New Hope Corporation Limited · ASX:NHC
New Hope — Corporate Update (April 2008)
61 slides from New Hope's corporate update, Apr 14, 2008
Slide 1: Letter to ASX announcing operations visit presentations
ABN 38 010 653 844 Contact Phone: +61 7 3810 0500 Fax: +61 7 3810 0555 For personal use only 14 April 2008 Australian Securities Exchange Attention: Company Announcements Please find attached various presentations to be made to attendees of New Hope’s Queensland operations visit, from 14th to 17th A
Slide 2: Queensland Bulk Handling Overview
For personal use only Queensland Operations Tour Queensland Bulk Handling Overview 14 – 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing containe
Slide 3: QBH Port Facility Overview
QBH Port Facility Overview For personal use only Facilities 100% owned by New Hope Corporation – Operates under Port of Brisbane access regime – Land leased from Port of Brisbane +5 Mtpa capacity servicing two current export coal producers Expansion potential Essentially demurrage free Multi product
Slide 4: QBH Port Facility History and Coal Handling
QBH Port Facility History For personal use only Company Structure – Originally two Shareholders (50% each). Construction began in 1982 First Vessel loaded was the MV Tamesis in February 1983 – 62,000 tonnes of West Moreton steaming coal Original receivals by rail and barge from West Moreton region –
Slide 5: QBH Port Facility Ship Loading
QBH Port Facility Ship Loading For personal use only Single Berth Vessel capability: – 110,000 DWT (max) Beam: – 43 metres (max) Shiploader Rate: Draft: – 2,000tph – 13.5 metres plus tide (max) Shiploader Longitudinal Travel: Air Draft: – 195 metres – 14.8 metres plus tide (max) – Wharf 240m; Dolphi
Slide 6: QBH Port Facility Aerial View and Rail Receival
QBH Port Facility Aerial View prior to Expansion Activity 2 For personal use only Expansion Area Sunstate Cement 14 – 17 April 2008 9 QBH Port Facility Rail Receival 14 – 17 April 2008 10 5
Slide 7: QBH Stockpile Handling and Ship Loading Activity
QBH Port Facility Stockpile Handling Activity For personal use only 14 – 17 April 2008 Back 11 QBH Port Facility Ship Loading Activity 14 – 17 April 2008 12 6
Slide 8: QBH Port Facility Current Operations and Proposed Layout
QBH Port Facility Current Operations For personal use only Two existing Coal producers and potential for others New Hope acquired the remaining 50% of QBH on 1 Aug 2007 Record 5.263 million tonnes shipped in calendar 2007 Coal Throughput (6 months ended 31 January 2008) – 2007: 2.1 million tonnes –
Slide 9: QBH Port Facility Expansion Layout
QBH Port Facility Expansion Layout 2 For personal use only 14 – 17 April 2008 15 QBH PortPortions Proposal Proposed Facility Layout Conceptual Layout – Post Expansion 14 – 17 April 2008 16 8
Slide 10: QBH Port Facility New Quay Line and Settlement Pond
QBH Port Proposal Proposed New Facility Portions Layout Quay Line New Adjacent Quay Line For personal use only 14 – 17 April 2008 17 QBH PortPortions Facility New Settlement Proposal Proposed LayoutPond New Settlement Pond 14 – 17 April 2008 18 9
Slide 11: QBH New Stockpile Pads
QBH Port Facility New Stockpile Pads For personal use only 14 – 17 April 2008 19 “The Independent Energy Alternative” People are Important Margin Management makes us Competitive Continuous Improvement makes us Effective Growth is an Imperative 10
Slide 12: Marketing Overview
For personal use only Queensland Operations Tour Marketing Overview 14 – 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this docum
Slide 13: Group NHC Total Sales and Export Sales
Group NHC Total Sales Y/E 31 July 2008 For personal use only Australia 28% Japan 41% Korea 4% Taiwan/China Americas 22% 5% 14 – 17 April 2008 3 Group NHC Export Sales Y/E 31 July 2008 Korea 6% Taiwan/China 31% Japan 56% Americas 7% 14 – 17 April 2008 4 2
Slide 14: The Independent Energy Alternative
For personal use only “The Independent Energy Alternative” People are Important Margin Management makes us Competitive Continuous Improvement makes us Effective Growth is an Imperative 3
Slide 15: West Moreton Overview - April 2008
For personal use only Queensland Operations Tour West Moreton Overview 14 - 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this do
Slide 16: West Moreton Overview and History
West Moreton Overview For personal use only Long history of coal mining activity – continuous mining activity since the 1870’s – underground & open cut; small scale Progressive encroachment by urban development Depletion of available coal resources New Hope Focus: ››››››› adding value by simultaneou
Slide 17: Jeebropilly Mine Recommencing
Future Development Activity Jeebropilly Mine Recommencing For personal use only Why? – Record thermal coal prices ~$US125/t – >> 5 million tonnes of economic reserves – Strong export customer demand – Rail and port capacities in place – Mining approvals in place (subject to revised Plan of Ops) – 1.
