Key Accounts Overview - SII
GE Mining Solutions
Sustainable Growth Is Not a Game of Chance.
Jay Wileman President SSA – GE Energy
Africa: a continent blessed with resources • Oil & Gas (12% worlds proven resources)
• Gold & Diamonds (70% world’s resources)
• Minerals • Exploration ongoing “new” finds: − − − − −
Ghana Tanzania Mozambique Uganda Namibia
2
Africa’s prospects are rising Democratic institutions strengthening…
Private financial flows rebounding…
Polity IV scores for SSA’s largest economies
Regional FDI and portfolio equity inflows
More democratic
Current $US
More autocratic Source: Polity IV Project
Portfolio Equity FDI Total
Source: IMF; World Bank, World Development Indicators
Per capita income rising…
Trade flow rebalancing…
Regional gross national income per capita
SSA merchandise exports, by destination
World Bank threshold for low-income countries
2000
2009
($94 B)
($214 B)
Eurozone USA China ROW
12% 3% Source: World Bank, World Development Indicators Source: Moody’s; IMF
Risk is still very real Fiscal positions hurt by downturn…
Aid flows hold, but may soon fall short …
Regional current account balance and fiscal deficit/GDP
Official Development Assistance to SSA ($US B)
Current account balance/GDP (%) Fiscal balance/GDP (%)
Source: OECD, Africa Economic Outlook, GE analysis
Global recovery still fragile…
Political churn… Number of national elections, by quarter (2011)
Sovereign risk / austerity
7 4 Uganda
5
5
Djibouti
Madagasca
Mauritius
Nigeria
r
DRC
Liberia Cameroon
Niger
Chad
Sao Tome
Guinea
CAR
Seychelles
Cape Verde
Mauritania
Benin
Zimbabwe
The Gambia
Gabon
Zambia
Oil prices
?
Social unrest
challenging time to compete for resources. It’s a
Mining competes with: • Growing populations • Emerging economies • Technology advances • One resource pool 5
Potential system strains: World population
Urban shift Share of global urban population
6B
1998
7B
2011
8B World population
2025
Source: United Nations Population Division
Growing population, more urban residence 6
World of shifting constraints: Supply
Demand
Price volatility
Oil
Low
High
High
Copper
Low
High
High
Land ( agriculture)
Low
High
High
Water
Mixed
High
Low
N. America UC gas
Growing
Moderate
Low
High
Low
Low
GHGs
CO2
Constraints vary … some tight others weak … dynamic … shift over time 7
Resource Challenge Example:
Water
2005-2030
+283% Sub-Saharan Africa
is Thirsty
Source: GSP 2011
8
Water resources:
Growing constraints
Global water withdrawals (Billion cubic meters)
5,800 Supply 4,500 gap
Available resource 2010 2020
Water shortage Reflected by annual renewable water resources
Scarcity Sufficient
Stress Insufficient Plentiful
Source: 2030 Water Resources Group, 2009; Black, Maggie and Jannet King. The Atlas of Water, 2009
9
Technology quenches the effects of water
challenges.
