on Australia’s doorstep >Other rapidly developing economies >The US is not the only game in town

5. 5 China: Copper intensity is growing but remains low Source: Macquarie Research

6. 6 The opportunity is now! We can generate inter-generational benefits We must take a long-term perspective today

7. 7 Capacity constraints to growth >Production and export capacity >Professional and trade skills shortages >Declining national mining inventories

8. 8 Systemic efficiency Source: Minerals Council of Australia

9. 9 Human Infrastructure >75% increase in new jobs in the minerals industry by 2015 >Practical industry involvement in pre-employment and apprenticeship training >Continue to develop our R&D capabilities >Efficient 457 visa system to plug gaps in our skills base

10. 10 Diminishing mining inventories >New discoveries are in trend decline >Successful exploration is of paramount importance >Incentives such as flow-through shares are effective >Exploration is a global phenomenon: –Asia consumes 50% of the world’s copper and produces 15% –Asia / Pacific receives around 5% of global exploration budgets

11. 11 South Australia’s PACE initiative >Improve land access >Financially assist exploration >Survey and collate existing geoscientific data >Make information available to assist exploration >Improve awareness of SA’s prospectivity

12. 12 Investment Horizon >Investment time horizon is very long >Prominent Hill; 7 years from discovery to production >The opportunity is to generate strong returns for the long-run >Patient capital will be well-rewarded

13. 13 The Year of the (Mighty) Ox!

14. 14 What is Required >Better physical infrastructure management >Relevant education and training >Support for exploration and R&D >Efficient business migration to address skills gaps >Patient capital to create long-term wealth We can generate inter-generational benefits We must take a long-term perspective today

15. 2008 and Beyond: The Challenges, Opportunities and Obligations Facing Australia’s Minerals Industry Owen Hegarty, Managing Director and CEO, Oxiana Ltd.

16. 16