BMAs journey to prevent Uncontrolled Heavy Vehicle Movements.

31st May 2011 Albert Scheepers - Manager Pre-strip & Contracts (BMA Blackwater Mine) Richard Collier - Manager Safety (BMA Saraji Mine)

Agenda

Introduction; BMA / Site (BWM/SRM) Overviews

Incident Observations

Initiative Focus Areas

Conclusions

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Who is BMA?

BHP Billiton Mitsubishi Alliance (BMA) is Australias largest exporter of

seaborne metallurgical coal.

Our mines have a combined production capacity of more than 58 million

tonnes per year.

BMA supplies high quality coking coals, weak coking coals, Pulverised
Coal Injection (PCI) coals and thermal coals to domestic and international customers.

BMA was formed in 2001 as a partnership between BHP Billiton and

Mitsubishi Development Pty Ltd.

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About BMA

BMA VALUES: We have an overriding commitment to: Safety and Environment Integrity High Performance Win-Win Relationships The Courage to Lead Change Respect for Each Other

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Our Operations

Clean Up Australia Day

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We have a strong history

Since 1968 we have shipped more than 1 billion tonnes of coal.

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Introduction
Mobile Equipment incidents identified as top Principal Hazard, with Loss of Control a major factor. BMA has undertaken extensive work (last 12 months) in regards to: Design, Construction and Maintenance of Mine Roads; Reviewing Dust Suppression Procedures; Application of emerging Equipment Technology Operator Training, Awareness and Accountability BMA now has measures in place and/or scheduled which we believe are leading industry practice.

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BMA Saraji General Layout

Bauhinia R2N/S, 4N DY(Nth) Fiddlewood R13N/S HCL Grevillia R14N/S P, HCL, DY(Sth) Ebony R9S, R11N/S HCU,HCL, DY(Sth) Hakea R15N/S DY(Sth)

Jacaranda R17N/S HCU

Dogwood R8S DY(Sth)

Acacia R1AN/S DY (Nth)

Coolibah

Acacia R0, R1

Industrial Area, Administration and Mining Offices, CHPP, ROM, Train Load-out and TAMS site entry

Blue boxes are current water stores

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Operations Overview

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Equipment Overview

Saraji Equipment Waste Material Fleets BMA 4 fleets Contractor 6 fleets Pre-strip Operations Topsoil Operations Procap & Wedge Operations Parting Operations Mud Operations

Coal Mining Fleets

BMA fleets utilised to Haul ~13Mt of coal per annum. 85 incl. water trucks and service trucks. FY12 ~63Mbcm

Total Number EME Trucks onsite Total Volume Truck & Shovel Fleets

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BMA Blackwater Layout

Blackwater Township

Operating Footprint

Administration Thermal Coal Plant CHPP and Tailings Dam South Plant Complex

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Typical Excavation - Blackwater

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Equipment Overview

Blackwater Equipment Waste Material Fleets BMA 3 fleets Contractor 10 fleets Pre-strip Operations Topsoil Operations Procap Operations Mud Operations

Coal Mining Fleets

BMA and Contractor fleets utilised to Haul ~20Mton of coal per annum. 123 incl. water trucks and service trucks. FY12 ~75Mbcm

Total Number Trucks onsite Total Volume Truck & Shovel Fleets

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Agenda

Introduction; BMA / Site (BWM/SRM) Overviews

Incident Observations

3 4

Initiative Focus Areas Conclusions

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Incident Observations

Majority of Loss of Control incidents involving

heavy equipment occur in hours of darkness

Majority occur on tertiary based surfaces Majority occur when returning empty Majority associated with over watering Failure to fully comply with Procedures
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Agenda

Introduction; BMA / Site (BWM/SRM) Overviews

Incident Observations

Initiative Focus Areas

Conclusions

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Focus Areas

People Human Factors Equipment Reliability; Standard Environment Manage nature Procedural Compliance Organisational
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Improvement Initiatives

PEOPLE Initiative Training & Signoff of Water Truck Operators including reduction in number of authorisations, Education & Hazard Awareness Reporting Reinforce employee accountability HOC Admin Comment All water truck operators reassessed and signed off on water truck assessment. Ongoing communication with workforce to highlight obligations to report unsafe conditions. Application of Just Culture Process where applicable. Holding people accountable for their actions. Scenario programming in a controlled environment.
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Admin

Admin

Use of Simulator for training

Admin

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Improvement Initiatives
EQUIPMENT

