163WCA Awards brochure LANDSCAPE AW · alstom does not focus solely on running its own business,...

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World Coal Association Leadership & Excellence Awards 2013 2013

Transcript of 163WCA Awards brochure LANDSCAPE AW · alstom does not focus solely on running its own business,...

Page 1: 163WCA Awards brochure LANDSCAPE AW · alstom does not focus solely on running its own business, but is looking for solutions to multi-clean coal-based energy. alstom is intensifying

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

2013

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World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

The WCA Leadership & Excellence Awards have been established to recognise outstanding achievement and innovation in the international coal industry and its value chain. The Awards also aim to help drive further environmental and safety improvements and innovation across the industry.

Awards will be presented in four categories.

1 WCA Award for Excellence in Environmental Practice

2 WCA Award for Excellence in Low-Carbon Technologies

3 WCA Award for Leadership on Innovative Coal Technologies

4 WCA Award for Leadership on Mining Safety

World Coal Association Leadership & Excellence Awards 20132

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The 2013 inaugural awards were open to companies and organisations working in the field of coal mining, coal use or coal technologies, including non-WCA members and companies not producing coal.

The quality of applications for each of the four awards has been extremely high, reflecting an industry showing leadership and excellence in a challenging operating environment. In fact, these companies have worked to find innovative solutions to these challenges - enhancing safety performance, reducing environmental impacts, managing water, working alongside local communities, and looking to a future where technologies can reduce emissions from the use of coal to near zero.

A judging panel reviewed the entries and short-listed two companies for each award, before choosing the winner. The winners were announced at the WCA Leadership & Excellence Awards Ceremony, held in Warsaw on 18 November 2013.

Full details of the WCA Leadership & Excellence Awards can be found at www.worldcoal.org/awards2013

THE WORLD COAL ASSOCIATION AWARDS RECOGNISE INDUSTRY LEADERSHIP, WHICH WILL HELP GUIDE COAL THROUGH THE 21ST CENTURY.

Zhang Xiwu, WCA Chairman and Chairman of the Shenhua Group

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WCA Award for Excellence in Environmental Practice

Recognising outstanding contribution or potential in the area of reducing the environmental footprint of coal, at any stage of the coal value chain.

I SEE THE ANGLO AMERICAN AND PT ADARO PROJECTS ARE BOTH AT THE LEADING EDGE OF INTEGRATING BUSINESS, ECONOMIC DEVELOPMENT, SUSTAINABILITY AND COMMUNITY NEEDS TOGETHER IN A WIN-WIN MODEL FOR EVERYONE. WITH A SET OF BELIEFS IMPLEMENTED SUCCESSFULLY LIKE THIS, BUSINESS AND SOCIETY ARE CLEARLY AND UNEQUIVOCALLY SEEN BY ALL TO BE WHAT THEY ALWAYS HAVE BEEN – BUT WHAT IS OFTEN FORGOTTEN. NOT “THEM AND US” BUT JUST “ALL OF US WORKING TOGETHER FOR COMMON GOOD”.

Don Elder, Former WCA Chairman

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Winner

Company Anglo American Thermal Coal

Project eMalahleni Water Reclamation Project, South Africa

Runner-up

Company PT Adaro Indonesia

Project Project WTP T-300: Creating a Better Quality of Life from Environmental and Community Challenges, Indonesia

World Coal Association Leadership & Excellence Awards 2013 4

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Mining is a water intensive industry and coal is often found in regions of the world where water is scarce. As with all resource extraction, coal mining tends to be clustered around resource rich areas, such as the Mpumalanga Highveld in South Africa. In this area, mining and agriculture are the largest users and compete for water resources.

Mining infl uences not only the amount of surface and groundwater available for other users, but also impacts water chemistry. eMalahleni, Mpumalanga, is one of the fastest growing urban areas in South Africa. It is a municipality of 510,000 people in a water-stressed region in the north-east of the country and has faced considerable diffi culties in meeting increased demand for drinking water.

Research has shown that in the Mpumalanga Highveld, more water is stored in underground mines than in the three surface dams that feed the area and these underground stores do not evaporate. As a result, what was formerly a liability is now regarded as a signifi cant untapped resource.

