Whitehaven Coal Limited · ASX:WHC

Whitehaven Coal — Technical Presentation (June 2023)

57 slides from Whitehaven Coal's technical presentation, June 2023

  1. Slide 1: Coal Quality Workshop

    Coal Quality Workshop Thermal Coal and Coking Coal June 2023 Investor relations contacts Kylie FitzGerald Keryn Zambrowski +61 401 895 894 +61 455 094 595 kfitzgerald@whitehavencoal.com.au kzambrowski@whitehavencoal.com.au

  2. Slide 2: Agenda and forward looking statements

    1. What is coal? – coal rank and forms 2. Sampling and testing 3. Thermal coal and power generation 4. Met coal and steel making 5. Coal blending FORWARD LOOKING STATEMENTS Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividend

  3. Slide 3: What is coal? – coal rank and forms

    1 What is coal? – coal rank and forms 3

  4. Slide 4: What is coal?

    What is coal? Definition (AS 2418-1995) Plant debris A sedimentary rock composed accumulates in a slowly predominantly of solid organic subsiding swamp to form peat material, with a greater or lesser proportion of mineral matter. Coal is derived from the accumulation of plant remains in a sedimentar

  5. Slide 5: Coal rank

    Coal rank Rank is the degree Increase in heat and pressure of transformation of the original plant material – it is not the age of the coal, rather it is the maturity of the coal. Low Carbon energy content of coal High High Moisture content of coal Low Low rank coals Hard coal Low High Lignite Sub-b

  6. Slide 6: Classification vs. categorisation

    Classification vs. categorisation Lignite Sub-bituminous Bituminous Anthracite Standards exist for coal classification Thermal / steam coal Met / coking coal High CV PHCC Mid CV HCC No standards Low CV SHCC exist for coal categorisation SSCC PCI 6

  7. Slide 7: Coal categorisation

    Coal categorisation There are no formal definitions, these are marketing terms Material PHCC HCC SHCC SSCC PCI LCV MCV HCV thermal thermal thermal Also Premium Low Hard Coking, Semi-Hard, Semi-Soft, Low Vol PCI SCoTA FOB HA Aus, gC Newc, known as: Vol, PLV, PMV Std Hard 2nd Tier, Weak, HVSS INDO 380

  8. Slide 8: Coal components

    Coal components Non-coal: Useless bits Coal: Useful bits Water (moisture) Free (surface) and Air-dried (inherent) Fixed carbon Carbon (most) Mineral matter Ash and Mineral volatiles (Si, Al, Ca, Mg, Na, K, Hg, As, etc.) Volatile matter Oxygen, Hydrogen and Carbon (some) Organic matter Organic sulphu

  9. Slide 9: Important qualities for thermal vs. coking coals

    Important qualities for thermal vs. coking coals Some mutual interests, but steel and power plants focus on different parameters MMR CSR Calorific value VM Vitrinite Sulphur V-steps Fixed carbon M40 Thermal Ash Fluidity Coking coal TM coal CaO Basicity index HGI Phos F CSN AFT Alkalis Dilatation 9

  10. Slide 10: Coal sampling and testing

    2 Coal sampling and testing 10

  11. Slide 11: Coal sampling

    Coal sampling Why do we sample? What determines the • A coal sample is a representative coal sample size? Estimated distribution of errors in coal testing subsample of the whole coal • Coal top size • Analysis of a sample provides • Quantity Analysis, Sample Prep, accurate information about the • Te

  12. Slide 12: Sampling methods

    Sampling methods Site and port Cross belt Falling stream Stockpile sampling 12

  13. Slide 13: Coal sampling

    Coal sampling CHPP output sampling Production Train load out Bore core sampling sampling CHPP and mine Coal mining stockpile Rail to Port Train Vessel discharge sampling sampling (ISO) (ISO) Port stockpile Vessel loading Ship to customer 13

  14. Slide 14: Sampling a vessel

    Sampling a vessel Inbound Port • Sample taken as train unloads Primary Sub Sub Sub • Lab collect, analyse and certify sample sample sample sample 12-14 • Typically not a full cargo 50 mm 1,300 93 tonnes Crush to 4,600 kg 465-840 kg samples • Invoiced and quality adjustment topsize tonnes per per cap

  15. Slide 15: Testing and Analysis

    Testing and Analysis Why? What? • Customers have different quality requirements Physical Chemical depending on the intended use • Total Moisture ISO 589 • Proximate Analysis Inherent • Premiums, penalties, or rejection limits can be based • Fixed Carbon ISO 17246 Moisture ISO 11722 on certain parame

