Short Term Coal Inventory Management

Using Simulation Software

James Anderson, Mine Planning Engineer, Wilpinjong

Erik Isokangas, Manager Technology Development,
Survey & Technology Applications
Location - Central Tablelands of NSW
60km north-east of Mudgee and 300km north-west of Newcastle.
7 Million Tonnes Thermal Coal
60% Domestic Coal and 40% Export Coal
7 horizontal seams, strip ratio 1.3.
150 people including office & workshop
Client Peabody Coal
History Construction started Feb 2006 (green field site)
First coal railed out October 2006
Crusher and Wash Plant complete March 2007
Planned life of Mine 21 years
Thiess Contract - 5 years

| Presentation to Japanese Company 1 | October 2005 |

| Presentation to Japanese Company 1 | October 2005 |
| Presentation to Japanese Company 1 | October 2005 |
| Presentation to Japanese Company 1 | October 2005 |
 MINING
(A, B, D1, D2, Ddil, E, G)

ROM

R1A stockpile R1B stockpile R3 stockpile R2 stockpile

(A, B) (G) (D2) (D1, E, G, Ddil)

CPP Export Train Domestic Train

19% target ash 27% target ash

W1A stockpile W1B stockpile

(from A, B) 15% ash (from G) 22-27% ash

Export Train
15% ash

| Presentation to Japanese Company 1 | October 2005 |

Challenges & Opportunities
ROM Stockpiles limited to 300,000 tonnes
Product Stockpile Capacity 250,000 tonnes
Monthly ROM Production averages 580,000 tonnes
Railing plan changes on a weekly basis
Crusher throughput 600,000+ tonnes per month
Existing Coal Flow Model (Excel) cumbersome
Coal Flow Models on a Monthly Basis
Required a more flexible and quick model

| Presentation to Japanese Company 1 | October 2005 |

Demonstration
Simulation
developed in
Extend
Input data and
control settings
are read from
Excel
Data output to
Excel

| Presentation to Japanese Company 1 | October 2005 |

Example Results - Railings

Total # NOT # NOT Railing

Train no. meeting meeting Tonnes Tonnes
type trains ash spec tonnes Planned not railed (Percent)
15%
Export 49 0 5 412,627 31,850 8%
19%
Export 21 0 12 177,581 81,450 46%
27%
Export 23 8 6 195,500 30,750 16%
Mac-
Gen 177 4 40 1,499,601 214,150 14%

TOTAL 270 12 63 2,285,309 358,200

Percent 4% 23% 16%

| Presentation to Japanese Company 1 | October 2005 |

 Stockpiles and Railing Demand (tonnes) Stockpiles & Railing Demand (tonnes)

0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000

0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1, 17/9
1, 17/9
5, 19/9
5, 19/9
9, 21/9
9, 21/9
13, 23/9
13, 23/9
17, 25/9
17, 25/9
21, 27/9
21, 27/9
25, 29/9
25, 29/9
29, 1/10 29, 1/10

33, 3/10 33, 3/10

Mined per shift (R1A)

37, 5/10 37, 5/10

Current R1A s/pile tonnes
Current W1A s/pile tonnes
Current ROM R1A inventory

41, 7/10 41, 7/10

45, 9/10 45, 9/10

Export - 15% train, deficit (tonnes)

49, 11/10 49, 11/10

ROM stockpile oversupply - ROM (R1A)

53, 13/10 53, 13/10

Train arriving next days - 15% Export (tonnes)

57, 15/10 57, 15/10

61, 17/10 61, 17/10

65, 19/10 65, 19/10

69, 21/10 69, 21/10

73, 23/10 73, 23/10

77, 25/10 77, 25/10

| Presentation to Japanese Company 1

81, 27/10 81, 27/10
85, 29/10 85, 29/10
89, 31/10 89, 31/10
93, 2/11 93, 2/11
97, 4/11 97, 4/11
101, 6/11 101, 6/11
105, 8/11 105, 8/11

Shift
Shift

109, 10/11 109, 10/11

Mined per shift (R3)

113, 12/11 113, 12/11

Current R3 s/pile tonnes
Current ROM R3 inventory

117, 14/11

| October 2005 |
117, 14/11
121, 16/11 121, 16/11
Export - 19% train, deficit (tonnes)
Stockpiles feeding 15% Export Coal

125, 18/11 125, 18/11

ROM stockpile oversupply - ROM (R3)

129, 20/11 129, 20/11

Stockpiles feeding 19% Export Coal

133, 22/11 133, 22/11

Train arriving next days - 19% Export (tonnes)

