PORT WARATAH COAL SERVICES Visitor Presentation 2008 PWCS SITES CARRINGTON KOORAGANG 1
PWCS AT A GLANCE PWCS owns and operates the two export coal terminals in Newcastle - at Carrington and Kooragang. The company is owned by the Hunter Valley coal export industry - coal producers and some of their Japanese customers and is an unlisted public company. PWCS is the largest coal export facility in the World, with planned throughput of 95.0 million tonnes of coal in 2008. PWCS has a throughput capacity of 102 Mtpa. Kooragang Terminal 77 Mtpa and Carrington Terminal 25 Mtpa. Since 1994, PWCS has invested over $860 million in the expansion of throughput capacity, increasing from its original capacity at Carrington of 20 Mtpa to 102 Mtpa for the combined terminals. For Calender Year 2007 PWCS loaded 84.8 million tonnes, compared to 79.8 million tonnes in Calender Year 2006. PWCS PEOPLE 420 people are employed at PWCS supported by the equivalent of approximately 350 full time contractors Operators and maintainers work a 4-on 4-off shift roster to provide 24 hour / 7 day coverage to provide continuous operation of both port facilities People are our most important asset and we are keen to develop active engagement to promote continuous improvement 2
PWCS HEALTH AND SAFETY PWCS is committed to improving safety. 18 16 14 12 10 8 6 4 2 0 2005 2006 Port Waratah Coal Services Cumulative Total - Injury Count PWCS is implementing the StepSafe Safety Management System, Interactive Safety Observation, Risk Assessment Programmes and increasing employee involvement to create a culture of safety excellence. Hist ory 2007 2008 January February March April May June July August September October November December PWCS OPERATIONS Carrington: 2 rail dump stations, 4 stackers, 4 reclaimers, 2 shiploaders Kooragang: 3 rail dump stations, 5 stackers, 3 reclaimers, 3 shiploaders PWCS has the capacity to simultaneously load five vessels 3
PWCS AND THE ENVIRONMENT PWCS uses recycled water, automatic dust suppression systems on the stockpiles and monitors water discharge into the Hunter River. PWCS operates under and complies with Government Consent Conditions. PWCS AND THE LOCAL COMMUNITY PWCS actively endorses community groups and projects within the vicinities of the two coal terminals. Two of our major sponsorships are: Hunter Medical Research Institute this local Institute promotes medical research. PWCS sponsors researchers to examine onset of schizophrenia. Newcastle Surf Life Saving Club this local club has a 100-year history in Newcastle. PWCS sponsors the purchase of new equipment. Other community involvement includes Scholarships for both High School and University students and Apprenticeships with hands-on work. $ for $ (employees and company) donating to local charities PWCS remains committed to good neighbour principles and conducts tour programmes to offer an insight to our operations. 4
PWCS OWNERSHIP PWCS Shareholders % No. of Directors Newcastle Coal Shippers 37% 4 Bloomfield Collieries 3% Coal & Allied 30% 3 (including Chairman) Japanese Trading 18% Japanese Steel 7% 3 Japanese Power, Cement, Oil 5% Total 100% 10 PWCS CUSTOMERS % of Throughput Xstrata Coal Australia 32% Coal & Allied 26% BHP Billiton 7% Integra 4% Anglo Coal 2-4% Coaltrade Australia Wambo Mining Noble Resources Constellation Ashton Coal Operations 1% or less Muswellbrook Coal Centennial Coal Newpac EDF Trading Lake Coal Whitehaven Austar Energy Coal Marketing Glencore International Idemitsu Boggabri Nippon Steel Bloomfield Collieries * (2007 Figures) 5
