Beruflich Dokumente
Kultur Dokumente
Corporate Presentation
September 2010
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.
Riversdale Corporate Profile
Major Shareholders
Tata Steel 24.2 %*
Passport Capital 17.2 %
CSN 16 %
2
Riversdale Share price Performance
ASX: RIV
(% Increase since 2 Jan 2009) Current Share Price A$9.49 (6 Sept 2010)
3
Recent Coal Asset Transactions
Transaction Average
RIVERSDALE
May-09
Nov-09
Aug-10
Aug-10
Aug-10
Aug-09
Dec-07
Apr-10
Jul-10
Jul-10
Jul-08
Valuation multiples
(EV A$/t of resource) (EV A$/t of reserve)
Global Average
Global Average
RIVERSDALE
RIVERSDALE
Source: JP Morgan Estimates (12/8/10), Riversdale (EV as of 6/9/10)
Data shown on a raw transaction multiple basis. Includes producing assets and assets producing low quality coking coals + thermal coal. Non-weighted global averages
*Only includes companies with a minimum of 20% coking coal sales (actual or projected). RIV multiple based on Benga’s current reserve base of 502Mt
Mozambique’s Role in the World of Coal
6
Major Seaborne HCC Exporters: 2010
Canada
18 Mt
(11 %)
Poland, China
Russia, NZ,
Others
15 Mt (8 %)
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Major Seaborne HCC Exporters: 2025
Canada
27 Mt
(9 %)
USA
25 Mt
(8 %)
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Coking Coal Supply Routes
Key Markets within striking distance
Major Minor
Exporter
Importer
Mozambique
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Major Steel Projects: Positioned for Imports
China: Existing and Planned Blast Furnace China’s South Coast Steel Projects - Long
Operations Term Coking Coal Importers
• China’s shift to a net importer is not
temporary – a structural shift has taken place
• Domestic market balance has a significant
impact on the seaborne market.
• 570Mt (Domestic met coal) Vs. 270Mt
(Seaborne market)
• Will be increasingly dependent upon
seaborne hard coking coals
• A long-term ‘wild-card’ in hard coking coal
Selected coastal steel mill projects include:
• Wuhan Iron & Steel (WISCO) – 10 Mtpa
Few Many China Met Coal Imports Fangchenggang Project in Guangxi, SE Coast
Blast Furnace • Anshan Iron & Steel – 10Mtpa
Major Regions of Fujian I&S JV Project in Fujian SE Coast
Expansion
2008 2020 • Baosteel – 10Mtpa
Tier 1 mill coastal
expansion project
7Mt 51 Mt Zhanjiang Project in Guangdong, SE Coast
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Major Steel Projects: Positioned for Imports
India: Existing and Planned Blast Furnace India’s met coal import growth – Forecast
Operations to exceed China’s
• Significant crude steel production expansions
are planned
• May 2010 India’s steel minister, Virbhadra
Singh: “current production (60Mt).. By 2011-
12 should increase to at least 120Mt ...“
• Unlike China, India is completely dependent
upon imported coking coals – Domestic
production is 6Mt vs. China 570Mt
• A natural market for Mozambique coals
Selected coastal steel mill projects include:
Few Many Indian Met Coal Imports • ArcelorMittal, POSCO Projects – Circa 50Mt
Under feasibility in Karnataka, Orissa & Jharkand
Blast Furnace
Major Regions of
• Major Domestic Mills – 50Mt+ Feasibility
Expansion
2008 2020 Tata, SAIL, Essar, JSW, JSPL – East/South Regions
Tier 1 mill coastal
expansion project • Emerging Mid Tier Mills – Integrated facilities
27 Mt 89 Mt Electrosteel, Bhushan – Feasibility & Construction
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Major Steel Projects: Positioned for Imports
Brazil: Existing and Planned Blast Furnace Brazil – a low-cost crude steel production
Operations base set to expand
• Dependent upon imported coking coals
• Long freight distances from major Met coal
supplies
• 28% of Brazilian Met coal imports from
Australia in 2008 & approximately 20% in
2009
• A natural market for Mozambique coals
Selected coastal steel mill projects include:
• CSN – Itagui & Minas Gerais Projects – 9Mtpa
• USIMINAS – Ipatinga – 5 Mtpa
Few Many Brazil Met Coal Imports
• MMX / WISCO JV – Port of Acu – 5 Mtpa
Blast Furnace
• Vale / ThyssenKrupp JV – Septiba – 5 Mtpa
Major Regions of
Expansion
2008 2020 • Vale / Dongkuk Steel JV – Ceara – 3 - 6 Mtpa
Tier 1 mill coastal
expansion project
18 Mt 38 Mt
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Mozambique: An Opportunity for Indian
Thermal Coal Consumers
India’s economy is structurally short of India’s Power Station Build: 2010 - 2020
electricity generation capacity
• Major coal-fired power plants are being
constructed with numerous sites in the
feasibility stage
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Riversdale’s Role in Coal
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Success at ZAC: Ability to Leverage
Experience into Mozambique
Using ZAC operational experience in
Mozambique
• Exploration and Development success
achieved to extend LOM
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Riversdale in Mozambique
Riversdale has been operating in
Mozambique since 2006
• The company has developed a strong
relationship with the Mozambique
government
• Key Milestones:
Completion of A$337 million Capital Raising (July 2010)
Announcement of Zambeze MoU w/ WISCO (June 2010)
Zambeze Resource Upgrade (May 2010)
Benga Reserve & Resource Upgrade (May 2010)
Announcement of FS – Benga 20Mtpa ROM (May 2010)
Benga Mine Officially Opened (April 2010)
Benga Mining Contractor Selected (April 2010)
Benga Environmental Approval (EIS) (January 2010)
Benga Power Environmental Approval (EIS) (January 2010)
CHPP Supply Contract Signed (December 2009)
Benga Mining Contract Approved (April 2009)
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Riversdale’s Tete Region Tenements
Zambeze
Project
Benga
Project
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Benga HCC Overview
Comparison With
Premium Hard Coking Coal Quality QLD Hard Coking
