HARD IRON ORE PROJECTSBy: Mr. Luc Bélanger, Sr. Vice President Iron Ore

& Dr. Marcus Sztrimbely, VP Iron Ore Technology

GLOBAL MINING & METALLURGY

Brazil, November 2012

Introduction to SNC-Lavalin:Global M&MGlobal Iron Ore Experience

Taconite Type Iron Ore Projects in the Labrador Trough {Plan Nord}:Lac Otelnuk – Adriana Resourses & WISCOMont Wright Expansion – ArcelorMittalTaconite Project – New Millenium & Tata Steel

Taconite Type Iron Ore Project in Mauritania, West Africa:GUELB II - Société Nationale Industrielle et Minière

Closing CommentsQuestions

PRESENTATION OUTLINE

Our Mission:

Contributing to the success of our clients through value-added services and continuous improvementGlobal leader in project delivery with worldwide project experience

Ongoing projects in some 100 countries International network for over 50 yearsOffices across Canada and in over 40 countriesOver 33,500 employees worldwide

Presence in CanadaWe have over 12,000 employees in Canada with offices in all provinces and territories

Presence in BrazilWe have over 1,200 employees in Brazil with offices in Belo Horizonte (Formerly Minerconsult)

SNC-LAVALIN AT A GLANCE

GLOBAL DELIVERY

Legend

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OtherIron OreAluminum / Alumina

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Lima

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JakartaIron ore PDC

London Office

ON 6 CONTINENTS

SNC-LAVALIN IN LATIN AMERICA

Open pit mining / materials handling

DSO and concentration, magnetite, hematite, taconite (hard, low-grade ores)

Large materials handling systems design

Port facilities designMaterials handling

Marine works

Heavy rail systems design

Infrastructure design

DISTINCTIVE TECHNICAL CAPABILITIES

IN IRON ORE TECHNOLOGYPIT - TO - PORT

MAP OF CANADA

LabradorTrough

MINES & PROJECTS-QUEBEC PLAN NORD

RECENT IRON ORE PROJECTS

Client and Project Location

Project Name and Capacity

Year ofCompletion

Services Provided

ArcelorMittal, Mont-Wright Mont-Wright, Spirals replacement Ongoing EPCM

ArcelorMittal, Mont-WrightMont-Wright, Concentrator Expansion 8 Mtpa

Ongoing EPCM

ArcelorMittal, Mont-WrightMont-Wright, Mont-Reed & Fire Lake, 24 Mtpa expansion

Ongoing Scoping & PFS

New Millennium, Labrador Taconite, 21.5 Mtpa (concentrator) Ongoing FS

IOC, Labrador Genesis, 25 Mtpa (concentrator) 2011 OoM & Pre-PFS

ArcelorMittal, Mont-WrightMont-Wright, Concentrator Expansion 8 Mtpa

2010 FEL2 & FEL3

ArcelorMittal, Fire Lake Fire Lake, 8 Mtpa (concentrator) 2010 FEL2 & FEL3

QUEBEC & NEWFOUNDLAND

IRON ORE PROJECTS -TRENDSIRON ORE IS A “LOW PRICED COMMODITY”

DSO becoming scarce and in challenging locationsSeveral new projects deal with low grade ores i.e., Itabirite, BIF’s and Taconite all requiring:

Higher volumes to be minedExtensive, costly grinding (for liberation)Advanced beneficiation technologies

Some concentrates produced have a fine particle size (Taconites) better suited for pelletizing. Transportation of fine product problematic

Increased number projects involving pelletizing plants

Projects must have a large output capacity to be profitableLarge Infrastructure requirement

HARD IRON ORE PROJECTS CAPEX intensiveImportant infrastructure componentRemote locations - Extreme climatesLower recoverable Fe grade – Some exceptions (Mary River,

Kiruna, Tazadit, others)Beneficiation required

SOME CHARACTERISTICS

IRON ORE HARDNESS SCALE

Harder Oresof Interest

Source: USIMINAS Mineração

HARD ORES BENEFICIATION• Magnetite and Hematite ores relatively easily

amenable to concentration• Hematite fines require flotation• Requires grinding, energy• Produces tailings• Adds a CAPEX component to the project• Enables control on product quality• Permits economical extraction of lower grades

ores ( Profitability below 30% Fe ?)

