Dyno Nobel. Who Are We? Where Did We Come From? Where Are We Going?

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2 Dyno Nobel Who Are We? Where Did We Come From? Where Are We Going?

3 Who Are We? Our Organization Our Customers Our Products Our Services Our People From 1984 until 2005, Dyno Nobel was owned by a Norwegian company established in the 1800 s which combined the world s most competent explosives companies into a single global organization. New owners sold parts of the business at the end of 2005 and, now, Dyno Nobel operates primarily in the U.S., Canada, Australia, Indonesia, Mexico, South America, and Papua New Guinea. Dyno Nobel is renowned for its excellent safety performance and as a provider of innovative explosive products and services, which together deliver groundbreaking performance for its customers. Today, this wealth of explosives expertise is embedded in more than 3,000 Dyno Nobel employees and more than 34 manufacturing facilities where producing effective explosives products and providing professional blasting services with an emphasis on safety is our legacy and our future. Headquarter offices are in Salt Lake City, Utah, USA and near Brisbane, Australia.

4 Recent History Our Organization Our Customers Our Products Our Services Our People August Industri Kapital (IK) acquires Dyno Nobel 2000 (Dyno ASA) from the Oslo Stock Exchange and subsequently sells the nonexplosives parts of Dyno Nobel May 2003 Dyno Nobel acquires certain assets of The Ensign Bickford Company December Dyno Nobel acquires El Paso Corpora tion s ammonium nitrate plants in Cheyenne WY, St. Helens OR, and Battle Mountain, NV May 2004 Dyno Nobel Canada is created by consolidating Dyno Nobel Ltd., Dyno Nobel Titan and Western Explosives

5 Recent History Our Organization Our Customers Our Products Our Services Our People September IK sells Dyno Nobel to a consortium of 2005 investors led by Macquarie Bank. Macquarie subsequently divests Dyno Nobel s European, Latin American and Asian assets. December Dyno Nobel acquires Nitrochem Corpora tion s nitrogen plants in Maitland, Ontario December Dyno Nobel acquires the remaining shares 2005 of Dyno Nobel Canada which becomes a new business unit of Dyno Nobel Ltd. February Dyno Nobel acquires St. Lawrence Explo sives and Hall Explosives, formerly joint venture partners March Dyno Nobel acquires Dyno East Kentucky 2006 (dba Mountain Valley Explosives), formerly a joint venture partner

6 Recent History Our Organization Our Customers Our Products Our Services Our People April Dyno Nobel becomes a publicly owned 2006 company when Macquarie lists it on the Australian Stock Exchange April Dyno Nobel acquires the ETI Holding 2006 (formerly DuPont) explosives business in the U.S. and Canada May Dyno Nobel sells a portion of Explosives 2006 Energies (formerly an ETI owned distributor) to Buckley Powder, a Dyno Nobel joint venture partner May Dyno Nobel sells Golden State 2006 Explosives (formerly an ETI owned distributor) to Alpha Dyno Nobel, a Dyno Nobel joint venture partner SeptemberDyno Nobel acquires the drilling assets and 2006 related operations of John W. Angelini Blasting, Inc.

7 Recent History Our Organization Our Customers Our Products Our Services Our People November Dyno Nobel assumes 100% ownership of 2006 our joint venture partner, Minnesota Explosives (MNEX) November Dyno Nobel announces the expansion of 2006 our ammonium nitrate (AN) production facility at Cheyenne, Wyoming December Dyno Nobel acquires Mountain State Bit 2006 and associated drilling services March Dyno Nobel acquires 100% of the shares 2007 of Le Groupe Castonguay Inc. April Dyno Nobel announces the formation / 2007 expansion of dnx Drilling which includes SJL Drilling, South Miami Heavy Equipment Company and John W. Angelini Blasting, Inc. as well as ETI (Mid- Atlantic U.S.)

