27.08.2012, Mining consulting – adding value in the sector, John P L Bacharach

27.08.2012, Mining consulting – adding value in the sector, John P L Bacharach

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  Slide 1 Adding Valuein the Mining Sector Presented by John P L Bacharach, Director, IEEC (a member of IMC Montan) To The Business Council of Mongolia Ulaanbaatar, 27 August 2012
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  Slide 2 Who WeAre  IEEC was set up in 1992  Started work in the CIS that year  Specialist mining consultancy  Maintained continual growth since inception
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  Slide 3 Our Antecedents Initially a division of IMC Group, UK (IMC)  IMC is a leading international mining consultancy, founded in 1947  IMC has worked in every mining country and with every commercial mineral  IEEC has 20 year track record in CIS  In 2006, IEEC linked up with a German mining consultancy in the “IMC Montan” JV
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  Slide 4 Our Servicesinclude:  Exploration support  Resource and reserve valuation (JORC/ NI43-101/etc)  Feasibility studies  Due diligence and MERs for IPOs  Operational assistance  Safety and environmental audits
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  Slide 5 Our Team IMC Montan has more than 1,000 staff and associates  They include Australian, Canadian, German, Kazakh, Russian and UK specialists  We have practical, seasoned industry experts in coal, precious and base metals and iron ore  They include a number of “Competent Persons”  Core staff are based in Moscow with easy access to Mongolia
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  Slide 6 IEEC Projectsin the CIS
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  Slide 7 A. AddingValue to an Exploration Programme Client: Millhouse (RMC LLC) Date: 2010-12 Location: Chukotka Region, RF Mineral: Gold Scope: • Exploration programme planning • Development of rule • Monitoring and quality control • 3D model validation • Reserve estimates Result: Client was able to proceed seamlessly and cost effectively to achieve a fully JORC compliant resource
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  Slide 8 B. OptimisingStrategy for A Portfolio of Mineral Deposits Client: Confidential Date: 2011-12 Location: Krasnoyarsk Krai, RF Mineral: Coal Scope: • Number of undeveloped licenses • Joint work with KPMG • Evaluated a range of parameters • Ranked deposit Result: Recommendations on most effective development strategy – minimising investment costs and reducing risks
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  Slide 9 C. ImprovingNPV and IRR of a Mine Development Project Client: Russian Copper Company Date: 2011-12 Location: Dagestan Republic, RF Mineral: Copper Scope: • Mine design review • Radical redesign • Improved access concept • Faster ramp up Result: Planned production during the first six years increased from 7 to 15mt ore, with big increase in NPV and IRR
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  Slide 10 D. Addingto a Mining Company’s Valuation Client: OAO FosAgro Date: 2011 Location: Murmansk Region, RF Mineral: Apatite Scope: • Apatite mines (for fertiliser production) • Reserves classified by national agency (GKZ) • Validated JORC estimates • Did Competent Persons Report Result: The client was able to progress from quoting GKZ reserves, to an internationally recognised estimate, with a value of some $1.5billion, established through an IPO
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  Slide 11 How Werewe Able to Add Value?  Exploration project – through our thorough knowledge of exploration practice and JORC requirements  Strategy project – through strategic vision and technical know-how of our staff  Development project – through our total commitment to achieving the fastest practicable ramp up  IPO project – through our extensive experience with CPRs/MERs
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  Slide 12 Why AreWe Here in Mongolia?  Mining is a key sector in Mongolia, with huge expansion potential  Mongolia is easily accessible from our bases in Moscow and Ekaterinburg  We are keen to contribute to Mongolia’s mining developments  As an important first step, we have joined BCM  We see Mongolia as a land of opportunities!