Riversdale Mining: Developing World Class Coal Operations in Southern Africa Steve Mallyon, MD Riversdale Mining Ltd AusIMM Technical Meeting 18 March 2009 Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riversdale Mining Limited.
Corporate profile Market Cap @ $3.04 per share A$572.7 million 15.3% 2.3% Shares 188.4 million 40.3% Options 20.1 million Net Cash ~ A$ 320 million 24.4% As of 10/Mar/2009 Passport Capital 16% 2.0% 12.7% Australian Institutions 3.0% Talbot Group 19.8% Tata Steel Ltd 10% As of 31/Dec/2008 UK Institutions North American Institutions Other Institutional Corporates Related Parties (predominantly management) Private Investors ~ 60% institutional ownership 2 Source: Thomson Reuters As of 30/Jan/2009
Operating in Africa Social Development Riversdale Mining is operating mines and developing projects that will employ >2,000 local staff and contractors, covering South Africa and Mozambique The company has extensive programs for training and comprehensive community engagement programs Committed to developing the local communities in which the company operates and to impact positively the wider economies The Company has an established track record for educational, health and infrastructure improvements that benefit the entire community (not just staff) Building on successful programs at ZAC, Riversdale Mining has commenced local training from a new training centre in Tete, Mozambique, involving farmers, builders, entrepeneurs, technicians & educators 3
Zululand Anthracite Colliery (ZAC) a snapshot MINERAL RESOURCES & RESERVES ZAC Production 850 900 kt ROM 650 700 kt saleable Reserves / Resources 17 yr LOM Significant expansion potential (Ngwabe block) Anthracite market Demand driven by the metal refining industry Relatively inelastic no price competitive substitutes Constrained supply from major producers (Vietnam, Russia) ZAC infrastructure Excellent infrastructure Spare capacity ZAC location Situated along the Richards Bay coal line (RBCT export port) Close to major markets (chrome, electrode paste & mineral sands) Resource Category Measured indicated Inferred Gross in Situ Tonnes (Mt) 11.2 18.7 23.7 Reserve Category Proved Probable ROM Tonnes (Mt) 5.3 10.2 Total 53.6 Total 15.5 4
Mozambique: A world class coking coal project 22 tenements >250,000 ha (20 tenements 100% owned) TATA: A$100 M + Strategic joint venture partner in 2 tenements Snapshot 2.1 Billion tonne Coal Resource in Benga Project Quality: premium hard coking coal plus thermal coal 20Mt/a coal Mining Study lodged with government Various transport options 5
Moatize: the next major coking coal basin The largest undeveloped coking coal region in the world? RIV: largest holding in the Moatize basin Benga: 2% of license area contains 2.1 Billion tonne Coal Resource - 1.0 Bt Measured & Indicated - 1.1 Bt Inferred - Drilling on 21 additional licenses throughout 2009 Premium hard coking and thermal coals Quality equal to best in Bowen Basin Competitive freight rates into high growth markets in India and Brazil Potential to access European coking coal market 6
7 Geological Map: Tete / Moatize
Facilities at Tete Aerial view of Tete Riversdale Camp near Tete 8
9 Coal Outcrop in Mozambique
Coal Samples in Mozambique Coal Core, April 2008 Large Diameter Coal Core 10
Borehole Geophysics Unlocks Seam Stratigraphy BE87 BE12 BE50 BE21 BE39 11