137, 24/11 137, 24/11

141, 26/11 141, 26/11
145, 28/11 145, 28/11
149, 30/11
149, 30/11
153, 2/12
153, 2/12
157, 4/12
157, 4/12
161, 6/12
161, 6/12
165, 8/12
165, 8/12
169, 10/12
169, 10/12
173, 12/12
173, 12/12
177, 14/12
177, 14/12
181, 16/12
181, 16/12
185, 18/12
185, 18/12
189, 20/12
189, 20/12
193, 22/12
193, 22/12
197, 24/12
197, 24/12
201, 26/12
201, 26/12
205, 28/12
205, 28/12
209, 30/12
209, 30/12
213, 1/1
213, 1/1
-
0

3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000

Mining/shift & Railing Deficit (tonnes) Mining/shift & Railing Deficit (tonnes)
 Stockpiles & Railing Demand (tonnes)
Stockpiles & Railing Demand (tonnes)

0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1, 17/9 1, 17/9
5, 19/9 5, 19/9
9, 21/9 9, 21/9
13, 23/9 13, 23/9
17, 25/9 17, 25/9
21, 27/9 21, 27/9
25, 29/9 25, 29/9
29, 1/10 29, 1/10

Mined per shift (R1B)

33, 3/10 33, 3/10

Current R1B s/pile tonnes

Current W1B s/pile tonnes
Current ROM R1B inventory
37, 5/10 37, 5/10
41, 7/10 41, 7/10

Export - 27% train, deficit (tonnes)

45, 9/10 45, 9/10

ROM stockpile oversupply - ROM (R1B)

49, 11/10 49, 11/10
53, 13/10

Train arriving next days - 27% Export (tonnes)

53, 13/10
57, 15/10 57, 15/10
61, 17/10 61, 17/10
65, 19/10 65, 19/10
Mined per shift (R2)

69, 21/10 69, 21/10

Current R2 s/pile tonnes

73, 23/10
Current ROM R2 inventory

73, 23/10
77, 25/10
Mac Gen train, deficit (tonnes)

77, 25/10

| Presentation to Japanese Company 1

81, 27/10 81, 27/10
ROM stockpile oversupply - ROM (R2)

85, 29/10 85, 29/10

Train arriving next days - MacGen (tonnes)

89, 31/10 89, 31/10

93, 2/11 93, 2/11
97, 4/11 97, 4/11
101, 6/11 101, 6/11
105, 8/11 105, 8/11

Shift
Shift

109, 10/11 109, 10/11

113, 12/11 113, 12/11
117, 14/11

| October 2005 |
117, 14/11
121, 16/11 121, 16/11
125, 18/11 125, 18/11
129, 20/11 129, 20/11
Stockpiles feeding 27% Washed Coal
Stockpiles feeding 27% MacGen Coal

133, 22/11 133, 22/11

137, 24/11 137, 24/11
141, 26/11 141, 26/11
145, 28/11 145, 28/11
149, 30/11 149, 30/11
153, 2/12 153, 2/12
157, 4/12 157, 4/12
161, 6/12 161, 6/12
165, 8/12
165, 8/12
169, 10/12
169, 10/12
173, 12/12 173, 12/12
177, 14/12
177, 14/12
181, 16/12
181, 16/12
185, 18/12
185, 18/12
189, 20/12
189, 20/12
193, 22/12
193, 22/12
197, 24/12
197, 24/12
201, 26/12
201, 26/12
205, 28/12
205, 28/12
209, 30/12
209, 30/12
213, 1/1
213, 1/1
-
0

3,000
6,000
9,000
3,000
6,000
9,000

12,000
15,000
18,000
21,000
24,000
12,000
15,000
18,000
21,000
24,000

Mining/shift & Railing Deficit (tonnes) Mining/shift & Railing Deficit (tonnes)
 -
-

2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
5,000
10,000
15,000
20,000
25,000
30,000
1, 17/9 35,000
1, 17/9
3, 18/9
3, 18/9
5, 19/9 5, 19/9
7, 20/9
7, 20/9
9, 21/9
9, 21/9
11, 22/9
11, 22/9
13, 23/9
13, 23/9
15, 24/9 15, 24/9
17, 25/9
17, 25/9
19, 26/9 19, 26/9
21, 27/9
21, 27/9
23, 28/9 23, 28/9
25, 29/9
25, 29/9
27, 30/9 27, 30/9
29, 1/10 29, 1/10
31, 2/10 31, 2/10
33, 3/10 33, 3/10
35, 4/10
35, 4/10
37, 5/10 37, 5/10
39, 6/10 39, 6/10
41, 7/10 41, 7/10
43, 8/10 43, 8/10
45, 9/10 45, 9/10
47, 10/10 47, 10/10
49, 11/10 49, 11/10
51, 12/10 51, 12/10
53, 13/10 53, 13/10
55, 14/10 55, 14/10
57, 15/10 57, 15/10
59, 16/10 59, 16/10
61, 17/10 61, 17/10
63, 18/10 63, 18/10
65, 19/10 65, 19/10
67, 20/10 67, 20/10
69, 21/10 69, 21/10
71, 22/10 71, 22/10
73, 23/10 73, 23/10
75, 24/10 75, 24/10

| Presentation to Japanese Company 1

77, 25/10 77, 25/10
79, 26/10
Tonnes dumped by truck into ROM hopper

79, 26/10
81, 27/10 81, 27/10
83, 28/10 83, 28/10
85, 29/10
Tonnes dumped to s/pile due to wrong feed type

