Coal Operations

C A PA B I L I T Y S T A T E M E N T

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A LEAdINg PrOvIdEr Of MINErAL PrOCESSINg A N d A S S O C I AT E d I N f r A S T r u C T u r E S O L u T I O N S TO T h E g LO B A L r E S O u r C E S I N d u ST rY

Sedgman provides all services required to operate and manage ChPP assets

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Table of Contents
4 7 14 16 18 19 20 21 21 21 22 Sedgman operational certainty Benefits of engaging Sedgman rigorous strategic framework Operations profiles International activity recent Major Projects Emphasis on health, safety and environment Approach to quality assurance Industrial relations and employee retention design and process innovation research and development

Sedgman is: A provider of all services required to operate and manage ChPP assets The first engineering company to use 3d modelling in coal processing and handling plant (ChPP) design The winner of multiple awards for safety, ChPP design and operations in Australia holder of the biggest market share of ChPP projects in Australia in the last six years over 50% developer of more than $Aud 1.7 billion of ChPPs since 2003 Processor of >20Mt/a of coal under client operational contracts.

Sedgman Limited 2011 Australia ABN 86 088 471 667

Cover: Adjusting the Jameson cell isolating valves at Coppabella ChPP, Bowen Basin, Queensland, Australia. Client: Macarthur Coal. Opposite: Sonoma 800 t/h ChPP, Bowen Basin, Queensland, Australia , with raw water dam in foreground.

Sedgman
operational certainty
A leading service provider
Sedgman Limited is a leading provider of mineral processing and associated infrastructure solutions to the global resources industry. What differentiates Sedgman is the simplicity of our solutions, the certainty and quality of our delivery, our safety focus and our commitment to continual improvement. Sedgman values the long-term relationships built with leading mining companies for whom we have undertaken the design, project delivery and operation of resource handling and preparation plants. Meeting minerals and coal clients' needs with advanced processing and materials handling technologies has placed Sedgman at the forefront of new global mining development. having one of the largest in-house coal-specific engineering workforces in the world contributes to Sedgman's operations success. Being actively involved in many of the major coal processing and handling facilities developed since the mid1990s has resulted in effective and efficient design expertise and operational understanding.

Key benefits include: Enhanced productivity through maximum run time resource recovery optimisation Process efficiency improvement Effective safety practices Waste reduction Increased throughput rates fewer breakdowns Lower facilities operating costs Effective equipment utilisation.

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Key drivers that differentiate Sedgman coal operations

Sedgman provides all services required to operate and manage coal handling and processing plant (ChPP) assets. from vastly experienced operator-maintainers and site managers to asset managers and operations support staff, we have the capability to maximise a client's return on investment. Sedgman operations has successfully executed various ChPP operational models, from owner-operator to contract operation. Our safety, environment and asset management and operations support continue to set new industry standards. We can operate Sedgman designed plants or those designed by others. 4

ready access to advanced design inputs from 200-plus engineers and 100-plus operations personnel assures clients of the very best operational solutions and outcomes. Building on trust, transparency and foresight A growing number of clients trust Sedgman to build, own and operate or to manage their plants through long-term contracts. features of Sedgman contract options offered include: ChPP project participation and risk transfer via Sedgman Build, Own and Operate (BOO) or Build, Own and Operate and Transfer (BOOT) schemes Long-term contracted operations management of clients' existing plants

S E d g M A N ' S S A f E T Y, ENvIrONMENT ANd ASSET M A N Ag E M E N T A N d O P E r AT I O N S S u P P O rT CO N T I N u E TO S E T N E W S TA N dA r d S

Major and minor plant upgrades that minimise disruption to production Improvement of existing operations to maximise resource optimisation and facility performance depth of talent, providing assurance of experienced backup and expert advice with one of the world's largest coal engineering and operations workforces numbering more than 500 professionals across a diverse range of disciplines An enviable record of performance, safety, reliability and efficiency through effective processing solutions Shared risk (gain/pain) performance structures.

