For personal use only. GUJARAT NRE COKING COAL LTD Investor Presentation ASX Code: GNM May 2012

Transcription

1 GUJARAT NRE COKING COAL LTD Investor Presentation ASX Code: GNM May 2012

2 Table of Contents Page Introduction 3 Company Overview 10 Industry Overview 17 Growth Strategy 23 Financial Overview 27 Appendix 32

3 Introduction

4 Gujarat NRE Coking Coal Ltd. Overview (US$ in millions) Gujarat NRE Coking Coal Ltd. ( Gujarat or the Company ) is an ASX-listed hard coking coal producer with BSE/NSE-listed Indian parent ~$190 million market cap FY12 Rev: $191.2 million FY12 EBITDA: $49.7 million 100%-owner of two underground coking coal mines in New South Wales Australia NRE No. 1 NRE Wongawilli Total JORC reserves of 125 Mt and resources of 651 Mt The majority of unwashed coal is sold under contract to the Company s major shareholder (Gujarat NRE Coke) at market price on arms length terms Berrima Sutton Forest proposal NRE No. 1 and NRE Wongawilli Site Map Xstrata Tahmoor Southern Coalfield NRE WONGAWILLI W. Tahmoor Appin Westcliff Dendrobium Northcliff Kiama Peabody Metropolitan BHP Illawarra Coal NRE No. 1 Wollongong Port Kembla Port Kembla coal loader 18 Mtpa Current unwashed coal production of 1.2 Mtpa projected to increase to ~5.0 Mtpa by 2016 Note: Management estimates for FY12 ending March 31, 2012 are unaudited 4

5 Highly Experienced Management Team Arun Kumar Jagatramka Executive Chairman 28+ Years of Experience Established Gujarat NRE Coking Coal Ltd. in 2004; only Indian entity to own and operate coking coal mines in Australia Has grown Gujarat NRE Coke to largest independent producer of Met Coke in India Chartered Accountant with all India 1 st rank and gold medal Chris Harvey Head of Corporate Relations 35+ Years of Experience Former Mining Engineer and Senior Environmental Officer with the NSW Department of Mineral Resources Gas Drainage Engineer at West Cliff Colliery Fellow of the Australasian Institute of Mining & Metallurgy, Fellow of Institution of Engineers Australia, and Member of the Australian Institute or Management Steven Bow Operation Manager: NRE Wongawilli 28+ Years of Experience Formerly held various managerial positions covering technical and operational management with BHP Billiton and its coal operations in the Illawarra Region First class mine managers ticket & qualified competent person in reserves analysis Rhys Brett Operations Manager: NRE No Years of Experience 8 years underground coal mining with Anglo, Centennial and Xstrata NSW 1st Class Certificate of Competency for Underground Coal Mines and a diploma on Ventilation Engineering Paul Coxhead Statutory Manager: NRE Wongawilli 35+ Years of Experience Experience as Undermanager & Mine Manager for coal mines in New Zealand, Queensland & New South Wales 1st Class Certificate of Competency for Underground Coal Mines Phil Wakeford Statutory Manager: NRE No Years of Experience Experience in NSW South Coast, NSW Western District and Central Queensland Collieries Formerly held many engineering positions as well as senior mine management positions with Oakdale Collieries Ltd, BHPBIC and NREWW NSW 1st Class Certificate of Competency for Underground Coal Mines 5

6 Investment Highlights Premium Quality Mines with Longwalls in Operation No. 1 and Wongawilli produce premium quality hard coking coal Longwall production at both mines, ramping to ~5 Mtpa by 2016 (up 355% vs. 2012) Operational Costs Falling as Production Increases Expansion into new mine areas more suitable for longwall operation will reduce opex Close proximity to port facilities with low demurrage, reducing transport costs Favorable Long-Term Market Dynamics Demand expected to remain robust given solid steel demand, especially in India Prices expected to remain stable given long-term demand/supply dynamics Experienced Management and Strong Parent Parent company is largest independent producer of low ash met coke in India Senior mining staff has significant experience with large miners such as BHP and Rio 6

