Richards Bay Coal Terminal-An Overview

Richards Bay Ariel View

Brief History of RBCT

1972: TCOA contract with Japanese Steel Mills for 27 Mt over 10 years 1976: Port of Richards Bay officially opened; RBCT started exports with Phase 1 at 12 Mt/a capacity 1979: Phase 2 completed: total capacity 24 Mt/a

1984: Phase 3 completed: total capacity 44 Mt/a

1991: Phase 3 Upgrade exercise: increased to 63 Mt/a 1999: Brownfields expansion: total 72 Mt/a 2008: Design capacity increased to 76Mt/a 2010: Phase V (to be) completed: increase to 91 Mt/a

Infrastructure & Facilities

Situated at a deep sea port, RBCT is able to handle large ships and subsequent large volumes and as such has gained a reputation for operating efficiently and reliably to prevent demurrages. The terminal currently boasts a quay 2.2 kilometres long with 6 berths and four ship-loaders, the two largest of which load at 10 000 and 11 000 tons per hour. Richards Bay has a draft of 17.50M and operates 24/7. The terminal is capable of storing up to 9.5 million tons of coal and is serviced by seven stacker re-claimers, two stackers and a reclaimer.

Stock-Yard
Total Capacity: 9.5 Mt 6.7 Mt with cuts, in 34 grades Ideal Operating Stock Level: 3.0 - 4.0 Mt

10 Yard Machines: 7 Stacker/Reclaimers 2 Stackers 1 Reclaimer

56 km Conveyors 1.8 and 2.5 metres wide, max speed 6.7m/sec (24.12 km/ hr)

Stock Yard View from Control Tower

Coal Input Process

Coal is railed in from more than 49 mines Mines are located in Mpumalanga, Limpopo and Kwa-Zulu Natal provinces 97% of coal from Mpumalanga 2% of coal from Limpopo 1% of coal from KZN Mines are approximately 650 850km from Richards Bay by Rail. Furtherest mine is Grootgeluk at 1063 km

Coal Input By Rail

Rail System
Owned and ooperated by Transnet Freight Rail (TFR) Approximately 6 300 wagons in fleet Trains arrive at RBCT in 200 wagon units, and are then split in 100

wagon units
Wagons are of sizes 58t, and 84t

An average of 13 units of 200 wagons per day arrive at RBCT

Wagon Unloading
Wagons are unloaded using mechanical tipplers RBCT has 5 tandem tipplers Coal is tipped at a rate of 5 500 tons per hour Average Tipping time is 1:27 Min 90 km of rail in RBCT system Average Bypass: 14% ( Coal which is directly sent for loading instead of being stockpiled)

Wagon Tipplers

Wagon Tippling

Stackers & Re-claimers

Conveyor System

Silo

Shiploading

RBCT has 4 Ship-loaders with the following capacities

2 x 8 500 t/hr 1 x 10 000 t/hr 1 x 11 000 t/hr

6 Berths

Minimum Size Cargo: 25 000 dwt

Ship-loaders

Shareholding Pattern Post Phase-V

SHAREHOLDING (Post Phase V) SHAREHOLDER
BHP Billiton Energy Coal South Africa Limited Anglo Operations Limited Xstrata South Africa (Pty) Limited Optimum Coal Terminal (Pty) Limited Total Coal South Africa (Pty) Limited Sasol Mining (Pty) Limited Kangra Coal (Pty) Limited Siyanda Exxaro Coal (Pty) Limited Exxaro Coal Mpumalanga (Pty) Limited South Dunes Coal Terminal (Pty) Limited ARM Coal (Pty) Limited Mmakau Mining (Pty) Limited Tumelo Coal Mines (Pty) Limited Umcebo Mining (Pty) Limited Yomhlaba Resources Limited Mbokodo Mining (Pty) Limited (LTTOP) * Worldwide Coal Carolina (Pty) Limited (LTTOP) * Other (Short or long term users/unissued) * Common Users (Quattro) Refer attached 910 000 8 500 ENTITLEMENT

