Challenges in moving from ad-hoc to planned mine technology innovation

1. Challenges in moving from ad-hoc to planned mine technology innovation

2. Why Innovate in Mining? • Obvious, right? • Increase productivity and profitability • Improve safety and ergonomics • Improve our environmental record and eliminate liabilities • Implement process control methodology • Introduce information systems technology to gain control • Low hanging fruit • Reference • Heather Ednie, Innovation CIM Magazine Feb. 2006 • Peck & Skinner, Getting better bang for your buck with technology

3. Issues • Most new mine technology today has been dependant on OEM/OTM innovation • Super Haul trucks (CAT 797, Liebherr T282B, Komatsu 930/960E) • GPS Technology (CAT CAES, Aquila Drill Manager, etc) • Fleet Management Systems (CAT MineStar, Modular Intellimine) • New Technology usually evaluated by the chief engineer at an individual mine, in his spare time • Acceptance usually hindered by “fear of change”. • Implementation usually hindered by: • Lack of funding • Management support • Operational constraints • Availability of manpower (local site champions) • Integration with legacy systems • Not invented here

4. PDMC Mine Technology • Formally established in 2003 • General charter: • Improving mine safety • Protecting the environment • Increasing productivity and efficiency • Enhancing machine availability • Reduce operating costs and capitalization • Key Focus Areas • Smart machine technology • Smart systems • Automation and autonomous mining systems • Bulk material handling

5. PDMC Mine Technology • Technology development through five steps: • Technology identification & business justification • Lab testing through third party participants • CRC Mining, Universities, entrepreneurial companies • Field testing utilizing any of ten active mine sites • Technology distributed across most sites • PDMC mine implementation – Budget inclusion • Commercialization where appropriate • IP evaluation and protection throughout process • MTG includes: • Seven full-time project managers / SME’s • Management of over 30 active technology projects • Benchmarking technology and methods

6. PDMC Mine Technology • Typical projects include: • Safety: • Equipment mount/dismount technology • Driver fatigue monitoring • Proximity Warning • 3-Point operator seats • Advanced operator simulation training • Radar-Lidar slope and ore pass monitoring/warning system development • Jolt-jar driver evaluation • Environmental: • Blast vibration monitoring and control. • Dust suppression. • Operator ergonomics. • Used oil in ANFO.

7. PDMC Mine Technology – Projects Continued • Other: • Pit slope optimization. • Advanced controlled blasting. • CAES for precision ore control. • Mine management system evaluation. • Drilling: • Drill - autonomy • Water-jet assisted drilling • Blasting: • E-det utilization • SPLIT fragmentation monitoring • Optimal blast design • Loading: • Shovel payload system • Shovel operator feedback system • Optimal shovel control • Adaptor sensing and control

8. PDMC Mine Technology • Haulage • Large scale truck evaluation • Cat 797B vs. KAC 930E • Autonomous haulage systems • Mass material transport • New engine technology – Cat HD (LNG interest) • Tire sensing, monitoring and management • Ultra-light bed testing • Oil contamination control – component optimization • Navigation control / peer-to-peer wireless data management

9. Biggest Challenges and Industry Needs Integration of technologies • Operating systems • Proprietary hardware/software • Operator interfaces (displays) • Communication systems Connectivity and Technology Standards Vision (Skinner & Bartlett) • Major mining equipment should be configured by the OEM/OTM to be a natural extension of the mine operators Local Area Network. • Hardware technology should be designed to be “plug & play” regardless of its intrinsic proprietary nature. • Third-party applications can be readily integrated and cohabitate with, OEM software and application architecture. • In all cases, data generated by an application is the sole property of the owner/operators while respecting the confidential nature thereof. • Accessibility to the data will be freely provided without the need for additional interface programming

10. Slope Stability Radar

11. Slope Stability Radar

12. Simulator Utilization New Operator Training • 1100 Operators Trained In Last 2 Years • Control Familiarization • Reduces Time Required In Field • Proper Operating Procedures • Reinforces Classroom Instruction • Emergency Procedures • Provides Opportunity To Practice Emergency Responses That Would Otherwise Be Unavailable

13. Morenci Simulator Results Baseline Findings • Emergency Procedures • 80% Failed To Successfully Respond To Fire • 60% Failed To Successfully Respond To Loss Of Brakes • Equipment Abuse • 85% Had Some Form Of Brake Misuse • 40% Indicated Misuse Of Transmission

14. Conclusions • Mining R&D with Corporate mandate provides support for internal innovation • More projects can be evaluated and successful projects have business case • $ available to find solutions • Encourages sameness and alignment of technology • Benefits accrue to all properties • Better networking with other industry representatives • Vendor channel established to be heard • Can generally stay abreast with OEM/OTM developments • Allows us to coordinate and represent industry-level efforts