taking position today at 19.5, page-15

Released today:

WA-BASED COAL COMPANY ALREADY OPERATING IN CHINA

Sydney - Wednesday - August 12: (RWE Aust Business News)
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OVERVIEW
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Market traders saw the shares of Queensland coal explorer
Rocklands Richfield Ltd (ASX:RCI) shares rocket up from 11c last Friday
to 25c on Monday on heavy volume of business which naturally pulled a
please explain from the ASX.
The company told the market watchdog that it was not aware of any
matters that should have been announced.
However, Rocklands Richfield had already made traders aware that
it had been in discusssions with overseas parties in recent months.
It was all in the early stages and no binding agreement had been
entered into.
In the latest review of operations, the company reported the coke
market has fallen dramatically because of the effect that the global
economic crisis is having on the demand for metallurgical coke.
Interest has already been cemented by Rocklands Richfield's
ownership of Metallurgical Coke Operations (China) - Chang Yuan (Huaibei)
Chemicals & Coking Co Ltd (CYCC), acquired in 2007.
During April and May, the coke market was similar to March.
Most independent coke producers kept their production capacity at
around 50 per cent because the demand for steel products remained weak.
In June, there was a sudden improvement.
The demand for new housing construction suddenly grew strongly
and the price of houses rose sharply.
Consequently, the price and demand for steel products and coke
both increased.
The average price of Grade 2 metallurgical coke was 12 per cent
higher than in May.
Steel manufacturers expected that the price of steel products and
coke would both continuously increase in the coming months, so they tried
to increase their coke stocks.
Coke producers wanted to respond by increasing production but
were blocked by the difficulty of getting enough coal, especially
bituminous coal and coking coal.
Coal mining companies could not supply more coal to meet the
sudden stronger demand.
Total coke output in the March quarter was 75,820 tonnes.
In the June quarter the output was 23 per cent higher at 93,140
tonnes.
On market prospects, the company expects the favourable coke
market will last for several months, with demand for coke remaining
strong and prices expected to increase further in the near future.
China's steel industry is recovering and the dawn seems to be
coming for the coking sector, though the company continue to expect
volatility in the coke market.
At the end of July, the company reported that directors had
approved a project to convert the existing coal top-loading coking ovens
at its Huaibei metallurgical coke plant to more advanced technology - a
coal side-loading tamping design.
The project is planned to be completed by the end of December.
The total cost of the conversion is $3.18 million.
The project is being funded through short-term loans taken out by
the company's wholly owned subsidiary, Chang Yuan (Huaibei) Chemicals &
Coking Co Ltd, the operator of the coke plant.
The conversion to tamping coke ovens will significantly increase
productivity because of reduced cost, more reliable supply of blended
clean coal feed, and an increase in coke production capacity.
Less of the more expensive coking coal and difficult-to-source
bituminous coal will be required in the blended feed.
This will reduce the cost of clean coal per tonne of coke product
by 5-8 per cent or around $18-27 based on current market price.
There will be no reduction in coke product quality.
The coal side-loading tamping conversion will increase annual
production capacity by 15-20 per cent.
Importantly, the modular nature of the 95 ovens that make up the
coke batteries means that the conversion can be carried out with no
disruption to forecast production levels over the remainder of 2009.

SHARE PRICE MOVEMENTS
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Shares of Rocklands Richfield yesterday rose 2c to 27c, setting a
new rolling high for the year, while low for the year is 4.5c. The
company has 288.4 million shares on issue with a market cap of $76.4
million.
In December the company announced it had increased coking coal
resources in Rocklands EPC 890.
The total coking coal resource estimate was lifted substantially
to 880 million tonnes of Inferred Resource level.
Coal resource estimates were prepared for the Aries Lower, Castor
Lower, Pollux, and Pisces seams.
The resource estimation techniques used were in accordance with
the 2004 JORC code.
The estimates are based on drill-hole data acquired since 1966
and this data provides evidence of coal seam continuity.
The resources are estimated to occur between a depth of 200 and
700 metres to the top of the Pisces seam within EPC 890.

BACKGROUND
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Rocklands Richfield Ltd joined the Australian Stock Exchange list
on November 1, 2000.
It became a multi-pronged company after acquiring China Coke and
Chemicals Ltd (CCS) in October 2007.
Rocklands Richfield has two divisions - the income-producing
China Coke and Chemicals operation and coal exploration activities in
Queensland's Bowen Basin.
The principal business activities of CCS are the manufacture and
sale of Grade 2 metallurgical coke from locally sourced coals and
production of coke by-products - tar, crude benzene, ammonium sulphate
and coal gas.
The 480,000 tpa coking plant is located in Huaibei in Anhui
Province in eastern China.
Rocklands Richfield also holds tenements over three highly
prospective coalfields in the Bowen Basin - Hillalong (100 per cent
owned), Rocklands (60 per cent owned) and Richfield (60 per cent owned).
These projects are near many large producing mines, including
Newlands, Hail Creek and Blackwater.
Each of the projects is known to contain large deposits of
metallurgical coal suitable for steel-making.
In total, coal resources are estimated to exceed 900 million
tonnes.