Gujarat NRE Coking Coal LtdGujarat NRE Coking Coal Ltd

In estor Presentation September 2010Investor Presentation – September 2010

ARUN KUMAR JAGATRAMKAChairmanSeptember 2010September, 2010F

or p

erso

nal u

se o

nly

DISCLAIMERThis presentation contains only a brief overview of Gujarat NRE Coke Ltd and its associated entities (“Gujarat") andtheir respective activities and operations. The contents of this presentation, including matters relating to thegeology of Gujarat’s projects, may rely on various assumptions and subjective interpretations which it is notpossible to detail in this presentation and which have not been subject to any independent verification.

This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties,and factors outside of Gujarat’s control, may cause the actual results, performance and achievements of Gujaratto differ materially from those expressed or implied in this presentation.

To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of theinformation in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss ordamage arising from the use of the information.

The information contained in this presentation is not a substitute for detailed investigation or analysis of anyparticular issue. Current and potential investors and shareholders should seek independent advice before makingp p p gany investment t decision in regard to Gujarat or its activities.

COMPETENT PERSON STATEMENT

The information in this report that relates to Mineral Resources and Reserves is based on information compiled byp p yMr. Kris Markowski who is a member of the Australian Institute of Mining and Metallurgy.

Mr. Markowski is employed by Gujarat NRE Coking Coal Limited.

Mr. Markowski has sufficient experience which is relevant to the style of mineralisation and type of deposit underM . Ma ows as su c e t e pe e ce w c s eleva t to t e style o e al sat o a d type o depos t u deconsideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and ore Resources’. Mr.Markowski consents to the inclusion in the report of the matters based on his information in the form and contextin which it appears.”

2

For

per

sona

l use

onl

y

33

SECTION A

Overview of Met CokeD d S lDemand – Supply gap

For

per

sona

l use

onl

y

Overview of the Met Coke market Coke and coking coal prices have almost doubled in past 12 months

40% export tax levied by China since August 2008 has little likelihood of 40% export tax levied by China since August 2008 has little likelihood ofreversal – production of coke for a surplus for export is discouraged

Poland, Russia, Ukraine, Japan, Colombia - Most of these sources supply, , , p , pp yto western hemisphere, where as the demand is in the eastern part

With Chinese Coke away from the market, there is a likely shortage ofcoke from 2011 – Difficult to meet the increasing demand supply gap

Quarterly pricing of coking coal from FY10 – adds a new dimension to thek k tcoke market

11 Mtpa of permanent coke capacity closures (primarily in Europe)enforced by the economic crises - adds to the market pressureenforced by the economic crises - adds to the market pressureF

or p

erso

nal u

se o

nly

World Met Coke Outlook

800

900MTPA

600

700

800

300

400

500Actual production

Expected demand

100

200

300 p

Source :Internal company forecasts

02004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Met Coke demand is expected to rise by 150 to 200 MTPA by 2020 based on pig iron growth projections

p yFor

per

sona

l use

onl

y

World Met Coke Imports

India is one of the top importers of Met CokeSource : GTIS, Internal company forecasts

For

per

sona

l use

onl

y

The scenario evolving for 2010

Near absence of Chinese coke for export in 2010

30 MT of met coke demand in India in 2010

India needs to import 4 – 5 MT of coke in 2010of coke in 2010

Declining Inventories in Europe

I i k d Increase in coke rates and higher PCI usage

For

per

sona

l use

onl

y

2011 and beyond…. Once coke trade returns to pre crisis levels of around 30 mtpa (say by

2012) – difficult to meet the shortfall of China’s 14 Mtpa export capacity

Permanent closure of around 11 Mtpa coke capacity in Eastern Europe

New blast furnace capacity with no associated coke plants in India and

South East AsiaSouth East Asia….

Resulting into large merchant coke demand in India for pig iron,

ferroalloys and soda ashe oa oys a d soda as

Coking coal supply under pressure – Production from Mozambique and

Mongolia are some years away and will come at a high price

(infrastructure in these countries at nascent stage)

Are we staring at a 

met coke shortage??

