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Josh Euler, GVK Resources delivered this presentation at the Galilee Basin Coal & Energy Conference. This conference focuses on developing a new, world scale energy province in Central Queensland. It looks at the significant proposed investment in the Galilee area including coal mining, underground coal gasification, coal seam gas, geothermal, shale and much more, bringing together the wide variety of explorers, project developers, service providers and government representatives under the one roof. The event is run in conjunction with the Australian Journal of Mining (AJM). For more information about the event, please visit the conference website: http://www.informa.com.au/galileebasin2013
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GVK Hancock’s Galilee Basin Assets Josh Euler Manager Corporate Affairs
Galilee Basin Coal & Energy Conference 2013
11 November 2013
2 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Important Notice - Disclaimer DISCLAIMER – IMPORTANT NOTICE This presentation ("Presentation") has been prepared by GVK Coal Developers (Singapore) Pte Ltd Company No. 201115929C on behalf of its affiliated companies (“Company”) to provide an update on the development of the project. As a condition to accepting the Presentation, each recipient accepts the terms and conditions set out in this Presentation and agrees to keep the Presentation and the contents of the Presentation confidential. If the terms and conditions contained in this Presentation are not acceptable to a recipient, the Presentation and any copies in the recipient's possession must be returned to the Company immediately. The Company retains ownership of the content of the Presentation. The Presentation has been prepared as at 25 November 2013. The purpose of the Presentation is to provide general information regarding the current status of the project. It is supplied to the recipient on the basis that it is not to be used for any other purpose. The Presentation is not to be reproduced, transmitted, made available or discussed with any other person without the prior written consent of the Company. This Presentation is for the Recipients' information only and does not constitute an offer to sell or a solicitation of an offer to purchase any securities or financial products, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction. The information contained in this Presentation is not for publication, release or distribution in any jurisdiction, including in Australia, Singapore, the United States, Canada, Japan, Korea or the PRC. The Recipient is solely responsible for complying with any laws and regulations of the jurisdiction in which they reside or receive the Presentation. This Presentation does not purport to contain all of the information that a recipient may require to form a view in relation to the project. Each recipient should take its own professional advice where necessary. Nothing in this Presentation should be relied on as the giving of financial product or other advice. By accepting this Presentation, each recipient acknowledges that it is solely responsible for its own assessment of the information contained in the Presentation and that each recipient will conduct its own analysis and due diligence and be solely responsible for forming its own view in respect of that information. This Presentation contains certain forward-looking statements, including assumptions, opinions and views. These may involve elements of subjective judgement and analysis which may or may not be correct. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance to differ materially from the estimations expressed or implied in the Presentation. Neither the Company nor any officers, directors, employees, advisers, agents or associates of the Company ("Agents") guarantees that the assumptions underlying such forward-looking statements are free from errors, nor do such persons accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate. This Presentation has not been and will not be independently verified or audited. The Company makes no representation or warranty that the information contained in this Presentation remains correct at, or at any time after, the date this Presentation was prepared. The Company does not accept any responsibility to update, supplement or correct the Presentation or inform the recipient of any matter arising or coming to their notice which may affect any matter referred to in this Presentation. The Company may decide in its absolute discretion to update or supplement the Presentation. Any further information will be provided subject to these terms and conditions. To the maximum extent permitted by law, no representation or warranty (express or implied) is made, or undertaking (express or implied) is given, as to, and no reliance should be placed on, the fairness, accuracy, adequacy, reliability, authenticity, reasonableness or completeness of the information contained in the Presentation or any information subsequently provided to a recipient by or on behalf of the Company in relation to the project. Accordingly, to the extent permitted by law, none of the Company or any of its Agents accepts any liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of, or in connection with, this Presentation, or in relation to any statements, opinions, information or matters (express or implied) arising out of or contained in or derived from this Presentation. Each Recipient will at the request of the Company at any time, return, as soon as practicable, the Presentation together with any reproduction of it and any material relating to it that the recipient may have received from or on behalf of the Company, or at the election of the Company, destroy such information (including computer based information) and confirm in writing that all such information (including computer based information) has been destroyed.
