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By C. Frenzel, N. Blechschmidt

"INTRODUCTION There is no doubt about the time and effort companies put in establishing and maintaining their equipment. However, the question about how these companies can map the benefits comes up. Neither do they have the tools to quantify the benefit of their action, nor do they have the tools to know the actual quality of their current maintenance system. The resources used in the process seem futile to observers. It seems impossible to trace improvements and to get information about the impact of actions in retrospect. Improvements in maintenance performance cannot be recognised by management or shareholders. Thus the necessity for measuring the performance of maintenance systems is given. In this paper ConMoto is systematically showing the strengths and weaknesses of many companies' maintenance management and is providing field-tested proven design elements for measuring maintenance systems and implementing Value Oriented Maintenance. Considering only business assets in production facilities and related machinery out of all investment goods in Europe, you reach a value of around 9.7 trillion euros in 2008. In Germany alone the equipment replacement value amounted to about 1.9 trillion euros [8,10,11,13]. If you calculate a cross sector maintenance costs rate of 4.8 % (corresponding to the average value identified in this study), direct maintenance costs in European production locations add up to over 450 billion euros per year [3]. These figures speak for themselves. Yet maintenance is not only of enormous significance for European enterprises. Our experiences show that maintenance and asset management, particularly sustainability issues, are also increasingly moving to the forefront in the BRIC states, in the Middle East and in many emerging countries. First of all, in order to meet the resulting high quality and cost related requirements of maintenance systems, a comprehensive overview of the issue is needed. This overview is provided by a detailed analysis of 83 companies and production plants from various sectors – with amazing results. SIGNIFICANCE OF MAINTENANCE Current studies show the high financial significance of maintenance and asset management. According to the market study in the Asset Manager [9], in industrialised countries about 10 to 15 per cent of the labour force are employed in maintenance and facility management tasks. In Europe about 40 to50 million people are directly and indirectly involved in retaining the value of machinery, plants, buildings, transport systems and infrastructure facilities. A glance at the costs side also demonstrates the great relevance of maintenance. EU-wide annual direct maintenance costs amount to a total of more than 1,500 billion euros. In Germany alone they are about 250 billion euros. This impressive total is considerably exceeded by indirect maintenance costs caused by technical failures. Indirect costs are estimated to be five times higher (Figure 1). [7,12,14]"

Jan 1, 2018

By J. O. Marsden, M. M. Botz

"Heap leaching is responsible for approximately 21 percent — 3.9 million metric tonnes — of copper production and 9 percent — 270 metric tonnes or 8.7 million ounces — of gold production worldwide. Given metal price assumptions of $2.25/lb for copper and $1,250/oz for gold, these portions of global production generate revenues of $19 billion and $11 billion, respectively. For heap leaching operations, small changes in metal extraction efficiency drive substantial changes in operating cash flow margins and affect project viability. Variances in actual metal production from budgetary forecast estimates can mean the difference between success (value creation) and failure (value destruction) for a heap leach project. Despite the importance of heap leaching for copper, gold and silver production worldwide, there are no clear standards or guidelines for developing heap leach metal production forecasts. There is considerable variation among copper and gold producers that apply heap leaching technology as to how such modeling and forecasting is applied at the operational level. There are a variety of different modeling approaches that can be utilized for this purpose. However, these vary in cost, complexity, time to implement, accuracy and credibility. This paper explores the options available for heap leach modeling, discusses the advantages and disadvantages of each approach, and provides guidelines/recommendations for an effective approach to modeling metal production at existing or planned heap leach operations. The paper also provides expected ranges of variation between actual and modeled production.Introduction and backgroundHeap leaching is fundamentally different from other methods used in the processing and extraction of gold, silver, and copper and other base metals. Considered globally, the technique represents a relatively modest portion of production compared with the primary technologies applied for copper and gold recovery. Approximately 21 percent of copper production is attributable to heap leaching techniques, as opposed to 79 percent by conventional crushing, milling, flotation, smelting and refining. For gold, about 9 percent of global production is obtained from heap leaching, compared with over 90 percent by various combinations of crushing, milling, gravity concentration, flotation and/or agitated cyanide leaching processes or, in the case of placer deposits, by direct gravity concentration and/or amalgamation. In cases where heap leaching is the primary source of metal production, the ability to accurately forecast metal production may be the difference between commercial success and failure for a project or operation. Heap leaching — of crushed or run-of-mine ore — is also commonly applied as a secondary process to treat lower-grade ores from a given deposit, such as at Chuquicamata in Chile, Cerro Verde in Peru and Bagdad in Arizona for copper extraction and at Twin Creeks and Carlin, both in Nevada, for gold. In such cases, heap leaching provides incremental revenue to supplement the primary process. Variances between actual and forecast metal production from heap leaching as a secondary process are typically tolerated and absorbed within the overall site metallurgical balance. In either case, accurate production modeling and forecasting creates significant value for heap leaching projects, is essential for managing production expectations — timing and volumes — and is likely to be a critical success factor for most heap leach projects."

