Anglo Coal Australia Group Structure Anglo Coal Australias

Anglo Coal Australia

Group Structure

Anglo Coal Australia’s third largest coal producer l Investment in Australia totals USD 1. 3 bn l Plans to invest a further USD 400 m on Australian mine development over the next 5 years l Australia is essential to Anglo Coal’s long-term growth

Major Australian Producers

2001 Performance – On Target l Overall stretch target achieved in first full year l All business units “On Target” or better l Operating profit USD 173 m and above plan, ROCE 19% l Strong cash flow l Unit cost and production on target l Achieved sustainable cost savings of USD 12 m in 2001

Products & Markets l. Sold over 29 Mt of coal in 2001 l. Diverse product range l. Strategy is to double managed production by 2007

Thermal Coal Demand South Asia Pacific Americas Other Europe EC

Metallurgical Coal Demand South Asia Pacific Americas Other Europe EC

Anglo Coal Australia – Core Strategies l One Team – One Business l Skilled workforce l Continuous improvement l Growth l. Australian opportunities l. Indo-Pacific expansion

In the Community l Responsible corporate citizen l Sponsor of Queensland Community Fund l Sponsor of Camp Quality l Providing scholarships & training l Industry leader in safety

Leader in Safety Industry Comparison – LTIFR 2000/2001 (per million hours)

LTIFR – Qld & NSW Underground Mines 2000 -2001

LTIFR – Qld & NSW Open Cut Mines 2000 -2001

Callide

Capcoal (German Creek)

Capcoal (cont’d) l Produces 5 Mtpa hard coking coal l Two underground mines and one open cut mine l German Creek employs 758 people l All coal is exported to steel companies l The new Grasstree Mine to extend mining life

Moranbah

Moranbah (cont’d) l Produces 5 Mtpa hard coking coal l Coal is exported to various steel manufacturers in Asia l One of Australia’s most productive underground longwall mines l Moranbah employs 448 people

Jellinbah

Moura

Dartbrook

Dartbrook (cont’d) l. Produces approx 3. 4 Mtpa of thermal coal l. All coal is exported to Asia l. Low sulphur product l. Dartbrook employs 293 people l. Kayuga seam project extends mine life

Drayton

Drayton (cont’d) l Mine produces approx 5 Mtpa of thermal coal l Dragline and truck & shovel mining l Export – approx 3 Mtpa l Domestic – approx 2 Mtpa l Drayton employs 264 people l Saddlers Creek identified as replacement reserve

Forecast Production - 2002 Mine Saleable Production Type (100% Mt) Anglo Share Callide 10. 7 Thermal 100% Capcoal 5. 3 Metallurgical 70% Drayton 5. 0 Thermal 88% Dartbrook 3. 2 Thermal 77% Moranbah 5. 1 Metallurgical 88% Moura 6. 0 Thermal & Met 51% Jellinbah 3. 7 PCI 23% TOTAL 39. 0

Improving our Competitiveness l Competitive position is a key success factor l Continuous improvement philosophy l Internal and external benchmarking studies l External learning l Acquire long life operations with low cost structures

Dragline Benchmarking l Detailed comparative data analysis prepared with external consultants l Analysis highlighted large potential for improvement in dragline productivity l Target improvement areas identified for each dragline

Dragline Productivity Improving

GC Central GC Southern Dartbrook Moranbah Longwall Production - 2001

Coal Reserves and Development l ACA has mining plans across reserves totalling almost 800 Mt l Many sites still have extensive areas that have not been fully explored l Confident that reserves will grow significantly as the exploration program is intensified

Qld Reserve Areas – Northern Bowen Basin

Qld Reserve Areas – Southern Bowen Basin

New South Wales Coal Reserve Areas

Future Directions l ACA and Mitsui joint ventures l Dawson Valley projects l China l Indonesia

Conclusion l Anglo Coal is committed to achieving its key strategic goals of: l Growth l Continuous, sustainable improvement l Maintaining its leading position in safety l Investment in Indo-Pacific