Rajant MMC Minexpo Sept 2008

1. Mine Monitoring & Control Improvements MineExpo, 23 September 2008 A Case Study of Kennecott Utah Copper’s Bingham Canyon Mine Scott Beer Information Systems & Technology Rio Tinto Gary Anderson Senior Vice President Rajant Corporation

2. Rio Tinto Background • World’s 3rd largest mining company • Employs over 30 000 people in 40 countries 30,000 • Worldwide operations supply minerals and metals, including – Gold – Silver – Coal – Iron – Aluminum – B t Borates – Copper • 2007 Revenue $33.5 Billion $33 5 2

3. A Broad Geographic Spread of Operations source: Rio Tinto 2008 Chart Book 3

4. Strength in Diversity Revenue in 2007 = $33.5B source: Rio Tinto 2008 Chart Book 4

5. Kennecott Utah Copper Corp (KUCC) • Wholly owned by Rio Tinto • 2nd largest copper producer in the United States • Provides about 13% of US copper needs • Located in the Salt Lake City Valley • Operational for more than 100 years • Produced more copper, 16.4 million to es, than any tonnes, t a a y mine in t e world. e the o d • Approximate annual production – 272,000 tonnes of copper – 500,000 ounces of gold , g – 4 million ounces of silver – 30 million pounds of molybdenum – 0.9 million tonnes of sulphuric acid (by- product of the smelting process) d t f th lti ) 5

6. KUCC Location 6

7. KUCC Aerial Photo 7

8. The Challenge • Mining operations run non-stop • Wireless network requirement to manage and control – 85+ 300–ton haul trucks – 12 shovels – 62 pieces of auxiliary gear (e.g. dozers graders backhoes stemmers (e g dozers, graders, backhoes, stemmers, water/fuel/cable trucks) • Dimensions - 2.5 miles across x 1 mile deep (furthest dump site is 6.4 miles from the pit) • Wireless network requires an enormous amount of coordination, scale, planning and support infrastructure • Wireless Mobilit (onl small n mber of fi ed wireless nodes) Mobility (only number fixed ireless • Scale - Able to connect hundreds of devices and grow the network on demand • Any change in the network cannot disrupt the rest of the network 8

9. Key Application Requirements • Modular MineCare® - Equipment health monitoring and maintenance system designed to reduce mobile equipment lifecycle costs • Modular Dispatch® - Mine management system that provides optimized haul truck assignments, GPS based GPS-based equipment positioning, equipment health monitoring, maintenance tracking & blending • Caterpillar Aquila® - Drill Management System that makes drilling and blasting operations more accurate, productive, and profitable. • Caterpillar CAES® - (Computer Aided Earthmoving System) optimizes excavation equipment performance for precise grade and slope control. • Caterpillar VIMS® - (Vital Information Management System) a machine management tool that provides a wide range of vital machine functions through sensors that are integrated into the vehicle • Komatsu VHMS Communicator - (Vehicle Health Monitoring System) provides the means to monitor the health of major components on large machines, enabling the remote evaluation of the machine’s condition. • Michelin MEMS - (Michelin Earthmover Management System) is a tire-monitoring system that ( g y ) g y provides real-time data on tire air pressure and temperature. • P&H Centurion – Shovel control system providing increased shovel productivity and reliability • Banlaw Fuel Track™ - Electronic fuel monitoring system that provides a secure hydrocarbon management solution • Novariant High Precision Global Positioning System (GPS) - Ground-based high precision GPS system 9 G dP b SSR

10. Future Applications • Additional Equipment health for Shovels, Drills, and Aux equipment • Lubricant Management • Vision systems – Drill navigation – Bucket recognition – Video Surveillance (safety monitoring, mine mapping, collision avoidance and security). • Voice Communications – P t bl h dh ld phones can utilize th Wi Fi wireless network Portable handheld h tili the Wi-Fi i l t k for communication within the mine and external to the mine. These VoIP phones do not rely on the services and coverage from the cellular companies. – Many VoIP phones have a dual-mode which allow the phone to connect to a Wi Fi network or a traditional cellular network if Wi-Fi available. • Photogrammetry – Unmanned Aerial Vehicles (UAVs) – Photogrammetry is the science of making measurements from g y g photographs. The output of photogrammetry is typically a map, drawing or a 3-D model of some real world object or scene. Many of the maps are created with photogrammetry and photographs taken from UAVs. 10

11. Vendor Selection Summary 1. One wireless network for all applications • RF Noise • Maintenance, Troubleshooting & Support 2. Application segregation and p pp g g precedence 3. Compliance to Industry Standards (802.xx). 4. The ability to cover an ever-changing topography without continuously moving, adding and rebuilding infrastructure such as towers. 5. Direct vendor support with commitment to the mining industry. 6. Network redundancy with no single points for failure. 7. Willingness to work with application vendors to integrate a cohesive system. system 11

