OVERVIEW AUSTRALIAN BLACK COAL MINING

OPERATIONS

Ken Cram

Project Manager

Coal Services Pty Limited

OVERVIEW 2007

Increased:• Production• Exports• Number of Mineworkers Employed

118 Black Coal Mines• 74 Opencut• 44 Underground ( 30 Longwalls)

FOB VALUE OF AUSTRALIAN EXPORTS2007 (p)

Metallurgical Coal - $A 15.5 Billion

Steaming Coal - $A 7.1 Billion

Total Exports - $A 22.6 Billion

SALEABLE COAL PRODUCTION BY STATES

020406080

100120140160180200220240260280300320

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

Mill

ion

Tonn

es

New South Wales Queensland Other States

SALEABLE COAL PRODUCTION BY AUSTRALIAN STATES - 2007

NSW - 132.5 Million Tonnes

QLD - 183.1 “

SA - 3.9 “

WA - 5.8 “

TAS - 0.4 “

TOTAL - 325.7 Million Tonnes

MARKET FOR AUSTRALIAN COAL, 2006

Other domestic4%

Overseas exports77%

Domestic power generation

19%

Australian Black Coal ExportsRecord 251 M tonnes in 2007

Qld Exports - 154 M tonnes

NSW Exports - 97 M tonnes

Value $A22.6 Billion

AUSTRALIAN COAL EXPORTS BY STATEBY TYPE, 2007

NSW Metallurgical10%

NSW Steaming29%

Qld Metallurgical45%

Qld Steaming16%

WA Steaming0%

EXPORTS BY AUSTRALIAN STATES & TYPE

2007

NSW - 96.75 Million TonnesQLD - 154.32 Million TonnesWA - 0.16 Million Tonnes

Metallurgical - 137.4 Million TonnesSteaming - 113.8 Million TonnesTotal - 251.2 Million Tonnes

AVERAGE FOB PRICE NSW COAL EXPORTS January 2006 to August 2008 $A per Tonne

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

J an-06

Feb-06

Mar-06

Apr-06

May-06

J un-06

J ul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

J an-07

Feb-07

Mar-07

Apr-07

May-07

J un-07

J ul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

J an-08

Feb-08

Mar-08

Apr-08

May-08

J un-08

J ul-08

Aug-08

$AU

D

Hard Coking Other Metallurgical Steaming

SALEABLE COAL PRODUCTION, AUSTRALIA

020406080

100120140160180200220240260280300320

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Calendar year

Mill

ion

tonn

es

Underground Open Cut

EMPLOYMENT, AUSTRALIAN COAL MINES ALL MINES

18 000

19 000

20 000

21 000

22 000

23 000

24 000

25 000

26 000

27 000

28 000

29 000

30 000

31 000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

At December

Num

ber

of E

mpl

oyee

s

EMPLOYMENT 2007 (DECEMBER)AUSTRALIAN COAL MINES BY STATES

NSW - 13 800

QLD - 16 500

SA - 220

WA - 650

TAS - 100

TOTAL - 31 300

ANNUAL SALEABLE OUTPUT PER EMPLOYEESTATE PERFORMANCE

NSW QLD

2005 10 750 Tonnes 10 940 Tonnes

2006 10 140 Tonnes 9 970 Tonnes

2007 (p) 10 100 Tonnes 11 000 Tonnes

AUSTRALIAN RAW COAL PRODUCTIONBY METHOD OF MINING

0

50

100

150

200

250

300

350

400

450

1983 84 85 86 87 88 89

1990 91 92 93 94 95 96 97 98 99

2000 01 02 03 04 05 06 07

Year

Coal Services Pty Limited

Milli

on o

f Ton

nes

Open Cut Bord & Pillar Longwall

PRODUCTION FROM LONGWALL FACESAUSTRALIA

0

15

30

45

60

Coal Services Pty Limited

Milli

on o

f Ton

nes

0

15

30

45

No o

f Lon

gwall

Fac

es

NSW QLD No NSW Faces No QLD Faces

AUST LONGWALL MINE SIZE 1993

2 mines > 3 M tonnes (ROM)8 mines > 2 M tonnes (ROM)