7 Valuation by Wood Mackenzie (US$ in millions) Wood Mackenzie ( WM ) was retained by the Company to provide a valuation of the Company s operations The resulting estimate of value represents WM s view, based on publicly available information WM considered two scenarios, using multiple valuation methodologies including NPV analysis and comparable recent transactions Scenario #1: Based on status quo in which NRE No. 1 and NRE Wongawilli are operated within Gujarat NRE Coke s vertically integrated model Scenario #2: Fair market value based on what a bidder, intending to enhance the quality of the coal for the seaborne market, might be expected to pay for the stand-alone assets (US$ in millions) Vertically Integrated Assets Fair Market Value Base Case $990 $938 The resulting valuation shows an initial range under base case assumptions (1) of US$938 to US$990 million (1) In developing the valuation, WM used as inputs its own assumptions for production rates, costs (opex & capex), mine life, discount rate, price and carbon tax impact (refer to next slide) 7

8 Valuation by Wood Mackenzie (continued) Wood Mackenzie has used several key assumptions in developing its valuation based on publicly available information Vertically Integrated Assets Assumptions Fair Market Value Assumptions NRE No. 1 NRE Wongawilli NRE No. 1 NRE Wongawilli Discount Rate 10% 10% 10% 10% Peak Production 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa Modeled Production 20 years 10 years 20 years 10 years Priceline 0.65*HCC 0.55*HCC 1.00*HCC 0.97*HCC Cost Ex Carbon at Peak Production (Real US$/t) Wash Plant Capex N/A N/A US$71M US$76.4M Yield N/A N/A 66% 66% Coking Coal/Thermal Split N/A N/A 90:10 90:10 Carbon Emissions (tco2e/trom) Government Assistance % of carbon cost above 0.1t/t, capped at 2008/9 levels, for 6 yrs 8

9 Recent Developments The Company has successfully commenced longwall operations at both NRE No. 1 and Wongawilli However, to achieve this goal, Management had to adeptly manage unavoidable transitional and regulatory changes, including: Longer Term Mine Development Operation focus at NRE No.1 shifted from small scale pillar extraction to longer term development, supporting future longwall operations Refurbishment of Infrastructure Refurbishment of major mine infrastructure was undertaken while older items of plant were operating, requiring additional time to phase in newer, more productive equipment Longwall Change Out NRE Wongawilli Mine experienced 2 longwall change outs in the one 12-month period, reducing the availability of equipment Regulatory Changes Changes in state government and approval process created minimum of 9-month delay in gaining necessary approvals October 2011 compared to original expectation of February 2011 The Company is now well positioned to capitalize on longwall operations and significantly increase production capacity and cash flow going forward 9

10 Company Overview

11 NRE No.1 Colliery Overview Located in Southern Coal fields of NSW ~10km North of Wollongong ~16km from Port Kembla Coal Terminal Premium quality hard coking coal JORC reserves of 92 Mt and resources of 315 Mt Targeting Wongawilli Coal Seam Upgrading entire mine infrastructure Developing future longwall extraction domains Longwall installed March/April 2012 Longwall commenced production in April 2012 Targeting ~3 Mtpa by 2016 Over 30-year potential mine life Mine Overview NRE No.1 11

12 NRE Wongawilli Colliery Overview Located in Southern Coal fields of NSW ~20km southwest of Wollongong ~14km from Port Kembla Coal Terminal Mine Overview NRE Wongawilli Premium quality hard coking coal JORC reserves of 33 Mt and resources of 337 Mt Targeting Wongawilli Coal Seam Currently using longwall extraction from remnant areas Initiated new access driveage in support of new longwall panels to the West & South Targeting ~2 Mtpa by 2016 Over 30-year potential mine life 12

13 Coking Coal Quality Comparison NRE coking coal has superior properties relative to other regional players Coking Coal Quality Comparison Sp e cifica tio ns BHP Go o nye lla Hard Co king Co a l BHP Pe a k Downs Co king Co a l Oa ky Cre e k Hard Co king Co a l (Xstra ta ) Ash 8.80% 10.40% 9.30% 9.50% Volatile Matter 23.20% 20.30% 26.70% 22.00% Sulphur 0.52% 0.55% 0.74% 0.50% Phosphorus 0.02% 0.01% 0.06% 0.01% CSN MMR 1.18% 1.45% 1.16% 1.24% Fluidity 1,032 ddpm 573 ddpm 9,000 ddpm 4,000 ddpm NRE A Hard Co king Co a l Le g e nd Better Lower Similar Source: Typical specifications as per analysis certificate 13

