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Gujarat NRE Coke Ltd
ARUN KUMAR JAGATRAMKAChairman & Managing Director
September, 2010
Investor Presentation – September 2010
DISCLAIMERThis presentation contains only a brief overview of Gujarat NRE Coke Ltd and its associated entities (“Gujarat") and
their respective activities and operations. The contents of this presentation, including matters relating to the
geology of Gujarat‟s projects, may rely on various assumptions and subjective interpretations which it is not
possible to detail in this presentation and which have not been subject to any independent verification.
This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties,
and factors outside of Gujarat‟s control, may cause the actual results, performance and achievements of Gujarat
to differ materially from those expressed or implied in this presentation.
To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of the
information in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss or
damage arising from the use of the information.
The information contained in this presentation is not a substitute for detailed investigation or analysis of any
particular issue. Current and potential investors and shareholders should seek independent advice before making
any investment t decision in regard to Gujarat or its activities.
COMPETENT PERSON STATEMENT
The information in this report that relates to Mineral Resources and Reserves is based on information compiled by
Mr. Kris Markowski who is a member of the Australian Institute of Mining and Metallurgy.
Mr. Markowski is employed by Gujarat NRE Coking Coal Limited.
Mr. Markowski has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004
Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and ore Resources‟. Mr.
Markowski consents to the inclusion in the report of the matters based on his information in the form and context
in which it appears.”
2
SECTION A
Overview of Met Coke
Demand – Supply gap
3
Overview of the Met Coke market
Coke and coking coal prices have almost doubled in past 12 months
40% export tax levied by China since August 2008 has little likelihood of
reversal – production of coke for a surplus for export is discouraged
Poland, Russia, Ukraine, Japan, Colombia - Most of these sources supply
to western hemisphere, where as the demand is in the eastern part
With Chinese Coke away from the market, there is a likely shortage of
coke from 2011 – Difficult to meet the increasing demand supply gap
Quarterly pricing of coking coal from FY10 – adds a new dimension to the
coke market
11 Mtpa of permanent coke capacity closures (primarily in Europe)
enforced by the economic crises - adds to the market pressure
Met Coke demand is expected to rise by 150 to 200 MTPA by 2020 based on pig iron growth projections
World Met Coke Outlook
Source :Internal company forecasts
0
100
200
300
400
500
600
700
800
900
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Actual production
Expected demand
MTPA
India is one of the top importers of Met Coke
World Met Coke Imports
Source : GTIS, Internal company forecasts
The scenario evolving for 2010
Near absence of Chinese coke
for export in 2010
30 MT of met coke demand in
India in 2010
India needs to import 4 – 5 MT
of coke in 2010
Declining Inventories in Europe
Increase in coke rates and
higher PCI usage
2011 and beyond….
Once coke trade returns to pre crisis levels of around 30 mtpa (say by
2012) – difficult to meet the shortfall of China’s 14 Mtpa export capacity
Permanent closure of around 11 Mtpa coke capacity in Eastern Europe
New blast furnace capacity with no associated coke plants in India and
South East Asia….
Resulting into large merchant coke demand in India for pig iron,
ferroalloys and soda ash
Coking coal supply under pressure – Production from Mozambique and
Mongolia are some years away and will come at a high price
(infrastructure in these countries at nascent stage)
Are we staring at a
met coke shortage??
SECTION B
GUJARAT NRE COKE LIMITED
A SNAPSHOT
Largest independent producer of Metallurgical Coke in India
Listed on the Bombay and National Stock Exchanges, with a marketcapitalisation of around USD 0.70 billion (No. of shareholders 1,60,000)
Profit earning and dividend paying with strong financials and credit rating of
AA- for long term borrowing and PR1+ for short term borrowing.
Met Coke capacity 1.25 million tons, being increased to 4 million tons by2014/15.
The only Indian Company to have exported LAMC from India (to Argentina,Brazil, South Africa & Europe).
Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999certification
Rated one of the top 10 company by 10-years profit performance in the latestedition issued by Business Today on India’s Most Valuable Companies
10
1
Plant at Bhachau, Gujarat
2
Plant at Khambalia, Gujarat
3
Plant at Dharwad, Karnataka
4
Proposed Plant, Nayudupeta,
Andhra Pradesh
5
Registered Office, Kolkata
6 Corporate Office, Ahmedabad
1
2
3
KANDLA
PORT
GOA PORT
NEW
MANGALORE
PORT
4
5
KRISHNA
PATNAM
PORT
6
Our Presence in
India
11
12
GNCL OPERATIONS…
HARD COKING COAL
(NSW, AUSTRALIA)RESOURCES 573 MMT
LOW ASH
METALLURGICAL COKE
1.25 MMTPA
Gujarat NRE Coking Coal Ltd
(ASX: GNM)
NRE NO. 1 – 315 million tonnes
NRE Wongawilli – 258 million tonnes
STEEL UNIT
TMT BARS : 0.311 MMTPA BHACHAU UNIT0.324 MILLION MTPA
KHAMBALIA UNIT0.358 MILLION MTPA
(Leased)
DHARWAD UNIT0. 324 MILLION MTPA
Waste Heat Recovery
Power Plants
Khambhalia* 15 MW
Bhachau* 15 MW
Dharwad* 30 MW
Total 60 MW
Wind Power 87.5 MW
In Australia In India
Coal Washeries
Khambalia 0.75
Bhachau 0.75
Dharwad * 0.90
* Under implementation
DHARWAD UNIT0.25 MILLION MTPA
12
13
GUJARAT NRE COKE LIMITED
Listed on NSE & BSE in India
Gujarat NRE Limited Pluton Resources Ltd.
Pike River Coal Ltd. Wonga Coal Pty Ltd
Coal Mine in New
Zealand. Coal off-
take for 400,000
MTPA
Gujarat NRE Coking Coal
Ltd
Listed on ASX: GNM
Rey Resources Ltd
Exploration
tenements in
Australia, Chile
& Peru
NRE No. 1
315 MT
Exploration
tenements
in Australia
Gujarat NRE Resources NL
Gujarat NRE FCGL Pty Ltd
NRE
Wongawilli
258 MT
100% 4.20%
7.56% 100%
42%
12%100%
100%
International Operations
9.71%
23.53%
13
BOARD OF DIRECTORS
Mr. Girdharilal Jagatramka
Chairman Emeritus
The main promoter of GNCL. Has more than five decades of
business experience
Arun Kumar Jagatramka
Chairman & Managing Director
25 years of professional and management experience
All India 1st rank gold medalist Chartered Accountant
Director of Pike River, Port Kembla Coal Terminal, NSW Mineral
Council and Australian Coal Research Association
Appointed as an honorary NSW Sydney Ambassador to India
Mrs. Mona Jagatramka
Non-Executive Director
10 years of experience in management and administration
Active in the management & human resources for Gujarat NRE
Group
Also on the board of Gujarat NRE Coking Coal Limited
Mr. Rajendra Prasad Jain
Executive Director
More than 32 years of experience in the field of Organisational
Management, Business Planning, Operational and Commercial
Functions in reputed Industrial Houses of India.
14
BOARD OF DIRECTORS (contd..)
Mr. Chinubhai R Shah
Non-Executive Director
Former President of ICSI
At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila
Pharmaceuticals Ltd., Apollo Hospitals International Ltd., Gujarat
State Electricity Corpn. Ltd., etc.
Also the Chairman of India Renal Foundation.
Dr. Basudeb Sen
Non-Executive Director
Former CMD of IIBI
Former Executive Director of UTI Mutual Fund.
Holds directorship of various reputed Listed Companies viz. ITC
Ltd., South Asian Petrochem Ltd., etc.
Dr. Mahendra Kumar Loyalka
Non-Executive Director
Leading medical practioner
Past District Governor of Lions Club International
Mr. Murari Sananguly
Non-Executive Director
Former CMD of Kudermukh Iron Ore Company Ltd.
Presently on the Board of Coal India Ltd.
Mr. Subodh Kumar Agrawal
Non-Executive Director
Eminent Chartered Accountant
Presently Member of Central Council of ICAI.
Chairman, Committee for members in Industry (ICAI)
15
Sl.
No.
