Peabody Pursues Gasification Project in China - Peabody Energy

12 5 years ofinnvFor 125 years, hundreds of Peabody employees have challenged conventional wisdomand devised better ways to do business. In ways large and small, they’ve reshaped theway coal is mined, and in the process transformed Peabody into one of the most innovativecompanies in the industry. Here are some of their stories:Keeping Machines on the MendLong before mining machinery was equipped withself-diagnosing computers, Peabody’s Illinoisoperations developed a predictive maintenanceprogram in 1983 that prevented breakdowns andextended the life of the company’s machinery. Theinnovative initiative enlisted senior project engineersto carefully monitor machine vibration levels todetect impending breakdowns before they occurred.The process allowed repairs to be scheduled moreefficiently with less disruption to the productioncycle. Modeled after initiatives at the NationalAeronautics and Space Administration and theU.S. Navy, it was the only contemporary programof its kind in the coal industry.Ripping into ReclamationAny farm hand knows loose soil leads to better cropyields. So, when Peabody reclamationists in Illinoisand Kentucky set out to reclaim prime farmland, theylooked for ways to loosen earth that had been heavilycompacted by mining activity. They needed a tillingdevice that was economical to operate, convenientto use and adjustable to depths of almost three feet.Finding nothing that met these criteria, the teamdesigned the Vibrating Deep Ripper. The intimidatingname is apt. As the ripper is pulled behind a farmtractor, two large “teeth,” each containing threesmall hydraulic motors, penetrate the ground andloosen the soil. Patented in 1989, the device hasbeen ripping its way to better farming results acrossthe United States.Going the Extra Air MileAfter a damaged dragline boom temporarily idled itsMoura Mine, Peabody devised an ingenious approachto getting the Australian operation back to work in1971. After crunching some numbers, Peabody’splanners concluded that disassembling a boom inthe United States and shipping it more than halfwayaround the world by air was less costly than allowingthe mine to wait months while a replacement boomwas constructed in Australia. Sure, the boom couldbe recreated for about $375,000, while the airfreightalone for a boom would run about $390,000. Still,every day the machine was out of commissionrepresented thousands of tons of unsold coal.The result was one of the largest and longestairlifts of fabricated steel ever organized. Sevenchartered American Airlines and Pan AmericanAirlines flights were converted to carry 37-foot steelbeams and associated parts from St. Louis, Mo.,to Queensland, Australia, where the boom wassuccessfully reassembled.ApprovedInviting New IdeasMost large businesses can claim some patents,but Peabody has racked up 32 since 1976.Virtually all involve an individual or group ofemployees seeking a better, faster or moreeconomical way of working. Several of the earliestpatents were for processes for producing chemicalcoke, low-temperature coal tars and coal-basedpaving binders and have since been licensed toother companies. Other bright ideas had practicalapplications at mine sites, including a lockingapparatus for a trolley-type electrical connector,a tool for installing cutting blades on graders, adevice used to move electrically powered miningequipment, a conveyor belt cleaner and a noisesuppressing intake for ventilation fans. And everypatent certificate testifies to a culture of innovationthat continues to keep Peabody strong in the21st Century.4|Conveyor Fourth Quarter 2008