8 Recent History Our Organization Our Customers Our Products Our Services Our People June Incitec Pivot Limited (IPL), an Australian based leader in the production, marketing and distribution of nitrogen-based fertilizers (essential inputs for the agricultural industry) acquired 100% of Dyno Nobel. April IPL invests US$850 million in the develop ment of a world-leading ammonia production plant in Waggaman, Louisiana. Initial production is expected to commence in late The plant, when fully operational, will produce 800,000 metric tonnes per annum.

9 Recent History Our Organization Our Customers Our Products Our Services Our People IPL and Dyno Nobel = A natural combination maximizing FIT and FLEXIBILITY Fertilizers and explosives FIT together because of common chemical processes and inputs Nitrogen-based chemical manufacturing is at the core of both companies Manufacturing drives profitability Incitec manufactured both fertilizer and explosives pre-2003 Dyno Nobel already manufactures and sells fertilizer in North America FLEXIBILITY enhances the ability to utilize production for both fertilizer and explosives to meet customer needs

10 Headquarters Explosives Manufacturing Nitrogen Manufacturing Distribution

11 Headquarters Explosives Manufacturing Nitrogen Manufacturing Distribution

12 Headquarters Explosives Manufacturing Nitrogen Manufacturing Distribution

13 Headquarters Explosives Manufacturing Nitrogen Manufacturing Distribution

14 Who Are We? Our Organization Our Customers COAL We provide the explosives used to extract the coal that fuels electrical power plants. Our Products Our Services Our People

15 Who Are We? Our Organization Our Customers Our Products Our Services Our People COAL We provide the explosives used to extract the coal that fuels electrical power plants. METALS Our explosives break the rock to begin the process of extracting iron, copper, silver, gold, nickel and other metallic minerals.

16 Who Are We? Our Organization Our Customers Our Products Our Services Our People COAL We provide the explosives used to extract the coal that fuels electrical power plants. METALS Our explosives break the rock to begin the process of extracting iron, copper, silver, gold, nickel and other metallic minerals. STONE Hundreds of quarry operations utilize our products to produce the stone and aggregates used to make concrete and other building materials.

17 Who Are We? Our Organization Our Customers Our Products Our Services Our People COAL We provide the explosives used to extract the coal that fuels electrical power plants. METALS Our explosives break the rock to begin the process of extracting iron, copper, silver, gold, nickel and other metallic minerals. STONE Hundreds of quarry operations utilize our products to produce the stone and aggregates used to make concrete and other building materials. CONSTRUCTION Our explosives are used whenever rock is encountered in road-building, pipeline construction and other infrastructure projects.

18 Who Are We? Our Organization Our Customers Our Products Our Services Our People COAL We provide the explosives used to extract the coal that fuels electrical power plants. METALS Our explosives break the rock to begin the process of extracting iron, copper, silver, gold, nickel and other metallic minerals. STONE Hundreds of quarry operations utilize our products to produce the stone and aggregates used to make concrete and other building materials. CONSTRUCTION Our explosives are used whenever rock is encountered in road-building, pipeline construction and other infrastructure projects. SEISMIC And we provide the energy source for oil and gas exploration.

19 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People Many tons of rock must be broken to begin the process of extracting the iron, copper, lead, nickel and many other minerals needed to build your car.

20 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People Your electricity probably comes from a generating plant fueled by coal that was mined using explosives or a power plant built with the help of explosives.

21 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People Your cell phone and computer contain a variety of different minerals. Most of them were extracted from ore-bearing rock a process that required the use of explosives.

22 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People You drive on roads that are built using massive quantities of blasted rock that are processed to make cement, concrete, asphalt, sand, gravel and other rock products.

23 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People Your home is built using tons of material acquired with the use of explosives: steel, iron, copper, zinc, nickel, gypsum, cement and aggregates to name a few.

24 Your Life is a Blast Our Organization Our Customers Our Products Our Services Every day, 15 million pounds of explosives are used in North America to extract the minerals we need. Our People Even the foods you eat contain mineral ingredients or depend on processing and transportation machinery that would not exist, as you know them, without blasting.

