Patrick Doig

February 2015

Presented By:

Date:

Value Impacts of Truck Limited Haulage

SME 2015 – Denver

Originally Presented at AusIMMLife of Mine Conference 2014

Overview

Benefits of integrated scheduling

and landform to determine NPV

considering entire value chain

from open to closure.

Narrow focus on reduction of unit

cost = value destruction

Economics

Economic Cycle

Reduce Cost

• Capital expenditure first to be

cut

• High cost of Loading and

Transportation

• Must consider entire costs, not

individual components

Why Detailed Haulage Analysis

Plan material placement

Reduce and understand cost

Selective material placement

Determine final landform

Reduce overall closure risk

Cycle Time Variation

Using average cycle time

Insufficient truck allocation

(over and under trucked)

Reduced mining rate

Schedule delays

Methods of Truck Model

Methods of predicting truck requirements

Old software requires intense manual input

Difficult to run multiple scenarios

Recent advances allows

• More detail

• Selective material placement schedule

• Integrated with mining schedule

Dynamic Integration

Mining

ScheduleHaulage

Integrated Scheduling

& Landform

Reflect trucking restrictions

Optimize haulage strategies

• Maximize Production

• Minimize Cost

• Minimize Rehabilitation Liability

Production Schedule

Calculate Truck

RequirementsCost Model

Traditional Method

Integrated Method

Production Scheduler

Selective Material Placement (Dump

Schedule)

Calculate Truck Requirements

Modify Production Schedule to Truck

Restrictions

Cost Model

Quickly run multiple scenarios

Case Study

How many trucks

Reduce Cost

Reduce Risk

Reduce Rehabilitation Liability

Maximizes NPV

Geological Model

Pit Design

Dragline Spoil Piles Excavator Mining Solids

Truck Dump Designs

Dragline Mining Solids

Mining Schedule

0

1

2

3

4

5

6

7

8

9

10

0

10

20

30

40

50

60

2014 2015 2016 2017 2018

Co

al

(millio

n t

on

nes)

Wa

ste

Pri

me

Vo

lum

e (

mil

lio

n b

cm

)

Prestrip Prime Volume Dragline Prime Volume ROM Coal t Product Coal t

Landform Model

Total Number of Trucks

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

To

tal N

um

ber

of

Tru

cks

Truck Limited Model

Integrated Method

Production Scheduler

Selective Material Placement (Dump

Schedule)

Calculate Truck Requirements

Modify Production Schedule to Truck

Restrictions

Cost Model

Multiple Scenarios (12-46 Trucks)

Multiple Truck Fleets

Inadequate trucks =

reduced mining rates

Resulted in

• Schedule Quantities

• Total equipment

requirements

• Operational Hours

Required

• Fuel Burn

• Landform Schedule

Cost Model

Detailed Cost Model

Variable and Fixed Costs

Included Capital and Operational

Mining Disturbance

Results

What to compare

Schedule Physicals

Cost per Product Tonne

Minimum Trucking Cost

NPV

-

5

10

15

20

25

30

35

40

45

50

-

50

100

150

200

250

300

12 16 20 22 24 26 28 30 32 34 38 42 46

Co

al

(millio

n t

on

nes)

Waste

Vo

lum

e (

millio

n b

cm

)

Total Number of Trucks

Prod Coal t ROM Coal t Total Prime bcm Total DRE Prime bcm Total TS Prime bcm

Schedule Physicals

Cost per Product Tonne

$151

$110

$90

$83 $79 $78 $77 $75 $74 $73 $71 $70 $70 $69 $69 $69 $69 $69 $69 $70 $70 $70 $71 $71 $72

$-

$20

$40

$60

$80

$100

$120

$140

$160

$ / P

rod

uct

To

nn

e

$0

$100

$200

$300

$400

$500

$600

-

1

2

3

4

5

6

7

8

9

10

NP

V (

millio

n $

AU

D)

RO

M C

oal (m

illio

n t

on

nes/y

ear)

AVG ROM t/year NPV $AUD

NPV

Truck Unit Cost

$0

$100

$200

$300

$400

$500

$600

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

$3.20

$3.40

$3.60

0 5 10 15 20 25 30 35 40 45 50

NP

V (

$A

UD

)M

illio

ns

Tru

ck C

ost

($A

UD

/bcm

)

Number of Trucks

Truck Cost$AUD/bcm

NPV $AUD

Maximum

Business

Value

Minimum

Unit Cost

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

To

tal N

um

ber

of

Tru

cks

Discussion

Variance in Planned Coal Production

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

RO

M C

oal t

Millio

ns

29 Truck Case Base Case (No Truck Limited)

Video

Summary

Deficit / excess of trucks = increased costs

Understand how many trucks are required

Integrate landform with the mining schedule

• Reduce the mining schedule

• Better cost estimation

• Decrease cost per product tonne

• Reduce Risk

Thanks

Patrick Doig

Senior EngineerMAusIMM(CP), RPEQ

Deswik Australia