Diamonds are Black

There is more of Coal in your life than you know of…..

With COAL we have the electricity that lights

our houses, offices, malls and roads……

There is COAL

In the Bridges that Connect

US

In the cars that take us to our destinations

In the ships & containers that ferry our cargo

In the planes that fly us

From a safety pin to the tall buildings

COAL influences our lives

Each Tonneof Steel that we see around us

Has one tonneof COKING COAL

in it

It is COAL that has powered our Industries for ages

Without COAL

Do we want to Roll Back the

Wheels of Civilization??

Do we want to plunge into darkness ??

And cut trees to give us light ??

WithoutCOAL

Global Climate Change is a truth that we all must face but we need to ensure that facts and figures are not used to forcefully slaughter the human civilization in a fashion similar to the Y2K scare at the beginning of this millennium which turned out to be one of the biggest hoax calls in the modern era.

We would be cleaning our forests,

ending our civilizations Without COAL

Think before you say “No More Coal”

Trends in India’s Steel Production -long term outlook for

India’s coking coal demand

Coaltrans Australia16th August, Brisbane

Arun Kumar JagatramkaChairman, Gujarat NRE

DISCLAIMERThis presentation contains only a brief overview of Gujarat NRE Coking Coal Ltd and its associated entities (“Gujarat") and their

respective activities and operations. The contents of this presentation, including matters relating to the geology of Gujarat‟s

projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and

which have not been subject to any independent verification.

This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties,

and factors outside of Gujarat‟s control, may cause the actual results, performance and achievements of Gujarat to differ materially

from those expressed or implied in this presentation.

To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of the information in

this presentation, nor the future performance of Gujarat, and will not be responsible for any loss or damage arising from the use of

the information.

The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue.

Current and potential investors and shareholders should seek independent advice before making any investment t decision in

regard to Gujarat or its activities.

COMPETENT PERSON STATEMENT

The information in this report that relates to Mineral Resources and Reserves is based on information compiled by Mr. Kris

Markowski who is a member of the Australian Institute of Mining and Metallurgy.

Mr. Markowski is employed by Gujarat NRE Coking Coal Limited.

Mr. Markowski has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and

to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the „Australasian Code for

Reporting of Exploration Results, Mineral Resources and ore Resources‟. Mr. Markowski consents to the inclusion in the report of

the matters based on his information in the form and context in which it appears.”

World Steel Production

• World steel production now above pre crisis levels

• Production recovery led by Asia

• China close to 50% of total global steel production

Source: WSA

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010e

Pro

du

cti

on

(kt)

World

China

Steel Development PatternIndia’s long term steel development pattern is similar to most countries, following the same pattern of more than a century old

China has already reached its peak in growth rate, while India

is on the rise…..

16

Global steel production is back above previous peak levels

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

The golden age

1945 – 1973 6.2%pa

Oil Shocks

Fall of Berlin Wall

The efficiency

age

1974 – 1995

0.2%pa

The China

age?

1996 +

>4.5%paThe emerging age

pre 1945 2.8%pa

Consolidation

New golden age

Can 2010 – 2020 be the Indian Steel Age along with China??

The

rise of

India

The rise of Indian Steel 2010 to

2020

• Indian GDP > 9% in the current decade to

2020

• India’s growth will be demand led as

opposed to export led - more predictable

and less susceptible to external shocks

• Manufacturing is expected to accelerate

in the next few years further boosting

steel demand

• India will continue to add to her steel

making capacities

• With large high quality iron ore reserves

steelmaking will be led by the blast

furnace

• India might overtake Japan by 2015-16

• India 2001 – 26.8 kg

• India 2010 – 54 kg

• Germany – 542 kg

• USA – 337 kg

• China – 385 kg

• Brazil – 97 kg

• Japan – 654 kg

• Australia – 401 kg

• World average – 179 kg

India has Significant Steel Potential

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2006 2007 2008 2009 2010 f

World India

Indian Steel Production Growth Rate (in%)

Source: ministry of steel, E&Y

Indian Steel Production (MT)