For

per

sona

l use

onl

y

SECTION B

GUJARAT NRE COKE LIMITED

For

per

sona

l use

onl

y

A SNAPSHOT

Largest independent producer of Metallurgical Coke in India

Listed on the Bombay and National Stock Exchanges, with a markety g ,capitalisation of around USD 0.70 billion (No. of shareholders 1,60,000)

Profit earning and dividend paying with strong financials and credit rating ofAA‐ for long term borrowing and PR1+ for short term borrowing.AA for long term borrowing and PR1+ for short term borrowing.

Met Coke capacity 1.25 million tons, being increased to 4 million tons by2014/15.

The only Indian Company to have exported LAMC from India (to Argentina,Brazil, South Africa & Europe).

Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999certification

Rated one of the top 10 company by 10‐years profit performance in the latestedition issued by Business Today on India’s Most Valuable Companies

10

For

per

sona

l use

onl

y

Our Presence inOur Presence in India

156

1Plant at Bhachau, Gujarat

Plant at Khambalia, Gujarat

2KANDLA PORT

2, j

3Plant at Dharwad, Karnataka

4Proposed Plant, Nayudupeta, Andhra Pradesh

3GOA PORT

NEW MANGALORE PORT

4KRISHNA PATNAM PORT

4 Andhra Pradesh

5Registered Office, Kolkata

6 Corporate Office, Ahmedabad

PORT

11

For

per

sona

l use

onl

y

GNCL OPERATIONS…

LOW ASH METALLURGICAL COKE

Waste Heat Recovery Power Plants

HARD COKING COAL (NSW, AUSTRALIA)

RESOURCES 573 MMT

METALLURGICAL COKE

1.25 MMTPAKhambhalia* 15 MWBhachau* 15 MWDharwad* 30 MWTotal 60 MW

Gujarat NRE Coking Coal Ltd(ASX: GNM)

STEEL UNITTMT BARS : 0 311 MMTPA BHACHAU UNIT

KHAMBALIA UNIT0.358 MILLION MTPA

Wind Power 87.5 MW

(ASX: GNM)

NRE NO. 1 – 315 million tonnesNRE Wongawilli – 258 million tonnes

TMT BARS : 0.311 MMTPA 0.324 MILLION MTPA

Coal Washeries DHARWAD UNIT0.25 MILLION MTPA

(Leased)DHARWAD UNIT

0. 324 MILLION MTPA

Khambalia 0.75 Bhachau 0.75 Dharwad * 0.90

12

In Australia In India* Under implementation

12

For

per

sona

l use

onl

y

GUJARAT NRE COKE LIMITEDListed on NSE & BSE in India100% 4 20%Listed on NSE & BSE in India

Gujarat NRE Limited Pluton Resources Ltd.

100% 4.20%

23.53%

Pike River Coal Ltd. Wonga Coal Pty Ltd Exploration tenements in Australia

7.56% 100%

9.71%

Coal Mine in New Zealand. Coal off-take for 400,000

MTPA

Gujarat NRE Coking Coal Ltd

Listed on ASX: GNM

42%

Rey Resources Ltd Gujarat NRE Resources NL

12% 100%

Exploration tenements in

Australia, Chile

NRE No. 1 315 MT

Gujarat NRE FCGL Pty Ltd

NRE

100%

13

& Peru NRE Wongawilli

258 MTInternational Operations 13

For

per

sona

l use

onl

y

BOARD OF DIRECTORS

Mr. Girdharilal Jagatramka

The main promoter of GNCL. Has more than five decades ofbusiness experience

Mr. Girdharilal JagatramkaChairman Emeritus

25 years of professional and management experience All India 1st rank gold medalist Chartered Accountant Director of Pike River Port Kembla Coal Terminal NSW Mineral

Arun Kumar JagatramkaChairman & Managing Director

Director of Pike River, Port Kembla Coal Terminal, NSW MineralCouncil and Australian Coal Research Association

Appointed as an honorary NSW Sydney Ambassador to India

10 years of experience in management and administration

Mrs. Mona Jagatramka

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 Coking Coal Limited

gNon-Executive Director

More than 32 years of experience in the field of Organisational Management, Business Planning, Operational and Commercial Functions in reputed Industrial Houses of India.

