27feb13phubiaminingproposal 2 by Workforce South Pacific

Phu Bia Mining: Reline Maintenance Services

TABLE OF CONTENTS SECTION 1: PBM CONTRACT SPECIFICATIONS ...................................................................... 1 1.1 COMPLIANT TERMS AND CONDITIONS .......................................................................................... 1 1.2 REQUIRED SCOPE OF SERVICES ...................................................................................................... 1 SECTION 2: WFSP RESPONSE ....................................................................................................... 2 2.1 GENERAL INFORMATION .................................................................................................................. 2 2.1.1 Company profile ............................................................................................................................ 2 2.1.2 Key contact: ..................................................................................................................................... 5 2.1.3 Background Experience ............................................................................................................. 6 2.2 CAPABILITY PROFILE ........................................................................................................................ 7 2.2.1 Capability Statement .................................................................................................................. 7 2.2.2 Service Proposition ...................................................................................................................... 7 2.2.3 Support Capability ....................................................................................................................... 9 2.2.4 Additional Services ................................................................................................................... 10 2.2.5 Innovation and Technology .................................................................................................. 10 2.3 RESOURCE MANAGEMENT ............................................................................................................. 11 2.3.1 Experience of Key Personnel ................................................................................................. 11 2.3.2 Personal Development ............................................................................................................. 13 2.3.3 Training and Education .......................................................................................................... 13 2.4 OPERATIONAL MANAGEMENT ...................................................................................................... 15 2.4.1 Planning ........................................................................................................................................ 15 2.4.2 Key Performance Indicators ................................................................................................. 16 SECTION 3: WSP SAFETY MANAGEMENT .............................................................................. 17 3.1 SAFETY MANAGEMENT PLAN ....................................................................................................... 17 WFSP – SAFETY MANAGEMENT PLAN ............................................................................................ 18 SECTION 4: WSP PRICING ........................................................................................................... 18 4.1 LABOR SCHEDULE OF RATES ......................................................................................................... 18 4.2 MOBILIZATION CHARGES ............................................................................................................... 19 4.3 PAYMENT TERMS ............................................................................................................................ 20 4.4 VOLUME DISCOUNTS & REBATES ................................................................................................. 20 4.5 CONTRACT PERIOD ......................................................................................................................... 20 4.6 VALUE IMPROVEMENTS ................................................................................................................. 21 ATTACHMENT A: CAPABILITY STATEMENT ........................................................................ 22 ATTACHMENT B: PRICING SCHEDULE ................................................................................. 331 ATTACHMENT C: LIST OF DOCUMENTS ................................................................................. 32

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

SECTION 1: PBM Contract Specifications 1.1

Compliant Terms and Conditions

The Phu Bia Mining Request for Proposal lists one of the principle guidelines for the reline maintenance services contract, the Standard Contract Terms. Workforce South Pacific (WFSP) is required to comply with the twenty one (21) terms and conditions listed at ATTACMENT B: Agreement for the Supply of Services and Goods. WFSP also acknowledges the eleven (11) supporting Phu Bia Mining policies and procedures listed at Attachment 1 of the Agreement for the Supply of Services and Goods, which are in reference to Clause 2.5 of the Standard Contract Terms. WSP has reviewed all listed terms and conditions including the policies and procedures and accepts each clause and policy document as being a normal industry requisite and fully agrees to its binding obligations. Briefly, notable obligations to the reline maintenance contract will apply to: § Two year term with option to extend § Fully warrant both contract and all resources utilized § Quality assurance provisions apply to both labor and equipment § Obligation to comply regards owners ruling policies/procedures § Payment terms one month post invoice receipt (within two months post job service completion) § No assignment without consent § Protection rights under owners financial guarantee § Insurance protection provisions § Protocols for contract performance

1.2

Required Scope of Services

The Phu Bia Mining Request for Proposal lists the other principle guideline for the reline maintenance services contract, the Scope of Services. Workforce South Pacific (WFSP) is required to carry out its contract in accordance with the specifications set out in Section 2: Scope of Services. WFSP is also required to integrate its reline maintenance service competencies with the contract scope of services, through the development of a detailed statement of capabilities. WFSP has reviewed all listed scope of service specifications and accepts each item as being a normal industry requisite and agrees to the binding obligations. Briefly, notable contract service specifications include: § Staged program over two sites per grinding circuit § Quality assurance provisions for labor and services § Resource management assurance both labor and equipment § Owners assistance provisions for mobilization and operations aspects § Full disclosure on costs § Performance based contract with warranty assurance § Hierarchy of obligations for safety management

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

SECTION 2: WFSP Response 2.1

General Information

2.1.1

Company profile

Workforce South Pacific Limited (WFSP) is a privately owned company established in 2010 by Directors Nigel Marshall and Ken Yardley and is fully nationalized and registered in Papua New Guinea (PNG). WFSP affiliate companies: Company name Tax file Company address Equity Shareholders number share Workforce South Company No. 3 Kayop Street, 50% Nigel Marshall Pacific Limited no. 1-‐78584 Tabubil, 50% Ken Yardley Western Province, Papua New Guinea Western TC 54399 Portion 56, 26% Frank Neobia International Oil and Albert Street, 25% Ronnie Luiya Gas Limited Kiunga, 49% Workforce South Western Province, Pacific Ltd Papua New Guinea Workforce Group of Company Section 42, 50% South Pacific Companies Limited no. 1-‐85496 Allotment 44 Meara Place, Workforce Angau Drive, Limited Boroko-‐ NCD, 50% Workforce Pacific Papua New Guinea JV Limited Workforce Pacific JV TC 53293 No. 3 Kayop Street, 24% Nigel Marshall Limited Tabubil, 25% Ken Yardley Western Province, 51% Andrew Yokim Papua New Guinea South Pacific TC 54911 Ground Floor, 50% Nigel Marshall Workforce Limited First Heritage Centre, 50% Ken Yardley Waigani Drive, Waigani-‐ NCD, Papua New Guinea

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Phu Bia Mining: Reline Maintenance Services

WFSP affiliate companies:

50% Nigel Marsall 50% Ken Yardely

Workforce South PaciYic Limited

Workforce Group of Companies Limited

Workforce PaciYic JV Limited

50% Workforce South PaciYic Limited

24% Nigel Marshall

50% Workforce PaciYic JV Limited

25% Ken Yardley

51% Andrew Yokim

South PaciYic Workforce Limited

Western International Oli & GasLimited

50% Nigel Marsall 50% Ken Yardely

26% Frank Neobia

49% Workforce South PaciYic Limited

25% Ron Luiya The company has operated on a global basis having performed reline maintenance servicing assignments in Australia, South Africa and most recently in Laos and is expanding to accommodate future mining clients throughout the Asia/Pacific region. WFSP has market dominance in its core territory of operations in Papua New Guinea (PNG), currently providing reline maintenance contracts to OK Tedi Mining, Porgera JV and Lihir Gold and fixed plant maintenance only for Hidden Valley Mine JV,. WFSP provides specialist relining maintenance services for Sag Mills and Ball Mills along with crusher and apron feeder rebuilds. The company also provides maintenance and servicing on a wide range of fixed plant services such as pump change outs and repairs, valve change outs and structural repairs. WFSP provides rubber relining and re-‐coating on all other high wear process plant including flotation tanks and structures.

