ࡱ> omp` dbjbjss 2f/]84P5h((000   M4O4O4O4O4O4O4$7hh9s49"  ""s4004^ % % %"00M4 %"M4 % %y240 0+GJ#e3M4 55u3<:#<: 4<:48  l %u$ )   s4s4$d   5""""d CONSOLIDATED MISSION REPORT MINES AND MONEY CONFERENCE LONDON 21 - 25 NOVEMBER 2005 SUMMARY From Monday 21 November through Thursday 25 November members of EU Pillar IV staff, including ICMM, KTA, and Trepca, as well as colleagues from PISG/MEM, attended the 3rd Annual Mines and Money conference in London. KTA paid the overall sponsorship fee and sponsored a major breakfast address by team members. KTAs sponsorship included a booth on the main floor of the conference. Staff gave out over 150 packages of information on Trepca and Kosovo to interested parties. These included CDs and booklets on Trepca, Kosovo minerals and mining law, the KTA and privatisation. 25 contacts were made with interested potential investors. (see below) DSRSG gave interviews to 5 major media outlets, including Reuters, the ECONOMIST, FT and Dow Jones Wire. MEM Minister Ceku delivered ministerial speech, was interviewed by 2 media outlets, and met with 5 interested investors. Overall, the delegation ensured that Kosovo made a major impact, and several mining companies have already scheduled initial visits into Kosovo. LOCATION AND TIMING The mission was centred on the Mines and Money Conference held at the Hilton Metropole Hotel London between 21st and 23rd November with an additional day for follow up meetings on 24th November. DESCRIPTION OF MISSION VENUE The Mines and Money Conference has become in the three years since its inception, the premier international mining investment conference in the world. Other major conferences in Canada, South Africa and Australia focus on other areas of the world or on different aspects of mining such as exploration. PURPOSE The purpose of the Mission was to identify potential investors that would be interested in investing in mining opportunities in Kosovo. The current high silver, lead and zinc prices, as well as the current interest in increased energy generation from coal, as well as the recent sale of Ferronikeli and the restart of Trepca operations created the optimum conditions for promoting mining opportunities in Kosovo. In addition, ICMM approved an exploration licence to one of the worlds largest copper mining companies in the week prior to the conference. METHODOLOGY The team used four different approaches to promote interest in mining opportunities in Kosovo: The team provided literature at a booth where geological maps of Kosovo and a PowerPoint presentation were on display. International staff with prior mining experience directly contacted associates through a process of networking throughout the conference, at the Gala Awards Ceremony and at the meeting organised by the Minsouth Branch of the Institute of Materials, Minerals and Mining on Thursday 24th. Kosovo hosted a working breakfast on 22nd November, at which presentations were given by the DSRSG, Head of Trepca, Head of ICMM, and Director of Privatisation for KTA. The Minister for Energy and Mining gave a presentation in the Ministers Forum on 23rd November with follow up meetings. RESULTS The first day of the conference was set aside by the organisers for presentations on Australian mining and exploration. This allowed the delegation to meet with their contacts during the course of the day and set up the booth, which was established as planned on the afternoon of Monday 21st November before the official opening of the conference in the evening. The booth was manned in rotation by delegate members and over 150 packages of information on Trepca and Kosovo were handed out to interested parties. These included CDs and booklets on Trepca, Kosovo minerals and mining law, the KTA and privatisation. The Kosovo Breakfast was very well attended with over fifty interested companies attending and many holding individual discussions following the breakfast. Presentations were given by Dr. Ruecker, Nikolai Burcham, Kirk Adams, Charles Carron Brown with closing remarks by Ahmet Shala. In addition to potential investors, meetings were held with thirteen service companies that may be of use to Trepca as it develops and increases production levels during 2006. Additional benefits included: Contacts with Reuters, Mining Communications Ltd, Mining Research, the Dow Jones Wire, and the ECONOMIST, all of whom intend to write article about Kosovo and Trepca. A meeting with PriceWaterhouseCoopers that