Jan 1, 2017

By T. L. Owen

Since 1993 Cyprus Amax has brought $2.5 billion dollars of greenfield and expansion projects into production, taking it from a mid-sized domestic minerals company into a major international minerals organization. The near simultaneous development of these multiple mineral projects in different locations around the world provided the opportunity for Cyprus Amax to develop a formal project management approach based, in large part, on an outsourcing philosophy. This formal project management system along with its outsourcing philosophy has served the growth agenda of Cyprus Amax extremely well. These preceding factors, coupled with the in-house retention of a core project group that fully understands the breadth of skills and abilities needed to undertake development of multiple large projects successfully, have been the cornerstone of Cyprus Amax’s project development success.

Jan 1, 2000

By FELIPE SÁNCHEZ, PHILIPP HARTLIEB

Innovation plays a critical role in the mining industry as a tool to improve the efficiency of its processes, to reduce costs, but also to meet the increasing social and environmental concerns among communities and authorities. Technological progress has also been crucial to allow the exploitation of new deposits in more complex scenarios: lower ore grades, extreme weather conditions, deeper deposits, harder rock mass, and high-stress environments. This paper discusses the importance of innovation for the mining industry and describes the mechanisms by which it is carried out. It includes a review of the drivers and actors involved and current trends. The digital transformation process that the industry is going through is analyzed, along with other relevant trends that are likely to shape the mining of the future. Additionally, a case study is presented to illustrate the technical and economic implications of developing a disruptive innovation project.

Jul 23, 2020

By Ravi Sahu

"In the global mining industry, there are those who seem resigned to the fact that the mining industry has always operated according to certain time-tested principles that don’t involve jumping on every new technological trend. Others expect that mines will soon have autonomous electric vehicles running around the clock. The truth lies somewhere in the middle. In business, as in life, that is usually the best path to follow.The instant access to people and information provided by 21st-century technology continues to push businesses in all industries toward greater efficiency and unheard-of levels of modernization. And in the world of mining, the embrace of advanced technology is all about managing risk.However, even in this age of digital information overload, some mine sites still require employees to physically download data from individual trucks to monitor payload data and inspect road conditions using a clipboard. What’s more baffling is that other mine sites still have no way of tracking tons moved at all.This isn’t due to a lack of innovation in the industry. Quite to the contrary, there is an abundance of new technology available that provides real-time monitoring of vehicle movements and tracks road conditions without the intervention of people. So why are owners reluctant to embrace advances in mining tech?Gauging the value of changeSurvey data has traditionally been captured by ground laser scans and LIDAR systems. A mine site surveyor would drive around the pit with a truck-mounted scanner to generate a point cloud. This process would be completed every few days and would take an entire day.The many cons of this method far outweigh the pros. First, it provides no visual data. If an operation has moved beyond the roller wheel and tape measure, visual pit models and LIDAR scans are typically completed once every six to 12 months by an aerial flyover, but such sporadic information gathering isn’t likely to result in the most actionable data. Moreover, given the high cost (in terms of both money and time), the numerous safety and liability issues, and the lack of flexibility in scheduling, manual processes are more trouble than they are worth.Overall, while miners are excellent operators who value innovation, their employers often try to outsource it or acquire innovators instead of investing in existing technology that can improve current operations. It is a never-ending dilemma:"

Jan 5, 2018

By FELIPE SÁNCHEZ, PHILIPP HARTLIEB

Innovation plays a critical role in the mining industry not only as a tool to improve the efficiency of its processes and to reduce costs but also to meet the increasing social and environmental concerns among communities and authorities. Technological progress has also been crucial to allow the exploitation of new deposits in more complex scenarios, such as lower ore grades, extreme weather conditions, deeper deposits, harder rock mass and high-stress environments.  

