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STRAIGHT FORWARD DRILLING 2014-04-11 Peter Johansson, Area Manager LKAB Wassara AB

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STRAIGHT

FORWARD

DRILLING

2014-04-11

Peter Johansson, Area Manager

LKAB Wassara AB

LKAB Wassara AB

LKAB Wassara AB - 100 % owned by LKAB

- 50 employees (in two locations in Sweden)

- Distributors in 28 countries

- Strong ambition to grow in coming three years

LKAB - 100% owned by Swedish state

- Sales, BSEK 24 (BEUR 2,8)

- 4 400 employees (20% women)

- World leader in underground mining

- World leader in pellet manufacturer for 50 years

- 90% of the EU’s iron ore production

- Planning to hire 1 250 new employees until 2015

Existing markets

Some European contractors

Skanska PEAB

NCC Trevi

Soletanche Bachy (Vinci) Keller

Zublin / Insond (Strabag) Bilfinger

Rodio Bauer

Porr Hochtief

Lemminkainen Salini

Boart Longyear Marti

Regularly using Wassara

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 3

Rock drilling principles Rotary, Top-Hammer, Down-The-Hole

Ro

tary

Top

-Ham

me

r

Do

wn

-Th

e-H

ole

Wassara the “Hybrid hammer”

Wassara Water Powered DTH hammer

Piston

Valve

Two moving parts

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 5

Unique water-powered DTH hammer

• World patented

• > 20 years in various applications

• > 25 million meters drilled in-house by LKAB

Key Benefits with water powered drilling

The Key Benefits

with Wassara

Safer and benign drilling

Borehole quality and accuracy

High performance

Less environmental

impact

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 6

Penetration rate

TOP Hammer

Reduced penetration rate after ~20 meters

4‐6% of the impact energy is lost at each

joint (exact figure depends on the design,

mass, number and tightness of joints)

DTH

No loss of energy through the drill string

from start to finish of the hole, as with top

hammer.

DTH vs. Top hammer

7

0 25 50 75 100

meter

Penetration rate (ROP)

Top hammer DTH

Ro

tary

Top

-Ham

me

r

Do

wn

-Th

e-H

ole

Ro

tary

Top

-Ham

me

r

Do

wn

-Th

e-H

ole

Higher Performance

Hammer Pressure Flow Frequency

Wassara W100

4’’

180 bar (2600 psi)

3,5-6 l/s (225-350

l/min) 7.5-13 cfm (60-95 USgpm)

3600 blows per minute

(60 Hz)

Air DTH

4’’

30 bar (435 psi)

350-450 l/s (740-950 cfm)

2000-2700 blows per

minute

(35-45 Hz)

Water Hydraulic DTH

1 bar (atm) 2 bar 4bar 30 bar

Water

1L

Water

1L Water

1L Water

1L

Air

1L

Air

1/2L

Air

1/4L

Air

1/30L

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 8

Safer and benign drilling with Wassara

Water DTH

3,5-8 l/s

@ 180 bar

7.5-17 cfm

(55-130 USgpm)

@ 2600 psi

Air DTH

15-20 l/s

@ 30 bar

30-40 cfm

@ 435 psi

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 9

Safer and benign drilling with Wassara

Air DTH

450-650 l/s

@ 1 bar (atm)

750-1400 cfm

@14.5 psi (atm)

Water DTH

3,5-8 l/s

@ 1 bar (atm)

7.5-17 cfm

(55-130 USgpm)

@14.5 psi (atm)

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 10

Minimum disturbance to the formation

Minimal outgoing water velocity -> low pressure!

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 11

Facilitates drilling in water rich formations

Water in the formation does not affect the

Wassara hammer

- Maintained ROP drilling under the ground

water table.