Mr. Rajendra Prasad JainExecutive Director

14

For

per

sona

l use

onl

y

BOARD OF DIRECTORS (contd..) Former President of ICSI

Mr. Chinubhai R Shah

Former President of ICSI At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila

Pharmaceuticals Ltd., Apollo Hospitals International Ltd., GujaratState Electricity Corpn. Ltd., etc.

Also the Chairman of India Renal Foundation.Non-Executive Director

Former CMD of IIBI Former Executive Director of UTI Mutual Fund. Holds directorship of various reputed Listed Companies viz. ITC

Dr. Basudeb SenNon-Executive Director

Ltd., South Asian Petrochem Ltd., etc.

Leading medical practioner Past District Governor of Lions Club International

Dr. Mahendra Kumar LoyalkaNon-Executive Director

Past District Governor of Lions Club International

Former CMD of Kudermukh Iron Ore Company Ltd.

Mr. Murari SanangulyNon-Executive Director

Presently on the Board of Coal India Ltd.

Eminent Chartered Accountant

Mr. Subodh Kumar AgrawalNon-Executive Director

Eminent Chartered Accountant Presently Member of Central Council of ICAI. Chairman, Committee for members in Industry (ICAI)

15

For

per

sona

l use

onl

y

SHAREHOLDING PATTERN

Sl. Particulars % of

47%25%

No. Holding1 Promoter Group 47.052 Banks, Mutual Funds & 28.25 28%,

FIIs 3 Indian Public and others 24.70

Total 100.00

Promoter Group

Banks, Mutual Funds & FIIsTotal 100.00

Listed on BSE & NSE

Indian Public & Others

Listed on BSE & NSE Script Code: • For Ordinary Equity Shares: BSE – 512579 ; NSE - GUJNRECOKE ISIN no. - INE110D01013 • For B Equity Shares (DVR Shares) : BSE – 570003; NSE - GUJNREDVR ISIN no. - IN9110D01011

Face Value : Rs. 10 per share Market Capitalization: Approx USD 0.70 Billion

16

For

per

sona

l use

onl

y

PERFORMANCE OF LAST 5 FINANCIAL YEARS

1600

1200

1400

600

800

1000

Rs.

In C

rore

s

200

400

600R

0Year Ended31.03.2006

Year Ended31.03.2007

Year Ended31.03.2008

Year Ended31.03.2009

Year Ended31.03.2010

T EBITATurnover EBITA

17

For

per

sona

l use

onl

y

LONG TERM NRE SHARE PRICE COMPARED WITH NIFTY(ADJUSTED FOR BONUS ISSUES)(ADJUSTED FOR BONUS ISSUES)

1,400.00 8000

1,000.00

1,200.00

6000

7000

800.00

4000

5000

GNCL(LHS)Nifty (RHS)

400.00

600.00

2000

3000

Nifty (RHS)

0.00

200.00

0

1000

0 00

31.01.06 22.11.07 25.03.08 29.12.09 05.01.10 05.03.100

NRE has outperformed the NIFTY in last 5 years 18

For

per

sona

l use

onl

y

DVR SHARE PRICE COMPARED WITH NIFTY

44 00 8000

GNCL DVR Shares (LHS) Nifty (RHS)

42.00

44.00

6000

7000

8000

38.00

40.00

4000

5000

34.00

36.00

2000

3000

32.00

34.00

27-May-10 1-Jun-10 24-Jun-10 30-Jul-100

1000

Note: The Differential Voting Rights Shares (DVR) got listed on 26.05.2010, since then the NRE DVR shares has outperformed NIFTY

