2010: issue 7

A publication of Caterpillar Global Mining

high-hour cat 5130 shovel moves its last coal

belle ayr trucks top 8,000 hours Improving efficiency underground: a challenge worth tackling

Doing things differently Osisko Mining sets aggressive goals to be the best

Women: An untapped resource for the global skills crisis We finish 2010 on a high note, with an improving economy and a growing demand for commodities. It’s an exciting time to be part of the mining industry.

This issue of Viewpoint contains something for in part by good maintenance practices and support everyone: From practical advice on lowering cost per from Cat dealer Wyoming Machinery. ton in the challenging environment of underground Our industry feature showcases women in all areas mines, to a farewell to a Cat® 5130 shovel that gave of the mining industry—a maintenance technician, more than 15 years of service to a coal mine. the director of a manufacturing facility, a mine Our mine feature showcases Osisko Mining owner, and a miner-to-be who is just starting to get Corporation, a company that exemplifies what we her feet wet. As we struggle with an aging work mean by “mining right.” Its Canadian Malartic force and an increasing need for skilled workers, mine is set to become the biggest open-pit gold having more women showing an interest in mining mine in Canada—and it’s located right in the is a great sign for the future. middle of a community. Thanks to Osisko’s open 2010 brought a renewed commitment from and honest communication with residents, not only Caterpillar to the mining industry. We updated are they accepting the mine, most are welcoming our strategy and under the leadership of new it with open arms. The economic benefits and CEO Doug Oberhelman, we’re investing in existing infrastructure improvements for Malartic are and new products and updating our facilities and tremendous. And so is the mine’s potential. Osisko processes to strengthen quality and shorten time- is partnering with Caterpillar and dealer Hewitt to-market. Equipment to get the best equipment and latest technologies that will help it become one of the This industry is critical to our business, as it is to world’s top-tier gold producers. yours. We promise to do all we can to make it a success for all of us. We also feature Alpha Coal West Belle Ayr coal mine in Wyoming, USA—where a fleet of 797B trucks is accumulating more than 8,000 operating hours a year, an impressive utilization rate made possible Chris Curfman President, Caterpillar Global Mining

Editorial Board: Tony Johnson, Editor. Jim Callahan, Australia; Matt Turner, Canada; Viewpoint is a publication of Cat Global Mining, Mary Wang, China; Martin Gill, CIS; David Mohr, Europe, Africa and the producer of one of the mining industry’s broadest Middle East; John Bergin, Southeast Asia; Keith Malison, Latin America; lines of equipment and technology. Caterpillar Brad Beyer, United States; David Rea, Large Mining Trucks; Mel Busch, serves the worldwide mining community through Large Track-Type Tractors; Randy Aneloski, Large Wheel Loaders; Yon its vast dealer network and a single division called Chong / Chris Gehner, Underground Machines; Kent Clifton, Support; Ken Caterpillar Global Mining, headquartered in Edwards, Safety & Sustainability; Tim Siekmann, Product Support; Greg Peoria, USA, with additional offices worldwide. Gardner/Dan Hellige/Andy Trent, Global Accounts; Renee Balaco/Charlie Zimmerman, Mining Marketing; Roschelle McCoy, Technology; Converse Marketing, Publisher.

c Cat Global Mining / Viewpoint / 2010: issue 7 table of contents

high-hour cat 5130 shovel moves its last coal 32

Improving efficiency underground: a challenge worth tackling 2 Women: An untapped resource for the global skills crisis 22

belle ayr trucks top 8,000 hours 28

OSisko: a benchmark in responsible mining 14

Osisko Mining sets aggressive goals to be the best doing things differently 6

News from caterpillar 33

Cat Global Mining / Viewpoint 1 Underground mines are one of the most challenging environments for operators and their equipment. Many plunge to great depths with demanding conditions that affect equipment performance. Even the process of getting machines down to work adds a great deal of logistics and costs. IMPROVING eFFICIENCY UNDERGROUND : A CHALLENGE WORTH TACKLING Despite their challenging “I like things that are almost free and easy to environments, underground implement,” Widdifield says. “Small changes in operations add up to big benefits. Things like miners are always on the lookout operator efficiency, cycle times and payload have for ways to improve loading and the greatest impact on cost per ton—and they’re haulage performance to lower easy to evaluate, change and manage.”

cost per ton. EVALUATE OPERATIONS

“Unlike our surface counterparts, who can look “The only real way to find areas to improve out over the pit or use GPS tracking to monitor is to look at what you’re already doing,” says performance, our fleets are truly out of sight,” Widdifield. “You need to see where you are before says Caterpillar underground efficiency expert you can make any changes. Pay attention. Look Larry Widdifield. “Evaluating performance takes at what’s happening around you. Document talent to extract information about the fleet and issues you see and develop an action plan to make operator performance. But it can be done—and improvements.” it’s definitely worth doing.” The goal is to confirm you’re getting the Loading and haulage are large contributors to maximum out of your equipment; set and cost per ton, and they’re impacted by a number achieve new benchmarks for safety, efficiency of factors—including mine design, application, and profitability; and set new goals for more performance—whether that’s one more bucket or product quality and maintenance. Aside from the one more truck load per shift. environment in which machines operate, almost all of these factors can be managed and improved Areas to evaluate include: to lower cost per ton. Even simple improvements • Machine / system sizing and selection. Is the can have a significant impact. loader matched to the truck? Is the LHD the right size for the job?

2 Cat Global Mining / Viewpoint / 2010: issue 7 • Material density for body and bucket selection. “Now we can focus on where to approach • Operating techniques. Are operators properly improvements,” says Widdifield. “We either work trained? Are they working efficiently? on training or machine selection.” • Haul road design and maintenance. Caterpillar has developed practical benchmarking • Payload targets / accuracy. Do you know the data to enable underground mines to get the most payload in the truck? Is the loader bucket full? out of their Cat equipment and to provide guidance • Blasting. Is the muck blasted properly, so on assessing haul road design and maintenance that operators can single-pass load their bucket supports sound industry practice. in less than 12 seconds? A high-level overview is included below; to receive • Speed. Are trucks traveling as fast as they can? a copy of “A Reference Guide to Mining Machine Applications,” please contact your dealer and Conduct a production study reference media number AEXQ0030-02. Conducting a production study is one way to evaluate operations. Production studies measure OPTIMIZING UNDERGROUND the following: MINING TRUCK PERFORMANCE

• Loading—Time when the bucket first contacts Truck exchange time is a key to improving the pile to when the operator puts the machine underground truck performance. Truck exchange in reverse time is the elapsed time from when a loaded • Haul—Travel from loading area to dumping area truck receives its last loading pass until the next • Dump—Time to get rid of the load truck receives its first loading pass. Obviously, the shorter that cycle is, the greater the opportunity for • Return—Travel from the dump area back to the load area more cycles per shift. The best practices target is 42 seconds per cycle. It’s important to match the • Total Time—Sum of all the above (a full cycle) truck fleet to the size of the loader to ensure the “Go into the mine and conduct a maximum output for that area is achieved. one- to two-hour production study,” “Don’t forget that your fleet is as fast as your slowest Widdifield suggests. “It doesn’t truck,” says Widdifield. “It doesn’t matter if you’ve got a new, faster truck or a more skilled operator. matter if you sit on a rock with a The slowest truck in the fleet is the one the rest of stop watch, ride in the truck with those trucks will be waiting behind. You also want to an operator, or use technology to make sure the loader has an adequate fleet of trucks evaluate performance. A production so he’s not sitting there with no one to load.” study in your operation will give Ensure proper positioning you tons per hour in the actual • Have the loader operator spot the truck. environment.” • Ensure the truck doesn’t have to turn around once it is loaded. Performance is influenced by both the operator • Position the truck away from and the machine. The operator-influenced time can overhead services. be a result of the operator’s training, a different approach to the muck pile, or a different digging • Position for fastest cycle times characteristic of his loader. Dumping is affected by (wheel loaders work best with a truck his approach to the truck, load placement, or the positioned 45 degrees to the face). loader and truck match. Machine-influenced time • Keep rear tires away from loose rocks is a result of how the loader accelerates and how its and out of depressions. hydraulics and powertrain are matched.

Cat Global Mining / Viewpoint 3 Ensure proper payload placement and management to the truck size and drop height should be minimized. Material should be well shot. Proper load placement is critical to improving Unfavorable conditions include an uneven, debris- underground operations. The load should be littered floor; poor feed control; and tight access. centered over the hoist cylinders or on the body arrow, as well on the center line of the body. “Make sure the truck has adequate clearance at the Ensure enough freeboard to minimize spillage entrance and under the chute,” says Widdifield. from the sides through corners and from the rear “The exit from the chute should give the operator of the body on grades. good visibility for oncoming traffic. The operator should also be able to see his payload.” Target your payload based on the manufacturer’s recommended specification for front and rear axle Consider the dump area weight distribution. Establish a load placement The dump site is an area where trucks can lose pattern of first bucket back, then front, then center. valuable time. “Remember, trucks don’t like to wait And be aware of carry-back. “There’s no sense while the hopper empties or the guy on the rock documenting that a truck left with 40 tons if he’s breaker gets rid of a piece of oversized material,” returning with 5 tons stuck in the corners,” says Widdifield points out. “Don’t waste time due to Widdifield. bunching. Spread your fleet out in the mine. Caterpillar has identified an optimal load Send more trucks to the farthest loader.” management policy called 10/10/20. The rule states, “No more than 10 percent of payloads may exceed OPTIMIZING LHD LOADER PERFORMANCE 1.1 times the truck’s target payload and no single The optimum cycle time for LHD loaders is 28 to 42 payload shall ever exceed 1.2 times the maximum seconds, with an average of 35 seconds. The most target payload.” efficient pass match is three to four passes.

