ACARP 2008 Improving Development Performance

2 ABM25s – From Plan to Production Background to Development at Ulan The plan to move development forward Why an ABM25s and ergonomic considerations and modifications to the ‘standard’ ABM25s machine Implementation of machine underground Performance full year 2007 – how did we go? Plan looking forward – 2008 and beyond

Background

4 Ulan

5 Development Background Need to keep in front of new 400m ‘Fat Face’ Long-term Ulan Development average of 224m per week Aiming for an average of 450m per week –12 months to double development rates –Installing more primary and secondary support than ever before on advance

6 The “Fat Face”

The Plan Forward

8 Business identified that “Fat Face” meant less overall development metres required for total Ulan reserve. Development needed to improve vastly in order to keep up with expected and future planned extraction rates 224m kept up with old Longwall 450m per week required to keep up with new Longwall

9 The Plan Forward How do we double rates and total metres in 12 months? 2007 Development Plan All decisions centred around people

10 5 Milestone (5M) Project

Development Plan QuarterTargetHow? Q1 Additional operating hours (  Op Hours with no change to roster or calendar) Reduced Delays Shorter Belt moves Maintenance strategy Operating strategy Contingency planning Panel Ownership Q2 – Q3 Efficient use of Additional Hours (  MPOH =  metres) Training Process Improvement Project Planning Q4 Effective use of increased metres (  LW Bang for Development buck) Long-Term Planning Mine design Operating strategy

Why an ABM25s?

13 Why an ABM25s? Now Ulan is a mine that sees Development install: –minimum of 6 x 6’ roof bolts per metre –4 x 4’ rib bolts per metre equivalent –Roof mesh modules –Rib mesh modules –2 x 4m Jennmar Cables every 2m on advance 5m either side of all intersections on advance –150 x 8m Jennmar Cables in belt road before belt move Ulan is a ‘traditional’ cut-then bolt mine (Joy, DBT etc) – that is: a good cutting machine that can bolt Conditions now suit a Bolting Machine that can cut coal

14 Why an ABM25s? Development Rates –Other Sandvik machines successfully employed at other mines –Aiming for an average of 2.5 MPOH –Current conventional machines best rates of 2 MPOH Workforce consultation with machine of choice People-based approach to all machine decisions

15 Why an ABM25s? Process undertaken to review machine options –Joy 12CM30 (Condition/strata based) – currently have 2 x 12CM12 –DBT 30MB3 (Ulan already own one) –ABM25 (or ‘s’ variant) Ultimately chose the ABM25s –Ability to cut and bolt simultaneously –‘s’ variant a narrower machine (approx 8”) –Breakaway’s, operator platform space, flitting, interaction –Ergonomic improvements over other ABM machines –Technology to expand in future (push button bolting etc)

Ergonomics

17 Machine Review Review conducted of older and newer ABM machines –What did they already do well? –What could be improved? –What influence could we have on our people and the interaction between “man and machine”? –Where is the “line in the sand”? Ulan Improvements with assistance from Sandvik (OEM) View that Ulan was purchasing a miner, not a deadline

18 Ergonomic Considerations Ulan Improvements with assistance from Sandvik (OEM) –Ventilation/Dust/Heat –Bolting Area Layout –Operator Platforms (Access, Hand Rails, Compliance) –Bolting Consumables –Machine Access (Past slip, trips, falls, ankles, knees etc) –Adjustable Operator Platform Height (Production and Maint) –Rib Mesh Holder/Locator –Machine Area Lighting –Operator Console –On-Board Tensioners

19 Machine Leaving Workshop - Austria

20 Machine – Operator Platforms Improved Operator Ergonomics and Work Space

21 Ventilation Whale Mouth rubber extended 6” to inbye side of curtains to ensure dust at face through full movement of cutter boom

22 Ventilation – ‘Man Fans’ Hydraulic powered and adjustable ‘Man Fans’ fitted to both sides of machine (aids in humid panel conditions and to keep dust at face)

23 Bolting Area - Layout Bolting Area Layout designed such that operator could bolt and not have to move feet or need to rotate body from hips down, bend over, or reach around (ABM shoulder). Bolting supplies are where needed Hydraulic Roof Plate Holder Chemical Box Holder Drill Steel/Roof Bolt Holder

24 Bolting Area – Open Access Two (large) operators can work comfortably side-by-side

25 Bolting Area – Open Access Bolting Area Layout can easily accommodate two large operators working comfortably side-by-side. One clear benefit of the ‘s’ machine being 8” narrower.

26 Bolting Area – Open Access Poly Steel Holder: 3 x roof bolts 1 x drill steel (avoids steel laying in walkways or laying on head) Layout of bolting area based on a triangle (reduce angle as much as possible)

27 Bolting Area – Open Access Bolting Area fitted with rubber matting to reduce fatigue Open Space and reasonably level platform

28 Operator Platforms – Open Access Open and Clear access to work areas. Noise attenuation panelling fitted to length of machine to reduce noise from hydraulic pump and pump motor. Significant reduction in heat into operator area

29 Operator Platforms – Hinged Hand Rails Hand Rails have been fitted with a hinged arrangement to allow greater walkway room. Can be then folded in when flitting or completing a break-away.

