PORT WARATAH COAL SERVICES COMMUNITY NEWS

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David Murphy
6 years ago
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1 PORT WARATAH COAL SERVICES COMMUNITY NEWS Edition One 2017

for ways to refresh and reinvigorate this aspect of our work so that we can take more control of our safety outcomes.

2 WELCOME TO THE PORT WARATAH COAL SERVICES COMMUNITY NEWSLETTER Welcome to the first edition of our Community News for As I look forward to 2017 at this early point in the year, I want to share with you the key lessons I take from last year: The first is that we can never relax our safety effort in fact we must look for ways to refresh and reinvigorate this aspect of our work so that we can take more control of our safety outcomes. The second lesson is that our markets and business environment are more volatile and unpredictable than ever. This means that we have to become increasingly comfortable with uncertainty and change. As an example, at this time in 2016 the thermal coal spot price was around US$49, by November it peaked at around US$110 and currently it is approximately US$82. The third lesson is that where we put the right effort and resources toward a challenge, we have demonstrated repeatedly that we can be successful. One example of an improvement that has delivered significant benefit to our customers, is the improvement in vessel turnaround time. The 2016 average for contract vessels of 4.6 days (compared to 5.1 days in 2014 and 4.8 days in 2015) means a significant reduction in demurrage costs. Importantly, these improvements are the result of a business wide effort. Even at this early stage of the year we have a lot on our plate. You may be aware that Rio Tinto has announced that it has entered into a sale and purchase agreement for Coal and Allied with Yancoal Australia. This includes its interest in Port Waratah. The transaction is likely to take some time to complete, probably only in the third quarter of the year. We will continue to keep our stakeholders updated as the transaction progresses but at this stage we envisage very little change for Port Waratah and we will continue to operate as usual to safely deliver the services our customers expect. This edition features a snapshot of environmental performance in We are currently preparing our annual Sustainable Development Report which will include more detail about the year that was. We expect this to be available on our website in April We completed the Shiploader Replacement Project in February farewelling the old CCT shiploaders that served us well for 40 years. The execution of this high risk and complex project is commendable and I congratulate the project team on a job well done. Our commitment to sharing the value of our business with the community through our Community Investment and Partnership Programme continues in In early February we announced that more Hunter families will be provided with the same opportunity to participate in the DADEE programme in the future, with Port Waratah continuing to support the programme until The most exciting aspect of this partnership is the development of a new DADEE University Course for primary school and PE teachers which will drive the sustainability of the programme into the future. We have also hosted our first partners networking event, thank you to all our Community Partners who attended. I firmly believe we can all learn something from one another and I hope the opportunity was as valuable for your community based organisation as it was for our team. As always, I trust that you find this communication useful and invite you to provide us with feedback at any time. Kind regards, Hennie du Plooy, CEO

3 2016 ENVIRONMENT IN REVIEW AIR QUALITY We proactively work to continuously reduce emissions from our operations and our contribution to the Newcastle airshed. NOISE We proactively work to continuously reduce noise from our operations and our contribution to ambient and intrusive noise levels in residential areas. 56.8% reduction in total PM10 emissions since 2012/ GRAMS OF PM10 EMISSIONS per tonne of coal handled for 2015/2016 as per National Pollutant Inventory Reporting 108 PIECES OF MACHINERY WERE SURVEYED TO UPDATE SOUND POWER LEVELS This helps us set priorities on areas of the plant to best improve Port Waratah s noise profile. We also use this data in our noise model that has been continually refined for more than a decade.

4 WATER We have developed a consistent set of expectations across our operations that we meet. We are continually working to reduce our impact on the Hunter River by eliminating unlicensed events and improving the quality of stormwater overflows. ENVIRONMENTAL FOOTPRINT We work to create a positive environmental footprint and eliminate one off incidents. 86.1% of water consumed at Port Waratah was recycled water 85% of all waste generated by Port Waratah was recycled and diverted from landfill disposal On average a total of 18.9ML of water per day was consumed at Port Waratah 8.8 LITRES of potable water consumed per tonne of throughput 427 tonnes of metal 13,818kg 38 of oil & grease tonnes of timber 7,678kg of paper & cardboard reduction in waste disposed in landfill 22%compared to MILLION kwh reduction in electricity consumption compared to 2015 equivalent to the annual consumption of 326 Newcastle households

CONTINUATION OF PARTNERSHIP WITH DADEE Since 2014, Port Waratah has collaborated with the University of Newcastle (UON) and the Hunter Medical Research Institute (HMRI) to deliver the Dads and