0

50

100

150

200

250

300

Projections of Ministry of Steel, Govt of India

Indian Steel Capacity and Production trends

78

80

82

84

86

88

90

92

94

30

40

50

60

70

80

90

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11E

Capacity (million tonnes) - LHS Production (million tonnes) - LHS Capacity utilization (%) - RHS

Source: RNCOS, E&Y

Net Steel Export-Import scenario

-5

-4

-3

-2

-1

0

1

2

3

FY05 FY06 FY07 FY08 FY09 FY10

Figure 28: Net export-import scenario in India's steel industry (million tonnes)

India became a net importer of steel in FY2008 with its importincreasing at a CAGR of 46% during the FY 08-10 period

Source: ministry of steel

Growth in Indian Steel Consumption

Source: ICRA

India’s Projected Steel Capacity by 2012-13

Source: ministry of steel

Capacity Addition projections till 2015

Year Capacity Addition (MTPA) Total Capacity (MTPA)

2010 72

2011 7 79

2012 17 96

2013 28 124

2014 20 144

2015 9 153

Projections as per work completed till date of the proposed projects and MoU signed

Source: projects monitor

Major investments proposed

Indian steel sector has attracted a staggering investment

commitment of about US$ 238 billion

222 MoUs signed

SAIL to increase capacity in phases – US$ 15.5 billion by 2012

8 MT increase by 2012 and further 4 MT increase by 2014

Set up a 12 MT Greenfield project

L&T and Nuclear Power Corporation of India Limited (NPCIL) has

formed a US$ 373 million joint venture.

JSW Steel has earmarked a capex of US$ 1.6 billion for 2010-11 and

plans to increase capacity of its Bellary plant in Karnataka from 7

MT to 10 MT by end of 2010-11.

Status report of Steel projects

JINDAL STEEL AND POWER (JHARKHAND PROJECT) : 11 mtpaProposed investment: US $ 6 billionStatus: Phase-I started

TATA STEEL (ORISSA PROJECT) : 6 mtpaProposed investment : US$ 5 billionStatus: Construction of warehousing shed and building for power sub-station has commenced. Orders placed for equipment and services

TATA STEEL (JHARKHAND :12 mtpa & CHHATTISGARH PROJECT : 5 MTPA)Proposed investment : NAStatus: Pursuing acquisition of land and allotment of mining leases for iron ore & coal

JSW STEEL (BENGAL PROJECT) : 10 mtpaProposed investment: US$ 3 billionStatus : Commissioning by March 2011

JSW STEEL (JHARKHAND PROJECT) : 10 mtpaProposed investment: NAStatus : Pursuing various approvals/ clearances. Mining lease for iron ore obtained

Status report contd…

POSCO (ORISSA PROJECT) : 12 mtpaProposed investment: US$ 12 billionLand Acquisition: In progress Target date of commissioning: Phase I proposed for 2011

ARCELORMITTAL (JHARKHAND PROJECT) : 12 mtpaProposed investment: US$ 9 billionLand Acquisition: In progress Target date of commissioning: Phase I proposed for 2011

ARCELORMITTAL (ORISSA PROJECT) : 12 mtpaProposed investment: US$ 9 billion Land Acquisition: Process initiatedTarget date of commissioning: NA

ARCELORMITTAL (KARNATAKA PROJECT) : 6 mtpaProposed investment: US$ 6 billion Status : Plan announced in Jan 2010

Major Production to start post 2013

Adds up to a total capacity of over 200 mtpa by 2020

ESSAR STEEL (Orissa PROJECT) : 6 mtpaProposed investment: US$ 5 billionStatus: Phase 1 started, Phase 2 by October 2012

ESSAR STEEL (JHARKHAND PROJECT) : 4 mtpaProposed investment: US$ 5 billionStatus: Commissioning by 2012

ISPAT INDUSTRIES ( JHARKHAND PROJECT) : 2.8 mtpaProposed Investment : NAStatus : Company pursuing allocation of iron ore mines

BHUSAN POWER & STEEL (JHARKHAN D : 3 mtpa & CHATTISGARH : 1.2 MTPA)

Proposed Investment : NAStatus : Working to acquire land. Iron ore block and coal block has been allocated

RINL : 7.5 mtpa (location not announced)Status : Plans to start manufacturing flat steel products by about 2015 and aims to achieve a flat steel capacity of 7.5 million tonnes by 2018.