Slide 18: Economic Mining Areas and West Moreton Coal Measures
Economic Mining Areas Bremer River For personal use only 2nd Pit Air Base 3rd Pit 1st Pit CHPP 500m 14 – 17 April 2008 Rail Loop Amberley7 West Moreton Coal Measures Typical Geological Sequence Overburden Coal seams Partings 14 – 17 April 2008 8 4
Slide 19: Jeebropilly and New Oakleigh Proximity to Infrastructure
Jeebropilly Proximity to Transport Network & Infrastructure For personal use only to Warrego Hwy Proximity to transport routes ¾ major highways Walloon ¾ electrified rail Proximity to infrastructure Rail to Ipswich ¾ water & Brisbane ¾ power ¾ gas Rosewood to Cunningham Hwy ¾ urban development Prima
Slide 20: West Moreton Master Planning
Southern Freight Rail Corridor Study Queensland Government For personal use only 14 – 17 April 2008 11 West Moreton Master Planning Transition from mining to valued land use Active Mining Traditional Mine Rehabilitation Conceptual Future 14 – 17 April 2008 12 6
Slide 21: Jeebropilly Potential Future Land Use
Jeebropilly Concept – Potential Future Land Use For personal use only Concept: – Light industrial park Benchmark: – Metroplex light industrial park – Adjacent to Gateway Motorway Bridge – Adjacent to Brisbane River Low lying Water Body Subject to engineering assessments & 14 – 17 April 2008 regulato
Slide 22: New Oakleigh Potential Future Land Use
New Oakleigh Concept – Potential Future Land Use For personal use only Concept: – Urban and recreational Benchmark: – Forest Lake Water Body – Medium and high density housing – Supporting recreational space – Supporting commercial development Subject to engineering assessments & 14 – 17 April 2008 r
Slide 23: Using Land Productively
Using Land Productively … For personal use only Today Tomorrow 14 – 17 April 2008 17 “The Independent Energy Alternative” People are Important Margin Management makes us Competitive Continuous Improvement makes us Effective Growth is an Imperative 9
Slide 24: Exploration Projects Overview
For personal use only Queensland Operations Tour Exploration Projects Overview 14 – 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in
Slide 25: New Hope Exploration Overview
New Hope Exploration Overview ¹ For personal use only In-house exploration capability: – 2 rotary coring drilling rigs with 450m depth capability – 1 rotary coring drilling rig on order with 1300m depth diamond coring capability • Delivery mid 2008 – geological team of 6 people – 2 wireline logging
Slide 26: SE Queensland Region Regional Locality Map
SE Queensland Region Regional Locality Map Kingaroy For personal use only Chinchilla Kogan Creek Kogan Creek Tarong Wilkie Creek Dalby Acland QBH Export Fisherman Islands Open Cut Coal Mine Coal Terminal Coal Terminal Oakey BRISBANE Coal Deposit Oakleigh Power Station Toowoomba Ipswich Ipswich Town
Slide 27: Exploration Tenements Darling Downs Projects
Exploration Tenements Darling Downs Projects 2 For personal use only 10 Exploration Permits for Coal 1545 sub-blocks 4500 sq km Ground prospective for Walloon Coal Measures Target similar deposits to New Acland: – Shallow open cut resources – Small deposits leverage from New Acland infrastructure –
Slide 28: Central Queensland Exploration Tenements
Exploration Tenements Central Queensland Projects For personal use only New Saraji: – EPC 837 – MLA 70383 Lenton: – EPC 766 22 sub blocks – EPC 865 2 sub blocks – MLA 70337 Bee Creek: – EPC 777 141 sub blocks 14 – 17 April 2008 9 Exploration Tenements Lenton and Bee Creek Projects Potential Broughto
Slide 29: Lenton Project Resource Definition