19

For

per

sona

l use

onl

y

PHENOMENAL INVESTOR RETURNS

Financial Year Bonus Ratio Record Date Allotment

1995/96 11:10 26 Nov 1996 23 Dec 19962001/02 1:2 30 May 2003 16 Jun 20032002/03 1:2 21 Apr 2004 30 Apr 20042003/04 1:1 10 Feb 2005 12 Feb 20052004/06 1:1 30 Sep 2006 18 Oct 20062007/08 2:5 20 Oct 2008 31 Oct 20082007/08 2:5 20 Oct 2008 31 Oct 20082008/09 1:10

(DVR Shares)7 May 2010 10 May 2010

Gujarat NRE Coke has been identified as the 4 best stock of the decade (Times of India)

20

If a person would have invested Rs. 1 in this stock on January 3, 2000, hisvalue of investment on December 23, 2009 would be Rs.106 (Source:Economic Times)

For

per

sona

l use

onl

y

GROWTH PLAN – PRODUCTION FOCUS

PRODUCTION CAPACITY (MMTPA)

4.004 004.505.00

PRODUCTION CAPACITY (MMTPA)

2.252.503.003.504.00

0 13 0 240.50 0.68 0.68 0.68

1.06 1.25

0 501.001.502.00

0.13 0.24

0.000.50

2001

-02

2002

-03

2003

-04

2004

-06

2006

-07

2007

-08

2008

-09

2009

-10

2011

-12

2014

-15

2 2 2 2 2 2 2 2 2 2

21

For

per

sona

l use

onl

y

Gujarat NRE – Transforming into a leading k tcoke exporter

Brazil In addition to meeting the Brazil Argentina France

In addition to meeting theincreasing domestic cokedemand, Gujarat NRE Coke has

France Italy Japan

been tapping the opportunity inmet coke export market – to fillin the void created by global Japan

South Africa

y gshort supply

With increased Coke capacity and a secured source of Hard Coking Coal from its own mines

Gujarat NRE is a reliable Source of Met CokeGujarat NRE is a reliable Source of Met CokeFor

per

sona

l use

onl

y

SECTION C

INDIAN STEEL INDUSTRY VISION 2020 –

AndAnd COKING COAL OUTLOOK

23

For

per

sona

l use

onl

y

Steel Development PatternStee e e op e t atte

India’s longIndia s long term steel development pattern ispattern is similar to most countries, following the same patternsame pattern of more than a century old

China has already reached its peak in growth rate, while India is on the rise…..

For

per

sona

l use

onl

y

China & India Driving Steel growthSteel Production forecast by Region / Country (in Million Tonnes)

For

per

sona

l use

onl

y

INDIAN STEEL VISION – 2020

300 MILLION TONS STEEL CAPACITY Crude Steel Production in 2009 – 55 million tonsCrude Steel Production in 2009 55 million tons

Potential for ramp up to 300 million tons by 2019-2020- conservative estimate at 200 million tonnes

222 MOUs have been signed with various States for the planned increase in capacity

Proposed Investment US $ 220 billion Proposed Investment US $ 220 billion

India has potential access to: Infrastructure – Power, Ports, Surface Transportation etc

Human Resources

Capital

Raw materials – except COKING COAL 26

For

per

sona

l use

onl

y

Urgent need for Coking Coal to meet India’s g gprojected Steel growth

I i M t C lMT

2020 Steel increase Increase in Met Coal Demand by 2020

10%pa 100 61p12%pa 135 8415%pa 202 13220%pa 361 226

• 10%pa will see a doubling of import demand• 20%pa increase is equal to current seaborne market for all Met Coal• Major increase in all forms of met coal

PCI = 2.1 x today’s markety HCC = more in demand at higher rates due to rising productivity ~ doubling

market

For

per

sona

l use

onl

y

Present and Future Coking Coal

MT

gImports by India

MT

Strong demand from Steel Industry and domestic unavailability causing a surge in importsSource: CRISIL, internal estimate