Particulars % of
Holding
1 Promoter Group 47.05
2 Banks, Mutual Funds &
FIIs
28.25
3 Indian Public and others 24.70
Total 100.00
Listed on BSE & NSE
Script Code: • For Ordinary Equity Shares: BSE – 512579 ; NSE - GUJNRECOKE ISIN no. - INE110D01013
• For B Equity Shares (DVR Shares) : BSE – 570003; NSE - GUJNREDVR ISIN no. - IN9110D01011
Face Value : Rs. 10 per share
Market Capitalization: Approx USD 0.70 Billion
SHAREHOLDING PATTERN
16
47%
25%
28%
Promoter Group
Banks, Mutual Funds & FIIs
Indian Public & Others
0
200
400
600
800
1000
1200
1400
1600
Year Ended
31.03.2006
Year Ended
31.03.2007
Year Ended
31.03.2008
Year Ended
31.03.2009
Year Ended
31.03.2010
Rs
. In
Cro
res
Turnover EBITA
PERFORMANCE OF LAST 5 FINANCIAL YEARS
17
LONG TERM NRE SHARE PRICE COMPARED WITH NIFTY
(ADJUSTED FOR BONUS ISSUES)
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
31.01.06 22.11.07 25.03.08 29.12.09 05.01.10 05.03.10
0
1000
2000
3000
4000
5000
6000
7000
8000
GNCL(LHS)
Nifty (RHS)
NRE has outperformed the NIFTY in last 5 years 18
DVR SHARE PRICE COMPARED WITH NIFTY
32.00
34.00
36.00
38.00
40.00
42.00
44.00
27-May-10 1-Jun-10 24-Jun-10 30-Jul-10
0
1000
2000
3000
4000
5000
6000
7000
8000
GNCL DVR Shares (LHS) Nifty (RHS)
Note: The Differential Voting Rights Shares (DVR) got listed on 26.05.2010,
since then the NRE DVR shares has outperformed NIFTY 19
20
PHENOMENAL INVESTOR RETURNS
Financial Year Bonus Ratio Record Date Allotment
1995/96 11:10 26 Nov 1996 23 Dec 1996
2001/02 1:2 30 May 2003 16 Jun 2003
2002/03 1:2 21 Apr 2004 30 Apr 2004
2003/04 1:1 10 Feb 2005 12 Feb 2005
2004/06 1:1 30 Sep 2006 18 Oct 2006
2007/08 2:5 20 Oct 2008 31 Oct 2008
2008/09 1:10 (DVR Shares)
7 May 2010 10 May 2010
Gujarat NRE Coke has been identified as the 4 best stock of
the decade (Times of India)
If a person would have invested Rs. 1 in this stock on January 3, 2000, his
value of investment on December 23, 2009 would be Rs.106 (Source:
Economic Times)
GROWTH PLAN – PRODUCTION FOCUS
0.13 0.240.50
0.68 0.68 0.68
1.061.25
2.25
4.00
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
20
01
-02
20
02
-03
20
03
-04
20
04
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
11
-12
20
14
-15
PRODUCTION CAPACITY (MMTPA)
21
Gujarat NRE – Transforming into a leading
coke exporter
Brazil
Argentina
France
Italy
Japan
South Africa
With increased Coke capacity and a secured source of
Hard Coking Coal from its own mines
Gujarat NRE is a reliable Source of Met Coke
In addition to meeting the
increasing domestic coke
demand, Gujarat NRE Coke has
been tapping the opportunity in
met coke export market – to fill
in the void created by global
short supply
SECTION C
INDIAN STEEL INDUSTRY
VISION 2020 –
And
COKING COAL OUTLOOK
23
Steel Development Pattern
China has already reached its peak in growth rate, while India is on the rise…..
India‘s long
term steel
development
pattern is
similar to
most
countries,
following the
same pattern
of more than
a century old
China & India Driving Steel growth
Steel Production forecast by Region / Country (in Million Tonnes)
300 MILLION TONS STEEL CAPACITY Crude Steel Production in 2009 – 55 million tons
Potential for ramp up to 300 million tons by 2019-2020
- conservative estimate at 200 million tonnes
222 MOUs have been signed with various States for the planned increase in capacity
Proposed Investment US $ 220 billion
India has potential access to:
Infrastructure – Power, Ports, Surface Transportation etc
Human Resources
Capital
Raw materials – except COKING COAL 26
INDIAN STEEL VISION – 2020
Urgent need for Coking Coal to meet India‘s
projected Steel growth
2020 Steel increaseIncrease in Met Coal
Demand by 2020
10%pa 100 61
12%pa 135 84
15%pa 202 132
20%pa 361 226
• 10%pa will see a doubling of import demand
• 20%pa increase is equal to current seaborne market for all Met Coal
• Major increase in all forms of met coal
PCI = 2.1 x today’s market
HCC = more in demand at higher rates due to rising productivity ~ doubling
market
MT
Strong demand from Steel Industry and domestic unavailability causing a surge in imports
Source: CRISIL, internal estimate
MT
Present and Future Coking Coal
Imports by India
Source: ISMW
Major Coking Coal Supplying Countries of India
30
Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10
Australian Hard Coking Coal Producers
SECTION D
GUJARAT NRE COKING COAL
LIMITED
Gujarat NRE Coking Coal Ltd - Performance at a Glance
GUJARAT NRE COKING COAL LTD OVERVIEW
Wollongong
Kiama
Port Kembla
Port Kembla coal
loader 18 MtpaSutton
Forest
proposal
Berrima
Dendrobium
W. TahmoorAppin
Westcliff Northcliff
Southern
Coalfield
NRE No. 1
NRE WONGAWILLI
BHP Illawarra
Coal
Peabody
Metropolitan
Xstrata
Tahmoor
ASX listed hard coking coal producer
» Market capitalisation of ~A$0.6 billion
100% owner of two underground mines in NSW, Australia
» NRE No. 1 & NRE Wongawailli
JORC reserves of 99.8Mt and resources of 572.9Mt
All ROM coal sold under contract to major shareholder for captive use (Gujarat NRE Coke)
» Commercial terms based on market formula
All product exported through Port Kembla Coal Terminal
» Regional rail and port infrastructure capacity of 18Mt
Targeting to increase ROM production from 1.3Mtpa to 6.0Mtpa over the next 4 years
» Target long term cash operating cost of US$39/t FOB (pre royalties, ROM)
33
GNCCL OVERVIEW (contd..)
