EXPLORATION AND MINING (EM) BUSINESS REFERENCE …

1 GMSIP resenterGMSI Canada 2010mine planning conferenceMike Woodhall & Sarina ViljoenEXPLORATION AND MINING (EM) BUSINESS REFERENCE MODELC anada 2010mine planning conferenceGMSIH istory Gartner MINING : 2007 Proposed an industry collaboration Resulted in the establishment of EMMMvCanada 2010mine planning conferenceGMSIWhy? The objective of EMMMv( the EXPLORATION , MINING , Metals and minerals vertical) is to:realise sustainable BUSINESS -value through collaboration around a common operating model and, by so doing, enable its members to put their BUSINESS -IT investment into areas of differentiation versus standard operating practices and support vendors in their delivery of technical and BUSINESS solutions to the industry. From the boardroom to the rock face Canada 2010mine planning conferenceGMSIEMMMv Established formally under the auspices of The Open Group in 2008 Vision, Charter and product portfolio defined Priority: BUSINESS REFERENCE model Iterative approach Participation from members and others First active version of BUSINESS REFERENCE model readyCanada 2010mine planning conferenceGMSIR eference ModelObjectives: Comprehensive Core BUSINESS Process Model Cross Industry Scale independant MINING Type and Method Independent Product Agnostic Cross all Implantation Phases Green filds Brown Fields Operational Extensible CustomisableCanada 2010mine planning conferenceGMSIWhat ?

2 The EXPLORATION and MINING (EM) BUSINESS REFERENCE Model is the firstactive deliverable of the EXPLORATION , MINING , Metals and Minerals vertical (EMMMv).Canada 2010mine planning conferenceGMSIEMMMvMembershipGlobal: South Africa, Australia, ChinaCurrent Member companies: AjilonAustralia DatamineSA FortescueMetals Group (FMG) GijimaAstMining Solutions International (GMSI) Lonmin Real IRM Solutions Rio TintoCanada 2010mine planning conferenceGMSIThe Open GroupThe Open Group enables an independentplatform for collaboration, removing issues related to anti-competitive behaviour and claims related to intellectual property. Canada 2010mine planning conferenceGMSIPost 2008 MINING organisations We believe the industry REFERENCE models will be the differentiator for focused EXPLORATION and MINING operations Headlines Social risk mitigation taking MINING s centre stage MINING Weekly (Jan 2010).

3 Right-sizing labour head SA MINING (May 2010) efficiency SA MINING (May 2010) ..companies focus on running the BUSINESS better efficiency, effectiveness and completeness are the issues ; understanding where you need to focus is our value -Steve Rasmussen (retired CTO of Anglo Plat)Canada 2010mine planning conferenceGMSIC anada 2010mine planning conferenceGMSIM ining MethodsMine TypeRock TypeMining TypeTabularMassiveCoalOtherSolutionOpen PitGlory HolePlacerOpen PitU/GSFCEHardSoftHardSoftCanada 2010mine planning conferenceGMSID eliverables from the verticalCanada 2010mine planning conferenceGMSID eliverables from the verticalDiscoverDefines the process by which an EXPLORATION target and/ or a mineral resource is articulated and defined for acquisition purposes. The process includes: evaluation of grade and tonnes pre-feasibility phase examining the production options and acquisitionAt a strategic level the term 'Discover' focuses on green fields opportunityQualify opportunityOutputA bankable feasibility studyRoleExploration GeologistCanada 2010mine planning conferenceGMSINext phase Deliverables available to members as prioritised by them including: as documents, models, presentations and source data in a database formatCanada 2010mine planning conferenceGMSIF uture phases (wish list) Roles & Responsibilities model Information REFERENCE model Data model Candidate application capability REFERENCE model Application integration model Resource modelCanada 2010mine planning conferenceGMSIR ecognitionGARTNERR esearch Project.

