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PRESENTATION TO SYDNEY MINING CLUBPRESENTATION TO SYDNEY MINING CLUB
ROB YEATESNCIG PROJECT DIRECTOR
1 NEWCASTLE COAL INFRASTRUCTURE GROUP6th March 2008
Newcastle Coal Infrastructure Group
Newcastle Coal Infrastructure Group - established August 2004 Newcastle Coal Infrastructure Group established August 2004 Objective : To improve infrastructure for the Hunter Valley and Newcastle export coal chain.M bMembers:
BHP Billiton – through Hunter Valley Energy CoalCentennial CoalCentennial CoalDonaldson CoalPeabody EnergyFelix ResourcesWhitehaven Coal
2 NEWCASTLE COAL INFRASTRUCTURE GROUP
“… for the benefit of all…”
“We want to emphasise that our primary goal is to help to maximise the productivity of the Hunter Valley coal chain and that will mean Hunter Valley coal chain, and that will mean continuing to work closely with all stakeholders, including PWCS, the (Newcastle) Port Corporation ARTC rail (Newcastle) Port Corporation, ARTC, rail operators and other coal producers.”
“NCIG i l d t h th t it t ffi i t i f t t “NCIG is pleased to have the opportunity to ensure sufficient infrastructure capacity is available to handle the significant growth in exports by member companies and others.”
NCIG Chairman Tony Haggarty in Media Release 26 August 2005(when NCIG select as preferred candidate to build third coal loader)
3 NEWCASTLE COAL INFRASTRUCTURE GROUP
History
Sept 04NSW Government called for Expressions of Interest for the use of land at Kooragang Island
Feb 05Feb 05Preferred candidates short-listed and requested to make submissions
Aug 05NCIG announced as successful candidate
Dec 05NCIG submitted Project application and preliminary assessment
NCIG announced as successful candidate
Jul 06 NCIG submitted Environmental Assessment
Nov 06 IHAP Conducted
April 07 Development Consent granted 13 April (for 66Mtpa Coal Export Terminal)
4 NEWCASTLE COAL INFRASTRUCTURE GROUP
p Development Consent granted 13 April (for 66Mtpa Coal Export Terminal)
History (continued)
Nov 07All permits received and management plans approved
Nov 07Nov 07Dredging commenced in the Hunter River
Dec 07Second dredge commenced working in river
Jan 08Entered into lease with NSW Government
Second dredge commenced working in river
Jan 08 Achieved Financial Close for Project
Feb 08 On-site construction started
5 NEWCASTLE COAL INFRASTRUCTURE GROUP
Historical Newcastle Coal Exports
Newcastle Coal Exports (Mt)
90.0
70.0
80.0
MetallurgicalThermal
Average annual growth rate 1990 to 2006 is 6.1%-total coal
40.0
50.0
60.0 ThermalTotal
20.0
30.0Average annual growth rate 1990 to 2006 is 7.7%-thermal coal
0.0
10.0
1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006
6 NEWCASTLE COAL INFRASTRUCTURE GROUP
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6
Source: Barlow Jonker
Newcastle Ship Queue
Ships waiting at Newcastle 90
70
80
90
40
50
60
Ship
s
10
20
30
002 03 04 05 06 07
Source: Barlow Jonker
7 NEWCASTLE COAL INFRASTRUCTURE GROUP
Newcastle Port
PWCS Facilities
NCIG Site
8 NEWCASTLE COAL INFRASTRUCTURE GROUP
Site looking East Hunter River
Newcastle Port
Site looking East
9 NEWCASTLE COAL INFRASTRUCTURE GROUP
Hunter River
Development Consent for 66Mtpa
10 NEWCASTLE COAL INFRASTRUCTURE GROUP
General Arrangement – Stage 1 ~30Mtpa
• One Dump Station and Multiple Rail Sidings• Two Stacker/Reclaimers and Stockyards• Two Stacker/Reclaimers and Stockyards• One Ship Loader and Two Wharves
11 NEWCASTLE COAL INFRASTRUCTURE GROUP
General Arrangement – Stage 2 ~45Mtpa
• New Dump Station and Rail Sidings• New Stacker/Reclaimer and Stockyard• New Stacker/Reclaimer and Stockyard• New Ship Loader
12 NEWCASTLE COAL INFRASTRUCTURE GROUP
General Arrangement – Stage 3 ~66Mtpa
• New Stacker/Reclaimer and Stockyard• Additional Dredging• Additional Dredging• New Wharf
13 NEWCASTLE COAL INFRASTRUCTURE GROUP
Stacker - Reclaimers
14 NEWCASTLE COAL INFRASTRUCTURE GROUP
Project General Arrangement - Stockyard
15 NEWCASTLE COAL INFRASTRUCTURE GROUP
NCIG – Overall design
Inbound system rated at 8,500tph Seeking to maximise the numberof trains that operate on a regular basisP id fProvide an even program for train loading at mine sites
Stockyard system rated at 8,500tphU f k / l iUse of stacker/reclaimersMixture of dedicated stockpiles and cargo assembly stockpiles
Outbound system rated at:Reclaim capacity 8,500tphShiploading capacity 10,500tph
16 NEWCASTLE COAL INFRASTRUCTURE GROUP
Shiploading capacity 10,500tph
Approvals
Extension of Shipping Channels – Port of Newcastle Development Consent obtained by NSW Maritime in 2004
Project Approval - granted to NCIG on 13 April 2007 for 66Mtpa Project
All further licences and sub approvals obtained
17 NEWCASTLE COAL INFRASTRUCTURE GROUP
Timetable
Quarter 4 2006 : Commenced detailed design (currently >75% complete)
Quarter 4 2007 : Commenced dredging
Quarter 1 2008 : Commenced site construction
Quarter 4 2009 : Complete dredging
Quarter 1 2010 : Commence operations (first ship loaded)
Quarter 1 2011 : Reach full 30Mtpa
18 NEWCASTLE COAL INFRASTRUCTURE GROUP
throughput
Dredging Program
Total Volume – 5,000,000 m3
Onsite fill – 3,000,000 m3
Offshore disposal – 2 000 000 m3Offshore disposal – 2,000,000 m3
Dredge Profile
Soft clay/ silt Grab / backhoe dredge
Sand
Stiff clay
Small to medium cutter/suction dredge
Longreach backhoe dredge
19 NEWCASTLE COAL INFRASTRUCTURE GROUP
Soft rock Large cutter/suction dredge
Storken
20 NEWCASTLE COAL INFRASTRUCTURE GROUP
Goomai
21 NEWCASTLE COAL INFRASTRUCTURE GROUP
Contracted Cutter Suction Dredge
UUrsa
22 NEWCASTLE COAL INFRASTRUCTURE GROUP
Offshore Disposal Area
23 NEWCASTLE COAL INFRASTRUCTURE GROUP
Contracts
Contracting strategy is to package contracts to provide for flexibility and price competitiveness.