Cross sections sections 200RL 100RL 0RL -100RL -200RL -300RL -400RL -500RL -600RL 568500E 568500E 569000E 569000E 569500E BE53-14.50 50 100 150 200 250 300 350 400 450 500 550 600 650 653. 70-14.50 569500E S4232TU 11T S4112 31 S3 S12S2S11 RU2RU1 R7R6 R5R4 R32R31 R22R21 R13R12 R11 Q1 P4 P22 P12P3P21 P11 PL O3O2 O1 N22N21 N12N11 N0 M4 M2 M0 M3 M1 L3L22 L21L1 L4 L0 K21 K12 K22 K13 K11 J24J23 J22J21 J14J13 J122J121 J11I H12H11 G22G21 G1 F2 F1 312 2 F2 F1 F22 111 570000E BE11 2.50 50 100 150 200 TU 32TU 11 TU 12 31 S42 S3 S12S2S41 S11 0 RU2 R6R5 R4R32 R31R22 R21R13 R12R11 R7 Q1 P3 P21 P11P4 P22 P12 PL O3O2 O1 210.79 2.50 570000E 570500E BE49-13.00 50 100 150 200 250 300 350 400 450 500 518.70-13. 00 570500E E4E3 E2E1 E0 EL2 EL1 2EL21 D5D4 D3D2 D12D11 D0D00 C422C421 C41C322 C321C31 C22C21 C12C11 B52 B42 B332 B322 B31 B222 B51 B41 B23 B331 B212 B122 B321 B112 B0 B221 B211 B121 B111 A5 A4 A3 A5 A4 A3 A2 2 A2 1 A1A0 571000E BE46-1.00 50 100 150 200 250 300 350 400 E4E3 E2E1 E0 EL2 EL1 2EL2 1 D5D4 D3D2 D12D11 C41C322 C321C31 C22C21 C12C11 B52 B42 B332 B322 B31 B51 B222 B41 B212 B122B23 B331 B112 B321 B0 B221 B211 B121 B111 A5 A4 A3 A2 2 A5 A4 A3 A2 1 416.65-1.00 571000E 571500E BE44-2.50 50 100 150 200 250 300 350 EL2 EL1 2EL2 1 D5D4 D3D2 D12D11 D0D00 C422C421 C41C322 C321C31 C22C21 C12C11 B52 B42 B332 B322 B31 B51 B222 B41 B212 B122 B112B23 B331 B0 B321 B221 B211 B121 B111 A5 A4 A3 A2 A5 A4 A3 A1A0 2 A2 1 365.75-2.50 571500E 572000E BE41 16.50 50 D5D4 D3D2 D12D11 D0D00 100 C422C421 C41C31 C22C21 C12C11 150 200 B52 B42 B332 B322 B31 B51 B222 B41 B212 B331 B122 B112B23 B321 B0 B221 B211 B121 B111 250 A5 A5 300 A4 A3 A2 A1A0 2 A4 A3 A2 1 317.75 16.50 572000E 572500E 572500E 573000E 573000E 573500E 573500E 574000E 574000E 200RL 100RL 0RL -100RL -200RL -300RL -400RL -500RL -600RL 200RL 100RL 0RL -100RL -200RL -300RL -400RL -500RL -600RL 568500E 568500E 569000E 569000E 569500E 569500E 570000E BE114-28.00 50 100 150 200 250 300 350 400 450 500 550 600 V4V3 V2 V1 U6U5 U4U3 U2U1 TU 32TU 31 TU 2TU 11TU12 0 S8 S6 S51 S11S7 S52 S12 RU3RU2 RU0 R5R4 R32R31 R6 R22R21 R13R12 R11 P4 Q1 P22 P12P3 P21 P11 PL O3O2 O1 N12N11 M4 M2 M0 M3 M1 L5 L4L3 L22L21 L1 L0 K12 K11 J24J23 J22J21 J14J13 J122J121 J11I H22H21 H12H11 622. 62-28.00 570000E 570500E 570500E 571000E 571000E 571500E 571500E 572000E 572000E 572500E BE113 4.50 50 100 150 200 250 300 350 400 450 500 550 600 650 R22R21 R13R12 R11Q1 P4 P22 P12P3 P21 P11 PL O2O1 N22N21 N12N11 N0 M4 M2 M0 M3 L4 M1 L5 L22L21 L1L0 L3 K22 K13 K11 K21 K12 J24J23 J22J21 J14 J13J122 J121J11 I H22H21 H12H11 G22G21 G1 F2 2F2 3 F2 F1 111 F2 F122 E4E3 E2E1 E0 EL22EL21 D5D4 D3D2 D12D11 D0 D00 C22C21 C12C11 C31 698.70 4.50 572500E 573000E 573000E 573500E 573500E 574000E 574000E 200RL 100RL 0RL -100RL -200RL -300RL -400RL -500RL -600RL 12
13 Working Sections
Mining Stage 2010 1Mt sourced from the C seam pit in 2010 Waste Hauled to expit dump to the south of the ultimate pit shell limit 14
Mining Stage 2015 Mining at a 5Mtpa with a 80/20 North to South blend Mining continues in the south. C and D Seams 15
Mining Stage 2020 Mining discontinued in the south in 2016 16
Similar to Lake Vermont CHPP 2 stage washing High Cut / low Cut +1mm to dense medium cyclones 1mm + 0.25mm to spirals 0.25mm to froth floatation Water recycled Waste codisposed with overburden 60% yield of which half is coking coal Coal Processing Plant 17
18 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Product Strip Ratio Strip Ratio Product Tonnes PCI Riversdale HCC 17.8 14.7 11.4 12.5 13.2 13.3 8.1 3.0 Benga Av. First 10yrs Macarthur Jun 06 Goonyella Riverside 2000 Macarthur Jun 07 BMA Mines combined 2007 Macarthur Dec 07 Dingo/Wondindi Isaac Plains Strip Ratio (BCM/ tonne) x
Benga Coal Qualities Benga Hard Coking Coal # Volatile Matter (%, ad) 21.8 Rank (Ro Max) 1.4 CSN (swell index) 8.5 Benga Export Thermal # CV GAD (kcal, kg) 6390 Ash (%, ad) * 22 Moisture (%, ad) 0.8 Vitrinite % 81 Total Moisture (%, ar) 7 Ash (%, ad) 10.5 Volatile Matter (%, ad) 20 Gieseler max fluidity 2.4 (log) HGI 80 Coke strength (CSR) 71 Ash fusion (IDT, C) 1425 # Quality parameters are a weighted average of targeted seams across the Benga resource. Mine sequencing or selectivity has not been optimised * Products based on target ash which may be subject to change based on economic/quality optimisation Coke strength after reaction (CSR). Results from first coke test. Results expected to show some variation. 19