Lenton Project Resource Definition For personal use only Drilling and coal quality analysis continuing – Total drill holes 200 – Open holes 1,901m and core holes 95m – Coal quality analysis ongoing Resource potential confirmed by NHC drilling: – 84 Mt open-cut coal resources to JORC status¹ – underg
Slide 30: Lenton Project Underground Potential and Development Program
Lenton Project Underground Potential Seismic Profile For personal use only ` 14 – 17 April 2008 13 Lenton Project Development Program Mining Lease 70337 recommended for grant Project suitable for rapid development after grant of ML Rangal Coal Measures – same coal seams as mined at the Burton Coal M
Slide 31: Lenton Cross Section and Bee Creek Status
Lenton Project Cross Section For personal use only Open Cut Resource B Burton Open Cut A A A Lenton Syncline B 14 – 17 April 2008 15 Bee Creek Project Status Working to define drilling target sites: – Using remote sensing techniques – Structurally complex – Hyperspectral mapping indicates possible M
Slide 32: Bee Creek Project Target Coal Measures
Bee Creek Project Target shallow Rangal and Moranbah Coal Measures For personal use only 14 – 17 April 2008 17 Bee Creek Project Hyperspectral Image Processing Rangal Coal Measures Moranbah Coal Measures Rangal Coal Measures 14 – 17 April 2008 18 9
Slide 33: New Hope JORC Resources
New Hope JORC Resources For personal use only As at 18 March 2008 Project Status Proven Probable Marketable Measured Indicated Inferred Total Reserves Reserves Reserves Resources Resources Resources Resources (mt) (mt) (mt) (mt) (mt) (mt) (mt) New Acland Mine 231 200 234 260 422 107 789 New Oakleigh
Slide 34: Arrow Energy Tenure Map and Common Ground
Arrow Energy Tenure Map For personal use only Shareholding at 31/01/08 17.8% Cost of shares $112M Market value at 25/03/08 $223M Unrealised profit before tax $111M Moranbah Styx Basin Boyne River Surat Basin Clarence Moreton 14 – 17 April 2008 21 New Hope - Arrow Energy Common ground holdings in the
Slide 35: Summary
Summary For personal use only New Hope through its exploration activities: – has significant coal Resources and Reserves – has in-house resource definition and project development capability – has the foundation for growth opportunities for the future 14 – 17 April 2008 23 “The Independent Energy Al
Slide 36: New Acland Mine Overview - 7 April 2008
For personal use only Queensland Operations Tour New Acland Mine Overview 14 - 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this
Slide 37: New Acland Coal Resources
New Acland Coal Coal Resources For personal use only High quality thermal coal resource Large resource base: – 793 million tonnes of in situ resources (¹JORC) – 236 million tonnes of Marketable Reserves (¹JORC) Extensive mining leases: – Current leases cover 43 million tonnes saleable coal – Mining
Slide 38: New Acland Rapid Project Development and Mining Processes
New Acland Coal Rapid Project Development For personal use only Reserves purchased in 1999 Construction commenced May 2002 First coal produced October 2002 Sustained Growth: – 1.7 Mtpa – Feb 2003 – 4.2 Mtpa – May 2008 Mining to date: – Total waste excavated: 86.8 M bcm – Total Run-of-Mine Coal: 26.3
Slide 39: New Acland Capacity, Growth and Human Resources
New Acland Coal Capacity and Growth For personal use only Production growth: – 3.65 Mtpa in 2007 – up to 4.2 Mtpa from May 2008 – 10 Mtpa ultimate capacity Multiple mining pits from mid 2008 Coal Handling and Preparation Plants : – 2 x plants – total 1,100 tonnes per hour – 7 days per week operation
Slide 40: Queensland Open Cut Productivity and Saleable Coal Produced