As a specialist relining maintenance contractor WFSP has been instrumental in creating training alliances with its principle client OK Tedi Mining Limited (OTML) in PNG. In partnership with OTML, WFSP participates in the delivery of the Relining Training Program designed specifically to train the PNG workforce members. The company has worked closely with the OTML Mill Maintenance in designing a replica section of a SAG Mill in an allocated area together with a RME Liner Handler as to simulate a

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

reline maintenance operation. WFSP has also been instrumental in developing the Relining Training Program schedule theory and practical exercises which will be implemented for the program. WFSP employs a large and industry-‐skilled workforce with most maintenance workers having a minimum of 5 years mining industry experience and mill relining operations in particular. Most of the workforce supervisors have an average of 10 years mining industry experience. The company workforce is comprised of both technical and trades skills in heavy industry including project managers, boilermakers, fitters, mobile and fixed plant operators. All WFSP reline work crews have undergone site specific induction and process specific training experience in the safe and effective use and maintenance of all reline related tools & equipment including liner handlers. WFSP currently provides reline maintenance services to three major mining clients in PNG including OTML, Porgera Joint Venture (PJV), Lihir Gold Limited (LGL) and fixed plant maintenance services to Morobe Mining Joint Venture (MMJV). General scope of services includes: • Undertake scheduled shutdown SAG and Ball relines • Attend emergency breakdowns on mills due to component failure • General fixed plant maintenance through tradesmen/mechanical, fitters and boilermakers • Supply operators for crane handling operations • Regrind mill girth gear reversal work and change out • Mill feed conveyor repairs • Crusher maintenance • Apron feeder maintenance OTML (owner/operator) located in Western Province. This service contract is ongoing and involves the relining of 2 Sag Mill, 4 Ball Mills and 3 Regrind mills. OTML is our largest client and we have an established reline maintenance contract relationship built up through the Director Nigel Marshall over four years. WFSP performs on average three reline services per month utilizing 4 supervisors (Australian) and 16 crew members (PNG). LGL located in New Ireland Province and operated by Newcrest Mining Limited of Australia. This service contract is ongoing and involves the relining of three Sag Mill and three Ball Mill. At the moment the grinding circuit is being upgraded to increase number of mills and this is expected to increase the quarterly reline services from one to three. WFSP performs monthly reline services utilizing 4 Expat supervisors (Australian) and 16 National (PNG) crew members. PJV located in Enga Province and operated by Barrick (Nuigini) Limited. This service contract is ongoing and involves the relining of one Sag Mill and one Ball Mill at a time out of an assembly of 2 Sag Mills and 3 Ball Mills. WFSP performs monthly reline services utilizing 4 Expat supervisors (Australian) and 16 National (PNG) crew members. MMJV located in Morobe Province and operated by Harmony Gold Limited (South Africa) and Newcrest PNG 1 Limited. This service contract is ongoing and involves the fixed plant maintenance and heavy plant hire operators utilizing 24 PNG full time crew.

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

WFSP Mining Operator Client PNG

OK Tedi Mine PNG

Lhir Mine PNG

WFSP -‐ Clients

Porgera Mine PNG

Hidden Valley Mine PNG

Client references: Client Person Contact Email OK Tedi Mining Ltd Nicholas P yke -‐ Manager-‐Mill P: +675 6495210 Nick.Pyke@oktedi.com Grinding OK Tedi Mining Ltd John P arker -‐ T eam L eader – P: +675 6493506 John.Parker@oktedi.com Mill Maintenance Porgera Mine – Mark Fleay-‐ Mill FoRMEan – P: +675 5478012 mfleay@Barrick.com (Barricks Png) Ltd Mill G rinding Morobe Mining Joint Dave Wano -‐ Maintenance P: +675 472 5100 david.wano@morobejv.com Venture Ltd Superintendent Lihir Gold Ltd Chris P ortelli-‐ P rocess P: +675 986 5571 chris.portelli@newcrest.com. Coordinator au

2.1.2

Key contact:

WFSP mine operator contacts: Company contact Phone number Nigel Marshall +675 323 2299 (Director) (PNG)

Mobile number Email address +61 423 772 832 nigel@spworkforce.com.au (Australia) +675 73 042 169 (PNG)

Fax number +675 323 7072 (PNG)

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

2.1.3

Background Experience

WFSP has undertaken recent client assignments in South-‐East Asia including Laos where it currently provides assignments to Phu Bia Mining Limited (PBM). In November 2012 WFSP assisted in managing a shutdown operation through providing supervisors on site. In January 2013 the company was engaged by PBM to supply 8 supervisors (PNG) to oversee numerous scheduled maintenance jobs throughout the plant including the rebuilds on their Crusher Apron Feeder & Reclaim Apron Feeder 1. We supplied supervisors (Australian and PNG) and reline crews (PNG) ongoing basis commencing December 2011 to the PBM in Laos. Contract is to undertake all fixed plant mechanical scheduled shut down maintenance as follows: • Allocate WFSP teams to supervise the other contractor teams from Laos, Thailand and Vietnam -‐ Contractors were responsible for change out and servicing of all apron feeders, crushers, sump pumps, valves, cyclones and all other related tasks • Under consultations with maintenance planners, managed the scope, oversaw the tool preparations, allocating contract crews into day/night shift and allocating tasks • In consultations with owners’ safety management, ensure the effective maintenance performances in accordance with safety management procedures Reline Maintenance Contracts: Mill Type (PNG mines only) Description of Operations SAG 1 9.7m x 4.2m – (Svedala) OK Tedi Mining Limited (owner/operator) located in SAG 2 9.7m x 4.2 – (Koppers) Western Province-‐PNG. Ball 1A 8.8m x 5m – (Koppers) • Carry out complete relining Ball !B 8.8m x 5m – (Koppers) • Carry out complete maintenance and rebuilding of Ball 2A 8.8m x 5m – (Koppers) apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department SAG 1 8.5 x 3.7 (Fuller) Porgera Joint Venture Limited (owner) located in SAG 2 8.5 x 3.7 (Fuller) Western Province-‐PNG. Ball 1 5 x 8 (Metso) • Carry out complete relining Ball 2 5 x 8 (Metso) • Carry out complete maintenance and rebuilding of Ball 3 5 x 8 (Metso) apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department • Supply crews for autoclave shutdowns SAG 1 8.5 x 4.3 (FDS Smith) Lihir Gold Limited (owner) located in New Ireland SAG 2 8.5 x 4.3 (FDS Smith) Province-‐PNG. SAG 3 8.5 x 4.3 (FDS Smith) • Carry out complete relining SAG 4 8.5 x 4.3 (FDS Smith) Ball 1 5.4 x 9.75 (FDS Smith) Ball 2 5.4 x 9.75 (FDS Smith) Ball 3 5.4 x 9.75 (FDS Smith)

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

2.2

Capability Profile

2.2.1

Capability Statement

A detailed company capability statement that aligns our strengths and skills to the contract scope specifications appears at ATTACHMENT A.

2.2.2

Service Proposition

Workforce South Pacific Ltd (WFSP) has been supplying reline maintenance services to three large-‐ scale mining operations in Papua New Guinea (PNG) since 2010. We are expanding our reline crews and expertise to accommodate future mining clients throughout PNG, whilst still maintaining the safest, highest quality service as per Australian standards. Our reline workforce is comprised of a site management team of 20 supervisors (Australian) and 70 reline crews (PNG). In addition we have around 200 tradesmen (PNG) that provide fixed plant maintenance services for our mining operators predominantly. WFSP has the expert capability built over time and in a challenging environment in PNG managing resources both administratively and on site operations. In combining this service with our competitive rates we are able to offer our clients a more cost effective solution to the relining of their grinding mills. We employ only highly skilled and experienced reline supervisors that have the capabilities to lead and manage our crews. Our advantage is that all our supervisors have been working together for several years throughout PNG alongside our crews in the reline industry. WFSP currently provides reline maintenance services to its three major PNG mining clients and fixed plant maintenance for one of its PNG mine operators (full list of contracts undertaken at Attachment A) including: OK Tedi Mining Limited (OTML) (owner/operator) located in Western Province and is one of the largest gold producers in the world. This service contract is ongoing and involves the relining of two Sag Mill and 4 Ball Mills and 3 Regrind mills. OTML lies 2 hours flight from Port Moresby and is situated in the Star mountain ranges of the Western Province of PNG. OTML is our largest client and we have an established reline maintenance contract relationship built up through the Director Nigel Marshall over four years. WFSP supplies full time fixed plant maintenance crews to OTML Mill Maintenance department and performs on average one reline services per month utilizing 4 supervisors (Australian) and 16 crew members (PNG). The WFSP operations office in Port Moresby coordinates all resourcing and mobilizations to site for the crews and have been doing this successfully for over two years.

