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1 Beating the water at Integra Underground. 2 On 4 August 2006, the Glennies Creek JV and the Camberwell Coal JV were integrated to form the Integra Coal.

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Presentation on theme: "1 Beating the water at Integra Underground. 2 On 4 August 2006, the Glennies Creek JV and the Camberwell Coal JV were integrated to form the Integra Coal."— Presentation transcript:

1 1 Beating the water at Integra Underground

2 2 On 4 August 2006, the Glennies Creek JV and the Camberwell Coal JV were integrated to form the Integra Coal Joint Venture. The project comprises: An underground longwall operation which produces a semi-hard coking coal and has reserves of approximately 65Mt and a mine life of around 18 years. An open cut truck and shovel operation which produces thermal coal (~40%) and semi-soft coking coal (~60%) with reserves of approximately 7Mt and mine life of about 2 years. An additional open cut operation which is currently undergoing its planning approvals which will produce approximately 7.7Mt over a 6 year life. There is also a potential extension of the existing open cut operation to the west. In April 2007 VALE acquired 100% share capital of AMCI Australia Holdings which included 61.2% of the Integra Complex. Integra Coal Overview

3 3 About Vale Vale is a global diversified mining company headquartered in Brazil. We are the second largest company in the global metals and mining industry, and employ more than 100,000 people. We strive to improve the technical and operational standards of excellence of our activities, guaranteeing our products and service quality in order to satisfy our customers the best way possible while generating value for our shareholders. Our diversified portfolio creates essential ingredients for products used by millions of people around the world in their everyday lives.

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5 5 The coal business is the newest division in Vale. We intend to significantly grow this business to become an important part of the Vale portfolio, by growing off a platform of assets in Australia, Mozambique and China. Vale operates five Australian coal mines— currently producing 8Mtpa— and is involved in four significant growth projects in Australia at various stages of development. These operations are supported by management, marketing and administration teams at Head Office in Brisbane. Vale in Australia employs over 1,000 full time and contract employees. Our mines include Integra in NSW, and Carborough Downs, Broadlea and Isaac Plains in Queensland, while Ellensfield, Eagle Downs and Belvedere Projects are in various stages of feasibility study. Vale Coal

6 6 Overview  Integra Underground commenced development of the access drifts from the highwall of the North Pit of Camberwell Open Cut in  Longwall mining was commenced in 2002 with the first narrow (90m) longwall panel.  Subsequent longwall panels have been of varied widths up until Longwall 7 which was the first of the now standard 250m wide panels.  The mine has a planned production capacity of approximately 3.5Mt per annum.  Current operations are undertaken in the Middle Liddell seam, with plans underway to develop and mine the Hebden Seam, approximately 60m below.  ROM coal is transported by truck to the Integra CHPP where it is processed and loaded onto trains for transport to Newcastle.

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9 9 Why is water management and road maintenance important? Safety Poor roads = increased risk in personal injury Morale Crew arrive in the panel in the right frame of mind Productivity Good roads allows for ease in moving around the mine Decreased travel time Cost Good standards will result in an overall decrease in road construction costs Poor roads will result in increase wear and tear on mobile plant

10 10 This is an example of roadway conditions when water management gets out of control.

11 11 The challenge for Integra Underground The Syncline Each panel gets to experience mining down dip, on the flat and up dip. This requires adjustments to water management.

12 12 Construction of roads commences in development Road construction has been incorporated in the development sequence. Key features are;  Trenching utilised with agricultural pipe  Road construction utilises gabbion, ballast and road sheeting. The road in “L1” heasding is constructed during production in “B” hdg.

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14 14 Trenching

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18 18 Final road conditions

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