ROADWAY DEVELOPMENT IMPROVEMENT PROJECT CM 2010 Update Greg

ROADWAY DEVELOPMENT IMPROVEMENT PROJECT CM 2010 Update Greg Pawley, Xstrata Coal Bob Gordon, BHP Billiton Illawarra Coal Guy Mitchell, BMA Coal August/September 2010

CM 2010 Update § CM 2010 R&D Strategic Review § Current Projects § New Projects Under Consideration CM 2010 Update August/September 2010 2

CM 2010 R&D Strategic Review § Strategic review conducted in July 2010 with objective of reconfirming and/or amending the CM 2010 Vision, Goals, Measures and Strategies in the context of developments to date, and potential R&D achievements over the next 3 years CM 2010 Update August/September 2010 3

Review Inputs § Existing CM 2010 Vision, Goals, Measures and Strategies § Review of current research initiatives including both ACARP funded projects and direct industry funded initiatives (mines and OEMs) § Fundamental Analysis of Roadway Development System – Richard Porteous’ excellent analysis of contributing factors to roadway development performance § Roadway Development Technology Audit – report of the Audit completed earlier this year across mines, OEMs and suppliers § CM 2010 Technology Gap Analysis – as completed by RDTG CM 2010 Update August/September 2010 4

Fundamental Analysis of Roadway Development § Richard Porteous’ 2008 study across Xstrata’s 11 mines illustrated that adoption of current and emerging technologies has the potential to achieve significantly improved development rates § Study based on standard bolting cycle of 6 roof and 4 rib bolts per metre, with base case of a miner-bolter and 1 SC (bolting constrained system) § Study examines effect of various refinements to the system: ► ► Adoption of a bolter-miner with concurrent cutting and bolting Employment of a second shuttle car throughout pillar cycle Adoption of self drilling bolts Utilisation of a continuous haulage system § Projected that a rate of 8. 5 MPOH could be achieved with these measures § Fully details of report available at www. undergroundcoal. com. au CM 2010 Update August/September 2010 5

2010 Technology Audit § Recommended that the RDTG maintains general thrust of CM 2010 and review R&D priorities in regards to: ► The development of remote bolting technologies including: • • ► Self drilling bolts Bolt, washer and mesh storage/handling Remotely controlled/automated bolting rigs and manipulators Associated sensing and monitoring systems The development of CM self steering technologies including: • • Remote sensing, seam profiling, and video monitoring Machine navigation and steering Communication protocols Machine supervisory/auto-reporting systems (including development of “black box” data logging system) CM 2010 Update August/September 2010 6

2010 Technology Audit § Recommendations regarding general thrust of CM 2010 (cont): ► ► Addressing issues associated with on-board ventilation systems Development of SC guidance (automation) systems Addressing issues associated with management of face services, by either continuous haulage or monorail systems, including development of self advancing system in later instance Developing strategies to address equipment certification and regulatory issues, including adoption of EMERST design philosophies § Also recommended that mines continue to undertake operational research to optimise face cycle times and engage change management expertise when introducing new development technologies and processes CM 2010 Update August/September 2010 7

CM 2010 Technology Gaps § Technology gaps identified in CM 2010 R&D strategy include: ► ► ► CM roof/floor horizon control Long tendon installation Monorail advancement systems (or alternatively, ventilation installation and extension systems) Higher capacity ventilation systems Remotely steered (automated) shuttle cars Collision avoidance systems – people and machinery Supply/logistics systems Conveyor advancement systems Services advancement systems Technology/systems integration Communications – both verbal and data CM 2010 Update August/September 2010 8

CM 2010 Phase II R&D Strategy § Vision ► ► An integrated, remotely supervised high capacity roadway development mining system that enables 15 Mtpa longwall mines to be established and sustained with a single gateroad mining unit The system will also enable mining to be safely undertaken under adverse or extreme mining conditions, thus opening up access to reserves previously considered un-mineable § Measures ► ► A sustained performance rate of 10 metres per operating hour (MPOH) for 20 hours per day, based on installing primary support of 6 roof and 2 rib bolts per metre advance together with roof and rib confinement measures (mesh) Improved health and safety through reduced exposure to hazards in the immediate face area CM 2010 Update August/September 2010 9

CM 2010 Phase II R&D Strategy § Goals ► ► By end 2010, demonstrate key enabling component technologies that will form the basis of an integrated high capacity mining system, eg; remote operation of the continuous miner, automated self drilling bolts and mesh installation, continuous haulage, integrated panel services By end 2015, demonstrate all the elements of an integrated, remotely supervised high capacity roadway development system Progressively reduce the physical demands on personnel engaged in the development process and reduce their exposure to workplace hazards Encourage and support mines to develop the key organisational and technical competencies required to support a high capacity mining system eg; improved engineering availability, people behaviour and skills, and planning, organisation and process control CM 2010 Update August/September 2010 10

Current Projects § C 16022 – undergroundcoalcom. au ► ► Recently gone live and can be accessed via web-site Continuing to develop site with industry support § C 17004 – Tough. Skin ► ► Consolidating polymer chemistry research following departure of lead researcher March 2010 Recently identified an industry partner to continue development of polymer and coating formulation, including registration, certification and licensing of product Evaluating challenge posed by NSW Chief Inspector’s notification specifying that application or injection of polymeric materials for strata support is a licensable activity Stage III of the project to commence January 2011, subject to ACARP funding CM 2010 Update August/September 2010 11

Current Projects § C 17017 – Automated Bolting and Meshing System ► ► Successfully demonstrated all components of system except rib bolt manipulation (now due October 2010) Stage II of the project has commenced and includes an underground trial and demonstration of system, and concept design of an integrated logistics system Initial focus is to fully animate proposed system and examine issues associated with full automation of system in underground environment RDTG member companies identifying suitable site and continuous miner to conduct underground trial § C 18023 – Continuous Miner Automation ► ► Successfully demonstrated components of navigation system Stage II recently commenced and includes an underground trial of navigation system on Phoenix CM 2010 Update August/September 2010 12

Current Projects § C 17010 - CM 2010 Project Support ► ► Development of Roadway Development Handbook temporarily suspended to allow focus on providing project management support to. Tough. Skin Continuing project support role proposed across all CM 2010 related projects, including continuation of Roadway Development Operators’ Workshops to end 2012 CM 2010 Update August/September 2010 13

New Projects Under Consideration § Rapid Advance Conveyor ► Oregate Pty Ltd § Automated Monorail Extension System ► Macquarie Manufacturing and UOW Automation and Robotics Group § Development of FRAS Rated Polymeric conveyor Idler for Underground Coal Mines ► Ellton Longwall/Dotmar Engineering Plastics/Intelligent Polymer Research Institute (UOW) CM 2010 Update August/September 2010 14