Attached files
| file | filename |
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| 8-K - FORM 8-K - SunCoke Energy Partners, L.P. | d556095d8k.htm |
 Steel Success
Strategies XXVIII
Supporting Steel Industry
Competitiveness
June 19, 2013
Exhibit 99.1 |
 TM
About SunCoke
Largest independent producer of
metallurgical coke in the Americas
2
•
More than 6 million tons of capacity
–
Facilities in U.S., Brazil and joint
venture in India
•
Reliable, long-term supplier to
leading steelmakers
–
ArcelorMittal, U.S. Steel, AK Steel
•
Industry-leading cokemaking
technology and know-how
–
50+ years of cokemaking experience
–
State-of-the-art heat recovery design
–
Meets U.S. EPA Maximum
Achievable Control Technology
(MACT) Standards |
 TM
Steel Industry Dynamics
Challenging Steel
Industry Environment
Steelmakers’
and Raw
Material
Suppliers’
Strategic Choices
•
Lower raw material costs
•
Implement operating
efficiencies
•
Reduce ongoing capital
needs
•
Unlock value of captive
assets
•
Focus capital on
targeted growth
3
•
Allocate capital in highest
value add manner |
 TM
The SunCoke Advantage
Implement best practices
Improve technology
•
Compiled comprehensive database of U.S. coals
•
Developed model to optimize coal blend for cost and targeted
quality
•
Enhanced oven controls and process automation
•
Improved coal/coke handling practices/equipment
•
Maximize power recovery
•
Maximize natural gas/injectant capability for customers
•
Blast furnaces using 100% our coke achieve some of best
fuel rates in industry
•
Simple operation; no by-product or waste water treatment plants
•
Less operating and maintenance manpower requirements
•
Gross operating cost ~ ½
that of typical by-product batteries
1
Master coal science
2
3
4
The SunCoke Way
Blend
optimization
Yield
improvement
Larger and
stronger coke
Lower operating
cost
•
Standardize operating and
maintenance practices to achieve
reliable, predictable operations
•
Use advanced prediction
models to optimize coal
blend and maximize yield
•
Increase production flexibility
•
Decrease equipment cost
and lengthen asset life |
 TM
Capital Cost Reductions
5
SXC reengineering its next facility to reduce capital intensity of
cokemaking and meet increasingly stringent environmental requirements
|
 TM
Capital Cost Reductions (cont’d)
•
Next plant up to 30% smaller in footprint
•
Modular design enables staged installation
•
Increased power and/or steam output
•
Capital costs per ton decrease with footprint
(~20% reduction in capital cost/ton, including next generation NAAQS requirements)
New plant
design
6 |
 TM
Steel Value Chain
Raw materials
mining
Crude
steel
Finished
steel
End
customer
Raw material
processing/
transportation
Carbon
Ferrous
Transport
Processing
Handling
Disaggregation
Opportunity
•
Elements of steel value chain can
be disaggregated to create value
•
Maintain strategic control/use of
assets on long-term, competitive
and reliable basis
•
Free up and redeploy proceeds
•
Fund construction of new assets
7
Requires trusted counterparty to own/operate and
valuation/cost of capital advantage |
 TM
SunCoke’s Strategic Role
SXCP
1
st
steel-facing MLP
Advantaged
cost of capital
Experienced constructor
and operator
Trusted, reliable long-
term supplier
SXC/SXCP can
create value for
steelmakers and
raw material
suppliers through
strategic
disaggregation
8 |
 TM
Conclusion
9 |