The maintenance strategy incorporates condition-based and predictive methods rather than fixed-time methods. Whereas conventional plant maintenance involves replacing or servicing equipment on a fixed timeline, Sedgman's advanced inspection and monitoring systems result in effective maintenance outcomes. The method reduces maintenance costs considerably, with equipment only replaced when required. Plant availability increases dramatically the plant still needs regular maintenance but has more maintenance checks than repairs.

a consistent approach to all clients Sedgman uses a consistent methodology to operate across all sites. A strong focus on building in-house expertise ensures that the knowledge obtained at any one site can be applied for the benefit of clients at all sites. By creating this synergy, we have the ability to utilise experienced operators to a new site without impacting the existing operations. When Sedgman commences at a site, the new operationsmaintenance team undergoes an in-house competency training program to ensure it is highly proficient from the outset. This proven system enables us to provide any number of highly qualified staff to start new plants or take over brownfield sites. A further initiative that benefits clients is the use of a longterm maintenance outlook. The whole-of-life efficiency of the plant is maximised by a strategic approach that reduces wastage without compromising long-term maintenance performance.
Top Left: Conveyor inspection at Moorvale 600 t/h ChPP, Bowen Basin, Queensland, Australia. Client: Macarthur Coal. Top Right: Surge bin at red Mountain 1,000 t/h ChPP, Bowen Basin, Queensland, Australia. Clients: Peabody Energy / BhP Mitsui Coal.

CLEAr CLIENT BENEfITS INCLudE SuPErIOr PrOCESSINg EffICIENCIES A N d A B O v E I N d u S T r Y- S T A N d A r d P L A N T AvA I L A B I L I T Y

Lower operating costs Benchmarking across the Australian coal industry confirms that all Sedgman-operated plants are in the lowest quartile of operating costs per feed tonne.

Clear client benefits are: Superior processing efficiencies meeting or exceeding annual budget throughput and product tonnes design drivers integrated into operations ensuring optimisation of output performance and safety Low operating cost risk profiles minimised via a cycle of proactive maintenance planning Plant availability high annual run hours, above industry standard

An exemplary industrial relations record.

Best-for-site operations solutions Sedgman Coal Operations structure covers five vertically integrated business models that work seamlessly to provide best practice, best-for-site solutions: Owner-operate ChPP infrastructure designed and built by Sedgman engineers (BOO and BOOT schemes) Long-term contract operate clients' existing ChPPs Engineer, procure, construct (EPC) or engineer, procure, construct, and manage (EPCM) clients' plants develop and operate upgrades of existing plants Supply on-call operations support and performance audit services.

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Benefits of engaging Sedgman

Enduring relationships Sedgman remains fully committed to maintaining strong, lasting and mutually rewarding relationships with all clients. Some of our long-term operations contracts extend more than a decade. We continually leverage our engineering experience and process knowledge accumulated over 30 years to add value to ongoing and new client relationships. We continue to partner with clients to provide reliable and cost-effective solutions to their processing needs. Building lasting and mutually profitable relationships is the key to the next benefit maximising client returns. maximised return on investment hands-on experience and whole-of-life ChPP operation ensure clients benefit from cost-efficient processing that expedites coal to market timeframes. Sedgman's management structure, low overheads and absolute focus on the delivery of value for money means the services of highly skilled and experienced senior professionals are offered at competitive rates. The workforce structures and maintenance systems Sedgman has in place reduce overheads significantly. Less personnel and less equipment are used, underscoring our principle of simple, certain quality. guaranteed performance rigorous performance guarantees fully satisfy criteria agreed with clients. When designing and building ChPPs, Sedgman offers robust and practical guarantees that ensure optimal plant performance. Similar performance guarantees can be incorporated into operations contracts for existing plants and can encompass: Throughput and availability Actual plant yield compared to the theoretical yield for a particular raw coal type, using LIMN simulation model outputs as the basis of the guarantee Efficiency of major process units Moisture content and reagent consumption density control (specific gravity) functionality Product reclaim and train load out Sedgman's guarantees ensure agreed performance criteria are met continually throughout the operations contract. This is achieved by routine audits, typically conducted sixmonthly. routine daily and monthly audits also ensure plant operational efficiency is optimised.

