Dendrobium Coal

Development Taskforce Presentation

Page 2

Dendrobium and Illawarra Coal

•Commenced construction 2001 for continuity of number 3 seam supply for Illawarra blend

•Commenced longwall production April 2005

•Transport via rail network to Dendrobium Washery

Page 3

Dendrobium Mine Portal

Area 1 Longwall Blocks

No.1 Vent Shaft

BlueScope Steel & Coal Terminal

Page 4

Regional location

Mine site

Cordeaux Dam

Stockpile and coal handling facilities

Mount Kembla Village

AREA 3

AREA 2

AREA 1

AREA 3

AREA 2

AREA 1

Page 5

Mine plan overview

Operational constraints

•Mining within a sensitive catchment

•Multiple external approvals

•Geology and structural intrusions

•Proximity to other existing mines

•Curfews for transport

•Community proximity

•Longwall constrained by development

Page 6

Development Equipment Overview

• Gate road: – 2 x Voest Alpine continuous miners (superpanel)– 2 x 15SC 32 Waratah Shuttle cars– 1 x Stamler feeder– 1 x 18m3 and 1 x 23m3 Auxiliary Ventilation Fans– Conveyor 1500mm fastgate

• Mains Headings: – 1 x Joy 12 CM 30 continuous miner – 1 x 10 SC 32 shuttle car – 1 x Stamler feeder– Conveyor 1800mm bolted structure– 1 x 18m3 auxiliary ventilation fan

Page 7

Constraint- Mining under and adjacent to old mine workings

•Risk management and gaining approval for development and extraction

•Pillar by pillar approval requiring up holes for drainage

•Water management under Mount Kembla Colliery – infrastructure to pump up to 150l/s

•Training and authorisation of personnel to work in control zones

Page 8

Constraints – Exploratory and statutory drilling

Stubs driven off gate roads

Page 9

Constraints – Geology (MG3 ABM20 superpanel)

• Geology – Low strength roof conditions with a large number of low angle faults and dykes. Support type is the primary driver of development performance

MG3 - Pillar Cycle Times v's Support Type

256

134

23

240 260

113

165

242

11

43

149

171

72.5 85.5

305

169

114

5043

266114

61

296 320

112

210155.5 248

227

128

180

88

53

231

54

545

8

6

20

0

100

200

300

400

500

600

3 - 4

4 - 5

5 - 6

6 - 7

7 - 8

8 - 9

9 - 1

0

10 -

11

11 -

12

12 -

13

13 -

14

18 -

19

19 -

20

14 -1

6

16 -

18

Face

/ Blee

der h

dg

Met

res

of

Su

pp

ort

0

5

10

15

20

25

30

Pil

lar

Cyc

le D

ays

Sum of M's Developed in X2 Red Support

Sum of M's Developed in Red Support

Sum of M's Developed in Yellow Support

Sum of M's Developed in Green Support

Sum of Pillar Cycle Time

C / T

Data

Cycle time range: 7 -19 days

Cutting rate:0.5m/hr – 3.5m/hr

Page 10

Constraint - Geology

Normal mining horizon 3.2m

Roof falling to 5.5m on first workings and roadway for future tailgate

Typical Jointing on Development

Red Support density

Page 11

Improvements – Changing mining horizon

• Historical soft floor conditions

• Reduced sprains/strains – muddy conditions

• Reduced production delays - bogging of equipment, cleaning of roads and pumping

• Reduced equipment damage

Sprain & Strain injuries in the Dendrobium Development Panel

0

1

2

3

4

5

6

7

8

Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar May Jun

2005 2006

Total

Total Recordable Injuries (All) Business Unit Name Development - DEN Nature Of Injury Name Sprains/Strains

Count of Event#

Years Occurred Date

Ramped up on coal 15th Dec

05

Floor conditions changed 9th Apr

05

BHPB Development Metres / week - Since rampup in NWMs - FY06

0

50

100

150

200

250

300

TotalLinear (Total)

Sum of BHP M's

WEEK

Page 12

Improvement – Gate belt installations

•Working at heights and time constraints

•Transfer point, Jiffy drive & structure - installed first pass at 3.1m high

•Panel sequenced around jiffy belt installation - 4-5 days

• Hydraulically tensioned boot

•Allows final drive / LTU installation - 2-3 months

Working at heights risk reduced

Page 13

Improvement – Gate belt installations

Jiffy drive configuration : flameproof 110kw with delay fluid coupling mounted from head pulley off a torque arm

Hydraulically tensioned boot end for use with the jiffy drive gate belt installation.

Page 14

Improvement – Fit for purpose equipment

Building on the work from Centennial Coal - machines modified to better control variable strata conditions.

Stage 1: removal of CLA and fitment of EW

shovels

Stage 2: Tilt on apron

Page 15

Improvement – Supervisory leadership

• Managing performance and developing people - frontline supervisors

• Supervisors relatively young with little experience

• Conducted a site survey on Leadership.

• Linked leadership to front line competencies

• Real workplace ‘projects’ as learning vehicles and supported by workplace coaching

• Tailored Certificate IV ‘Business’

• Review and evaluation on-going

Page 16

Upcoming challenges: Mining at grades

Grade of 1:5 seam profile (9m seam section)

Page 17

1:8 Drifts to remain within Seam from NWM 13 – 20c/t

Upcoming challenges: mining at grades

Page 18

Summary

• Dendrobium is a simple mine constrained primarily by location and geology, though forms an essential part of the Illawarra Coal business

• Continue to learn about more accurate forecasting and management of local number 3 seam conditions

• Rationalising development for simplicity, and consistency• Continue to seek changes to equipment- fit for purpose• Considerable challenges ahead - mining at grades