Dyno Nobel Explosivos Chile Successful Case InvestChile – CORFO

Objectives and Scope Share the experience of the participation of Dyno Nobel in Investment Attraction Program of CORFO, InvestChile.

Agenda Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

Agenda Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

Dyno Nobel - Origin Company with more than 150 years of history. Its origin dates back to the invention of dynamite and the detonator made by our founder Alfred Nobel. Alfred Nobel was the promoter of the Nobel Prizes each year since 1901 are awarded to people who have made outstanding contributions to society in the areas of Literature, Physics, Chemistry, Medicine, Economics and Peace.

Dyno Nobel – Recent History Dyno Nobel was purchased in 2008 by Incitec Pivot Limited (ASX – IPL) an ASX Top 50 company. Incitec Pivot is a chemical manufacturer supplying agricultural fertilizers and industrial chemicals for Australian and international markets. IPL Share Price (AU$) - XJO Source : www.asx.com.au

Dyno Nobel – Who Are We? Dyno Nobel is a leading supplier of industrial explosives and blasting services to the mining, quarrying, seismic and construction industries. Dyno Nobel is the market leader in North America – the largest explosives market in the world – and the second largest supplier in Australia – the third largest explosives market in the world.

Dyno Nobel – Where Are We? Development approval received Key supply contracts agreed Ammonia plant refurbishment completed and being relocated to Moranbah Construction of Ammonia plant foundations in progress All equipment for Nitric Acid plant now on order Construction camp built – 720 rooms Dyno Nobel has a leading position in the largest markets globally and has started to enter other high growth markets

Dyno Nobel – Our Products Explosives and Inition Systems Complete Shot & Blasting Service Blasting Engineering - continuous improvemen Development approval received Key supply contracts agreed Ammonia plant refurbishment completed and being relocated to Moranbah Construction of Ammonia plant foundations in progress All equipment for Nitric Acid plant now on order Construction camp built – 720 rooms Rock Fragmentation Consulting (Productivity, cost and safety improvement)

Dyno Nobel – Where Are We Going? Dyno Nobel is renowned for its excellent safety performance and as a provider of innovative explosive products and services, which together deliver groundbreaking performance for its customers.

Dyno Nobel – Our Resources Dyno Nobel employs more than 3,000 people. Dyno Nobel has 34 manufacturing facilities in Australia, Canada, the U.S., Indonesia, Mexico, South America, and Papua New Guinea. Dyno Nobel has the capacity to produce over 1 million tons of ammonium nitrate annually.

Agenda Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

Dyno Nobel – Austral Project Part of the strategic plan re-entry into high growth markets. South America is the fastest growing mining region in the next 8 years. Projected South American Metals Mining Investment (2009 – 2017) US$B Fuentes : CORFO, ABARE

Dyno Nobel – Austral Project The first major investment of Austral Project is the installation of a initiation system plant (detonators) by industrial explosives. Location and amounts investment of the plant conditional on: Regulations and incentives for foreign investment. Legislation on the control of explosives. Logistics and connectivity vs. target market. Availability of labor. Climatic conditions. ?

Dyno Nobel – Austral Project Investment ~ MUS $ 4 in the Region of Coquimbo Chile. Safety standards and quality control "outstanding." Manufacture of pyrotechnic detonators, 1 million und / year. First manufactures electronic detonators in LA: 500 000 und / year.

Dyno Nobel – Austral Project Investment Promotion Programme in High Technology Objective Support investment decisions in high-tech regions (associated with clusters, IT, Biotechnology, etc..). What is?: Co-financing is non-refundable pre-investment studies, training human resources, investment in fixed assets, lease property in the long term. Beneficiaries: Foreign company, a project of high technology, real investment minimum of $ 500,000.

Aplication Program for Promotion of Investment in High Technology Dyno Nobel – Austral Project Aplication Program for Promotion of Investment in High Technology Línea Cofinancia Todo Chile. Cofinanciamiento Estudios de Preinversión Estudios Arquitectonico Todo Chile” Subsidio a Estudios de Preinversión Tope US$60.000 (region) HT 2. Puesta en marcha Obtención de permisos HT 3. Formación de Recursos Humanos Formación de Recursos Humanos Hasta el 25% del sueldo bruto anual, con un tope máximo de US$ 5.000 por trabajador Hasta el 30% del sueldo bruto anual, con un tope máximo de US$ 25.000 por trabajador (P/E) HT 4 Inversión Activos Fijos Inmovilizados Inversión en Activos Fijos Inmovilizados realizada en proyecto – Equipo Especializado Máximo 40% de la inversión de activos fijos (Tope de US$ 2.000.000) 17

Aplication Program for Promotion of Investment in High Technology Dyno Nobel – Austral Project Aplication Program for Promotion of Investment in High Technology Línea Cofinancia HT 5. Arrendamiento de Inmuebles a Largo Plazo Contrato por propiedad de terceros Máximo 40% de la renta. (Tope de US$ 1.000.000). HT 6. Arrendamiento de Inmuebles de la Corporación Uso de inmuebles de propiedad de CORFO – N/A Descuento de la renta entre 1% y 100% sobre el valor de m2 a arrendar HT 7. Capacitación de alta especialización Capacitación por expertos no fácilmente disponibles en el mercado nacional – (USA & RSA Training) Conjunto de actividades que permitan identificar, capacitar y/o reclutar profesionales chilenos extranjeros de Alta Especialización. 50% del costo de un Programa de Capacitación, por una sola vez. Tope máximo de US$ 100.000.

Dyno Nobel – Austral Project Aplication Process September 2008 Contacted by investment promotion program providers Mining Industry December 2008 Participation in the Second Forum on Mining Suppliers February 2009 It’s reported within the company about the project in Latin America Agoust 2009 Localization studies begin November 2009 Application Program grants to high-tech

Dyno Nobel – Austral Project

Agenda Background Dyno Nobel Austral Project Dyno Nobel Conclusions and comments

Conclusions and comments Dyno Nobel Chile – Next Steps: Expand product portfolio from the set global. Expand scope of services incorporating Asia Pacific and North America Know – How.

Dyno Nobel Explosivos Chile Martin Pierola Commercial Manager Office: +56 2 2314558 – 2313542 | Mobile: +56 9 77664504 mailto: martin.pierola@am.dynonobel.com http://www.dynonobel.com