Source: Ministry of Steel, Company report & websites, EY Research, news articles

Indian Steel growth forecast

• 20% is not all together hypothetical. China had it for some time

• 10% to 12% is very much achievable or is it too conservative if

India’s growth accelerates?

Urgent need for Coking Coal to meet India’s projected Steel growth

2020 Steel increaseIncrease in Met Coal

Demand by 2020

10%pa 100 61

12%pa 135 84

15%pa 202 132

20%pa 361 226

• 10%pa will see a doubling of import demand

• 20%pa increase is equal to current seaborne market for all Met Coal

• Major increase in all forms of met coal

PCI = 2.1 x today’s market

HCC = more in demand at higher rates due to rising productivity ~

doubling market

MT

But From Where would all this Coking Coal Come From??

0

50

100

150

200

250

300

Mil

lio

n t

on

nes

Seaborne metallurgical demand 2000-2010

HCC SSCC PCI

Seaborne coking coal imports

150

160

170

180

190

200

210

220

230

240

250

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010F

Mil

lio

n t

on

nes

Total

Total Ex-China

After the recession of the early part of the decade the “noughties” has seen an accelerating rising trend thanks to China. 2009 seen as an overcorrection from ROW.

Source: internal estimates

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

mil

lio

n t

on

nes

Seaborne Met Coal Supply

Australia USA Canada Russia Others

Australia64%

USA9%

Canada11%

Russia3% Others

13%

2009

No major changes in market structure major producers have retained position. USA retained

ability to be “swing” producer, Australian market share steady growth ~54% to 64%.

15

17

19

21

23

25

27

29

31

2005 2006 2007 2008 2009 2010 E

Strong demand from Steel Industry and domestic unavailability causing a surge in imports

Source: CRISIL, internal estimate

MT

China’s Emergence as a major market

-40

-30

-20

-10

0

10

20

30

40

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mill

ion

to

nn

es

China's impact on the Met Coal Market

net Exports Imports

Net Importer

Concerns as potential

for new export threat

Concerns as potential for

new major import market

China has moved from a perceived major threat to a major new market in less than 10

years with major effects on coking coal trade flows in 2009.

Region CAGR (2005 - 2020)

Brazil, China, India 10%

Asia (excluding China & India) 2%

Europe 0.2%

Other 3%

World Total approx. 5%

Hard Coking Coal Demand Growth : 2005 – 2020 CAGR (forecast)

Source : McCloskey, Company forecasts

Met Coal demand

2008 2009 2010 f 2011 f 2012 f

Asia 129 144 163 182 184

Europe 64 46 58 63 68

S America 17 15 16 18 21

Other 10 7 11 12 13

Total 220 212 248 275 286

• Strong demand for Hard Coking Coal in 2010 and beyond

• Chinese demand remains key driver followed by India & Japan

• HCC preferred based on tight market and high BF productivity

Source: Macquarie Research, H&W Worldwide

Scenario 2011

2011-2 : 20 Mt increase in demand of hard coking coal; 12 Mt increase in semi-soft & PCI

Possible Supply sources -

USA – Likely to partly bridge the gap by exporting >50 Mt (exported 36 MT in 2008 & 33 MT in 2009)

Canada – May increase by 5-7 Mt to reach a high of ~30Mt limited by port capacity - not sufficient

Australia – Is it capable of supplying extra 25-30 Mt ? Perhaps the only option to bank upon….

Mozambique…..post 2012? Logistics and quality issues

2012 and beyond?

Demand by 2020 – >400 Mt of all Met Coals

Eastern Russia? – Early coal from Elga possible, but

>10 Mt plus would require new port, rail and cash

Indonesia ? – Some magic solution awaits for

transportation….Doubts on HCC availability and timing

Mozambique – lots of coal but with promised deadlines

unmet, fails to inspire confidence…….ports and rail???