Capital structure (as per 31 May 2010)
Share price performance (LTM)
Share Price (A$) 0.58
Shares (m) 889.7
Options (m) 45.10
Market Capitalisation (A$) 516.03
Debt (m) 140.0
34
Shareholding pattern
77%
14%
9%
Gujarat NRE Coke Limited & Associats
Financial Institutions Nminees &
Others
EXPERIENCED BOARD
Board
Arun JagatramkaChairman
B.Com (Hons), FCA, AIMM
Chartered Accountant with 25 years of professional and management
experience
Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council
and Australian Coal Research Association
Appointed as an honorary NSW Sydney Ambassador to India
Maurice AnghieDirector & Audit Chairman
BBus, FCA, FCPA, MAICD
Experienced financially qualified Professional with commercial skills and
legal/regulatory and governance expertise
Audit partner in chartered accounting firms for over 20 years
Current Director of Aditya Birla Minerals Limited
Don CarrollDirector
B.E (Mining), MAusIMM,
MAIDC
Over 30 years experience in the international mineral industries
Former senior executive with BHP Biliton where he held the positions of
Vice President Investor Relations Australia, General Manager Marketing
Asia, President BHP Billiton Japan, President BHP Billiton India.
Andrew FirekDirector
M.Sc, Ph D, FAusIMM, FAIE
25 years experience in mining, mineral processing, construction,
commissioning and operations of coal, base and precious metals plants in
Europe, Africa and Australia
Former Group Leader at the CSIRO, Division of Fossil Fuels in Sydney and
was engaged in developing technologies to produce liquid fuels from coal
Former founding Executive Director of Allegiance Mining NL and current
Director of Coalworks Limited
Mona JagatramkaDirector
B.Sc. (Hons)
10 years of experience in management and administration
Active in the management & human resources for Gujarat NRE Group
Also on the board of Gujarat NRE Coke Limited35
Board of Directors
Management Committee
Arun Jagatramka
S Murari
P R Kannan
Sanjay Loyalka
Head of Operations
Steven Bow(28 years Underground Coal experience with
BHPB)
STRONG MANAGEMENT STRUCTURE
36
Operations
Manager NRE
Wongawilli
Head of
Corporate
Committee
Group
Engineering
Manager
Chief
Financial
Officer
Company
Secretary/
IT Manager
Operations
Manager NRE
No.1
Phil Wakeford(33yrs UG Coal with
Oakdale Collieris
Ltd & BHPBIC)
Dr. Chris Harvey(35yrs coal industry
with NSW Dept.
Minerals and
Resources)
Steven Coffee(28yrs UG coal in
NSW Coal fields
with BHPB)
Naveen
Kumar
Nanda(16yrs Snr
Accounting)
Sanjay
Sharma(12yrs Business
Management)
Rhys Brett(8yrs UG Coal
with Anglo,
Centennial &
Xstrata)
NRE No. 1 MINE
NRE NO.1 COLLIERY
Located in the Southern Coalfields of NSW
» ~10km north of Wollongong
» ~20km from Port Kembla Coal Terminal
One of the oldest operating collieries in Australia
» Formerly South Bulli (Owned and operated by Shell)
Premium quality hard coking coal
Capacity to increase production to >3.0 Mtpa by 2015
Currently using a board and pillar mining method with plans to
install longwall equipment by Dec 2011
Approximately A$240 million invested (to March 2010) with
plans to invest a further A$200 million to March 2013
JORC reserves of 92MT and Resources of 314MT
38
No. 1 Mine - Strategy
Long Term future
Coal quality/productive/correct cost profile/safety/people
Coal Quality
300 mt Resources and 100 mt mineable Reserves.