Anglo American has invested almost US$100 million in a water reclamation plant to treat underground water from its mining operations in the Witbank coalfield. The plant currently treats 25-30 million litres a day. Some of this is used in its mining operations but the bulk of it supplies 12% of the city’s daily water needs.

In July 2011, the company approved investment to increase treatment capacity to 50 million litres a day, with a peak capacity of 60 million litres a day. This second phase should be operational before the end of 2013. To date, the water reclamation plant has treated 30 billion litres of water and supplied 22 billion litres to the eMalahleni Local Municipality.

The second phase has been designed to manage water from fi ve coal mines, some of which have reached the end of their lives. This includes mines owned by a competitor company. Anglo American Thermal Coal is moving beyond seeking solutions purely for its own mines - the goal is a holistic way of dealing with the water problems of the entire region.

Ten years of research and working with various partners has also resulted in the plant moving towards being a near-zero waste facility. Besides the plant having an >99% water recovery and very low brine volumes, the 200 tons of gypsum by-product that is produced daily at the plant can be turned into a low-cost, high quality construction material. Following

rigorous testing and approval, it has been used to construct 66 affordable houses for local Anglo American employees, with an additional 300 houses currently under construction. In addition, the plant offers an opportunity to further stimulate local employment through the establishment of a community-based enterprise that will manufacture and distribute these gypsum-based products to local builders. The remainder of the gypsum not used in this process is now sold to the cement and agricultural industries, eliminating solid waste disposal at the plant.

The project is replicable – and is being evaluated as a water treatment solution by six of Anglo American’s ten Thermal Coal operations. It has already been replicated by a private mining company, Optimum Coal Holdings, who commissioned a 15 million litres a day plant in June 2010 to the east of eMalahleni. Four other projects in the Witbank coalfi elds are in various stages of project development based on the same model as the eMalahleni plant.

www.angloamerican.com

2013

Company: Anglo American Thermal CoalProject: eMalahleni Water Reclamation Project, South Africa

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Winner

2013

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PT Adaro Indonesia is a member of the Adaro Energy group and is Indonesia’s second largest coal mining company. Although clean water is a necessity, for the communities surrounding Adaro’s operational area it was a luxury. Over the past 15 years, a central focus of Adaro’s health programmes has been on improving community access to clean water.

Tabalong and Balangan regencies, which surround Adaro’s mining area, experience a monsoon climate with high rainfall during the wet season, however drought conditions are common during the dry season, affecting water supply throughout the area. As deep artesian wells are too expensive for most local villagers, some of them depend upon untreated water from rivers for their drinking water supply, even though these are also used as sewers or for garbage disposal. These conditions pose a threat to community health due to epidemics of waterborne diseases, some of which can be life-threatening. The standard of living in these communities is also affected, as residents must travel far just to fi nd water sources. This is time not spent working on an income-generating job, caring for family members or attending school.

In contrast, Adaro has an abundant water supply year round from rainfall and ground water which drains into the huge mining catchment area at volumes of up to 300,000 m3 per hour. This water must be continually pumped out from working areas for storage and primary

treatment in large settling ponds before being discharged into local waterways.

These contrasting conditions inspired Adaro to develop an extensive water treatment facility, known as the WTP T-300, where Adaro processes some of its mine wastewater using a three step purifi cation technology into clean potable water. This provides clean drinking water for distribution to local communities and Adaro’s own employees, meeting the Standard for Drinking Water and Clean Water set by the Indonesian Minister of Health.

When Adaro’s clean water initiative started in 1997, water was distributed to communities by truck. Today, in collaboration with the local branch of the State Water Company, Adaro installed connections to homes close to the mining area that are covered by the water company’s master pipeline. In 2010, a 10-kilometre pipeline was installed by Adaro from WTP T-300 to low-lying communities, providing the fi rst running water that these communities have ever experienced. Adaro has invested a total of

Rp 6.5 billion (US$575,000) to build the water treatment plant and the pipeline.

In order to be sustainable and minimise dependency on the company, Adaro has facilitated the establishment of a Clean Water Management Board as a village-owned enterprise. The board was elected at village meetings, with the responsibility for pipeline management and a water consumption payment system based on the economic levels of the communities.