COAL IN NEW SOUTH WALES In NSW there are 55 mines: 28 underground 27 open cut There are 33 major development proposals, including 6 under construction, 11 expansions of existing operations and 16 potential new projects Total NSW Exports (2007) PWCS (Jan Dec 07) Domestic consumption 96.7 Mt 84.8 Mt 33.3 Mt Coalfield Reserve Mt Hunter 4,330 Newcastle 1,440 Gunnedah 1,290 Western 1,760 Gloucester 20 Southern 670 Oaklands 1,280 Total 10,790* Recoverable reserves include resources where conceptual mine planning has been undertaken. Source: NSW Dept. Mineral Resources Coal Industry Profile and Coal Services Pty Ltd Project 3Exp Phase 1 Expansion Option 113Mtpa 02.01 01.20 01.26 01.35 03.09 Up-rating works 01.21 01.27 01.36 03.08 03.10 03.12 01.22 01.28 03.17 03.16 01.37 03.19 03.13 The expansion involves: 03.14 New plant works 04.12 03.21 Upgrade the in-loading rate from 6,600 tph to 8,500 tph and the stacker travel time from 25 metres per minute to 40 metres per minute on two stacking streams One conveyor stream to remain at 6,600 tph to minimise operational impact New reclaimer on Berm D and new stacker on Berm E Replacement of two original reclaimers and two original stackers 03.18 04.18 6
THE HUNTER VALLEY COAL CHAIN separate entities with a common purpose MINES 36 Mines 17 Coal Producers 33 Exporting Companies The HVCCLT presents a coal movement plan for the industry LOAD POINTS TRAIN MOVEMENTS 23 Rail Load Points 56 Trains Daily 2 Road Load Points Pacific National 8 x 8,500 tonnes 5 x 7,300 tonnes 6 x 3,000 tonnes 2 x 2,100 tonnes COAL TERMINAL Queensland Rail 4 x 7,200 tonnes Port Waratah Coal Services Kooragang - 77mtpa Carrington - 25mtpa PORT Newcastle Port Corp >900 Coal vessels Vessel agents, suppliers and Govt Bodies HVCC -THE NEXT FIVE YEARS Infrastructure Capital spending on track infrastructure to increase coal chain capacity including Sandgate Grade Separation Load Point upgrades, Hunter Valley Load Point, Warkworth Load Point, Ulan Load Point and Liddell Load Point. Construction of a new Load Point at Wambo which has increased rail capacity Additional train sets by Pacific National and Queensland Rail to increase rail capacity The port has plans to deepen and widen its shipping channels in the future to allow access to larger vessels Hunter Valley Coal Chain Logistics Team s work to increase the performance of all coal chain interfaces 7
EXPORT RAIL INFRASTRUCTURE PWCS GROWTH AND CHC 100 Mt Exported Coal Handling Charge $A8.00 90 $A7.00 80 $A6.00 70 Million Tonnes 60 50 40 30 20 10 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 YTD 2008 $A5.00 $A4.00 $A3.00 $A2.00 $A1.00 $A0.00 8
THROUGHPUT vs CAPACITY MTPA 140 120 100 80 60 1994-1996 Kooragang Expansion 2 nd berth Stockyard extension 2 nd rail receival 2 nd shiploader 1999-2002 Kooragang Expansion 3 rd stacking stream 3 rd rail receival Additional stockyard 1997-1999 3 rd reclaimer Kooragang Expansion 3 rd shiploader 3 rd berth 2006-2007 Kooragang Expansion 4th stacking stream Additional stockyard- Pad D Export Tonnes Long Term Expansion 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 EXPORT TONNES YTD Europe 0% China 2% Korea 16% Japan 62% Taiwan 13% Malaysia 2% Steaming Coal 81% Coking Coal 19% Mexico 0% Newcastle Other Countries 5% 9
PWCS VESSEL STATISTICS The total number of vessels loaded in Calender Year 2007 was 973 compared to 918 in Calender Year 2006. The average shipment size is 87,179 tonnes (PANAMAX). PWCS VESSEL STATISTICS SHIPMENT SIZE 2008 HANDY SIZE PANAMAX SIZE CAPE SIZE 30% 25% Percentage by Vessels 20% 15% 10% 5% 0% 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 000 Tonnes 90-99 100-109 110-119 120-129 130-139 140-149 150-159 160-169 10
PWCS AVERAGE VESSEL QUEUE Average number of Vessels queued 'off-shore' 70 60 50 40 30 20 10 0 2005 Avg. 2006 Avg. 2007 Avg. 2008 Avg. Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 11