Edition Two 2018PORT WARATAH COAL SERVICES

Welcome to the Port Waratah Coal Services Community NewsletterIt is a pleasure to introduce our second community newsletter for 2018. We value this opportunity to share with you the wide range of activities we are engaged in and report to you on aspects of our performance.

During March we published our 2017 Sustainable Development Report, the sixth report since we commenced reporting our management approach to sustainability and operational, environmental and social performance. I am proud to share with you that the Report has again been prepared in accordance with the Global Reporting Initiative (GRI), and for the first time has achieved the Core option.

We believe that doing our business in a sustainable way starts with doing the day-to-day things well. That is why we have conducted an exercise to map how Port Waratah’s activities are positioned in the framework provided by the United Nation’s Sustainable Development Goals (SDG’s). Describing the impact of our day-to-day activities against the SDGs demonstrates our commitment to managing our operations to world class standards. Additionally, it provides our stakeholders with a way to understand how we contribute to the global sustainably agenda in a local context. You can download the full Sustainable Development Report on our website.

These sustainability matters are made even more important because industry conditions support an expectation that the Hunter Valley coal industry has a bright future. Coal prices remain strong, which reflects ongoing demand for the high quality thermal coal produced in our region.

Our main focus is the flexible and reliable delivery of services for customers from our two terminals. To ensure we meet our customers’ expectations, our Service Assurance team are taking feedback from our customers and are improving communication and reporting.

Planned maintenance is a key contributor to the reliability of our assets. Recently, we took a reclaimer out of service for 14 days to replace an 18-year-old bucketwheel gearbox and overhaul the cable reeler. Working around the clock and under Port Waratah supervision, the project involved numerous contracting parties and some high-risk work in difficult weather conditions. I congratulate everybody involved, in that the outage

was completed within schedule and without injury.

Speaking of safety, we are proud to share that in April we reached 281 days free from serious injury, illness or harm – our all-time best as a business. Unfortunately, this run ended when two injuries were sustained by employees performing routine tasks. While we commend our people for the tremendous improvement in safety over the past nine months, these injuries remind us that we must all, individually and collectively, focus on doing our job safely.

You will also find updates on community partnerships in this edition. This year we held our first ever Community Pitchfest, where six of our community partners presented a live pitch to a panel of judges at our annual Community Partner event. It remains a privilege for us to be able to partner with so many people and organisations who are committed to work for a better community.

Another way in which share value from our operations is through direct participation and I applaud our employees for their ongoing contributions to our clean up at Throsby Creek, participation at Harry’s Challenge, and supporting fundraising events with barbeques and donations.

I trust that you enjoy this edition of our newsletter and invite you to provide us with feedback and comments.

Kind regards

Hennie du Plooy

2017 Sustainable Development Report now available on our website

Congratulations to all our finalists and thank you to our judging panel; Grace McLean – NFP Connect, Wayne Diemar – HunterNet, Brad Rogers – NBN Television and Hennie du Plooy – Port Waratah.

Check out all the photos and videos from the event on our Facebook page

Inaugural Port Waratah Community Pitchfest Our annual Community Partners Networking Event was held in late March in Wickham. The event is an opportunity for our community partners to network with likeminded organisations and meet members from Port Waratah’s community sponsorship and donations committees. This year we upped the ante by including a Community Pitchfest.

The Community Pitchfest was added to give our 2017 community partners the opportunity to gain extra funding for a designated community project or initiative. All community partners were invited to tell us in 250 words or less about their community project and how it fills a need in the Newcastle region. Six finalists were selected from the entries to make a live, three-minute pitch to our panel of judges at the event.

The pitches were enthusiastic, entertaining and informative, and even included some audience participation. All finalists received funding on the evening, but it was Guy Clegg from Charlie’s Run for Kids who took out top honours.

Charlie’s Run 4 Kids, pitching for a Child Life Therapist at the John Hunter Children’s Hospital

Conservation Volunteers Australia (CVA) – equipment and materials for World Environment Day Tree Planting Challenge

Stockton Public School – Technology in the 21st Century

OzHarvest, pitching for NEST (an education training programme for the disadvantaged)

GLOW – Harmony Day activities in Wickham

Newcastle Basketball, pitching for safety improvements at the stadium

$2,500$1,500

$1,000$1,000

$500$500

Top Right: Bengalla’s Anthony Raines explaining to Port Waratah’s Craig Allen and Steve Rigby the open cut coal extraction process to ensure the right coal is delivered at the right time.

4.11 Reclaimer Major WorksOur 4.11 reclaimer at Kooragang Coal Terminal underwent a major outage in late February with a bucketwheel gearbox replacement and cable reeler overhaul. Pre-work planning was essential to removing the 18-year-old gearbox, setting up specialised jigs and equipment and undertaking tagging and testing. Between 40 to 70 tonne was required to remove the gearbox drive coupling bolts, using specifically designed and manufactured equipment and shifts working day and night over six days.

The cable reeler was removed and sent offsite for structural improvement works, then fitted to the machine once back on site. A new 17 tonne, 1,315 metre trailing cable was installed by our Electrical team with the assistance of specialised contractors.

