2013: issue 10

A publication of Caterpillar Global Mining

Russian coal mine continues to set production records

FORTESCUE METALS IMPLEMENTS NEW CATERPILLAR AUTONOMOUS MINING SOLUTION Two mines. Two seams. One partnership. Cat dealer and customer strengthen relationship in rich coal basin

CATERPILLAR advancing the use of ALTERNATIVE FUELs in mining applications

scale studies help mining companies maximize payload, increase production

Over these last few months, as we’ve been putting together this new issue of Viewpoint magazine, we’ve also been experiencing uncertainties in the global mining industry. But in spite of this challenging economic environment, we continue to have many great success stories to share.

Together with our dealers, we’re supporting our company’s efforts to make engines that can customers like never before. In this issue you’ll run productively on Liquefied Natural Gas, an read about Armstrong Energy, which recently took economical and clean-burning alternative to diesel. delivery of the world’s first full fleet of Cat® Room And you’ll see how we’re working with our customer and Pillar mining equipment and now partners Fortescue to deliver an autonomous mining solution with Cat dealer Whayne Supply for both its surface that delivers increased productivity and safety—at and underground coal operations. The Tugnuysky lower costs. coal mine in Russia is setting production records Good things continue to happen in this important with a Bucyrus 495 HD Electric Rope Shovel, now industry, and we’re proud to be able to share some supported by Cat dealer Vostochnaya Technica. of these stories with you. We’re committed to These challenging times also give us an opportunity mining and we’re committed to you. to work hand in hand with our customers to help them become more efficient and lower their overall operating costs. In this issue you’ll read about our alliance with Transcale and the value Chris Curfman Caterpillar customers are finding in the use of President Mining Sales & Support Division scales for payload optimization. You’ll learn about

Editorial Board: Tony Johnson, Editor. David Edwards, Safety & Sustainability. Sean Gladieux, Viewpoint is a publication of Caterpillar, Product Support. Mindy Elsasser, Product Support Marketing. Kent Clifton, producer of the mining industry’s broadest line Applications. Renee Balaco/Charlie Zimmerman, Global Marketing. Becca Corrao/ of surface and underground equipment and Jim Gross, Americas North. Denise Encalada/Luis Ossandon, Americas South. technologies. Caterpillar is headquartered in Dan Wyatt/Sheri Lim, Asia Pacific.R obert Greiff/Martin Gill, Europe, Africa, Middle Peoria, Illinois, USA, and serves the mining East, India. Mary Wang, China. Matt Wahrenburg/Mike Unes, Global Accounts. industry through its Caterpillar Global Mining Kim Bailey, Product Marketing. Aaron Lowe, Large Track-Type Tractors. Alan organization, headquartered in Milwaukee, Pumklin, Loaders. Allison Macaione, Rope Shovels. Tony Donovan, Hydraulic Wisconsin, USA. Shovels & Draglines. Jackie Kauffold, Scrapers & Off-Highway Trucks. Roschelle McCoy, Technology. Wrenn Miles, Room & Pillar. Bill Shaner, Mining Trucks. Lou McDuffy, Drills. Egbert Janik/Joe Bontje, UG Hard Rock. Guido Schawohl, Longwall Systems. Barbara Cox, Public Affairs. Converse Marketing, Publisher. c Caterpillar Global Mining / Viewpoint / issue 10 table of contents

Scale studies help mining companies maximize payload, increase production 4

FORTESCUE METALS IMPLEMENTS NEW CATERPILLAR AUTONOMOUS MINING SOLUTION 2 CATERPILLAR advancing the use of Alternative fuels in mining applications 18

Russian coal mine continues to set production records 20

Cat dealer and customer strengthen relationship in rich coal basin Two mines. Two seams. one partnership . 8 mining for a better world 26 News from caterpillar 29

Caterpillar Global Mining / Viewpoint 1 FORTESCUE METALS IMPLEMENTS NEW CATERPILLAR AUTONOMOUS MINING SOLUTION

In less than a decade, Fortescue Metals 55 million tonnes (60 million tons) in 2012. Group firmly established itself as Current expansion plans are committed to one of the world’s leaders in iron ore increasing Fortescue’s production capacity to production — strategically achieving 155 million tonnes (170 million tons) per year. goal after goal in its development of the Many significant milestones have been achieved resource-rich Pilbara region of Western in Fortescue’s short history, including the Australia. establishment of Fortescue’s second mine site at Christmas Creek, which combined with Cloudbreak The recent opening of its Solomon project was the operations comprise the Chichester Hub, and the next step in completing a suite of iron ore mines recent opening of the Solomon Hub. Located 120 in the region that will help the company achieve kilometers (75 miles) west of the Chichester Hub, its annual target of mining 155 million tonnes Solomon comprises the Firetail mine and the Kings (160 million tons) of iron ore by March 2014. mine. More than 3 billion tonnes (3.3 billion tons) Technology and innovation have been key to the of resources have been identified at Solomon, company’s significant achievements — and the providing Fortescue with a long-term, low-cost company’s recent installation at its new Solomon production strategy. operations took innovation to the extreme with The USD$3.5 billion Solomon site has two ore an autonomous hauling solution developed in processing facilities, three crushing hubs, a power partnership with Caterpillar. station, its own airstrip and three camps to house 3,000 people. In 2012, Fortescue opened the Becoming a new force in iron ore 129-kilometer (80-mile) Solomon Railway, which Construction of Fortescue’s initial mine, rail and connects Solomon to Fortescue’s mainline to Herb port project began in early 2006. Just two years Elliott Port. The operation started loading at 16 later in early 2008, the rail and port infrastructure trains per month, increasing to 55 trains per month were completed and operations were under way at at full production. Cloudbreak, Fortescue’s flagship mine. Leveraging advanced technologies In the first full year of operations, Fortescue mined, railed and shipped more than 27 million tonnes For the last several years, Fortescue, Caterpillar, (30 million tons) of iron ore to customers in China. and Western Australia Cat® dealer WesTrac have The following year saw 40 million tonnes been working together to fully implement the Cat® (44 million tons) delivered and more than MineStar™ System in an effort to get the highest productivity and improve safety at the company’s new Solomon operations. The greenfield mine

