Investor Presentaiton
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Safeguard Mechanism Reform commenced 1 July-23
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Scope 1 emissions from Whitehaven's Narrabri underground mine and
Maules Creek open cut mine are covered by the Safeguard Mechanism
Production variables for the coal sector based on a single production
variable of ROM coal and industry average emissions intensity - it does not
acknowledge distinct differences between open cut and underground
coal mine emissions profiles
Existing facilities baselines calculated based on hybrid model, with
emissions intensities initially weighted toward site-specific emissions intensity
(El) and transitioning to industry average El
Coal sector:
。 will transition to 50% industry average El by FY30 rather than 100% as
required for other industries
o industry average El will be based on a single production variable of
0.0653 CO2-e tonne / ROM coal tonne
。 proportion of industry average to site specific El post FY30 will be
determined as part of Government's scheduled 2026-27 review of the
reformed scheme design
Annual decline rate of 4.9% pa on El in FY24-FY30, subject to concessional
decline rate where cost impact of scheme > 3% revenue for EITE facilities
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Financial impact of scheme on
Whitehaven will be a function of:
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Existence and adoption of available
abatement technologies
Cost of carbon offsets
Any scheme design changes arising from
Government's scheduled 2026/27 review
Emissions intensity profiles of Maules
Creek and Narrabri (ie. Geology)
Where viable technologies are not able to
achieve our carbon reduction obligations,
carbon offsets will be required
Early modelling of potential FY24
costs indicate an impact in the order
of $1/tonne of coal
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