  16. Slide 16: Different bases

    Different bases Coal matter Total moisture Fixed Volatile Air-dried Surface Ash carbon matter moisture moisture Dry ash-free basis (daf) Dry basis (db) Air-dried basis (ad) As received basis (ar) In the lab and at Whitehaven most analysis is done on air dried basis. Power stations fire coal on an as

  17. Slide 17: Quality Certificates

    Quality Certificates [SERTIRCATE OF ANALYSIS [ss TO CERT: fatwa hve aromas engin sping an ate el hp SAWPLING: Somes war ttennsesonarce wh 60 Sunda ANALYSIS: Senos wate spayed sxocng to SO or ASTM Sica are siete) The ‘Sthengsorne we acne pac cance posses acd AN Ab fae Se eee ee fee eae eo Bs ay acme

  18. Slide 18: Repeatability and reproducibility

    Repeatability and reproducibility Maximum acceptable difference between results Repeatability Quality AS Repeatability (r) Reproducibility (R) Reporting Analysis is performed: Gross CV (MJ/kg a.d.) 1038.5 0.13 0.3 0.01 • Within a single laboratory Chlorine (% a.d.) 1038.8.1 0.01 0.02 0.01 • On the s

  19. Slide 19: Total moisture – ISO 589

    Total moisture – ISO 589 Physical analyses Total Moisture (TM) is the amount of moisture present in coal, including both surface moisture and inherent moisture. Testing • Visibly wet samples are air-dried (≤40°C) first to determine free moisture • Drying in air oven at 105-110°C. Lower-rank coals ar

  20. Slide 20: Ash – ISO 1171

    Ash – ISO 1171 Coal does not contain ash, the ash in coal refers to the inorganic residue left behind after coal is burned. It consists of minerals, metals, and other incombustible materials present in the coal. Testing • Fully combusting sample at 815°C in air • Weighed once cooled and the mass los

  21. Slide 21: Volatile matter – ISO 562 / ASTM D3175

    Volatile matter – ISO 562 / ASTM D3175 Volatile matter in coal refers to the combustible gases and hydrocarbons that are released as vapors when coal is heated in the absence of oxygen. ASTM D3175 vs ISO 562 The ASTM test generally produces Testing higher Volatile Matter numbers by • (ISO) A silica

  22. Slide 22: Calorific Value

    Calorific Value Chemical analyses Calorific Value or Specific Energy is the amount of heat that will be liberated per unit mass of coal, when the coal is burnt. Testing • The heat energy released from coal combustion can be determined by burning a weighed sample in pressurised oxygen atmosphere in a

  23. Slide 23: Crucible Swelling Number (CSN) – ISO 501

    Crucible Swelling Number (CSN) – ISO 501 Empirical determination of the coking properties of coal. Testing • Coal sample heated by flame to 820°C in a covered crucible under standard conditions for 2.5 min • Coke button is compared to a series of standard profiles and given a number between 0 and 9

  24. Slide 24: Properties of interest for coking coal users

    Properties of interest for coking coal users Chemical properties • Moisture Content affects cargo pro-rata weight; • Ash Chemistry usually discussed by Alkali content coke oven packing density; efficiency /productivity; (Na + K) and/or Basicity index (Fe +Ca +Mg +Na +K) / indicative of handling (slu

  25. Slide 25: Properties of interest for coking coal users

    Properties of interest for coking coal users Chemical properties Plastic properties • CSN (Crucible Swell Number) or FSI (Free Swelling • Dilatation measures expansion of a coal cylinder. Index). Indicator of coking potential: CSN <3 indicates On average, weaker coking coals have dilatation PCI or t

  26. Slide 26: Properties of interest for coking coal users

    Properties of interest for coking coal users Chemical properties Plastic properties Petrographic properties • Vitrinite Reflectance is most definitive measure of • Vitrinite Distribution or “V-Steps” describes range coal rank – measures light that reflects from vitrinite of vitrinite reflectance; no

  27. Slide 27: Maceral analysis

    Maceral analysis ISO 7404-3, ASTM D2799 • Coal samples crushed to -850μm and set in an epoxy and resin mixture and ground to a polished surface • The petrographic block is placed under a microscope on a moving stage arranged to step across the surface of the block in a rasta pattern. Liptinite • The