2 Caterpillar Global Mining / Viewpoint / issue 10 brought together a skilled team from all of the of technology products at Solomon in order to organizations to deliver an efficient, cost-effective drive process efficiency, increase productivity and technology solution. enhance safety. The Solomon project is an excellent fit for our progression to the next level of technology Cat MineStar System is a broad suite of integrated and sustainable mining — with the ultimate goal of mine operations and mobile equipment delivering greater value for our customers.” management technologies, configurable to suit the needs of the operation. It consists of five The Solomon mine is the first project of its kind capability sets — Fleet, Terrain, Detect, Health for Caterpillar, using Cat MineStar System for both and Command — that use technology to help sites autonomous and manned machines on the project’s manage everything from fleet assignment and two mines. “The depth and breadth of the Cat condition monitoring to remote and autonomous precision technology, coupled with skilled control control. The system integrates a site’s products, personnel, is designed to enable the dual fleet to processes and people to deliver gains in productivity, work safely and efficiently and to reach production efficiency and safety. goals quickly,” says Hans Haefeli, Caterpillar vice president for the company’s advanced components Delivery, installation and support of the complete and systems division. technology suite was implemented for the first phase of Solomon — the 20-million-tonne Fortescue Chief Executive Officer Nev Power said (22-million-ton) per-year Firetail manned mine, in the implementation of a state-of-the-art mine control October 2012. Eight Command for hauling Cat 793F and management system at Solomon was consistent CMD trucks were commissioned and commenced with Fortescue's drive for greater productivity, lower operations in the second quarter of 2013 as part costs and a safe operating environment. It also helps of an autonomous mining solution for phase contribute to the company’s goal of providing new two — the 40-million-tonne (44-million-ton) per-year opportunities to local people with a variety of skill Kings mine. The mine plan calls for a progressive sets, says Power. ramp-up to 45 autonomous trucks over the next “Innovation and creativity led to Fortescue’s several years. discovery of Solomon in 2005 and we are In addition, the remaining Cat MineStar System maintaining that spirit of innovation with the capability sets are being utilized across the mobile implementation of Cat MineStar System,” he said. equipment fleet, including support equipment and “At full operations, Solomon will have a workforce light vehicles. of about 1,200 people. Autonomous haulage will provide a highly efficient, productive and safe Working closely with Fortescue and its mining environment that complements manned operations. contractor, Leighton Contractors, both Caterpillar It enhances safety through reduced interaction and WesTrac are providing a full solution for between heavy equipment and people in mining managing, operating and supporting Cat MineStar areas utilizing collision avoidance technology. System and Command for hauling. The industry timeframe for achieving an annual “Caterpillar is pleased to team with Fortescue production of 40 million tonnes (44 million tons) and Leighton Contractors for the operations of from a traditional mining development is 12 years; our autonomous mining solution,” says Chris Solomon expects to reach that capacity in just Curfman, president of the Caterpillar Global over three years, ahead of even the company’s Mining organization’s sales and support division. four-year target. π “Working with all the partners, we look forward to managing the entire Cat MineStar System suite With the exception of the safety of its people, nearly getting the maximum load in every cycle, it’s pretty every mining operation has one priority in these easy to see what that’s costing you. If you’re not challenging economic times: Lowering its operating carrying the rated load, you’re leaving money on costs. The more productively, efficiently and cost- the table. And depending on the commodity you’re effectively a mine can operate, the more profitable it hauling, that can be a significant loss. will become. “On the other hand, if you overload a truck, you can do structural damage, increase fuel Scale studies help burn, reduce component life, reduce tire life,” he continues. “So you’re taking the life out of the truck and its components and mining companies spending more.” maximize payload, Caterpillar uses a 10/10/20 policy — recommending that no more than 10 percent increase production of loads are over 110 percent of target payload and never exceed 120 percent. The mean of Continuous improvement is a must. Mining the payloads should not exceed the target payload. companies around the world are evaluating their operations, their equipment, their “It is a balancing act,” says Clifton. “These reasons maintenance practices and their operator make accurately measuring your payload vital. And performance — recognizing that even the slightest that’s what scales can do.” improvements can reap great benefits. Providing the right scales for the job A number of mines are beginning to recognize a The ability to work alongside customers, hand tool that can make a significant contribution to this in hand with Cat® dealers, is one of the reasons effort: Scales. Whether they are permanent fixtures Caterpillar formed its Global Mining Organization or temporary installations for a one-time study, nearly 15 years ago, recalls Clifton. In addition to scales help make it possible for mines to lower their serving as a single point of contact for Caterpillar’s costs in a number of ways. global mining customers, the organization also Scales can help mine sites: looks for ways to help customers better use their » Maximize payload and increase production Cat equipment.

» Validate onboard payload management systems “One of the ways we do that is by developing relationships with other companies and » Improve the return on investment for a truck fleet organizations that ultimately will benefit our » Increase operational efficiencies customers,” says Clifton. “For example, we partner with our customers who are members of the Earth » Reduce fuel usage and lessen carbon footprint Moving Equipment Safety Roundtable (EMESRT) » Decrease overall operating costs to find new ways to build safety into our products. We have an alliance with a company (Immersive » Reduce maintenance costs Technologies) that builds simulators to help train » Extend the lives of equipment, operators. And when it comes to scales, we work components and tires with Transcale.”

“While scales can have an impact in many areas, Since 2000, Caterpillar has worked with this mining what it really comes down to is maximizing scale technology leader, which has more than 20 payload,” says Kent Clifton, senior product/ years of experience and a presence in 25 countries application specialist in the Caterpillar Global worldwide. In 2010 the two companies signed a Mining organization. “You know your truck’s rated working alliance. payload. When you measure what you’re carrying, “Like Caterpillar — and many of our mining and think about what you’re missing if you’re not customers — Transcale is a global company,”

4 Caterpillar Global Mining / Viewpoint / issue 10 says Clifton. “It’s a good fit for our industry. Wherever we go, we have consistent tooling and processes and we have one source for questions and support.”

Ross Grayson, Transcale CEO, says the alliance encourages Caterpillar customers to make measuring payload a regular part of mine site operations. “Once a required change has been identified and executed, the biggest challenge to sustain productivity windfalls is to have the continued measurement and reporting mechanisms become part of the daily process,” says Grayson. “The alliance provides a platform that is being used to have our scale and volumetric measuring technologies become part of the daily regimes with mining companies. Initiatives such as real-time interfacing and reporting through the Cat MineStar™ System enable the end users to use Caterpillar’s Vital Information Management System (VIMS) and Truck Production Management System (TPMS) data for production measuring with confidence.”

Customers who want mobile or permanent installations can purchase scales directly from to have the necessary support equipment and Transcale or through their local Cat dealers that personnel scheduled.” also distribute Transcale products. In addition, Caterpillar owns several sets of scales that are The typical installation consists of two platforms, used by dealers and customers around the world each weighing one side of an axle. Approach paths to perform payload studies. Caterpillar also uses are constructed on either side, then compacted its scales to evaluate new products in development and made level with tops of platforms so no weight and to compare machines to those offered by its is transferred to or from the axle being weighed. competitors. Caterpillar recommends that scales are never buried in a pit or trench. Rain or poor drainage also can Performing scale studies impact the accuracy of scales.

The scales owned by Caterpillar Global Mining “If the platforms are correctly installed, the are used for continuous improvement projects on brakes can be released and the vehicle will not roll,” customer sites, such as conducting payload studies, says Clifton. validating on-board systems and determining the Once personnel are confident that the scales are exact target payload when a new truck is put into level, the next step is to make sure the load weight operation. A scale study is a comprehensive, measurements are consistent. To do this, a truck well-defined process. operator pulls the front tires on the scales, and then “When we do a study we must meet certain does the same with the back tires. Next, the truck criteria,” says Tony McGuire, a Caterpillar systems turns and follows the same process going in the application specialist. “We need to make sure we’ve opposite direction. selected a location in advance and prepared it for “These two weights must be within 1 percent of the scales. We also need to make sure we’re going each other,” says McGuire. “We look at all four corners. And we do this same check three to four and payload data. Indicator lights or digital displays times a day to make sure we’re staying accurate.” on the truck tell the loader operator when the truck is fully loaded. Data is reported through an on-board A well-executed scale study will weigh at least display or through VIMS. 50 percent of the trucks running on the site, says McGuire. These same trucks will be weighed Caterpillar has a defined process that should be 10 to 15 times each. followed to ensure the accuracy of TPMS, says McGuire. It must be validated and calibrated to “When we’re on site to perform a scale study, ensure the machine is actually carrying the amount we try to cause as little disruption as possible, the system is reporting has been loaded. pulling a truck for just a short time,” says Clifton. “Once the scales are properly installed, we can “We came in to help them work on TPMS accuracy,” weigh a truck in less than 90 seconds.” says McGuire. “Things weren’t matching up and they asked us to help. We put in a set of scales and Validating on-board systems performed a study, which revealed that the dealer While many of today’s machines have on-board and the mine were not properly adjusting struts. technologies that help sites This was to blame for inaccuracies in the TPMS manage the loading process, like data. VIMS and TPMS, it’s important “We took four trucks and re-did the strut to measure and calibrate these procedures, working with the dealer and the mine systems to ensure their accuracy. to ensure they understood the proper steps. Then That’s why Newmont Mining we tested again. The study proved that if you control Corporation brought Caterpillar the strut process, TPMS is right on target, within a and its local dealer, Mantrac range of 3 to 5 percent.” Ghana Ltd., to the Newmont When the TPMS was corrected, the site made an Ghana Gold Ltd. (NGGL) Ahafo unwelcome discovery: The accuracy of the system gold mine in Ghana, Africa, to previously had been only about 18 percent. “When identify and find ways to correct you figure that every truck in their fleet was using some ongoing problems. The TPMS, and the loading units were only accurately site relies on a fleet of 38 Cat filling them about 18 percent of the time, that could 785s to handle material haulage. 1 be a significant loss of revenue,” says McGuire. 2 Performing the scale study revealed the issues, and the dealer and the site learned the importance of properly maintaining the TPMS system. “Proper service, recalibration, proper load placement — all of these things took on a new importance,” says VolumE Positioning Fragmentation Density Carry back McGuire. “And now the system is 2 to 3 percent accurate.” “The site was struggling to identify the correct 1/ The Transcale Tare Weight payload based on inconsistent VIMS reports and Newmont continues to leverage information from Certification System measures the study, says Broadbent. “The payload study empty trucks to accurately unconfirmed truck empty weight, and they were determine the target payload. skeptical of the maximum gross weight,” says precisely identified every parameter and matched 2/ The Volumetric Scanning VIMS payload reports on trucks with accurately System uses 3D imaging Mantrac’s Andrew Broadbent. to calculate the volume of charged suspension systems to actual load values,” material McGuire, who helped perform the study at Ahafo, he says. “This has provided information enabling recalls that a number of issues were causing further studies to be deployed on body weight and concern to the operations team. “They weren’t body volume versus gross vehicle weight — both of confident that they were properly maintaining which will help to optimize the maximum tonnes payload despite leveraging the onboard TPMS,” he hauled without overloading.” The benefits of says. TPMS is a tool that tracks loads, cycle times