Today, fi ve years after the commencement of the T-300 project, 1137 households are being provided with clean water through the 10km pipeline network. An additional 5521 households are supplied by water trucks, with a total annual consumption of 100 million litres. This accounts for 99% of the population of the Balangan regency and 42% of the population in Tabalong regency having access to clean water.

Adaro has encouraged other subsidiaries to emulate the success of the WTP T-300.

www.adaro.com

Company: PT Adaro IndonesiaProject: Project WTP T-300: Creating a better quality of life from

environmental and community challenges, Indonesia

World Coal Association Leadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Runner-up

2013

World Coal Association Leadership & Excellence Awards 2013 6

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ALSTOM DOES NOT FOCUS SOLELY ON RUNNING ITS OWN BUSINESS, BUT IS LOOKING FOR SOLUTIONS TO MULTI-CLEAN COAL-BASED ENERGY. ALSTOM IS INTENSIFYING ITS EFFORTS TO INCREASE THE EFFICIENCY OF EXISTING POWER PLANTS AND OF COAL POWER PLANTS UNDER CONSTRUCTION WHERE CO2 CAPTURE AND STORAGE IS A KEY TECHNOLOGY TO COMBAT CLIMATE CHANGE.

Maciej Kaliski, Director, Department of Mining, Ministry of Economy, Poland

Winner

Company Alstom

Project Driving Reductions in CO2 whilst Meeting Essential Production Capacity Needs, Global

Runner-up

Company Saskatchewan Power Corporation

Project Boundary Dam Integrated Carbon Capture and Storage Demonstration Project, Canada

WCA Award for Excellence in Low-Carbon Technologies

Recognising the best technological development in the area of reducing the greenhouse gas footprint of coal, at any stage of the coal value chain.

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Company: AlstomProject: Driving Reductions in CO2 whilst Meeting Essential

Production Capacity Needs, Global

Alstom has created a portfolio of sustainable technologies to drive reductions in emissions from electricity generation, including coal-fi red generation. Data from 2002-2011 shows that Alstom’s environmental measures, on new plants and retrofi ts, have saved a total of 207 million tonnes of CO2 annually. This covers 1445 projects undertaken by Alstom in all areas of energy, comparing actual emissions of an Alstom plant in the fi rst year of its operation to the standard emissions of the local plant type that it replaces.

Alstom has taken two approaches to reduce the amount of coal burnt per kWh:

• increasing the effi ciency by upgrading temperatures and pressures in advanced boilers and steam turbines

• developing the co-combustion of coal with biomass.

The state-of-the-art in effi ciency is exemplifi ed by the Rheinhafen Dampfkraftwerk 8 (RDK 8) in Karlsruhe, Germany. RDK 8 is one of the fi rst bituminous-fi red power plants in the world that will run on ultra-supercritical steam parameters of 600°C/620°C and 275 bar. The effi ciency of this 912 MW power station, a turnkey project commissioned in 2012, reaches more than 46% and 58% if district heating is considered. Burning less coal, RDK 8 also produces 40% less CO2 emissions than a coal-fi red power plant built in the 1980s.

The state-of-the-art in co-fi ring of biomass with coal is shown by the Drax power station in the UK. A system designed to burn biomass in each of the six 660 MW units provides 10% of the electricity produced by the plant, leading to a reduction of two million tons per year in the emission of CO2 and making Drax the single largest renewables installation in the UK.

Alstom has pursued a vast R&D programme in CO2 capture technologies, following two paths: post-combustion capture and oxy-fuel combustion. Three pilot plants operating the Chilled Ammonia post-combustion process have completed their tests: Karlshamn in Sweden and WE Energy in the US, both with 5 MW, and AEP Mountaineer in the US, with 58 MW. A pilot plant with 2 MW using the Advanced Amines process has completed tests at Dow Chemical in the US.

