Mine VII Micare UnitMinera del Norte S.A de C.V

Coahuila -Mexico Coal Basins

PIEDRAS NEGRASPIEDRAS NEGRASEAGLE PASS, EAGLE PASS, TxTx..

MONCLOVAMONCLOVA

SABINASSABINAS

SALTILLOSALTILLO

UnidadUnidadMICAREMICARE

UnidadUnidadMIMOSAMIMOSA

PIEDRAS NEGRASPIEDRAS NEGRASEAGLE PASS, EAGLE PASS, TxTx..

MONCLOVAMONCLOVA

SABINASSABINAS

SALTILLOSALTILLO

PIEDRAS NEGRASPIEDRAS NEGRASEAGLE PASS, EAGLE PASS, TxTx..

PIEDRAS NEGRASPIEDRAS NEGRASEAGLE PASS, EAGLE PASS, TxTx..

PIEDRAS NEGRASPIEDRAS NEGRASEAGLE PASS, EAGLE PASS, TxTx..

MONCLOVAMONCLOVA

SABINASSABINAS

SALTILLOSALTILLO

UnidadUnidadMICAREMICAREUnidadUnidadMICAREMICARE

UnidadUnidadMIMOSAMIMOSAUnidadUnidad

MIMOSAMIMOSA

Micare was established in 1977

We Operate:2 Underground Mines1 Open Pit Mine2 Wash Plants

Micare’s Production:

7 millions tonnes of thermal coal annually.

Our Thermal Coal Client:“Comision Federal de Electricidad” Mexican Goverment Entity

Micare’s Coal Produces 10% of Mexico’s

Electricity

Mine Location

Geology-Column Type

- 2-Entry Slope Mine Access- 1 Vertical Ventilation Shaft- 4-Entry Mains- 2-Entry Longwall Gateroads- 24 Projected Longwall Panels- 180-340m Overburden Depth Range- 7 m3/tonne Average Methane Gas Content- 1.7 – 3.0m Coal Thickness- Average ROM Ash Content 48.7%

Mine VII Description

Tren de Controles

ARCOS OMEGA

MC-29

MC-52

Gateroad Development

- 8 to 9 Alpine AM-50 or IBS-130 road headers for mains and gateroad development- 2-entry gateroad, horseshoe shaped entries having dimensions 4m wide x 3m high- Steel arches 33 kg/m installed on 1m spacing with steel mesh between the arches- Pillars dimensions 40m x 150m- 2 face fans/section, 75/150 HP, blowing or exhausting - 914 x 3000 mm (36”x10´) fiberglass ventilation tube- Advance Rates: 20,000m/year, 190m/month/unit

Longwall Characteristics

Barre no

BAR RENO

BNO 1BN O 2

BNO 3

Barre no

BAR RENO

BNO 1BN O 2

BNO 3

g

g

- Panel Dimension : 200 – 250m wide, 600 – 2000m long - Joy Shearer 7LS1A, 932 KW- AFC American Longwall/Ryfama, 900mm, 2x560 KW- Roof support Fazos shields 1.5m wide, 500t capacity- RMI hydraulic pumps- Face voltage 4160 V

X°7

X°04

X°05

X°6

X°01

REGRESO

BANDA

X°02

X°8

X°06

Regreso 1

Regreso 2

Banda

Arrastre

X°07

X°03

X°17

X°04

X°9

Banda

Arrastre

Regre

so 1

Regreso 2

0+000 B

0+000 A286.704

286.667

X°1

X°T.V

X°1

INCLINADO ARRASTRE

INCLINADO BANDA

X°01

X°02

X°03

BANDA

REGRESO

REGRESO

BANDA

X°04

X°2

X°00

X°05

X°01

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DIRECCION DE ENTRADA

X°02

X°03

X°04

X°3

X°07

REGRESO

BANDA

X°08

X°03

X°10

X°04

X°05

X°09

X°11

X°10

BANDA

REGRESO

X°06

X°11

X°12

X°07

X°3

X°12

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X°08

X°09

X°13

Banda

Arrastre

Regre

so 1

Regreso 2

X°10

X°11

X°12

X°15

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X°14

X°01

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REGRESO

BANDA

X°6

X°01

Cuarto

deHe

rramie

nta

C. pesoTelesilla

s

Barren

oAgu

a Lim

piaPilasMo

v.

Com

presor

Int's.Elect.

Barreno

Cables

Barren

o

Pileta

Banda

Arrastre

Regre

so 1

Regre

so 2

0+000 B

0+000 A

Regreso

BANDA

RE GRESO

PTOX°A

6

Barr eno

3

V

IV

INTE RC

INTER

Barreno

P017

INTER S

P019

CAMBIO

DE

PENDIENTE

762.411 INCL

733.90 HORIZ

INT

ERS

P017A

P016

P016 P015

BARRENO

BNO 1BNO 2

BNO 3

63.20562.153

X°06

X°01

X°09

X°02

X°05

X°06

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X°08

X°02

X°03

X°04

X°05

X°06

X°14

X°16

X°13½

X°14

X°15

X°16

RE GRESO

MC.-049

X°01

X°02

X°03

X°04

X°05

X°01

X°7

REGRESO

BANDA

X°02

31 AGOSTO2012

31 AGOSTO

2012

31 AGOSTO2012

31 AGOSTO

2012

0+000 A 1 2 3 4

b-3 b-2

b-1

Cuarto

deHe

rramie

nta

C. pesoTelesilla

s

Barren

oAgu

a Lim

piaPilasMo

v.