6 Caterpillar Global Mining / Viewpoint / issue 10 optimizing payload has led the site to order a set of Transcale’s Tare Weight Certification System, scales to be installed on site permanently. developed jointly with Caterpillar, is designed to accurately determine target payloads. Over time, “Thanks to the collaborative efforts of the site new truck body maintenance modifications will team — the dealer, NGGL and Caterpillar — we cause the Empty Vehicle Weight (EVW) to increase, were able to see the value in having the processes which in turn decreases target payload. This in place to ensure the accuracy of TPMS,” says Tim system can be used to determine target payload at Carr, maintenance manager. “The need to regularly commissioning as well as manage target payload validate TPMS justifies our decision to purchase during the truck life cycle. a site-owned set of scales, which will allow us to Choosing the ideal perform regular measurements. This will help to Calculating the volume of material site for a scales optimize payload and maximize production — which installation Once the target payload of a truck has been will have a positive impact on our bottom line.” Selecting the best location for determined, sites know how much the ore or the installation of scales on maintenance expenses overburden loaded in the truck can weigh. However, a mine site should consider 218 tonnes (240 tons) of coal looks a lot different several factors. Scale platforms While it’s essential to get the maximum payload should be placed where they will than the same weight of gold or copper. cause a minimum of interruption in every cycle, achieving the maximum life from to site operations. Usually, this equipment and components also can increase a “Transcale has an offering called volumetric will be where trucks can easily site’s profitability. Scales can help in this effort, too. scanning, which scans the material and calculates pull out of a haulage routine, weigh and be back into the cycle the volume along with weight,” says Clifton. “This in a very short time. “An overloaded haul truck not only helps sites select the proper truck body or size The logical location may be jeopardizes the truck,” says Clifton. shovel buckets. It doesn’t make sense to get a bucket alongside a haul road, at a fuel station, or at a dump or crusher. “It also cuts profitability. Excess that’s too large to fill. You want the right size bucket and truck body for the weight of the material you’re For some operations, the best payload puts frames and structures location is adjacent to a loading loading and hauling.” unit (shovel or wheel loader), under stress. Truck bodies, tires but may require moving scales and components can wear out The Volumetric Scanning System provides 3D when another loading unit is imaging to provide data on load positioning, observed and recorded. prematurely, risking failure and capacity, real-time material density and blast When possible a laser level is an ideal tool to use for a perfectly unplanned downtime.” fragmentation. level scale pad and approach ramp installation. Consider the Overloaded trucks are tough on site conditions, Installing permanent scales use of a skid steer loader to as well. They take a toll on haul road surfaces, prepare, construct and maintain Recognizing the value that scales can bring to their scale ramps for the duration of increasing site maintenance costs and reducing the study. the efficiency of the mobile fleet. operation, some sites go beyond scale studies and purchase systems that allow them to weigh trucks The ideal site should be: Determining the exact target payload as part of their normal operation. – As open as possible

Scales are also an important tool for determining Transcale systems can be purchased directly from – Level with good drainage the target payload for new truck fleets. Every truck Cat dealers, and can be serviced and supported by – Adjacent to haul road is rated for a specific weight and is not to exceed the dealer or by Transcale representatives. Customer Other considerations: that weight with the material load. However, sites and dealer personnel can achieve certification – Install on firm ground must take into consideration the weight that truck from Transcale to ensure proper installation and – Observe overhead power lines is carrying beyond ore or overburden. operation of the scale system. – Provide ample area for light “Tires, fuel, the fire suppression system, wheel “Anytime managing target payloads and vehicle parking chocks, extension ladders — even the operator and maintaining payloads on a daily basis is your goal, his lunchbox — all contribute to the maximum scale systems should be considered,” says Clifton. weight of that vehicle,” says Clifton. “What’s left is “The investment in a system will quickly pay for your target payload. You have to take all those things itself with greater machine life and a reduction in into consideration and scales can help you do that.” cost per tonne. The return on investment can be measured in months, not years.” π

Caterpillar Global Mining / Viewpoint 7 Armstrong Energy’s Lewis Creek mine is located in the heart of farm country in western Kentucky. The site is at the intersection of two coal seams, which allowed the surface operation to clear the way for an underground one to begin. Armstrong has a plan in place to ensure the land is arable again when mining operations are finished.

8 Caterpillar Global Mining / Viewpoint In the rural areas of western Kentucky, USA, it’s not uncommon to turn a corner on a rural road and see a mining truck crossing the street. The Ohio River Valley area is one of the densest coal-producing regions in the United States, and the landscape is dotted with mining operations of all types and sizes. The mines aren’t just above ground, either. Though they aren’t visible from the road, underground mining machines are hard at work beneath the region’s rolling hills. All told, the basin accounts for as much as 8 percent of the country’s annual coal production, with mines in Kentucky, Indiana and Southern Illinois producing nearly 91 million tonnes (100 million tons) annually.

Many companies operate in the Illinois basin, gathering coal, petroleum and other resources from the region. Some operate on the surface, some underground, and others manage multiple sites in the basin. Armstrong Energy, founded in 2006 for the express purpose of gathering coal in the Illinois Basin, operates six mines above ground and six below, as well as three plants that prepare coal for sale.

Armstrong Coal

Cat® dealer and customer strengthen relationship in rich coal basin Armstrong currently controls more than 270 “There are many advantages in million tonnes (300 million tons) of proven and having a surface and underground probable coal reserves in western Kentucky. The coal Armstrong produces is shipped by barge, rail and mine operating in close proximity truck to regional utilities, as well as the coal-hungry to each other,” says Kenny Allen, Asian market. Armstrong executive vice president

Mining a rich coal seam of operations. “There is a lot of equipment and infrastructure In 2010, Armstrong began operations at Lewis Creek with a single Bucyrus-Erie 770B dragline, that can be shared between the two the only one of its size in the United States. mines, which can save us a lot of Originally built in 1954, the machine was rebuilt time and money in the long run.” before it began operation at Lewis Creek (prior to The existing haul roads provide access to Caterpillar’s acquisition of Bucyrus International). the underground site, which simplifies delivery The dragline began removing overburden to allow a of equipment and transportation of personnel. full fleet of surface mining equipment access to the rich No. 13 Kentucky coal seam, and continues to Both mines also send coal to the Midway remove overburden on site today. preparation plant, which can process up to 1089 tonnes (1,200 tons) per hour of heavy or medium Since then, the Lewis Creek surface mine has grown coal, and has all the infrastructure and facilities to a full-fledged dragline operation that produces needed to load processed coal directly onto trains for between 82 000 and 127 000 tonnes (90,000 and distribution. 140,000 tons) per month, with more than 725 000 tonnes (800,000 tons) produced in 2012 alone. The “Having both sites operating simultaneously has mine is projected to continue operation at that pace allowed us to meet a wider range of customer through 2022 or 2023. However, producing coal needs,” says Allen. from the surface operation was not the only goal. Leveraging a long-term relationship Beneath the No. 13 seam, under more than 30 meters (100 feet) of additional overburden, lies Equipment and infrastructure aren’t the only another coal seam. Western Kentucky No. 9 is the things shared by the surface and underground most heavily mined underground coal seam in the Lewis Creek sites. Both operations also benefit region, and Armstrong has access to nearly 5.4 from a longstanding partnership with the territory’s ® million tonnes (6 million tons) of coal at the Lewis Cat dealer, Whayne Supply. Creek location. “We have been working with Whayne since 2007, Armstrong’s coal is prepared locally and shipped by train and they’ve always been very good to work with,” and by barge all over the The underground mine began operation in early says Allen. “We have a lot of trust in their support Midwest—and the rest of 2013, and is currently producing at a rate of roughly the world. 815 000 tonnes (900,000 tons) per year. Using the staff and parts distribution.” room and pillar method, the mine is currently With offices all over western Kentucky, Whayne expected to produce for about five years. Supply has been providing equipment and While an underground mine would typically begin maintenance to Armstrong almost as long as production when a surface mine has finished Armstrong has existed. In addition to a number operation, Armstrong always planned to begin of pieces of surface mining equipment, including mining underground as soon as the overburden trucks, wheel loaders, motor graders and dozers, had been cleared. Whayne also provides ongoing service and support for Armstrong’s rebuilt Bucyrus-Erie dragline. The dealer provides rental equipment to meet specific short-term needs.

