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Société Equatoriale des Mines “SEM”

Company Overview

Prepared for UK – Gabon Investment ForumFabrice Nze-Bekale, CEO

29 November 2012

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Gabon’s mining sector shows massive potential for growth

Global perspective

Gabon’s mining sector was about 2.1% of GDP in 2009 and 4.6% in 2011, therefore presenting a huge potential for growth through:

– Acceleration of exploration

– Opening of new mines

– Increased local transformation

– Development of mining ecosystems

Indo

nesia

Russia

South

Afri

ca

Austra

liaChi

lePer

u

Canad

aUSA

Brazil

Gabon

Guine

a

Botsw

ana

Zambi

a

Ghana

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Sources: Citi, Mbenzi

Industry Contribution as %

of GDP

Oil & Gas

Mining

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SEM, well aligned with Gabon Industriel

Corporate Strategy

SEM aims to promote:

– The local development of raw materials,

– The export of products with higher added value, and

– The diversification of the national economy

Over 900 mineral indications recorded in the country. Only 30% of the country subject of systematic geological exploration

Attract FDI in exploration/exploitation and local processing of natural resources

SEM will seek to promote and support work which relates to and benefits the mining sector such as infrastructure development. This will largely be achieved through interaction with government ministries and agencies

Key points

Integrated, three pronged approach:

Mining

Local transformation

Long-term partnerships with the State through SEM

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A company created to improve management of mineral wealth

History of SEM

SEM was formed by Presidential decree in August 2011 to facilitate the development of Gabon’s mineral resources:

– Manage the shareholdings of the State in the mining sector

– Develop alone or in partnership any mining related project in Gabon

SEM is wholly owned by the Government of Gabon but privately managed

SEM part of the Office of the President

Initially, SEM’s activities will be focused on expanding and developing strategic national mineral resources within Gabon. Investment and exploration teams will eventually broaden the company’s mineral portfolio outside Gabon

Key points

State’s commercial arm

Privately managed

Develop Gabon’s national mineral resources

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Company goals and objectives

SEM at a glance

To be a reliable equity partner for private investors in Gabon

– Aligned interests

To help create shareholders’ value

To become a world-class diversified mining and metals company

To promote local skills transfer, the health and safety of people in communities affected by mining activities and the preservation of the surrounding environment

Key points

Create shareholders’ value

For the State…

…and for private investors

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No conflicts of interest

Roles and responsibilities

Roles and responsibilities of the ministry and SEM are clearly defined

Key points

Ministry: policy and regulations, licences

SEM: commercial activities

Prospecting/Exploration Commencement of Exploitation/Mining

During Exploitation/Mining

Transformation

Ministry • Grant licenses in efficient manner

• Regulate and collate geological information from prospectors

• Policy making: mining code

• Award mining licenses

• Regulate mining activities

• Create fiscal and economic incentives to attract more FDI

SEM • Encourage as many companies as possible to conduct exploration for key, strategic minerals

• Negotiate the best commercial deal for the State

• Determine appropriate structure and optimum financing

• Advocate for industry

• Responsibly manage State’s participation

• Encourage skills transfer

• Identify and partner with downstream users

Divider slideQuestions

Thank You