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Achieving Reclamation Success Globally – Peabody Energy’s Experience In Mongolia Vern Pfannenstiel Senior Manager – International Reclamation June 2012.

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Presentation on theme: "Achieving Reclamation Success Globally – Peabody Energy’s Experience In Mongolia Vern Pfannenstiel Senior Manager – International Reclamation June 2012."— Presentation transcript:

1 Achieving Reclamation Success Globally – Peabody Energy’s Experience In Mongolia Vern Pfannenstiel Senior Manager – International Reclamation June 2012

2 Tons in millions sales volumes and proven and probable reserves. Trading / Business Development Offices BrisbaneSt. Louis NewcastleBeijing LondonSingapore UlaanbaatarJakarta EssenBalikpapan New Delhi Trading / Business Development Offices BrisbaneSt. Louis NewcastleBeijing LondonSingapore UlaanbaatarJakarta EssenBalikpapan New Delhi Essen London Beijing Ulaanbaatar Urumqi St.Louis Singapore Jakarta DTA NCIG Balikpapan New Delhi Peabody’s Global Portfolio 2 Peabody’s Business Operates in 3 Primary Segments: U.S. Mining, Australian Mining, and Coal Trading Mining Operations Position Sales Reserves S. PRB# Midwest # Southwest# Colorado# Australia# Total228MT8.8BT Mining Operations Position Sales Reserves S. PRB# Midwest # Southwest# Colorado# Australia# Total228MT8.8BT

3 Peabody Principles Applied Globally 3 Permit and operate mines in compliance with regulatory requirements Use best practices in environmental stewardship and reclamation Conduct operations in the local community as a good neighbor Demonstrate industry leadership in best practices and results “When mining is complete, we will leave the land in a condition equal to or better than before mining”

4 Best Practices – The Basis for Success ●Best practices for mining and reclamation success –Baseline information –Integrate engineering, mining, reclamation planning –Backfill and grade to a designed post mine topography (PMT) –Topsoil handling and mine soil reconstruction –Revegetation and surface stabilization –Monitoring, postmining land use and management –community and stakeholder interaction 4

5 5 Mongolia and Ereen Mine Location “The Land of the Eternal Blue Sky” Ereen Mine Location

6 Environmental Setting ●Khangai Mountain geographical zone ●Arid continental climate –Cold, dry and windy ●Steppe transitioning to forest steppe –Cool season grasses and low growing forbs ●Chernozem loess soils buried by a layer of pyroclastic and wind blown materials ●Traditional land use of nomadic herding ●Wildlife relatively sparse 6

7 7 Ereen Reclamation Project Background ●Ereen Mine –Peabody/Winsway JV operation –Mining ends June 2009, initiate reclamation program –Peabody takes technical and implementation lead –Initiate baseline, reclamation planning and ministry approvals

8 Ereen Reclamation Project Background ●Ereen Reclamation Program Goals –Reclaim to world class standards using best practices method –Return land condition and use; develop management plan –Address MNET demonstration of success –Release mining license and liability (government sign–off) –Demonstrate Peabody ethic and value to Mongolia 8

9 Ereen Reclamation Approach 9 ●Select best practices (Mongolian White Paper) ●U.S. reclamation and success standards ●U.S. Peabody technical assistance ●Spoil/topsoil plant growth suitability –Spoil/topsoil quality analysis to U.S. labs ●Develop PMT - stable landform, AOC, drainage ●Identify required resources and availability ●Coordinate mine closure/reclamation with Ministries ●Pattern on U.S. experience, apply with Mongolian team and conditions

10 Education and Outreach to Stakeholders ●Government, community and people –Communication, outreach and involvement with stakeholders throughout the project –Bulgan Aimag, Saikhoum Soum, # 6 Bag –Ministries, State Inspection Agency and other government officials 10

11 Ereen Reclamation Planning ●Reclamation plan –Mongolian consultants assist with reclamation plan for Ministry approval –Ereen baseline and site conditions –Develop spoil and topsoil handling plan –Revegetation plan and seed mix –Water resources development –Postmine topography design –Practical, approvable and achievable plan 11

12 Ereen Reclamation Project Planning – Postmine Topography 12 Pre-mine Topography and mining disturbance Post-mine Topography - positive drainage - stable slopes - blend with natural topography - least material handling - cost effective

13 Ereen Reclamation Project Planning ●Revegetation resources to complete the project: –Purchase JD 450 seeder in U.S., ship to Mongolia (5 months) –Mongolian State University of Agriculture and NGO to procure seed and complete revegetation activities (Dr. Tumee!) 13 Ereen Mine Site Reclamation Seed Mix and Seeding Rates Scientific NameCommon NameSeeding Rate (kg ha -1 ) Medicago variaAlfalfa0.6 Bromus inermisSmooth brome3.4 Agropyron cristatumCrested wheatgrass3.7 Stipa sibiricusSiberian needlegrass2.3 Total10.0

