Gujarat NRE Coke Ltd Investor Presentation September 2010 ARUN - - PowerPoint PPT Presentation

Gujarat NRE Coke Ltd

ARUN KUMAR JAGATRAMKA

Chairman & Managing Director

September, 2010

Investor Presentation – September 2010

DISCLAIMER

This presentation contains only a brief overview of Gujarat NRE Coke Ltd and its associated entities (“Gujarat") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Gujarat‟s projects, may rely on various assumptions and subjective interpretations which it is not possible 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 Gujarat to 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 the information in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any 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 by

• Mr. 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 under

consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition 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 context in which it appears.”

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SECTION A Overview of Met Coke Demand – Supply gap

3

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 reversal – production of coke for a surplus for export is discouraged



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



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



Quarterly pricing of coking coal from FY10 – adds a new dimension to the coke market



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

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

World Met Coke Outlook

Source :Internal company forecasts

100 200 300 400 500 600 700 800 900 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Actual production Expected demand

MTPA

India is one of the top importers of Met Coke World Met Coke Imports

Source : GTIS, Internal company forecasts

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
• f coke in 2010
• Declining Inventories in Europe
• Increase in coke rates and

higher PCI usage

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 Asia….

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

ferroalloys and soda ash

 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??

SECTION B GUJARAT NRE COKE LIMITED

A SNAPSHOT

• Largest independent producer of Metallurgical Coke in India
• Listed on the Bombay and National Stock Exchanges, with a market

capitalisation of around USD 0.70 billion (No. of shareholders 1,60,000)

• Profit earning and dividend paying with strong financials and credit rating of

AA- for long term borrowing and PR1+ for short term borrowing.

• Met Coke capacity 1.25 million tons, being increased to 4 million tons by

2014/15.

• 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 18001:1999

certification

• Rated one of the top 10 company by 10-years profit performance in the latest

edition issued by Business Today on India’s Most Valuable Companies

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1 Plant at Bhachau, Gujarat 2 Plant at Khambalia, Gujarat 3 Plant at Dharwad, Karnataka 4 Proposed Plant, Nayudupeta, Andhra Pradesh 5 Registered Office, Kolkata 6 Corporate Office, Ahmedabad 1 2 3 KANDLA PORT GOA PORT NEW MANGALORE PORT 4 5 KRISHNA PATNAM PORT 6

Our Presence in India

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GNCL OPERATIONS…

HARD COKING COAL (NSW, AUSTRALIA)

RESOURCES 573 MMT

LOW ASH METALLURGICAL COKE

1.25 MMTPA

Gujarat NRE Coking Coal Ltd (ASX: GNM)

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

STEEL UNIT TMT BARS : 0.311 MMTPA

BHACHAU UNIT

0.324 MILLION MTPA

KHAMBALIA UNIT

0.358 MILLION MTPA

(Leased) DHARWAD UNIT

• 0. 324 MILLION MTPA

Waste Heat Recovery Power Plants

Khambhalia* 15 MW Bhachau* 15 MW Dharwad* 30 MW Total 60 MW Wind Power 87.5 MW

In Australia In India

Coal Washeries

Khambalia 0.75 Bhachau 0.75 Dharwad * 0.90 * Under implementation

DHARWAD UNIT

0.25 MILLION MTPA

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GUJARAT NRE COKE LIMITED

Listed on NSE & BSE in India

Gujarat NRE Limited Pluton Resources Ltd. Pike River Coal Ltd. Wonga Coal Pty Ltd

Coal Mine in New

• Zealand. Coal off-

take for 400,000 MTPA

Gujarat NRE Coking Coal Ltd

Listed on ASX: GNM

Rey Resources Ltd

Exploration tenements in Australia, Chile & Peru

NRE No. 1 315 MT

Exploration tenements in Australia

Gujarat NRE Resources NL Gujarat NRE FCGL Pty Ltd NRE Wongawilli 258 MT

100% 4.20% 7.56% 100% 42% 12% 100% 100%

International Operations

9.71% 23.53%

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BOARD OF DIRECTORS

• Mr. Girdharilal Jagatramka

Chairman Emeritus

 The main promoter of GNCL. Has more than five decades of

business experience Arun Kumar Jagatramka

Chairman & Managing Director

 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

Council and Australian Coal Research Association

 Appointed as an honorary NSW Sydney Ambassador to India

• Mrs. Mona Jagatramka

Non-Executive Director 

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

• Mr. Rajendra Prasad Jain

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. 14

BOARD OF DIRECTORS (contd..)

