You are on page 1of 6

ORE RESERVES & MINERAL RESOURCES

January 2009

Australian Mineral Resources and Ore Reserves in this report are reported in accordance with the
2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
(the JORC Code), December 2004. South African and Colombian Mineral Resources and Ore
Reserves have been estimated and reported in accordance with the South African Code for
Reporting of Mineral Resources and Mineral Reserves (SAMREC Code), this being similar to the
JORC Code with only minor variations. Canadian Mineral Resources and Ore Reserves have been
prepared in accordance with the Canadian Securities Administrators National Instrument 43-101
Standards of Disclosure for Mineral Projects (NI 43-101). The term Ore Reserves as defined in
the JORC Code has the same meaning as Mineral Reserves as defined in the Canadian Institute
of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and
Mineral Reserves with reference to Paper 88-21 Guidelines.

The Coal Resource and Coal Reserve Statement at 30th of June 2008 is consistent with these
Codes and is based on the Xstrata Coal Resource and Reserve Estimation and Reporting
Standard, Version 30/06/2007.

Coal Resource and Coal Reserve information in the tables below is based on information
compiled by Competent Persons (as defined by the JORC & SAMREC Codes) and Qualified
Persons (as defined by NI 43-101).

Each of the Competent Persons has the appropriate professional membership and the relevant
experience in relation to the Mineral Resources and/or Ore Reserves being reported by them to
qualify as a Competent Person as defined in the relevant Code. The Competent Persons have
consented to the inclusion in the report of the matters based on their information in the form
and context in which it appears.

The Mineral Resources and Ore Reserves figures in the following tables are as at 30 June 2008.

Metric units are used throughout. All data is presented on a 100% basis. All tonnage
information has been rounded to reflect the relative uncertainty in the estimates; there may
therefore be small differences in the totals. Mineral Resources are reported inclusive of those
Mineral Resources modified to produce Ore Reserves.

Commodity prices and exchange rates used to estimate the economic viability of Ore Reserves
are based on long term forecasts applied at the time the estimate was calculated.

Resource and Reserve statements have been reviewed and the relevant data extracted and
compiled by Malcolm Cox, Xstrata Coal (FAusIMM).
Definitions

The following definitions (as per the JORC Code 2004) or similar, have been applied in
estimating and reporting the Ore Reserves and Mineral Resources position of the Xstrata Coal
disclosed within this document. The terms Coal Resources and Coal Reserves have been
substituted in the tables for the terms Mineral Resources and Ore Reserves, the subdivisions of
which are consistent.

Mineral Resource: a concentration or occurrence of material of intrinsic economic interest in or


on the Earths crust in such form, quality and quantity that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated or interpreted from specific geological
evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured categories.

Inferred Mineral Resource: that part of a Mineral Resource for which tonnage, grade and
mineral content can be estimated with a low level of confidence. It is inferred from geological
evidence and assumed but not verified geological and/or grade continuity. It is based on
information gathered through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or of uncertain quality and reliability.

Indicated Mineral Resource: that part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
The locations are too widely or inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be assumed.

Measured Mineral Resource: that part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough to confirm geological and
grade continuity.

Ore Reserve: the economically mineable part of a Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses, which may occur when the material is
mined. Appropriate assessments and studies have been carried out, and include consideration of
and modification by realistically assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These assessments demonstrate at the time of
reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of
increasing confidence into Probable Ore Reserves and Proved Ore Reserves.

Probable Ore Reserve: the economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. It includes diluting materials and allowances for
losses which may occur when the material is mined. Appropriate assessments and studies have
been carried out, and include consideration of and modification by realistically assumed mining,
metallurgical, economic, marketing, legal, environmental, social and governmental factors. These
assessments demonstrate at the time of reporting that extraction could reasonably be justified.

