Abdoulaye Pona Chairman Chambre des Mines Economi CAL

Abdoulaye Pona Chairman, Chambre des Mines

Economi. CAL REASONS FOR ’investi. ING IN the MALI MINING SECTOR Mr. Abdoulaye PONA Président de la Chambre des Mines du Mali

Investing into Mali mining can be rewarding for an investor, but in order to do so , some fundamental steps & assessments are necessary to engage before taking the path of any investment. Let me guide you along some of those steps that are critical for any investment success in Mali Mining. I will underline three fundamental components in the choice making or rather in the investment making process that are making Mali Mining investment attractive: • Its wealth on the geological side • A supporting Institutional Network favoring Mining investment • A very peaceful social fabric that will reject imported conflicts Some of these key points will be highlighted while others will only be mentioned due the limited time allocated.

GEOLOGY – A Geological Wealth Mali has been blessed by the richness of its underground to a point that some have called it a « Geological scandal. A wide variety of mineral substances are found in Mali , to start with Gold which has already proven its case in Mali with already more of less 10 large mines in production , and presently few other in pre-development phases. In addition to this precious mineral, let me underline the existence of other minerals: PHOSPHATE LITHIUM ROCK SALT DOLOMIE BARYTINE COPPER DIAMOND This is without to mention the existence of few sedimentary basins favorable for Oil & Gas exploration. Aside of Gold and Limestone , we need to highlight that all other substances are waiting to be developed. This very fact gives additional reasons to take an interest in Mali and to consider other scopes of Mali mining investments. IRON ORE BAUXITE LIMESTONE MARBLE MAGANESE GYPSUM

MALI INSTITUTIONS : A supporting Institutional Network Favoring Mali Mining Investment Public Bodies At the institutional level we need to underline that there has been a permanent concern from Mali State, continuously through the various Republiques, to face the challenges of the Mining sector by Setting up the necessary Public Bodies that are supporting the main missions assigned to the Ministry of Mines. These are the following: • The National Directorate for Geology & Mines (DNMG). This Directorate oversees the implementation and promotes the Mining Policy elaborated by Government. It is the main Department acting under the Ministry of Mines • The Mineral Resources Development Programme (PDRM) It is an autonomous department and a Branch of DNGM acting as a Technical service provider with a Laboratory in the process of being modernized. Its mission is mainly aimed at delivering services of Exploration and at participating in the National Mining Inventory. Its contracted services are available to private Companies and to DNGM. • Mining concessions register. It is an online Data base accessible to any investor wishing to access basic information for the preparation of its mining projects in Mali. ( maps , concessions , environment) • The Statistic Planning Cell (C. P. S. ) This cell offers all Mali Mining production statistics • The Extractive Industries Transparency Initiative (EITI) Mali has signed in since 2007 with a Malian Steering Committee headed our the Minister of Mines ; This UK sponsored initiative, EITI aims at being a global standard designed to promote revenue transparency in the extractive sector. I seize this occasion to congratulate our Minister of Mines for having successfully organized on April 14 th & 15 th a Workshop Forum on this important subject. • The Authority for Petroleum Research in Mali (AUREP). This Department is dedicated to the promotion and development of petroleum & gas exploration and development. . • The Mali Chamber of Mines (C. M. M. ). Our Chamber of Mines acts as an interface between The State and the mining companies; it represents individuals and incorporated Companies of all categories involved in mining activities in Mali.

PRIVATE ENTITIES As a complement to the public Departments and Institutions acting daily to attract investments and to fine tune a favorable business environment we need to mention some private professional entities , each one in its own specialty, some as geological services, some as geoscientists , some as Mining investors consultants, … which all contribute to promote and to encourage the investment in Mali Mining. In particular I would indicate: • M’CONSULTING • EUREKAGEO • DSM CONSULTING • GEONEGOCE

The HUMAN FACTOR Finally , on a more sociological and human side, I would underline that Mali is host to a peace loving Malian people who has a tradition of Hospitality and who lives on a cherished land where Xenophobia is Traditionally banned. Xenophobia is even culturally banned between Malian tribes or ethnics, indeed those tribes have cemented themselves by interlinked cousin lineages which make those links remarkable and inextricable. This overall set of Human dimensions will make pleasant the stay to any investor heading for investigating Mali. In order to finish my presentation I will introduce a new mineral Opportunity which is abundant in Mali , already mentionned above : I mention the Malian BAUXITE. I have brought this mineral as a “project opportunity” in my suit case in order to substantiate my invitation “ Come and Invest in Mali”.

