The Future of Mining Technology Thank you for the opportunity to speak today. These are exciting and rapidly changing times This topic is getting significant attention in the current economic conditions. Caterpillar have a long association mine technology and autonomy and have a continuous investment in this space over the last 30 years. Today I will briefly explore some of the key drivers for mine site technology and autonomy And share an overview of caterpillar strategy and road map for this space. The development of technology for mining And key drivers for success in this space All that said the blue dot of the completely autonomous mine is many years away. However the semi autonomous mine with a combination of operated and autonomous vehicles is a reality today. Jim Walker WesTrac Pty Ltd June 2011

Technology Drivers Safety Reduced operator exposure Cost & Productivity Better process control, efficiency Improved utilisation Labour—infrastructure, recruiting & training Mine site optimisation Asset - ore body Fixed and Mobile asset Sustainability Reduced Carbon foot print So what are the key drivers for mine site technology. Arguably the primary driver is managing the variables that exist in manned operations. Access to skilled and semi skilled employees is becoming more difficult. Issues such as employee retention, availability of training resources and an over all reduction in the experience level in the industry give rise for a need to manage these variables to ensure a safe and predictable mining operation. Ultimately technology offers the opportunity to address Reduce variability in the mining process and Increase safety, productivity and predictability. Availability of labour – today the typical cost of operating a a piece of mining machinery in a 24/7 operation if close to $1million if you can get the operator!!! Management of these elements will allow for a higher level of ore body optimisation as well as increased utilisation of the mining assets Over 20 years ago Caterpillar had the first Autonomous mining truck however the autonomous mining truck alone does not address the Business and Health Safety Environment and community risks. Also when Caterpillar first introduced our autonomous truck in 1996, we also discovered the industry and customers weren’t prepared for the process and people changes that would need also be a part of the successful implementation of an autonomous truck. Our popular media based up bringing has given us the irrational fear that we might see the headlines in “the Australian”, “Monster Robot Truck runs rampant in Kalgoorlie” whilst this is not the reality the business and HSEC risks are real. Until we achieve the blue dot of the fully Autonomous mine the technology will need to manage the manned and unmanned aspects of the mining process Over the next 20 years the focus has been developing the integrated technologies designed to address these risks. We will explore these in the coming slides.

Intelligent Remote Control of Earth Moving Machines Research Intelligent Remote Control of Earth Moving Machines Autonomous Machines The development does not stop with the DARPA challenges, Caterpillar is actively pursuing the development of remote / autonomous earthmoving machines for use in extra terrestrial mining applications through our work with NASA. This is augmented by competitions such as the lunabotics mining challenge which is a similar challenge to the DARPA.

Building Blocks & Technology Integration Topic: Technology integration… Caterpillars approach over the last 20 years has been to build a stepped approach to mine site technology. Many of these elements are in use in operations today. Going forward the Autonomous solution will require all of these building blocks joined together to manage the mining process and the associated risks. We have mentioned integration a number of times in this talk. This integration needs to be apparent in two distinct areas Off board - Between the information and data management systems that hold the mine plan and On board - The interfaces for the machine and its controls This slide shows the technology developed to build up to an autonomous solution, concurrent with this effort, Caterpillar has been developing autonomous capability within the design of our mining machines. Today most of our mining equipment has technology ready controls and interfaces built into its DNA. The other advantage of this approach is that many of these “technologies” that are required for autonomous operation have standalone application in today's manned operations for the management of their business risks. A examples of this include For the past 10 year WesTrac have been remotely down loading the electronic data from Caterpillar machines to assist in the maintenance and operational management of machines through automated exception based reporting and diagnostic recommendations through the Cat MineStar System health module. Through this application of technology the miners maintenance department can better utilise the scarce technician labour resource. The object detection system that is standard on our large mining trucks, when combined with our soon to be released proximity awareness solution augments the operators ability to foresee potential collisions and warn them of potential danger zones or interactions. You see on the slide the “remote control” building block. This is remote control on 2 levels… firstly the concept of remote control of the machine where you remove the operator from the in-cab seat and potentially harsh operation environment (dust, whole body vibration, etc.). And secondly where we are seeing more mining companies that are using remote operations centres to monitor, manage and track their manned equipment, but instead of doing that at the mine site, performing that function in a major city where it’s easier to find the skilled resources to do the work. 4 4

Command - Next Generation Mining People Increased productivity & availability AUTONOMOUS MINING Enhanced safety & sustainability Process When assembled as a mining system the core elements of our autonomy program are covered in Command. Command is the next generation of mining. But there are building blocks to get there that can put mining companies on the journey to the fully autonomous mine site of the future – and achieve significant value to their operations today. Those building blocks are: Fleet – provides comprehensive, real-time machine tracking, assignment and productivity management, Terrain - enables high-precision management of drilling, loading, grading and dragline operations through the use of guidance technology. It increases machine productivity and provides you real-time feedback for improved efficiency. Detect - helps increase operator awareness, enhancing safety at your operation. It includes a range of capabilities designed to assist the operator, including increased visibility and proximity detection of fixed and mobile equipment. Health - delivers critical event-based machine condition and operating data for your entire fleet. It includes comprehensive equipment health and asset monitoring capabilities, with a wide range of diagnostic, analytic and reporting tools. All of these are a reality today… and each one of these building blocks plan a critical role in the autonomous equipment of the future. Mining Maximum benefits from this technology are achieved when People, Process and Products are changed concurrently. 5 5