Ex. Air DTH

Ground water

table @ 50m

100

150

200

250

300

350

200m = 20bar 320m = 32bar

Effective Air Pressure = 1bar

21bar

21 Bar

50bar

Effective Air Pressure = 18bar

21bar 21bar

Booster

12

Borehole quality and accuracy Tight Spacing

2-4 mm

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 13

Average deviation Air DTH: 19,2%

Average deviation Wassara DTH: 1,3%

Long straight holes with Wassara

Average deviation for Wassara = 1,05 %

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 14

Energy consumption Reduction of energy consumption with up to 80%

vs

Water Pump Air Compressor

200 bar (2900 psi) 35 bar (510 psi)

490 l/min (129 USgpm) 570 l/s (1207 cfm)

190kW (255 hp) 429kW (575 hp)

Water Pump Air Compressor

Reduction of energy consumption with up to 80%

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 15

- No oil mist in the air

- No dust

Working Environment Mining

AMV drill with Air ITH AMV drill with Wassara

Working Environment Construction

Air DTH Wassara DTH

17

Sound Emission

DTH drilling is much more silent

compared to top-hammer drilling

because the percussion unit follows

the bit down hole.

Water hammer drilling is more silent

compared to air hammer drilling

because the water column will

dampened out the noise from the

hammer.

18

WATER-POWERED DRILLING IN DAMS

Drilling in existing dams Reinforcement drillings in existing dams for installation of grout

curtains and concrete walls

Old wall New wall

Cavity

Drilling in new dams

A. Inclined drilling downwards for grout injection.

B. Drilling of drainage holes from gallery for pick up

of seepage.

Drilling holes for creation of grout curtains in new dams

A B

Diversion

Upstream face Downstream face

Galleries

for service

and drainage

Better borehole quality with water flush

Wassara drills cleaner and more stable

holes, simplifying geophysical pre-

grouting tests. This gives good

conditions for grouting.

View from the top of the hole at the Urdalur Dam, Spain

Flashlight at 58.5 m depth

Dam rehabilitation

– Urdalur Dam, Spain

Application:

Strengthening/repairing existing drainage/service tunnels by injection of grout

Mission: Very tight

clearance: max borehole

deviation of 0.1% at 58.5 m

(192 ft.) depth.

The distance was only 75 cm

(30”) from the center of the

borehole to the dam wall on

one side and 75 cm (30”) to

the two drainage/service

tunnels on the other side.

Result: Borehole deviation

was confirmed to be less than

0.1%. Drilling completed

within timeframe.

75 cm (30”)

McCook Reservoir Project

Installation of a grout curtain to minimize the flow of water in and out of the reservoir.

U.S. Army Corps of Engineers conducted a test project to compare the water-powered DTH hammer and rotary drilling methods.

2x 128pcs grout holes in two parallel rows was drilled to a depth of 135 meters. The Wassara drilling system was 100% more efficient than the rotary drilling

Borehole accuracy

The allowed borehole deviation was set to 4% at full length. The quality control indicated that Wassara had an average hole deviation of just over 1%.

Chicago Underflow Plan, designed to protect the city from flooding.

Galleries

for

service

and

drainage

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 24

Wolf Creek Dam

Max allowed borehole deviation for the project

was 0.15%. Wassara both met the stringent

requirements and kept the time schedule.

Length: 1280m Depth: 84m

Pilot hole for Cut of wall: Wassara W150 – Ø203mm bit

Grout holes for grout curtain: Wassara W80 – Ø95mm bit

2007-2012

Old wall New wall

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 25

Angostura Dam Water-powered drilling in confined galleries

Max 2% allowed deviation

26 Presenter: John Doe | Company Name

Silvretta Dam – Austria Wassara W50 on a compact drilling rig

Date 2013-11-29 27 Presenter: Peter Johansson | LKAB Wassara

Drilling for consolidation grouting Adana Turkey

Date 2012-08-13 28 Presenter: John Doe | Company Name

Drill time / hole: Wassara: ~20min Rotary drilling: ~1h

Rate of penetration: 1 meter / min

• Silvretta Staumauer, Austria Drilling for grouting 2009

• Tsankov Kamak Hydro Power Dam,

Bulgaria Drilling grout holes for new dam 2004-10

• Niagara Falls, Canada Installation of a grout curtain 2007

• Central Hidroeléctrica Angostura, Chile Drilling grout holes for new dam 2012

• Ohra dam, Germany Drilling grout holes for new dam 2003

• Changuinola I Hydro Power Dam, Panamá Drilling grout holes for new dam 2009-2012

