2001-02 2002-03 2003-04 2004-06 2006-07 2007-08 2008-09 2009-10 2011-12 2014-15 GROWTH PLAN PRODUCTION FOCUS PRODUCTION CAPACITY (MMTPA) 5.00 4.50 4.00 4.00 3.50 3.00 2.50 2.25 2.00 1.50 1.00 0.50 0.00 0.13 0.24 0.50 0.68 0.68 0.68 1.06 1.25 21
Ranked 7 th by 10 year Profit Growth 22
SECTION C GUJARAT NRE COKING COAL LIMITED 23
1 OVERVIEW OF GUJARAT NRE COKING COAL ASX listed hard coking coal producer market cap. of c.a$0.8 billion 100% owner of two underground mines in NSW, Australia NRE No. 1 NRE Wongawilli JORC reserves of 125.4 Mt and resources of 651.9 Mt Majority of ROM coal sold under contract to major shareholder for its use (Gujarat NRE Coke) commercial terms based on market formula Project location Berrima Sutton Forest proposal Xstrata Tahmoor Southern Coalfield NRE WONGAWILLI W. Tahmoor Appin Westcliff Dendrobium Northcliff Wollongong Kiama Peabody Metropolitan BHP Illawarra Coal NRE No. 1 Port Kembla Port Kembla coal loader 18 Mtpa All product exported through Port Kembla Coal Terminal regional rail and port infrastructure capacity of 17.5 Mtpa Targeting to increase ROM production from 1.7 Mtpa to 6.0 Mtpa by FY2015 Source: 2008 NSW Coal Industry Profile by NSW Department of Primary Industries 24
A$/sh (rebased to Gujarat) 2 OWNERSHIP & CAPITAL STRUCTURE Capital structure Key shareholders Share price (A$) 0.87 Share o/s (m) 890.9 Options TSM (m) 19.9 8% Market cap (A$m) 792.4 Net debt/(cash) 1 (A$m) 153.3 15% Enterprise value (A$m) 945.7 As at 2 February 2011 Note: 1 As at 30 September 2010 LTM share price performance 77% 1.00 0.90 0.80 0.70 0.60 0.50 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Gujarat ASX 200 Gujarat NRE Coke Ltd Nominees & Financial Institutions Public Source: IRESS 25
EXPERIENCED BOARD Board Arun Jagatramka Chairman B.Com (Hons), FCA, AIMM Maurice Anghie Director & Audit Chairman BBus, FCA, FCPA, MAICD Don Carroll Director B.E (Mining), MAusIMM, MAIDC Andrew Firek Director M.Sc, Ph D, FAusIMM, FAIE Mona Jagatramka Director B.Sc. (Hons) Chartered Accountant with 25 years of professional and management experience Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council and Australian Coal Research Association Appointed as an honorary NSW Sydney Ambassador to India Experienced financially qualified Professional with commercial skills and legal/regulatory and governance expertise Audit partner in chartered accounting firms for over 20 years Current Director of Aditya Birla Minerals Limited Over 30 years experience in the international mineral industries Former senior executive with BHP Biliton where he held the positions of Vice President Investor Relations Australia, General Manager Marketing Asia, President BHP Billiton Japan, President BHP Billiton India. 25 years experience in mining, mineral processing, construction, commissioning and operations of coal, base and precious metals plants in Europe, Africa and Australia Former Group Leader at the CSIRO, Division of Fossil Fuels in Sydney and was engaged in developing technologies to produce liquid fuels from coal Former founding Executive Director of Allegiance Mining NL and current Director of Coalworks Limited 10 years of experience in management and administration Active in the management & human resources for Gujarat NRE Group Also on the board of Gujarat NRE Coke Limited 26
27 4 STRONG MANAGEMENT TEAM Board of Directors Management Committee Arun Jagatramka S Murari P R Kannan Sanjay Loyalka Operations Manager NRE Wongawilli Head of Corporate Relations Group Engineering Manager Chief Financial Officer Company Secretary/ IT Manager Operations Manager NRE No.1 Steven Bow (28 yrs UG coal experience with BHPB) Dr. Chris Harvey (35 yrs coal industry with NSW Dept. Minerals and Resources) Steven Coffee (28 yrs UG coal in NSW Coal fields with BHPB) Naveen Kumar Nanda (16yrs Snr Accounting) Sanjay Sharma (12 yrs Business Management) Rhys Brett (8 yrs UG Coal with Anglo, Centennial & Xstrata)
28 1 NRE NO.1 COLLIERY Located in the Southern Coalfields of NSW c.10km north of Wollongong c.16km from Port Kembla Coal Terminal Proposed production areas 2010 to 2019 One of the oldest operating collieries in Australia formerly South Bulli (Owned and operated by Shell) has history of producing 3 Mtpa Premium quality hard coking coal Capacity to increase production to >3.0 Mtpa by 2015 Currently using a board and pillar mining method with plans to install longwall equipment by Dec 2011 Approximately A$240 million invested (to March 2010) with plans to invest a further A$200 million to March 2013 JORC reserves of 92 Mt and Resources of 315 Mt
N 6 201 000 N 6 200 000 E 298 000 E 299 000 E 300 000 E 301 000 E 302 000 E 303 000 N 6 197 000 N 6 199 000 N 6 198 000 N 6 196 000 NRE NO.1 COLLIERY WONGA MAINS PROJECT 3 heading development in the Wongawilli seam beneath old Bulli workings No.5 Shaft No.5 Shaft connection Wongawilli Headings 6.3km New belt road; New rail transport road; New rubber tyred vehicle road No.4 Shaft Cordeaux Colliery No.1 Shaft to No.5 Shaft Each roadway to be 3.5 m high & 5.5 m wide & at least 11 km long Old Bulli Colliery No.1 Shaft connection Wongawilli Headings 5km Links in with existing ventilation shafts & workings Surface Portals to No.1 Shaft Provides direct access to Wongawilli resources and will link in with future Bulli longwalls Legend Proposed Wongawilli Seam Mains Development 3 Headings; 40m x 100m centres Proposed Wongawilli Seam Roadways for connections to Shafts Cataract Notification Area Cataract Reservoir 1Km in from Portal Russell Vale Surface Portal site for Transport, RTV and Conveyor Roadways INDIA NRE MINERALS LIMITED NRE No.1 Colliery Proposed Development "J Mains" Overall Plan showing Wongawilli Seam Workings DRAWN: DATE: SCALE: DWG NO. G.Kerr 3/09/07 0 1km 2km 1:20000 11604 29
30 RESERVES & RESOURCES - NRE NO. 1 COLLIERY NRE No.1 Colliery Resources (Mt) Reserves (Mt) Seam Measured Indicated Inferred Total Proven Probable Total Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4 Balgownie 34.1 41.5 75.6 Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6 Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0 The Resources and Reserves reported are as prescribed by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004 edition, The JORC Code, Clauses 37 to 39) and also using the terminology and the guidelines put forth in the 2003 edition of Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves. Named Competent Persons consent to the inclusion of material in the form and context in which it appears.