Following pilot tests, a project to develop an oxy-fuel power and carbon capture and storage demonstration of up to 450 MWe has been announced by Alstom, Drax and BOC. The proposal, named the White Rose Carbon Capture and Storage Project, is seeking funding from the UK Department of Energy and Climate Change and from the European NER 300 programme. It will also have the potential to co-fi re biomass. Playing an important role in establishing a CO2 transportation and storage network in the UK Yorkshire area, it will generate low-carbon electricity to supply over 630,000 households, while capturing approximately 90% of all CO2 emissions produced by the plant. The CO2 will be transported through the National Grid’s pipeline for storage in the North Sea.

Alstom is also focusing on second generation capture processes, in particular Chemical Looping Combustion, which has a much lower energy penalty than the fi rst generation processes. It is being tested in a 3 MWth pilot plant at Alstom in US, funded by the US DOE, and in another of 1 MWth in Darmstadt, Germany, partially funded by the EU Research Fund for Coal and Steel.

Alstom has the largest portfolio of Air Quality Control Systems, tackling particulate emissions, SOx and NOx and mercury. Reductions of more than 90% for NOx and 99% for SO2 have been achieved. Large amounts of water demanded by thermal power plants are also becoming a serious concern. Alstom is building the two largest air-cooled coal power plants in the world: Kusile and Medupi, in South Africa, with twelve 800 MW supercritical turbine islands with air-cooled condensers. Removing more than 90% of the sulphur oxide generated in the boilers with an Alstom wet fl ue gas desulphurisation system, these power stations will be the most environmentally friendly in sub-Saharan Africa.

www.alstom.com/power/

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Winner

2013

World Coal Association Leadership & Excellence Awards 2013 8

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2013

SaskPower is the lead developer of the world’s largest and most signifi cant post-combustion carbon capture and storage (CCS) project – the fi rst to fully integrate CCS technology with commercial-scale coal-fi red generation. The project involves transforming a coal-fi red power station, more than a half-century old, into a model of environmental sustainability.

The aging coal-fi red Unit #3 at Boundary Dam is being converted into a reliable, long-term producer of 110 MW of baseload electricity that will reduce greenhouse gas emissions. The project will capture one million tonnes of CO2 per year, the equivalent of removing 250,000 vehicles from Saskatchewan’s roads annually. Construction of the project commenced in May 2011. The project remains on budget and on schedule, and as of August 2013, overall construction is 90% complete, with full commercial operation set for April 2014.

SaskPower decided to move ahead with the BD ICCS project after over ten years of studying CCS and $50 million spent on feasibility studies and engineering designs. The motivation for the project came as regulations on coal-fi red power generation were looming, which caused SaskPower to consider a variety of prospective technological advances as it looked to renew its existing generation fl eet and prepare for adding new coal-fi red generation.

Today, in 2013, there is not one single large-scale CCS installation that exists in the electricity sector. SaskPower is

changing that with the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project, which will be the fi rst large-scale CCS project in electricity generation to exist in the world. The project will have a portion of the cost recuperated through the sale of the captured CO2, SO2, and fl y ash.

Apart from the sale of by-products, the other key unique differentiator to the BD ICCS project is that a portion of the CO2 will also be stored and used for Monitoring Measurement Verifi cation and Audit. This aspect of the demonstration is important for public acceptance of storage. The Boundary Dam Integrated CCS Demonstration Project is one that the world is watching, and the success of the project and the technology will be a benchmark for similar utilities across the globe to pursue CCS-related projects. Knowledge gained through the BD ICCS Project will help drive down costs and allow other projects to save millions. SaskPower’s success with the BD ICCS Project will hopefully start the trend for many more CCS projects to be planned and put into motion.

www.saskpower.com

“THE BOUNDARY DAM PROJECT IS AT THE EPICENTRE OF THE GLOBAL EFFORT TO ACCELERATE THE COMMERCIALISATION OF CCS, AN ESSENTIAL GREENHOUSE GAS EMISSION REDUCING TECHNOLOGY. THE VALUE OF THE OPERATING EXPERIENCE AND KNOWLEDGE GAINED THROUGH COMMERCIAL SCALE DEMONSTRATIONS IS IMMENSE. BOUNDARY DAM WILL PROVIDE A STEP CHANGE IN THE DEPTH OF UNDERSTANDING OF THE OPPORTUNITIES FOR COST REDUCTION IN INTEGRATED COAL-FIRED CCS POWER GENERATION.”