• Urdalur, Spain Strengthening/repairing existing

drainage/service tunnels by injection

of grout 2010

• Bergeforsen, Sweden Sheet pile wall installations 2011-2012

• Seitevare, Sweden Casing advancing for installation of

instrumentation 2008

• Dernier Dam, Turkey Drilling grout holes for new dam 2010-11

• Logam Martin Dam, USA Installation of a grout curtain 2005

• McCook Reservoir Chicago, USA Installation of a grout curtain 2007

• Wolf Creek, USA Installation of concrete walls 2009-2012

• Marchlyn Mawr Dam, Wales Installation of a grout curtain 2008

• Center Hill Dam, USA Installation of concrete walls 2013-

• Reb Bluff Dam, Texas USA Drilling grout holes 2014-

Wassara is recommended by the US Army Corps of Engineers, Vattenfall (Swedish

state dam commissioner), the dam consultants Golder Associates, SWECO, WSP, etc.

Some reference projects

WATER-POWERED DRILLING IN JET GROUTING

The Jet Grouting Process

Date 2012-08-13 40 Presenter: John Doe | Company Name

www.asconroads.com

1.

Drilling

2.

Injection

of grout

3.

Rotate

& lift

Convential equipment Jet grouting monitor & drag bit

Date 2012-08-13 41 Presenter: John Doe | Company Name

The drilling is normally done with conventional rotary (drag bit) and the operation is

completed in two simple steps.

Problematic formation Boulders, Till, Concrete

Date 2012-08-13 42 Presenter: John Doe | Company Name

Water to the hammer

Grout to the nozzle(s)

Wassara Jet Grouting Hammer

The Wassara Jet Grouting System

Date 2013-11-06 44 Presenter: Peter Johansson | LKAB Wassara AB

The Jet Grouting Process Drilling

Date 2012-08-13 45 Presenter: John Doe | Company Name

The Jet Grouting Process Jetting

Date 2012-08-13 46 Presenter: John Doe | Company Name

Excavation of JG columns

Diameter ~1,8-2,0m

1x Ø5,5mm nozzle @ 450bar

Wassara Jet Grouting Hammer

Date 2012-08-13 47 Presenter: John Doe | Company Name

Diameter ~1,5m

2x Ø4,2mm nozzles @ 450bar

Date 2012-08-13 48 Presenter: John Doe | Company Name

Excavation of JG columns Wassara Jet Grouting Hammer

PEAB - Bergendal Food Case Study Jet grouting

Date 2012-08-13 49 Presenter: John Doe | Company Name

Shortening the production time

Date 2012-08-13 50 Presenter: John Doe | Company Name

Brasfond Jobsite Rio de Janeiro

Date 2012-08-13 51 Presenter: John Doe | Company Name

Construction of vertical

shaft for subway station

to the new subway line

20m drilling with roller bit

(conventional system)

~1h -> 1h 20min.

20m drilling with Wassara

jet grouting system:

~20min

20m Jet grouting:

