algeria project.doc

This Presentation is prepared to our Honorable guests :

M. P.R. Landge, President, Projects & Technology,

M. Karthik Menon, President, Strategy & Business Development,

From Deepak Fertilizer & Petrochemicals Corp., Ltd., India.

ALGERIA . OVERVIEW

• 1st. largest African country (2.4 Mill Sq. Km)

• Geo-Strategic location at the crossroads of Africa, Middle-East, Europe, Americas.

• 6th. largest reserves of Natural Gas in the World.

• Supplies 30% of the Europe’s Natural Gas imports (2nd. to Russia)

ALGERIA . KEY FACTS

Popula'on : 36 million

GDP Growth Rate : 5%

1 USD ($) / DZD ( Algeria

Dinar) : 74

Time Zone: GMT +1

Labor Cost : Low

Foreign Debt : None

1. SPONSORS IN BRIEF :

• FERPHOS group : (Lead Sponsor)

• 1st. Resources Group in Algeria.(non hydrocarbons)

• Member of Manadjim El Djazair, (Manal), a state-owned mining holding.

MISSION STATEMENT

V I s I o n M I s s I o n V a l u e s

Performances Customer centricity

Value CreationHighest return to shareholders

Best quality deliveries

Reliability

Employees respect

Excellence

Sustainability

Ethics

30%

FERPHOS group . Portfolio :

Phosphate(SOMIPHOS)

Iron Ore (SOMIFER)

Real Estate (FERBAT)

Logistics(Sotramine) 100%

FERPHOSgroup 100%

Foundry (SFO)

Miferui- Nimba, Guinea

Pouzzplane (SPMC)

ArcelorMittalTébessa

FERPHOS group . KEY FIGURES2011

11,2 bill.DZD 9,8 bill. DZD 2206

Turn-Over Export Employees

6 bill.DZD 9 bill.DZD 88 %

Operating Result

Added Value

Phosphate %

2. SPONSORS IN BRIEF :

• Holding ASMIDAL : (Co-Sponsor)

• The Algerian Fertilizer and Agriculture Expert.

• Member of Sonatrach, a state-owned Oil & Gas group.

Holding ASMIDAL. Portfolio :

Fer$al34%

Asfertrad 100%

HoldingASMIDAL

Somias 45%

SGS20%

ISGA 17%

ALGERIA RESOURCES DEVELOPMENT .BACKGROUND

Algeriais one of the rare

countries in the WorldBlessed with abundant quantities ofPHOSPHATE and NATURAL GAS,

which are the main in-puts to implement a successful

fertilizer industry.

RESOURCES . OVERVIEW

4,5 trillion m3Natural Gas

85,14 bill.m3

Reserves Production

• Ammonia/ Urea Industry

• Power Generation

30 billion m3 56 billion m3

Utilization Domestic Consumption

Export

RESOURCES . OVERVIEW :CURRENT PHOSPHATE OPERATIONS & RESERVES PHOSPHATE /

RESERVES :

+2 Billion MT.

Mines Under Exploitation

Existing Deposits / Non exploited

Assets : Beneficiation Pant (2 Mill. Mtpa) + Up Gradation

project to add 2Million mtpa capacity.

Mine of Kef Snoun

520 MMT

Mine

of Djemi Djema620 MMT

Phosphate Deposit of Betita

175 MMT

Phosphate Deposit of Djebel

Onk Nord110 MMT

Location of Mines & Deposits

Bled-El-Hedba Reserves : 0,8 billion MT

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RESOURCES . OVERVIEW :

UNDER PROJECT :

MINE (DEPOSIT) OF BLED-EL-HEDBA

RESERVES : 800 MILLION MT.

