MIM Strategic Growth in Coal

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NOT FOR RELEASE IN THE UNITED STATES
MIM - Strategic Growth in Coal Moura Mine
Acquisition
2
The Acquisition

• Acquisition of 55 of Moura joint venture
• US166 million
• Subject to pre-emptive right by Mitsui Moura
  Investments Pty Ltd

3
Funding the Acquisition

• Majority from fully underwritten equity raising
• Balance from internal facilities
• Accelerated Global Tender (AGT) process

4
Benefits to MIM

• Immediate access to cashflow - solid proven
  operation
• Financially robust
• Immediately EPS accretive
• NPV positive at conservative prices
• Rigorously stress tested
• Exceeds hurdle rate (12.5 real, 15 nominal)

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Benefits to MIM

• Strategic fit - synergies with other operations
• Upside potential - new mine plan to further
  increase margins and returns
• Reserve upside - mine life extension and
  expansion
• Further diversifies MIM Group earnings
• Partner in coal with Mitsui and Co

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The Present
- Project description

• 5 Mtpa open cut coal mine
• Export coking and thermal coal products
• Extensive developed and undeveloped lease areas
  in southern Bowen Basin
• 180 km from deep water port of Gladstone
• EBITDA 117 million (100) calendar 2001

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Strategic Location
Abbot Point
Collinsville
Mackay
Newlands
Dalrymple Bay
Hay Point
Riverside
Glenden
Goonyella
Moranbah
Peak Downs
BOWEN
Saraji
BASIN
Blair
Athol
STYX
Norwich Park
Clermont
BASIN
Oaky Creek
Yarrabee
Kestrel
Rockhampton
Jellinbah
East
Ensham
Curragh
Emerald
Gladstone
Blackwater
Cook
South Blackwater
Boundary Hill
Springsure
Rolleston
Callide
Moura
Moura
Theodore
MARYBOROUGH
BASIN
Burgowan
Maryborough
SURAT
BASIN
Wandoan
Miles
Meandu
Approximate scale
Dalby
Brisbane
0
100
200
Kilometres
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Adding Value to Moura JV

• Apply MIMs management and operating skills to
• New mine plan
• Significant unit cost reduction
• Extending open cut reserves and mine life
• Enhancement of EBIT and EBITDA margins
• Increase production to 7 Mtpa
• More higher margin coking coal
• Additional open cut equipment
• Processing plant upgrade

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Synergies with other MIM coal projects

• Blending at Gladstone - upgrading coking coal
  products for certain markets
• Thermal blending upside - enhances Rolleston and
  Wandoan projects
• Strategic position - southern Bowen Basin
  operating base
• Coal product diversity - extends marketing
  portfolio

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Robust Financials

• Immediate access to cashflow
• EPS accretive in year 1 - mine restructure may
  have a slight adverse impact in years 2 and 3
• Strong returns - increases NPV per share, and
  exceeds hurdle rate
• EBITDA margins - increased by new mine plan
• Stress tested - adds value at gt20 below long
  term prices

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Alternative Use of Proceeds

• If Mitsui exercises pre-emptive, apply proceeds
  to
• Debt reduction
• Fund internal coal growth opportunities that
  exceed MIMs hurdle rate. Could include
• NCA - larger capacity draglines
• Coal processing plant upgrades at NCA and Oaky
  Creek
• Newlands northern underground mine
• Rolleston thermal coal project

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MIM in Coal - Proven Capability
Output (Tonnes 000s)

EBIT (Am)



Oaky Creek included at 75 for comparative
purposes
(36.2)
(18.2)

Annualised
Year ending 30 June
Average Prices Received (A)
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Moura fits MIMs Coal Strategy

• Immediate cashflow, EPS and NPV accretive
• Opportunity to enhance earnings, margins and
  returns
• Synergistic benefits with current operations and
  undeveloped resources
• Opportunity to create additional value for
  shareholders

Prime investment opportunity for MIMs coal
growth strategy
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This announcement has been prepared for use in
Australia and may not be released in the United
States. This announcement does not constitute an
offer of securities for sale in Australia, the
United States or any other jurisdiction. Any
securities described in this announcement may not
be offered or sold in the United States absent
registration under the United States Securities
Act or an exemption from registration.