No of shares
189 498 208 830 158 883 68 611 43 182 38 012 17 454 15 832 35 556 9 142 60 000 32 000 3 500 6 000 10 000 5 000

%
20.82% 22.95% 17.46% 7.54% 4.75% 4.18% 1.92% 1.74% 3.91% 1.00% 6.59% 3.52% 0.38% 0.66% 1.10% 0.55% 0.00% 0.00% 0.93% 0.00% 100.00%

Entitlement
17 952 500 19 783 800 15 051 900 6 500 000 4 091 000 3 601 200 1 653 400 1 500 000 3 500 000 866 200 6 000 000 3 200 000 350 000 600 000 1 000 000 500 000 500 000 350 000

% of Entitlement
19.73 21.74 16.54 7.14 4.50 3.96 1.82 1.65 3.85 0.95 6.59 3.52 0.38 0.66 1.10 0.55 0.55 0.38 -

4 000 000 91 000 000

4.40 100.00

UBU ( Quattro) Entitlement

COMPANY
Anker Coal Sales & Export Black Gold Coal Endulwini Resources Eyesizwe Mining Exxaro Coal Leeuw Mining & Exploration Mashala Resources Mmakau Mining Polmaise Colliery SACMH (Ilanga) Shanduka Coal Shanduka Resources Tweewaters Fuel Umcebo Mining Nucoal (Woestalleen) Worldwide Coal Zinoju Investments Zululand Anthracite

ALLOCATION 2007/8
197 000 200 000 250 000 289 000 105 000 207 000 207 000 247 000 230 000 207 000 197 000 270 000 242 000 197 000 207 000 401 000 197 000 150 000 4 000 000

APPLICATION 2008/9
197 000 200 000 250 000 289 000 105 000 207 000 207 000 247 000 230 000 207 000 197 000 270 000 242 000 197 000 207 000 401 000 197 000 150 000 4 000 000

RBCT Ownership at 91Mt/Annum

Current Shareholders Small Miners SDCT Subscription Tonnage

72 Mt
Anglo Operations Ltd BHP Billiton Energy Coal SA Ltd Xstrata SA (Pty) Ltd 15.05 Optimum Coal Terminal (Pty) Ltd Total Coal SA (Pty) Ltd Sasol Mining (Pty) Ltd Kangra Coal (Pty) Ltd Siyanda Resources 1.50 Exxaro Coal (Pty) Ltd Eyesizwe Coal (Pty) Ltd 19.80 17.95

4 Mt
Made available via the Coal Industry Task Team for new entrants Now to be specifically available for emerging BEE miners with export volumes of 250 ktpa or less. Quattro

6Mt
The new shareholder component of South Dunes Coal Terminal Two thirds BEE with primary shareholders : Kumba 2 Mt Eskom Enterprises 1Mt Golang Coal 3 Mt

9Mt
Awarded as follows Yomhlaba Resources Ltd: 0.50mtpa Mbokodo Mining : 0.50 mtpa Umcebo Mining: 1.00 mtpa ARM Coal : 3.20 mtpa Tumelo Coal Mines: 0.60 mtpa Mmakau Mining: 0.35 mtpa Exxaro Coal : 2.50 mtpa Worldwide Coal Carolina: 0.35

6.50 4.09 3.60 1.65

1.00 0.86

Conclusions
For exporting coal out of RBCT one needs either to be a shareholder of RBCT or should have a tie up with any of the existing shareholders. RBCT is designed to receive coal only through rail wagons. For RBCT ,TFR gives train allocations only to those players who have an allocation at port either independently or through some shareholders. Given the stranglehold of the big players the only way to get coal exported out of RBCT is to tie up with smaller players forming the part Quattro. We have started establishing contacts with the independent constituents of Quattro.