GE dust control solutions for Mantos de Oro Mine cut water usage by 60%. 10
Mining challenges: Energy Planning & Deployment Matching power solutions with needs for capacity, growth, available resources and geography Safety Employees, Assets, Community, Shareholders Environmental Stewardship Air, Water emissions – community, shareholder, government Availability & Discharge Long term water availability, sustainability Process Design Water < 1% capex, key design criteria Productivity vs. Greenfield Optimization of existing facilities … automation, deeper ores
Sustainable efficient growth
Assuring sustainable Improving water Reducing
quantity
quality
energy consumption Technology can drive operational, business and growth gains across mining
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Water Dust Control PG & Distribution Electrical Distribution Transportation Environmental Tech Motors Automation Electronic Condition Monitoring & Reliability Inspection & Measurement
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Transportation GE Power Conversion Rail Pipeline
Water Dust Control PG & Distribution Electrical Distribution Transportation Environmental Tech Motors Automation Electronic Condition Monitoring & Reliability Inspection & Measurement
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Transportation GE Power Conversion Rail Pipeline
Water Dust Control PG & Distribution Electrical Distribution
Refining/Pelletization
Transportation Environmental Tech Motors Automation Electronic
Refining/Pelletization
Condition Monitoring & Reliability Inspection & Measurement
GE Power Conversion GE Flow and Process Technology
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
GE Power Conversion
Grinding
Concentration & Tailings
Rail Flotation Pipeline
Water Dust Control PG & Distribution
GE Power Conversion GE Flow and Process Technology Power plant
Transportation
Electrical Distribution Refining/Pelletization
Transportation Environmental Tech
Desalinazation plant
Motors Automation Electronic
Refining/Pelletization
Condition Monitoring & Reliability Inspection & Measurement
GE Power Conversion GE Flow and Process Technology
AC excavator system AC motors, drives, controls, engineering and field services. - help to deliver lower cost per material ton moved
17
Proof point: efficiency Proof point:
efficiency
Higher efficiency, lower emissions Canada: 9 Quadramatic Motors save 34 million kWh per year 18
Proof point:
flexibility
Emergency power to 70,000+ people
Angola: 6B GE gas on barges act as as part of the Floating power plant
19
Proof point:
emissions Waste gas power generation Aceralia, Spain: 12 Jenbacher engines, produce 20 MW of electricity from steel-making waste gases
20
Proof point:
environmental stewardship
1.3 tons of annual CO2 emissions eliminated Australia: Anglo Coal, 15 Jenbacher engine 21
Proof point:
safety
Safety for underground personnel South Africa: Anglo Platinum, 26 Emergency Diesel Generators, 15 MW
22
Starting point: Collaborative ingenuity
harvests opportunity and minimizes risk. Expertise … Sustainable, proven advanced technology Cooperation … Open dialogues with governments and industry organizations Breadth of Scope … Solutions and commitment from shovel to shipments
23
Mining Advances can help improve the Quality of Life for the African Continent and its people. 24
Global Mining at GE June 2010
Sustainable Growth Is Not a Game of Chance.
Jay Wileman President SSA – GE Energy
Africa: a continent blessed with resources • Oil & Gas (12% worlds proven resources)
• Gold & Diamonds (70% world’s resources)
• Minerals • Exploration ongoing “new” finds: − − − − −
Ghana Tanzania Mozambique Uganda Namibia
2
Africa’s prospects are rising Democratic institutions strengthening…
Private financial flows rebounding…
Polity IV scores for SSA’s largest economies
Regional FDI and portfolio equity inflows
More democratic
Current $US
More autocratic Source: Polity IV Project
Portfolio Equity FDI Total
Source: IMF; World Bank, World Development Indicators
Per capita income rising…
Trade flow rebalancing…
Regional gross national income per capita
SSA merchandise exports, by destination
World Bank threshold for low-income countries
2000
2009
($94 B)
($214 B)
Eurozone USA China ROW
12% 3% Source: World Bank, World Development Indicators Source: Moody’s; IMF
Risk is still very real Fiscal positions hurt by downturn…
Aid flows hold, but may soon fall short …
Regional current account balance and fiscal deficit/GDP
Official Development Assistance to SSA ($US B)
Current account balance/GDP (%) Fiscal balance/GDP (%)
Source: OECD, Africa Economic Outlook, GE analysis
Global recovery still fragile…
Political churn… Number of national elections, by quarter (2011)
Sovereign risk / austerity
7 4 Uganda
5
5
Djibouti
Madagasca
Mauritius
Nigeria
r
DRC
Liberia Cameroon
Niger
Chad
Sao Tome
Guinea
CAR
Seychelles
Cape Verde
Mauritania
Benin
Zimbabwe
The Gambia
Gabon
Zambia
Oil prices
?
