Where Glencore Coal Assets Australia stands - Mark Winchester
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Glencore Coal Assets Australia has grown to be the largest coal producer in Australia with open cut and underground mines spread throughout NSW and Queensland. Glencore has very high regard for engineering and has sponsored the development of statutory mechanical engineers in NSW for more than a decade. This presentation looks at where Glencore stands in relation to safety and engineering, how this is managed within Glencore Coal, and some of the key challenges, direction and lessons.
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Where Glencore Coal Assets Australia stands - Mark Winchester
- 1. Glencore Coal Assets Australia Where We Stand Mark Winchester – Director of Engineering 29th Mechanical Engineering Safety Seminar - August 2019
- 2. Glencore Coal Assets Australia Where We Stand • Overview • Glencore at a Glance • Glencore Coal Asset Australia • Safety • Where we currently Stand • Where we are focused • Engineering • Where we currently Stand • Where we are focused 2
- 3. Glencore at a Glance Who We Are Glencore is a global diversified natural resource company and a major producer and marketer of commodities worldwide 3
- 4. Glencore at a Glance Where We Operate 4
- 5. Glencore production cap announcement • In February 2019, Glencore published a climate change statement that included a business decision to maintain our global attributable coal production capacity broadly to current levels (~150Mtpa). • This reflects the increased focus our shareholders are placing on climate change issues, including a number of shareholders who belong to the Climate Action 100+ initiative. • Glencore has a world-class coal business in Australia. • We will continue to produce coal and have no intention of divesting our coal portfolio • We will also continue to invest in projects that add value to our business and this climate change cap on coal production is just another consideration we need to manage. 5
- 6. We are one of the world's largest seaborne thermal coal exporters, as well as one of Australia's largest coal producers, with 16 operating mines across NSW and Queensland. • We provide work for almost 10,000 people • Produced more than 108 million product tonnes of saleable coal in 2018 OPERATIONS 2018 PRODUCT TONNES Rolleston Open Cut 15,177,000 Oaky Creek Coal 4,564,000 Newlands 5,522,000 Collinsville Open Cut 3,224,000 Clermont Open Cut 11,719,000 Hail Creek1 3,819,000 Bulga Coal2 9,023,000 Mount Owen Coal 7,639,000 Integra Underground 1,440,000 Liddell Open Cut 4,065,000 Ravensworth Coal 9,056,000 Mangoola Open Cut 10,561,000 Hunter Valley Operations3 9,983,000 Ulan & Ulan West 11,738,000 Glencore Coal Assets Australia 1 – Operational management from August 1, 2018; 2 – Mining at Bulga Underground finished in May 2018; 3 – JV with Yancoal operational from May, 2018
- 7. A Proud Coal Miner Glencore Coal Assets Australia 7
- 8. Glencore’s coal business in Australia Glencore Coal Assets Australia 8
- 9. Apprentices Glencore Coal Assets Australia • Apprentices indentured to Mine Sites • Mixture of On site & Offsite training including placement with local suppliers and OEMs, and external skills centre training • Internal training & life skills and community “payback” program • 2020 Apprentice Program recruitment plan has over 220 Apprentices participating throughout NSW & QLD 9
- 10. Graduates & Statutory Engineers • Engineering Development Programs • In-Charge Training • Graduate Program • Engineering Trainee Program • Commitment to develop and maintain Competent People Glencore Coal Assets Australia 10
- 11. Our Operating Asset Performance Glencore Coal Assets Australia • Surface Operations • Volumes grown from 400 eMbcm to 700 eMbcm • 2.5 million Truck Operating hours pa. • 500 thousand Shovel & Excavator hours pa. • We remain a Capital intensive business • Asset life, reliability and productivity essential • Right Equipment Strategies • Planning and Executing them Safely • Right People, knowledge, tools, parts and work environment 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2016 2017 2018 2019 2020 2021 2022 OperatingTime(hours) Volume(ekBCM) Truck & Shovel Performance NSW QLD Truck Operating Hours Shovel & Excavator Hours 11
- 12. Our Operating Asset Performance Glencore Coal Assets Australia • ROM Production reduced • Completion of mining at • Ravensworth UG - 2014 • Newlands UG - 2016 • West Wallsend - 2016 • Oaky No.1 - 2017 • Bulga Underground - 2018 • Tahmoor (sale) - 2018 • Productivity & Reliability Improved • Fit for Purpose Equipment • Wider Face widths • Automation - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 - 5,000 10,000 15,000 20,000 25,000 30,000 2016 2017 2018 2019 2020 2021 2022 Productivity(tph) ROMTonnes(kt)&OperatingHours Longwall Performance West Wallsend Ulan West Ulan UG Tahmoor Bulga UG Oaky North Oaky No 1 Newlands Integra Operating Time Productivity 12
- 13. Safety
- 14. Injury Performance Where we are • TRIFR and LTIFR have decreased 5 fold over the past decade • Also decreased 5 Fold in the previous decade • Whilst recognizing everyone for the improvement, there can be no respite • As we improve and the incident count drops - a renewed emphasis on sharing lessons • Every TRI has a full investigation that is presented to the GCAA Leadership Team in detail • Actions and lessons are shared • Important we share the lessons as an industry • Causal Investigations - instigated as a tripartite between the Union, Regulator and Operators promotes sharing lessons. 0 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019YTD TRIFR LTIFR 0 50 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 TRIFR LTIFR 14