3 25 November 2013 Galilee Basin Coal & Energy Conference 2013
GVK Operations
Power
Airports
Transport M
ining Mining
Urban
Hotels
Bioscience
Bio
scie
nce
GVK Group is one of India’s leading business groups ● Developed India’s first independent Power Plant and
first toll road project ● Operates India’s largest private airport – Mumbai
International Airport
GVK’s Project Value Add ● Is a leading global infrastructure owner, manager and
operator ● Has significant experience in financing & developing
large scale projects ● Provides direct access to and strong understanding of
India’s growing energy market ● Investment / financing capability - strong relationships
with leading global banks across debt & equity ● Track record of partnering with third party investors and
financiers to deliver large complex projects
GVK A Controlling Shareholder with a Wealth of Expertise
4 25 November 2013 Galilee Basin Coal & Energy Conference 2013
GVK EMRI – Our Innovative PPP (Public Private not for Profit Partnership) Service Delivery Model to provide free Emergency Response Services
The GVK’s Emergency Management & Research Institute (EMRI) is one of the most important social initiatives of GVK.
• Over 750 million people covered in 14 States and 2 Union Territories
• Employing more than 28,000 people
• 6000 ambulances
• Over 23 million cases have been attended
• 808,000+ lives saved to date
Corporate Social Responsibility
5 25 November 2013 Galilee Basin Coal & Energy Conference 2013
GVK Hancock Holding Structure
Aurizon ownership subject to execution of final agreement
79%
Hancock Coal (Alpha coal
project)
21%
79% 100% 49%
GVK Family GVK Power and Infrastructure
90% 1 0%
54%
GVK Coal Developers
51%
Hancock Alpha West
(Alpha West coal project)
Hancock Galilee (Kevin’s Corner
coal project)
GVK Galilee Infrastructure (Rail & Port
projects)
6 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Project Overview
Alpha Kevin’s Corner Alpha West Railway Port
� Will rank as one of the largest thermal coal operations in the world and the first in the Galilee Basin
� Will rank as one of the largest thermal coal mines in the world
� Large underground mine development west of Alpha
� Proposed 51% Aurizon : 49% GVK strategic partnership
� Proposed 51% Aurizon : 49% GVK strategic partnership
� Dedicated terminal at Abbot Point, Australia’s most northern coal port
� 32Mtpa export grade thermal coal mine
� Up to 30Mtpa export grade thermal coal mine
� 16-24Mtpa export grade thermal coal mine
� Rail link from Galilee Basin to Abbot Point
� Awarded Preferred Developer for T3
� 1.82Bt resource
� 1.2Bt reserves
� 4.2Bt resource
� 473 million tonnes reserves
� 1.8Bt resource � 60Mtpa capacity
� Scalable to >120Mtpa � Up to 73Mtpa capacity
� 100% Open cut mining, + 30 years mine life
� Open cut & underground mining, 30 year mine life
� Underground mining, 30 year plus mine life � Rail corridor permitted � 2 x 30Mtpa stockpile
capacity
� High grade thermal coal for export markets
� High grade thermal coal for export markets
� High grade thermal coal for export markets
� Pre feasibility drilling has commenced
� Tier 1 State and Federal government environmental approvals granted
� 2 x dedicated ship berths
� Up to 220,000 DWT (large Capesize) capacity
The Galilee Basin assets comprise large scale (approximately 8 billion tonne JORC resource) high quality thermal coal resources with integrated rail and port infrastructure located in Australia’s next major coal basin
7 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Galilee Basin thermal coal & Infrastructure
0 150 km
Galilee Basin
Bowen Basin
Fully permitted GVK Coal Galilee rail route - - - - - -
Abbot Point Coal Port
Carmichael Project (Adani)
(Vale Exploration)
Kevin’s Corner (GVK)
Alpha Project (GVK)
South Galilee Coal Project (AMCI / Bandanna Energy)
China First Project (Waratah Coal)
Waratah Coal exploration
Alpha West (GVK)
Existing Aurizon rail network ______
● Three world-class coal deposits with a total JORC Resource of 8 billion tonnes of high quality thermal coal – Alpha, Kevin’s Corner, Alpha West deposits
● The Alpha and Kevin’s Corner coal mines are projected to be amongst the largest thermal coal mines in the world, at 32 Mtpa and 28 Mtpa respectively
● The Alpha mine development is the most advanced mine development project in the Galilee Basin
● Alpha is targeting global first quartile cash cost.
