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Gujarat NRE Coking Coal LtdGujarat NRE Coking Coal Ltd
In estor Presentation September 2010Investor Presentation – September 2010
ARUN KUMAR JAGATRAMKAChairmanSeptember 2010September, 2010F
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DISCLAIMERThis presentation contains only a brief overview of Gujarat NRE Coke Ltd and its associated entities (“Gujarat") andtheir respective activities and operations. The contents of this presentation, including matters relating to thegeology of Gujarat’s projects, may rely on various assumptions and subjective interpretations which it is notpossible to detail in this presentation and which have not been subject to any independent verification.
This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties,and factors outside of Gujarat’s control, may cause the actual results, performance and achievements of Gujaratto differ materially from those expressed or implied in this presentation.
To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of theinformation in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss ordamage arising from the use of the information.
The information contained in this presentation is not a substitute for detailed investigation or analysis of anyparticular issue. Current and potential investors and shareholders should seek independent advice before makingp p p gany investment t decision in regard to Gujarat or its activities.
COMPETENT PERSON STATEMENT
The information in this report that relates to Mineral Resources and Reserves is based on information compiled byp p yMr. Kris Markowski who is a member of the Australian Institute of Mining and Metallurgy.
Mr. Markowski is employed by Gujarat NRE Coking Coal Limited.
Mr. Markowski has sufficient experience which is relevant to the style of mineralisation and type of deposit underM . Ma ows as su c e t e pe e ce w c s eleva t to t e style o e al sat o a d type o depos t u deconsideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and ore Resources’. Mr.Markowski consents to the inclusion in the report of the matters based on his information in the form and contextin which it appears.”
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SECTION A
Overview of Met CokeD d S lDemand – Supply gap
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Overview of the Met Coke market Coke and coking coal prices have almost doubled in past 12 months
40% export tax levied by China since August 2008 has little likelihood of 40% export tax levied by China since August 2008 has little likelihood ofreversal – production of coke for a surplus for export is discouraged
Poland, Russia, Ukraine, Japan, Colombia - Most of these sources supply, , , p , pp yto western hemisphere, where as the demand is in the eastern part
With Chinese Coke away from the market, there is a likely shortage ofcoke from 2011 – Difficult to meet the increasing demand supply gap
Quarterly pricing of coking coal from FY10 – adds a new dimension to thek k tcoke market
11 Mtpa of permanent coke capacity closures (primarily in Europe)enforced by the economic crises - adds to the market pressureenforced by the economic crises - adds to the market pressureF
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World Met Coke Outlook
800
900MTPA
600
700
800
300
400
500Actual production
Expected demand
100
200
300 p
Source :Internal company forecasts
02004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Met Coke demand is expected to rise by 150 to 200 MTPA by 2020 based on pig iron growth projections
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World Met Coke Imports
India is one of the top importers of Met CokeSource : GTIS, Internal company forecasts
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The scenario evolving for 2010
Near absence of Chinese coke for export in 2010
30 MT of met coke demand in India in 2010
India needs to import 4 – 5 MT of coke in 2010of coke in 2010
Declining Inventories in Europe
I i k d Increase in coke rates and higher PCI usage
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2011 and beyond…. Once coke trade returns to pre crisis levels of around 30 mtpa (say by
2012) – difficult to meet the shortfall of China’s 14 Mtpa export capacity
Permanent closure of around 11 Mtpa coke capacity in Eastern Europe
New blast furnace capacity with no associated coke plants in India and
South East AsiaSouth East Asia….
Resulting into large merchant coke demand in India for pig iron,
ferroalloys and soda ashe oa oys a d soda as
Coking coal supply under pressure – Production from Mozambique and
Mongolia are some years away and will come at a high price
(infrastructure in these countries at nascent stage)
Are we staring at a
met coke shortage??