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

Lihir Gold Limited (LGL) located in New Ireland Province of PNG and has one of the largest gold deposits in the world. The mine site lies around 900 km’s from Port Moresby and owned by Newcrest Mining Limited of Australia. This service contract is ongoing and involves the relining of three Sag Mills and three Ball Mills. At the moment the grinding circuit is being upgraded to increase the number of mills and this is expected to increase the reline services from one per quarter to one per month. WFSP performs monthly reline services utilizing 6 supervisors (Australian) and 14 crew members (PNG). The WFSP operations office in Port Moresby coordinates all resourcing and mobilizations to site for the crews. Porgera Joint Venture Limited (PJVL) located in Enga Province of PNG and lies at an altitude around 2,700m and 2 hours flight from Port Moresby. The mine is one of the top ten gold producing mines and operated by Barrick (Nuigini) Limited. The mine is also the second largest mine in PNG. This service contract is ongoing and involves the relining of an assembly of 2 Sag Mills and 3 Ball Mills. WFSP performs monthly reline services utilizing 4 supervisors (Australian) and 16 crew members (PNG). The WFSP operations office in Port Moresby coordinates all resourcing and mobilizations to site for the crews. Morobe Mine Joint Venture Limited (MMJV) located in Morobe Province of PNG and is 90 km’s from Lae the second largest city of PNG. The mine is operated by Consolidated Goldfields Limited and Newcrest PNG 1 Limited and expected to produce 250K gold annually. This service contract is ongoing and involves the fixed plant maintenance and heavy plant operators utilizing 24 National crew.

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

Phu Bia Mining (PBM) located in Laos is 22 hours total travel time from Port Moresby, which we mobilized to site at the Phu Kham mine five times during 2011-‐2012. In November 2012 WFSP assisted in managing a shutdown operation through providing a supervisor on site. WFSP assisted in managing a shutdown operation through providing supervisors on site. In January 2013 the company was engaged by PBM to supply 8 supervisors (PNG) to oversee numerous scheduled maintenance jobs throughout the plant including the rebuilds on their Crusher Apron Feeder & Reclaim Apron Feeder 1.

2.2.3

Support Capability

WFSP manages the mobilization and logistical operations centrally through its Port Moresby office via a resources management system and Gantt chart developments. Crews for current and planned reline maintenance contracts are scheduled using our resources management system for each mine site. The management teams plan weekly for their mobilization operations and liaise with the administration teams to process resourcing allocations and times directly in the system. This provides WFSP with the capability to advance plan for all their client contract commitments and adequately schedule their crews per site, durations and enables the advance capabilities for logistical arrangements. 1. An example where the teams were successful in managing a rapid response mobilization from one site to another mine operation in Papua New Guinea occurred during November/December 2012. The Lihir MOPU project for upgrades to the grinding circuit, required an emergency shutdown due to commissioning delays for the motors. WFSP had not planned for this event and the administration and site operations teams collaborated per standard operating procedures, to arrange the rapid mobilization of 4 supervisors (Australian) and 17 crew members (PNG). The administration operations teams re-‐scheduled the reline team from OK Tedi (OTML) mine site located 2 hours flight away, to Port Moresby in transit for three days waiting on the Lihir commissioning teams to rectify issues. The Port Moresby teams then managed the transfer and logistical processes to enable the reline crew to mobilize to Lihir mine site a two and half hour flight from Port Moresby. The reline crew mobilized to site at Lihir, undertook induction processes and were able to perform shutdown services. 2. During September 2012 due to grate liner failure in SAG 2 at the Porgera mine site, we required to mobilize a full crew of 6 supervisors and 14 reliners to that site. The supervisors had be mobilized from Cairns, Australia and the reline crews had to be mobilized from various points in PNG to Port Moresby. The administration teams managed the mobilization and logistics arrangements in coordination with our client owners at Porgera site. Results was that within 18 hours all our crews and supervisors successfully mobilized to site and the owner prepared the site for us in advance. Our crews then commenced on site inductions and started the reline maintenance for the night shift crews and did a

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

complete discharge and grate change out. The owner commended our quick response and successful job completion. Reference: Company 1. Lihir Gold Limited

Name Placido Graca

2. Porgera Joint Wakia Kiyo Venture Limited

Position Package Manager (Cruising/Grinding Reclaim) Wear / Reline Engineer-‐ Processing

Contact M +675 72154297

Email Placido.Graca@newcrest.com.au

P +675 5443002

wkiyo@barrick.com

2.2.4

Additional Services

WFSP have trained operators in use of sand blasters and water blasting and regularly send crews of 1 supervisor (Australian) and 6 crew (PNG) to OTML. We also have the Director Nigel Marshall with over eight years’ experience with carrying out and supervising rubber lining maintenance tasks. We have also established a strategic partnership with JBI Belt and Rubber Lines Limited (PNG), to deliver training to our lining crews. We have conducted rubber lining maintenance services for OTML on 20 occasions and we are expected to begin same for Porgera and Lihir mine sites. The rubber lining processes we undertake includes: • Water blast off existing rubber lining using 20,000psi water blaster (crews trained) • Sandblasting off the surface area to remove any glue • Apply chemlock undercoat primer • Using 5-‐6mm backing rubber cut to suit (using rubber cutting/Stanley knives) • Buff with sanding disc • Apply glue to primed area • Apply the cut to sized rubber with application rollers • Using filleting knives cutting holes for bolts Reference: Company Name Position Contact Email OK Tedi Mining John Team Leader – Mill P: +675 John.Parker@oktedi.com Ltd Parker Maintenance 6493506

2.2.5

Innovation and Technology

WFSP regularly is required to provide our client owners with a diverse range of innovative solutions to enable the task completion to be achieved within scope, time, cost and safety obligations. Below are some of these situations: 1. PBM Laos April 2012 – For the Feeder 2 rebuild our WFSP supervisor proposed another approach to the preparation and installation procedure, to avoid schedule and cost over runs. The supervisor Brett Hardwick was successful in continuing the rebuilding task whilst running the plant from Feeder #1 and continuing to inch Feeder #2. The plan was based on the installation of a monorail above the rear of the feeder upon which was mounted a 2 tonne pneumatic hoist. Although this wasn’t the fastest way of changing out the track chain/pans it was the option with the least variables and draws from our

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

earlier experiences in the rebuild of feeder #1. This solution also consumed the least amount of fabrication or require a large capacity hoist to winch the track chain/pans. This also provided a much safer option in regards to the chains being lifted onto the chute of feeder #1. March 2013 – WFSP has instigated a strategic alliance to create partnerships with key industry accredited training providers RME Mill Relining Systems (RME) and MTO Group (MTO) both of Australia. RME from Toowoomba, Australia is a specialist reline plant and machinery manufacturer of liner handlers, recoil hammers and feed chute transporters. The training alliance with RME is an initiative of WFSP in order to access expertise training for our reline programs and crews. This alliance provides both firms with complimentary advantages with RME gaining to access new market opportunities in PNG reline training and installations. MTO is a Cairns based accredited training firm that provides our crews with access to their heavy industry courses including OHS, plant operators and driving training. The alliance also provides MTO with market access to our mining client base of mining industry training needs.

