Modern Coking Coal TechnologyPeter Long, Executive General Manager - Asia

10 February 2012

SEDGMANRecognised for leading innovative solutions for the resource industry

1. COMPANY OVERVIEW2. LOCATIONS AND PERSONNEL3. ADVANCED TECHNOLOGY FOR COKING COALS4. PROCESS DESIGN5. UGH DESIGN FOR CHPP6. DESIGNING FOR EXTREME WEATHER VARIANCES7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE

LOCATIONS8. UHG CHPP CONSTRUCTION

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AGENDA

• Global leader in the design, construction and operation of coal handling and processing plants (CHPPs)

• Established in 1979 in Australia• Publicly listed, ASX 300 company• Focused on technology leadership and

reputation built on delivering simple, certain quality

• Over 1,000 employees worldwide• Conceptual Design through to Operations• Contract experience from EPCM to full EPC risk• Currently undertaking coal projects in four

continents – Asia, Australia, Africa and South America

• Delivered over $1.7 billion of CHPPs in the past 6 years

• Processing capacity of more than 30 Mt/a of coal

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1. COMPANY OVERVIEW

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2. LOCATIONS AND PERSONNEL

Currently Executing 15 projects and 12 operations contracts world wide

South America 80 StaffOffice SantiagoProjects Bocamina CHP

South Africa 79 staffOffices JohannesburgProjects Atcom (Sth Africa), Benga, Zambeze (Mozambique),

Boseto (Botswana)

Mongolia / China 95 staffOffices Ulaanbaatar Beijing, ShanghaiProjects UHG Stage 1, UHG Stage 2, UHG Stage 3, Phu KamOperations UHG Management

Australia 805 StaffOffices Brisbane (head office), Townsville, Mackay & PerthProjects Bengalla Upgrade, Caval Ridge, Lake Vermont 2, Maules Creek, Middlemount Upgrade,

Narrabri, Red Mountain Upgrade, South Walker CreekOperations Agnew, Blair Athol, Cannington, Coppabella, Ernest Henry, McArthur River, Moorvale,

Middlemount, Mt Isa, Red Mountain, Sonoma

Coking coal is a high value productCurrently > US$300/t

Expected long term > US$150/t

Maximum recovery is major driver for project return

Design Elements for Maximising RecoveryAnalysis of resource

- Best practice techniques for bore core analysis and interpretation

- Simulations for accurate prediction of yield for plantdesign purposes

- Coking coals can be very different

Selection of most appropriate plant circuit and equipment for the range of coal seams to be treated

- Computer models of alternative circuits using models based on a large in-house database of actual operating plant data

Detailed Coal Handling and Plant design using 3D CAD to optimise layout for operating and maintenance

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3. ADVANCED DESIGN FOR COKING COALS

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3. ADVANCED DESIGN FOR COKING COALS

• Dense Medium Cyclones for coarse coal with circuits designed for optimum efficiency

High medium : coal ratios to maximise efficiencyLarge diameter cyclones with high spigot capacity for low yielding feed types

• High rank coking coals have a high percentage of recoverable coal in the fine circuits

Fine circuit selection critical for maximum recoveryLatest Reflux Classifier technology for fine coal to balance operation of coarse and fine circuitsLatest pneumatic / column flotation for ultrafines

• Hard coking coal is intrinsically fine, so high product moisture is inevitable if high recovery of fine coal

Free moisture can be a problem, especially in Mongolia- Poor handleability for subsequent transport- Can freeze in winter

Use of proven, large scale centrifuge technology for all plant streams to minimise final product moisture

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4. PROCESS TECHNOLOGY

CPP Module design feed rate 900 t/h (as);Coking coal products 8.5% to 9.0% ash, <10%TM.

Phase 1 – 5 Mt/a one CPP module60 t ROM Dump Hopper with Feeder BreakerRoller Screen & Secondary Sizer station1000 t Plant Feed Surge BinRadial Stacker for Coking ProductRadial Stacker for Thermal ProductRadial Stacker for Rejects and Tailings Dam

Phase 2 – 10 Mt/a two CPP modulesAdditional 350 t ROM Hopper with Feeder BreakerRoller Screen, Secondary & Tertiary Sizer stationReject Bin & Tailings Dam

Phase 3 – 15 Mt/a three CPP modules

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5. UHG DESIGN FOR CHPP

Nominal throughput 900 t/h (ar)

Two stage DMC1300mm and 1000mm diameter cyclones-50mm +1.2mm (ww)

Spirals-1.2mm (ww) +0.250mm

FlotationJameson Cells (B6000/20)-0.250mm

CentrifugesCoarse CoalFine CoalScreen bowl

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5. UHG DESIGN FOR CHPP

Extreme temperatures -40 to +40oC

StructuralEuro Code 3 provisions

Chinese low temp steel (D & C Grade) in impact areasReduced design stressNotch tough welds

CPP, bins & transfers contained in fully insulated shedsSignificant heating system2.6MW installed heating capacity for Phase 1

CivilCast in heatingBuilding foundations below frost line Climate controlled concrete poursWinter crash drainage

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6. DESIGNING FOR EXTREME WEATHER VARIANCES

Electrical and ControlsBuried and heated cable racksDouble insulated cabinetsEnclosed MCC and HV systemsInstrument selection driven by temperature varianceWinter setting which fundamentally changes the trip and shutdown sequencing

ProcessAssumes shed >0˚C Flotation dewatering selection Thickeners are covered, sheeted and heatedPipes between buildings are insulated, heat traced, have Δ50˚C rubber expansion jointAutomated plant shutdown and drain should heating system fail

TailingsPipes insulated with 10mm rigid polyurethane foam (cyano-polyester based) and protective shell Operate at above critical freezing velocityMechanically drained by diesel pump

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6. DESIGNING FOR EXTREME WEATHER VARIANCES

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

Issues to be considered

LogisticsSystems and proceduresTraining requirementsMaintenance

LogisticsSpare holdings on siteDelivery time of materialsVendorsQuality control

Systems and proceduresDeveloped well in advanceRemote links to monitor facility off siteTechnical support

TrainingMongolian supervisors/key managers trained in AustraliaSedgman managers and trainersOngoing development on site

MaintenanceMajority of activities performed by site personnelSpecialty maintenance tasks- OEM’s- Source from external providers- Train on site resources and procure

appropriate tools/equipment

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

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7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

Construction in Winter

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8. UHG CHPP CONSTRUCTION

Stage 1 Construction

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8. UHG CHPP CONSTRUCTION

Stage 1 & 2 Construction

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8. UHG CHPP CONSTRUCTION

Complete!

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QUESTIONS?