Adani Group Pesentation BMC 25th Oct'12 - Brisbane …brisbaneminingclub.com.au/event_archive_pdfs/2012/Adani Group... · Adani Group –Major Milestones 25 October 2012 Adani Mining

Adani GroupAn update

25 October 2012

Brisbane Mining Club

Today

� India’s Growth Story and Energy Demand

� Adani Group – an Overview

� Adani Group in Australia

25 October 20122Adani Mining Pty Ltd

India’s Growth Story and Energy Demand


India : Macroeconomic Scenario – forecast


India 1980 1990 2000 2010 2020

GDP (USD Trillion) 0.182 0.326 0.480 1.631 5.6*

GDP Growth Rate (CAGR)1981-1990

6.0%1991-2000

3.9%2001-2010

12.8%2011-202013.8%

Rank 12 12 13 9 4

1212

13

109

USA China JapanGermany

Brazil Russia UK France India Italy Canada Spain Australia SouthKorea

Mexico

1980 2,788 202 1,071 826 163 - 542 691 182 461 269 224 165 64 227

1990 5,801 390 3,058 1,547 508 - 1,018 1,249 326 1,136 583 521 328 270 288

2000 9,951 1,198 4,667 1,906 642 260 1,481 1,333 480 1,101 725 582 401 533 672

2010 14,658 5,878 5,459 3,316 2,090 1,465 2,247 2,583 1,538 2,055 1,574 1,410 1,236 1,007 1,039

2016 (E) 18,808 11,220 6,540 3,928 3,303 3,237 3,220 3,211 2,848 2,489 2,063 1,703 1,697 1,586 1,495

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

GD

P (

US

D B

illio

n)

India – GDP Evolution in comparison with World Economy Source : Wikipedia / IMF data

3 fold increase from current levelSet to become No. 4

India : Energy Scenario


Power Generation Rank : 5

Electricity Consumption Per Capita (KWH)Source : 2012 Key World Energy Statistics - IEA

One of the lowest in terms of per capitaconsumption of power

Electricity Generation (Billion KWH) Source : EIA – International Energy Statistics 2010

4,1123,904

1,052 984 904

591

0

500

1000

1500

2000

2500

3000

3500

4000

4500

USA China Japan Russia India Canada

15145

13361

10063

8399

2958 28922384

644

0

2000

4000

6000

8000

10000

12000

14000

16000

Canada USA Australia Japan China World Brazil India



0

100

200

300

400

500

600

700

800

2001-02 2006-07 2011-12 2016-17 2021-22 2026-27 2031-32

Peak Power Demand (GW)

6% GDP growth 8% GDP growth 9% GDP growth

Source: IMaCS Research / 17th Electric Power Survey of India Report / The Conference Board : Global Economic Outlook 2012

Likely to experience a steep risein Power demand in the comingyears.



Coal 84%

Gas 15%

Oil 1%

Break up of Thermal Power Generation Capacity

Fuel MW % of Total

Thermal 124,731 65.44

Coal 105,437 55.32

Gas 18,094 9.50

Oil 1,200 0.63

Hydro 38,848 20.38

Nuclear 4,780 2.50

RES** 22,233 11.67

Total 190,593 100

** RES = Renewable Energy SourcesSource : Power Ministry (India) as on 29

thFeb 2012

Total Power Generation Capacity [191 GW]

Thermal65.5%

Hydro20%

RES**12%

Nuclear2.5%

India : Coal Scenario


Source : Ministry of Coal, India; Planning Commission of India

� Need for supply diversity and stability� No play to create excess supply

Historical Demand-Supply of Coal in IndiaIndia’s Need for Imported Coal : Imports to Increase to Bridge Demand-Supply Gap

Source : CIL; SCCL; Ministry of Coal; India; Planning Commission of India

Coal in FY2017 : Demand ~ 950MMT; Available ~ 740 MMT; Import Requirement ~ 210 MMT

550

598

656696

773

950

490515 524

559580

740

59 73 92137 143

210

0

100

200

300

400

500

600

700

800

900

1000

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2017

Demand Production Import

MMT

401 416 424 452 470

615

45 49 5051

53

57

4449 50

5657

68

6083

132137

193

210

0

100

200

300

400

500

600

700

800

900

1000

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2017

CIL SCCL Others Import/Deficit

MMT

Australia as Potential Source for Imported Coal


• Large reserves of high quality and high energy content

• Possible to achieve economies of scale

• Huge potential for exports as supply could be potentially much higher thaninternal demand