Reference: Company Name Position 1. Phu Bia Patrick Electrical and Mechanical Mining Ltd Fargher Superintendent 2. MTO Group Ian Managing Director Pty Ltd McLeod

Contact P: +856 (0) 20 222 13970 M: +61 438 954 481

Email Patrick.fargher@PBM.panaust.com ian@industrytraining.org

2.3

Resource Management

2.3.1

Experience of Key Personnel

Most of our supervisors have had 5 to 10 years mining experience with most having Australian accredited trades and plant and equipment operator experience. All crews are fully competent with the operation and maintenance of all reline related tools and equipment with exception to liner handlers being operated by our Australian supervisors. All crews have continuously attended safety inductions and most reline crews have machinery operating accreditations and fixed plant maintenance experiences. All our supervisors have extensive mill relining experience gained in our client owner mining operations in PNG and some have provided supervisory management overseas including Laos and Africa. All our supervisors have been fully inducted into our client owner’s safety compliance training courses and some have undergone accredited line handler training with RME (Australia). WFSP Supervisor Team: Length of Supervisors Qualifications & Experience Service Director/Mining OHS / Line Handler/EWP/Forklift/OH Ken Yardley Crane/Reliner 2 years Director / Mining OHS /Line Handler/EWP/Forklift/OH Nigel Marshall Crane/Rigger/Dogger/Reliner/S1 S2 S3 Supervisor 2 years Line Handler/ Mining OHS /Forklift/EWP/Reliner/S1 S2 S3 Gerald Marshall Supervisor 2 years Allan Hunt S1 S2 S3 Supervisor / Mining OHS / Reliner/ Builder / Loader / 1.5 years John Hunter Mining OHS / Forklift / Reliner/S1 S2 S3 Supervisor 2 years Ian Crittle Mechanical Fitter / Mining OHS /Reliner 1 year Angus Black Reliner / Mining OHS /Forklift / Riggers /Doggers 2 years Marcell Muller Reliner / Mining OHS / Builder / Forklift 8 months JeRMEy Burnett Reliner / Mining OHS / Fitter/ Forklift/OH Crane/EWP 8 months

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

Supervisors Daniel Rosendahl Jorg Winkler Brian James Mollen Piesa Gordon A Graydon Kirkwood Hunt

Qualifications & Experience Reliner / Mining OHS / Line Handler/EWP/Forklift/OH Crane/Rigger/Dogger/Reliner/S1 S2 S3 Supervisor Reliner / Mining OHS / Tradesman Fitter / Forklift / OH Crane / Reliner / Mining OHS / Line Handler Operator / Forklift/OH Crane Reliner / Mining OHS / Line Handler Operator/ Forklift Reliner / Mining OHS/ Forklift Reliner / Mining OHS / Forklift/Rigger/Dogger

Length of Service 2 years 1 year 6 months 2 years 6 months 3 months

WFSP Reline Crews: Reliners Andrew Emil Dinbin Kawage Vincent Mara Kuni Harry Lax Siri Peter Wena Percy Sergio Vizoke Appo Obert Kionu Malcolm Amandus Daniel Dawana Karl Titi Geregl Koike Gordon A Graydon Kuni Harry Albert Stanley Thomas Figa Alberic Vatabu George Boe Roy Rawali David Ambrose Anthony J Penny Peter Yana Toua Matap Derrick Mara Willie Apa Francis Kapea Jelton Peter John Ken Bini Abipfogoim Steve Tili

Length of Service 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

2.3.2

Personal Development

Since inception of WFSP in November 2010 our workforce has been built up to a core team comprising an average 15 supervisors (Australian) and an average 50 reliners (PNG) for our reline maintenance operations. The coverage for our supervisors to reliners currently is around 1 supervisor for every 2 crew members. The ratio for our standard crew make up for reline maintenance assignments on site is 6 supervisors and 14 crew on average which enables optimized job management for the crews. To date over the two years of WFSP operations we have achieved a low rate on average of turnovers below 5% of the total workforce employed. This is a strong result for our industry where the nature of mill reline services are sequenced internally throughout the year and not full time basis. This turnover result has been predominantly with our PNG crew members who are on casual basis for employment. With our supervisor teams there has been relatively few turnover results as most of the team are professional reliners with long experience within this specialist area of skills. WFSP is actively promoting training and development of its reline maintenance crews and all reliners have undergone owner delivered inductions for safety, plant and equipment operating and we have placed some of our supervisors through the RME (Australia) specialist mill reline plant and equipment operating procedures. WFSP has secured two RTO companies which will provide our workforce with both specialized reline training advantages as well as broader skills improvement programs for line management, office and business processes as well as mining industry OHS. RME is an Australian engineering specialist and market leader in the design and manufacture of mill plant and equipment including line handlers, feed chute transporters, coilless hammers and more. MTO is an Australian and PNG recognized training delivery body that will service both our reline and administration teams with a broad range of industry and generic accredited course delivery. This will endure that WFSP will have a fully developed and accredited workforce across its entire business lines.

2.3.3

Training and Education

Mill Reline Training Capability WFSP has also incorporated in-‐house training of all PNG reline personnel that meets Australian standards with correct and safe operations of RME 750 / 1500 LRT Thunderbolts and all other specific tools used for relines, including safe handling procedures of mill components in and out of mill, including correct rigging of chains / slings for stripping and building in mills. We have been approached by OTML to establish a Reline Liner Handler (RME machine) training facility on site to ensure we can supply our national reline crews with the best possible training available, which will be a first for PNG. Curriculum / Theory In collaboration with OTML, WFSP has developed the training schedule theory and practical exercises that meets Australian standards which are implemented in the program. This program involves the training of our reline crew participants in the following:-‐ • RME Liner Handler • LRT pre-‐starts • Liner Handler installation and removal from mill • RME Liner Handler • LRT Safe Operating Procedures • Safe Rigging of liner components inside mill • All correct loading • Unloading with forklift reline operations • All correct communication inside and outside mill reline operations • Deeming a Mill Safe or Unsafe to carry out relines Reline Machinery Component

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

WFSP has partnered with key reline plant and equipment manufacturer RME from Toowoomba, Australia which will provide our reline crews with access to industry best practice training services and this will be delivered primarily at OTML on a quarterly basis. This agreement has been finalized between our two companies and this will be effective this month March 2013. In addition RME will be the accredited trainer for the Laos reline crews per the contract scope of services. The range of reliner plant and equipment covered through RME to our crews includes: • Feed chute transporters • Mill relining machines and handlers • Recoilless hammers • Hammer suspension and moil guides • Liner lifting tools • Associated equipment Reline Safety and Operator Training WFSP has partnered with MTO Group of Cairns, Australia and under this partnership will provide us with access to their heavy industry plant operator and safety training expertise. MTO provide accredited training courses to provide our crews with access to mining industry and safety management training for both our crews in PNG and Laos.

WFSP Training Approach

WFSP will deliver all related mill relining maintenance processes and operations in partnership with RME and MTO. We are a specialist reline contractor fully experienced in all aspects of the maintenance operations and have been undertaking this through our principle client OTML. Our training focus will provide PBM reliner crews with mill specific maintenance processes and procedures including: • Safe Handling and Operation of Reline Tooling • Correct Use of Lifting Chains and Slings • Safe Handling of Liner Components • Correct removal of Old Liner Components • Correct Installation of New Liner Components • Correct Communication, Call Signs For Crews WFSP will deliver mill relining training programs to PBM operators through our partnerships with RME and MTO with WFSP to provide the program across three aspects including reline handlers and machinery operations, OHS and non-‐reline specific plant operator training and ourselves to provide all additional mill reline maintenance procedures. Training will be staged over the two year services contract period with much of the coverage on reline specific machinery though RME delivered in situ using currently installed machinery in conjunction with some requirement for PBM crews to attend RME training facilities located in Toowoomba, Australia and with perhaps some content delivered through technology where possible. The OHS and plant and equipment operator accredited training through MTO would be predominantly delivered in situ where required with perhaps some content delivered through technology where possible.

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Phu Bia Mining: Reline Maintenance Services

WFSP Training Approach

Mill Relining Approach-‐PBM

WFSP: Safe Handling and Operation of Reline Tooling Correct Use of Lifting Chains and Slings Safe Handling of Liner Components Correct RMEoval of Old Liner Components Correct Installation of New Liner Components Correct Communication, Call Signs For Crews

MOT: Safety OfYicer Risk Assessment Job Safety Assessments Job Safety Observations Recoiless hammers Fit for Work Checklist Hammer suspension and moil Pre-‐Start Checklist guides Riggers, Doggers Liner lifting tools Forklifts, Cranes Associated equipment RME: Feed chute transporters Mill relining machines and handlers

Rubber Lining Training We have also established a strategic partnership with JBI Belt and Rubber Lines Limited (PNG), to deliver training to our lining crews. We have conducted rubber lining maintenance services for OTML on 20 occasions and we are expected to begin this also for Porgera and Lihir mine sites. The rubber lining processes we undertake includes:

• • • • • • • •

Water blast off existing rubber lining using 20,000psi water blaster (crews trained) Sandblasting off the surface area to remove any glue Apply chemlock undercoat primer Using 5-‐6mm backing rubber cut to suit (using rubber cutting/Stanley knives) Buff with sanding disc Apply glue to primed area Apply the cut to sized rubber with application rollers Using filleting knives cutting holes for bolts