- 15. Catastrophic and Fatal Hazards Where we are • 17 High Potential Risk Incidents (HPRI’s) in 2018 • 41% Mobile Equipment • 29% Isolation 15
- 16. Mobile Equipment • Vehicle Interactions remain a focus • Road Design & Road Rules • Vehicle Hierarchy • Operator Workshops • Graders, Drills, Dozers • Engagement of operators for solutions • Technology solutions • In Vehicle Cameras fitted throughout Light Vehicles (behavior & investigation) • Fatigue Seats being fitted throughout haul truck fleets • Proximity Detection and Collision Avoidance in feasibility 16
- 17. Fatigue Monitoring • Guardvant fatigue monitoring system installation nearing completion across all GCAA Haul Trucks • Chart shows number of events recorded at a Site 17
- 18. Proximity Detection and Collision Avoidance • Surface Collision Avoidance • Collision Avoidance to be operating by 2025 • Continue to work cooperatively with manufacturers, suppliers and industry bodies - ACARP, EMESRT, ICMM. • Level 7 Awareness / Level 8 Advisory – progressing to Feasibility with a trial site planned for 2019 • Underground • Longwall – Komatsu proximity detection system remains in trial at Ulan West • Development - Continuous Miner and Shuttle Car trials with Strata system being implemented at Oaky North 18
- 20. Isolation Group isolations • Group isolations for major shutdowns • Opportunity to improve Group Isolation in specific applications • Targeted at large complex isolations, eg. CHPP Shutdowns, Dragline/Shovel Shutdowns • Large number of people, Multiple shifts, Multiple isolation permits, Additional isolations to conduct work, Interacting work • Opportunities • Planning process, timing and details • Permitted Work – more robust link to required Isolations • Isolation verification methods better defined • Verification for the work party • Role clarity and training • Task Management example • 36 pages • Work Orders • Work Authorisation • Group Isolation Permit • CHPP Isolation Plan (job specific) • 2 x Confined Space Permits • Emergency Plan for Confined Space • JSA for the actual task • 5 People • 27 Signatures • 54 ticks 20
- 21. Lifting • Our Management Plans Include: • FHP 9 – Lifting & Cranage • Safecoal Rule 3 – Never enter under suspended loads • Complex Lift Permits • JSA’s, SLAMs, Pre-Lift Checks • Competency • Rigging • Dogging • With all of the above – What is required to use a chain block, and when does it become “not simple” ? • Our findings indicate the current training competencies and licences delivered to industry don’t adequately address the transfer or load shifting aspects. 21
- 22. No Plan – No Work 22
- 23. Engineering
- 24. Our Operating Asset Base 12 Open Cut Mines • 10 Draglines • 84 Shovels & Excavators (large) • 476 Haul Trucks • 230 Dozers Glencore Coal Assets Australia - Managed Plant and Infrastructure 4 Underground Mines • 4 Longwalls • 20 Continuous Miners • 56 Conveyors 13 Coal Wash / Handling Plants • 277 Conveyors • 81 Bins • 260 Screens 1500 Active Users • 30,000 Registered Plant units • 750,000 Work Orders pa. • 4.65 million pages printed per annum Managed Plant & Infrastructure Value ($b) OC UG Total Gross Value $10.25 $5.62 $15.9 Net Value $4.67 $2.14 $6.8 24
- 25. “Engineering business that produces coal” •Asset management is a part of “being in control” • Equipment & management systems “engineered” to the specific environment. • Fit for purpose equipment • Equipment Strategies that keep equipment fit for purpose • Adequate Maintenance Resources applied effectively • Disciplined Work Management Systems & Standards • Operate to plan. • All efforts and outcomes are measured Where We Are Fit For Purpose Eliminate loss Equipment Strategies Resource & MOS Personnel Development Framework Asset Management Framework Technical & Mining Engineering Framework 25
- 26. Asset Management Framework Where We Are Common framework Implemented specific for: •the Equipment at Site •the Conditions and Strategy for the Site 26
- 27. 29th Mechanical Engineering Safety Seminar - August 2019
- 28. Equipment Strategies • Our Journey • Undergrounds • Surface Operations • CHPPs • 2017-2018 Refocus • Over 12 months Where We Are • Establish a base Equipment Strategies for all CHPP plant types. • Compare and implement against 12 CHPP’s existing WO’s • 50+ Plant types in Tier 1 & 2, with additional focus on • Conveying systems • Electrical systems • Structural Integrity • All ES and WO’s customised to sites and RACI for ongoing management by sites implemented by completion • Involvement of key roles to provide quality and ownership • Stat Engineers in ES workshops and sign off at site • Trades in workshop and WO commission at site 28
- 29. Structural Integrity Where We Are • High Capital Intensity / Significant Cost of Downtime • Drive need to extract longer, more reliable life from assets • Structural integrity has become a more predominant issue: • Bins • CHPPs & Long Life Infrastructure • Excavator booms & sticks • Mobile plant chassis = Trucks, Excavators, Dozers • Need to demand more: • Manufacturers • Design for life & maintainability • Strategies for critical inspection areas and repair plans • Manufacturing QA 29
- 30. Structural Integrity • Operations • Better define the strategies for maintaining infrastructure • Asset Specific – critical areas identified, • More focus on cleaning & protection strategies • Measure performance – don’t drift into failure Where We Are 30
- 31. Other Projects Where We Are • NDT and Weld Repair • Process control network protection • AFC Chain Modelling • Battery Electric Vehicles for UG Coal • Sustainable manless longwall steering • Digital Data 31