Major contracts placed: >$300 millionEPCM contractor – Connell Hatch – contract in placeStacker Reclaimers / Shiploader - D&C Contract placed.Dredging – Contract placed.
M j t t t b l d t t lli $500 illiMajor contracts to be placed: totalling >$500 millionBerth Construction - Tender issued.Stock Yard Mechanical Tender to be issued shortlyStock Yard Mechanical – Tender to be issued shortlyBulk Earthworks – Tender issuedDump Station – Tenders to be issued shortly
24 NEWCASTLE COAL INFRASTRUCTURE GROUP
p yOthers
EPCM Contractor
EPCM contractor – Connell Hatch
JV – Connell Wagner – Hatch Associates
Resources - 10,000 employees across Australia and , p yworldwide
Recent Projects:-Hay Point Coal TerminalDalrymple Bay Coal TerminalAbb tt P i t C l T i lAbbott Point Coal TerminalRG Tanna Coal TerminalWiggins Island Coal Terminal(F ibilit St d )
25 NEWCASTLE COAL INFRASTRUCTURE GROUP
(Feasibility Study)
Port of Newcastle – Future Capacity - 2011
PWCS – Kooragang : 89 Mtpa - Q4 2009 *
PWCS – Carrington : 25 Mtpa
NCIG K 30 Mt NCIG – Kooragang : 30 Mtpa
TOTAL : 2011 – 144 Mtpa
All nameplate capacity* PWCS Media Release 20 June 2007
26 NEWCASTLE COAL INFRASTRUCTURE GROUP
NCIG Funding Arrangements
The capital costs are being financed in the capital markets by way of three major tiers of capital:1. Senior Debt2. Subordinated Debt (“SHINs”)3 Non Voting Preference Shares (“SHIPs”)3. Non-Voting Preference Shares (“SHIPs”)
Financing is supported by NCIG Shareholders :rolling 10 year Ship-or-Pay Commitments (“SOP”)10 year coal reserve life cover ratio covenant
Toll Charges will be set to recover all operating and financing costs of the Project without a financial return to ordinary Shareholders
27 NEWCASTLE COAL INFRASTRUCTURE GROUP
Shareholders
NCIG Source Mines
28 NEWCASTLE COAL INFRASTRUCTURE GROUP
NCIG Funding Arrangements
The funding has been provided by:
Senior Debt• Australia and New Zealand Banking Group Limited• BHP Billiton Finance Pty Limited• DZ Bank• Dexia GroupDexia Group• KBC Finance Ireland • Overseas Chinese Banking Corporation Limited• Sumitomo Mitsui Banking Corporation
S M t Li it d• Suncorp-Metway Limited
Secured Hunter Infrastructure Notes (SHINS)• Australia and New Zealand Banking Group LimitedAustralia and New Zealand Banking Group Limited• BHP Billiton Finance Pty Limited
Hunter Infrastructure Preference Shares (SHIPS)ANZ Infrastr ct re Ser ices Limited
29 NEWCASTLE COAL INFRASTRUCTURE GROUP
• ANZ Infrastructure Services Limited• BHP Billiton Finance Limited
Overall Timetable
ACTIVITY DURATION CUMULATIVE TIMEYEARS YEARS
AUG 05 WIN NSW GOVERNMENT LAND TENDER PROCESS
1 year 1 year
APR 07 DEVELOPMENT CONSENT GRANTED 1½ years 2½ years
JAN 08 SECONDARY GOVERNMENT APPROVALS AND FUNDING OBTAINED
½ year 3 yearsAPPROVALS AND FUNDING OBTAINED
JAN 10 CONSTRUCTION 2 years 5 years
JAN 11 BUILD UP TO FULL CAPACITY 1 year 6 years
30 NEWCASTLE COAL INFRASTRUCTURE GROUP
31 NEWCASTLE COAL INFRASTRUCTURE GROUPMarch 2008