General Information Iron ore reserve (tonnes) Annual production (tonnes) Life of mine (years) Distance from mine to port (kilometres) Trains in operation Locomotives per train Amounts 1,200,000,000 30,000,000 Blue Mountain Mining Information Sheet 40 240 Round trip is 480 kilometres 3 Each train comprises locomotives and carriages 2 Notes Carriages per train Fuel usage per train (litres per kilometre) Fuel cost ($ per litre) Effective operating days per year Discount rate After Tax Information on Locomotives (per locomotive) Initial outlay ($) Life of locomotive (years) Working capital ($) Maintenance costs per year ($) Depreciation method Salvage value at end of year 20 ($) Information on Drivers 208 8 Averaged over round trip 2.10 360 Used to adjust for maintenance and breakdowns 30% Tax is paid in the year of income 12% Applies to non-automated and automated options 3,000,000 Mine uses MD4400AC trains 20 Operative life is shorter than average due to continued operation of trains and load requirements 1,000,000 Fuel, spare parts and related materials 300,000 Straight Line Rate 1/Locomotive Life 5,000 Drivers required (per train, per day) Work hours (per driver, per day) Driver's weekly working hours (average) Driver' yearly working weeks Driver's unavailability due to illness (weeks per year) Total Driving Hours (per year) Total drivers required Driver's average annual salary ($) 4 Two drivers operate each train. 12 Each shift covers the trip from the mine to the port or from the port to the mine. 42 Averaged as drivers will work 2 weeks on 2 weeks off. 48 Net of leave 2 51,840 27 250,000 Information on Automation Additional capital outlay to rail line ($) Salvage of additional capital outlay to rail line ($) Additional capital outlay to locomotive ($, per locomotive) Salvage of additional capital outlay to locomotives ($, per locomotive) Additional working capital ($) Fuel efficiency usage adjustment Maintenance cost adjustment Drivers required Total automation technicians required 40,000,000 Sensors and related materials, depreciated straight line over life of mine 0 300,000 Sensors and related materials required for all new locomotives, depreciated straight line over life of locomotive 0 1,000,000 Total across rail line and all trains 93% Automation reduces fuel usage as locomotives operate more efficiently, e.g. reduces cost by 7% 95% Automation reduces maintenance costs through less wear and tear, and breakdowns of locomotives, e.g. reduces cost by 5% 0 No drivers required due to automation 6 Additional technicians required to maintain locomotives and rail line Automation technician's average annual salary ($) 180,000 0