25 Who Are We? Our Organization Our Customers Our Products Our Services Our People Dyno Nobel is the world s only explosives manufacturer exclusively focused on providing a complete line of commercial explosives. We produce: Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

26 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Because Ammonium Nitrate (AN) is a primary ingredient in Dyno Nobel s bulk and packaged explosives, we own and operate several strategically located plants where natural gas is converted into AN prills and solution. Dyno Nobel s ability to manufacture and transport more than 1 million tons of AN per year is vitally important to ensure that a reliable supply is available for our manufacturing facilities, distributors and customers. Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

27 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Today 95% of all explosives consumed are delivered in bulk form. At large scale mines and quarries, specially designed trucks combine the ingredients and pump or auger them into the borehole. Bulk explosives range from simple ANFO (ammonium nitrate + fuel oil) to straight emulsions and include a wide variety of ANFO/emulsion blends - each with unique performance/cost characteristics. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

28 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Where boreholes are dry and the geology is suitable, ANFO, a mixture of ammonium nitrate prills and fuel oil is the most economical and commonly used explosive. For small shots, ANFO is premixed and packaged in 50 pound bags Electric Detonators Nonelectric Detonators Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

29 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Dyno Nobel s line of packaged emulsion explosives are typically produced in chub-type cartridges from 1 to 3 inches in diameter. However, paper wrapped emulsions and larger diameter shotbags are also commonly used. Packaged emulsions are widely used in quarry and construction work. They have excellent water resistance and do not contain nitroglycerin. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

30 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators As the only remaining dynamite manufacturer in North America, Dyno Nobel recognizes that although emulsions have replaced dynamite in many applications, dynamite still has performance and reliability characteristics that make it a superior product for certain demanding blasting applications. Dynamite is also commonly used as a booster in an ANFO column. Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

31 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Although nonelectric detonators are now widely favored, many blasters still prefer electric detonators for the ability to test the circuit before firing the shot. Dyno Nobel s electric detonators are manufactured in a range of precise millisecond and long period delays. This allows the blastholes to detonate in a predetermined sequence to control ground vibration and improve rock fragmentation. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

32 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Nonelectric detonators utilize a plastic tube to carry a signal to the detonator instead of a pair of wires. The inside wall of the tube is coated with a reactive powder. When ignited, the shock wave travels inside the tube at 7000 ft per second to the detonator. The major advantage of nonelectric initiation is its immunity to potential misfires caused by radiofrequency energy or other stray electrical charges. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

33 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Instead of pyrotechnic delay elements, electronic detonators utilize microchips to deliver more precise timing to improve blasting results. Dyno Nobel s DigiShot electronic initiation system is an important advance in technology, enabling users to achieve accurate benefits of electronic initiation systems with the easy connections of traditional nonelectric shock tube systems. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

34 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Virtually all of today s bulk explosives (and some packaged explosives) are not detonator sensitive. That is, a standard strength detonator fired in the explosive will not cause it to detonate. Boosters amplify the detonator s energy to initiate a reliable full-order detonation in the explosive column. Dyno Nobel manufactures a full line of cast boosters in a variety of types and sizes. Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

35 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions For those who require the exceptional strength and durability of detonating cord in their initiation system, Dyno Nobel manufactures a line of reliable, high quality cord in all of the popular core weights. Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

36 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dynamite Electric Detonators The gas and oil exploration industry utilizes specialized explosives to generate an energy pulse for seismic data acquisition. Dyno Nobel manufactures a comprehensive line of seismic explosives that are in use by exploration crews worldwide. Nonelectric Detonators Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

37 Our Products Ammonium Nitrate Bulk Explosives Packaged ANFO Packaged Emulsions Dyno Nobel pioneered most of the bulk explosives loading equipment in use by the explosives industry today and has always been the leader in introducing new and innovative explosives delivery systems. Dynamite Electric Detonators Nonelectric Detonators Electronic Detonators Cast Boosters Detonating Cord Seismic Explosives Loading Equipment

38 Who Are We? Our Organization Our Customers Our Products Our Services Our People Today, blasting requires a higher level of expertise than ever before. To meet that need, Dyno Nobel offers an extensive menu of blasting services that include: Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult

39 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult Our highly trained technical staff utilizes the latest generation of blast design software to aid us in improving your blasting results. We can provide complete documentation and help with record keeping, analysis of blasting results and total costs.

