POLISH POTENTIAL TO SUPPORT AUSTRALIAN MINING AND ENERGY PROJECTS Integrated offer of the leading Polish companies in the mining and energy sectors supported by the state institutions 1 August 2018
2 WHO WE ARE Leading Polish companies from the mining and energy sectors coming together with an integrated offer, supported by key Polish public and financial institutions. Ministry of Energy Ministry of Entrepreneurship and Technology Ministry of Foreign Affairs FINANCIAL PARTNER
3 Leading producer and supplier of mining machinery and equipment Complete solutions for underground mining, open-pit mining, transport and bulk material handling +100 years of experience in mining industry +5000 employees (+ 400 qualified engineers in R&D area) 11 production plants Successful acquisitions 16 companies +7 500 SHEARER LOADERS +212 000 POWERED ROOF SUPPORTS +375 ARMOURED FACE CONVEYORS +4 400 ROADHEADERS +4 400 km BELT CONVEYORS
4 10 successful years of Polish mining machines at Carborough Downs mine 2008: Kopex (currently part of Famur Group) installed longwall system to increase productivity at CD mine Total contract value was 131m AUD (~44% for Kopex) Under the contract, Kopex created a service center in Mackay, Australia. 149 pcs of powered roof supports (each 43t) during transport from Poland to Australia Carborough Downs, located in Central QLD
5 10 successful years of Polish mining machines at Carborough Downs mine Longwall depth: 180m underground Lenth of the system: 300m Seam ranges from 4.5 to 5.7m thick Output capacity: 4.9 mtpa Over 10 years of operations at Carborough Downs and achieving performance goals Compatibility test of longwall system Kopex powered roof supports, Eickhoff longwall shearer, Inbye armoured face conveyor, Tieffenbach control system
6 Towards INDUSTRY 4.0 with Smart Mine Program Designing, delivering and implementing integrated, automated systems, based on a digital twin (virtual clone) of the deposit and mine site FLAGSHIP PROJECTS AND INITIATIVES deposit 3D modelling, quality strategic designing and simulating, modern Deswik scheduling transport monitoring and managing, full synchronization between coal mines and coking plant predictive maintenance of underground mining machinery, collecting all data in one integrated system developing the process of the on-line production cycle monitoring, smart meters for weight measurement, RFID tags improving of efficiency of coal processing cycle, digitalisation and automation of the production mix, recognition of demand, integration with coking plant optimizing and automation of the production cycle in the coking plants increase safety level for underground workers, monitoring, proactive functions, cooperation with leading polish and international research centers
7 GENERAL Largest Polish mining development company Established in 1960 and now part of KGHM group world leading company in copper and silver production Export: 22 mining and tunneling export contracts in Europe, Asia and Africa SCALE PeBeKa has sunk more than 30 deep shafts for KGHM Polish Copper Over 1600 km of underground drifts and chambers for Polish mines with full technical infrastructure Over 1900 workers and its revenue reached over 526 million PLN in 2017 ($191m AUD) UNIQUE EXPERIENCE Complete range of services for mining investors from deep geological drilling through shaft sinking and lateral development up to all surface constructions and installations of modern mine Due to geological conditions all KGHM shafts were executed with ground freezing method, which makes PeBeKa master in this technique
Polish Potential to Support Australian Mining and Energy Project CONSTRUCTION OF GG-1 SHAFT COMPLEX Deepest shaft in the Polish copper basin (1351m, 7.5m inner diameter) Deepest ground freezing (down to 700m) Parallel construction of the shaft and central AC station of 30MW power (trigeneration mode) Polish Australian Energy Forum, 21 August 2018 8