Benga Coal Brand Coal Brand
Premium A* B*
Coals
• Hot Strength (CSR) and Cold Strength (M40)
CSR 68 68 68
equal to benchmark premium HCC
M40 81 80 83
• Specifications independently verified by Tier
1 international steel mills Rank (Ro Max) 1.37 1.17 1.33
• Superior carrying capacity – Measured by Volatile Matter (%, ad) 23.1 23.8 20.4
Gray King & Vitrinite – allows blending with
Ash (%, ad) 10.5 8.9 8.5
cheaper, soft coking coals in coke blends
Gray King G9 G6 G5
• Low Slag Volumes due to low alumina levels
Sulphur (%, ad) 0.83 0.52 0.35
• Benga HCC can improve blast furnace
Phosphorus (%, ad) 0.08 0.02 0.075
performance where iron ore supplies contain
higher alumina levels Predicted Coke Ash 13.6% 11.6% 10.7%
from the Bowen Basin in QLD, Australia Q4 2010 Settlement US$209/t US$209/t
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Benga to Produce Prime HCC Products
Prime Hard
Coking Coals
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Benga Progress
Benga Hard Coking Coal Benga’s First Pit – March 2010 His Excellency Armando Emilio Guebuza
Benga CHPP Clearing Core Yard, Project Office & Construction Riversdale’s Team at Tete, Mozambique
Camp
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Benga Power Plant: Project Overview
22
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Zambeze Non-Binding MoU
Riversdale Mining has signed a MoU with Top 5 Crude Steel Producers 2009
WISCO and China Communications Mtpa
Construction Company (CCCC)
• 40% equity stake in the Zambeze Project for a
cash consideration of US$800 million
Source: Citi
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Zambeze Project Overview
Zambeze Project overview
World-class Tier 1 HCC project
• Adjacent to the Benga Project – potential synergies
• 40% life of mine coking coal off-take agreement with
WISCO (subject to definitive agreement)
Conceptual mine plans are being developed for the
project
• Large volume, long-life mine
• Potential for larger scale development than Benga
• Products to comprise hard coking coal and export
Benga
Project*
thermal coal
• Potential LT target of 90 Mtpa ROM under
investigation
Tenement holders
RIV (100%) (Pending definitive agreement w/ WISCO)
RIV (65%) TATA (35%) JV (inc Benga)
Vale
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East Tete Licenses
East Tete Licenses overview
1242L, 945L, 948L, 937L, 935L – ‘East Tete’
Licenses
• 100% Riversdale ownership
• Ability to leverage off Benga and Zambeze logistics
Zambeze
Project systems
• Benga coal seams extend into adjacent tenements
Benga 945L is immediately adjacent to Riversdale’s
Project*
Benga and Vale’s Moatize projects
• Riversdale will target its 3rd Tier 1 HCC operation
Tenement holders
RIV (100%) (946L Pending definitive agreement w/ WISCO)
RIV (65%) TATA (35%) JV (inc Benga)
Vale
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Benga Stage 1,2 & 3: Infrastructure Access
Sena Rail
• Completed capacity ensures Stage 1 project
requirements
• Expansion potential includes double
tracking, passing loops, signalling & bridge
upgrade
Berth 8 at the Beira Coal Terminal
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When the Zambezi was the Mississippi
Source: Top: Barge flotilla on the Madeira River, Brazil, Bottom: St. Louis coal barge
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Zambezi River Barging
• Target Date for Environmental Approval – The “Tafica” (18m) – Riversdale’s primary work barge
Jun 2011
The “Benga” (10m) – Multi-Purpose vessel for river and coastal studies
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Technical River Studies
Well Progressed
• Full bathymetric survey (river and ocean
depth profile) from mine to ship
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River Fleet Studies
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Riversdale Barging Studies: Work Timeline(a)
2010 2011 2012 2013 2014 2015
H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Environment & Social Impact Assessment (ESIA)
Specialist Studies (Flora and Fauna) 90% Complete – Due October 2010
Convoy Optimisation
Metocean Studies (Wind & Wave Data @ Chinde) October 2010 – October 2011+
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A Case Study: The Bowen Basin
A template for the Moatize Basin
The Bowen Basin, QLD Australia The World’s Premium Coking Coal Basin
Abbot Point
Then:
Port Facility • Established through the 1960’s & 70’s by
Mine
Deposit Utah Development Corp.
Railroad
• 7 mines developed in succession across a
DBCT decade
Hay Point
• Allowed for the development of large scale
infrastructure
Now
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A Case Study: The Bowen Basin
A template for the Moatize Basin
The Moatize Basin, Mozambique The World’s Next Major Coking Coal Basin
Port Facility
Barge / Now
Transhipment
Deposit • Poised to become the world’s newest coking
Railroad Nacala coal export basin
The Future
Beira
• 55Mt of exports by 2025*
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An Alternative, Independent Supplier of
Coking Coal
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Competent Person Report
Benga Coal Resources
The Coal Resources quoted in this announcement are based on the Competent Person Report, Coal Resources, Benga Coal Project as at 18th May 2010, compiled by Mr Tri Yoso, who is
a Member of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coal
geologist in the resources industry involving exploration and evaluation assignments at operating coal mines and coal exploration areas in a number of 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” (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. Tri Yoso consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
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