The C al Ze ( C20 )

Opportunity
A vehicle for socially responsible
decarbonisation

June 2021

Strictly Private and Confidential

C20 Global Decarbonisation Opportunity
Energy transition vehicle focused on global decarbonisation by acquiring,
responsibly operating and retiring coal assets significantly before the end of
their mineable life

C20 Mission Generate a positive, measurable environmental and social impact, including
Statement investment in a just transition, alongside a financial return for investors

The Sponsors are seeking ESG thought leaders to participate in this

endeavour via a yield-focused investment structure

Part 1: Backdrop A Sector in Transition

C al Remain a C i ical Ene g S ce f he De el ing W ld 1%

6%
14%
11%
Seaborne Traded Thermal Coal (Mt) Coal as % of Electricity Generation (2021E)
Coal Gas Hydro Nuclear Oil Renewables
3.7% 1.2% Emerging Markets(1)
971 1,007 1,019 Global
13% 1% 54%
Section 1 3% 35% 11%
5%
11% 16%
16%
2020 2030 2040 23% 12%

H e e , he Ind M Ada Global Climate Initiatives and Regulation

Climate Change Initiatives are Driving However, Unintended Negative
Positive Macro Impact Consequences Must Be Addressed

International policy and regulation focused on Negative socioeconomic impacts on local

carbon reduction communities and workforce

Increased climate change activism driving the shift Likelihood of further bankruptcies and public burden
to a low-carbon world for mine rehabilitation

Decreasing costs for cleaner and Alternative Continued consolidation to ownership with lower
Energy transparency standards

Financial institutions repurposing funding to Extended mine lives at lower operational standards
Alternative Energy sources to avoid closure costs

Transition Finance is Required to Support a Just Transition to a Decarbonised World

Source: AME.
Note: (1) Includes Asia, Africa, South & Central America.

1
C20 Strategy Roadmap
Part 2: The Social, Environmental and Economic Impact Opportunity for C20

Clear opportunity to drive positive social and environmental change through experience,
organization and accountability while generating attractive long-term returns for its investors

1 Acquire coal assets in adherence to a disciplined identification & acquisition strategy

Opportunity Set
Acquisition Criteria
Tier 1 Tier 2 Tier 3
1st or 2nd quartile cost position (Tier 1) Quality Economically Assets which
producing mines favorable accelerated require immediate
Stable political / mining jurisdictions
with cash flow closure assets closure and
(Australia, US, South Africa, Indonesia)
reclamation
Supply focused on developing markets
Public valuations at generational lows 790 active coal mines in target
Platform to apply ESG improvements jurisdictions
Increased financial pressures (26
Acquisition cost within returns framework bankruptcies in US over L10Y) 200+ mines on care & maintenance
globally

Operate responsibly to accelerate decarbonisation with accountability to core climate change

2 commitments
No growth or Decarbonisation via
Accelerated Coal Accountability to Implement ESG best
extension unmined reserves;
Phase-out by 2040 global climate practices
investment; assets Target 75% resources
standards
closed permanently left in the ground

3 Deliver consistent investor returns through a strict capital allocation framework

Multiple Core Return Drivers Potential Upside Opportunities

Attractive acquisition

+
Margin Improvement Economies of scale Portfolio Leverage
cost
Sale of land for
alternative use
Operating cash flow Carbon Credits Partnerships with existing mine owners

4 Utilize best-in-class practices to close, rehabilitate and repurpose the asset base

Service Repurpose
Tailings Reduced
Best practice model on for
management capital risk
mine closure rehabilitation alternative
and clean-up via bonding
works land use

5 Create positive social impact for local communities via Energy Transition Fund

Core Immediate Funding for

Focus on Plan for Third party
Energy investment (no renewables, storage
workforce community-oriented management and
Transition returns and alternative power
retraining alternative land use oversight
Principles threshold) technologies/projects

2
Sponsor Credentials and Governance
Pa 3: C20 Sponsors Are Well-Qualified To Successfully Execute This Strategy

The Sponsors have combined to provide the market leading practices necessary to achieve
al e for C20 s stakeholders hile de-risking the investment platform.

