The Last Mile from Every Tire

2007: issue 1

A publication of Caterpillar Global Mining

Seeing Clearly for safer mine sites The last mile from every tire

Contamination control paying off for xstrata’s Alumbrera mine

Alternative Fuels: Exploring biodiesel

Setting the pace for high production Copper Mining Phelps Dodge Morenci

Technology keeping workers safe in australian underground mine Welcome to Viewpoint, a magazine produced by Cat Global Mining to address the issues facing our mining customers today—and to share what we’ve learned from our industry partners around the world.

This issue’s safety story focuses on operator hear from a mine owner who is demonstrating visibility—why it’s important, how you can improve best practices in tire life management. it, and the technologies that are either newly We also address the topic of energy. From price to available or under development to aid in visibility availability, energy concerns are at the forefront of many for operators of large equipment. mining managers’ minds. We’ll explore how biodiesel In addition, we profile the Phelps Dodge Morenci is being successfully used in off-highway engines. mine—one of the largest and most technologically We look forward to your feedback and to sharing advanced mines in the world. Morenci has been an more stories of this great industry in future editions early adopter of a number of technologies, including of Viewpoint. using GPS for ore and slope control and replacing smelting with solvent extraction/electrowinning.

In the article “Last Mile from Every Tire,” Cat experts share some practical advice for extending tire life Chris Curfman through improved haul road maintenance. We’ll also President, Cat Global Mining

Caterpillar Editorial Board Tami Nelson, Editor; Erik Elsmark, Viewpoint is a publication of Cat Global Mining, producer Wheel Dozers and Loaders; John Enderby, China and India; Greg of the mining industry’s broadest line of equipment and Gardner, Europe, Africa and Middle East; Chris Gehner, Underground technology. Caterpillar serves the worldwide mining Mining; Larry Gregory, Trucks; Dan Hellige, Safety; Kent Lynch, Tractors; community through its vast dealer network and a single Keith Malison, South and Central America; Patrick Mohrman, Field division called Caterpillar Global Mining, headquartered Support; Glenn Morrison, Australia, Indonesia, New Zealand; Shane in Peoria, U.S.A., with additional offices worldwide. O'Brien, North America; David Schricker, 6 Sigma.

Cat Global Mining / Viewpoint / 2007: issue 1 table of contents

Using biodiesel in off-highway engines alternative fuels:18

Contamination control paying off for xstrata’s alumbrera mine: 6 Technology keeping workers safe in australian underground mine: 9

Improved visibility means safer mine sites seeing clearly: 20

The last mile from every tire: 2

Phelps Dodge Morenci Setting the pace for high Production copper Mining:10

News from cat: 25

Cat Global Mining / Viewpoint The last mile from every tire:

How haul road maintenance can extend tire life

Cat Global Mining / Viewpoint / 2007: issue 1 It used to be that tires were just a cost of doing business. Mine owners were accustomed to spending the initial purchase price of a large mining truck in tire-related costs over the lifetime of the machine. Today, with an unprecedented demand and production that can’t keep up, tires are no longer considered just a cost. They’re mission-critical to keeping your haulage fleet working.

“This shortage isn’t going to end this year, or next Negotiating curves can generate high lateral tire motor grader, wheel year, or even the year after that,” says Pete Holman, forces, which contribute to high tire wear and ply dozer or track-type senior consultant in Caterpillar Global Mining. “It’s separation. Superelevation—the difference in height tractor? going to take a while for the manufacturers to catch between the inside and outside edges of the bed of a Motor graders, wheel dozers and track-type tractors are up. So mines have to do what they can to take care banked road—helps eliminate these forces. recommended for the following of the tires they have. And the only way to do that is haul road applications: When properly designed, superelevation keeps loads to change the site culture. Now tires are getting the Motor graders and wheel dozers level and square on the tires, decreasing side forces care they should’ve been getting all along.” - haul road construction and on the tire casing, and reducing scuffing and wear maintenance About 80 percent of all large tires fail before they on the treads. In addition, superelevation allows - blasting cleanup wear out. Cuts are responsible for about 45 percent trucks to operate at more consistent speeds, which - loading area cleanup of failures, with impacts causing nearly 30 percent. means less braking and less heat—another cause of - dust maintenance One of the most important things a mine can do to shortened tire and component life. - reclamation prevent these premature failures is to take care of its - snow removal The amount of superelevation depends on the curve’s haul roads. radius and the speed at which it is negotiated. Because Track-type tractors “Cuts and impacts are mostly caused by spillage superelevated turns can prevent a danger when slippery, - haul road construction on the haul road,” says Caterpillar application those over 10 percent should be used with caution. - production dozing at distances up to 500 feet consultant Kent Clifton. “When you’re driving a car, Another approach to superelevated curves is to determine - dedicated waste dump it’s easy to dodge a large rock. With a mining truck, operations the safe speed for negotiating a turn at a certain lateral tire by the time you see it, it’s too late.” - stockpile operations/steep force. In general a 20 percent lateral coefficient of traction slopes Design it right is safe for all but slippery conditions. - haul road construction - reclamation and ripping Clifton, who has visited sites all over the world Grade is also important because it affects where and witnessed best practices, says the first step is the load sits on the tires. The goal is for 33 percent designing roads properly. The best haul roads have of the load to be in the front of the truck and 66 crowned straight sections, superelevated curves, percent to be in the rear, Clifton says. The ideal safety berms and drainage ditches on both sides. grade is between 8 and 10 percent with low rolling resistance of 2 percent or less.

1/ A water truck wets down the 1 haul road at Pine Branch Coal 2 mine in Chavies, Ky., in the Eastern Coal area of the United States. Pine Branch is careful to use enough water to keep down dust without over-watering, which can cause slippage and make fallen rocks even more dangerous to tires.

2/ “Good haul roads improve production, extend tire life and reduce overall operating costs,” says Caterpillar senior product consultant Kent Clifton, shown here at a site in Arizona.

Cat Global Mining / Viewpoint Daily mine site It’s also important to remember that the haul road Making sure haul roads are free from rocks and Checklist begins at the loading face and ends at the dump point. other debris should be a top priority on every mine

