bankable feasibility study thar lignite mine
TRANSCRIPT
RWE Power International
Bankable Feasibility StudyThar Lignite MineWork Progress
2RWE Power International - RE GmbH
Project Time Schedule
3RWE Power International - RE GmbH
Actual Work StatusPhase I: Review and Planning Stage
Task Status
Data review completed
Design and specification of exploration program completed
Review of topographic data completed
Development of a project implementationschedule completed
Inception report completed
Approval of inception report and implementationschedule completed
4RWE Power International - RE GmbH
Actual Work StatusPhase II: Exploration Stage (I)
Task Status
Mobilisation and procurement completed
Exploration and target mine area delimitation completed
Interim exploration report completed
Detailed exploration completed
Collection and evaluation of drillhole samples completed
Geotechnical and hydrological drillhole testprograms completed
5RWE Power International - RE GmbH
Actual Work StatusPhase II: Exploration Stage (II)
Task Status
Determination of parameters needed for sitecharacterisation completed
Environmental and sociological studies 50 %
Deposit modelling, hydrological modelling anddetailed geological report 90 %
6RWE Power International - RE GmbH
Actual Work StatusPhase III: Mine Design and Project Feasibility Stage (I)
Task Status
Identification of various mine designs 90 %
Definition of fundamental design parameters forthe detailed mine planning 10 %
Evaluation of potential mine and equipmentdesigns 25 %
Technical and cost analysis to define preferredmining option 20 %
Detailed mine design for preferred mining option 0 %
Determination of environmental impact anddefinition of a respective management plan 20 %
7RWE Power International - RE GmbH
Actual Work StatusPhase III: Mine Design and Project Feasibility Stage (II)
Task Status
Personnel recruitment and training plan 0 %
Determination of development requirements 0 %
Estimation of waste rock dilution and losses 70 %
Layout of waste mining and waste disposal 10 %
Definition of labour and equipment requirements 0 %
Mine development schedule 0 %
8RWE Power International - RE GmbH
Actual Work StatusPhase III: Mine Design and Project Feasibility Stage (III)
Task Status
Detailed financial analysis of preferred miningoption 0 %
Mine feasibility study report 0 %
Financial ability report 0 %
Draft Thar coal mining feasibility study report 0 %
Final report 0 %
9RWE Power International - RE GmbH
Next Steps- Thar Mining Project
Completion of site assessment report / geological model(Dec. 2003)
Selection of power plant location
Mine design and equipment selection
Environmental considerations
Personnel planning
Cost model and financial analysis
Reporting
10RWE Power International - RE GmbH
Exploration Program
11RWE Power International - RE GmbH
Main ParametersFor Power Plant Design
Installed gross capacity: 3 x 370 MW
Installed net capacity: 1000 MW
Water supply:
– condensate from coal pre-drying
– use of groundwater
– closed cooling water circuit
Location of power plant
Connection to infrastructure
Ash disposalto be defined
12RWE Power International - RE GmbH
Main ParametersFor Mine Design
Total coal in mining area: ~ 400 mill. t
Coal demand for lifetime of TPP (30 years): ~ 180 mill. t
Annual overburden removal: ~ 50 mill. m³
Annual coal production: ~ 6 mill. t
Stripping ratio: ~ 8 : 1 (m³:t)
Mine depth: ~ 220 m
Annual groundwater pumping: ~ 5 mill. m³
13RWE Power International - RE GmbH
Siting Options For TPP And Mine
14RWE Power International - RE GmbH
Equipment OptionsBucket Wheel Excavator
15RWE Power International - RE GmbH
Equipment OptionsBelt Conveyors
Drive Station
Belt Frame
16RWE Power International - RE GmbH
Equipment OptionsSpreader
17RWE Power International - RE GmbH
Equipment OptionsShovel & Truck
18RWE Power International - RE GmbH
Equipment OptionsSurface Miner
19RWE Power International - RE GmbH
Preliminary Economical Analysis- Thar Energy Project
Main Assumptions:
– Stripping Ratio: 8 : 1 (bcm : t)
– Total Amount of Coal: 180 mill. t
– Average Transport Distance: 5 km
– Project Duration: 30 years
Result: 46 €/MWh ± 20 % ≅ 3,300 Rs/MWh
20RWE Power International - RE GmbH
Project Development Schedule- Thar Energy Project
YearNo. Activity
1. Exploration & Mining Feasibility Study
2. Power Plant Feasibility Study
3. Market Study / Check
4. Environmental Impact Assessment
5. Financial Model
6. Information Memorandum
7. Project Promotion
8. Financing
9. Detailed Engineering
10. Tendering
11. Construction Start-up TPP / Start-up OB Removal
12. Commissioning TPP / First Coal Delivery
20062003 2004 2005 2011200920082007 2010
21RWE Power International - RE GmbH
Key Conditions For Foreign Investors
Owing Structure
Legal Protection
Power Purchase Agreement / Fuel Supply Agreement
Consumers Payment Discipline
Governmental / Multilateral Guarantees
Approval Procedures / Duration
Clear Rules For Exit
Tax Regulations / Cash Transfer
22RWE Power International - RE GmbH
Conclusion & Recommendations
Mining feasibility study is on schedule
First results are promising
Additional steps to be undertaken in order to accelerate thedevelopment of the entire project
RWE Power International
Backup
24RWE Power International - RE GmbH
German Energy Market
21%
13%
45%
4%
17%
29%
23%
11%
1%
9%
27%
13%
13%
3%37%
22%
12%
Lignite Mineral oil Nuclear energy
Natural gas Hard coal Renewables/other
Primary EnergyProduction
126.6 mill. tce*
Primary EnergyConsumption488.5 mill. tce
Gross PowerGeneration581.3 TWh
* 1 tce ~ 29.3 GJ ~ 8.141 MWh
25RWE Power International - RE GmbH
RWE Market Shares
E.ON9 %
Other 39 %
Iberdrola2 %
EdF20 %
RWE 9 %
Vatten- fall
7 %Enel6 %
Tractebel4 % Endesa
4 %
Market Shares in EuropeanPower Generation
RWE Innogy 2 %
Source: Oppenheim Research
RWEPower
7 %
Market Shares in GermanPower Generation
RWEPower32 %
Other13 %
E.ON26 %
Vattenfall16 %
EnBW13 %
26RWE Power International - RE GmbH
RWE Power Generation Portfolio- Germany
Power Generation Capacity(33,000 MW)
Gross Electricity Production(190 TWh)
Lignite31 %Hard coal
28 %
Gas12 %
Hydro &Other12 %
Nuclear17 % Nuclear
22 %
Lignite36 %
Hard coal29 %
Gas
Hydro & Other Short term trading
4% 4%5%
27RWE Power International - RE GmbH
Essen
Frankfurt
Saarbrücken
München
Bremen
Köln
Braunkohle
Hard coal-fired power plant
Lignite-fired power plant
Nuclear power plant
CCGT plant
Gas and wasteincineration power plant
Hydroelectric power plant
RWE Power Sites - Germany