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Pike River Coal Mine

Pike River Coal Mine. ACARP Presentations August 2008 Peter Whittall – General Manager, Mines. PIKE RIVER COAL . Project Overview. High value hard coking coal (HCC) – used for steelmaking NZ $240m project – fully funded 70% of coal sold for first 3 years – 55% for life of mine

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Pike River Coal Mine

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  1. Pike River Coal Mine ACARP Presentations August 2008 Peter Whittall – General Manager, Mines PIKE RIVER COAL

  2. Project Overview • High value hard coking coal (HCC) – used for steelmaking • NZ $240m project – fully funded • 70% of coal sold for first 3 years – 55% for life of mine • 1 million tonnes for 18 + years • HCC prices strong at US $300 per tonne • Roadway development by roadheader and CM; Extraction by Hydraulic Monitoring

  3. Location Map Greymouth Wellington PIKERIVER COAL Lyttelton Pike River Mine Greymouth

  4. Brunner Seam Paparoa Seam Cross Section of the Coal Seams

  5. Tunnel Under Construction Tunnel currently at Hawera Fault at 2,164m Total Tunnel length 2,300m to coal seam Portal September 2006 Tunnel Face Construction

  6. Mining Parameters Mine Plan • Seam thickness: 3 to 13m but typically 4 – 9m; • Roadway development by Continuous Miner and Roadheader • Coal extraction by Hydro Monitor system (9000 litres/minute) • All coal haulage by water: In mine by open flume; pit bottom to CPP by 10.5km 11” pipeline (4000 litres/minute per machine) • In-seam drilling to define geological structure and limits • Seam-, strata- and fault-originating mine water • Gas average 4m3/t across lease; up to 10m3/t at depth; no outburst

  7. Pit Bottom in Stone • LHS: Fluming water; electrical • RHS: Coal slurry bins; crushers; slurry pumps • 481m of stone excavation • Max width: 8m • Max Height: 11m • Concrete: 600m3 of 50MPa; 170m3 of 10MPa

  8. Pit Bottom in Stone • LHS: Fluming water; electrical • RHS: Coal slurry bins; crushers; slurry pumps • 481m of stone excavation • Max width: 8m • Max Height: 11m • Concrete: 600m3 of 50MPa; 170m3 of 10MPa

  9. Seam Cross Section Immediate Roof: Shales and coal rider seam Upper Roof: Massive sandstone +100MPa Seam dips 5o – 30o Seam coring for Sulphur analysis Floor: Interbedded shales and mudstones

  10. Pit Bottom in Coal 4m dia. X 108m shaft Raw Coal Ponds Main Fans Pike River Tunnel Water storage roads

  11. Roadway and Extraction Productivity Hydro Productivity (Excluding continuous miner and roadheader production) • 9,000 litres water/min • 3.6 t/min coal cutting rate • 40% Fluming density • 61.5% efficiency • Shift productivity = 1,062t • Daily productivity = 3,186t • Annual productivity = 1.1Mt Continuous Miner v Roadheader Productivity

  12. Roadheader (Waratah)

  13. Roadheader (Waratah)

  14. Roadheader (Waratah)

  15. Roadheader (Waratah) • Base Machine: Wirth T1.14 • Cutting Dimension: 6.6m wide x 4.4m high • Shovel: 4m – 4.9m wide • Gradients: Up to +/- 18o • Custom deployment frame • Floor pressure: 0.15MPa • Total Power: 272 KW

  16. Continuous Miner

  17. Continuous Miner • Base Machine: Wirth H4.40 Miner Bolter • Cutting Height: 2.5m – 4.0m • Machine/Cutting Width: 3.5m • Tracks: 560mm width • Floor Pressure: 0.2MPa • Drill Rigs: ARO S2500 (2.4m) • Rib Rigs: ARO S2500 (1.8m) • Coal Sizer fitted • Cross Levelling via tracks

  18. Continuous Miner

  19. Development Considerations • No recent history in Brunner Seam • Multinational experience, expectations, norms • Coal roof, coal floor, 5 – 30o seam grades • Setting challenging but realistic KPI values • Data gathering and analysis • New mining equipment to site (and market) • Strata control system • Coal clearance by water – no conveyors • Hot seat change out? – 6.5km to amenities; 1.2km to portal; 2.3km to pit bottom

  20. Parameters for success: Strong roof and floor Strong but fractured coal Moderate to thick seam (3 - 13 metres) Moderately dipping seam (5° - 30°) Good supply of water (Pike has rainfall of over 6m/year in mine vicinity) Mining Extraction by Hydraulic Monitor

  21. Sub-Rise Extraction

  22. Sub-Level Extraction

  23. Pike River Fly Over

  24. Production Timetable Forecast to meet coal seam in late August 2008

  25. Project Summary NZ’s second largest coal export mine when at 1 Mtpa Premium quality hard coking coal at 1% ash Tunnel at 2,164m, through the Hawera Fault with coal in late September 2008 Most surface infrastructure complete with train loadout commenced Major local employer with 65 full time staff now, 18 more due to commence, building to 150 at full production in mid 2009 Transport system solution in place from coal face to port with all contracts let and underway $30 - $40M in local spend annually

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