  28. Slide 28: CSR – Coke Strength after Reaction

    “CSR” – Coke Strength after Reaction One of the popular coke strength tests that is linked to Blast Furnace productivity 200g sample of 20mm coke is heated at 1100°C under carbon dioxide for 2 hours. CRI = percent weight loss after reaction CSR = percent weight of reacted and tumbled coke 28

  29. Slide 29: Thermal coal and power generation

    3 Thermal coal and power generation 29

  30. Slide 30: Coal fired power station

    Coal fired power station Key unit operation • Coal handling plant • Pulverisers • Combustion (Boiler) • Steam circuit (Boiler + Turbine + Condenser) • Emissions control • Ash disposal system Steam Circuit and Combustion circuits never come into physical contact contact. 30

  31. Slide 31: The boiler

    The boiler • The boiler converts thermal energy Combustion – coal particle in the coal to steam energy • VM burns off first, left with char • The boiler is fully enclosed with and ash particle water-filled tubes or water walls • The finer the particle the quicker • The combustion zone contains the i

  32. Slide 32: Slagging and fouling

    Slagging and fouling Slagging and fouling occurs due to coal properties, Slagging and fouling Sootblower arrangement boiler design, and boiler operation. High levels of Fe2O3, CaO, MgO, Na2O, K2O in Ash. Slagging Fouling • Impacts heat transfer • Low steam temperature process in the radiant section

  33. Slide 33: Pulverisers (Mills)

    Pulverisers (Mills) Vertical Spindle Mill Ball Mill There are 2 main types of pulverizes: • Vertical Spindle Mill – most common and economical • Ball Mill The coal mill/pulveriser prepares the coal to facilitate combustion. • Dry (Primary Air) • Classify • Transport Typically 4-5 mills in a power st

  34. Slide 34: Steam Circuit

    4. Saturated steam is Steam Circuit separated from water in the steam drum Generator and superheated in the superheater tubes The turbine creates energy which is Steam transferred in the Spray desuperheater generator and stored for drum 5. Superheated steam is use in the transmission expanded throug

  35. Slide 35: Subcritical, supercritical and ultrasupercritical?

    Subcritical, supercritcal and ultrasupercritical? Subcritical: less than critical pressure of 220 Critical Point = bar (218 atm) P >218atm, T>374°C Supercritical: greater than the critical temperature and pressure (218 atm, 374°C) Ultrasupercritical: extra high pressure and temperature (nominally >2

  36. Slide 36: Coal properties and power plant performance

    Coal properties and power plant performance Specific Moisture Ash Volatile matter Sulphur HGI energy Fuel mass Gas mass Exit gas Ash and coal Coal milling Opex and Heat losses Parasitic load flow flow temperature handling and firing maint. Overall Emissions Overall cost efficiency 36

  37. Slide 37: Power plant energy balance

    Power plant energy balance Condenser and other losses 48% 90% Steam Boiler 42% 40% Sent out power Coal 10% 2% Boiler exhaust heat Parasitic load 37

  38. Slide 38: Increase in thermal efficiency over time

    Increase in thermal efficiency over time Mainly attributable to increase in capability of materials 55 Line of superalloys Overall thermal efficiency (%, LHV) 50 Nordjyllandsværket, Denmark Line of steel Isogo, Japan Waigaoqiao, China 45 Lunen, Germany Esbjerg 3 Fynsværket 7 Tarong North, Australia

  39. Slide 39: Met coal and steel making

    4 Met coal and steel making =. WHITEHAVEN COAL ATEN 39

  40. Slide 40: Why do we need coking coal?

    Why do we need coking coal? Cokemaking Ironmaking Steelmaking Coking coal is Coke + iron ore is Iron is needed needed to produce coke used to produce iron to produce steel (via the Integrated Steelmaking process) 40

  41. Slide 41: Integrated steel mill

    Integrated steel mill Sinter plant • An integrated steel mill has all the functions for Blast furnace primary steel production: BF gas iron making, steelmaking, Sintered casting and rolling. ore Typically has sinter- Iron ore Molten making and coke-making pig iron too, although these can Coke Oxygen

  42. Slide 42: Coke in the blast furnace

    Coke in the blast furnace To a blast furnace, coke quality is more important than ferrous material quality Four roles of coke 1. Heat source 2. CO reductant source 3. Carburising agent 4. Permeable bed Can only be achieved with coke A good coke is one that: • survives to the lower furnace • does not