“Another way to look at it is that no more than 10 Evaluate operator technique percent of loads may exceed 10 percent over target Caterpillar recommends watching loader payload and no loads may exceed 20 percent over operators for proper technique: target payload,” explains Widdifield. • Enter the pile straight on with bucket floor “Proper payload management is not only important parallel to draw point. to the health of your equipment, it is also important • Keep frame straight while digging. “Overloading to the health and safety of your employees,” he says. • Lift the bucket slightly while crowding “That’s why it is important to adhere to the 10/10/20 reduces the the material. rule. When you exceed target payload plus 20 • Ensure lift arms are horizontal when lives of machine percent you have exceeded the steering and braking the bucket is full. components and certification of the truck.” • Stay in the face for 12 seconds or less. tires, and can Evaluating a chute loading site • Operate the machine in first gear, at full throttle. change the center Some underground mines install chutes designed • Maintain proper bucket kick-out settings. to load trucks quickly. It’s important to provide of gravity for the • Keep spillage to a minimum. vehicle, creating a adequate entry and exit areas and provide the operator a way to control the chute. “If he has to • Keep the floor clean and smooth; clean the tipping hazard.” get out of the truck, walk up a set of stairs and floor while approaching face when necessary –larry widdifield, caterpillar activate the chute, he is losing valuable time,” with minimum floor contact. says Widdifield. The bucket should always be equipped with Favorable conditions for chutes include a stable, Ground Engaging Tools (GET) that suit the material level floor with an easy entry under the chute. being dug. Never operate a worn GET or bare The chute size and discharge should be matched cutting edge.

4 Cat Global Mining / Viewpoint / 2010: issue 7 Provide optimal site conditions

LHDs perform best in areas where floors are level, dry, smooth and firm. Sufficient crossfall and drainage will minimize tire damage. Additional considerations include well-fragmented materials that minimize crowding time, particularly in the toe-area of the cut; a lower face profile; and the ability to work multiple faces. LHDs will not perform as well in poor underfoot conditions, tight load areas, and when moving poorly shot material.

EVALUATING HAUL ROADS

Haul roads have a profound impact on underground machine performance—and they’re an area where small improvements can have a big impact on cycle time. The three key factors in the design of underground haul roads are material quality, design and maintenance. Grade should be smooth and constant with rolling resistance kept to a minimum. Haul Road design and maintenance Rolling resistance affects productivity because it doesn’t allow Design considerations: equipment to travel at the optimum speed for maximum Grade productivity. The chart below shows how an increase in tire • Maintain smooth grade penetration can increase rolling resistance: and transitions

Rolling Resistance • Maintain consistent percentage • Hard, well-maintained road 1.5% • Remember a 15 percent nominal grade with • Well-maintained road with flex 3% 18 percent lifts may prevent • 25 mm/1 in tire penetration 4% the truck from up-shifting Design considerations: • 50 mm/2 in tire penetration 5% Single cross slope • 100 mm/4 in tire penetration 8% • Flats • 200 mm/8 in tire penetration 14% - Apply minimum slope to maintain drainage “Each increase in rolling resistance has a direct - Avoid areas where drainage impact on the speed of travel,” Widdifield says. cross flow is required; a “Sometimes rolling resistance causes a varying small bore hole may be required load on the engine. So not only won’t we obtain our desired speed—we’re also wearing out the - Use constant cross fall only when conditions are transmission.” extremely dry

• Grades FOLLOWING BEST PRACTICES - Minimal cross-slope required Improving loading and haulage efficiency is the easiest way Maintenance to lower cost per ton. By following best practices for operator considerations performance, cycle times and payload—and ensuring good • Begin at face; end at dump haul road design and maintenance—underground mines can • Truck should travel at a experience greater profitability. reasonable and constant speed “The challenges we face are great,” Widdifield says. “But don’t • Where trucks slow down, use that as an excuse not to get out and look for improvements. evaluate the cause and repair The conditions of your operation drive your costs and affect your • Remove and repair wet / soft spots productivity. Find the right issues and work on them. There are some huge gains to be had for very little investment.”

Cat Global Mining / Viewpoint 5 Doing things differently osisko Mining sets aggressive goals to be the best

6 Cat Global Mining / Viewpoint / 2010: issue 7 When Osisko’s Canadian Malartic mine begins producing gold in mid- 2011, it will become the biggest open-pit gold mine in Canada and make Osisko one of the top-tier gold producers in the world.

Bigger. Better. Different. From the beginning, the developers of Canadian Malartic mine in Quebec, Canada, had aggressive goals in mind. And when Osisko Mining Corporation begins producing gold in mid-2011, there’s little doubt in the mining industry that the company will succeed.

“The mining industry is usually conservative,” says Mine Manager François Vézina. “We’re not. Our goal is to have the latest of everything. We are being open-minded, and we’re pushing that for several reasons: We want to minimize our impact on the environment. And we want to have the best, most efficient operations possible.”

This site under construction will be Canada’s biggest open-pit gold mine. With a gold deposit of nearly 9 million ounces and a goal to produce over 600,000 ounces of gold annually for more than 12 years, the stage is set for Osisko to become one of the top-tier gold producers in the world. “We set about to make Osisko a premium gold producer,” says Osisko President and CEO Sean Roosen. “And we’re on target to make that happen. We were able to come up with a new geological model and now we’re successfully moving from an exploration company to a mining company.”

BUILDING PARTNERSHIPS

Canadian Malartic benefits from being in one of North America’s richest gold regions. And while the geology itself will have a major impact on the mine’s success, the approach taken in the development of this site will be a key contributor.

Cat Global Mining / Viewpoint 7 “We’ve always prided ourselves on being “We’re constantly talking,” says Vézina. “We talk progressive in terms of integrating mining about service, sales, safety, parts and equipment and community, and being proactive at the options. We’re building confidence in each other.” beginning of a project,” says Roosen. “We took Hewitt began working with Osisko long before the this to heart right from the beginning. This is a company purchased its first piece of equipment. partnership with the community, our suppliers, “We knew some of the key players from their our employees and our company. We’re all in other projects,” says William Harvey, Hewitt this together—and together, we’ll all win.” Mining Manager for the Canadian Malartic project. The project is one of the most socially sensitive “And when we learned they were developing this in Canadian mining history, given its location project, we started working closely with the Osisko in the heart of the Malartic community. But team on different fleet scenarios and financing bringing residents on board with a partnership requirements.” approach has been key to its rapid success. Caterpillar Mining Manager George Moubayed “We went door to door and said to people that if was also part of the early discussions. “We put you want this project, you’ve got to help us fight for it,” Roosen has said. “And they did.” in a lot of man-hours and conducted simulations. We used Cat® Fleet In addition to community Production and Cost Osisko’s purchase of the support, Osisko made it a Extended High Lift option for priority to bring in investors, Analysis (FPC) software its new Cat® 994F wheel loader will enable the machine to more suppliers, contractors and to determine fleet efficiently load its 793F trucks by providing 1075 mm (42 partners who are willing to requirements and predict inches) more dump clearance. work together with Canadian long-term productivity Malartic’s success and equipment costs. as the goal. At that time, we didn’t Contractors were even know if they would selected not in buy Cat equipment.” competition with These strong partnerships one another, but reflect Osisko’s corporate values. “We focus on based on what they could bring to the developing good relationships,” says Osisko partnership, says Canadian Malartic Director of Communications Hélène Thibault. General Manager Denis Cimon. “Of course there are legalities, and contracts to sign “All our suppliers are from the area, and guarantees to make. But the biggest insurance and the bids weren’t competitive. of a contract is the name of the company.” We know what we want. We know the contractors and providers. We Problems are a normal part of operations, says selected based on their expertise Cimon. “If our trucks aren’t running, we’re in and split the pie.” trouble,” he says. “But equipment problems hurt Caterpillar and Hewitt, too. Cat’s name is on Two of those partners are Caterpillar the trucks, and Hewitt is responsible for their Inc. and Hewitt Equipment Ltd., the performance. We know they care about how this local Cat dealer providing the majority equipment runs. Of course, we’re all here to of the site’s heavy equipment and make money. But beyond that, we have a good state-of-the-art mining technologies, relationship. We face problems together, as a group. as well as support, maintenance and Everyone wins.” operator training.

8 Cat Global Mining / Viewpoint / 2010: issue 7

FOCUSING ON PRODUCTIVITY

As committed as Osisko is to bringing good things to the people of Malartic and minimizing its impact on the environment there, the company is equally dedicated to becoming one of the world’s most productive mines. And one way to achieve that is by having the most advanced equipment and technology available for mining. “New techniques, new equipment, Canadian Malartic will leverage Cat MineStar™ technology new instruments, better mining to determine where trucks should be going and how much material they should be loading. Fleets can be managed methods—we’re looking at every remotely as data is transmitted back to a main control room. A touch screen display provides operators with an on-board possible way to be as productive as navigation system. MineStar also integrates with other technology products at the site. possible,” says Paul Johnson, General Manager, Technical Services. “This 1 mine will move 200,000 tons a day. We need the best equipment on the market, and we want to leverage technology to use that equipment in the most efficient manner possible.” 2 2 That’s one reason Canadian Malartic will be operating a fleet of up to 26 Cat 793F mining trucks, the fifth generation of the 227-tonne (250-short-ton) 793. The site is the first in the world to use production F Series trucks. “It has a better engine, higher horsepower, and operates more efficiently,” says Vézina. The 793F is powered by the 16-cylinder Cat C175-16 diesel engine, which meets EPA Tier 2 1/ A controller uses the MineStar system to manage emission requirements, and comes with an optional operations at Canadian Malartic mine. quiet pack to reduce external noise. 2/ MineStar delivers real-time Osisko is also the first to purchase the Extended productivity information to the operator on the in-cab display, High Lift (EHL) option for the Cat 994F wheel as shown in the 793F (above), and the 994F (right). loader, which enables the machine to load the 793 more efficiently. The EHL linkage provides 736 mm (29 inches) more dump clearance compared to the high lift linkage. For faster cycle times, the operator can back the 994F away from the truck without