14 14 Ereen Reclamation Project – 2009 Events ●Initiate reclamation activities in July 2009 –Backfill and grading to PMT design (address spoil quality) –Strong survey control and construction checks, field adjust –Institute a Peabody safety culture, reinforce a safe work environment daily –Conduct daily operations meetings

15 15 Ereen Reclamation Project – 2010 Events ●Complete reclamation in June 2010 –Final grading and drainages to PMT design –Topsoil replacement (20cm strict tolerances) –Deep ripping and seedbed preparation –Revegetation (no fertilization and no mulch) –Fence project area

16 Stream Channel Stabilization ●Moderate gradients and uniform channel profile ●New concept – rock check dams and homemade gabions and wattles (no materials available in Mongolia) 16

17 Water Well Development ●Groundwater source identified 2009 ●Community and ministry officials request well development ●Design and construction fall 2009/2010 ●Stockwater facilities added 2010 ●Insulated well house added fall 2011 ●Highlights –Dependable, 12 month availability –Best water quality for herders in 20 kilometer radius 17

18 Monitoring and Graduate Research ●Monitor precipitation, temperature, soils, reclaimed and native vegetation, wildlife, soil ecosystems and invertebrates ●Established cooperative research program with Mongolian State University of Agricultural - Dr. Tumenjargal, Dr. Urganbayar and graduate students ●Education with local community for short/long term site management ●Document reclamation success, advance best practices knowledge for Mongolia, train environmental/reclamation specialists ●Study restored ecosystem function, successional processes 18

19 Ereen Project Site Monitoring Program ●12 permanent vegetation monitoring points –1 meter squared plots at each point –Seeded plant density, plant height and biomass production (cover 2012) ●Soil and related sampling ●Meteorological station on site –Davis Vantage Pro2 met station ●Monitor water quality at well site ●Site fenced to exclude livestock during establishment/study –Native vegetation included in fenced enclosure for comparison sampling ●Fauna study in 2012 ●Monitor through

20 Monitoring and Research Average number m -2 Species B MedvarBroineAgrcriStisibTotal July Oct July Sept A Data averaged from 12 permanent monitoring points B Medvar = Medicago varia, Broine = Bromus inermis, Agrcri = Agropyron cristatum, Stisib = Stipa sibericus Established individuals of perennial seeded species m -2, Ereen Mine reclaimed lands A ●Vegetation monitoring results –Sampled July and October 2010, May, June, July, August, September 2011 –Excellent establishment of seeded species (> 21 seeded species m -2 ) –Natural regeneration of additional native species observed by end of 2011 (>25) 20

21 21 Monitoring and Research, continued ●Forage production potential is excellent, desirable species predominate ●Seed production, tillering of seeded species and extensive recruitment evident ●Primarily perennial species by end of year two ●Seed species height 9.4cm (May), 78.4cm (September) ●Hay production potential –Critical need in Mongolia - potential for other areas –600 m -2 hay trial established –Hay versus grazing land use Biomass production kg ha -2 AreaJune 2011July 2011August 2011September 2011 Reclaimed Native Reclaimed vs. Native4.7x7.6x4.3x4.9x A Data averaged from 20 reclaimed and 20 native sample points (Grazing excluded) 2011 biomass sampling results, Ereen Mine reclaimed lands A

22 Faunal Studies – Initial observations 22 ●Good indicators of returning ecosystem function ●26 migrant and resident bird species (5/12) ●5 mammal species on or immediately adjacent ●Comprehensive study in 2012 (2013) Tolai hare Daurian jackdaws PollinatorsLong-tailed ground squirrelMongolian lark

23 Ereen Reclamation Project Highlights ●Mongolia’s first complete coal mine reclamation project ●Restored 20 hectares to grazing land ●Water well for domestic and livestock use (new regional source) ●Considered a benchmark and model for reclamation in Mongolia ●Successfully demonstrated best practices approach for Mongolia 23 ●Seeder donated for revegetation projects ●Achieved community relations and social responsibility goals ●International recognition and case study model (Asia Foundation – Citizen’s Guide and World Coal Association reclamation case study)

24 Applied Best Practices – Reclamation And Success At The Ereen Mine In Mongolia 24 June 2009 May 2010 September 2011

25 25 Ereen 2010 to 2012 Bayartai (Good bye)

26 Achieving Reclamation Success Globally – Peabody Energy’s Experience In Mongolia Vern Pfannenstiel Senior Manager – International Reclamation February 2012


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