Ross Carter

Wirtgen Surface Miner 4200SM

NEW TECHNOLOGY APPLIED TO DELIVER REAL

BENEFITS AT NEW ACLAND MINE

DISCLAIMER

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IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this document constitutes investment, legal, tax or other advice. The information in this document does not take into account your investment objectives, financial situation or particular needs. Before making an investment decision, you should consider, with or without the assistance of professional securities adviser, whether an investment in NHC is appropriate in the light of your particular investment needs, objectives and financial circumstances. Nothing in this document should be considered a solicitation, offer or invitation to buy, subscribe for or sell any security in the United Sates of America (“US”) or in any place in which, or to any person to whom, it would be unlawful to make such an offer or invitation. The distribution of this document outside Australia may be restricted by law. Persons who come into possession of this document who are not in Australia should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. Neither this document nor any copy hereof may be transmitted in the US or distributed, directly or indirectly, in the US or to any US person including (1) any US resident, (2) any partnership or corporation or other entity organised or incorporated under the laws of the US or any state thereof, (3) any trust of which any trustee is a US person, or (4) and agency or branch of a foreign entity located in the US. By accepting this document you agree to be bound by these limitations. NHC has prepared this document based on information available to it. Although reasonable care has been taken to ensure that the facts stated and opinions given in this document are fair and accurate, the information provided in this document has not been independently verified. Accordingly, no representation or warranty, express or implied is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this document. To the fullest extent permitted by law, none of NHC, its directors, employees or agents or any other persons accepts any liability for any loss whatsoever arising from any

use of this document or its contents, or otherwise arising in connection therewith.

OVERVIEW

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New Acland Mine – Seeking step change improvements

Structured Trial - Apply Technology to Local Conditions

Recommendations & Next steps

Outcomes

Background Wirtgen Surface Miner – Basic Principals and Technology

Worldwide market leader in mobile

machines for road construction and road

rehabilitation

WIRTGEN GROUP:

TWO LINES OF BUSINESS

ROAD TECHNOLOGIES MINERAL TECHNOLOGIES

Growth potential in terms of mining and

processing of mineral raw materials with

Surface Miners and Crushers

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WIRTGEN GROUP HEADQUARTERS:

FOUR NEW FACTORIES

WIRTGEN GROUP HEADQUARTERS:

FOUR NEW FACTORIES

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WIRTGEN SURFACE MINER

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Cutting, crushing and loading in one step;

replace multiple processes

Rotating drum with cutting tools to leave a

clean floor

Steerable and height-adjustable crawler

tracks

4200SM:

Adjustable cutting depth:

200 mm – 830 mm

Drum width 4200 mm

Wirtgen GmbH

Wirtgen GmbH

APPLICATIONS BY ROCK TYPE

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454 units sold as per May 31, 2014

Background Objectives Results Conclusions Recommendations

Cutting Technology – Drum Design

PRINCIPLES OF SURFACE MINING –

CUTTING TECHNOLOGY

OVERVIEW

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Outcomes

Wirtgen Surface Miner – Basic Principals and Technology


CHALLENGES IN COAL MINING

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Weakening coal pricing trend

Increasingly difficult deposits

Intensified environmental restrictions

Increased international competition

Seeking alternative mining technologies

Highly selective mining

Low unit costs

Low impact on the environment

New challenges

NEW ACLAND DEPOSIT

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Multiple thin seam mining

Banded coal plies with thinly bedded

sandstone, mudstone and siltstone

layers

47 plies in total

0.23 m average coal seam thickness

Highly selective mining required

WIRTGEN SURFACE MINER

PERFORMANCE PARAMETERS

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Surface Miner

Performance

Rock properties

• UCS

• Tensile strength

• Abrasivity

• Density

• Rock mass structure

Machine operating settings

• Cutting depth

• Advance speed

Pit design and

scheduling

• Working width

• Working length

• Dimension of turning area

• Allocation of trucks

OVERVIEW

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Outcomes



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Discontinuous: Multi-handling

Multiple machinery for rock breakage & stacking

and loading

Well-known practice

MODE OF COMPARISON

Loading

Stacking

Ripping 1.

2.

3.

Conventional mining (CM) system Surface Miner (SM) mining system

Continuous system

One single machine for rock breakage and

loading

New technology

KEY OBJECTIVES OF COMPARISON

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Productivity Quality

Health, Safety and

Environment (HSE) Unit costs

Conventional mining

vs.

4200SM

Particle

Sizing

Coal Loss

and dilution

ROM* coal

Dust

Noise

Safety Ergo-

nomics

Carbon

emission IB:

AUD/bcm

Production

Variability

Number of

machines

required

Coal:

AUD/bcm

ROM= Run-of-mine

Machine

Efficiency

Productivity

BCM/Hr

4200SM

Availability

KEY PERFORMANCE INDICATORS (KPIs)

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KPIs refer to conventional system

Productivity

HSE aspects

ROM coal Quality

Commercial aspects

Evaluation KPIs Units Comments

Ramp up Percent % Account for training.

Coal - Avg Productivity t/op hour Monthly production x ramp up schedule.

- Max Productivity t/op hour Based on estimates in max thickness.

