NOVEMBER 2016

EDC & Mining in Latin America

Go, Grow and Succeed

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›  Canada’s Export Credit Agency

›  Crown corporation wholly owned by Government of Canada

›  Financially self-sustaining

›  Operates on commercial principles

ABOUT EDC

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›  To support and develop Canada’s export trade and international business efforts

›  Financing and insurance solutions for Canadian exporters and investors

EDC’S ROLE

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EDC’S FOREIGN REPRESENTATION

GROW YOUR BUSINESS WITH EDC SUPPORT

!  Market Knowledge

!  Insurance – Trade Credit and Political Risk

!  Financing – Loan Guarantees and Direct Lending

!  Bonding and F/X Guarantees

www.edc.ca/insurance

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EDC SUPPORT FOR MINING

›  Corporate Debt: syndicated and bilateral on commercial terms.

›  Project Finance: non-recourse support for the development of assets. Reserve based lending.

›  PRI: mitigating political risk (asset & equity)

›  Performance Assurance: 100% backstop for standby L/C’s and surety bonds. Reclamation and min work.

›  Credits Insurance: insuring Canadian exporters against payment default by foreign buyers.

›  Market Intelligence & Connections: Country & Economic

MINING VOLUME (CAD $)

Product 2015 2014 Financing $4.0B $ 2.7B

Political Risk Insurance $540M $ 500M

Accounts Receivable Insurance $8.1B $ 8.1B

Contract Insurance and Bonding $1.6B $ 1.4B

TOTAL $14.2B $ 12.7B

•  In 2015, mining contributed 13.67% to EDC's total Business Volume

•  Latin America contributed 23% to EDC's total mining volume in 2015

•  Priority Markets in Latin America: Chile, Peru, Mexico

TRENDS IN THE MINING INDUSTRY

•  Lower ore grades •  Increasing mining depth and challenging locations

•  Higher operating costs, lower commodity prices •  Project development cost overruns

•  Talent shortages •  an estimated 40% of the workforce in resource extraction sector is at least 50 years

old, and around 33% of those are expected to retire by 2022

•  More stringent regulations and standards – environment, social, health and safety

•  Increasing expectations by stakeholders

•  Focus on efficiency and cost reduction •  Higher use of renewable energy & greener technologies

EDC MINING SECTOR PRIORITIES

•  Strong risk appetite and financial capacity •  Strategic support for clean technology

•  Continue to develop our database of supplier capabilities

•  Attend key tradeshows and events •  Market intelligence on key foreign borrowers

•  EDC sponsored matchmaking sessions

•  Leverage our strategic partners (CAMESE, Global Affairs and banks)

•  High emphasis on CSR

2009-2015 EDC MINING TRANSACTION (SAMPLE)

2009 & 2011 Canada

Agnico-Eagle Mines Ltd

50-100 M Lender

2009 Canada

Potash Corp 100-250 M

2009 Canada Lundin Mining

Corporation

25-50 M Lender

2013 Chile

Minera Escondida

/BHP 100-150 M

Lender

2010 & 2014 Canada

Vale Inco 1 B and 500M

Lender

2010 Dom Rep

Barrick & Goldcorp Inc.

250-500 M

Lender

2010 & 2011 & 2013 &

2014 Chile

Codelco

250-350 M Lender

2011 Chile

CAP S.A 10-50 M Lender

2009 & 2014 Chile

Minera Esperanza 200-500 M

Lender

2013 Mexico

Minero Frisco

75 -100 M Lender

2013 Anglo

American UK/Africa 300-350 M

Lender

2009 Chile Los

Pelambres

50-100 M Lender

2013 India

Tata Steel

100 -150 M Lender

2013 Canada Silver

Wheaton

200-250 M Lender

2009 Mexico Penoles

75-100 M Lender

2012 Canada

IAMGold 10-50 M Lender

2012 & 2013 Canada

Yamana Gold

50-100 M Lender

2013 Canada Kinross

75-100 M Lender

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EDC – “TAKE ON THE WORLD”

!  For More Information:

!  http://www.edc.ca/en/Pages/default.aspx

!  Contact an EDC representative! 1-800-229-0575

!  EDC event list:

!  https://www.edc.ca/events/en/pages/upcoming-events.aspx

!  Subscribe to our events calendar

!  EDC social media channels- Facebook, Twitter, LinkedIn and Google+