~40-45min

Saturday 25/1 - 2014

kl 13.12 – start drilling

kl 13.31 – finish drilling

kl 13.37 – start jetting

kl 14.23 – finish jetting

Drilling with Roller bit 20m drilling ~ 1 – 1h 20min

Date 2012-08-13 52 Presenter: John Doe | Company Name

Drilling With Wassara JGH 20m drilling ~20min

Date 2012-08-13 53 Presenter: John Doe | Company Name

WATER-POWERED DRILLING IN MINING

Coming up

Wassara in mining

55

CHIBULUMA

Contractors

Accurate drilling is mine profitability

Straight blast holes

Enables longer blast holes

Reduction of drifts / sublevels

More ore per drilled meter

Optimal Fragmentation

Higher productivity in the crushers

Higher productivity in the process plant

Minimized Dilution

Mine only the ore body, not the waste rock

Increased productivity in the process plant

Maximized Ore recovery

Deviation => poor fragmentation & ore dilution

56 Presenter: Peter Johansson | LKAB Wassara AB

Malmberget Kiruna Logistics

Harbours in

Narvik & Luleå

Main mines in

Kiruna &

Malmberget

New open pit mines in:

Svappavaara

Leveäniemi, Mertainen

Sales 2012: 27 BSEK, Income: 11 BSEK

4100 employees

World leader in underground mining

World-leading in pellet manufacturer

for more than 50 years

Sweden’s largest carrier: >30 Mt hauled by rail

90% of the EU’s iron ore production

Planning to hire >1,250 employees 2013-2015

Investing > 6 Billion SEK/year 2013-2030

2001: 19 Mt 2006: 23 Mt 2012: 27 Mt 2015: 37 Mt

Reduce sublevels = reduce costs

LKAB mines – Sub level caving

From top-hammer to

Water powered DTH

59

Mine layout

designed after

drilling method

limitations

Mine layout

optimised after

production

15

12,5 12,5

15

m

15

15

12,5 12,5 12,5

Reduction of

sublevels:

Approximately

70 %

Increased volume per

drilled meter:

Approximately 500%

Reduction of sublevels

Result of scaling up

Before

• 12 m distance between levels

• 28m bore hole length

• 1 200 tons per blast

After

• 28 m distance between levels

• 56m bore hole length

• 10 000 tons per blast

Results

• Reduction of sublevels by 70%

• Volume per drilled meter increased by 500%

Etc.

61

12 m

28 m

Long hole drilling at LKAB

62

LKAB drills approximately 1.5 Million meter

blast holes with Wassara every year

Utility holes

63 Presenter: Peter Johansson | LKAB Wassara AB

1136 m 1123 m

1242 m

Length: 141 m

Diameter: 115 mm

Inclination: 61,6 degrees

Length: 133 m

Diameter: 115 mm

Inclination: 62,2 degrees

Deviation 1,5 %

Deviation 1,1 %

Utility holes (for drainage) drilled with the Wassara W100. The demand for minimal

deviation is obvious to be able to reach the desired location at the lower level.

Andina

Pre-conditioning drilling

Long vertical holes with lengths of up to 190 meter and with a diameter of 5 ¾” (146 mm).

Wassara W100 hammer.

The main reasons for choosing Wassara

The Wassara hammers ability to drill long straight holes.

The improved working environment with less dust and no oil mist in the air.

Result

Wassara is seen to have a very large potential since the mine is aiming for even longer pre-conditioning holes.

No need to drill extra bore holes to compensate for the bore hole deviation (top-hammer).

Copper Mine

64 Presenter: Peter Johansson | LKAB Wassara AB

El Teniente

Slot (opening) drilling

Wassara W100 – slot drilling system

Hydrobreaking

Wassara W80 - 100m long, Ø95mm

Utility & dewatering holes

Wassara W150 – 65m long, Ø165mm

Copper Mine

65 Presenter: Peter Johansson | LKAB Wassara AB

Peter Johansson, Area Manager | 2014-04-11 | LKAB WASSARA AB

[email protected] | +46 70 386 90 92

THANK YOU FOR YOUR TIME

WATER-POWERED DRILLING R&D – FUTURE MINING

68

Top hammer

(28 m)

Wassara DTH-hammer

(55 m)

Controlled directional drilling

with coiled tubing

(~100 m)

”Yesterday” ”Today” ”Future drilling system”

Controlled directional drilling with

coiled tubing technology

69

Project focus

INDEX HAMMER

LOCATION

STEERING

COILED TUBING RIG

Controlled directional drilling with

coiled tubing

Date 2012-08-13 70 Presenter: John Doe | Company Name

WATER-POWERED DRILLING IN GROUND ENGINEERING

Drilling in Sensitive Areas Citybanan, Stockholm Sweden

Installation of 1300pcs micro piles down to

50m depth with Wassara W150

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 72

Costa Concordia

Ten platforms was installed on the seafloor by drilling 12 pieces of 15 meter (50 ft) deep holes and installing anchors that’s grouted firmly in the rock. Wires were then connected to the ship as a counter hold.