10 Cat Global Mining / Viewpoint / 2010: issue 7 racking back the bucket. The additional lift also Technology Marketing Manager Brent Deener, enables the operator to dump the last pass without who worked with Osisko in the selection of its pushing material. equipment technologies. “The system takes machine data gathered in the field, existing ore “We like doing things differently and we like being control and material identification information, and first,” says Vézina. “We were looking for the most links it to business enterprise systems at the site.” productive equipment on the market and we believe we found it. We also wanted an integrated solution Cimon believes this technology is necessary for for our equipment and we were able to get that by Osisko to achieve its aggressive production goals. partnering with Hewitt and Caterpillar.” “An operation this size takes synchronization,” he says. “And the only way to do that is through Harvey believes Osisko’s focus on integration will technology. We think MineStar is one of the best be a key to the mine’s success. “This is a true technologies we could buy. Now we’re challenging integrated solution,” he says. “Loading, hauling, Hewitt and Caterpillar to help us take it to the next power, lift trucks, rentals, technologies—with level and figure out how to use that data to increase Caterpillar, we’re able to provide them all. Cat profitability.” Financial even came on board to provide financing. We’re able to deliver a one-source solution.” Osisko also selected the Cat Computer Aided Earthmoving System (CAES), which uses satellite Through its structured finance program, Cat technology, machine-mounted components, a radio Financial offers customized solutions that range network and office management software to deliver from leasing and project financing to specialized real-time productivity information to machine structured financing with an emphasis on small operators on an in-cab display. mines and start-ups. The group is focused on greenfield or brownfield projects where credit “CAES gives operators the data they need to decisions are based on the projected future cash maximize the efficiency of the machine,” says flow of the business. The structured finance Deener. The system monitors ore bodies, bench program provided a US$83 million structured lease height, volume of material cut and filled, and cycle for Osisko. times. It can be used on a variety of machines and in dozens of applications. LEVERAGING TECHNOLOGY Osisko will leverage CAES on its Cat D10 track- In addition to choosing the most productive type-tractors to improve grade control during equipment it can find, Osisko is relying on a construction of the site—building roads and number of state-of-the-art technologies to maximize benches, constructing berms and dumps, etc. productivity. For example, Canadian Malartic’s mining fleet—haulage trucks, electric hydraulic “They’ll also benefit from using this Cat technology shovels, drills, graders and dozers—will be the first on shovels,” says Deener. “CAES will enable bench in Quebec to be outfitted with MineStar. MineStar elevation as well as automatically identify the determines where trucks should be going and how type and quality of material being loaded. That much material they should be loading throughout information allows MineStar to send the truck the day. Because the technology tracks materials, to the right location.” the ore containing gold and waste all go to the right Canadian Malartic’s drills, too, will benefit from place. Increased production is another benefit: Cat technologies. The Cat AQUILA Drill System Trucks are assigned with accuracy and consistency, uses high-precision GPS to direct the execution considering downstream events that human minds of drill patterns. The system offers reporting on cannot perceive. machine and operator productivity and enables “MineStar adds additional capabilities to improve remote, real-time supervision of drilling activity and overall mining operations,” says Cat Mining

Cat Global Mining / Viewpoint 11 1 1

1/ Osisko has constructed a state-of-the-art maintenance shop to handle maintenance and repair of the equipment fleet at Canadian Malartic mine.

2/ A Cat D10T track-type tractor prepares the site for a mid-2011 start-up.

2 blast planning. It also records and measures drill equipment service and maintenance, Hewitt and Assembling parameters to optimize machine utilization. Osisko have a service agreement for some labor and equipment to provide Scheduled Oil Sampling (SOS), a method Their dealer-customer In addition to efficiency gains, accurate drilling partnership is so seamless of evaluating engine, hydraulic and drivetrain oil for is especially important given the mine’s close that Hewitt Equipment Ltd. early warning signs of damage. Once the site is in has its own facility on Osisko’s proximity to the town. property at Canadian Malartic. production and the equipment is running around Osisko built a dedicated pad for “They need to engineer their blasts for maximum the clock, Harvey expects the relationship to evolve. assembly of the trucks, loaders rock fragmentation with minimum vibration effects and shovels. “We’ll work together with Caterpillar to support the on the town,” says Deener. “They want to drill The facility truly exemplifies site’s technology products,” says Harvey. “Hewitt best practices, says William enough to get done what they need to get done—but Harvey of Hewitt. is engaged in the installation no more. AQUILA is helping to make that possible.” “It’s on Osisko’s and deployment process and property,” he says. The site is employing AQUILA on a large blasthole “But our foreman has we will be the key point of authority for that gate. drill as well as several smaller Cubex articulated contact.” drills. Using AQUILA on Cubex drills is a new The number Additional resources include application—in fact, Osisko saw the value and one benefit the Cat Dealer Support decided to adopt the technology while it was still is in health Network and on-site resources in a pre-production phase, says Deener. provided by Caterpillar. and safety, Osisko also is leveraging the latest technologies Caterpillar and Hewitt will also keeping for its mill operations, says Cimon. “There are two support the mine’s efforts to assembly mills this size in North America—one in Mexico integrate Cat technologies into away from and ours,” he says. “We’re going to be producing all the equipment on site. For construction of the 55000 tonnes (60,627 short tons) a day. We need the example, the mine would like to take data from its mine site. best technologies to make that possible.” non Cat equipment and have it flow back through During assembly, we have An added benefit from the use of technologies is the MineStar system. four to six people working on equipment, four welders, a the reduction in manpower required to operate the LOOKING TO THE FUTURE crane operator, tire installer, fire mine. “It’s a different way of working,” says Cimon. suppression team, an autolube The current focus at Canadian Malartic is to finish team. We had one of our “It still takes people; they’re just working more suppliers erect a facility on the efficiently and they have a higher degree of skill. building the site and to hire enough employees pad for welding truck bodies. and get them trained in time for a second quarter We have our technicians there, It allows us to produce more.” our tools, our lunchroom and 2011 start-up. As production begins and Osisko office.” Osisko has aggressive production goals and expects starts turning a profit, exploration will continue It’s also good for Osisko because to ramp up quickly once operations begin. These as the company looks for more gold. “We’re still it’s a turnkey solution, says efficiency-enabling technologies will help meet George Moubayed of Caterpillar. exploring,” says Cimon. “We’re investing US$400 “They’ve given Hewitt all those goals, and they will also help Osisko remain million in the mill alone. We’d love to keep it responsibility and don’t have to provide manpower.” cost effective even when commodity prices drop. running 25 years if we can.”

PROVIDING SUPPORT Osisko’s partners are excited by the possibilities. “This is one of the largest project I’ve ever been As part of their partnership, Hewitt and Caterpillar involved in,” says Jim Hewitt, President and CEO will support equipment and help Osisko leverage of Hewitt Equipment. “The people in charge of this technologies for the maximum benefit. company and this project know what they’re doing. Hewitt will support Canadian Malartic primarily They’re experts in their field and they’ve selected from its Val d’Or branch, which is just 32 kilometers what we believe is the best equipment fleet in the (20 miles) away, providing parts inventory and industry. We’re proud to be associated with them, components. The dealership will also have a and it’s a great relationship.” Coordinator and Account Manager on site. While Osisko plans to do the majority of its own

Cat Global Mining / Viewpoint 13 Osisko: A benchmark in responsible mining

14 Cat Global Mining / Viewpoint / issue 7 left/ A 15-meter-high (49-foot-high) “green wall” will reduce noise and the visual impact of mining operations at Canadian Malartic mine, located in the heart of the community of Malartic.

Sustainable Development. Two words that mean different things to different entities. For Osisko Mining Corporation’s Canadian Malartic mine, it has meant a series of actions, measures, ideas and details that helped build the project as a balance between the economy, the environment, and the social and community components.

As Osisko begins the countdown to the first gold pour in 2011, the company is more resolved than ever to work with the community and make Canadian Malartic mine a new benchmark in responsible mining.

COMMUNICATING OPENLY

The developers of Canadian Malartic mine have some important advice for mining companies thinking of creating a mine in the middle of a town: Communicate. Talk to everyone—frequently, openly and honestly. And keep doing it.

Canadian Malartic developers are the first to admit the many challenges they faced as they began building this large open-pit gold mine in Quebec, Canada—right in the middle of the town of Malartic. They have never hidden any of the challenges from their business partners, their suppliers, the people of Malartic or the media. “The mining industry has had a bad reputation,” says Mine Manager François Vézina. “Our goal was to change that.”

That push started with the company tagline: A Fresh Outlook on Mining. “This mine itself is quite different and requires a fresh outlook,” says Canadian Malartic General Manager Denis Cimon. “There has been mining in the Malartic region for 80 years. And back then, mining companies didn’t follow all the best practices. We wanted to change the image of mining here.”

The biggest differentiator at Osisko is, of course, the location: in the heart of a community. In fact, it’s because of that challenge that everything else about Osisko has been approached a little bit differently.

“When this mine was in its infancy, the leadership team started communicating with the public,” says Osisko Director of Communications Hélène Thibault. “We knew that getting community support for this project was the most important thing we could do to ensure its success. Mining is different than it was five, 10, 15 years a go. Now there are expectations from people that we have to manage. We must start with them, making sure their expectations are Cat Global Mining / Viewpoint 15 reasonable and not beyond what we can do. We equipment we’re using explain where we are and share the challenges. is like nothing most of We’re all in this together.” these people have ever seen.” The creation of a Community Consultation Group helps Osisko listen and respond to residents’ “From the concerns, and a Community Relations Centre, beginning, located in the heart of Malartic, opened its doors we wanted in March 2008 to facilitate interaction between to make sure residents and Osisko representatives. 1 the town accepted us,” says Thibault. 2 “We inform and we listen; we’re transparent and honest.” And it has worked. A few years ago the project was barely on the drawing board. With the support of the community, Osisko quickly earned the legal and social license it needed to build, and construction is progressing rapidly. And next year, the project will officially become the biggest open-pit gold mine in Canada.

RELOCATING A NEIGHBORHOOD 3 3 Mines always have an impact on the communities nearby. But not many are like Osisko. About 15 percent of Malartic’s 1,600 homes were located over the old mine workings, which means Osisko had to demolish some homes and buildings, and physically move over 140 to access the precious ore beneath.