Harry Kenyon Slaney, Rio Tinto

Company: Saskatchewan Power CorporationProject: Boundary Dam Integrated Carbon Capture and

Storage Demonstration Project, Canada

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Runner-up

2013

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IGCC HAS BEEN TOUTED FOR A LONG TIME AS THE TECHNOLOGY THAT WILL PROVIDE A STEP CHANGE IN THE PERFORMANCE OF COAL-FIRED GENERATING PLANTS. THE LACK OF WORKING PLANT TO PROVE THAT THE CLAIMS ARE NOT UNREALISTIC HAS INCREASED SCEPTICISM AMONGST THOSE WHO WISH TO WRITE OFF COAL AS A FUEL FOR ONGOING USE. THE GE PROJECT WILL BE EXTREMELY HELPFUL IN ADDRESSING BOTH THE CLAIMS MADE BY THE PROPONENTS OF THE TECHNOLOGY AND DISPELLING AT LEAST SOME OF THE VIEWS OF THOSE WHO THOUGHT THE TECHNOLOGY WOULD BE TOO EXPENSIVE AND WAS UNLIKELY TO EVER BE PROPERLY TESTED.

Roger Wicks, former WCA Chairman

WCA Award for Leadership on Innovative Coal Technologies

Recognising projects that demonstrate potential to make a significant impact on the future use of coal or the coal industry, including innovative processes such as coal gasification, coal-to-liquids or coal-to-chemicals.

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Winner

Company GE Power & Water, Gasification

Project Duke Energy Edwardsport IGCC Power Plant: System Improvements and Integration for Reliability, USA

Runner-up

Company Central Mining Institute (GIG)

Project Innovative Concepts and Development of Underground Coal Gasification Technology, Poland

World Coal Association Leadership & Excellence Awards 2013 10

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Over recent years, GE has pioneered an effort to signifi cantly improve IGCC project economics by focusing on improving the plant availability and reliability in the early years of operation. This crucial window of time is commonly referred to as the “time to maturity” and is defi ned as the time between commissioning to stable operation. Duke Energy’s Edwardsport IGCC Power Plant (618 MWe of net power in a two-Radiant Syngas Cooler train confi guration) is GE’s latest and possibly the most complex coal power plant in the world today.

The plant combines multiple advanced technologies including air separation, gasifi cation, acid gas removal, sulphur recovery, CO2 compression, combined cycle power generation and includes several system improvements in comparison to previously launched RCSs as well as integration to increase plant reliability.

The IGCC plant achieved a number of start-up milestones:

• The plant produced clean syngas within fi ve minutes and met gas turbine fuel specifi cations on the fi rst gasifi er light-off attempt.

• By the third start-up attempt, the plant made power from the gas turbines fuelled on clean syngas.

• Within three weeks of the initial start-up, the plant achieved full IGCC mode on its fi rst attempt.

• Both gasifi cation trains and gas turbines successfully ran in unison on the fi rst attempt.

• On 7 June 2013, the customer declared “Commercial Operation.”

This early success means the site is well on the way to meeting the goal of reaching mature plant availability as originally orchestrated. The project is a combination of several advanced coal-to-power technologies which reduce environmental impact and also provide shorter time-to-maturity of power plant operation due to system improvements and integration.

www.ge.com

Company: GE Power & Water, Gasifi cationProject: Duke Energy Edwardsport IGCC Power Plant: System

Improvements and Integration for Reliability, USA

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Winner

2013

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The Central Mining Institute is developing underground coal gasifi cation (UCG) technology, which utilises coal resources, abandoned for technical or economic reasons, in the process of in-situ production of combustible gas, and in particular, for the in-situ generation of hydrogen-rich gas.

“THE CENTRAL MINING INSTITUTE HAS DEMONSTRATED THE WILLINGNESS AND TECHNICAL ACUMEN TO ADDRESS THE MOST CHALLENGING ISSUES FACING UCG. PUSHING THE TECHNOLOGY ENVELOPE BY ADDRESSING THESE ISSUES, WHILE CHALLENGING, IS NECESSARY FOR UCG TO REALISE COMMERCIALISATION.”

