Port Waratah Coal Services Limited

OperationsThroughput for 2011 was 97.8 Mtpa, against a budget of 106.5 Mtpa and nameplatecapacity of 113 Mtpa. This result represented an increase of 2.9% on the 2010 yearresult of 95.1 Mtpa. The difference between actual throughput and nameplate capacityrepresents interface and performance issues associated with the operation of the HunterValley Coal Chain.Kooragang TerminalFavourable operational performance measures for Kooragang Terminal were achievedthroughout the year. A summary of terminal performance achieved follows:Measure Target ActualTrain cancellations % 2.40% 0.90%Gross Unload Rate tonnes per hour 7,000 6,076Gross Load Rate tonnes per hour 4,800 5,190Integration of capital expansion equipment at the terminal progressed throughout the year.The coordination between the Terminal Operations and Maintenance teams and theKooragang Expansion Project team resulted in successful asset handover.Significant projects undertaken at Kooragang Terminal during 2011 include the upgrade topower and fibre optic networks, painting of plant and equipment and consolidation of controllogic systems.Carrington TerminalFavourable operational performance measures for Carrington Terminal were achievedthroughout the year. A summary of terminal performance achieved follows:Measure Target ActualTrain cancellations % 2.40% 0.90%Gross Unload Rate tonnes per hour 2,950 3,092Gross Load Rate tonnes per hour 1,970 2,294The Terminal Operations and Maintenance teams continued to maintain a focus on ensuringcoal dust and noise was kept to a minimum throughout the year. The environmental processand system improvements made to date, along with the proactive involvement of allCarrington Terminal team members are critical to continuing our environmental performance.Significant projects undertaken at Carrington Terminal during 2011 include the upgrade tocontrol logic systems and fibre optic networks, painting and upgrade of plant and equipmentand building refurbishment.LogisticsDuring 2011 the Logistics team contributed to the implementation of the Vessel Cycle Ratesystem for measuring the consumption of PWCS loading capacity, a vital system whichsupports the Long Term Commercial Framework. The Logistics team also assisted with thedevelopment of a planning strategy for Kooragang Terminal to maximise the effectiveness ofthe extended stockyard and additional berth which was put into operation in December 2011.ExpansionExpansion of PWCS’ coal terminal infrastructure continued during the year. The $670 Millionexpansion of the Kooragang Terminal, known as Project MPC, which was approved by theBoard in February 2010, was completed in December 2011. This expansion included theconstruction of a fourth shiploading berth and two half stockpile pads and has resulted inPWCS’ nameplate capacity increasing to 133 million tonnes from 1 January 2012.13