150km 0
8 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Alpha - Excellent Coal Quality
Alpha coal Test Pit ● Construction of the test pit was started by
Hancock Prospecting in 2010 ● The test pit was the first and is still the only
production and export of coal from the Galilee Basin
● 125,000 tonnes mined ● Validation of geotech, ground water
assumptions and product quality
Successful test burns 1. KOSEP, Yeongheung Power Station
South Korea 2. Guodian Beilun First Power Plant, China
● Excellent result ● Coal quality parameters, confirmed Alpha as
a high quality premium product ● Blended with high ash (Korea) and low rank
(China) coals, improving performance in both cases
Indicative Shipped Specification (LOM1) Proximate analysis As received1 Air-dried
Total moisture (%) 15.5 - 17.0
Inherent moisture (%) 8.0 Ash (%) 8.6 9.5 Volatile matter (%) 30.2 33.5 Total sulphur (%) 0.51 0.56 CV gross (kcal/kg) 5,800 6,430 HGI 52.0 Fuel ratio 1.45
Test Pit over burden removal Mining at Test Pit
(not
e ne
eds
to c
ross
Wet
land
s)
Loading at Gladstone port First vessel sailing out to Korea
9 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Favourable Geology and Large Resource
● Four economic coal seams, varying in thickness from 4m to 8m
● All seams dip gently (0.5o to 2o) from east to west, no major dislocating structures
● GVK’s coal assets are all in the shallowest part of the Galilee Basin
Depth
16m
43m
52m
10 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Rail Infrastructure Development
● In March 2013, Aurizon and GVK Hancock signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves
● Aurizon would earn a 51% equity in rail and port; GVK to retain a 49% interest
● Transaction process significantly advanced. Both parties working towards an expedited completion.
● Significant work undertaken on developing a cost and time efficient rail solution to connect Alpha mine to Abbot Point Port.
● Up-scalable capacity to meet demand – up to 60Mtpa and beyond as required
Abbot Point Coal Port
11 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Port Infrastructure Development
Planned New Coal Port Terminal – T3 (Abbot Point)
● 2.1 Mt stockyard capacity
● Deepwater vessel approach
● Large Capesize vessel berthing capacity - 220,000 (DWT)
● 2 deepwater berths each equipped with dual quadrant shiploaders
● Shiploader capacity of 8,000tph average
● Fast vessel turnaround due to higher loading rates than other Queensland Terminals
New GVK Hancock 2.1Mt of stockyard
capacity
Dual high capacity (8,000 tph) train dump
stations
Dual high capacity (8,000 tph) shiploaders
Existing Abbot Point Terminal T1
wharf and stockyards
Deepwater vessel berthing and approach
Abbot Point Northern most coal port in Australia and
closest Australian coal port to Asia
12 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Power & Water Infrastructure
Power
● Plans to build a 275 kV power line
● There is sufficient capacity in the line for Alpha, Kevin’s Corner, Alpha West and other mine customers
Water
● Make Good Agreements
● Existing site dams
● Water harvesting during high flow periods - off-stream storage
● Pit dewatering
● Supplemented - Nogoa Mackenzie Water Supply Scheme
0 50 100 150 200 250 300
2016
20
19
2022
20
25
2028
20
31
2034
20
37
2040
20
43
2046
Power Dem
and (M
W)
Year
Alpha Mine & Kevin's Corner Power Demand Ramp Up
Alpha Mine Kevin's Corner Mine
13 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Approval Status Target
Alpha Mine Development
79% GVK Coal Developers
CG’s report Received May ’12 Achieved !"
