27-28 October

North Goonyella Coal 2 PART PUMPING – A VISION IN APPLICATION

Longwall Conference

Wouter Niehaus

Underground Mine Manager

About Peabody Energy

● The world’s largest private-sector coal company

– 251.7 million tons sold in 2013 from operations, trading and brokerage

– $7 billion in revenues

– 8.3 billion tons of proven and probable reserves

● Customers on six continents

● 27 mines across U.S. and Australia

– 20 surface mines

– Seven underground mines

● Listed on New York Stock Exchange under symbol “BTU”

● “Fortune 500” and

“S&P 500” ranking

2 Wilpinjong Mine

Peabody: World’s Largest Private-Sector Coal Company

Metallurgical and Thermal Coal Customers in 25+ Countries

Essen

Beijing

Ulaanbaatar

Urumqi

Jakarta Balikpapan

New Delhi

Brisbane, QLD

Newcastle, NSW

London

(From U.S.)

St .Louis, MO

Singapore

Mining Operations and Trading

Sales Reserves

SPRB 135 3.4

Midwest 26 3.2

Southwest 16 0.5

Colorado 7 0.2

Australia 35 0.9

Trading 32 -

Total Tons 252 8.3

Million Billion

Reported 2013 sales volumes. Reserves based on 2013 10-K filing. Total sales and reserves variances are based on rounding calculations. Green shading

indicates countries served by Peabody.

(to Europe)

Operating Regions

Customers Served

Corporate Office

Regional Offices

Trading/Business

Development Offices

Coal Flows

3

Metropolitan

Dalrymple Bay

Abbot Point

Port Kembla

Queensland

New South Wales

Brisbane

Wilpinjong Wambo Underground

Wambo Open Cut

NCIG

PWCS

Gladstone

BTU Met

BTU Thermal

Port

PEA PCI Mine

PEA PCI Project

Burton North Goonyella

Millennium Eaglefield

Moorvale

Middlemount

Coppabella

● Peabody’s Australia platform has

grown rapidly since 2002

– Volumes doubled every 3 years,

contributing to a 400%+ increase in

EBITDA

● Acquired Macarthur, largest

purchase in 131-year history

– World’s largest producer of low-vol

PCI coal

– Pro forma combined position in 2011:

Reserves = 1.4 BT (attributable)

Resources = >6 BT (attributable)

● Diverse mix of met/thermal coal

● Ideally located to meet Asian

demand

● More than 2500 employees plus

approximately 500 contractors

Peabody Expands Australian Export Platform Via Joint Ventures, Acquisitions

4

About North Goonyella Coal

● 2 hours south-west of Mackay (Peak

Downs Highway)

● North Goonyella Coal ships to

Japan, Korea, China and India

● Commenced operations in 1994,

Peabody acquired in April 2004

● Produces premium-quality, medium-

volatile, high-strength coking coal.

5

Pumpable Crib

● A longwall tailgate is a hazardous environment

– Machine access is restricted by high gas levels and roadway impediments

– Interaction between people and machines

● Costs and logistics challenges:

– Moving equipment long distances from the surface

– Limited capacity of transports

– Impact on roadways

– Timing for installation and limited access (maintenance days)

– General maintenance – nuisance water and irritant dust

● Broad planning was required to manage issues

The Challenge

Pumpable Crib

● Met with RGN (representatives from Heintzmann

Australia) in early 2012

– Pumpable Crib: Used in United States and southern mining

districts of Australia

– Reviewed established processes with focus on innovation

– Developed enhanced system with range of benefits

Developing A Solution

Set Up

8

• Crib Bag Installation

Footnotes are Arial 9 and align with the page number on the master

Pumpable Crib

● Long pumping distance – to 5km

● Improved safety

● Reduced:

– Manual handling

– Down time

– Vehicle requirements

– Roadway impact

● We’d developed a safe and cost-effective method of

keeping tailgate open…on paper

Benefits of Enhanced System

Pumpable Crib

● 2-part pumping system set up in a remote location

● Specialist cements proprietary but relevant SDs

provided

● 4-bowls - 2 for each part - so one can be mixing whilst

the other is pumping to avoid stopping and starting

● Mixed at the delivery end (single mixing line) before

branching back out into two fill lines

● Result is rapid-setting cement that is able to be used to

fill a textile crib bag in stages

The System

Set Up

11

• Underground Pumping Unit

Footnotes are Arial 9 and align with the page number on the master

Set Up

12

• Underground installation

Footnotes are Arial 9 and align with the page number on the master

Pumpable Crib

● 2012 employees from Heintzmann and RGN began trial

● Tailgate access impacted by gas levels

1. Options were shut the wall down and manage the gas

2. Push ahead with the trial

● Benefits were evident early – immediate set-time of

cement gave 85% of final strength in 24 hours

– No delays waiting for product to set

– Average 10 pumpable cribs for every 4 hours of pumping time

● The trial continued…

The Trial

Underground

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• Crib Bags available in 762mm, 914mm, 1066mm & Custom Diamaters

Footnotes are Arial 9 and align with the page number on the master

Pumpable Crib

● The trial continued and performance exceeded

expectations

– Adapted to backfill gas drainage stubs on longwall retreat

● Eliminated need to transport 95% of supplies

underground for tailgate support

● Able to pump entire longwall from single site

– Option to pump multiple longwalls

● Benefits to both production and safety

The Results

Surface Installation

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Surface Installation

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