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
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