Slide 1: South Africa Energy Coal – Klipspruit Site Tour Presentation
28 September 2016 South32 Limited For personal use only (Incorporated in Australia under the Corporations Act 2001 (Cth)) (ACN 093 732 597) ASX / LSE / JSE Share Code: S32 ISIN: AU000000S320 south32.net SOUTH AFRICA ENERGY COAL – KLIPSPRUIT SITE TOUR PRESENTATION South32 Limited (ASX, LSE, JSE: S32)
Slide 2: Klipspruit Investor Tour
For personal use only KLIPSPRUIT INVESTOR TOUR • 28 SEPTEMBER 2016
Slide 3: Important Notices
• IMPORTANT NOTICES • This presentation should be read in conjunction with the Annual Financial Report as at 30 June 2016, Financial Results and Outlook – Year ended 30 June 2016, Quarterly Report for June 2016 and any other announcements made by South32 in accordance with its continuous disclosure
Slide 4: South Africa Energy Coal Resource and Reserve Statement
• SOUTH AFRICA ENERGY COAL RESOURCE AND RESERVE STATEMENT Coal Resources For personal use only As at 30 June 2016 South32 Measured Coal Resources Indicated Coal Resources Inferred Coal Resources Total Coal Resources Interest Mining Kcal/k Kcal/k Kcal/k Kcal/ Deposit (1)(2) Method Coal Type Mt % Ash
Slide 5: Sustainability Performance
• SUSTAINABILITY PERFORMANCE • One fatality at South Africa Energy Coal in FY16: Total Recordable Injury Frequency Rate for SA Energy Coal For personal use only (per million hours worked) ⎯ Klipspruit (June 2016) 4.5 3.5 • Delivering a step change in safety for South Africa Energy Coal by: ⎯ Buildin
Slide 6: Committed to Transformation
COMMITTED TO TRANSFORMATION • Committed to the National Transformation Agenda as enacted in Klipspruit workforce diversity For personal use only the B-BBEE Act and the Mining Charter Black South African • Accelerated the implementation of key transformation initiatives: Women 65% ⎯ Facilitating econ
Slide 7: Community and Economic Contribution
COMMUNITY AND ECONOMIC CONTRIBUTION • We want to be trusted by society and the communities in South32 FY16 Community investment by country For personal use only which we operate 6% • During FY16, South32 contributed US$16.5M to 13% Community investment, of which US$5.0M was spent at South Africa Ene
Slide 8: Broad-Based Equity Ownership Structure
For personal use only • BROAD-BASED EQUITY OWNERSHIP STRUCTURE South321 Phembani Group2 92% 8% South Africa Energy Coal 100% 50% 100% 100% 21% Wolvekrans Phola Processing Richards Bay Coal Klipspruit Middelburg Khutala Plant Terminal (RBCT) Complex (WMC) Notes: 1. South32 has undertaken a number of
Slide 9: South Africa Energy Coal Key Metrics
• SOUTH AFRICA ENERGY COAL KEY METRICS Operating cost, including Sustaining capital FY16 Operating cost (excluding Sustaining capital) For personal use only expenditure1 Labour related 33 26% 24% 27 Transport & logistics 26 Operating unit cost, 1,137 including Sustaining capital expenditure Raw mate
Slide 10: South Africa Energy Coal
SOUTH AFRICA ENERGY COAL Klipspruit production For personal use only (Mt) Middelburg 7.2 7.3 7.8 eMalahleni WMC production 15.5 15.1 13.4 FY16 FY17e FY18e (Mt) Klipspruit Life Extension project - Now in Feasibility study phase FY16 FY17e FY18e - Low capital expenditure Contract type development opti
Slide 11: Wolvekrans Middelburg Complex
WOLVEKRANS MIDDELBURG COMPLEX Wolvekrans For personal use only Wolvekrans Middelburg Complex North Middlings Plant North Dump Discovery/history • Commenced production in 1982 Export Reserves • 315Mt; Reserve life: 24 years North Export Plant 6000 kCal Resources • 795Mt (Care and maintenance since Ju
Slide 12: Khutala
For personal use only • KHUTALA Khutala Discovery/history • Commenced production in 1984 Reserves • 47Mt; Reserve life: 9 years Resources • 1,323Mt • Underground bord and pillara Mining • Mining right valid until 10 Oct 2041 Saleable coal production (Mt) 10.2 8.9 8.6 8.6 Domestic 28 SEPTEMBER 2016 K
Slide 13: Klipspruit
For personal use only • KLIPSPRUIT Klipspruit Discovery/history • Commenced production in 2003 Reserves • 24.1Mt; Reserve life: 4 years Resources • 114Mt (excluding resources for Klipspruit expansion) • Single dragline; multi seam open-cut mine with a truck and shovel mini pit Mining • Mining right
Slide 14: Klipspruit Current Layout
For personal use only KLIPSPRUIT CURRENT LAYOUT Rehabilitation Area Shovel Mined Truck & Main Pit Main Pit Discard Out Area Shovel Dragline Dragline Dump Area Operation Mined out Area Mining Offices Phola Crusher Train Plant Load out Klipspruit South 28 SEPTEMBER 2016 KLIPSPRUIT INVESTOR TOUR SLIDE
Slide 15: Klipspruit Processing
• KLIPSPRUIT PROCESSING 2 For personal use only 1 4 Export Primary Secondary Tertiary Bivitec Product Mining Tip Washing Crushing Crushing Crushing Screening Stockpile Crushing to Crushing to Crushing to -250 mm -100 mm -50 mm Raw Middlings 3 Bypass Removal of Product rocks Stockpile CUSTOMER Shippi
Slide 16: South32
For personal use only SOUTH32