Wiggins Island CoalExport Terminal

UBS Coal & Iron Ore Seminar Sydney17 November 2010

2

Contents

3 Stage 1

2 Terminal Configuration

1 Overview

4 Commercial Structure

5 Expansion

3

Overview

• Wiggins Island Coal Export Terminal Pty Limited (“WICET”) owned by a consortium of coal producers

• Industry ownership and funding model

• Stage 1 has an initial contracted capacity of 27Mtpa from eight coal producers

• Fully developed design capacity of 80+Mtpa

• Feasibility of expansion underway supported by over 20 coal producers

Stage Indicative CapacityMtpa

Indicative Capital Costs $M(2009 terms)

Stage 1 30 $1,980

Stage 2 30 $1,700

Stage 3 20+ $1,120

Total 80+

4

Timeline

Event Indicative Timing

Preferred Proponent October 2008

Framework Agreement with State and GPC December 2009

Access Policy agreed May 2010

Stage 1 Owners July 2010

Information Memorandum November 2010

Financial Close April 2011

Construction commencement May 2011

Stage 1 Mechanical Completion Early 2014

5

Coal Basins and Infrastructure

Abbott Point

Dalrymple BayHay Point

Fisherman’sIsland

Wiggins IslandRG TannaBarney Point

Surat Basin

Bowen Basin

Galilee Basin

• Located in Port of Gladstone, 525 km north of Brisbane

• Sheltered port designed to handle Cape-size shipping

• Services coal mines in the Bowen, Maryborough, Surat and potentially, the Galilee Basin

MaryboroughBasin

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Port of Gladstone

• One of the world’s top five coal export ports

• Queensland’s largest multi-commodity port

• Port of Gladstone handles 20% of Australia’s coal exports through two existing terminals owned and operated by Gladstone Ports Corporation:

• RG Tanna: capacity of approx 70Mtpa

• Barney Point: capacity of 8Mtpa (to be closed for coal exports)

Gladstone Ports Corporation: http://www.gpcl.com.au/

The Port of Gladstone Proposed WICET Terminal Site

RG Tanna Coal Terminal

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Terminal Configuration and Location

RG Tanna Coal Terminal

Stage 1

Wiggins Island Coal Export Terminal

Stage 2

Stage 3

Source: Technical Feasibility Study, Aurecon Hatch

City of Gladstone

Stage 1 - Rail Receival

Stage 1 - Stockyard

Stage 1 – Jetty and Shiploader

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Stage 1 Owners /Shippers

Coal Producer Source Mine

Aquila Resources Washpool

Bandanna Energy Arcturus/Springsure

Caledon Coal Cook, Minyango

Cockatoo Coal Baralaba/Wonbindi

Felix Resources Yarrabee

Northern Energy Maryborough

Wesfarmers Curragh

Xstrata Coal Rolleston

Proportion of Metallurgical and Thermal Coal

Metallurgical and Thermal

33%

Thermal59%Metallurgical

8%

Proportion of Brownfield and Greenfield Mines

Existing / Brownfield

Source Mines77%

Greenfield Source Mines23%

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Access Policy ensures fair and equitable access to producers

Take-or-Pay contracts subject to meeting criteria (reserves, rail)

Demand driven expansions

Access

Owner, under long-term leaseTenure

Contracted and managed by WICET

No risk assumed by GPC or StateConstruction

WICET approves annual plans

GPC operates facilities on a day to day basisOperation

Industry Funded Model – WICET role

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% Project usage = % voting rights

Risks aligned with responsibilities

Future owners have certain rights

Alignment

Usage charges recover operating and finance costs at actual cost

Variable tariff - owners share cost risk

Lowest efficient cost objective

Cost Recovery

Underpinned by ToP Agreements

Project Finance principles - ring-fenced, secured but non-recourse

Optimised to lowest cost

Finance

Industry Funded Model – Key Features

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Commercial Structure

Construction Contractors

Leases

Take or Pay Agreements

Funding Agreements

Construction Contracts

ToP Shippers

Affiliated Entities

GPC

Terminal Operating Agreement

Government, Queensland Rail

and GPC

WICET

WICET Holdings Pty Limited

B Class Shareholders

Shareholders Agreement

A Class Shareholders

100% ownership

Subordinated Debt

Preference Equity

Senior Debt

Inter Entity Loan

Funding Agreements

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Take or Pay Structure

• Take or Pay agreements form long term obligations to use the Terminal

• Rolling ten year commitments, extended by one year after each yearLong Term Obligation

• Requirement to pay Terminal Handling Charges against contracted tonnage• Payment for any shortfall in shipped tonnage against contracted tonnage

Contracted Payment

Obligation

Long Term Commitments to Pay for Contracted Tonnage

Ten Years Contracted TonnageTen Years Contracted Tonnage

Ten Years Contracted Tonnage

• ToP Shippers must maintain at least eleven years of Marketable Coal Reserves against contracted tonnage

Reserve Backed

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Terminal Expansion

• Expressions of interest received for expansion for over 200Mtpa from over 20 prospective producers/mines for shipments in 2015/2016

• Co-ordination with infrastructure providers

Event Indicative Timing

Expansion expression of interest process CompleteCompletion of feasibility study Q3 2011Capacity commitments Q4 2011Financial close for first expansion phase Q2 2012Mechanical completion – first phase 2015

Stage Indicative Capacity Mtpa

Indicative Total Capacity Mtpa

Indicative Completion

Stage 1 30 30 2014

Stage 2A 30 60 2015

Stage 2B or 3 20+ 80+

Total 80+

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Disclaimer

This document together with any information communicated by WICET in any presentationrelating to this document is confidential and not for distribution. It has been prepared solely fordiscussion purposes and is not intended to be relied upon as advice by any third party. No part ofthis document nor any information provided by WICET in any presentation may be disclosed to,used by or relied on by any person, or used for any purpose, without WICET's prior writtenconsent.

This document may not be reproduced, distributed or published by any person for any purpose. Nopart of this document may be quoted or referred to in any other document.

Information contained in this document may have been supplied to WICET by third parties. Theinformation contained in this document and any information provided in connection with it has notbeen independently verified. The information is in summary form and does not purport to becomplete.

Neither WICET, any related body corporate of WICET nor any of their directors, officers,employees, consultants or advisors (each a WICET Party) gives any warranty, nor makes anyrepresentations (express or implied) as to the completeness, adequacy, suitability or accuracy ofthe information contained in this document or any information which may be provided inconnection with this document.

Each WICET Party expressly disclaims any and all liability relating to or resulting from the use ofany information in this document and is not responsible or liable for any loss, damage, claim, costor expense suffered or incurred by any recipient arising in connection with this document or anyerrors or omissions in it.