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SECTION B
GUJARAT NRE COKE LIMITED
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A SNAPSHOT
Largest independent producer of Metallurgical Coke in India
Listed on the Bombay and National Stock Exchanges, with a markety g ,capitalisation of around USD 0.70 billion (No. of shareholders 1,60,000)
Profit earning and dividend paying with strong financials and credit rating ofAA‐ for long term borrowing and PR1+ for short term borrowing.AA for long term borrowing and PR1+ for short term borrowing.
Met Coke capacity 1.25 million tons, being increased to 4 million tons by2014/15.
The only Indian Company to have exported LAMC from India (to Argentina,Brazil, South Africa & Europe).
Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999certification
Rated one of the top 10 company by 10‐years profit performance in the latestedition issued by Business Today on India’s Most Valuable Companies
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Our Presence inOur Presence in India
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1Plant at Bhachau, Gujarat
Plant at Khambalia, Gujarat
2KANDLA PORT
2, j
3Plant at Dharwad, Karnataka
4Proposed Plant, Nayudupeta, Andhra Pradesh
3GOA PORT
NEW MANGALORE PORT
4KRISHNA PATNAM PORT
4 Andhra Pradesh
5Registered Office, Kolkata
6 Corporate Office, Ahmedabad
PORT
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GNCL OPERATIONS…
LOW ASH METALLURGICAL COKE
Waste Heat Recovery Power Plants
HARD COKING COAL (NSW, AUSTRALIA)
RESOURCES 573 MMT
METALLURGICAL COKE
1.25 MMTPAKhambhalia* 15 MWBhachau* 15 MWDharwad* 30 MWTotal 60 MW
Gujarat NRE Coking Coal Ltd(ASX: GNM)
STEEL UNITTMT BARS : 0 311 MMTPA BHACHAU UNIT
KHAMBALIA UNIT0.358 MILLION MTPA
Wind Power 87.5 MW
(ASX: GNM)
NRE NO. 1 – 315 million tonnesNRE Wongawilli – 258 million tonnes
TMT BARS : 0.311 MMTPA 0.324 MILLION MTPA
Coal Washeries DHARWAD UNIT0.25 MILLION MTPA
(Leased)DHARWAD UNIT
0. 324 MILLION MTPA
Khambalia 0.75 Bhachau 0.75 Dharwad * 0.90
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In Australia In India* Under implementation
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GUJARAT NRE COKE LIMITEDListed on NSE & BSE in India100% 4 20%Listed on NSE & BSE in India
Gujarat NRE Limited Pluton Resources Ltd.
100% 4.20%
23.53%
Pike River Coal Ltd. Wonga Coal Pty Ltd Exploration tenements in Australia
7.56% 100%
9.71%
Coal Mine in New Zealand. Coal off-take for 400,000
MTPA
Gujarat NRE Coking Coal Ltd
Listed on ASX: GNM
42%
Rey Resources Ltd Gujarat NRE Resources NL
12% 100%
Exploration tenements in
Australia, Chile
NRE No. 1 315 MT
Gujarat NRE FCGL Pty Ltd
NRE
100%
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& Peru NRE Wongawilli
258 MTInternational Operations 13
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BOARD OF DIRECTORS
Mr. Girdharilal Jagatramka
The main promoter of GNCL. Has more than five decades ofbusiness experience
Mr. Girdharilal JagatramkaChairman Emeritus
25 years of professional and management experience All India 1st rank gold medalist Chartered Accountant Director of Pike River Port Kembla Coal Terminal NSW Mineral
Arun Kumar JagatramkaChairman & Managing Director
Director of Pike River, Port Kembla Coal Terminal, NSW MineralCouncil and Australian Coal Research Association
Appointed as an honorary NSW Sydney Ambassador to India
10 years of experience in management and administration
Mrs. Mona Jagatramka
10 years of experience in management and administration Active in the management & human resources for Gujarat NRE
Group Also on the board of Gujarat NRE Coking Coal Limited
gNon-Executive Director
More than 32 years of experience in the field of Organisational Management, Business Planning, Operational and Commercial Functions in reputed Industrial Houses of India.