Social unrest
challenging time to compete for resources. It’s a
Mining competes with: • Growing populations • Emerging economies • Technology advances • One resource pool 5
Potential system strains: World population
Urban shift Share of global urban population
6B
1998
7B
2011
8B World population
2025
Source: United Nations Population Division
Growing population, more urban residence 6
World of shifting constraints: Supply
Demand
Price volatility
Oil
Low
High
High
Copper
Low
High
High
Land ( agriculture)
Low
High
High
Water
Mixed
High
Low
N. America UC gas
Growing
Moderate
Low
High
Low
Low
GHGs
CO2
Constraints vary … some tight others weak … dynamic … shift over time 7
Resource Challenge Example:
Water
2005-2030
+283% Sub-Saharan Africa
is Thirsty
Source: GSP 2011
8
Water resources:
Growing constraints
Global water withdrawals (Billion cubic meters)
5,800 Supply 4,500 gap
Available resource 2010 2020
Water shortage Reflected by annual renewable water resources
Scarcity Sufficient
Stress Insufficient Plentiful
Source: 2030 Water Resources Group, 2009; Black, Maggie and Jannet King. The Atlas of Water, 2009
9
Technology quenches the effects of water
challenges.
GE dust control solutions for Mantos de Oro Mine cut water usage by 60%. 10
Mining challenges: Energy Planning & Deployment Matching power solutions with needs for capacity, growth, available resources and geography Safety Employees, Assets, Community, Shareholders Environmental Stewardship Air, Water emissions – community, shareholder, government Availability & Discharge Long term water availability, sustainability Process Design Water < 1% capex, key design criteria Productivity vs. Greenfield Optimization of existing facilities … automation, deeper ores
Sustainable efficient growth
Assuring sustainable Improving water Reducing
quantity
quality
energy consumption Technology can drive operational, business and growth gains across mining
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Water Dust Control PG & Distribution Electrical Distribution Transportation Environmental Tech Motors Automation Electronic Condition Monitoring & Reliability Inspection & Measurement
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Transportation GE Power Conversion Rail Pipeline
Water Dust Control PG & Distribution Electrical Distribution Transportation Environmental Tech Motors Automation Electronic Condition Monitoring & Reliability Inspection & Measurement
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
Transportation GE Power Conversion Rail Pipeline
Water Dust Control PG & Distribution Electrical Distribution
Refining/Pelletization
Transportation Environmental Tech Motors Automation Electronic
Refining/Pelletization
Condition Monitoring & Reliability Inspection & Measurement
GE Power Conversion GE Flow and Process Technology
Where GE delivers: Drilling Crushing
Loading
Mining Operations GE Power Conversion
GE Power Conversion
Grinding
Concentration & Tailings
Rail Flotation Pipeline
Water Dust Control PG & Distribution
GE Power Conversion GE Flow and Process Technology Power plant
Transportation
Electrical Distribution Refining/Pelletization
Transportation Environmental Tech
Desalinazation plant
Motors Automation Electronic
Refining/Pelletization
Condition Monitoring & Reliability Inspection & Measurement
GE Power Conversion GE Flow and Process Technology
AC excavator system AC motors, drives, controls, engineering and field services. - help to deliver lower cost per material ton moved
17
Proof point: efficiency Proof point:
efficiency
Higher efficiency, lower emissions Canada: 9 Quadramatic Motors save 34 million kWh per year 18
Proof point:
flexibility
Emergency power to 70,000+ people
Angola: 6B GE gas on barges act as as part of the Floating power plant
19
Proof point:
emissions Waste gas power generation Aceralia, Spain: 12 Jenbacher engines, produce 20 MW of electricity from steel-making waste gases
20
Proof point:
environmental stewardship
1.3 tons of annual CO2 emissions eliminated Australia: Anglo Coal, 15 Jenbacher engine 21
Proof point:
safety
Safety for underground personnel South Africa: Anglo Platinum, 26 Emergency Diesel Generators, 15 MW
22
Starting point: Collaborative ingenuity
harvests opportunity and minimizes risk. Expertise … Sustainable, proven advanced technology Cooperation … Open dialogues with governments and industry organizations Breadth of Scope … Solutions and commitment from shovel to shipments
23
Mining Advances can help improve the Quality of Life for the African Continent and its people. 24
Global Mining at GE June 2010
