Advanced Technology for Progressing India's Underground Coal Mining Lisa Duncan August 2014

We are: The largest publicly traded independent group of mining technical experts in the world. 18 Office Globally 45+ Years Experience 118 Countries 5000 software installs 14,000 Studies $Billions value added

Solution Offering

We are:. The clear market leader in production simulation, scheduling and costing solutions to resource companies globally Production Simulation Production Scheduling Project Costing & Budgeting Software Solutions BLASTING SOLUTIONS BY DFPCL

Mine Planning Scheduling Horizons BLASTING SOLUTIONS BY DFPCL

Agenda The Story Today Introducing Coal Solutions Case Study Simulation Summary

7 The Story Today

Todays Mining Landscape High demand on local coal Focus on increasing production Land access issues Resources remain static Mining methods constant An interest in innovation

Why Is It Challenging? Resources are getting deeper Resources are complex Demand is increasing Planning considered difficult

Urgent Planning Issues Common urgent issues include: Smaller properties Overlying constraints Open cast and underground mines in same vertical plane Geological disturbances Land and rehabilitation Skilled manpower

Why is Good Planning Currently a Challenge? Complexities such as Multiple seams Fire Water Gas Surface constraints Old mine workings Planning is often done while mining progresses Mines may not be optimised Geological and geotechnical data is complex and sometimes inaccurate

Technology? Software available, but often not used Medium and short term schedules not created to optimise the operation Testing of how the operation works prior to production not possible Software must be easy to use

13 Introducing Coal Solutions

Application of Technology This conference will give you: Many good ideas An awareness of what is new What other mining operations are trying This presentation will help you consider: How to combine new ideas and technologies How things can be improved at your mining operation The benefits effective use of software will bring

We are: The largest publicly traded independent group of mining technical experts in the world. 18 Office Globally 45+ Years Experience 118 Countries 5000 software installs 14,000 Studies $Billions value added

Effective Mine Planning New software concept – Coal Solutions Advanced, robust, interactive scheduling tools Designed to be easy to learn Designed to be easy to use Commodity specific Mining method specific Process driven Intuitive Fast Accurate Understand what your mine is capable of.

Sophistication Without Complexity Integration of all schedule components: Mining Haulage Processing Dump construction Components “aware” of each other with continual, seamless data flow Easy to rapidly incorporate changes to underlying data Scheduling that is interactive - change something, see the impact immediately

More advanced and accurate models Engineers can analyse many scenarios quickly Scenarios run so quickly, scheduling becomes interactive Users will: Retain focus Concentrate longer Absorb and remember changes Understand deeply Engineers will learn what the mine is capable of

Training Fast and Easy Engineers require minimal training time New staff up to speed quickly Learning curve very fast High and fast user effectiveness Skills easily transferred Models quickly understood

Case Study

Case Study – Planning Options This planning exercised considered: Production Resource recovery Tonnes per development metre Principle stress direction Depth Surface constraints Access Spontaneous combustion Gas Ventilation Many more

Option 1 Results of the long term plan: Y20: 4,268,825t 4,630m t/m Based on tonnes per metre, this seems the better result Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10Y11Y12Y13Y14Y15Y16Y17Y18Y19Y20 t 357,481355,2863,252,9893,043,2144,768,9604,674,8545,168,4914,225,4343,920,4444,241,8884,399,2163,660,4643,664,2153,081,9124,709,0764,826,2734,719,8435,214,2774,427,1464,268,825 m 12,70512,50213,38212,51612,3275,6666,5386,2036,4149,30113,12112,71712,39413,39611,8816,4076,4466,2686,8534,630

Option 2 Y20: 5,578,814t 11,549m t/m However, considering all constraints this option is: Safer Has better product quality Geotechnically achievable Less likely to have gas issues Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10Y11Y12Y13Y14Y15Y16Y17Y18Y19Y20 t 348,5991,665,7142,822,2133,524,0133,588,2614,641,3574,290,6874,219,5784,078,6082,040,9811,847,0423,739,5063,766,8013,813,3874,299,8455,307,3934,073,2314,161,5755,565,7755,578,814 m 12,35213,62113,90612,77912,48311,3567,8446,9696,6418,2163,9105,8425,5316,02911,89211,06111,0995,5429,73111,549

24 Simulation

Common Modelling Issues Equipment / fleet Productivity improvements Cycle times Justification of new equipment Delays Mining constraints Congestion Changing variables Changed mine design

Discrete Event Simulation With the dynamic nature of mining, simulation is required True – “discrete event simulation” requires a link to both planning and execution: Evaluate plans and enable scenarios and capital configuration to be tested prior to production Real time data from the operation feeds assumptions in the simulation model. The simulation model is always ‘learning’ from actual production data These learnings are then feed back into the plans – ongoing better planning Plans will continuously be more accurate and achievable. Targets are more likely to be met.

What simulation is possible? HAULSIM is a powerful tool to model, analyse, visualise and optimise your haulage network Accurately model mine haulage Visualise impact of changes Quantify design improvements Validate assumptions Make informed decisions TALPAC is a simulation tool for evaluating the efficiency, productivity and economics of the mine work out the size of fleet which equipment is the most compatible investigate and compare time-period productivity

Rosters MTBF/MTTR Schedule Costing 3D Haulage Network Road Rules Fleet Specifications FMS and GPS Data Real World Data Inputs Accurately Construct, Calibrate, Simulate & Analyse Construct Analyse Simulate Calibrate HAULSIM Workflow

New Mine Layout Problem We are regularly not meeting production goals. Will changing the longwall design help to increase production? Questions Will the change help improve production? How will the change impact the surface fleet? Will the capacity of my conveyor network keep up with the production change? Will there be bottlenecks? The answers to these questions can now be easily found and communicated and the right decisions made by doing a simulation

A 3D simulation solution for analysis of entire mining systems so users can accurately determine and test key system measurers. Improve equipment system efficiency Accurately test safety and/or production gain initiatives Quickly build simulation models and run scenarios Determine whether capital expenditure is required Dynamic dashboard reporting for instantaneous results Integration with RPM applications to simulate an entire mine plan including higher level costings

Summary

RPM’s XPAC Solutions Process driven, rules based schedules Models updated automatically as the mine evolves The best, most sophisticated tool set to build your model, making it fast and easy to get results Solutions have taken away the “good model” vs “bad model” problem. Now, they are all good.

HAULSIM value Visualise ‘what if’ scenarios Test haulage options prior to production Explore multiple scenarios Visualise the impact of changes in minutes Incorporating HAULSIM into your software suite will help you to: Justify new equipment expenditure Reduce 3 rd party consulting expense Use past data to improve future production Operate more efficiently Maximise production

Can you imagine? Now that you know about coal solutions, and also the value of simulation. Imagine if you could combine the two?! Share parameters from the schedule into the simulation Make a change in the schedule, and immediately test the impact it will have Determine if your schedules are realistic Understand how likely your targets are to be achieved

Advanced Technology for Progressing India's Underground Coal Mining Lisa Duncan