KRIEL COLLIERY WELCOMES:KRIEL COLLIERY WELCOMES:ALL COAL ASSOSIATIONS

18 NOVEMBER 2010

COLLIERY HISTORY• Kriel Colliery was Establish in 1975• Kriel Colliery Supplies Coal to Eskom’s Kriel Power Station• R f Mi P d ti• Run of Mine Production:

• Contractual Commitment - 8.5 Million Tons per Annum up to 2019 (40 Years Life)• 2005 – Eskom Requested Increase to 10.5 Million Tons per Annum Plan up to

2029 (50 Years)• 2010 – Eskom Requested an Investigation to Extend to 2039 (60 Years)

• Mine Comprises of Two Mining AreasMine Comprises of Two Mining Areas• Underground to Produce 5 Mtpa (45%)• Opencast to Produce 5.5 Mtpa (55%)

LIFE OF MINE - OPPORTUNITIESLIFE OF MINE OPPORTUNITIES

Project Stage

Block 7 Implementation

Block F Pre-Feasibility

Pit 11 C t lPit 11 Conceptual

Pit 13 Conceptual

Washing Plant Conceptual

OPERATIONAL AREASOPERATIONAL AREAS

WORKFORCE DIVERSITY• Total Workforce – 960 Mine Employees + 599

Contractors = 1559

Dominant Cultures (Home Language)

– Western/Asian Culture– Afrikaans/English/Indian – 230

• English – 138 (14.38%)• Afrikaans – 92 (9.58%)

• African cultures

• Sotho (Pedi/Tswana and South Sotho) 292 (30.42%)( )

• Nguni (Xhosa/Zulu/Swati and Ndebele) 401 (41.77%)

• Vhenda/Tsonga 37 (3.82%)

Educational Level for Mine Employees

– NQF 1 and below 372 (38.75%)

F th Ed ti & T i i (FET)– Further Education & Training (FET) 421 (43.85%)

– NQF 5 and above 167 (17,40%)

BUSINESS OBJECTIVES

Business Plan Main Focus Points are:

BUSINESS OBJECTIVES

• Maintain Safety as a Core Value (Ubuntu)• Sustain Production Targets

S t A t t it f ll P t ti l–Sweat Assets to its full Potential • Control Costs and Strive to Reduce Expenditure • Aim at a Labour Reduction of 5% and an Increase in Productivity• Kriel wants to be the Employer of Choice

We are Committed to Make this Work

‘Kriel Colliery wants to be the Preferred Supplier of Safe Green Coal to Eskom by Delivering Production Targets at the Lowest Possible Cost’

SAFETY, HEALTH AND ENVIRONMENT

SAFETY STATISTICS

4

5

Fatalities LTIFR

0 4

0.5

1

2

3

4

0.1

0.2

0.3

0.4

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

YTD

LTISR TRcFR

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

YTD

200

300

3

4

LTISR TRcFR

0

100

0

1

2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

POCKETS OF EXCELLENCE

General Safety Performance

Surface achieved 32 000 FFPSSurface achieved 32 000 FFPS

Opencast achieved 11 000 FFPS

Currently 212 Days LTI free

OHSAS 18001 Certified for 5 years

ISO 14000 Certified for 5 years

Progressive LTI free days

Days Last LTI Progressive Fatality Free Production Shifts

Shiftsdays

North West Shaft 212 19/04/2010

Opencast 397 16/10/2009

Production Shifts

North West Shaft 1 915

Opencast 11 268

Surface 1630 01/06/2006 Surface 32 665

TOP 5 HAZARDS• Machinery and Equipment• Fall of Ground & Sidewall Management • Trackless Mobile MachineryTrackless Mobile Machinery• Electricity• Methane

Main Risks Associated with these Hazards• Hazard Identification/Complacency• Lockout and Isolation• Change Management• Skills Retention• Fire and ExplosionsFire and Explosions• HIV Pandemic• Absenteeism and Wellness

SAFETY CHALLENGES• Complacency • Compliance with Rules and Standards

• Mindset Change – Common Practice vsMindset Change Common Practice vs Standard Practice

• Training and Reinforcement of COP’s and SOP’s – Embed Compliance

• Hazard Identification and Ability to Formulate a Risk Assessment

• Embedding of the Anglo Coal Safety Way• Emphasis on Anglo Fatal Risk Standards

• Contractors’ Management

FOR MYSELF

G FOR OTHERS

• 2011 - Year of ‘Rules are Rules’• Focus on Quality of People at all Levels –

Fit for the Job

CARING

CARIN

• High Risk Tolerance• Mind Set Change – Proactive Stage

WELLNESS

WELNESS DRIVEWellness Drives VCT HistoryWellness Drives

• Hypertension• Diabetes

y

85

7677

82

83

75

80

85

90

Perc

enta

ge %

• Diabetes• HIV/AIDS• Tuberculosis

Cancer

702006 2007 2008 2009 2010 YTD

Year

P

2006 2007 2008 2009 2010 YTD

• Cancer

2009 VCT Statistics 2010 VCT Statistics

VCT % 76 %

New Infections 2009 12

VCT % YTD 83 %

New Infections 2010 9

Employees on ART 54 Employees on ART 87

OPENCAST MINING• Dragline, Truck and Shovel Mining Method• Coal Transported to Tip by Euclid R170 Trucks• Block 6 Tip• Block 6 Tip