Proved Ore Reserve: the economically mineable part of a Measured Mineral Resource. It includes
diluting materials and allowances for losses which may occur when the material is mined.
Appropriate assessments and studies have been carried out, and include consideration of and
modification by realistically assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These assessments demonstrate at the time of
reporting that extraction could reasonably be justified.
Coal
Coal Australia
30 June 2008 (total mine basis)
Coal Reserves Coal Resources

Recoverable Marketable
Mining Proved Probable Proved Probable Measured Indicated Inferred Competent
Name of Operation Ownership Method Commodity (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) Person (aa)

Coal - June 2008


Oakbridge Group Thermal Coal 202.9 36.0 134.1 33.0 781.1 442.5 613
Bulga OC 68.3% OC Thermal Coal 58.5 - 37.4 - 187.3 67.7 6 PG/NB
Bulga Undergrounds (a) 68.3% UG Thermal Coal 142.3 32.5 95.3 30.5 554.5 335.7 536 PG/NB
Baal Bone OC 74.1% OC Thermal Coal - - - - 3.5 - - JMB/NB
Baal Bone UG 74.1% UG Thermal Coal 2.1 3.5 1.4 2.5 7.6 17.0 9 JMB/NB
Running Stream OC 78.0% OC Thermal Coal - - - - 28.2 7.4 17 JHB
Running Stream UG 78.0% UG Thermal Coal - - - - - 14.7 45 JHB
Maquarie Coal Joint Venture 80.0% Thermal Coal 24.7 23.4 17.3 14.2 70.2 265.6 417
West Wallsend (b) UG Thermal Coal 21.8 23.4 14.4 14.2 64.7 54.5 - CFRP/NB
Westside (c) OC Thermal Coal 2.9 - 2.9 - 3.4 - - CFRP/NB
Cardiff Borehole UG Thermal Coal - - - - - 12.4 22 CFRP
Mitchells Flat (d) OC/UG Thermal Coal - - - - - 115.1 395 CFRP
Teralba UG Thermal Coal - - - - 2.1 83.6 - CFRP
Liddell Group 67.5% Thermal Coal 67.2 24.2 44.4 15.4 113.3 203.9 393
Liddell OC (e) OC Thermal Coal 67.2 24.2 44.4 15.4 113.3 183.3 160 MH/NB
Liddell UG UG Thermal Coal - - - - - 20.6 233 MH/NB
Cumnock (f) 100.0% Thermal Coal 1.5 258.3 1.1 163.4 311.1 147.2 -
Opencut Stage 3 OC Thermal Coal 1.5 - 1.1 - 0.9 - - CFRP/NB
Opencut Other (g) OC Thermal Coal - 258.3 - 163.4 306.1 104.8 - CFRP/NB
Underground UG Thermal Coal - - - - 4.1 42.4 - CFRP/NB
Mount Owen Complex 100.0% Thermal Coal 121.0 28.7 79.7 17.2 212.3 92.0 119
Mount Owen OC/UG Thermal Coal 57.8 26.1 36.0 15.7 75.6 43.8 43 KJW/NB
Ravensworth East (h) OC Thermal Coal 15.4 0.6 10.6 0.3 57.4 10.3 2 KJW/NB
Glendell OC Thermal Coal 47.8 2.0 33.1 1.2 79.3 38.0 74 KJW/NB
United (i) 95.0% UG Thermal Coal 5.0 - 3.7 - 47.1 33.3 20 RMD/NB
Ulan 90.0% Thermal Coal 126.0 66.9 118.7 60.2 211.4 554.1 16
Ulan OC OC Thermal Coal - - - - 50.2 23.5 11 RMD/NB
Ulan UG #3 (j) UG Thermal Coal 62.8 27.2 57.4 23.4 92.7 239.0 - RMD/NB
Ulan UG West (k) UG Thermal Coal 63.2 39.7 61.3 36.8 68.4 291.6 5 RMD/NB
Ravensworth Group Thermal Coal 15.3 38.8 15.3 25.5 93.5 12.9 -
Narama (l) 100.0% OC Thermal Coal 11.1 - 11.1 - 15.6 12.9 - JHB/NB
Ravensworth West (m) 100.0% OC Thermal Coal 4.2 38.8 4.2 25.5 77.9 - - JHB/NB
Mangoola (n) 100.0% OC Thermal Coal 146.6 21.0 116.6 16.8 161.6 22.6 314 KJW/NB
Tahmoor (o) 100.0% UG Coking Coal 46.4 40.6 157.6 66.9 - MI/DT
Ravensworth UG (p) 81.0% UG Thermal Coal 45.4 0.5 31.5 0.2 148.6 40.5 86 CFRP/PO
Subtotal - New South Wales 802.0 538.4 562.4 345.9 2,307.9 1,881.5 1,978