increased availability Sedgman designs plants to operate for a minimum of 7000 hours a year in harsh, often remote environments, setting an attainable industry benchmark based on reliable technologies and processes. Because we operate plants that we design and build, we continuously strive to improve the safety, reliability and efficiency of the solutions we provide. Our operations and maintenance management services produce reliable availability and throughput outcomes that are sustained in a safe environment year after year. Commercial standing Established in 1979, Sedgman Limited was listed on the Australian Stock Exchange in June 2006. This followed a period of sustained growth as a leading provider of processing and infrastructure solutions to the global resource industry. With over 800 personnel and a market capitalisation of approximately $300 million, the company is well placed to maintain its global leadership role and provide clients with certainty of successful completions on-time and on-budget.

Commercial approach A flexible commercial approach ensures premium outcomes for productivity, increased revenue and lower costs. Every contract is negotiated to ensure superior returns for the client.

fOCuS ON ThE CLIENT I S C E N T r A L TO T h E SEdgMAN SErvICE MOdEL

Knowledge transfer The unique learnings of Sedgman's broad experience in coal handling and preparation are brought to every operation. Innovations and process improvements in Sedgman-operated ChPPs are captured in a knowledge base for future use. Similarly, knowledge gained by our design, construction and commissioning groups is consolidated and shared through an integrated business process in a cycle of continuous improvement as demonstrated in our integrated business model in figure 1.0. This model, with key learnings feeding in at every stage of the cycle, helps to establish new industry benchmarks for efficiency, safety, plant shut down, availability and costs per tonne for preparation and handling. The distribution of learnings between sites produces consistency of operations relevant to a wide range of capacities and variable resource qualities. Operations solutions are developed and simplified, ensuring the delivery of simple, certain and cost-effective quality. Benefits of Sedgman's business model cycle of continuous improvement: / / S E d g m a n / C Oa L / O p E r at i O n S database of knowledge to maximise process and handling efficiencies Systems that ensure clients' plant and equipment are operated and maintained to optimal standards A wealth of operational experience at all our operational sites, supported by an experienced, oncall team of technical professionals Achievement of optimal plant availability and reliability targets

Key features of the Sedgman Operations Model described in figure 2.0 include: Autonomous site teams Centralised support Lean operational teams Effective maintenance strategies Efficient use of equipment Low overheads Client focus.

The way Sedgman processes each experience back into continuous improvement, Sedgman continually improves technologies and techniques to protect and enhance the whole-of-life value of our clients' plant investments. While every Sedgman-operated site has its own decentralised management team, our head office can relay key learnings or technology benefits developed for any one site to every site. We have extensive expertise at every site and within our centralised operations support team we collaboratively strive to achieve KPI's, optimise and improve. On-call processing and handling expertise Significant savings can be achieved by outsourcing operations to Sedgman, with our processing knowledge enabling us to optimise outcomes for each coal plant. We can also help existing operators improve operations through consultancy agreements. The expertise of more than 30 process engineers on staff is readily available to our clients. If difficult process issues arise, our review mechanisms and strong peer support ensure the right people are focused on developing and implementing the best solution. We can also provide highly experienced operator-maintainers to any site until an issue is resolved.

uncompromising safety and environmental standards

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Sustaining Capital Works

Operations Consulting Service

Client relationship

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plant Operations and maintenance

Consulting Services

A T E R E

Operational readiness

CLiEnt FOCUS

project Feasibility

Commissioning procurement Construction management

project definition

procurement Construction

Engineering design

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Figure 1.0: The Sedgman integrated business model

Site 3

Site 2

Head office support

Site 1

Electrical engineers Process egineers Maintenance engineers Mechanical engineers Administration

Management Support hSE Support Training hr / Ir

n decentralised autonomous management teams n Centralised resources and overheads

Figure 2.0: Sedgman Operations Model - sharing Technical, resources and Management Support across multiple sites ensures innovation and continuous improvement is implemented at all sites as well as reducing site overheads.

Top left: Process testing at red Mountain 1,000 t/h ChPP, Bowen Basin, Queensland, Australia. Clients: Peabody Energy / BhP Mitsui Coal.

