Longwall improvement at Kestrel Mine

John Coughlan

Acting general manager operations

Location

• Rio Tinto purchased

in 1999

• Extension (KME)

approved in 2007

2 July 2016 3

Kestrel facility

Dev System

LWall System

ROM Handling

Prep Plant

Product Handling

Rail Transport

Shipping

2 July 2016 4

Status as at 30 September 2010

Kestrel longwall equipment

Shearer 1 x Bucyrus EL3000 with 375kw ranging arms

Roof supports 146 x 860 ton capacity supports each kit withPM4

control system

AFC 1 x 855kw CST P drive at Maingate

1 x 855kw CST KP drive at Tailgate

Pump stations 1 x SES pump station 900 litres/min capacity and 1 x

Kamat (Longwall Hydraulics) pump station 900 litres/min

capacity (shared over 2 systems)

1x High set system

Crusher 250 Kw drive unit

BSL 400 kw drive unit

Monorail Macquarie system

Nameplate capacity 2500 tonnes per hour

2 sets of longwall equipment each containing -

Longwall Improvement Projects

0

5

10

15

20

25

30

Salab

le P

rodu

ction

Cur

rent

Sup

port

crew

ass

ist c

uttin

g

Sta

ndar

dize

she

arin

g

She

arer

relia

bility

AFC

& B

SL

relia

bility

Shiel

ds re

liability

Con

veyo

r rel

iability

5S

Inve

ntor

y m

anag

emen

t

Sus

tainm

ent

metr

es/d

ay

Reliability is the

issue

4.1Mt

8.0Mt

3.8Mt

5.5Mt

Other BI Projects

4.4Mt

Longwall improvements

0

2

4

6

8

10

12

14 A

ctu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Actu

al

Pla

n

Actu

al

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010

AIF

R

2 July 2016 7 2 July 2016 7

Recent AIFR history

Actual

Plan

Industry safety benchmarking

2 July 2016 8

Source: Queensland Mines and Quarries, Safety Performance and Health Report 2008-09

Comparison - Lost Time Injury Frequency Rate

Comparison of Lost Time Injury Frequency Rate PerformanceRio Tinto BU's v RTCA Operational Results June 10 YTD

0.0

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(Q

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ssin

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er

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str

uctu

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ary

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tal N

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me

rica

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tal E

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ine

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nsio

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str

el

Business Groups

LT

IFR

Structure and organisation

• Start finish times

• Support and maintenance crews

• Single maintenance stoppage

• Rebuild – overhaul rather than fix

The maintenance management process

Operations

Plan

Work Management

Identify Work Plan WorkSchedule

Work

Analyse

Work

Complete

Work

Execute

Work

P

DC

A

Short-term

P

DC

A

Long-term

Business

Improvement

Programme

Execute

Action Plan

Root Cause

Identification

Incident

Defect

Elimination

Loss

Analysis

Reliability

Modelling

FMECA

Analysis

Criticality

Analysis

Define

Tactics

Whole of Life

Plan

Review

Tactics

Tactics

Implementation

(Mtce plan)

Spares

Optimisation

Tactic

Definition

Figure 1 – Business Process Relationships

Six Steps of Work Management

Identify

work

Plan

work

Schedule

work

Analyse

work Complete

work

Execute

work

Cutting practice

• Standardised cutting study

• Automation

2 July 2016 14

Process improvement

2 July 2016 15

Kestrel Longwall start of block

• 4

Time to cut first 100m of block

0

5

10

15

20

25

30

LW

30

1

LW

30

2

LW

30

3

LW

30

4

LW

30

5

LW

30

6

LW

30

7

LW

30

8

days

Floods 2008

• Access to site

• IMT process for recovery

• Water quality

• Emulsion plant outcome

GFC 2009

• Reduced coking coal demand

• Alternate cutting shifts

• Allocation of labour from face

Where are we now

• 93 cut hours per week

• 5.9 million ROM tonnes forecast – 10%

• Saleable tonnes 18% increased on

previous year, 15% increase on previous

best year

2 July 2016 19

Kestrel Longwall average weekly op time

• 1

average weekly operating time

0

10

20

30

40

50

60

70

80

90

100

LW

30

1

LW

30

2

LW

30

3

LW

30

4

LW

30

5

LW

30

6

LW

30

7

LW

30

8

ho

urs

per

week

2 July 2016 20

Kestrel 300 series ROM tonnes with 2010 actual YTD & forecast

• 4

ROM Production

0

1

2

3

4

5

6

20

04

20

05

20

06

20

07

20

08

20

09

20

10

mil

lio

n t

on

nes

2 July 2016 21

Kestrel 300 series saleable tonnes with 2010 actual YTD & forecast

• 4

Saleable Production

0

1

2

3

4

5

6

20

04

20

05

20

06

20

07

20

08

20

09

20

10

mil

lio

n t

on

nes

300 series mining

2 July 2016 22

Kestrel 300 series Longwall retreat with 2010 actual YTD & forecast

• 4

Longwall retreat metres

0

1000

2000

3000

4000

5000

6000

20

04

20

05

20

06

20

07

20

08

20

09

20

10

mil

lio

n t

on

nes

2 July 2016 23

Kestrel historical saleable tonnes with 2010 actual YTD & forecast

• 4

Saleable Production

0

1

2

3

4

5

6

7

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

mil

lio

n t

on

nes