Lessons learnt from XLP mining and ways to mitigate capital cutbacks. Presented by Charl Viljoen

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1 Lessons learnt from XLP mining and ways to mitigate capital cutbacks Presented by Charl Viljoen

2 Index SAFETY AT HOSSY INITIAL STRATEGIC DRIVERS FOR MECHANISATION HISTORY OF HOSSY SHAFT LESSONS LEARNT FROM THE APPLICATION OF XLP MINING CAPITAL CONSTRAINTS CONSIDERATIONS ON THE IMPACT ON PRODUCTION AND SAFETY DRAWINGS AND DESIGN LAYOUTS

3 Safety Hossy LTIFR LTI 3 MONTH 12 MONTH LIMIT LTIFR Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0

4 Initial Strategic drivers for mechanisation Improved safety due to reduced exposure of employees on the face Improved productivity (oz/man) Reduced exposure to labour cost increases Increased skills development of labour force Change in workforce demographic assisting in tackling some social issues and reducing the effect of HIV/AIDS

5 History of Hossy Shaft A series of project meetings were held with the first taking place October 2001 where project 1,1 (XLP project) was born. Subsequent meetings in 2002 revolved around the development of a suitable suite of equipment for XLP mining. Underground trials started at karee 1 B shaft employing a room and pillar layout In 2004, a decision was made to mechanise all the new shaft projects at Lonmin. This build up plan did not progress as expected up to 2008.

6 XLP Bolter The XLP bolter utilizes a single boom to drill and install 1.6 m split resin bolts. Roof bolts are installed on a spacing of 1m (dip) by 2 m (strike).

7 XLP Face rig The XLP Face Rig utilizes two booms for the drilling of the face compared with the single boom for the bolter. The face is drilled with a 1.8 m drill steel providing an effective hole length of 1.6m.

8 XLP Dozer The broken rock from the stoping panel is removed using the track mounted XLP Shark Dozer. Blasted ore is removed from the panel by throw blasting (30%), and the remainder by dozing it down the face of the panel to the ASD.

9 Lessons Learnt From The Application of XLP Mining Low Availability of the mechanised equipment used for stoping operations. The Interdependency of machines in an XLP cycle meant reliability issues were compounded. Skills shortage and Skills retention. The XLP fleet required a large amount of face length (5 panels per suite of equipment) There was a lack of mechanised culture at all levels of the organization. Running cost and the stay in business replacement capital for XLP equipment is much higher than conventional equipment. Change to Hybrid Mining

10 Current XLP and Hybrid Layout

11 Considerations on the impact on production and safety. Historically conventional mining proved not be as safe as Mechanised.(Expected an increase in LTIFR) Build up period of conventional crews for stoping operations Expanding of surface infrastructure (for example change house and lamp room facilities) due to the increased labour force. Conversion and training of over compliment mechanised machinery operators for conventional mining. Machine appreciation and MEN/Machine inter phasing. Water Control and Road Maintenance program s. Unexpected fast build up to 550M2 per crew ( free breaking front in roadway)

12 Current Capital Constraints Economic recession 2012 required further change in thought process regarding XLP on Hossy Shaft. The completion of the Capital Footwall development on the bottom levels were deferred for a year.(figure?) Hossy needed to improve its current production levels to off set the higher cost of the remaining XLP suits The current Block on 15 level identified as an opportunity to increase ore reserve and up production output with in 9 months.

13 Hossy Shaft Layout Proposal

14 Hossy Conversion from Mechanized Breast to Up/Downdip Layout Muckbays

15 No New Idea!!

16 Safety

17 Safety

18 Safety

19 Funky slide drawings..

20 Hossy Production and Safety Hossy is currently running at a LTIFR of 2.65 (very few mines run as low as this ) Hossy is well on track to return to it s design production profile of tonnes. Currently at tonnes/month

21

22 Questions Thank you!

23 Questions Thank you!