Sophisticated Simplicity Heavy Haul Operations Supported by Proven Technology Mike Darby Karribrook WA Pty Ltd

Presentation Overview  What is “Sophisticated Simplicity”?  BHP Billiton’s Railway NW Australia  BHPB’s use of technology  Example of Sophisticated Simplicity in a Heavy Haul Railway Operations supported by proven technology 5/24/2015 2

What is Sophisticated Simplicity? Traditional Approach Simple System Proven Technologies

BHP Billiton Ltd  Is the worlds largest diversified resources company (>US$100 billion)  Global resource development company  BHP Billiton Iron Ore located in Northern Australia: Developed a “ Fit for Purpose ” Railway Operates in a harsh and isolated environment Operates the heaviest axle loads/trains in the world

Operations in ‘Cyclone Alley’

BHP Billiton Iron Ore Railway

History of the BHP Billiton Railway  Mt Whaleback was the largest single iron ore deposit in the world (>1 billion tonnes)  Historically Iron Ore deposits in Western Australia seen as too far (400 km) from tidewater prior to heavy haul railways  Heavy haul rail line built in 1969 by North American contractor  In 1970 Oroville Dam Project cars and dumpers brought from California to Australia / evolved as a North American Railroad  Regulated by Mines Department not DOT

BHP Billiton Iron Ore Railway  Good Safety Is Good Business  Continuous Improvement  Use Assets to Their Full Potential  Research and Development Operating Philosophies:

 High axle load issues  Hot bearing-Hot/Cold Wheel Detectors  Wheel Impact Monitor  “Weigh-in-Motion” Weighbridges  Acoustic Bearing Detection  Instrumented ore cars  Auto Locomotive Downloads  Video Imaging  Workshop Initiatives Proven Technologies

Axle Load Evolution tonnes 30.0 tonnes 32.5 tonnes 35.0 tonnes 40 tonnes Wet tonnes per wagon Axle Loading

Issues with 40 tonne Axle Load “Thermit” Welds/Flash Butt Welds “Thermit” welds – 2% failure/annum flash butt welds -.008% failure/annum - Program in place to replace “thermit” welds Rail Grinding Program Wheel/Rail Interface Weekly Rail Ultra Sonic Inspection

Thermit/Flash Butt Welds

Stress Free Temperature (SFT)  Incorrect SFT leads to: Track buckles – when hot Rail Breaks – when cold  1,000 meters 60°C is 5°C  25°C change causes 92 tonnes of tensile force  “Thermit” welds Sensitive to SFT & lateral loading  Concrete SFT °C  Timber & Steel SFT °

Painting Welds Reduce lateral loading

Hot/Cold Wheel/Bearing Detection  18 hot bearing wheel detectors  1 cold wheel detector  Automated and site activated

Impact Detection & Weigh-In Motion  1 impact load detector  4 weigh-in motion scales

Acoustic Bearing Detection Following faults are detected:  Cone Faults  Roller Faults  Audible Wheel Flats  Cup Faults  Looseness / fretting  Noisy Wheel sets (flanging)

Consequence of System Breakdown

Result of System Breakdown

 4 IOC ’ s in service  Vertical suspension travel (ride quality)  Wheel-rail acceleration (rail condition)  In-train forces  Lateral stability (hunting)  Longitudinal acceleration  Car body/draft gear pocket strains  Temperature  Brake pipe pressure Instrumented Ore Cars (IOC)

Auto Locomotive Downloads The “Black-Box” is downloaded at each arrival at port  Driver education/incident management  Fuel utilization  Data for automated train operation  All operating parameters

Video Imaging Measures:  Flange Height  Flange Width  Vertical Flange  Hollowing Depth  Rim Thickness  Wheel Diameter

Workshop Initiatives  Component Tracking  Ultra-Sonic Wheel Testing  Super Clean Wheel Specs  Bearing Quality Assurance  “H” Class Bearings  40 tonne trucks  Side Wall Thickness Tracking  Asset Protection Information Integration

Ultrasonic Wheel Inspection

Shop Facilities

37 Traceable Components for each Ore Cars Component Tracking

Coupler Inspection  Developed in UK, for in- situe inspection  Uses ultrasonic probe inserted through the drain hole  Detect lower pulling lug cracks which are the primary mode of failure for fixed & rotary couplers

BHP Iron Ore Railroad Ore Car Wheel Life million km million km Life extension fold increase Rail Life (Tangent Track) million gross metric tonnes metric tonnes Life extension 350 1, fold increase R&D into the rail/wheel interface allows for the useful life of assets to be extended Productivity Results

Employee Productivity Tripled in the last 10 years (‘000’s tonnes per employee /yr)

Heavy Haul Railways of the Future  KIS: Keep it simple Train operation designed with minimum interfaces  Implicit safe operation Design the operation to avoid train movements  Intense capital utilization Use assets to the fullest  Integrated knowledge process implementation Proven technology to protect assets

The Knowledge Process Integrated data collection information implementation knowledge System management

What’s in the Future ?  Continued safety focus  Human resource efficiency  Higher axle loads  Evolution of “ Cruise Control ”  Automated trains  Electric brakes

Electric Brakes  Handbrakes on grades can be managed  Ease of train handling all brakes on and off simultaneously within 7 seconds graduated release Faster brake charging time  Reduced in train coupler forces and less brake shoe wear  Distributed power (no radio based locotrol)  End of train monitoring  Brake system charges while brakes are applied  Load / empty features not required

Advantages cont.  Faster train cycle time Faster accelerations brakes release sooner May be able to increase speed of loaded trains Graduated release of train brakes  Individual wagon brake status monitoring  Fault finding i.e. train break location  Faster train brake charging times (uses less air)  Fuel savings as brakes release faster  Increased wheel life No sticking brakes / hot wheels  Even wearing brake shoes

“Highway” for future Developments  Derailment detection  Hot bearing / hot wheel detection  Hand brake status  “GPS” train braking (individual brakes graduated as loads traverse undulation)  Car weights linked to load out facilities (ensures each car is loaded to maximum)  Automated trains platform

Objective “Move 6 million tonnes of product per annum a distance of 100 km”

Simple ApproachTraditional Approach  250 cars/wagons  7 locomotives  Rotary/Bottom dump wagons  Rotary or bottom dump station  80 employees  Extensive track/yard system  Cost for plant >US$100 million  High maintenance costs  80 cars/wagons  3 locomotives (Push/Pull)  Side dump cars/wagons  Flat unloading platform  35 employees  Simple track/yard system  Cost for plant <US$30 million  Less plant to maintain  Supported by proven technology

The End Result