Exxaro Resources Limited · JSE:EXX
Exxaro Resources — Coaltrans Southern Africa May 2012
16 slides from Exxaro Resources's conference presentation, May 2012
Slide 1: Developing resources in the Waterberg
Developing resources in the Waterberg The Exxaro story Mxolisi Mgojo Coaltrans Southern Africa May 2012 1
Slide 2: Disclaimer
Disclaimer Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives of Exxaro Resources Limited (the “Company”) to differ materially from those expressed or implied in the
Slide 3: The Waterberg Coalfield
The Waterberg Coalfield Vital statistics Dimensions: • Stretches 40kms from N to S and 88kms E to W • Extends Westwards into Botswana Geological Characteristics: • Ecca group of coal deposits • 75,7 billion tons of in-situ inferred resources (Upper & Middle Ecca) • More than 50% of the remaining coa
Slide 4: Grootegeluk – history of improvement and value addition
Grootegeluk – history of improvement and value addition OC Pit (1980) GG2 (1990) GG3 (1992) GG4/5 (1996,1998) GG1 (1980) GG6 (2006) Char P1 (2007) GG7/8 (2013) Multi products = 18.5 million annual tons (pre-Medupi) Resources = 4.8 billion tons
Slide 5: Future development focus
Future development focus… 5 Power gen Ore Beneficiation Exports Reductants / CTL Mining Domestics Metals Industry Power gen Ore Reserves Co Co--gen More conventional Downstream integration Reducing the carbon mining & beneficiation… & beneficiation footprint Solar
Slide 6: Exxaro's Waterberg development plan – now to 2025
Exxaro’s Waterberg development plan – now to 2025 Phase 1: Grootegeluk Mine Phase 2: Thabametsi Mine • Brownfields mine expansion for • Greenfields development - new open Medupi power station (4 800MW) coal pit coal mine and beneficiation supply: complex also supplying Independent – 14,6Mtpa to Medu
Slide 7: A few hurdles to overcome...
A few hurdles to overcome... Key challenges 1. Environmental stewardship • Sustainable development 2. Spatial development • Local skills creation • Attract & retain employees • Social upliftment 3. Outbound logistics • Rail (affordable-): • Will it be to East, West or North? • Port: • RBCT expansion
Slide 8: Aligned stakeholder vision to unlock Waterberg infrastructure
The ‘code’ required to expedite the unlocking of the Waterberg infrastructure is an aligned Stakeholder vision Stakeholder 1. Eskom 2. Waterberg bulk commodity producers 3. Transnet Freight Rail 4. Department of Water Affairs 5. Presidential Infrastructure Co- ordinating Commission (PICC)
Slide 9: Water augmentation
Water augmentation 20 Mokolo & Crocodile River (West) Phase 1 Augmentation Project (MCWAP) 1. Phase 1: Mokolo augmentation Phase 2 • New 42km pipeline by end 2013 • Insufficient capacity to enable the envisaged developments 2. Phase 2: Crocodile augmentation • New pipeline from Vlieëpoort Phase 3 we
Slide 10: Water Demand & Supply Projections for Waterberg Region
Water Demand & Supply Projections for Waterberg Region (Ml/a) 200,000 Supply for Exxaro’s Waterberg projects will MCWAP 2 primarily be covered by MCWAP 1/2; however, Proposed Exxaro has launched a number of local initiatives Completion Final MCWAP2 Date to reduce water dependency, as well as to 160,
Slide 11: Exxaro's Waterberg Coal transportation in context
Exxaro’s Waterberg Coal transportation in context Waterberg Coal Field: 75Bn ton resource Grootegeluk Mine: IPP Multiproduct mine Matimba/ Medupi Mpumalanga (2015) Domestic Customers AMSA 11
Slide 12: The current coal logistics system is inherently constrained
The current coal logistics system is inherently constrained by its engineering design and operating processes Musina Exxaro’s reality Waterberg Feeder Waterberg Limpopo • Traverse 3 discrete rail Coal Fields Coal Coal Backbone System systems Fields Coal Export Line Lephalale • 1,000km to RBCT Swazi
Slide 13: PICC prioritised Strategic Infrastructure Projects
The PICC has prioritised Strategic Infrastructure Projects (SIP) inter alia supporting unlocking of the Waterberg rail constraints Northern Mineral Belt Eskom Road to Rail Migration State Owned Companies will play significant delivery/facilitation* roles * - guarantees, logistics, funding, infrastru
Slide 14: Multiple stakeholders seeking efficient logistics solutions
There are multiple stakeholders in the Waterberg, all seeking efficient and cost effective logistics solutions Areas of alignment 1. Waterberg Task Team 2. Facilitated by Transnet 3. Focus on logistics 4. Designing and implementing solutions for technical, operational and commercial challenges 5. Ad
Slide 15: Conclusion
Conclusion Exxaro embarked on a number of expansions in the Waterberg in recent times but to really unlock the area’s potential we need access to affordable rail and water… … which requires collaboration by all stakeholders 15
Slide 16: Thank You Questions?
Thank You Questions? 16
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