Queensland Open Cut Mines Productivity 2006 For personal use only Source: Qld Dept of Natural 14 – 17 April 2008 9 Resources and Water, WilsonHTM Saleable Coal Produced Steady and Consistent Growth CHPP Clean Coal Production 400 Target 350 Thousand tonnes 300 250 200 150 100 50 0 Ap 0 3 Ap 0 4 Ap -0
Slide 41: New Acland Mining Equipment
New Acland Coal Mining Equipment For personal use only Current: Growth: Overburden Removal Fleet: Overburden Removal: – 2 x Hitachi EX3600 Excavators – 1 x Hitachi EX5500 Excavator - on – 6 x Cat 789 Haul Trucks order – additional Haul Trucks - progressing Coal and Interburden Fleets: – 3 x Cat 992
Slide 42: New Acland Administration Complex and Logistics
New Acland Coal Administration and Office Complex For personal use only 14 – 17 April 2008 13 New Acland Coal Logistics Proposed Access Road Environmental Dam 1 Tree Screening Topsoiling of Out of Pit Dump MDL 244 Raw Water Dam Site Infrastructure Dump (office, Reshaping workshop etc) Clean Coal Act
Slide 43: New Acland Future Development and Landholdings
New Acland Coal Future Development For personal use only Mining Lease application underway: – Covers entire resource – Seeking environmental approval for 10 Mtpa – Progressively securing land Development plans are classified by Qld Govt as a “Project of State Significance” Foundations for Growth: –
Slide 44: Acland Pastoral Company Operating Statistics
For personal use only 14 – 17 April 2008 17 Acland Pastoral Company Operating Statistics December 2007 Summary Land Area (hectares) Lease Back 2,400 Mining Activity 900 Available for Agriculture 4,100 Total Owned 7,400 Cropping (hectares) 2,100 Grazing (hectares) 2,000 Winter 0 Cattle (number) Summe
Slide 45: The Independent Energy Alternative
For personal use only “The Independent Energy Alternative” People are Important Margin Management makes us Competitive Continuous Improvement makes us Effective Growth is an Imperative 10
Slide 46: New Saraji Project Overview
For personal use only Queensland Operations Tour New Saraji Project Overview 14 – 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in t
Slide 47: New Saraji Project Highlights
New Saraji Project Highlights 1 For personal use only A large, high quality metallurgical coal resource – Current total JORC resource1 of 690 million tonnes Future drilling is expected to significantly increase the defined resource – Target +1.5 billion tonnes Central to existing regional infrastruc
Slide 48: New Saraji Locality Plan and Background
New Saraji Project Locality Plan For personal use only New Saraji Locality Plan Queensland Bowen Basin Proximity to infrastructure Proximity to export port 14 – 17 April 2008 5 New Saraji Project Background - History Coal Exploration Activities: – BHP between 1999 and 2002 – located the Dysart and H
Slide 49: New Saraji Exploration to Date and Seismic
New Saraji Project Exploration to date For personal use only New Saraji Exploration drill holes to date Current Resources: – Indicated and Inferred Resource 690 million tonnes1 of metallurgical coal – Target +1.5 billion tonnes Depth of cover: – ranges from 130 metres to +450 metres Resource definit
Slide 50: New Saraji Resources and Current Resource Definition
New Saraji Project Resources For personal use only Moranbah Coal Measures – target seams – P Seam • 77 Mt indicated + inferred resource – Harrow Creek Upper • 4 – 7 metres in thickness • most significant – 281Mt indicated + inferred resource – Main Dysart Seam • 4.5 – 7.5 metres in thickness • 271 M
Slide 51: New Saraji JORC Resource Zone and Coal Quality