14 Reserves & Resources NRE No.1 & Wongawilli The two mines collectively have JORC reserves of ~125 Mt and resources of over 650 Mt The coal produced at the NRE No. 1 Colliery is world class due to its ultra low phosphorous level and ideal MMR (1.24) superior quality for the production of blast furnace coke content NRE No.1 Colliery Resources (Mt) Reserves (Mt) Seam Measured Indicated Inferred Total Proven Probable Total Bulli Balgownie Wongawilli Total NRE Wongawilli Colliery Resources (Mt) Reserves (Mt) Seam Measured Indicated Inferred Total Proven Probable Total Bulli Wongawilli Tongarra Total

15 Favorable Proximity To Export Infrastructure NRE No. 1 Port Kembla Coal Terminal remains an unconstrained coal export port 13.8 Mt throughput in FY 2011 Ship loading capacity of 17.5 Mtpa being increased to 31 Mtpa Low demurrage charges reduce transport costs NRE Wongawilli Wollongong Port Kembla Unwashed coal from NRE No.1 is transported via truck haulage to Port Kembla Proven ability to transport up to 3 Mtpa Rail Road Unwashed coal from Wongawilli is transported via rail to Port Kembla Historically up to 2 Mtpa has been transported using existing infrastructure The capital program budgets for an infrastructure upgrade that will allow for the transport of >3 Mtpa 15

16 Diverse Customer Base Gujarat has a diverse global customer base spanning a variety of industries Lowers any industry-specific risk Selected Customers The majority of Gujarat s unwashed coal is sold under contract to its Parent (Gujarat NRE Coke) Commercial terms are based on market prices at an arms length basis Gujarat s Parent converts the coal to coke and then sells to a broad set of customers Customers use Gujarat s the end product in a variety of industries including: Steel / Industrial Cosmetics Technology Energy Automotive 16

17 Industry Overview

18 Global Steel Utilization Other Asia 16% Japan 10% Global Use of Steel 2000 Other 9% EU (27) 22% Other Europe 2% CIS 4% Global steel production is dependent on coking coal ~68% of total global steel production relies directly on coal inputs, driving demand China, the largest steel producer in the world, started ~10 new blast furnaces in the past six months, lifting output to a record in March 2012 China 17% NAFTA 20% From 2000 to 2010, China surged from 17% of global utilization to 45% Japan 5% Other Asia 14% Global Use of Steel 2010 Other 10% EU (27) 11% Other Europe 2% CIS 4% NAFTA 9% Steel utilization increased 69% worldwide between 2000 and 2010, with China increasing over 400% India, the third-largest steel producer, is set to boost capacity one-third to more than 100 Mt The capacity increase is part of a five-year $1 trillion plan to improve infrastructure Source: World Coal Association; Custeel.com China 18 45%

19 Coking Coal Importers & Exporters Canada 11% Top Coking Exporters 2010 Russia 5% Mongolia 4% Australia is the world s largest exporter of coking coal by a wide margin Australia represents 60% of global exports vs. U.S. at 20% USA 20% Australia 60% Coking coal prices reached a record last year after floods disrupted output and shipment from mines in Australia Prices have since normalized as supplies were restored Korea 15% Top Coking Importers 2010 Brazil 7% Ukraine 5% Japan 31% In terms of imports, Japan represents almost onethird of the market China may surpass Japan as the largest coking coal importer by 2015 with India close behind India 16% Chinese demand for imported coking coal is driven by state investment in steel-intensive infrastructure that will link western China to demand centers in the east China 26% Source: World Coal Association; Australian Bureau of Resources and Energy Economics 19