Steve Winberg, CONSOL Energy

The technical concept of in-situ coal gasifi cation to hydrogen-rich gas offers a promising option for coal recovery from seams, abandoned for either technical or economic reasons, and generation of a prospective energy carrier. The UCG concept developed by the Central Mining Institute takes into account environmental and safety aspects to perform the process in a controlled and safe way through the development and use of advanced, innovative monitoring and control systems.

A number of goals have been achieved as a result of research works carried out within the HUGE and HUGE2 projects (supported by EC within the RFCS programme) and the project “Development and pilot-scale verifi cation of the underground coal gasifi cation technology” (NCRD, Poland).

• The process design and technical design of the underground generators and the monitoring system have been developed.

• Eight large-scale laboratory experiments on hard coal and lignite in ex-situ confi guration and two process development unit UCG trials in coal

seam 310 of the experimental mine have been performed.

• Analysis of various options of coal gasifi cation technologies utilising various gasifi cation media, process parameters, coal types and gasifi cation channel confi gurations, as well as mathematical and thermodynamic modelling of the process based on experimental results, have been conducted.

• Environmental impact of the UCG process has been analysed. Formation and release of liquid contaminations have been studied as well as transport phenomena of contaminants in the surrounding strata. Tests on migration of heavy metals into water during the gasifi cation process, as well as of the behaviour of the strata, have also been conducted.

• Evaluation of the feasibility of adsorption of targeted pollutants on various types of sorbents as a tool for the in-situ remediation of contaminated aquifers has been performed.

• Potential problems related to the operation of the UCG process in-situ have been identifi ed and appropriate countermeasures have been developed.

• Risk strategy, following ISO 31000 principles, has been chosen and applied in UCG process performance. Defi nition of the system, risks for human health and ecosystems, as well as the main hazards, have been determined.

All major representatives of the mining industry in Poland - Kompania Węglowa, the biggest coal producer in Europe, Katowicki Holding Weglowy, and LW “Bogdanka” - are interested in the development of UCG technology to industrial scale.

www.gig.eu/pl

Company: Central Mining Institute (GIG)Project: Innovative Concepts and Development of

Underground Coal Gasifi cation Technology, Poland

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Runner-up

2013

World Coal Association Leadership & Excellence Awards 2013 12

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SHENHUA’S ACHIEVEMENT IN SAFETY PERFORMANCE ACROSS A DIVERSE RANGE OF COAL MINES IS TRULY VERY IMPRESSIVE. SUCH HIGH LEVELS OF SUSTAINED PERFORMANCE REQUIRE A STRONG COMMITMENT TO SAFETY THROUGHOUT THE ENTIRE COMPANY AND THE MANAGEMENT SYSTEMS AND PROCESSES TO DELIVER AGAINST THAT VISION. THERE CAN BE NOTHING MORE IMPORTANT THAN THE WELL-BEING OF OUR EMPLOYEES. SHENHUA IS TO BE CONGRATULATED FOR WORLD-CLASS SAFETY OUTCOMES.

Harry Kenyon Slaney, Rio Tinto

WCA Award for Leadership on Mining Safety

Recognising projects or products that enhance the coal industry’s safety record.

2013

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Winner

Company Shenhua Group

Project Coal Mining Safety Practice, China

Runner-up

Company National Mining Association

Project CORESafety®, USA

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The Shenhua Group is the largest coal producer in China, producing 460 million tonnes in 2012 – 13% of total coal production in China. The Shenhua Group has 64 coal mines – these include mines with capacities over 10 Mtpa and mines with capacities of 0.6 Mtpa. There are mines with good safety conditions and mines with hazardous risks of gas, fl oods and spontaneous combustion. Shenhua operates coal mines with high coal-seam thickness over 7 metres and mines with low coal-seams of 0.9 metres.

Since the conditions vary signifi cantly, it is diffi cult to control the risks. Shenhua took a number of steps to improve safety performance, including establishing a modern safety management philosophy and corporate culture, actively exploring and applying a Coalmine Risk Pre-control Management System, raising investment on safe production and technological innovation, and training employees to improve their competence.

