SMI: Investing in a Sustainable Future One of the largest undeveloped copper-gold deposits in Southeast Asia •Potential to become the largest mine in the Philippines and the fifth largest copper mine in the world •Capital investment for mine and related infrastructure in excess of USD5B •20+ years mine life

1. SMI: Investing in a Sustainable Future
Mining Philippines 2010
16 September 2010
Mark Williams
General Manager

2. The Tampakan
Copper-Gold Project
• One of the largest
undeveloped copper-gold
deposits in Southeast Asia
• Potential to become the
largest mine in the
Philippines and the fifth
largest copper mine in the
world
• Capital investment for mine
and related infrastructure in
excess of USD5B
• 20+ years mine life

3. Proposed Project Location

4. Current Progress: ESIA
Milestones 2009 2010 2011
Mine ESIA
Power station, port and
filter plant ESIA
Concentrate pipeline,
electricity transmission
system and access roads ESIA

5. GDP impact of the
Tampakan Copper-Gold Project
• Revenue stream to the Philippine economy is estimated at
USD40 billion over the life of the mine
• Potential to increase the country’s gross domestic product
(GDP) by an average of 1% per year for 25 years
1.6
Other (tax)
1.4
Other VA
1.2
% of Philippines GDP
Mining VA
1
Investment
0.8
0.6
0.4
0.2
0
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
Data Source: Centre for International Economics, July 2010 (Based on MPFS assumptions of April 2010)

6. Opportunities for Business
and Employment
• Potential to create 10,000 jobs Local
during the construction, and Wages
over 2,000 when the mine starts
to operate 7% Catering
4%
• USD5.8 billion in taxes and
19%
duties would be remitted to the Limestone
49%
Philippine government
• USD881 million to be spent on Contractors
goods and services -- in the 21%
Philippines alone -- during the
Maintenance
construction period and Others
• USD892 million to be spent on Breakdown of
Philippines goods and services economic opportunities
over the initial operations phase

7. Opportunities and
Challenges
• Passage of the South
Cotabato Environment Code
with a ban on open pit mining
methods in the province
remains a major concern
• SMI values the continuing
stakeholder support to SMI
and the Project
• RDC XII’s declaration of
Tampakan as flagship mining
project of the region
• South Cotabato IP Community
• Host communities

8. Opportunities and
Challenges
• Stakeholders’ better
understanding of the project
and how it may affect their lives
• Timely resolution on the
opposing views regarding open
pit mining methods through a
continuing open and transparent
engagement and dialogue with
all parties concerned
• Heightened communication and
engagement activities to enable
stakeholders arrive at an
informed decision on the Project

9. Foundations for Investment
• Public-Private Partnership Policy of the Government
• Six priority areas pinpointed by NEDA to spur growth
and development:
• housing
• mining
• electronics
• business process outsourcing
• tourism
• agri-business
• 2010-2014 Philippine Investments Promotion Plan (PIPP)
drawn up by the Department of Trade and Industry
focuses on eight key sectors included Mining

10. Moving Forward
• Submission of ESIA for
proposed mining operation
in 1H 2011
• Finalization of ESIAs for
supporting infrastructure
and facilities in 2H 2011
• Securing Free and Prior
Informed Consent from
host Indigenous
communities
• Community consultations
for resettlement

11. Our Commitment to
Sustainable Development
• We balance social, environmental and
economic considerations in how we manage
our business
• In 2009, SMI contributed more than PHP
1.3 billion to the Philippine economy and
invested more than PHP 79 million on
community development initiatives
• SMI publicly reports on its SD performance
• SD reports published annual and prepared
in accordance with the Global Reporting
Initiative (GRI) guidelines

13. Thank You