Oaky Creek Coking Coal 125.5 51.0 82.6 30.0 246.2 120.9 160
Oaky Creek OC 55.0% OC Coking Coal - - - - 34.7 25.3 7 TH
Oaky No. 1 (q) 55.0% UG Coking Coal 30.0 - 19.5 - 61.7 8.8 6 TH/GB
Oaky North (r) 55.0% UG Coking Coal 95.5 51.0 63.1 30.0 136.6 51.9 22 TH/GB
Other 55.0% UG Coking Coal - - - - 13.2 33.5 117 TH
Redrock EPCs (s) 75.0% UG Coking Coal - - - - 1.4 7 TH
NCA 55.0% Coking/Thermal Coal 105.4 108.9 79.9 73.9 326.7 589.3 625
Newlands OC OC Thermal Coal 36.7 24.1 26.8 15.0 102.6 91.7 92 TH/WH
OC Coking Coal 13.3 16.5 9.3 10.3 21.9 35.3 39 TH/WH
Newlands Northern UG (t) UG Thermal Coal 23.8 17.6 18.3 13.0 140.7 1.1 - TH/WH
Newlands Southern UG UG Thermal Coal - - - - 5.4 - - TH/WH
Newlands Suttor Ck UG (u) UG Thermal Coal - 42.3 - 29.0 - 121.6 - TH/WH
Newlands Other OC/UG Thermal Coal - - - - 2.7 107.2 337 TH
OC/UG Coking Coal - - - - 1.1 70.6 102 TH
Collinsville OC (v) OC Thermal Coal 19.9 6.2 16.9 5.3 27.9 21.3 6 MB/WH
OC Coking Coal 11.7 2.2 8.6 1.3 23.5 15.7 9 MB/WH
Collinsville UG (w) UG Thermal Coal - - - - 0.1 73.0 20 MB
UG Coking Coal - - - - 0.8 51.8 20 MB
Cook (x) 100.0% UG Coking/Thermal Coal - - - - - 86.0 831 KJW
Rolleston (y) 75.0% OC Thermal Coal 142.4 34.9 142.4 34.9 176.3 192.2 162
Rolleston ML 75.0% OC Thermal Coal 142.4 34.9 142.4 34.9 162.2 61.1 23 TH/GB
Rolleston MDL & EPCs 75.0% OC Thermal Coal - - - - 14.1 131.1 139 TH
Togara North 33.3% Thermal Coal - - - - 303.8 376.8 460
Togara North OC OC Thermal Coal - - - - 35.2 22.2 30 KJW
Togara North UG UG Thermal Coal - - - - 268.6 354.6 430 KJW
Wandoan (z) 75.0% OC Thermal Coal 60.0 480.0 45.0 350.0 116.6 875.4 1,538 RJ/RH

