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Steve Thomas – Riversdale Mining Limited

South African Anthracite Exports:The Way Forward

Coaltrans - World Coke & Anthracite Conference Krakow Poland

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Ri d l Mi i S th Af i A th it E tRiversdale Mining – South African Anthracite Exports:The Way Forward

Steve Thomas, CFO Riversdale Holdings (Pty) Ltd Coaltrans – World Coke & Anthracite Conference Krakow Poland March

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.

1Coaltrans - World Coke & Anthracite Conference Krakow Poland

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World Coke & Anthracite Summit

The South African Anthracite Market:a. Overview of the market size and product distribution

Hi tHistory

Current performance

b. Producer location

c. Port facilities available for export

d. Challenges facing producers with exporting

e. Typical qualitiese. Typical qualities

Products

Unsized

Si dSized

f. Contact details

Coaltrans - World Coke & Anthracite Conference Krakow Poland 2

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SOUTH AFRICA –ANTHRACITE SALES TONNES PER CALENDAR YEAR

5,000,000

5,500,000

(DME DATA; EXCEPT FOR 2007 AND 2008: CAMR)

Total Sales Inland Sales Export Sales

4,000,000

4,500,000

2,500,000

3,000,000

3,500,000

Tonn

es

1,500,000

2,000,000

0

500,000

1,000,000

01980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year


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SOUTH AFRICAN ANTHRACITE SALES - MARKETS

1, 201, 624mt43%

1,058,310mt38%

Local Sales (S.A. Markets)

Exports (Sized)

509, 399mt18%

Exports (Unsized)

2008 CALENDAR YEAR (METRIC TONNES)

Local Sales: 1, 201, 624mt

T l S l 2 769 333

Exports (Sized): 509, 399mtExports (Unsized): 1, 058, 310mt

Total Sales: 2, 769, 333mtFigures courtesy of Resource - net (Andrew Jones)

Exports Total: 1, 567, 709mt


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SOUTH AFRICAN ANTHRACITE PRODUCER LOCATIONS

Producers


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PORT FACILITES RICHARDS BAY COAL TERMINAL

World’s largest single coal export terminalWorld s largest single coal export terminalCurrent design capacity of 76 million tonsCoal railed from approximately 49 minesMines are approximately 650 to 850 km from Richards Bay200 truck trains carrying approximately 16 500 mt coal200 truck trains carrying approximately 16,500 mt coalPhase 5 to be completed mid 2009, will increase the design capacity 91 million tons.

DRY BULK COAL TERMINALAlso in Richards Bays opposite RBCTAlso in Richards Bays, opposite RBCTGeneral Cargo Terminal, including coal and anthraciteOne alternative to the RBCT for exporters who do not have RBCT entitlementFor un‐sized products onlyFar more expensive than RBCT but does provide an alternativeFar more expensive than RBCT, but does provide an alternativeUsed successfully by some Junior Producers.

BULK CONNECTIONS TERMINAL (BCT) DURBAN PORTPrivately owned terminal – Bidvest GroupPrivately owned terminal – Bidvest GroupOnly soft loading facility in South AfricaGeared primarily to load “size sensitive” coal & anthracite2008 – Total throughput of 1, 989, 075 metric tons2008 – Total anthracite exports of 394 579 metric tons2008 – Total anthracite exports of 394, 579 metric tonsMax draft of 10.3 metres


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DUFF 1 10

TYPICAL PRODUCTS AND MARKETING

LARGE NUTS 45 X 70 DUFF 1 x 10

PEAS 8 X 25

NUTS 20 X 45 MIDDLINGS 0 X 10

PRODUCTS


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SOUTH AFRICAN ANTHRACITE PRODUCERS –TYPICAL QUALITIES

BASIC

ANTHRACITE PRODUCERS – QUALITIES – EXPORT UNSIZED

ELEMENTS No 1 No 2 No 3 No 4

ASH (%) < 17 < 18 < 15,5 < 16

VOLATILES (%) 6‐9 7‐8 5‐6 7‐8( )