Haul Road Proper design of bench and dump areas can increase site, Clifton says. And that dedication does make a - Road is free of puddles, tire life as well by reducing spillage that can become a difference. “Some mines will get just 4,000 to 5,000 potholes, ruts, gullies. hazard to tires. Trucks should be able to quickly come hours from a tire,” Clifton says. “But Pine Branch - Passing room is adequate. in, turn around, and then back up. “You don’t want to Coal, in the Eastern Coal area of the United States, is - Corner radius allows safe turn the steering wheel and move the tires while the averaging 11,400 hours from a tire. They operate in one operation at high speed. truck is not in motion because when tires twist on of the most severe environments for tires. If you can - Spillage is removed quickly. top of the rocks, it causes wear,” Clifton says. extend tire life at Eastern Coal, you can do it anywhere.” - No rubber deposits on tight, rocky turns. Road width is another concern. “Roads should be Pine Branch owner Dave Duff, who has been in the - High braking forces not necessary on corners. three times the width of the widest truck, so tires mining business for over 50 years, says proper haul - Expected road speeds are aren’t bumping into the safety berms or dropping road maintenance comes down to making it a priority. achieved. into ditches,” he says. “It’s a lot of work, but you just have to Load Zone Using the proper material to prepare and maintain - Floor is smooth. keep after it,” he says. “We try to do it the road bed also is important. If the surface under - Water removal is adequate. the best it can be done. People have the haul road is soft or moist, rolling resistance is - Debris is cleared away. to care about it. And we do.” high and tires are allowed to sink—which means - Trucks don’t drive over rocks. contact with dirt along the sidewall. This can wear “The key is communication,” he continues. “We all - Trucks leave under full, continuous acceleration. away the rubber from the tires. have radios, and whenever anyone sees a rock, they tell someone and it gets picked up. It’s teamwork.” - Trucks return without making Usually in cases of high rolling resistance, the tight, high-speed turns. Pine Branch has machines dedicated exclusively to ground is wet—another threat to tire life. “Moisture Dump Zone removing rocks from the haul roads. “We call them causes tires to slip. And when tires slip, they are not - Floor is smooth. the rock chasers,” Duff says. “We have little tractors biting the surface—which means they are burning - Trucks enter at high speed, that are outfitted with a box scraper. And they run rubber,” warns Clifton. parallel to edge. wherever a rock has fallen.” In addition to picking - Trucks brake in straight line, then turn and stop to reverse Keep it clean up rocks, the box scraper also pushes dirt and to dump. smaller rocks into low spots that need to be filled. While haul road design has a significant effect on - Safety berms are regulation height. tire life, by far the biggest threat is cuts and impacts Pine Branch also focuses on proper watering due to rocks on the haul road. When a tire comes in techniques. In addition to causing slippage, water contact with a rock, it can cut the tread or cause the also makes fallen rocks even more dangerous to belting of the tire to separate, which reduces tires. “A wet rock cuts twice as quickly as a dry the tire’s structural strength. rock,” Duff says. “We try to find a happy medium.

1/ Pine Branch Coal owner Dave Duff, right, talks with Simmie Ray Bowling, general superintendent of the Combs Branch mine.

2/ An operator uses a Cat motor grader to maintain haul roads at Pine Branch Coal.

3/ This haul road at Pine Branch Coal is set at a 5 percent grade so rocks won’t tumble from trucks to the road. Two Cat motor graders maintain the road. 2 1 3

Cat Global Mining / Viewpoint / 2007: issue 1 Parker Bay identified 16,425 large mining trucks operated by What’s driving the shortage? more than 1,000 large surface mines in more than 70 countries. This increase was accomplished by the commissioning of more The lack of availability for large tires has been a challenge in than 4,400 new trucks shipped during 2004-2006—the largest the mining industry for the last four years, with a continuing total for a three-year period ever recorded by the mining supply gap of 20 to 30 percent. But what's causing the truck industry. At the same time, many mines chose not to shortfall? Industry experts cite a skyrocketing demand retire existing machines or placed older units (either their for mining equipment due to high commodity prices—a own or ones acquired on the used equipment market) back situation exacerbated by a long period of underinvestment in into service to meet the surging demand. the 1990s and early 2000s. For most tire manufacturers, large earthmoving tires are just When will it end? a small percentage of their business. For some time, these companies couldn’t get a high enough return on investment Caterpillar believes that the shortfall will exist for at least to build new plants that produce large tires. At the same another three to four years. “This will be around for a time, commodity prices had been weak and on a flat trend while—at least through 2010. Current inventories are gone. for nearly 20 years. When the demand for mined products Our customers expect to weather the shortfall, but many suddenly peaked, tire manufacturers weren’t ready. anticipate having trucks parked at some time,” says Holman. "Everybody missed it," says Caterpillar senior consultant “Major tire manufacturers have expansions currently Pete Holman. "The global demand is unprecedented—and it underway to meet the demand,” says Dan Gove, Caterpillar wasn't matched by an increase in supply." component product manager. “These expansions are capital intensive and require a significant investment in specialized Mining companies point to the rapid industrialization of machinery. It can take two to three years for an expanded China, India and other developing countries as a main reason facility to be up and running.” for the expanding appetite for mined materials. “It takes material for countries to develop,” says Holman. “And a lot of Cat is doing what it can to help customers find tire these commodities come from mining.” solutions—initiating projects to get maximum life from existing tires, sourcing radials, using bias tires and looking As mining companies work around the clock to meet the demand into repairing and retreading options. for materials, they’re expanding their truck fleets. According to The Parker Bay Company, a mining equipment industry research “Tires are critical to the success of our customers,” says specialist, the active population of mining trucks increased by Holman. “And even though we’re not in the tire business, nearly 40 percent over the three years ending Dec. 31, 2006. they’re critical to our success as well.”

Curve Superelevation Turn Speed Speed Speed Speed Speed Radius 16km/h 24km/h 40km/h 56km/h 72km/h in percent grade, to Meters (feet) (10mph) (15mph) (25mph) (35mph) (45mph) provide no lateral tire force—The following table 15.2 (50) 13% 30% — — — 30.5 (100) 7% 15% — — — is a guide for providing the Reference: superelevation necessasry to 61.0 (200) 3% 8% 21% — — Cat Performance Handbook eliminate lateral forces. 304.9 (1000) 1% 2% 4% 8% 14% Edition 36, April 2006

We have to keep the dust down so you can see the Make the investment rocks in the road. But we can’t get it too wet either.” Haul road maintenance sometimes takes a back seat

Educate operators to moving material. “Instead of putting an operator on a motor grader to maintain roads, mines will have Operator training is important to every aspect of him drive a truck—because what’s in that truck is mine operations—and extending tire life is no what makes money for the mine,” says Clifton. “But exception. Motor grader operators need training in if poorly maintained roads lead to trucks up on blocks how to properly maintain haul roads to maximize because they don’t have tires, then you’ve lost the tire life. Truck operators need to be aware of how production you could have gotten from that truck. their driving habits have an impact on tires. “Sure, haul road maintenance is a cost, but it’s worth “Watch your loads and watch your speeds,” says it,” he says. “Good roads improve production, extend Holman. “Check your tire pressures. Be aware of tire life and reduce overall operating costs.” rocks and debris. Be careful on turns.”

“A lot of what impacts the life of tires comes down to who is driving your truck,” says Duff. Cat Global Mining / Viewpoint Contamination control paying off for Xstrata's alumbrera mine

Little things can make a big difference. And by reducing those little things—in this case microscopic particles in oils and fuel—Minera Alumbrera Ltd. estimates savings of millions of dollars over the life of its remote copper-gold mine in Argentina.