9 EPC AND TECHNOLOGY PROVIDER for power generation 70 years of experience within the field of coal fired power plants Coal fired boiler technologies (PC, supercritical, CFB) Flue gas cleaning technologies (SCR Denox, Wet and semi-dry FGD, ESP, bag filters) Latest major projects: - EPC for coal fired unit at Chemical Works in Kędzierzyn-Koźle, Poland - EPC for 910 MW supercritical unit at Jaworzno PP, Poland - EPC for two biomass fired units in Vilnius, Lithuania - EPC for two 50MW coal fired units in Lombok, Indonesia - EPC for wet FGD plant at Ostrołęka PP, Poland Jaworzno 910MW unit, 30th March, 2018
10 EPC AND TECHNOLOGY PROVIDER within the scope of fossil fuel fired power generation 910 MW SUPERCRITICAL UNIT FOR JAWORZNO POWER PLANT IN POLAND: Contract signed by RAFAKO in 2014 Scope of work: EPC Technology and equipment delivered by RAFAKO: Boiler, SCR, FGD Plant, ESP. Scheduled date of putting into operation: November, 2019
11 INVESTMENTS EXPORT INSURANCE BANKING ENTREPRENEURSHIP TRADE AND FOREIGN INVESTMENTS
12 POLISH INTERNATIONAL DEVELOPMENT FUND INVESTMENT RISK SHARING TERMS AND CONDITIONS AMOUNT PROJECT SECTORS the Fund co-invests equity with Polish companies in their international ventures Full market exposure on its equity investment without recourse to partners, provides anticyclical financing Always a minority shareholder, exits after up to 10 years Typically from one to 20 milion euros per project All kinds of projects: greenfield, additional financing, mergers & acquisitions Nearly all sectors: manufacturing, distribution, services, worldwide
13 EXPORT CREDIT INSURANCE CORPORATION 1. MEDIUM- AND LONG-TERM EXPORT CREDIT INSURANCE Buyer and Supplier credit insurance 2. INSURANCE OF SHORT-TERM TRADE RECEIVABLES 3. BONDS Bonds are addressed to all Polish entrepreneurs that participate in tenders and conduct business both in Poland and abroad. 4. FACTORING Purchasing company s outstanding invoices and immediately advance cash to the business. In addition, combining credit risk protection, accounts receivables bookkeeping and collection services.
14 STATE DEVELOPMENT BANK OF POLAND Established in 1924 Rating of Polish State Treasury (FITCH S A- ) Equity: EUR 4.3 Bln (2017 ) Assets: EUR 17.8 Bln (2017 ) Foreign transactions executed in 60 countries (including Australia)
15 STATE DEVELOPMENT BANK OF POLAND DENMARK RUSSIA INDONESIA KAZAKHSTAN MEXICO Guarantee in Energy sector Guarantee in Energy sector EUR 81 m Power plant construction EUR 8 m Mining equipment USD 19 m Mining equipment Tailor-made financial structure adjusted to specific needs and purposes in the mining and energy projects Providing financing to commercial and public entities in Australia: Purchasing Polish good and services Investments in Australia (Polish company is a contractor) Investments by Polish-Australian JVs
16 POLISH INVESTMENT AND TRADE AGENCY (PAIH) FIRST SOURCE OF BUSINESS INFORMATION EXPORTERS Helping exporters to downsize the business risk when entering new markets GLOBAL NETWORK OF TRADE OFFICES INVESTORS Assisting companies in investment implementation PAIH Trade Office in Sydney focused on the two-way business traffic between Poland and Australia.
17 SUMMARY Long heritage and difficult mining conditions have driven Polish mining and energy sector to focus on high performance and innovation The quality of Polish technological solutions also stands the ground on the advanced Australian market (10-year Vale and Famur partnership) Polish mining-energy leaders (Famur, JSW, PeBeKa, Rafako) have come together with an integrated offer for the end-to-end implementation of complex projects They are supported by a financial partner the Polish Development Fund Group that integrates an offer of the leading Polish development institutions We believe that such complete approach creates a great opportunity to expand and build future Polish-Australian partnerships in the mining and energy projects
THANK YOU FOR YOUR ATTENTION! 18