Subtotal - Queensland 433.3 674.8 349.9 488.8 1,169.6 2,240.6 3,776

Subtotal - Coal Australia 1,235.3 1,213.2 912.3 834.7 3,477.5 4,122.1 5,754

Definitions
OC = opencut; UG = Underground

Notes:
- The estimates of Coal Resources and Reserves presented in this table have been carried out in accordance with the 2004 Australasian Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves (The JORC Code) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists
and Minerals Council of Australia.
- Reserves are a subset of Resources and are included in the Resource estimate. Reserves are NOT to be deducted from Resources.
- The Resource and Reserve figures tabulated have been stated on a total mine basis as at 30 June 2008, except for Tahmoor which is reported as at 30th June 2007 (see note below).
- Resources and Reserves stated on a total mine basis include interests in Resources and Reserves attributable to minority interests in controlled entities and the interests of joint venture
partners.
- Figures are subject to rounding and therefore totals may not add up.
- Unless otherwise stated, the product yields used to estimate Marketable Reserves were derived from the Resource Mastor software developed by A&B Mylec. Inputs to this model are
coal ply thickness and dilution. The model includes adjustments for plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and includes the
closest large diameter borehole data to each mining block.
- Coal Resources are contained within the Sydney Basin (New South Wales), the Bowen Basin (Queensland) and the Surat Basin (Wandoan, Queensland).
- Coal Resources have been estimated for potentially mineable seams within mining leases or exploration licences and are limited by major cadastral, geological and economic boundaries.
- Coal Resources are also constrained by the occurrence and quality of geological information.
- Coal Resources exclude areas where the seam has been affected by igneous bodies, extracted by mining and areas where coal has been sterilised by mining to 30 June 2008.
- Coal Resources are reported for the full coal seam thickness to a minimum thickness of typically 0.3m to 0.5m for open cut Resources, and 1.5m to 2m for underground Resources.
- Reserves and Marketable Reserves are quoted on an 'as-received' moisture basis, except Tahmoor which is stated on an 'air-dried' basis.
- Resources do not include out-of-seam dilution. Underground Resources are typically reported on a full seam or working section basis, and may contain a small amount of intraseam
partings material.
- Resource tonnes have been reported using an appropriate in situ moisture basis for each deposit, ranging from 3% to 10% moisture excluding Wandoan that is reported at 12% and
Rolleston that is reported at an insitu moisture up to 19%.
- Coal Resources have been re-estimated in 2008 for inclusion in this summary table except where otherwise stated. Revision of the totals include changes to classifications of Resource
status due to exploration, geological reinterpretation and remodelling and changes to lease holdings.
- Changes and notes relevant to the estimation of Resources and Reserves are listed below for specific projects.

(a) Bulga Underground


Reserve reduction due to changes in underground layouts -8.7Mt ROM. Resource increase due to model changes +18.8Mt.
(b) West Wallsend
Resources reduced due to coal sterilised between LW panels and development -1.9Mt; Mine plan changes reduced Reserves by 1.2Mt.
(c) Westside
Additional coal recovered from old underground workings and update in the geological model gave an increase in Reserve and Resources.
(d) Mitchells Flat
Update to the geological model and re-correlation of seams increased Resources by +238Mt.
(e) Liddell Opencut
Reserve decrease due to pit endwall berm changes of -4.3Mt; Resources increase due to recognition of additional opencutable areas +127Mt.
(f) Cumnock
Cumnock ownership reduction to 90% completed during December 2008.
(g) Cumnock Opencut Other
Washplant pit added to Reserve +1.0Mt; Underground Resource converted to opencut Reserve +258Mt.
(h) Ravensworth East
Some seams previously supplied on a ROM basis to the local power station are now planned to be washed for export resulting in a decrease in Marketable Reserves of -2.1Mt.
(i) United
Reserve reduction resulting from identification of faulting in a mine panel -0.9Mt; Resource reduction of -2.4Mt due to extension of sills.
(j) Ulan #3 Underground
Reserve reduction, main headings stepped around igneous intrusion, eastern longwall panels affected by Spring Gully Fault -1.5Mt.
(k) Ulan West Underground
Reserve increase due to panel changes in main heading alignment affecting last four panels +4.7Mt.
(l) Narama
Xstrata ownership of Narama was changed to 100% effective 15 January 2008. Reserves increase due to increased pit recovery +4.8Mt.
(m) Ravensworth West
Deeper Resources converted to Opencut Reserves +29Mt.
(n) Mangoola
The Anvil Hill tenements were purchased from Centennial Coal effective 17th October 2007 and subsequently renamed Mangoola.
(o) Tahmoor
Xstrata formally took control of Tahmoor on 30th October 2007. Validating of all geological information has not progressed sufficiently to enable an update to Resources and Reserves to
be carried out to JORC standards. Resources for Tahmoor are therefore reported as at 30th June 2007. Reserves are only reported as Recoverable Reserves. Centennial Coal previously
published Marketable Reserves of 74Mt as at 30 June 2007, however Marketable Reserves are not reported due to ongoing work to resolve inconsistencies identified in previous reporting
identified as part of post acquisition verification work.
(p) Ravensworth Underground
Resource Pacific Pty Ltd, owner of Newpac Colliery, was purchased effective 20th February 2008. The colliery was subsequently renamed Ravensworth Underground Mine. Ownership
reduced to 70.2% effective 21 October 2008.
(q) Oaky Creek No. 1 Underground
Reserve reduction from faulting in mine area and mine plan changes. Oaky Creek uses a predicted yield based on laboratory F1.60 yield with an efficiency adjustment based on feed
ash, calibrated to historical performance.
(r) Oaky Creek North Underground
Reserve increase from mine plan changes. Oaky Creek uses a predicted yield based on laboratory F1.60 yield with an efficiency adjustment based on feed ash, calibrated to historical
performance.
(s) Red Rock
Exploration of Resources adjacent to Oaky Creek No. 1 Colliery allow reporting of small new Resource.
(t) Newlands Northern Underground
Increase in Reserves from new mine planning in the central underground area +17.6Mt. Change in mine plan resulted in Resources increase in Newlands underground by including coal
previously considered sterilized.
(u) Newlands Suttor Creek Underground
Reserve reduction from faulting in mine area identified by seismic surveys, and some Reserve moved to opencut areas -17Mt.
(v) Collinsville Opencut
Product yield used to estimate Marketable Reserves is based on reconciled historical performance.
(w) Collinsville Underground
Resource increase from additional drilling and exploration +13Mt.
(x) Cook
Coal under the old Leichhardt Colliery and Washplant mining lease areas have been excluded from Resources as they are now the subject of the Caledon lease agreement.
(y) Rolleston
Additional drilling, model review and mine plan changes have been carried out and Reserve and Resource status upgraded giving +33.7Mt and +182Mt respectively. Inferred Resources
decreased due to classification upgrade and change in modelling technique -328Mt. Rolleston coal is sold without washing so product yield used to estmate Marketable Reserves is 100%.
(z) Wandoan
Completion of mining studies at Wandoan allowed reporting of Reserves +540Mt. Additional drilling and correlation work resulted in an upgrade of Resource classifications and increase in
Resources +1400Mt.

