Modern Coking Coal Technology

Peter Long, Executive General Manager - Asia

13 February 2012

SEDGMAN

Recognised for leading

innovative solutions for the

resource industry

1. COMPANY OVERVIEW

2. LOCATIONS AND PERSONNEL

3. ADVANCED TECHNOLOGY FOR COKING COALS

4. PROCESS DESIGN

5. UGH DESIGN FOR CHPP

6. DESIGNING FOR EXTREME WEATHER VARIANCES

7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

8. UHG CHPP CONSTRUCTION

13 February 20122

AGENDA

• Global leader in the design, construction and

operation of coal handling and processing

plants (CHPPs)

• Established in 1979 in Australia

• Publicly listed, ASX 300 company

• Focused on technology leadership and

reputation built on delivering simple, certain

quality

• Over 1,000 employees worldwide

• Conceptual Design through to Operations

• Contract experience from EPCM to full EPC risk

• Currently undertaking coal projects in four

continents – Asia, Australia, Africa and

South America

• Delivered over $1.7 billion of CHPPs in the past

6 years

• Processing capacity of more than 30 Mt/a of

coal

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1. COMPANY OVERVIEW

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2. LOCATIONS AND PERSONNEL

Currently Executing 15 projects and 12 operations contracts world wide

South America 80 StaffOffice Santiago

Projects Bocamina CHP

South Africa 79 staffOffices Johannesburg

Projects Atcom (Sth Africa), Benga, Zambeze (Mozambique),

Boseto (Botswana)

Mongolia / China 95 staffOffices Ulaanbaatar Beijing, Shanghai

Projects UHG Stage 1, UHG Stage 2, UHG Stage 3, Phu Kam

Operations UHG Management

Australia 805 StaffOffices Brisbane (head office), Townsville, Mackay & Perth

Projects Bengalla Upgrade, Caval Ridge, Lake Vermont 2, Maules Creek, Middlemount Upgrade,

Narrabri, Red Mountain Upgrade, South Walker Creek

Operations Agnew, Blair Athol, Cannington, Coppabella, Ernest Henry, McArthur River, Moorvale,

Middlemount, Mt Isa, Red Mountain, Sonoma

Coking coal is a high value product

Currently > US$300/t

Expected long term > US$150/t

Maximum recovery is major driver for project return

Design Elements for Maximising Recovery

Analysis of resource

- Best practice techniques for bore core analysis

and interpretation

- Simulations for accurate prediction of yield for

plant

design purposes

- Coking coals can be very different

Selection of most appropriate plant circuit and

equipment for the range of coal seams to be treated

- Computer models of alternative circuits using

models based on a large in-house database of

actual operating plant data

Detailed Coal Handling and Plant design using 3D

CAD to optimise layout for operating and

maintenance

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3. ADVANCED DESIGN FOR COKING COALS

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3. ADVANCED DESIGN FOR COKING COALS

• Dense Medium Cyclones for coarse coal with circuits designed for optimum efficiency High medium : coal ratios to maximise efficiency

Large diameter cyclones with high spigot capacity for low yielding feed types

• High rank coking coals have a high percentage of recoverable coal in the fine circuits Fine circuit selection critical for maximum recovery

Latest Reflux Classifier technology for fine coal to balance operation of coarse and fine circuits

Latest pneumatic / column flotation for ultrafines

• Hard coking coal is intrinsically fine, so high product moisture is inevitable if high recovery of fine coal Free moisture can be a problem, especially in

Mongolia

- Poor handleability for subsequent transport

- Can freeze in winter

Use of proven, large scale centrifuge technology for all plant streams to minimise final product moisture

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4. PROCESS TECHNOLOGY

CPP Module design feed rate 900 t/h (as); Coking coal products 8.5% to 9.0% ash,

<10%TM.

Phase 1 – 5 Mt/a one CPP module 60 t ROM Dump Hopper with Feeder Breaker

Roller Screen & Secondary Sizer station

1000 t Plant Feed Surge Bin

Radial Stacker for Coking Product

Radial Stacker for Thermal Product

Radial Stacker for Rejects and Tailings Dam

Phase 2 – 10 Mt/a two CPP modules Additional 350 t ROM Hopper with Feeder

Breaker

Roller Screen, Secondary & Tertiary Sizer station

Reject Bin & Tailings Dam

Phase 3 – 15 Mt/a three CPP modules

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5. UHG DESIGN FOR CHPP

Nominal throughput 900 t/h (ar)

Two stage DMC 1300mm and 1000mm

diameter cyclones

-50mm +1.2mm (ww)

Spirals -1.2mm (ww) +0.250mm

Flotation Jameson Cells (B6000/20)

-0.250mm

Centrifuges Coarse Coal

Fine Coal

Screen bowl

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5. UHG DESIGN FOR CHPP

Extreme temperatures -40 to +40oC

Structural

Euro Code 3 provisions

Chinese low temp steel (D & C Grade) in impact areas

Reduced design stress

Notch tough welds

CPP, bins & transfers contained in fully insulated sheds

Significant heating system

2.6MW installed heating capacity for Phase 1

Civil

Cast in heating

Building foundations below frost line

Climate controlled concrete pours

Winter crash drainage

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6. DESIGNING FOR EXTREME WEATHER VARIANCES

Electrical and Controls Buried and heated cable racks

Double insulated cabinets

Enclosed MCC and HV systems

Instrument selection driven by temperature variance

Winter setting which fundamentally changes the trip and shutdown sequencing

Process Assumes shed >0˚C

Flotation dewatering selection

Thickeners are covered, sheeted and heated

Pipes between buildings are insulated, heat traced, have Δ50˚C rubber expansion joint

Automated plant shutdown and drain should heating system fail

Tailings Pipes insulated with 10mm rigid polyurethane

foam (cyano-polyester based) and protective shell

Operate at above critical freezing velocity

Mechanically drained by diesel pump

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6. DESIGNING FOR EXTREME WEATHER VARIANCES

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

Issues to be considered

Logistics

Systems and procedures

Training requirements

Maintenance

Logistics Spare holdings on site

Delivery time of materials

Vendors

Quality control

Systems and procedures Developed well in advance

Remote links to monitor facility off site

Technical support

Training Mongolian supervisors/key managers trained in

Australia

Sedgman managers and trainers

Ongoing development on site

Maintenance Majority of activities performed by site personnel

Specialty maintenance tasks

- OEM’s

- Source from external providers

- Train on site resources and procure appropriate tools/equipment

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

Construction in Winter

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8. UHG CHPP CONSTRUCTION

Stage 1 Construction

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8. UHG CHPP CONSTRUCTION

Stage 1 & 2 Construction

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8. UHG CHPP CONSTRUCTION

Complete!

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QUESTIONS?