DESTINATION : WILL BE EXCLUSIVELY DEDICATED TO THE FERTILIZER PROJECT

ALGERIA

INTEGRATED PHOSPHATE FERTILIZER

PROJECT

From Mine to Farm : A Global Value Chain

Simplified Value Chain

THE PHOSPHATE ROCK MINE &BENEFICIATION COMPLEX

PROJECT HIGHLIGHTS :Scope :

Phosphate Mine Opening / Exploitation : Phosphate Rock beneficiation Plant : 6Million mtpa. Utilities. Social Infrastructure

Location : Bled-El-Hedba, Bir-El-Ater (Tébessa) (Eastern Borders Line)

Product destination :

Fertilizer Plant Exclusive Feedstock.

PRELIMINARY REQUIREMENTS :

Utilization of the Existing Geological Survey Studies done by ORGM ‘87 & BRGM ’92;

Pluri-Annual Exploitation Plan to be accomplished ;

Reserves Confirmation Survey, On-Progress ;

Preliminary Studies : Bankable Feasibility Studies (BFS), Environment Impact Assessment, etc…

THE PHOSPHATE FERTILIZER COMPLEX

Location : Oued Kébérit, Souk-Ahras (Eastern Borders Line) ;

FERTILZER COMPLEX

Port of

Annaba Phos.R Complex

Scope :o Di-Ammonium Phosphate (Final Product):9000 mtpd

o Phosphoric Acid (Intermediate Product)

o Sulphuric Acid (Intermediate Product)

o Ammonia (Intermediate Product)

Overall Master Plan

Phase- On‐ e

Timeline MTPD SulphAcid PhosAcid Ammonia DAP TSP

Stage I * 4500 1500

Stage II * 4500 1500

Stage III * 4500 1500 2200 9000Phase- Two‐

Stage I * 4500 1500 3000

Stage II * 4500 1500 3000

By-Products : Power & Phospho-Gypsum

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KEY REQUIREMENTS

Greenfield Project = Significant In-puts & Infrastructure

IN-PUTS :

Phosphate Rock : Locally supplied (Integrated project)

Sulphur: Imported

Water: Provided from the adjacent dam (distant of 7 km)

Natural Gas: Supplied by Sonatrach (Subsidiary is Co- Sponsor)

Power : Supplied by Sonelgaz (Govt. Electricity Co.) & Auto- Generated by the SulphAcid Plant.

KEY REQUIREMENTS

INFRASTRUCTURE :

Land: Granted in a concession form (Long-Term Lease Agreement) / Phospho-Gypsum stacking will be adjacent.

Railway: Govt. launched Up-gradation & Development Plan considering the needs of the Project. (Map)

Port Facilities & Deepwater port :. Up-gradation of the existing Ferphos’s Port Facilities, Annaba;. Construction of new capabilities in the Port of Annaba.

Social Infrastructure/ Employees/ Community: Employees village.

Railway Map

Railway Map . Details

PROJECT

Strategic Partnership Fundamentals

EQUITY STRUCTURE: Sponsors : 51% minimum Partner : 49% maximum

(Complies with Algerian Law on Shareholding Pattern)

FINANCING: Equity / Debt = 30 / 70 %Local Investment Funding

STANDARD: World-Class Facilities&

Best International Practices

What Makes the Project Attractive ?

AVAILABLE LONG-LIFE RESOURCES ;

LOCAL FINANCE SUPPORT ;

STRONG GOVERNMENT SUPPORT ;

GOVERNMENT INVESTMENT AGENCY INCENTIVES ;

LOW COST OF FACTORS

The RightPartner

WORLD-CLASS MANAGEMENT

CAPTIVE MARKET & DISTRIBUTION NETWORK

TECHNOLOGY & INNOVATION

EMPLOYMENT & TRAINING

SUSTAINABILITY

SOCIAL RESPONSIBILITY

Partnership Objective Structure

Growth

Partner / Deepak

The Integrated Phosphate Fer$lizer

Co.

Sponsors / FERPHOS &

ASMIDAL

Thank You !

FERPHOS group | Direc'on du Partenariat | 27.03.2012