FIXED CARBON (%) > 72 > 73 > 80 >75

SULPHUR (%) < 1,80 < 0,85 < 1,28 < 0,9


* DRY BASIS

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SOUTH AFRICAN ANTHRACITE PRODUCERS –TYPICAL QUALITIES

BASIC

ANTHRACITE PRODUCERS – QUALITIES – EXPORT SIZED

ELEMENTS No 1 No 2 No 3 No 4

( )ASH (%) < 14 < 17 < 10,9 < 15

VOLATILES (%) 6‐9 7‐8 5‐6 7‐8

FIXED CARBON (%) > 77 > 75 > 84 >76

SULPHUR (%) 1,55 – 2,00 < 0,85 < 1,1 < 0,85


* DRY BASIS

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WHY BUY SOUTH AFRICAN ANTHRACITE?

Long established reputable producers

lQuality consistency

Limited product contamination

(especially when compared to some other producing countries)( p y p p g )

World class soft loading facility in the BCT at Durban

Can load all year round, no seasonal interferences

and the most compelling reason is …

Very pleasant people to deal with, who always honour contracts.


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CONTACT DETAILS

Riversdale Holdings

Steve Thomas Email: [email protected] Cell: +27 82 451 6980

Zululand Anthracite Colliery (ZAC)

Andrew Rayment Email: andrew@icacoal co za Cell: +27 82 499 4074Andrew Rayment Email: [email protected] Cell: +27 82 499 4074

Somkhele

Henrique Pinheiro Email: [email protected] Cell: +27 82 892 9331

Springlake Colliery

Henrique Pinheiro Email: [email protected] Cell: +27 82 892 9331

Vaalkrantz Colliery (LeeuwMining)Vaalkrantz Colliery (LeeuwMining)

John Beck Email: [email protected] Cell: +27 82 323 0000


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World Coke & Anthracite Summit

Riversdale Mining Limited:a. Company profileb Statistics Zululand Anthracite Collieryb. Statistics Zululand Anthracite Collieryc. Mozambique

StatisticsNext major coking coal basinj gLocality map - Area and picturesKey elements to successQualitiesFreight competitivenessTrack recordCountries growth


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RIVERSDALE MINING LIMITED - CORPORATE PROFILE

15.3%

2.3%

Market Cap@ $3.04 per share

A$572.7 million

40.3%Shares 188.4 million

Options 20.1 million

24.4%Net Cash ~ A$ 325 million

As of 10/Mar/2009

3.0%12.7%

2.0%

Australian Institutions

UK Institutions

Passport Capital 15.62%

Talbot Group 18 87%North American Institutions

Other Institutional

Corporates

Related Parties (predominantly management)

Talbot Group 18.87%

Tata Steel Ltd 10%

~ 60% institutional ownership


Private InvestorsSource: Thomson Reuters

As of 30/Jan/2009

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ZULULAND ANTHRACITE COLLIERY (ZAC) – A SNAPSHOT

P d tiProduction850-900 kt ROM

650-700 kt saleable

Reserves / Resources

MINERAL RESOURCES & RESERVES – ZAC

Resource Category

Gross in Situ Tonnes (Mt)

Reserve Category

ROM Tonnes (Mt)

Measured indicatedI f d

11.218.7

Proved Probable

5.310.2

17 yr LOM

Significant expansion potential (Ngwabe block)

Anthracite market

Inferred 23.7

Total 53.6 Total 15.5

Demand driven by the metal refining industry

Relatively inelastic – no price-competitive substitutes

Constrained supply from major producers (Vietnam, Russia)

ZAC infrastructureZAC infrastructureExcellent infrastructure

US$43m expansion development

Spare capacity

ZAC locationSituated along the Richards Bay coal line (RBCT export port)

Close to major markets (chrome, electrode paste & mineral sands)