10 Caterpillar Global Mining / Viewpoint / issue 10 1 1

2

1/ A belt system, driven by a Cat® Belt Terminal Group, is constantly carrying coal up to the surface to be shipped to Armstrong’s processing plant.

2/ The operator's station helps keep face hauler operators safe and productive as they haul coal from the face to the feeder breaker.

3/ A Cat Roof Bolter follows the operation forward and installs steel rods in the mine’s ceiling, helping prevent collapses to make the mine safer and more stable.

3 right: Originally built in 1954, this Bucyrus-Erie 770B dragline was rebuilt before it began operation at Lewis Creek. The machine Cat machines make up the bulk of the production helped access the seam machines on the Lewis Creek surface site. Track- before production began, and continues to remove type tractors in a variety of sizes are used for overburden on site today. removing overburden, including a D6R, D9T, two below: Jeff Coomes of D10Ts and a D11T. A 992G Wheel Loader also Whayne has played a crucial part in developing shares in overburden removal duties. the relationship between Armstrong and the Whayne has made a significant investment dealership. in supporting Armstrong and its fleet of Cat equipment, with staff and facilities in the area dedicated solely to Armstrong.

Whayne delivered the first fleet of 25 machines to Armstrong’s sites before the company had even received all necessary permits — which meant every machine was ready to go on day one of open mining.

Steve Ingram, an account manager with Whayne Supply, says this initial support set the tone for a long and successful relationship, which includes the purchase of additional equipment as well as ongoing support.

Armstrong currently has 70 machines covered by Maintenance and Repair Contracts (MARCs), with scheduled preventive maintenance and machine rebuilds to help keep availability high.

In return, Armstrong helps Caterpillar and Whayne with product testing. The company participated in a field follow program for the D9T Track-Type Tractor and then purchased the machine in 2012. Armstrong also participated in a Tier 4 Final field follow in July 2013.

“We may have as many as 20 technicians working for Armstrong at a time depending on their needs,” Ingram says. “They rely on their Cat equipment to keep their operations running, and we’re committed to making sure they get the performance and reliability they expect.”

Even the dragline, which was made by Bucyrus-Erie well before Caterpillar acquired the company in 2011, falls under Whayne’s commitment to fast and reliable service.

“Earlier this year, Armstrong placed an order for new rails and rollers for their 770B dragline,” says Jeff Coomes, product support account representative with Whayne Supply. “With machines of that size and age, parts are made as

12 Caterpillar Global Mining / Viewpoint / issue 10 Caterpillar Global Mining / Viewpoint 13 ordered, so we had projected a wait of nearly 26 weeks for the new parts.”

Unfortunately, the old rails and rollers failed and the dragline had to be derated until the new ones arrived. With production stalled due to the dragline’s failure, Whayne stepped in to help expedite the order at the factory. The new parts were delivered four weeks early, allowing Armstrong to get back to work sooner than anticipated.

Taking the relationship underground

The relationship that Armstrong has with the Cat dealer was an important consideration when the time came to start Lewis Creek’s underground operations, even more so since the company joined its sister company Walker Machinery to form Whayne-Walker Underground Mining. The new organization was created to sell and support the new Cat products acquired from Bucyrus.

“They called us shortly after we acquired the new underground equipment and were interested in looking into Caterpillar as a supplier,” said Jack Nolen, an account manager for Whayne-Walker Underground, who had worked with Armstrong on other mines.

While Caterpillar could be considered a newcomer to the underground coal market, Allen says the strong relationship with Whayne gave his company

The new Cat underground the confidence to invest in Cat equipment. mining equipment at Lewis Creek is the first fleet of its “We were concerned about it being a new line kind in the world. The fleet includes continuous miners, of equipment, obviously,” he says. “But once we face haulers, scoops, feeder realized we’d be working directly with Whayne we breakers and roof bolters. A Cat Belt Terminal Group hauls the decided that it was worth looking into.” coal to the surface. Taking delivery of a complete fleet

In the fall of 2012, Lewis Creek took delivery of the world’s first full fleet of Cat Room and Pillar mining equipment.

All told, Armstrong purchased two complete sections of equipment. Lewis Creek currently runs four CM235 Continuous Miners, eight FH110 battery-powered Face Haulers, four RB220 Roof Bolters, two FB110 Feeder Breakers, five battery- powered SU488L Scoops and one SU488D Diesel Scoop. Armstrong also purchased five Cat Belt Terminal Groups for the underground conveyor system that carries coal to the surface.

14 Caterpillar Global Mining / Viewpoint / issue 10 In addition to the equipment itself, Whayne-Walker Underground provides the responsive support that Armstrong has come to rely on for its surface equipment. “We have one on-site service rep at the mine every day, and we usually have another person or two staying closely tuned to the health of the equipment as well,” says Nolen. “They work closely with the mine and other Whayne personnel to get issues resolved quickly, and because of that our availability has been excellent.” Nolen believes the strong relationship has helped both the dealership and customer manage the learning process and ensure success of the first Cat room and pillar fleets.

“This has been an evolving process since day one, and both we and Armstrong are learning more and more every day. Our success to this point has been the result of a strong core of local people on both sides who have gone above and beyond the call of duty to ensure success ­— for us and our customer,” says Nolen.

In addition to dedicated personnel both at Lewis Creek and in its offices, Whayne-Walker Underground has established an on-site consignment parts store at Lewis Creek. This allows Armstrong to have commonly used or vital parts close at hand. Since all but the most critical maintenance tasks are done underground, ready availability of parts can be the difference between a quick restart and a costly stretch of downtime.

Preventive maintenance plans are in place, as well as scheduled rebuilds of some machines, to maximize performance and decrease Armstrong’s Whayne’s parts distribution network includes a fleet of total cost of ownership. mobile on-site parts storage trailers that can be packed According to Nolen, the existing relationship also up to follow the progress of the mine for quick and easy simplified the logistics involved in beginning the delivery. new operation.

“Our parts fulfillment structure is already in place, and we already make deliveries out there. It saved us a lot of time setting up that network, and that in turn put Armstrong in a better position to succeed,” he says.

Caterpillar Global Mining / Viewpoint 15 With clear channels of communication and a long In addition to efforts to reclaim the land it operates, history, these two organizations have successfully Armstrong works hard to protect the air quality added a new dimension to a successful existing of the region. The company makes it a priority to relationship. purchase machines that are designed to reduce emissions as much as possible, and has “We have a great long-term working participated in test projects of equipment that will meet the next generation of relationship with Whayne,” says emissions standards. Rick Craig, Armstrong’s vice president of operations. Being a good neighbor » “When we have issues we can bring At the same time it works to minimize its them to Whayne, and when they have impact on the environment, Armstrong issues they can bring them to us. focuses on increasing the positive impact it It’s a partnership between us, and has on the communities where it operates. For example, the Lewis Creek mines are that’s the way it’s supposed to work.” in Ohio County, an area that previously experienced very high unemployment Managing the impact rates. Since the mines began operation, unemployment has been reduced, thanks in part to The two companies also share a focus on 177 workers employed on site, as well as the local sustainability ­— recognizing the impact machines businesses and industries that support the mine and mining operations have on environments and and its employees. communities. Whayne Supply and Whayne-Walker Underground Armstrong is in the process of removing also focus on providing employment opportunities. overburden and coal at sites throughout Kentucky. For example, the dealer sponsors area students At Lewis Creek, above-ground reclamation is a daily participating in Caterpillar’s ThinkBIG dealer process. Once the underground site has finished technician training program, and funds a extracting coal, that area will be reclaimed as well. scholarship program for local residents. “We have a strict policy on reclamation: Leave it Both Armstrong and the dealer are active better than it was before,” says John Bruce, general community members ­— donating time, leadership superintendent for surface operations. “We want to and funding to local organizations and charities. return the land to its original state.”