2.4

Operational Management

2.4.1

Planning

WFSP adopts the industry standards for shut down operations and has been able to minimize total lost time for mill shutdowns through adequate shut down strategy. This includes project planning, optimized reline crews, training and supervisory management and communication. The baseline schedule is developed by the supervisor teams in consultations with the owners planning and mill maintenance teams, to develop baseline performance indicators for planned man hours, timelines to milestone progress and timelines to completion for the maintenance contract per mill and site. Technical specifications for mills provide the teams with the

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Phu Bia Mining: Reline Maintenance Services

basis for program development to include sequencing of work structures and tasks from which the teams can manage and monitor job performance and progress. WFSP teams in Port Moresby manage all mobilization of resources including plant and equipment (if required) to the site lay down and accommodation facilities. Supervisors conduct a complete program of pre-‐start checks including coordinating with the owner’s team for inductions and entry requirements, prior to mobilization to work site. During the reline the teams are managed by assigned supervisors who perform job assessments to monitor for proper procedures and quality assurance to task completions. Part of this process is to liaise ongoing basis with owners’ teams including mill maintenance and planning to update and review progress against the schedule and to co-‐ordinate updates and required reworks or scope changes (if required). Pre shutdown planning is undertaken in liaison with the owner’s mill maintenance to ensure they have adequately planned and resourced the job including: • Monitor the arrival of parts • Organization of the required parts and consumables • Ensure dedicated shutdown toolboxes adequately stocked • Review, update and or create a JSA for each job • Identify and organize or create associated permits • Monitor and report on working progress and job status The supervisors ensure the client shutdown team is kept constantly informed of the reline progress to minimize delays before, during and at the end of the shutdown. WFSP has broadened our crew’s skill base through targeted recruitment and allocation of multi skilled reliners with additional doggers, riggers and crane driving accreditations. This strategy enables our crews to minimize downtimes where these resources aren’t available or are delayed. The crew has pre-‐start meetings with owner teams and internally and the supervisors develop the crew lists and designates the scheduled tasks according to the team experience and qualifications. Training also is provided to our crews gain shutdown capable reliners and includes: • Pre shutdown training • Incident reporting • Fit for work • Risk management/JSA’s • Isolation, tag and lockout • Review lessons learnt from previous shutdowns • Confined space training

2.4.2

Key Performance Indicators (KPI)

WFSP implements industry standard KPI management processes and tools in all its reline maintenance contracts for mine operator clients in PNG. Broadly our quality performance management strategy is focused on our safety approach and performance on the job as monitored through the supervisors in liaison with owners teams. Our progress performance against the planned man-‐hours and milestone timelines is another key component, which is actively managed through the reline supervisors in liaison with owners team shutdown and mill maintenance units. Another core aspect for KPI management is the forward planning and suggested solutions to effectively undertake the task assignment within safety, time and cost mandates. Our performance management system and key operational guidelines includes: WFSP Safety Management Plan – The reline maintenance crews are managed for OHS compliance and reporting benefits in accordance with industry standards and as managed through the internal Safety Management Plan (SMP) guidelines. All our reline crews and supervisors undertake induction training when they join the company and undertake further owner operator delivered site specific OHS training before commencing on site. Crew supervisors then actively manage the OHS obligations when reline services are underway though consultation and liaison with the owners team OHS unit.

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Phu Bia Mining: Reline Maintenance Services

Job Safety Assessment – As an essential part to the SMP is the undertaking of a Job Safety Assessment (JSA) by the supervisors including identifying all reline potential hazards and the analysis of additional risks. This is a pre-‐contract commencement procedure and forms part of the planning procedures. Mill Reline Job Reports – This is a post reline maintenance assignment that is completed by the supervisors to discuss and highlight key safety outcomes including notifiable breaches and general incidents. Also included is a list of observed issues along with recommended improvements for the owners benefit. Log Books – An integral component to the KPI’s during reline maintenance services is the daily update of job log books undertaken by the supervisors. Key indicators for job success like timelines to task completions, safety standard guidelines, standard operating conditions, mill and associated infrastructure issues and any other operational challenges observed.

SECTION 3: WFSP Safety Management 3.1

Safety Management Plan

WFSP is a safety focused organization and adopts the governing mining safety statutory guidelines that apply to the industry in PNG including the PNG Mining Safety Act (!977) and complies fully with the industry adopted Australian standards the Work Health and Safety (WHS) Act and Regulations. WFSP has developed an industry standard Safety Management Plan (SMP) for its reline maintenance operations to ensure full compliance to site and industry operations. This SMP provides the strategy and key safety objectives which guides the effort at all times during reline maintenance. WFSP has developed a key Safety Management Plan (SMP) that provides our management strategy for health and safety risk compliance to all reline maintenance operations for the crews. Briefly the WFSP SMP provides the objectives for compliance including: • Each employee is accountable for their own safety. • No employee will be expected to perform work which places their health and safety at risk. • Ensure that the 6 Health and Safety leaders are entrenched within the operations and the way each individual area of works. • Demonstrating continuous improvement towards the goal of zero harm within reline operations. • Improving the effectiveness of OHS leadership at all levels within reline operations. • Ensuring the SMP is updated with all new OHS standards. • Maintaining all identified risks in the WFSP Risk Assessment Manual (RAM). • Ongoing focus on conducting of Job Safety Observations (JSO’s) at workplaces. • Implementation of all internal and external audit recommendations within identified timeframes. • Ensure Job Safety Analysis (JSA’s) are conducted for all reline maintenance tasks. • Ensure Standard Work Procedures (SWP’s) is developed and available for all routine tasks. WFSP has been very successful in its safety outcomes with nil incidents on its relines over two years and in excess of forty SAG and Ball Mill relines, which is an outstanding result given the challenges of the operating environment in PNG mining environment. All the crews are fully inducted and safety trained and we have formed an alliance with an established accredited training body in MTO, which gives us access to mining industry specific accredited training courses. This added capability provides

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WFSP with an Australian accredited RTO to partner with and ensures all our workforce both administration and operations are fully OHS compliant. WFSP List of OHS Documents: WFSP – SAFETY MANAGEMENT PLAN WFSP-‐ RISK ASSESSMENT MILL RELINES WFSP -‐ KEY PERFORMANCE INDICATORS WFSP -‐ INCIDENT REPORT FORM WFSP-‐ SWP AREA RELINE MILL WFSP-‐ SWP OPERATING FORKLIFT WFSP-‐ SWP OPERATE LRT RAMBO TOOL WFSP-‐ SWP MILL LINER HANDLER WFSP-‐ MANAGEMENT REVIEW

SECTION 4: WSP Pricing 4.1

Labor Schedule of Rates

A detailed schedule of rates that presents the makeup of both Charge Rates and separate Travel related rates for internal mobilization to Point Of Origin within Port Moresby, PNG and Cairns, Australia appears at ATTACHMENT B.

