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Press ReleaseFrontier Strategy Group Managing Director Alex Turkeltaub Discusses the Three-Way Combination of Phelps Dodge, Inco, and Falconbridge on ROBTv’s Program “SqueezePlay” (Canada) CAMBRIDGE, Mass. – (BUSINESS WIRE) – June 29, 2006 – Frontier Strategy Group Managing Director and mining industry expert Alex Turkeltaub appeared on the ROBTv Program “SqueezePlay” on June 27, 2006 to discuss Phelps Dodge's acquisition of Inco and Falconbridge. “From the perspective of Phelps Dodge, this is a deal that makes a lot of sense,” Turkeltaub noted. “This creates the fourth mining super-major to compete with Rio Tinto, BHPBilliton, and Anglo-American and it diversifies Phelps Dodge's asset and commodity base at a time when such diversity is critically important.” Mr. Turkeltaub emphasized the advantages for Phelps Dodge of becoming a multi-commodity giant, observing that “in a world where the critical risks are above-ground and companies need to invest in politically challenging places, size matters. Being a large player is extremely valuable when you're competing with state-owned companies from China, Russia, and elsewhere and negotiating with aggressive or poorly-functioning governments in Latin America, Africa, and the Former Soviet Union.” Mr. Turkeltaub also argued that Phelps Dodge will be in a better position to make future acquisitions if the proposed three-way merger goes through. “Single commodity companies are only able to invest (in new projects) at the top of their commodity’s price cycle, meaning that deals are done at a time when they are most expensive. With a diversified commodity base, Phelps Dodge puts itself in a position to make some very intelligent deals down the road when the current (commodity) price cycle ends.” Mr. Turkeltaub observed that the mining industry is following in the footsteps of the oil and gas sector, which has seen significant consolidation over the past decade. “If you look at the oil industry, consolidation has taken place for many of the same reasons with respect to the benefits of size and it is hard to argue that this has not paid off for shareholders. I think we will see further consolidation in the mining sector in the next 12-36 months.” An archive of ROBTv’s 5pm “SqueezePlay” broadcast can be found at: http://www.robtv.com/shows/past_archive.tv About Alex TurkeltaubAlex Turkeltaub heads the Former Soviet Union and Middle East Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and research firm that specializes in the above-ground geopolitical, regulatory, environmental, and social risks facing the natural resources industries. Frontier Strategy Group is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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