The Community Consultation Group interacted with an urban planner hired to develop the new suburb. Residents were surveyed to find where they In addition to relocating over Other communication activities include public would like to live and what they wanted to see in the 140 homes, Osisko invested in five new buildings for the presentations and open houses where residents new community. Relocation plans were available community of Malartic. The are invited to tour the site and see progress for at the community relations office for anyone new facilities will feature the most advanced use of themselves. The first open house attracted 400 who would like to see them. The collaboration of green technology, including geothermal central heating visitors, the second over 1,400, and the most residents, the town council and Osisko was crucial systems. recent event attracted 2,400 people—a significant to the success of the resettlement. 1/ Community center and number considering the population of Malartic is auditorium “We could have just bought their houses, but that just over 3,000. 2/ Child daycare center wouldn’t have been sustainable,” says Thibault. for 75 children An open pit mine of this size—expected to produce “So we relocated them. It was more expensive, but 3/ A new elementary school 55000 tonnes (60,627 short tons) a day in an area it was worth it. If we had purchased the houses and where 4500 tonnes (4,960 short tons) is typical— demolished them, people would have moved to is at times incomprehensible to residents. “This nearby cities and purchased houses there. Instead mine is going to be seven times bigger than the they are staying in Malartic and the population biggest thing around here,” says Vézina. “There’s no is growing.” frame of reference for something this big. Even the

16 Cat Global Mining / Viewpoint / 2010: issue 7 Infrastructure work for the new neighborhood says Vézina. “The population had decreased and a north of town was completed in December 2008; the lot of small businesses were gone.” resettlement of the homes and the construction of Thanks to construction of the new mine, the five institutional buildings were completed in 2010. unemployment rate has dropped to about 15 percent “We’ve built a lot of infrastructure,” says Thibault. and may fall even lower as Osisko begins producing “And the neighborhood wasn’t just relocated—it ore and delivers on its goal to hire 75 percent of its was improved. The new school, for example, has the staff from Malartic and the surrounding area. latest technology and is more advanced than many More than 1,000 people a day have been working of the schools in the province of Quebec. It has during the construction phase, says Cimon, and The new subdivision features features any school would love to have.” Osisko is still in the midst of a recruiting phase for new roads, sidewalks, an improved golf course and other One goal of the resettlement was to reuse as much mine operations. In June 2009, Osisko held a career infrastructure. It includes 160 material from the demolition as possible. day for residents of the region, catering primarily to homes/apartment buildings, a state-of-the-art elementary A considerable amount of material, such as doors, those from Malartic. More than 400 interviews were school, a building for adult windows and cabinets, was recovered and sold conducted, and Osisko built a candidate bank with education and a community center, a childcare center, 20 locally. Some 4500 tonnes (4,960 short tons) of more than 15,000 applications. The sheer volume of low-rent housing units and a recovered concrete are being used as backfill applicants is evidence of the widespread appeal of long-term care facility. Osisko estimates an expenditure of during construction of a green wall separating the project, says Cimon. over US$130 million on the the subdivision from the mine site. More than whole relocation. 95 percent of the materials from the demolition of one of the schools and the community center was recycled, and all road surfacing material was recovered and reused during construction work.

The Community Consultation Group has reported that 85 percent of the population affected by the resettlement feels that it brought one or more improvements to their residential environment. And while the resettlement can be considered a success, it wasn’t easy.

“We’re a mining company. We’re trained to move earth and retrieve the gold,” explains Thibault. “There was no book on how to do a resettlement so we had to learn along the way.”

MAXIMIZING THE ECONOMIC IMPACT

Why would the residents of a small community like Malartic embrace a mine that literally took over their small town? The economy was a major reason. Before Osisko came to town, Malartic was in the midst of an economic depression, with an unemployment rate that stood at more than 40 percent.

“The village was filled with people who worked in previous mines in the rich Abitibi mining region, but there hasn’t been a mine since the mid-1990s,”

Cat Global Mining / Viewpoint 17 1 2 3

Training is already under The mine is helping to bring new businesses to way for newly hired heavy town and is supporting existing companies, as well. equipment operators, “For example, we’re purchasing work boots and health and safety workers, clothes for our workers from a store in Malartic,” and mill employees. says Vézina. “We’re also pushing our providers to Cat dealer Hewitt build their shops and warehouses here—and that’s Equipment Limited, good for everyone. Our costs are lower when our based in Montreal with a providers are here, and the community benefits facility in nearby Val d’Or, from new jobs and new revenue.” Cat dealer Hewitt, has provided operator for example, opened a Cat Rental Store nearby to training. Caterpillar has support the mine, and staffs it with local residents. also provided trainers While Malartic will see the greatest economic as well as Cat Virtual benefit, the economic impact of Osisko will 4 Training simulators. be felt throughout Quebec. From the start of

1/ Visitors attend a meeting at “One of their shovel operators came from a fly-in, the exploration work in 2005 to the complete Canadian Malartic. The new mine fly-out mine, and he is one of the most experienced rehabilitation of the mine once it closes around has helped reduce unemployment from 40 percent to about 15 operators in the industry,” says Hewitt Mining 2024, Osisko estimates it will have invested a total of percent. Manager William Harvey. “There are also new US$32 billion—82 percent of which will be within 2/ A future equipment operator experiences what it’s like to drive employees who were working at the local grocery Quebec. In 2009 alone, Osisko invested more than a large mining truck in a Cat® store, and will now have a career in mining. These US$315 million in construction and exploration. Virtual Training simulator. employees have the ability to work on new, state-of- 3/ Dust will be managed in MINIMIZING THE IMPACT ON PEOPLE several ways, including having the-art equipment in a big mine, and still be home water trucks like this Cat AND THEIR ENVIRONMENT articulated truck on site at all every night.” times. While a large number of homes were moved Osisko estimates the project will bring more than 4/ The first new truck operators and some were purchased by Osisko to free the hired to work in the new mine 3,300 new jobs to the region—908 jobs per year of property for mining, Malartic will still have the were two area women who the construction phase and about 400 jobs per year previously drove school buses. country’s biggest open-pit gold mine in its backyard. for the mining operations. Expenditures of US$165 Osisko is committed to doing all it can to minimize million per year are expected to support these that impact. positions, including 300 jobs a year with suppliers in the area. Reducing carbon footprint

Along with an increase in employment, Osisko’s Osisko’s sustainable development program is “buy local” policy is having a significant impact guided by this motto: Toward a carbon neutral on area businesses. Many small and medium footprint. “Always aware of our responsibilities, businesses in Malartic are directly involved in the and convinced that the industry as a whole will construction project. In addition to benefiting need to become accountable for its greenhouse gas from the immediate economic spin-offs of this emissions in the near future, we set up projects work, businesses were also able to develop specific that will reduce greenhouse gases generated by expertise in the mining and construction sectors. our operations,” says Vice President of Sustainable

18 Cat Global Mining / Viewpoint / 2010: issue 7 Development Jean- wall” designed to reduce noise as well as the visual Sébastien David. impact of mining operations. This 1.3-km (0.8-mile) landscaped ridge is a key element in Osisko’s plan Osisko will employ to reduce negative impacts on the local population conservation measures during mine construction and production. Similar and the latest ridges that are 4 meters (13 feet) high will be placed technologies to reduce along other main circulation routes. its carbon footprint. The site will use hydro- Controlling dust electric power to reduce Keeping dust down and away from residential the need for fossil fuels. Electric shovels and a areas is another priority. The mine will perform new generation of Cat trucks that meet the U.S. continuous monitoring of air quality and employ Environmental Protection Agency’s Tier 2 standards a number of standard management measures, will lessen carbon emissions during production. A including keeping several water trucks on site 1.4-kilometer (1-mile) conveyor between the crusher at all times and watering drill holes in the areas and the processor will reduce the use of fuel. nearest the town. Conveyor belts, stockpiles and the Another endeavor to reduce carbon footprint is the crushing complex will all be covered. Osisko Forest project. The project will consist of For several days in the summer of 2010, a dry spell a reforestation program in the region and will be made it very difficult to manage the dust generated jointly implemented by officials of the Valleé-de-l’Or by construction work. Additional water trucks were regional municipality. The project will involve the added to solve the immediate problem, but the landscaping and reforestation of 100 hectares (247 situation led the mine to rethink its approach to acres) of land each year for nine years. managing and reducing dust. Reducing noise “We’re considering installing a line of sprinklers Reducing noise during the construction phase, and along the road between the crusher and the future once production begins, has been a high priority for pit to improve the system’s efficiency while reducing Osisko. The company chose to use electric drills, the need for water trucks,” says Vézina. “The site which are quieter than mechanical drills, during also will use fog cannons and snow cannons.” the construction phase. And instead of operating Conserving water around the clock, drills operate just 12 hours a day, six days a week. Noise levels are constantly Osisko is constructing a pond to avoid taking water monitored. from surrounding waterways and to maximize water recycling. The pond will collect rain, snow melt Noise was also a consideration during the selection and water pumped from the open pit. With this of mining equipment. Caterpillar has developed reserve, Osisko will not need to use clean water for an extra quiet package that will be retrofitted to ore processing. Construction of a second basin will Osisko’s current fleet of 793F trucks and included reduce the amount of effluent, moving the site from the factory on future 793F orders. Noise closer to its goal of zero net discharge. reduction was also one of the primary reasons the site selected O&K RH340E electric hydraulic “We’ve almost reached equilibrium shovels, which are powered by electric motors that as far as water is concerned,” are much quieter than diesel engines and better for says Cimon. “We control every the environment. The mine also chose smaller drill drop of water. That’s what we’ll rigs for the first pit benches to lessen noise. use to run the mine. We don’t Once the mining phase begins, more measures will need a water process because be integrated into the project to reduce noise. The we’re not consuming water from biggest will be a 15-meter-high (49-foot-high) “green the outside.” Cat Global Mining / Viewpoint 19 Protecting flora and fauna

Osisko has employed consultants to study the effect the Canadian Malartic mine will have on vegetation, wetlands, land and aquatic mammals, waterfowl, birds, amphibians and reptiles. The company will employ whatever means possible to minimize “Thickened tailings also allow us to reduce the size these effects. In addition to minimizing locations of our pond,” says Cimon. “We’ll use the same size that will be devegetated, Osisko plans a one-for-one pond when we’re producing 55000 tonnes a day as compensation for these areas. Replanting will be the original pond, when only 5000 tonnes per day done continuously as the cells become filled. was being produced. We’ll also reduce toxicity prior

ENABLING MALARTIC FOR THE FUTURE to sending tailings to the pond.”

Osisko’s sustainable development activities cover all Restoration of the vegetation on the site will the phases in the mine’s life cycle—including the include a biodiversity research project. Because of final one. The company has a detailed plan in place the abandoned tailings pond, the site is devoid of for mine closure, from how the site will look to vegetation and has been eroded by wind. Osisko is the economic legacy that will be left behind for the working with experts to choose species that are best residents of Malartic. adapted to that particular environment.