Water-powered percussion drilling is the only feasible method for drilling in the highly sensitive Marine National Park environment with its coral reefs.

-No oil for lubrication and no risk of pressurizing the formation!

Anchoring drilling with Wassara W150

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 73

Casing Advancing

High drilling performance

The water lubricates the casing making it possible to drill deeper.

Drills thru any formation

Drills through complex formations, such as

Dense clays Rock Boulders Wooden piles

Unaffected by water in the formation, even at high back pressure.

Foundation and reinforcement work with Wassara

Contractor: Skånsk Energi

Formation: Clay, Sand, Clayish moraine and silty sediment

Hammer: Wassara W100 & 139,7 OD Casing

Casing depth: 126m

Total depth: 320m

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 74

Reconstruction of Slussen (SWE)

The Slussen Project (2013 - 2020)

Installation of >3000pcs - Ø303 RD-micro piles,

~45m deep

-> 3,1 m3 “Drilled volume” / pile

Pre-study drilling methods

Volume cuttings flushed to surface

Air DTH: 6-10 m3 /12m drill pipe => ~30 m3 /pile

The extreme amount of expanding air and high

up hole velocity will flush much more cuttings to

surface than the actual drilled volume.

Wassara DTH:

The low up-hole velocity results in the cuttings

being pressed aside when drilling in overburden

resulting in minimum waste handling.

Comparative study – Air DTH vs Wassara DTH

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 75

Vojmsjön dam rehabilitation project

70 m long drilled steel pile wall with

the Rukki interlock system is being

installed (totally 1 680 m²).

The piles are attached to each other

by interlocking sections, assuring

the wall to be water-tight.

The largest drill depth is 13.5 meter.

Wassara W200

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 76

WATER-POWERED DRILLING IN GEOTHERMAL

Geo Energy & Geothermal

• Long Straight Holes

• Drill fewer holes but deeper

• Reduce risk of bore hole colliding.

• Up to 80% reduced fuel consumption compared to air compressor.

• Maintained drilling performance under the ground water table

Drill deep and straight holes with low energy consumption

Ex. Air DTH

Ground water

table @ 50m

100

150

200

250

300

350

200m = 20bar 320m = 32bar

Effective Air Pressure = 1bar

21bar

21 Bar

50bar

Effective Air Pressure = 18bar

21bar 21bar

Booster

Air DTH vs Wassara DTH

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 78

Energy Storage for Malmö KKV

Initially, the geothermal holes were drilled

with air powered DTH hammers.

The very water rich formation resulted in

about 100 m3 of water being pumped up

each hour due to the expanding

compressed air, also resulting high

performance loss.

After 3 weeks of drilling (of tot 10), less

than 10% of the boreholes where done.

By changing to Wassara water-powered

DTH hammers, the delay of the

operation was heavily reduced and the

drilling phase was completed in an

acceptable time frame.

75 boreholes 280m deep in water rich formation.

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 79

WATER-POWERED DRILLING IN TUNNELING

Date 2012-08-13 80 Presenter: John Doe | Company Name

Hallandsåsen Horizontal freeze hole drilling

Two 8.7 km long (ID 9m) TBM drilled train tunnels

Project: 1992-2015 Budget: 1,2 BEUR

The 300m long Mölleback zone consisting of

several subsections of clay, silt, fractured rock,

gravel with high water flows, up to 900 l/min.

