Integrating Blackwater & South Blackwater Mines

David RuddellFebruary 2003

NSW Coal Prep Society Presentation – Feb 2003

Blackwater / South Blackwater Integration

• Blackwater Overview• Safety• Coal Processing Integration

• Organisation• Processing• Quality • Mine – Port Modelling

• Key Milestones

NSW Coal Prep Society Presentation – Feb 2003

Capella

Dysart

BlackwaterEMERALD

MACKAY

Clermont

GLADSTONE

PEAK DOWNS

NORWICH PARK

BLACKWATER

GREGORY

SOUTH WALKER CREEK

SARAJI

CRINUM

RIVERSIDE

GOONYELLA

Date 18.10.2002

NSW Coal Prep Society Presentation – Feb 2003

ML70167

ML1767

ML1829

ML1860 ML1907 ML

70139

ML70091

ML1771

ML1772

ML 1800

ML 70104ML 1760

ML 1759

ML 1762

ML 70103

ML1812

ML1792

ML1773

ML70091

CAPRICORNHIGHWAY

Mining Lease

Mineral Development Licence

Mined area

Future mining

COOK CPP

BLACKWATER MINE

COOKTown of Blackwater

MDL155

MDL

1 89

MDL155

South CPP(SCPP)

North CPP(NCPP)

Thermal Coal Plant (TCP)

Industrial Facility

NSW Coal Prep Society Presentation – Feb 2003

BLACKWATER

SOUTH BLACKWATERMining Lease

Mined Area

Future Mining

NSW Coal Prep Society Presentation – Feb 2003

Blackwater Project Overview

• BHP Blackwater - 36 years old ~8mtpa YEJ00

• South Blackwater - 31 years old ~4.5mtpa YEJ00

• Integration project objective - join Blackwater & South Blackwater mines to produce at 13.5Mtpa sustained rate from 31 Dec’01

• Capital expenditure - $115m on infrastructure, land & mining equipment

• Operating Contracts – $53m Pre-strip, pit development• Equipment relocations to Blackwater site• Closure of underground mines – Laleham & Kenmare

NSW Coal Prep Society Presentation – Feb 2003

Safety

• Integration of Blackwater & South Blackwater systems• Traffic Rules• Emergency Response Systems• Hazardous Work , Working @ Heights• Fitness for Work• Black Coal Competencies

• Standard Operating Procedures (SOP’s) Implementation

• Management of contractors – mining / construction

• Critical risk assessments• Construction• Operational

NSW Coal Prep Society Presentation – Feb 2003

Project Management

NSW Coal Prep Society Presentation – Feb 2003

CHPP Organisation

Laboratory

Ops / Maint

TCP Ops

Shift Coordinators

Senior ProcessingCoordinator

BW

Laboratory

Operators / Maint7 days

Ops / Maint5 days

Shift Coordinators

Senior ProcessingCoordinator

SBW

MaintenancePlanners

Day MaintenanceCrews

Maintenance CoordinatorElect Eng Mgr - CPP's

Senior MaintenanceCoordinator

Coal QualityOfficer

Coal QualityCoordinator

PlantMetallurgist

Senior ProcessEngineer

CPP Manager

NSW Coal Prep Society Presentation – Feb 2003

NCPP Configuration

NSW Coal Prep Society Presentation – Feb 2003

SCPP Configuration

NSW Coal Prep Society Presentation – Feb 2003

Processing

• Trial washing – Blackwater coals in SCPP

• SCPP Plant modifications – input / output product handling

• ROM upgrades – blasted vs non blasted coal

• Metallurgical Plan• Consumable reduction – magnetite, floc, etc• Processing circuit improvements• Fine coal recovery – BW CPP• Fines Circuit – SBW CPP• Bypass optimisation

• Laboratory Reviews

• Operating Practices - alignment

NSW Coal Prep Society Presentation – Feb 2003

Quality Management

• Multiple products – vary specifications

• Developed integrated mine plan

• Managing quality across mine / port

• Implementing Quality Management System @ SBW to obtain ISO 9001 accreditation

• Modelling tools• BHP Transport – mine / rail / port modelling• Integrated mine plans• Managing coal quality / inventory

NSW Coal Prep Society Presentation – Feb 2003

NSW Coal Prep Society Presentation – Feb 2003

NSW Coal Prep Society Presentation – Feb 2003

CHPP Integration

• Combined railings contract

• Blending at Port – stockpile management

• Integrated Coal Sales

• Product Rationalisation

• Reporting & Management Systems• Production / Costs / Quality

NSW Coal Prep Society Presentation – Feb 2003

Integration Project – Key Milestones

• Commenced Integration Nov ‘00• Close Laleham Mine Feb ‘01• Commission 4100 XPB shovel May ’01• Relocate Dragline 39 to Blackwater Aug ’01• Commissioning of 930E Trucks Sep ‘01• Enterprise Bargain Agreement Certified Sep ’01• One Mine Created Sep ‘01• Commission 315 tonne truck fleet Oct ’01• Complete haul road link Dec ’01• Kenmare Operation ceased mining Apr 02• Ramp 8 industrial facility Apr ’02• Commissioning of RH200 Shovel Sept 02• Kress Haulers start commissioning Oct 02

NSW Coal Prep Society Presentation – Feb 2003

Kress HaulersKress Haulers-- first one to be commissioned Oct02first one to be commissioned Oct02

NSW Coal Prep Society Presentation – Feb 2003

Questions?