40 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult When Dyno Nobel provides shot loading service, the customer gets the benefit of highly trained blasters who will load the blastholes using safe blasting processes and procedures which are specified in a blast site safety manual. State-of-the-art equipment ensures a high quality product that is loaded in a safe, efficient and professional manner.

41 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult Often the most economical way to break rock is to outsource the entire blasting program. Dyno Nobel will design, drill, load, shoot, monitor and record the blast. Complete shot service frees the customer from the burden of handling explosives, training and retaining competent blasters and from the expense of equipment and inventory as well as the high cost of insurance.

42 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult Today, reducing ground vibration, airblast and flyrock are more important than ever. Blasting sites tend to be closer to populated areas and the liabilities associated with the blast event are increasingly expensive. Dyno Nobel blasters practice state-of-the-art monitoring techniques to reduce neighbor complaints, improve community relations and minimize the customer s exposure to damage claims.

43 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult is a team of experienced and diversified explosives application specialists who work with select customers to improve their productivity and profitability. DynoConsult

44 Our Services Blast Design Shot Loading Complete Shot Service Vibration, Airblast, Flyrock Reduction DynoConsult Blasting plays a more important role than just breaking rock. The benefits of optimizing fragmentation are measurable in the downstream processes from pit to plant. DynoConsult offers a project based measure-and-manage approach that utilizes blast design to tailor fragmentation to improve the overall productivity of the plant.

45 Who Are We? Our Organization Our Customers Our Products Our Services Our People The people who work at Dyno Nobel are distinguished by their passion for the explosives industry. Dyno Nobel people have also become known as the best trained and most experienced blasting professionals in the world.

46 Continuing Education Our Organization Our Customers Our Products Our Services Our people are our most important asset and we believe in training and continuing education to help them become the most competent blasting professionals in the industry. Our People

47 Our Distribution Our Organization Our Customers Our Products Our Services Dyno Nobel products are sold through a network of experienced independent, joint venture and retail outlet distributors who combine their local knowledge with global innovation to serve their customers with the most effective blasting solutions available. Our People

48 Our Distributors

49 Where Did We Come From? Our Tradition of Innovation Alfred Nobel, inventor of the blasting cap and dynamite, founded a company in Norway to produce these revolutionary new products. The year was 1865 and this was the beginning of the organization now known as Dyno Nobel. Today, our corporate history is connected to almost every organization that made significant breakthroughs in explosives technology. Many of these technology advancements resulted in the safer use of explosives and countless lives saved.

50 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems The history of explosives in mining begins with black powder, also called gunpowder. It was the only explosive used in mining for approximately 300 years, from the 1620 s to the 1920 s. Black powder made mining far more productive but was the cause of thousands of accidents. Primitive fuses were made by filling wheat straw or goose quills with gunpowder. The charge frequently detonated unexpectedly in the face of the miner who was blinded, injured or killed.

51 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems In 1831, a new method for igniting black powder was invented in England by William Bickford to replace black powder-filled goose quill fuses. Called safety fuse, it was a waterproofed, powderfilled cord that could be inserted into the blast hole. Lit with a match, it would burn at a fairly slow and predictable rate giving the miner time to move to a safe place prior to the blast. After safety fuse was introduced, mine owners and surgeons reported that the number of killed and injured in blasting accidents in the West Cornwall tin mining district decreased by 90%.

