Whitehaven Coal Limited · ASX:WHC

Whitehaven Coal — Corporate Update (May 2014)

50 slides from Whitehaven Coal's corporate update, May 5, 2014

  1. Slide 1: Maules Creek Project Analyst Visit

    Maules Creek Project Analyst Visit 5 May, 2014 Boggabri, Australia 5 May, 2014 MCC-400500-140505 Analyst Presentation

  2. Slide 2: Business Case

    BUSINESS CASE “ Maules Creek Coal – A World Class Resource and Project “  The Project is a realistic and feasible plan for the development of the Maules Creek Coal resource  Federal Ministerial signoff of conditions to be satisfied for commencement of construction achieved  Maules Creek will beco

  3. Slide 3: Overview

    OVERVIEW  High quality resource which can be mined at relatively low cost  Simple well understood geology  Provides both thermal and metallurgical coal products  17 km from the main railway line  Above and below rail capacity available  380km from the Newcastle port where significant capacity

  4. Slide 4: Geology

    GEOLOGY MCC-400500-140505 Analyst Presentation

  5. Slide 5: World Class Resource

    WORLD CLASS RESOURCE “ Maules Creek is one of the largest Australian coal deposits “  One of the last major undeveloped coal deposits in NSW with JORC Resources of 679Mt  Geology well understood and mine planning undertaken with high degree of confidence  Definitive feasibility study completed Ju

  6. Slide 6: World Class Reserves

    WORLD CLASS RESERVES  Recoverable Reserves of 362Mt and Marketable Reserves of 329Mt  Provides for an expected mine life of 30 years  Potential to produce both metallurgical and thermal coal  DFS confirmed potential production profile with a high percentage of metallurgical coal  Coal quality a

  7. Slide 7: Overview of Progress

    OVERVIEW OF PROGRESS  Estimated Capital cost remains at $767M  Following delays due to court cases and approval, construction commenced in December 2013, with water supply pipeline. Rail commenced in mid January 2014  Progress currently: All major contracts in place including:  Water supply  Ra

  8. Slide 8: Construction Setting

    CONSTRUCTION SETTING  Construction commencement was contingent on:  Primary State and Federal Approvals  Sign off on Management Plans by State and Federal agencies  Sign off of cultural heritage salvage on the construction site  Sign off of management plans was achieved in July 2013  Legal cha

  9. Slide 9: Construction Setting cont'd

    CONSTRUCTION SETTING cont’d  Construction of water pipeline commenced late December 2013  Rail works commenced in mid January 2014  Bulk earthworks contractor mobilised in mid February 2014  CHPP erection contractor mobilised on site early May 2014  132kV and 22kV power supply contracts execute

  10. Slide 10: Scope of Project – Key Packages

    SCOPE OF PROJECT – Key Packages  C001 – Rail and Access Road  C003 – HV Power Supply  C101A – Bulk Earthworks  C104 – MIA Facilities  C108 – Water Supply  C109 – 22KV Power Distribution  C115 – Portal Reclaimers  C117 – CHPP Construction a MCC-400500-140505 Analyst Presentation

  11. Slide 11: Progress

    PROGRESS (A$ in millions) MCC-400500-140505 Analyst Presentation

  12. Slide 12: Overall Progress

    OVERALL PROGRESS a MCC-400500-140505 Analyst Presentation

  13. Slide 13: Workplace Health and Safety

    WORKPLACE HEALTH AND SAFETY Current Month Year to Date March 2014 Jul 13 – Mar 14 Total Hours 69085 204871 Reportable Incidents 0 1 Other Incidents 6 22 Total Incidents 6 23 3 month moving ave TRIFR 7.4 n/a LTIFR 0.0 n/a 12 month moving ave TRIFR 4.6 n/a LTIFR 0.0 n/a Year to date TRIFR 4.8 4.88 LTI

  14. Slide 14: C001 - Rail Works & Access Road

    C001 - RAIL WORKS & ACCESS ROAD a MCC-400500-140505 Analyst Presentation

  15. Slide 15: C001 - Rail Works & Access Road

    C001 - RAIL WORKS & ACCESS ROAD MCC-400500-140505 Analyst Presentation a

  16. Slide 16: C001 - Rail Works & Access Road

    C001 - RAIL WORKS & ACCESS ROAD Cut #1 Cut #2 Cut #3 MCC-400500-140505 Analyst Presentation

  17. Slide 17: C001 - Rail Works & Access Road

    C001 - RAIL WORKS & ACCESS ROAD Design, construction & commissioning of:  11.9km rail spur and balloon loop  7.9km common section  9.5km mine access road  2km creek diversion  27 transverse pipe and box culverts  1.6 Mm3 of cut, approx. 500 Km3 Common Section Namoi River Crossing each free dig