Mr. Rajendra Prasad JainExecutive Director
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BOARD OF DIRECTORS (contd..) Former President of ICSI
Mr. Chinubhai R Shah
Former President of ICSI At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila
Pharmaceuticals Ltd., Apollo Hospitals International Ltd., GujaratState Electricity Corpn. Ltd., etc.
Also the Chairman of India Renal Foundation.Non-Executive Director
Former CMD of IIBI Former Executive Director of UTI Mutual Fund. Holds directorship of various reputed Listed Companies viz. ITC
Dr. Basudeb SenNon-Executive Director
Ltd., South Asian Petrochem Ltd., etc.
Leading medical practioner Past District Governor of Lions Club International
Dr. Mahendra Kumar LoyalkaNon-Executive Director
Past District Governor of Lions Club International
Former CMD of Kudermukh Iron Ore Company Ltd.
Mr. Murari SanangulyNon-Executive Director
Presently on the Board of Coal India Ltd.
Eminent Chartered Accountant
Mr. Subodh Kumar AgrawalNon-Executive Director
Eminent Chartered Accountant Presently Member of Central Council of ICAI. Chairman, Committee for members in Industry (ICAI)
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SHAREHOLDING PATTERN
Sl. Particulars % of
47%25%
No. Holding1 Promoter Group 47.052 Banks, Mutual Funds & 28.25 28%,
FIIs 3 Indian Public and others 24.70
Total 100.00
Promoter Group
Banks, Mutual Funds & FIIsTotal 100.00
Listed on BSE & NSE
Indian Public & Others
Listed on BSE & NSE Script Code: • For Ordinary Equity Shares: BSE – 512579 ; NSE - GUJNRECOKE ISIN no. - INE110D01013 • For B Equity Shares (DVR Shares) : BSE – 570003; NSE - GUJNREDVR ISIN no. - IN9110D01011
Face Value : Rs. 10 per share Market Capitalization: Approx USD 0.70 Billion
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PERFORMANCE OF LAST 5 FINANCIAL YEARS
1600
1200
1400
600
800
1000
Rs.
In C
rore
s
200
400
600R
0Year Ended31.03.2006
Year Ended31.03.2007
Year Ended31.03.2008
Year Ended31.03.2009
Year Ended31.03.2010
T EBITATurnover EBITA
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LONG TERM NRE SHARE PRICE COMPARED WITH NIFTY(ADJUSTED FOR BONUS ISSUES)(ADJUSTED FOR BONUS ISSUES)
1,400.00 8000
1,000.00
1,200.00
6000
7000
800.00
4000
5000
GNCL(LHS)Nifty (RHS)
400.00
600.00
2000
3000
Nifty (RHS)
0.00
200.00
0
1000
0 00
31.01.06 22.11.07 25.03.08 29.12.09 05.01.10 05.03.100
NRE has outperformed the NIFTY in last 5 years 18
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DVR SHARE PRICE COMPARED WITH NIFTY
44 00 8000
GNCL DVR Shares (LHS) Nifty (RHS)
42.00
44.00
6000
7000
8000
38.00
40.00
4000
5000
34.00
36.00
2000
3000
32.00
34.00
27-May-10 1-Jun-10 24-Jun-10 30-Jul-100
1000
Note: The Differential Voting Rights Shares (DVR) got listed on 26.05.2010, since then the NRE DVR shares has outperformed NIFTY
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PHENOMENAL INVESTOR RETURNS
Financial Year Bonus Ratio Record Date Allotment
1995/96 11:10 26 Nov 1996 23 Dec 19962001/02 1:2 30 May 2003 16 Jun 20032002/03 1:2 21 Apr 2004 30 Apr 20042003/04 1:1 10 Feb 2005 12 Feb 20052004/06 1:1 30 Sep 2006 18 Oct 20062007/08 2:5 20 Oct 2008 31 Oct 20082007/08 2:5 20 Oct 2008 31 Oct 20082008/09 1:10
(DVR Shares)7 May 2010 10 May 2010
Gujarat NRE Coke has been identified as the 4 best stock of the decade (Times of India)
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If a person would have invested Rs. 1 in this stock on January 3, 2000, hisvalue of investment on December 23, 2009 would be Rs.106 (Source:Economic Times)
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GROWTH PLAN – PRODUCTION FOCUS
PRODUCTION CAPACITY (MMTPA)
4.004 004.505.00
PRODUCTION CAPACITY (MMTPA)
2.252.503.003.504.00
0 13 0 240.50 0.68 0.68 0.68
1.06 1.25
0 501.001.502.00
0.13 0.24
0.000.50
2001
-02
2002
-03
2003
-04
2004
-06
2006
-07
2007
-08
2008
-09
2009
-10
2011
-12
2014
-15
2 2 2 2 2 2 2 2 2 2
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Gujarat NRE – Transforming into a leading k tcoke exporter
Brazil In addition to meeting the Brazil Argentina France
