The Phulbari Coal Project The Phulbari Coal Project -- BangladeshBangladesh

Presentation to Coaltrans Asia Conference Presentation to Coaltrans Asia Conference

Bali, 5 June 2006Bali, 5 June 2006

Listed on the London Stock Exchange (AIM) Market – AEN.L

Coal in West …Gas in East

Jamalganj

Dighipara

Khalaspir

Barapukuria

Madhyapara(hard Rock)

PHULBARI

Bangladesh Resource Potential – The Big Picture……

PROJECT HISTORYPROJECT HISTORY……

Asia Energy operates under Contract with the Government of BanglAsia Energy operates under Contract with the Government of Bangladesh adesh Original Contract with BHPOriginal Contract with BHP……signed 1994signed 1994Assigned to Asia Energy 1998Assigned to Asia Energy 1998…… exploration and resource evaluation ensuedexploration and resource evaluation ensuedAsia Energy PLC listed on London AIM Asia Energy PLC listed on London AIM …….April 2004.April 2004April April ‘‘04 04 Mining Lease grant triggered Feasibility Study requirementMining Lease grant triggered Feasibility Study requirement24 months to complete and submit a24 months to complete and submit a ““Feasibility Study & Scheme of DevelopmentFeasibility Study & Scheme of Development””(SoD)(SoD)

Submitted SoD to Government 2 Oct 2005Submitted SoD to Government 2 Oct 2005Now in Approval phaseNow in Approval phase

BiodiversityBiodiversity

Mine DesignMine Design

Drilling & Coal TestingDrilling & Coal TestingCoal Transport & InfrastructureCoal Transport & Infrastructure

Power generationPower generation

Environmental MonitoringEnvironmental Monitoring

ConsultationConsultationWater StudiesWater Studies

World Class International and Bangladesh Team involved in ProjecWorld Class International and Bangladesh Team involved in Project t Feasibility StudiesFeasibility Studies

CEGISCEGIS -- Centre for Environmental Centre for Environmental & & Geographic Information Services Geographic Information Services AC Nielsen Bangladesh Pty Ltd (AC Nielsen) AC Nielsen Bangladesh Pty Ltd (AC Nielsen) Nature Conservation Management (NACOM)Nature Conservation Management (NACOM)IUCN The World Conservation Union (IUCN)IUCN The World Conservation Union (IUCN)Bangladesh Atomic Energy CommissionBangladesh Atomic Energy CommissionFalgu Sandhani for drilling support and adviceFalgu Sandhani for drilling support and adviceBangladesh University of Engineering and TechnologyBangladesh University of Engineering and TechnologyInstitute of Water Modelling (IWM)Institute of Water Modelling (IWM)Bangladesh Centre for Advanced StudiesBangladesh Centre for Advanced StudiesProfessor Dr Muhammad Qumrul HassaanProfessor Dr Muhammad Qumrul HassaanDepartment of Geological Sciences, Jahangirnagar Uni BangladeshDepartment of Geological Sciences, Jahangirnagar Uni BangladeshBarlow Jonker Pty LtdBarlow Jonker Pty LtdAME Consulting Pty LtdAME Consulting Pty LtdCoffey Geosciences Ltd (Coffey)Coffey Geosciences Ltd (Coffey)

20052005 20062006 20072007--20112011

Ramp Up 2007Ramp Up 2007 --

Project DevelopmentProject Development20062006--20072007

Feasibility StudyFeasibility StudyQ2Q2--Q3 2005Q3 2005

20052005 20062006

Ramp Up 2008Ramp Up 2008-- 20120133Initial Initial EnvironmentalEnvironmentalExaminationExamination

Q1Q1 20052005

Project DevelopmentProject Development200620062006--200720082008

Feasibility StudyFeasibility Study- Q3 2005Q3 2005

Project Timeline Project Timeline –– Feasibility and DevelopmentFeasibility and Development

APPROVALSAPPROVALSQ2 2006Q2 2006

Resource Resource StatementStatement

QQ22 20020044

SCHEME of SCHEME of DEVELOPMENT DEVELOPMENT

to Govtto Govt

OB MININGOB MINING 2002007 7 COAL 2008COAL 2008

Land AcquisitionLand Acquisition

LAPLAP

20082008 ++20204040

Phulbari Power ProjectPhulbari Power Project

ENVIRONMENTALCLEARANCE

GEOLOGYGEOLOGY

&&

MINE PLANMINE PLAN

In Situ Coal Resources In Situ Coal Resources –– JORC Standards CompliantJORC Standards Compliant

