1. Australian Perspectives on Low Emissions Coal Technologies Mr Stewart Butel Managing Director, Wesfarmers Resources Limited Chairman, ACA Low Emissions Technologies Limited 16 October 2014

2. Ranking of Commodities in the world economy Source: IntierraRMG for the International Council on Mining and Metals 4 2 12 months to mid 2013 CommoditiesMINED (‘000t) AVERAGE PRICE (US$/t) VALUE (US$ bn) Coal 7,800,00085663 Iron Ore 1,900,000130247 Copper 17,0007,100121 Gold 2.6542,300,000112 Bauxite 260,00035091 Nickel 1,70014,00024 Zinc 13,0001,80023 Platinum Group Metals 0.4830,300,00015 Diamonds 0.025580,000,00014 Lead 3,6002,0007 Top Ten Total9,995,000(132)1,317

3. Fossil fuels will be important for a long time to come The world's remaining energy resources will not constrain the projected energy demand growth to 2035 & beyond, but large-scale investment is required Total remaining recoverable resources Proven reserves Cumulative production to date CoalNatural gasOil 3 050 years 233 years 178 years 142 years 61 years 54 years Source: International Energy Agency, World Energy Outlook 2013 3

4. Australian Government’s Energy White Paper December 2013 – Issues Paper released for public comment September 2014 – Green Paper released Late 2014 or early 2015 - Energy White Paper to be released 4 “The IEA forecasts that fossil fuels will continue to provide a significant share of global stationary energy generation, which is largely driven by economic growth in emerging economies such as China and India. This means there will be a need to continue to develop lower emissions fossil fuel technologies such as carbon capture and storage (CCS) and take-up various high efficiency low emissions production techniques.” Australian Government’s Energy White Paper Issues Paper

5. Improve efficiency, then deploy CCS Source: IEA Insights Series (2013), 21 st Century coal: advanced technology and global energy solutions 5

6. Global CCS Projects - Overview PROJECTTECHNOLOGYLOCATIONSCALECOSTSTATUS Abu Dhabi Carbon Capture, Utilisation & Storage Project CO 2 capture (from Direct Reduction Iron facility) with Enhanced Oil Recovery (EOR) & storage Abu Dhabi, United Arab Emirates 0.8 million tonnes per annum (MTPA) CO 2 capture used for EOR US$122.5 M for CO 2 dehydration & compression facility only Note: Direct Reduction Iron facility already removes CO 2. This stream is currently vented Execution (expected capture from 2016) Boundary Dam Sub-critical coal Shell Cansolv PCC Retrofit Saskatchewan, Canada 110 MW 1 MTPA EOR US$1.13 B World’s first large scale project Commissioning FutureGen 2.0 Sub-critical coal Oxyfuel Retrofit Illinois, USA 200 MW 1.1 MTPA Saline Reservoir US$1.65 B Awaiting Final Investment Decision ( FID) Gorgon LNG Project Pre-combustion capture / amine capture process Barrow Island, Western Australia 3.4 - 4.1 MTPA Saline Reservoir US$2 B World's largest commercial-scale CO 2 injection facility Construction (commence injection 2015) Kemper County IGCC coal Pre-combustion Newbuild Mississippi, USA 582 MW 3.5 MTPA EOR US$5.5 B Construction (complete 2015) Petra Nova Sub-critical coal Mitsubishi Heavy Industries PCC Retrofit Texas, USA 250 MW 1.4 MTPA EOR US$469 M Costs per USDoE World's largest post-combustion CO 2 capture (PCC) system for an EOR project Construction (commenced July 2014) Sinopec Shengli Fluidised bed coal PCC Retrofit Shandong, China ~250 MW 1 MTPA EOR To be finalised in Front End Engineering & Design (FEED) FEED Awaiting FID White Rose Supercritical coal Oxyfuel Newbuild North Yorkshire, UK 426 MW 2 MTPA Depleted Oilfield To be defined as part of FEED Define Stage (FEED) Yanchang Integrated CCS Gasification Pre-combustion Newbuild Shaanxi, China 0.46 MTPA from chemical production EOR To be defined as part of FEED First capture phase began in 2012 and pilot injection testing under way Define Stage 6

7. COAL21 Fund World-first voluntary levy on coal producers Facilitating early demonstration of low emissions coal technologies Targeted co-investment with other stakeholders (Government, electricity generators, equipment suppliers, other industry investors) Strategic approach: Proving storage in Australia Engagement with projects actually sequestering CO 2 Promoting multi-sector involvement in CCS Promoting community acceptance of CCS and coal’s ongoing use Reducing greenhouse gas emissions from coal mining operations 7

8. Examples of COAL21 Fund Projects 1.Capture projects 2.Storage projects 3.Research and Development (R&D) projects 4.Fugitive emissions projects 8

9. Demonstration project - Callide Oxyfuel Objective Retrofit oxy-fuel technology to 30MW boiler at Callide A power station Operate for 2 years Status Plant commissioning completed Dec 2012 8,000 hours operation in full oxy mode Complete demonstration by Feb 2015 9

10. Storage Projects Qld Carbon Geostorage Initiative Objective Identify and assess sites for the safe, long-term geological storage of CO 2 in Queensland Surat Basin Status Funding commitments being confirmed NSW Storage Assessment Objective Identify and assess sites for the safe, long-term geological storage of CO 2 in NSW Status Six wells drilled in key geological basins Data analysis in progress Otway R&D 65,000 tonnes CO 2 stored in depleted gas field Ongoing R&D on aquifer storage 10 Potential CO 2 Storage Areas – Qld Potential CO 2 Storage Areas – NSW

11. Storage Projects (continued) Surat Basin Carbon Transport and Storage Company (CTSCo) Surat Basin Integrated CCS project - Feasibility Study Objective Demonstration to safely and securely sequester CO 2 into the precipice sandstone of the Surat Basin, Queensland Status Feasibility Study Stage to commence shortly

12. Research & Development Australian National Low Emissions Coal (ANLEC) R&D work Objective Broad based applied R&D program covering key CO 2 capture and geological storage technologies in support of demonstration projects Status All programs progressing well Micronised Refined Coal fuel for a Direct Injection Carbon Engine (MRC-DICE) Objective Atomisation and combustion tests in a 1MW scale test engine Status Funding commitments now confirmed 12

13. Fugitive Emissions Objective Demonstrate safe deployment of Ventilation Air Methane (VAM) abatement technologies at underground coal mines Status Initial high level risk assessment complete Suite of four projects initiated 13 World’s first VAM demonstration Power Plant at BHP Billiton’s West Cliff Colliery (MEGTEC VOCSIDISER® technology) Demonstration of Corkys VAM – Regenerative After Burner (VAM-RAB®) technology at Centennial Mandalong mine

14. Concluding comments Coal extraction and utilisation are set to continue to expand over the next two decades Coal has an important role in a secure and sustainable energy future but it will ultimately need to be a low carbon future Increasingly, the focus for coal and other fossil fuel use will be China, India and the rest of Asia CCS is not a coal technology but one relevant to all fossil fuels and heavy industrial plant To reduce the cost of CCS we need to incentivise high efficiency and low emissions technologies rather than just focus on CCS Demonstration, R&D and knowledge transfer activities will remain important For Australia storage is a priority as well as continued contribution to the international CCS R&D and demonstration effort. 14