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 18 June 2000 22 December 2000 21 June 2001 7 April 2003 20 August 2003 Phase 1: Phase 2: Phase 1 go-ahead First metal cast Last pot started potline 1 Phase 2 go-ahead First metal potline 2 Last pot started potline 2 31 months from go ahead to full commissioning, >US$ 100m under budget 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 90s
MOZAMBIQUE OPTIMISE CAHORA BASSA INITIATE A MEGA PROJECT KICKSTART MOZAMBIQUE INDUSTRY FIGHT POVERTY

MOZAL
MARKET FOR ENERGY MOZAL PROJECT LINKAGES & INDUSTRIAL PARK

Economic Growth

Job Creation Quality of Life

COMMUNITY DEVELOPMENT

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
700 pupils Grades 6 & 7 Water & electricity Sports field Program extended to 4 more schools Secondary school being built Malaria incidence dramatically reduced

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 NGOs and agencies

Revisiting The Linkages

MOZAMBIQUE OPTIMISE CAHORA BASSA MOZAL MARKET FOR ENERGY MOZAL PROJECT LINKAGES & INDUSTRIAL PARK COMMUNITY DEVELOPMENT

Economic Growth

INITIATE A MEGA PROJECT

KICKSTART MOZAMBIQUE INDUSTRY FIGHT POVERTY

Job Creation Quality of Life

Conclusion

Together we make a difference

~ Thank you ~
www.mozal.com