• Mr. Chinubhai R Shah

Non-Executive Director 

Former President of ICSI



At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila Pharmaceuticals Ltd., Apollo Hospitals International Ltd., Gujarat State Electricity Corpn. Ltd., etc.



Also the Chairman of India Renal Foundation.

• Dr. Basudeb Sen

Non-Executive Director 

Former CMD of IIBI



Former Executive Director of UTI Mutual Fund.



Holds directorship of various reputed Listed Companies viz. ITC Ltd., South Asian Petrochem Ltd., etc.

• Dr. Mahendra Kumar Loyalka

Non-Executive Director 

Leading medical practioner



Past District Governor of Lions Club International

• Mr. Murari Sananguly

Non-Executive Director 

Former CMD of Kudermukh Iron Ore Company Ltd.



Presently on the Board of Coal India Ltd.

• Mr. Subodh Kumar Agrawal

Non-Executive Director 

Eminent Chartered Accountant



Presently Member of Central Council of ICAI.



Chairman, Committee for members in Industry (ICAI) 15

Sl. No. Particulars % of Holding

1 Promoter Group 47.05 2 Banks, Mutual Funds & FIIs 28.25 3 Indian Public and others 24.70 Total 100.00

• 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

SHAREHOLDING PATTERN

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47% 25% 28%

Promoter Group Banks, Mutual Funds & FIIs Indian Public & Others

200 400 600 800 1000 1200 1400 1600 Year Ended 31.03.2006 Year Ended 31.03.2007 Year Ended 31.03.2008 Year Ended 31.03.2009 Year Ended 31.03.2010

• Rs. In Crores

Turnover EBITA

PERFORMANCE OF LAST 5 FINANCIAL YEARS

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

0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00

31.01.06 22.11.07 25.03.08 29.12.09 05.01.10 05.03.10

1000 2000 3000 4000 5000 6000 7000 8000

GNCL(LHS) Nifty (RHS)

NRE has outperformed the NIFTY in last 5 years

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DVR SHARE PRICE COMPARED WITH NIFTY

32.00 34.00 36.00 38.00 40.00 42.00 44.00

27-May-10 1-Jun-10 24-Jun-10 30-Jul-10 1000 2000 3000 4000 5000 6000 7000 8000

GNCL DVR Shares (LHS) Nifty (RHS)

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

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PHENOMENAL INVESTOR RETURNS

Financial Year Bonus Ratio Record Date Allotment 1995/96 11:10 26 Nov 1996 23 Dec 1996 2001/02 1:2 30 May 2003 16 Jun 2003 2002/03 1:2 21 Apr 2004 30 Apr 2004 2003/04 1:1 10 Feb 2005 12 Feb 2005 2004/06 1:1 30 Sep 2006 18 Oct 2006 2007/08 2:5 20 Oct 2008 31 Oct 2008 2008/09 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)

If a person would have invested Rs. 1 in this stock on January 3, 2000, his value of investment on December 23, 2009 would be Rs.106

(Source: Economic Times)

GROWTH PLAN – PRODUCTION FOCUS

0.13 0.24 0.50 0.68 0.68 0.68 1.06 1.25 2.25 4.00

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2001-02 2002-03 2003-04 2004-06 2006-07 2007-08 2008-09 2009-10 2011-12 2014-15

PRODUCTION CAPACITY (MMTPA)

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Gujarat NRE – Transforming into a leading coke exporter

 Brazil  Argentina  France  Italy  Japan  South Africa

With increased Coke capacity and a secured source of Hard Coking Coal from its own mines Gujarat NRE is a reliable Source of Met Coke In addition to meeting the increasing domestic coke demand, Gujarat NRE Coke has been tapping the opportunity in met coke export market – to fill in the void created by global short supply

SECTION C INDIAN STEEL INDUSTRY VISION 2020 – And COKING COAL OUTLOOK

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Steel Development Pattern

China has already reached its peak in growth rate, while India is on the rise….. India‘s long term steel development pattern is similar to most countries, following the same pattern

• f more than

a century old

China & India Driving Steel growth

Steel Production forecast by Region / Country (in Million Tonnes)

300 MILLION TONS STEEL CAPACITY

 Crude 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

India has potential access to:

 Infrastructure – Power, Ports, Surface Transportation etc  Human Resources  Capital  Raw materials – except COKING COAL