For

per

sona

l use

onl

y

Major Coking Coal Supplying Countries of India

Source: ISMW

For

per

sona

l use

onl

y

Australian Hard Coking Coal Producersg

30

Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10

For

per

sona

l use

onl

y

SECTION DSECTION D

GUJARAT NRE COKING COALGUJARAT NRE COKING COAL LIMITED

For

per

sona

l use

onl

y

Gujarat NRE Coking Coal Ltd - Performance at a Glance

For

per

sona

l use

onl

y

GUJARAT NRE COKING COAL LTD OVERVIEW

Peabody

ASX listed hard coking coal producer 

» Market capitalisation of ~A$0.6 billion

W. TahmoorAppin

Westcliff Northcliff

SouthernBHP Illawarra Coal

Metropolitan

Xstrata Tahmoor

100% owner of two underground mines in NSW, Australia

» NRE No. 1 & NRE Wongawailli

Wollongong

Port Kembla

Port Kembla coal loader 18 Mtpa

Sutton Forest

Berrima

DendrobiumCoalfield

NRE No. 1

NRE WONGAWILLI

JORC reserves of 99.8Mt and resources of 572.9Mt

All ROM coal sold under contract to major

Kiama

loade 8 MtpaForest proposal

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

» 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)

33

For

per

sona

l use

onl

y

GNCCL OVERVIEW (contd..)

Capital structure (as per 31 May 2010)

Share Price (A$) 0.58

Shareholding patternShare Price (A$) 0.58

Shares (m) 889.7

Options (m) 45.10

Market Capitalisation (A$) 516 03

14%

9%

Share price performance (LTM)

Market Capitalisation (A$) 516.03

Debt (m) 140.0

77%

Gujarat NRE Coke Limited & AssociatsFinancial Institutions Nminees &OthersOthers

34

For

per

sona

l use

onl

y

EXPERIENCED BOARD Board

Arun JagatramkaChairmanB C (H ) FCA AIMM

Chartered Accountant with 25 years of professional and management experienceDi t f Pik Ri P t K bl C l T i l NSW Mi l C il B.Com (Hons), FCA, AIMM 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

Maurice AnghieDirector & Audit Chairman

Experienced financially qualified Professional with commercial skills and legal/regulatory and governance expertiseDirector & Audit Chairman

BBus, FCA, FCPA, MAICDg g y g p

Audit partner in chartered accounting firms for over 20 years Current Director of Aditya Birla Minerals Limited

Don CarrollDirectorB E (Mi i ) MA IMM

Over 30 years experience in the international mineral industries Former senior executive with BHP Biliton where he held the positions of

Vi P id t I t R l ti A t li G l M M k ti B.E (Mining), MAusIMM,MAIDC

Vice President Investor Relations Australia, General Manager Marketing Asia, President BHP Billiton Japan, President BHP Billiton India.

Andrew FirekDirectorM Sc Ph D FAusIMM FAIE

25 years experience in mining, mineral processing, construction, commissioning and operations of coal, base and precious metals plants in Europe, Africa and AustraliaM.Sc, Ph D, FAusIMM, FAIE 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

Mona JagatramkaDirectorB.Sc. (Hons)

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 35

For

per

sona

l use

onl

y

STRONG MANAGEMENT STRUCTUREBoard of Directors

Management CommitteeManagement Committee

Arun JagatramkaS Murari

P R KannanSanjay Loyalka

Head of Operations

St BSteven Bow(28 years Underground Coal experience with

BHPB)

Operations Manager NRE Wongawilli

Head of Corporate Committee

Group Engineering

Manager

Chief Financial Officer

Company Secretary/ IT Manager

Operations Manager NRE

No.1

Phil Wakeford Dr. Chris Harvey Steven Coffee Naveen K

Sanjay Sh

Rhys Brett

36

(33yrs UG Coal with Oakdale Collieris

Ltd & BHPBIC)

(35yrs coal industry with NSW Dept.

