OPTIMISATION OF RESOURCE EXTRACTION THROUGH APPLICATION OF GRADE ENGINEERING

CMIC Toronto February 2013 www.crcORE.org.au

Challenges for the Minerals Industry

Mining is getting deeper, grades are decreasing and material movement continues to rise

This is resulting in significant decreases in unit metal productivity on many mine sites

Falling unit metal productivity has been masked by high metal prices

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Issues Like Declining Grades For Au Mining

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(Robinson, 2012)

Increasing Energy Intensity

Capital Intensity

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Buildings & Structures (LHS) Plant & Machinery (LHS) Capital Intensity (RHS)

Australian Bureau of Statistics 2011, Private New Capital Expenditure and Expected Expenditure, Australia, Sep 2011, ABS, Cat no: 5625.0, Canberra.

Value From Productivity vs. Price

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Australian Bureau of Statistics 2011, Experimental Estimates of Industry Multifactor Productivity, 2010-11, ABS, Cat no: 5625.0.55.002, Canberra.

250% Increase in Value 23% Increase in Volume

Multi-Factor Productivity

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Topp et al. (2008) ABS (2011)

It now takes 40% more inputs to generate a single unit of mineral product

Australian Bureau of Statistics 2011, Experimental Estimates of Industry Multifactor Productivity, 2010-11, ABS, Cat no: 5625.0.55.002, Canberra.

The efficiency in which capital, labour, materials, services, and energy

are utilised to generate a unit of product

Comparative Productivity Trends

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Investment Pipeline

>$200b invested $80b in mining

Compressed project timelines and risk profiles often prohibit new technology adoption

Addressing Industry Needs

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Rapid and Cheap Characterisation Methods

Faster Reserve Modelling and Mine Planning Tools

Process Less Waste with Flexible yet Simple Circuits

A Collaborative Effort

The Commonwealth Government and the mining industry have realised the risks of declining ore grades and rising energy costs.

Through CRC ORE they are investing in new technologies that will maintain the viability of mines beyond periods of high commodity prices.

CRC Program has been operating for 21 years with competitive funding grants for all major industries:

Manufacturing, medical, IT, finance, mining and agriculture…

Program was developed to solve major challenges of strategic national importance: Industry driven (demand pull) Commitment to create commercially sustainable outcomes

Since the program commenced in 1991 the government has committed A$3.4 billion of funds:

There are currently 37 CRC’s in operation

Australian Commonwealth Government Co-operative Research Centre (CRC) Program

CRC ORE Links to Other Research Initiatives

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CRC ORE has direct links to other major research initiatives and centres of expertise.

These include the AMIRA P9 mineral processing and P843A geometallurgy projects

Aim at all times is to integrate relevant outcomes of these projects into resource optimisation

This brings diverse expertise and deep sector knowledge into CRC ORE’s activities

CRC ORE Links to Commercial Support

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CRC ORE participants also include a number of well established service providers to the minerals industry

These commercial groups support CRC ORE’s research programs and consulting activities, and assist with technology transfer

The aim of CRC ORE is provision of commercial mechanisms for industry to access outcomes

Research Programmes

P1 • Characterise ore bodies for coarse liberation

P2 • Design new flexible extraction options

P3 • Value the changed economics of the ore body

Large integrated case studies demonstrate the value of a systems approach to mineral extraction.

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Reversing the Trend with Grade EngineeringTM

Industry has recognised the challenges of decreasing grade and is looking to implement significant change

CRC ORE is working with industry to apply systems based analysis to increase effective feed grades

Result is emerging integrated operational solutions approach referred to as Grade EngineeringTM

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Grade Engineering Exploits Coarse Liberation

(Robinson, 2012)

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Differential Blasting

Available Grade Engineering Solutions

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Differential blast design to maximize size by size grade response

Mining Solutions

Gravity and dense media separation at coarse particle size

Sensor based sorting for particle stream and belt based application

SAG/AG mill rejection of pebbles based on grade response

Processing Solutions

Increasing the size of mineable reserves - convert low grade into upgraded feed

Size by size screening for feed upgrade and early waste rejection

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Driven by CRC ORE Site Based Project Portfolio

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BHP Billiton Mnt Whaleback

Newcrest Telfer

Newcrest Cadia Anglo American Mogalakwena

Phase 1 Site Projects

Phase 2 Site Projects

Anglo American Pebble

BHP Billiton Spence

BHP Billiton Escondida

Anglo American Los Bronces

Anglo American Batopele

Xstrata Frieda River

Xstrata Mount Isa

BHP Billiton Olympic Dam

Where Major Implementation Challenges Remain

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Circuit design that is aggressively conservative Flexible circuits based on grade engineering models regarded as ‘unproven’ Specific role and value of belt or particle based ore sorting remains unclear

Load & Haul

Drill & Blast

CrusherStockpile

Block model

Plant stockpile

AG mills

Ball millsFlotation

cells

Flotation

Concentrate

Full Reporting of:Energy, Water,

Emissions and Costs..

Silo based simulation and optimisation tools

Current process simulation tools don’t easily integrate and give system solutions IES being developed through CRC ORE is designed to help overcome this challenge

Cultural resistance and change management

Optimising large mining operations as a single value system challenges culture Changing a generation of ‘going large’ thinking will require top-down leadership

Summary - Addressing Industry Challenges

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Declining grades and cut-offs have driven need for higher throughput with larger Capex and Opex to service this trend

Companies increasingly see the need to counter this through a more systems-based approach to maximizing value and manipulating feed grades

CRC ORE has been working with the industry to develop an integrated approach to optimising project value – Grade Engineering

OPTIMISATION OF RESOURCE EXTRACTION THROUGH APPLICATION OF GRADE ENGINEERING

22 www.crcORE.org.au