Advanced operations management systems enable us to tailor equipment, maintenance plans or management strategies to match site requirements. Sedgman's operating strategy identifies factors affecting efficient and consistent processing of rOM coal into product coal and establishes a methodology and procedure to perform, monitor and correct those factors. Monitoring, reporting and systems rectification is aided by a direct link between Sedgman's Brisbane support team and the mine site via online access to both the local server and operator interface. Operations Key performance indicators Sedgman's rigorous reporting requirements record key performance indicators including: / / S E d g m a n / C Oa L / O p E r at i O n S Safety Throughput Product yield recovery utilisation and efficiency of fixed and mobile plant facility availability Adherence to coal quality specifications variability by product type of ash and moisture railed Meeting train loading performance targets Optimisation of water consumption.

Streamlined maintenance Incorporation of CMMS computer-based maintenance software allows historical analysis of equipment performance to optimise future operating and maintenance practices. Maintenance performance is able to be monitored and optimised centrally in Sedgman's Brisbane headquarters, reducing overheads. By using CMMS across all Sedgman's current operations, routine maintenance procedures are able to be continuously improved. CMMS allows procedures, Job Safety Analyses (JSAs) and schedules to be easily linked to routine jobs, ensuring correct documentation and lowering the safety risk.

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The focus of Sedgman operations support: Optimising facility performance Extracting optimum recovery from the available resource Predicting future resource and process optimisation changes Identifying facility bottlenecks and identifying re-bottlenecking strategies Establishing robust long-term maintenance plans Assisting site-based personnel in effective resolution of operational issues.

new era for technical solutions Sedgman is now making widely accessible its perfected technologies which protect and enhance the whole-of-life value of plants and lift the benchmark of services available to the coal industry. Sedgman's operations support team offers on-call specialist support not only to existing contract operations, but to clients throughout the industry. The Sedgman offer of independent expertise can significantly reduce operational risk, increase safety, boost throughput and improve overall plant efficiency. regular structured audits or call-out 'hot issue' remediation by Sedgman address: Management systems human resources, safety and training Metallurgical and process engineering Mechanical and materials handling engineering Electrical and controls engineering Structural and civil engineering drafting Project and construction management Administration support and document control.

S I g N I f I C A N T S Av I N g S C A N B E A C h I E v E d B Y O u T S O u r C I N g O P E r A T I O N S O r C O N S u LT A N C Y AgrEEMENTS

Left: Commissioning phase at Middlemount ChPP, Bowen Basin, Queensland. Client: Middlemount Coal. Top: Sedgman offers the foremost experts in its field. Next page: Stockpiling at red Mountain 1,000 t/h ChPP, Bowen Basin, Queensland, Australia. Clients: Peabody Energy / BhP Mitsui Coal.

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h Av I N g O N E O f T h E L A r g E S T I N - h O u S E C OA L- S P E C I f I C E N g I N E E r I N g W O r K f O r C E S I N T h E WO r L d CO N T r I B u T E S TO S E d g M A N ' S O P E r AT I O N S S u C C E S S

rigorous strategic framework

The following standards are applied to Sedgman's strategic management framework. asset management and maintenance Asset management plans are developed specifically to suit site characteristics which cover component management, periodic inspections and known defects. Clearly defined, regularly reviewed maintenance strategies are assigned to critical equipment. The strategies contain the best mix of predictive, preventive and run to failure activities using CMMS, and ongoing evaluation provided through reliability engineering. routine maintenance procedures, JSAs and maintenance schedules and monitoring programs are developed for all equipment items. Staffing levels and maintenance schedules are matched against the client's production requirements. Scheduled maintenance can be programmed to take advantage of non-production periods to minimise delays. Major shutdowns are only scheduled after consulting with the client. maintenance Services

Maintenance services arranged and coordinated as part of Sedgman operations contracts include: Mechanical, electrical and controls Materials handling equipment Mobile equipment servicing Condition monitoring Lubrication Sampling equipment audits Major repairs/shutdown activities on mechanical, electrical and materials handling equipment Major repairs on mobile equipment hydraulic maintenance Certified weigher calibrations radiation instrument calibrations Belt maintenance (eg belt splicing) Provision of cranes.