In addition to meeting theincreasing domestic cokedemand, Gujarat NRE Coke has
France Italy Japan
been tapping the opportunity inmet coke export market – to fillin the void created by global Japan
South Africa
y gshort supply
With increased Coke capacity and a secured source of Hard Coking Coal from its own mines
Gujarat NRE is a reliable Source of Met CokeGujarat NRE is a reliable Source of Met CokeFor
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SECTION C
INDIAN STEEL INDUSTRY VISION 2020 –
AndAnd COKING COAL OUTLOOK
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Steel Development PatternStee e e op e t atte
India’s longIndia s long term steel development pattern ispattern is similar to most countries, following the same patternsame pattern of more than a century old
China has already reached its peak in growth rate, while India is on the rise…..
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China & India Driving Steel growthSteel Production forecast by Region / Country (in Million Tonnes)
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INDIAN STEEL VISION – 2020
300 MILLION TONS STEEL CAPACITY Crude Steel Production in 2009 – 55 million tonsCrude Steel Production in 2009 55 million tons
Potential for ramp up to 300 million tons by 2019-2020- conservative estimate at 200 million tonnes
222 MOUs have been signed with various States for the planned increase in capacity
Proposed Investment US $ 220 billion Proposed Investment US $ 220 billion
India has potential access to: Infrastructure – Power, Ports, Surface Transportation etc
Human Resources
Capital
Raw materials – except COKING COAL 26
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Urgent need for Coking Coal to meet India’s g gprojected Steel growth
I i M t C lMT
2020 Steel increase Increase in Met Coal Demand by 2020
10%pa 100 61p12%pa 135 8415%pa 202 13220%pa 361 226
• 10%pa will see a doubling of import demand• 20%pa increase is equal to current seaborne market for all Met Coal• Major increase in all forms of met coal
PCI = 2.1 x today’s markety HCC = more in demand at higher rates due to rising productivity ~ doubling
market
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Present and Future Coking Coal
MT
gImports by India
MT
Strong demand from Steel Industry and domestic unavailability causing a surge in importsSource: CRISIL, internal estimate
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Major Coking Coal Supplying Countries of India
Source: ISMW
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Australian Hard Coking Coal Producersg
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Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10
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SECTION DSECTION D
GUJARAT NRE COKING COALGUJARAT NRE COKING COAL LIMITED
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Gujarat NRE Coking Coal Ltd - Performance at a Glance
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GUJARAT NRE COKING COAL LTD OVERVIEW
Peabody
ASX listed hard coking coal producer
» Market capitalisation of ~A$0.6 billion
W. TahmoorAppin
Westcliff Northcliff
SouthernBHP Illawarra Coal
Metropolitan
Xstrata Tahmoor
100% owner of two underground mines in NSW, Australia
» NRE No. 1 & NRE Wongawailli
Wollongong
Port Kembla
Port Kembla coal loader 18 Mtpa
Sutton Forest
Berrima
DendrobiumCoalfield
NRE No. 1
NRE WONGAWILLI
JORC reserves of 99.8Mt and resources of 572.9Mt
All ROM coal sold under contract to major
Kiama
loade 8 MtpaForest proposal
All ROM coal sold under contract to major shareholder for captive use (Gujarat NRE Coke)
» Commercial terms based on market formula
All product exported through Port Kembla Coal Terminal
» Regional rail and port infrastructure capacity of 18Mt
Targeting to increase ROM production from 1.3Mtpa to 6.0Mtpa over the next 4 years
» Target long term cash operating cost of US$39/t FOB (pre royalties, ROM)
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GNCCL OVERVIEW (contd..)