4 Mine of the FutureAn Architecture for an Integrated MINING Enterprise, 2020 This initiative (EMMMvReference Model) is the broadest cross- MINING activity in progress today The team must be complimented on creating this substantial piece of work and for making it available to the public domain through the auspices of the Open Group. Canada 2010mine planning conferenceGMSIWho should Join EMMMvAll who operate in the EXPLORATION , MINING , Metals and Minerals space MINING companies Refining companies Engineering support companies Consulting Organisations Application companiesCanada 2010mine planning conferenceGMSIJoin EMMMv To influence what will become the standard REFERENCE models for the EXPLORATION and MINING industry To ensure you need invest only in differentiators and not on the standard operating processes To join the collaboration conversation with a common language (eg.)

5 Between vendors and MINING clients ) To understand information resources through the use of an industry standard To optimise investment and enable shared servicesCanada 2010mine planning conferenceGMSIO ffice: +27 11 805 3734 Mobile: +27 82 825 ViljoenForum Director: EMMMvReal IRM Solutions SarinaCanada 2010mine planning conferenceGMSIEMMM vand GMSIC anada 2010mine planning conferenceGMSIWhat has GMSI done with the Model? Replace our MINING Value Chain circa 1998 Absorb the EM model into our BUSINESS REFERENCE Framework exercise focused architecture process Expand the detail by MINING method to L3 and in some cases L4 L0-L2 generic; L3 MINING method specific; L4 client specific; L5 developer conversation Add to base of accumulated L4 & L5 infoCanada 2010mine planning conferenceGMSIGMSI Square Circles spatialDashVisualisationPlottingPartner & 3rdParty ConnectorsDrawingPRESENTATIONP lanningRisk ManagementOptimisationExecutionLayer Management and RulesspatialDBDatabase ExtensionsspatialOfficespatialDashStanda rd Operational ReportingSpatial IntelligenceCanada 2010mine planning conferenceGMSIPlan-Do-Improve & Protect23 Canada 2010mine planning conferenceGMSIPlan-Do-Improve is cyclicalNeed to understand the BUSINESS to Manage the Risk (Protect)Canada 2010mine planning conferenceGMSIThe Humungous MatrixL0XC4 ExploitXXXXXXXXThe Proc es s inc ludes the BREAKIN G and REMO VAL of 'roc k'.

6 Inc luding the TRAN SPO RT of the broken roc k from working plac e to plant and/ or s toc kpile.(O verburden and W as te are s een as additional and s eparate s treams eac h and as s uc h inc luded)N B: Inc luding the O N-G O IN G c reation of ACCESS and Infras truc tion to MAIN TAIN produc tion c c ontinuous MIN IN G ac tivities , from Drill and Blas t up to before the firs t benefic iation ac ludes the Ramp-up to full produc tion (for the new projec t)Integrate the requirements of the new MINING area into ex is ting infras truc ture. L ogis tic al s ervic es & produc tion ramp-up to be inc luded* L ong, Medium and Short term planning available for all Mine O perations* O re broken on time, as s pec ified with minimum delays on O perations* Material broken at grade, Clas s ified & Stoc kpiled.

7 (W as te and graded ore).* Stoc kpiling polic y bas ed on grade and/ or roc k type and linked to c apac ity.* RO M for rehab fed bac k to mine rehab areaRis k Management Polic y (inc l Ris k matrix) & Proc edure for 'Exploit' Proc es s :* Ris k toleranc e levels* Ris k Management Sys tem* Identific ation of O perational Ris ksN O TE: Main lis t of generic requirements from internal, ex ternal s ourc es (eg: G overning L egis lations & frameworks )Management and Q uantific ation of Exploitation & O perational Ris k:* Exploitation & O perational Ris k Managed to ac c eptable toleranc e levels* Controls in plac e* Prioritiz ation of Ris k mitigation.* U pdated O re Body Model (for various c yc les -annual, quarterly, s hort term),* MINING Method (as s elec ted),* Mine Des ign s elec ted.* Produc tion & Development rates defined* Res ourc e c ons traints , eg: manpower, ventilation, fleet c apac ity etc )* Polic y on mine feeds to plant (amout of JIT produc tion, amout of over-produc tion on mine s ide)Produc tion output Sc hedule eg:* Required broken roc k c las s ific ation;* Stoc kpiles & Dumps (inc l W as te);* RO M volumes / tonnages delivered to benefic iation* Critic al parameters for on-going c ontrol* Produc tion Plan & Sc hedule* Res ourc es to meet the plan in plac e (eg 6 M's )* MINING Method (as defined)* Stoc kpiling & Dump Polic ies ;* Safe & H ealthy work environment.