This policy includes returning the land to its “Armstrong has received a lot of approximate original contour by moving earth and support from the state of Kentucky rebuilding hills. It also includes re-digging any and the people who live in the streams, brooks or gullies that helped to naturally communities where we work,” said irrigate the land before Armstrong arrived. Allen. “We owe it to them to help “We want to make sure this land is capable of improve the area in any way we can, sustaining the natural ecosystem that was here so that we can all enjoy this beautiful before we were,” says Allen. “We have a duty to the land for many years to come.” π people who’ve trusted us with it. We want to make sure we plant only native species, so we don’t upset the balance of the area. And we make sure all our reclamation efforts are sturdy enough to withstand a hundred-year storm, so they don’t collapse the first time the weather gets bad.” Armstrong is committed to finding ways to leave the community better than it was before mining operations began — providing jobs to local workers and returning mined land to its natural state.

below: John Bruce oversees daily efforts to reduce Armstrong’s impact on the environment in western Kentucky.

CaterpillarCat Global Mining / Viewpoint 17 CATERPILLAR advancing THE use of ALTERNATIVE FUELs in mining applications Liquefied natural gas is abundant and environmentally friendly

As the industry has developed more economical and The second engine under development is a High efficient methods for its recovery, natural gas has Pressure Direct Injection (HPDI) engine, which emerged as a cheap, environmentally friendly and is targeted to the largest Cat® Mining Trucks. abundant alternative to diesel and other fuels HPDI injects natural gas directly into the engine, in applications across a number of industries. using only a small amount of diesel as an ignition New methods make it possible to access reserves source. Engine test cell evaluations show the HPDI that were previously either impossible or technology is capable of providing greater than 90 uneconomical to recover, further driving the rise percent diesel substitution and lower greenhouse in the use of natural gas. Though the technology gas emissions — while operating at diesel equivalent behind the large-scale collection, distribution and performance. use of natural gas is in its infancy, there is high Caterpillar anticipates that, for many parts of the demand for advancement in the field. world, this will provide significant fuel savings Industries that demand high-horsepower engine based on the price differential between natural gas applications, such as mining, rail, marine and and diesel, as well as contribute to more sustainable power generation, are especially interested in this mining operations. economically and environmentally viable fuel. The primary goal of the large mining truck For some mining operations, fuel costs alone can LNG projects is to provide the economic and account for as much as 40 percent of total operating environmental benefits of LNG without sacrificing expenses. Many mining operations stand to save a the performance and reliability Caterpillar significant amount of money with the creation of customers have come to expect from these the technology and infrastructure necessary to fully machines. harness the potential of liquefied natural gas (LNG). “Natural gas is a clean-burning, economical fuel Adapting machine engines that is readily available to the majority of our Caterpillar is developing several technologies mining customers worldwide,” says Chris Curfman, that will allow the use of LNG-fueled engines in a president of mining sales and support number of applications. for Caterpillar’s Global Mining organization. “LNG-powered products promise to reduce our The first is a Dynamic Gas Blending (DGB) engine, customers’ fuel costs. We look forward to being which mixes natural gas with air and combines with able to offer this option to the global mining diesel for combustion. This engine is expected to community.” achieve diesel replacement of around 60 percent with comparable performance to a pure-diesel Pioneering rail solutions engine. DGB allows customers to utilize diesel Caterpillar is also pioneering new LNG-based or a combination of diesel and natural gas. This solutions in other industries. Through its rail flexibility offers benefits to customers in areas subsidiaries Electro-Motive Diesel (EMD) and where natural gas supply is not yet reliable. Progress Rail, Caterpillar is developing both DGB and HPDI engines for rail applications. Rail users

18 Caterpillar Global Mining / Viewpoint / issue 10 stand to save a significant amount of money with even a moderate decrease in fuel supply costs.

Billy Ainsworth, CEO of Electro-Motive Diesel, said that EMD is proud to be part of Caterpillar’s efforts to offer alternative fuel to its customers. “We’re not sitting idly,” he says. “We see it as a reality.”

According to Ainsworth, Caterpillar is listening closely to customers to deliver the results they demand with their need for fuel efficiency and reduced emissions. The company works closely with industry partners not only to develop technology to use LNG in its machines, but also to build the infrastructure the world needs to make full use of the fuel.

Partnering in development

In order to help make its LNG projects a reality, Caterpillar has partnered with Westport Innovations, Inc. Westport has led the industry in the development of natural-gas-fired engines for vehicles of every size and application.

The agreement between Caterpillar and Westport is focused on engines for mining trucks and locomotives, and leverages the expertise and experience that Westport has gained through its existing natural gas technologies.

“This is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries,” says David Demers, CEO of Westport Innovations. “The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance. There is also a clear environmental incentive because of the reduced carbon emissions.”

Mining isn’t the only industry taking advantage of natural gas opportunities. Caterpillar sells natural gas powered gen sets of up to 10 megawatts that are being supplied to a Mid-Kansas Electric company within the next year. These gen sets will run on 12 natural- gas-fired Cat generator sets.

The oil and gas group has already shipped four DGB kits to companies in Russia and the United States. Two generators in Arkansas, USA, helped provide the power to drill eight wells in 45 days and is estimated to have saved more than USD$100,000 in fuel costs over that time.

Caterpillar has also delivered two dual-fuel engines for marine use, and is scheduled to ship marine gas generator sets before the end of 2013. This graphic follows LNG through the entire life cycle — from collection and distribution to blending with diesel, and then on “Our customers want this to be a reality, and we want to bring it to its application in various industries — illustrating the potential performance equivalence, cost savings and environmental to them,” Ainsworth says. “We’re all in.” π benefits that can be gained by using LNG.

Caterpillar Global Mining / Viewpoint 19 Sagan-Nur

RUSSIAN COAL MINE CONTINUES to set PRODUCTION RECORDS Credit given to skilled team and new high-performance machines

20 Caterpillar Global Mining / Viewpoint / issue 10 On Jan. 12, 2013, Russia’s Tugnuysky coal mine delivered its 100 millionth tonne (111 millionth ton) of coal — adding another chapter to the history of this nearly 30-year-old site and setting yet another record for the Russian coal mining industry. Owned by the largest hard-coal mining company in Russia, the Tugnuysky mine is equipped with high-performance machines and takes advantage of the latest mining technologies. It’s no surprise that world In April 2012, drilling and stripping records were set here Yury Yegorov’s team in 2012. completed 41 806 linear The coal mine and the mining town of Sagan- meters (137,150 linear Nur were founded in 1984 in the area called feet) of drilling. Olon-Shibir, which is located on the border In May 2012, a team between Buryatia and Chita region. Officially, the Tugnuysky coal mine was created on Jan. operating a Bucyrus 1, 1989, by Order No. 75 issued by the USSR No.1 495 HD shovel Ministry of Coal Industry on Jan. 24, 1989. loaded 1.7 million cubic meters (2.2 Today, Open Joint Stock Corporation (OJCS) Tugnuysky mine is the most promising million cubic yards) coal producer within Siberian Coal Energy of overburden to be Company (SUEK). Tugnuysky mine was transported by the merged into OJSC SUEK in 2001. Since then, haul truck fleet. the coal mine had been highly modernized, In September 2012, which made it possible to improve efficiency this team set a new and increase output from 5.3 million tonnes (5.8 million tons) to 12.5 million tonnes record by loading (13.8 million tons) of coal per year. 2.005 cubic meters (2.62 million cubic Setting records yards) of overburden. In addition to this year’s record-setting In May 2013, the production figures, the Tugnuysky coal mine team broke its own can claim several other achievements that not record by loading only set the standard for Russia but that are recognized world-wide. 2.011 cubic meters (2.63 million cubic “These record-setting achievements give yards) of overburden. the team at Tugnuysky mine a sense of joy and pride,” says Valeriy Kuletskiy, executive director. “They’re not just numbers; they’re world and Russian coal mining industry records.”

Caterpillar Global Mining / Viewpoint 21 Remembering the past Just two years later, in March 2011, the Tugnuysky coal mine set a record by delivering 1.017 million The coal-bearing capacity of Cisbaikalia and tonnes (1.1 million tons) of coal in one month. Transbaikalia, the region where Tugnuysky Six months later in August 2011, miners reached is located, was first studied at the time of the a new milestone by delivering 1.5 million tonnes construction of the Trans-Siberian Railway. In 1926, (1.7 million tons) of coal. On Dec. 19, 2011, the the first geological survey of the Tugnuy river valley Tugnuysky coal mine reached a new performance was completed. Further exploration work showed level, having produced 10 million tonnes (11 million that the Olon-Shibirskoye and Nikolskoye deposits tons) in the preceeding 12 months. are rich with resources.