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Operation procedures training Sedgman plant operators are trained to comply with client and industry competency standards through approved training materials. The competencies are assessed in accordance with relevant occupational health and safety legislation and Sedgman minimum standards which align with the national standards of nations in which we operate. In Australia, the Sedgman Training Program consists primarily of training standards implemented by the coal mining industry.

O P E r AT I N g P r O C E d u r E S A r E d E v E LO P E d W h I C h E N A B L E P L A N T O P E r ATO r S TO OPTIMISE ThE COAL rECOvErY PrOCESS fOr INdIvIduAL ChPPS

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SEdgMAN OffErS rOBuST ANd P r AC T I C A L g u A r A N T E E S T h AT E N S u r E OPTIMAL PLANT PErfOrMANCE

reliability engineering The equipment reliability framework across Sedgman's ChPP operations is based on proactive maintenance techniques such as failed component analysis, repetitive failure analysis, root cause analysis and maintenance strategy reviews. These techniques combine to form a failure investigation methodology focusing on incident evaluation, incident data analysis, corrective action implementation and corrective action control. These include: Oil sampling and analysis Citect control system trend review Thermography vibration analysis data analysis (CMMS) visual inspections Biroscopic inspections.

Process circuits in the coal preparation plant are continually monitored. Product quality variations due to changes in the characteristics of the feed coal or changes in plant conditions are adjusted by the operators to improve coal quality and recovery within the limits of the installed plant. mobile equipment operating Sedgman possesses extensive coal operations experience in both rOM coal and product coal stockpile management. The current mobile equipment fleet for our Australian operations includes 10 Caterpillar tracked dozers (8 x d11, 1 x d9, 1 x d8) and one 992 Loader for the specific purpose of stockpile management. These machines are all manned by Sedgman employees trained in-house and who collectively have worked in excess of 100,000 hours. Learning management system In mid-2010 Sedgman introduced a new learning management system that captures information about the skills and qualifications of our employees, administers course attendances and delivers online content and assessment for compliance-based training. The Sedgman Learning Management System provides a consistent approach to managing training information and enables managers to more easily obtain real-time information about their staff capabilities to provide best-for-project skills matching.

Benefits include: Improved equipment performance reduced equipment and plant downtime reduced maintenance spend Improved equipment and plant availability Prolonged equipment life Increased equipment and plant productivity.

CHpp operating procedures Site-specific operating procedures are developed which enable plant operators to optimise the coal recovery process for individual ChPPs. The objective of these procedures is to maximise the recovery while still achieving the required product ash and total moisture.

Top left: Sonoma ChPP, Queensland, Australia. Client: Sonoma Mine Management. Top right: Operating the ChPP at Middlemount Mine, Bowen Basin, Queensland. Client: Middlemount Coal.

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Operations profiles
Coppabella ChPP
12 years Macarthur Coal detailed design, Construction and Operation (1998-present) Sedgman has operated the ChPP at Coppabella Mine in Queensland since initially building a 600 t/h plant for Macarthur Coal in 1998. Seamless operations have continued since, incorporating progressive plant upgrades to 800 t/h, providing a benchmark for efficiency, availability and capability for a single module plant. Coppabella produces 8.5% ash washed product for the export pulverised coal injection (PCI) market. Sedgman is responsible for operating and maintaining the process plant, mobile equipment and train loading on a 24/7, 363 days a year basis.

Blair Athol ChPP

10 years Rio Tinto Coal Australia Build Own and Operate Contract (2000-present ) Blair Athol in Queensland's Bowen Basin was a build, own, and operate (BOO) project for Sedgman involving design and construction of a relocatable 250 t/h dense medium cyclone and spirals plant to process 'out of specification' coal. The original operations contract has been rolled over for a further five years as the resource quality depletes towards the end of mine life. There is an increased need to process coal unsuitable for direct sale through the Sedgman-owned facility to achieve the desired product quality. The plant has been progressively upgraded and optimised to consistently produce required quantity and quality of product coal. This achievement is notable because of the need to process a continually changing feed type of diminishing quality.