1919

1919

Base SeamBase Seam

5725723939389389125125TotalTotal

404028281212InferredInferred

24424439391241246262IndicatedIndicated

2882882372375151MeasuredMeasured

TotalTotalLower Lower SeamSeam

Main SeamMain SeamUpper Upper SeamSeam

Notes:

1. Results based on Geological Model submitted in July 2005

2. Table compiled from data contained in the Phulbari Coal Project ‘In Situ Resource Statement‘ issued by GHD to Asia Energy, August 2005.

Mining at Phulbari Mining at Phulbari ……

Open Cast Truck and Shovel operationCoal measures at 165 – 270 metresThick seams (main seam 22 metres)Dewatering with down hole pumpsMinimal Blasting requiredOverburden contains saleable

construction materials

Open Pit Open Pit --MidMid--Life DetailLife Detail

Overburden StrippingOverburden Stripping

HaulageHaulageRehabilitationRehabilitation

Coal ProductionCoal Production

20072007200820082009200920102010201520152020202020252025203020302035203520432043

2015

2020

2025

2030

2035

2045

2010

Progressive Land RehabilitationProgressive Land Rehabilitation

Mining Stage Mining Stage Plans Plans

Phulbari Environmental and Social Impact ManagementPhulbari Environmental and Social Impact Management

EIAEIA completed to highest completed to highest international standardsinternational standards……....

Covers all critical environmental Covers all critical environmental management tasksmanagement tasks

Comprehensive monitoring programs Comprehensive monitoring programs for water quality, noise and air qualityfor water quality, noise and air quality

Asia EnergyAsia Energy’’s commitment to sustainable s commitment to sustainable developmentdevelopment……..

Phulbari is a pioneering project with a plus 30 year life Phulbari is a pioneering project with a plus 30 year life No one will be disadvantaged by the ProjectNo one will be disadvantaged by the ProjectNo one will be relocated without proper compensation & livelihooNo one will be relocated without proper compensation & livelihood d restoration assistancerestoration assistancePeople will enjoy improved amenities:People will enjoy improved amenities:

SanitationSanitationmore reliable / abundant water supply:more reliable / abundant water supply:

TownTownVillageVillageIrrigationIrrigation

Environmental and Social impact management programs, in line witEnvironmental and Social impact management programs, in line with h the highest international standards, will be in placethe highest international standards, will be in placeBiodiversity will be conservedBiodiversity will be conserved

MARKETINGMARKETING……

Phulbari can pursue a diversified marketing strategy, based onPhulbari can pursue a diversified marketing strategy, based on…………

Cost CompetitivenessCost CompetitivenessPhulbari is comfortably in the Lowest FOB Cost Quartile for the Phulbari is comfortably in the Lowest FOB Cost Quartile for the international international seaborne coal trade and will be profitable in all foreseeable maseaborne coal trade and will be profitable in all foreseeable market conditionsrket conditions

High quality, marketable coal High quality, marketable coal Export products are readily useable in all major marketsExport products are readily useable in all major marketsDomestic products are tailored to growing power and industry neeDomestic products are tailored to growing power and industry needsds

Reliable Coal deliveryReliable Coal deliveryA robust delivery chain and transport system is a key component A robust delivery chain and transport system is a key component of the of the Phulbari ProjectPhulbari Project

Location Location C&F advantage to South Asian markets, especially eastern India C&F advantage to South Asian markets, especially eastern India Competitive in other Asian markets and to the eastern MediterranCompetitive in other Asian markets and to the eastern Mediterranean in ean in Panamax vesselsPanamax vessels

Coal ProductsCoal Products

Coal preparation plant will produce three products using dense mCoal preparation plant will produce three products using dense medium edium cyclones and spiralscyclones and spirals

Total product recovery from ROM coal will be exceptionally high Total product recovery from ROM coal will be exceptionally high (94%) (94%) due to the clean and consistent due to the clean and consistent ‘‘in situin situ’’ quality and thick seams quality and thick seams

