Maintenance 2012 @ Vattenfall Europe Mining AG Overview of VEM Methods and Measures Maintenance organization Results Cottbus, 06.06.2012

What we did in VEM over the last years? Maintenance = core business Clear functional divide between maintenance and operation Outsourcing of part of maintenance to competitive local market Modernization of equipment Centralization of strategy, planning and budgeting Unification of components One central warehouse for 5 mines and 12 power plants Concentration of production and performance increase Implementation of sophisticated diagnostic systems Implementation of SAP; TIS, ZEDAS and other software systems Continuous improvement process with process line approach Management tool to measure the success of maintenance - PMB 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

The Lusatian Lignite Mining Area – 5 active mines Status: 01.01.2011 Vattenfall Records 2010 Guben Jänschwalde-Nord Lignite Production Jänschwalde Cottbus-Nord Welzow-Süd Nochten Reichwalde 56.7 mill. t 11.5 mill. t 5.8 mill. t 20.7 mill. t 18.7 mill. t 0.0 mill. t Spree Jänschwalde power plant Spreeaue Jänschwalde mine Brandenburg Cottbus-Nord mine Cottbus Jänschwalde storage site Overburden Removal Jänschwalde Cottbus-Nord Welzow-Süd Nochten Reichwalde 406.3 mill. m³ 121.4 mill. m³ 24.6 mill. m³ 137.9 mill. m³ 118.6 mill. m³ 3.8 mill. m³ Forst/ Lausitz Neiße Bagenz-Ost Welzow-Süd mine Overburden Ratio 7,17 m³/t Republic of Poland Partial section II, Welzow-Süd Spremberg Spremberg-Ost Mining field 2, Nochten Power plants (installed capacity) Jänschwalde Boxberg Schwarze Pumpe 7,175 MW 3,000 MW 2,575 MW 1,600 MW Schwarze Pumpe Nochten mine Weißwasser Storage site „Spreyer Höhe“ Hoyerswerda Reichwalde mine Spread of the 2nd Lusatian coal seam Mined out seam areas Saxony Boxberg power plant 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM 3

Principle of Opencast Mine Process in Lusatia 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Overview Heavy Opencast Mine Equipment Overburden Conveyor Bridges 5 units Bucket wheel excavators 19 devices Bucket chain excavators 27 devices Spreader & Belt wagon 19 units 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Quantity structures of active plants (Plan 2011) Designation Number / Length Overburden conveyor bridges 5 Excavator, reclaimer 46 Spreader, belt wagon 19 Belt conveyor systems     96 km Cables and overhead lines 600 km 110 kV Transformer stations 6 Locomotives 76 Rail cars 967 Track network incl. equipment tracks 553 km Track shifting Machines 39 Dewatering Pumps 6797 Pit water purification plants 4 Control centres Raw coal production 59.5 mill. t Overburden removal 417.3 mill. m3 Water pumpage 383.2 mill. m3 Drilling meter 105.4 km Sealing wall 119.0 tsd. m2 Men-hours 853.0 tsd. h 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM 6