Specifically, the impact of a thorough contamination the implementation of the contamination control control program combined with operator training program, other problems—such as near misses has extended major component life in the truck fleet and damage to plant and equipment—have trended Kidney Loop Filtration to the tune of US$7 million savings over the life of downward, too. (see photo 5 on page 8) is a the mine. Similarly, minor component maintenance process where a certain amount Alumbrera achieved these impressive results by cost savings is projected to be US$2 million. of fluid is removed from a system, incorporating the contamination control program filtered, and then returned to the system. This is different Other measured benefits are a 47 percent within the strategy of mine operator Xstrata as well than full flow filtration, which is improvement in mean time between service, a 62 as by working with Caterpillar Inc. and Finning common in machine return filter applications. percent reduction in unscheduled work, and a 3.6 S.A., the Cat dealer in Argentina. Xstrata Copper ® In a kidney loop filtration percentage point improvement in Cat 793C truck manages the operation and owns 50 percent of process, oil is removed from the availability—up to 91.7 percent. Since the inception Alumbrera. The remainder is owned by Canadian system, filtered, then returned to the "now dirtier" system for of the program in 2003, major component life has Goldcorp and Northern Orion Resources Inc. circulation. The contamination improved in a range of 17.8 percent to 30.8 percent, level of the whole system is CHANGING THE CULTURE reduced slightly during each pass and the trend is continuing. of the kidney-loop oil. The total “To achieve our maintenance strategy objectives, we contamination level will decrease And most importantly, Alumbrera has used the steadily over time. Kidney loop contamination control program as a springboard to a had to change the culture,” said Brett McDonald, filtration is a slow process; manager of mine mobile equipment maintenance. however, it is less costly than oil new site culture—resulting in a 50 percent reduction changes and the resulting labor in safety incidents in the truck shop, tire shop and “Changing the culture was the biggest challenge. or other types of system cleanup. other maintenance areas. The program provided It required time, effort and resources, but we extensive training, elimination of improvised work accomplished it through training and mentoring. techniques, changes in housekeeping and new All ranks of our maintenance staff were trained in attention to detail throughout all work practices. The contamination control procedures on site by our mine recently achieved 2.1 million man-hours and maintenance trainers—Aris Garcia, Rogelio Lopez one calendar year without a lost-time injury. Since and Felipe Torres.”

Cat Global Mining / Viewpoint / 2007: issue 1 “Everyone on site invested the time and effort for The basics of Oil storage and transfer. Equip both oil the successful implementation of the program,” and diesel fuel storage tanks with desiccant McDonald continued. “We also invested about contamination control breathers to keep dirt and water out. Use barrel covers to keep dirt and water from US$400,000 in equipment and workshop The steps that mines can take to entering around the bung. Filter oil by improvements.” control contamination range from using a transfer filter cart. Also, filter fuel the straightforward, such as good before it fills a machine’s tank. When Miguel Seu and Liam Keegan, superintendents of housekeeping, to the uncommon, machines are serviced, use a filtration cart mine mobile equipment maintenance, believe the such as particle counting. The basic to remove contaminants from fluids. benefits are far-reaching. “The truck shop is now a procedures focus on clean facilities, pleasure to work in,” Keegan said. “Improved morale clean components, clean processes Filter changing. Always meet oil and filter has a positive effect on the quality of work. We have and clean fluids. change intervals. Carefully remove used filters to ensure that contaminants do not measured a decrease in work that has to be redone.” Housekeeping. A clean shop means reenter the system. Keep the new filter there is less dirt, dust and grit to get into “The benefits of the program are clearly understood in its original package until it is ready to components or to be transferred into by all employees, and everyone works toward be installed. Inspect used filters for metal components. Clean floors frequently, maintaining the high standards that we have particles and other indicators of problems. clean up spills immediately, keep work High efficiency filters and kidney looping reached,” Seu said. “Strong interest in improving benches free of debris and limit the use (if required) are recommended after any continues to come from the shop floor. They ask, of the floor for storage. Use absorbent system repairs have been made. ‘What’s the next step—what else can we do to mats to soak up fluids spills rather than complement our achievements?’” using absorbent particles, which create Operation and maintenance. Make sure airborne dust. Wash heavy equipment equipment is inspected daily for leaks Alumbrera managers emphasize that support for and large components thoroughly before and fix immediately if any are found. implementing the contamination control program they enter the shop. Always keep the hydraulic tank between is needed at all levels. Full and Add. Maintain oil cooler and Proper parts handling and storage. Keep relief valves properly. Use cylinder rod “Because implementing change is challenging, you components packaged until they are protectors when conditions warrant. must have support from the top,” McDonald added. ready to install, and store them in clean, Monitor system temperatures and heed “The support from the Alumbrera general manager, dry areas. Return parts to storage in their warnings when operating. Jon Evans, was a key to making this work.” original packaging. Protect components in the assembly/maintenance area, and clean Particle counting. The human eye The program has proven so successful that components properly before assembly. can’t see most of the dirt that damages Xstrata is using Alumbrera as the maintenance machine systems—and it doesn’t take Hydraulic hose assembly and storage model for its mines around the world. Xstrata much. Use particle counting to identify cleaning. Clean and cap hoses and tubes. the number of particles in a one-milliliter is starting to implement contamination control Clean the inside of each hose assembly sample of oil. Particle counters handle a programs at all sites. with a Caterpillar hose cleaner, which wide range—from 4 microns to greater pneumatically fires a cleaning projectile Mining copper and gold than 70 microns in size. through the hose until the hose is clean. Minera Alumbrera has been operating the Bajo de la Alumbrera copper and gold mine in northwestern

Argentina since 1997. The mine sits at 2,600 meters 1/ Alumbrera (8,500 feet) altitude in the eastern foothills of the operates a fleet of 40 Caterpillar Andes, and is the first large-scale mining operation 793 haulers, which are a focus of the in Argentina. contamination 1 control program. 2 The mine has the size to show significant 2/ The open pit is bottom line results when making incremental about 300 meters (984 feet) deep. improvements. The 70 pieces of equipment Ramps on 12 percent move more than 112 million metric tonnes (123 grade tax truck components. million short tons) of material per year. From a portion of that material comes more than 180,000

Cat Global Mining / Viewpoint Earning metric tonnes (198 million short tons) of copper The Alumbrera operations and maintenance groups five-star status in concentrate and more than 17,000 kilograms have implemented additional Caterpillar tools in Alumbrera and Finning employees (600,000 ounces) of gold annually. In 2006, the their asset management strategy. Caterpillar and at the site worked together to fully implement the contamination copper grade was 0.56 percent and the gold grade Finning personnel worked with Alumbrera to apply control program, based on was 0.71 grams per metric ton. the Site Assessment Tool and the Fleet Productivity the philosophy that the single Optimization program. Both of these analyses help greatest opportunity for increasing The production fleet is anchored by four Bucyrus component life and lowering identify areas of high potential improvement and operating costs is to effectively 495BI shovels and three large wheel loaders, quantify current and best scenarios. Alumbrera’s manage fluid cleanliness. including a Cat 994D. The haulage fleet consists of results, as measured by these tools, now are the The hard work earned the mine 40 Caterpillar® 793B and 793C mining trucks, with the distinction of being the highest in Latin America and place Alumbrera at first five-star rated Caterpillar a D11R and five D10Rs for production dozing work. the world’s best practices level. customer facility in the world. Two Caterpillar 834B and two Tiger 690 wheel dozers A five-star rating indicates 95 percent or better compliance clean up loading areas, and four Cat 16H motor The Alumbrera plan is to take trucks past the with recommended contamination graders maintain the haul roads. 110,000-hour mark, and, in the process, to extend control procedures, as determined the life of all components beyond established limits by a detailed audit conducted The trucks are an aging fleet, with the oldest by Caterpillar. Alumbrera earned by employing the contamination control program, the rating in 2005, and a 2006 surpassing 65,000 hours and the newest at about careful condition monitoring and proper operating audit confirmed the mine had 30,000 hours. That fact, combined with tough maintained that status. techniques. loading and 12 percent ramps, challenges the “Everybody here has great pride in being the first and only mine maintenance team to keep machines productive The Alumbrera equipment maintenance in the world to have achieved and availability high. In studies conducted by improvement program is already paying good the five-star status—and to have maintained our status as the only Caterpillar, the Alumbrera mine severity index dividends and will continue to do so as the fleet ages. five-star mine in the world for is high. Regardless, benchmarking studies show Implementing a contamination control program the second year running,” said Brett McDonald, manager of mine that the Alumbrera fleet is performing well when provided the push to change the culture and to take mobile equipment. compared to world standards—a further testament to care of little things—some smaller than the eye can the work that both the maintenance and operations see—that add up to big benefits. department are doing.

