1. Research and innovation for the iron ore to carbon steel value chain CSIRO Minerals Down Under Flagship Jonathan Law | Director Ralph Holmes | Industry Manager Carbon Steel Materials MINERALS DOWN UNDER FLAGSHIP

2. A view of the fundamental drivers 1. Australias positioning 2. Our evolving industry 3. Our work across the value chain Sensing Impurity removal Eco-friendly steel makingInnovation for Carbon Steel | Law and Holmes | Page 2 3. Australias positioningInnovation for Carbon Steel | Law and Holmes | Page 3 4. Iron ore production top 5 : 2,400Mt globally (2010)100Mt 900Mt260Mt 370Mt420MtData from USGS Innovation for Carbon Steel | Law and Holmes | Page 4 5. Source: World Steel Association, 2012 Innovation for Carbon Steel | Law and Holmes | Page 5 6. New iron ore production capacity: 2011 to 20163% 3%5% 34%34%Total 880Mt globallyData from MEG, 2012 Innovation for Carbon Steel | Law and Holmes | Page 6 7. Australian mines and developmentsInnovation for Carbon Steel | Law and Holmes | Page 7 8. Australian production by StateInnovation for Carbon Steel | Law and Holmes | Page 8 9. Australian production by ore type28% of resource baseInnovation for Carbon Steel | Law and Holmes | Page 9 10. Declining ore gradesInnovation for Carbon Steel | Law and Holmes | Page 10 11. WA water and energy resource consumptionInnovation for Carbon Steel | Law and Holmes | Page 11 12. Our evolving industry not business as usualInnovation for Carbon Steel | Law and Holmes | Page 12 13. Source: McKinsey Sustainability & Resource Productivity Practice, 2011 Innovation for Carbon Steel | Law and Holmes | Page 13 14. Low costs (quality and scale) New discoveriesSource: McKinsey Sustainability & Resource Productivity Practice, 2011 Innovation for Carbon Steel | Law and Holmes | Page 14 15. Source: McKinsey Sustainability & Resource Productivity Practice, 2011 Innovation for Carbon Steel | Law and Holmes | Page 15 16. Source: PWC, Mine, the growing discontent, 2012 Innovation for Carbon Steel | Law and Holmes | Page 16 17. Source: MCA and Port Jackson Partners, 2012 Innovation for Carbon Steel | Law and Holmes | Page 17 18. Source: MCA and Port Jackson Partners, 2012 Innovation for Carbon Steel | Law and Holmes | Page 18 19. Source: MCA and Port Jackson Partners, 2012 Innovation for Carbon Steel | Law and Holmes | Page 19 20. Source: MCA and Port Jackson Partners, 2012 Innovation for Carbon Steel | Law and Holmes | Page 20 21. Our work across the value chain 1. Sensing 2. Impurity removal 3. Eco-friendly steel makingInnovation for Carbon Steel | Law and Holmes | Page 21 22. Global first seamless national ASTER mapInnovation for Carbon Steel | Law and Holmes | Page 22 23. 17 ASTER Geoscience maps of AustraliaAlOH Group content composition Ferric index composition Silica oxide content Ferric oxideInnovation for Carbon Steel | Law and Holmes | Page 23 24. Iron oxide zoom for iron ore explorationchannel iron ore10 kmInnovation for Carbon Steel | Law and Holmes | Page 24 25. Delivered free via the web http://portal.auscope.org/portal/gmap.htmlSBDD079 Tray 9, 36.7 to 41.6 m 37.2 m37.6 m36.705 mAspectral36.8 mP1: P2: P3:38.4 m37.676 mAspectral38 mP1: P2: P3:39.2 m39.6 m38.713 mAspectral38.8 mP1: P2: P3:40.4 m39.641 mAspectral40 mP1: P2: P3:41.2 m40.58 mAspectral40.8 mP1: P2: P3:0200400600Distance along section (mm)Innovation for Carbon Steel | Law and Holmes | Page 258001000 26. Ore CharacterisationVGQEMSCANKRecognition OG H30 microns 27. Real time exploration data: downhole NAAInnovation for Carbon Steel | Law and Holmes | Page 27 28. Real time blast hole analysis Laser Induced BreakdownSpectroscopy Integrated with a 4WD platform Provides on-the-spot elemental analysis prior to blasting Developed as a collaborative partnership with BHP Billiton IOInnovation for Carbon Steel | Law and Holmes | Page 28 29. Our work across the value chain 1. Sensing 2. Impurity removal 3. Eco-friendly steel makingInnovation for Carbon Steel | Law and Holmes | Page 29 30. Bioflotation Microorganisms or their metabolites act as either flotation reagents, collectors or modifiers, making possible the selective separation of minerals Potential advantages Enhanced mineral selectivity Environmentally benign reagents Specifically targeting removal of impurities such as silicates, aluminosilicates, phosphorousInnovation for Carbon Steel | Law and Holmes | Page 30 31. Phosphorus Removal Phosphorus tends to be associated largely with the goethite in Australian iron ores Desliming can remove some phosphorus, provided it is concentrated in the ultrafine size fractions Currently evaluating leaching options Heat treatment Acid or caustic leaching Reduction from 0.15 %P (too high) to say 0.06% P (quite acceptable) 0.160.14Phosphorous Assay (%)0.120.10.080.06Heat and Water Leach0.04Heat and NaOH Leach0.02Heat with 10% NaOH and Water Leach0 0200400600 Temperature (C)Innovation for Carbon Steel | Law and Holmes | Page 3180010001200 32. Our work across the value chain 1. Sensing 2. Impurity removal 3. Eco-friendly steel makingInnovation for Carbon Steel | Law and Holmes | Page 32 33. Designer Biochar in steel making Ironmaking uses large amounts of coal and coke Convert biomass into designer charcoal for specific applications in iron and steel Up to 50 per cent less carbon dioxide for every tonne produced. With OneSteel (Arrium) and BlueScope SteelInnovation for Carbon Steel | Law and Holmes | Page 33 34. Dry slag granulation Uses a patented technology to air quench melts such as slag and capture a large quantity of heat Produces a highly glassy product as a feed for Portland cement. Reduces fresh water usage and sulphuremissions to the atmosphere With OneSteel (Arrium) and BlueScope SteelInnovation for Carbon Steel | Law and Holmes | Page 34 35. Towards integrated solutions Integrated steel making process has the potential to deliver positive impact from agriculture through to cement making Reducing greenhouse gas emissions, water usage and waste in steel making Creating value added by productsSalinity controlBiomassEnergyIron & steelEnergyTREE PLANTINGBIOMASSBIOCHARHOT SLAGSLAGAgricultureBio-fuel processingInnovation for Carbon Steel | Law and Holmes | Page 35SmeltingDry granulationCement Cement making 36. Thank you Minerals Down Under Flagship Jonathan Law Director t +61 3 9545 8316 e Jonathan.Law@csiro.au w www.csiro.au/MDUInnovation for Carbon Steel | Law and Holmes | Page 36