19 th of February 2004 Gregory Crinum Mine 1 Gregory Crinum Mine – Rotary Breakers Gregory Rotary Breaker - Old Lubrication System Crinum Rotary Breaker - New Lubrication System

19 th of February 2004 Gregory Crinum Mine 2 Rotary Breaker – Lubrication System Improvements PROBLEMS Lubricant being splashed on the Rotary Breaker chain and surrounding structures Lubricant spillage causing an imminent workplace and safety issues Unnecessary waste of lubricant Environmental impact (Penetration into the soil, costly and unsafe disposal)

19 th of February 2004 Gregory Crinum Mine 3 Rotary Breaker – Lubrication System Improvements Lubricant spillage Chain splashing lubricant over surrounding structures Pools of lubricant laying underneath Rotary Breaker Lubricant deteriorating floor plate and dripping into the ground

19 th of February 2004 Gregory Crinum Mine 4 Rotary Breaker – Lubrication System Improvements OBJECTIVES Improvements to current Automated Lubrication System Addition of air operated pump to agitate lubricant prior to pumping Addition of brushes for lubricant application Ensure that lubricant reaches critical points on the chain

19 th of February 2004 Gregory Crinum Mine 5 Rotary Breaker – Lubrication System Improvements COMPARISON Previous System Automated Lubrication System: Lubricant application for 10 seconds every 40 minutes Consumption: 205 Litre Drum of Mobil 630 or BP GR – XP 220 per month. (Not including down time due to shutdowns or other maintenance factors) Cost:205 Litre Drum - $351.35

19 th of February 2004 Gregory Crinum Mine 6 Rotary Breaker – Lubrication System Improvements Improved System Automated Lubrication System:300mL of Lanotec Heavy Duty Lanolin (HD) applied during 10 seconds every 8 hours (3 applications daily). Consumption: 205 Litre Drum of Lanotec Heavy Duty Lanolin (HD) will allow for 683 applications, which is equivalent in time to 7.5 months. (Not including down time due to shutdowns or other maintenance factors). Cost:205 Litre Drum – Price on application

19 th of February 2004 Gregory Crinum Mine 7 Rotary Breaker – Lubrication System Improvements New System Installation New Lanotec Lanolin drum Air pump installed Lubrication lines installed Brushes installed

19 th of February 2004 Gregory Crinum Mine 8 Rotary Breaker – Lubrication System Improvements 3-MONTH TRIAL (Started November 2003) Results Improved Automated Lubrication System Controlled and efficient application of lubricant Lubricant application in critical areas Excessive presence of lubricant in chain and surrounding structures eliminated Lubricant waste factor eliminated

19 th of February 2004 Gregory Crinum Mine 9 Rotary Breaker – Lubrication System Improvements Equipment Life Chain life was approx. 4-5mths Chain life currently 3 years and still going! Sprockets wear reduced Deterioration of surrounding structures reduced

19 th of February 2004 Gregory Crinum Mine 10 Rotary Breaker – Lubrication System Improvements Performance & Costs Improved equipment efficiency Reduced maintenance costs Increased maintenance intervals Increased equipment life Reduction of lubricant drums in stock Down time and loss of production reduced Workplace health and safety impact reduced Disposal costs eliminated

19 th of February 2004 Gregory Crinum Mine 11 Rotary Breaker – Lubrication System Improvements Environmental Lubricant is bio-degradable Non toxic Non carcinogenic Ozone friendly Safer to dispose

19 th of February 2004 Gregory Crinum Mine 12 Rotary Breaker – Lubrication System Improvements Results No lubricant spillage System performing efficiently Chain properly lubricated Cleaner work area

19 th of February 2004 Gregory Crinum Mine 13 Rotary Breaker – Lubrication System Improvements COST EFFECTIVE RESULTS 12 Months Expectations Savings of $ in lubricant purchase per year Maintenance costs reduced (equipment, parts and labour) Lubricant usage reduced from 2460 Litres (12 drums) to 328 Litres (1.6 drums) per year Delivery and storage costs reduced Handling and disposal costs reduced

19 th of February 2004 Gregory Crinum Mine 14 BMA Savings (over 2 yrs) using the Lanotec Lubrication System Old System Lanotec System Lube System N/A $3,000 Lubricant Cost $9,200 $7,500 Chain replacement(5) $30,000 NIL Labour on above $3,000 NIL Lost Production (30hrs) $3,000,000 NIL TOTAL = $3,042,000 $10,500 SAVINGS (2yrs) = $3,031,500

19 th of February 2004 Gregory Crinum Mine 15 Rotary Breaker – Lubrication System Improvements INITIAL INVESTMENT Chain Lube Pump/Spray unit Installation TOTAL COST: Price on application

19 th of February 2004 Gregory Crinum Mine 16 Rotary Breaker – Lubrication System Improvements CONTACT INFORMATION MARK PEATEY CHPP MAINTENANCE PLANNER GREGORY CRINUM MINE BHP Billiton Mitsubishi Alliance PO Box 1526 Emerald, QLD 4720 Phone (+61) Fax (+61) STEVE GREEN WESTERN AUSTRALIAN BUSINESS DEVELOPMENT MANAGER LANOTEC AUSTRALIA PTY LTD Phone (+61) Mobile (+61)