By Russell Barr

Operational excellence is generally known as a management system integrated across critical functions that is geared towards continually improving operational performance. Functional areas such as health, environment and safety, quality and human resources are the focus of many corporate-wide operational excellence programs. Operational excellence also focuses on improving areas such as customer orientation, employee empowerment as well as process, and systems optimization. It is widely viewed as critical to sustaining business performance improvement. Although it is difficult to find a universally accepted definition, or even common foundation in many respects, operational excellence remains a popular term in the business world. Many organizations have developed their own version of organization excellence, influenced by such individual factors, other similar institutions or even third-party service providers. A mining organization is no different from other organizations in that adopting and implementing effective operational excellence programs can dramatically improve business execution and performance across regional or global interests. This paper brings together various perspectives of operational excellence and reconciles them for a useful composite for the mining industry. While most agree that operational excellence should include normal functions in a manufacturing operation such as production, maintenance and engineering and processes such as quality, environmental and continuous improvement, many other factors for operational excellence seem to vary from perspective to perspective. Thus, programs that manufacturers engage in may seem the same, but may, in fact, be different in key areas. This may affect organizational performance in tangible ways. Management must buy into the company?s definition of operational excellence and be dedicated to achieving it. A review of many of the existing definitions of operational excellence, explicit or embedded as part of a program, seems to yield the following common factors: ? It should help organizations better execute their processes and services. ? It should be geared towards improving quality ? It requires that the various operations should be aligned with the overall enterprise strategy. ? It should be geared towards continuous improvement. A composite of operational excellence definitions suggest that it is: ? Geared towards helping the organization achieve sustained profitability; ? tied to strategic alignment and business objectives; ? tied to solid investment strategies; ? integrated as part of the culture, process, time plan and performance; ? a relevant performance measurement system; ? extended to include all aspects of the supply chain (including external suppliers); ? integrated with health, safety and environmental (HSE) aspects. And, while the pursuit of operational excellence intuitively suggests that businesses should improve, it is very difficult to achieve given the difficult challenges facing companies today. Mining businesses face numerous pressures to perform in a global marketplace such as demand, energy cost, variable cost and pricing fluctuations as well as infrastructure challenges to further confound the environment. Companies generally must look to the following:

Jan 1, 2009

By J. R. Shultz, R. J. Lambert

One of the present trends in the mining industry is the increased use of mining contractors. In the past, many project owners have utilized mining contractors for topsoil stripping or overburden removal, usually on a short-term or periodic basis. In recent years, mining contractors have not only removed the overburden, but mined the product as well. Why is this change occurring? A prevalent trend in the mining industry appears to be the outsourcing of non-core and non-strategic functions, allowing producers to focus more on areas of technical expertise where higher incremental value is added—that is the processing, refining, and marketing of the product. As capital allocation becomes more critical, this trend is likely to continue.

Jan 1, 2002

By V. N. Kazakidis

With increased levels of automation, capitalization, and empowerment of citizens, the traditional axis of labour versus capital or national government versus capital, upon which the allocation of benefits from a mining project was traditionally based, has shifted primarily to a capital versus community axis. In light of this paradigm shift, it is critical for the sustainability of mining that economic indicators be considered at the pre-feasibility, feasibility, and permitting stages of a project. Such indicators should emphasize the ?ripple effect? of the economic impact of a capital-intensive mining investment on a region due to outsourcing, as well as the diversified spin-off opportunities and the technological advances that can be exploited by local communities.

Jan 1, 2003

Cost accounting information is used primarily for (1) planning, control, and performance evaluation; and (2) managerial decision-making. Incremental analysis is a tool for managerial decision-making. It is designed to estimate future financial performance, namely the benefits and costs associated with alternative courses of action. Decisions may be distinguished as pertaining to short-term or long-term activities. Long-term activities frequently focus on capacity decisions and the attendant capital budgeting processes used to quantify the financial effects of these decisions. Short-term decisions typically address short-range production quantity and pricing issues, outsourcing, selection of the optimal mix of products, inventory management, and the acceptance of special orders. This chapter addresses these short-term decisions.