8 * Delivery of broken ore and was te to required quantity and quality to nex t s tage of proc es s (Benefic iation) s afely.* Delivery of intermediate ore and was te to s toc kpiles and dumps (optimally, ac c ording to s toc kpile polic y)Identific ation of ex plotation optimiz ation opportunities that s upport the overall mine bus ines s objec tive.(N B: Avoid s ub-optimiz ation).Stoc kpile polic y linked (optimis ed) to market iz ing & De-bottlenec king opportunities , eg:* loc al/ s tope/ s ec tional level* c os t/ volume analys is at an area level;* O ptimis ed Exploitation matc hed to overall Mine to mill and mine bus ines s proc es s es(better, s afer, more reliable proc es s es ; better quality throughput; revis ed produc tion targets )* O ptimal N PV profile for the operation over its lifeL1X1 Break RockXXXXXXXXThe Proc es s to get ACCESS to and MIN IN G of the ore body, inc luding the EXTEN SIO N of IN FRASTRU CTU REContinuous MIN IN G ac tivities and s ervic ing ex is ting working fac es to enable the nex t roc k-breaking ac roc k as per approved plan ( W as te or graded ore)G eneric c ons iderations for Roc k breaking, eg:* G eo-type (eg: geo-tec hnic al etc ) data & models.

9 * Regis ter of Roc k-breaking ris ks (eg: s eis mic ity, s lope failure, health & s afety, ex plos ions , heat etc )* Reliability & performanc e fac tors of equipment* MINING fac e availability requirements* Controls in plac e on ris k areas ,* Contingenc y meas ures in plac e;* Confidenc e in the Exploitation PlanIntegrated Short/ medium/ long term Mine Sc hedulesMining L ayouts to define the ac c es s , eg:* Drill bloc k plan, s c hedule; Blas t Plan & Sc hedule* Res ourc es (6Ms ); * Suffic ient developed (ex pos ed) orebody; * U tilities vent; grade c ontrol; * O rebody maintenanc e requirements* Roc k broken ac c ording to plan; * O re and W as te s treams ; (tonnages per time/ per produc t); * MINING mix, volumes & grades (for c orrec tnes s ),* Suffic ient availability of orebody to maintain produc tion requirementsO ptimis ation opportunities for ex ploitation identified, eg:* H is toric al data on key performanc e items (KPIs )* MINING varianc e analys es in plac e : M2P indic es , MINING c ons traints , logis tic s* MINING widths , draw c ontrol, grade c ontrol, fragmentation etc.

10 * Reliability and utilis ation of res ourc es / orebody.* Data analys is for optimiz ation* Control & meas urement of KPIs for optimiz ationO ptimiz ation opportunities identified, eg:* O ptimis ed Exploitation proc es s es* O ptimal us e of c apac ity* O ptimis ed MINING Method Charac teris tic AccessXXXXXXXXThe W O RK to be done (development & c ons truc tion) to get the area to be mined ready to START MINING and CO N TIN U E without interruption. (inc l was te / overburden s tripping in O pen pits )The W O RK to be done to get the area to be mined ready to CO N TIN U E with U N IN TERRU PTED MINING and to maintain PRO DU CTIO N CAPABIL ITY.(All work needed to ens ure 'Mine the O re Body' c an direc tly proc eed as normal and to plan)Adequate, fully ac c es s ible and s ervic ed MINING areas with no delays , interruptions to enable reliable ac hievement of plan.