Initiative Ensuring additional equipment resources are in place Modifications to existing equipment New CAT road watering system evaluation Purchase of new water trucks Standardisation of existing water truck configuration and development of maintenance check sheet Procurement of Fit for Purpose Equipment eg Cat 657 scraper Installation of ground speed control on one site water truck

HOC Additional Redesign Admin Redesign Redesign

Comment Additional trucks sourced to ensure water truck available for each active strip. Modify water trucks configuration to limit risk of operator error and/or over watering Evaluation of new system by Saraji Maintenance Manager in the USA New ground speed control watering trucks to be introduced in 2011 Standard system in place for all water trucks and a process for all contractor water trucks. Provision of suitable equipment to allow routine sheeting of prestrip roads Systems to be installed on other water trucks
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Redesign Redesign

Improvement Initiatives Water Truck Compliance

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Improvement Initiatives New Water Trucks

Current Fleet WT4 (Saraji) fitted with after market ground speed control system Prestrip Water Trucks re-engineered to restrict the operation of all sprays at once. Ground Speed control kits purchased for retrofit. Contractor water truck installation to be undertaken.

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Improvement Initiatives

ENVIRONMENT Initiative Phase 1 of trial: Sheeting trials using competent material HOC Substitution Comment Trialled the use of reject material, gravel and Permian rock as road sheeting Elimination of Tertiary haul roads and sub-base Implemented

Phase 2 of trial: Sub-base of Substitution Permian sandstone or better on all circuits Phase 3:Use of thin layer of gravel Substitution or reject on down ramps and corners Grade control assessment and action process Admin

Supervisor visual assessment (Shift) and formal weekly grade survey of all circuits.
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Improvement Initiatives Permian Capping (Saraji)

Sub-base capping of Tertiary material; road widening; grade control

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Improvement Initiatives Road Design

All haul roads constructed as per requirements of SOP Road Design, Construction & Maintenance
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Improvement Initiatives

PROCEDURE Initiative Watering work instruction reviews HOC Admin Comment Document has been subject to numerous reviews and continual improvement additions Documented shift compliance inspection Incorporates sheeting material types available to deliver a safe working surface

Shift supervisor strip condition checklist Road watering risk assessment includes consideration of environmental conditions

Admin Admin

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Initiatives (W.I.P. - Blackwater)

INSPECTION AND ASSESSMENT Initiative Develop a Risk Matrix for watering which includes road gradient, material type, camber and corners. Generate a TARP as part of SOP covering Road Watering which identifies safe and unsafe situations by all CMW and actions to be taken to manage. HOC Admin Comment Draft designed and consultation with other BMA sites in progress. Draft designed and consultation with other BMA sites in progress.

Admin

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Draft Alberts Square Design/Construction Matrix

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Draft TARP (Blackwater)

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Improvement Initiatives

ORGANISATION Initiative Vehicle Restrictions on Operating Circuits License Restriction & Justification Process BMA reactivation of Luxor quarry to access additional gravel supplies Crushing facility for onsite competent material HOC Separation Comment Restrictions of non essential vehicular interaction on operating prestrip circuits Formal justification process in place to administer Site LV permits Sustainable delivery of required resources to maintain acceptable level of risk Investigating the use of onsite competent material as road base

Separation Admin

Admin

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Improvement Initiatives Reduced Traffic and Interaction

Light Vehicle Licensing All employees and contractors must provide written justification for LV permit Many persons do not require licenses now with 4WD buses in place for on site transport HV/LV interaction minimised (permit restrictions, go-line segregation, lookouts, SOP32 improvements)

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Agenda

Introduction; BMA / Site (BWM/SRM) Overviews

Incident Observations

3 4

Initiative Focus Areas Conclusions

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Key Controls that we believe enable BMA to achieve an acceptable level of risk

People holding accountable, awareness and

education

Equipment state of art technology; standardisation Environment - running surfaces constructed with Procedures Clear Work Instructions Organisational minimise HV/LV interaction; planning
to source/bank and placement of competent material. competent material; daily and weekly grade checks

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Conclusions

BMAs journey to prevent uncontrolled movement of The initiatives, we believe, will ensure an acceptable
level of risk is achieved whilst delivering production gains and reduced maintenance.

heavy equipment incidents has resulted in measures, which we believe, are leading industry practice.

There is no one Silver Bullet that will fix the problem,

rather a series of variables which need to be effectively managed.

Manage the Risks or They will Manage You

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