12. Vendor Selection Technology • Mesh or Fixed Infrastructure • Rooted or non-Rooted • Static or Dynamic • Reliability • Redundancy • Bandwidth • Security • Backhaul – More than ONE 12

13. Why Rajant? • Commitment to Mining • True Mobility • Manageability – Quickly Builds Complex Infrastructure & Scale y p – Dynamically Adapts to Changes in: • Network • Environment • Movement of Nodes – Forms Self Organizing Structure • Support – Installation, Training, Technical Support, Remote Monitoring & Upgrades 13

14. Rajant Background Founded in 2001 Privately Held – Profitable – Growing Corporate C C Commitment to Mining – Formed Mining Division 2007 – Hired Key Mining Engineers (50 Years Exp) Proven Capability in Scaled Deployments – Kennecott at Bingham Canyon – Rio Tinto – Iron Ore of Canada– Rio Tinto, Mitsubishi Corporation & Canada Labrador Iron Ore Royalty Income Fund – El Segundo – Peabody Energy – Australian mines Service, Service, Service Supports Heterogeneous Equipment 14

15. Rajant Background World Class Board of Advisors – Dr. Jonathan P. Peck, Ph.D. – Founder of Aquila, Professor and CEO of Peck Tech Consulting – Dr. Kevin L. Moore, Ph.D., P.E.– Distinguished Professor of Colorado School of Mines – David Lauriski – MSHA Administrator – Ron Rudokas – RF Genius, IEEE – Scott Beer – Rio Tinto IS&T Worldwide Industry Partners – Mine Site Technologies – Carlson Software – CAT Dealers 15

16. Rajant BreadCrumb - Wireless Mesh 802.11x Compatible Dynamic Mesh Networking Agile, Adaptive Mobile – Extremely Fast y Reconnect No LAN Controller or Root Node N d required i d Self Forming, Self Healing Supports Multiple Gateways State of the Art Security Multiple VLANS/SSIDS 16

17. The Solution for Kennecott Initial Deployment of 140 BreadCrumbs. Additional 60 BreadCrumbs for Aux Equipment, Small Vehicles, Dozers, Graders, Shovels, Drills, etc… Each BreadCrumb has 2 Radios 17

18. Rajant Wireless Mesh 18

19. Software Management Tools BCADMIN® AND BC COMMANDER® Graphically M i G hi ll Monitor, Control and Manage the wireless network Show Connections and Bandwidth Status & Configuration Information Security Management Automatically Upgrade Software on all Units 19

20. Rajant Service and Support Availability to Customer 24/7/365 Case tracking/RMA response time Service Level Agreements Managed Service Agreements Response to Emergencies On Site and Off Site Support Install and Deployment Team on Staff “Service in Mining is Everything” 20

21. Rajant Service and Support Service Staff Can Scale to Support Mine Schedule Ch S h d l Changes Has Training Staff & Materials Software Updates – No Cost Warranty – 12 Months Extended Warranty – 48 Months y “Service in Mining is Everything” 21

22. Rajant Service and Support Site Design for future additions Site Survey Verification/Validation y / Network Management Additional Services include: – on-site engineering – on-site training – remote monitoring e ote o to g – installation and configuration assistance “Service in Mining is Everything” 22

23. Rajant Service and Support Site Survey/Site Design Project management? Project Collaboration using eRooms. What A li ti Wh t Applications to Deploy now? t D l ? What Applications to Deploy in the Future? Coordination Install with other Deployments Advance Testing of Equipment/Applications placed on the Network? – Test operations before installing on a network – Work out the bugs off site instead of on a Production Network! 23

24. Financial Benefits and Results • Operational Cost Savings • Production Boost • Using “Real-Time” data running simultaneously on various applications to monitor and manage its copper mining operations • Quick Wins estimate savings – $13,000,000 in the first 6 months of operation • Haul trucks in maintenance bays – averaged 24 for 2007 – less than 10 for first eight months of 2008 24

25. Metrics 25

26. Follow Up • What Happens When It’s Done? – Who supports? – How do they support - remote/local? – RRADS? – Services? – Training? • Rajant Future Project/Plans – Autonomous Mining – Collision Avoidance – Proximity Detection – Real Time Personnel/Equipment Tracking – Machine Guidance 26

27. Future • New Hardware and Software • Defined by Mining Industry • Higher Bandwidth • Multiple Frequencies • Enhanced Security • Remote Management and Support • Integration with Other Systems 27

28. Thank You. Scott Beer Gary Anderson Information Systems & Technology Senior Vice President Rio Tinto Rajant Corporation scott.beer@riotinto.com ganderson@rajant.com ganderson@rajant com 28