LEGAL STATEMENT

The purpose of the information in this presentation is to guide ICA programs and provide members with information to make independent business decisions.

1

ANTITRUST GUIDELINES

2

Antitrust Guidelines for Copper Industry

Trade Association Meetings

The following guidelines with respect to compliance with antitrust laws of the United States, Japan and European Community1

are intended to govern the conduct of participants in copper industry trade association meetings, both at the meeting itself and

in informal discussions before or after the formal meeting.

Price: Competitors should not discuss future prices (including terms of sale) of their products. There is no blanket prohibition

against the mention of or reference to current or past prices but limits must be observed. Such references or mentions should

occur only when necessary in connection with the development of association programs. For example, reference to a particular

price level in comparing the cost of a copper product to a competing product is permitted. Whenever possible, such references

should be discussed in advance with legal counsel.

Competitive Information: Competitors should not discuss the market share of a particular copper producer or copper

fabricator’s products. Furthermore, nothing should be said at a meeting which could be interpreted as suggesting prearranged

market shares for such products or producer production levels. The overall market share of copper products may be discussed

with regard to competition with non-copper products and general market acceptance.

New Products: Competitors should not encourage or discourage the introduction of a new product by another competitor or

reveal a particular copper company’s plans to change the production rate of an existing product or to introduce a new product.

No company should disclose to another company whether it is in a position to make or market a new product. New products

may be discussed in a technical manner or from the standpoints of competition with non-copper products and general market

acceptance. In addition, proposed methods for and results of field and laboratory testing can be considered.

The Role of Legal Counsel: Legal counsel attends association meetings to advise association staff and other meeting

attendees regarding the antitrust laws and to see that none of the matters discussed or materials distributed raise even the

appearance of antitrust improprieties. During the course of a meeting, if counsel believes that the discussion is turning to a

sensitive or inappropriate subject, counsel will express that belief and request that the attendees return the discussion to a less

sensitive area.

A paper entitled ‘Copper Industry Trade Associations and Antritrust Laws’ is available upon request.

10/92, 5/93, 10/10

1. Other foreign competition laws apply to International Copper Association, Ltd. (ICA)’s activities worldwide.

October 5th 2018, London Shanghai MarchWIN Consulting Co., Ltd.

Impact of China’s Belt and Road Initiative

Background

September 7th, 2013 - The initiative of building the Silk Road Economic Belt was raised for the first time.

• On Sep. 7th, 2013, President Xi Jinping made a speech titled "Promote People-to-People Friendship and Create a Better Future" at Kazakhstan's Nazarbayev University.

October 3rd, 2013 - The initiative of building the 21st-Century Maritime Silk Road was raised for the first time.

• On Oct. 3rd, 2013, President Xi Jinping made a speech titled "Constructing Jointly the China - ASEAN Community of Common Destiny" at Indonesia's Parliament.

# "BRI" refers to the Belt and Road Initiative, the Initiative of building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road.

4

Geographical Reach

Source: Mercator Institute for China Studies 5

64 Countries

• China is open to the countries that are willing to join.

6

Population and GDP

The 64's population accounts for

43.5% of the world's people in 2016.

64's GDP accounts for

16.1% of world GDP in 2016.

Source: World Bank

Source: World Bank

30,801 31,104 33,665

39,453

47,601

56,658

66,983

83,136

98,092

88,219

105,170

124,043 129,031

133,578 133,798

120,140 121,752

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10

0 M

ILL

ION

US

$

64 GDP

2,618 2,656

2,693 2,731

2,770 2,808

2,846 2,885

2,923 2,962

3,001 3,041

3,080 3,119

3,158 3,196

3,234

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MIL

LIO

N

64 Population

7

Economic Potential

Source: China State Grid Energy Research Institute Co., Ltd, MarchWIN

Source: CEEC (China Energy Engineering Co., Ltd), China State Grid Energy

Research Institute Co., Ltd, CEC (China Electricity Council ), IEA, BP, UN

Forecast on 64 GDP Growth Forecast on Electricity Consumption

0.00

1.00

2.00

3.00

4.00

5.00

6.00

%

8

Year Region

Electricity Consumption

per capita per year

(kWh/a)

BRI 64 Countries 1,600

China 4,082

OECD 7,945

World 3,027

2020 E 2,024

2030 E 4,166

2015

BRI 64 Countries

Select Impact

Energy and Power

Power generation & power grid

Oil pipeline, gas pipeline

Petroleum processing

Transport

Highway

High-speed rail, low speed rail and urban rail

Port

Telecommunication

Driven investment is mainly focusing on infrastructure development

9 Note: The study covers power and transport in copper demand only, due to data availability.

Belt Road Initiative

Direct Impact

Indirect Impact

Increase in

Copper

Demand

Material Demand Methodology

Infrastructure development by

imported equipment from China

Power (generation + grid)

Transport (railway + highway)

10

Power Infrastructure

Source: ICA, MarchWIN

Source: MarchWIN

Power infrastructure

projects

China companies

involved

Power contracting projects include thermal, hydro and renewable power generation plus power grid.

Copper intensive power equipment and products include power cables, transformers and switchgears.

11

0.00

50.00

100.00

150.00

200.00

250.00

2013 2014 2015 2016 2017

1,0

00

ton

nes

Estimated copper demand

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2013 2014 2015 2016 2017

US

$ b

illio

n

China companies power contracting projectsinvestment in BR 64

Transport Infrastructure

Source: ICA, MarchWIN

Source: MarchWIN

Transport infrastructure

projects

China companies

involved

Railway and highway system constructions are key focused areas.

12

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2013 2014 2015 2016 2017

1,0

00

ton

nes

Estimated copper demand

Highway

Urban rail

High-speed rail

Low speed rail

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017

kilo

mete

rs

China companies transport contracting projects completed kilometers in BR 64

Low speed rail

High-speed rail

Urban rail

Highway

Challenges

13

Forecast – Direct Impact

2013 to 2017

BRI - 1st 5 years

1.25 million tonnes

0.25 m tonnes/a

2018 to 2022

BRI - 2nd 5 years

1.58 million tonnes

0.32 m tonnes/a

2023 to 2027

BRI - 3rd 5 years

2.10 million tonnes

0.42 m tonnes/a

Source: MarchWIN

14

0

50

100

150

200

250

300

350

400

450

500

2013 2014 2015 2016 2017 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

1,0

00

ton

nes

Power infrastructure Transport infrastructure (railway and highway）

0

20

40

60

80

100

120

140

160

2013 2014 2015 2016 2017 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

1,0

00

ton

nes

Building construction Other appliances Aircon and refrigeration

Forecast – Indirect Impact

2013 to 2017

BRI - 1st 5 years 2018 to 2022

BRI - 2nd 5 years

0.52 million tonnes

0.10 m tonnes/a

2023 to 2027

BRI - 3rd 5 years

0.72 million tonnes

0.14 m tonnes/a

5 years lag of BRI's indirect impact (hypothesis)

Source: IWCC/ICA, MarchWIN 15

4,000

4,500

5,000

5,500

6,000

6,500

7,000

2013 2014 2015 2016 2017 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E 2026 E 2027 E

1,0

00

ton

nes

BR 64's copper usage without BRI BRI direct impact on copper usage BRI indirect impact on copper usage

Forecast

6.5 m tonnes

5.9 m tonnes

5.3 m tonnes

Source: IWCC/ICA, MarchWIN 16