• Sufficient port capacity available to cater to the export market

• Politically Stable; Transparent Government Policies

• Continuous improvements in mining technology, occupational health andsafety and environmental performance ensure efficiency and reliability

• Coal industry supported by a strong equipment and services sector withexpertise in design, construction and operation of mines, transport systemsand loading facilities

Adani GroupAn Overview


Adani Group – Major Milestones

25 October 2012

Adani Mining Pty Ltd 11

Foundation of Adani Group

� Parsa & Machhakata, India

� Preferred Proponent for Dudgeon Point, Australia

� 1st unit of 330 MW Operationalized at Mundra

� Power IPO; Oversubscribed 26 times

Indonesia (Bunyu) Mining Operation

Adani’s 1st IPO;

Oversubscribed 25 times

� Chendipada Coal Block, India

� Carmichael Coal Mine tenement, Australia

� 1st supercritical unit of 660 MW commissioned at Mundra

1988 1994 2006 2007 2009 2010 20111998

Mundra Port Operational

� Parsa Kente, India

� Mundra Port IPO -Oversubscribed by 116 times

Abbot Point, Australia

Mine Port Power

25 October 2012Adani Mining Pty Ltd 12

• Largest private Port in India

• Largest Coal Import Terminal in the world

• 1st Company in India to own Private Railway & operate double decker container rakes

• Largest Private sector Power Generator in India

• 1st private sector company in India to commission 1000 km high voltage direct current

(HVDC) power transmission system

• Largest importer of Coal in India with consistent market share of over 50%

• Largest Coal mine developer & operator in India with peak capacity of over 110 MTPA

• Largest Edible Oil Company in India in terms of market share

Adani Group – Thinking Big Doing Better


• 3 listed Companies on Indian Stock Exchanges:

Adani Enterprises Limited, Adani Ports and SEZ Limited & Adani Power Limited

• Annual Turnover of over USD 8 Billion

• Projected investment of USD 25 Billion in next 5 years

• Projected Manpower of 20,000 in next 5 years

• Learning and Development through Adani Management Development Centre, Adani

Institute of Infrastructure Management & Gujarat Adani Institute of Medical Sciences

• Quality Education, Healthcare, Livelihood Development and Rural Infrastructure

Development through Adani Foundation

Adani Group – Thinking Big Doing Better

Integrated Business Model : from Pit to Plug

Vision for future


Coal Mining &

Coal Trading

Power Generation & Transmission

Ports & Logistics

2012: 4660 MW

2020 : 20000 MW2020 : 200 MMT

2012: 38 MMT

2020 : 200 MMT

2012: 78 MMT

Coal Mining & Trading

Power GenerationPort CargoIntegrated

Business

Model

Adani Group in Australia



2009

Dudgeon

Point

Preferred

Proponent

2010

Carmichael

Coal Mine

Acquisition of

Coal Tenement

2011

Abbot Point

Coal Terminal

Acquisition

AUSTRALIAN RESOURCES AND MAJOR EXPORT PORTS

Oil and Gas Basin

Black Coal Basin

Lignite Basins

Uranium Deposit

Coal Production

Coal Export Ports

Operating Uranium

Mines

Canberra

Carmichael Coal Mine• 10 Billion Tonnes thermal coal resource• Capacity to produce 60Mtpa• Construction start 2013; First coal 2015

Rail• Greenfield line from Carmichael Mine to Moranbah (190 km)

• Construction start 2013; Commissioning by 2015

PortsAbbot Point• Existing operational Terminal at Abbot Point is 50 MTPA

• Expanding Abbot Point Terminal to 120 MTPA (35 MTPA capacity addition by 2016)

Dudgeon Point• One of the two preferred proponents for developing Dudgeon Point (180 MTPA between both proponents)



Carmichael Mine Details


Expected Production

• 60 MTPA• Open Cut ramp up in 7 Years

Investment • Mine $4B+• Including supporting Infrastructure

Coal seams • Eight coal seams; AB1, AB2, AB3, D1, D2, D3, E and F

• Gentle slope 2°to 6°• Combined thickness of 25 to 35 Mts

• 5:1 Strip Ratio

Mining Technology

• Project will have 110 CuMDraglines, 63 CuM Shovels / 42 CuM HEX and 360 T trucks