1/ Keeping vehicles clean aids 2/ After a truck is washed at the 3/ Technicians keep work 4/ Bulk lubricants tanks are 5/ When a truck is in the shop contamination control. A drive- wash pad and before it enters surfaces in the shop clean and equipped with filtration systems for maintenance and any time through light vehicle washing the truck shop, a technician clear. Rubber surfaces on work that help ensure oil delivered to condition monitoring indicates system supplements the mine washes the tires with a hand-held benches help protect delicate machines meets the Caterpillar- a need, lubricants are filtered equipment washing pad, which is spray as the truck is parked on parts and are easy to clean. The recommended ISO 16/13 using the appropriate filter cart, well equipped with high-volume a concrete apron. The final rinse white box in the background is standard. The bulk tanks are or “dialysis machine.” This sprays at several different heights helps keep dirt out of the shop. one of several cabinet-type parts equipped with 4-micron filtered “kidney looping” procedure plays for washing mobile equipment washers, which handle dirty jobs breathers that also remove an important role in extending from different angles. with a minimum of mess. moisture. component life.

1 2 3 4

Cat Global Mining / Viewpoint / 2007: issue 1 Technology keeping workers safe in Australian underground mine The historic Stawell gold mine in Victoria, Australia, employs more than 300 people—and keeping every one of them safe is a key focus for owner Leviathan Resources Ltd. A dedicated health and safety manager has been onsite at Stawell since 2005, working with staff to ensure According to Kevin Brooks, who operates the Cat that safety management systems are embedded at LHD out of the MOS, this is a leap forward for all levels within the company. Employees receive mining technology. He reports excellent control and regular safety training and certifications. is removed from a situation where there is repetitive In addition, the company takes advantage of the exposure to underground conditions. Learning to latest technology to keep workers safe—including operate the MINEGEM system is easy. After two a suite of automation offerings from Caterpillar hours a new operator is as productive remotely as he that allows operators to mine the gold while safely would be on board. removed from underground situations. Stawell’s great depth puts underground miners in MINEGEM™ technology controls load-haul-dump a high temperature environment, which makes it a (LHD) machines by mapping their location off the good application for MINEGEM technology. The tunnel walls and sending signals to remote operators. system has been successfully operating at Stawell The products give customers significant advantages. since August 2005. Machines with MINEGEM They reduce the need for having operators in machines move 50 percent of the material at Stawell. Operating in risky environments, extend operating time (machines utilization is increased because the loader is in constant can be in constant operation), reduce damage to loaders use. Machine damage is reduced because control and reduce costs. They are especially important in is precise and operators are comfortable and alert. underground mines where the cost of labor is high. MINEGEM now has 85 percent to 90 percent reliability, and it is still growing. MINEGEM consists of a small device installed on Caterpillar R1600, R1700 or R2900 LHDs and a control planning for the future system for the operator located elsewhere. Using this The Stawell gold mine recently underwent a technology, the LHD operator can be miles away from major redevelopment and rejuvenation program, the underground the mine—anywhere in the world including upgrades to the mine’s plant, equipment for that matter—and effectively operate equipment and infrastructure as well as accelerated mine working deep below the surface. At Stawell gold mine, development. Current ore reserves and resources the operator sits in the mine in an air-conditioned support a mine life of approximately five years. four-wheel drive Mobile Operating Station (MOS).

Cat Global Mining / Viewpoint photo/ Five active pits in a Phelps Dodge, one of the world’s leading Located in eastern Arizona, Morenci moves 5-by-8-kilometer (3-by-5-mile) area make up the Morenci mine, copper producers, has a long history of mining 700,000 metric tonnes (770,000 short tons) operated by Phelps Dodge. The company has been working in low-grade deposits successfully in the southwestern of material per day to produce about 381,000 the area for 126 years and began United States. The Morenci mine is no exception— metric tonnes (420,000 short tons) of copper surface mining in 1937. though the scale of the operation sets the standard for annually. Despite a deposit with total ore grade Phelps Dodge and places Morenci among the largest of 0.27 percent copper, Morenci earned its mines in the world. Freeport McMoRan Copper flagship status within the company through & Gold Inc. owns 85 percent of Morenci, while efficiency as well as size. Sumitomo Corp. owns the remaining 15 percent.

1 2

10 Cat Global Mining / Viewpoint / 2007: issue 1 Phelps Dodge Morenci:

1/ Five different rock types add 3 4 complexity to mine planning and to the drilling and blasting scheme.

2/ Morenci’s truck and shovel fleet moves more than 699,000 metric tonnes (770,000 short tons) of material every day.

3/ Mike Kridel manages fragmentation and loading at Morenci mine.

