Donaldson Coal Mine is located in Newcastle coal field in New South Wales, Australia and covers an area of 166 squarekilometers. Donaldson Coal Mine is approximately 25 kilometers away from Newcastle Port. The construction of Donaldson CoalMine started in 2001 and commercial production commenced in the same year.
Donaldson Coal Mine consists of one open-pit coal mine, Donaldson open-pit mine and two underground coal mines, Abel andTasman underground mines, which has an aggregate annual designed production capacity of 3.0 million tonnes. The open-pit mine ofDonaldson Coal Mine ceased mining operations in April 2013 due to reserve depletion and the underground coal mine, Tasman, wastemporally closed in July 2013 due to the high operational costs of the Tasman mine and the weak demand for coal products. Theonly underground mine, Abel, which is still under operation has an annual designed production capacity of 2 million tonnes. As ofDecember 31, 2013, Donaldson Coal Mine’s JORC-compliant reserves were approximately 136.9 million tonnes. As of the samedate, the mine’s marketable coal reserves were approximately 84.6 million tonnes. Coal products at Donaldson Coal Mine are prepared by a coal preparation plant owned and operated by a third party withcoal preparation capacity of 3.0 million tonnes per year. The Company transports coal products from Donaldson Coal Mine mainly via railway.