Reduce mine operating costs by 20 – 30%
With out capital expenditure

 

Our associates, have had considerable success recently in mine optimisation.

Staff comprise very experienced mine managers, and professionally qualified mining engineers, mine planners and equipment maintenance experts. Staff are not the general, non-mining qualified, “management consultants” seen at times in the industry.

Without impinging on client confidentiality, specific gains and dramatic cost reductions by our associates have achieved over the last 5 years for clients are detailed below.

Hunter Valley Coal Mine, New South Wales, Australia: Produced a radically new Five Year Business Plan giving rise to the following achievements, an innovative new Five Year Mine Plan with significant changes to mining methodology, a Major Fleet reduction: from 71 to 44; and annual operating costs reduced by $ 30M. Annual sales tonnes were about 4.5 Mtpa.

Venezuelan Coal Mine, Zulia Province, Venezuela: Major increase in annual coal production from 3.9 Mt/annum to 5.1 Mt/annum in 1998 and produced at 6.5 Mt/annum for the first quarter of 1999. Formulated a new five year mining plan better suited to the deposit; annual operating costs reduced by $ 20M US; shut down10 major items of plant, while managing the operation over a period of fifteen months.

Bowen Basin Coal Mine, Queensland, Australia: Formulated Five Year Budget with annual cash cost reduction of 20% ($20 Million); implemented key points of plan while managing the operation over a period of twelve months. Achieved savings of $5Mpa in the coal handling and preparation plant area by instituting rigorous maintenance budget and control procedures, installed new water management system in the mine, identified major design impediments to the operations and was part way through a process of resolving these during the management period.

Second Bowen Basin Coal Mine, Queensland, Australia: Conducted a benchmark five year plan including a detailed maintenance budget of all the mobile equipment on site. This highlighted a number of areas to be improved, such as the management of maintenance processes, efficiency of labour, and optimization of equipment within the operation. Savings of $15Mpa were highlighted, much of which was picked up over the next two years.

Our associates approach is very much “hands on” and focuses on the key design and operational issues impacting on productivity, coal recovery and cost. Sites are reviewed on a global perspective, looking at how all the elements interact. The initial step is a 3 week review of site operations to identify and report on the key areas of improvement, $ value opportunity, and the steps necessary to reach these goals. The client can then decide what aspects they wish to correct. Our associates can remain on site if necessary to ensure that the plan is implemented and results achieved.
 

Coal Wash Plant case study shows increase in mine profits
by US$ 3 million per annum and increase in pit recovery and
mineable reserves by 5 – 7%.
 

The general logic for having a wash plant in a moderately high strip ratio mine is normally well justified, and is standard operating practice in many coal mines around the world. After spending so much money on overburden removal it is critical to recover as much coal as possible.

A recent case study was considered for a typical major Indonesian coal mine.

E.g. For a mine with a strip ratio of say 5.0 Bcm/tonne, and costs to remove overburden at approximately US$ 1.25/Bcm, there fore total costs for removal of overburden per tonne of coal is US$ 6.25 /tonne.

Current assumptions are for the washplant to recover ‘dirty coal’ (coal contaminated or mixed with overburden) to increase total pit coal recovery by about 5% up to 7%. Thereby increase total pit recovery from currently 90% upto 95 – 97%. Initial capital investment of some $2.5 million for a wash plant of 1 million tonnes per annum capacity.
 

The wash plant could also simply be a contractor operation, thus avoiding any capital expenditure for the mine.

A wash plant can also effectively increases a mine’s recoverable reserves, and extend mine life, by 5% - 7% which is also a major benefit.

Our associates have over 30 years of experience in the study and evalution as to whether a mine needs a wash plant, and in the design and costing of such an operation. We also work with contractors who have specific experience in the operation of wash plants on a $ per tonne contract basis for the customer.
 

US$ 24 million per annum increase in mine profits, and 30% reduction in costs, by Early “In-Pit” dumping of overburden waste – a case study
 

Detailed mine planning and scheduleing can allow a mine to more rapidly achieve a situation where the pit mine can reach final pit depth/limits earlier, and a allow for in pit back filling of waste. This action can massively reduce truck haul distances and therefore costs, for overburden. Also it can reduce amount of area disturbed ex-pit, and lower over all rehabilitation expenses.

E.g. Detailed mine planning and scheduling expertise was applied to one recent case study of a major coal mine where current haul distances on average were 1.8km one way to ex-pit waste dumps. This study showed that when in-pit waste dumping could be introduced, truck haul distances could be reduced from 1.8km down to about 0.9km, and save some $0.40 / Bcm. This could reduce the current overburden rate from $1.25 down to $0.85/Bcm (30% reduction). For a mine with a nominal strip ratio of 6.0 Bcm/tonne, producing 10 million tonnes coal per annum, this reflects in significant extra profit.

Extra profit 6.0 bcm/t x 10 mtpa x $0.40 = $ 24 million per year.

Our associates have conducted detailed mine planning studies on numerous coal mines through out the world, and have the expertise to balance to the factors involved in scheduling a complex multi seam, variable quallity, coal mine, to bring about the most effective means of in pit back filling.
 

40% costs reduction by alternative surface mining methods -
Direct Dozer Push applications
 

In the face of significantly decreased coal prices and stiff international competition from Australia and China etc.    Indonesia need’s to lift it self up a “quantum step” in becoming more cost competitive,  employing mining methods and technology that are to international mining standards and “best practices.”        

          For certain mine site pit and seam geometries,  the application of direct dozer methods can bring about massive cost reductions.

These methods are standard practice world wide,  and there increased application in to the Asian and Indonesian coal industry will become more necessary in order to reduce costs and maintain competitive position.

          As an example,   typical hydraulic excavator and truck operations in Kalimantan,   cost approximately US$ 1.20/Bcm.   A direct dozer push operation can reduce costs to some US$ 0.70 /Bcm  (40% reduction).

          There are some excellent seam conditions in Kalimantan very amenable to direct dozer push methods.    Experienced contractors can carry out such operations on a unit basis  $ / Bcm.

          Our associates have extensive experience in evaluating dozer push applications and also can propose an experienced contractors.
 

Upgrading to larger size mobile mining equipment
gives cost savings of 20 – 30%
 

30% to 50% mine cost reductions by replacing long truck hauls with    In Pit Crushing and Overland Conveying Systems
 

 In pit crushing and conveying systems for either overburden and coal (international reference).

Overland coal conveyor.  Long distance continuous conveyor comprising both vertical and horizontal curves  (international reference).