Jan 1, 1999

By Simon Wright, Roland Heersink

In the past, the center of most companies' e-initiatives has been on reduction of indirect costs, such as selling and procurement. Recently, e-commerce has moved its attention from back-office functions into manufacturing, in order to significantly reduce direct operating costs. This paper describes many of the Web-Powered Manufacturing initiatives being employed across various industries, and relates them to similar opportunities being started within the mining and mineral-processing sector. The following opportunities are enabled by Web-Powered Manufacturing: • Collaboration with outside experts to extend their pool of resources • Management of remote and distributed operations • Tie-in of small operations to a larger operation • Monitoring a position in a JV operated by a partner • Managing a plant located in someone else's facility • Having a chemical supplier manage his inventory in a customer's tanks • Having an equipment supplier remotely troubleshoot his equipment installed in a customer's site • Having an additive supplier provide remote pro-active. guidance in optimization of a customer's operation • Having software suppliers take responsibility for the results of their applications • Outsourcing software and systems support by providing remote access Details of one of these opportunities are described in this article, and the benefits captured using this approach and the technologies necessary to make them a reality are emphasized.

Jan 1, 2002

By G. T. Lineberry, W. J. Wiehagen

A paradigm shift As market economists, mine managers are interested in "staying in business" and even "prospering." Bottom-line results are the "order of the day." Concern for bottom-line results can invoke questions such as how much was produced, at what cost, and was anyone injured? While these questions will always carry everyday emphasis at the mine, they are fundamentally lacking in that they often appear, especially to lower levels of management and to the production worker, as pre-eminent concerns. Driven by market economics, many organizations have decentralized, outsourced, downsized, restructured and formed new coalitions. Investments in new technology and a concentration on productivity have been an essential part of these changes, contributing to improvements in both safety and efficiency. A reason for (and, perhaps a result of) these improvements has been the development of a highly experienced and flexible work force. This situation presents an interesting opportunity to modify a few paradigms about work life in general, and perhaps a few paradigms about how we invest in the miner, in particular. Studying these issues now night offer some interesting opportunities for the Future, as the foundations for the next generation of mine workers are laid. With the average "experienced" U.S. miner five to fifteen years from retirement, perhaps a key determinant of future success in the world market might be how well we make the transition from today's work force to the work force of tomorrow. We can ill afford to wait a few more years to tap into the special knowledge residing within a veteran mining work Force. The Work Crew Performance Model (WCPM) is one approach to defining, capturing and transferring this expertise. The WCPM suggests a paradigm shift, moving from a focus on products (quantity) to a focus on the process (quality). It also involves a slight change in the process -- a different way to think and work. Of great importance, it entails a belief and a commitment to people within the organization; a commitment to collect simple (but interesting) data; exploration for insightful ways to plot and integrate that data; and finally the search for creative methods to reinvest that knowledge back into the organization, that is, back into the work force. As a way of thinking, the WCPM subordinates information about how much is produced daily or how many were injured over a year's time to concern and detail for how the individual's and the work crew's performance contribute toward meeting organizational goals. Drawing upon the expertise within members of that work crew to address and solve operational problems is one approach for meeting organizational goals. This everyday focus on how we work is hypothesized by the WCPM to make the difference between a good section supervisor and the average one; an exemplar continuous-miner operator and the run-of-the-mill one; a mining crew that produces consistently high quantities, but, inadvertently, degrades the production of other units. The WCPM permits objective and reliable performance data to be collected. This data then can be used to define variability within tasks of work crew members; to relate observed variability to a cost consequence; and to more meaningfully analyze performance through the integration of traditional analytical tools, such as the production simulator, CONSIM, with a recommended behavioral approach, the WCPM. Basis for engineering test Most equipment selections and purchases involve a field trial test of the system. Technology is routinely bench tested at the manufacturer's facility, government agencies and the mine site. The WCPM suggests a similar, but more practical, method for testing the performance of a work system -a test for how technology is used (by people) at the work site. It implies learning from veteran mining personnel that have gone well "beyond the book." This approach to learning and to integrating training with everyday work life can help answer questions such as: What constitutes desirable perfor¬mance as, for examples, a shuttle-car operator, a miner operator or a bulldozer operator; what characterizes exem¬plary performance within the context of the work system, the technology and the work crew; how can investments in the worker he linked to measurable results within the organiza¬tion? This paper explores these questions and makes recom¬mendations for enhancing the cost-linkages between invest¬ments in people and the mine's monthly cost sheets.