It wasn’t until decades later, in February 1981, Producing black gold when the Minister of Coal issued an order to The Tugnuysky coal mine uses the open-pit construct the Tugnuysky coal mine. In 1984, in the mining method to develop the Olon-Shibirskoye vast expanses of the former Soviet Union, in the coal deposit. This deposit is located in Petrovsk- area of Olon-Shibir, the first stake was driven into Zabaykalsky rayon (county) and Mukhorshibirsky the ground where the Tugnuysky coal mine and rayon of the Republic of Buryatia. The deposit is the mining town bearing the name of Sagan-Nur rich with high grade thermal coal. (White Lake) would later appear. An estimated 111 million tonnes (122 million tons) The coal mine was put into operation in 1988, of coal are recoverable from this deposit. According when the first overburden was removed and the to Denis Popov, the company’s chief technologist, first tonnes of coal were transported to a storage 12 million tonnes (13 million tons) of coal are yard. In 1992, the mine constructed an emergency expected to be mined per year until 2019. The repair shop, machinery repair shop, fuel and grease following output decline would be due to the warehouse, basic explosive warehouse, and an thinning of the primary coal bed. The company administration building. Also that year, the mine is addressing this future decline by developing commissioned a start-up facility with a capacity of the nearby Nikolskoye deposit while gradually 1 million tonnes (1.1 million tons) of coal per year. redistributing the coal production from the Olon- In 1996, the coal mine reached the capacity of 3.8 Shibirskoye deposit to the Nikolskoye deposit. million tonnes (4.2 million tons) per year. The total coal output is 12 million tonnes In 2001, the mine delivered its 30 millionth (13 million tons) per year, which will be enough tonne (33 millionth ton) of coal. In the same year until 2060, considering the depletion of both the Tugnuysky coal mine merged into Siberian deposits. The Nikolskoye deposit is similar to Coal Energy Company (SUEK), which is when the Olon-Shibirskoye deposit and is one of the modernization began and powerful new machines largest coal deposits in Buryatia. The total reserves went to work on the site. recoverable from the Nikolskoye deposit are estimated at 260 million tonnes (287 million tons) For example, in 2009 the coal mine was equipped of coal. with 220-tonne (243-ton) mining trucks and a coal preparation plant was During the recent ramp-up of output at the put into service. A year Tugnuysky mine, the company also built a new coal later, the mine began preparation plant, where the most advanced and operating two Bucyrus efficient coal conversion technologies are now used. 495HD Electric Rope The coal concentrate, which is the product of the Shovels with 41.3-cubic- conversion process, is in full compliance with meter (54-cubic-yard) export standards. buckets, as well as new OAO Razrez Tugnuysky is one of Russia’s key support equipment and exporters of coal, with Asian and Oceanic countries, a drill. predominantly South Korea, Taiwan and Japan, considered to be the major buyers. In the last year, In 2011, the coal mine was equipped with an the Tugnuysky coal mine exported 8.7 million oily waste recycling installation and a household tonnes (9.6 million tons) of coal, strengthening wastewater sterilizing system. A waste treatment its position as one of the leading export-oriented facility project, ordered by SUEK in Germany, was companies within SUEK. recently initiated. Waste treatment facilities are being built on the above-ground premises of the Focusing on safety company. These facilities will be utilized to purify Providing healthy and safe working conditions rain and wastewater using the most advanced for employees has always been a priority for OAO water treatment technologies. Razrez Tugnuysky. SUEK has implemented a safety Caring for people management system with people as its core value. The employees of SUEK are constantly trained in While SUEK is constantly looking for new ways safe working methods. The training facility and to increase its coal output, the people who work at work sites are equipped with monitors playing Tugnuysky are the company’s top priority. From safety and work-related instruction videos. These ensuring they have access to the safest and most videos are shown during every shift, and activities advanced equipment, to offering an affordable lunch are continually monitored. Medical check-ups are at the canteen, the company recognizes that people provided both before and after shifts, and SUEK are its greatest asset. has purchased state-of-the-art medical equipment “We built new shower rooms and a laundry facility to help detect and treat medical conditions. so the workers can take a shower and have their “Without health and safety protection, clothes washed after their shifts,” says Popov. it would be impossible for the “And this is just a little everyday care provided for company to evolve and achieve the workers. The philosophy of any strong company comes down to this: respect yourself, your business, the success it has enjoyed over and your team.” the years,” says Kuletskiy. As the mine continues to be re-equipped with new Protecting the environment state-of-the-art, highly complex machines, SUEK recognizes that it must invest in its people to ensure The Tugnuysky coal mine strives to be a responsible there are skilled professionals who can work with user of mineral resources. “Environmental them. To strengthen the corporate culture and protection is an important aspect of the mine’s help employees realize their professional potential, operations,” says Popov. “After all, open pit coal SUEK created a corporate university, which offers mining involves transporting large quantities of courses in developing management skills. After rocks and coal, which can result in damage to the training and testing, the best students join the landscape and the ecology of the area.” company’s talent pool. Various workshops are The Tugnuysky coal mine designed a project using routinely offered to managers, deputies and key the optimal technology to return rock waste disposal employees. The Tugnuysky coal mine provides areas to the ecosystem, restoring damaged ground training courses in directorship, site supervision, for agricultural and aquicultural use. In 2012, and locomotive operation. the company completed the mining stage of soil The coal mine has its own training center, aimed remediation and covered 35 hectares (86.5 acres) at fostering the growth of local professionals. with a fertile layer of original topsoil, and this year Training is provided with regard to the mining 30 hectares (74 acres) were covered. The company development plan, understanding new machines plans to increase the area being restored up to and technologies, meeting the needs of workshops 50 hectares (123.6 acres) per year. and sites for skills development, and helping The mine also must comply with a number of individuals gain new skills or be retrained. emissions and other environmental regulations.

Caterpillar Global Mining / Viewpoint 23 “This management policy has helped to increase excellent,” says Popov. “When we compare the the value of each employee and make the coal mine new machines and the machines that have been safer by bringing the quality of workplace relations used at the Tugnuysky coal mine for more than to the next level,” says Kuletskiy. 10 years, we are able to see a giant step forward in improving operation, performance, and ease Investing in infrastructure of maintenance — and, in most cases, reducing The equipment used at Tugnuysky plays a key role operational costs.” in the productivity achievements at the mine. In the Ensuring proper maintenance last several years, SUEK implemented a range of initiatives designed to strengthen the infrastructure Tugnuysky recognizes that the most effective use of of the mine and increase its capacity. any piece of equipment, let alone heavy machinery, is based on three factors: The mine went through a technological revolution, with SUEK investing about usd$250 million in • Mining equipment must comply with the the mine over the past several years. Nearly every conditions in which it is used. mining process has been improved. For instance, • Equipment must be operated and serviced by overburden is removed by Bucyrus 495HD Electric qualified and technically competent personnel. Rope Shovels. With just one shovel, the miners are able to remove as much overburden per quarter • All maintenance and repair schedules must be as they did in the whole year of 1995 using all accurately followed at all times. their machines. A similar comparison can be Three service organizations have opened made for nearly every machine or device being maintenance facilities on site at the mine, including used at the mine. Cat dealer Vostochnaya Technica. The facility is In the last year, the company has received several equipped with all necessary equipment and staffed new Cat® 24M Motor Graders with powerful diesel with top-level maintenance professionals. engines; spacious, quiet cabins; and easy-to-operate “Working closely with such companies as control levers. At Tugnuysky, motor graders are Vostochnaya Technica helps the mine operate in used to build roads in the complex geological the optimal way and reduces downtime, which can conditions found at the site. affect our productivity,” says Kuletskiy. “Highly “Since the 24M graders have arrived, the haul roads qualified technicians are able to diagnose any issues at Tugnuysky mine are absolutely world class,” using the tools they bring to the site, usually within says John Bergin, mining director at Cat dealer Vostochnaya Technica.

Since July 2013, the coal mine has received additional next generation Cat machines: Cat 988H Wheel Loaders, a Cat 434F Backhoe Loader, and a Cat 621H Wheel Tractor-Scraper. These machines are equipped with a number of advanced features, such as automatic lubrication systems and rear view cameras. The site has found that the machines deliver excellent controllability and high reliability, impressive load capacity, high fuel efficiency, ease of maintenance, and more comfortable work environments that improve operator performance and reduce costs.

