Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Hunter Business Chamber (May 2016)
15 slides from Whitehaven Coal's conference presentation, May 13, 2016
Slide 1: Australian High Quality Coal Fuelling Asia
Whitehaven Coal Limited HUNTER BUSINESS CHAMBER Australian High Quality Coal Fuelling Asia NEWCASTLE, AUSTRALIA 13 MAY 2016
Slide 2: Whitehaven's Costs
Whitehaven’s Costs COSTS HAVE FALLEN SIGNIFICANTLY OVER PAST THREE YEARS Whitehaven ASP and Costs ex Royalties (A$/t) 85.0 – Whitehaven’s costs are now firmly 80.0 entrenched in the first quartile of the 75.0 seaborne market 70.0 – Fully absorbed costs have fallen by 65.0 26% over three years to A$5
Slide 3: Ten Year Demand Growth
Ten Year Demand Growth COAL HAS BEEN THE FASTEST GROWING ENERGY SOURCE OVER 10 YEARS Growth in Energy Sources 2004 - 2014 (Mtoe) 1200 1000 800 600 400 200 0 Oil Coal Gas Nuclear Hydro Renewables -200 Source: BP Statistical Review 2015 3 // HUNTER BUSINESS CHAMBER
Slide 4: Five Year Demand Growth
Five Year Demand Growth COAL HAS BEEN THE FASTEST GROWING ENERGY SOURCE OVER 5 YEARS Growth in Energy Sources 2009 - 2014 (Mtoe) 800 700 600 500 400 300 200 100 0 Oil Coal Gas Nuclear Hydro Renewables -100 Source: BP Statistical Review 2015 4 // HUNTER BUSINESS CHAMBER
Slide 5: Gunnedah's High Quality Thermal Coal
Gunnedah’s High Quality Thermal Coal Thermal Coal - Ash vs Sulphur Ash (% a.d,) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 High Quality Coal 0.20 – Whitehaven produces some of the Whitehaven 0.30 highest quality coals sold in the Asian region 0.40 Hunter Valley – These high yielding, high quality 0.50 (Japan
Slide 6: Global Electricity Demand Growth
Global Electricity Demand Growth GLOBAL ELECTRICITY DEMAND FORECAST TO INCREASE BY 50% BY 2040 WITH COAL’S SHARE OVER 25% IN 2040 World Electricity Generation by Source (TWh) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 2013 2040 Coal Gas Oil Nuclear Hydro Renewables Source: IEA W
Slide 7: SE Asian Growth – Stronger
SE Asian Growth – Stronger MORE GENERATING CAPACITY BEING ADDED IN THE LONGER TERM IEA Forecast Coal Fired Electricity – Based on IEA forecasts coal fired electricity Capacity (GW) and Coal Required (Mt) 600 capacity in Southeast Asia will almost double between 2013 and 2020 and will 500 more than q
Slide 8: Coal – Pathway to Lower Carbon Emissions
Coal – Pathway to Lower Carbon Emissions UTILISING HIGH QUALITY COALS IN MORE EFFICIENT HELE POWER STATIONS LOWERS EMISSIONS Emissions by Technology (tCO2/MWh) 1.6 1.4 – If Australia converted its lignite fired 1.2 (22%) subcritical power stations to black (36%) (49%) coal fired USC plants then CO2
Slide 9: Deployment of HELE Gathers Momentum
Deployment of HELE Gathers Momentum THERE ARE 670 HELE UNITS IN OPERATION IN ASIA WITH A FURTHER 1066 PLANNED OR UNDER CONSTRUCTION Asian Coal Fired Power by Technology (GW) 2500 2000 1500 1000 500 0 All Countries current All Countries current & planned Sub-critical Supercritical Ultra Supercritical
Slide 10: Why are SE Asia Countries Deploying HELE Technology
Why are SE Asia Countries Deploying HELE Technology RELIABILITY AND LOW COSTS ARE DRIVING ASIAN COUNTRIES TO BUILDING COAL FIRED POWER STATIONS Levelised Cost of Electricity SE Asia (US$/MWh) – Supercritical and ultra supercritical power 140 stations provide reliable low cost electricity 120 to the
Slide 11: Narrabri Coal Used in Japan's Most Efficient Power Station
Narrabri Coal Used in Japan’s Most Efficient Power Station IF JAPAN’S COAL FIRED GENERATING EFFICIENCY WAS ADOPTED ELSEWHERE2, CARBON DIOXIDE EMISSIONS WOULD BE REDUCED BY 1.5BT/Y1 Japan COP21 Target Mix 2030 – In H1 FY2016, 62% of Whitehaven’s thermal coal 2% 1% was sold in Japan, to increase as Ma
Slide 12: Coal in NSW
Coal in NSW COAL GENERATES OVER 85% OF NSW’S ELECTRICITY – Coal is NSW’s most valuable export commodity NSW Coal Exports (Mt) generating $14 billion in revenue in FY2015 and 200 20% of the value of all exports 180 – More than 20,000 people are directly employed in 160 the industry with many more ind
Slide 13: Delivering Real Economic and Social Benefits
Delivering Real Economic and Social Benefits SINGLE LARGEST EMPLOYER IN NORTH WEST NSW REGION – Whitehaven has 850 employees (FTE) with more than Gunnedah LGA Population 75% living in area of our operations Growth 13,000 – Delivered economic benefits with more than $800m invested into NW NSW region
Slide 14: NSW Government Support
NSW Government Support IS THE NSW GOVERNMENT PROVIDING SUFFICIENT SUPPORT TO THIS KEY INDUSTRY? – NSW has fallen to the second least attractive state for mining investment in Australia on the Fraser Institute’s ‘Investment Attractiveness’ Index – What is the Government’s own view on coal mining and
Slide 15: Thank You
THANK YOU www.whitehavencoal.com.au