(aa) Competent Person for Coal Resource / Competent Person for Coal Reserve.

Competent Persons

CFRP = Charles Parbury, Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)
DT = Dave Thomas, Principal Consultant, IMC Mining Solutions Pty Ltd, (AusIMM)
GB = Greg Bernasconi, Manager Mine Planning, Xstrata Coal Queensland (AusIMM)
JHB = John Bryan, Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)
JMB = Janet Bartolo, Senior Geologist, McElroy Bryan Geological Services Pty Ltd
KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)
MB = Mal Blaik, Principal Consultant, JB Mining Services Pty Ltd. (AusIMM)
MH = Marianne Harvey, Principal Consultant MEGMS (AusIMM)
MI - Malcolm Ives, Geologist, Centennial Coal Company Limited, (AusIMM)
NB = Nicole Brook, Business Development Manager, Xstrata Coal NSW (AusIMM)
PG = Peter Graham, Senior Geologist, Bulga Coal (AusIMM)
PO = Peter Osterman, Technical Services Coordinator, Xstrata Coal NSW (AusIMM)
RJ = Rowan Johnson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)
RH = Ross Haupt, Co-Director, Consulting Mining Engineer, Xenith Consulting (AusIMM)
RMD = Robert Dyson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)
TH = Todd Harrington, Principal Geologist - Operations, Xstrata Coal Queensland (AusIMM)
WH = Warren Hughes, Principal Mining Engineer, Xstrata Coal Queensland (AusIMM)
Coal South Africa
30 June 2008 (Total Mine Basis)
Coal Reserves Coal Resources

Recoverable Marketable

Mining Proved Probable Proved Probable Competent Measured Indicated Inferred Competent
Ownership Commodity
Method (Mt) (Mt) (Mt) (Mt) Person * (Mt) (Mt) (Mt) Person *
Name of Operation