“Even in the most difficult environment, the performance indicators of these machines are

24 Caterpillar Global Mining / Viewpoint / issue 10 30 minutes after being called.” If it is impossible for Looking ahead a technician to diagnose an issue using his/her own For the Tugnuysky coal mine, 2011 was a resources on site, he/she contacts the service center. breakthrough year, 2012 was a year of building on While SUEK performs about half of the required success, and 2013 a year of moving forward. maintenance on Cat machines at Tugnuysky, the The Tugnuysky coal mine is developing quickly. mine relies heavily on Vostochnaya Technica’s Its mining operations have become large-scale. expertise for complex maintenance and repairs. The annual run-of-mine output of the coal mine is For example, the mine develops routine and annual 85 million cubic meters (111 million cubic yards). repair schedules together with the dealership. This means removing and transporting more than The dealer supplies original parts and consumables 180 million tonnes (198 million tons) of run-of-mine required to reduce equipment downtime, improve material per year. Today, the coal preparation plant the quality of service and increase availability. processes more than 10 million tonnes (11 million The Cat dealer also communicates directly with tons) of coal. The coal mine is developing its own Caterpillar when necessary for more detailed rail infrastructure, with 80 kilometers (50 miles) information on spare parts and assemblies. of railway built to date.

“Machines work well only if they are As for further growth, the company started to serviced properly,” says Kuletskiy. develop the Nikolskoye deposit in 2013. The “Special processes are used in order reserves recoverable from the Nikolskoye deposit are to determine if any machines have estimated at about 260 million tonnes (286 million to be serviced out of schedule. tons) of coal. The first 250,000 tonnes (276,000 tons) are planned to be delivered as early as 2013. It is not And if we work together as a team, improbable that a new state-of-the-art coal mine will the machines never let us down.” be built here. This means new industrial records Kuletskiy continues: “Especially when it comes to can be set in the very near future. the shovels, the mine tracks every single minute of “World demand for coal is significant and is time and ensures that maintenance is done during expected to remain so,” says Kuletskiy. “The Tugnuy shift changes and at other opportunities to avoid lost miners have great prospects, and this means our production time.” people feel confident about the future.” π Arch Coal Takes “Our cooperative partnership with Freeport- for carbon reduction, as well as examples of McMoRan is helping to ensure that open initiatives that have worked in the past. lands, clean water and space for all life is an Top Honors The other tool is an Emissions Simulator, in Safety Competition attainable goal for future generations,” said which allows various areas of the company to Kathy Davis of the National Park Service when The Sufco mine in Salina, Utah, USA, operated simulate emissions. It also allows Vale to test she presented a plaque to the company. by Arch Coal. Inc. subsidiary Canyon Fuel potential reduction solutions, resulting in more Company, took first place at the Four Corners efficient implementation. Both initiatives were Mine Rescue Competition in Farmington, New launched on Brazil’s National Climate Change Leighton Contractors Mexico, in April 2013. Representatives from Awareness Day 2013. other Arch Coal mines took fourth, eighth Recognized at Indigenous and tenth places, as well. The competition Business Awards requires teams to deal with simulated mine-site Leighton Contractors was honored as the Corporate Member of the Year at the 2013 disasters to rescue survivors, using skills like mapping, organization and teamwork, as well Supply Nation Connect awards in Melbourne, as general mine rescue principles. Australia. These awards are given to companies, governments and individuals who Alcoa Uses “What an outstanding performance for Sufco’s contribute in an important way to the growth of emergency responders,” said Ken May, Sufco’s indigenous business. Craig Laslett, managing Wetlands general manager. “When we train and compete, director of Leighton Contractors, said that the to Save Water and Money we’re continuously improving our skills and company is very proud of its commitment to Alcoa recently took part in a project in furthering safety as a core value.” During 2012, growth among indigenous communities. conjunction with the Saudi Arabian Mining Sufco’s employees also achieved a Perfect Zero, Company (Ma’aden) to engineer wetlands that logging 750,000 employee-hours without a “Our organization-wide focus on strong act both as a purification measure and natural reportable safety incident or environmental leadership and advocacy for Aboriginal and habitat in Saudi Arabia. violation. Torres Strait people and their communities starts from the top with my personal At Ma’aden’s desert location, water commitment to enhancing the lives and preservation is even more crucial than opportunities for indigenous Australians,” usual, especially in the water-intensive said Laslett. aluminum mining industry. Traditional mechanical methods of water purification Leighton Contractors doubled its spending require significant human intervention and with Supply Nation businesses in 2012 and, sophisticated controls, as well as significant according to Laslett, hoped to double that cost. Alcoa and Ma’aden instead turned to amount again in 2013. nature to find a cost-effective, environmentally “At Leighton Contractors we believe we have friendly way to purify water while also enriching Freeport-McMoRan both a responsibility and opportunity to the area around the mine. Recognized for Cultural contribute to the growth and advancement Initially built and tested at an Alcoa facility in of indigenous people and communities,” Preservation Pittsburgh, Pennsylvania, USA, the Ma’aden said Laslett. “We are proud to say we are now Freeport-McMoRan was recognized by the wetlands are composed of common, native educating other corporations and employers on National Park Service for its long-term support grass species and act as a natural biofilter how to best implement their own indigenous in helping to preserve the Tuzigoot National for sanitary and industrial wastewater. The community and business development Monument in Arizona, USA, during the site’s natural vegetation stimulates the growth programs.” 75th anniversary celebration. Tuzigoot is a of microorganisms and facilitates natural pueblo village built by the Sinagua people, Vale Adopts New Tools chemical processes to remove nitrogen, who lived there until around 1400 A.D. metals and other impurities from the water. The site continues to serve as a center for to Reduce The wetlands are already attracting wildlife archaeological investigation and has produced Greenhouse Gases to the area, and could potentially serve as an many notable artifacts preserving the history Vale adopted two new tools to help all of important habitat for migratory birds. and culture of the Sinagua. Freeport McMoRan its operations understand and meet the The wetlands were built six months faster than has a long history of working with the National company’s Carbon Target. The first tool is a a traditional tank system and are estimated to Park Service, and has been involved with the Guide to Identifying Opportunities to Reduce have saved 907 tonnes (1,000 tons) of steel. Tuzigoot area since one of its legacy companies Greenhouse Gases, a comprehensive look at The system also reduces Ma’aden’s water first opened the site to archaeological different ways for an operation to eliminate or demand by 7.5 million liters (2 million gallons) excavation. The company has also been part of reduce sources of carbon emission. Vale’s goal of water every day. The system is already being multiple reclamation and vegetation projects to is to reduce its 2020 forecast for greenhouse considered for other mining and industrial preserve and improve the area. gases by 5 percent, and this guide is a crucial applications throughout Saudi Arabia. part of that initiative. It provides guidelines for all business areas and potential solutions

26 Caterpillar Global Mining / Viewpoint / issue 10 Newmont Helps Develop every stage of development, from start-ups to a New Generation established companies. of Problem-Solvers According to Alexey Egorov, Deputy General Newmont Mining Corporation helped Director of Severstal, the UDA in Cherepovets train tomorrow’s mining industry leaders created 1,200 jobs in 2012 and is devoted to further progress. Lafarge Joins Zoo to Support by sponsoring the 2013 Net Impact Case Conservation Research Competition at the University of Colorado’s Lafarge Canada, Inc., a division of the Lafarge Leeds School of Business. The competition Group, announced a new partnership with charged 20 teams of four students with the Calgary Zoo and the zoo’s Center for development of a negotiation strategy for Conservation research. By providing both a hypothetical mineral agreement between a cash donation and a gift of aggregates, Newmont and a fictional country. The concrete and cement for construction, as well strategies had to demonstrate shared value as employee volunteer hours, Lafarge hopes for all stakeholders, including lasting social to help sustain the ecosystems around its value for the community and financial returns operations. for Newmont. Peabody Mine Sets the “Lafarge has a long history of environmental “While details of the mining project were Standard for Safety leadership and has connected specifically with fabricated for the purpose of the competition, Peabody Energy’s Rawhide mine near Gillette, the Conservation Research Center to further the circumstances of the case closely Wyoming, USA, recently received the Wyoming our efforts. We have supported the zoo for over resembled many of the issues we address Mining Association’s Small Surface Operation 20 years and find their research work critical to in the mining industry,” explained Brooke Safety Award for the year 2012. This is the biodiversity,” said René Thibault, President and Bacon, Newmont’s Senior Manager of Talent mine’s second straight year winning the award. CEO of Lafarge Western Canada. Management. “So it was a very true-to-life The award is given to mines that have worked scenario that required real thinking and real at least 10,000 hours and have the lowest Lafarge’s support will help execute important solutions.” lost-time incident rates. In 2012, Rawhide mine field research on a number of animals, including black-tailed prairie dogs and black- Just prior to the semifinal round of employees logged more than 442,000 hours footed ferrets in order to improve conservation presentations, the judges announced a new of work without a single lost-time incident, efforts in their natural habitats. They are also and unexpected change in circumstances that during which time they produced and shipped helping with whooping crane incubation required the students to adjust their plans, 13.3 million tonnes (14.7 million tons) of coal. studies and international community-based testing their improvisational ability. This is not the first, or even second, safety conservation work. The first-place team received a $10,000 reward. award the Rawhide mine has earned. It is All the students received an experience that consistently recognized helped prepare them to deal with similar for safety both within situations as they begin their careers, in the Peabody Energy and mining industry or elsewhere in the world. the mining industry, and recently achieved a

