South Gobi and Indomet Coal Asset Strategic Overview slide image

South Gobi and Indomet Coal Asset Strategic Overview

AUSTRALIA BLAIR ATHOL THERMAL COAL MINE (BA) ► Final stages of acquiring mothballed Blair Athol Mine^ in Australia for $1 which includes: World class mine infrastructure capable of supporting 12Mtpa including workshops, stores and offices Dragline and all mining plant and equipment required to deliver mining plans ► Rio Tinto providing A$80m cash for reclamation and Gov. of Qld confirmed this liability in Nov 2015 ► Mine plans to operate at 2Mtpa rate for 7 years# with mining operations recommencing in June 2017 and first coal sales in July 2017: Target product specification (ad) of 12.5% ash, 5,350kcal NAR and 0.31% TS ▸ 44Mt JORC 2012 Resource# providing potential for additional production from BA Positioned well on cost curve set to deliver strong margins ► Re-commissioning and working capital costs of BA fully funded from US$12m funding facility plus contractor working capital arrangements of A$11.6m ▸ Organic expansion potential to combine BA with neighbouring properties to give 30+ year life ^ Note Blair Athol Mine acquisition is subject to relevant Queensland Government approvals # Note no change to this information from previous disclosures and see competent person TERRACOM 80
View entire presentation