August 22 nd, Highwall Mining in India: extending mineable reserves a presentation for CMPDI.

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August 22 nd, 2013 Highwall Mining in India: extending mineable reserves a presentation for CMPDI.

Introduction Caterpillar Highwall Mining History The Method The Highwall Miner Questions 2 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Caterpillar Highwall Mining History Beckley WV United States First delivered in 1994 Over 80 machines delivered Caterpillar since July 2011 3 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Installed base and potential Cat 4 Canada Russia US Cat 72 Cat 2 India China Cat 1 Colombia Indonesia Cat 1 Australia South Africa Source: HWM Status List, Beckley, WV 4 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

What is Highwall Mining Mining coal from a visible, horizontal coal seam, by making rectangular, parallel, unsupported drives, with an unmanned cutter head and coal transport system, controlled from a mining unit positioned outside the drive, in front of the highwall. Additional method to underground mining and open cast/pit mining increase the extractable reserves extend the mine life. 5 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

What it does Typical coal reserve recovery of 50 to 70% depending on geological conditions. Mines coal from exposed coal seams when economical surface mining limits are reached. Mines parallel entries to a depth of 300 m without personnel working underground. Flexible System can mine multiple seam heights. 6 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Typical applications When economic strip limit is reached Soft Strip Limit: Wait until coal price rises? But: Highwall mine before backfill! Hard Strip Limit: Under mountain, and/or Steep dipping seams Highwall Mine now! 7 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Contour mining Seams Outcropping under high Overburden 8 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Contour mining (Typical Appalachian Application) 9 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Sterilized Coal Sterilized under Surface Obstructions (Spoil heaps, roads, forest, ) 10 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Sterilized Coal (Mining Under Spoil Heaps) 11 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Trench Mining Sterilized under forest and/or and hills 12 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Trench Mining Trench Mining Reduced Environmental Footprint 13 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Trench Mining Trench Mining under spoil heaps 14 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Requirements for Highwall Mining Competent coal. Competent immediate overburden. If overburden is not competent, coal may be left as roof. Coal seams dipping from +5 to -15 degrees. Relative flat seams, no faults Coal seams thicker than 80cm. 15 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Web- and Barrier Pillars Web pillars ensure support of OB Barrier pillars prevent cascading collapse Calculation method to be approved by the local Mine Safety Authorities 16 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

The Caterpillar Highwall Miner 17 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

The Caterpillar Highwall Miner Length base 16.6 m Width base 8.3 m Length pushbeam 6 m 49 pushbeams per miner Max. force: Push in: 136 t Pull out: 276 t 18 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Cutter Module Low seam cutter module Capable of cutting coal from 80cm to 150cm and 295cm wide Mid seam cutter module based on CM235 Capable of cutting coal from 110cm to 305cm and 350cm wide The cutter modules are quickly interchangeable 19 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Pushbeams Pushing / pulling cutter module Conveying Coal Sturdy, simple, 2 moving parts only Enclosed, no External Ash Low Ground Pressure Protect cables/hoses Coupled to a String: Hor. rigid: Straight Drives Ver. hinged: Follow seam undulations 20 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Hose Reel Power chain for cutter module Electrical cables Hydraulic lines Cooling water lines Methane sensor cable Control cables Hoses / cabling protected by steel plating Auto unwinds/winds in trough on pushbeams 300 meter 21 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Anchoring System Stabilizes the Highwall Miner. Two Machine mounted drills. Two high strength 2,5 m pins. 22 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Operator controls Operated from the cabin Fully graphical touch screen interface with PLC Machine diagnostics Automated mining mode 23 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Power From the grid 60Hz at 4.2kV or 50Hz at 6.6kV both 2000kVA Or from generator set 1500 kw Caterpillar Generator Set 50 kw Caterpillar auxiliary set Build in a sound attenuated container Mounted on tracks (optional) Tropical / Arctic version 24 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Navigation & Horizontal Steering Navigation by state of the art Fiber Optic Gyro (FOG) on cutter module Accurate heading Accurate determining of position Steering by hydraulic powered steering arms on cutter module Active pillar width control Prevents cutting into previous mined drives Optimizes and Minimizes Pillar Widths Optimizes coal recovery 25 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Following seam contours Automatic following seam: Cutter motor current Gamma Ray Sensor (Optional) 26 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Mobility Tracks for positioning in the mine, relative short distances. Longer distances on heavy weight special transport low loader. Long distances; disassembled, operational 3 4 days. 27 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Key Characteristics Penetration up to 300 meters Dip of up to -12 degrees Maximum monthly production typically between 40,000 and 100,000 tonnes depending on site characteristics Operates with a 3 / 4 man crew No external ash dilution. Typically 50%-70% recovery Personnel safety 28 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Support during feasibility and planning process Caterpillar Highwall Mining Quick Scan Mining Engineering Aspects Productivity, Efficiency, TCO 29 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Caterpillar Highwall Mining Quick Scan Caterpillar Highwall Mining Department provides assistance in: Technical Feasibility Studies Recoverable Reserve Calculations 30 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Mine Planning Caterpillar Highwall Mining Department provides assistance in: Highwall Mining related Mine Planning Integration in existing Mine Planning 31 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Productivity, Efficiency, TCO Caterpillar Highwall Mining Department can assist you in Total Cost of Ownership calculations: Production that can be achieved considering site and operational aspects. Finance costs Operational and Maintenance costs Personnel costs 32 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI What is experience of the HWM, working at SECL? Specific challenges faced,related to Indian mining condition.? 33 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI The majority of HWM systems have been sold at North America, what is the reason it has not expanded in other regions? 34 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI What is the time required for installation & commissioning of the machine? 35 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI What is the time & resource required for moving the miner from one bench to another? What is the maximum gradient and speed, machine can travel? 36 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI How is safety ensured for the drive created by the HWM? 37 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI When mining down dip, there is possibility of water accumulating in the open drive. In case there is a coal seam below that seam, with potential future UG mining, there will be a safety issue. 38 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI When mining up dip, there is a potential accumulation of Methane Gas. Will this create a safety issue? 39 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI What is the economic viability of highwall mining in India, considering the cost of coal produced by either UG or OC mining. 40 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI Coal is not a scarce commodity in India, why should HWM be considered at all in India? 41 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Questions provided by CMPDI Is a highwall miner an UG or an OC machine? Different safety standard apply. 42 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Any other Questions? 43 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING

Thank you for your attention. 44 / Caterpillar Confidential: GREEN / WHEREVER THERE S MINING