Jidhaa Coal

8/11/2019 Jidhaa Coal

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Australian LV Coal Producers:Proven performance, but where to next?

Ross Stai n lay

ener al Manager Mar ket i ng

Jel l i nbah Resour ces

CoalTrans World Anthracite PCI Conference, September 2004, Hanoi

Jellinbah Resources


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Outline

Mines

Location

Production

Quality

InfrastructurePort, Rail

End Use

PCI and other uses

Future Projections


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Mines


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1.6 MtExpor t Sales

2003/2004

GladstonePort

BlackwaterRail System

Yarrabee CoalCompany

Mine Operator

YARRABEEMine Name

4.0 MtExport Sales2003/2004

GladstonePort

BlackwaterRail System

Jellinbah

Resources

Mine Operator

JELLINBAHMine Name

1.9 MtExport Sales

2003/2004

Dalrymple BayPort

GoonyellaRail System

Foxleigh MiningMine Operator

FOXLEIGHMine Name

5.2 MtExpor t Sales

2003/2004

Dalrymple BayPort


Australian Premium

Coals

Mine Operator

COPPABELLA /

MOORVALE

Mine Name3.7 MtExport Sales

2003/2004

Hay PointPort


BMAMine Operator

SOUTH WALKER

CREEK

Mine Name

Queensland LV Coal Producers

Total ReservesMeasured 363 Mt


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Queensland LV Coal Exports

0

2

4

6

8

10

12

14

16

18

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

Austral ian Fiscal Year (ending 30 June)

Mt

Moorvale

Foxleigh

Coppabella

Sou th Walker Creek

Yarrabee

Jellinbah

Source: Department of Natural Resources & Mines - Qld Coal Industry Reviews


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0

5

10

15

20

25

Source: Department of Natural Resources & Mines, 2003 Australian Black Coal Statistics

Queensland Coal Mines Strip Ratio

Strip Ratio (bcm / product tonne)

LV Coal is shown in red


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LV Coals from Queensland

0.40

0.45

0.50

0.55

0.60

0.65

0.70

9 10 11 12 13 14 15 16 17

VM % (ad)

TS % (ad)

Jellinbah

Coppabella

Sou th Walker Creek

Foxleigh

Yarrabee

Moorvale

Area is proportional to tonnes


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Queensland Rangal CoalsPCI / Thermal Fraction CPP Flowsheet

DMC

(Secondary)

DMC(Primary)

FINES

CIRCUIT

FINESCIRCUIT

REJECT PCI /THERMAL

COKINGCOAL

Coarse

Intermediate

Fines

Slimes

FEED SIZE PROCESS

* DMC = dense medium cyclone

F

S

S

F


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Infrastructure


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QR* Coal Railings (*formerly Queensland Rail)

50

70

90

110

130

150

1990/91

1991/92

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

Mt

Source: QR


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QR Rail Snapshot

250 locomotives

5 500 coal wagons

Average 470 services a week

Train Sizes up to 10 000 t

Average 7 000 t


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Queensland Coal Exports by Port(2003/04 Provisional Figures)

Gladstone

Brisbane

Abbot Point

Dalrymple Bay

Hay Point

LV Coal

Other

3 Mt

42 Mt

34 Mt

44 Mt12 Mt

Source: Barlow Jonker Aug 04


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CQPA Port of Gladstone - Coal Exports

0

5

10

15

20

25

30

35

40

45

1999/00 2000/01 2001/02 2002/03 2003/04

Mt

Barney Poin t

RGTCT Non -blended

RGTCTBlended

1993/94 exports

= 18 Mt approx

Source: Central Queensland Ports Authority


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Hay Point Coal Terminal Throughput

0

5

10

15

20

25

30

35

40

1999/00 2000/01 2001/02 2002/03 2003/04

Mt

ProvisionalSource: Barlow Jonker Aug 04


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Dalrymple Bay Coal Terminal- Historic and Projected Capacity

0

10

20

30

40

50

60

70

80

90

100

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Australian Fiscal Year (ending 30 June)

Mtpa

Actual Throughput

Net Operational Capacity

High Case pro jectionsLo w Case pro jectio ns

Source: Prime Infrastructure

Projected

Expansion

Stage 1

2

3

45

6

High

Low


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Util isation of Port Capacity - 2003

97 %

91 %81 %

0

10

20

30

40

50

60

Dalrymple Bay Gladstone Hay Poin t

Mt

Exports (Mt) Capacity (Mt)

Source: Barlow Jonker Aug 04


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Queensland Coal Industry- Working Days Lost per 1000 Employees

0

1000

2000

3000

4000

5000

6000

7000

8000

1996 1997 1998 1999 2000 2001 2002 2003

Calendar Year

No. of Days

Source: Australian Bureau of Statistics


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End Use


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Pulverized Coal Injection into Blast Furnaces

Coke

PCI

Coal

Coke Ovens Blast Furnace Coal Grinding andInjection System

Courtesy of BMH


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Typical PCI Installation

Raw Coal

Blast Furnace L

10 000 t HM / d

NaturalGas

Nitrogen

Booster Compressors

2000 t

Injection Station

2 x 19

834 t

2 x 42 t/h

2 x 42 t/h

PulverizersSource: Claudius Peters Technologies GmbH


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0

10

20

30

40

50

60

70

Europe Japan Brazi l * China * India

No of BFs

Operat ing BF PCI F it ted

* China have another 130 furnaces between 200 and 1000 m3. Brazil excludes charcoal BFs

PCI Coverage by Region & Average Injection Rates(furnaces larger than 1000 m3)

