Q.    Will you increase your debt level?

A.    We are planning for capital efficient growth. Our aim is to keep gearing in the 30 to 35% range (it was 35.0% at 31 December 2002). We don't intend to move significantly from that range, as we exercise stringent capital discipline going forward.

Q.    What is the position with MIM's currency hedging?

A.    Currency hedging has receded as an issue for MIM. The mark to market exposure was down to $327 million at the end of January 2003. The back is being broken in the 2003 financial year. We are not replacing hedging as we deliver into the contracts.

Q.    What is MIM doing to improve the returns on its lead-zinc assets?

A.    Almost a third of MIM's revenue is derived from lead-zinc but very little profit. Increasing the returns from the lead-zinc revenues is one of the company's three main objectives, the other two being to double 2001 coal production by 2006 and increase copper production by 50% by 2007.

Pursuing a strategy of exiting loss-making European zinc smelters, we have sold one (Duisburg) and closed the other (Avonmouth by March 1 2003).

We are conducting a feasibility study into producing zinc metal at the McArthur River mine site using the MIM Albion Process technology, thus greatly reducing the realisation costs (transport and smelting/refining) that comprise up to 60% of total production costs. This has the potential to make MIM the lowest cost zinc metal producer in the world.

Q.    When can shareholders expect an increase in dividends?

A.    The company has maintained dividend payments through periods of low prices, low profitability and high capital expenditure, despite the extremely low prices for our products.

It is a fundamental objective of the company to increase shareholder value, including dividends. Decisions on dividends are matters for the Board.

The company has been strengthened by the significant gains that have been made in output, productivity and cost reductions, and further improvements in operating performance are being pursued. As we achieve further improvement in financial performance, we will have the capacity to increase dividends.

Q.    Is MIM disadvantaged by being a mid-sized company in the light of the consolidation occurring in the global mining industry?

A.    No. At MIM we are focused on improving shareholder returns.

The success of our expansions, upgrades, new projects and improved operating performances shows that we can be extremely competitive and achieve good value growth. As a medium sized company with flexibility and acknowledged technical capability, we are attracting continued interest from smaller entrepreneurial mining and exploration companies which see us as potential partners in project development.

Q.    In November 2002, MIM announced that following an unsolicited approach by Xstrata it was in early stage discussions with Xstrata in relation to a transaction which could lead to a change of control of MIM. What is the latest position?

A.    The discussions are continuing and an announcement will be made when the outcome is known. While management time and resources are continuing to be involved in this process, the company remains focussed on our objectives of continuing to improve the performance of our operations and pursuing value adding growth opportunities.