Integrated PlanningA Technical Analysis Using BlendOpt
J. Whitacre, S. Schellenberg and A. Iorio Paradyn Systems Pty Ltd
www.paradynsystems.com
Holistic Processing Strategies
Strategic Decisions
feed blendingwhat to bypasshow to process
Opex
Washability
Mine Schedule
Plant Operating Capacities
Product Ash
Sales Targets
Feed Qualities
Pit
CHPP
Blending at
train loading
Blending in
Port Stockyard
Blending onto ship
ROM Blending
Stockp
ile
Blends
Pit Train Vessel
Value Drivers in a Coal Supply Chain
Coal Aging/Oxidation
Cut-points, feed blending, wash or bypass, operating
constraints
ROM StockpilesProduct Stockpiles Port Stockpiles
Rail constraints
Feed Blends
Integrated Planning Study with BlendOptModel Inputs
BlendOptOutputs
Case Study 1Rule-based Processing Strategy
Case Study 1Results
Rule-based Strategy
BlendOpt• 6.8% higher revenue• 50% less washing
Case Study 2Processing Strategies using Excel Solver
…Understanding the Limits of Optimisation in Excel
Case Study 2 Planning by Premium Product
Planning Heuristic: use Excel Solver to optimise in order of price premium
Case Study 2 Results
Product Ash Spec Price Premium over P3P1 Low 23%P2 Mid 15%P3 High 0%
Tonnage P1 (Mt) P2 (Mt) P3 (Mt) Total (Mt) Revenue ($M)Heuristic 1.03 0.70 0.55 2.28 160.0BlendOpt 0.52 1.86 0.00 2.38 168.5
…Over-washing caused by an over emphasis on premium product
Case Study 3 DMC Cut-Point Strategies
Objectives
Planning Decisions
• Consistent Met Coal Product Quality • Maximise Revenue
• Cut-point Settings per Seam • Product Blending
Case Study 3 Results
Baseline 5yr change in product VM ~ 2
BlendOpt
DMC cut-point = 1.45
Processing Product Consistency Revenue
9% increase over baseline
Other Model Considerations
• Dual-Stage DMC Circuits
• Different Seam Feed Rates
• Managing Data Uncertainty
Plant Modelling• ROM and Product Stockpiles
• Rail Capacity Constraints
• “Wash Only” Contracts
• 3rd Party Coal
• “Energy Based” Contracts
Supply Chain Modelling
Conclusions
Incremental Adjustments in:• Wash vs Bypass• DMC cut-points • Product Blending
Non-Trivial Improvements to:• Yields• Costs• Revenue
CAN DISCOVER
Holistic View of Processing Uncertainty drives calculated risks not conservativism
…BUT ONLY IF