Peter Long, Executive General Manager, Sedgman Asia

1. Modern Coking Coal Technology
Peter Long, Executive General Manager - Asia
13 February 2012

2. SEDGMAN
Recognised for leading
innovative solutions for the
resource industry
1. COMPANY OVERVIEW
2. LOCATIONS AND PERSONNEL
3. ADVANCED TECHNOLOGY FOR COKING COALS
4. PROCESS DESIGN
5. UGH DESIGN FOR CHPP
6. DESIGNING FOR EXTREME WEATHER VARIANCES
7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE
LOCATIONS
8. UHG CHPP CONSTRUCTION
13 February 20122
AGENDA

3. • 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
13 February 20123
1. COMPANY OVERVIEW

4. 13 February 20124
2. LOCATIONS AND PERSONNEL
Currently Executing 15 projects and 12 operations contracts world wide
South America 80 Staff
Office Santiago
Projects Bocamina CHP
South Africa 79 staff
Offices Johannesburg
Projects Atcom (Sth Africa), Benga, Zambeze (Mozambique),
Boseto (Botswana)
Mongolia / China 95 staff
Offices Ulaanbaatar Beijing, Shanghai
Projects UHG Stage 1, UHG Stage 2, UHG Stage 3, Phu Kam
Operations UHG Management
Australia 805 Staff
Offices Brisbane (head office), Townsville, Mackay & Perth
Projects Bengalla Upgrade, Caval Ridge, Lake Vermont 2, Maules Creek, Middlemount Upgrade,
Narrabri, Red Mountain Upgrade, South Walker Creek
Operations Agnew, Blair Athol, Cannington, Coppabella, Ernest Henry, McArthur River, Moorvale,
Middlemount, Mt Isa, Red Mountain, Sonoma

5.  Coking coal is a high value product
 Currently > US$300/t
 Expected long term > US$150/t
 Maximum recovery is major driver for project return
 Design Elements for Maximising Recovery
 Analysis of resource
- Best practice techniques for bore core analysis
and interpretation
- Simulations for accurate prediction of yield for
plant
design 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
13 February 20125
3. ADVANCED DESIGN FOR COKING COALS

6. 13 February 20126
3. ADVANCED DESIGN FOR COKING COALS

7. • Dense Medium Cyclones for coarse coal
with circuits designed for optimum
efficiency
 High medium : coal ratios to maximise efficiency
 Large 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 recovery
 Latest Reflux Classifier technology for fine coal to
balance operation of coarse and fine circuits
 Latest 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
13 February 20127
4. PROCESS TECHNOLOGY

8.  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 module
 60 t ROM Dump Hopper with Feeder Breaker
 Roller Screen & Secondary Sizer station
 1000 t Plant Feed Surge Bin
 Radial Stacker for Coking Product
 Radial Stacker for Thermal Product
 Radial Stacker for Rejects and Tailings Dam
 Phase 2 – 10 Mt/a two CPP modules
 Additional 350 t ROM Hopper with Feeder
Breaker
 Roller Screen, Secondary & Tertiary Sizer
station
 Reject Bin & Tailings Dam
 Phase 3 – 15 Mt/a three CPP modules
13 February 20128
5. UHG DESIGN FOR CHPP

9.  Nominal throughput 900 t/h (ar)
 Two stage DMC
 1300mm and 1000mm
diameter cyclones
 -50mm +1.2mm (ww)
 Spirals
 -1.2mm (ww) +0.250mm
 Flotation
 Jameson Cells (B6000/20)
 -0.250mm
 Centrifuges
 Coarse Coal
 Fine Coal
 Screen bowl
13 February 20129
5. UHG DESIGN FOR CHPP

10.  Extreme temperatures -40 to +40o
C
 Structural
 Euro Code 3 provisions
 Chinese low temp steel (D & C Grade) in
impact areas
 Reduced design stress
 Notch tough welds
 CPP, bins & transfers contained in fully
insulated sheds
 Significant heating system
 2.6MW installed heating capacity for
Phase 1
 Civil
 Cast in heating
 Building foundations below frost line
 Climate controlled concrete pours
 Winter crash drainage
13 February 201210
6. DESIGNING FOR EXTREME WEATHER VARIANCES

11.  Electrical and Controls
 Buried and heated cable racks
 Double insulated cabinets
 Enclosed MCC and HV systems
 Instrument selection driven by temperature
variance
 Winter setting which fundamentally changes
the trip and shutdown sequencing
 Process
 Assumes shed >0˚C
 Flotation dewatering selection
 Thickeners are covered, sheeted and heated
 Pipes between buildings are insulated, heat
traced, have Δ50˚C rubber expansion joint
 Automated plant shutdown and drain should
heating system fail
 Tailings
 Pipes insulated with 10mm rigid polyurethane
foam (cyano-polyester based) and protective
shell
 Operate at above critical freezing velocity
 Mechanically drained by diesel pump
13 February 201211
6. DESIGNING FOR EXTREME WEATHER VARIANCES

12. 13 February 201212
7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS
Issues to be considered
 Logistics
 Systems and procedures
 Training requirements
 Maintenance

13.  Logistics
 Spare holdings on site
 Delivery time of materials
 Vendors
 Quality control
 Systems and procedures
 Developed well in advance
 Remote links to monitor facility off site
 Technical support
 Training
 Mongolian supervisors/key managers trained in
Australia
 Sedgman managers and trainers
 Ongoing development on site
 Maintenance
 Majority of activities performed by site personnel
 Specialty maintenance tasks
- OEM’s
- Source from external providers
- Train on site resources and procure
appropriate tools/equipment
13 February 201213
7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS

14. 13 February 201214
7. OVERCOMING OPERATIONAL CHALLENGES IN REMOTE LOCATIONS
Construction in Winter

15. 13 February 201215
8. UHG CHPP CONSTRUCTION
Stage 1 Construction

16. 13 February 201216
8. UHG CHPP CONSTRUCTION
Stage 1 & 2 Construction

17. 13 February 201217
8. UHG CHPP CONSTRUCTION
Complete!

18. 13 February 201218
QUESTIONS?