Operations and Interests

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Operations and Interests
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Australian Operations
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About MIM

• International mining company based in Queensland,
  Australia.
• Focus on mining and processing minerals and
  metals.
• Diversified products - copper, gold, zinc, lead,
  silver and coal.
• Employees 8000 world wide (5000 in Australia).

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Product Diversity Relative sales revenue by
product 1998/99 fiscal year
By-product Gold
Gold
Coal
1
8
23
Copper
31
Silver
6
Lead
8
Zinc
23
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About MIM

• World class, long life orebodies.
• Improved management capability.
• New projects, largely capital efficient
  brownfields expansions and improved operating
  performances.
• Increasing output at reducing unit costs.
• Increasing competitiveness of operations.
• Strong cashflow.
• Capital expenditure reducing.
• Focus on reducing debt.

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Consistent Strategy Growth and Cost Reduction

• Focus on core business, non-core assets divested.
• Improving competitiveness, reducing costs,
  increasing productivity and optimising
  utilisation of assets and infrastructure.
• Development of new, low cost projects.

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Progress - Competitiveness Copper - Gold

• Streamlining the Mount Isa operation, reducing
  production costs.
• Expansions/upgrades at Mount Isas copper smelter
  and refinery completed.
• Commissioning of high grade Enterprise mine
  scheduled for 3Qtr 1999/00, mine plan extends
  beyond the next decade.
• Ernest Henry (MIM 51) copper-gold integrated
  into expanded Mount Isa downstream processing.
• Alumbrera mine - one of the worlds lowest unit
  cost copper mines.
  
  

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Mount Isa Business Unit doing more with less.
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Reducing the Cost to Market Mount Isa Copper
Cathode Production
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Enterprise Mine Mount Isa Longitudinal Section
Looking West
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North West Queensland
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Mount Isa Mining Lease
ML 8058
Isa Mine
George Fisher
Hilton Mine
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- Exploration Targets
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Alumbrera - MIM 50

• Commercial production commenced February 1998.
• One of the worlds lowest cash cost copper
  producers in its first full year of commercial
  production.
• Target mining rates achieved.
• Metallurgical performance ahead of feasibility,
  throughput above design, metal recoveries
  ahead of expectations.
• Produced more than 200,000 t copper
  700,000 oz gold in 98/99.

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Alumbrera Cash Cost after Gold Credits
Normal C1 cash cost to market excludes royalty
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Alumbrera - MIM 50

• Revised 15 year mine plan.
• Based on revised estimated total Proved and
  Probable Ore Reserve 460 Mt.
• Average 178kt annual copper production for 10
  years.
• Mine life dependent on new exploration initiative
  surrounding Alumbrera.

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MIM Group - Doubling Copper Output
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MIM Group - Reducing the Cost of Copper Production
USc/lb
Year ending 30 June
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Gold
Oz 000s

Year ending 30 June
Highland Gold divested 1996
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Moving Down the Cost Curve
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Coal Operations
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Progress - CompetitivenessCoal

• New management.
• Significant workplace improvements, increasing
  productivity.
• High quality, long life coal resources.
• Capital efficient brownfield expansions, new low
  cost highly productive longwall mines at Newlands
  and Oaky Creek.
• Better utilisation of infrastructure.

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Increasing Coal Productivity
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Coal Operations - Output up over 75
Year ending 30 June
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Reducing the Cost of Coal Production
A/t
Year ending 30 June
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Progress - Competitiveness Zinc-Lead-Silver

• Development of the George Fisher deposit to
  extend competitive zinc-lead production at Mount
  Isa beyond the next decade.
• Mount Isa zinc/lead review - potential to sustain
  production at higher rates, maximising the use of
  existing infrastructure.
• Northfleet (UK) integrated lead refinery adds
  value.
• Mining and metallurgical improvement at
  McArthur River, lower production
  unit costs.

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Reducing the Cost of Zinc Mine Production
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Mount Isa Zinc-Lead-Silver Indicative Production
Profile
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George Fisher Project

• Capital efficient brownfields expansion
  maximising the use of existing infrastructure
  including mine, concentrator and smelter at Mount
  Isa.
• Second quartile zinc cost producer.
• Project scheduled to be commissioned second half
  calendar 2000.
• Feasibility based on 2 of 11 orebodies - high
  potential to extend life beyond 10 years.
• Modifications/upgrade of existing plant to
  improve recovery of existing production.
• Sales to new Townsville Zinc refinery to reduce
  transport and royalty costs.

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George Fisher ProjectLongitudinal Section
Looking West
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Major Projects
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Growth Capital Expenditure has peaked
Year ending 30 June
Growth capital expenditure for committed
projects only
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Funding MIMs Growth
AM
Includes sustaining and growth capital and
exploration.
Year ending 30 June
This chart does not show all net debt or
revenues from asset sales. It shows only
those amounts used to fund capital expenditure.
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Exploration

• Exploration now focussed on high potential
  copper-gold targets in Australia and a reduced
  number of countries - Argentina, Mexico, Central
  America and Brazil.
• Geographic synergies - strong emphasis on
  exploration near mines and infrastructure.
• Increased proportion of advanced projects.
• Yearly expenditure 20-25m.

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Outlook

• Continued focus on improving operating
  performance and unit cost reduction.
• Increasing product volumes at reducing unit
  costs.
• Annual capital expenditure reducing as new mine
  developments approach completion.
• Rate of capital spending in current December half
  similar to 1998/99 level.
• Cashflows from operations to fund capital
  expenditure.
• Surplus cashflow to pay down debt.
• Seeking growth opportunities and acquisitions
  based on existing orebodies and infrastructure,
  and targeted exploration to provide large scale
  potentially long life and low cost
  mines.

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1998/99 Year in Review

• Improving performance through the year.
• Production increases.
• Improved cost competitiveness.
• Economic conditions affecting prices.
• Projects approaching completion.
• Debt and gearing edging lower.

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Improved June half 1999 Performance Despite
substantially weaker commodity prices received
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Cashflow MIMs Share (unaudited)
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Sensitivity to Price Movements
Change on US1 billion _at_ 66 to 67.
Excludes price and currency hedging.
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Important Notice
Forward looking information in the following
slides is indicative and provided as a guide to
future performance potential only. The
information is based upon reasonable estimates of
production performance, and commodity prices and
exchange rate assumptions as stated. Forecasts
are always subject to review and variations to
planned production levels and actual commodity
prices and exchange rates will affect performance.
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Operating Cashflow Scenarios Following Major New
Projects
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Gearing
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Price / Exchange Assumptions
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