allowed a discussion of their views on the process of Administration and Bankruptcy for Trepca. Meetings with lecturers and professors from the Camborne School of Mines and the Royal School of Mines in which the concept of improving the standard of teaching and qualifications at Kosovo mining technical colleges and universities was discussed. A major concern expressed by several speakers at the conference was a shortage of graduate engineers and geologists. Potentially Kosovo and the Balkans could help fill this gap since mining is not unpopular here as it is in Western Europe. Contacts with major mining and 3D-modelling producing software companies (e.g. Vulcan UK) regarding software needs and training KEY TREPCA ACCOMPLISHMENTS The purpose of the Mission for Trepca was to identify potential investors that would be interested in bidding to buy Trepca when it is put up for privatisation in 2006. It was considered that the current high silver, lead and zinc prices and the recent restart of operations created the optimum conditions for selling Trepca. This combined with the successful privatisation and the issuing of an exploration licence to one of the worlds largest copper mining companies in the week prior to the conference. Meetings and/or discussions were held with seventeen mining companies including Rio Tinto; of these companies nine expressed a serious interest in being involved in the privatisation of Trepca or other mining companies in Kosovo. It will now be essential that follow up letters and invitations to visit are issued to all interested parties. This is very encouraging and shows an even greater level of interest than was expected before the conference. Under normal circumstances, three or four serious expressions of interest would be an acceptable result for such a conference with far more contacts (perhaps 50-80) being required to obtain that level of interest. The companies that require follow up are: MDIL (UK) Ltd Union Resources Limited CBH Resources Limited Adastra Minerals Rio Tinto Sirius Exploration Plc Euromax Resources LTD. Exall Resources Limited TGS Limited Super Structure Services Phelps Dodge Exploration Corporation Cambridge Mineral Resources plc. European Goldfields Limited Platinum Mining Corporation of India Apex Minerals NL Horton International AIM Resources Since returning to Kosovo a visit was arranged for the owner and General Manager of MDIL(UK) on 9th and 10th December. The company was given an overview of Trepca and meetings were arranged with Mr Ruecker, Minister Ceku, KTA Privatisation and ICMM. The response was very positive and the company reaffirmed its interest in Trepca. Of great importance is that they are interested in all of the Trepca mines, concentrators, and smelters and possibly also the battery factories. The company has good working relationships with Mittal Steel, the largest steel producer in the world, which has a consumption of 155,000 tonnes a year of zinc and with Exide India, which produces 12 million batteries a year and has a demand for 140,000 tonnes a year of lead. In addition: A meeting was held with SGS Lakefield Research to discuss the possibility of their giving assistance to Trepca in improving operation and control of the Trepca concentrators. Very positive views on future lead and zinc prices and general metal market conditions were obtained through attending presentations. There appears to be a consensus that metal prices are on long term upward trend and that they will be firm holding at around $1500/tonne for zinc and $900/tonne for lead. Since Trepca is evaluated as being profitable with much lower prices we conclude that this enhances the prospects for the sale of Trepca in 2006. A meeting was held with MDIL (UK) on Thursday 24th to discuss their interest in Trepca and the dates of a visit to Kosovo, now confirmed from 8th to 10th December. KEY KTA ACCOMPLISHMENTS The purpose of the mission for the KTA was to explain the Kosovo privatisation process to the mining and mining finance professional delegates attending the conference. The recent successful Ferronickeli privatisation, coupled with the launch of 2 magnesite mines, and the possibility of starting the Trepca administration have created the perfect platform for putting Kosovo into the forefront of the industries minds. There is no doubt that the Kosovo delegation managed to achieve this to spectacular effect and the conference, from Kosovo viewpoint, was a great