Dynatec Mine Contract Services

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DynatecMine Contract Services
Fueled by Safety, Driven by Success
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Agenda

• Dynatec Corporation
• Safety
• Dynatec Corporation
• Financial Performance
• New Concept Business Sustainability Unit
• Conceptual Idea
• Rationale
• Stakeholders Benefits
• Challenges Facing Us
• What we are looking for here today

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Safety
2005 Contracting Averages Industry
Dynatec TMI 8.1 6.6
LTI 1.0 0.2
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Dynatec - History

• 1980 Founded as Dynatec Mining Company
• 1988 Acquired Tonto Group of Companies,
  increased mining services capabilities and added
  drilling services division
• 1993 Contracted by Inco Limited to re-open,
  manage and operate the Shebandowan Mine in
  Northern Ontario
• 1997 Obtained Sherritt International
  Consultants, adding extensive metallurgical
  expertise and experience
• Dynatec Corporation formed through initial public
  offering
• Three business divisions Mining Services, Energy
  and Metallurgical Technologies
• Provides contract mining, shaft sinking, lateral
  mine development, mine construction, raise boring
  and Alimak raising
• gt1,000 contracts completed

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Solid Financial Performance in 2005

• Record earnings driven by service businesses
• Continuing strong results in 2006

2005 excludes 16.8 million dilution gain
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Dynatec CorporationBusiness Sustainability Unit

• Conceptual Phase

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Conceptual Idea

• Dynatec is to acquire a Mine Site from a Mining
  Company
• Preference is an existing Mine with
  infrastructure in place most likely lower grade
  deposit
• Mine would be operated as a training center
  emphasis on safety training, production rate
  would be variable
• Mine would produce safe, skilled miners for the
  Canadian Mining Industry
• Utilize Local/Provincial/Federal Government
  programs to subsidize training and labour costs
• Compliment Dynatecs current business ventures
• Energy Services
• Metallurgy
• Mining Services
• Business Sustainability Unit (new)

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Rationale behind doing this?

• Mining sector workforces are aging and key skills
  are in danger of being lost.
• New strategies and partnerships for training
  skilled workers are required urgently so
  shortages of human resources do not constrain
  growth.
• Sustainability of the Canadian Mining Industry

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New Partnership Strategy for Training Skilled
Workers
Industry (Inco, Falconbridge,FNX, Unions,
Contractors) Need Workers
Centre for Excellence Need for Research and
Development
Business Sustainability Unit Practical
Training Skills and Experience
Workers (Unskilled, Under-qualified) Want to
Work
Government Agencies (M.O.L., W.S.I.B.) Need to
Improve Safety
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New Partnership Strategy for Training Skilled
Workers
Industry (Inco, Falconbridge, FNX, Unions,
Contractors) Need Workers

• Sustainability
• Northern Economy
• Reverse Migration
• Meet industry training needs
• Promote safe, sound industry practices
• Develop techniques and technologies
• Promote industry driven R D

Centre for Excellence Need for Research and
Development
OUTCOMES
Dynatecs Business Sustainability Unit Practical
Training Skills and Experience
Government Agencies (M.O.L., W.S.I.B.) Need to
Improve Safety
Workers (Unskilled, Under-qualified) Want to
Work
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Stakeholders

• Canadian Mining Industry
• Donor Company provides deal for the Mine site
  
• Dynatec Corporation
• Unions
• Ministry of Labour
• City of Greater Sudbury
• Minister of Northern Development and Mines
• MP and MPPs
• What is in it for each of these Stakeholders?

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Canadian Mining Industry

• Increase Safety in the Mining Industry Safety
  driven training program
• Increase availability of Trades People Industry
  wide
• Opportunity for government bodies to try out new
  ideas and develop apprenticeship programs in a
  real mining environment MTCU is moving to make
  mining an apprenticeship
• Provide suppliers with an opportunity to try out
  new equipment concepts
• Research and Development Centre of Excellence
  in Mining

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Donor Company

• Assurance of a program designed to deliver
  skilled labour
• Miners
• Electricians
• Mechanics
• Increase Safety and as a result, Increase
  Productivity
• Be provided with Lower Cost Ore
• Assistance with reducing upcoming manpower
  shortages at their Mines
• Reduce training costs and employee turnover rates
• Increase availability of Trades People

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Dynatec Corporation

• Financial Interests Opens the door for future
  business, gives us an edge over competitors
• Develop New miners and trades people for Dynatec
  and our clients
• Dynatec is an Innovative Leader in Mining
  Services Industry another First for Dynatec
  (Fitness for Duty, Medical Team)
• Opportunity to grow and develop expertise within
  an Operating Mine Engineering (EITs), Trades,
  Supervision and other support functions

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Unions

• Safety driven training program
• Maintain membership levels as aging workforce
  retires
• Provides an opportunity for companies to expand
  their operations with skilled people
• Reduce membership turnover rates

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City of Greater Sudbury

• Opportunity to retain local citizens by training
  them in meaningful work
• Financial interest in moving people from
  government assistance into contributors to
  Local/Provincial/Federal Tax Base
• Long Term Jobs People get off and stay off
  public programs or better yet, dont even end up
  on programs in the first place
• Promotes Sudbury as The Hub of the North and
  The Mining Capital of the World

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Ministry of Labour

• Opportunity to train new Ministry of Labour
  Inspectors Gain practical experience
• Opportunity to participate in addressing training
  issues
• Opportunity to develop positive relationships
  with new emerging workforce

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Minister of Northern Development and Mines

• Opportunity to assist in addressing skilled
  labour shortage in the Mining Industry
• Optimize extraction of mineral wealth gives us
  the ability to mine lower grade deposits
• Increase employment rate in constituency
• Promote a Positive Public Image

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Challenges we are faced with

• 1 Challenge - Finding and Securing a mine site
  need a mining company to open the door for us
• Administration of Project
• Shift of key Dynatec personnel to manage the
  project
• Acquiring resources and trainers to get project
  off the ground

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Current Status of Concept

• Agreement with the City of Sudbury for subsidy of
  Wages WSIB Fees (Vivienne Martin)
• Commitment by Dynatecs Sudbury Management Team
  Corporate Senior Management
• Met with Rick Bartolucci have his support
• Met with WSIB have their support
• Working on business case

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What are we looking for today?

• Endorsement of this concept
• Looking for a mining company to fast track a
  property deal so we can take advantage of current
  market conditions to assist in getting this
  started
• Looking for organizations to get on board and
  assist us in making this happen