Applied maintenance methods and their shares Travelling gears thereof rail cars Limit switches Air-conditioning systems Digging tools Belts Drums Motors Gearboxes Transformers Control systems Converter Cables Lines Ropes Linings Crawler track shoes Idlers and garlands Aprons Track wheels Value percentage of process allocation 2010 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Typical maintenance measures for mining equipment Service Planned weekly repair (8-12h) Annual overhaul (14 days in the first and 28 days in second year) Trouble shooting and defect removal Ad hoc repairs parallel to other stand stills Project measures – technical reconstruction, life time extensions Complex modernization and rehabilitation measures 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Organisational Structure of Opencast Mine Safety Laws, Standards & Regulations VEM Board of Directors Technical Services Mining Department Securing and proof of technically necessary standard For the requirements of mining Use of plants and equipment with authorized personnel according to current technical documentation Recognized experts for heavy opencast mine equipment Mining authorities 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Structure of Vattenfall Europe Mining in 2010 3 Strategy 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance Department HO: Systems Engineering Equipment strategy planning Investment planning Life time extension Modernization planning R&D activity planning Innovation planning Performance increase planning System integration planning 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance Department 1: Field Service Structure: Mechanical Field Service Team mines Jänschwalde / Cottbus N Electrical Field Service Team mines Jänschwalde / Cottbus N Mechanical Field Service Team mines Nochten / Reichwalde Electrical Field Service Team mines Nochten / Reichwalde Mechanical Field Service Team mine Welzow Electrical Field Service Team mine Welzow Staff unit (Planning and works preparation) Central power supply and network service Tasks Supervision and evaluation of equipment condition Identification and specification of repair measures (works, spares), Involvement and supervision of outside service companies Standard repairs, planned repairs and defect removal 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Mechanical Field Service Team mines J/CN Substructure: Field teams for process lines (precut, bridge, coal system) Trouble shooting and defect removal group Local workshop repairs Work and repair preparation group Example for involvement of outside services and personnel in a typical weekly repair (8-12h): VEM supervision Contract worker Precut 4 20 Conv. Bridge 8 40 Coal system 4 15 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance Department 2: Technical Office Planning and implementation of innovations Planning and preparations of complex reconstructions / modernizations Technical process optimization and bottleneck removal Supervision and maintaining of mine equipment safety Component unification Setting and adjusting of internal technical standards Administration of all technical documentation of VEM Elaboration of technical solutions for special areas Coordination of outside and inside works and supplies Preparation of technical specifications and tender documents for complex rehabilitation measures Project Management and Implementation Supervision for large and complex project measures 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance Department 3: Central Workshop Tasks: Defect removal / service and maintenance of rolling stock repair of railway equipment, reconditioning of wheels, drives,… Repair of underground motor and waste water pumps Repair of mechanical mine equipment components and units: Buckets, bucket chains, belt drums, gearboxes, turas, crawler plates, travel gears, wheels, other Reconditioning of standard components Component and material management Measuring and test service Features: 50 million EUR turnover per annum 14 000 SAP repair jobs and work orders per annum 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Central warehouse and logistics Schleswig-Holstein Rostock Mecklenburg-Vorpommern Hamburg Schwerin Brandenburg GTKW Ahrensfelde (G) Bremen GTKW Thyrow (G) Berlin Niedersachsen Jänschwalde, Cottbus (M), KW Jänschwalde (G) Hannover Magdeburg Schwarze Pumpe (M), KSP Schwarze Pumpe (G) Sachsen-Anhalt Cottbus Welzow (M) PSW Wendefurt (G) Halle Leipzig Nochten / Reichwalde (M) Boxberg (G) Sachsen Dresden KW Lippendorf (G) Erfurt Thüringen PSW Niederwartha (G) PSW Hohenwarte / PSW Bleiloch (G) Saalfeld Chemnitz PSW Markersbach (G) PSW Goldisthal (G) 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance Department 4: Central Warehouse Timely and efficient supply of spares, materials and components Material, spares and component disposition Storage, commissioning, distribution and shipment av. Spare parts and material stock for mining 66 million € 5 internal petrol stations annual value of mining outtake: 103 million EUR Annual number of spare supply orders: 79 000 Annual number of SAP material orders: 217 300 Annual number of transports for mining: 12 000 Annual number of claims: 700 Workforce: 34 employees full time 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Already implemented Equipment Optimisations at VEM Main drives on excavators: (equipment and construction) direct drives at bucket chain excavators extension of digging tools optimisation of bucket chains new design of bucket wheel boom head Belt drives converter drives at belt conveyor systems new generation of drives conveying lines on overburden conveyor bridge systems Conveyors: (design and construction) transfers / chute design baffle plate construction idler garland geometry / dimensioning noise emission Control systems and process instrumentation and control centralised operation control (central control rooms) complex systems of production coor- dination and coal quality management tools of plant diagnosis complex automation functions at large opencast mine equipment 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM Confidentiality - None (C1),

Extended Process Data Acquisition by Systems Engineering Drums Bearing Belt Gearboxes Undercarriage Idlers drive, operating time PLANT CONDITION Analysis Modelling Optimization Trend Knowledge Parameters History Structure Diagnosis Operating time, reference model Condition, operating time Temperature, vibration tension force, reference model speed, moment, lubrication Process data in functional context (temperature, vibrations, process data) SAFETY AVAILABILITY COSTS 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Internal Diagnosis-Specialist External Service partner Plant - and Process Diagnostics Maintenance Drive Station Monitoring System Monitoring System Monitoring System Monitoring System Monitoring System Monitoring System Monitoring System Monitoring System Monitoring System LAN Ethernet (LWL) TCP/IP Internal Diagnosis-Specialist Firewall Control centre Systems engineer ISDN- Access- Router WAN- connection Router LAN Ethernet TCP/IP PC-Network Schwarze Pumpe PC-Network opencast mine LAN Ethernet TCP/IP Modem Telephone network External Service partner System maintenance 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Time balance @ Precut system Jaenschwalde 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Performance increase Precut system with SRs 2000 (1557) 14,7 Mio.m³ 18,5 Mio.m³ 19,8 Mio.m³ 20,9 Mio.m³ 23,3 Mio.m³ 18,2 Mio.m³ 19,0 Mio.m³ 16,4 Mio.m³ 21,9 Mio.m³ 4.561 m³/h 4.798 m³/h 5.231 m³/h 4.373 m³/h 4.112 m³/h 4.009 m³/h 3.753 m³/h 4.573 m³/h 3.223 m³/h 5 10 15 20 25 30 35 40 45 2001 2002 2003 2004 2005 2006 2007 2008 2009 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 5.500 [Mio.m³] [m³/h] 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance cost per m³ BWE-belt-spreaders system JW 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Breakdown rate 2011 for BWE – belt-spreader systems 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Breakdown rate 2011 for Conveyor bridges 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Breakdown rate 2011 for Coal belt systems 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Life resource growth vs. maintenance cost: bucket chains Life resource development of one bucket chain in million. m³ Specific cost for bucket chain maintenance in cent/m³ cent/m³ Mio.m³/EK 16 14 12 10 8 6 4 2 8 6 4 2 1991 1992 1993 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001 2002 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Maintenance costs mining 1995-2010 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Split of maintenance cost in 2010 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

Summary and outlook VEM Maintenance has to ensure an extended equipment fleet service life without performance restrictions having an average age of approx. 38 years Cost reduction and efficiency increase is possible by a systematic identification of potentials and cost drivers in the ongoing operating process Efficient division of responsibilities between commercial data network and process data net-work The data-technical link between Preparation/ Planning, Execution/ Maintenance , Operating Control is the key for a mining-related total process optimization 12.05.2018 | MIning Solutions and PL-PPE; Strategie_IH_VEM

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