Vivek OjhaDirector

Global Coke Limited

ICC Conference, New Delhi 30th November 2010

Disclaimer

The views expressed here contain informationderived from publicly available sources that have notbeen independently verified. No representation orwarranty is made as to the accuracy, completenessor reliability of the information. Any forwardlooking information in this presentation has beenprepared on the basis of a number of assumptionswhich may prove to be incorrect. This presentationshould not be relied upon as a recommendation orforecast by Global Coke Limited.

What is Metallurgical coke

• It is an important ingredient of steel making process.

• It provides the Carbon and heat required to chemically reduce iron ore in blast furnaces to hot metal.

• Met coke is produced by carbonisation of

What is Metallurgical coke

coking coal at 1300 C, in the absence of oxygen, to produce macro-porous solid carbon material of high strength and relatively large lump size.

• This process is known as destructive distillation

Uses of Met Coke

• It is used as a primary fuel in industries where uniform and high temperature is required in kilns and furnaces

• Pig Iron

• Copula Furnaces

• Steel foundries

• Copper and Brass foundries

• Lead & Zinc Smelters

Uses of Met Coke

• Soda Ash plant

• Calcium Carbide Producers

• Ferro alloys

• Cement Plants

• Mini-steel plants

India’s Met Coke Industry

• Indian Met Coke Industry is in developing stage.

• We have limited coking coal resources.

• India’s coal demand, both thermal and coking, may rise to 1.87 billion tons a year by 2026. India’s use of core sector commodity is expected to rise by 54% to 730 MTA by 2012, while the imports have doubled in last 10 years

THE INDIAN COKE MARKET SCENARIO

• Integrated steel plants are the biggest consumers, accounting for about 70% of the market

• Among the secondary steel producers, only Sesa Kembla had captive coke plant in 2004 (0.28 mtpa)

• Today more than ten steel producers have gone in for captive coke plants (capacity > 4 mtpa)

• There is a distinct move towards captive coke plants among the secondary steel producers

In the merchant coke making domain

Gujarat NRE Coke is the largest listed player with captive mines in Australia and plants in Gujarat and KarnatakaSaurashtra Fuels has two Met Coke Plants, one at Porbandarhaving current installed capacity of 140, 000 MTPA and the other at Mundra having current installed capacity of 900,000 MTPA, making the total capacity of the company more than 1 million tons per annum.Global Coke Ltd : We have 2 Met Coke plants with a combined capacity of 600,000 MT p.a.BLA Industries is also a key player in the domain with a capacity of about 168,000 MTPAOthers are in the unorganised sector with small capacities located in clusters around Jharkhand, Orissa and coastal areas of India.

Critical inputs for steel production of 300 million tons(In million tonnes)

Iron Ore Coking

Coal

Non-coking

coal

2019-20

Estimated

550 200 70

2009-10

Existing

100 52 24

High projected growth in Steel Production warrants sustainable supply chainof two prime raw materials:– Iron Ore– Coking Coal

Key Raw MaterialsFor 1 tonne of Steel

Blast Furnace } 1725 Kg Iron Ore, 645 Kg of Coke, 150 Kg of Lime StoneBasic Oxygen Furnace } 138 Kg Recycled Steel

Electric Arc Furnace } 1050 Kg of Recycled Steel, 65 Kg of Coal Direct Reduced Iron } and 43 Kg of Lime Stone

India’s Coal Scenario

• India’s coal demand is rising at 8% p.a. whereas coal production is growing by only 6% p.a.

• The demand for coal in India is expected to go up to 730 million tons by 2011-12

• The projected coal requirement for 2020 is 1.5-2 billion tons.

Out of total coal reserves of 276.81 BT,coking coal is only 33 BT, of which 6.7BT lies below 600m.

Indian coking coal has high ash contentwhich has compelled Steel makingcompanies to opt for costlier imports

Growing steel production led to rise indemand for metallurgical coal.

Logistics bottleneck led to chronicsupply tightness.

Spot price soared along with dry bulkfreight rate.

Indian Coking Coal

30.22 31.51 32.10 34.46 33.31

16.93 16.89 17.88

22.03 24.00

0

25

50

2004-05 2005-06 2006-07 2007-08 2008-09

Indigenous Production Imports

Coking Coal Imports rising every year

8.64 8.357.10 7.21 7.24

5.26 5.355.76 6.54

5.31

0

2

4

6

8

10

12

14

16

2004-05 2005-06 2006-07 2007-08 2008-09

Washed Coal Middlings

Availability of Washed Coking Coal

Projected Coal Demand &

Production – 2020 (in million tonnes)

Type of Coal Projected Requirement

Production Import

Coking Coal 195 58 137

Non-coking Coal

Source: PlanningCommission

1,240 1,116 124

Coke Market Challenges

• Demand Supply Gap

• Impact of Volatility in the Coke Market

• Volatility of Coking Coal Price

• Forced Dependence On Imported Coal to a Large Extent

• Logistics Bottleneck

Coke Market Challenges

• Lack of industrial stability due to presence of about 100 Small coke Manufacturers in unorganized sector

• Exchange Rate Fluctuations

• Fluctuation in Crude Oil Prices Impacting Transport Cost

India – What lead to Imbalances?

