Gregory Crinum Mine Rotary Breakers Gregory Rotary Breaker

Gregory Crinum Mine – Rotary Breakers Gregory Rotary Breaker Old Lubrication System Gregory Crinum Mine 1 19 th of February 2004 Crinum Rotary Breaker New Lubrication System

Rotary Breaker – Lubrication System Improvements PROBLEMS • Lubricant being splashed on the Rotary Breaker chain and surrounding structures • Lubricant spillage causing an imminent workplace and safety issues • Unnecessary waste of lubricant • Environmental impact (Penetration into the soil, costly and unsafe disposal) Gregory Crinum Mine 2 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Lubricant spillage • Chain splashing lubricant over surrounding structures • Pools of lubricant laying underneath Rotary Breaker • Lubricant deteriorating floor plate and dripping into the ground Gregory Crinum Mine 3 19 th of February 2004

Rotary Breaker – Lubrication System Improvements OBJECTIVES • Improvements to current Automated Lubrication System • Addition of air operated pump to agitate lubricant prior to pumping • Addition of brushes for lubricant application • Ensure that lubricant reaches critical points on the chain Gregory Crinum Mine 4 19 th of February 2004

Rotary Breaker – Lubrication System Improvements COMPARISON Previous System Automated Lubrication System: Lubricant application for 10 seconds every 40 minutes Consumption: 205 Litre Drum of Mobil 630 or BP GR – XP 220 per month. (Not including down time due to shutdowns or other maintenance factors) Cost: 205 Litre Drum - $351. 35 Gregory Crinum Mine 5 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Improved System Automated Lubrication System: 300 m. L of Lanotec Heavy Duty Lanolin (HD) applied during 10 seconds every 8 hours (3 applications daily). Consumption: 205 Litre Drum of Lanotec Heavy Duty Lanolin (HD) will allow for 683 applications, which is equivalent in time to 7. 5 months. (Not including down time due to shutdowns or other maintenance factors). Cost: 205 Litre Drum – Price on application Gregory Crinum Mine 6 19 th of February 2004

Rotary Breaker – Lubrication System Improvements New System Installation • New Lanotec Lanolin drum • Air pump installed • Lubrication lines installed • Brushes installed Gregory Crinum Mine 7 19 th of February 2004

Rotary Breaker – Lubrication System Improvements 3 -MONTH TRIAL (Started November 2003) Results Improved Automated Lubrication System • Controlled and efficient application of lubricant • Lubricant application in critical areas • Excessive presence of lubricant in chain and surrounding structures eliminated • Lubricant waste factor eliminated Gregory Crinum Mine 8 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Equipment Life • • Chain life was approx. 4 -5 mths Chain life currently 3 years and still going! Sprockets wear reduced Deterioration of surrounding structures reduced Gregory Crinum Mine 9 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Performance & Costs • • Improved equipment efficiency Reduced maintenance costs Increased maintenance intervals Increased equipment life Reduction of lubricant drums in stock Down time and loss of production reduced Workplace health and safety impact reduced Disposal costs eliminated Gregory Crinum Mine 10 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Environmental • • • Lubricant is bio-degradable Non toxic Non carcinogenic Ozone friendly Safer to dispose Gregory Crinum Mine 11 19 th of February 2004

Rotary Breaker – Lubrication System Improvements Results • No lubricant spillage • System performing efficiently • Chain properly lubricated • Cleaner work area Gregory Crinum Mine 12 19 th of February 2004

Rotary Breaker – Lubrication System Improvements COST EFFECTIVE RESULTS 12 Months Expectations • Savings of $604. 19 in lubricant purchase per year • Maintenance costs reduced (equipment, parts and labour) • Lubricant usage reduced from 2460 Litres (12 drums) to 328 Litres (1. 6 drums) per year • Delivery and storage costs reduced • Handling and disposal costs reduced Gregory Crinum Mine 13 19 th of February 2004

BMA Savings (over 2 yrs) using the Lanotec Lubrication System Old System Lube System N/A Lubricant Cost $9, 200 Chain replacement(5) $30, 000 Labour on above $3, 000 Lost Production (30 hrs) $3, 000 TOTAL = $3, 042, 000 SAVINGS (2 yrs) = Gregory Crinum Mine 14 19 th of February 2004 Lanotec System $3, 000 $7, 500 NIL NIL $10, 500 $3, 031, 500

Rotary Breaker – Lubrication System Improvements INITIAL INVESTMENT • Chain Lube Pump/Spray unit • Installation TOTAL COST: Price on application Gregory Crinum Mine 15 19 th of February 2004

Rotary Breaker – Lubrication System Improvements CONTACT INFORMATION MARK PEATEY CHPP MAINTENANCE PLANNER GREGORY CRINUM MINE BHP Billiton Mitsubishi Alliance PO Box 1526 Emerald, QLD 4720 Phone (+61) 07 4982 8237 Fax (+61) 07 4982 8274 Email mark. m. peatey@bmacoal. com Gregory Crinum Mine 16 19 th of February 2004 STEVE GREEN WESTERN AUSTRALIAN BUSINESS DEVELOPMENT MANAGER LANOTEC AUSTRALIA PTY LTD Phone (+61) 07 3373 3700 Mobile (+61)417 638 004 Email sgreen@lanotec. com. au