Productivity
New longwall 3500 tph peak
capacity
Trunk conveyors 4000 tph
Gate rd. conveyors 3500 tph
LW start Dec. 2011
Targeting 3 mtpa by FY 14
0.5 0.7
1.51.8
3.03.2
0.0
1.0
2.0
3.0
4.0
FY10 FY11 FY12 FY13 FY14 FY15
Mt
Journey to Date
The first 5 years
Re-established a very run down mine.
Decided on mine plans.
Started Wonga Mains Jan 2008
Purchased 4 x CM‘s, SC‘s, LHD‘s etc
Last 12 months
Coal production in Wonga Mains
started
RMains drift started
Commissioned Wonga Mains 1 belt
(4000 tph belt)
Continued Bulli Seam operations
O & 311 Panel complete, 310 Panel
commenced
Work in Progress
NRE No.1 MINE RESOURCES AND RESERVES
42
Resources (Mt) Reserves (Mt)
Potential
Reserves
(Mt)*
As per
mine
plan
(Mt)**
Seam Measured Indicated Inferred Total Proven Probable Total Total
Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4 6.4 35.8
Balgownie — 34.1 41.5 75.6 — — — — —
Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6 29.6 92.2
Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0 36.0 128.0
*Potential reserve of 6.4 million is additional to 29.4 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves.**Total of Reserves and Potential Reserves.
NRE WONGAWILLI MINE
NRE WONGAWILLI COLLIERY
Located in the Southern Coalfields of NSW
» ~14km south-west of Wollongong
» ~20km from Port Kembla Coal Terminal
Consolidates 3 Collieries
» Elouera Colliery (previously owned by BHP)
» Avondale Colliery
» Part of the Huntley Colliery
Premium quality hard coking coal
JORC reserves of 7.8Mt and resources of 258Mt
ROM coal transported ~20km via rail to the Port Kembla Coal Terminal
Approximately A$120 million invested (to March 2009) with plans to
invest a further A$175 million to March 2013 44
NRE Wongawilli Mine - Strategy
Long Term future
Coal quality/productive/correct cost profile/safety/people
Coal
260 mt Resources
Productivity
Upgraded longwall 3000 tph
peak capacity
Trunk conveyors 4000 tph
Gate rd. conveyors 3500 tph
New LW domain to start in 2014.
Targeting 3 mtpa by FY 14
0.8
1.6 1.71.5 1.4
3.0
0.0
1.0
2.0
3.0
4.0
FY10 FY11 FY12 FY13 FY14 FY15
Mt
NRE Wongawilli Mine – miles traversed
Background
Purchased by NRE in Dec 2007
Development started March 2008.
Purchase of 2 x CM’s, SC’s etc
Last 12 months
LW production commenced.
Nebo Access commenced.
Finalise Nebo longwall designs
Exploration Program completed for Wonga
South
New Car parks constructed
New Bathrooms being constructed
Surface screen/sizer constructed and
commissioned.
Wonga South Portals commenced
New power supply for WW commenced.
Longwall Updgrade contarct signed.
Work in Progress
NRE WONGAWILLI COLLIERY RESERVES & RESOURCES
48
Resources (Mt) Reserves (Mt)
Potential
Reserves
(Mt)*
As per
mine
plan
(Mt)**
SeamMeasured Indicated Inferred Total Proven Probable Total Total
Bulli — 8.0 25.0 33.0 — — — — —
Wongawil
li21.0 16.0 114.0 151.0 2.7 5.1 7.8 23.0 30.8
Tongarra — — 74.0 74.0 — — — — —
Total 21.0 24.0 213.0 258.0 2.7 5.1 7.8 23.0 30.8
*Potential reserve of 23.0 million is additional to 7.8 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves.**Total of Reserves and Potential Reserves.
