NERSA

PRESENTATION

ESTABLISHMENT OF A NEW

10.7 MW POWER STATION

PRESENTERS

James Muchongwe

Vicus Esterhuizen

DATE: 7 October 2010

POWER ALT PROJECT10.7 MW POWER STATION

Project Developer for 30.7 MW– ADC (Pty) Ltd.

1ST Phase – 10.7 MW

2ND Phase – 20 MW

Client– Thos Begbie Holdings (Pty) Ltd

Site– Middelburg, Mpumalanga, South Africa

Contract Basis– BOO 12 Year Take Or Pay

Technology– GE Jenbacher Reciprocating Engines

PROJECT STRUCTURE

LOAN CAPITAL

79% DEBT

SHAREHOLDERS

21% EQUITY

POWER ALTORIGINAL

EQUIPMENT SUPPLIER

EQUIPMENT

SUPPLYPROJECT

DEVELOPER

PROJECT

MANAGEMENT

SERVICES

OPERATIONS

CONTRACT

MAINTENANCE

CONTRACT

EPC

CONTRACT

LUBRICATION

CONTRACT

LEGAL REVIEW

CONTRACT

GEOTECH&

SURVEY

CONTRACTS

ELECTRICITY SUPPLY

CONTRACT

LONG-TERM CONTRACTS

EXECUTION CONTRACTS

SHAREHOLDING STRUCTURE

ADC: 10%

Investec: 20%

Astra: 19%

Jubilee: 51%

– Jubilee has an option to acquire Astra’s total

shareholding.

POWER ALT PROJECT TECHNICAL FEASIBILITIES

Assessment of Client demand and technical interface

requirements

– Measurements of harmonic distortion done and recorded

– Measurements of electrical currents done and recorded

Technology matching and decision

– Matched specific demand requirements with Technology

– Technology Provider supply all spare parts and do all

major services and overhauls over 12 years

Control philosophy to operate in parallel with Municipal grid

done in conformance with Grid Code

POWER ALT PROJECTLONG TERM CONTRACTS

Gas Supply– Sasol : 18 year contract

– Tolling arrangement whereby Thos Begbie buys gas from Sasol and supply to Power Alt (Gas take off point on Thos Begbie site)

Maintenance, Overhauls and Spare Parts Supply– GE Jenbacher: 12 year contract

Oil Supply– Engen: As required

Operations and Business Administration– ADC: 12 year contract

POWER ALT PROJECTENVIRONMENTAL IMPACT

ASSESSMENT

Thos Begbie site– Power Plant on Thos Begbie site

– Industrial zone privately owned

Emissions – In full conformance to European Standards

No public/government assets– No overhead systems

– No roads

– No underground systems

EIA – Approval in Place from Dept of Environmental Affairs

POWER ALT PROJECTTHOS BEGBIE STATUS

6 MW available from Municipality– Weekly power shedding

– Cannot operate all furnaces at same time

– Desperately needs additional power

Expansion for Ferromanganese– 1st 2.5MVA arc furnace installed

– Converter bought and on site

– Other furnaces on order

– Jubilee expansion plans envisaged

THANK YOU