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RICHARDS BAY COAL TERMINALMEDIA BRIEFING

CONTENT

o BOARD OF DIRECTORS

o EXECUTIVE TEAM

o RBCT PEOPLE

o AWARDS

o COAL EXPORTING PARTIES

o TERMINAL JOURNEY/INFRASTRUCTURE

o EXPORT PERFORMANCE

o IMPORT PERFORMANCE

o SAFETY

BOARD OF DIRECTORS

N Siwisa – Damasane (Chairman)

MS Teke KT Nondumo Z Docrat IA Swanepoel MJ Fraser

ND Baloyi MJ Houston AJ Waller TC Mbuyazi

COAL EXPORTING PARTIES

• ARM Coal

• Exxaro Coal

• Glencore Operations South Africa

• Kangra Coal

• Koornfontein Mines

• Optimum Coal

• Sasol Mining

• South Dunes Coal Terminal

• South Africa Energy Coal

• Tumelo Coal Mines

• Umcebo Mining

• ILima

• Junior Miners

• Mbokodo

• South African Coal Mine Holdings Ltd • Anglo Operations (Pty) Ltd

EXECUTIVE TEAM COMMITMENT

Alan WallerCEO

Nontuthuko MgabhiGM: HR

Kubendren NaidooGM: Asset Management

Casper MbuyaziGM: Finance

Jabu MdakiGM: Operations

Zanele MthiyaneGM:HSEC

RBCT SAFETY PERFORMANCE

INITIATIVES TO REINFORCE SAFETY CULTURE

SLAD (Safety Leadership Alignment Day)

SLLAM (Stop, Look, Listen, Assess, Manage)

FRCP / Life Saving Behaviour

SAFETY MILESTONES

Reduction in the number of injuries by 47%

Reduction in FRCP related Incidents by 41%

1 million Lost Time Injury Free Man hours - 2 June 2018

63 Injury Free days

“ We will not engage in any unsafe activity”

RYCAS (Rail yard anti-collision system) commissioned

RBCT SAFETY HIGHLIGHTS

EVERYDAY HOME WITHOUT HARM

ENVIRONMENTAL MANAGEMENT

SPRINKLER & RAIN GUNS

ESUP DAM

DUST MONITORING

• RBCT only uses Industrial water for dust suppression

• 460 rain guns on site• 5 Sprinklers per Tippler

• 80 mega litres storage (ESUP Dam and the storm dam)

• 22 Settling Ponds on site• Water use license for 110 Mega litres pa• 31% water reduction from 2017

• 9 Dust buckets• 5 Ambient particulate monitors• Online monitoring

ORGANISATIONAL HEALTH SURVEY: 2012 - 2018 JOURNEY

Elite Exceed expectations

Able Meets expectations

Ailing Does not meet expectations

12%Against the target of 5% in 2018

Achieved 79% against our target of 75% for Elite and Able (combined)

OVERVIEW 2017 OVERVIEW 2018

ORGANISATIONAL HEALTH SURVEY: 2012 - 2018 JOURNEY

36%

62%

56%

69%

75%

67%

79%76% 76%

68% 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017 2018

RBCT ORGANISATIONAL HEALTH SURVEY TREND 2012 - 2018

Able Elite Ailing Able & Elite FMCG MINING

EMPLOYMENT EQUITY

TARGET 2017 2018

B BAND 88% 91% 93%

C BAND 82% 81% 81%

DL BAND 83% 93% 94%

DU BAND 57% 81% 83%

E & F BAND 75% 83% 83%

EMPOWERMENT

• RBCT is currently 29.54% black owned with black women owning 5.62%

• RBCT is level 3 BBBEE compliant

• 4 Million tons of export entitlement is allocated to Quattro (Junior Miners)

2018 CSI PROJECTS - HIGHLIGHTS

A TOTAL OF R3.4 MILLION WAS SPENT ON VARIOUS PROJECTS

Zululand Charities

Total of 24 NPOs benefited

Siqondimfundo Crèche

The biggest project for the year 2018

Over R2.4million spent

Caring for girlsTotal number of 642 girls from 3

different schools benefited

Computer Handover

Our focus remains on Early Childhood Development and Education

TERMINAL JOURNEY

RCTPhase 1 12Mt

Phase 2 24Mt

Phase 3 44Mt

Phase 3+ 63Mt

Brownfields 72Mt

Phase 5 91Mt

Phase 1 Replacement 2018

PHASE 1 MACHINE REPLACEMENT LAUNCH – 21 JUNE 2018

RBCT INFRASTRUCTURE

Train Offloading

Stockyard Stacking & Reclaiming

Vessel Loading

• 5 Tandem Tipplers (5 500tph)• 27 Average daily trains • 91Mtpa design capacity (32 Trains)

