This U.S. Bureau of Mines report describes a system to determine the position and heading of a mining machine during maneuvers in the face area of an operating mine section. The system is the first step in the development of a guidance system for automated mining machines. The position and heading algorithm is described, and a preliminary error analysis is performed. The sensors employed were linear position transducers mounted on a mining machine with their cables attached to points on a stationary reference. Four linear position transducers were used to provide a data redundancy that increased the reliability of the guidance system. The linear position information obtained from the transducers was processed mathematically via the position and heading algorithm to provide the desired position and heading information. The algorithm takes advantage of sensor redundancy to continually test the accuracy of the sensor data. The major sources of error were determined to be the linear position transducers, the analog-to-digital (a/d) converter used to interpret the data, and the sampling frequency of the measurement system. These sources of error were evaluated to determine their inaccuracies for use in calculating the overall system accuracy.