1998 1 mine > 4 M tonnes (ROM)5 mines > 3 M tonnes (ROM)7 mines > 2 M tonnes (ROM)

2008 1 mine > 7.5 M tonnes (ROM)

2 mines > 6 M tonnes (ROM)5 mines > 4 M tonnes (ROM)8 mines > 3 M tonnes (ROM)

LW InitiativesFace Lengths

• Wider faces 350 m to 400m

Block Lengths• Extending 3500m to 5000m

Shearers• Higher capacity to increase production capability• Automation – memory cuts, horizon control

Supports• Wider canopies 1.75m to 2m• Greater leg support capacity• Improved control systems & shearer initiation

Airborne Dust Monitoring

• Health Risk

• Dust Sampling Program

• Mineworker Medical Examination

Coal Mine Health and Safety Act 2002 Coal Mine Health and Safety Regulation 2006

NSW Government Gazette No.185 Specified Limits for Airborne Dust

Since 22nd December 2007All Mining Locations 2.5 mg of RESPIRABLE DUST per m3

10 mg of INHALABLE DUST per m3

Underground

0.12 mg of RESPIRABLE QUARTZ per m3

Surface 0.1 mg of RESPIRABLE QUARTZ per m3

Coal Mine Health and Safety Act 2002 Coal Mine Health and Safety Regulation 2006

NSW Government Gazette No.185

Respirable Dust & Quartz Sampling Frequency

Longwall Faces At intervals not exceeding 6 months on each

producing shift

Continuous Miner Panels At intervals not exceeding 12 months on each

producing shift

Other U/G, Open Cuts, CPP, Surface Crusher At intervals not exceeding 12 months on only one

production shift

Coal Mine Health and Safety Act 2002 Coal Mine Health and Safety Regulation 2006

NSW Government Gazette No.185

Inhalable Dust Sampling FrequencyLongwall Faces At intervals not exceeding 12 months on each

producing shiftContinuous Miner Panels At intervals not exceeding 12 months on only

one producing shiftOther U/G, Open Cuts, CPP, Surface Crushers At intervals not exceeding 12 months on only

one production shift

AIRBORNE DUST IN COAL MINESRESPIRABLE DUST & QUARTZ

INHALABLE DUST

Coal Services Pty Limited’s Standing Committee on Dust Research and Control (SDC) has produced this

booklet to promote a better understanding of the health effects and control of airborne dust.

Published byCoal Services Pty Limited

2008

Airborne Dust BookletTable of Contents

• Definitions of Respirable, Quartz, Inhalable

• Health Effects

• Sampling Method & Frequency

• Exposure Standards

• Control Measures

• Directions for Further Information

Airborne Dust Booklet

• Printed in December (20 000 copies)• Distribution will be by the Dust Samplers when

they are at mine sites• Copies of the booklet will also be made available

to Mines Rescue Stations and CS Health for inclusion in training courses

• The SDC Chairman will notify Mine Managers & District Check Inspectors and include copies of the booklet.

MDG 29

Guideline for the management ofdiesel engine pollutants in

underground environments

Produced by Mine Safety Operations DivisionNew South Wales Department of

Primary Industries

April 2008

MDG 29Workplace Exposure

The recommended maximum workplace exposure (mine atmosphere) for diesel particulate (DP) in the elemental carbon (EC) fraction when expelled from a diesel engine is 0.1 mg/m3

Coal Services Health & Safety TrustCD Production Revision 3

October 2008An Occupational Hygiene Manual for

the Coal Mining Industry

Keeping Coal Miners Healthy at Work

Copies are being sent to Mine Sites and

District Check Inspectors