Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Coalworks — 6th Annual Wilson HTM Focus on Coal Conference (March 2010)
43 slides from Whitehaven Coal's conference presentation, March 2010
Slide 1: Driving Into A New Coal Era
Driving Into A New Coal Era INVESTOR PRESENTATION March 2010 1
Slide 2: Disclaimer
DISCLAIMER The information in this presentation does not purport to contain all the information that may be required to evaluate the prospects of Coalworks and in particular only discloses material information within the knowledge of Coalworks. You should seek independent professional advice in rela
Slide 3: Executive Summary
EXECUTIVE SUMMARY Core business: Thermal and Coking Coal Listed in June 2008 Cash $10m as at Jan 2010 Resources: 822 Mt Thermal Coal Targets: ~200 Mt Coking & Thermal Coal Shares on Issue ~103.8m Market Cap. ~$30m Project Stage: • Oaklands coal - BFS underway • Vickery coal– PFS underway • Ferndale
Slide 4: Quality Projects, World Class Provinces
RESOURCES & TARGETS • QUALITY PROJECTS • WORLD CLASS PROVINCES • POTENTIAL FOR LARGE PRODUCTION • COKING & THERMAL POTENTIAL COALWORKS Limited
Slide 5: World Class Coal Provinces
WORLD CLASS COAL PROVINCES COALWORKS PROJECT NEAREST MAJOR COAL MINES OAKLANDS NORTH (100%) OAKLANDS (RIO TINTO/MITSUBISHI) VICKERY SOUTH (100% reducing to 51%) VICKERY (WHITEHAVEN – EX RIO TINTO) ROCGLEN (WHITEHAVEN) CANYON(WHITEHAVEN) FERNDALE (90%) MANGOOLA (XSTRATA) BENGALLA (RIO TINTO –WESFARME
Slide 6: Coking & Thermal Coal Markets Rising
COKING & THERMAL COAL MARKETS RISING • Coal is main electricity fuel for China, India, USA & others • Underinvestment in coal indicates long term growth and market rebound • Coal is low cost and reliable • ABARE predicts continued strong demand from China to increase world coking coal trade by 8% to
Slide 7: Strong Management
STRONG MANAGEMENT Operations Technical Team Corporate Geoff Kidd, Operations Minarco Mine Consult Wayne Mitchell, Chairman Manager, Mining Engineers Andrew Firek , CEO Chris Burgess, Project GEOS Mining, Geologists Tony Teng, Director Manager Pennington Scott, Hydro /Company Secretary Matt Morgan, E
Slide 8: Corporate Milestones Achieved
CORPORATE MILESTONES ACHIEVED 2008: • Listed in June 2008 – Oaklands – 280 Mt • Mine Concept Study – Connell Hatch • Rail Study – Connell Hatch • Pre Feasibility Study –Uhde Shedden • 8m coal seams intersected at Hodgson Vale drilling • Oaklands resource increased to 640Mt from drilling • Strategic
Slide 9: Oaklands Coal Resource
OAKLANDS COAL RESOURCE Oaklands’ resource has almost TRIPLED since June 2008 Present Oaklands Resource Measured: 121Mt Indicated: 572 Mt Inferred: 129 Mt Total Resource: 822 Mt • Measured resource drilling program completed in Northern portion • Southern Measured resource pending • Large open pit mi
Slide 10: Measured, Indicated & Inferred Resources
MEASURED, INDICATED & INFERRED RESOURCES Resource Seam Mass Average Raw Fixed Total Volatile Gross Total Thickness status (Tonnes) (m) Ash 2 Carbon2 Sulphur2 Matter 2 Calorific Value2 Moisture3 (Kcal/kg) (%) (%) (%) (%) (% ar) Lanes Measured Shaft 121 Mt 16.7 14.2 44.9 0.27 24.4 4900 26.2 Lanes Indi
Slide 11: Oaklands Mine
OAKLANDS MINE • Bankable Feasibility Study (BFS) underway • Preliminary mine plans for the north and south developed • Landowner Relations – Strategic partnerships formed with key landowners • Community Relations – Regular updates distributed to local residents by Urana Shire Council • Locally-based
Slide 12: Oaklands Mine Design
Optimizer Results 100% OAKLANDS MINE 250Mt ROM @ 5 to 1 Strip Ratio MINE Coal DESIGN : 224 Mt ROM OpenWaste Pit :Shell 1096 Mbcm – for SR 4.88 ~250Mt @ 5 to 1 Strip Ratio @ 1.5Mtpa or < 5 to 1 @ 6 Mtpa COALWORKS Limited
Slide 13: Oaklands Mine & CTL Site Layout