Minerals and Resources)

(28yrs UG coal in NSW Coal fields

with BHPB)

Kumar Nanda

(16yrs Snr Accounting)

Sharma(12yrs Business Management)

(8yrs UG Coal with Anglo,

Centennial & Xstrata)

For

per

sona

l use

onl

y

NRE No. 1 MINE

For

per

sona

l use

onl

y

NRE NO.1 COLLIERYNRE NO.1 COLLIERY

Located in the Southern Coalfields of NSW» ~10km north of Wollongong» ~20km from Port Kembla Coal Terminal

One of the oldest operating collieries in Australia» Formerly South Bulli (Owned and operated by Shell)

Premium quality hard coking coal

C it t i d ti t 3 0 Mt b 2015 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 f 92MT d R f 314MT JORC reserves of 92MT and Resources of 314MT

38

For

per

sona

l use

onl

y

No. 1 Mine No. 1 Mine -- StrategyStrategygygy

Long Term futureLong Term future Coal quality/productive/correct cost profile/safety/peopleCoal quality/productive/correct cost profile/safety/people Coal quality/productive/correct cost profile/safety/peopleCoal quality/productive/correct cost profile/safety/people

Coal QualityCoal Quality 300300 mtmt Resources and 100Resources and 100 mtmt mineable Reservesmineable Reserves 300 300 mtmt Resources and 100 Resources and 100 mtmt mineable Reserves.mineable Reserves.

ProductivityProductivity NewNew longwalllongwall 35003500 tphtph peakpeak

3.0 3.2

3 0

4.0

New New longwalllongwall 3500 3500 tphtph peak peak capacitycapacity

Trunk conveyors 4000 Trunk conveyors 4000 tphtph Gate rd conveyors 3500Gate rd conveyors 3500 tphtph

1.51.8

2.0

3.0

Mt

Gate rd. conveyors 3500 Gate rd. conveyors 3500 tphtph LW start Dec. 2011LW start Dec. 2011 Targeting 3 Targeting 3 mtpamtpa by FY 14by FY 14

0.5 0.7

0.0

1.0

FY10 FY11 FY12 FY13 FY14 FY150 3 5For

per

sona

l use

onl

y

Journey to DateJourney to Dateyy

The first 5 years Re-established a very run down mine. Re established a very run down mine. Decided on mine plans. Started Wonga Mains Jan 2008 Purchased 4 x CM’s, SC’s, LHD’s etc Purchased 4 x CM s, SC s, LHD s etc

Last 12 months Coal production in Wonga Mains Coal production in Wonga Mains

started RMains drift started Commissioned Wonga Mains 1 belt Commissioned Wonga Mains 1 belt

(4000 tph belt) Continued Bulli Seam operations

O & 311 Panel complete 310 Panel O & 311 Panel complete, 310 Panel commenced

For

per

sona

l use

onl

y

Work in Progress

For

per

sona

l use

onl

y

NRE No.1 MINE RESOURCES AND RESERVESNRE No.1 MINE RESOURCES AND RESERVES

Potential Reserves

As per mine plan

Resources (Mt) Reserves (Mt) (Mt)* (Mt)**Seam Measured Indicated Inferred Total Proven Probable Total TotalBulli 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

42

*Potential reserve of 36.0 million is additional to 92.0 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.

For

per

sona

l use

onl

y

NRE WONGAWILLI MINENRE WONGAWILLI MINE

For

per

sona

l use

onl

y

NRE WONGAWILLI COLLIERY Located in the Southern Coalfields of NSW

» ~14km south-west of Wollongong20k f P K bl C l T i l» ~20km from Port Kembla Coal Terminal

Consolidates 3 Collieries» Elouera Colliery (previously owned by BHP)y (p y y )» Avondale Colliery » Part of the Huntley Colliery

Premium quality hard coking coal Premium quality hard coking coal

JORC reserves of 7.8Mt and resources of 258Mt

ROM coal transported ~20km via rail to the Port Kembla Coal Terminal

A i t l A$120 illi i t d (t M h 2009) ith l t Approximately A$120 million invested (to March 2009) with plans to invest a further A$175 million to March 2013

44

For

per

sona

l use

onl

y

NRE Wongawilli Mine NRE Wongawilli Mine -- StrategyStrategy

Long Term future Coal quality/productive/correct cost profile/safety/peopleq y p p y p p

Coal 260 mt Resources 260 mt Resources

Productivity Upgraded longwall 3000 tph

3.03.0

4.0

Upgraded longwall 3000 tph peak capacity

Trunk conveyors 4000 tphG 0 8

1.6 1.71.5 1.4

2.0Mt

Gate rd. conveyors 3500 tph New LW domain to start in 2014. Targeting 3 mtpa by FY 14

