Wiggins Island Coal Export Terminal - hpconsult.com.au UBS 20101117.pdf · Wiggins Island Coal...
Transcript of Wiggins Island Coal Export Terminal - hpconsult.com.au UBS 20101117.pdf · Wiggins Island Coal...
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Wiggins Island CoalExport Terminal
UBS Coal & Iron Ore Seminar Sydney17 November 2010
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2
Contents
3 Stage 1
2 Terminal Configuration
1 Overview
4 Commercial Structure
5 Expansion
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Overview
• Wiggins Island Coal Export Terminal Pty Limited (“WICET”) owned by a consortium of coal producers
• Industry ownership and funding model
• Stage 1 has an initial contracted capacity of 27Mtpa from eight coal producers
• Fully developed design capacity of 80+Mtpa
• Feasibility of expansion underway supported by over 20 coal producers
Stage Indicative CapacityMtpa
Indicative Capital Costs $M(2009 terms)
Stage 1 30 $1,980
Stage 2 30 $1,700
Stage 3 20+ $1,120
Total 80+
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Timeline
Event Indicative Timing
Preferred Proponent October 2008
Framework Agreement with State and GPC December 2009
Access Policy agreed May 2010
Stage 1 Owners July 2010
Information Memorandum November 2010
Financial Close April 2011
Construction commencement May 2011
Stage 1 Mechanical Completion Early 2014
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Coal Basins and Infrastructure
Abbott Point
Dalrymple BayHay Point
Fisherman’sIsland
Wiggins IslandRG TannaBarney Point
Surat Basin
Bowen Basin
Galilee Basin
• Located in Port of Gladstone, 525 km north of Brisbane
• Sheltered port designed to handle Cape-size shipping
• Services coal mines in the Bowen, Maryborough, Surat and potentially, the Galilee Basin
MaryboroughBasin
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Port of Gladstone
• One of the world’s top five coal export ports
• Queensland’s largest multi-commodity port
• Port of Gladstone handles 20% of Australia’s coal exports through two existing terminals owned and operated by Gladstone Ports Corporation:
• RG Tanna: capacity of approx 70Mtpa
• Barney Point: capacity of 8Mtpa (to be closed for coal exports)
Gladstone Ports Corporation: http://www.gpcl.com.au/
The Port of Gladstone Proposed WICET Terminal Site
RG Tanna Coal Terminal
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Terminal Configuration and Location
RG Tanna Coal Terminal
Stage 1
Wiggins Island Coal Export Terminal
Stage 2
Stage 3
Source: Technical Feasibility Study, Aurecon Hatch
City of Gladstone
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Stage 1 - Rail Receival
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Stage 1 - Stockyard
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Stage 1 – Jetty and Shiploader
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Stage 1 Owners /Shippers
Coal Producer Source Mine
Aquila Resources Washpool
Bandanna Energy Arcturus/Springsure
Caledon Coal Cook, Minyango
Cockatoo Coal Baralaba/Wonbindi
Felix Resources Yarrabee
Northern Energy Maryborough
Wesfarmers Curragh
Xstrata Coal Rolleston
Proportion of Metallurgical and Thermal Coal
Metallurgical and Thermal
33%
Thermal59%Metallurgical
8%
Proportion of Brownfield and Greenfield Mines
Existing / Brownfield
Source Mines77%
Greenfield Source Mines23%
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Access Policy ensures fair and equitable access to producers
Take-or-Pay contracts subject to meeting criteria (reserves, rail)
Demand driven expansions
Access
Owner, under long-term leaseTenure
Contracted and managed by WICET
No risk assumed by GPC or StateConstruction
WICET approves annual plans
GPC operates facilities on a day to day basisOperation
Industry Funded Model – WICET role
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% Project usage = % voting rights
Risks aligned with responsibilities
Future owners have certain rights
Alignment
Usage charges recover operating and finance costs at actual cost
Variable tariff - owners share cost risk
Lowest efficient cost objective
Cost Recovery
Underpinned by ToP Agreements
Project Finance principles - ring-fenced, secured but non-recourse
Optimised to lowest cost
Finance
Industry Funded Model – Key Features
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Commercial Structure
Construction Contractors
Leases
Take or Pay Agreements
Funding Agreements
Construction Contracts
ToP Shippers
Affiliated Entities
GPC
Terminal Operating Agreement
Government, Queensland Rail
and GPC
WICET
WICET Holdings Pty Limited
B Class Shareholders
Shareholders Agreement
A Class Shareholders
100% ownership
Subordinated Debt
Preference Equity
Senior Debt
Inter Entity Loan
Funding Agreements
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Take or Pay Structure
• Take or Pay agreements form long term obligations to use the Terminal
• Rolling ten year commitments, extended by one year after each yearLong Term Obligation
• Requirement to pay Terminal Handling Charges against contracted tonnage• Payment for any shortfall in shipped tonnage against contracted tonnage
Contracted Payment
Obligation
Long Term Commitments to Pay for Contracted Tonnage
Ten Years Contracted TonnageTen Years Contracted Tonnage
Ten Years Contracted Tonnage
• ToP Shippers must maintain at least eleven years of Marketable Coal Reserves against contracted tonnage
Reserve Backed
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Terminal Expansion
• Expressions of interest received for expansion for over 200Mtpa from over 20 prospective producers/mines for shipments in 2015/2016
• Co-ordination with infrastructure providers
Event Indicative Timing
Expansion expression of interest process CompleteCompletion of feasibility study Q3 2011Capacity commitments Q4 2011Financial close for first expansion phase Q2 2012Mechanical completion – first phase 2015
Stage Indicative Capacity Mtpa
Indicative Total Capacity Mtpa
Indicative Completion
Stage 1 30 30 2014
Stage 2A 30 60 2015
Stage 2B or 3 20+ 80+
Total 80+
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Disclaimer
This document together with any information communicated by WICET in any presentationrelating to this document is confidential and not for distribution. It has been prepared solely fordiscussion purposes and is not intended to be relied upon as advice by any third party. No part ofthis document nor any information provided by WICET in any presentation may be disclosed to,used by or relied on by any person, or used for any purpose, without WICET's prior writtenconsent.
This document may not be reproduced, distributed or published by any person for any purpose. Nopart of this document may be quoted or referred to in any other document.
Information contained in this document may have been supplied to WICET by third parties. Theinformation contained in this document and any information provided in connection with it has notbeen independently verified. The information is in summary form and does not purport to becomplete.
Neither WICET, any related body corporate of WICET nor any of their directors, officers,employees, consultants or advisors (each a WICET Party) gives any warranty, nor makes anyrepresentations (express or implied) as to the completeness, adequacy, suitability or accuracy ofthe information contained in this document or any information which may be provided inconnection with this document.
Each WICET Party expressly disclaims any and all liability relating to or resulting from the use ofany information in this document and is not responsible or liable for any loss, damage, claim, costor expense suffered or incurred by any recipient arising in connection with this document or anyerrors or omissions in it.