4/ The mine recovers all of its copper by pumping the rich electrolyte through a series of tanks or “cells” Cat Global Mining / Viewpoint 11 in the electrowinning tankhouse shown here. A new pressure leaching plant is under construction to leach copper concentrates. 12 Cat Global Mining / Viewpoint / 2007: issue 1 Taking advantage of technology mine’s general manager. “When prices are low, the constraints are apparent, and the competition for Morenci mining and processing operations have skilled employees and equipment is reduced. Our been early adopters of new technologies to keep decisions now must serve the mine well in both the costs down. Morenci pioneered use of the Global short term and long term.” Positioning System (GPS) for ore control and slope control, as well as refined computer controlled Managing a sprawling operation 1 dispatching for trucks. Morenci managers, aided by a number of processes and corporate teams The five active pits from which Morenci recovers ore established by Phelps Dodge, continue to evaluate are spread over a 5-km by 8-km (3-mile by 5-mile) 1/ This Caterpillar 793 truck is just area. The sprawling operation includes copper ores one of 80 working on the Morenci and implement new technologies for mining and site. Four operators—one for each equipment maintenance—including mesh radio of chalcopyrite and oxides including chalcocite, shift—are assigned to each machine. malachite, azurite and chrysocolla. The bulk of the 2/ Water conservation dictates a for expanded data transmission, blasthole drill closed loop system for leaching ores automation, and systems that extend truck life into recoverable copper is contained within the copper and electrowinning. Water used in any process is captured and used again. the 120,000- to 150,000-hour range. sulfide mineral, chalcocite. 3/ Morenci is the world’s largest Five different rock types add complexity to mine producer of copper cathode from The processing facilities, too, take advantage of new solvent extraction/electrowinning. technology. Once the site of a smelter, the Morenci planning and the drilling and blasting scheme. operations ceased smelting in 1984. In 2001, Morenci “More than 80 percent of the material goes directly to run-of-mine leach pads,” says Mike suspended operation of its concentrators and went 2 to 100 percent solvent extraction/electrowinning Kridel, manager of fragmentation and loading. (SX/EW). Morenci now is the world’s largest “We evaluate fragmentation producer of copper cathode from SX/EW. With almost 607 hectares (1,500 acres) under leach, the based on copper recovery as mine is a prime example of how this technology has well as the more common benefited operations with lower grade ores. measures of oversize material, But Morenci processing managers are not standing still. Crews have started constructing a pressure loading cycle times and crusher leaching plant based on technology developed by the performance.” company to better recover copper from chalcopyrite Video monitoring at truck dumps allows mineralization. The process was proven in a pilot assessment of the size of material created by plant at the Phelps Dodge Bagdad Mine in Arizona. blasting. The Aquila drill system is used to About US$210 million will be invested in the new position drills, and Morenci is evaluating drill plant, in the restart of the concentrator and in a automation systems that automatically adjust conveyor system to bring ore to the plant. More than pulldown and rotation for optimum performance an economical way to recover copper, the concentrate and bit life. leach project will extend mine life and provide greater flexibility in the way the resource is managed. Thirteen shovels, eight equipped with 47-cubic- meters (62-cubic-yard) buckets and five equipped The boom in copper demand and increase in prices with 31-cubic-meters (40-cubic-yard) buckets, have benefited this mine, which emerged from handle loading chores. Bench height is 15 meters 3 underground operations in 1937. But high prices (50 feet), and bench widths vary from a minimum create new dilemmas. of 46 meters (150 feet) to a standard width of “In many ways, it is more 61 meters (200 feet). Eleven of the 13 shovels difficult to manage the mine feature digital drive systems, which, Kridel points out, improve cycle times and enable easier remote now during a period of high monitoring of machine performance and health. ® copper prices,” says Peter Quinn, the The shovels work with a fleet of 81 Caterpillar 793B Cat Global Mining / Viewpoint 13 1 3

1/ A herd of more than 250 Rocky 2 Mountain Bighorn Sheep make the mine their home. Sheep from this herd have been used by the Arizona Department of Game and Fish to populate other areas of the state.

2/ Discussing operations on site are, from left: Peter Quinn, Morenci general manager; Manny Herrera, truck shop superintendent; and Mike Kridel, manager of fragmentation and loading.

3/ Morenci operates 13 shovels, whose operators meet with supervisors each month to review performance and identify means to improve.

4/ To conserve water in the dry southwestern U.S., Morenci uses a drip system on heap leach pads rather than sprays. About 607 hectares (1,500 acres) are under leach.

and 793C trucks equipped to haul 236 metric tonnes Truck tire life averages between 56,000 and 68,000 (260 short tons) each. kilometers (35,000 and 42,000 miles); some tires have reached 97,000 kilometers (60,000 miles) Maintaining roads and protecting tires thanks to diligent haul road maintenance. The average haul on the site is almost 10 kilometers (6 miles), and the most severe haul is 18 kilometers “Our North American One (11 miles). Ramps are 40 meters (130 feet) wide, Mine program is aimed at including berms, and are on a 10 percent grade. identifying the best practices To avoid overtaxing truck tires, the computer- based truck scheduling and assignment system at each operation and applying monitors ton-mile-per-hour limits. The haulage those practices to all of the six roads themselves are carefully maintained by a fleet of three Cat 24H and seven Cat 16G motor graders, southwestern U.S. mines,” which are dispatched quickly to problem areas. Slots Quinn says. “A team working within in berms enable graders to easily dispose of spillage. that program does periodic haul road audits and The site uses Caterpillar wheel dozers and track-type reports their findings. Additionally, we do internal tractors to maintain loading and dump areas. audits of many mine attributes on a quarterly

14 Cat Global Mining / Viewpoint / 2007: issue 1 4

basis. Internal audits are based on standard new machine with the latest technology and operating procedures.” engineering updates—as well as a new warranty for the machine. Empire will rebuild 12 of Extending machine life Morenci’s 793s this year. and increasing availability Manny Herrera, superintendent of Morenci’s Morenci has devised a plan to keep its aging truck truck shop, credits a thorough condition fleet rolling. Even with an average hour meter monitoring program and proactive maintenance reading of 80,000, the 793s are maintaining 82 planning for the truck fleet’s high availability. percent availability, which takes into account all Technicians take oil samples three days before causes of mechanical inability to operate. To achieve a truck comes in for maintenance, which is truck longevity of 120,000 to 150,000 hours, Morenci scheduled at 500-hour intervals. The results of contracts with the regional Caterpillar dealer, the oil analysis are used to plan any additional Empire Machinery, to do Certified Rebuilds. maintenance work while the truck is in the shop. Caterpillar Certified Rebuilds tap into the Maintenance analysts correlate VIMS (Vital second life of Cat machines, bringing all major Information Management System) data, fluids truck components up to new specifications for analysis reports and operator reports to generate the model. The mine owner receives a like- work orders.

Cat Global Mining / Viewpoint 15 The truck shop is working toward a fully predictive maintenance system. Herrera trusts that will be facilitated with a new mesh radio system, which has the capability to transmit very large quantities of data. The new radio technology is being implemented at Morenci this year with the help of the Phelps Dodge Mine Technology Group based in Safford, Ariz. The system allows a technician to monitor truck health in real time from the truck shop. Identifying and fixing small problems before they become big ones is the goal.

Developing people and protecting the environment

Environmental With 1,200 people working in the mining operation and Management a similar number working with minerals processing, The environmental program at Phelps Dodge and Morenci have taken a number of Morenci focuses on meeting steps to develop skilled employees. or exceeding all requirements, proactively addressing About 65 percent of the 400 truck operators have less environmental impacts resulting from mining operations, and than one year of experience. To develop these new truck reclaiming historic areas and operators, Morenci puts each person through operations no longer in use. a four-day performance-based training program. Managing materials—Copper, zinc and manganese occur The program relies on a motion-base truck simulator from naturally in low concentrations Immersive Technologies for task training and skills testing. in the waste rock moved during the mining process and in To bolster the ranks of maintenance technicians, the tailings. In both cases, the materials are safely handled on mining company offers 62 scholarships at Eastern the mine property in designated Arizona College in Safford. During the one-year areas that are regulated to ensure ongoing protection of technician training program, students spend four days the environment. per week in class and one paid workday per week at the 1 Protecting water quality—Morenci mine shop. Upon successful completion of the program, uses a US$9 million water recovery and control system students earn an associate’s degree and enter into a that keeps water on mine three-year apprenticeship program at the mine. property and a series of monitor 2 wells that check water quality 2006 was the 126th year that Phelps Dodge has been downstream. working in the Morenci-Clifton communities. In recent Recycling water—It takes about 1900 liters (500 gallons) of decades the company has changed the landscape of that water to treat a ton of copper mining district by reclaiming and remediating historic ore in the concentrators, but only 322 liters (85 gallons) is mining sites—some in the path of modern mining and "new" water. The remainder is some outside the boundaries of Phelps Dodge properties. reclaimed. On average, every gallon of water is used more Plans for mining and reclaiming have a long future, than three times. as Morenci continues to make the best use of new technology to maintain the economic life of the mine.

