Bildplatshållare Mine cost drivers - Investerare -...
Transcript of Bildplatshållare Mine cost drivers - Investerare -...
![Page 1: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/1.jpg)
Bildplatshållare
Capital Markets DayNovember 2008
Mine cost drivers
Jan MoströmPresident BA Mines
![Page 2: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/2.jpg)
Mining
DRILLINGDEPOSIT EVALUATIONFEASIBILITY STUDY
LOADINGHAULAGEHOISTING
ROCK SUPPORTCHARGINGBLASTING
LEACHING
FLOTATIONGRAVIMETRY
WASTE ROCK
ORE RESERV
ORE
GRINDINGCRUSHING
TAILINGS
DISPOSAL(TAILING DAMS, DUMPS AND MINED OUT STOPES
CONCENTRATES SMELTERS
METALS
SX EWCRUSHING HEAP LEACHINGDUMP LEACHING
MINE
MILL
LEACH/SX EW
![Page 3: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/3.jpg)
Two main types of mines
Open pit miningRoughly ten times lower in cost per ton compared to under groundminingSlope stability decide waste/ore ratioWith low grades a high production rate is neededBig equipment for high volume production
Under ground miningUnder ground mines commonly have lower production rateIncreased cost to infrastructure and ground supportMore up front development workOften smaller ore bodies but with higher grades
![Page 4: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/4.jpg)
Mine design
Most important factors– Knowledge of ore body and rock conditions– Efficient mine infrastructure– From basic design establish plans in long and short term for mining out the ore reserve
Mining method– Method selection crucial– Many criteria for method selection– Shape of ore body and rock quality– Best suited scale of equipment and stopes– Amount of ground support needed– Control of ore recovery and waste dilution
Infrastructure– Type of hauling and hoisting– Ventilation and water handling– Size and conditions of drifts and ramps– Possibility for automation
![Page 5: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/5.jpg)
Under ground mining
![Page 6: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/6.jpg)
Under ground mine infrastructure
![Page 7: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/7.jpg)
Under ground mining methods– Room and pillar mining
Common for flat ore bodiesHigh production and low costGood productivityOre lost in pillars
![Page 8: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/8.jpg)
Under ground mining methods– Open stoping
Common for steeply dipping ore bodiesCan be deepGood production rateModerate to high costHigher dilutionHigh capital cost
![Page 9: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/9.jpg)
Under ground mining methods– Block caving
Common for massive oresCaveable rockCan be deepHigh production Low costVery high capital costNo selectivityHigh dilutionSurface subsidence
![Page 10: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/10.jpg)
Under ground mining methods– Cut and fill mining
Common for steeply dipping irregular ore bodiesHigher grades neededModerate productionHigher costMore ground support with depthGood recovery and controlled dilutionFlexible method
![Page 11: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/11.jpg)
Open pit mining
![Page 12: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/12.jpg)
Open pit sequencing – push backs
1234
56
78
9
Production flow
PB 1
PB 2
PB 3
147
2
11
68
10
1011
1312
1412
1720
23
18
1614
1210
8
Solutionpush backs
Critical phase
Critical phase2
1
34567
89
Economy cash flow
![Page 13: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/13.jpg)
The Aitik Mine 1968– 2 million tonnes per year
![Page 14: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/14.jpg)
The Aitik Mine early 70’s– 6 million tonnes per year
![Page 15: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/15.jpg)
Mill & workshop
The Aitik Mine 2000– 18 million tonnes per year
![Page 16: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/16.jpg)
Crusher
WorkshopMill
Railwayterminal
Conveyor belts
The Aitik Mine 2010– 36 million tonnes per year
![Page 17: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/17.jpg)
Open pit mining cost distribution– industry average
Mining 50%– Drilling 5%– Blasting 6%– Digging 9%– Hauling 30%
Milling 50%– Grinding 30%– Flotation 10%– Dewatering 10%