Moorvale ChPP
7 Years Macarthur Coal design, Construction and Operation (2003-present) Moorvale is a 600 t/h coal handling and preparation plant setting similar benchmarks to Coppabella. Sedgman has operated the plant under contract to Macarthur Coal since inception in 2003 and, like Coppabella, this contract has been extended for a further three years. Sedgman originally built the plant, undertaking engineering, procurement and construction (EPC) of an initial 450 t/h ChPP in 2002- 2003, and then overseeing its upgrade to 600 t/h in 2007. Plant efficiency and operating utilisation have been above industry benchmarks with repeat performances of greater than 7,400 run hours. Sedgman aims for 7,200 hours of operating time annually.

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red Mountain ChPP

4 Years Peabody Energy/BMC Construction, Commissioning, Optimisation and Operations (2006-present) red Mountain is a 1,000 t/h coal handling and preparation facility designed and constructed by others. Sedgman assisted with start up, rectification and optimisation works post construction to enable this plant to reach full design capacity of 1000 t/h output. This was achieved by implementing required rectification and optimisation activities for the plant, which initially experienced difficulty achieving design production rates and reliability. Sedgman's rectification process cost effectively achieved and exceeded facility design targets, with improvements made over seven months while maintaining production.

Sonoma ChPP
3 Years Sonoma Mine Management design, Construction and Operation (2007-present) Sedgman has operated the Sonoma Mine ChPP for Sonoma Mine Management for three years since building the plant in 2007. This involved undertaking detailed design through to commissioning of an initial single stage 800 t/h plant, followed by inclusion of a second stage circuit early in 2008 and then overseeing a fines circuit upgrade in 2009. The Sonoma project sums up the way Sedgman does business, extending a strong relationship with the client into a long-term operations contract after engineering and delivering all three project stages on time and on budget without lost time injuries.

Middlemount ChPP
middlemount Coal design, Construction and Operations (Early 2011 start) Middlemount is a 400 t/h coal handling and preparation facility that can be readily upgraded to 700 t/h. The facility has been fabricated and construction and commissioning is expected to be completed on site in late 2011. Sedgman has secured a 10-year operating contract with Middlemount Coal. The circuit configuration involves dense medium cyclone, spirals and flotation.

Top left: Checking froth depth at Moorvale ChPP in the Bowen Basin, Queensland, Australia. Client: Macarthur Coal. Top right: Still performing strongly after 12 years at Coppabella ChPP, Bowen Basin, Queensland, Australia. Client: Macarthur Coal.

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International activity
Sedgman is a global company, able to draw on expertise, knowledge and experience gained around the world. With head office in Australia and regional professional staff in China, the Americas and South Africa, we formulate and adapt solutions to address specific regional needs and operating environments. Our international business hubs understand and work effectively in local environments, at the same time providing a portal and conduit to Sedgman's global expertise. Efficiencies and client savings are gained by employing local know-how, supported by global specialist knowledge transfer, common systems and processes and Sedgman's accumulated learnings.

uhkaa Khudag (uhg) ChPP

Energy Resources LLC Mongolia Sedgman has been awarded an operational readiness contract and a three-year contract to manage the ChPP at uhg 1. After successful delivery of Phase 1, a 900 t/h ChPP, Sedgman in 2011 gained contracts for ChPP operation and Phase 2 engineering, procurement and construction management. The three year operations management contract for the uhg1 plant is expected to commence in the 4th quarter of fY2011.

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Ulaanbaatar Beijing

Santiago

Maputo Johannesburg

Perth

Townsville Mackay Brisbane

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Sedgman office locations Brisbane, Mackay, Townsville, Perth, Beijing, Johannesburg, Santiago, ulanbaatar and Maputo

