Agenda

• The State Government’s Strategic Cropping Land (SCL) policy development is now close to completion, with the introduction of the major piece of Strategic Cropping Land legislation being introduced into the Queensland Parliament on 25 October 2011
• This paper will discuss the background of the policy, the draft legislation, and the implications of the strategic cropping land initiatives on the resources industry

• Managing the early, mid and ongoing stages of communication in the land access negotiation process
• Challenges faced in transition from exploration to production

• Update on carbon tax
• Coal Business emissions measurement and reporting issues
• Understanding carbon tax obligations for liable entities
• Other tax-related issues

• Altona Energy's mission is to develop clean energy projects based on world class resources and 'state of the art' commercialised technology
• In South Australia, Altona is conducting a Bankable Feasibility Study ('BFS') for the Arckaringa Coal to Liquids ('CTL') and Power Project with its JV partner, Chinese energy major CNOOC
• The Arckaringa Project is ideally poised to help tackle SA's growing fuel and power needs and boost economic development

• Transform a low grade coal deposit in Queensland
• Apply and integrate proven coal-to-liquids technology
• Produce unleaded petrol and associated products
• Market the product in the domestic fuel market

• Combining UCG and gas-to-liquids (GTL) processes in one site
• Reducing the countries vulnerability to international price stocks and become an exporter of transport fuel

• Are investors ready to dump coal?
• Do coal-based derivatives (ie CTL, CSG, UCG) have a future?
• What is the economic rationale for future investment into coal and coal-based derivatives?
• What will keep driving demand for coal and coal-based derivatives, especially from China and India
• How will global political action on carbon emissions affect investment decisions on coal, and what will the likely impact be on the Australian economy over the next ten years?
• What will it take for carbon capture and storage to make investment sense?

Underground coal gasification promises safe and low cost recovery of energy and syngas from stranded coal resources, at a scale that represents a major new global energy resource. Development of commercial UCG has been slow, and the key factors for take up will be described from the perspective of Carbon Energy, a leading technology innovator, and their experience over five years.

• Getting the technology right
• Matching technology to commercial opportunity
• Community acceptance and Government regulation
• The value of success

Gasification is a complex and unique process. While often presented as a simple process of reacting steam and oxygen with low value carbonaceous feeds to provide a clean synthetic gas of predominantly H2 and CO; in fact, severe operating conditions and a myriad of problematical product compounds present design and operating challenges. Combined these create challenges to mechanical design, process control and operations. To deal with these challenges, it is best for the engineering contractor and owner’s operating & maintenance to engage with the technology provider early to identify risks and plan mitigation steps. Fluor has considerable experience and expertise with gasification projects. In this presentation, we share some of the issues encountered on past gasification projects and our risk management approach.

• Alternative energy technologies and options to produce hydrocarbons for transport fuels, power and chemicals
• Alternative technologies convert hitherto difficult resources such as stranded coal (uneconomical to mine), low grade coal and gas to produce energy and products
• Challenges faced by the industry: Environmental constraints, processing complexity, and return on energy
• Process routes for different raw materials to product slates and their associated issues

• ARP supports medium sized companies with their development ambitions by sourcing funding and operating skills which combine to accelerate value creating for these entities shareholders
• In the present difficult capital markets, reliance on new equity raising’s is risky and expensive due to excessive dilution
• ARP is helping Central petroleum develop its Pedirka deep coal assets in Central Australia and is presently conducting a search for partners to fund the BFS effort ahead of a planned stage 1 start up of 60,000 bpd (UCG to liquids) project
• ARP also develops assets of its own, and has recently obtained access to PELA 582 in South Australia which straddles and surrounds the Leigh Creek coal mine allowing access to deep coal resources mentioned in historical records
• ARP is focused on all mineral and energy commodities, and is presently increasing its capabilities with additional staff and strategic relationships around the planet
• ARP plans to build a UCG operating arm so that it can better support small companies with UCG viable coal assets