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INDIAN STEEL VISION – 2020

Urgent need for Coking Coal to meet India‘s projected Steel growth

2020 Steel increase Increase in Met Coal Demand by 2020 10%pa 100 61 12%pa 135 84 15%pa 202 132 20%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 market



HCC = more in demand at higher rates due to rising productivity ~ doubling market MT

Strong demand from Steel Industry and domestic unavailability causing a surge in imports

Source: CRISIL, internal estimate

MT

Present and Future Coking Coal Imports by India

Source: ISMW

Major Coking Coal Supplying Countries of India

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

Australian Hard Coking Coal Producers

SECTION D GUJARAT NRE COKING COAL LIMITED

Gujarat NRE Coking Coal Ltd - Performance at a Glance

GUJARAT NRE COKING COAL LTD OVERVIEW

Wollongong Kiama Port Kembla

Port Kembla coal loader 18 Mtpa Sutton Forest proposal Berrima Dendrobium

• W. Tahmoor

Appin Westcliff Northcliff

Southern Coalfield

NRE No. 1 NRE WONGAWILLI BHP Illawarra Coal Peabody Metropolitan Xstrata Tahmoor

• ASX listed hard coking coal producer

»

Market capitalisation of ~A$0.6 billion

• 100% owner of two underground mines in NSW,

Australia

»

NRE No. 1 & NRE Wongawailli

• JORC reserves of 99.8Mt and resources of 572.9Mt
• 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)

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GNCCL OVERVIEW (contd..)

Capital structure (as per 31 May 2010) Share price performance (LTM) Share Price (A$) 0.58 Shares (m) 889.7 Options (m) 45.10 Market Capitalisation (A$) 516.03 Debt (m) 140.0

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Shareholding pattern

77% 14% 9%

Gujarat NRE Coke Limited & Associats Financial Institutions Nminees & Others

EXPERIENCED BOARD

Board Arun Jagatramka

Chairman B.Com (Hons), FCA, AIMM

• Chartered Accountant with 25 years of professional and management

experience

• 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 Anghie

Director & Audit Chairman BBus, FCA, FCPA, MAICD

• Experienced financially qualified Professional with commercial skills and

legal/regulatory and governance expertise

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

Don Carroll

Director B.E (Mining), MAusIMM, MAIDC

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

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

Andrew Firek

Director M.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 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 Jagatramka

Director B.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

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Board of Directors Management Committee Arun Jagatramka S Murari P R Kannan Sanjay Loyalka Head of Operations Steven Bow

(28 years Underground Coal experience with BHPB)

STRONG MANAGEMENT STRUCTURE

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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

(33yrs UG Coal with Oakdale Collieris Ltd & BHPBIC)

• Dr. Chris Harvey

(35yrs coal industry with NSW Dept. Minerals and Resources)

Steven Coffee

(28yrs UG coal in NSW Coal fields with BHPB)

Naveen Kumar Nanda

(16yrs Snr Accounting)

Sanjay Sharma

(12yrs Business Management)

Rhys Brett

(8yrs UG Coal with Anglo, Centennial & Xstrata)

NRE No. 1 MINE

NRE 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
• 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 reserves of 92MT and Resources of 314MT

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• No. 1 Mine - Strategy

 Long Term future

 Coal quality/productive/correct cost profile/safety/people

 Coal Quality

 300 mt Resources and 100 mt mineable Reserves.

 Productivity

 New longwall 3500 tph peak

capacity

 Trunk conveyors 4000 tph  Gate rd. conveyors 3500 tph  LW start Dec. 2011  Targeting 3 mtpa by FY 14

0.5 0.7 1.5 1.8 3.0 3.2 0.0 1.0 2.0 3.0 4.0 FY10 FY11 FY12 FY13 FY14 FY15 Mt

Journey to Date



The first 5 years

 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



Last 12 months

 Coal production in Wonga Mains

started

 RMains drift started  Commissioned Wonga Mains 1 belt

(4000 tph belt)

 Continued Bulli Seam operations

 O & 311 Panel complete, 310 Panel

commenced

Work in Progress

NRE No.1 MINE RESOURCES AND RESERVES

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Resources (Mt) Reserves (Mt) Potential Reserves (Mt)* As per mine plan (Mt)** Seam Measured Indicated Inferred Total Proven Probable Total

Total

Bulli 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

*Potential reserve of 6.4 million is additional to 29.4 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.