20 Import of coking coal (million tons) (RHS) India s Rising Demand For Coking Coal F 2013F Demand of coking coal Production Import Management expects that Indian consumption of coking coal will continue to increase over time, absorbing an increasing share of the Company s production Coking coal demand in India has been rising steadily since 2008 with forecasts predicting this growth to continue India holds large coal reserves, however, reserves of coking coal, especially premium hard coking coal, are very low which is represented by a fall in production With very limited domestic production there will be a strong growth in the amount of coking coal imported Source: Coal Industry Annual Review, CRISIL Research, E&Y 20

21 Global Coking Coal World Demand Global demand for coking coal is expected to steadily increase through 2020 Global Coking Coal Demand Million Tons A: Seaborne Hard Coking B: Seaborne Semi-soft/weak C: Seaborne PCI Sub-Total SS & PCI (B+C) All Met Combined Source: AME; RTCA Analysis Ha rd Co king Co a l De ma nd Gro wth : CAGR (fo re ca st) Re g io n CAGR ( ) Brazil, China, India 8% Asia (excluding China & India) 2% Europe 0.20% World Total approx. 3% Source: Merlin Trade and Consultancy Ltd 21

22 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 Oct/10 Jan/11 Apr/11 Jul/11 Oct/11 Jan/12 Apr/12 For personal use only Long-term Price Stability Expected Prices for coking coal have steadily increased since 2009 and have experienced recent spikes due to temporary supply disruptions Management expects long-term coking coal prices to remain close to $225/ton

23 Growth Strategy

24 (Mt) Historical Production and Future Targets Production Forecast Wongawilli NRE No FY 07 FY 08 FY 09 FY 10 FY 11 FY 12E Decreased production in FY12 largely due to regulatory delays Target production of ~5 Mtpa by 2016, with increase driven by: Installation of longwall in NRE No. 1 mine & development of the Wongawilli Seam Upgrade of longwall at Wongawilli mine & development of southern areas of Wongawilli seam Upgrade of infrastructure at both mines with latent capacity beyond current business plan With NRE No. 1 longwall in production, significant production increases are underway 24

25 Growth Plan Capex and Opex Gujarat plans to significantly increase production through its expansion Capex As infrastructure is upgraded further operational savings will follow Opex Capex Current cash operating costs (pre-royalty) are ~US $85/t As longwall production ramps up, operating costs are expected to fall as follows: Longwall Production Target 1.0 Mtpa ~US $65/t 1.5 Mtpa ~US $55/t 3.0 Mtpa ~US $39/t Expansion Capex: ~$500 million NRE No. 1 Will result in ~3 Mtpa capacity mine Wonga Mains development well advanced Tail Gate & Main Gate development Advanced for LW installation in FY 2011/12 NRE Wongawilli Will result in ~2 Mtpa capacity mine Wonga South Portals started Order for Joy LW upgrade placed 25

26 Longwall to Significantly Increase Production Longwall Delivery The Company has longwall extraction implemented at both NRE No. 1 and NRE Wongawilli Mines Extraction will be ongoing and targeted to achieve ~5 Mtpa in 2016 Major coal handling infrastructure is being progressively upgraded to meet production schedule Port infrastructure is being upgraded to meet growing demand for port facilities and streamline coal supply chain 8.0x 7.6x Deleveraging Profile The increased production will also drive considerable incremental EBITDA over the long-term 6.0x Longwall production is expected to provide substantial cash flow for deleveraging 4.0x 2.0x 3.4x 3.2x 2.3x 1.8x Based upon internal estimates the Company expects to decrease its leverage to under 2.0x by FY x 2012E 2013E 2014E 2015E 2016E 26

27 Financial Overview

28 Ownership & Capital Structure (US$ in millions, except per share data) Capital Structure (3/31/12) Key Shareholders Share Price (1) $0.18 Shares Outstanding Market Cap $184.5 Net Debt $371.9 Enterprise Value $556.4 C a p ita liz a tio n As o f M a r c h 3 1, C o u p o n M a tu r ity 30.4% 69.6% Gujarat NRE Coke Limited (Parent) Public C a s h $ 5.4 D e b t: T e rm B o rro w in g s $ % 2017 T o ta l D e b t $ % 1.8% Corporations T o ta l E q u ity % Institutions T o ta l C a p ita liz a tio n $ % Public and Other Individuals and Insiders (1) Share price as at April 27, 2012 Note: Management estimates for FY12 ending March 31, 2012 are unaudited 28

