Bill Vatovec
Chief Operating Officer
KEPCO Australia Pty Ltd
DISCLAIMER
- This document is prepared as a presenter’s aid and support – not a stand alone document.
- Best efforts have been taken to ensure the accuracy of information contained, at the time of preparation.
- All information contained here is general in nature.
- Potential investors are cautioned against using the content of this presentation, in isolation, for making investment decisions.
ABOUT KEPCO
- Korea Electric Power Corporation (KEPCO) is South Korea’s largest power generator and distributor, and one of the top ten consumers in the world of coal importing over 80 million tonnes of coal per annum.
- KEPCO is the largest company in Korea in terms of asset value, with an asset base of approximately US$67.6 billion.
- KEPCO has a 51.1% South Korean Government shareholding and approximately 45,000 employees worldwide.
- KEPCO has secured 24 million tons of thermal coal per year by acquiring minority stakes in Cockatoo Coal, the Yancoal Moolarben Coal Complex, and a 100% investment in the Bylong Coal Project.
ABOUT COCKATOO COAL LTD
- Cockatoo Coal Ltd manages the Bylong Coal Project on behalf of KEPCO.
- Cockatoo is a rapidly growing ASX listed Australian coal producer – with plans to further establish itself as a significant, independent coal company in coming years.
REGIONAL COAL MINES
Map: Bylong Coal Project Authorisations
- A287 & A342 were originally granted to Austen & Butta Limited in 1982 and 1984 respectively.
- The Authorisations are located within the Mid-Western Regional Council LGA
- A287 & A342 cover a total of approximately 10,317ha
- KEPCO acquired the Authorisations in Dec 2010
- The Project is approximately 220 km by rail to the Port of Newcastle
EXPLORER OVERVIEW
Since the commencement of the exploration program in May 2011, 430 exploration bore holes have been drilled to identify and measure the coal resource (Approx. 121 Mt).
Environmental Monitoring commenced in 2011 and includes the continued studies throughout the life of the Project including:
- Water – 92 piezometers have been installed across the Project area
- Noise – Seasonal background noise data collection
- Air Quality – Installation of dust deposition gauges and TEOM equipment
- Flora and Fauna – Detailed mapping across the Project area
- Land Resource Management- Soil surveys across the Project area
A Community Liaison Officer is available to stakeholders and the community and will ensure continued engagement throughout the life of the Project through:
- Community newsletters and fact sheets
- Open days and site visits
- Project website – www.bylongproject.com.au
- Sponsorship and Donation Program
- Briefing sessions with community groups and regulatory authorities
OBJECTIVES
The Bylong Project has five major objectives:
- Achieve Zero Harm
- Sustain partnership with stakeholders and contribute to the local community
- Achieve first coal by the first quarter of 2017
- Develop the Bylong coal resources to contribute in meeting KEPCO’s coal self-sufficiency target of 60% by 2020
- Maximise competitive performance within the Bylong project to maximise investment return
PRODUCT DESCRIPTION
- Located in Upper Bylong Valley
- Approximately 95km to Mudgee.
- Approximately 210km to Newcastle.
- Small footprint within the lease.
- Existing rail from north through lease connecting to the Port of Newcastle.
- Mine footprint and infrastructure not visible from main vehicle transport corridor (Bylong Valley Way).
- Create 1,050 full time equivalent jobs (peak construction) and 550 (peak operations).
- Est. $300m annually in regional benefits (includes wages, indirect wages and goods and services).
- Approximately $30-35m annually in Royalties.
- Aim is to ensure no net loss of agriculture productivity in lease area over project life.
A total of 29 years including two years of construction and a 27 year operational period. The Project 
comprises:
- The initial development of two open cut mining areas with associated haul roads and Overburden Emplacement Areas (OEAs), utilising a fleet of excavators and trucks and supporting ancillary equipment
- The two open cut mining areas to be actively mined for approximately 8 years with progressive rehabilitation undertaken during that period
- Construction and operation of a long wall underground coal mine for a 22 year period, commencing in around year 7 of the Project (2021)
- Extraction of approximately 6 Million tonnes per annum (Mtpa) of ROM coal
- The construction and operation of a CHPP with output of approximately 4-5 Mtpa of Product coal.
PROJECT ECONOMICS
Mining is a significant employment generator in the Mid-Western Regional Council area and the project will help further strengthen this key driver of the regional economy.
Job Creation opportunities:
- Peak Construction 1,000 full time equivalent jobs.
- Peak Production 550 full time equivalent jobs.
Regional Benefits:
- $300 million annually (over 29 years) in benefits to the region including wages, indirect wages, and goods and services.
Royalties to the NSW Government:
- $800 million approx. over the life of the mine.
PROJECT OVERVIEW – INFRASTRUCTURE
The construction and operation of facilities to support mining operations including, but not limited to:
- Surface Infrastructure; Coal preparation and train load out. Located away from existing properties and in areas where existing landforms create natural buffers.
- Rail Transport; A rail loop will be constructed and will connect with the Main Northern Railway Line at Muswellbrook to access the Port of Newcastle.Road Infrastructure; Upper Bylong Road will be realigned in the north. An upgrade in the south will ensure landholders can access by Bylong Valley Way in the south.
PLANNING APPROVALS PROCESS
The planning approvals process has commenced with the lodgement of the following documents and requirements:
- Application for a Gateway Certificate (GWC) lodged with Gateway Secretariat on 10 Jan 2014 with the Conditional Gateway Certificate received on 15 April 2014. An EPBC referral has also been lodged with the Federal Department of Environment, with the Project being deemed a controlled action on 13 Mar 2014. Request for Director General Requirements (DGRs) lodged with Department of Planning and Infrastructure on 17 January 2014 and Final DGRs are expected shortly.
- Key DGR considerations are derived under NSW SEPP and will include a Voluntary Planning Agreement with MWRC and Planning and Assessment Commission Review.
- Plan to lodge EIS by Nov 2014 and if Development Approval is granted then a Mining Lease and associated permits will be required to be granted.
- Anticipated mine construction to commence Q1 2016, with anticipated mine production (first coal) Q1 2017.
PROPOSED WORKFORCE
- The Project is committed to sourcing workforce locally where possible and without significantly impacting labour market supply for existing business.
- Local can be defined as centres within a one-hour commute from the Project site (as per Project OHS requirements).
- The Project will invest in local training and up-skilling to secure an increasing number of local hires over the Project life.
WORKFORCE ACCOMMODATION
KEPCO are committed to identifying long-term options to accommodate employees in nearby centres. Further consultation with the community and Mid-Western Regional Council will occur to inform future accommodation decisions.
Key considerations include:
- Available accommodation options in local centres.
- Availability of accommodation in local centres.
- Availability of land in nearby communities for residential development.
- Requirements of Project workforce.
- Housing bubbles.
- Accommodation demand generated by other projects.
AGRICULTURE
- The conceptual mine plan has identified and avoided impacts on alluvial lands and avoided direct impacts on more than 2,000 hectares of mapped BSAL (Biophysical Strategic Agricultural Land).
- KEPCO is aiming to ensure no net loss to agriculture throughout the life of the Project.
- Properties purchased by the Project are leased back to former owners or run by local farmers.
- KEPCO directly own over 250 head of cattle.
- KEPCO are in the process of appointing a farm manager to oversee all agricultural operations.
- An Agricultural Impact Statement is being conducted and will form part of the EIS.
QUESTIONS?
Image: Morning fog blanketing the Bylong Valley