AMEC plc 2007 - Mining Presentat by pengxiuhui

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    Natural Resources – Minerals and Metals Mining




    Bob Stanlake
    Vice President, Mining
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    Agenda

                                    % Natural Resources revenues 2006*


                                                       72% Oil and Gas Services

                                                       15% Oil Sands**

                                                       13% Minerals and Metals
                                                       Mining



    Natural Resources – Minerals and Metals Mining
       Market
       AMEC position
       Our strategy for growth
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    All major markets are growing


                      2006 Investment by region
             $70

             $60

             $50

             $40
     US$ B
             $30

             $20
                                                                                                   = 2004
             $10                                                                                   = 2005
                                                                                                   = 2006
                $0
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                                                   Source: Energy & Mining Journal February 2007
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    Market overview Project investment by metal



                                            Investment   Share of
                                               C$ B      Total %
      Copper                                      64.9     30.7
      Gold                                        50.7     24.8
      Nickel                                      46.2     22.4
      Iron Ore                                    40.2     20.1
      Lead/Zinc                                   10.6     4.7
      PGM                                         9.4      4.7
      Diamonds                                    8.3      3.5
      Other                                       8.3      7.1
      Total                                   245.5        100
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    Increasing metal prices drive investment
    The global market




          Source: Investor Presentation Bateman 2006 Annual Report; CRU MICA, LME
          Note: The historical capital expenditures are presented in nominal US dollars with 2004 as a base year
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    Market dynamics



       Metal demand remains strong reflecting infrastructure/ urbanisation
        trends occurring in Asia
       Supply is constrained by high costs, labour shortages and
        challenging locations
         – Long-term structural upward shift in prices
       Restart of inactive or abandoned mines has increased
       Resources, technology applications and project management skills
        are becoming key differentiators
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    AMEC Minerals and Metals Mining History

                                   Formation of TNT
                H.A. Simons
               acquires MRDI
                                                            AMEC acquires
                                                               AGRA
                    1995                 1997
                                                              Feb 2000

                                                   July 1999
        1994
                               1994-1999        AGRA acquires
                                                 H.A. Simons
     H.A. Simons
    acquires CESL


                               Mining Division expands to
                                       500 people
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    Capability
    Initial Exploration & Final Feasibility to decommissioning




       More than 2,000 studies completed in the last 10 years
       Exploration support
       Resource/reserve estimation
       Process development
       Mine planning and design
       Operations optimization
       Valuations, audits and reviews
       Risk assessment/management
       Dynamic simulation
       Technology/innovation application
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    EPCM Experience



       Strong track record in the
        execution of projects with
        capital costs of up to
        US$1 billion
       Experienced in unique
        logistical challenges of
        remote locations and
        difficult access
       Recognized leader in
        northern and arctic
        construction
       Partnering approach and
        alliances on many projects
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     Outstanding achievements



        AMEC was the EPCM contractor for two major
         expansions at the Red Dog mine in Alaska, the
         world’s largest lead-zinc mine

        We were the EPCM contractor for a major
         expansion at the Lac des Iles project – Canada’s
         first palladium-platinum mine

        AMEC was the EPCM contractor for Ekati –
         Canada’s first diamond mine

        We have completed more than 2,000 studies in the
         last 10 years
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     Key strengths


        Consulting Services
          – from initial exploration through to feasibility studies
        Engineering, Procurement, Project and Construction Management
        Asset Management
          – plant start-up and commissioning, operator training, in-plant
            engineering and mine support services
        Specialized Environmental Services
          – including waste water treatment, reclamation and tailings dams
        Sophisticated Project Management and Engineering Tools
          – including steady state and dynamic simulation, project websites, 3D
            design and photogrammetry
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     Conceptual Scope for a typical AMEC project
      - Snap Lake Diamond facility



                                                       Mine portal

                          Diesel fuel storage




                                                                      Crushed ore
                                                                       conveyor



           Waste rock &
            processed
            kimberlite
                                       Process Plant




                                                              Accommodations
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     Our resources

     OFFICES                                      STAFF

        Calgary                                           10
        Lima, Peru                                        85
        Phoenix                                         147
        Reno                                                  8
        San Diego                                         37
        Santiago, Chile                                 252
        Saskatoon                                       226
        Toronto (Oakville)                              373
        Trail                                           124
        Vancouver*                                      553

     TOTAL                                            1,805
     * Including share of common operations. As of June 2007
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     Strong regional focus




      Centres of
      Excellence
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     Nature of contracts



        Studies and consulting – 10%
        Engineering & EPCM – 75%
        TNT - Design/supply of conveyor stacking systems to the mining
         industry – 15%


        Consulting and EPCM contracts are fully reimbursable based on
         salary multipliers or fixed rates.
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     Relationships with key companies

          Our client base includes world-class organizations:
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     Our peers



        Tier 1
          – Hatch
          – Aker Kvaerner
          – SNC Lavalin
          – Fluor
          – Bechtel
        Tier 2
          – Ausenco
          – Bateman
          – Wardrop
          – Minproc
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     Red Dog, Alaska (Teck Cominco)



        Several EPCM contracts over the last decade for expansions of the
         world’s largest zinc-lead mine
        200 km north of the Arctic Circle
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     Snap Lake, NWT (De Beers)



        Resource, conceptual and prefeasibility studies of underground
         diamond mining at a greenfield site
        EPCM for C$40M Advanced Exploration Program
        Detailed feasibility study
         and EPCM undertaken
         in an alliance with owner
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     Allan Potash Project, Canada



        C$210M for the expansion of a Saskatchewan underground potash
         process plant and associated facilities, to increase production from
         1.6M tpy to 2M tpy.
        Services includes engineering, procurement and project and
         construction management services.
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     Market Outlook
     Challenges



        Supply is constrained by high costs, labour shortages and
         challenging locations
        Prices are high but still below inflation adjusted historical peaks
        There is a long term structural upward shift in prices due to the
         above and increasing input costs (energy)
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     Growth drivers



        Economic momentum of India and China driving demand for a
         broad range of commodities within AMEC’s portfolio of experience.
        Strategic locations including Vancouver, Toronto, Saskatoon and
         Santiago as Global Mining Centers
        Strategic relationships with key growth clients including PCS, Teck
         Cominco and De Beers Canada
        World recognized talent in Geology, Mining and Process providing
         early entry to project opportunities.
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     Strategy for growth



        Continue to build the front end consulting group by acquiring
         globally recognized talent.
        Utilize the front end consulting as entry to EPCM
        Leverage experience in South East Asia and acquire a compatible
         consulting business in Australia.
        Aggressively target “headroom” opportunities
        Grow our South American business organically and through start-
         up opportunity in Brazil



     Minerals and            International expansion
     Metals Mining           Capacity expansion
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     A growth market



        Leading market position in North America

        Markets remains strong

        AMEC resources, technology applications and project
         management skills are becoming key differentiators

        Strategy for growth

								
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