Vehicle Health (MVRS) MineStar VIMS Reporting Service Site Cat Dealer Pit Site Remote Download Station VIMS Data Cat Dealer E-Mail Automatic Fleet Download and E-Mail Is Sent Every Hour By Slave PC or HIM module Data Stored On Machine Over Shift If Needed Wireless Access For Troubleshooting And Operator Training Minestar Server Automatically Analyses Data And Creates Report Then Report is E-Mailed Site Production Office Site Maintenance Office MVRS ( MineStar VIMS Reporting Service ) has been servicing mine sites for over 8 years. It allows for automatic data transfer and reporting on vital machine health and production information. The site receives daily reports to suit their needs E-Mail E-Mail & Web Site Daily Production and Maintenance Report Customer Headquarters Daily Production and TKPH Report To Production Team Daily Maintenance Report to Maintenance Team 630 machines 27 sites

MINEGEM MINEGEM underground autonomy is working today in mine sites. UG Machine Utilisation MINEGEM is working on many sites around Australia , it allows the machine to automatically tram and dump the load . This has helps to increase production by up to 60% as the machine can tram at a higher speed and allows for a larger machine in the same size drive. The system can also allow for 1 person to operate 2 machines

Fleet Real Time fleet management Fleet provides real-time machine tracking, assignment and productivity management, giving you a comprehensive overview of all asset operations from anywhere in the world. Real Time fleet management Serves as a foundational system for autonomy Topic: Mining trends For more information: https://catminer.cat.com/cda/layout?m=122&x=7 8 8

Terrain Provides industry leading guidance system Terrain enables high-precision management of drilling, dragline, grading and loading operations through the use of guidance technology. It increases machine productivity and provides real-time feedback for improved efficiency. Topic: Mining trends For more information: https://catminer.cat.com/cda/layout?m=122&x=7 Provides industry leading guidance system Provides a foundational system for autonomy 9 9

Detect Detect helps increase operator awareness, enhancing safety at operations. It includes a range of capabilities designed to assist the operator, including blind spot and proximity detection of fixed and mobile equipment. Object Detection - uses radar and cameras to detect people and vehicles,now standard on mining trucks; available on other Cat and competitive equipment in 2011 Site Awareness - uses radars, cameras, to provide proximity detection for machines and light vehicles; Foundational system for autonomy Topic: Mining trends For more information: https://catminer.cat.com/cda/layout?m=122&x=7 10 10

Command Remote, semi-autonomous and autonomous systems By integrating the capabilities of Fleet, Terrain, Detect and Health, Command delivers dramatic improvements in safety, productivity and availability at your operation. It provides remote control, semi-autonomous and autonomous systems for both surface and underground mobile mining equipment. Remote, semi-autonomous and autonomous systems Available for: - Drilling - Dozing - Hauling - Underground Topic: Mining trends For more information: https://catminer.cat.com/cda/layout?m=122&x=7 11 11

Requirements for successful technology application Economic Factors Vary By application By current efficiencies Customer Economic/ social considerations Strong safety values Fleet utilization Fleet efficiency Labor cost Labor infrastructure cost Labor availability Customer Requirements Technology adept Critical mass Integrated solution / system Mainstream applications Change management Mine planning and design Partnership philosophy We believe that the biggest gains for customers will come from the accuracy and efficiency improvements that autonomy offers. (process and activity consistency… Reducing ore dilution, rehandle, truck assignment errors) Further productivity and cost advantages come from the potential for higher utilization of key mining fleet and the reduction non productive operational hours. We have precedent today with our Semi Autonomous UG mining systems – shown on the photo in the slide -- where we are able to not only remove operators from higher risk areas of the mine but also increase the utilisation and productivity of these machines through accurate guidance and increased utilisation over manned operations. Autonomy will require miners to have a strong technical focus within their organisation for the management of associated systems and management of data that will feed into and be produced by an Autonomous mine. The production and management of this data will require a high degree of planning and an integrated approach to managing the data from first assay hole to the final load out onto a train or ship. This represents a risk for Autonomy. Today we have a semi skilled skills shortage, the requirements of running autonomous systems is likely to result in a skilled skills shortage moving forward. The integration of the key elements within an autonomous fleet and the mine systems is going to be key in any systems success Autonomy will not be for everyone. It will benefit from economies of scale to extract benefit from the investment is supporting systems. Autonomous mining systems will be best suited at sites where specific mine design and operation practices and processes can be built in up front to maximise the benefits of Autonomy. Moving forward OEMS are going to seek partnership business models with miners to implement these systems to allow for management and control of the business risks of these systems. The Autonomous mine of the future is closer than you might think… let me show you a video of some of the development of the technology mentioned and Caterpillar’s Command for Hauling system – our autonomous haulage system – which highlights some of the complexities and capabilities of what the autonomous mine site of the future will look like.

Cat Command For Hauling Video Safety Systems video

Thank You Autonomy is going to generate significant interest for the foreseeable future as the demand for resources continues. As we stated at the start of this presentation, Autonomy is not going to be for every one but for those who have the opportunity Caterpillar has positioned itself to be able to provide this solution Thankyou for your time and any questions?