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Oct 2016

"Commercial in Confidence" applies - refer slide 2

Perspectives and Experiences

Forward

Longwall Relocations experiences and view from a

Contractors Perspective

Industry wide Longwall experiences.

Quote –

“If you always do what you have always done.

You will always get, what you always got.”

Repeating success activities is worthwhile.

Repeating and not learning from Major Issues is Insanity!

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DeltaSBD- Who are We.

• DeltaSBD

– ASX Listed

– Positive Audited Results in continuing difficult times

for the coal industry in 2016.

• Contract Operations include:

– Whole of mine operations

– Pillar extraction and roadway development

– Longwall relocation services

– Delta GRID – LW recovery mesh

– General Contracting services

• Equipment Fleet

• Experienced Management Team3

DeltaSBD Experience in LW relocations

• Delta SBD has completed or been involved in over 120

Longwall Relocations.

• Since 1995 the elements of the company have been

involved in longwall relocations via –

– Full contract including diesel and equipment fleet –

“Last Coal to Commissioning.

– Walk off – Walk on Contracts

– Contract Tear-Down, Transport &/or Install

– Supplying supplementary labour

– Skilled Tradespeople incorporated into work-teams

– Servicing and Maintaining plant and mobile

equipment4

DeltaSBD Experienced Team

• DeltaSBD has management, supervisors

and trades people with experience and

skills in longwall relocation including:– Planning and risk profiling (UG Inspection)

– Equipment control and maintenance

– Bolt-up and Recovery Mat Installation (SWP)

– Major Issue recovery techniques

– Relocation activity execution (Skills)

– Project monitoring and reporting

– Commissioning and Ramp-up

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Safety and Risk Management Tools

for a safe Longwall Relocation.

Major activities are well assessed

using WRAC – Controls identified

• Energy Isolation is a major issue

– Incidents are still occurring

– Companies with embedded “Rules to

Live By” have fewer issues in this

area.

• Non-routine activities in sometime

hostile environment

– Increasing use of Job Safety

Analyses – in the work place

• There is no substitute for strong

safety leadership at the coal face.

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• When conditions change

TARP’s are referred to and

the application of Change

Management or coordination

of Incident Management

Team is becoming normal

course of action

Planning and risk profiling

• Experience and Learnings

– Historically standing in the main-gate

intersection months before relocation and

walking transport routes - Invaluable

– Concrete floors where required

– Ribs trimmed for wheeling

– Water management in place

– Use review from previous relocation to risk

profile and guard against repeating unwanted

events.

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Planning Tools

• Computer Schedule of LW relocation project is

needed to monitor and track status.

1. LW Face supervisors need good set of “Deputy

Notes” for the shift ahead – not snap shot of the

schedule.

2. Shift notes need to point out alternative activities

3. Hand-over form shift to shift is critical

4. Daily management up-date with project status and

emerging issues is critical.

• Do NOT hide or dilute emerging issues

• Include preventative actions and escalation –

should issue materialise

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Equipment control and

servicing/maintenance

The right equipment for the task at hand.

• History of not accounting for

– Grades

– Road conditions

– Load ratings (Equipment Over-load is still an issue)

• Tracking mobile plant – electronic tag systems

• Routine servicing – Flying Gang to access

critical plant on the job

• Rigorous Maintenance schedule with skilled

plant mechanics (not panel fitters)

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Bolt-up and Recovery Mat

InstallationRecovery face Bolt-up improvements

• Rapid face bolters – Mid-face chutes

• Handling of roof support supplies/consumable

Industry wide use of Longwall Recovery Mat or Mesh

• Huge reduction in exposure to hostile and hazardous

roof/goaf situation

– Protection of the Workers

– Reduced Powered Roof Support Damage

– Improved repeatability in PRS extraction process

• Recovery Mat installation practices

– Planning and mat construction is fundamental

– Discipline and craftsman like

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DeltaGRID

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DeltaGRID – Proven quality

Delta SBD is the sole agent in Australia and New Zealand for grid mesh manufactured by ADFORS Saint-Gobain

The ADFORS SG grid mesh is known in Australia and NZ as DeltaGRID

ADFORS SG grid mesh has been marketed as a longwall recovery mesh system in America by Tensar for 23 years

Tensar have the majority share of the American market for longwall recovery mesh systems – PROVEN SYSTEM & PROVEN QUALITY

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DeltaGRID - Opportunity

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Current Australian market longwall recovery mesh source

Two current suppliers

Little competition

Enhanced DeltaSBD services around longwalls

LW recovery mesh – supply, support and install

Longwall recovery - enhanced core business

ADFORS Saint-Gobain is a part of the Saint-Gobain Group

Saint-Gobain is the world leader in the habitat and construction markets. It designs, manufactures and distributes building materials, providing innovative solutions to meet growing demand in emerging economies, for energy efficiency and for environmental protection.

60 billion A$ revenue

ADFORS Saint-Gobain manufactures industrial fabrics such as laid scrim, glass mats and woven/knitted fabrics such as geotextiles

ADFORS Saint-Gobain?

Major Issue recovery techniques

Most LW Mines have experienced Major Issues

– Roof or Face Control Events

– Roadways and Intersections Breaking Up

– Water flows out of control

– Ventilation circuit not as modelled

• Lean on experience and learnings

– Contractors have exposure to other mines

• Incident management team principles will

provide a “Team Approach”

• Realistic recovery schedule – unrealistic

expectations can damage careers.15

Paradigm Shift??

• Production is something to do between Longwall

Relocations!

• Some of the most effective mines include a

relocations coordinator in org chart.

• Role responsibilities should include;

– Continuous involvement with L/W and Development

departments with focus on;

– Planning of corner trimming, widening areas,.

– Regular inspections to confirm as driven, height

surveys, road conditions, planning critical

intersections etc16

Relocation activity execution (Skills)

• Include preparation and review of training

packages and SWP’s into the Integrated

Mine Schedule.

• Prepare a catalogue of work packs for

each activity in advance and reference

them in Relocation Schedule.

• Invest in implementing and updating a

detailed skills matrix for each shift to

effectively plan activities within schedule.

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Project monitoring and reporting

• Create Job Codes for activities and use

Time Sheets to capture total resources

used on each activity.

• Job Codes can start from Prep Work

including material supply.

• Report the detail around delays to help

review actual resource utilisation for future

relocation planning.

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Commissioning and Ramp-up

• Have you been in this situation -

– “Last Support is on! When will we go”

• 1 Shear and stop for 24 Hours

• 3 more shears and down for another 24

• Commissioning and Ramp-up control is a

specific project task.

• Does every LW manager that progresses

to be a mine manager forget the

Commissioning Plan and Processes?

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Pre-Meetings and Reviews

• Relocation Pre-Meetings

• Crews and Contractors

• Support people

• Bolt-up – Bolting Pattern and Mesh Handling

• Tear Down details

• Haulage routes and gear to go to surface

• Installation layouts

• Learnings from last

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Best Practises

• ALL stakeholders sign off on Panel design

BEFORE development starts.

• Chute road location is critical and is worth

a number of extra days for development.

• Contractor induction, equipment training

and appointments are carried out offsite

prior to mobilisation.

• Contractor has coordinator involved in

planning and review meetings21

Best Practises continued…

• Oldest Mine in Australia – Sling and Lifting

Equipment training prior to every

relocation.

• Mid Face chutes planned and pre-stocked

• Mobile plant and equipment supplier

– Services and maintains fleet

– Provides consumables and parts

• Equipment location monitoring – Tags

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Thankyou

Don’t hesitate to

ask for advise – it

can save $ Millions

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