WFSP Rates schedule: Job Description List:

Unit of Measure

Wage Rate (US$)

Statutory Costs (US$)

Discretionary Costs (US$)

Total (inc. Margin 20%) (US$)

$830.00

$171.77

$164.85

$1,400.00

$830.00

$171.77

$164.85

$1,400.00

$771.00

$159.56

$153.35

$1,300.00

$711.00

$147.14

$141.65

$1,200.00

Australian Personnel Project Manager Reline Supervisor

HR HR

Reline HR Leading Hand Mill Reliner

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Phu Bia Mining: Reline Maintenance Services

Reline Safety Officer

Safety Co-‐ coordinator

Boiler & Fitter (Trades)

Trades Assistant

$711.00

$147.14

$141.65

$1,200.00

$711.00

$147.14

$141.65

$1,200.00

$711.00

$147.14

$141.65

$1,200.00

$652.00

$134.93

$130.14

$1,100.00

$325.00

$67.26

$66.38

$550.00

$295.00

$61.05

$60.53

$500.00

$236.00

$48.84

$49.02

$400.00

$295.00

$61.05

$60.53

$500.00

$236.00

$48.84

$49.02

$400.00

PNG Personnel

Reline HR Leading Hand Mill Reliner

Reline Safety Officer

Boiler & Fitter (Trades)

Trade Assistants

4.2

Mobilization Charges

Mobilization Requirements

Details

Proposed Mobilization Point of Origin Location

Australian crew: CAIRNS PNG crew: PORT MORESBY

Travel Rate as a Percentage of Charge Rate

75%

No. of Hours Proposed for travel allowance each way of travel per personnel

72 HRS ( 6 x days @12 Hrs.)

Estimated Cost of Flights return from Origin to Vientiane (per person) (based on cross rates-‐ 26 Feb’13-‐1 USD = 0.972371 AUD

Australian crew: US$3, 700 PNG crew: US$ 3, 085

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Phu Bia Mining: Reline Maintenance Services

4.3

Payment Terms

Terms 30 days following receipt of invoice 15 days following end of the month in which an invoice is received 21 days following receipt of invoice

Discount (%) 2% 5% 3.5%

4.4

Volume Discounts & Rebates

Terms Less than or equal to US$50,000 Greater than US$50,000 and less than or equal to US$100,000 Greater than US$100,00 and less than or equal to US$150,000 Greater than US$150,000 and less than or equal to US$200,000 Greater than US$200,000

Discount (%) 2% 3% 5% 6% 8%

4.5

Contract Period

Period 3 Years 4 Years 5 Years 7 Years 10 Years Other (Please Describe Below)

Extended Contract Period Further Discount (%) 3% 6% 9% 12% 15%

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Phu Bia Mining: Reline Maintenance Services

4.6

Value Improvements

WFSP has been successful in providing cost effective strategies to assist their owner clients with reducing shut down reline costs through the job assessment and risk analysis processes. Our supervisors are instrumental as the principle contractor on relines with managing all operational tasks, safety and risks and ultimately to deliver the maintenance services on scope, time and cost KPI’s. All our supervisors have extensive mining and reline experience and are able to provide owner teams with improvements and recommendations through job assessments, reporting and operational reviews, to make suggested cost reduction incentives to any aspect of the reline service. For example our relines have consistently lowered the average planned reline maintenance times by an average of 20% on every maintenance service. The company has also developed a cost leadership strategy to lower its labor costs and went though a complete restructuring of its reline crews composition. The company location in PNG enabled the company to significantly lower its reline labor costs through adopting an optimized team mix of majority PNG reliners and minimal Australian supervisors. We adopt this ratio combination on every job and this has significantly lowered our labor costs by around 30%. WFSP has also established a semi-‐permanent contract arrangement with OTML, PJV and MMJV to place our fixed plant maintenance crews on site for ongoing services through tradesmen, fitters and boilers. This has provided significant cost reductions to both our mobilization and labor costs through contract rates and reduced management costs.

SigniYicantly lowered averages

Cost reduction strategies Utilise lower cost labour in PNG Adopt mill strategy based on learing

EfYiciency strategies developed

Planned reline maintenance Timelines meet planned schedule Labour costs higher

Industry average performance

Reline Cost Reduction:

Cost efYicient services Lowered average reline times by 20% Lowered average costs by 30%

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Phu Bia Mining: Reline Maintenance Services

ATTACHMENT A: CAPABILITY STATEMENT COMPANY PROFILE

Workforce South Pacific Ltd (WFSP) is a registered Papua New Guinea (PNG) company, with our main office set up in Port Moresby giving us a central location to ensure that we have the solid foundation to support our ongoing operations within the mining industry and also close access to both domestic and international terminals to mobilize our reline crews throughout PNG and abroad. This has allowed WFSP to be able to supply a professional international reline service at the most competitive rates available on the market. WFSP main objective is to continue growing and recruiting the best personnel possible to keep achieving milestones within the reline industry. We take pride in supplying our clients with consistent outcomes to their reline operations by continuously maintaining their reline mills under time and cost thresh holds and with nil Lost Time Incidents (LTI’s). We are able to achieve this by ensuring our new recruits are adequately trained and competent prior to joining our mobile reline crews.

QUALIFIED WORKFORCE

WFSP is able to provide clients with cost effective solutions to the mill relining operations. We are able to achieve this by utilizing lower cost labor advantages in our PNG crews, along with optimized use of supervisory (Australian) leadership. All maintenance crews have a minimum 5 years’ experience in the relining and mining industry and with some supervisors over 10 years industry experience. All crews are fully competent with the operation and maintenance of all reline related tools and equipment with exception to liner handlers being operated by our foreign (Australian) supervisors. All crews have continuously attended safety inductions and most reline crews have machinery-‐operating accreditations with the PNG crews also having additional fixed plant maintenance experiences.

Technical and Trades

• • • • • • • •

Project Managers Site Supervisors Leading Hands Boilermakers Fitters Mobil Plant Operators Fixed Plant Operators Wear Materials crews

Safety Inducted

• • • •

General Safety Induction Confined Space Lock Out – Tag Out Working at Heights

Heavy Plant and Equipment

• • • •

Ticketed Forklift Operators Ticketed Overhead Crane Ticketed Elevated Work Platform Ticketed Crane Operators up to 200 ton

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Phu Bia Mining: Reline Maintenance Services

Fixed Plant Maintenance

• High pressure water blasters • Sandblasters • Rubber lining crews

MILL RELINE EXPERTISE

Overview WFSP has been supplying reline maintenance services to four large-‐ scale-‐mining operations in PNG since 2010. We are expanding our reline crews and expertise to accommodate future mining clients throughout PNG, whilst still maintaining the safest, highest quality service as per Australian standards. In combining this service with our competitive rates we are able to offer our clients a more cost effective solution to the relining of their grinding mills. We are able to achieve this by utilizing the many skilled PNG reline crews working for our company and minimizing the amount of expatriates we have on jobs. This is done by employing only highly experienced expatriate reline supervisors that have the capabilities to lead and manage our crews. Our advantage is that all our supervisors (Australian) have been working together for several years throughout PNG alongside National crews in the reline industry. We have been applying this work practice for OTML on all mill relines we have carried out for nearly one year now with exceptional results. We have proven that we can minimize downtime of our client’s mills significantly by utilizing our experience in forward planning and liaising with owner’s teams. This has provided operational benefits to our clients by reducing average downtime and associated costs. Reline approach WFSP incorporates industry standards in the management of its reline maintenance programs including safety management, planning and scheduling of work program, mill reline reporting, ongoing job assessments and meeting reviews. The baseline schedule is developed by the supervisor teams in consultations with the owners planning and mill maintenance teams, to develop baseline performance indicators for planned man-‐hours, timelines to milestone progress and timelines to completion for the maintenance contract per mill and site. Technical specifications for mills provide the teams with the basis for program development to include sequencing of work structures and tasks from which the teams can manage and monitor job performance and progress. WFSP teams in Port Moresby manage all mobilization of resources including plant and equipment (if required) to the site lay down and accommodation facilities. Supervisors conduct a complete program of pre-‐start checks including coordinating with the owner’s team for inductions and entry requirements, prior to mobilization to work site. During the reline the teams are managed by assigned supervisors through job assessments to monitor for proper procedures and quality assurance to task completions. Part of this process is to liaise ongoing basis with mill maintenance and planning teams from the owners operators, to update and review progress against the schedule and to co-‐ordintate updates and required reworks or scope changes (if required). Post job completion the supervisor teams manage the demobilsation process of the crews to home site and complete detailed job reports to assess performance and outcomes against KPI’s for safety, schedule and cost performances. Handover to owner’s teams including mill maintenance units are completed at this stage.