State EIS Approval Received May ’12 Achieved !"
Federal EIS Approval Received Aug ‘12 Achieved !"
Mining Lease Under Process Expected H2 ’13
Kevin’s Corner Mine Development
100% GVK Coal Developers
CG’s report Received Achieved !"State EIS Approval Received Achieved !"Federal EIS Approval Received Nov ‘13 Achieved !"Mining Lease Under Process Expected 2014 "
Rail
CG’s report Received May ’12 Achieved !"
State EIS Approval Received May ’12 Achieved !"
Federal EIS Approval Received Aug ’12 Achieved !"
Rail sublease Under Process Expected H1 ’14 "
Port
Framework Agreement Executed Achieved !"
Onshore Approval T3 Received Oct ‘12 Achieved !"
Onshore Approval (dredging) Under Process Expected H2 ’13
Offshore Approval (relocation) Under Process Expected H2 ’13
Approvals Status
14 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Benefits - Employment
GVK Hancock Alpha
Construction Alpha
Operations Kevin’s Corner
Construction
Kevin’s Corner
Operations
T3 / Northern Rail
Construction
T3 and Northern Rail Operations
Port 600 70 - - 1,330 300
Rail 1,400 250 - -
Mine 2,000 1500 2,000 1,600 - -
Total Direct 4,000 1,820 2,000 1,600 1,330 300
Indirect Long Term Employment
7,735
6,800
1,275
Totals 4,000 9,555 2,000 8,400 1,330 1,575
Direct and Indirect Jobs = 23,000+
Royalties / Taxes etc – estimated over initial project lives = $40 billion
15 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Local Community benefits Our Galilee Basin projects will include direct community support to a wide variety of the local communities in which we operate.
These community support programs will cover the areas of: • Education and Training • Environment • Arts and Culture • Health and Safety • Community • Sports
Current pre-construction sponsorships include: • Alpha Community Support Program • Whitsundays Marketing & Development
Program
Alpha Swim Club – Sponsored by GVK Hancock Coal
Winners of the 2012 Hancock Prospecting and GVK Christmas Lights Competition
Proud sponsor of the Longreach School Of Distant Education Recipe Book
Regional Indigenous Employment Program constructing a walking path
Bowen River Rural Fire Brigade
16 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Local Industry Participation Plan (LIPP)
Our project will aim to support local businesses through the use of a Local Industry Participation Plan. We have engaged the firm Industry Capability Network (ICN) to assist with us meeting the LIPP guidelines. Industry Capability Network (ICN) is a business network that connects Australian and New Zealand suppliers with project proponents large and small. Any local business seeking to gain work through our project should register via the ICN Network – www.gateway.icn.org.au
17 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Galilee Basin Development Strategy
• Lower start-up costs to fuel development
• Streamlining land acquisitions, planning approvals and red tape
• Positioning Abbot Point as the Galilee’s gateway to the world
• Supporting infrastructure development and corridors
• Supporting regional communities
18 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Disrupt and Delay tactics
Unfortunately, a minority group of activists are focussed on disrupting and delaying a legitimate industry from undertaking one of the most significant pieces of regional development this state has seen for decades.
“Our strategy is to ‘disrupt and delay’ key projects and infrastructure while gradually eroding public and political support for the industry and continually building the power of the movement to win more.” Stopping the Australian Coal Export Boom – Funding proposal for the Australian Anti-coal Movement
19 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Myths and Facts - Great Barrier Reef
Recent scientific evidence conducted by Australian Institute of Marine Science (2012) concluded that the Great Barrier Reef lost half of its coral cover in the last 27 years due to:
• Storm damage (48%)
• Outbreaks of crown-of-thorns starfish (42%)
• Bleaching (10%)
The dredging campaign will be around 2-3 weeks and is around 40 kilometres from the reef.
We fully support the North Queensland Bulk Ports Corporation who have carried out 19 successful dredging campaigns since 1992 without incident.
20 25 November 2013 Galilee Basin Coal & Energy Conference 2013
Thank you