Capital structure (as per 31 May 2010)
Share Price (A$) 0.58
Shareholding patternShare Price (A$) 0.58
Shares (m) 889.7
Options (m) 45.10
Market Capitalisation (A$) 516 03
14%
9%
Share price performance (LTM)
Market Capitalisation (A$) 516.03
Debt (m) 140.0
77%
Gujarat NRE Coke Limited & AssociatsFinancial Institutions Nminees &OthersOthers
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EXPERIENCED BOARD Board
Arun JagatramkaChairmanB C (H ) FCA AIMM
Chartered Accountant with 25 years of professional and management experienceDi t f Pik Ri P t K bl C l T i l NSW Mi l C il B.Com (Hons), FCA, AIMM Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council and Australian Coal Research Association
Appointed as an honorary NSW Sydney Ambassador to India
Maurice AnghieDirector & Audit Chairman
Experienced financially qualified Professional with commercial skills and legal/regulatory and governance expertiseDirector & Audit Chairman
BBus, FCA, FCPA, MAICDg g y g p
Audit partner in chartered accounting firms for over 20 years Current Director of Aditya Birla Minerals Limited
Don CarrollDirectorB E (Mi i ) MA IMM
Over 30 years experience in the international mineral industries Former senior executive with BHP Biliton where he held the positions of
Vi P id t I t R l ti A t li G l M M k ti B.E (Mining), MAusIMM,MAIDC
Vice President Investor Relations Australia, General Manager Marketing Asia, President BHP Billiton Japan, President BHP Billiton India.
Andrew FirekDirectorM Sc Ph D FAusIMM FAIE
25 years experience in mining, mineral processing, construction, commissioning and operations of coal, base and precious metals plants in Europe, Africa and AustraliaM.Sc, Ph D, FAusIMM, FAIE Europe, Africa and Australia
Former Group Leader at the CSIRO, Division of Fossil Fuels in Sydney and was engaged in developing technologies to produce liquid fuels from coal
Former founding Executive Director of Allegiance Mining NL and current Director of Coalworks Limited
Mona JagatramkaDirectorB.Sc. (Hons)
10 years of experience in management and administration Active in the management & human resources for Gujarat NRE Group Also on the board of Gujarat NRE Coke Limited 35
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STRONG MANAGEMENT STRUCTUREBoard of Directors
Management CommitteeManagement Committee
Arun JagatramkaS Murari
P R KannanSanjay Loyalka
Head of Operations
St BSteven Bow(28 years Underground Coal experience with
BHPB)
Operations Manager NRE Wongawilli
Head of Corporate Committee
Group Engineering
Manager
Chief Financial Officer
Company Secretary/ IT Manager
Operations Manager NRE
No.1
Phil Wakeford Dr. Chris Harvey Steven Coffee Naveen K
Sanjay Sh
Rhys Brett
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(33yrs UG Coal with Oakdale Collieris
Ltd & BHPBIC)
(35yrs coal industry with NSW Dept.