Optimizer OAKLANDS MINE Results 100% & CTL SITE LAYOUT MINE Open Pit Mt Coal : 224 Shell ROM – Waste : 1096 With surface Mbcm handling SR 4.88 facilities CTL plant loading to rail loadout station & emplacement COALWORKS Limited
Slide 14: Oaklands Mine & CTL Site Layout
Optimizer OAKLANDS MINE Results 100% & CTL SITE LAYOUT COALWORKS Limited
Slide 15: Oaklands Transport Options
OAKLANDS TRANSPORT OPTIONS • Rail study completed – Geelong least cost rail option – Oaklands via Benalla to Geelong upgrade – Discussions with Victorian Government on rail port upgrade underway – Victorian Government have spent $17M on upgrade – PKCT provides alternative rail option – Discussions c
Slide 16: Oaklands Coal Transport Plans
OAKLANDS COAL TRANSPORT PLANS COALWORKS Limited
Slide 17: Geelong Port Conceptual Site Layout
GEELONG PORT CONCEPTUAL SITE LAYOUT COALWORKS Limited
Slide 18: Oaklands: Project Comparisons
OAKLANDS : PROJECT COMPARISONS • Oaklands as 822 Mt open pit sub‐bituminous resource compares to Indonesian coal projects • Indonesian Projects comparison: • GPK Coal (247Mt Sub B coal) : A$0.80c/t [Source: Stonebridge Group‐Analyst ‐2009] • PT Indobara Pratama (50‐60Mt Sub B) : A$1.10/t [Source: Pu
Slide 19: Clean Coal Processing
CLEAN COAL PROCESSING • Udhe Shedden commissioned in 2008 • Clean coal starts with gasification – captures CO2 • Gasification is a proven technology with a number of plants operating successfully around the world • Oaklands’ coal found to be ideal for gasification • A clean coal plant at Oaklands wo
Slide 20: CWK Clean Coal Media Coverage
CWK CLEAN COAL MEDIA COVERAGE THE AUSTRALIAN national newspaper November 19, 2009 Special Report on CLEAN ENERGY Front page article by Robin Bromby about clean coal analyses various international strategies and includes this comment about Coalworks: “… Coalworks has defined a coal resource in southe
Slide 21: U-Gas Plant in Commercial Operation
U-GAS PLANT IN COMMERCIAL OPERATION 21 COALWORKS Limited
Slide 22: U-Gas Fluidized Bed
U-GAS® FLUIDIZED BED Low cost, high availability due to moderate temperatures 22 COALWORKS Limited
Slide 23: Oaklands Gasification Testing Underway
OAKLANDS GASIFICATION TESTING UNDERWAY 23 COALWORKS Limited
Slide 24: Commercially Proven CTL Technologies
COMMERCIALLY PROVEN CTL TECHNOLOGIES •U-GAS® technology has been proven on a commercial scale with gasification plants in China •The U-GAS® technology is ideal for sub bituminous coal like that found in Oaklands •The Oaklands’ coal resource is well suited for gasification and downstream value added
Slide 25: Coal to Petrol Feasibility Study Underway
COAL TO PETROL FEASIBILITY STUDY UNDERWAY • Pre feasibility study with Uhde Shedden for Coal to Liquids (CTL) was completed in 2008 • CTL Feasibility Study with Synthesis Energy Systems Inc. is underway • Transport route for hauling petrol and LPG to market via rail to Geelong Port is in planning •
Slide 26: Oaklands Development Timetable
OAKLANDS DEVELOPMENT TIMETABLE ACTIVITY 2007 2008 2009 2010 2011 2012 2013 2014 Oaklands El Granted Initial drilling & JORC Inferred Resource Indicated Resource Measured Resource Scoping / prefeasibility study Sample testing EA base data Mine Plan Environmental assessment Final feasibility (Bankable
Slide 27: Oaklands Value Adding Strategy
OAKLANDS VALUE ADDING STRATEGY • Oaklands coal is ~2/3 energy of Hunter Valley coals • Value adding to Coal – Briquetting to increase energy – Coal to petrol - more product /less transport cost • Coal to Petrol - most profitable business case • Producing 7,000 bpd petrol from 1.5Mtpa coal equates to
Slide 28: Oaklands Mine & CTL Capex Target $750M
OAKLANDS MINE & CTL CAPEX TARGET $750M COMPARABLE TO TIER ONE COAL PROJECTS TIER ONE COAL PROJECT CAPEX (AS PER ABARE) LAKE LINDSAY (ANGLO COAL) $690M ‐ 3 Mtpa Coking/PCI/Thermal MORANBAH SOUTH (ANGLO COAL) $1.19 Billion ‐ 6.5Mtpa coking WALLARAH (KOREA RES/SOJITZ) $550M ‐ 6 Mtpa Thermal ENSHAM – (E