Benga will produce Premium Hard Coking Coals Benga hard coking coals Schapiro & Gray ASTM Stability prediction contours 20
21 First Benga Coke Produced
22 First Benga Coke Produced
Mine expansion linked to Infrastructure Riversdale Mining Stage 1 2010 To utilise refurbished Sena Line and existing Beira Port Export hard coking coal 1.5 Mt/a Export thermal coal 0.5 Mt/a Riversdale Mining Stage 2 2013 To ultilise new Beira coal terminal and/or barging Export hard coking coal 6 Mt/a Export thermal coal 2 Mt/a Domestic thermal coal 4Mt/a Sena Rail refurbishment to be completed by end of 2009 Consortium developing rail (CFM, Rites and Ircon) approved fullyfunded Development of the Beira port Government has announced $500M plans for development Harbour backlog dredging to commence in 2009 Barging feasibility study underway Bathymetric Survey completed 23
Mozambique: rehabilitation of the Sena rail line Port upgrade Approach to Dona Ana Bridge Sena line crossing the Zambezi Dona Ana Bridge 24
Barging Potential on The Mighty Zambezi Photo of CB One of the largest rivers in the world Cahora Bassa Dam regulates flow and traps sediment upstream Studies show river depth is commercially navigable Single Line survey in 2008 confirmed channel depth, width Tete to Chinde Full scale Bathymetric survey completed in January 2009 First ever comprehensive survey of the Zambezi 25
Barge Loading and Unloading Loading at Tete will be via covered conveyor (A) Unloading can be direct to Ship (B), to Ground (C) or to Trans loader (D) Ohio River A Lower Mississippi River B Parana River D C Lower Mississippi River 26
27 Benga Seams Extend into Adjacent Tenements
28 Benga Seams Confirmed in 946L
Competent Person Reports Benga Coal Resources The Benga Coal Resources quoted in this announcement are based on Report No 269/01/02, Coal Resources, Benga Project as at 15th August 2008, compiled under the supervision of Mr. Kerry Whitby, who is a Fellow of the Australasian Institute of Mining and Metallurgy and Managing Director of McElroy Bryan Geological Services Pty Ltd (MBGS). Kerry Whitby has more than 30 years experience as a geologist in the resources industry and more than 20 years experience in the estimation of coal resources for coal projects and coal mines both in Australia and overseas. This expertise has been acquired principally through exploration and evaluation assignments at operating coal mines and coal exploration areas in Australia s major coal basins and in other coal basins throughout the world. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (September 2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. ZAC Coal Resources & Reserves Information that relates to geology, drilling, mineralisation and Mineral Resources and Ore Reserves estimates for Zululand Anthracite Colliery (ZAC) is based on information compiled by J Liebenberg, who is a member of South African Council for Natural Scientific Professions. Mr Liebenberg 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 under the meaning of the JORC Code. Mr Liebenberg, an employee of Zululand Anthracite Colliery (Pty) Limited has given his consent to the Public Reporting of these statements concerning geology, drilling and mineralisation in this format. Benga Coal Quality The coal quality information in this announcement has been compiled under the supervision and reviewed by Mr. Andrew Meyers, who is a Member of the Australasian Institute of Mining and Metallurgy and Director of A&B Mylec Metallurgical Consultants Pty Ltd. Andrew Meyers has more than 19 years experience in coal processing and coal quality for coal projects and coal mines both in Australia and overseas. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. Andrew Meyers consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. 29