1. Pike River Coal Mine ACARP Presentations August 2008 Peter Whittall – General Manager, Mines PIKE RIVER COAL

2. Project Overview High value hard coking coal (HCC) – used for steelmaking NZ $240m project – fully funded 70% of coal sold for first 3 years – 55% for life of mine 1 million tonnes for 18 + years HCC prices strong at US $300 per tonne Roadway development by roadheader and CM; Extraction by Hydraulic Monitoring

3. PIKE RIVER COAL Pike River Mine Location Map PIKE RIVER COAL Greymouth Wellington Lyttelton

4. PIKE RIVER COAL Cross Section of the Coal Seams Paparoa Seam Brunner Seam

5. PIKE RIVER COAL Tunnel Under Construction Tunnel currently at Hawera Fault at 2,164m Total Tunnel length 2,300m to coal seam Portal September 2006 Tunnel Face Construction

6. PIKE RIVER COAL Mine Plan Seam thickness: 3 to 13m but typically 4 – 9m; Roadway development by Continuous Miner and Roadheader Coal extraction by Hydro Monitor system (9000 litres/minute) All coal haulage by water: In mine by open flume; pit bottom to CPP by 10.5km 11” pipeline (4000 litres/minute per machine) In-seam drilling to define geological structure and limits Seam-, strata- and fault-originating mine water Gas average 4m 3 /t across lease; up to 10m 3 /t at depth; no outburst Mining Parameters

7. PIKE RIVER COAL Pit Bottom in Stone LHS: Fluming water; electrical RHS: Coal slurry bins; crushers; slurry pumps 481m of stone excavation Max width: 8m Max Height: 11m Concrete: 600m 3 of 50MPa; 170m 3 of 10MPa

8. PIKE RIVER COAL Pit Bottom in Stone LHS: Fluming water; electrical RHS: Coal slurry bins; crushers; slurry pumps 481m of stone excavation Max width: 8m Max Height: 11m Concrete: 600m 3 of 50MPa; 170m 3 of 10MPa

9. PIKE RIVER COAL Seam Cross Section Immediate Roof: Shales and coal rider seam Upper Roof: Massive sandstone +100MPa Floor: Interbedded shales and mudstones Seam coring for Sulphur analysis Seam dips 5 o – 30 o

10. PIKE RIVER COAL Pit Bottom in Coal 4m dia. X 108m shaft Main Fans Pike River Tunnel Water storage roads Raw Coal Ponds

11. PIKE RIVER COAL Hydro Productivity (Excluding continuous miner and roadheader production) 9,000 litres water/min 3.6 t/min coal cutting rate 40% Fluming density 61.5% efficiency Shift productivity = 1,062t Daily productivity = 3,186t Annual productivity = 1.1Mt Roadway and Extraction Productivity Continuous Miner v Roadheader Productivity

12. PIKE RIVER COAL Roadheader (Waratah)

13. PIKE RIVER COAL Roadheader (Waratah)

14. PIKE RIVER COAL Roadheader (Waratah)

15. PIKE RIVER COAL Roadheader (Waratah) Base Machine: Wirth T1.14 Cutting Dimension: 6.6m wide x 4.4m high Shovel: 4m – 4.9m wide Gradients: Up to +/- 18 o Custom deployment frame Floor pressure: 0.15MPa Total Power: 272 KW

16. PIKE RIVER COAL Continuous Miner

17. PIKE RIVER COAL Continuous Miner Base Machine: Wirth H4.40 Miner Bolter Cutting Height: 2.5m – 4.0m Machine/Cutting Width: 3.5m Tracks: 560mm width Floor Pressure: 0.2MPa Drill Rigs: ARO S2500 (2.4m) Rib Rigs: ARO S2500 (1.8m) Coal Sizer fitted Cross Levelling via tracks

18. PIKE RIVER COAL Continuous Miner

19. PIKE RIVER COAL Development Considerations No recent history in Brunner Seam Multinational experience, expectations, norms Coal roof, coal floor, 5 – 30 o seam grades Setting challenging but realistic KPI values Data gathering and analysis New mining equipment to site (and market) Strata control system Coal clearance by water – no conveyors Hot seat change out? – 6.5km to amenities; 1.2km to portal; 2.3km to pit bottom

20. PIKE RIVER COAL Mining Extraction by Hydraulic Monitor Parameters for success: –Strong roof and floor –Strong but fractured coal –Moderate to thick seam (3 - 13 metres) –Moderately dipping seam (5° - 30°) –Good supply of water (Pike has rainfall of over 6m/year in mine vicinity)

21. PIKE RIVER COAL Sub-Rise Extraction

22. PIKE RIVER COAL Sub-Level Extraction

23. PIKE RIVER COAL Pike River Fly Over

24. PIKE RIVER COAL Production Timetable Forecast to meet coal seam in late August 2008

25. PIKE RIVER COAL Project Summary NZ’s second largest coal export mine when at 1 Mtpa Premium quality hard coking coal at 1% ash Tunnel at 2,164m, through the Hawera Fault with coal in late September 2008 Most surface infrastructure complete with train loadout commenced Major local employer with 65 full time staff now, 18 more due to commence, building to 150 at full production in mid 2009 Transport system solution in place from coal face to port with all contracts let and underway $30 - $40M in local spend annually