NRE WONGAWILLI MINE

NRE WONGAWILLI COLLIERY

• Located in the Southern Coalfields of NSW

»

~14km south-west of Wollongong

»

~20km from Port Kembla Coal Terminal

• Consolidates 3 Collieries

»

Elouera Colliery (previously owned by BHP)

»

Avondale Colliery

»

Part of the Huntley Colliery

• 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
• Approximately A$120 million invested (to March 2009) with plans to

invest a further A$175 million to March 2013

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NRE Wongawilli Mine - Strategy

 Long Term future

 Coal quality/productive/correct cost profile/safety/people

 Coal

 260 mt Resources

 Productivity

 Upgraded longwall 3000 tph

peak capacity

 Trunk conveyors 4000 tph  Gate rd. conveyors 3500 tph  New LW domain to start in 2014.  Targeting 3 mtpa by FY 14

0.8 1.6 1.7 1.5 1.4 3.0 0.0 1.0 2.0 3.0 4.0 FY10 FY11 FY12 FY13 FY14 FY15 Mt

NRE Wongawilli Mine – miles traversed



Background

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



Last 12 months

 LW production commenced.  Nebo Access commenced.  Finalise Nebo longwall designs  Exploration Program completed for Wonga

South

 New Car parks constructed  New Bathrooms being constructed  Surface screen/sizer constructed and

commissioned.

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

Work in Progress

NRE WONGAWILLI COLLIERY RESERVES & RESOURCES

48

Resources (Mt) Reserves (Mt) Potential Reserves (Mt)* As per mine plan (Mt)** SeamMeasured Indicated Inferred

Total Proven Probable Total Total

Bulli — 8.0 25.0 33.0 — — — — — Wongawil li 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 30.8

*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. **Total of Reserves and Potential Reserves.

NRE WONGAWILLI COLLIERY

Longwall with its shearer New Joy continuous miner that arrived at Wongawilli on March’10

49

50

COAL QUALITY

Typical washed coal quality

Note: 1 Based on Bowen Basin coal quality estimates 2 Based on inherent moisture content of Peak Downs coal

Source: Australian Coal Association, Company reports, Broker reports

Bulli Wongawilli Average range for coking coal1 Ash (%) 9.6 10.0 7.0 – 10.5 CSN (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 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 Phosphorous (%) 0.039 0.010 0.005 – 0.080

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

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INFRASTRUCTURE POSITIONING

• Port Kembla Coal Terminal remains an

unconstrained coal export port

» 13.2Mt throughput in 2008 » Ship loading capacity is 18 Mtpa

being increased to 25 Mtpa

• ROM coal from NRE No. is transported

via truck haulage to Port Kembla

» Proven ability to transport up to 3

Mtpa

• ROM

coal from Wongawilli is transported via rail to Port Kembla

» Historically up to 2 Mtpa has been

transported using existing infrastructure

» The capital program budgets for an

infrastructure upgrade that will allow for the transport of 4 Mtpa

Wollongong

Port Kembla

Rail Road NRE No. 1 NRE Wongawilli

Gujarat NRE holds 16% equity in Port Kembla Coal Terminal and a seat on the Board.

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.



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

»

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

GROWTH PLAN – PRODUCTION FOCUS

53 Wongawilli Longwall Introduced NRE 1 Longwall Introduction Wongawilli Longwall Upgrade

HISTORICAL CAGR 50.7% MT FUTURE CAGR 39.6%

PROJECTED CAGR 43.7% OVER 8 YEARS

GROWTH PLAN – CAPEX

54

Current Status : NRE no 1

»

Will result in > 4mtpa capacity mine

»

Wonga Mains well advanced

»

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

»

2 x New CM‟s purchased

»

Order for Joy LW upgrade placed

Accolades

In April 2008, appointed honorary NSW ―Sydney Ambassador‖ to India by the Premier of NSW This year declared as the ―Person of the Year 2009‖ by the Illawarra Mercury

Premier‘s NSW Export Awards

The Australian Export Awards is a national awards program which recognizes and honors export excellence thorough innovation and commitment. The Company won the 2009 Premier‘s NSW Export Award in Minerals and Energy sector and became one of the finalists at National level.

55

THANK YOU

Mr Arun Kumar Jagatramka

Chairman & Managing Director

Gujarat NRE Coke Limited 5th Floor, Block ‗C‘,22, Camac Street, Kolkata – 700 016 Phone: - +91-33-22891471 Email: arun@gujaratnre.com www.gujaratnre.com

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