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Mining Methods Metamorphosis . Presented by: Bradley Charles Lewis ICG ADDCAR Systems, LLC Sept 2008 . Outline Overview Jim Bridger Power Plant Recap Jim Bridger Historic Statistics Metamorphosis:Surface – Highwall – Longwall

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Mining methods metamorphosis

Mining Methods Metamorphosis

Presented by: Bradley Charles Lewis

ICG ADDCAR Systems, LLC

Sept 2008


Mining methods metamorphosis

Outline

Overview Jim Bridger Power Plant

Recap Jim Bridger Historic Statistics

Metamorphosis:Surface – Highwall – Longwall

Transformation Yrs: Production – Productivity

(Source MSHA)

Highwall Mining – Pinch Hitter

Lessons Learned

Conclusions


Jim bridger power plant
Jim Bridger Power Plant

  • Opened in 1972

  • 2120 Mega Watts

  • 9400 BTU coal

  • Average Annual Burn

    8.5 Million Tons


Jim bridger power plant1
Jim Bridger Power Plant

  • Largest coal fired plant west of the Mississippi

  • 56 th largest plant in the US

  • Suppliers – Jim Bridger Mine (75%)

    - Black Butte Mine (25%)

  • Slated to meet all Clean Air Act Requirements


Jim bridger mine history
Jim Bridger Mine History

  • Located in the southwestern corner of Wyoming

  • Continuously operated since 1974

  • Annual Production 5.5 – 8.5 mtpy

  • Captive to Jim Bridger Power Plant


Jim bridger mine history1
Jim Bridger Mine History

  • Reserves are leased (BLM & Anadarco)

  • Seam heights range from 6 - 30 ft

  • Began as a surface mine

  • Morphed into a surface, highwall, & longwall mining complex


Mining methods metamorphosis

Jim Bridger Mine Plan

Highwall EntriesCM Development EntriesLongwall PanelSurface Pits


Jim bridger mine past 35 years
Jim Bridger Mine – Past 35 Years

  • Total Tons Mined 203 Million

  • Life of Mine Productivity (tons/employee hour) 8.2

  • Number of Years

    NFDL Rate < 2.0 15

  • Environmental Stewardship Awards +14


Decision to highwall mine
Decision to Highwall Mine

  • Reliability of supply not yet proven

  • No underground coal mining experience in area

  • Surface miners intimidated by underground ops

  • Turnkey contract mining approach chosen

  • Start small & increase as ADDCAR proves itself

  • Union work force – union free contractor


Decision to longwall mine
Decision To Longwall Mine

  • Announced in April 2006

  • Mass exodus of employees (due to less surface jobs)

  • Energy boom made it hard to hire employees

  • Lot of underground type training required

  • HWM kept Jim Bridger Coal going

  • Underground mine opened in Sept 2004

  • Longwall started March 5, 2007


1970 s mine opening challenges
1970’s Mine Opening Challenges

Full Circle

  • Labor / Skills Shortage

  • High Fuel Costs

  • Turnover

  • Capital Allocation

  • Controlling Costs

2000’s Mine Opening Challenges


Mining methods metamorphosis

Transformation Years

Production by Mining Method



Production by mining method
Production by Mining Method (%)

Highwall mining will take a hiatus and return to mine the final walls



Future surface mine equipment
Future Surface Mine Equipment

  • Two Marion 8200 draglines

    – 1 Reclamation (until complete)

    - 1 Production

  • 4 Cat Trucks

  • 1 Le Tourneau 1400 Loader

  • Two 90,000 # pull down drills

  • Coal belted to plant


Addcar highwall mining system
ADDCAR Highwall Mining System

  • Launch Vehicle

  • Conveyor Cars

  • Continuous Miner

  • Stacker

  • Loader with “pizza pan” (for car placement)


Longwall mine
LONGWALL MINE

  • Bucyrus Longwall System

    - Electra 2000 Shearer

    - One Meter Face Conveyor

    - 970 Ton Shields

    - 750 ft Face

  • Supported by two continuous miner development units



Hwm as a pinch hitter
HWM as a Pinch Hitter

  • Two capital intensive mining methods

    - Surface mine ramping down

    - Longwall mine ramping up

  • Completely different mining methods & equipment

  • Reliable coal supply had to be maintained

  • Near term and long term costs had to be managed

  • Original plan was to HWM for 20 years (@ 500,00 tpy)


Summarize
Summarize

% of ADDCAR Jim Bridger Year Tons (000) Plant Burn

2003 490 6

2004 1,011 12

2005 2,058 25

2006 2,425 30

2007 1,640 20

  • Review ideas

  • Vote on top candidates and consolidate

  • Check requirements and restrictions

  • Trim list to top 5-10 ideas


Addcar results 2003 2008
ADDCAR Results 2003 - 2008

Zero Lost Time Accidents 4 of 5 Years

Total Tons Mined - 8.9 Million


Highwall mining heaven
Highwall Mining Heaven

  • Bridger has proven to be the BEST highwall mining application in the world

  • Multiple seams – thick seams

  • Favorable geology

  • Dedicated management teams

  • 15 miles of available highwall

  • Excellent wall preparation (pre split – 70 degrees)


Highwall mining success factors
Highwall Mining Success Factors

  • Safety Focus

  • Spirit of cooperation

  • Long term planning

  • Short term responsiveness

  • Continuous communication

  • Management Focus / Commitment


Highwall mining success factors1
Highwall Mining Success Factors

  • Turn key services contract allowed executive management to focus on longwall installation

  • Highwall mining costs were predetermined in the contract

  • Working relationship outweighed any of the contractual mandates (i.e. stayed out of GM’s office)


Lessons learned when the longwall installation pushed the following were accelerated
Lessons Learned When the longwall installation pushed- the following were accelerated

  • ADDCAR’s movement down the wall

  • Time and effort for short & long term planning

  • Support for keeping up with the highwall miner

  • Wall prep - pit prep - dewatering

  • Power cable rerouting

  • Length of pit needed for sequencing draglines


Lessons learned
Lessons Learned

  • Using an experienced contractor (ADDCAR) resulted in a reliable fuel supply

  • Maximizing coal qualities from the varying mining methods is vital and time consuming

  • Pillar design evolved with mining experience

  • HWM coal quality was markedly better than underground coal because they took rock in the gate roads


Conclusions
Conclusions

  • Timely & Proactive transformations have been implemented over the 35 year mine life to effectively mine the remaining reserves

  • Applying varying mining methods has mitigated the output / cost risks and allowed the metamorphosis to occur while continuing to be a reliable supplier to the Bridger plant


Conclusions1
Conclusions

  • Bridger has the ONLY highwall and ONLY longwall system extracting coal in Wyoming. The exceptional cooperative working relationships with their vendors has allowed them to realize and implement their vendor’s technical and operational knowledge

  • Bridger is a viable and competitive coal mining complex today because it embraced the changes needed to compete over the long term


Conclusions2
Conclusions

  • The Bridger Mine Metamorphosis encapsulates:

    - Planning Long Term

    - Implementing

    - Making the Tough Decisions

    - Correcting the Course

    - Doing it All Again

    This model for success is applicable in our personal, physical, spiritual and managerial lives as well as our industry at large !