  43. Slide 43: Mass balance of a blast furnace

    Mass balance of a blast furnace To produce one ton of hot metal Inputs (kg) Outputs (kg) Ferrous burden 1,600 Top gas 2,300 Coke 350 Dust 20 (Coal equivalent: 490) PCI 150 Flux 100 Blast – air 1,300 Blast – oxygen 40 Slag 200–600 Natural gas 40 Hot metal 1,000 43

  44. Slide 44: What is different about coking coal?

    What is different about coking coal? Behaviour during heating in absence of air (pyrolysis) Coking coal Thermal coal • Becomes “plastic” between 400-500°C • Exhibits little plasticity • Swells as volatiles are generated in the plastic coal • Exhibits little or no dilatation Click to insert video Cli

  45. Slide 45: Transforming coking coal to coke

    Transforming coking coal to coke A packed bed of coking coal particles will agglomerate into Coal Coke semi-coke at ~500°C and then -3 mm +50 mm fissure and harden into coke lumps as temperatures reach ~1000°C. Coking 45

  46. Slide 46: Coal pyrolysis of a bed of coal

    Coal pyrolysis of a bed of coal The plastic layer is the transition zone between coal and coke Coal bed Plastic layer Coke Click to insert video Source: ACARP Project Number: C23048; Links Between Microstructure Development in Softening Coal and the Characteristics Controlling Coke Quality; Author:

  47. Slide 47: Coal blending

    5 Coal blending 47

  48. Slide 48: Coal blending is an optimisation process

    Coal blending is an optimisation process Blending optimisation considers trade-offs between: • Costs (or value generation) • Desired qualities • Yield • End use optimisation • Source/supply diversification • Thermal blending done by producer or customer • Coke blending usually done by customer Note:

  49. Slide 49: Coal blending in power generation

    Coal blending in power generation Blended before the pulveriser • Differing HGIs → preferential grinding • Differing VM content will ignite and burn at different rates → heat transfer imbalances • Differing CSN (swell) → heat transfer imbalances, burner issues • Ash chemistry can cause problems → Sl

  50. Slide 50: Coking coals are not created equal

    Coking coals are not created equal A mixture of grades are required in coke-making • There are various grades of metallurgical coal (PHCC, HCC, SHCC, SSCC) and each grade Cake vs. Coke blend recipe analogy has a function in the coke-making blend: strength, caking properties, lowering impurities, cos

  51. Slide 51: Coke blending to a target box – CSR and VM

    Coke blending to a target box – CSR and VM • Miyazu-Okuyama-Fukuyama defined Quality Target Box a blending target box of “sufficient fusibility” based on Gieseler Fluidity Prime Aust and Canadian HCCs and Reflectance values HCC • Customers source coals so that ‘blend’ lands inside blending box – USL

  52. Slide 52: Appendices – additional testing

    Appendices – additional testing 52

  53. Slide 53: Proximate analysis

    Proximate analysis Chemical analyses Proximate analysis refers to the Testing first set of tests completed and allows • Sample equilibrated to the laboratory characterization of a coal sample. temperature and humidity It typically consists of Inherent • Heated at 105-110°C to constant mass Moisture,

  54. Slide 54: Fixed carbon – ISO 17246

    Fixed carbon – ISO 17246 Fixed carbon in coal refers to the solid, non-volatile carbonaceous residue that remains after volatile matter and moisture are driven off during heating Not to be confused with carbon. or combustion. Carbon refers to the total carbon content present in coal, whereas • Not a

  55. Slide 55: Ultimate analysis

    Ultimate analysis Chemical analyses Ultimate Analysis consists of the Carbon Hydrogen and Nitrogen Sulphur ISO 19579 organically derived components ISO 29541 • Combustied in oxygen at 1,350°C, of the coal. Five elements comprise • Combusted in pure oxygen at 950ºC the gas stream passes through an gr

  56. Slide 56: Ash analysis / Ash fusion temperature – ISO 540

    Ash analysis / Ash fusion temperature – ISO 540 Physical analyses Ash analysis Ash fusion temperature Determines all inorganic compounds Is it sticky when hot? Why do we do this test? in the ash as oxides • Moulded pyramids or cubes from coal The ash fusion temperature provides Two common instrument

  57. Slide 57: Elements in coal

    Elements in coal Why do we do this test? • Government restrictions, China have restrictions on F, Cl, Hg, As and Phos • SCoTA rejection parameter on Se • Trace elements may be emitted from the stack to the atmosphere as vapours or on fine ash particles • Many coal trace elements are toxic if occurri

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