safety milestone f or a Severstal Awarded mining by working more than for Development of 640 consecutive days Entrepreneurship without a reportable incident. better world Russian steel mining company Severstal was named the winner of Best Corporate However, Rawhide is Program for the Development of Social not the only Peabody mine that is reaching Recognizing Entrepreneurship at the 2013 Welfare Impulse safety milestones. The Kayenta mine in Caterpillar customers awards. Welfare Impulse is an all-Russian Arizona recently reached more than one around the world awards ceremony that rewards companies million work hours without a lost-time for their efforts for their work in the development of local injury; and the Bear Run mine in Indiana in health, safety, communities and entrepreneurship. reached more than one million work hours environment and Severstal was represented by the Urban without even a reportable injury. community Development Agency (UDA), a non-profit joint effort between Severstal and the Mayor’s Office of the city of Cherepovets. The UDA is Stories in this section first appeared in press releases and focused on the development of small business, on corporate websites. including entrepreneurial efforts. It offers support to small and medium business at

Caterpillar Global Mining / Viewpoint 27

Cat® equipment on display at China’s largest coal expo

The China Coal & Mining Expo continues to grow, as does Caterpillar’s presence at this bi-annual event. The show is the largest exhibition for the coal mining industry in China and one of the largest underground mining shows in the world, attracting more than 400 exhibitors and thousands of visitors. After making its debut in 2011, Caterpillar expanded its exhibit for this year’s show, held Oct. 22–25 in Beijing, as a demonstration of its growing commitment to China and to the country’s mining industry. The company previewed a prototype of a Cat® branded roof support that will be built in the Caterpillar Zhengzhou Ltd. Facility, which was recently renamed and is in the process of being transformed to meet Caterpillar manufacturing standards. The Caterpillar display was divided into three areas — surface mining, underground mining and technology/interactive. At the center of the exhibit was a large media wall and stage that featured interviews and discussions with Caterpillar leaders and product experts as well as live performances by local dancers and musicians.

28 Caterpillar Global Mining / Viewpoint / issue 10 Caterpillar previews New EL1000 Shearer Cat® dealers continue to take on additional equipment At Longwall USA in June 2013, Caterpillar Caterpillar continues to transfer the sales and support of all of its complete mining line to the Cat® previewed the new EL1000, a longwall shearer dealer network. The majority of the company’s largest dealers have completed the transition or are built for seams from 1.6 to 3.2 m (63 to 126 currently in the process of acquiring portions of the Bucyrus distribution network. The transition of in). Extending the height range of Cat shearers, the remaining dealers should be completed in the next year or so. this machine offers the cutting power and “Our dealers are making a significant investment in terms of increasing their capacity and reliability Caterpillar customers have come improving their capability to meet the immediate needs of our customers all over the world,” to expect in a smaller package designed for says Steve Wunning, Caterpillar Resource Industries Group President. “Our dealers understand maximum production in low seam heights. the customers’ needs and can help them get the high availability, low operating costs and ® With this addition, the Cat Shearer product increased productivity they demand. Our customers will see the fruit of all the work and line now offers optimal productivity from 1.6 commitment over the next many, many years.” to 7 m (63 to 275.6 in). The shearer line also offers a powerful control system for enhanced automation and communication. Peoria Proving Ground Celebrates 65 Years of Sponsoring the Product Validation Future of Mining Before Cat machines are made College students from around the world available to customers, they go

visited Kennedy Space Center to participate in through a rigorous validation process, Fro m the fourth annual NASA Lunabotics Mining ® news much of which occurs at Cat Proving Competition. More than 50 teams competed Ground facilities around the world. in the event, which was designed to engage The Peoria Proving Ground recently caterpillar students in science, technology, engineering celebrated its 65th year as a part of and math by tasking them with the design this process. While temporary proving and construction of a remote controlled or ground facilities were set up near the East autonomous excavator. Caterpillar sponsored Peoria campus as early as 1910, there was no Caterpillar Recognized three of the teams, made up of students from true standalone proving ground in Peoria until for Diversity and the University of Illinois, Iowa State University the 1930s. As Caterpillar grew in terms of both Inclusion efforts and the Milwaukee School of Engineering. production and customer demand, larger and Caterpillar was named to the “25 Noteworthy The Iowa State University team won the more varied terrain was needed to validate new Companies” and “Top 10 Companies competition, earning a $5,000 scholarship and machines and attachments. Construction for for Veterans” lists by DiversityInc, an a personal invitation to attend an upcoming the Peoria Proving Ground facility began, and internationally recognized resource for diversity launch at the Kennedy Space Center. the first test was run on June 10, 1948. The management. The members of those lists facility continues to play an important role in are selected for their strong performance in testing and improving Cat products today. diversity and inclusion, both internally and » For more news, externally. They also have the potential to make visit mining.cat.com New 988K Wheel Loader the following year’s “Top 50 Companies for Announced Diversity” list. In April 2013, 50 years after the first 988 rolled “These are tremendous honors that reflect New rotary drill takes off the production line, Caterpillar revealed Cat drilling operations positively on our talented team,” said Latasha the new 988K Wheel Loader. Built to be an Gillespie, Caterpillar’s global diversity & to the next level ® optimal loading tool for Cat trucks, the 988K inclusion director. “This is only our second year Caterpillar recently unveiled the new MD6420B meets Tier 4 Final / EU Stage IV emission completing the full DiversityInc Top 50 survey, Rotary Drill, the next generation of the industry- requirements and offers improved fuel so we are really pleased with the progress we leading MD6420 family. With a bit load force efficiency. A number of new and improved have made in such a short amount of time. of 42 000 kg (92,594 lb) and three mast length features help increase productivity and safety While we are proud, we only have time to pause options, the drill has the flexibility to drill while saving time on maintenance. A new to celebrate this recognition. We have too much holes across a wide range of sizes, allowing Optimized Z-bar linkage adds versatility in work yet ahead of us to stop now. We want all it to excel in hard- or soft-rock applications. small quarries and underground applications, employees to experience the empowerment The MD6420B offers a number of features reducing machine height and length while and success that comes from working in an and systems that increase productivity and increasing dump clearance. The new operator inclusive culture.” efficiency, including the new Cat undercarriage station features expanded visualization with Grease Lubricated Track (GLT) and capabilities, greater sound reduction, better several powertrain and mast configurations. climate control and a comfortable seat for It also can incorporate the Cat® MineStar™ maximum operator productivity. Building on Terrain capability set, leveraging cutting-edge the premium features of existing Cat Wheel technology to make drilling safer and more Loader products, the 988K sets a new standard efficient. in customer value.

Caterpillar Global Mining / Viewpoint 29 Viewpoint is published in English, Spanish, Portuguese and Chinese. Text-only versions of many articles in Chinese, French, Portuguese, Spanish and Russian are available at mining.cat.com/viewpoint.

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Viewpoint est publié en Anglais, Espagnol, Portugais et en Chinois. Les versions texte- seul de plusieurs articles sont disponibles en Chinois, Français, Portugais, Espagnol et en Russe sur mining.cat.com/viewpoint.

Viewpoint é publicado em Inglês, Espanhol, Português e Chinês. Versões somente em texto de vários artigos em Chinês, Francês, Português, Espanhol e Russo encontram-se disponíveis no site mining.cat.com/viewpoint.

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