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Phu Bia Mining: Reline Maintenance Services

Client assignments OK Tedi Mining Ltd is the largest mine operating in PNG and the grinding circuit comprises SAG and ball mills with a throughput of 78mta daily. Ore concentrate consists of copper and gold. Mill reliner maintenance contracts undertaken include: • December 2010 – Change out of SAG broken liner bolts • January 2011 – Specialist reliners for SAG liner reline during shutdown • February 2011 – Technical specialist for discharge liner grates change out • February 2011-‐ Specialist reliner for major shutdown preparations • February 2011 -‐ Specialist reliner for SAG liner reline during shutdown • February 2011-‐ SAG shutdown preparations, SAG retorque and SAG breakdown • February 2011-‐Specialist reliners for SAG mill retorque and review liners operations • March 2011 -‐ Specialist reliners for Ball mill feed discharge ends • April 2011 -‐ Specialist reliners for SAG discharge end grate bolts change out • May 2011 -‐ Specialist reliners for Ball mill liner reline works • May 2011 -‐ Specialist reliners for Ball mill liner reline works • June 2011 – Labor for clean up of used shell lifter liners SAG mills • June 2011 – Labor to inspect polyurethane lining in rougher cell and poly spraying equipment • August 2011 – Labor hire for SAG mill liner works • August 2011 – Labor hire for SAG mill liner works • September 2011 – Reliners for shutdown to assist SAG mill liner works • September 2011 – Reliners for manning SAG feed end outer line change out • November 2011-‐ SAG major shutdown • December 2011 – Labor for SAG major shutdown works on apron feeder • December 2011 – Labor for SAG retorque to perform mill liner works • December 2011 – Labor for regrind mill 3D liner reline • December 2011 – Reliners for SAG major shutdowns • January 2012 – Reliners for SAG shutdown to assist with SAG mill liner works • February 2012 – Labor hire-‐ 4 trades assistants for SAG shut down • March 2012-‐ Labor hire x 2 Boilermakers for kiln rebricking • March 2012 – 3x fitters for regrind mill girth gear reversal work • March 2012 – 2 x boilermakers for lime kiln project • March 2012 – 4 x fitters SAG shutdown • March 2012 – 3 x CGN05 tradesmen for P01 drive replacement • March 2012 – Repair ventilation hood on hammer mill feed conveyor • March 2012 – 6 x supervisors, 14 x national reline tech for SAG • March 2012 – Girth gear reversal • May 2012 – 21x personnel for reline shutdown • May 2012 – 4 x Expats, 16 x National reliners SAG shutdown • June 2012 – Labor for SAG emergency grate change out • June 2012 – Labor 12 hour SAG shutdowns • June 2012 – SAG shut liner bolts change out • July 2012-‐ SAG D/E loiner change out shutdown • July 2012 – SAG apron feeder h/shaft closeout shutdown • September 2012 – SAG minor shut down • November 2012 – Reliners for SAG relines shutdown • November 2012 – Reline of regrind mill • December 2012 – 4 x Expat supervisors 16 x National reliners SAG shutdown • December 2012 – Reliners for SAG mill shutdown works • January 2013 –Complete reline

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Phu Bia Mining: Reline Maintenance Services

Porgera Joint Venture operated by Barrick (Nuigini) Limited is a gold mine with both above and under ground operations. The grinding circuit consists of 2 parallel SAG and 2 Ball mills. Mill reline maintenance contracts undertaken include: • April 2012 –Labor hire preventative maintenance works • April 2012 – Labor hire – installation of junction boxes concentrator upgrade • April 2012 – Autoclave internal inspections and repairs • May 2012 – Plant fitters – weir walls/vapor phase shutdown • May 2012 – Plant fitters – pase plant, batch plant and lime plant • July 2012 – Fixed plant fabrication -‐3 x boilermakers • September 2012 – Labor hire – installation of junction boxes-‐concentrator upgrade • September 2012 – Anawe plant mechanical – concentrator shutdown • September 2012 – SAG and Ball mills reline • November 2012 – Anawe shutdown • November 2012 – SAG mill and Ball mill reline • January 2013 – SAG mill and Ball mill reline Lihir Gold Limited is a gold mine operated by Newcrest Mining Limited. The grinding circuit consists of one Sag Mill and one Ball Mill with a capacity of 10.5-‐12mta. Mill reliner maintenance contracts undertaken include: • January 2012 – Lining of SAG and Ball mills for MOPU project • June 2012 – Reline and maintenance personnel • July 2012 – 6 x Expatriate supervisors, 16 x National crew for HGO SAG mill • July 2012 – 6 x Expatriate supervisors, 14 x National crew – relining SAG and Ball mills • July 2012 – 6x Expatriate, 10 x National crew – reline F/E mid lifters, F/E outer lifters, Shell lifters, D/E mid lifters, D/E outer grates, Shell lifters – SAG and Ball mills • July – 5 x Expatriate Supervisors, 6 x National crew – 12 discharge E/D, 12 x inner plates change out • October 2012 – 10 x National crew -‐ HGO SAG and Ball relines • November 2012 – 6 x Expatriate Supervisors, 14 x National crews – SAG mills reline • December 2012 – 6 x Expatriate Supervisors, 14 x National crews – relines SAG and Ball mills • January 2013 – 4 x Expatriate Supervisors, 10 x National crew – relines SAG and Ball mills • January 2013 – 6 x Expatriate Supervisors, 14 x National crews – relines SAG and Ball mills • January 2013 – 4 x Expatriate Supervisors, 10 x National crews – Re torque on MOPU project – SAG and Ball mills • January 2013 – 4 x Expatriate Supervisors, 10 x National crews – Torque – MOPU SAG mill Morobe Mining Joint Venture (MMJV) is a gold mine owned by Harmony Gold Mining Limited and Newcrest Mining Limited. The grinding circuit consists of one SAG mill with capacity of 4.2mta. • August 2012 – 35 x National tradesmen • August 2012 – 1 x Expatriate supervisor, 32 x National tradesmen • September 2012 – 1 x Supervisor, 32 x National tradesmen • September 2012 – 11 x National tradesmen • October 2012 – 10 x National Tradesmen – ongoing Mill maintenance • October 2012 – 1 x Expatriate supervisor • October 2012 – 20 x National tradesmen • November 2012 – 1 x National tradesman • November 2012 – 6 x National tradesmen • December 2012 – 2 x Expatriate supervisors, 40 x National tradesmen • December 2012 – 4 x National tradesmen • December 2012 – 1 x National tradesman • December 2012 – 6 x National tradesmen • December 2012 – 1 x National tradesman • December 2012 – 1 x National tradesman • January 2013 – 1 x National tradesman

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Phu Bia Mining: Reline Maintenance Services

January 2013 – 1 x National tradesman January 2013 – 8 x National tradesmen January 2013 – 2 x National tradesman January 2013 – 2 x National tradesmen January 2013 – 3 x National tradesmen January 2013 – 1 x National tradesman February 2013 – 4 x National tradesmen February 2013 – 3 x National for mill maintenance Client references: Client Person Contact Email OK Tedi Mining Ltd Nicholas Pyke -‐ Manager-‐Mill P: +675 6495210 Nick.Pyke@oktedi.com Grinding OK Tedi Mining Ltd John Parker -‐ Team Leader – P: +675 6493506 John.Parker@oktedi.com Mill Maintenance Porgera Mine – Barrick Mark Fleay-‐ Mill FoRMEan – P: +675 5478012 mfleay@Barrick.com (Nuigini) Limited Mill Grinding Morobe Mining Joint Dave Wano -‐ Maintenance P: +675 472 5100 david.wano@morobejv.com Venture Ltd Superintendent Lihir Gold Limited Chris Portelli-‐ Process P: +675 986 5571 chris.portelli@newcrest.com.au Coordinator • • • • • • • •

Administrative Controls To achieve this capability we have formed a labor hire business division to provide ready access to skilled trades and semi skilled talent pools. We are in the process of also turning this division into a fully accredited recruitment operation. SPWF is actively placing tradesmen from its labor hire division into PNG mining sites including OK Tedi, Lihir, Porgera and Hidden Valley. WFSP has the expert capability built over time and in a challenging environment in PNG managing resources both administratively and on site operations. WFSP has an established center of operations in Port Moresby managed by an operations manager and a team of business services staff. Also attached to this office is a full time business development manager and both these roles liaise with company senior management in conducting reline maintenance operations and trades assignments. Briefly the management of resources is conducted per the following: 1. Labor is recruited directly from the job markets (Australia – Supervisors and technical; Papua New Guinea – Skilled, semi-‐skilled and laborers) 2. Administration managers review the recruits applications (CV’s, licenses, trade accreditations) 3. Recruits move through the company administrative processes (policies/procedures, payroll details) 4. Administration teams manage the recruits ongoing basis (payroll, travel, accommodation) 5. Site based managers accept and coordinate resources once on site (safety inductions, operations management)

