construction plan of 400mw tpp

MJAM MCC-JCL Aynak Minerals Company Ltd.y p y

C t ti Pl f

MCC-JCL Aynak Minerals Company Ltd.

Construction Plan of 400MW Thermal Power Plant400MW Thermal Power Plant

July 29, 2010

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProject Background

The 400MW thermal power plant of MJAM is an important componentThe 400MW thermal power plant of MJAM is an important component of Aynak Copper Project. According to the power supply agreement signed between MCC and Government of Afghanistan in Feb 2009, the main purpose of this project is to provide power to Aynak Project, and supply/sale the surplus power to Government of Afghanistan, to promote local economic development.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProject Background

The Project construction includes coal resources development, 400MW thermal power plant and transmission power lines etc.The project is located at Ashpushta, Kohmard District, Bamyan Province.

Job place

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yConstruction Plan of Coal Mine and Power Plant

Coal Resources DevelopmentAccording to the power supply agreement, Government of Afghanistan is responsible to provide sufficient coal reserves to MCC with no less than 100 million tons of coal so as to meet the

demand of constructing a 400MW thermal power plant.

On August 6th, 2009, Government of Afghanistan appointed the region between Qaleech and Ashpushta as coal prospectingregion between Qaleech and Ashpushta as coal prospecting area which is about 67.5km2.

The development of coal resources includes 4 stages: resources prospecting, shaft design, shaft construction and surface industrial facilities construction. Provided the security and other conditions are fulfilled, the construction period for coal project would be 3 5--4 yearswould be 3.5--4 years.

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Construction of Thermal Power Plant

The power plant will be built near the coal prospecting area The power plant will be built near the coal prospecting area. The estimated installed gross capacity is 400MW, and the total investment is preliminary planned to be 500 million US Dollars. The total area of the plant would be 667000m2 and the power plant includes steam p p pturbine workshop, electric workshop, chemical treatment workshop and boiler workshop. Two 20MW steam turbo-generators will be installed in the steam turbine workshop which is environment-friendly thermal power generating units of high capacity high dimension and high efficiency Itgenerating units of high capacity, high dimension and high efficiency. It requires 1.5million tons of fire coal annually and annual power generating capacity is 2.88 billion kwh.

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Construction of Thermal Power Plant The location of power plant can be settled after confirmation of a coal mine site which can annually produce 1.5 million tons of coal, with a total reserve of about 100 millions ton and service period of 30 years. Upon

l ti f l d i iti f l t th lcompletion of land acquisition for power plant, the power supply development plan and ESIA report will be compiled. After approval of Ministry of Mines the construction of power plant will be started, and with sufficient security protection and government support, , y p g pp ,the construction period will be 3.54 years.

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Electric Transmission Line

MJAM will construct a 220KV two circuit high tensiontwo-circuit high-tension

transmission line, via Bamyan

Province, Parwan Province, Kabul

and Logar Province with total

distance of 280km including plant

to Aynak Copper Project and plant

to Kabul.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProgress of the Project In September 2009, MJAM dispatched a team of engineers and surveyors to the working area to conduct geological survey, geological

mapping and topographic measurements.

The confirmed coal survey area starts from Qaleech in the west and ends at Ashpushta in the east, about 18 KM in length and 4KM in width.

The total area is 67.5 KM2The total area is 67.5 KM

On March 26, 2010, 45 MJAM employees and 4 drilling machines started drilling operation in the easten Ashpushta area. On April 24, MJAM

submitted Coal Prospecting Program for Bamyan Project to MOM.

Currently MJAM is carrying out drilling and geolgocial survey in the eastern Ashpushata areaeastern Ashpushata area.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yWork principle

MJAM bi l l i d k i b k h h i MJAM combines general planning and key points breakthrough in the work and divides the working area into West Section, East Section and Middle Section. The priortity sequence of coal prospect is No. 1 Layer of Lower jurassic West Section and then No 7 Layer of theLayer of Lower jurassicWest Section and then No. 7 Layer of the Middle jurassic, East Section, and finally the Middle Section

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProspecting Sequence

The survey will follow the standard of: from the known to the

k f th h ll t thunknown, from the shallow to the

deep, from the center to the sides.

The drilling plan includes 13g p

survey lines, 21 holes and 10630

total footage, and will be adjusted

according the discovered coal

reserve situation.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProgress Achieved

E t S ti C tl 3 d illi h l h b l t d d East Section: Currently 3 drilling holes have been completed and one is in operation. One drlling hole discoveres 4 layers of coal, the

thickest 2.5M and the thinnest 0.5M. Another discovers 7 uneven

layers of coal, the thickest 2.8M.

Drilling for the West and Middle Section is in preparation and can be started the moment security arragements are confirmed.

Up to July 25, 2010, the total footage done is 1052M, 22% of the 2010 annual plan2010 annual plan.

Drilling for the whole working area is designed to be completed in 2010 and a survey report will be submitted in April 2011.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yThe Success of the Project will Benefit all Afghanistan

Aynak Copper Project and its auxiliary Coal Mine and Power Plant is Aynak Copper Project and its auxiliary Coal Mine and Power Plant is the largest ever foreign investment Project in Afghanistan. The

successful construction and opearion of the project is meaningful for the

economic development and social stability of Afghan society, attraction

of foreign investment, increase of government revenue and improvement

of Afghan peoples life standards.g p p

The total investment of Aynak Project and its auxiliary facilities is 4.39 billion US dollars. Aynak Project will directly provide 3708 job

i i i di l id f h d j b i i bopportunities, indirectly provides tens of thousands job opportunities by

promoting the development of industies like mining, construction,

machinery maintenance, transporation and sevice.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yThe Success of the Project will Benefit all Afghanistan

h t b itt d b A k P j t ft th f l ti illhe taxes submitted by Aynak Project after the sucessful operation will improve financial status of the Government.As the largest foreign investment in Afghansitan, Aynak Project is progressing smoothly and efficiently with the active support of Ministry ofprogressing smoothly and efficiently with the active support of Ministry of Mines. The successful construction and production of Aynak Copper Project will surely attract more foreign investment to Afghanistan.Aynak Project will adopt advanced mining, concentrating and smelter t h l d id t i f l l l All thi ill d fi it ltechnology and provide traning for local employees. All this will definitely accelerate the sceince and technology advance of Afghanistan and benefit Afghan people. 13

MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProvision of Security for the Project through cooperation

We are pleased to see strong promotion in the aspects of security, land acquistion, ancient relics excavation and enviromental and social impact assessment with the powerful support of Ministry of Mines, Ministry of Interior, Ministry of Finance, Ministry of Culture, NEPA and other concerned ministries. Security is the precondition of the Project, and land is the basis of the project. We hold the belief that with the powerful support of Ministry of MinesWe hold the belief that with the powerful support of Ministry of Mines, Ministry of Interior, Ministry of Finance, Ministry of Culture, NEPA and other concerned ministries, Aynak Project will become a success.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p yProvision of Security for the Project through cooperation

H hi Here, we want to use this occasion to thank Afghan Government for their support to MJAM. Because of your yconsistent efforts, peace and happiness are descending on this resilient nation, this land full of engery and hope China is aengery and hope. China is a neighbour with generations of freindship with Afghanistan. We believe our mutual assistance and cooperation will secure a sucessful future for Aynak Project.

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MJAM MCC-JCL Aynak Minerals Company Ltd.y p y

Thank you!16

construction plan of 400mw tpp

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