16 Cat Global Mining / Viewpoint / 2007: issue 1 1/ A federal highway, U.S. 191, 3 runs through the mine property.

2/ All dump areas are bladed regularly to remove rocks and maintain berms, which reduces damage to tires and trucks.

3/ Manny Herrera, right, superintendent of the truck shop, explains how his team takes advantage of the latest analysis tools, including fluids analysis and particle counting, and vibration analysis and ultrasound inspection. In addition, the mine is working toward real-time VIMS data reporting using a mesh radio system. Cat Global Mining / Viewpoint 17 As researchers look for the fuels of the future—alternatives that are both better for the environment and reduce dependence on petroleum products— they’re finding answers in the past. Using biodiesel in off-highway engines Alternative fuels “Biofuels, which are produced from plant oils, of fuels that will become commercially available: have been around since the 1800s,” says Anton • Environmental concerns. Biofuels significantly Zimmermann of Caterpillar’s engine research reduce greenhouse gas emissions. “Basically it’s division in Europe. “Dr. Rudolf Diesel actually carbon recycling because plants use the carbon invented the diesel engine to run on a variety of dioxide that we’re putting into the environment,” fuels—including vegetable oil.” says Zimmermann. When Diesel showed his engine at the World • Energy security. The use of biofuels allows Exhibition in Paris in 1900, it was running on 100 countries to produce fuel from their own resources percent peanut oil. The fuel source switched to and reduces their dependence on foreign oil. petroleum because at that time it was cheap and available. Today, researchers are taking another look • Economic concerns. At the state and local level, at biofuels. development of biofuels stimulates the economy by creating a market for products. Zimmermann, a 6 Sigma Black Belt, focuses on liquid biofuels and how they can successfully be used MEETING STANDARDS in Caterpillar diesel engines. Caterpillar has been Europe is leading the way in setting targets for the researching First Generation biofuels since the mid- reduction of carbon emissions and the use of biofuels 1990s. Research also has begun into next-generation and other renewable fuels for transport. The 2005 biomass-to-liquid fuels (BTL), which use the whole target was a 2.5 percent substitution of diesel and plant matter instead of just extracting the plant oil. petroleum with biofuels; the 2010 target is a 5.75 “We’re looking at our fuel systems, making sure percent substitution. In North America, the United they meet current and future regulations—and that States and Canada targeted a 5 percent displacement they will also be compatible with biodiesel,” says by 2010. The United States also has called for Zimmermann. doubling the use of renewable fuels.

why biodiesel? impact on machines

Zimmermann cites three key drivers to the production First Generation biodiesel runs in any unmodified of biodiesel that will influence the legislation and diesel engine. Caterpillar customers—including targets set by governments, as well as the types many in the mining industry—are using blended

18 Cat Global Mining / Viewpoint / 2007: issue 1 Biodiesel Biodiesel recycles carbon dioxide Because biofuels are made from plants, which use carbon 2 dioxide, over the whole fuel CO cycle they produce up to 96% less CO2. biofuels on sites around the world. “Our position right now is that C7 and bigger engines can use 30 percent biodiesel quite happily,” Zimmermann says. “Some customers have found a cost benefit of using it at 100 percent, but there are issues beyond a 30 percent blend that engines right now are not designed for.” Next-generation fuels use a method called the Potential issues must be managed by the customer Fischer-Tropsch process to turn the whole plant through the use of good quality fuel and fuel matter into a liquid fuel. “These fuels are very handling. Fuel management is essential to avoid good for combustion and emissions—with no oxidation, biodegradation and microbial growth. drawbacks,” he says. “And they should require Biodiesel must conform to EN14214 or ASTM no changes to our engines.” D6751 specifications. Zimmermann doesn’t expect BTL fuels to be “You must be very strict about the quality of fuel,” available until at least 2015. “Right now, no one Zimmermann says. “Without fuel standards, we is doing BTL commercially because it is very can’t know what the engine will experience.” expensive,” says Zimmermann. “We need a supply chain to exist. Economies of scale are important Biodiesel’s lower energy content may affect because the capital investment to build a suitable performance, but Zimmermann says research to facility is very high. The process will need a site the date shows that the loss of power is negligible. size of a traditional oil refinery.” “In a field trial that was part of a 6 Sigma project in Germany, we monitored a wheel loader using Through its Perkins Engines Company, Caterpillar 100 percent biodiesel in a low-load situation,” has partnered with the Carbon Trust to link its diesel says Zimmermann. “The operator couldn’t tell a engine research with next-generation biofuels. The difference. So it’s really application-specific. And Carbon Trust is an independent UK government even then it’s an 8 to 10 percent reduction in power. funded body that works with UK businesses and the public sector to cut carbon emissions and develop “Again, the main thing to be aware of is fuel commercial low-carbon technologies. quality,” he says. “You must make sure to use high quality fuels that conform to standards and Caterpillar is working to ensure that its new are accredited.” advanced combustion strategies—designed to reduce emissions—are compatible with the what's ahead? promising BTL fuels.

While the peak potential for worldwide use of “This project is linking research into advanced First Generation biofuels is about 5 percent, diesel combustion and the next generation research into Second Generation biofuels of biofuels so that the ideal BTL fuel for this (biomass to liquid) increases that potential to combustion process can be determined.” 30 percent, Zimmermann says. Zimmermann says.

Cat Global Mining / Viewpoint 19 1/ Large mirrors like the one on this Cat 793D give the operator improved visibility. In cold climates, machines Seeing can be outfitted with mirrors that are heated, which keeps them fog-free and prevents build-up of snow and ice.

clearly:1 Improved visibility means safer mine sites

20 Cat Global Mining / Viewpoint / 2007: issue 1 When you’re operating some of the largest machines in the world—in active, complex mining environments—you need to be aware of everything around you. That’s why improving visibility is high on the list of safety initiatives for mining companies. Using a combination of site design and technology, mining companies are taking advantage of every option for increased visibility for machine operators and others on site.

“We asked our mining customers about their Using technology biggest safety concerns in operating mobile mining to improve visibility equipment,” says Dan Hellige, Health, Safety, Caterpillar and other organizations are researching Environment and Community (HSEC) manager, Cat numerous technologies that have the potential Global Mining. “And every one of them told us they're to improve operator visibility. These safety concerned about visibility for operators of large trucks.” enhancements will provide more information Caterpillar got together with customer BHP Billiton about surroundings and could aid in detection and investigated 170 accidents, then met with three and avoidance of potential collisions.

2/ Trucks are designed to maximize the direct line of sight.

3/ Without an onboard camera system, the person standing beside this Caterpillar 797B off-highway truck would not be visible to the operator in the cab.

4/ Global Positioning Systems help operators keep their machines 2 on a predetermined course. The 3 GPS antenna shown here is on a 4 Caterpillar 160H Motor Grader.