  18. Slide 18: C001 - Rail Works – Progress

    C001 - RAIL WORKS – Progress  Maules Creek section tracking in accordance with the early schedule despite losing 10 days due to rain  As at end March construction activity was 18% complete – excluding design and early works  Clearing 100% complete  Topsoil stripping 100% completed  Foundation t

  19. Slide 19: C101A - Bulk Earthworks

    C101A - BULK EARTHWORKS a MCC-400500-140505 Analyst Presentation

  20. Slide 20: C101A - Bulk Earthworks - Scope

    C101A - BULK EARTHWORKS - Scope Bulk Earthworks scope:  CHPP  ROM  Train Load Out (TLO)  MIA Area Works  Site Access Roads  Area Pavement Works  Dams Top section of ROM Slot Wall and Micro Piles  Water Management Structures. MCC-400500-140505 Analyst Presentation

  21. Slide 21: C101A - Bulk Earthworks

    C101A - BULK EARTHWORKS Bulk Earthworks Key Dates :  Milestone 1 – ROM to TLO Jun 2014 : On schedule  Milestone 2 – Overall PC Jan 2015 : On Schedule TLO Platform Complete ready for Piling MCC-400500-140505 Analyst Presentation

  22. Slide 22: C101A - Bulk Earthworks

    C101A - BULK EARTHWORKS Progress to Date:  Contract Executed 20 Jan 2014  Commenced clear and grubbing activities 11 Feb 2014  Lost time due to major rain event >200mm  Worked through Easter and Anzac breaks to recover time  Planning double shift on ROM slot wall and stockpile areas  CHPP con

  23. Slide 23: C117 - Coal Handling & Prep Plant

    C117 - COAL HANDLING & PREP PLANT T a MCC-400500-140505 Analyst Presentation

  24. Slide 24: Coal Handling & Prep Plant

    COAL HANDLING & PREP PLANT CHPP looking south  Class-leading CHPP design by Sedgman  Bypass system rated for 1,850tph (13.3Mtpa)  Wash plant system rated at over 1,700tph (12.3Mtpa)  Critical, long lead time, equipment ordered and fabricated and stored at Narrabri  Configuration allows for some

  25. Slide 25: C117 - Coal Handling & Prep Plant

    C117 - COAL HANDLING & PRE PLANT  Downer EDI appointed Principal Contractor for construction  Full Audit of all equipment completed  Bulk earthworks handover of train load out area completed. Piling activities commencing after Easter  Pre assembly of equipment at the Narrabri yard has commenced

  26. Slide 26: C117 - Coal Handling & Prep Plant

    C117 - COAL HANDLING & PREP PLANT  Piling activities for Train Load Out Bin commenced on 29 April  Piling Rig will move to CV853 trestle supports during the second week of May MCC-400500-140505 Analyst Presentation

  27. Slide 27: CHPP Portal Reclaimers

    CHPP PORTAL RECLAIMERS  Design Hazop has been completed with final sign off expected in Germany on May 5th  GSI heavy industries in China have commenced procurement of materials and will commence fabrication in May  GSI quality assessment visit planned for June  Temporary loading facilities for

  28. Slide 28: CHPP Belt Filter Press

    CHPP BELT FILTER PRESS  All six filters have been fabricated and QA testing completed  Filters passed Factory Performance Testing in March  Filters have been despatched via sea freight and are due to arrive in Australia in May  The Filters will be stored at the Narrabri storage facility until th

  29. Slide 29: CHPP Construction Schedule

    CHPP CONSTRUCTION SCHEDULE Key points of note as follows:  Piling activities commence 29 Apr 2014  Site deliveries for pre-assembly works commence 5 May2014  CHPP Construction offices assembled on site 19 May 2014  Site civil works commence 5 Jun 2014  Erection of structure commences late Jul 2

  30. Slide 30: Mine Infrastructure

    MINE INFRASTRUCTURE C108 - Water Supply C003 & C109 Power Supply C104 - MIA Facilities C116 – Site Communications MCC-400500-140505 Analyst Presentation

  31. Slide 31: C108 – Water Supply - Scope

    C108 – WATER SUPPLY - Scope  Water infrastructure installed from Velyama to Top Tank  10ML Dam Complete  Construction water supply operations in place Top Tank and 10ML Dam  100% Completed – mid March  Project 100 – campaign to have 100ML of water stored on site due to Keepit Dam water restrict

  32. Slide 32: C108 – Water Supply - Progress

    C108 – WATER SUPPLY - Progress River Pump Station – 100% Velyama 100% Top Tank100% - Dam 100% a 50Ml Construction Water Dam MCC-400500-140505 Analyst Presentation

  33. Slide 33: C104 Infrastructure - MIA

    C104 INFRASTRUCTURE - MIA  Works packages  Workshops, MIA and CHPP offices  Site services – Water backbone including Potable and Fire water  Bulk fuel and oil storage and HV / LV refuelling  HV / LV wash bays  Equipment spares laydown area and goline parking area  Visits conducted to Werris C