![Page 18: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/18.jpg)
Mill
DRILLINGDEPOSIT EVALUATIONFEASIBILITY STUDY
LOADINGHAULAGEHOISTING
ROCK SUPPORTCHARGINGBLASTING
LEACHING
FLOTATIONGRAVIMETRY
WASTE ROCK
ORE RESERV
ORE
GRINDINGCRUSHING
TAILINGS
DISPOSAL(TAILING DAMS, DUMPS AND MINED OUT STOPES
CONCENTRATES SMELTERS
METALS
SX EWCRUSHING HEAP LEACHINGDUMP LEACHING
MINE
MILL
LEACH/SX EW
![Page 19: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/19.jpg)
About the mill process
Grinding is the major part in milling costs The choice of grinding technology is crucial, Boliden type of autogenousgrinding (AG) has proved to be the most cost efficientSemi autogenous grinding (SAG) is by far the most used technologyFlotation separation, based on surface chemistry, is the outmost important technology to separate base metal minerals from waste rock – products are called concentratesThe flotation process is adopted to the specific ore type when it comes to equipment, circuit lay outs and reagent regimeSince flotation is a wet process the concentrates must be dewatered, dewatering technology can vary depending on proprieties of the concentrate and customer demandLeaching process is used solely to recover the gold/silver content that not reports to concentrates
![Page 20: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/20.jpg)
Millsgrinding
Water addition
Filtersdewatering
Thickeners(dewatering)
Flotation Circuitseparation
Crusher
Mill (Ore Dressing Plant, Concentrator)
![Page 21: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/21.jpg)
Boliden ABEnhet/verksamhet 2008-10-28
Fragmentation, crushing and grinding
![Page 22: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/22.jpg)
Boliden ABEnhet/verksamhet 2008-10-28
Communition – industry average cost distribution
Blasting 1%
Coarse crushing 2%
Fine crushing 20%
Grinding 77%
![Page 23: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/23.jpg)
Boliden ABEnhet/verksamhet 2008-10-28
Grinding mill
![Page 24: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/24.jpg)
Waste
Ore (pulp)Chemicals
Air
Flotation cells
Concentrate
![Page 25: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/25.jpg)
Dewatering - thickeners
![Page 26: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/26.jpg)
Boliden ABEnhet/verksamhet 2008-10-28
Dewatering of Concentrates – pressure filter
Fully automaticCapacity up to 250 t/h
![Page 27: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/27.jpg)
Mill and leaching plant at Boliden Area Operations
![Page 28: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/28.jpg)
Tailings and waste rock disposal
Tailing PondWaste Rock Dumps
![Page 29: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/29.jpg)
Stekenjokk – reclaimed minesite
![Page 30: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/30.jpg)
Heap Leaching SX EW
DRILLINGDEPOSIT EVALUATIONFEASIBILITY STUDY
LOADINGHAULAGEHOISTING
ROCK SUPPORTCHARGINGBLASTING
LEACHING
FLOTATIONGRAVIMETRY
WASTE ROCK
ORE RESERV
ORE
GRINDINGCRUSHING
TAILINGS
DISPOSAL(TAILING DAMS, DUMPS AND MINED OUT STOPES
CONCENTRATES SMELTERS
METALS
SX EWCRUSHING HEAP LEACHINGDUMP LEACHING
MINE
MILL
LEACH/SX EW
![Page 31: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/31.jpg)
Typical porphyry copper ore
Heap Leach SX EW Ore
Flotation Ore
![Page 32: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/32.jpg)
Heap leaching SX EW
The process is normally applicable to oxide minerals (the upper weathered zone of the ore bodies)
Some 20% of copper production is coming from HL operations
Some applications on zinc and nickel have recently started
The heap leach process is now in many cases enhanced by use of bioleaching in order to recover primary minerals
![Page 33: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/33.jpg)
Heap leach process – copper
![Page 34: Bildplatshållare Mine cost drivers - Investerare - Bolideninvestors.boliden.com/afw/files/press/boliden/Kokkola-2008-10-1... · Bildplatshållare Capital Markets Day ... November](https://reader031.fdocuments.us/reader031/viewer/2022030508/5ab7b3077f8b9ab62f8bac78/html5/thumbnails/34.jpg)
Heap leach operation