Development Taskforce Presentation Dendrobium Coal Development Taskforce Presentation

Dendrobium and Illawarra Coal Commenced construction 2001 for continuity of number 3 seam supply for Illawarra blend Commenced longwall production April 2005 Transport via rail network to Dendrobium Washery

Dendrobium Mine Portal Area 1 Longwall Blocks No.1 Vent Shaft BlueScope Steel & Coal Terminal

Regional location Cordeaux Dam Mine site Stockpile and coal handling facilities Mount Kembla Village

Mine plan overview Operational constraints Mining within a sensitive catchment Multiple external approvals Geology and structural intrusions Proximity to other existing mines Curfews for transport Community proximity Longwall constrained by development

Development Equipment Overview Gate road: 2 x Voest Alpine continuous miners (superpanel) 2 x 15SC 32 Waratah Shuttle cars 1 x Stamler feeder 1 x 18m3 and 1 x 23m3 Auxiliary Ventilation Fans Conveyor 1500mm fastgate Mains Headings: 1 x Joy 12 CM 30 continuous miner 1 x 10 SC 32 shuttle car Conveyor 1800mm bolted structure 1 x 18m3 auxiliary ventilation fan

Constraint- Mining under and adjacent to old mine workings Risk management and gaining approval for development and extraction Pillar by pillar approval requiring up holes for drainage Water management under Mount Kembla Colliery – infrastructure to pump up to 150l/s Training and authorisation of personnel to work in control zones

Constraints – Exploratory and statutory drilling Stubs driven off gate roads

Constraints – Geology (MG3 ABM20 superpanel) Geology – Low strength roof conditions with a large number of low angle faults and dykes. Support type is the primary driver of development performance Cycle time range: 7 -19 days Cutting rate:0.5m/hr – 3.5m/hr

Constraint - Geology Roof falling to 5.5m on first workings and roadway for future tailgate Normal mining horizon 3.2m Red Support density Typical Jointing on Development

Improvements – Changing mining horizon Historical soft floor conditions Reduced sprains/strains – muddy conditions Reduced production delays - bogging of equipment, cleaning of roads and pumping Reduced equipment damage Ramped up on coal 15th Dec 05 Floor conditions changed 9th Apr 05

Improvement – Gate belt installations Working at heights and time constraints Transfer point, Jiffy drive & structure - installed first pass at 3.1m high Panel sequenced around jiffy belt installation - 4-5 days Hydraulically tensioned boot Allows final drive / LTU installation - 2-3 months Working at heights risk reduced

Improvement – Gate belt installations Jiffy drive configuration : flameproof 110kw with delay fluid coupling mounted from head pulley off a torque arm Hydraulically tensioned boot end for use with the jiffy drive gate belt installation.

Improvement – Fit for purpose equipment Building on the work from Centennial Coal - machines modified to better control variable strata conditions. Stage 2: Tilt on apron Stage 1: removal of CLA and fitment of EW shovels

Improvement – Supervisory leadership Managing performance and developing people - frontline supervisors Supervisors relatively young with little experience Conducted a site survey on Leadership. Linked leadership to front line competencies Real workplace ‘projects’ as learning vehicles and supported by workplace coaching Tailored Certificate IV ‘Business’ Review and evaluation on-going

Upcoming challenges: Mining at grades Grade of 1:5 seam profile (9m seam section)

1:8 Drifts to remain within Seam from NWM 13 – 20c/t Upcoming challenges: mining at grades 1:8 Drifts to remain within Seam from NWM 13 – 20c/t

Summary Dendrobium is a simple mine constrained primarily by location and geology, though forms an essential part of the Illawarra Coal business Continue to learn about more accurate forecasting and management of local number 3 seam conditions Rationalising development for simplicity, and consistency Continue to seek changes to equipment- fit for purpose Considerable challenges ahead - mining at grades