Announcement - May 2014 Highlights Agreement Nyrstar has reached a binding agreement with Government to invest ca. AUD 514 million to redevelop the Port Pirie smelter into an advanced polymetallic processing and recovery facility. Creation The Nyrstar Port Pirie facility will be redeveloped into a central operation to support Nyrstar’s expanding industrial footprint which will assist strengthen and further diversify Nyrstar Group earnings. Environment and Community The redeveloped site will deliver step change reductions to lead in air and sulphur dioxide emissions leading to significant improvements in community health. Facility Life The redeveloped facility is expected to have an operating life in excess of 30 years and will feature state-of-the-art, proven technology currently installed at more than 25 sites globally. Timeline Government planning approvals have been granted allowing the construction phase to begin next year with anticipated commissioning in 2016. EXPERIENCE & KNOWLEDGE Redevelopment will be led by a dedicated General Manager, supported by a project team comprising of experienced and highly skilled internal and external resources. The industrial footprint, infrastructure and skilled workforce are already in place. Redevelopment delivers a fundamentally different business model for Port Pirie. The redeveloped operation will be capable of processing a wider range of high margin metal bearing feed materials. DELIVERING A SUSTAINABLE FUTURE Redevelopment has the ability to transform Port Pirie, providing certainty and confidence to the community and the wider region. Redevelopment ensures Nyrstar remains Port Pirie’s major employer, the most significant private sector contributor to the community and the region and a substantial contributor to the State’s economic output. KEY STAKEHOLDER SUPPORT Redevelopment has strong support from key stakeholders and the local community with a willingness to develop a collaborative solution. In 2013 Nyrstar received major development approval and regulatory certainty in relation to redevelopment. IMPROVED ENVIRONMENTAL PERFORMANCE The application of the new state-ofthe-art proven technology will deliver a range of environmental benefits. Announcement - May 2014 Proven Technology Redevelopment will replace the out dated sinter plant with a state-of-the-art oxygen enriched enclosed bath smelting furnace technology and a new sulphuric acid plant. Environmental Footprint The application of this technology has a range of environmental benefits which will deliver a significantly improved environmental fooprint through reduced emissions profile: • Step change reduction in airborne metal, dust and sulphur dioxide emissions and significant reduction in community blood lead levels • Reduced intermediate materials movements on site resulting in reduced on site dust generation and movement • Improved Blast Furnace performance • Improved hygiene conditions for smelter workers. 2013 Final Investment Case Completed Major Development Approval & Legislation Passed OUTLINE PROJECT TIMEFRAME Community Support Redevelopment delivers continued support for community exposure reduction programs. In parallel with the redevelopment project a new Targeted Lead Abatement Program (TLAP) will be implemented. TLAP has been developed to assess current and potential future community lead exposure reduction strategies and assess which are likely to have the greatest impact on reducing children’s blood lead levels. Nyrstar has committed up to AUD 3 million per annum for up to 10 years and a further AUD 5 million to accelerate the objectives of TLAP. The AUD 3 million is representative of Nyrstar previous financial commitments. The South Australian Government will commit approximately AUD 1.5 million per annum for up to 10 years. A joint Nyrstar and SA Government Committee has been formed to facilitate the implementation of TLAP. 2017 The Redevelopment General Manager is responsible for the project management and execution and will work collaboratively with the site Vice President Metals Refining who is responsible for the existing asset. There will be limited disruption to Smelter operations during the redevelopment. MAY 2014 Announcement MAY 2014 Appointment of the Engineering and Project Management Contractor 2014 www.portpirietransformation.com 2015 Redevelopment Timeline Construction Phase JUNE 2014 Contract awards to the Furnace, Acid Plant & Oxygen Plant suppliers New Plant Commissioned and Fully Operational by the end of 2016 AUGUST 2014 SEPTEMBER 2014 Construction of Demolition works temporary commencement on site accommodation camp AUGUST 2014 Workshop relocation on site *AUGUST 2014 Establishment of temporary project management and contractor offices & facilities on site 2016 *Dates are approximate