PRESENTATION TO THE CONFEDERATION OF INDIAN INDUSTRIES DELEGATION

Transcription

1 07 September 2009 The Manager Company Announcements Office ASX Limited Via: PRESENTATION TO THE CONFEDERATION OF INDIAN INDUSTRIES DELEGATION Coalworks presented to the Confederation of Indian Industries Delegation conference on 3 September The conference was arranged in conjunction with the NSW Government (Dept of Industry and Investment) and Federal Government (Austrade). Dr Firek commented: Our presentation on progress with our coal projects was well received and we were approached by a number of large Indian coal buyers expressing interest. Tony Teng Company Secretary About COALWORKS Coalworks has a portfolio of projects in Australia including Oaklands (JORC indicated and inferred 760mt* thermal coal; Bankable Feasibility Study underway), Hodgson Vale (exploration target thermal coal) and Ashford (limestone deposit with high value lime products as the target). In June 2009, Coalworks was selected as the successful applicant for a semi soft coking and thermal coal EL in the Vickery South coal area of the Gunnedah Basin. *See Coalworks ASX announcements on 11 March and 17 April 2009 ABN Level 5, 44 Miller Street, North Sydney NSW 2060 AUSTRALIA Ph: Fax: info@coalworks.com.au

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3 DISCLAIMER The information in this presentation does not purport to contain all the information that may be required to evaluate the prospects of Coalworks and in particular only discloses material information within the knowledge of Coalworks. You should seek independent professional advice in relation to the technical, financial, taxation, legal and commercial matters relating to the information and rely on your own due diligence and analysis accordingly. Other than to the extent required by law (and only to that extent) we disclaim all liability and make no representation, guarantee or warranty (expressed or implied) as to, and assume no responsibility nor liability for, the information provided. 2

4 COALWORKS OVERVIEW ASX listed Australian energy company (ASX:CWK) with 3 coal projects and an industrial minerals project: Major asset Oaklands, NSW Other projects Hodgson Vale Coal, QLD Ashford Lime, NSW Vickery South ELA, Gunnedah Basin, NSW 3

5 THE COMPANY Large black thermal coal resources at Oaklands Additional emerging coal projects in NSW & QLD Focus on coal production and value adding Experienced management team Well funded Rapid development program since ASX listing, June 2008 Shares on issue ~103 million Shares owned by: Institutions 47% Private Investors 39% Management 14% 4

6 COALWORKS BOARD & MANAGEMENT Wayne Mitchell (Chairman) - Past chairman of Central Victorian Gold Mines NL, director of Diversified Mineral Resources NL, led project management of Burton Downs Coal Project and co founded and developed major zinc mine in Thailand Andrew Firek (CEO) 25 years international experience in coal and minerals industries, current director of $1.2Bn MKT Cap Coal Group (Gujarat NRE Minerals); former Research and Development manager with Pancontinental Mining; former executive director of Allegiance Mining NL; former Team Leader with CSIRO allied to clean coal technologies. Tony Teng (Company Secretary) a certified practising accountant ; former consultant in mergers and acquisitions; former senior executive positions in manufacturing; former consultant in South East Asian Region in investment and manufacturing sectors Chris Hagan (Senior Consultant) co- founded Allegiance Mining NL; co-founded Zinico Resources NL; consultant Burton Downs Coal Project; principal consultant to securing of Oaklands Coal Project from NSW government; solicitor for over 25 years Geoff Kidd (Operations Manager) respected industry expert; former Coal Manager NSW, Connell Hatch; former Engineering & Project Manager for White Mining Limited; former responsibilities - mine design & control for Coal India mines, BHP Billiton mine. 5

7 SIGNIFICANT EVENTS Oaklands development Two resource upgrades since June 2008 listing Rail study completed Off take negotiations in progress BFS Commenced Strategic alliances with local landowners Vickery South Coking thermal and semi soft coking coal project recently added to CWK asset base 6

8 OAKLANDS COAL RESOURCE Present Oaklands Resource Indicated: Inferred: Total Resource: 212 mt 548 mt 760 mt Measured resource drilling program underway Large open pit mining potential Existing rail line into project 7