This leaves us with = Canadian & a lot of Australian

coking coal

With accelerated recovery, coking coal supply will find it

difficult to meet demand

Coking coal price too would remain extremely high for some

years – introduction of quarterly pricing and impacts

China likely to dominate and its offshore mine and corporate

ownership is likely to accelerate. India to follow suit

Australia the major potential source has its own limitations of

logistics & capacity…….will new mines maintain quality?

Real anxiety over resources when seaborne demand

breaches >>400Mt tonnes/year.

Fundamental trends in seaborne Met coal supply

• Major challenges exist around infrastructure and

cost

• New coal basins are coming on stream but have

quality and or political factors

• Future coal quality is probably declining in current

major producers

• Future coal costs are likely to be higher than

today – with flow on effect to price

• Key issue for future is will new supply arrive in

time under strong demand conditions?

Potential sources to meet Indian Coking Coal Demand:

Established : AustraliaCanadaUSAChina

Emerging : MozambiqueIndonesiaSouth African Nations

For India some new producers are closer –but other bottlenecks make them unviable

Major seaborne supply basin

Major prospective supply basin

Major domestic supply basin

Tavan Tolgoi,

Mongolia

Shanxi, ChinaIndonesia

Central

Kalimantan

Bowen Basin

Mozambique

Tete/Moatize

Appalachia

Western Canada

East Siberia Elga

Russia Kuzbass

Australia keeps an advantage over other current / developing basins. Indonesia & Mozambique

though have geographic proximity advantages, but quality, infrastructure and steady availability

are much bigger questions Will low ash Indonesia coal assist high ash Mozambique?

9000nm

5500nm

5000nm4000nm

6500nm 6000nm

2500nm

13000nm

Mainly in the prospecting license stage

Reserves have to identified and established

Huge investment in infrastructure required before mining can actually commence

But….Mozambique, Botswana, other

African sources

As opposed to a steel plant being set up in 2-4 years time,

setting up a mine will require 6 – 8 years :

10 years to get the coal flow

Other Sources: Maruwai Indonesian coking coals

#

East Kalimantan

West Kalimantan

Central Kalimantan

SouthKalimantan

Banjarmasin

Palangkaraya

Muara Teweh

Muara Tuhup

Lampunut

Purukcahu

Muara Juloi

Key properties

• Range of coal, rank 0.8-1.8

• HCC to SSCC

• Very low ash

• Very high dilatation

• Good S and P

• Very high vitrinite

Key Issues

• Infrastructure

• Blending

• Costs

Emerging Met Coal Regions in Mongolia -Geopolitical concerns and Distance major concerns

Source: South Gobi company report

Source: ISMW

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009

Mil

lio

n T

on

ne

s

Australian Met Coal Imports into India

SSCC & PCI HCC

Australian Coking Coal Production & Exports

100

110

120

130

140

150

160

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Mil

lio

n t

on

ne

s

Australian Coking Coal Exports is estimated to grow over 5% in next 5 years

Production 2009-10 (MT)

Exports 2009-10 (A$ billion)

Exports 2010-11 f(A$ billion)

158 MT 24 31

Source : GTIS, Internal company forecasts

Highly consolidated industry with 5 big controlling almost 80% of HCC

Supply not keeping pace with Demand Frequent Force majeure events GFC – annual contracts a casuality because

of Rewriting of Contracts – quarterly contracts – nightmare for most buyers

Steel makers in major growth areas like India and China scrambling to acquire mines – rerating of the coal sector