Minerals and Resources)
(28yrs UG coal in NSW Coal fields
with BHPB)
Kumar Nanda
(16yrs Snr Accounting)
Sharma(12yrs Business Management)
(8yrs UG Coal with Anglo,
Centennial & Xstrata)
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NRE No. 1 MINE
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NRE NO.1 COLLIERYNRE NO.1 COLLIERY
Located in the Southern Coalfields of NSW» ~10km north of Wollongong» ~20km from Port Kembla Coal Terminal
One of the oldest operating collieries in Australia» Formerly South Bulli (Owned and operated by Shell)
Premium quality hard coking coal
C it t i d ti t 3 0 Mt b 2015 Capacity to increase production to >3.0 Mtpa by 2015
Currently using a board and pillar mining method with plans to install longwall equipment by Dec 2011
Approximately A$240 million invested (to March 2010) with plans to invest a further A$200 million to March 2013
JORC f 92MT d R f 314MT JORC reserves of 92MT and Resources of 314MT
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No. 1 Mine No. 1 Mine -- StrategyStrategygygy
Long Term futureLong Term future Coal quality/productive/correct cost profile/safety/peopleCoal quality/productive/correct cost profile/safety/people Coal quality/productive/correct cost profile/safety/peopleCoal quality/productive/correct cost profile/safety/people
Coal QualityCoal Quality 300300 mtmt Resources and 100Resources and 100 mtmt mineable Reservesmineable Reserves 300 300 mtmt Resources and 100 Resources and 100 mtmt mineable Reserves.mineable Reserves.
ProductivityProductivity NewNew longwalllongwall 35003500 tphtph peakpeak
3.0 3.2
3 0
4.0
New New longwalllongwall 3500 3500 tphtph peak peak capacitycapacity
Trunk conveyors 4000 Trunk conveyors 4000 tphtph Gate rd conveyors 3500Gate rd conveyors 3500 tphtph
1.51.8
2.0
3.0
Mt
Gate rd. conveyors 3500 Gate rd. conveyors 3500 tphtph LW start Dec. 2011LW start Dec. 2011 Targeting 3 Targeting 3 mtpamtpa by FY 14by FY 14
0.5 0.7
0.0
1.0
FY10 FY11 FY12 FY13 FY14 FY150 3 5For
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Journey to DateJourney to Dateyy
The first 5 years Re-established a very run down mine. Re established a very run down mine. Decided on mine plans. Started Wonga Mains Jan 2008 Purchased 4 x CM’s, SC’s, LHD’s etc Purchased 4 x CM s, SC s, LHD s etc
Last 12 months Coal production in Wonga Mains Coal production in Wonga Mains
started RMains drift started Commissioned Wonga Mains 1 belt Commissioned Wonga Mains 1 belt
(4000 tph belt) Continued Bulli Seam operations
O & 311 Panel complete 310 Panel O & 311 Panel complete, 310 Panel commenced
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Work in Progress
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NRE No.1 MINE RESOURCES AND RESERVESNRE No.1 MINE RESOURCES AND RESERVES
Potential Reserves
As per mine plan
Resources (Mt) Reserves (Mt) (Mt)* (Mt)**Seam Measured Indicated Inferred Total Proven Probable Total TotalBulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4 6.4 35.8
Balgownie — 34.1 41.5 75.6 — — — — —Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6 29.6 92.2
Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0 36.0 128.0
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*Potential reserve of 36.0 million is additional to 92.0 million JORC reserves and based on mine plans drawn‐up from inferred resources. Hence is not a part of JORC reserves.**Total of Reserves and Potential Reserves.