NRE WONGAWILLI COLLIERY
Longwall with its shearer
New Joy continuous miner that arrived at Wongawilli on March’10
49
50
COAL QUALITY
Typical washed coal quality
Note:
1 Based on Bowen Basin coal quality estimates
2 Based on inherent moisture content of Peak Downs coal
Source: Australian Coal Association, Company reports, Broker reports
Bulli Wongawilli
Average range for
coking coal1
Ash (%) 9.6 10.0 7.0 – 10.5
CSN (swell index)
5.5 >9.0 6.0 – 9.0
Inherent Moisture (%)
0.8 0.9 1.02
Volatile Matter (%)
21.7 24.7 17.5 – 34.0
Rank (Ro Max) 1.3 1.2 0.95 – 1.70
Fluidity (ddpm) 1,800 3,000 100 – 20,000
Sulphur (%) 0.38 0.59 0.375 – 0.750
Phosphorous (%) 0.039 0.010 0.005 – 0.080
Gujarat hard coking
coal compares well
against Bowen Basin
prime hard coking
coal on almost all
quality parameters
51
INFRASTRUCTURE POSITIONING
Port Kembla Coal Terminal remains anunconstrained coal export port
» 13.2Mt throughput in 2008
» Ship loading capacity is 18 Mtpabeing increased to 25 Mtpa
ROM coal from NRE No. is transportedvia truck haulage to Port Kembla
» Proven ability to transport up to 3Mtpa
ROM coal from Wongawilli istransported via rail to Port Kembla
» Historically up to 2 Mtpa has beentransported using existinginfrastructure
» The capital program budgets for aninfrastructure upgrade that will allowfor the transport of 4 Mtpa
Wollongong
Port Kembla
Rail
Road
NRE No. 1
NRE
Wongawilli
Gujarat NRE holds 16% equity inPort Kembla Coal Terminal anda seat on the Board.
OFFTAKE PARTNER – GUJARAT NRE COKE
All ROM coal production sold to Gujarat Coke
Sold on commercial terms based on a market formula calculated as follows:
» FOB Coking Coal Price based on the JSM BHP Goonyella benchmark
» To arrive at ROM price ,Benchmark HCC price is adjusted for :
» yield ( coking ~50 to 55%, high ash coking ~20 to 25% & rejects ~25% )
» washing costs & waste placement costs
» actual ocean freight added to come to C&F ROM coal price.
Since the commencement of production the ROM coal price received based on above
mechanism has resulted in being between 52% and 60% of the benchmark hard coking coal
price
» FY09/10 annual benchmark HCC price FOB US$128, FOB ROM US$75
» FY 10/11 :
» April-June 10 Qtr benchmark HCC price FOB US$200, FOB ROM US$115
» July – Sept 10 Qtr benchmark HCC price FOB US$225, FOB ROM US$125
Gujarat NRE Coke is the largest independent producer of Metallurgical Coke in India
» Listed on the Bombay and National Stock Exchanges
» Market cap of ~US$ 0.70 billion
» Only Indian company to have acquired coking coal mines in Australia
» First Indian company to have exported LAMC from India (to Argentina, Brazil, South Africa
& Europe)
52
GROWTH PLAN – PRODUCTION FOCUS
53
Wongawilli Longwall Introduced
NRE 1 Longwall IntroductionWongawilli Longwall Upgrade
HISTORICAL CAGR 50.7%
MT
FUTURE CAGR 39.6%
PROJECTED CAGR 43.7% OVER 8 YEARS
GROWTH PLAN – CAPEX
54
Current Status : NRE no 1
» Will result in > 4mtpa capacity mine
» Wonga Mains well advanced
» 4 x New CM‟s purchased
» New 4000 tph conveyor commissioned.
» Order for new 3500 tph Joy LW placed
Current Status : Wongawilli
» Will result in > 4mtpa capacity mine
» Wonga South Portals started
» 2 x New CM‟s purchased
» Order for Joy LW upgrade placed
Accolades
In April 2008, appointed honorary NSW
―Sydney Ambassador‖ to India by the
Premier of NSW
This year declared as the ―Person of the
Year 2009‖ by the Illawarra Mercury
Premier‘s NSW Export Awards
The Australian Export Awards is a national
awards program which recognizes and honors
export excellence thorough innovation and
commitment. The Company won the 2009
Premier‘s NSW Export Award in Minerals and
Energy sector and became one of the finalists at
National level.
55
THANK YOU
Mr Arun Kumar JagatramkaChairman & Managing Director
Gujarat NRE Coke Limited
5th Floor, Block ‗C‘,22, Camac Street, Kolkata – 700 016
Phone: - +91-33-22891471
Email: [email protected]
www.gujaratnre.com57