Coal Loss and Dilution Considerations for Western Canadian Foothills Open Pit Coal Projects

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1 Coal Loss and Dilution Considerations for Western Canadian Foothills Open Pit Coal Projects Presenter: Mike Allen Manager, Surface Mining April 29, 2015

2 Outline Terms / Definitions Factors affecting coal loss and dilution Coal mining methods / equipment Measurement Considerations Reconciliation Process

3 Terms / Definitions Contact / Interface: Hanging Wall Footwall Dip Dilution Mining recovery Mining section Parting: Removable Non-removable Seam

4 Factors Affecting Coal Loss and Dilution Coal seam dip Proximity to faulting / complex structure Seam thickness Hanging wall and footwall competency Dilution physical properties Preparation plant configuration: Raw coal handling Sizing / separation

5 Mining Methods by Seam Dip Steeply Dipping - coal seams that dip greater than 55 to 60 Moderately Dipping - coal seams that dip between 10 to 15 and 55 to 60 Shallow Dipping - coal seams that dip between 0 and 10 to 15

6 Steeply Dipping Seams 65

7 Moderately Dipping Seams 15 35

8 Shallow Dipping Seams

9 Complex Coal

10 Coal Mining Equipment Coal Cleaning Dozer Backhoe Coal loading Loader Backhoe (up to 90t class) Shovel or Excavator (over 90t class)

11 Steeply Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL COAL REMOVED ON PRIOR BENCH SEAM DIP>60 1. DRILLING AND BLASTING BLASTHOLE DRILL DRILLING AND BLASTING COAL REMOVED ON PRIOR BENCH 2. WASTE REMOVAL EXCAVATOR REMOVES BLASTED MATERIAL COAL REMOVED ON PRIOR BENCH SEAM DIP>60 3. COAL REMOVAL SEAM DIP>60 DIG OUT WEDGE IN FLOOR SEAM DIP>60 Do not have to blast through coal.

12 Steeply Dipping Coal Seams Mining Sequence DRILLING AND BLASTING BLASTHOLE DRILL DRILLING AND BLASTING COAL REMOVED ON PRIOR BENCH 2. WASTE REMOVAL SEAM DIP>60 2. WASTE REMOVAL EXCAVATOR REMOVES BLASTED MATERIAL COAL REMOVED ON PRIOR BENCH EXCAVATOR REMOVES BLASTED MATERIAL COAL REMOVED ON PRIOR BENCH SEAM DIP>60 SEAM DIP>60 3. COAL REMOVAL DIG OUT WEDGE IN FLOOR SEAM DIP>60 Depending upon coal strength, may have to excavate in 5 to 7m benches to expose coal.

13 Steeply Dipping Coal Seams Mining Sequence DRILLING AND BLASTING BLASTHOLE DRILL DRILLING AND BLASTING COAL REMOVED ON PRIOR BENCH 3. COAL REMOVAL SEAM DIP>60 2. WASTE REMOVAL EXCAVATOR REMOVES BLASTED MATERIAL COAL REMOVED ON PRIOR BENCH SEAM DIP>60 3. COAL REMOVAL DIG OUT WEDGE IN FLOOR SEAM DIP>60 DIG OUT WEDGE IN FLOOR SEAM DIP>60 Cleaning assistance with small backhoe (5m 3 ) Trying to limit coal rehandling to minimize fines generation.

14 Steeply Dipping Coal Seams Mining Sequence DRILLING AND BLASTING BLASTHOLE DRILL DRILLING AND BLASTING COAL REMOVED ON PRIOR BENCH SEAM DIP>60 2. WASTE REMOVAL EXCAVATOR REMOVES BLASTED MATERIAL COAL REMOVED ON PRIOR BENCH SEAM DIP>60 3. COAL REMOVAL DIG OUT WEDGE IN FLOOR SEAM DIP>60 Could sub-out coal and place rock to protect coal from blast damage.

15 Steeply Dipping Coal Seams Coal Cleaning

16 Moderately Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 2. WASTE REMOVAL 1. DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 3. COAL REMOVAL 4. WASTE REMOVAL Blast holes are geophysically logged to allow for controlled blasting through coal. 5. DRILLING AND BLASTING BEGIN NEXT BENCH BLASTHOLE DRILL DRILLING AND BLASTING

17 Moderately Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 2. WASTE REMOVAL 2. WASTE REMOVAL 3. COAL REMOVAL 4. WASTE REMOVAL Operator training is key to maintaining good recovery and controlling dilution. 5. DRILLING AND BLASTING BEGIN NEXT BENCH BLASTHOLE DRILL DRILLING AND BLASTING

18 Moderately Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 2. WASTE REMOVAL 3. COAL REMOVAL 4. WASTE REMOVAL Cleaning assistance with small backhoe (5m 3 ) 5. DRILLING AND BLASTING BEGIN NEXT BENCH BLASTHOLE DRILL DRILLING AND BLASTING

19 Moderately Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 2. WASTE REMOVAL 3. COAL REMOVAL 4. WASTE REMOVAL 5. DRILLING AND BLASTING BEGIN NEXT BENCH BLASTHOLE DRILL DRILLING AND BLASTING

20 Moderately Dipping Coal Seams Mining Sequence DRILLING AND BLASTING DRILLING AND BLASTING BLASTHOLE DRILL STEMMED WITH CRUSHED ROCK 2. WASTE REMOVAL 3. COAL REMOVAL 4. WASTE REMOVAL May sub-out coal and replace with waste to prevent crushing/coal loss from traffic 5. DRILLING AND BLASTING BEGIN NEXT BENCH BLASTHOLE DRILL DRILLING AND BLASTING

21 Moderately Dipping Coal Seams Coal Cleaning

22 Moderately Dipping Coal Seams Coal Loading

23 Shallow Dipping Coal Seams Mining Sequence

24 Shallow Dipping Coal Seams Mining Sequence

25 Shallow Dipping Coal Seam Coal Cleaning

26 Shallow Dipping Coal Seam Coal Cleaning

27 Shallow Dipping Seams Coal Loading

28 Measurement Considerations If you don t measure it, you can t manage it.. Geological Confirmation: In pit mapping / surveys of coal seams Seam thickness Seam position relative to the modelled position Coal quality

29 Measurement Considerations (continued) Mining Considerations Blasthole logging Blasting Bench grade control Incorporate into revised mining geology model

30 Measurement Considerations (continued) Plant: ROM stockpile management Raw coal quality Scales (calibration) Plant mass balance Product quality (moisture, ash)

31 Reconciliation Process Define Parameters Develop Mining Geology Model Reconcile Mine Coal Measure

32 Questions?

33 EXPLORE the Depths of our Experience 33

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