• 100 Stockpiles – 8.1Mt• 7 Stacker Reclaimers (4 140 – 4 600tph)• 2 Stackers (5 500tph)• 1 Reclaimer (6 000tph)• 1 Dedicated bypass route

• 4 Shiploaders (10 000tph – 12 000tph)• 6 Dedicated berths, max 5 Cape Vessels• 76 Average vessels per month

RBCT VALUE CHAIN

• Offload• Manage Stockpiles• Load Vessels

• Rail coal to RBCT• Service Level Agreement• Transnet Value Coordination Committee• Monthly Channel Oversight Meeting• Channel Logistics Team Meeting

• Berthing of vessels• Service Level Agreement• Daily Interface between Port Control and Planning• Monthly TNPA Interface Meetings• Terminal Operational Performance Standards

2018 ANNUAL RESULTS: EXPORT TONNAGE

OPERATIONAL FACTORS

55,442

56,392

53,587

2016

2017

2018

PARCEL SIZE

1.43

1.50

1.55

2016

2017

2018

PARCEL PER VESSEL

79,489

84,309

83,202

2016

2017

2018

CARGO SIZE

• Parcel size dropped by 5.0% compared to 2017

• Cargo size dropped by 1.3% compared to 2017

• Number of parcels per vessel have further increased in 2018 by 3.3%

• Changing weather patterns, port closures were 38 days in 2017 and 36 days in 2018

• All of these affect efficiencies but are industry driven

2018 BUSINESS AT A GLANCE

ANNUALIZED RATE

74.00

68.02

73.38

69.5672.54

70.92

65.25

85.11

Q1 Q2 Q3 Q4

QUARTERLY PERFORMANCE RATE

Import Export

74.00

71.01

71.7572.95

72.5471.72

69.54

73.47

Q1 Q2 Q3 Q4

CUMULATIVE QUARTERLY PERFORMANCE RATE

Import Export

TONNAGE EXPORTED BY RBCT

3.9% decline from 2017 Performance6

3.4

3

65

.51

68

.34

70

.23

71

.29

75

.38

72

.57

76

.47

73

.47

0

10

20

30

40

50

60

70

80

90

2010 2011 2012 2013 2014 2015 2016 2017 2018

MIL

LIO

N T

ON

S

4.1% decline from 2017

2018 EXPORT RESULTS IN NUMBERS

76.47 73.47

2017 2018

EXPORT TONS Mt

907 883

2017 2018

VESSELS LOADED

279372

2017 2018

CAPE VESSELS

221268

2017 2018

PANAMAX VESSELS

407

243

2017 2018

HANDY VESSELS

VAR:(3)

VAR:(24)

VAR:93

VAR:47

VAR:(164)

EXPORT DESTINATION PER CONTINENT

Africa8.0%

South America

0.3%

Europe10.1% Asia

81.6%

35.29Mt India9.37Mt Pakistan6.73Mt South Korea

1.33Mt Egypt1.02Mt Djibouti

3.14Mt Netherlands1.38Mt Spain

2018 ANNUAL RESULTS: RAIL TONNAGE

TONNAGE RAILED TO RBCT

62

.86

65

.71

68

.52

70

.81

72

.44

73

.93

72

.59

75

.6

72

.9

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 2016 2017 2018

MIL

LIO

N T

ON

S

2018 RAIL RESULTS IN NUMBERS

75.59 72.95

2017 2018

IMPORT TONS Mt

9430 9337

2017 2018

TRAINS OFFLOADED

9404 9173

2017 2018

JUMBOS

27 26

2017 2018

AVERAGE TRAINS PER DAY

18.8% 18.6%

2017 2018

TRAINS BYPASSED

VAR:(2.64)

VAR:(1)

VAR:(0.2%)

VAR:(231)

VAR:(93)

OPERATIONAL HIGHLIGHTS

• Export Record of 8 128 975 tons in December, exceeding the previous record of

8 023 168, with no injuries.

• New 12 hour export record by SHIFT 2 on 2 April 2018 – 221 134.

• New 12 hour TGLR Record by SHIFT 4 on 14 May 2018 – 5502 tph.

• Achieved 13.87 minutes/10kt Downtime. Best maintenance performance since 2005.

• Commissioned the Phase 1 machines.

ACHIEVEMENTS

2018 Corporate Businesswomen of the Year

Logistics Business of the Year

Safety Awareness Award

Premium Award

SABCOHA Wellness Award

Most Efficient Water User

Corporate Business of the Year

Employer of the Year

Corporate Social Responsibility Award

BULK LOGISTICS PORT/TERMINAL OF THE YEAR 2017 AND 2018

ZULULAND CHAMBER OF COMMERCE AND INDUSTRY BUSINESS OF THE YEAR AWARDS

RBCT Operations Manager – Ziphe Nonqane

THANK YOUQUESTIONS & ANSWERS