Premier Coal Mine, located in Perth, is an open-pit coal mine covering an area of approximately 130 square kilometers. Theconstruction of the mine began in 1996 and commercial production commenced in the same year. The annual production capacity of Premier Coal Mine is approximately 5.0 milliontonnes. Premier Coal Mine primarily produces low ash and low sulfur sub-bituminous coal. As of December 31, 2013, Premier CoalMine had JORC-compliant reserves of approximately 152.1 million tonnes. The mine’s marketable coal were approximately 152.1 million tonnes as of December 31, 2013.The Company utilizes conventional truck shovel open-pit miningmethods to mine the coal from a number of seams at the mine. The coal mined at Premier Coal Mine is crushed and sold withoutwashing.
The operations at Premier Coal Mine are powered by electricity from local power grids. Premier Coal Mine entered into a long-term coal salesagreement with Verve Energy, a power generator owned by the Western Australian Government. Coal products are transported fromPremier Coal Mine by conveyors to power stations and by railway to other customers in Australia.