29 Historical Financial Summary (US$ in millions) Revenue EBITDA $250.0 $235.4 $100.0 $200.0 $191.2 $75.0 $64.7 $150.0 $127.8 $50.0 $49.7 $100.0 $50.0 $25.0 $ E $0.0 NM E Capex Total Assets $300.0 $262.9 $1,250.0 $1,113.6 $1,000.0 $937.4 $200.0 $100.0 $113.5 $138.4 $750.0 $500.0 $634.3 $250.0 $ E Note: Management estimates for FY12 ending March 31, 2012 are unaudited $ E 29

30 Credit Statistics Total Debt / EBITDA Net Debt / EBITDA 10.0x 10.0x 7.5x 7.6x 7.5x 7.5x 5.0x 4.1x 5.0x 2.9x 2.5x 2.5x 0.0x NM E 0.0x NM E EBITDA / Interest Expense Total Assets / Total Debt 4.0x 3.8x 6.0x 2.0x 2.6x 4.0x 4.3x 3.6x 3.0x 2.0x 0.0x NM E 0.0x E Note: Management estimates for FY12 ending March 31, 2012 are unaudited 30

31 Summary Low Premium Cost Quality Manufacturer Mines of with Low Longwalls Ash Metallurgical in Operation Coke Premium Operational Quality Costs Mines Falling with as Longwall Production Plans Increases in Process Favorable Long-Term Market Dynamics Experienced Management and Strong Parent 31

32 Appendix Appendix

33 Overview of Gujarat NRE Coke LTD (Parent) Overview Largest independent producer of metallurgical coke in India Indirectly holds ~69% of Gujarat s ordinary shares outstanding Listed on the Bombay and National Stock exchanges, with a market capitalization of ~$220 million Approximately 160,000 shareholders 14 dividends paid in the past 9 years, continuous profit history for the last 15 years, and a credit rating of AAfor long-term borrowing and PR-1+ for short-term borrowing KANDLA PORT GOA PORT NEW MANGALORE PORT 3 4 KRISHNA PATNAM PORT Plant at Bhachau, Gujarat Plant at Khambalia, Gujarat Plant at Dharwad, Karnataka Proposed Plant, Nayudupeta, Andhra Pradesh Comparative Size Rated one of the top 10 companies by profit performance (Business Today) Only Indian company to export low ash metallurgical coke from India to Argentina, Brazil, South Africa and Europe 5 6 Registered Office, Kolkata Corporate Office, Ahmedabad Resource Met coke capacity 1.25 Mt, with the view of increasing to 4 Mt by 2014/15 33