Rehabilitating the site “We’re excited by the prospect of continuous reclamation,” says Cimon. “Residents will see grass Before Osisko even starts production on the site, in year four instead of year 15. At the end of the reclamation has begun. Osisko signed an agreement mine’s life, we’ll already be 65 percent done with to rehabilitate the abandoned East Malartic site with reclamation.” the Quebec government, which had inherited the site and become responsible for the environmental The community will participate in what happens to follow-up. Osisko will assume half the government’s the site after the mine is gone. All the equipment financial obligation for the site’s rehabilitation and will be gone and buildings dismantled; what will use tailings from its new mine to progressively remains will be a hill and a water reservoir. The cover the site, rendering it harmless. property will be given to the ministry of natural resources unless a developer has a plan for use. Another important choice was to progressively 1 restore vegetation at the mine site rather than “People are already dreaming 1/ Stockpiles like the one waiting until the end of the mine’s life cycle. This and envisioning what can be under construction here will be covered to keep dust away from process of continuous rehabilitation was made here in the future,” Cimon says. residential areas. possible by a decision to use thickened tailings “There is talk of a ski hill or a resort. 2/ Denis Cimon, Canadian technology, which allows indigenous trees to be Malartic General Manager, points Anything is possible.” out a location on a map of the planted while mining continues. massive site. Leaving a legacy 3/ Osisko is rehabilitating an Thickened tailings, which are achieved by using abandoned tailings pond with compression thickeners or a combination of tailings from its new mine to In March 2008, Osisko announced a first-of-its- progressively cover the site, thickeners and filter presses, are dewatered to a kind sustainable development fund to ensure rendering it harmless. point where they form a mass that can be placed a lasting heritage for future generations in the layer by layer onto a pile. In addition to allowing town of Malartic. The fund is intended to improve continuous rehabilitation, thickened tailings also the quality of life for residents today, promote significantly decrease water usage and reduce the community growth, and enable long-term economic size of the stockpile that will be left behind. success long after the mine is gone.

20 Cat Global Mining / Viewpoint / 2010: issue 7 Canadian Malartic: Osisko’s flagship property

Osisko Mining Corporation’s flagship property is the 100-percent- owned Canadian Malartic gold property, located in the heart of Quebec’s prolific Abitibi Gold Belt, immediately south of the town of Malartic and about 20 kilometers (12.4 miles) west of the town Val d’Or. The property covers 230 square kilometers (89 square miles) and includes four underground mines that produced over 2 3 5 million ounces of gold from 1935 to 1983.

Osisko acquired a 100 percent interest in the Canadian Malartic property in November 2004, and initiated a detailed compilation of the extensive historical database in January 2005, including data from over 5,000 surface and underground drill holes. Osisko commenced its drilling program on the property in March 2005 and has drilled over 750000 meters (2.5 million feet) since then.

The deposit is an Archean porphyry gold system, consisting of a widespread shell of disseminated gold and pyrite mineralization hosted by diorite porphyry and altered metasediments. The “We’re very proud to initiate the creation of this fund,” said Canadian Malartic deposit is part of a 3000-meter-long (9,800-feet- Osisko’s Sean Roosen when he announced the FEMO: Fonds long), contiguous, east-west striking mineralized system that was Essor Malartic Osisko. “Our mining project will definitely historically mined by several underground operations. generate major spinoffs for Malartic, but we intend to Osisko received the final authorizations and mining permit from contribute even more so that we leave a sustainable legacy the Quebec Government in August 2009 and has been building the for the people of Malartic.” Canadian Malartic open-pit mine since. Commercial production is expected to begin in the second quarter 2011. The company expects Osisko plans contributions in cash and stock that could to produce an average of over 600,000 ounces of gold annually over amount to more than US$4 million in the next several years. a 12.2-year mine life. Roosen and other management personnel donated 25,000 of their own Osisko shares to FEMO. Current reserves are about 9 million ounces, plus an indicated resource of 2.2 million ounces and an inferred resource of 0.5 million The fund is the first of its kind for Quebec and the Canadian ounces. An 80000-meter (262,500-foot) drilling program is under mining industry. Priority is given to projects most likely way on several mineralized zones and high potential exploration to leave a heritage for future generations. Projects must targets on the property. promote the economic, social and culture development of Malartic; encourage and support activities that promote youth HISTORY development; promote the development of knowledge by The Canadian Malartic deposit was discovered in 1926; underground supporting school studies, including scholarships; promote development began two years later. From 1935 to 1965, the mine arts and culture; and support a good quality of life and produced over 1 million ounces of gold from almost 10 million personal development for Malartic citizens. tonnes (11 million short tons) of ore. The site remained idle for 15 years until its purchase by Lac Minerals, which explored the property SERVING AS A BENCHMARK from 1980 to 1988 with the objective of finding a near-surface deposit amenable to open pit mining. This exploration uncovered five near- Osisko has embraced the challenges of developing Canadian surface gold zones forming a resource of about 8.2 million tonnes Malartic and is hoping to serve as a benchmark for other (9 million short tons) of ore at 1.98 grams per tonne. mining companies on sustainable development issues. “We worked alongside the people where the mine is located, The project was shelved in the early 1990s when Lac Minerals was and we worked as a team,” says Cimon. “We’re all in this acquired by Barrick Gold Corp., which sold the property to McWatters together. That’s how we approached this project, and we would Mining in 2003. McWatters declared bankruptcy in 2004, and later that year Osisko purchased a 100 percent interest in the property. recommend that any other company do the same. We’re taking The purchase initially included six claims and one mining concession; the best of what other companies have done and hopefully today, Osisko has successfully acquired additional claims and the becoming an example for other mining companies.” property now comprises 104 claims and one mining concession with a total surface area of 4442 hectares (10,976 acres).

Cat Global Mining / Viewpoint 21 Women: A skills crisis is already having an effect An untapped resource on the mining industry, and analysts for the global skills crisis agree the total impact won’t be felt for another 10 years. That’s when up to half the global work force, currently over the age of 50, is set to retire— leaving a void in workers and a gap in professional knowledge that will be felt throughout the industry.

A number of initiatives are in place to address the crisis—like developing the skills of local residents, funding programs to attract students to mining careers, and heavily recruiting new skilled graduates. But what some initiatives may be missing is a focus on a largely untapped labor pool: Women.

In Australia, women comprise 42 percent of the national work force but just 18 percent of the mining work force. And only 3 percent of those women actually work on site, according to statistics from the Australasian—continued »

22 Cat Global Mining / Viewpoint / 2010: issue 7 »—Institute of Mining & Metallurgy (AIMM). of sponsors. The study found that despite steady In Canada, their participation in the industry was improvements over the last decade, the percentage just over 10 percent in 1996, and 10 years later of women working in the Canadian mining still sits at 14 percent. South Africa also reports 10 industry remains well below the overall labor force. percent of mining jobs filled by women—due in In addition, the wage gap between men and women large part to the post-apartheid constitution, which is well above the national average. enshrines the doctrine of equality of the sexes and A number of barriers to success were noted, has set 10 percent as a requirement to operate. with flexible work practices identified by women While each country has a slightly different respondents as the primary working condition perspective, in most areas where mining is a key that needs to be addressed. “Provided they receive industry there are government agencies, non- sufficient flexibility and support, women are ready, governmental organizations like Women in Mining able and willing to fulfill the rigorous demands (WIM), and mining companies themselves that have of mining and exploration occupations,” the study launched initiatives to encourage more women to reports. join the work force. Work culture was the second-ranked most Newmont Ghana, for example, is working to challenging working condition reported by women achieve greater gender equality at its Ahafo mine. respondents; however, just three of 67 employers About 9 percent of Ahafo's total work force is indicated it as a problem. “For women, the ‘male- women; however, 35 percent of the mobile truck dominated’ environment was also identified as the operators are female. The operation formed a foremost issue at all phases of their career,” says 75-member Women's Consultative Committee, the study. which provides input on livelihood and social The study listed a number of recommendations responsibility initiatives created by the mine. for mining companies and organizations interested Members also work to access funding, receive in promoting the industry to women: training and build enterprises. • Place a stronger emphasis on training Pages 24-27 showcase and career development. women in several areas Freeport-McMoRan Copper & Gold’s Nemangkawi of the mining industry— Mining Institute recently graduated its first 20 • Offer more flexibility. a mine owner, a maintenance technician, female heavy equipment operators who are now the director of a • Offer awareness training. manufacturing facility on the job at the Grasberg operations. Founded • Close the wage gap. and a mining engineering by PT Freeport Indonesia, the Institute provides student. pre-apprentice, apprenticeship and advanced • Implement mentorship programs. career development opportunities for hundreds • Support post-secondary alumni groups, mining engineering student of indigenous Papuans each year. women’s networks and industry associations. mine owner Women now work as geologists, surveyors, • Promote a positive image through testimonials and speaking opportunities for women’s mechanical engineers, environmental scientists, maintenance professional associations. technician chemical engineers and production workers, in In addition to serving as a large labor source for manufacturing some of the most remote and hostile locations in facility director the world. the mining industry, incorporating women into the work force has added benefits. AIMM has Yet barriers to women in the mining industry still noted reduced employee turnover, better workplace exist. Last year, WIM Canada initiated “Ramp-UP,” a behaviors, improved decision-making, and study that gathered data on the under-representation improved safety and equipment conditions. AIMM of women in the industry and established a also says mining companies will find gender equity baseline for measuring improvements. The study increasingly becoming part of their social license to operate. was done in partnership with the Mining Industry Human Resources (MiHR) Council and a number