Pre-eminent global mining investor Global leader in international

Credentials commodities trading and logistics
Over $5bn raised with investments in Credentials
187 mining companies in 51 Expansive commodity market
countries (including several coal Core C20 position with annual revenues of
producers) Competencies c.$150bn and $57bn in assets
Institutional asset manager with >90 Trading business supported by the
staff dedicated to investing in mining Mining Group comprising 30 technical
industry experts

Benefits to C20 Benefits to C20

World-class in house technical, Dedicated in-house ESG expertise,
commercial and operational applying best practices
expertise Established Power & Renewables
Dedicated in-house ESG expertise, Division, including significant direct
applying best practices investment
Experts in consulting, engineering, Sector-leading Responsible Sourcing
project delivery and asset operations to cover all metals and leading
Credentials disclosure transparency programme
Global consulting company providing
solutions to the minerals & metals, oil &
gas and industrial sector
Global team of 3,000+ employees
based across 26 offices in 14 countries

Benefits to C20
Extensive experience in commissioning
and operating process plants globally
One of the world s leading Global
Environment & Sustainability (E&S)
team in the mining sector experienced
in all aspects of closure planning,
design and implementation

Sponsor Governance Regime Climate Accountability Regime

Broad stakeholder consultation (NGOs, governments, C20 is committed to the following principles and best
indigenous peoples and industry bodies) practices:
The International Council on Mining and Metal s (ICMM)
Arms-length service agreements Mining Principles

Section
Independent management team 1 The Financial Stability Board s Task Force on Climate
Section 1
Related Financial Disclosure (TCFD)
Sponsor Returns tied to KPI performance The Fossil Fuel Non Proliferation Treaty
Developing a short and medium/ long-term strategy setting
3rd party oversight of Energy Transition Fund
scope 1 and 2 targets for each asset
Committing to 3rd party assurance

3
The Investment Opportunity
Part 4: The Investment Opportunity

The Sponsors are seeking to partner with global thought-leaders in ESG and sustainability
investment to build the C20 fund
Singapore domiciled, tax efficient vehicle
Long-dated investment horizon will deliver returns via strict distribution policy of nearly all earnings after
tax, returning capital annually
Returns structure anticipates direct correlation between financial returns to investors, Sponsors and
funds allocated to the Energy Transition Fund social impact initiative
Strategy assumes no leverage, however, the Sponsors remain flexible to investor structural
preferences

Governments Are Vocal Supporters of the Just Transition Approach

“As part of our ongoing commitment to Queensland workers and communities as we

move towards the industries of the future, we have established a Just Transition
Group to help create new jobs, drive economic diversification and encourage new
Queensland Government investment.
(Dept. of Employment,
Small Business & Training)

“Colorado created the Office of Just Transition in 2019 to assist workers and
communities that will be adversely affected by the loss of jobs and revenues due to
the closure of coal mines and coal-fired power plants. Its purpose is to help workers
continue to thrive by transitioning to good new jobs, and to help communities
Colorado Government continue to thrive by expanding and attracting diverse businesses, creating jobs, and
(Dept. of Labor &
Employment)
replacing lost revenues.

“The Just Transition Fund can support development projects in a manner that
promotes social justice, particularly in Mpumalanga. An example would be a
reskilling programme in Mpumalanga, so that workers who lost their jobs in coal-fired
power stations or coal mines would have a better chance of taking on new
South Africa
(South Africa National
opportunities. Financing the transition is particularly important in a developing
Climate Policy Finance country like South Africa, with pressing needs for investment in development and for
Initiative (SNAPFI) Study) societal justice.

The C20 Commitment is to Support a Just Transition to a Decarbonised World

C20 is committed to a new way of thinking about mining coal. Through the accelerated closure
of its portfolio of coal mines, C20 will advance the global energy transition, while striving to
deliver positive social and environmental outcomes.

