ROADWAY DEVELOPMENT IMPROVEMENT PROJECT

1. ROADWAY DEVELOPMENT IMPROVEMENT PROJECT CM2010 Update Greg Pawley, Xstrata Coal Bob Gordon, BHP Billiton Illawarra Coal Guy Mitchell, BMA Coal August/September 2010

2. CM2010 Update • CM2010 R&D Strategic Review • Current Projects • New Projects Under Consideration CM2010 Update August/September 2010

3. CM2010 R&D Strategic Review • Strategic review conducted in July 2010 with objective of reconfirming and/or amending the CM2010 Vision, Goals, Measures and Strategies in the context of developments to date, and potential R&D achievements over the next 3 years CM2010 Update August/September 2010

4. Review Inputs • Existing CM2010 Vision, Goals, Measures and Strategies • Review of current research initiatives including both ACARP funded projects and direct industry funded initiatives (mines and OEMs) • Fundamental Analysis of Roadway Development System – Richard Porteous’ excellent analysis of contributing factors to roadway development performance • Roadway Development Technology Audit – report of the Audit completed earlier this year across mines, OEMs and suppliers • CM2010 Technology Gap Analysis – as completed by RDTG CM2010 Update August/September 2010

5. Fundamental Analysis of Roadway Development • Richard Porteous’ 2008 study across Xstrata’s 11 mines illustrated that adoption of current and emerging technologies has the potential to achieve significantly improved development rates • Study based on standard bolting cycle of 6 roof and 4 rib bolts per metre, with base case of a miner-bolter and 1 SC (bolting constrained system) • Study examines effect of various refinements to the system: • Adoption of a bolter-miner with concurrent cutting and bolting • Employment of a second shuttle car throughout pillar cycle • Adoption of self drilling bolts • Utilisation of a continuous haulage system • Projected that a rate of 8.5MPOH could be achieved with these measures • Fully details of report available at www.undergroundcoal.com.au CM2010 Update August/September 2010

6. 2010 Technology Audit • Recommended that the RDTG maintains general thrust of CM2010 and review R&D priorities in regards to: • The development of remote bolting technologies including: • Self drilling bolts • Bolt, washer and mesh storage/handling • Remotely controlled/automated bolting rigs and manipulators • Associated sensing and monitoring systems • The development of CM self steering technologies including: • Remote sensing, seam profiling, and video monitoring • Machine navigation and steering • Communication protocols • Machine supervisory/auto-reporting systems (including development of “black box” data logging system) CM2010 Update August/September 2010

7. 2010 Technology Audit • Recommendations regarding general thrust of CM2010 (cont): • Addressing issues associated with on-board ventilation systems • Development of SC guidance (automation) systems • Addressing issues associated with management of face services, by either continuous haulage or monorail systems, including development of self advancing system in later instance • Developing strategies to address equipment certification and regulatory issues, including adoption of EMERST design philosophies • Also recommended that mines continue to undertake operational research to optimise face cycle times and engage change management expertise when introducing new development technologies and processes CM2010 Update August/September 2010

8. CM2010 Technology Gaps • Technology gaps identified in CM2010 R&D strategy include: • CM roof/floor horizon control • Long tendon installation • Monorail advancement systems (or alternatively, ventilation installation and extension systems) • Higher capacity ventilation systems • Remotely steered (automated) shuttle cars • Collision avoidance systems – people and machinery • Supply/logistics systems • Conveyor advancement systems • Services advancement systems • Technology/systems integration • Communications – both verbal and data CM2010 Update August/September 2010

9. CM2010 Phase II R&D Strategy • Vision • An integrated, remotely supervised high capacity roadway development mining system that enables 15 Mtpa longwall mines to be established and sustained with a single gateroad mining unit • The system will also enable mining to be safely undertaken under adverse or extreme mining conditions, thus opening up access to reserves previously considered un-mineable • Measures • A sustained performance rate of 10 metres per operating hour (MPOH) for 20 hours per day, based on installing primary support of 6 roof and 2 rib bolts per metre advance together with roof and rib confinement measures (mesh) • Improved health and safety through reduced exposure to hazards in the immediate face area CM2010 Update August/September 2010

10. CM2010 Phase II R&D Strategy • Goals • By end 2010, demonstrate key enabling component technologies that will form the basis of an integrated high capacity mining system, eg; remote operation of the continuous miner, automated self drilling bolts and mesh installation, continuous haulage, integrated panel services • By end 2015, demonstrate all the elements of an integrated, remotely supervised high capacity roadway development system • Progressively reduce the physical demands on personnel engaged in the development process and reduce their exposure to workplace hazards • Encourage and support mines to develop the key organisational and technical competencies required to support a high capacity mining system eg; improved engineering availability, people behaviour and skills, and planning, organisation and process control CM2010 Update August/September 2010

11. Current Projects • C16022 – undergroundcoalcom.au • Recently gone live and can be accessed via web-site • Continuing to develop site with industry support • C17004 – ToughSkin • Consolidating polymer chemistry research following departure of lead researcher March 2010 • Recently identified an industry partner to continue development of polymer and coating formulation, including registration, certification and licensing of product • Evaluating challenge posed by NSW Chief Inspector’s notification specifying that application or injection of polymeric materials for strata support is a licensable activity • Stage III of the project to commence January 2011, subject to ACARP funding CM2010 Update August/September 2010

12. Current Projects • C17017 – Automated Bolting and Meshing System • Successfully demonstrated all components of system except rib bolt manipulation (now due October 2010) • Stage II of the project has commenced and includes an underground trial and demonstration of system, and concept design of an integrated logistics system • Initial focus is to fully animate proposed system and examine issues associated with full automation of system in underground environment • RDTG member companies identifying suitable site and continuous miner to conduct underground trial • C18023 – Continuous Miner Automation • Successfully demonstrated components of navigation system • Stage II recently commenced and includes an underground trial of navigation system on Phoenix CM2010 Update August/September 2010

13. Current Projects • C17010 - CM2010 Project Support • Development of Roadway Development Handbook temporarily suspended to allow focus on providing project management support toToughSkin • Continuing project support role proposed across all CM2010 related projects, including continuation of Roadway Development Operators’ Workshops to end 2012 CM2010 Update August/September 2010

14. New Projects Under Consideration • Rapid Advance Conveyor • Oregate Pty Ltd • Automated Monorail Extension System • Macquarie Manufacturing and UOW Automation and Robotics Group • Development of FRAS Rated Polymeric conveyor Idler for Underground Coal Mines • Ellton Longwall/Dotmar Engineering Plastics/Intelligent Polymer Research Institute (UOW) CM2010 Update August/September 2010