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MOZAMBIQUE: A WORLD CLASS COKING COAL OPPORTUNITY

2.1 Billion tonne Coal Resource

A$235 M capital raising completed

TATA A$100 M S i j i

Achievements

TATA: A$100 M + Strategic joint venture partner

Acquired tenements (>53,000 ha) in August 2007

Quality: premium hard coking coal and thermal coal

20Mt/a coal Mining Study lodged with government

Rail, Port & Power MOU’s

Appointment of International Advisory Board

Huge exploration potential >250,000 ha

Prime position in the Moatize basin

Potential Major multi pit operation

Sea freight advantages into India, Brazil & Europe


Strong financials: > AUD 340M cash available to develop share of project

TATA Steel JV to support future development & regional growth

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MOATIZE: THE NEXT MAJOR COKING COAL BASIN

The largest undeveloped coking coal region in the world?RIV: largest holding in the Moatize basinRIV: largest holding in the Moatize basin

Benga: 2.1 Billion tonne Coal Resource

1.0 Bt Measured & Indicated

1.1 Bt Inferred

Drilling on 21 additional licenses throughout 2009Drilling on 21 additional licenses throughout 2009

Premium hard coking and thermal coalsCompetitive freight rates into high growth markets in India and BrazilIndia and Brazil

Potential to access European coking coal market

The experience to maximise the opportunitySouthern African experience: ZAC mine RSASouthern African experience: ZAC mine, RSA

Tata Steel JV partner


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RIVERSDALE CAMP NEAR TETE

Riversdale Camp near Tete

Aerial view of Tete


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COAL SAMPLES IN MOZAMBIQUE

Coal Core, April 2008

Large Diameter Coal Core


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COAL OUTCROP IN MOZAMBIQUE


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BENGA EXPLORATION SITE


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THE KEY ELEMENTS FOR SUCCESS

2 1 Billi t I f d R (JORC)2.1 Billion tonne Inferred Resource (JORC)

1 Billion tonnes of Measured and Indicated Resources

Likely to be amenable to open cut mining

Quality indicative of hard coking and thermal coal products

Rail development to be completed by 2H 2009Rail MOU for 6 Mt signed

Consortium developing rail (CFM, Rites and Ircon)

Development of the Beira portPort MOU signed

Government has announced $500 M plans for development

Small existing capacity

Power station projectGovernment approval to start feasibility study

500 MW to be commissioned in 2012

Building to 2000 MW by 2015 in 500 MW units

Joint venture with TATA Steel

21

2010 hard coking coal production and export

Next target: One of the worlds major coking coal producersCoaltrans - World Coke & Anthracite Conference Krakow Poland

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BENGA COAL QUALITIES

Benga Hard Coking Coal # Benga Export Thermal #

Volatile Matter (%, ad) 21.8

Ro Max 1.4

CV GAD (kcal, kg) 6390

Ash (%, ad) * 22

CSN (swell index) 8.5

Vitrinite % 81

Moisture (%, ad) 0.8

Volatile Matter (%, ad) 20

Ash (%, ad) * 10.5

Gieseler max fluidity 2.4 (log)

HGI 80

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


Products based on target ash which may be subject to change based on economic/quality optimisationFor

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Benga HCC – uniquely positioned qualities

Benga hard coking coals


Schapiro & Gray ASTM Stability

prediction contours

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MOZAMBIQUE: FREIGHT A GROWING COMPETITIVE ADVANTAGE

Moatize coking coal will enjoy a competitive advantage into 46% of seaborne trade of hard coking coal

Supply of seaborne hard coking coal

(136 millions tonnes p.a.)