4
Contact Information and Disclaimer
Contact Information
All inquiries or communications regarding this presentation, including requests for additional information, should be
directed to the following individuals at Citi:

Disclaimer
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not
intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in
connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on
your particular circumstances from an independent tax advisor.
In any instance where distribution of this communication is subject to the rules of the US Commodity Futures Trading Commission ("CFTC"), this
communication constitutes an invitation to consider entering into a derivatives transaction under U.S. CFTC Regulations §§ 1.71 and 23.605, where
applicable, but is not a binding offer to buy/sell any financial instrument.
Any terms set f orth herein are intended f or discussion purposes only and are subject to the f inal terms as set f orth in separate def initive written agreements. This
presentation is not a commitment to lend, sy ndicate a f inancing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a
commitment, nor are we acting as a f iduciary to y ou. By accepting this presentation, subject to applicable law or reg ulation, y ou agree to keep conf idential the
inf ormation contained herein and the existence of and proposed terms f or any Transaction.
Prior to entering into any Transaction, y ou should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine
that y ou are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by
accepting this presentation, y ou acknowledge that (a) we are not in the business of prov iding (and y ou are not rely ing on us for) legal, tax or accounting adv ice, (b)
there may be legal, tax or accounting risks associated with any Transaction, (c) y ou should receiv e (and rely on) separate and qualif ied legal, tax and accounting
adv ice and (d) y ou should apprise senior management in y our organization as to such legal, tax and accounting adv ice (and any risks associated with any
Transaction) and our disclaimer as to these matters. By acceptance of these materials, y ou and we hereby agree that f rom the commencement of discussions with
respect to any Transaction, and notwithstanding any other prov ision in this presentation, we hereby conf irm that no participant in any Transaction shall be limited f rom
disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.
We are requir ed to obtain, v erify and record certain inf ormation that identif ies each entity that enters into a f ormal business relationship with us. We will ask f or y our
complete name, street address, and taxpay er ID number. We may also request corporate f ormation documents, or other f orms of identif ication, to v erify inf ormation
prov ided.
Any prices or lev els contained herein are preliminary and indicativ e only and do not represent bids or off ers. These indications are prov ided solely for y our inf ormation
and consideration, are subject to change at any time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The
inf ormation contained in this presentation may include results of analyses from a quantitativ e model which represent potential f uture ev ents that may or may not be
realized, an d is not a complete analy sis of ev ery material f act representing any product. Any estimates included herein constitute our judgment as of the date hereof
and are subject to change without any notice. We and/or our aff iliates may make a market in these instruments f or our customers and f or our own account.
Accordingly , we may hav e a position in any such instrument at any time.
Although this material may contain publicly av ailable inf ormation about Citi corporate bond research, f ixed income strategy or economic and market analy sis, Citi
policy (i) prohibits employ ees from off ering, directly or indirectly, a f av orable or negativ e research opinion or offering to change an opinion as consideration or
inducement f or the receipt of business or f or compensation; and (ii) prohibits analysts f rom being compensated f or specific recommendations or v iews contained in
research reports. So as to reduce the potential f or conf licts of interest, as well as to reduce any appearance of conf licts of interest, Citi has enacted policies and
procedures designed to limit communications between its inv estment banking and research personnel to specif ically prescribed circumstances.
Certain products mentioned in this communication may contain prov isions that ref er to a ref erence or benchmark rate which may change, cease to be published or be
in customary market usage, become unav ailable, hav e its use restricted and/or be calculated in a diff erent way. As a result, those ref erence or benchmark rates that
are the subject of such changes may cease to be appropriate f or the products mentioned in this communication. We encourage y ou to keep up to date with the latest
industry dev elopments in relation to benchmark transitioning and to consider its impact on y our business. Y ou should consider, and continue to keep under rev iew, the
potential impact of benchmark transitioning on any existing product y ou hav e with Citi, or any new product y ou enter into with Citi.