Slide 29: Vickery South Coal Project
VICKERY SOUTH COAL PROJECT COALWORKS Limited
Slide 30: Vickery South Coal Project
VICKERY SOUTH COAL PROJECT • Vickery South EL in coal-rich Gunnedah Basin, NSW • Proximity to an operating mine • Railway to Newcastle • Thermal and coking coal resource target: 50 - 70 Mt • Production target 2Mtpa • Potential for open pit & underground mining • Newcastle Ports expanding capacity •
Slide 31: Vickery Coal Rail Route
VICKERY COAL RAIL ROUTE COALWORKS Limited
Slide 32: Vickery South Key Points
VICKERY SOUTH KEY POINTS Conceptual Project Parameters Production 2 Mtpa Project Life 20 Years Mining Method Open Pit, Highwall & Underground Coal Washing CHPP max 500 tph throughput for 2 Mtpa Employment Peak construction workforce of up to 200 employees and an operation workforce of up to 100 empl
Slide 33: Vickery South Key Points
VICKERY SOUTH KEY POINTS Conceptual Project Parameters Mine Construction Haul road (pit) or rail loop, road, coal stockpiling, reclaim and train loading infrastructure, CHPP Operation 2 Shifts, 7 days per week Product Coal Transport Truck to rail Mine Access Portal to decline (underground) 33 COALWO
Slide 34: Vickery South: Project Comparisons
VICKERY SOUTH : PROJECT COMPARISONS • Vickery South has similar coal quality to existing mines in the Gunnedah Basin • Gunnedah Projects comparison: • Maules Creek (398Mt coal‐sold $A480m) ~ A$1.20/t [Source: The Aust. 5.11.2009] • Narrabri (400Mt ‐7.5% ‐sold $125m) : ~A$4.16/t [Source: Whitehaven A
Slide 35: Ferndale Coal Project
FERNDALE COAL PROJECT COALWORKS Limited
Slide 36: Ferndale Coal Project
FERNDALE COAL PROJECT • Ferndale EL in Prime Hunter Valley coal province, NSW • Proximity to a blue chip operating coal mines • Railway to Newcastle • Thermal and coking coal resource target: 60 - 85 Mt • Production target 2 – 5 Mtpa • Predominantly underground • Newcastle ports expanding capacity C
Slide 37: Ferndale Coal Rail Route
FERNDALE COAL RAIL ROUTE COALWORKS Limited
Slide 38: Ferndale Coal Key Points
FERNDALE COAL KEY POINTS Conceptual Project Parameters Production 2 ‐ 5Mtpa Project Life 20 Years Mining Method Underground Coal Washing CHPP max 500 tph throughput for 2 Mtpa rising to 1500 tph for 5 Mtpa Employment Peak construction workforce of up to 200 employees and an operation workforce of up
Slide 39: Ferndale Coal Key Points
FERNDALE COAL KEY POINTS Conceptual Project Parameters Mine Construction Haul road or rail spur, road, coal stockpiling, reclaim and train loading infrastructure, CHPP Operation 2 Shifts, 7 days per week Product Coal Transport Conveyor to rail Mine Access Portal to decline (underground) 39 COALWORKS
Slide 40: Ferndale: Project Comparisons
FERNDALE: PROJECT COMPARISONS • Ferndale has similar coal quality to existing mines in the Hunter Valley • Hunter Valley Projects comparison: • Mangoola( >1,000Mt coal‐ sold $468m) ~ A$0.46/t [Source: Xstrata plc Annual Rpt 2007] • Newpac (252Mt –sold A$960m) : ~A$3.80/t [Source: Xstrata release 5.1
Slide 41: Hodgson Vale Drilling
HODGSON VALE DRILLING Initial Drilling intersected up to 8m coal in two holes Resource targets reviewed 2 main zones targeted for future drilling Licence renewed 41 COALWORKS Limited
Slide 42: Ashford Lime
ASHFORD LIME Drilling program completed Grades indicate suitability for selected Ground Calcium Carbonate (GCC) products Further drilling targeted to optimize grades GCC off-take agreements targeted 42 COALWORKS Limited
Slide 43: Summary
SUMMARY • COALWORKS POSITIONED FOR GROWTH –Strong Management team - Geoff Kidd, Chris Burgess, Matt Morgan, Minarco, GEOS • FOCUSED ON: – completing Oaklands BFS – moving into development at Oaklands, Ferndale and Vickery – generating revenue •STRATEGIC RELATIONSHIP DEVELOPMENT – Off-take agreements
Coalworks — 6th Annual Wilson HTM Focus on Coal Conference (March 2010) on 6ix