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AutoMine at Finsch.

Association of Mine Resident Engineers

Sandvik Mining 2

Our EHS Vision

Zero Harm to our people, the environment we work in,

our customers and our suppliers

Our strong EHS culture

Arises from our values and is fully integrated into the

way we ‘do business’

Relies on everyone being committed to our vision and

taking personal responsibility

Is supported by effective management systems

and processes

Delivers sustainable and continuous improvement

Environment, Health & Safety

Sandvik Mining 3

Some Challenges in Mining

Safety and working conditions

Mining often requires working in locations with elevated risk levels

Mineral resource grades are declining

More waste, existing mining technologies and methods becoming less efficient

Mines in more and more remote locations

Difficult to get skilled labor

Lack of accurate mining process management information

Daily decision making based on old reports and inaccurate data

Low utilization rate for mining equipment

Sandvik Mining 4

Key Drivers & Benefits of Automation

1. Safety & Health

2. Improved Utilization

3. Production Management

4. Improved Working Conditions

5. Lower Operating Costs

Sandvik Mining 5

AutoMine® Value Proposition

Safe and Optimized

Mining

No People in Hazardous

Areas

Real Time Information

Management

Better Means for Process

Control

Higher Equipment Utilization

Safety, Productivity & Peace of Mind

Sandvik Mining 6

Finsch Mine

Sandvik Mining 7

Finsch Plan

Sandvik Mining 8

Finsch Trucks

Video

Camera

Antenna

Scanner

Routes measured

Laser alignment

Scanning

Learning routes

Sandvik Mining 9

System Technology

Sandvik Mining 10

AutoMine® System Overview

Sandvik Mining 11

User Interface

Sandvik Mining 12

Operator Station

Sandvik Mining 13

Sandvik Mining 14

8:25

Finsch Video

15

Trans4mine Best Practice Evolution

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

16

Trans4mine Best Practice Evolution

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

1) PLOD card & measurement

refinement

2) Database (Not Excel)

3) Value Reporting

17

Trans4mine Best Practice Evolution

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

1) PLOD card & measurement

refinement

2) Database (Not Excel)

3) Real Time Communication

4) Value Reporting

5) Basic Shift Handover

18

Trans4mine Best Practice Evolution

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

1) Autonomous Measurements

2) Remote Monitoring

3) Reliable Production & Machine

Data

4) Manual Data Transfer (USB)

5) Systems Integration

6) Advanced Analytics & Reporting

19

Trans4mine Best Practice Evolution

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

1) Autonomous Measurements

2) Autonomous non-real time Data

transfer

3) Systems Integration

4) Advanced Analytics & Reporting

5) Basic Location tracking

20

Trans4mine Best Practice Evolution

1) Integrated Planning

2) Resource & Task Despatching

3) Real Time Monitoring & Control

4) Advanced Systems Integration

5) Streamlined Reporting and Shift

Hand-over

6) Advanced Location Tracking

7) Process Visualisation

Manual Operations Management Systems

Improved Systems with Radio Communications

Advanced Operations Management Systems – Manual Data Transfer

Advanced Operations Management Systems - Asynchronous Automated Data Transfer

Integrated Mine Management Systems

1

3

5

2

4

Sandvik Mining 21

Finsch Mine

22

Block 5 Video

23

9 x Toro 50 trucks operating on a fixed infrastructure environment - block cave

Level haulage on concrete floors , average travel distance two way is 1.4km

Very light ground, low SG

Comparison based on general fleet expectations in the local industry – not always 100% applicable

Automation Benefits Hauling Case Study

Capital Efficiency

Revenue Increase

Cost Savings

Risk

24

Automation Benefits

Capital Efficiency

Revenue Increase

Cost Savings

Risk

• Increased tons - 6.6% (from tonnages at startup 2008)

• Higher speeds of 26km/hr increase cycle time by 26%

• Increased availability by 14% (from 77% - 91%)

• Increased machine utilisation by 24% (from 60% to 84%)

• Maintenance cost savings of 60%. And essentially elimination of all damages.

• Increased component life by 65%

• Increased tyre life saves 24% of tyre costs

• Fuel consumption optimisaton results in 27% savings

• Operator labour saving of 66%

• Maintenace labour saving of 31%

• Eliminate truck operators from all UG risks

• Reduce risks for other personnel (especially maintenance crew)

• Economic Machine life increase of 35% ( from 20,000hrs to 27,000hrs)

• Better availability, performance and utilisation result in 33% less trucks

Sandvik Mining 25

AutoMine® Operating Sites

Petra

Finsch Mine

Block 4

(Aug 2005)

Barrick

Williams Mine

(Jun 2007)

Sandvik Tampere

Plant Test Mine

(1999)

First Quantum Minerals

Pyhäsalmi Mine

(Jan 2005)

LKAB

Kiruna Mine

(2010)

Codelco – El

Teniente

Pipa Norte

(Jun 2004)

Codelco

El Teniente

Diablo Regimiento

(April 2005)

Codelco

El Teniente

Pilar Norte

(Dec 2009)

Boliden

Garpenberg Mine

(2010)

IAMGOLD

Westwood Mine

(2011)

Xstrata

Elands Mine

(2011)

Dundee PM

Chelopech Mine

(2010-2011) Rio Tinto (China

Molybdenum)

Northparkes E48

(2011)

Newcrest

Ridgeway Deeps

(2011)

Newcrest

Cadia East

(2012)

Rio Tinto

Argyle Diamonds

(2013)

Newcrest

Toguraci Mine

(2012) Xstrata Copper

Kidd Mine

(2013) Boliden

Kristineberg Mine

(2013)

De Beers

Venetia Mine

(2015)

www.sandvik.com

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