success. Key points which were put across during KTA presentations, as well as in one on one discussions where the highly attractive minerals legislative as well as tax environment, the elegance of the spin off process (with the clear definition of assets and liabilities that result from the creation of a NewCo), and the transparent and fair bidding process. These messages were well received by all the delegates and a great deal of real interest has been generated. In addition to many joint meetings already articulated above meeting were held with: EBRD (Head of Resources) NBL International Zambezi Nickel Indigo Publications Phelps Dodge CSM Associates WH Ireland Sol Group IrusMinesite.com Haywood UK, and European Nickel Support in terms of detailed facts, figures and policy was also given to MEM, and joint meetings were held with interested potential investors. Briefings were given to the Mining Journal, Reuters, Dow Jones wire, and the FT. KEY ICMM ACCOMPLISHMENTS The ICMM long-term strategy to attract foreign direct investment through the use of personal networking contacts has paid off. Phelps Dodge as a global copper miner was first contacted at the Indaba 2005 in Cape Town and could now (as the first global miner in Kosovo) be presented with an Exploration Licence to this conference. This shall focus the attention of other global miners on Kosovo. In addition, nine out of the 17 Companies contacts above came out of the same strategy. All companies confirmed that both the ICMM Web site,  HYPERLINK "http://www.kosovo-mining.org" www.kosovo-mining.org , which went online for this conference, and the Kosovo Supplement of the Mining Journal that was published on 14 October 2005, were of major help to them. The ICMM international staff introduced the two local board members to as many of their personal networking contacts as possible. On 24th November, the ICMM staff visited the STATS Laboratory ( HYPERLINK "http://www.stats.co.uk" www.stats.co.uk) at St. Albans, located just outside London. The aim of the visit was to obtain an insight into the equipping and organisation of a laboratory. Founded in 1974, the organisation has a staff of about 120, including 70 professional engineers and a further 16 chartered engineers. Annual turnover is about 6.5 million ( 9.6 million). KEY DSRSG ACCOMPLISHMENTS DSRSG Ruecker chaired the Kosovo Breakfast meeting, and gave interviews to over five major media outlets, including the Dow Jones Wire, the ECONOMIST, Reuters, the Financial Times, and Resource Investor. Both the Dow Jones Wire and Reuters have written using material provided in these interviews. KEY MEM ACCOMPLISHMENTS Minister Ceku addressed the Ministers morning session, and followed with several meetings with interested investors. MEM staff was able to meet key members of the international mining community, and begin forming valuable long-term personal relationships. Minister Ceku gave interviews to media outlets including the Dow Jones Wire. ATTENDEES DSRSG Ruecker KTA DMD SOEs Ahmet Shala KTA DMD POEs Paul Nelles KTA Dir. of Privatisation Kirk Adams KTA Public Information Advisor Thor Hesla TREPCA Charles Carron Brown TREPCA Michael Diehl ICMM Nikolai Burcham ICMM Rainer Hengstmann ICMM Konrad Wudtke OTHER ICMM Naip Zeka ICMM Blerim Baruti TREPCA Nazmi Mikullovci MEM Minister Ceku MEM Lorik Haxhiu MEM Agron Dida MEM Shyqyri Kelmendi     Mines and Money Mission Report 21-25 Nov. 05 Page  PAGE 5 of  NUMPAGES 6 CD` \ p & ( 4 Q '"""""@$A$%'''()(/(1(źźźŬźźźźşŕ}źźźh(CJOJQJh8h8CJH*OJQJh8CJOJQJh h]5CJOJQJ\h h]B*CJOJQJphfh h]CJH*OJQJh h]CJOJQJh h]CJH*OJQJ\h h]CJOJQJ\h h]5CJH*OJQJh h]5CJOJQJ1@WX`8 R \ p 4 Q &aLH9:Hd2foF & FEƀtfF & FEƀtffO qooooF & FEƀtfF & FEƀtf q*F & FEƀtfF & FEƀtfF & FEƀtf !!q*F & FEƀtfF & FEƀtfF & FEƀtf!/!G!S!q*F & FEƀtf F & FEƀtfF & FEƀtfS!l!!!q*F & FEƀtf F & FEƀtf F & FEƀtf !!!"q*F & FEƀtfF & FEƀtfF & FEƀtf ""'"%&%qljgd8F & FEƀtfF & FEƀtf&%%'<(T(q*(F & FEƀtfF & FEƀtfF & FEƀtf1(<(T(O.h.0000000011&2'2K2L2M2\2]24466889"9ȶȉȶ|lYlLlh h]0JCJOJQJ\$jh h]CJOJQJU\jh h]CJOJQJU\h h]CJH*OJQJ\,Hhtfh~h0JCJOJQJ\*jh~hCJOJQJU\"HhtfhCJOJQJ\+jHhtfhCJOJQJU\h h]CJOJQJ\h h]5CJOJQJ\h h]CJOJQJT(*c,,,,kH & FEƀtfH & FEƀtf,,--m$H & FEƀtfH & FEƀtfH & FEƀtf-"---7-m$H & FEƀtfH & FEƀtfH & FEƀtf7-H-Y-i-m$H & FEƀtf H & FEƀtf H & FEƀtf i-j-N.O.h.144K66667888*8C8\888888999"919h^h19D9\9n99999999999999:d$a$"999999999999999999999999:ddUh0JmHnHu h0Jjh0JUhh(jh(Uh h]h h]CJOJQJ 0&P 1h. 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