“We do as much as we can to improve the direct other major mining companies to review data. From line of sight,” says Sean Gladieux, 6 Sigma Black that research, 14 accident scenarios emerged—and Belt, HSEC. “But much of the design of a truck cab while many factors can lead to those scenarios, is predetermined by the mechanics necessary for limited visibility is a potential cause for these types operation of that vehicle. of collisions: “All of our products meet international standards • Ducktail—when one truck hits another truck on visibility,” he continues. “By adding some new from behind. technologies, we’re able to go beyond standard • Drifting—when a vehicle moves into the requirements to meet and exceed customer oncoming lane and causes a head-on collision. expectations.” • Overtaking—when an operator attempts to pass and Radar Technology sideswipes another vehicle, or when a vehicle being overtaken turns into the path of the passing machine. Cat has multiple 6 Sigma projects in progress that will leverage radar technology. • Slow-speed—when a machine in a loading area, maintenance area or fueling station reverses, Radar is considered the most robust technology to turns or pulls forward into a light vehicle, heavy address the greatest number of scenarios because it works at night and can see through rain, dust and snow. equipment or structure. Cat Global Mining / Viewpoint 21 Forward-looking radar, which focuses only on those Slow-speed maneuvering detection objects directly in the truck’s path and eliminates While radar looks far out, giving a long and narrow unnecessary information, has been field-tested in view, slow-speed detection identifies things that are Australia. Additional software development will help near the truck but out of the operator’s view—like reduce nuisance alarms and allow it to better interact small vehicles—near dump, load or fuel stations. with the steering wheel—following the curve of the Multiple detection units are necessary to cover road instead of focusing straight ahead on turns. everything around a truck. Research shows it will

1/ Caterpillar’s Work Area Vision 3 System (WAVS) is a closed-circuit 2 camera system that meets stringent standards for durability and reliability.

2/ A WAVS camera is mounted on the hood of this Caterpillar 980H wheel loader.

3/ A Wheel Loader operator uses an onboard camera to get a panoramic view.

When Caterpillar mining customers asked the-shelf system and designed it to meet our for better visibility on large trucks, specialists stringent reliability and durability standards. Camera system brings things at Caterpillar Electronics and Now the original manufacturer is a supplier, into focus for Cat operators Electrical Systems went to work building them for Caterpillar.” on improvements to a Currently WAVS is a stepping stone third-party camera system technology. “Right now it’s not integrated— and created the Work Area it’s an add-on,” Larsen says. “But plans are Vision System (WAVS)—the WAVS in place to install systems at the factory or first closed circuit camera during machine rebuilds.” system to meet tough Cat standards for durability and reliability, Larsen stresses that the WAVS system is just one more tool in the safety arsenal. It won’t “The technology already existed and eliminate the need for other safety features. was in use as retrofit kits,” says WAVS “It’s not intended to be used in place of direct program manager Troy Larsen. “But views or mirrors,” he says. “It’s just one customers wanted it installed at the more way we can help machine operators factory so it is more robust and integrated work safely. It provides the operator with one into the existing systems. So we took an off-

22 Cat07.1 G lobalviewpoint Mining / Viewpoint / 2007: issue 1 take eight radar units and four proximity detectors Cameras and Stereo Vision to get full coverage. On-board camera systems have been available from

RFID Tagging third-party vendors for some time—and are now being required by many governing boards. Recently Caterpillar Radio Frequency Identification (RFID) tagging is improved existing camera kits and is in the process of in use on many sites. Everything on a mine site is making them an option on new equipment. Retrofit kits tagged to send out a radio signal, which is identified that meet Cat standards are currently available. by a corresponding signal on a passing vehicle. (See below for a detailed look at Cat’s Work Area While RFID tagging is a helpful tool in the quest Vision System) for improved visibility, there are drawbacks. For example, contractors, visitors and suppliers who Stereo vision technology differs from standard single- visit a mine site may not have tags. Likewise, rocks camera systems. Two cameras provide viewers with that fall from a loaded truck—or any terrain feature depth perception of their surroundings very much such as high walls or berms—will not emit a signal. like we do with our own eyes. Depth information Therefore operators must not rely solely on the allows the camera to measure the distance and RFID system to warn of potential hazards, and must size of any potential hazard around the truck. An always remain cognizant of what’s around them. on-board stereo vision system could highlight, show the distance, and notify operators of any potential GPS-Based Systems hazard directly on their video screen.

Global Positioning Systems are being used to make High-intensity lighting sure operators keep their trucks on a predetermined course. Because the GPS can identify the center line High-intensity lighting is part of the of a lane, if the truck starts to drift from that line, infrastructure on mine sites worldwide, allowing the system will sound an alarm—helping operators 24/7 operations. Currently these systems stay in the middle of their lane even when their view are being developed as on-board systems for may be blocked. machines to enhance direct line of sight as well as

additional check to use during start-up and • A photochronic lens darkens in ultraviolet • It offers improved ergonomics for operators, normal operations.” light exposure. who can stay in their seat and face forward, with their body in a natural position, instead • It allows consistent operation across WAVS gives operators views from of turning around to operate work tools. up to three cameras, providing all Cat product lines. either narrow or panoramic views • It improves productivity by reducing • It is fully supported by Caterpillar and of surroundings, work tool activity fatigue and allowing operators to work its dealers. and work area conditions. It also can comfortably for longer periods of time. work as an automated system—with While the goal of the system is • It improves performance by using the views that switch automatically to make operators safer through depending on the direction of the camera views to help determine where to increased visibility, several machine. stop, place the cutting edge or dump loads. unexpected benefits have emerged: • Its robust design is specifically designed Several countries and some U.S. states • It increases tire life by allowing operators to for rugged applications and environments. already have mandated camera systems see, avoid and warn others about potentially on large mining trucks. Cat is working on • It withstands vibrations and pressure dangerous rocks on the road or on loading integrating the WAVS system on its entire washing. and dump areas. product family, Larsen says. • An internal heater removes condensation, • It improves mine security by offering even snow and ice. more views of what’s happening on site.

Cat Global Mining / Viewpoint 23 camera views. Cat is currently investigating adding • Implementing intersection protocols, like lights that are integrated to activate automatically following a four-way stop rule where the person along with camera systems. on the right always goes first, or where an operator with a full load always has the right of way. Collision avoidance systems • Setting up primary or secondary roads to handle Collision detection systems require operators to 1 different types of traffic. look at a camera or heed a warning, then react. Cat is also studying collision avoidance, which takes • Using plastic signs instead of metal so radar can’t over control of the machine if an accident appears detect them. to be imminent. For example, systems may shut • Building straight roads instead of curved roads. down a machine if something is detected nearby, or • Having an established watering system to keep automatically apply brakes to avoid something in dust down. the machine’s path. • Requiring reduced speeds in low visibility “Caterpillar has been very conscious about not taking conditions (low light, storms, dust, etc.). control,” says Dave Hudson, Caterpillar Customer Safety Services manager. “We think the operators “The bottom line is we must do everything in our know best and we want them in control. They know power to make sure operators—and everyone else the best adjustments to make in a slide, for example. on the mine for that matter—have the best view This is a corporate level 6 Sigma project right now possible of their surroundings,” Hellige says. and we’re coming up with the Cat recommendation “It’s important every minute of the day on how to make the best use of technology without to pay attention to what’s going on taking away operator control.” around you. We can’t remove every Integrated technologies danger from a mine site—but we

1/ High intensity lighting All of these technology advancements help in the can do our best to make sure people enhances direct line of sight as well as camera views. quest for improved visibility, but Hudson says no are aware of them.” one system can get the job done all by itself. “It requires multiple technologies,” he says. “And they must be integrated with each other, and with the mining machine, to require as few operator inputs as possible. The operators know what they’re doing. These tools can help, but they’re not helping if they are a distraction.”