Product mixProduct mix60% Export Thermal 60% Export Thermal ~ 9.0 Mtpa~ 9.0 Mtpa

20% Export Metallurgical20% Export Metallurgical ~ 3.0 Mtpa~ 3.0 Mtpa

20% Domestic Thermal20% Domestic Thermal ~ 3.0 Mtpa~ 3.0 Mtpa–– Higher Ash (19% Higher Ash (19% -- 33%) 33%) –– Otherwise similar to Export ThermalOtherwise similar to Export Thermal

Coal Sales Profile 2008 Coal Sales Profile 2008 –– 20382038

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Low Ash Met Coal Export Thermal Coal Domestic Thermal Coal

‘000 Tonnes per year

Phulbari Low Ash Metallurgical Coal Phulbari Low Ash Metallurgical Coal –– Quality ComparisonQuality Comparison

High as PossibleHigh as Possible

High if Vitrinite lowHigh if Vitrinite low

>0.70>0.70

>3>3>40>40

>0.06>0.06>0.1>0.1

>6800>6800<1.0<1.0

<4.0<4.0

<11.0<11.0

<36.0<36.0

>50.0>50.0

<12.0<12.0

Market Market PreferencePreference

553.53.5Coking Properties Coking Properties -- CSNCSN52524545HGIHGI

6868

44

0.720.72

5454

99

0.820.82

Petrographic PropertiesPetrographic Properties

Macerals Macerals –– Vitrinite (% mineral free)Vitrinite (% mineral free)

-- Liptinite (% mineral free)Liptinite (% mineral free)

Rv, max (%)Rv, max (%)

0.0150.0150.0350.035Phosphorus (%)Phosphorus (%)0.020.020.020.02Chlorine (%)Chlorine (%)7200720074207420Specific Energy, Gross Kcal/kgSpecific Energy, Gross Kcal/kg0.550.550.750.75Sulphur (%)Sulphur (%)

2.52.5

9.59.5

33.833.8

54.254.2

2.82.8

6.86.8

33.733.7

56.756.7

Proximate AnalysisProximate Analysis

Moisture (%)Moisture (%)

Ash (%)Ash (%)

Volatiles (%)Volatiles (%)

Fixed Carbon (%)Fixed Carbon (%)

9.09.010.010.0Total Moisture (% as received)Total Moisture (% as received)

Hunter Valley SSCCHunter Valley SSCCPhulbari LAMCPhulbari LAMCTypical Specification** Typical Specification** (Air Dried, unless stated)(Air Dried, unless stated)

Phulbari Export Thermal Coal Phulbari Export Thermal Coal –– Quality ComparisonQuality Comparison

>1500>1500>1600>1600>1200>1200Ash Fusion Temp Ash Fusion Temp -- Initial Def (Initial Def (ººC)C)

LowLowLowLowLow as PossibleLow as PossibleAsh slagging and fouling Ash slagging and fouling propensitypropensity

6800680069306930>6300>6300Specific Energy, Gross Kcal/kgSpecific Energy, Gross Kcal/kg

43430.800.80

2.42.4

12.012.0

31.431.4

54.254.2

8.58.5

Phulbari ETCPhulbari ETC

>40>40<1.0<1.0

<5.0<5.0

<16.0<16.0

<38.0<38.0

>45.0>45.0

<15.0<15.0

Market PreferenceMarket Preference

(Bituminous Coal)(Bituminous Coal)

5050HGIHGI0.550.55Sulphur (%)Sulphur (%)

2.52.5

13.513.5

33.533.5

50.550.5

Proximate AnalysisProximate Analysis

Moisture (%)Moisture (%)

Ash (%)Ash (%)

Volatiles (%)Volatiles (%)

Fixed Carbon (%)Fixed Carbon (%)

9.09.0Total Moisture (% as received)Total Moisture (% as received)

Hunter Valley ETCHunter Valley ETCTypical Specification** Typical Specification** (Air Dried, unless stated)(Air Dried, unless stated)

**Provisional

Target MarketsTarget MarketsExports 12 MtpaExports 12 Mtpa

4 Mtpa by rail to eastern India 4 Mtpa by rail to eastern India –– via the existing crossvia the existing cross--border rail connectionsborder rail connections8 Mtpa by Bulk Carriers to seaborne markets, including south and8 Mtpa by Bulk Carriers to seaborne markets, including south and west coast India, viawest coast India, via

