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The decision to sell this unit was made since 2012/2013. It is not clear if this is the 1 or best offer
received thus far. 63% of CMOC shareholders have approved and we have 7 days to decide.
Moreover, it accounts for a very small fraction of our book value capital base at 5%

(3,719+1452*0.31/ 32,842) so can be sold off without a significant group impact. There are no risks
to the currency and retrieval of the funds as the offer allows us to nominate the currency and bank
account of our choice.

4.4.4 Recommendation

The board should accept the offer from CMOC for US$1.5 billion.

Justification: It is strategically sound to do so per BCG and Ashridge Analysis (section 4.2 of this
report). It combines with the minimal value (capital employed) of the Nickel value of US$1,968
million to generate US$3,468 billion which is within the US$3-4 billion the CEO seeks for 2017.

Actions:
 The CEO, Mike Cutika should sign and send a letter to CMOC accepting the offer;

 The CFO should investigate the financial, legal and ethical viability of the proposed dividend
repatriation suggestions to prepare for any tougher dividend repatriation laws in Brazil;
 Nominate our US$ bank account to reduce currency risks and the CRO should continue

monitoring political risk developments in Brazil to protect our strategic interests in that country;
and
 Value all other nobum and phosphates business outside of Brazil and ready these for disposal.

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4.5 5 Priority: Strategic disposal in Canada

Our situation in Canada presents a threat and an opportunity. ‘Idle No More’ –a grass roots
aboriginal movement is on rampage; seeking to renegotiate old mining agreements and seize
control of mining developments -targeting mining giants –having singled us out. On the positive

side, with recovering copper prices, global copper mining activities have resumed -especially in
Canada. We have the opportunity to ramp up production through our 50-50 JV with Cephas.
Standalone long wall mining is the best method agreed but there are uncertainties about the

long-term copper demand and prices hence we need to decide the best construction design as
the 3 available choices entail different fixed and variable cost structures in their subsequent
operation.

4.5.1 Differing risk appetites

As we are making a decision under uncertainty, pay-off analysis has been done in Appendix 7.
In theory, which design choice to adopt depends on the risk appetite of the decision-maker. Risk

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