Jan 1, 1996

By A. P. Schissler

2013 has seen metals, industrial minerals, and coal all reduce in price due to market and geo-political factors. Many companies are taking write-downs to recalibrate their reserves and have enacted focused cost reduction programs. The public domain includes statements where companies have operating cost reduction goals in the $500 million range. Zero-base staffing & budget analysis is a means to achieve optimal employment and cost levels for a given level of production. The method involves measuring the work to be done similar to Lean. Lean is a method to review each step of production and remove anything that doesn?t add value or is necessary to complete finished goods. Zero-base methodology has been applied to mines worldwide producing realistic and sustainable levels of staffing and costs based on the quantity of work. The objective of this paper is to provide the framework of zero-basing with examples of application.

Feb 23, 2014

By MATT RENAUD, Mustafa Kumral

Mining corporations have spread their operations worldwide in the last few decades. The reason behind widening operations geographically can be seen as it being part of a risk diversification strategy. Given that the technical, financial and social risks are high, favorable deposits, taxation regimes and legislative frameworks create incentives for international mining operations. On the other hand, international mining activities add the risks of permitting, investing, operating and decommissioning to the corporations. These risks could emerge from defaulting, corruption, resource nationalism, social license to operate, and political and legislative uncertainties and instabilities.

By T. Krichler

"Current mine control stations are either single-position systems with high engineering effort or all-in-a-box solutions with low integration possibilities of third-party devices. Above all, both approaches are cost-intensive and not feasible for small companies. This paper shall be an inspiration of how to enhance the productivity and monitoring of an existing mining system in a modular way by introducing a proven technique of the ongoing digital revolution: A Wi-Fi network based on the communication protocol OPC UA. The starter kit consists of a single-board computer, a WLAN access point and any electronic sensor. INTRODUCTION The majority of the European mining industry is run by small and medium deposits (Europe Geology, 2017). This is due to the fact that most ore mines in Europe are widely distributed within the continent, are generally small and additionally they are often steeply inclined. Such ore bodies are normally mined with underground mining methods and must be excavated with high selectivity because of their small thickness. That is why the economy of scales, higher efficiency through bigger machines, cannot be used in most deposits in Europe except for lignite mines. It is important to find an alternative possibility to improve the efficiency of European mines for making them competitive internationally. For cost optimization and profit maximization it is necessary to use the trends of industry 4.0 and to broadcast these into the mining industry to reach a technological advantage. The goals of the EU within the Horizon 2020 funded project are to shorten the actualisation of the mine and block model to hours, improve the communication with Through the Earth (TTE) via very- or ultra-low frequency for long-time monitoring of the abandoned workings, and develop a cost-effective mine control station for optimization of mining processes in Small and Medium Enterprises (SMEs) as well. This paper deals specifically with the new approach for data acquisition, transmission and visualisation of a mine. SCADA AND ERP IN MINING There are already many Supervisory Control and Data Acquisition (SCADA) and Enterprise Resource Planning (ERP) programs on the market, but these are normally not developed for the mining industry. At the moment this leads to three options. • To hire a system integrator, who shall build a complete control station for one mine that requires a high amount of knowledge in programming and cannot be maintained by the mining company itself. • To buy different types of out-of-the-box systems, whereby every system can include some of the used technology. In this case a huge amount of project engineers and operators – at least one per system and shift- is required. • To buy every machine and program from one company including the service contracts."

Jan 1, 2018

By Phil Shelton

What exactly does clean coal mean? Mining coal creates dust and releases methane gas. And burning coal liberates CO2 and emits particulates, including SO2 and NOx. Coal creates wastes that are often stored in unsightly and potentially dangerous slag heaps and lagoons. When clean coal technology is discussed, it sometimes seems that creating modern or ?ultra super critical? coal-fired power stations is presented as the main or even the only answer. However, there may be a more holistic approach. Using the energy potential of coal is always going to have environmental impacts. Some of these will be negative. But the need to secure future energy resources demands that society tackle these negative issues and find ways to minimize and offset them.