5 CONTINUATION OF PARTNERSHIP WITH DADEE Since 2014, Port Waratah has collaborated with the University of Newcastle (UON) and the Hunter Medical Research Institute (HMRI) to deliver the Dads and Daughters Exercising and Empowered (DADEE) programme to over 260 families. The research programme encourages local fathers and daughters to improve their fundamental motor skills, social-emotional wellbeing, and relationship through engaging physical activities. We are proud to announce our support of the programme will now extend until Through a three-year partnership extension announced in February, Physical Education and Primary Education students at the UON can now be taught the programme s philosophies and strategies to become accredited DADEE facilitators. The funding will assist in ensuring the longevity of DADEE through the transition to a community-embedded sustainable model. Over the next three years, DADEE will be delivered to an additional 240 fathers and 320 daughters. To our knowledge, this translational research model hasn t been implemented anywhere else in the world. Most other programmes are funded through government or research trials and their shelf-life is limited by that arrangement, whereas DADEE should be truly sustainable by being embedded as a university course, lead investigator Professor Philip Morgan said. The world leading medical research to date has proven the DADEE programme to have significant, long-term positive effects across several areas. Both fathers and daughters showed increased physical activity levels after six months, with daughters additionally showing improved social and emotional wellbeing. Both fathers and daughters have improved physical activity levels, and the quality of the relationship is also benefiting, Chief Executive Officer of Port Waratah, Hennie du Plooy, said. Brad Belcher, one of the Port Waratah employees who has participated in DADEE, says his daughter really enjoyed being there and going to the weekly programme because it made physical activity fun. The next phase of the DADEE Partnership aligns with all four of Port Waratah s community investment objectives. Our goal is to create shared-value for our stakeholders and to seek to make a positive impact by working in partnership to make Newcastle a smart, liveable and sustainable city. The next phase of DADEE will go a long way to help us achieve our goal. As an ongoing partner, we hope to see further success and sustainability for the DADEE programme as it continues to improve the wellbeing of fathers and daughters across Newcastle. Below: (L to R) Employees Geoff Crook, Tony Murphy, and Brad Belcher with Port Waratah CEO Hennie du Plooy and DADEE Lead Chief Investigator Professor Philip Morgan

6 COMMUNITY PARTNERS NETWORKING EVENT

CARRINGTON SHIPLOADER REPLACEMENT PROJECT COMPLETE Over the past six months, Port Waratah s Carrington terminal has seen significant changes with the replacement of its shiploaders.

Delivered last July, the new shiploaders were successfully commissioned and are now integrated into everyday operations.

7 CARRINGTON SHIPLOADER REPLACEMENT PROJECT COMPLETE Over the past six months, Port Waratah s Carrington terminal has seen significant changes with the replacement of its shiploaders. Loading over 300 million tonnes since 1976, the three original shiploaders have been replaced with two modern shiploaders. Delivered last July, the new shiploaders were successfully commissioned and are now integrated into everyday operations. The older shiploaders were loaded onto the Happy Delta over the course of a week in February. The Happy Delta departed on 25 February This critical infrastructure project for Carrington represented a significant engineering, safety and logistical challenge to us. Due to the strong relationships, skills, and the professional approach of the owners team, the Carrington Terminal representatives, and our contracting partners responsible Above: The Happy Delta loaded with SL1 & SL2 for departure for constructing and commissioning the shiploaders, the new shiploaders are now operating successfully and, importantly, delivering the outcomes we expected from the project, said Development General Manager, Terry Tynan. The new shiploaders are an investment in the Carrington Terminal and demonstrate our commitment to safety, reliability, performance, and technology. The $60 million replacement project presents a number of economic and environmental benefits in the local community. As the Chief Executive Officer of Port Waratah, Hennie du Plooy, explains, Although the capacity of Carrington has not changed with the installation of the new shiploaders, they have been built to modern safety, environmental and technological standards.

8 2016 IN REVIEW IN 2016, PORT WARATAH LOADED: 94.4 MILLION TONNES FROM KOORAGANG TERMINAL 15.1 MILLION TONNES FROM CARRINGTON TERMINAL MILLION TONNES IN TOTAL 1,225 VESSELS 4 REHABILITATED AND CELEBRATED A NUMBER OF MILESTONES: YEARS OF OPERATION Replaced aging shiploaders with TWO NEW SHIPLOADERS designed to meet modern safety and environmental standards 7,000m 2 of land at the western end of the Kooragang Coal Terminal DEVELOPED A DIVERSITY STRATEGY to create a more inclusive and flexible workplace Produced on 100% recycled paper Cover Page: Port Waratah employees (L to R Tony Murphy, Brad Belcher & Geoff Crook), participants in the DADEE programme, 7 February 2017 If you would like to comment on Port Waratah Community News, please contact_us@pwcs.com.au FIND US ON

PORT WARATAH COAL SERVICES COMMUNITY NEWS

PORT WARATAH COAL SERVICES COMMUNITY NEWS Edition Two 2015 WELCOME TO THE PORT WARATAH COAL SERVICES COMMUNITY NEWSLETTER Halfway through the 2015 year, it is my pleasure to once again share with you an