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The Business Model

Steelmakers

• Own and operate their own blast furnaces etc and share to advantage each precinct group services
• Buy transport and other services from EWLP Pty Ltd
• To become equal shareholders in the PIB Consortium with EWLP Pty Ltd

East West Line Parks Pty Ltd

• Builds, owns and operates the EWL railway
• Builds the smelter park precincts and "common user" infrastructure (materials stockyard, water, roads etc)
• Provides logistics and other services to the steelmakers
• Steelmakers are expected to retain majority ownership of EWLP Pty Ltd and Corsortium
• Suggested exit strategy available when the Consortium goes public in 10 years time.

Three times consolidation of the ores to slabs

Ship sizes will be 3 times smaller moving pig iron, steel pellets, slabs or billets than moving much larger pig iron and coking coal, allowing these smaller ships to shorten traveling distances by 2-3 times due to being able to travel through the canals. With the shipping of 1^st stage products, the expensive transportation of iron ore and coking coal (two separate trips) will be decreased to only 1 trip.

1. Supply chain consolidations approximately 30%
   Diesel fuel used on shipping will be reduced due to the supply chain consolidation, reducing air pollution.
2. Re-use of secondary heats - BF and coke ovens
   • Power generation capacity estimated at 1,200 m watts at each end
   Local state governments can benefit from re-using the heat from BF and coke ovens to generate electricity supplying to the booming industries without building more power stations.
3. Precinct services and infrastructures
   Sharing the precinct facilities, services and infrastructures will not only save the operation cost, it will also benefit the environment.
4. Beneficiation - magnetite, hematite, ore bodies/ blast furnace economics
   Australia is rich in resources. By constructing BFs near the mines, steelmakers will have access to magnetite and hematite supplies to produce high quality products.

• Consolidating supply chain
• Reducing two heavy and large shipments to one much lighter shipment
• Replacing old BF tech with new tech
• Replacing polluting energy coal with gas
• Re-using generated heat from BF

Supply chain costs for both ores
As previously mentioned, decreased shipment size and distances as well as number of shipments to 1 will result in the supply chain cost savings.

Long-term Operational and Supply security
The steelmakers re-locating to Australia will have easier access to the long-term supply of iron ore and coal, securing long-term supplies and operation of their BFs

Expanded global access to 1st stage feedstock product markets for East West Line Parks located BF's
Smaller size ships will be able to travel through Suez and Panama Canals, opening up new markets in Europe and North and South America. Steel slabs, billets and pallets can be shipped to the rolling mills in the markets through quicker and shorter shipping routes.

Global steelmakers' competitive advantage.
PIB will be great advantage as the global steelmakers will be able to

• save supply chain costs
• advance into new markets
• be more competitive with prices
• save operation cost
• promote company image

1. 45 hrs one-way rail trip
2. 124 hrs return load-dump-reload trip

1. Environmental
2. Land access