peter ross - ldo group & lake coal

LakeCoal – Chain Valley Operation 1

Chain Valley

LONGWALL OPERATION


• Chain Valley

Colliery(CVC) is located

on the southern shores

of Lake Macquarie in

Central NSW;

• CVC commenced

production in 1962 to

supply the neighbouring

Vales Point Power

Station.

• Current owners acquired

80% of CVC in 2009 and

the remaining 20% in

2010.

Background

Background


Background

• 2010 decision to take the mine from bord and pillar to

miniwall method of mining;

• Chinese manufacturer selected;

• September 2011 Miniwall mining commenced at CVC

with a 61.25m face;

• June 2012 extended to 86.2m face adding an additional

14 roof supports and AFC components;


Our Challenges

• Difficult conditions with

significant strata issues;

• Place change method

of mining;

• Constrained underground

coal clearance system;

• Limited reserves / life;

• Inadequate ventilation infrastructure;

• Aging infrastructure and equipment;

• Transportation of coal (truck haulage).LakeCoal – Chain Valley Operation 6

What we put in place

• Introduction of continuous miners with on-board bolters;

• Improved strata

management

systems – support

optimisation

strategies, secondary

support regime,

routine geotechnical

mapping and

monitoring;



What we had

What we have now

Where we are now –

Longwall Mining

Longwall Supplier Selection

• Developed a close relationship

with a Chinese manufacturer for

the supply of mechanical and

structural components of a

longwall mining system.

• The main drivers for this liaison

were:

Price, Availability and

Design-build to mine requirements


Build

• Business risk assessment

undertaken on utilising unproven

Chinese equipment in Australia.

• Use of Chinese motors that

required IEC approval.

• During build process audits and

design verification undertaken

by a third party.

• Supports tested to consol 30K

cycles with an exceptional

outcome – previously never undertaken in ChinaLakeCoal – Chain Valley Operation 10


Longwall Mining

Specifications



Longwall Mining

Component Comment

Width 61.25m – 86.2m

Shearer manufacturer Bucyrus

Type Electra EL 2000 DERDS

Drum dia MG – 2m / TG – 2m

Cutting height/method/

web depth

3.2 – 3.5m / Uni-di / 750mm

Install power 1275 kW

Roof support manufacturer SIWEI

Specifications



Longwall Mining

Component Comment

Type/Number of Supports 2-leg chock shield / 38-52

Yield load/working

range/control

800 t 1.8 – 3.9m / Tiefenbach

Face conveyor

manufacturer

IMM, SGZ800/200 twin

inboard

Chain speed &

manufacturer

1.2 m/s – Parsons

Motors 1 x 250 kW

Beam stageloader IMM, SZZ800 / 200, 200 kW

Coal crusher IMM, PLM 2000, 200 kW

Coal clearance (to surface) Conveyor / 600tph

• 61.25m Longwall commenced MW Block 1 in September

2011 – 10 months from conception to implementation.

• In June 2012 block 3 was extended to 86.2m adding an

additional 14 roof supports and AFC components.

Chain Valley is the first

underground mine to

implement and successfully

complete a Chinese

manufactured longwall in

Australia!



Longwall Mining

Longwall Production



Longwall Mining

Year Retreat (m) Production (t)

2011 ^ 691 228,456

2012 1,791 710,295

2013 1,407 652,654

2014 2,372 1,115,277

2015 2,345 1,091,986

2016 * 2,198 1,020,520

* Forecast^ Miniwall production commenced 27/9/11

Total retreat (m) 10,804

Total production (t) 4,819,188

Average Face Utilisation 82%

Longwall Shear Rate


0.8

0.9

1

1.1

1.2

1.3

1.4

1.5

1.6

Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16

Target (1.3 shears/hr)


Longwall Mining

Production


* End of year projection

YearTotal

Production (tonnes)

Manning Tonnes/Man

2009 581,354

2010 556,530

2011 686,700

2012 1,076,933 186 5,790

2013 923,273 203 4,548

2014 1,368,270 165 8,293

2015 1,343,377 154 8,723

2016 1,326,000* 122 10,869


Longwall Mining

• Secured sub-lease with neighbouring collieries

enabling:

• An increase in current reserves in both the GNS and

Fassi Seams from 25 Mt to 75 Mt;

• Accessibility to Mannering Colliery pit top and coal

clearance system;

• Link Road Project (LRP) linking Chain Valleyand

Mannering underground workings.



CVC Extension



CVC ExtensionLRP Plan

• Post LRP

• Increase in annual production;

• Increase of underground coal clearance capacity;

• Modern and reliable trunk and drift belt system;

• Higher surge capacity;

• Direct overland conveyor to Power Station;

• Utilisation of Power Station stockpile for truck loading

for export.


Where we are heading

• Moonee / Newvale area

• Secured sub-lease over Newvale area

• Granted EL over Moonee area;

• Combined additional reserves ~37Mt.

• Rail loop

• Expansion of existing VPPS rail unloading facility to

allow rail haulage to Port;

• Development of a private land haul road from current

stockpile areas to proposed rail loader

• Additional Longwall

• Allowing increase in production to ~3Mtpa


Where we are heading