Xolani Mkhwanazi & Manie Dreyer 28 January 2009 BHP Billiton Energy Coal SA Overview Presentation to Portfolio committee, Cape Town Xolani Mkhwanazi & Manie Dreyer 28 January 2009 1
BECSA position in South Africa Manie Dreyer, President, Energy Coal South Africa Ltd (BECSA), January 28 2010
BECSA – the figures Production (2009/2010 FY estimate) Total Waste moved to expose coal (opencast) 120 M BCM’s/a Total Run of Mine Coal (O/C & U/G) 48.6 Mtpa Total Domestic Saleable 23.5 Mtpa Total Export Saleable 12.1 Mtpa Employees ~5,500 Reserves 1.05 Bt Mine Life at current production rates ±30 years* Additional Resources 2.0 Bt Additional Prospecting right areas 1.5 Bt * Indicative only, includes undeveloped tenements Manie Dreyer, President, Energy Coal South Africa Ltd (BECSA), January 28 2010
BECSA supply to Eskom Three major contracts currently in place Duvha (fixed price, guaranteed volume) – 10 Mtpa through 2034 Kendal (cost plus colliery) – ±12.5 – 13.5 Mtpa through 2032, however volumes drop off significantly towards the end of the life of the contract/mine with tremendous cost pressure Majuba (legacy contract) – will complete contract by mid 2010 In 2009 supplies were in line with Coal Supply Agreements; Majuba 2.2 Mt Duvha 9.5 Mt – BECSA agreed plan with Eskom to supply shortfall of 0.5Mt in Q1 2010 Kendal 12.4Mt In 2008 - Emergency supplies to Majuba during the “dark” days Ex Douglas 400 Kt export ROM sacrifice Ex Albion 250 Kt Ex Rietspruit and against relaxed quality specifications, BECSA was able to assist and supplied additional volume 800Kt Facilitated Eskom direct buy-ins through Khutala infrastructure (+/-700 Kt) Manie Dreyer, President, Energy Coal South Africa Ltd (BECSA), January 28 2010
BECSA - Key Focus Areas An overriding commitment to health, safety and the environmental responsibility and sustainable development. Having relationships which focus on the creation of value for all parties. Projects being developed: Klipspruit project – 99% complete, $450 million DMO Project – 84% complete, $950 million Small capital expenditure & sustaining Capex over the last three years $220 million Total capital expenditure in BECSA over the last three years is $1.4 billion or R 10.9 billion Manie Dreyer, President, Energy Coal South Africa Ltd (BECSA), January 28 2010 5
Manie Dreyer, President, Energy Coal South Africa Ltd (BECSA), January 28 2010