0.8

0.0

1.0

FY10 FY11 FY12 FY13 FY14 FY15For

per

sona

l use

onl

y

NRE Wongawilli Mine NRE Wongawilli Mine –– miles traversedmiles traversed

BackgroundBackground Purchased by NRE in Dec 2007Purchased by NRE in Dec 2007 Development started March 2008.Development started March 2008. Purchase of 2 x CM’s, SC’s etcPurchase of 2 x CM’s, SC’s etc

L t 12 thL t 12 th Last 12 monthsLast 12 months LW production commenced.LW production commenced. Nebo Access commenced.Nebo Access commenced. Finalise Nebo longwall designsFinalise Nebo longwall designs Finalise Nebo longwall designsFinalise Nebo longwall designs Exploration Program completed for Wonga Exploration Program completed for Wonga

SouthSouth New Car parks constructedNew Car parks constructed New Bathrooms being constructedNew Bathrooms being constructed Surface screen/sizer constructed and Surface screen/sizer constructed and

commissioned.commissioned. Wonga South Portals commencedWonga South Portals commenced Wonga South Portals commencedWonga South Portals commenced New power supply for WW commenced.New power supply for WW commenced. Longwall Updgrade contarct signed.Longwall Updgrade contarct signed.

For

per

sona

l use

onl

y

Work in ProgressWork in Progress

For

per

sona

l use

onl

y

NRE WONGAWILLI COLLIERY RESERVES & RESOURCESNRE WONGAWILLI COLLIERY RESERVES & RESOURCES

Potential Reserves

As per mine plan

Resources (Mt) Reserves (Mt) (Mt)*p

(Mt)**SeamMeasured Indicated Inferred Total Proven Probable Total TotalBulli — 8.0 25.0 33.0 — — — — —

W ilWongawilli 21.0 16.0 114.0 151.0 2.7 5.1 7.8 23.0 30.8

Tongarra — — 74.0 74.0 — — — — —Total 21.0 24.0 213.0 258.0 2.7 5.1 7.8 23.0 30.8Total 21.0 24.0 213.0 258.0 2.7 5.1 7.8 23.0 30.8

*Potential reserve of 23.0 million is additional to 7.8 million JORC reserves and based on mine plans drawn‐up from inferred resources. Hence is not a part of JORC reserves.

48

f p f**Total of Reserves and Potential Reserves.F

or p

erso

nal u

se o

nly

NRE WONGAWILLI COLLIERY

New Joy continuous miner that arrived at Wongawilli on March’10March’10

Longwall with its shearer

49

For

per

sona

l use

onl

y

COAL QUALITY

Typical washed coal quality

Bulli Wongawilli

Average range for

coking coal1

Ash (%) 9.6 10.0 7.0 – 10.5

CSN (swell 5 5 >9 0 6 0 – 9 0

Gujarat hard coking coal compares well against Bo en BasinCSN (swell

index) 5.5 >9.0 6.0 9.0

Inherent Moisture (%)

0.8 0.9 1.02

Volatile Matter (%)

21.7 24.7 17.5 – 34.0

against Bowen Basin prime hard coking coal on almost all quality parameters

Rank (Ro Max) 1.3 1.2 0.95 – 1.70

Fluidity (ddpm) 1,800 3,000 100 – 20,000

Sulphur (%) 0.38 0.59 0.375 – 0.750

q y p

Note:1 B d B B i l lit ti t

Source: Australian Coal Association, Company reports, Broker reports

Phosphorous (%) 0.039 0.010 0.005 – 0.080

50

1 Based on Bowen Basin coal quality estimates2 Based on inherent moisture content of Peak Downs coal

For

per

sona

l use

onl

y

INFRASTRUCTURE POSITIONING Port Kembla Coal Terminal remains an

unconstrained coal export port» 13.2Mt throughput in 2008

Shi l di i i 18 M

Gujarat NRE holds 16% equity inPort Kembla Coal Terminal and

» Ship loading capacity is 18 Mtpabeing increased to 25 Mtpa

ROM coal from NRE No. is transported NRE No. 1

a seat on the Board.