Cat Global Mining / Viewpoint 23 Amelia Paul: A mining student with a passion Belinda Shafer: A mine owner with a thirst for knowledge and a fierce commitment to her employees for the industry and a focus on the environment Being a woman in a predominantly male industry is the least of Belinda Shafer’s worries. Amelia Paul isn’t sure exactly what she’ll “Even though I am extremely outnumbered As the co-owner and manager responsible for do once she earns her degree in mining in the department, it doesn’t bother me,” she the day-to-day operations at Shafer Coal, she’s engineering. But she has a lofty goal: To says. “I welcome the challenge. The guys will more worried about all she has to learn in an prove to the world that coal is one of our try to test me a little bit, wondering if I can ever-changing environment to make sure her most important energy resources—and that really do the work. I have to prove to them I’m company succeeds. technology can make it clean. not just wasting time. I’m serious about this. I can do it.” When Shafer took on her role just a few years “I want to do research and get rid of this ago, she knew very little about mining. “I had idea that coal is bad,” says Paul, a 19-year- Making a positive to learn everything,” she admits. “I had been old student at Southern Illinois University in environmental impact working in the industry for years, lobbying Carbondale, Illinois, USA. for our company and the coal industry in the While Paul is fairly certain she wants to do Paul’s interests in mining and the environment state of West Virginia. But I didn’t really know hands-on mining work—preferably in an started at her father’s knee. Bradley Paul is an what happened on site every day. I had to learn underground mine—she also wants to keep a associate professor in the college’s mining about mining processes. I had to learn about focus on the environmental impact of mining. engineering department. He also conducts machines and tire life, and become well-versed research—an activity in which Paul participated One of her first projects with her father was a in things like greases and oils. And I had to learn when she was just 10 years old. study for a power plant that was looking for how to manage a team of 25 miners who were the best location to dispose of the fly ash being depending on me to run this company.” “When I was a little girl, I always wanted to generated during coal combustion. “They sent know what my dad was doing at work,” she Shafer admits she’s like a sponge when it comes us samples of fly ash, along with clay samples recalls. “I knew that I wanted to dig in the dirt. to mining information. She attended a recent from two different sites where they might bury I considered mining engineering or archaeology Mining Forum sponsored by Cat Global Mining it,” she recalls. “We evaluated the soils to see because both of those professions will allow and filled two journals with notes on ways to which was a better repository for the fly ash. me to get my hands dirty, to do manual labor. enhance the performance of her equipment, I learned I really liked the environmental side I want to be in the mine.” improve her maintenance practices and increase of mining.” productivity on site. Paul is just one of two female students in the “I don’t want to do environmental work all the university’s mining engineering time, but I want to apply environmental work Learning on the job program, a situation Paul to whatever I’m currently doing in the mine,” finds challenging but Shafer’s entire mining career has consisted she says. “It’s something we should always be not enough to deter of on-the-job training. She started working thinking about. So as we’re mining, we’re not her from her for Shafer Coal just over 20 years ago as a damaging the environment.” chosen path. high school student, and continued to work at the company off and on over the years as a Finding the right fit bookkeeper and in other support roles. Paul hopes to begin working in the industry One of her biggest responsibilities was once she receives her undergraduate degree, serving as a lobbyist in West Virginia’s capital but plans to continue her studies until she has of Charleston during a time of increasing earned a doctorate. Last summer she worked environmental legislation that had significant as an intern for a mine, has participated in field ramifications for the mining industry. trips, and wants to continue exploring all the opportunities before defining her career path. “I practically lived in Charleston several months a year and networked and lobbied, learning “I want to do multiple internships so I can try how government works, serving on industry lots of jobs before I actually receive my degree,” committees, helping to author legislation,” she she says. “I want to study in and learn about says. “I was one of the few women lobbying for different geological regions and rocks and the mining industry, but I think that was to my faults. I want to be ready when I get my degree advantage. I shared my passion for the industry to know what I want to do, having tried many and spoke from my heart, building relationships different areas. I’ve learned what some of the with legislators that still serve me well today.” opportunities are but I haven’t had a chance to try them. And I want to do that before I make a In 2008, Shafer became a co-owner of the commitment.” company and divided roles with her partner— she would oversee day-to-day operations of the mine and he would focus on the future, finding new coal reserves, obtaining leases and future permitting. 24 Cat Global Mining / Viewpoint / 2010: issue 7 Belinda Shafer: A mine owner with a thirst for knowledge and a fierce commitment to her employees

“We really weren’t doing as well as we wanted to be their families. “I promised I was going to take care of them, and I financially and decided that we were going to restructure,” did,” she says. “And as a result, some employees even offered to she says. “I found an investor who had a lot of faith work without pay.” in me, who believed in my passion, and he helped me finance the restructuring.” Appreciating the benefits

One of the greatest benefits Shafer has found to her job in the Relying on others mining industry is how it helps in her role as a single mother to her Shafer is in charge of day-to-day operations, but don’t children. She has the flexibility she needs: “If I need to bring them to think for a second that she does it without help. She work, I do. If there is a field trip, I’m there. It has enabled me to be a relies heavily on her “Knights of the Round Table”—the successful single mom.” team at Cat equipment dealer Cleveland Brothers, the The financial rewards, too, make the industry a great choice for sales representative from her tire supplier, her banker and single parents. “A lot of single moms have to work two jobs just to numerous other vendors. make ends meet,” she says. “I’m able to take care of my children and “I’m a high maintenance customer,” Shafer admits. “I ask give them a good lifestyle. I’m able to work at what I do, and be the a lot of questions. Maybe that’s because I’m a woman— mom I want to be.” I’m not afraid to ask if I don’t know the answer. My parts “I have insurance. I have benefits. I have retirement. And you don’t and service rep at Cleveland Brothers has told me that’s a necessarily have to have a college degree to make money in this good thing. We need more women in this industry; we’re industry.” not afraid to ask questions.”

Shafer considers all of her vendors a part of her Encouraging others management team. “They’re more than my salesmen; Shafer is eager to share her passion for mining with they’re my family. These relationships are important to other women in the industry. “I love the fact that me so I nurture them. I trust them and I know they are more women are becoming involved,” she being truthful to me. As long as we are mining coal, the says. “I love the industry. I love what we do. numbers will take care of themselves.” You can go in so many different directions: Everyone has an important role to play. “My guys’ job is operations, engineering, or a role like mine.” to safely mine coal and take care of the environment, and Looking back, Shafer wishes she had my job is to make it possible for them to do that,” Shafer taken advantage of opportunities to learn says. “My dealer’s job is to take care of the equipment. a little bit about a lot of things that are My tire vendor is responsible for the complete tire part of the industry. “I would recommend maintenance program. I expect everyone to fulfill their taking some mechanical and equipment roles so I can focus on my job. We’re all in this together. classes, no matter what your mining role. If I don’t make it, they don’t make it.” I wish I had had a basic background in transmissions, differentials, those kinds of Earning respect things.” Shafer also thinks it’s important to “When I took this position, there was some reluctance on understand how government works because the part of my employees to working for a woman,” Shafer mining is an industry that is heavily regulated says. “And that was OK. It was something they were around the world. unfamiliar with. I made it my goal to earn their respect, Above all, Shafer recommends women in the mining and I think I’ve done that. And they know I care about industry just be themselves. “I don’t want to be a man, or their welfare, their safety, their families. As a result, they’re be better than a man. I’m not out to prove I can do this better willing to take care of me, trusting in me and working than someone,” she says. hard to make this business a success for all of us.” Shafer doesn’t pretend she’s just one of the guys. In addition to In September 2009, Shafer’s management style was being respected as a boss, she also expects to be treated like a put to the test. Shafer Coal’s primary customer, a major lady. “I’m out on that job site in dresses and skirts—and steel-toed electricity server, cut its demand back to just 1,500 tons a boots,” she says, “and I don’t think that takes away from my ability month. “I was told by the power company that they didn’t to be a leader and do this job. I’m a lady: A lady of faith, a lady of need coal due to low demand for electricity,” she recalls. passion and a lady of coal. When you embrace who you are, it makes “I had to lay our guys off and it was one of the toughest you strong.” things I’ve ever had to do.” One of Shafer’s favorite quotes comes from the late American Shafer had put money aside for such a situation, and was actress Marilyn Monroe: “I don’t mind being in a man’s world as able to continue health benefits for all her employees and long as I’m allowed to be a lady in it.”

Cat Global Mining / Viewpoint 25 Gabriela Lenes Antialon: An equipment technician Tami Nelson: A long-time mining employee grateful for the opportunities the industry has provided focused on learning more and improving every day When Tami Nelson entered the mining industry in the mid-1980s with a degree in As a student pursuing a career as an understand the function of each component metallurgical engineering, she never thought equipment technician, Gabriela Lenes Antialon and to be aware of how these machines work in about being a woman in what was considered was fascinated by photos and videos of giant the field,” she says. a man’s world. Cat trucks working on mine sites around The program combines classroom education the world. “It never occurred to me that I would face with hands-on learning in the field and in labs. challenges as a woman in this industry,” says “I was only able to observe their size and power Graduates receive an associate’s degree in Nelson, a 20+-year employee of Caterpillar from far away,” she recalls. “I wanted to be applied science; Antialon has continued her Inc. who currently serves as the managing there, right next to them, face to face. I wasn’t education with e-Learning classes provided by director of Cat Underground Mining in satisfied with just seeing them.” Tecsup University and is pursuing a degree in Tasmania, Australia. “I just didn’t think about industrial engineering. Today, the 22-year-old not only gets to see it. As a result, it hasn’t really been an issue the machines up close; she is one of those As a ThinkBIG student, Antialon trained at for me.” responsible for keeping them in top condition. the Ferreyros main shop in Lima, working As a young girl, she had witnessed the Antialon is a graduate of ThinkBIG, a two-year in the Component Rebuild Center, machine feminist movement and was excited to take Caterpillar program that teaches participants shop, used equipment shop and rental shop. advantage of the doors these women had how to service Cat equipment, and is a Today, she continues training as a Service Pro opened for her. “I knew I was going to benefit technician for Ferreyros, a Cat dealer in Peru, Program technician, learning about engines from these pioneers,” she said. “I have never working in Barrick’s Pierina gold mine in the and electricity and becoming certified in thought of myself as one of them.” north-central region of the Andean country. additional areas. Her flexible schedule (eight Antialon performs maintenance on a number working days followed by six days off) gives Choosing a career path of Cat machines in the mine, including 785C her the flexibility to continue that education trucks, 992G and 994G wheel loaders, and training. Nelson chose her college major based 16H motor graders, D10R, D10T on her proficiency at math and science. Antialon’s career is very important to her, and D8T track-type tractors and “I started in chemical engineering but and she appreciates the many benefits that 834B wheel dozers. investigated all the different options and the mining industry has provided. “Of course finally settled on ‘extractive metallurgical I have been able to improve my family’s engineering’—which is actually extracting the income,” she says. “But this job also has metals and marketing them as a commodity. allowed me to improve from a personal point However, when I graduated, there weren’t of view. It has enlarged my vision of the world.” any jobs available working directly in the While she stands out as a woman in a mining industry. I was very happy when I primarily male field, Antialon says it has got the opportunity to work for a company never been an issue for her. “I found like Caterpillar, where I could still have a a good team of people who accepted connection to the industry.” me without reservation,” she says. While her current role puts her in charge of “My instructors, mentors and other two manufacturing facilities and a design technicians shared their experiences and team, Nelson has held a wide variety of roles guided me in this endeavor. My colleagues at Caterpillar. She has worked in marketing, were supportive and patient. And my developing a project plan for the company’s parents understand this is my dream and massive exhibit at MINExpo, and served what I want for my life. Thanks to all of them, as the operations manager of an excavator I was able to reach a maturity as a professional manufacturing facility in China. She has also and become a better person.” held numerous engineering roles in several Antialon encourages other women to take divisions, including chemical products, “It has been advantage of the many opportunities to work in track-type tractors, heat treat engineering/ three years already since I decided to work the mining industry. “New tools have reduced metallurgical lab, and powdered metal. in the mining industry, and I’m very satisfied the physical effort required to do this job, The mining industry has given Nelson a life with that choice,” she says. “I’m lucky that making it easier for women—and men, too—to she never imagined. “I never thought I’d see every day when I go to work, I’m sure I chose work in this industry,” she says. “Women are Asia, or get to go to Bangkok. I remember the right career.” able to study any career we choose. It doesn’t seeing a picture in my sixth grade social matter if you are male or female. We must all While participating in ThinkBIG, Antialon studies book and I always wanted to go there. strive to do things well and improve every day. learned how to service Cat equipment by Those were dreams of a kid growing up in What’s important is the work, and the effort we using diagnostic and maintenance systems, South Dakota. Mining has opened so many put into it.” advanced technologies and high-tech tools. doors for me. I love it.” “I was trained to diagnose their condition, to