52 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems In 1846 an Italian chemist named Sobrero was experimenting with the effects of nitric acid on glycerin. An explosion occurred and the potential of nitroglycerin became readily apparent. Nitroglycerin, a clear liquid, proved far more powerful at breaking rock than black powder, and began to be used in mining and construction. At that time, however, no one fully understood its characteristics and it often exploded unexpectedly - or not at all.

53 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems Alfred Nobel, a Swedish chemist and inventor, was fascinated with nitroglycerin and finally solved the problem of how to detonate it safely and reliably by inventing the first blasting cap in the mid-1860 s. The first blasting caps consisted of an exploding cap crimped to the end of safety fuse that would be inserted into the nitroglycerin, or later, dynamite. A few years later Nobel introduced the electrically initiated blasting cap which allowed the shot to be fired from a great distance with the actual firing time under positive control of the blaster.

54 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems Because of its unpredictable nature, blasting oil (nitroglycerin) was extremely dangerous to use in mining applications until Alfred Nobel discovered a way to make it safer to handle. He found that nitroglycerin could be mixed with absorbent substances to form a putty-like material that could be wrapped into paper cartridges. He named it Dynamite. It was far more stable, easier to handle yet retained the rock-breaking power of nitroglycerin. Dynamite quickly replaced blasting oil. Alfred Nobel s original Norwegian company is now known as Dyno Nobel.

55 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems In the 1950 s it was known that a fuel could be mixed with ammonium nitrate, a widely used agricultural fertilizer, to produce inexpensive blasting agent nearly as powerful as dynamite. This mixture, known as ANFO, was especially suitable for bulk loading in large boreholes (which dynamite was not) but it had its limitations. One is its lack of water resistance; the other is its low density.

56 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems To overcome the shortcomings of ANFO, a Utah scientist - Dr. Melvin Cook, invented and patented water-based ammonium nitrate explosives called slurry explosives. In his initial field trial he mixed the ingredients in a wheelbarrow. That being a success, unique trucks were designed to bring the non-explosive ingredients to the blast site where they could be mixed to produce a waterproof, high density explosive especially suitable for the hard rock and wet conditions encountered in iron ore and copper mining. IRECO, the company Dr. Cook founded in 1962, became part of the Dyno Nobel organization in 1984.

57 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems From the days of Alfred Nobel, electric blasting caps and/or detonating cord have been used to initiate blasts. Then in the 1970 s Per Anders Persson, a Swedish scientist, revolutionized the blasting industry with his invention of the NONEL non electric initiation system. This system utilizes a dust explosion phenomenon in an essentially empty plastic tube to trigger the detonator at the end of the tube. NONEL is relatively immune from electrical hazards and does not generate noise like the cord systems. The NONEL system was invented at Nitro Nobel a Swedish company, now part of Dyno Nobel.

58 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems The invention of emulsions, another type of waterbased explosive, revolutionized the bulk loading of small diameter boreholes, both on the surface and underground. Today, emulsion explosives dominate the explosive market. Emulsion consistency ranges from thin and free flowing to thick and waxy. Dyno Nobel, formerly IRECO, is the industry leader in emulsion formulations, chemical gassing for density control and their various delivery systems.

59 Our Tradition of Innovation Black Powder Safety Fuse Nitroglycerin Blasting Cap Dynamite ANFO Watergels NONEL Emulsions Delivery Systems Prior to the 1950 s virtually all explosives were produced in packaged form and loaded by hand. Today, of the nearly 5 billion pounds of explosives consumed in North America every year, 95% are delivered into the borehole by bulk loading methods. Companies that are now part of the Dyno Nobel organization not only pioneered bulk explosives delivery equipment, but continually develop safer, more efficient and more cost effective systems.

60 Where Are We Going? Our Corporate Values Zero Harm for Everyone Everywhere Think Customer. Everyone. Every Day. Care for the Community & Our Environment Challenge & Improve the Status Quo Value People: Respect, Recognize & Reward Deliver on Our Promises Treat the Business as Our Own

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