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recent major projects

Project Name Completed Projects Moatize Benga ATCOM Bocamina Upgrade UHG 2 Lake Vermont 2 Narrabri Bengalla Upgrade Middlemount Daunia Current Works In Progress El Cerrejon Upgrade UHG 1 Lake Vermont Lake Lindsay Dawson Hail Creek Hail Creek Expansion Colombia Mongolia Australia Australia Australia Australia Australia Thermal Coking / Thermal Coking / PCI Coking / Thermal Coking / Thermal Coking Coking 3.5 Mt/a 5 Mt/a 5.6 Mt/a 5.6 Mt/a 15 Mt/a 11.2 Mt/a 22.4 Mt/a Carbones del Cerrejon Energy resources Lake vermont resources Anglo American Anglo American rTCA rTCA Mozambique Mozambique South Africa Chile Mongolia Australia Australia Australia Australia Australia Coking / Thermal Coking / Thermal Thermal Thermal Coking / Thermal Coking / Thermal Coking / Thermal Thermal Coking Coking 2.8 Mt/a 5.6 Mt/a 28 Mt/a 5.6 Mt/a 18 Mt/a 7 Mt/a 15 Mt/a 6 Mt/a 6 Mt/a vale riversdale Xstrata Coal SA Endesa Energy resources Lake vermont resources Whitehaven Coal Bengalla Mining Company Middlemount BMA Location Coal Type ChPP feed (Mt/a) Client

Top left: The new Middlemount ChPP, Bowen Basin, Queensland, Australia. Client: Middlemount Coal.

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Emphasis on health, safety and environment

Sedgman has a proud history that delivers coal projects free of lost time injury, with one of our Australian operational projects celebrating eights years LTI-free in 2009. Our coal operations have received accolades from clients for safety initiatives. rio Tinto Coal Australia awarded Sedgman the Blair Athol Mine Innovation Award for creating a solution to a potentially hazardous situation in the wash plant. We are committed to providing a culture of a safe and healthy work environment for all employees, subcontractors and visitors as a fundamental business principle. Our objectives are achieved through a concerted effort by all managers, employees, consultants, contractors and suppliers in the implementation of these policies. Where a safer way of doing things is highlighted, we embrace it and implement into our systems. integrated approach Sedgman's management tool for Safety is our health, Safety and Environment Management System (hSE Management System). Sedgman utilises a comprehensive mapping tool listing all documents contained within the company hSE Management System to compare both the client's and legislative standards with those of Sedgman. HSE standards Adherence to 14 Sedgman hSE Standards ensures a consistent interpretation and implementation of our hSE policy. These standards cover all aspects of hSE performance and apply to all activities with potential to affect the health and safety of people or to harm the environment. Sedgman's expectations and requirements for hSE performance include: Accountabilities risk assessment and management Planning and target setting Communication Training and awareness Performance monitoring Auditing and review.

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PrOvIdINg A SAfE ANd h E A LT h Y W O r K E N v I r O N M E N T f O r A L L I S f u N dA M E N TA L

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Approach to quality assurance

Sedgman's approach to quality assurance is guided by the specific needs of clients, ranging from small incremental improvements, through to safe on-time and on-budget delivery, to maximising the yield. Our Quality Management System, which is based on ISO9001:2008, is geared for continuous improvement and incorporates rigorous review processes to monitor, improve and drive all operation outcomes.

design and process innovation

Our ongoing innovation and research embodies our commitment to always finding the best possible process to optimise operations and services. Much of Sedgman's breakthrough innovation and operational excellence continues to be perfected in Australia, in Central Queensland's Bowen Basin and in the hunter valley of New South Wales. These contribute significantly to our success in providing new ChPP infrastructure across the world. Sedgman Coal Operating reporting System (SCOrS) is typical of our continuous improvement and innovation. SCOrS is an innovative production monitoring and reporting system which played a part in the Blair Athol, Moorvale and Sonoma milestone site performances of January 2010. It won the 2009 Engineers Australia Queensland division award for Engineering Excellence for Control Systems, Networks, Information Processing and Telecommunications. It was also a finalist at the 2009 Australian Engineering Excellence Awards. The system has proven its worth, enabling continuous improvement in processes and plant operations across remote regional facilities it is real-time data transformed into realtime information for real-time decision making.

Industrial relations and employee retention

Sedgman's approach to industrial relations gives appropriate consideration to the operational circumstances, including clients' preferences. We have experience in using a number of industrial arrangements, including collective and individual agreements, which have yielded positive working relations and avoided adverse impacts on project deliverables, or our operational capacity. for example, we run a leaner organisational structure, providing operators who are also fully qualified to undertake plant maintenance, resulting in reduced labour overheads. There is no high residual maintenance crew on site. Sedgman has conducted independent benchmarking of staff retention in comparison with similar operations. Our target is to remain within the upper quartile which ensures skilled staff retention without sacrificing competitiveness. Sedgman see it as critical to maintain this position to ensure low turnover of skilled staff.