Jan 1, 2010

By J. Wiebmer

The two most important influencers of cost-per-ton in an underground mining machine are its productivity (tons/hour) and its availability-utilization (hours/year). Operating cost and initial price have far less impact. This paper reviews a cost-per-ton sensitivity analysis for underground mining equipment and discusses benchmarks for measuring its performance. The conclusion is that miner-supplier partnerships and the Information Age are the two most significant trends in cost-per-ton reduction.

Jan 1, 1997

By R. Todd Swinderman

"Higher production demands across all bulk handling segments require increased efficiency at the lowest cost of operation, in the safest and most effective manner possible. As conveyor systems become wider, faster and longer, more energy output and more controlled throughput will be needed. Add an increasingly stringent regulatory environment and cost-conscious plant managers must closely review which new equipment and design options align with their long-term goals for the best return on investment (ROI).There are primarily two separate market segments using conveyor belts. One is in process industries such as food, chemicals, paper and powders. Handled in relatively low volumes, the bulk materials that enter these processes are generally of a consistent size and quality. The other market includes mining, coal handling and cement, where the bulk material’s quality and size vary, and the volumes are typically much greater. While both segments face similar issues with safety and environmental control, the properties of the materials handled and the volumes transferred suggest different approaches, with one thing in common: increased belt speeds requiring modern equipment upgrades.Safety at higher belt speedsWith companies recognizing that safety does indeed pay, safety is likely to become a new source of cost reduction. The percentage of mines and processing facilities with a robust safety culture are likely to increase over the next 30 years to the point where it is the norm, not the exception. In most cases, with only a marginal adjustment to the belt speed, operators quickly discover unanticipated problems in existing equipment and workplace safety. These problems are commonly indicated by the larger volume of spillage, increased dust emissions, belt misalignment and more frequent equipment wear or failures."

Jan 7, 2017

In early June, Rio Tinto?s chief executive officer Tom Albanese said that he expected demand for iron ore, aluminum and copper to double in the next 15 years. Driven by global industrialization and urbanization, Albanese said during his company?s annual general meeting that to meet the demand in 2030, the additional supply required will be equivalent to replicating the iron ore output of Australia?s Pilbara region every five years, adding another aluminum production complex the size of Canada?s Saguenay every nine months and developing another copper mine the size of Escondida, in Chile, each year.

Jan 1, 2010

By Cary Hirner, Dan Lopez, Ross Webb, Stephen O’Connell

"Construction of the largest desalinization plant in the Americas has commenced in northern Chile. It is part of a several billion dollar expansion at a copper mine whose operations nearly stopped due to the challenge of securing a reliable source of water from the Pacific Ocean in a safe and environmentally sound manner. This paper discusses the risk management, design and construction of a quadruple chamber intake and outfall shaft, high capacity pump station, three 7m diameter vertically drilled marine shafts and three subsea tunnels constructed through challenging Andean hard-rock geology. The three 2.5m diameter subsea microtunnels are being mined with vertical curves through variable quality rock 30 meters beneath the ocean and retrieved in the wet from the 7m diameter marine shafts. INTRODUCTION AND BACKGROUND The battle for securing the rights to a constant water supply is a worldwide issue and nowhere is that more evident than the Atacama Desert of Chile, the world’s driest place with areas of the desert that have not seen rainfall in recorded history. The Atacama Desert also happens to be home to some of the world’s largest ore deposits which require huge amounts of water to extract and process. What available water there is comes from three main sources: deep seated wells, glacial water from the Andes Mountains, and desalinated water. Vying for water from wells and glacial streams and lakes are numerous agricultural and domestic facilities in the valleys surrounding the Atacama Desert. Environmental regulations and legal rulings have limited the amount of “natural” source water which can be used for mining purposes. Desalination plants are a known solution for combating water scarcity, albeit a costly one. The total estimated cost of constructing this desalination plant is over $3B USD, which will include a 2500lps capacity and an approximately 118km pipeline from the coast up to the mine located in the Andes. The overall scope of the project includes design, procurement, and construction packages for the 2500lps desalination plant including the seawater reverse osmosis plant, water conveyance to the mine, power transmission, the reservoir and the marine works package which forms the basis of this paper. Key components of the underground construction portion of the Marine Works are:"

Jan 1, 2016