• Commands high mining tonnages

IRON ORE PROJECTS -CAPEX INTENSITYCOST PER TON OF INSTALLED CAPACITY:

Mine and equipment 10 to 30 $/tBeneficiation plant 45 to 70 $/tPelletizing Plant 60 to 80 $/tInfrastructures 50 to 120 $/tTOTAL ~ 165 to 300 $/t

Lac Otelnuk – Adriana Resourses & WISCO

Mont Wright Expansion – ArcelorMittal

Taconite Project – New Millenium & Tata Steel

TACONITE ORE TYPE PROJECTS IN THE LABRADOR TROUGH {PLAN NORD}

LAC OTELNUK PROJECT

Legend

Blue = Current Projects

Red = Prospects

MONT-WRIGHT EXPANSION

TACONITE PROJECT

LAC OTELNUK

Project Status: Feasibility Study

Define alternative options for key aspects of the Project and select a single preferred optionThis work includes the selection of:

The overall magnitude of the Project; between 32 to 50 Mt of product per yearThe preferred location for the pelletizing plantThe preferred location of the new concentrator

LAC OTELNUK – DEPOSIT TYPES & MINERALIZATION

The Lac Otelnuk deposits are of the moderately metamorphosed or weathered type ore referred to as Taconite

Mineralization of interest on the Lac Otelnuk property is the iron formation that consists mainly of magnetite (Fe3O4) and hematite (Fe2O3) in bands alternating with chert or jasper

The iron mineralization from Lac Otelnuk can be processed with stage grinding and low intensity magnetic separation

Fine grinding at 80% finer than 53 microns is required to achieve a good concentrate of 68.5% Fe with silica content of approximately 4%

The weight recovery averaged around 30%, while the magnetite recovery was around 96%

NI 43-101 TECHNICAL REPORT ON THE PRELIMINARY ECONO MIC ASSESSMENT FOR 50 MTPY – 4/08/11

LAC OTELNUK PROJECTThe overall Project will consist of three distinct areas of responsibilities:

Mine and Facilities:MinePrimary crushingOverland conveyingProcessing plantsTailings disposalMine area infrastructure including workshops, accommodation, utilities and air strip

Rail:Rail car loading, Rail alignment (815 km) and Rail car unloading

Port Facilities:Stockpiling of product and reclaiming from stockpilesPort facilities including jetty, wharf and shiploading facilitiesPort area infrastructure

NI 43-101 TECHNICAL REPORT ON THE PRELIMINARY ECONO MIC ASSESSMENT FOR 50 MTPY – 4/08/11

CONCENTRATOR FLOW –CRUSHING AND GRINDING

NI 43-101 TECHNICAL REPORT ON THE PRELIMINARY ECONO MIC ASSESSMENT FOR 50 MTPY – 4/08/11

CONCENTRATOR FLOW –CONCENTRATING

NI 43-101 TECHNICAL REPORT ON THE PRELIMINARY ECONO MIC ASSESSMENT FOR 50 MTPY – 4/08/11

MONT-WRIGHT EXPANSION PROJECT

Project Status: Under Construction

Specular Hematite Ore

Hard & abrasive grinding

Autogenous grinding; relative coarse liberation 80% above 150 microns

Gravity separation process (Spirals); product below 75 microns difficult to recover

TACONITE PROJECT – NEW MILLENIUM CORPORATIONProject Status: Feasibility Study under completion

Involves two adjacent deposits: one in Newfoundland & Labrador and another in QuebecThe study will evaluate whether to develop one or both of the ore deposits to meet the design capacity of 22 MtpaThe principal components of each project scenario are:

Mine and infrastructure planning and designConcentrator near the depositElectric transmission line640 km Slurry pipeline, and Pellet plant and associated facilities

RECENT IRON ORE PROJECTS –AFRICAClient and Project Location

Project Name and Capacity

Year ofCompletion

ServicesProvided

SNIM, Mauritania Guelb II, 4 Mtpa (concentrator) Ongoing EPCM

ArcelorMittal, Liberia Nimba Western Range DSO, 4 Mtpa Ongoing EPCM

African Minerals, Sierra Leone Tonkolili, 20 Mtpa Ongoing PMC

Baobab Resources, Mozambique Tete Iron Ore Project Ongoing PFS

Sesa Goa (Vedanta), Liberia Western Cluster Iron Ore Project, 30 Mtpa Ongoing SS

ArcelorMittal, Liberia Nimba Western Range Iron Ore, 4 Mtpa 2011 EPCM

Rio Tinto, Guinea Simandou, 70 Mtpa 2010 PFS

GUELB II, MAURITANIASociété Nationale Industrielle et Minière (SNIM)

Project Status: Under constructionExpected completion date 2013

4.5 Mtpa concentrator including some local infrastructure

Open pit minePrimary crusher and stockpileDry SAG milling and screening at 1.6 mmDry magnetic separation to make BF grade concentrateHPGRs added as pebble crushersSpirals plant added to recover hematiteWet magnetic separation plant added to process fines

GUELB II, MAURITANIA –THE ORE

Banded Iron Formation - Magnetite + QuartzCoarse grained – liberation size > 400 micronsFine grained – liberation at < 400 micronsProject feed = 50/50 blend36% Fe, 96% as magnetiteProduct specification < 4.7% SiO2Limited amount of hematite – mined separately

GUELB II, MAURITANIA

CLOSING COMMENTS•Increasingly high CAPEX, OPEX•High output required to compensate low grades and p rice of commodity•‘Superproducts’ input for steelmaking•Succession Source for Iron Ore

THANK YOU FOR ATTENDING!