Shenhua put forward its modern safety management philosophy to foster a balanced corporate culture on safety. In 2007, Shenhua launched the ‘Theory on Internal and External Factors to Cause an Accident’. Shenhua established and optimised a complete risk pre-control management system/safety management model. This model is based on identifying sources of danger and assessing risks. The key in the system is to fi nd the unsafe behaviour and take measures to pre-control it.

Meanwhile, a system on intrinsically safe production was developed. With this system, any accident can be prevented and controlled, a new pathway to build a safe modern effi cient coal mine is explored, a

competent team is formed and the culture on safety is fostered at Shenhua.

Shenhua increased investment in safety, including production and management techniques. In the past three years, Shenhua’s investment on safety at coal mines grew by 35% annually. In 2012, the investment on coal mine safety was over RMB 5.412 billion (US$872.9 million).

With such efforts, the safety performance at Shenhua’s coal mines has been improving. In 2012, 45 coal mines at Shenhua realised a continuous running of 1000 days without accident, 23 coal mines have 2000 days and six coal mines have a safe running of 3000 days.

Employees are trained to improve their safety competence in operating equipment. In 2012, the training on safety at Shenhua was 285,800 man-hours. This level of training has meant that unsafe behaviour is avoided and people’s awareness of safety is improved. Shenhua’s practice on safety is proven to be successful and the safety performance in production is among the best in the world. From 2005 to 2012, the accumulated coal production at Shenhua

was 2.7 billion tonnes, while the fatality rate per million tonnes was 0.02, lower than the average of other major coal producing countries (the average in the US in 2011 was 0.04).

In 2012, the fatality rate at the Shenhua Group was 0.0034, the best record in Shenhua’s history. Shenhua created a record of 0 fatalities when 370 million tonnes of coal were consecutively produced.

Based on the Shenhua Group’s experience on the coal mine risk pre-control management system, the Management Standards on Coalmine’s Intrinsic Safety (Standards No. AQ/T1093-2011) was published and it became the fi rst standard on safety management for the coal industry in China. Shenhua’s practice on safety is promoted and applied, which leads to better safety standards in the coal industry in China - the fatality rate nationwide per million tonnes of coal lowered from 2.69 in 2005 to 0.374 in 2012.

www.shenhuagroup.com.cn/english

Company: Shenhua GroupProject: Coal Mining Safety Practice, China

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Winner

2013

World Coal Association Leadership & Excellence Awards 2013 14

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CORESafety® is a voluntary initiative developed under the direction of the US mining industry’s leadership and belonging to the National Mining Association, the US mining industry’s national trade group. The initiative grew out of the mining executives’ desire to achieve and sustain continuous improvement in safety performance throughout the industry’s domestic operations.

“THE NMA’S CORESAFETY PROGRAMME IS INNOVATIVE AND IS PROGRESSIVELY INVOLVING A GROWING NUMBER OF MINES ACROSS THE US. IT IS CLEARLY DELIVERING RESULTS IN THE WAY IT ADDRESSES THE MISSION CRITICAL ISSUE OF PEOPLE SAFETY IN COAL MINING AND COULD PROVIDE AN IMPORTANT BENCHMARK FOR OTHER NATIONAL COAL ORGANISATIONS THAT WISH TO FOLLOW THE NMA’S LEAD.” Roger Wicks, former WCA Chairman

COR

A CEO-task force established the vision, expectations and near-term goal for safety performance. By offering the US mining industry a management system framework, with best-in-class mine safety practices incorporated into a series of CORESafety modules, the initiative encourages companies to supplement – and in some cases establish for the fi rst time - their safety management systems with the new or additional safety practices and procedures.

With the ultimate goal of Zero-Harm in mind, the near-term goal of CORESafety is to achieve zero workplace fatalities and a 50% reduction in the rate of mining-related injuries within fi ve years (0:50:5). The name, CORESafety, was chosen deliberately to emphasise that mine safety is a core value of today’s US mining industry.

CORESafety is a highly innovative initiative for several reasons.

• First, its philosophy is based on accident prevention rather than compliance; hence it is pro-active rather than reactive. This marks a paradigm shift in the mining industry’s customary approach to mine safety.