- Min Productivity t/op hour Based on estimates in min thickness.

Parting - Avg Productivity bcm/hour Monthly production x ramp up schedule.

- Max Productivity bcm/hour Based on estimates in max thickness.

- Min Productivity bcm/hour Based on estimates in min thickness.

Shifts Operating shifts/day Based on NPV Study

Days Operating days/week Based on NPV Study

Noise Limitations dB Average, 1 metre from machine on 4 corners.

Non noise attenuated maachine

Mechanical Availability % Note: (scheduled - downtime) / scheduled

Other KPIs assessed but no numerical limitation set.

1. Whole body vibration in operator cab

2. Top size of coal produced to maximise wash plant efficiency

3. Fine coal generation less than 2mm not to exceed limitation of dozer/loader system

4. Loss and dilution assessments compared to dozer/loader system

5. Fuel usage per operating and meter hour

6. Cutting bit replacement life in coal and parting conditions

7. Consumable costs other than cutting bits

OVERVIEW

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Outcomes


Outcomes

WIRTGEN 4 MONTH STUDY

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Collecting data

Analysing data

Calculations

Compare different

results to develop

reasonable production

rate range for each

machine

Site-specific

assumptions

Production Rate

Range

Theoretical estimation

Historical data

Reporting system

Time studies

In-field trials

CONCLUSIONS CM - SM

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Performance

Area

Parameter Surface Miner

Productivity # Machines Replace 3 Machines with Single Surface Miner

BCM/Shift Exceed Conventional Mining Rate

HSE Environmental Lower noise, diesel consumption and dust

Ergonomics Excellent visibility and low WBV

ROM Coal Quality ROM Sizing Reduced top size and less fines

Siderite intrusions Removed potential for blocking

Unit costs Cost inputs Less machine and labour

Unit Mining costs Significant reduction

HEALTH, SAFETY AND ENVIRONMENT

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Conv. Mining Surface Miner

Noise Higher noise emission level per

bcm Lower noise emission level

Dust More dust emissions per bcm

No installed suppression system

Less dust emissions

Installed suppression system

Carbon emissions More fuel usage per bcm Less fuel usage per bcm

Risk Management

No vertical edges

Well-known practice

Vertical edges

New mining system

More interaction machinery and

personnel Less interaction on work area

Ergonomics High WBV exposure

Twisting to overview work area

Low whole body vibration(WBV)

Rotating cab and seat

HEALTH, SAFETY AND ENVIRONMENT

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Machinery interaction on mining area, CM Machinery interaction on mining area, SM

Dust emission, CM Dust emission, SM Operator survey

dozer.mp4

SM.mp4

HSE: FUEL USAGE

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Surface Miner System delivers less fuel usage , so less carbon emission

44% reduction in liters per hour

77 % less fuel usage liters per BCM

QUALITY: IMPACTS ON CHPP

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No problems observed in handling

of 4200SM ROM coal

First observations: less energy

consumption

PSD trial results indicate

improvements in coal handling

Better handling of siderite coal

seams

ROM COAL QUALITY

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Conventional Mining Surface Miner

Particle Size Distribution

Wider PSD range

More fines

More oversize material

More consistent material

Less fines

More target size product (2-40mm)

Impact on CHPP More energy consumption Less energy consumption

Handling of siderite Oversize siderite rocks cause

bogging and crusher wear

Siderite milled in pit

Passes through CHPP

QUALITY: PARTICLE SIZE DISTRIBUTION

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Range of CM PSDs wider, SM

produces more consistent material

SM produces less fines and more

target size product (2 – 40 mm)

Surface Miner produces 12.5 % of

fines <2 mm, CM produces 14.8 % of

fines <2 mm

[mm]

[mm]

OVERVIEW

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Outcomes



QUALITY: LOSS AND DILUTION

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Fluctuation around the interface can be described as sine-curve with amplitude of 25 mm with period: 6 m

(operator adjusts depth after 3 m)

Assumptions based on assessment of NAC personnel, survey, own observations and Wirtgen experience

Theoretical 10% improvement in coal recovery

Input parameter

Amplitude [m] 0.025

Period Characteristic curve 1

Integral boundary 0 - π

Half-period length [m] 3

Cutting lane length [m] 500

Cutting width [m] 4

Square length [m] 6

sine-equation y=A*sin(bx+t)

A Amplitude

b Period

t Phase

Sine-Area Equation Area=Cutting lane length/Period length*(∫sin(x)dx/π)*A*half-period length

Dilution Eqaution Dilution/(Dilution+Seam volume)

Recovery Equation (Seam volume-Loss)/Seam volume

Loss Equation 1-(Seam volume-Loss)/Seam volume

Thin partings layer

Desired partings layer

RECOMMENDATIONS

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Establish a site based Continuous Improvement Team (Maintenance, Production and Technical Services) to optimise performance

Continued data collection and analysis across all seams and conditions

Increased detailed information on rock mass properties highlighted as advantageous

Re-assess of Surface Miner performance to identify improvements due to advanced operator skills and experience (including machine configuration)

Further Study to integrate Surface Miner performance with CHPP recoveries

Potential benefits to be gained form central scheduling of Coal and Parting mining

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Thank you.

Questions?

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Ross Carter