Stabilizing the rock by freezing.

Casing 160m long horizontal freeze holes with

Wassara W100. 16 freeze holes / tunnel

Drilling of 125m long horizontal grout holes with

Wassara W80 to stabilize the rock before the

actual freeze hole drilling could be carried out

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 81

Citybanan Söderströms railway tunnel

- 6km long railway tunnel

- Project budget:19,4 BSEK (2,3 B€)

- Project start 2009

- Estimated opening of rail track 2017

Anchoring for Söderströms tunnel

Hole accuracy requirements was 1,5%. Measured accuracy resulted in 1,28%

Wassara for core drilling rigs

Diamec 262

Onram 1000

• No heavy investment

• Standard core drilling rig can be used

• Most of the existing equipment can be used

• High penetration rate

~ Five times faster than core drilling

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 83

TBM Probe drilling

Benefits with Wassara

• Straighter holes -> longer holes -> minimize

TBM stoppages

• Maintained drilling speed (ROP) throughout

the hole

• Less noise emission

• Better working environment

Drilling a straight probe hole with Wassara makes it possible to use the probe’s full measuring range

Probe measuring range: ~200m

With top-hammer

With Wassara

Service tunnel for high speed train Turin, Italy – Lyon, France, 55km

Date 2012-08-13 85 Presenter: John Doe | Company Name

WATER-POWERED DRILLING IN EXPLORATION

Wassara Exploration System

1. Setting casing in difficult ground formations with the

Wassara hammer

2. Pre-collaring to the interesting zone for sampling with the

Wassara hammer

High penetration rate – five times faster than core drilling

Casing advancing

Pre-collaring

Mineral

Wassara

drilling

Core

drilling

Date 2013-11-06 Presenter: Peter Johansson | LKAB Wassara AB 87

Wassara system

• No heavy investment

• Standard core drilling rig can be used

• Most of the existing accessories (water

swivel, rods, water pump etc.) can be

used, especially for setting casing

- Existing equipment can be used

88

Diamec 262 (AC) operation in Peru

• Less dependent on ground

formation

• High penetration rate –

“five times faster than

core drilling”

• Less dependent on the

hole depth* – because you

don’t have to fight the

water table

Water powered drilling

• No stop for core retrieving

• Just add rods and

penetrate until you have

reach the zone of interest

Significant time saving Faster penetration rate

– Key benefits

LF75 (BLY) operation in Mocambique

89

*, compared with air powered hammers

Water powered drilling – The down the hole assembly, N-size

90

1 Drill bit 82 / 81mm 3000121/3000120 5 Weight Rods (4x1,5m) 1500382

2 Wassara W70 hammer (80 mm) 1002760-80 6 Adapter WT70box-NQbox 1001601

3 Guided drill tube, 2*1 m (80 mm) 1500463-80 7 N-size drill tubes -

4 Check Valve 1500043 8 Adapter NQ pin-G 1 1/4’ 1001602

References – Test results from operations in Sweden

91

Date April 2012

Location 800 m underground

Formation Granite, 250MPa

Rig ONRAM 1000 (Sandvik)

Bit wear 82 bit: 1 mm, 81 bit: 1 mm

ROP 0,5 - 0,6 m/min @ 160-170bar

Application underground

Technique Wassara + core drilling

Hole depth 200 m + 200 m

Hole diameter 82 mm + N-size (76 mm)

Time needed 10 + 65 h

Time saving

Application underground

Technique core drilling

Hole depth 400 m

Hole diameter N-size (76 mm)

Time needed 135 h

Scenario 1 Scenario 2

The time needed is reduced with 60 h (45%)

if complement your standard core drilling with

Wassara drilling, and just take samples in a

specific zone of interest.

Saving

– Wassara vs. core drilling

92

Peter Johansson, Area Manager | 2014-04-11 | LKAB WASSARA AB

[email protected] | +46 70 386 90 92

THANK YOU FOR YOUR TIME