Coal
Tweefontein Division 171.3 0.0 91.8 0.0 ID 723 10 45 MS
Tweefontein (a) 79.8% UG/OC Thermal Coal 171.3 0.0 91.8 0.0 723 10 45
Southstock Division 79.3 1.1 42.3 0.8 ID 238 84 8 MS
South Witbank (b) 79.8% UG/OC Thermal Coal 64.7 1.1 35.8 0.8 136 68 3
Tavistock (c) 79.8% UG/OC Thermal Coal 14.6 0.0 6.6 0.0 102 16 5
Goedgevonden Division (d) 74.0% UG/OC Thermal Coal 368.0 0.0 197.9 0.0 ID 522 28 68 MS
iMpunzi Division 184.7 26.3 102.5 12.6 ID 369 41 17 MS
Phoenix (e) 79.8% UG/OC Thermal Coal 2.5 0.0 1.4 0.0 92 3 4
ATC (f) 79.8% UG/OC Thermal Coal 6.4 0.0 4.2 0.0 27 2 0
ATCOM (g) 79.8% OC/UG Thermal Coal 69.7 0.0 42.0 0.0 132 1 0
ATCOM East (j) 79.8% OC/UG Thermal Coal 106.0 26.3 54.8 12.6 118 36 12
Mpumalanga Division 31.5 0.0 21.0 0.0 ID 211 0 21 MS
Tselentis (h) 79.8% UG/OC Thermal Coal 13.6 0.0 9.0 0.0 56 0 0
Spitzkop (i) 79.8% UG/OC Thermal Coal 17.9 0.0 11.9 0.0 155 0 21
Undeveloped (k) 79.8% Thermal Coal 0.0 0.0 0.0 0.0 185 846 686 MS
Subtotal - South Africa 835 27 456 13 2,248 1,008 844

Definitions
OC = open-cut; UG = underground

Notes
- The Coal Resource and Coal Reserve figures tabulated have been stated on a total mine basis as at 30 June 2008.
- Coal Resources are inclusive of those Coal Resources which have been modified to produce Coal Reserves.
- The estimates of Coal Resources and Coal Reserves presented in this table have been estimated according to the SAMREC Code (South African Code for Reporting of Coal
Resources and Coal Reserves).
- Coal Resources and Coal Reserves stated on a total mine basis include interests in Coal Resources and Coal Reserves attributable to minority interests in controlled entities and
the interests of joint venture partners. Figures are subject to rounding and therefore totals may not add up.
- Coal Resources and Recoverable Coal Reserves are quoted on an air dried moisture basis. Extractable Coal Reserves are reported as Recoverable Coal Reserves.
- High grade Marketable Coal Reserves were based on a 6000kCal NAR product. Atcom East based on a 5800kCal NAR product with a secondary, 21.5Mj/kg CV domestic power
station (Eskom), product.
- Low grade Marketable Coal Reserves based on a primary 21.5/22MJ/kg (Air-dried) product.
- Product yields used to estimate Marketable Reserves were derived from the "Limn Model" software. Inputs to this model are coal ply and in-seam dilution data, processed in the
model. The model takes into account plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and where applicable, large diameter
borehole data is used.
- Reserves are reported on an extractable and saleable basis.
- Valid prospecting rights have been issued for all the undeveloped Coal Resources. Some prospecting rights are being renewed, while application has been made for a number of
mining rights.

