Experiences with the Upgrade of a Metal Accounting System in a Nickel Smelter

"Current business and corporate environments push for improving metal accounting practices in smelters. The ensuing projects commonly proceed along a bottom-up approach. As such, efforts are first put on reviewing the measurement system and then on remedying the identified weaknesses. The focus is thus moved to mass/metal balance only after the measurements upgrade process has been completed. However, practice has shown that assessing the high variances related to suboptimal measurement processes is complicated without the help of statistical data reconciliation. This bottom-up approach leads to a to-do list that can not only exceed available resources but also lack prioritization in view of achieving the targeted end use. This paper describes an upgrade project done differently where all the three dimensions of the metal accounting system: hardware, software, and people were instead involved at the onset. Personnel was thus trained on data reconciliation software at the beginning of the project to make the reconciled mass balance benefits available earlier in the upgrading project. This has pinpointed the most critical measurements where accuracy and reproducibility should be improved. Overall, not only the instrumentation retrofitting process has been streamlined, but the global risk for the whole upgrading project has been significantly lowered.INTRODUCTION Mining companies are pressured to improve their production accounting practices in response to the strengthening of corporate requirements for timely and accurate production reporting (Gaylard, Randolph, & Wortley, 2014). Smelters are not spared from these changes. However, their unique situation in the mining value chain set them as strategic targets for upgrading projects. They usually have a longer lifespan than concentrators thereby offering an extended lifecycle to justify investments. Furthermore, numerous smelters have toll agreements with third parties. Accurate cost and production accounting is, therefore, a vital piece of information to fix acceptable contract conditions. Mining companies are ultimately aiming at a clearer view of the operating performance of each business unit to improve their business decisions in a competitive environment. This sought for increase in visibility through plant performance can only be achieved through an upgrade of the metal accounting system. Figure 1 shows the different components of a state of the art system (Gaylard, Morrison, Randolph, Wortley, & Beck, 2009)."