155

Average PCI Rate

kg/tHM

125

135

125

130


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0

510

15

20

25

30

35

40

45

97 98 99 00 01 02 03 04F 05F 06F 07F 08F 09F 10F

Mt

Other

Canada

Venezuela

Indonesia

RSA

Austral ia:Other

Austral ia: LowVo l

PCI Coal Exports by Origin

F = ForecastSource: Barlow Jonker Aug 04

Vietnam includedin Other

Coddington Intl

Hill & Associates


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Queensland LV Coal - Exports by Region

0

2

4

6

8

10

12

14

16

18

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

Austral ian Fiscal Years (ending 30 June)

Mt

Other

Americas

EU15

Asia

Source: Department of Natural Resources & Mines - Qld Coal Industry Reviews


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0

5

10

15

20

25

30

35

40

1997 1998 1999 2000 2001 2002 2003 2004

F

2005

F

2006

F

2007

F

2008

F

2009

F

2010

F

Mt

Other

Americas

EU15Asia

Demand for Imported PCI Coal

Source: Barlow Jonker Aug 04 F = Forecast


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75 80 85 90

Carbon (%daf)

0.2

0.4

0.6

0.8

1.0

Replacem

entRatio

European correlation (Brouwer & Toxopeus, 1991)*

Other European correlation (1999)*

Japanese correlation (Ishii, 2000)*

Modelling 1 (Hutny and others, 1990)**

Modelling 2 (Fukushima, 2000)**

* Actual blast furnace performance

** Theoretical computer model

Replacement Ratio(RR = kg of coke replaced for each kg of coal injected)

LV Coals


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The LV Advantage (4 Mtpa HM)

High Vol PCI

Coking Coal 509 kg/tHM @ $US50/t

Yields 386 kg/tHM Coke

PCI 150 kg/tHMRR 0.76 & $US40/t

Coal Cost = US$31.45 /tHM

= US$126 million pa

Savings US$ 6 mil lion pa



PCI 150 kg/tHMRR 0.92 & $US40/t


= US$120 million pa

Savings US$ 12 mil lion pa

LV PCI

All coal pr ices FOB basis coke blend o f HCC & SSCC coalsExcludes value of by-products, coke oven gas and coke breeze




= US$132 million pa

No PCI

Coal prices are for comparison purposes only.RR = coke replacement ratio


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Low Vol PCI Coal High Vol PCI Coal

Low VM Coal High VM Coal

Hot Blast:Equal orSlightly Higher

Hot Blast:Equal orSlightly Lower

O2 Rate:Equal orLower

O2 Rate:Equal orHigher

Permeability:Equal orSlightly Lower

Permeability:Equal orSlightly Higher

Gas Reduction:

Lower

Gas Reduction:

Higher

RAFT: Higher RAFT: Lower

CombustionEfficiency: Lower

CombustionEfficiency: Higher

Fuel Ratio: LowerCoke Ratio: Lower

Fuel Ratio: HigherCoke Ratio: Higher

Top Gas Vol.: LowerCalorific Value: Lower

Top Gas Vol.: HigherCalor ific Value: Higher

Dust : Equal orSlightly Higher

Dust : Equal orSlightly Lower

Impact of PCI Coal Type on BF Operation


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Pig Iron Production by Calendar Year* assumes same production in 2nd half of year 2004

0

25

50

75

100

125

150

1997 1998 1999 2000 2001 2002 2003 2004 P

Mt Asia (excluding China)

0

25

50

75

100

125

150

1997 1998 1999 2000 2001 2002 2003 2004 P

M t EU15

0

20

40

60

80

1997 1998 1999 2000 2001 2002 2003 2004 P

Mt NAFTA

0

20

40

60

80

1997 1998 1999 2000 2001 2002 2003 2004 P

M t South America

*

*

*

*

Source: IISI


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Japan Pig Iron by Calendar Year* assumes same production in 2nd half of year 2004

70

72

74

76

78

80

82

84

1997 1998 1999 2000 2001 2002 2003 2004

Calendar Year

Mt

Projected

*

Source: IISI


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15

16

17

18

19

20

21

22

Months - August 2003 to Ju ly 2004

Mt 2003/2004 Corresponding period 12 months previous

Countries include: Japan, Belgium,France, Germany, The Netherlands, UK,Brazil , India, Korea & Chinese Taipei

Blast Furnace Iron Production- Major Coal Importing Countries, August 2003 to July 2004


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CRU Steel Price Index, Global

60

70

80

90

100110

120

130140

150

160

Jan-02

Mar-0

2

May

-02

Jul-0

2

Sep-02

Nov

-02

Jan-03

Mar-0

3

May

-03

Jul-0

3

Sep-03

Nov

-03

Jan-04

Mar-0

4

May

-04

Jul-0

4

Sep-04

Index Value

Apri l 1994 = 100

Source: CRU Monitor

I t f Ch i PCI U P tt


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20 % LV 40 % LV 60 % LV

80 % LV

100

110

120

130

140150

160

170

180

190

200

0 5 10 15 20 25

LV PCI Coal Requi rements (Mt)

PCI Rate (kg/tHM)

Source: IISI

* Approx 190 Mt hot metal

(Example only)

Impact of Changing PCI Usage Patterns- Top 10 Steel Producers* Using Imported PCI Coal


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Features of Queensland LV Operations

5 independent producers, operating in a

politically stable environment

Large reserve base

Favourable mining conditions (open cut)

World class infrastructure including 3 majorcoal terminals

Proven performance and capacity to expand


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The future &concludingcomments


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The Future

Demand for LV coal is a function of:

BF hot metal production (coastal plants)

PCI rate (kg/t)

% of low vol in PCI coal

Also depends on price competitiveness relative

to alternative fuels (thermal coal, oil and gas)

Immediate outlook is for continuing strong

demand with measured production increases

from existing mines along with new capacity


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Jellinbah Resources

Thank you

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