Indian investment in Australian Coal

SectorCoking Coal

Gujarat NRE – owns and operates 2 prime quality coking coal mines in

NSW. Already invested over A$ 450 million and further A$ 350 million

being invested for up gradation of the mines

Thermal Coal

Recently, Adani Group – Acquired coal assets of Linc Energy worth A$ 2.9

billion

Other future investments

ICVL, a consortium of SAIL, NTPC, RINL, Coal India and NMDC is

scouting for coal assets in Australia

SAIL, JSW Steel, JSPL and RINL are in discussion to form a JV company to

buy coal assets

JSW Steel and Essar are also scouting for coking coal mining assets in

Australia

Australian Hard Coking Coal Producers

0

5

10

15

20

25

30

35

40

BHPB Xstrata Rio Tinto Anglo Peabody Gujarat NRE Coking Coal

MTP

A

GNCCL planned output by 2015

Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10

57

GUJARAT NRE COKING COAL LTD OVERVIEW

Wollongong

Kiama

Port Kembla

Port Kembla coal

loader 18 MtpaSutton

Forest

proposal

Berrima

Dendrobium

W. TahmoorAppin

Westcliff Northcliff

Southern

Coalfield

NRE No. 1

NRE WONGAWILLI

BHP Illawarra

Coal

Peabody

Metropolitan

Xstrata

Tahmoor

ASX listed hard coking coal producer

» Market capitalisation of ~A$0.6 billion

100% owner of two underground mines in NSW, Australia

» NRE No. 1 & NRE Wongawailli

JORC reserves of 99.8Mt and resources of 572.9Mt

All ROM coal sold under contract to major shareholder for captive use (Gujarat NRE Coke)

» Commercial terms based on market formula

All product exported through Port Kembla Coal Terminal

» Gujarat NRE holds 16% stake in Port Kembla

» Regional rail and port infrastructure capacity of 18Mt

Targeting to increase ROM production from 1.3Mtpa to 6.0Mtpa over the next 4 years» Target long term cash operating cost of US$39/t FOB (pre royalties, ROM)

GROWTH PLAN – PRODUCTION FOCUS

60

Wongawilli Longwall Introduced

NRE 1 Longwall IntroductionWongawilli Longwall Upgrade

HISTORICAL CAGR 50.7%

MT

FUTURE CAGR 39.6%

PROJECTED CAGR 43.7% OVER 8 YEARS

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

COAL QUALITY

Typical washed coal quality

Note:

1 Based on Bowen Basin coal quality estimates

2 Based on inherent moisture content of Peak Downs coal

Source: Australian Coal Association, Company reports, Broker reports

Bulli Wongawilli

Average range for

coking coal1

Ash (%) 9.6 10.0 7.0 – 10.5

CSN (swell index)

5.5 >9.0 6.0 – 9.0

Inherent Moisture (%)

0.8 0.9 1.02

Volatile Matter (%)

21.7 24.7 17.5 – 34.0

Rank (Ro Max) 1.3 1.2 0.95 – 1.70

Fluidity (ddpm) 1,800 3,000 100 – 20,000

Sulphur (%) 0.38 0.59 0.375 – 0.750

Phosphorous (%) 0.039 0.010 0.005 – 0.080

Gujarat hard coking coal

compares well against Bowen

Basin prime hard coking coal on

almost all quality parameter

83

GUJARAT NRE COKE LIMITED

A SNAPSHOT Largest independent producer of Metallurgical Coke in India

Listed on the Bombay and National Stock Exchanges, with a marketcapitalisation of around USD 1 billion (No. of shareholders 1,60,000)

Profit earning and dividend paying with strong financials and credit rating of

AA- for long term borrowing and PR1+ for short term borrowing.

Met Coke capacity 1.25 million tons, being increased to 4 million tons by2014/15.

The 1st Indian Company to have exported Met Coke from India

Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999certification

4th best performing stock of the decade having given investors returns in excessof 100% per annum compounded

Rated one of the top 10 companies by 10-years profit performance

GROWTH PLAN – PRODUCTION FOCUS

0.13 0.240.50

0.68 0.68 0.68

1.061.25

2.25

4.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

20

01

-02

20

02

-03

20

03

-04

20

04

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

11

-12

20

14

-15

PRODUCTION CAPACITY (MMTPA)

85

86

Strengthening

our bonds

with the

community

NRE Coal Cutters Cricket Club,

won The IPL

(Illawarra Premier League)

Accolades

In April 2008, appointed honorary

NSW “Sydney Ambassador” to

India by the Premier of NSW

This year declared as the “Person

of the Year 2009” by the Illawarra

Mercury

Premier’s NSW Export Awards

The Australian Export Awards is a

national awards program which

recognizes and honors export

excellence thorough innovation and

commitment. The Company won the

2009 Premier’s NSW Export Award in

Minerals and Energy sector and

became one of the finalists at National

level.

THANK YOU

Mr Arun Kumar JagatramkaChairman

Gujarat NRE Coking Coal Limited 94