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Optimising mining operations – a discussion of practical constraints and opportunities. Outlook. Everything feels good now as prices are high. However . What potential exists in Open Pits?. Underground?. Processing?. Going forward. 3-Phase Process. - PowerPoint PPT Presentation
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Optimising mining operations – a discussion of practical constraints and opportunities
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Outlook
2
Everything feels good now as prices are high. However ...
2011 2012 2013 2014 2015 2016 LTP0
2,000
4,000
6,000
8,000
10,000
12,000
0
50
100
150
200
250
300
Gold $/ozCopper $/tIron ore $/tThermal Coal $/t
$/un
it
$/un
it
3
What potential exists in Open Pits?
9 10 11 12 13 14 15 16 17 18 19 202
3
4
5
6
7
8
9
10
Кол
ичес
тво
погр
ужен
ных
БелА
Зов,
шт/
час
Часы в течении смены
4
Underground?
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Potential Increase winding speed15%
Improve loadingefficiency to 0.9
Eliminate carry back Fill wagons to >95%capacity
Present capacity
5
Processing?
Current Increase availability
Increase cir-culating load
Cyclone improve-
ments
Potential0
10
20
30
40
50
60
70
80
Current Lack of ore
Bins full Choke feed
Medium crushers
Choke feed
Medium & Fine
crushers
Fit scalp-ing
screens
Potential0
10
20
30
40
50
60
70
80
Going forward
• Benchmarking & time studies to identify opportunities
• Determine effectiveness of reporting & planning systems
• Determine barriers to change• Value opportunities • Identify & prioritise solutions• Prepare implementation
plans
Diagnosis, analysis, planning
Implementation Perpetuation
Phase 1 Phase 2 Phase 3
3-Phase Process
• Make the implementation plans happen
• Change management – strategy , policy, enhanced working practices, better supervision, training, new technology
• Ensure the improvements are maintained and enhanced through ongoing review and support
• Instill a culture of continuous improvement
• Re-set technical limits – ‘raise the bar’
DIAGNOSING THE OPPORTUNITY/SETTING GOALS
Build a fact base to understand operations
Operating equipment effectiveness
Historical performance
Process maps
Use appropriate tools to set targets
• Theoretical/design limits of equipment (adjust + for safety factor)
• Benchmarking
• Repeated best
• Observations/trial
• Management consensus
• Solid understanding of current operating situation
• Prioritized set of KPIs that drive value
• Specific limits and targets for highest value KPIs
Deliverables
ANALYTICAL TOOLS - MAINTENANCE BENCHMARKING
Performance levels
Organization structure
Spare parts and contractor management
Equipment maintenance strategy
• Maintenance strategy is in place with excellent results
• Maintenance prevention is the main focus
•Workers are flexible to work in different areas
•Team leader concept is fully in use
• Purchasing of equipment is based on total cost of ownership, ramp-up time, changeover time, maintainability, reliability
• Number of vendors reduced• Parts availability, quality,
inventories, and usage are under control
• Full standardization achieved for all machines/parts
• Org boundaries crossed often• Span of control appropriate
for nature of work/worker skills
• Organizational structure clear
• Lifecycle costs part of purchasing decision
• All depts are involved in purchasing process
• OEE is improving fastStandardized parts list is widely used
• Maintenance system exists with good results
• Diagnostic toolsare introduced
• Strategy for major equipment is in place
• Machine history is recorded and analyzed
• Criticality of partsis understood
• Spare parts inventorieshave been decreased and new standards set
• Parts usage is kept under control• Pressure is on parts quality
• Span of control manageable• Staffing is applied well across
shifts• Few classifications exist
• Maintenance is involvedin purchasing of new equipment
• TCO is defined• Standardization has begun• Model lifecycle cost equipment
exists
• Parts usage, quality, availability, and inventories have to be placed under control
• No clear maintenance strategy exists
• Breakdown maintenance widely used
• Organizational structure unclear
• Large number of classifications
• Staffing weak on shifts
• New equipment purchasing is based on initial cost and technical specifications
• Vendors are selected• Parts availability and usage daily
tracking is in place• Pull replenishment system is in
place to reorder parts
Procurement
Level 1“Expert”“Best Practice”
Level 3
Level 4“Basic”
Level 2
Roles of each advisorPwC• Understand current efficiency• Understand actual costs• Implement information systems• Create link to financing
SRK• Understand current effectiveness
through benchmarking• Identifies opportunities• Highlights effectiveness of current
information system• Highlights priority • Overcomes resistance to change
• Understand long term mine plan• Identify future issues • Understand effectiveness of the
planning system• Value potential for change
• Consider re-engineering the operation
• Alternative mining or processing method
• Change of technology
10
Summary• Most mines we have visited can increase productivity by 20-30% • Most changes do not require significant investment or new skills• Key is good quality information and understanding the impact on
productivity and costs• Understanding benchmarks helps overcome resistance to change• Best solutions improve effectiveness as well as efficiency• Start now to prepare for tighter markets