26 Cat Global Mining / Viewpoint / 2010: issue 7 Tami Nelson: A long-time mining employee grateful for the opportunities the industry has provided

Nelson finds the production environment the best fit. “I love The respect is mutual. When overtime pay was not in the budget, manufacturing,” she admits. “I love the pace. I like working with management employees came in at night and painted floors and the people on the factory floor. I like spending the day in the plant, walls to get ready for a new assembly line configuration. “When walking around, talking to people, seeing what’s happening. it was time for another assembly line reconfiguration, my team I’m not a good corporate person; I feel more comfortable in steel- did it while I was out of town,” Nelson says. “They wanted to toed shoes.” surprise me.”

Facing challenges Sharing advice

Has being a woman in a traditionally man’s role added to the Nelson has chosen to deal with gender inequity in the mining challenges of her job? “I don’t really pay attention to whether industry by ignoring it. “I’ve never understood why it has to be I’m treated differently because I’m a woman,” she says “I do feel different,” she says. “I worked with my dad in the fur business sometimes that people are watching me and wondering what from the time I was a little girl. I could do anything I needed to do. I'll do differently because I am a woman. But I use that to my I have the same degree as many men. I’ve done the same jobs. advantage. Because when I don’t fail—and maybe do some things There really is no difference.” they didn't expect—everybody knows it. Good or bad, they Her advice to women in the industry: “Don’t expect special are watching.” treatment. Come out and work. It’s your job. Be The recent economic downturn was a aware of how you behave and the treatment you challenge, Nelson admits, but not expect from others. I want to be respected for because she is a woman. “We had who I am and what I’m getting done.” to let people go,” she says. “It was Women are much more accepted in one of the hardest things I’ve the industry today than they were ever had to do. I may have cried just a decade ago, she says, and the on the way home from work on situation will continue to improve. the days I had to let people go, “There will always be some who will but I don’t think that makes never change their opinions and who me soft. I believe I’m one of won’t listen. You can’t change them, the toughest managers in the so don’t worry about them.” company. But I’m fair, and I care about my people and “Focus on what you want,” she says. I want them to know it. It has “You can make anything happen.” nothing to do with whether I’m male or female. I think it’s just the Giving back kind of person I am.” Nelson is active in the mining industry and Whatever the reason, Nelson’s approach in a number of community organizations. She was good for the company. “Despite the also is an avid supporter of her alma mater, the downturn, we met our financial goals,” she says. “And South Dakota School of Mines, where she has funded two our employee engagement scores went up at the same time.” scholarships.

She might bristle if you call her a mother hen, but to hear Nelson The Ralph Hurlbert Scholarship honors her high school chemistry talk about her team of employees in Burnie, it’s clear that their and physics teacher, “who really made a difference in my life with relationship is one of mutual trust and caring. “I am a shop his support, motivation and encouragement.” The second is in workers’ manager,” she says. “I’m very protective of my people.” memory of her father, Larry E. Huisenga, and is awarded to a student who is interested in singing. Huisenga was a singer who When Nelson first arrived in Burnie, she made some changes that enjoyed performing all types of music. Nelson, too, participated quickly put employees on the defensive. “I shook things up when in vocal music programs in college and has been a member of the I arrived here,” she admits. “The previous manager had done a Caterpillar Employees Mixed Chorus. great job, and was well-liked. But sometimes organizations benefit from a new perspective—and that’s what I had.” “Giving opportunities to young people is important to me,” she says. “I was a scholarship student and I want to give back and Little by little, Nelson developed a relationship with her people make university possible for others like me.” and they began to see remarkable progress. “It was amazing what happened once we built that trust in each other,” she says.

At a recent all-employee meeting, Nelson had nothing bad to share. “They’re meeting our goals for quality and productivity,” she says. “Together, we’re learning what we can do. I’m so proud of my people.”

Cat Global Mining / Viewpoint 27 Cat 797B trucks working at the Belle Ayr coal mine in Wyoming have accumulated as many as 8,069 operating hours in a single year. That translates to a phenomenal utilization rate of 92.8 percent—a world class achievement. And a number of Cat trucks at the mine have approached and topped the 8,000-hour mark during the past few years.

“A good product with good product support, Belle Ayr trucks top along with a skilled a dedicated work force, are keys to achieving our utilization goals,” says Ken Ferguson, maintenance superintendent for the Alpha Coal West Belle Ayr and Eagle Butte mines. “Our maintenance staff works as one with mine operations and the Cat dealer.”

Teamwork is at the core of Belle Ayr’s record truck utilization rates, but meticulous planning 8,000 and attention to all of the details that keep trucks working is the order of the day at the Alpha Coal H o u r s: West mine. A 9 3% utilization rate “World class asset utilization was part of the Foundation Coal model—before the Alpha Natural Resources and Foundation Coal Holdings merger in 2009,” explains Shane Durgin, operations superintendent of Belle Ayr and Eagle Butte, Alpha’s two Powder River Basin mines. “Our utilization target has been a higher level than others around the world.”

“Through a continuous improvement process applying Theory of Constraints, Lean and 6 Sigma

1

28 Cat Global Mining / Viewpoint / 2010: issue 7 principles, we identify variances and put action Two of the shovels swing 109 tonnes (120 short plans together,” he continues. “The Cat truck VIMS tons) for efficient three-pass loading of the 797 data is reported through our mine information trucks. One shovel does four-pass loading of system, and we evaluate it to look for events that are 797s, while another works with the Cat 793s. The taking our trucks down.” overburden fleet moves about 70 million cubic meters (92 million cubic yards) of material each The process and subsequent actions leave little to year. That material—predominantly claystone and chance. Belle Ayr carefully manages maintenance siltstone with some sandstone—can be very soft. planning, scheduling (including planned The most negative effect generally is the challenging component replacement) and execution as well underfoot conditions at the loading faces. as operator training, performance feedback to operators, haul road construction and maintenance, Two coal loaders work with trucks equipped with shift changes, refueling, and just about everything coal bodies. A hydraulic excavator removes the else that could make a difference in equipment bottom 2 meters (6 feet) of coal to better handle utilization rates. any wet conditions and poor underfoot conditions. Target coal production for 2010 is 23.1 million Belle Ayr equates truck hours with production. tonnes (25.5 million short tons). And the numbers confirm the concept. In 2009 the 797B that accumulated 8,069 operating hours Among the 797s are two pre-production 797F trucks, moved 10.5 million tonnes (11.5 million short tons) which were placed with Belle Ayr by Caterpillar for of overburden. Another 797B on the same short field follow studies. The two trucks accumulated overburden haul racked up 7,699 hours to achieve thousands of hours as they worked in standard a utilization rate of 92.7 percent. In the process production cycles with other 797s—and as they were that truck hauled 10.2 million tonnes (11.2 million closely monitored by Caterpillar engineers. short tons). “We use development and field-follow programs to

THE FLEET THAT WORKS see what works here,” explains Durgin. “We try to be on the forefront of technology; we continuously ask Belle Ayr moves both overburden and coal with if specific technology has value for us. Vendors can trucks and shovels. A stripping ratio of 3.5:1 and help us make that determination.” a 21-meter-thick (70-foot-thick) coal seam put the largest machines to work uncovering coal. Nine Each truck is equipped with GPS to aid tracking and Cat 797s and two 793s work with four different assignment. And each of the shovels uses the Cat shovels to remove overburden. All of the Cat trucks Computer Aided Earthmoving System (CAES) for use MSD II bodies optimized for the mine site to bench grade control guidance. Additionally, each of achieve lowest cost per ton hauled. the older shovels has been updated with digital drive systems for more efficient operation.

1/ Belle Ayr’s 109-tonne (120-short-ton) shovel achieves efficient three-pass loading of 2 the 797B truck. 3

2/ Meticulous planning and attention to detail are the order of the day for Shane Durgin, the site’s operations superintendent.

3/ Two of Belle Ayr’s high- availability Cat® 797Bs exchange at the shovel.

Cat Global Mining / Viewpoint 29 MANAGING ROADS AND PEOPLE shift change. “It’s a planned event,” says Durgin. “It changes all the time, so it takes coordination each Belle Ayr considers well-constructed and maintained shift change.” haulage roads a necessity to keep truck utilization high. Long-life roads are 45 meters (150 feet) wide Operator training, performance feedback, incentives and built to high standards with clay as a base and and the culture of the work force also affect how scoria as the finish layer. Cat scrapers handle scoria trucks and shovels work. Belle Ayr attends to all during road building and during rebuilding if it of these. An operator trainer and a maintenance becomes necessary to dig out a soft spot. trainer hold positions at the mine.