9 OAKLANDS DRILLING North South Cross Section of Coal Seam at Oaklands 8

10 DRILLING PROGRAM Oaklands EL location map of drill holes 9

11 INDICATED & INFERRED RESOURCES Seam Zone Indicated Resources (Mt) 1 Inferred Resources (Mt) 1 Total Moisture (ar%) 2 Moisture (ad%) 3 Raw Ash (ad%) 3 Volatile Matter (ad%) 3 Fixed Carbon (ad%) 3 Total Sulphur (ad%) 3 Calorific Value (kcal/kg, ad) 3 Calorific Value (MJ/kg, ad) 3 Coreen Creek 4 North Lane Shaft North Coreen Creek 4 South Lane Shaft South Coreen Creek 4 South Lane Shaft South Total (Mt) Grand Total (Mt) 760 Notes to table ¹ Expected air dried tonnage of coal, (Mt) ³ AD = Air dried basis ² AR = As received basis 4 Quality data available from three holes only Source: ASX announcement 11thMar09 Oaklands Coal Resource Update 10

12 KEY ACHIEVEMENTS - OAKLANDS 760 million tonnes of indicated and inferred JORC resource Connell Hatch completed conceptual study for a major coal mine Bankable Feasibility Study (BFS) commenced BFS Study Manager (Minarco Mine Consult) and Study Management Team (Including GEOS) appointed Oaklands Community involvement strategic alliance with major landowner to build mine & power station; alliances with others in progress Rail Study completed by International consulting engineers Connell Hatch Clean Coal Processing Pre-feasibility Study completed by international engineers Uhde Shedden Coal pricing and marketing specialists appointed - Wood Mackenzie 11

13 COAL TECHNICAL STUDIES Coal sample currently being extracted ACIRL to test Coal suitable for clean coal processing Essential mechanical, chemical and engineering information to be quantified 12

14 CLEAN COAL PROCESSING Uhde Shedden World experts in coal processing Access to world s best gasification & CTL technology Clean coal starts with gasification as it allows capture of CO2 Gasification is a proven technology with a number of plants operating successfully Oaklands coal is ideal for gasification A clean coal plant at Oaklands would be designed to lower costs, increase profits & lower CO2 emissions 13

15 CLEAN COAL PROCESSING 14

16 OAKLANDS DEVELOPMENT TIMETABLE ACTIVITY Oaklands El Granted Initial drilling & JORC Infered Resource Indicated Resource Measured Resource Scoping / prefeasibility study Sample testing EA base data Mine Plan Environmental assessment Final feasibility (Bankable) Mine Approval Engineering & Construction Start Production First Shipment Power Plant and CTL Study 15

17 OAKLANDS MINE DEVELOPMENT Mine Preliminary mine plans for the north and south developed Coal resource mapping continuing Water studies commenced Environmental studies commenced Final drill hole analysis pending to confirm quality model 16

18 RAIL Rail study completed Geelong least cost rail option Oaklands via Benalla to Geelong upgrade Discussions with Victorian Government on rail port upgrade underway Victorian Government to spend $17M on upgrade PKCT provides alternative rail option Discussions continuing with service providers 17

19 RAIL 18

20 PORTS Oaklands Geelong coal chain or split between Geelong and PKCT Discussions with Geelong Port progressing India is CWK s most likely major customer, due to coal quality Geelong shipping costs to India are highly competitive 19

21 OAKLANDS PROJECT SUMMARY Oaklands BFS underway Sufficient cash to complete BFS and other development activities On track for late 2012 mining start up Off-take: continuing market interest Rail to port logistics chains developing JV interest in power station and CTL ~ 50 Consultant/contractors employed 20

22 VICKERY SOUTH EL, GUNNEDAH BASIN Coalworks to add coking & thermal coal project 21

23 VICKERY SOUTH COAL PROJECT Vickery South EL in coal-rich Gunnedah Basin, NSW Proximity to an operating mine Railway to Newcastle Thermal and coking coal resource target: Mt. Initial production target 2Mtpa, increasing to 4Mtpa Potential for open pit & underground mining 22

24 VICKERY SOUTH KEY POINTS Conceptual Project Parameters Production Project Life Mining Method Coal Washing Employment 2-4 Mtpa 14 Years Open Pit, Highwall & Longwall CHPP max 500 tph throughput for 2 Mtpa rising to 1500 tph Peak construction workforce of up to 500 employees and an operation workforce of up to 250 employees at peak production 23

25 VICKERY SOUTH KEY POINTS Conceptual Project Parameters Mine Construction Haul road (pit) or rail loop, road, coal stockpiling, reclaim and train loading infrastructure, CHPP Hours of Operation Product Coal Transport Mine Access 24 hours per day, 7 days per week Conveyor to rail Portal to decline (underground) 24

26 QUESTIONS & CONTACTS Wayne Mitchell Andrew Firek Tony Teng Chris Hagan Geoff Kidd Chairman Chief Executive Officer Company Secretary / Director Senior Consultant Operations Manager COALWORKS LTD LEVEL 5, 44 MILLER STREET NTH SYDNEY NSW 2060 PHONE: FAX: info@coalworks.com.au 25