34 Disclaimer & Important Notice FORWARD LOOKING STATEMENTS AND OTHER MATTERS UNLESS OTHERWISE NOTED, THE FORECASTED INDUSTRY AND MARKET DATA CONTAINED IN THE ASSUMPTIONS FOR THE PROJECTIONS ARE BASED UPON MANAGEMENT ESTIMATES AND INDUSTRY AND MARKET PUBLICATIONS AND SURVEYS. THE INFORMATION FROM INDUSTRY AND MARKET PUBLICATIONS HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT THERE CAN BE NO ASSURANCE AS TO THE ACCURACY OR COMPLETENESS OF THE INCLUDED INFORMATION. GUJARAT NATURAL RESOURCES ENVIRONMENT ( GNM ) HAS NOT INDEPENDENTLY VERIFIED ANY OF THE DATA FROM THIRD-PARTY SOURCES, NOR HAS GNM ASCERTAINED THE UNDERLYING ECONOMIC ASSUMPTIONS RELIED UPON THEREIN. THE INFORMATION AND OPINIONS SUPPLIED BY WOOD MACKENZIE (AUSTRALIA) PTY LIMITED, DOES NOT INCLUDE, NOR SHALL BE CONSTRUED AS INCLUDING, ADVICE, GUIDANCE OR RECOMMENDATIONS FROM WOOD MACKENZIE TO TAKE, OR NOT TO TAKE, ANY ACTIONS OR DECISIONS IN RELATION TO ANY MATTER, INCLUDING WITHOUT LIMITATION RELATING TO INVESTMENTS OR THE PURCHASE OR SALE OF ANY SECURITIES, SHARES OR OTHER ASSETS OF ANY KIND. SHOULD YOU TAKE SUCH ACTION OR DECISION BASED ON SUCH INFORMATION OR OPINION, YOU DO SO ENTIRELY AT YOUR OWN RISK AND WOOD MACKENZIE SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY LOSS, DAMAGE, COSTS OR EXPENSES INCURRED OR SUFFERED BY YOU AS A RESULT. FURTHER, WOOD MACKENZIE REPRESENTS THAT ALTHOUGH IT HAS USED REASONABLE ENDEAVOURS TO OBTAIN RELEVANT FACTUAL INFORMATION WHOLLY FROM PUBLIC SOURCES DEEMED BY IT, IN ITS DISCRETION, TO BE RELIABLE AT THE TIME THE INFORMATION WAS OBTAINED, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. ALSO, ALTHOUGH WOOD MACKENZIE REPRESENTS THAT IT HAS USED REASONABLE SKILL AND CARE IN INTERPRETING SUCH FACTUAL INFORMATION, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR COMPLETENESS OF SUCH INTERPRETATION. THESE MATERIALS ARE BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND FOR USE AT THE PRESENTATION. THIS PRESENTATION AND THESE MATERIALS MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, BY ANY MEDIUM OR FOR ANY PURPOSE. THIS PRESENTATION IS NOT INTENDED TO CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION. NO REPRESENTATION, WARRANTY OR UNDERTAKING (EXPRESSED OR IMPLIED) IS MADE IN RELATION TO THIS PRESENTATION. THE PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH INVOLVE RISKS AND UNCERTAINTIES AND ACTUAL RESULTS AND DEVELOPMENTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED HEREIN DEPENDING ON A VARIETY OF FACTORS. NO RESPONSIBILITY IS TAKEN OR ACCEPTED BY GNM AND/OR ANY OF ITS PARENTS, SUBSIDIARIES, AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND ASSIGNS FOR THE ADEQUACY, COMPLETENESS OR ACCURACY OF THE PRESENTATION OR THE ASSUMPTIONS ON WHICH IT IS BASED AND ALL LIABILITY IS HEREBY EXPRESSLY EXCLUDED AND DENIED. ANYONE USING THE PRESENTATION DOES SO AT THEIR OWN RISK AND NO RESPONSIBILITY IS ACCEPTED FOR ANY LOSSES WHICH MAY RESULT FROM SUCH USE DIRECTLY OR INDIRECTLY. RECIPIENTS SHOULD CARRY OUT THEIR OWN DUE DILIGENCE IN CONNECTION WITH THE ASSUMPTIONS CONTAINED HEREIN. EBITDA AND ADJUSTED EBITDA AS USED IN THIS PRESENTATION AND DEFINED IN THE OFFERING MEMORANDUM FOR THIS OFFERING ARE NOT FINANCIAL MEASURES CALCULATED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ( GAAP ). FOR A RECONCILIATION OF THESE MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES, PLEASE REFER TO THE OFFERING MEMORANDUM FOR THIS OFFERING. 34

35 Competent Person Statement Competent Person Statement The information in this Presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by, in relation to the Coal Resources for both NRE Wongawilli Colliery and NRE No. 1 Mine, by Mr Barry Clark an employee of Gujarat NRE Coking Coal Ltd, and in relation to the Coal Reserves for both NRE Wongawilli Colliery and NRE No. 1 Mine, by Mr Kris Markowski, also an employee of Gujarat NRE Coking Coal Ltd. Mr Clark is a Member/Fellow of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists. Mr Clark 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 a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Clark consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears. Mr Markowski is a Member/Fellow of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists. 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 a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Markowksi consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears. 35