New Saraji Project JORC Resource Zone For personal use only New Saraji Resource Zone 14 – 17 April 2008 11 New Saraji Project Indicative Coal Quality Quality Parameter Value Range Ash 8.0 – 8.5% Volatile Matter 17 – 18% CSN 8–9 Fluidity 20 – 50 ddpm RoMax 1.60 – 1.65 Vitrinite ~60% Carbonisation Tes
Slide 52: New Saraji Expected Production Profile and Mining Method
New Saraji Project Expected Production Profile For personal use only Project construction expected to commence 2010 Longwall operations commencing 2012 Target ROM output 7Mtpa by 2015 Target ROM output 14Mtpa by 2017 Ultimate saleable coal up to 10Mtpa from 2016 Annual Production (ROM output) Annual
Slide 53: New Saraji Surface, Water and Rail Infrastructure
New Saraji Project Surface Infrastructure For personal use only Lake Vermont Project next door: Conceptual Mine Plan and Layout (H16 seam only) – constructing a rail spur to connect to QR Goonyella Network – facilitates rail access for New Saraji Mine Surface Infrastructure: – self-sufficient dedica
Slide 54: New Saraji Port Infrastructure and Coal Seam Gas
New Saraji Project Port Infrastructure For personal use only Current Rail and Port Infrastructure: – Current limitations solved by 2010-11 – Options: • Abbot Point • Dalrymple Bay • Gladstone – Wiggins Island Secured capacity from Ports Corp of Qld: – through Abbot Point Coal Terminal – 395 km rail
Slide 55: New Saraji Project Conclusion
New Saraji Project Conclusion For personal use only An extensive underground mining project with significant export metallurgical coal resources The project offers an opportunity for NHC to enter the metallurgical coal market with excellent products 14 – 17 April 2008 19 “The Independent Energy Alte
Slide 56: Coal to Liquids Project Overview and Group Summary
For personal use only Queensland Operations Tour Coal to Liquids Project Overview and Group Summary 14 - 17 April 2008 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice.
Slide 57: Coal to Liquids Plant Concept and Status
Coal to Liquids Project Plant Concept For personal use only Gas Heating Source Power Generation Coal Wash Plant Clean Coal Coal Gassifier LIQUIDS PLANT Diesel , Gasoline & Jet Fuel Raw Coal Coal Mine Inert Waste Sulphur By-Product Carbon Enrichment By-Product 14 – 17 April 2008 3 Coal to Liquids Pro
Slide 58: Coal to Liquids Next Steps and Strategic Summary
Coal to Liquids Project Status 2 For personal use only Next Steps: – Confirm gasification performance 3Q, 2008 – Assess catalysts performance 3 – 4Q, 2008 – Initiate fully integrated tests 4Q, 2008 / 1Q, 2009 – Initiate Government approvals process 2Q, 2008 14 – 17 April 2008 5 New Hope Corporation
Slide 59: Strategic Summary Horizons
New Hope Corporation Strategic Summary 2 For personal use only 2 – 5 Year Horizon: – Growth Projects Planning Underway • New Acland Expansion -> 5 – 10 Mtpa • New Saraji Development -> Stage One up to 5 Mtpa • New Lenton Development -> up to 2 Mtpa – Exploration Projects – resource definition • Bee
Slide 60: New Hope Four Pillars and Corporate Reinvention
New Hope Corporation Four Pillars For personal use only People – Strong and experienced management and technical group – Good workforce and progressive employment instruments – Lower staff turnover (<50% industry average) – History of delivering projects Strong Financials & Balance Sheet – Strong fo
Slide 61: Corporate & Personal Reinvention
Corporate & Personal Reinvention Elective – Not Reactionary Re-Invention For personal use only Business “And So On” Emphasis Current Corporate Re-Invention Ce n Lan tral Qld Add d Deve Cokin ition lop g al A men Coal clan t & C Dev Supervision dE x pa T L elop me Emphasis nsio nts ns –S ar a Corpora