• Coal would be washed / dry separated


Carmichael Mine – Exploration Progress

2010 2011 2012

Carmichael Mine Project


Exploration • Completed in Northern Open Cut Area

Mine Plan • Completed for Northern Open Cut Area

Hydrological Model • Completed

Geotech Model • Completed

Coal Quality Model • Completed

Washability Model • Completed

Environmental Impact Statement (EIS) – Mine and Rail

• Submission expected by November’12

Bankable Feasibility Study • Commenced in June’12; Report expected by March’13

Preliminary Engineering • Commenced Preliminary Engineering for Infrastructure, Offsite and Onsite. Expected to be completed by February’13

Land • Purchased Moray Downs property for Mine and Infrastructure

Mining Equipment • Slots booked for Mining Excavators & Trucks (with tyres)• Ancillary equipment will be ordered by November’12

Utilities • Water and Power sources identified

Adani Group in Australia – Rail


100 MTPA Railway

190 Kms

New Heavy Haul Railway

Rail connectivity:

support Abbot Point and

Dudgeon Point Ports

State of the art

Signalling system for

efficient train operation

Adani Group in Australia – Rail


Route Selection • Completed and corridor has been defined in May’12

LiDAR Survey • Completed

Geotechnical Investigation • Completed along the corridor, leading to detailed Hydrology modelling

Survey • Detailed ground survey including CHMP, Vegetation, Cadastral, etc. completed

Train Modelling • Completed to confirm cycle time, tonnage, rolling stock requirement, operating cost, etc.

Basic Engineering (+/- 15% estimates)

• Commenced in April’12. Will be completed by December’12

Detailed Design • Commenced

Laydown areas • All laydown areas identified including camp locations, construction depots, maintenance yard, etc.

Rail Accreditation • Received accreditation for Rail Infrastructure Manager and Rail Operational Manager effective 31st July’12

Land • CHMP Agreement signed with all four Native Title groups

Quarry • Permit to search granted by DERM on 31 locations• Site investigations in progress

Adani Group in Australia – Port


Adani rail line

Bowen

basin

Galilee

basin

Surat basin

Abbot Point

Dudgeon Point

Abbot Point T1:• Status – Operational• Capacity – 50 MTPA• Completely contracted

Abbot Point T0:• Status - Proposed• Capacity – up to 70 MT in 2 stages

Dudgeon Point:• Status – Proposed• Capacity – 90 MT in 3 stages

Source: Map - Presentation at Coaltrans–Australia Conference by Dept. of Transport and Main Roads, Queensland Government, Aug 2012; Adani analysis

Adani Group in Australia – Abbot Point T0


Public Environment Report (PER) for Dredging

• Submitted in September’12• Approval expected by April’13

Environmental Impact Statement (EIS)

• Submission expected by end of October’12• Approval expected by May’13

Cumulative Impact Assessment Report

• Jointly prepared by the Abbot Point terminaldevelopers

• Has been released for Public Comment in October’12

Offshore Geotech works • Completed in September’12

Onshore Geotech works • Expected by February’13

CHMP and ILUA • Discussions/Negotiations commenced in August’12

• Agreement expected by December’12

Basic Engineering (+/- 15 % estimates)

• Commenced in May’12• Completion expected by December’12

Detailed Engineering • Will commence in November’12

Major Contract and Procurement Packages

• Will be awarded by Q2 2013

Organisational Strategy

Leverage our scale & ambition to

attract future industry leaders

Build a high performance

organisational culture to create a

new industry benchmark

Pursue innovative solutions … unshackled from past practises

Under pinned by sound management practises and strategic risk controls


amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. AEL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of AEL. This presentation is strictly confidential.This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.This presentation contains translations of certain Rupees amounts into U.S. dollar amounts at specified rates solely for the convenience of the reader.

Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Enterprises Limited (“AEL”) and Mundra Port and Special Economic Zone Limited (“MPSEZ”) & Adani Power Limited (“APL”), their future outlook and growth prospects, and future developments in their businesses and their competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, etc., or similar expressions or variations of such expressions. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in their business, their competitive environment, their ability to implement their strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of AEL’s shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of AEL. AEL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. AEL assumes no responsibility to publicly

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Adani Group Pesentation BMC 25th Oct'12 - Brisbane …brisbaneminingclub.com.au/event_archive_pdfs/2012/Adani Group... · Adani Group –Major Milestones 25 October 2012 Adani Mining

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