(a) Tweefontein: ROM Production -8.9 Mt. Reserves increase by 4.2Mt: Reduced UG 1 seam Reserves. UG 4 seam stooping Reserves removed due to unfavourable geotechnical
conditions. Lower quality no.5 seam included in Makoupan OC. Increase of Butterfly OC footprint. Other increases due to additional drilling and remodelling.
(b) South Witbank: ROM production -4.5Mt. A reduction in Reserves of -5.7Mt: Stooping Blocks removed due to geotechnical concerns; Mining Blocks removed from mine plan; and
increase in 4 seam Reserves due to better extraction in OC. 18.4 Mt Increase in Resources: Reporting of upper seams, reduction in no.4 seam and no.2 seam Resources due to
additional drilling and remodelling.
(c) Tavistock: ROM Production -3.8Mt, Drilling and remodelling -0.3Mt, Stooping Reserves removed due to geotechnical concerns -3.4Mt, Increase of 23Mt of upper seam Resources
not previously reported.
(d) GGV: ROM Production -1.9Mt, 1.1 Mt Reserve and 1.3 Mt Resource gain from infill drilling and remodelling.
(e) Phoenix - ROM Production - 1.1Mt. 5Mt and 3.6Mt reduction in Reserves and Resources respectively due to: Sub outcrop drilling in opencast areas and remodelling; and Mining
blocks removed from mine plan.
(f) ATC: ROM Production -2.4Mt. 5.3 Mt and 2.9Mt reduction in Reserves and Resources respectively due to: secondary extraction areas removed from mine plan due to geotechnical
considerations; infill drilling and remodelling; and mining blocks removed from mine plan.
(g) ATCOM: ROM Production -3.9Mt.
(h) Tselentis: ROM Production - 3.4Mt, Reserve loss of 2.9Mt - graben Reserves removed from mine plan at Tselentis North, Tselentis South Reserve limited to avoid environmentally
sensitive areas.
(i) Spitzkop: ROM Production - 3.3Mt.
(j) ATCOM East: Swap of the 16% DTJV share for ATCOM East (effective 28 February 2008) resulted in an increase in Reserves of 83Mt (Previously the unapproved DMO project),
with a 23Mt decrease of Resources.
(k) Undeveloped Resources: Oogiesfontein included (92Mt), Northern Free State prospecting right relinquished (1070Mt), Elandspruit remodelled (-7.7Mt).

* Competent Persons:
Coal Reserves:
ID Ian Douglas, Xstrata Coal (AusIMM, SAIMM)

Coal Resources:
MS Marius Smith, Xstrata Coal (SACNASP)
Coal Americas
30 June 2008 (total mine basis)
Coal Reserves (a) Coal Resources

Recoverable Marketable (b)


Mining Proved Probable Proved Probable Measured Indicated Inferred Competent
Name of Operation Ownership Method Commodity (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) Person

Coal - June 2008


Carbones del Cerrejon Thermal Coal 630.1 181.3 633.3 185.4 1,361.9 834.3 57
Cerrejon Mine (c) 33.3% OC Thermal Coal 630.1 181.3 633.3 185.4 1,361.9 834.3 57 GH
Donkin Mine Alliance - - - - - 227 254
Donkin Coal Mine (d) 75.0% UG Thermal/Coking Coal - - - - - 227 254 KW

Subtotal - Coal Americas 630.1 181.3 633.3 185.4 1,361.9 1,061 311

Definitions
OC = Opencut; UG = Underground

Notes:
(a) Reserves are ROM (Run of Mine) Reserves - as mined reserves taking into account geological losses, mining losses, contamination and as mined moisture adjustments.
Reserves are reported on a ROM moisture basis. Reserves are included in the Resources within the mine plan.
Resources are reported on an in situ moisture basis. Resources within the mine plan include Reserves .
(b) Saleable Reserves: As sold basis are Reserves adjusted for yield losses in the preparation plant (if applicable) and converted to a saleable moisture basis.
The Coal Resource and Coal Reserve estimates tabulated above are stated on a total mine basis as at 30 June 2008.
(c) Cerrejon Resources are Gross Tons in Situ Resources (GTIS) . The Coal Resources include coal for which the continuity, quality and mineability are established but are
outside the current life of mine plan. These Resources comply with current and foreseen mining and marketing criteria and have economic potential.
The estimates of Coal Resources and Coal Reserves presented in this table for Cerrejon have been prepared in accordance with the SAMREC Code (South African
Code for Reporting of Coal Resources and Coal Reserves).
(d) Resources for the Donkin Coal Mine are reported in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves with reference
to Paper 88-21 guidelines.

Competent Person for Resources and Reserves


GH = German Hernandez, APS Geology Superintendent, Carbones del Cerrejon (GSSA) - (Resources and Reserves)
KW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM) - (Resources)

You might also like