• Impact / Fluctuations of Domestic Demand of Producers – surge lead by demand for construction projects

• Logistic constraints – ability of ports to handle/store large shipments

• No major increase in coke making capacities due to limited availability of coking coal

India – Combating Volatility

• Increase Manufacturing Capacity - Economy of Scale

• Consolidation of Coke industry by merger/acquisitions

• Eliminate Distribution Bottleneck in Supply Chain of Imported Coking Coal – Reduce Intermediaries

• Formation of ISM for bulk buying

• Backward Integration

• Blending of soft coking coal

India

• Growth rate poised to accelerate to 9 -9.5% over 2013 -15

• (Demographic dividend, structural reforms, globalisation)

• China will cool down to a sedate 8 % by 2015

46.56

52.5356.07 56.41

64.85

0

20

40

60

80

2005-06 2006-07 2007-08 2008-09 2009-10

Finished Steel Production

Indian Steel Production

Steel

We have huge quantities of Iron Ore

We are scouting around the world to secure supplies of Coking Coal

To become the second largest steel producer of the world

Global Coke Limited

Global Coke Limited

* Metallurgical Coke

* Green Power

* Own Jetty

* Located in the Iron Ore heartland

* Global Reach through Singapore Operations

* Raw material Security

* Ready to partner in progress

Plants & Capacities

JamnagarExisting capacity 144,000

Expansion 156,000*

Total 300,000

Power From

waste heat 12 MW**

* December 2010

**December 2011

GoaExisting 144,000

Expansion 156,000*

Total 300,000

Power From

Waste Heat 24 MW **

* March 2011

**December 2011

Consistent quality, above board dealings & participative management

have ensured repeat orders by satisfied customers &steady business

relationships

• Hindusthan Zinc

• Ispat Industries

• Birla Copper (Hindalco) Ltd.

• Jindal Stainless Ltd.

• Rock Wool (India) Ltd

• Tata Chemicals Limited

• Nirma Limited

• SAL Industries

• United Phosphorous

Professionally managed by an

independent Board of

Directors that include coal

scientists, ex-bankers,

bureaucrats and

professionals

• Unique customer base which provides a cushion during the down turn in the steel cycle.

• Proximity to port provides logistical advantage

• Major customers within a small radius

• Long term relationship with Australian Suppliers

• Plants for co generation of power being set up

• Ongoing acquisition of coal blocks providing supply security

CONSISTENTLY DIVIDEND PAYING

SINCE INCEPTION

Present Activities

• Setting up of co generation plants to produce power

• Foray into shipping and logistics – setting up own jetty in Goa

• Singapore operations to provide better grasp over emerging opportunities

• Acquisition of overseas coal blocks

Let us not forget our legacy

We should build on it for our future generations to read the edicts of friendship and prosperity

that we write today !

Registered & Corporate Office204, Elgin Chambers,1 A, Ashutosh Mukherjee Road,

Kolkata 700 020, West Bengal, INDIAPhone: +(91)-33- 2486 6038/39 Fax:+(91)-33- 2486 6041

E-mail: info@globalcoke.inWebsite : www.globalcoke.in

Unit IAdministrative Office :Prasham Building, K. R. Gandhi Marg, Rajkot 360 001, Gujarat, INDIA

Phone: +(91)-281- 2490 223/4 Fax:+(91)-281- 2490 226Works : Village Khiri, Taluka Jodiya, Jamnagar, Gujarat, India

Phone : +(91) 2893 286431 / 286432 / 286 433

Unit IIAdministrative Office : 2G, Sesaghor, 20 EDC Complex, Patto, Panaji – 403001

Phone +(91) 832 2437752 / 3224646 Fax : + (91) 832 243 7751Works:Village Vazare, Taluk Dodamarg, Sindhudurg, Maharashtra, India

International Operations :

Global Minerals & Metals Pte. Limited50 Raffles Place # 27 -04A Singapore Land Tower Singapore 048623

Phone +(65) 62209321 Fax +(65) 62209322

Logistics Division

Global Seaways (P) Ltd.Administrative Office : 2G, Sesaghor, 20 EDC Complex, Patto, Panaji – 403001

Phone +(91) 832 2437752 / 3224646 Fax : + (91) 832 243 7751

Global Coke Limited (An ISO 9001-2008 company)

Thank You