Over 5,500 hours were required for the outage, with Port Waratah job supervision around the clock, and support from our key contracting parties. We are pleased to report that all works were completed safely and on schedule. Well done to the Kooragang Maintenance teams, our Assets department and our contracting partners for successful and safe completion of this major work.

Customer Service RoadshowOur Service Assurance team continually work to improve the service we provide to our customers. One of the ways they do this is to have regular discussions with our customers on a range of matters – from providing timely and transparent information, to safety initiatives and improvements in environmental performance.

Lately, our discussions have been focusing on information sharing, to understand how our customers use information and help us improve our external reporting. Meeting regularly with our customers is not only about focusing on operational performance, but also provides the opportunity to share safety and environmental initiatives that improves our social and environmental impacts. Developing relationships and understanding our customers’ challenges are key to the work we do each day, and allow us to continue to connect Hunter Valley coal with the world.

316LIVING & WORKING

LOCALLY

Maitland

Port Stephens

Newcastle 34.8%

11.4%

8.5%

Other

Lake Macquarie 38.9%

6.4%

14HOSTED

APPRENTICES

8SCHOLARSHIPSTUDENTS

3CASUAL

STAFF

60%OF THE EXECUTIVE TEAM

EMPLOYEES

5FIXED TERM

3TRAINEES

hired from theNewcastle andHunter Region

People & Safety Here at Port Waratah our people are generally with us for the long haul. Of our 41 years in operation we have a number of employees that have notched up over 30 years of service, with our average tenure currently sitting at 13 years. So, when new recruits join our Port Waratah family, we welcome them in the best way – with a team barbeque. In early April, the Carrington barbeque was a bit bigger than normal, welcoming three new team members; Bill Peden and Ben Graham to the Carrington Operations team and Zac Mason to the Carrington Electrical team.

As we continue our journey towards the goal of zero injuries, we are extremely proud when we can celebrate significant safety milestones. In March, Kooragang’s Shift 4 hit the 12 year serious injury free mark, and Carrington’s Shift 1 reached 4,000 days serious injury free in April. The teams attribute their strong safety record to thinking through tasks before performing them, and above all watching out for themselves and others.

Top left: Left to right: Ben Graham, Bill Peden, Glenn Parsons, Jemma Callaghan, Mick Grew, Paul Van Huisstede, Luke Logan. Above: Top right: Kooragang Shift 4. Bottom right: Carrington Shift 1.

Above: On 5 May the annual KO Classic Charity Surfing Competition was held at Dixon Park Beach. Dave Rowland and Rod Owens from our Carrington Terminal had the BBQ fired up bright and early ready for all the action. The retro surfing event raises funds for the Calvary Mater Newcastle, with this year’s event tallying up close to $20,000.

Above:The Light Up Newcastle Lantern Walk held in February was a vibrant cultural event, with proceeds raised for the Mission to Seafarers Centre in Wickham. In March a small event was held to hand over the funds raised to the centre, to the tune of $20,000. The funds will be used by the centre to purchase recliner sleepers to help give the seafarers a chance to rest during their visit to Newcastle.

Above: Our Autumn Community Clean Up Day was a great success with members of the local community joining forces with our employees to clean up Throsby Creek along Carrington Foreshore. 40 bags of litter were collected, with a combined calculated weight of 150kgs. The most abundant type of litter was soft plastic remnants, such as bits of plastic wrap and bags. Removing and analysing the litter is valuable in improving the environmental standard of the catchment in the future.

Out And About In The Community

40BAGS

150kg*

*calculatedweight

which added up to

WE COLLECTED

Above: Participants took on Harry’s Challenge at Stockton on March 18. Harry’s Challenge helps to fund the Harry’s House charity, which is a local community organisation providing a much-needed break for families experiencing childhood cancer. We are proud to be long-term supporters of the event and have committed as major partners through to 2020.

Above: Jack’s Place was a vibrant outdoor theatre production celebrating Woromi culture, along the banks of Throsby Creek. In the weeks leading up to the performance, some of our employees joined local school students and the creative team from Curious Legends to make shadow puppets and props for the production. The performance was unique and inclusive, giving the crowd the opportunity to participate and enjoy the whole experience.

Produced on 100% recycled

paper

Cover Page: Port Waratah employees and members of the local community ready to clean up litter around Carrington Foreshore.

If you would like to comment on Port Waratah Community News, please email contact_us@pwcs.com.au or call on (02) 4907 2280 (24-hr Community Enquiries Line)

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This Summaryexcludes Electricity and

Major Capital ExpenditureProjects. Due to rounding,

numbers may not add up preciselyto the totals and percentages provided.

$63.456M HUNTER & CENTRAL COAST $2.170M NEW SOUTH WALES$1.433M AUSTRALIA$0.043M OVERSEAS

CONTRACTORS/CONSULTANTS $67.102 Million

$5.802M HUNTER & CENTRAL COAST $1.381M NEW SOUTH WALES$2.135M AUSTRALIA$0.1M OVERSEAS

PROFESSIONAL SERVICES $9.322 Million

$10.122M HUNTER & CENTRAL COAST $4.527M NEW SOUTH WALES$4.975M AUSTRALIA$1.444M OVERSEAS

MATERIALS/PURCHASES $21.068 Million

HUNTER &CENTRAL

COAST

81%

NSW8%

OVERSEAS

AUSTRALIA

2%9%