S E d g M A N P r O v I d E S O P E r ATO r S W h O A r E A L S O f u L LY Q u A L I f I E d T O u N d E r TA K E P L A N T M A I N T E N A N C E

Top left: The Microcel in operation at red Mountain 1,000 t/h ChPP , Bowen Basin, Queensland, Australia. Clients: Peabody Energy / BhP Mitsui Coal.

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research and development

Sedgman's commitment to continuous improvement, research and development gives clients certainty that our project solutions incorporate the latest, most innovative and, most importantly, reliable technologies. The core activities of Sedgman's operations research and development are directed at:

Examples of recent and current r&d activities include:

developing unique flow-sheets and systems for the codisposal of tailings over long distances while maximising the recovery of process water used in slurry pumping developing a remote plant control system to assist operators of ChPPs to multi-task and increase productivity while reducing the requirement for operating labour developing efficiencies in the operation of individual ChPP process units, including improvements in flotation efficiency, increased cyclone performance, magnetite recovery, roller screen performance and operating capability of Jameson flotation cells developing and implementing automated train load-out facilities to uniformly flood load each rail wagon.

Enhancing the efficiency, throughput and productivity in coal handling and preparation plants by developing innovative process flow-sheets Identifying, through systematic investigations of operational ChPPs, improvements to productivity, process yield and fines recovery Increasing ChPP reliability and availability through the introduction of new technologies that minimise unscheduled plant maintenance developing highly automated facilities for materials handling of coal and waste products Identifying and assessing emerging technologies within the international resources industry for possible application to coal processing and transportation.

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Top left: Inspecting the product stacking conveyor at red Mountain ChPP, Bowen Basin, Queensland, Australia. Clients: Peabody Energy / BhP Mitsui Coal. Right: A view back to the CPP from the product conveyor at Moorvale ChPP, Bowen Basin, Queensland, Australia. Client: Macarthur Coal.

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A CO M M I T M E N T TO CO N T I N u O u S I M P r O v E M E N T, r E S E A r C h A N d d E v E L O P M E N T g I v E S C L I E N T S C E r TA I N TY

Australia
Sedgman Limited Head Office Level 2, 2 gardner Close Milton QLd 4064 AuSTrALIA Postal address: PO Box 1801 Milton BC QLd 4064 AuSTrALIA Telephone: +61 (7) 3514 1000 Sedgman Limited perth 3 Craig Street Burswood WA 6100 AuSTrALIA Postal Address: PO Box 39, Burswood WA 6100 AuSTrALIA Telephone: +61 (8) 6255 0000

Africa
Sedgman South africa pty Ltd 1st floor Eco Court 340 Witch-hazel Avenue Centurion 0157 SOuTh AfrICA Postal Address: Postnet Suite 425 Private Bag x108 Centurion 0046 SOuTh AfrICA Telephone: +27 (12) 648 2000

South America
Sedgman Sa general holley 2381 Piso 3 751-0032 Providencia Santiago ChILE Telephone: +56 (2) 365 6100 Asia Sedgman Engineering technology (Beijing) Co Ltd Suite 1004, Tower 1 TEdA Times Center No.15 guanghua road Chaoyang district Beijing, 100026 P.r. ChINA Telephone: +86 (10) 8588 6508 Sedgman LLC 1st floor, Section d Sky Plaza Olympic Street 12 SBdistrict, ulaanbaatar MONgOLIA Telephone: +976 7012 5516

Sedgman Limited townsville

14-64 Industrial Avenue Bohle Industrial Estate Townsville QLd 4810 AuSTrALIA Postal Address: PO Box 7237 garbutt QLd 4814 AuSTrALIA Telephone: +61 (7) 4774 5577 Sedgman Limited mackay 11 / 121 Boundary road Paget (Mackay) QLd 4740 AuSTrALIA Telephone: +61 (7) 3113 6560