PLATEFORM OF THE MALIAN ECONOMY • According to Banque de France since 2013, the Trade Balance of WAEMU countries is composed of 4 main Export products • Lets point out that 2 of those products constitute the biggest exports of Mali, These are Gold and cotton. • Therefore the Mali economy, shows a good potential of growth if we refer to the registered performances in the mining sector during the last 10 years (2005 - 2015) with regards Gold and now with regards mineral diversification via the promotion of other industrial mineral substances such as phosphates, limestone and very soon bauxites planned to be transformed into Alumine on the sites of

Balance of Payments in the WAEMU (UEMOA) ZONE (in Billions of FCFA francs CFA (XOF) Year 2010 2011 2012 2013 Gold PETROLEUM cacao cotton 1 522, 50 1 824, 60 1 902, 20 326, 4 2 109, 30 1 934, 10 1 985, 40 365, 8 2 809, 40 2 311, 40 1 727, 80 579 2 340, 70 2 224, 10 1 636, 60 671, 6 Source: Banque de France - 2013

WHAT IS MALI MINERALs RESOURCES. SA ? Mali Minerals Resources. sa ou MMR. sa is a Mali based Company created as a result of a Joint Venture agreement signed between Central African and Exploration Company named CAMEC", which owned 80% of shares , and the company Mali Mining House. sa, which is a consortium of Mali National Operators holding 20% of shares. The setting up of this company and its activities are in line with the Mining Policy of

Mali Minerals Resources. SA Objectives & localisation of its CONCESSIONS and EXPLORATION PERMITS The main objectives of MMR. sa are exploration and exploitation of all mineral substances in general, while its specific objectifs, since its creation in February 2006, are the research of Bauxite on the permits of: Bouala (1053 km 2) located 25 km away from Dakar-Bamako Railway, Region of Koulikoro. Torolo (950 km 2), located 18 km away from Dakar-Bamako Railway, Region of Kayes. Faléa (510 km 2) located 300 km away from Dakar-Bamako Railway, Region of Kayes.

Railway from TOGUE to FALEA ≈150 km Faléa (Bauxite)

bauxite resources OF mali Minerals Resources. SA In 2009, JORC resources totalling more 439 millions of tons have been presented to the London Stock Exchange by CAMEC plc. For their FALEA permit. In 2012 and 2013, the technical and economical Feasibility study for the conversion of the bauxites of Faléa into alumina has been favorably obtained for the account of MALI MINERAL RESOURCES. sa by renowned Consultants within industry circles of bauxite, alumina and aluminium, respectively in Brasil and in Netherlands.

économi. CAL Potenti. Al OF resources cont. AINED IN mmr. sa PERMITS Permits Area Level of studies Bauxites value$ SGA value $ Faléa 510 Km 2 Prefeassibility Bauxite: 439 Mt SGA Alumina: 152 Mt 22 000 millions 38 000 millions Bouala 1 053 Km 2 Preliminary Bauxite: 720 Mt SGA Alumine: 252 Mt 36 000 millions 63 000 millions Torolo 950 Km 2 Preliminary Bauxite: 480 Mt SGA Alumine: 168 Mt 24 000 millions 42 000 millions Note : Average price (2014 -2015) used for 1 tonne of Bauxite US$ 50 Average price (2014 -2015) per tonne of SGA Alumina US$ 250

CONCLUSION The Mali has enormous mining potential that is not yet exploited. The state and actors work constantly to create the conditions needed to use the so-called potential. For potential investors, Mali is a good legislative and regulatory framework. The mining code and the investment code are constantly improving, as well as transportation and energy supply infrastructures.

Mali mineral resources OWNS IN: falea: 439 Mt; bouala: 720 mt; torolo: 480 mt OF bauxites WITH LESS than 2% Rsio 2 This is THE END OF MY Presentation MERCI & THANK YOU TO YOU ALL Londres Avril _2016 Mr. Abdoulaye PONA, Président Chambre des Mines du Mali 19