Maadens Role in Regional Development Engr Khalid Al

Ma’aden’s Role in Regional Development Engr. Khalid Al Mudaifer President and CEO Aluminium SIDF Forum - January 2015 Phosphate Gold Infrastructure www. maaden. com. sa Copper Ma’aden – Saudi Arabian Mining Company 1

We are building the “Third Pillar” of Saudi Industry Saudi Arabia‘s Industrial Development Oil and Gas Mining Est. 1934 Govt ownership 100% Est. 1997 Govt ownership 50% Ports Technology Communities Workforce Suppliers Est. 1976 Govt ownership 70% Power Transportation Consultancy Exploration Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa Petrochemicals Regulations Laboratories Contractors Downstream Financing 2

Ma’aden – A diversified group serving domestic & global markets Copper Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa 3

4 Ma’aden is one of the world’s fastest growing mining companies 2014* 2007 ▪ ▪ Revenues Employees Assets ▪ ▪ 4 gold mines Phosphate JV signed SAR 240 MM 800 SAR 6 bn 44 x 8 x 12 x 5 gold mines World scale Phosphate complex World scale Aluminum complex Led over SAR 100 billion investment SAR 11 MM 6, 500 SAR 74 bn * YTD Expected 2014 Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa

5 Ma’aden Builds and Operates Across the KSA Including Two New Industrial Cities Ma’aden headquarters GOLD MINES Wa’ad Al-Shamal Al Jalamid 5 gold mining facilities 2 mines under construction • 137 K Oz average annual production Ba’aitha Ras Al-Khair Dammam PHOSPHATE Phosphate mine – 11 mmt Riyadh Phosphate production – 3. 0 mmt ALUMINIUM Bauxite mine – 4 mmt Jeddah Aluminium production – 740 Kmt INDUSTRIAL MINERALS Production of caustic magnesia Magnesite mine Passenger Railway Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa Mineral Railway Phase 1 Phase 2 Kaoline & low grade bauxite

6 Ras Al Khair: “Arguably the most ambitious single phase industrial scheme ever conceived in the Middle East” MEED 23/12/14 Challenge: collaboration across many infrastructure stakeholders Project Studies (2005 -2010) • • Ma’aden led initial social and environment assessments Master planning 2005 Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa Plan & Build Facilities (2006 -2010) • • • Ma’aden led design and building & developed governance process Ma’aden, under the Ministry of Petroleum and Minerals, coordinated with: • Saudi Arabia Railway • Saudi Ports Authority • Saudi Electric Company • Saudi Aramco • Saudi Water Corporation • Public Investment Fund • Ministry of Transportation Total investments over SAR 120 bn Transfer Operations (2011…) • • Handover to RCJY Further SAR 10 bn investment 2014

7 Ras Al-Khair Mining Industrial City – Delivered • • Multi-commodity Industrial City Port access to key global markets Approx. SAR 35 bn to Saudi GDP Approx. 25, 000 direct & indirect jobs SWCC (Power) Village Aluminium Complex Saudi Port Authority SAR Phosphate Complex Future Expansions and Downstream Industries Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa

Wa’ad Al Shamal: The Largest Ever Industrial Development in the Interior of Saudi Arabia 8 Challenge: to maximise local social and economic benefit to remote northern communities • • Project Studies (2010 -2012) Ma’aden led an environmental and social impact assessment Master Planning Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa Regional Gaps Identified (2012) Local Communities • Highest unemployment in KSA • Low private sector involvement • Lack of English skills • Need for on job mining training Ma’aden Localization Strategy (2013) Local Communities Upgrade skills of local youth • Saudi Mining Polytechnic • Sponsor/operate 2 high schools • Mubadarah program (RCJY) Local Companies • Most local firms only 10 staff • Local suppliers lack info about market opportunities • No major industrialization Local Companies Enable local SMEs to build capacity • Local content requirements • Wa’ad Opportunities website • Community Develop. Centre

9 Wa’ad Al Shamal: Delivering Opportunities to a Remote Community Diversification and Jobs • 25, 000 direct and indirect jobs • Adds SAR 15 Bn to Saudi GDP • Over 20 downstream investment opportunities Saudi Mining Polytechnic • Partnership with TVTC • Arar facility for up to 500 students • Expanding to new facility in Wa’ad Al Shamal Community Development Centre • 12% of jobs from contractors locally filled • 10% of contract value to be spent locally • Industrial/commercial investment opportunities Ma’aden – Saudi Arabian Mining Company www. maaden. com. sa

For Ma’aden, Regional Development is About People Ma’aden – Saudi Arabian Mining Company 10

THANK YOU Aluminium SIDF Forum - January 2015 Phosphate Gold Infrastructure www. maaden. com. sa Copper Ma’aden – Saudi Arabian Mining Company 11