Com

presor

Int's.Elect.

Barreno

Cables

Barren

o

Pileta

Barr eno

INT

ERS

A1287.006A2287.024

A3286.981

M2287.187

M1287.446

T.V.1T.V.2

T.V.3

X°06

X°07

X°03

X°04

MC.-048

X°05

X°8

M-38

M-39

M-40

M-41

M-42

M-43

M-44

M-45

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M-47

M-48

M-49

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M-50

M-38

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M-49

M-50

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M-53

M-11

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M-13

M-1 M-2

M-3

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M-5

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M-9

M-10

M-1 M-2 M-3 M-4 M-5 M-6 M-7 M-8 M-9

M-10

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M-20

M-14

M-15

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M-19

M-20

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M-24

M-25

M-26

M-27

M-28

M-29

M-30

M-21

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M-25

M-26

M-27

M-28

M-29

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M-31

M-32

M-33

M-34

M-35

M-31

M-32

M-33

M-34

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M-37

M-36M-36

M-37M-37

14,51

X°9

M-38M-38

M-39

M-40

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M-46

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M-50

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M-63

M-64

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M-53

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M-63

M-75

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X°10

M-1 M-2 M-3 M-4 M-5 M-6 M-7 M-8 M-9 M-10

M-11

M-12

M-13

M-14

M-15

M-1 M-2 M-3 M-4 M-5 M-6 M-7 M-8 M-9 M-10

M-11

M-12

M-13

M-14

M-15

31,72

Banda

Arrastre

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so 1

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BANDA

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Banda

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so 1

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REGRESO

BANDA

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RE GRESO

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Banda

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so 1

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T.V

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BANDA

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so 1

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MAIN SHAFT350 m3/h

Longwall Ventilation System

- Coal prone to spontaneous combustion- Utilizes “U” ventilation system- Ventilation provided to longwall face 20-25 m3/sec- Concrete seals are installed in crosscuts behind face

63.20562.153

Longwall Gas Control

* Gob gas wells* 90m spacing along panel, 30m off TG* 450lps gas well pump capacity* Gas wells completed 5m above coal seam* Slotted steel pipe casing

Automated Monitoring System (AMS)

Infrastructure

Automated Monitoring System (AMS) – The main objective of the AMS is to monitor in real time the gas concentration in the working faces and other mine areas such as conveyor belts and returns, safe guarding the personnel’s integrity and mine infrastructure.

The most common measured gases in coal mining are: Methane (Ch4), Carbon Monoxide (CO), CO-Smoke for conveyor belts, among several others.

The system can shut down electrical power to a mine section once the concentration goes above the configured value; the same applies to conveyor belts. This is accomplished by programming the system with the maximum allowed values.

Mine evacuation alarms are also controlled via the Automated Monitoring System.

Mine Control Room – Personnel are available all shifts to monitor the gas measurements in the mine. Feedback is given to supervisors about the mine gases concentrations and actions are taken accordingly.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

Mine V Mine VI

Mine VII

Historical Underground Mine Production Micare Unit

4M Tonne Annual Production Strategy

- Increase capacity of coal conveyance- Rebuild Existing or purchase new equipment- Skilled Personnel- Have available 4 Sets longwall equipment- Maintain 2 Operating Longwalls- Mine 4 Longwall panel per year

- Unexpected Geology Faults- 5 to 15 meters throw- Changing orientation- Narrowing long wall width- Spliting of Long Wall panel- Weak and stressed fault zone- Slow down roadgate development- Increase Long Wall moves- Excesive wear of equipment

4 MM T Production Constraints

Longwall polyurethane injection system

Negotiating Faults in Longwall Panels

Timely Fault Detection for Mine Planning- Reduce the size of the exploration grid (increased drilling)- Utilize seismic detection methods

Decrease Longwall Move Duration Times- Acquire spare components/parts in advance- Increase gateroad development rates- Increase productivity- Increase number of roadheader units- Reduce roof support cost- Rebuild equipment in-house

Action Plan to Manage Mining Constraints

S=3

S=7

S=3

S=7

S= 3-4 m

Banda

Arr astre

Regreso 1

Regreso 2

REGR

ESO

BANDA

BANDA

REGR

ESO

L-27

37

L-27

35

L-2736

L-2733

L-27

40L-

2741

L-2739

L-2742

18-0

5-1322

-06-

13

06-07-13

13-0

7-13

03-0

8-13

31-08-13

21-0

9-13

12-10-13

23-1

1-12

14-12-13

L-27

38

Geologic Fault Detection - Reflection Seismic Method

- 2km seismic line- 10 days surveying analysis- Detection of minimun 5mfault throw- 3 D seismic project to detect faults with <3m throw

Interpretación Línea 2723

Fault, Throw 9 m. Fault < 3 m.

S N

Geological Fault Detection - Reflection Seismic Method