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NRE WONGAWILLI MINENRE WONGAWILLI MINE
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NRE WONGAWILLI COLLIERY Located in the Southern Coalfields of NSW
» ~14km south-west of Wollongong20k f P K bl C l T i l» ~20km from Port Kembla Coal Terminal
Consolidates 3 Collieries» Elouera Colliery (previously owned by BHP)y (p y y )» Avondale Colliery » Part of the Huntley Colliery
Premium quality hard coking coal Premium quality hard coking coal
JORC reserves of 7.8Mt and resources of 258Mt
ROM coal transported ~20km via rail to the Port Kembla Coal Terminal
A i t l A$120 illi i t d (t M h 2009) ith l t Approximately A$120 million invested (to March 2009) with plans to invest a further A$175 million to March 2013
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NRE Wongawilli Mine NRE Wongawilli Mine -- StrategyStrategy
Long Term future Coal quality/productive/correct cost profile/safety/peopleq y p p y p p
Coal 260 mt Resources 260 mt Resources
Productivity Upgraded longwall 3000 tph
3.03.0
4.0
Upgraded longwall 3000 tph peak capacity
Trunk conveyors 4000 tphG 0 8
1.6 1.71.5 1.4
2.0Mt
Gate rd. conveyors 3500 tph New LW domain to start in 2014. Targeting 3 mtpa by FY 14
0.8
0.0
1.0
FY10 FY11 FY12 FY13 FY14 FY15For
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NRE Wongawilli Mine NRE Wongawilli Mine –– miles traversedmiles traversed
BackgroundBackground Purchased by NRE in Dec 2007Purchased by NRE in Dec 2007 Development started March 2008.Development started March 2008. Purchase of 2 x CM’s, SC’s etcPurchase of 2 x CM’s, SC’s etc
L t 12 thL t 12 th Last 12 monthsLast 12 months LW production commenced.LW production commenced. Nebo Access commenced.Nebo Access commenced. Finalise Nebo longwall designsFinalise Nebo longwall designs Finalise Nebo longwall designsFinalise Nebo longwall designs Exploration Program completed for Wonga Exploration Program completed for Wonga
SouthSouth New Car parks constructedNew Car parks constructed New Bathrooms being constructedNew Bathrooms being constructed Surface screen/sizer constructed and Surface screen/sizer constructed and
commissioned.commissioned. Wonga South Portals commencedWonga South Portals commenced Wonga South Portals commencedWonga South Portals commenced New power supply for WW commenced.New power supply for WW commenced. Longwall Updgrade contarct signed.Longwall Updgrade contarct signed.
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Work in ProgressWork in Progress
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NRE WONGAWILLI COLLIERY RESERVES & RESOURCESNRE WONGAWILLI COLLIERY RESERVES & RESOURCES
Potential Reserves
As per mine plan
Resources (Mt) Reserves (Mt) (Mt)*p
(Mt)**SeamMeasured Indicated Inferred Total Proven Probable Total TotalBulli — 8.0 25.0 33.0 — — — — —
W ilWongawilli 21.0 16.0 114.0 151.0 2.7 5.1 7.8 23.0 30.8
Tongarra — — 74.0 74.0 — — — — —Total 21.0 24.0 213.0 258.0 2.7 5.1 7.8 23.0 30.8Total 21.0 24.0 213.0 258.0 2.7 5.1 7.8 23.0 30.8
*Potential reserve of 23.0 million is additional to 7.8 million JORC reserves and based on mine plans drawn‐up from inferred resources. Hence is not a part of JORC reserves.
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f p f**Total of Reserves and Potential Reserves.F
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NRE WONGAWILLI COLLIERY
New Joy continuous miner that arrived at Wongawilli on March’10March’10
Longwall with its shearer
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COAL QUALITY
Typical washed coal quality
Bulli Wongawilli
Average range for
coking coal1
Ash (%) 9.6 10.0 7.0 – 10.5
CSN (swell 5 5 >9 0 6 0 – 9 0
Gujarat hard coking coal compares well against Bo en BasinCSN (swell
index) 5.5 >9.0 6.0 9.0
Inherent Moisture (%)
0.8 0.9 1.02
Volatile Matter (%)
21.7 24.7 17.5 – 34.0
against Bowen Basin prime hard coking coal on almost all quality parameters
Rank (Ro Max) 1.3 1.2 0.95 – 1.70
Fluidity (ddpm) 1,800 3,000 100 – 20,000
Sulphur (%) 0.38 0.59 0.375 – 0.750
q y p
Note:1 B d B B i l lit ti t
Source: Australian Coal Association, Company reports, Broker reports
Phosphorous (%) 0.039 0.010 0.005 – 0.080
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1 Based on Bowen Basin coal quality estimates2 Based on inherent moisture content of Peak Downs coal
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INFRASTRUCTURE POSITIONING Port Kembla Coal Terminal remains an
unconstrained coal export port» 13.2Mt throughput in 2008
Shi l di i i 18 M
Gujarat NRE holds 16% equity inPort Kembla Coal Terminal and
» Ship loading capacity is 18 Mtpabeing increased to 25 Mtpa
ROM coal from NRE No. is transported NRE No. 1
a seat on the Board.