via truck haulage to Port Kembla» Proven ability to transport up to 3

Mtpa ROM coal from Wongawilli is ROM coal from Wongawilli is

transported via rail to Port Kembla» Historically up to 2 Mtpa has been

transported using existing

Wollongong

Port KemblaNRE

Wongawilli

infrastructure» The capital program budgets for an

infrastructure upgrade that will allowfor the transport of 4 Mtpa

51

for the transport of 4 Mtpa

Rail

Road

For

per

sona

l use

onl

y

OFFTAKE PARTNER – GUJARAT NRE COKE All ROM coal production sold to Gujarat Coke

Sold on commercial terms based on a market formula calculated as follows:» FOB Coking Coal Price based on the JSM BHP Goonyella benchmark» To arrive at ROM price ,Benchmark HCC price is adjusted for :

» yield ( coking ~50 to 55%, high ash coking ~20 to 25% & rejects ~25% ) » washing costs & waste placement costs» actual ocean freight added to come to C&F ROM coal price.g p

Since the commencement of production the ROM coal price received based on above mechanism has resulted in being between 52% and 60% of the benchmark hard coking coal price

» FY09/10 annual benchmark HCC price FOB US$128 FOB ROM US$75» FY09/10 annual benchmark HCC price FOB US$128, FOB ROM US$75» FY 10/11 :

» April-June 10 Qtr benchmark HCC price FOB US$200, FOB ROM US$115» July – Sept 10 Qtr benchmark HCC price FOB US$225, FOB ROM US$125

Gujarat NRE Coke is the largest independent producer of Metallurgical Coke in India» Listed on the Bombay and National Stock Exchanges» Market cap of ~US$ 0.70 billion» Only Indian company to have acquired coking coal mines in Australia» First Indian company to have exported LAMC from India (to Argentina, Brazil, South Africa

& Europe)

52

For

per

sona

l use

onl

y

GROWTH PLAN – PRODUCTION FOCUSGROWTH PLAN PRODUCTION FOCUS

FUTURE CAGR 39.6%

HISTORICAL CAGR 50.7%

MT

Wongawilli Longwall Introduced

NRE 1 L g ll I t d ti

53

NRE 1 Longwall IntroductionWongawilli Longwall UpgradePROJECTED CAGR 43.7% OVER 8 YEARSF

or p

erso

nal u

se o

nly

GROWTH PLAN – CAPEXGROWTH PLAN CAPEX

Current Status : NRE no 1:» Will result in > 4mtpa capacity mine» Wonga Mains well advanced» 4 x New CM’s purchased» 4 x New CM s purchased» New 4000 tph conveyor commissioned.» Order for new 3500 tph Joy LW placed

Current Status : Wongawilli» Will result in > 4mtpa capacity mine

Wonga South Portals started» Wonga South Portals started» 2 x New CM’s purchased» Order for Joy LW upgrade placed

54

For

per

sona

l use

onl

y

Accolades

Premier’s NSW Export AwardsThe Australian Export Awards is a nationalawards program which recognizes and honorsawards program which recognizes and honorsexport excellence thorough innovation andcommitment. The Company won the 2009Premier’s NSW Export Award in Minerals andEnergy sector and became one of the finalists atNational level.

In April 2008, appointed honorary NSW“Sydney Ambassador” to India by theSydney Ambassador to India by thePremier of NSWThis year declared as the “Person of theYear 2009” by the Illawarra Mercuryy y

55

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

THANK YOUTHANK YOU

Mr Arun Kumar JagatramkaMr Arun Kumar JagatramkaChairman

Gujarat NRE Coking Coal LimitedLot 1 Princes Highway (Cnr Bellambi Lane)

Russell Vale, NSW 2517, AustraliaPh: +61 2 4223 6836

Email: arun@gujaratnre.comwww.gujaratnre.com 57

For

per

sona

l use

onl

y