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Phu Bia Mining: Reline Maintenance Services

Operations Control Once mobilized to owner’s site the recruits are then moved through the operational management processes of WFSP. This involves systematic procedures with shared and or specific jurisdictions between WFSP and the mining operator. Broadly there are three areas of focus for managing schedule planning, crew resources and reline maintenance operations. Program planning WFSP adopts the industry standards for project planning and scheduling for managing scope of the reline contracts to time and cost constraints. Internally the operations team will base their planning on the contact scope, mill-‐specific reline specifications and mill drawings supplied from the mill maintenance or planning units. From this a baseline Gantt chart is developed to create and synchronize the individual work breakdown structure, tasks and milestones required to successfully complete the scope. The schedule also enables the integration of estimations for the effort in man-‐hours and the timelines and durations to complete program milestones. This Gantt chart then provides the reline supervisors with baseline schedule / program of work from which they coordinate task completion in liaison and consultation with owners teams including mill maintenance and project controls units. The schedule then informs the development of a control budget of costs to completion that allows the teams to create time phased budget profiles across the term of the maintenance period. The supervisor teams are then guided by both the baseline schedule and budget of works to manage the effort of the crews towards milestone completions. The crews then liaise with owner’s teams on a daily basis for planning and review meetings where reline maintenance operations are reviewed and outcomes inform the schedule management and update process. Crew resources The ongoing management of reline crews once mobilized to site is taken over by the workforce supervisors (Australians with some PNG). The supervisors are then responsible for coordinating all human resources and mobilization logistical requirement’s for their crews in liaison with the senior management and the administration operations teams based in Port Moresby, PNG. All payroll, accounts, travel and accommodation planning and all other HR and mobilization requirements are managed between the two teams (administration / site) on an ongoing basis. Reline maintenance WFSP site management teams control the entire process in consultations with the owners teams including safety management, mill maintenance and project controls. The detailed major components to the operations management procedures are outlined as follows: 1. Conduct pre-‐job meeting with client 2. Carry out site specific inductions (operating pass outs – forklift, OH cranes) 3. Full crews to carry out company and client safety packs 4. Transport all liner components from laydown yard to mill 5. Cross check liner parts list with liner components and fixing (bolts) 6. Color code different length bolts to suit liner components 7. Carry out pre-‐start checklist on all reline tooling and equipment

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Phu Bia Mining: Reline Maintenance Services

8. Liner handling/ LRT Thunderbolts / Forklifts /All reline tooling 9. Divide crews Dayshift / Nightshift (1x Shift Supervisor, 1 x Liner handler operator, 1 x Forklift operator, 7 x Reline techs) 10. Carry out client isolation procedures 11. Carry out reline a per clients Gantt chart 12. Up date performance progress charts to client daily (12 hr. shifts) 13. Up date log books by shift supervisor constantly 14. Conduct tool box meetings every shift change (Safety and downtime issues, job progression) 15. Complete reline task 16. Carry out 3600 inspection on mill to verify 100% completion before handing back mill to client 17. Carry out de-‐isolations as per client procedures 18. Conduct post job meeting with client (Sign off log books, Discuss safety issues, Downtime issues, All other reline issues 19. De-‐mobilize crews

SAFETY MANAGEMENT WFSP is a safety focused organization and adopts the governing mining safety statutory guidelines that apply to the industry in PNG including the PNG Mining Safety Act (1977) and complies fully with the industry adopted Australian standards the Work Health and Safety (WHS) Act and Regulations.

Safety Management Plan WFSP has developed a key Safety Management Plan (SMP) that provides our management strategy for health and safety risk compliance to all reline maintenance operations for the crews. Briefly the WFSP SMP provides the objectives for compliance including: • Each employee is accountable for their own safety. • No employee will be expected to perform work, which places their health and safety at risk. • Ensure that the 6 Health and Safety leaders are entrenched within the operations and the way each individual area of works. • Demonstrating continuous improvement towards the goal of zero harm within reline operations. • Improving the effectiveness of OHS leadership at all levels within reline operations. • Ensuring the SMP is updated with all new OHS standards. • Maintaining all identified risks in the WFSP Risk Assessment Manual. • Ongoing focus on conducting of Job Safety Observations (JSO’s) at workplaces. • Implementation of all internal and external audit recommendations within identified timeframes. • Ensure Job Safety Analysis (JSA’s) is conducted for all reline maintenance tasks.

Workforce South Pacific Limited -‐ PROPOSAL

Phu Bia Mining: Reline Maintenance Services

• Ensure Standard Work Procedures (SWP’s) is developed and available for all routine tasks.

Safety Pack WFSP implements its OHS obligations through its 6 safety supervisors (leaders) on site reline operations within the day/night shift allocations. All reline operations and crews comply with the following procedures in accordance with the SMP: • Risk Assessment – Ensure safety work environment for all crew attending reline operations on site Safe Work Procedures (SWP’s) – Ensure correct operations on all equipment and tooling • Job Safety Assessments (JSA’s) – Ensure all safe work practices are fully understood and followed • Take 5 (Job Safety Observations) -‐ Done prior to the job commencement and where/if job scope changes • Fit for Work Checklist – Breath testing of all reline crews prior to entering work site. Employees to fill out a checklist to match job criteria • Pre-‐Start Checklist – Carry out Pre-‐Start on all equipment to be used. Fill out and sign WFSP and client Pre-‐ Start Checklist forms • Tool Box Meetings – Discuss safety issues and incidents. Prevent/ avoid potential incidents and hazards. Create a safe working environment • Safety Officer – Constant monitoring of WFSP personnel and ensuring that all WFSP and clients safety protocols are adhered to at all times. Ensuring that WFSP can deliver and execute 100% safe outcome to all our service deliveries. Liaise with client safety department

RELINE TRAINING CAPABILITY

WFSP has also incorporated in-‐house training of all national reline personnel with correct and safe operations of RME 750 / 1500 LRT Thunderbolts and all other specific tools used for relines, including safe handling procedures of mill components in and out of mill, including correct rigging of chains / slings for stripping and building in mills. We have been approached by OK Tedi Mining Ltd (PNG) to establish a Reline Liner Handler (RME machine) training facility on site to ensure we can supply our national reline crews with the best possible training available, which will be a first for PNG. WFSP is proud to be part of a new Relining Training Program designed specifically to train PNG nationals in all aspects of relining. WFSP has been formed an alliance with its largest client owner, OTML Mill Maintenance unit in designing a replica section of a SAG Mill in an allocated area together with an RME Liner Handler to simulate a real reline maintenance operation. In collaboration with OTML, WFSP has developed the training schedule theory and practical exercises which are implemented in the program. This program involves the training of our reline crew participants in the following:-‐ • RME Liner Handler • LRT pre-‐starts • Liner Handler installation and removal from mill • RME Liner Handler • LRT Safe Operating Procedures • Safe Rigging of liner components inside mill • All correct loading

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Phu Bia Mining: Reline Maintenance Services

• Unloading with forklift reline operations • All correct communication inside and outside mill reline operations • Deeming a Mill Safe or Unsafe to carry out relines WFSP has partnered with key reline plant and equipment manufacturer and RME from Toowoomba, Australia which will provide our reline crews with access to industry best practice training services and equipment and this will be delivered primarily at OTML on a quarterly basis. This agreement has been finalized between our two companies and this will be effective this month March 2013. In addition RME will be the accredited trainer for the Laos reline crews per the contract scope of services. The range of reliner plant and equipment covered through RME to our crews includes: • Feed chute transporters • Mill relining machines and handlers • Recoilless hammers • Hammer suspension and moil guides • Liner lifting tools • Associated equipment In addition WFSP has secured another training partnership with MTO, a subsidiary of MTO Group of Australia. MTO under this partnership will provide us with access to their heavy industry and plant operator training expertise. MTO provide accredited training courses to provide our crews with access to mining industry and safety management training for both our crews in PNG and Laos.

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