  34. Slide 34: C003 – Power Infrastructure

    C003 – POWER INFRASTRUCTURE  Power Infrastructure consists of 2 parts:  C003 - 132kV Transmission Infrastructure – Transgrid  C109 - 22kV Power Supply – Downer  C003 - 132kV TransGrid Power Supply  4.5km Transmission Line  132kV Switching Station  Power Agreement finalised with Transgrid 17 A

  35. Slide 35: C109 – 22kV Power

    C109 – 22kV POWER  C109 - 22kV Power Supply  132kV / 22kV Substation 22kV Distribution  4.5km Transmission Line Substation  22kV Distribution Substation  Key Dates  Contract Award – 30 April 2014  Target completion – January 2015  Key Interactions  Leightons – pad construction  Transgrid -

  36. Slide 36: C116 – Site Communications

    C116 – SITE COMMUNICATIONS  Scope:  Microwave Link for data scope being reviewed  Mine Hardwired Fibre Optic infrastructure a  Fibre Optic Link to public telecommunications infrastructure  Status:  Construction Microwave Link being set up for construction – Vertel  Investigations ongoing for

  37. Slide 37: Port and Rail Infrastructure

    PORT AND RAIL INFRASTRUCTURE  7.5Mtpa of contracted below-rail capacity available to Maules Creek from July 2014  Provisional notice provided for an additional 2.8Mtpa in below-rail capacity from 2016  ARTC track expansion projects in relation to these contracted and prospective volumes are under

  38. Slide 38: Mining

    MINING  Mine method is by shovel and truck  Robust mobilisation & build- up  After thorough analysis have adopted owner operate model.  Leveraging internal mining capability  Have secured ultra class mining fleet.  Detailed mining sequence for LOM created (Month x Month) MCC-400500-140505 Anal

  39. Slide 39: Strip Ratio

    STRIP RATIO T MCC-400500-140505 Analyst Presentation

  40. Slide 40: Mine Plan

    MINE PLAN MCC-400500-140505 Analyst Presentation

  41. Slide 41: Yr1 X-Section

    Yr1 X-Section Merriown Jeralong Braymont Thornfield Teston Onavale Herndale Upper Lower Velyama Nagero Therribri Flixton Tarrawonga Northam Northam Strictly Confidential 41

  42. Slide 42: Yr2 X-Section

    Yr2 X-Section Merriown Jeralong Braymont Thornfield Teston Onavale Herndale Upper Lower Flixton Tarrawonga Velyama Nagero Therribri Northam Northam MCC-400500-140505 Analyst Presentation 42

  43. Slide 43: Mining Strategy

    MINING STRATEGY  First stage Ramp up of production to target 6Mtpa ROM rate from February 2015  Blasting to commence July 2014  Waste removal to commence August 2014  Staged introduction of mining fleet  Four excavators to be introduced successively between August and February  First coal bein

  44. Slide 44: Mining Fleet Strategy

    MINING FLEET STRATEGY  Hitachi Equipment Selected For Excavators and Large Trucks  2 x EX3600 Excavators (350t)  2 x EX8000 Excavators (800t)  11 x EH5000 Trucks (304t)  Westrac (CAT) to supply bulk of ancillary fleet  4 x CAT 789D’s  6 x Dozers  4 x CAT MD6290 Drills  3 x Graders  Emeco t

  45. Slide 45: Operations Teams

    OPERATIONS TEAMS  Staged introduction of Operations teams with successive fleet installation  Each excavator will be scheduled to ramp up over a period of 4 weeks from commissioning  This will allow adequate time for induction and training on equipment  Initial roster to include 10.5 hour shifts

  46. Slide 46: Recruitment

    RECRUITMENT  Target experienced operators in initial Ramp Up  Incorporate Indigenous recruitment program  Incorporate local candidates Operations - Total Workforce Incl. Contractors 250 200 150 100 Workforce 50 0 Nov-14 Feb-14 Sep-14 Feb-15 May-15 May-14 Aug-14 Oct-14 Jun-14 Jun-15 Apr-15 Apr-14

  47. Slide 47: Operating Costs

    OPERATING COSTS Average real FOB cash costs over first three years currently forecast to be approximately A$67/t  Detailed mine planning is currently underway to determine the optimum mining strategy  Low strip ratio (6.4:1)  Simple, open cut, truck and shovel operations  High mine yield of 86%

  48. Slide 48: Independent Ranking

    INDEPENDENT RANKING Wood Mackenzie ranked Maules Creek second highest out of a large number of international projects The project will deliver significant value to Whitehaven shareholders when it commences production High ranking, high value project MCC-400500-140505 Analyst Presentation

  49. Slide 49: Closing Comments

    CLOSING COMMENTS  Construction has been in progress for three months for the rail and two months for the earthworks  Today you will see what has been achieved in that time  The site has been cleared and topsoil removed  Excavations of the major cuts on the rail have been commenced and opened up

  50. Slide 50: Thank you

    Thank you

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