for personal use only - asxthe information in this report that relates to mineral resources at the...
TRANSCRIPT
-
Coal Conference Feb07
Northern Energy and the Yamala Coal Project
Presentation to Bowen Basin Coal Conference
Keith Barker
For
per
sona
l use
onl
y
-
PORTFOLIO Quality, Diverse Portfolio
PROJECT COAL STATUS Elimatta Thermal /
Coaloil? 285Mt
Indicated & Inferred Resource + 2040Mt Target
Yamala Coal Joint Venture
Low Ash Thermal
190Mt Inferred resource
+Target 260Mt (92%/8% JV with Sojitz)
Maryborough Hard Coking
Hard Coking coal project
Ashford Hard Coking
18Mt Inferred Resource (50% JV)
Tenements: North NSW & QLD
For
per
sona
l use
onl
y
-
Capital Raising History & Structure
DATE ITEM DETAILS Feb 2005 IPO (raised $4m) 53.6M @
20c Oct 2005 Placement 4.9M @
45c May 2007 Placement 8.77M @
68c Oct 2007 Market Cap.
67.25M shares @1.65c
$111M
Cash (approx.) $6M
Fraters (Marley Group) 10%
Samuel Capital 7.5%
Belgravia Group 7% AMP 4.3%
Major Shareholders
Options on issue 4million @25/30c expire Feb 08For
per
sona
l use
onl
y
-
Steady Exploration ProgressF
or p
erso
nal u
se o
nly
-
YAMALA COAL JOINT VENTURE
§ EPC 927 between Emerald and Comet, 96 sub blocks
§ April 05 EPC granted, collation of historical data from previous drilling by other parties –DME, Ensham, Ingwe, Santos
§ August 06 Exploration Target of 410460Mt established
§ November 06 MOU with Sojitz § February 07 Yamala Coal JV § March 07 exploration commences § June 07 – Inferred Resource 190Mt § October 07 – stage 2 explorationF
or p
erso
nal u
se o
nly
-
§ Aries ll seam in Late Permian Rangal Coal Measures 1.82m thickness in target area § 190Mt Inferred Resource § Additional Exploration Target 1 220 260Mt to 300m depth § Located on existing rail infrastructure § Good quality low ash thermal coal
» Raw Ash 11% » Raw Energy 27.5MJ/kg gad » Volatiles 2829% » Sulphur 0.4%
§ Potential for SS coking product from bottom ply to be examined in further exploration programmes
EMERALD Yamala Coal Joint Venture Initial Resource
11Note that coal quantity and quality within the exploration target areas is conceptual only as there has been insufficient exploration to define any coal resources. It is uncertain whether future exploration in any of these exploration target areas will result in quantification of coal resources
For
per
sona
l use
onl
y
-
YAMALA COAL JOINT VENTURE STAGE 2 CONCEPTS
§ Focus on upgrading resource close to subcrop and infrastructure as offering most attractive initial development potential;
§ Drilling, seismic, coal quality geotechnical and groundwater programme to commence shortly
§ Conceptual / prefeasibility engineering and development studies to follow;
§ Current concept » Open Cut at sub crop » Punch bord and pillar / welsh bord » Full extraction longwall / bord and
pillar
For
per
sona
l use
onl
y
-
YAMALA COAL JOINT VENTURE STAGE 2 CONCEPTS
§ Stage 2 focus to increase resource definition rather than add tonnes
§ 100Mt target area § Provide input to initial studies § Then move to Stage 3 – feasibility
study. § Stage 2 complete around 3 rd qtr 08,
Stage 3 by end 09 § Timetable fits with availability of
infrastructure capacity 2012 (port) § Sequencing of mining concepts (series
or parallel) will be determined following development studies and availability of infrastructure.
§ Current concept for 4Mtpa operationFor
per
sona
l use
onl
y
-
YAMALA COAL JOINT VENTURE SOJITZ FARM IN
Sojitz Corporation– § substantial Japanese trading
house § Investment in
» Coal & Allied » Coppabella » Jellinbah » Minerva » Moolarben » Lake Vermont » Others inc. Indonesia
§ Significant trading position in global coal
§ JV formed in March 07 covers EPC927
§ 3 STAGE $5.3M Farm in Agreement
§ SOJITZ to fund $5.3M to earn 30% JV interest
§ On completion Sojitz will have an option to acquire add’l 19% for $6.65M.
§ Sojitz will have marketing rights for Yamala JV
§ NEC 92% / SOJITZ 8% following Stage 1
For
per
sona
l use
onl
y
-
Key Issues for Yamala
§ Majority of resource will be extracted by underground methods
§ Initial UG mining areas planned to be shallow (50200m) with direct highwall entry
§ In situ coal quality offers potential for unwashed product, particularly in conjunction with open cut mining
§ Concepts offer potential for low capital start up
§ Roof, floor & structure characteristics will determine mining method, layout and speed of production build up.
§ Developments in continuous haulage and roof support will be of interest.F
or p
erso
nal u
se o
nly
-
Market outlook
Australian Exports
0
100
200
300
400
500
600
700
800
900
1000
1980 2006 2010 2030 2030alt
Million tonn
es
6.7%pa growth
Source IEA Abare 06, NEC
why not 6.7%?
2.5%p a
§ Internationally traded coal has increased market share of coal supply
§ Australia has increased its share of this trade
§ There remains an enormous market to be won
§ Increased resources are required to both maintain and capture market share
§ Yamala JV and Northern Energy objective to be part of this growth
Historical and Forecast Global Coal Trade
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1980 2006 2010 2030
Millions Ton
nes
Australia Other Exports Domestic Australian Market Potential
Source IEA, ABARE,NEC
For
per
sona
l use
onl
y
-
Depletion – the explorers best friend
ØSince 1980 Australia has mined >5 Billion tonnes coal ØOver the next twenty years at CURRENT rates we will mine >8billion tonnes ØGlobally this only represents 18 months consumption ØGlobal coal consumption to continue to grow ØThere is an ongoing need for delineation and development of resources and reserves just to maintain current production
P R O G R E S S
For
per
sona
l use
onl
y
-
NEC – summing up
§ Substantial resource base now established
§ Coal focussed group § Multi project exposure § Yamala is a key part of the
portfolio § NEC and Yamala Funded to
progress to next stage – decision to mine
§ Links established with customer groups
§ Objective to add value through development stage
§ To introduce strategic partners at appropriate time
§ Looking to make transition to producer status
For
per
sona
l use
onl
y
-
CONTACT
COMPANY: Northern Energy Corporation LtdASX CODE: NECCONTACT: Keith Barker, Managing DirectorPHONE: 07 3303 0695 (Brisbane)EMAIL: [email protected]: www.northernenergy.com.auQualifications and StatementThe information in this report that relates to Mineral Resources at the Yamala, Elimatta and Ashford projects is based on information compiled by (Norman) Andrew McLaughlin, who is a Member of the Australasian Institute of Mining and Metallurgy. Andrew McLaughlin is a full time employee of Northern Energy Corporation Limited. Andrew McLaughlin 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’. Andrew McLaughlin consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.
For
per
sona
l use
onl
y
http://www.northernenergy.com.au/
JORC Sign off.pdfCONTACT