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TWO Mlnes. TWO SEAMS. ONE Partnershlp 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
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