– Primary Crushing by Jaw Crusher (-350mm)– Secondary Crushing by Double Roll Crushers (-250mm)

Tertiary Crushing by American Ring Roll Crushers ( 70mm)– Tertiary Crushing by American Ring Roll Crushers (-70mm)• Conveyors Transport Coal to the Plant and then ESKOM Staithes• Annual Production 5.0Mt

UNDERGROUND MINING• Mechanised Bord and Pillar Mining• Six (6) Production Sections Currently on 3 Shift Basis

Typical Section• Typical Section• 1 Continuous Miner (1xHM31, 1xHM21, 4xHM9)• 4 Shuttle Cars (10SC22)• 1 Roof Bolter (Twin Boom Biz & Rham)• 1 Roof Bolter (Twin Boom Biz & Rham)• 1 Feeder Breaker (Buffalo)

• Coal is Transported via Conveyor Belt system to Surface Plant• Men and material are transported with a diesel fleetMen and material are transported with a diesel fleet

• Busses, LDV’s, LHD’s, Tractors and MPV’s

OPENCAST: PRODUCTIVITY OPTIMISATION PROJECTOpencast Performance Project. The aim was to improve the total Opencast output by

implementing improvement projects in the constraint areas:

G ( G)• Dragline Improvement Group (DIG)

• Water management

• Improve blasting technique (Digability) (BIG)p g q ( g y) ( )

• The success of these initiatives have been apparent however the constraints are dynamic, so the project continues to evolve.

UNDERGROUND: C0NTINUOUS MINER IMPROVEMENT GROUP (CMIG)In 2007 the CMIG project was started. The HM31and HM21 had onboard data loggers placed on

2007

2009

and HM21 had onboard data loggers placed onthem to record pick six data.

2009 - A study and trial was conducted in a HM9section by using a data logger placed on the

2010

section by using a data logger placed on thefeeder breaker.

2010 - The trial was completed. The data loggersmeasured the load cycle times on the feeder 2010measured the load cycle times on the feederbreakerThe ongoing Conveyor Improvement project willsupport the CMIG and address the current

Over 2010 and 2011, the remaining threesections will have this same technology

support the CMIG and address the currentconstraint (Feeder breaker rates)

2011

16

sections will have this same technologyinstalled. This data will be used to determinefocus areas for improvement.

MINE PRODUCTIVITY TOTAL EMPLOYEES

TOTAL MINE - TONS / MAN / ANNUM

900

1000

12000

14000

UM

700

800

BOUR 8000

10000

N/AN

NU

500

600

LAB

4000

6000

ON/

MA

300

400

2007 2008 2009 2010 2011 2012 20130

2000 T

LABOUR CONTRACTORS TON / M AN / ANNUM TON / M AN / TOTAL M INE

EMPLOYMENT EQUITY: DIVERSITY Category Total HDSA % HDSA WIM % WIM Disabled % Disabled

Management Officials (Band 6) 44 18 41% 5 11% 0 0.0%

Officials (C4# and below) 155 97 63% 32 21% 0 0.0%

Senior Skilled 163 114 70% 16 10% 0 0.0%

Skilled 536 530 99% 71 13% 2 0.3%

Total 898 759 85% 124 14% 2 0.2%

Professionals in Training 25 19 76% 6 24% 0 0.0%

Learnerships 36 36 100% 8 22% 0 0.0%

Grand Total 959 815 85% 138 14% 2 0.2%

45%HDSA in

16%WIM in

2011 2011

SOCIAL LABOUR PLAN (SLP) PROJECTS 2009 – 2012Nature of Project Financial Provision Source Location Completion

Date

1. Maths and Science Supplementary Classes R 2 500 000 IDP/LED Thubelihle 2012Classes R 2,500,000 IDP/LED Thubelihle 2012

2. Subsoil DrainageR 2,200,000 IDP/LED Thubelihle 2011

3. Surfacing of RoadsR 3,000, 000 IDP/LED Thubelihle 2011

4. Sibongamandla Secondary SchoolR15,000, 000 IDP/SLP Thubelihle 2012

Total R 22 700 000

2010 Completed Projects/Corporate Social Investment

• Drop In Centre Renovation in Thubelihle• Adopted Sibongamandla Secondary School in Thubelihlep g y• Replacing of doors and purchasing of Dustbins for KwanalaPrimary School

• Maintenance of Teacher’s Flat

THANK YOUOU