via truck haulage to Port Kembla» Proven ability to transport up to 3
Mtpa ROM coal from Wongawilli is ROM coal from Wongawilli is
transported via rail to Port Kembla» Historically up to 2 Mtpa has been
transported using existing
Wollongong
Port KemblaNRE
Wongawilli
infrastructure» The capital program budgets for an
infrastructure upgrade that will allowfor the transport of 4 Mtpa
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for the transport of 4 Mtpa
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OFFTAKE PARTNER – GUJARAT NRE COKE All ROM coal production sold to Gujarat Coke
Sold on commercial terms based on a market formula calculated as follows:» FOB Coking Coal Price based on the JSM BHP Goonyella benchmark» To arrive at ROM price ,Benchmark HCC price is adjusted for :
» yield ( coking ~50 to 55%, high ash coking ~20 to 25% & rejects ~25% ) » washing costs & waste placement costs» actual ocean freight added to come to C&F ROM coal price.g p
Since the commencement of production the ROM coal price received based on above mechanism has resulted in being between 52% and 60% of the benchmark hard coking coal price
» FY09/10 annual benchmark HCC price FOB US$128 FOB ROM US$75» FY09/10 annual benchmark HCC price FOB US$128, FOB ROM US$75» FY 10/11 :
» April-June 10 Qtr benchmark HCC price FOB US$200, FOB ROM US$115» July – Sept 10 Qtr benchmark HCC price FOB US$225, FOB ROM US$125
Gujarat NRE Coke is the largest independent producer of Metallurgical Coke in India» Listed on the Bombay and National Stock Exchanges» Market cap of ~US$ 0.70 billion» Only Indian company to have acquired coking coal mines in Australia» First Indian company to have exported LAMC from India (to Argentina, Brazil, South Africa
& Europe)
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GROWTH PLAN – PRODUCTION FOCUSGROWTH PLAN PRODUCTION FOCUS
FUTURE CAGR 39.6%
HISTORICAL CAGR 50.7%
MT
Wongawilli Longwall Introduced
NRE 1 L g ll I t d ti
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NRE 1 Longwall IntroductionWongawilli Longwall UpgradePROJECTED CAGR 43.7% OVER 8 YEARSF
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GROWTH PLAN – CAPEXGROWTH PLAN CAPEX
Current Status : NRE no 1:» Will result in > 4mtpa capacity mine» Wonga Mains well advanced» 4 x New CM’s purchased» 4 x New CM s purchased» New 4000 tph conveyor commissioned.» Order for new 3500 tph Joy LW placed
Current Status : Wongawilli» Will result in > 4mtpa capacity mine
Wonga South Portals started» Wonga South Portals started» 2 x New CM’s purchased» Order for Joy LW upgrade placed
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Accolades
Premier’s NSW Export AwardsThe Australian Export Awards is a nationalawards program which recognizes and honorsawards program which recognizes and honorsexport excellence thorough innovation andcommitment. The Company won the 2009Premier’s NSW Export Award in Minerals andEnergy sector and became one of the finalists atNational level.
In April 2008, appointed honorary NSW“Sydney Ambassador” to India by theSydney Ambassador to India by thePremier of NSWThis year declared as the “Person of theYear 2009” by the Illawarra Mercuryy y
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THANK YOUTHANK YOU
Mr Arun Kumar JagatramkaMr Arun Kumar JagatramkaChairman
Gujarat NRE Coking Coal LimitedLot 1 Princes Highway (Cnr Bellambi Lane)
Russell Vale, NSW 2517, AustraliaPh: +61 2 4223 6836
Email: arun@gujaratnre.comwww.gujaratnre.com 57
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