The systems-based approach emphasises risk identifi cation, management responsiveness, incident reporting and investigation – as well as training and emergency management procedures to minimise risk and hazard at the outset.

• Second, a task force of mine safety professionals built CORESafety from an extensive examination of occupational safety and health systems – many from outside the mining industry and from outside the US – seeking successful practices that could be adapted to conditions in US mining.

• Third, CORESafety is comprised of separate and independent components or modules that are designed to address a specifi c aspect or area of mine safety. Each module provides tools that are highly adaptable to varied mining conditions but are altogether comprehensive in scope.

The initiative has its own separately maintained website www.coresafety.org with resources added and updated frequently as experience generates

new ideas and resource tools to support companies as they implement CORESafety at their operations. Now in its second year, CORESafety has already attracted widespread interest within and outside both the membership and industry. Presently, 33 NMA companies are participating in CORESafety covering the worksites of more than 125,000 mining employees. All have begun or have completed a “gap analysis” designed to identify opportunities for enhanced performance.

Several mine commodity groups have expressed an interest in using CORESafety in their sectors and several vertically integrated companies have indicated their intentions to deploy CORESafety across their business lines. In 2012, the fi rst full year of CORESafety’s implementation, the US mining industry achieved the safest year in its history, recording the lowest fatality and lost-time accidents rates.

www.coresafety.org

Company: National Mining AssociationProject: CORESafety®, USA

World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

Runner-up

2013

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Zhang Xiwu Chairman, World Coal Association Chairman, Shenhua Group

Peter Freyberg Vice Chair, World Coal Association Chairman, WCA Strategic Development Committee Head of Coal Assets, Glencore

Wang An Vice Chair, World Coal Association Chief Executive, China National Coal Group

Manie Dreyer Chairman, WCA Resources Committee President, BHP Billiton Energy Coal South Africa

Godfrey Gomwe Chairman, WCA Energy & Climate Change CommitteeCEO Thermal Coal, Anglo American Thermal Coal

Milton Catelin Chief Executive, World Coal Association

Don Elder Former WCA Chairman Former CEO, Solid Energy New Zealand

Prof. Maciej Kaliski Director of Mining Department, Ministry of Economy, Poland

Fredrick D. Palmer Former WCA Chairman Senior Vice President, Government Relations, Peabody Energy

The Judges The World Coal Association would like to thank the judges who participated in the awards and took time to review all the applications and vote.

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Harry Kenyon Slaney Chief Executive - Energy, Rio Tinto

Deck Slone Senior Vice President Strategy & Public Policy, Arch Coal

Mike Sutherlin President & CEO, Joy Global

John Topper CEO, IEA Coal Research

Roger Wicks Former WCA Chairman Former CEO Thermal Coal, Anglo American

Steven E. Winberg Vice President Research & Development, Coal Conversion, Power Development, CONSOL Energy

Changhua Wu China Director, Climate Group

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World Coal Association

The World Coal Association is a global industry association formed of major international coal producers and stakeholders. WCA works to demonstrate and gain acceptance for the fundamental role coal plays in achieving a sustainable and lower carbon energy future. Membership is open to companies and not-for-profi t organisations with a stake in the future of coal from anywhere in the world, with member companies represented at Chief Executive level.

WCA provides a voice for coal in international energy, environment and development forums, presenting the case for coal to key decision-makers, including ministers, development banks, NGOs, international media, the energy industry, business and fi nance and research bodies.

WCA is the global network for the coal industry.

If you are interested in the future of the coal industry, contact us to see how you can get involved: [email protected]

World Coal Association5th Floor, Heddon House149-151 Regent StreetLondon W1B 4JD, UK+44 (0) 207 851 0052

[email protected]

For further information on the WCA Leadership and Excellence Awards email [email protected] or visit www.worldcoal.org/awards2013

twitter.com/worldcoal

facebook.com/worldcoalassociation

youtube.com/worldcoal

worldcoal.org/extract

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World Coal AssociationLeadership & Excellence Awards 2013

World Coal AssociationLeadership & Excellence Awards 2013

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