Improving mine sites for greater visibility

While technology enhancements are a key to improved visibility, there are some things mines can improve on their sites to give operators a better view of their surroundings.

Proper road design can have a large impact on operator visibility. Mines can improve visibility by:

• Eliminating intersections whenever possible, so drivers only have to look one way.

24 Cat Global Mining / Viewpoint / 2007: issue 1 Shin Caterpillar Mitsubishi ownership may change news F rom cat Executives from Caterpillar Inc., Mitsubishi Heavy Industries Ltd. (MHI) and Shin Caterpillar U.S. policymakers to establish a mandatory greenhouse gas emissions while improving the Mitsubishi Ltd. (SCM) have signed a nonbinding emissions reduction program to address capacity of the local power grid. It’s estimated memorandum of understanding to conclude climate change. Along with Caterpillar, the project will reduce emissions by 4.1 million a plan that would result in a new ownership members of the alliance—known as the U.S. metric tonnes (4.5 million short tons) over a structure for SCM. Under the plan, Caterpillar Climate Action Partnership (USCAP)—include 20-year period. would own the majority of the outstanding market leaders Alcoa, BP America, Duke shares of SCM, with MHI owning the remaining Energy, DuPont, General Electric, PG&E, PNM 777F mining truck shares. SCM is primarily involved in the design, Resources and four leading non-governmental showcased organizations—Environmental Defense, manufacture and sale of Caterpillar branded A Caterpillar 777F was on display June 30-July Natural Resources Defense Council, Pew construction and earthmoving equipment. SCM 11, 2006 at the Smithsonian Folklife Festival in Center on Global Climate Change and World also owns several Caterpillar dealers and Caterpillar Washington, D.C. The main showcase of this Resources Institute. rental stores located in key markets in Japan. year’s event was Alberta, Canada, which had its own pavilion—an Oil Sands tent—which Asia Pacific headquarters Caterpillar hosts described everything to do with oil, from moves to Beijing U.S. president exploration to reclamation. Cat dealer Finning Caterpillar hosted President George W. Bush Caterpillar will move its Asia Pacific Operations (Canada) and an association of Oil Sand at the company's manufacturing facility in East headquarters to Beijing, China, to provide a Production and Suppliers co-sponsored the Peoria, Illinois, in January 2007. The president sharper focus for excellence in this growing truck. The 777F was manufactured in Decatur, commended Caterpillar for demonstrating that region. Operational and sales success in China disassembled, transported on flatbed trucks U.S. companies can successfully compete on is a critical success factor for the company's and then reassembled for the festival. the world stage. During his visit, the president long-term growth and profitability. The move highlighted free trade agreements put in place also will contribute to the development and Caterpillar recognized during his administration, which have benefited ever-improving quality of life in the country. for sustainability companies like Cat. The machines and For the sixth consecutive year, Caterpillar has EPA certifies engine products made at Caterpillar facilities across been selected as a member of the Dow Jones equipped with ACERT® the U.S. are shipped throughout the world. Sustainability World Index, which identifies On Nov. 20, 2006, Caterpillar received best practices across the economic, social Purchase allows certification from the U.S. Environmental and environmental dimensions of corporate remanufacturing growth Protection Agency for the company’s first sustainability. Each of the Dow’s 2,500 Caterpillar's recent purchase of Franklin Power on-highway engine equipped with ACERT companies was invited to take part in the Products, Inc. and International Fuel Systems, Technology for 2007. The technology positions comprehensive assessment; just 318 met Inc. will provide a strong platform for future Cat to meet future EPA emissions regulations the standards. remanufacturing growth opportunities. Franklin and provides a long-term emissions solution Power Products is a leading remanufacturer of for the global on-highway engine market. The Retired Cat chairman on-highway light- and medium-duty truck diesel technology also powers off-highway engines, honored including Cat track-type tractors, track-type engines and engine components. International The Mining & Metallurgical Society of America loaders, pipelayers, hydraulic excavators, Fuel Systems is a premium provider of (MMSA) presented its Gold Medal Award to scrapers, compactors, articulated trucks, wheel remanufactured diesel engine components. retired Caterpillar Chairman Glen Barton during loaders, paving and forestry equipment, motor The acquired businesses will join 14 other a recent celebration held in conjunction with the graders and off-highway trucks. Caterpillar remanufacturing facilities located 2007 annual meeting of the Society for Mining, in the United States, Mexico, Europe and Metallurgy and Exploration Inc. (SME). The Gas project in China Asia. Caterpillar is one of the world's largest award, which has been given just 29 times since earns praise remanufacturers, recycling more than 2 billion its inception in 1914, is reserved for individuals pounds of material annually. A Caterpillar project to provide 60 methane- who make extraordinary contributions to gas-powered generator sets to produce 120 the mining industry. Past recipients include CEO calls for emissions megawatts of power at a Chinese coal mine scientists, educators, leaders and humanitarians reduction program has earned recognition from a senior White who have made the industry safer, more efficient Caterpillar Chairman and CEO Jim Owens House official. James Connaughton, chairman and more environmentally responsible. Barton joined a diverse group of businesses and of the White House Council on Environmental is the first person from the equipment side of environmental organizations to call on Quality, called the project a model of the mining business to be nominated for the commitment to help improve living conditions Gold Medal. Under his guidance and leadership, of people around the world. By capturing the Caterpillar formed Cat Global Mining, expanding » For more Caterpillar news, previously vented methane gas and converting its presence in the mining industry and visit www.cat.com it into electricity, the generator sets will reduce Cat Global Mining / Viewpoint 25 Viewpoint is published in English.

Text-only versions in Chinese, French, Spanish, Portuguese, and Russian are available at www.cat.com/mining.

Viewpoint es publicado en Ingles.

Versiones en Chino, Francés, Portugués, Español, y Ruso disponibles en texto únicamente a www.cat.com/mining.

评论采用英语发表。

汉语、法语、葡萄牙语、俄语和西班牙语的纯文字

版本可从www.cat.com/mining 网站获取。

Viewpoint est publié en Englais.

Les versions texte-seul sont disponibles en Chinois, en Français, en Portugais, en Espagnol, et en Russe à www.cat.com/mining.

Viewpoint é publicado em Inglês.

Versões somente em texto em Chinês, Francês, Português, Espanhol e Russo encontram-se disponíveis no site www.cat.com/mining.

Вьюпойнт публикуется только на английском языке.

Переводы текста на китайский, французский, португальский, русский и испанский языки находятся на сайте www.cat.com/mining.

For a subscription, please e-mail your contact information to [email protected]

www.cat.com

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

AEDQ0035