–– Dedicated rail transport on the existing network to KhulnaDedicated rail transport on the existing network to Khulna–– Stockpiling and barge loading at KhulnaStockpiling and barge loading at Khulna–– Bulk carrier Loading Platform at Akram Point Bulk carrier Loading Platform at Akram Point –– Transhipment through the existing shipping channel to open seaTranshipment through the existing shipping channel to open sea

Domestic Sales 3 MtpaDomestic Sales 3 MtpaPower stations, via direct delivery from mine mouthPower stations, via direct delivery from mine mouthBrickworks and other local industry, via existing rail networkBrickworks and other local industry, via existing rail network

–– Current local industry consumption of >2 Mtpa is met by high sulCurrent local industry consumption of >2 Mtpa is met by high sulphur (up to 4%) coal from phur (up to 4%) coal from IndiaIndia

Phulbari

Ishurdi

Darshana

Khulna

Mongla

Akram point

Jamuna Bridge

Hardinge Bridge

Dhaka

Gazipur

Chandpur

Chittagong

IndiaIndia

Handymax Handymax 4040--45kt45ktPanamax Panamax 5555--70kt70kt

CoalDelivery

Coal Delivery Coal Delivery –– Existing Rail InfrastructureExisting Rail Infrastructure

Dual Gauge Track Phulbari – Ishurdi Junction

Coal Delivery Coal Delivery –– Barge Loading and ShipmentBarge Loading and Shipment

Typical 8,000 tonne Self Propelled Barge loading and transhipment

Coal Delivery Coal Delivery -- Bangladesh Inland Waterways (Barge Route)Bangladesh Inland Waterways (Barge Route)

Handy Size vessel at Mongla on Pussur River Mongla Kleenheat LPG Berth

Phulbari provides unparalleled opportunities for Bangladesh portPhulbari provides unparalleled opportunities for Bangladesh port and rail authorities to and rail authorities to improve infrastructure and revitalize the countryimprove infrastructure and revitalize the country’’s western transport corridors western transport corridorPhulbari will quadruple Bangladesh rail freight and transform MoPhulbari will quadruple Bangladesh rail freight and transform Monglangla-- Khulna into the Khulna into the countrycountry’’s largest export volume port s largest export volume port

Sea Port to MarketSea Port to Market……

BangladeshShiploading Platform, to be anchored in sheltered deep water (>18.0 meters) at Akram Point

Existing shipping channel to open sea to be dredgedto Panamax capability

Shipping Distance Comparison* Shipping Distance Comparison* –– PhulbariPhulbari‘‘s Competitive Positions Competitive Position

(1,473)(1,473)

1,5451,545

1,4481,448

4,4664,466

3,1833,183

6,2016,201

3,0183,018

Pearl RiverPearl River(South China)(South China)

2020

1,4011,401

3,1283,128

4,5094,509

3,2523,252

4,6334,633

1,3811,381

Port KelangPort Kelang(Malaysia)(Malaysia)

2,2522,2522,7432,743Tanjung BaraTanjung Bara

Kalimantan Kalimantan IndonesiaIndonesia

4714715,4515,451Diff to Akram PointDiff to Akram Point

3,1503,1504,2544,254Diff to Akram PointDiff to Akram Point

(1,780)(1,780)2,4982,498Diff to Akram PointDiff to Akram Point

4,5034,5035,6965,696NewcastleNewcastleNSW AustraliaNSW Australia

7,1827,1824,4994,499Richards BayRichards BaySouth AfricaSouth Africa

4,0324,032245245Akram PointAkram PointBangladeshBangladesh

Gwangyang Gwangyang (Korea)(Korea)

ParadipParadip(Orissa, East (Orissa, East

India)India)Load Port Load Port

*Nautical Miles Shipped Between Ports*Nautical Miles Shipped Between Ports

FUTURE OPPORTUNITIES FUTURE OPPORTUNITIES ––

The The Phulbari Power ProjectPhulbari Power Project……

Phulbari Power ProjectPhulbari Power Project……

500 MW mine500 MW mine--mouth proposal mouth proposal submitted to GoBsubmitted to GoBKey DriversKey Drivers

Ready coal market 1.5MtpaReady coal market 1.5MtpaBangladesh is power hungry Bangladesh is power hungry and suffering critical and suffering critical shortagesshortagesGoB is developing a GoB is developing a ‘‘newnew’’Energy Policy, with coal as its Energy Policy, with coal as its centrepiececentrepiece

Expansion to 1000 MW likelyExpansion to 1000 MW likelyAttractive New Business:Attractive New Business:

