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2ND INTERNATIONAL COAL CONFERENCE

2ND INTERNATIONAL COAL CONFERENCE . SECURING FUTURE NEEDS . SECURING FUTURE NEEDS FOR METALLURGICAL COAL . 2ND INTERNATIONAL COAL CONFERENCE. HOW HAVE INTERNATIONAL MET COAL PRICES BEHAVED?. 2ND INTERNATIONAL COAL CONFERENCE. 2ND INTERNATIONAL COAL CONFERENCE 2011.

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2ND INTERNATIONAL COAL CONFERENCE

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  1. 2ND INTERNATIONAL COAL CONFERENCE SECURING FUTURE NEEDS

  2. SECURING FUTURE NEEDSFORMETALLURGICAL COAL 2ND INTERNATIONAL COAL CONFERENCE

  3. HOW HAVE INTERNATIONAL MET COAL PRICES BEHAVED? 2ND INTERNATIONAL COAL CONFERENCE

  4. 2ND INTERNATIONAL COAL CONFERENCE 2011

  5. 2ND INTERNATIONAL COAL CONFERENCE

  6. 2ND INTERNATIONAL COAL CONFERENCE • Mine owners were frustrated • They started selling off • Some companies bought them • No prizes for guessing these companies!

  7. THUS OLIGOPOLY GOT CREATED 2ND INTERNATIONAL COAL CONFERENCE

  8. 2ND INTERNATIONAL COAL CONFERENCE

  9. 2ND INTERNATIONAL COAL CONFERENCE

  10. 2ND INTERNATIONAL COAL CONFERENCE FORTUNE FAVOURS THE BRAVE

  11. 2ND INTERNATIONAL COAL CONFERENCE Major Mining Blocks in Australia • Bellambi • Blackwater • Broadmeadow • Burton • Collinsville • Crinum • Curragh • German Creek • Goonyella • Gregory • Hail creek • 12. Metropolitan • 13. Kestrel • 14. Metropolitan • 15. Moorabah North • 16. Moura • 17. North Goonyella • 18. Norwick Park • 19. Oaky Creek • 20. Peak Downs • 21. Saraji • 22. Tahmoor 5 11 20 Queensland 15 9 21 17 16 18 4 7 3 6 8 13 10 19 2 • Leases of these coal blocks are distributed among large mining companies like BHP Billiton, Xstrata, Peabody, Anglo American, Rio Tinto, Wesfarmers etc. • Japanese Companies like Mitsubishi, Mitsui, Nippon Steel, Sumitomo, Itochu etc. have significant stakes in these assets. New South Wales 14 22 1 12 Victoria

  12. 2ND INTERNATIONAL COAL CONFERENCE • Opportunity lost by India. • An Union Coal Secretary (in the 1990s) told a coking coal mine producing 5 mtpa was available for US $25 Million • We did not decide & lost it • The same mine now would be earning upwards of US $500 Million dollar in PBT

  13. INDIAN STEEL SECTOR 2ND INTERNATIONAL COAL CONFERENCE

  14. 2ND INTERNATIONAL COAL CONFERENCE 2011 DICE LOADED AGAINST STEEL COMPANIES Higher Capital Intensity Industry having lower Value Addition - Lopsided Situation

  15. PRESCRIPTION FOR STEEL PLANTS • Enter into long term supply contract for coal (15 year plus) • Acquire insurance equity in Coal Mines a la Japanese Companies • Step up on R & D to use non-coking coal and other fuels • Iron Ore Suppliers to reduce Alumina content • More and more PCI

  16. PRESCRIPTION FOR STEEL PLANTS • More efficient use of Met Coal & other fuels • Explore non-traditional Regions – Mozambique, Magnolia, South Africa, Indonesia etc. • Govt. of India to consider sovereign fund for such mineral acquisition • Consolidation/M&A amongst Steel & Mineral Companies likely

  17. SECURING FUTURE NEEDS • There is enough for everybody’s need but not for their Greed • Availability is there – at what prices is the issue • Mineral companies to invest in more efficient mining, better quality minerals at lower cost is the need • Not to be Complacent, when there is plenty!

  18. Thank you

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