Competitive advantage into 46% of seaborne trade of hard coking coal

Elk ValleyMet. Coal - Yearly Demand Growth

40

Mt

India & Brazil to account for 49% of demand growth*

46%Japan

EUBHPB /

Mitsubishi

Elk Valley

USA

Other Canada

33%16%

14%25

30

35

40

Brazil

India

India

Taiwan

South Korea

Other

Brazil

Anglo / MitsuiPoland, China,

Russia, NZ

USA

8%7%6%7%

14%

7%5

10

15

20 China

Rest of World

TaiwanChinaOther

Europe

Australia

Canada

USA

XstrataRio Tinto

Other Aus0

2008-2011

* Demand growth of seaborne hard coking coal

24

Source: Barlow Jonker, McCloskey and AME

USAOther

coking coal


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MOZAMBIQUE: A TRACK RECORD OF SUCCESSFUL RESOURCE DEVELOPMENT

Mozal – Aluminium Smelter

506 kt pa aluminium smelter

Established in 1998 by BHP Billiton, Mitsubishi & IDCEstablished in 1998 by BHP Billiton, Mitsubishi & IDC

US$ 2 B investment

Completed 13 months early and US$ 295 M under budget

Sasol – Gas Pipeline & Exploration

120 million GJ pa pipeline

865 km pipeline completed in 2004

US$ 1.2 B investment

Two producing gas fields and active exploration

Moma – Titanium sands mine (Kenmare)

700 kt pa ilmenite project, developed by Kenmare

US$ 500 M investment

25

Entered production in 2007


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MOZAMBIQUE: A COUNTRY EXPERIENCING STRONG GROWTH

Over 8% real GDP average growth over the last decade1

Consistently higher than Africa & equivalent to emerging economies

Real GDP Growth

6

7

8

9%

y g q g g

Mega project sectors of Aluminium, Gas, Electricity and Mining

driving growth

Industry and manufacturing make up 45% of GDP (Agriculture 22%)1

2

3

4

5

MozambiqueEmerging economiesAfricaWorld

Tight monetary policies have helped to ease inflation

Mozambique’s growth fuelled by strong investment

02002 2003 2004 2005 2006 2007

US$ 7.5 Bn in projects approved in 2007

Consortium investment in Sena rail line (US$370 M) and Beira port

US$ 1.8 bn p.a. in development assistance invested in Mozambique in

05 & 06 and projected to remain at this level until 2010 at least05 & 06 and projected to remain at this level until 2010 at least

26

1 IMF World Economic Outlook, 2006


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Benga Coal Resources

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 15thAugust 2008, compiled under the supervision of Mr. Kerry Whitby, who is a Fellow of the Australasian Institute of Mining andMetallurgy and Managing Director of McElroy Bryan Geological Services Pty Ltd (MBGS). Kerry Whitby has more than 30 yearsexperience as a geologist in the resources industry and more than 20 years experience in the estimation of coal resources for coalprojects and coal mines both in Australia and overseas. This expertise has been acquired principally through exploration andprojects and coal mines both in Australia and overseas. This expertise has been acquired principally through exploration andevaluation assignments at operating coal mines and coal exploration areas in Australia’s major coal basins and in other coal basinsthroughout the world. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 editionof the JORC Code. The Coal Resource estimate for the Benga Licence, (881L) Mozambique presented in this report has been carriedout in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (September2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute ofGeoscientists and Minerals Council of AustraliaGeoscientists 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 AnthraciteColliery (ZAC) is based on information compiled by J Liebenberg who is a member of South African Council for Natural ScientificColliery (ZAC) is based on information compiled by J Liebenberg, who is a member of South African Council for Natural ScientificProfessions. Mr Liebenberg has sufficient experience which is relevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualify as a Competent Person under the meaning of the JORC Code. MrLiebenberg, an employee of Zululand Anthracite Colliery (Pty) Limited has given his consent to the Public Reporting of thesestatements 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 iny y p p g q y p jAustralia and overseas. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 editionof the JORC Code. Andrew Meyers consents to the inclusion in this announcement of the matters based on his information in theform and context in which it appears.


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Thank you

Any Questions?y Q


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for personal use only - asx · 2009-03-17 · ¾general cargo terminal, including coal and...

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