INTERVIEW WITH ANDREW DRUMMOND, MANAGING DIRECTOR OF MINEMAKERS LIMITED (MAK)

“Boardroom Radio Broadcasts Live From Kalgoorlie”

http://www.brr.com.au/event/49161

WEDNESDAY, AUGUST 6, 2008, 1:30 PM.

            BRR    Today on Boardroom Radio, we are at Diggers and Dealers catching up with the Managing Director of Minemakers, Mr. Andrew Drummond. Andrew,

10                    welcome to Boardroom Radio.

            MAK     Yes, hi, Joel. Glad to see you again and thanks for being available.

            BRR    It has been a hectic conference, but we are getting there. Yesterday, Minemakers’ shares fell strongly. Perhaps you could give our listeners a few

15                    reasons for what you think was the cause behind that.

            MAK     Well, I guess, the (inaudible) (0:00:23) yesterday are just sort of the market conditions. It was a particularly bad day on the market. A lot of stocks were down. There was general moaning and groaning here up at the conference, but I do see in this morning’s paper that it has been announced that Incitec

20                    Pivot, who are of course Australia’s only vertically integrated fertilising company, they have announced a 20-for-one split. Their share price has gone down. The situation at present is that, with respect to Minemakers and Incitec Pivot, is we catch a cold basically. It is totally irrational really, Joel, but at the end of the day, we will get ourselves into production. We are not hedged in all

25                    sorts of things, and really, whatever they do is their business. They have got nothing to do with what we do in our business. That does appear to be the reason for us, and hopefully, it has just been oversold and people will realise that there was just some trading rumour or whatever and it should get back to sort of real value shortly.

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            BRR    So Andrew, is there any negative news out there about Minemakers that has not been announced to the market?

            MAK     Well, now that will be bad. I am not allowed to do that. Seriously, no. All is going very well. We have kept the market fully informed. Things are actually

35                    going very nicely. We did have in our quarter report last week. The price of rock phosphate has gone up 20%. If we are on production right now, that will report straight to our bottom line which will be wonderful. It did show in a long-term outlook for phosphate. All of our drill programs are proceeding nicely. Drilling should be finished about the end of next week. That is including the

40                    extension. We are going to do some more drilling at Arruwurra with the aim of providing (inaudible) (0:01:57) and to see whether we can increase the resource that will be sorted out down there later on this year. So everything else is on track and things are looking good.

45        BRR    Of course, here at Diggers and Dealers this week, you have been out mingling in the booth. You heard anything which is relevant for Minemakers?

            MAK     I think the general thing is that there is a total disconnect between general share values and the need for world commodities at present. We have been hearing story after story about or other forecast for usage that sort of outfits are delivering or will deliver, and it simply is not being reflected in share prices at all. In a more specific thing, a couple of terrific papers on China in the outlook, just a statistic like this, about 70 million Chinese that are moving in from the farms into the cities each year. That means they are no longer

5                      producing their own food and are going to be fed. The area of land left for farming in China is steadily decreasing. If all of China lived on the ground floor, then about a third of the area of Australia would simply be covered by buildings. They are going to have to pump a heck of a lot more fertilizer into their (inaudible) (0:03:08) and the outlook for companies like Minemakers that

10                    are on to produce phosphate looks really positive. So, now I have come away feeling very bullish. There just seems to be a disconnect between share prices, not just ours but for many companies, versus the real potential to deliver needed minerals to the world, and then in turn, that will deliver profits to shareholders. So, I am just feeling very bullish longer term, and so much

15                    needed conference like this to just sort of reach out and change the mental outlook on everything and get a bit more of a real perspective away from the day-to-day grinds, Joel.

            BRR    Andrew, always a pleasure. Thanks for your time today.

20        MAK     Okay, thanks very much, Joel. All the best.

INTERVIEW CONCLUDED

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