Australian Mining November 2014

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PROSPECT AWARDS WINNERS

MINE OF THE YEAR

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TAKING OUT THIS YEAR’S MINE OF THE YEAR AWARD IS PEABODY’S MILLENNIUM COAL MINE

T

he coal mining industry is currently undergoing one of its most difficult periods in a number of years. The price has been falling, costs have been rising, and many mines are cutting back their workforce as they attempt to deal with the current economic situation. However, not every mine let itself fall into these same dire economic straits, with some changing the way in which they operate, how they mine, process, and also how they address safety one site. Peabody Energy’s Millennium coal mine has bucked the trend, and for that it has won not only Coal Mine of the Year, but also the Australian Mine of the Year award. In 2013, the Millennium mine achieved record clean coal production and sales of 3.4 million tonnes, had a total cost reduction of 20 per cent

planning, mining method, pit setup, organisational culture and fleet configuration which included the introduction of an electric shovel which had not been used at the site before. The mine had previously sued conventional truck and excavator mining methods before the change in operators. It also found efficiency benefits by teaming up BHP Mitsui’s Poitrel project, where the companies have agreed to share coal infrastructure with a total annual product capacity of 6 million metric tonnes. Peabody says Millennium has implemented an innovative approach to extracting its coal by using multiple mining methods across the mine based on the geology, pit conditions, and cost effectiveness. It decided to implement a combination of strip mining, terrace mining, and dozer push is utilised at the site, resulting in the productivity benefits.

and reached over one million man hours without a lost time injury. The mine achieved these milestones all whilst transitioning from a contractor-run mine to an owner-operator model. Peabody attributes its success to improvements in mine

A MORE STREAMLINED PRODUCTION MODEL AIDED THE COAL OPERATION

An electric rope shovel was also introduced which has been set up to maximise overburden and increase overall productivity at the Millennium mine. The mine also created a streamlined production model where better planning of dumping and efficient sequencing of mining blocks has encouraged high fleet productivity. Additionally, the redesign of haul roads and introduction of real-time equipment health monitoring has improved the availability and reliability of equipment fleet.

It has also increased the feed to the coal washing plant through short interval controls and operational focus which greatly contributed to the record of the amount of clean coal production in 2013. Peabody said the culture of the mine has been critical to its AUSTRALIANMINING

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THE STEP CHANGE PROCEDURE IS SUPPORTED BY AN EXTENDED MINE LIFE

success and is demonstrated through the mine’s focus on a positive attitude and behaviour towards safe production, operational efficiency, value stream-based decisions, personal accountability, and performancebased recognition. The judges said Millennium was a great example of a stepchange that produced positive outcomes as innovation and efficiency initiatives were put into day-to-day practice. “In the current coal market, it’s important for miners to review their operations and identify where changes can be made that will help to improve efficiencies,” one judge said. “But this is only half the battle. Implementation of changes and the resulting successes are often hard-fought and Peabody should be congratulated for these great results.” Peabody Energy’s Millennium coal mine is located in Queensland’s Bowen Basin and produces coking and PCI coal for export to Japan, Korea, China and India. Operations at Millennium began in 2006, and the mine employs 475 people. In 2011 the mine embarked on an expansion project which increased will increase the mine life by approximately 16 years and ROM coal production to 5.5 million tonnes. The expansion footprint covers an area of 966 hectares and will see Millennium mine in two new lease areas. It will mean the mine can operate two pits at one time to reach the desired production level.


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