30 Operator Platforms – Step/Handle Large area at rear – potential to fall ABM25 use vertical ladder to access machine Stairway and handrails added

31 Operator Platforms – Step/Handle Hand Rail provides the necessary ‘three-points-of-contact’ for compliant steps/ladders Rear platform has been fitted with an arrangement so when folded up the hand-rail remains vertical. Steps are then secured out of way

32 Operator Platform – Height Adjustment Whole Operator Platform is height adjustable. Allows operator to set platform working height to suit cutting height and/or operator height. Avoids over-reaching strain injuries Can raise/lock platform for easier access to under machine for maintenance

33 Roof Mesh Carrier – Slide/Twist Mesh Carrier traverses machine down onto tail for loading mesh modules (x20 sheets) Rotates either way – depending on side machine ventilated from Supply Pod Roof Mesh Bundle

34 Rib Mesh Holder Rib mesh holder fitted to rib shield. Fitted in correct location/height for cutting profile, mesh sheet size and rib bolt location. Encourages operator to use side shield

35 Machine Area Lighting Improved area lighting along walkways, under tail, surrounding bolting areas, along ribs and at canopy/bolt level. Lighting test completed as part of machine commissioning

36 Machine Roof Lighting - Canopy

37 Operator Console – Screen/Rib Borer Operator Screen and Rib Bolting console designed to be at ergonomic level for screen viewing and handle heights. Bolter controls angled to allow better view of rib bolter

38 Operator Console – Screen Mounting Operator Screen is mounted on a pivot system. Allows operator to move/tilt/turn screen to suit individual. Screen mounted at eye-height.

39 Tensioner – On Board Intensification On-Board Pressure intensification for cable bolt tensioning. Does away with need for air hoses, foot pumps etc. Mounted on machine in a locked steel enclosure.

Implementation

41 Implementation Plan Formal Implementation Strategy –How to introduce to the mine –How to engage people and align with goals –How to convince workforce of machine benefits Implementation Plan –How to implement machine to the U/G environment –Implementation of the machine into panel operations –Staged approach swapping from Joy to ABM

42 Implementation Plan Bulk of work completed before miner ever on site –Risk Assessments –Roadway clearances –Regular crew talks and information sessions –Involvement from workforce in machine build –Operator/Trade involvement in all stages of machine modification, testing and commissioning –Panel processes and process management

Performance

44 Performance – Past 10 Years

45 ABM25s Performance Production commenced July 2007 Aiming for a minimum average of 2.5 MPOH Achieved an average of 2.5 MPOH – peaks at 7 MPOH+ Aiming to have 4 MPOH+ ongoing

46 Performance – Pillar Cycle Times (100m) JOY ABM

47 Performance – Flit Times

48 Operating Reports 8.6min average cycle = 7 MPOH

49 Operating Reports

50 Operating Reports

51 Real-Time Machine Monitoring

52 Cutting Cycle – 9 Step 0.5m 9 - Clean-up Run Step Cut Cycle Step 1 to 4 Step 5 to 8 Step 9 – Clean Options are programmed into Auto-Cut 3.1m

53 Horizon Control

2008 and Beyond?

55 What Did 2007 Show Us? 2007 showed that Development: –can do it! –do some things very well –can do other things much better –can be more efficient –can be cyclical in nature –have good people and know how to “cut coal”

56 Development as a Business Development Operating System –Operating strategy –Maintenance strategy –Robust Planning system - Authority to Mine –Cost management –HSEC –Review Process For Development, we can have all the procedures and processes under the sun If no-one knows them or regularly audits them – may as well not have them. Process

57 How Much Value do we Really Add? Total Available Time Scheduled Production Time Available Operating Time Reported Run Time Net Run Time Efficient Net Run Time Value - Adding Time 24 x 7 = 168hrs p/w Scheduled Down Time Setup Time Delays Unrecorded Delays Slow Spee d Rejects Rework Maintenance, Rosters Belt Moves, Flits, Relocations Breakdowns as per Deputy Reports Supplies, Wait on Car, Vent Tube Ext, Sec Support Proficiency, Speed of Bolters, Wheeling Roads, Miner Driver Floor brushing/cleaning, trimming, pull back for additional support

58 How Much Value do we Really Add? Total Available Time Scheduled Production Time Available Operating Time Reported Run Time Net Run Time Efficient Net Run Time Value - Adding Time Scheduled Down Time Setup Time Delays Unrecorded Delays Slow Spee d Rejects Rework Metres per Operating Hour Hidden Inefficiency

59 Tool to Improve… Total Available Time Scheduled Production Time Available Operating Time Reported Run Time Net Run Time Efficient Net Run Time Value - Adding Time Scheduled Down Time Setup Time Delays Unrecorded Delays Slow Spee d Rejects Rework Traditional Approach Belt move improvement – 10 day cycle 24 to 14 hours (10 / 240 = 4% improve) Different Approach 5% in all areas = 30% improvement

60 The Future – Vent/Services Mono Rail

Conclusion

62 Conclusion Project commenced 12 months ago to replace ageing continuous miner fleet Development required a ‘step-change’ Focus on how people relate to the machine, and how the machine relates to the environment Recognising the value of measuring and continually auditing Recognition that people will ultimately ‘make or break’ any amount of good work or equipment

63 Conclusion Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes” Hajime Ohba, Toyota, 2007