Highwall Miner Bits

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Highwall Miner Bits

• Impacting Western Coal Markets

Rocky Mountain Coal Mining Institute June 2006
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Outline

• Overview
• Existing Operations
• Mine Planning
• Future Trends
• Market Impacts
• Conclusions

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Safety - 2005

• Mining Method NFDL Rate
• ADDCAR 0.00
• Surface Mining 1.48
• Underground Mining 5.15

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Productivity - 2005

• Mining Method
  TPEH
• Western Surface Mines
  22.2
• ADDCAR
  17.2
• Longwall Mines 5.0
• Eastern Surface Mines 4.2
• Non-Longwall Underground Mines 3.4

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Communication

• Real time info in the cab
• Web based storage
• Real time communication with
• home office (under development)

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Communication

• Real time info in the cab
• Web based storage
• Real time communication with home office (under
  development)

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ADDCARsExisting Operations

• MINE State Tons /
  Month
• Jim Bridger Wy 200,000
• Black Buttte Wy
  125,000
• Colowyo Co
  115,000
• Vigo In
  40,000
• Flint Ridge Ky
  120,000

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Summarize

of ADDCAR Jim
Bridger Year Tons (000)
Plant Burn 2003 490
6 2004 1,011
12 2005 2,058
25 2006 (Est) 2,800
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• Review ideas
• Vote on top candidates and consolidate
• Check requirements and restrictions
• Trim list to top 5-10 ideas

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Mine Planning

• Long term analysis is essential
• Synchronization of equipment
• Synchronization of qualities/ markets
• Keeping available wall

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Mine Planning

• Seam Height (ft) 2.5 30
• Hole Depth (ft) Typical 1,200
• Max 1,600
• Monthly Output Typical 125,000
  Max 250,000

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Future Trends

• Safety NO Finish Line
• Operations Trench Mining Honey Comb Mine Plan
• Reserves Colorado the most compliance
  bituminous coal
• Markets BTU matters
• Technology Steep dip, narrow bench, thin seam

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Medium Term Market Impacts of Highwall Coal

• State Tons / Yr (000)
• Western Wyoming 6,000
• Southern PRB 4,000
  
• Montana 2,400
• Colorado 1,800
• New Mexico 2,200
  
• Total 16,400

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Conclusions

• Highwall Mining in the West
• Reliable Supply
• Cost Effective
• Organic Expansion
• Gaining Momentum
• Who Would Have Thought ?