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Mainly in the prospecting license stage
Reserves have to identified and established
Huge investment in infrastructure required before mining can actually commence
But….Mozambique, Botswana, other
African sources
As opposed to a steel plant being set up in 2-4 years time,
setting up a mine will require 6 – 8 years :
10 years to get the coal flow
Other Sources: Maruwai Indonesian coking coals
#
East Kalimantan
West Kalimantan
Central Kalimantan
SouthKalimantan
Banjarmasin
Palangkaraya
Muara Teweh
Muara Tuhup
Lampunut
Purukcahu
Muara Juloi
Key properties
• Range of coal, rank 0.8-1.8
• HCC to SSCC
• Very low ash
• Very high dilatation
• Good S and P
• Very high vitrinite
Key Issues
• Infrastructure
• Blending
• Costs
Emerging Met Coal Regions in Mongolia -Geopolitical concerns and Distance major concerns
Source: South Gobi company report
Source: ISMW
0
5
10
15
20
25
30
2004 2005 2006 2007 2008 2009
Mil
lio
n T
on
ne
s
Australian Met Coal Imports into India
SSCC & PCI HCC
Australian Coking Coal Production & Exports
100
110
120
130
140
150
160
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f
Mil
lio
n t
on
ne
s
Australian Coking Coal Exports is estimated to grow over 5% in next 5 years
Production 2009-10 (MT)
Exports 2009-10 (A$ billion)
Exports 2010-11 f(A$ billion)
158 MT 24 31
Source : GTIS, Internal company forecasts
Australian Coking Coal IndustryNSW Coal basins Queensland Coal basins
Gujarat NRE Coking Coal Ltd
Australian Hard Coking Coal Producers
0
5
10
15
20
25
30
35
40
BHPB Xstrata Rio Tinto Anglo Peabody Gujarat NRE Coking Coal
MTP
A
GNCCL planned output by 2015
Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10
Gujarat NRE poised to become 4th largest Hard coking Coal producer by 2015
GUJARAT NRE COKING COAL LTD
Wollongong
Kiama
Port Kembla
Port Kembla coal
loader 18 MtpaSutton
Forest
proposal
Berrima
Dendrobium
W. TahmoorAppin
Westcliff Northcliff
Southern
Coalfield
NRE No. 1
NRE WONGAWILLI
BHP Illawarra
Coal
Peabody
Metropolitan
Xstrata
Tahmoor
ASX listed hard coking coal producer
» Market capitalisation of ~A$0.6 billion
100% owner of two underground mines in NSW, Australia
» NRE No. 1 & NRE Wongawailli
JORC reserves of 99.8Mt and resources of 572.9Mt
All ROM coal sold under contract to major shareholder for captive use (Gujarat NRE Coke)
» Commercial terms based on market formula
All product exported through Port Kembla Coal Terminal
» Gujarat NRE holds 16% stake and a seat on the Board in Port Kembla
» Regional rail and port infrastructure capacity of 18Mt
Targeting to increase ROM production from 1.3Mtpa to 6.0Mtpa over the next 4 years
» Target long term cash operating cost of US$39/t FOB (pre royalties, ROM)
Surface Drive Head
0.5 0.7
1.51.8
3.03.2
0.0
1.0
2.0
3.0
4.0
FY10 FY11 FY12 FY13 FY14 FY15
Mt
Production forecast (ROM)
NRE NO.1 COLLIERY
Longwall order of $90 million placed for upgrade of the mine and to increase productivity
NRE No.1 MINE RESOURCES AND RESERVES
Resources (Mt) Reserves (Mt)
Potential
Reserves
(Mt)*
As per
mine
plan
(Mt)**
Seam Measured Indicated Inferred Total Proven Probable Total Total
Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4 6.4 35.8
Balgownie — 34.1 41.5 75.6 — — — — —
Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6 29.6 92.2
Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0 36.0 128.0
*Potential reserve of 6.4 million is additional to 29.4 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves.**Total of Reserves and Potential Reserves.