Five Cat motor graders, four 24H models and one First, truck operators are trained in a simulator 16H, finish and maintain roads at the mine. Road before they ever set foot in a production hauler. The Analysis Control (RAC) systems on the Cat trucks trainer will ride with the operator in a production provide information for the dispatcher to identify truck if it is necessary to do retraining. Some of bad areas on haulage roads. When a problem those retraining indicators come from VIMS data develops, a motor grader can be dispatched quickly. that show incorrect operation. Those problems are Additionally, Cat 854 wheel dozers maintain the assessed and remedial actions recommended by the loading areas and can be dispatched to handle truck maintenance trainer. spillage nearby. Each operator, too, gets accurate and timely Truck tire life is testament to the success of the road feedback. Each truck operator, for example, program. The 797 tires average a life of about 6,000 knows wait times, average payload, tonnes hours, and the smaller truck tires push 11,000. hauled and other performance indicators. The quarterly incentive pay program is based on safety, Of course people are a huge factor in getting the productivity and equipment availability. Planning most from mining equipment. Perhaps no single and coordination between managers also is a key to scheduled event surpasses the shift change in its getting the most from trucks and other machines. potential to bring down machine utilization and

production. The Belle Ayr KPI is 32 minutes for a MAKING THE FLEET RUN, AND RUN, AND RUN shift change. The staged shutdown involves trucks stopping in different places at different times, and Belle Ayr’s maintenance planning and execution crew vehicles take the operators to the trucks. are key drivers of superior machine utilization and production. “Taking the long-term view helps Fueling also takes place during shift change. A everyone make the best decisions,” Ferguson 30300-liter (8,000-gallon) fueling system mounted observes when asked if it’s difficult to coordinate on a Cat 740 articulated truck supplements a maintenance and production efforts. That approach larger, more standard refueling rig. The operations is aided by the emphasis on using quantifiable coordinator schedules everything anew for each

1/ Ken Ferguson, maintenance 1 superintendent, explains how 2 dedicated haul road maintenance is leading to outstanding tire life.

2/ The site’s long-life roads are built to high standards with clay as a base and scoria as the finish layer.

3/ A Cat 740 articulated truck supplements a larger, more standard refueling rig.

4/ Belle Ayr’s load-out system fills a 150-car train in four hours.

30 Cat Global Mining / Viewpoint / issue2010: 7 issue 7 information to improve processes and to months and for an additional three years achieve goals. by year. Technicians monitor components carefully near the scheduled end-of-life Belle Ayr employs maintenance and repair of the components. Component lives are contracts (MARCs) with key vendors to extended when condition monitoring maintain machines. Wyoming Machinery, results warrant. the regional Cat dealer, has technicians at the mine who attend to the MARC on Some components, however, are replaced Cat trucks. A technician visually inspects on a strict schedule. For example, fuel each truck each day with the objective of injectors are replaced at half of engine life spotting little problems before they become to maintain fuel efficiency and to reduce big ones. Three days before each scheduled the chances of failure. Fuel systems also get preventive maintenance (PM) session, special attention via 6-micron fuel filters on a Wyoming Machinery technician does fuel trucks and on bulk tanks. a 15-minute inspection, which includes Truck body rebuilds are scheduled, too, and an interview with the truck operator. Any body change-outs are planned to coordinate necessary parts and repair materials are with other maintenance tasks. Belle Ayr has ordered immediately so they are on hand a two-person truck body crew that re-lines when the truck comes in for its scheduled overburden bodies at 20,000 hours and coal PM. Wyoming Machinery maintains an bodies at 50,000 hours. Overburden bodies inventory of dealer rebuilt components. become too time consuming to repair after BELLE AYR: Grandfather of The goal is to have each truck down no 60,000 hours and are replaced before they the regional coal industry longer than 12 hours for PM and repairs— reach 80,000 hours of use. The Belle Ayr As the first non-captive mine to open and for the truck to run without further in the Powder River Basin and the first shop also handles shovel bucket and to ship coal to utilities far away, Belle maintenance between the PM sessions. dozer blade rebuilds as well as other Ayr is the grandfather of the regional coal industry centered in northeastern Wyoming Machinery includes ultrasonic fabrication needs. Wyoming. Amax Coal started the mine in testing of truck frames and ball studs on 1972, and soon after that mines started By combining sound maintenance practices growing like prairie grass in Campbell steering linkage during each PM. Regular with good operating techniques, solid County. Now mines in the basin ship fluid sampling and subsequent analysis and more than 363 million tonnes (400 mining machines and product support, million short tons) annually. reporting are part of the program, too. precise scheduling and a motivated work Coal shipments from Belle Ayr were 26.1 Planned component replacement also plays force—Belle Ayr is making it possible for million tonnes (28.8 million short tons) as recently as 2008. Coal shipments in the a role in the great mechanical availability its Cat trucks to approach or exceed 8,000 first half of this year, 10.8 million tonnes and utilization rates achieved at Belle Ayr. operating hours a year. And the approach (11.9 million short tons), reflect reduced demand for coal from the basin. Target Planned component replacement schedules is paying off with increased production production for 2010 is about 23.1 million are detailed by month for the next 24 efficiency and lower cost per ton. tonnes (25.5 million short tons). Belle Ayr mines the famous Wyodak- Anderson seam, which ranges from 21- to 27-meters (70- to 90-feet) thick on the 3 4 property. The low-sulfur sub-bituminous coal ships via 150-car unit trains on the joint railroad line served by the BNSF and the Union Pacific railroads. The loadout system is capable of filling one of those trains in four hours. Though overburden is getting deeper as mining progresses, Belle Ayr coal reserves approach 204 million tonnes (225 million short tons). At 38 years old, this grandfather of a mine isn’t close to retiring.

Cat Global Mining / Viewpoint 31 high-hour cat 5130 shovel moves its last coal

After an illustrious career of more than 15 Boo-One, the first Cat 5130 in the backhoe years moving coal and overburden on Texas configuration, leaves a legacy of reliability Westmoreland Coal Company’s Jewett mine, a and productivity. The shovel averaged 19.5 Cat 5130 hydraulic mining shovel affectionately operating hours per day at Jewett mine, a nicknamed “Boo-One” has been put to rest 14160-hectare (35,000-acre) surface mine after 115,863 service meter hours (SMUs). Also complex that operates five active pits located known as 5130-5ZL00024 and BH0001, Boo- between Dallas and Houston, Texas, USA. One was produced on Feb. 28, 1994, and sold Another 5130 continues to operate on the site, and supported by equipment dealer Holt Cat. with an SMU of 65,000.

32 Cat Global Mining / Viewpoint / 2010: issue 7 Caterpillar to Build Caterpillar produces Caterpillar celebrates 25 New Large-Engine facility 500th 797 truck years of Certified Rebuilds in China Caterpillar recently manufactured and shipped Caterpillar initiated the Cat Certified Rebuild Caterpillar Inc. has announced that it will the 500th 797 large mining truck to a coal (CCR) Program in 1985, and 25 years later, in build a state-of-the-art manufacturing facility mining contractor in Australia. The 797F that 2010, the 5,000th machine was rebuilt under in Tianjin, China, to increase its worldwide marks the milestone represents the third the program. In 2009 alone, Cat dealers capacity for large-engine production. Once generation of the largest mechanical-drive worldwide completed 500 total-machine operational in 2013, the engine facility will truck ever built. With 363 tonnes (400 short rebuilds, which, on average, cost each machine become the company’s third global source tons) payload capacity, the 797F continues the owner 40 to 50 percent less than buying a for Cat 3500 series engines. The facility in legacy of the 797 atop the ultra-class mining comparable new machine—even though the Tianjin will focus on producing engines for truck ranks. The first 797 started operational process involves disassembling the machine customers in China and the Asia-Pacific testing in late 1998, and the population in the to the bare frame, then rebuilding to like- region. The $US300 million project represents field grew to 250 in 2007. In the ensuing three new specifications. The major structures and the company’s largest new engine facility years Caterpillar manufactured and delivered components of a Cat machine are designed investment to date in China. another 250 of the flagship model to large to maintain their fundamental integrity mining operations in Australia, North America throughout a lifetime of service, allowing the Caterpillar to unveil and South America. machine to be rebuilt, economically, under the vocational trucks strict guidelines of the CCR Program. Caterpillar will unveil the first model in its full Caterpillar to expand line of Cat Vocational Trucks, the Cat CT660, truck capacity at CONEXPO on March 22, 2011. The Class Caterpillar Inc. has announced a 8 trucks will be sold and serviced exclusively series of investments that, over the through the Cat North American Dealer next four years, will significantly

network, with production beginning after enhance the company’s position as F ro m CONEXPO for customer delivery later in the the leading manufacturer of products news year. The trucks will offer custom solutions and solutions for the global mining for a large variety of job applications—from industry. Initial interest in the new caterpillar moving rock and hauling trash to logging Cat 795F AC trucks has been strong, and pouring concrete. Caterpillar will offer and the company has increased its the heavy-duty Cat Vocational Day Cab Trucks planned build rate for 2011 by more than New wheel loader with a full range of popular engine ratings and 40 percent to meet demand in all major mining option offers more torque capability options. markets throughout the world. In early 2012, efficient loading the company also plans to produce pilot The new Extended High Lift (EHL) option for Acquisition expands units of the 793F AC truck with a 218-tonne the Cat 994F wheel loader enables the popular Progress Rail Services (240-short-ton) payload. The company is also mining machine to load Cat 793 and similarly portfolio accelerating previously announced capacity sized trucks more efficiently. The EHL linkage high-hour cat 5130 shovel Progress Rail Services, a wholly-owned expansion plans for trucks in Decatur, Illinois, provides 1075 mm (42 inches) more dump subsidiary of Caterpillar, has finalized the USA, with additional capacity of nearly clearance compared to the High Lift linkage. purchase of Electro-Motive Diesel (EMD)— 30 percent expected to come on line beginning The additional lift height makes it easier for moves its last coal supporting the company’s goal to aggressively in 2011. the operator to load a 227-tonne (250-short- grow its Energy Power Systems business. ton) size class truck. For faster cycle times, Progress Rail Services is one of the largest Rio Tinto expands the operator can back the 994F away from the providers of rail and transit products and agreement with Caterpillar truck without racking back the bucket. In a 793 services in North America, including: Caterpillar Inc. has announced a five-year loading test with the new linkage, cycle time locomotive upgrade and repair, railcar agreement with leading international mining decreased 5.5 percent, which resulted in a remanufacturing, trackwork, rail welding, railcar group Rio Tinto to support and supply a broad 5 percent increase in production. The additional repair and replacement, signal design and range of Cat equipment to Rio Tinto mines lift also enables the operator to dump the last installation, maintenance of way equipment, worldwide. It is the second consecutive five- pass without pushing material. parts reclamation and recycling. year agreement between the two companies, but expands to include the full range of Cat equipment. As part of this agreement Rio Tinto mine site personnel, Cat dealers and Caterpillar employees will work collaboratively to improve machine and mine site performance. The majority of equipment supplied by Caterpillar will be surface mining equipment, including » For more Caterpillar news, large mining trucks, track-type tractors, large visit www.cat.com wheel loaders and motor graders.

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