IPO opportunityIPO opportunityPower plant

GoB

Project Company

(Bangladesh)

Asia Energy Equity

IA, PPA

EPC contractorEPC contract

ADB, IFC, EIB and commercial

banks

BPDB

DA

Debt finance

Power sales

Phulbari Coal

Project Coal supplyG

oB G

uara

ntee

Boiler Supplier

Turbine Supplier

BOP Supplier

O&M services provider

O & M contract

Project development

Development Partner

Power plant

GoB

Project Company

(Bangladesh)

Asia Energy Equity

IA, PPA

EPC contractorEPC contract

ADB, IFC, EIB and commercial

banks

BPDB

DA

Debt finance

Power sales

Phulbari Coal

Project Coal supplyG

oB G

uara

ntee

Boiler Supplier

Turbine Supplier

BOP Supplier

O&M services provider

O & M contract

Project development

Development Partner

BANGLADESH BANGLADESH

andand

ASIA ENERGYASIA ENERGY““Making natural resources work Making natural resources work for the people of Bangladeshfor the people of Bangladesh…”…”

Significant Economic and Social BenefitsSignificant Economic and Social BenefitsValue added to the Bangladesh Economy over life of mine (*)Value added to the Bangladesh Economy over life of mine (*)

$7 billion in royalty and tax payments $7 billion in royalty and tax payments $21.4 billion or 1% boost to Bangladesh GDP$21.4 billion or 1% boost to Bangladesh GDP

–– $7.8 billion direct$7.8 billion direct–– $13.7 billion through economic multipliers$13.7 billion through economic multipliers

$3 billion saving in foreign exchange through coal import substi$3 billion saving in foreign exchange through coal import substitutiontution

Employment and Training opportunitiesEmployment and Training opportunities2100 jobs during construction, 1200 during operations2100 jobs during construction, 1200 during operationsStrong reliance on training local recruitsStrong reliance on training local recruits8 to 10 new jobs for every project employee8 to 10 new jobs for every project employee

Social infrastructure improvements including health, education aSocial infrastructure improvements including health, education and housingnd housingClean, potable water supply from mine dewatering in an area annuClean, potable water supply from mine dewatering in an area annually impacted ally impacted by droughtby droughtVital construction materials for the building and transport induVital construction materials for the building and transport industrystryNew commercial opportunities for the western part of Bangladesh New commercial opportunities for the western part of Bangladesh as a result of as a result of rail and port upgradingrail and port upgradingGrowth in energy supplyGrowth in energy supply

Coal fired electricity from Phulbari will reduce countryCoal fired electricity from Phulbari will reduce country’’s over dependence on gas and s over dependence on gas and meet 10% of countrymeet 10% of country’’s energy needs by 2015s energy needs by 2015

(*) (*) GHD Study resultsGHD Study results

Financing Phulbari Financing Phulbari –– A Structured ApproachA Structured Approach

$50 million share capital raising on 30 November 2005, through J$50 million share capital raising on 30 November 2005, through J P P Morgan CazenoveMorgan Cazenove

Funds to be used for initial equipment purchases (dewatering borFunds to be used for initial equipment purchases (dewatering bores, first es, first overburden fleet), deposits to secure future mine equipment ordeoverburden fleet), deposits to secure future mine equipment orders, initial land rs, initial land acquisition and recruitmentacquisition and recruitment

Project Financing Process underway, with Barclays Capital as advProject Financing Process underway, with Barclays Capital as advisers isers Anticipated Total Funding requirement of approx US$1.0 Billion*Anticipated Total Funding requirement of approx US$1.0 Billion*Banking Banking ““Project Information MemorandumProject Information Memorandum”” in preparationin preparationIndependent Engineering Reviews have been completedIndependent Engineering Reviews have been completed–– Mining and Infrastructure (SRK)Mining and Infrastructure (SRK)–– Environmental and social Impacts (URS)Environmental and social Impacts (URS)Go to market Q2 2006Go to market Q2 2006

*(excluding financing costs)*(excluding financing costs)

The Phulbari Coal ProjectThe Phulbari Coal Project…….... An exciting new development for the global coal industry……..

A sustainable social and economic investment for the people of Bangladesh…….

A successful venture for the shareholders of Asia Energy

The Phulbari Coal ProjectThe Phulbari Coal Project…………....