Including In-Process Inventories in the Metal Accounting of Flotation Plants

"Increasing demand for timely and accurate information about flotation plant performance requires metal accountants to increase the scope and reporting frequency of plant production. This trend has brought in-process inventory estimation at the forefront of metal accounting issues. Such significant in-process inventories can be locked in diverse process equipment (bins, holding tanks, flotation cells, thickeners, pipeline, etc.) or in stockpiles (ore, concentrates, tailings, etc.). Practice has shown that boldly ignoring these in-process inventories or the errors associated with their estimation lead to unreliable metal balances thereby creating confusion in plant production planning and operational performance assessment. To this extent, the characteristics (physical bounds, spatial heterogeneity and residence time) as well as the available measurements (volume, density, humidity, mass, composition, etc.) of each unit/section found in a generic flotation plant are jointly reviewed with respect to the particular metal accounting issues they present. The daily and monthly metal accounting tasks are then reviewed together with possible methods for obtaining reliable inventory estimates including different procedures for end-of month reconciliation.INTRODUCTION Most of the cost reduction initiatives of the mining industry aim at improving capital efficiency and asset utilization. Among the possible paths through which these goals can be achieved are mine-to-metal optimization, real-time plantwide process control (Hodouin, 2011) and knowledge sharing databases (Bascur & Linares, 2006). However, the successful implementation and subsequent monitoring will ineluctably results in an increased demand for timely and accurate information. This more than often requires metal accountants to increase the scope and reporting frequency of plant metal production. A striking example of such scope expansion is the Minas-Rio iron ore project in Brazil (Anglo American, 2013) having a pipeline route of 525 km between the concentrator and the concentrate shipping area. Several other mining companies have also set an increased frequency for their key performance indicators thereby shrinking the metal accounting period from monthly to weekly and daily. Those concurrent trends have brought in-process inventory estimation at the forefront of metal accounting issues. Indeed, as illustrated in Figure 1, improving trading reactivity requires improvements in production planning which strongly impacts the requirements for reliable metallurgical accounting. Furthermore, practice has shown that boldly ignoring significant in-process inventories or the errors associated with their estimation can lead to unreliable metal balances. In other words, since metal balances are the cornerstones of metal accounting, some of the risks associated with important business decisions are linked to errors associated with in-process inventory measurements."