85, 29/10
87, 30/10 87, 30/10
89, 31/10 89, 31/10
91, 1/11
Tonnes dumped to s/pile due to truck Queue (per shift)

91, 1/11
93, 2/11 93, 2/11
95, 3/11 95, 3/11
97, 4/11 97, 4/11
99, 5/11 99, 5/11
101, 6/11 101, 6/11
103, 7/11 103, 7/11
105, 8/11 105, 8/11
107, 9/11 107, 9/11
109, 10/11 109, 10/11
111, 11/11 111, 11/11

| October 2005 |
113, 12/11 113, 12/11
115, 13/11 115, 13/11
117, 14/11 117, 14/11
119, 15/11 119, 15/11
ROM Crushed (Out-bound)

121, 16/11 121, 16/11

ROM Tonnes (In-bound)

123, 17/11 123, 17/11

125, 18/11 125, 18/11
127, 19/11 127, 19/11
129, 20/11 129, 20/11
131, 21/11 131, 21/11
133, 22/11 133, 22/11
135, 23/11 135, 23/11
137, 24/11 137, 24/11
139, 25/11 139, 25/11
141, 26/11 141, 26/11
143, 27/11 143, 27/11
145, 28/11 145, 28/11
147, 29/11 147, 29/11
149, 30/11 149, 30/11
151, 1/12 151, 1/12
153, 2/12 153, 2/12
155, 3/12 155, 3/12
157, 4/12 157, 4/12
159, 5/12 159, 5/12
161, 6/12 161, 6/12
163, 7/12 163, 7/12
165, 8/12 165, 8/12
167, 9/12 167, 9/12
169, 10/12 169, 10/12
171, 11/12 171, 11/12
173, 12/12 173, 12/12
175, 13/12 175, 13/12
ROM Rehandled per shift

177, 14/12 177, 14/12

179, 15/12 179, 15/12
181, 16/12 181, 16/12
183, 17/12 183, 17/12
185, 18/12 185, 18/12
187, 19/12 187, 19/12
189, 20/12 189, 20/12
191, 21/12 191, 21/12
Tonnes dumped by truck into ROM hopper

193, 22/12 193, 22/12

195, 23/12 195, 23/12
197, 24/12 197, 24/12
199, 25/12 199, 25/12
201, 26/12 201, 26/12
203, 27/12 203, 27/12
205, 28/12 205, 28/12
207, 29/12 207, 29/12
209, 30/12 209, 30/12
211, 31/12 211, 31/12
213, 1/1 213, 1/1
 Tonnes per shift

-
2,000
4,000
6,000
8,000
10,000
12,000
1, 17/9

5, 19/9

9, 21/9

13, 23/9

17, 25/9

21, 27/9

25, 29/9

29, 1/10

33, 3/10

37, 5/10

41, 7/10

45, 9/10

49, 11/10

53, 13/10

57, 15/10

61, 17/10
R1A tonnes processed per shift
R1B tonnes processed per shift

65, 19/10

69, 21/10

73, 23/10

| Presentation to Japanese Company 1

77, 25/10

81, 27/10

85, 29/10

89, 31/10

93, 2/11

97, 4/11

101, 6/11

105, 8/11

109, 10/11

| October 2005 |
CPP Processing

113, 12/11

117, 14/11

121, 16/11

125, 18/11

129, 20/11

133, 22/11

137, 24/11

141, 26/11

145, 28/11

149, 30/11

153, 2/12

157, 4/12

161, 6/12

165, 8/12

169, 10/12

173, 12/12

177, 14/12

181, 16/12

185, 18/12

189, 20/12

193, 22/12

197, 24/12

201, 26/12

205, 28/12

209, 30/12

213, 1/1
Conclusions
3 monthly rolling Xpac Schedules are developed monthly
4 weekly rolling Xpac schedules are developed weekly
The simulation model is used on site on a weekly basis
The simulation model can be run for a month or 3 months
Input of data into model is completed within an hour
Results are instantaneous, tabulated on an hourly basis
Early results are promising, logic still to be tested further
Shortfalls in coal stocks can be identified early to enable
the mine plan to be changed in an orderly fashion

| Presentation to Japanese Company 1 | October 2005 |