Transforming the Metal Mining Industry€¦ · 3/6/2018 · Vision: Help mines solve their...

through Commercialization

CENTRE FOR EXCELLENCE IN MINING INNOVATION

Transforming the Metal Mining Industry

Creating Value through Innovation

Presented at: Mines and Technology

October 2-4, 2017

Vision: Help mines solve their challenges

by making the future happen, tomorrow.

Mission:

To advance innovations that will help the mining industry to:

find more ore,

mine ore more effectively and safely,

generate more value from mines,

have a more benign impact on the environment and,

a more beneficial impact on communities.

Established 2007, Not for Profit Corporation, Sudbury, Ontario

© CEMI 2017

Centre for Excellence in Mining Innovation

© CEMI 2017

DEEPMINE: Heat & Rock Stress

Reduce Technical Risk

SUSTAINMINE: Environment & Sustainability

Improve Environmental & Social Impact

VALUEMINE: Mine Productivity

Increase Operational Efficiency, NPV & ROI

FINDMINE: Exploration

Increase Discovery Rate at Lower Cost

BIZMINE: Mining Business

Business Cases & Commercialization Services

5 Strategic Themes: Targeted Approach

Reduce the Cost & Risk of Innovation

© CEMI 2017


Research New Knowledge

Research

Basic Idea

1

Concept

Development

2

Proof of

Concept

3

Process

Validation

in lab/pilot

4

Production

Process

Validated

5

Process

Capability

Validated

6

Capability,

Economics

Validated

7

Demonstration Implementation Commercialization

Range of

Parts

Validated

8

Market Ready

9

Technology Readiness

Levels (TRLs) CEMI

INNOVATION =

Research + Demonstration + Implementation

Commercialization &

Innovation New Business

The Mining Innovation Niche

VALUEMINE: Mine Productivity

Increase Operational Efficiency, NPV & ROI

DEEPMINE: Heat and Rock Stress

Reduce Technical Risk

FINDMINE: Exploration

Increase Discovery Rate at Lower Cost

SUSTAINMINE: Environment & Sustainability

Reduce Mine Waste Impact, Enable Remote Mines

BIZMINE: Commercialization Services

Deliver Business Case Analysis

© CEMI 2017

Mine Productivity

below 2.5km

$35 million Program

5 Strategic Themes: Targeted Innovation

Step-change Innovation: target 200-300% improvement.

Reduce the Cost & Risk of Innovation

24 active

projects

76 Network

members

$35 million

private & public funds

Ultra-Deep Mining Network

Mine Productivity in extreme conditions

- High Temperature & High Rock Stress

Conditions in mines all around the world,

typical at 2.5km depth in Sudbury

Help industry adopt innovation, deliver

commercially viable R&D Results

Accelerate Deployment of Proven

Innovative Techniques & Technologies

© CEMI 2017

Business-driven Project Selection Criteria

Impact of Innovation on Mining

Tomorrow

IMPROVE

ROI

YEARS

Today

Pre

-pro

du

cti

on

an

d p

rod

ucti

on

Cash

DECREASE

INVESTMENT

ACCELERATE REVENUE

© CEMI 2017

NPV


The Productivity Agenda

CEMI Priorities: Productivity, Energy, People, Environment

Productivity: Double Advance Rates & Production Rates

Energy: Half Fleet Demand for Vent/Cooling

People: Half Maintenance Cost & Operating Cost

Environment: Half Time to Permit & Social License

Global, Industry-wide Issues: Priorities

1) Decline in Productivity: 10-12%/yr

2) Operating Cost Increase: 10-15%/yr

3) Capex Over-runs: 20 - 40% common

4) Delay of Projects: $25-30Bn

for Social-enviro Issues

Increase Ore Flow Rate

at Lower Cost

CEMI: Targeted Approach

CLAREO: Industry Headwinds (P. Bryant & Mark Cutifani)

Since 2005…

Reduce Largest Costs;

Labour & Energy

Reduce Capital Cost

Improve Assurance of

Environmental Performance






at Lower Cost



Since 2005…


Labour & Energy

Reduce Capital Cost

Current

Development Rates

$0

Pre

-pro

du

cti

on

an

d p

rod

uc

tio

n C

as

h F

low

YEARS

Faster Development:

Earlier Access to Ore

Access ore sooner – increase NPV

CEMI’s Rapid Development Project

LOM net income of $3bn;

LOM = 7 yrs;

Discount rate 15%:

Project Value increases $65M

for every year that production

starts earlier. ($180,000/day)

Investment Cost = $5M to innovate

Payback Period = $5/65 x 365 = 28 days (1yr.)

© CEMI 2017

Reduce Pre-production Capital Cost

<3m/day

<8m/day<4m/day

© CEMI 2017

1960 1970 1980 1990 2000 2010 2020

35

30

25

20

15

10

5

0

Record advance rates

Grand Duc Tunnel

Average >23m/day

Focused on equipment efficiency,

not the effectiveness of the system.

Reasons:

Need for Increased Safety

Increased Ground Control

Larger scale of operations

Reverse the Decline in Drill-blast Advance Rates

Declining performance with the biggest, most

powerful, most efficient, most sophisticated

equipment than any time in history.


Reduce Pre-production Capital Cost

Muck

Ground

Support

Load

Blast

Drill

Productivity - utilization of the face:

use a temporary canopy to allow

concurrent activities in the heading.

Current Practice

Sequential Activities

Muck

Ground

SupportDrill/Load

Blast

CANOPY

CEMI proposed

Concurrent Activities

© CEMI 2017

Stage 1

Stage 2


Primary Objective: Reduce Drift Cycle: Increase Advance >7m/day

Phase 1a - Canopy System; physical barrier to rock-related hazards.

Phase 1b - Allow concurrent activities; reduce face cycle ~ 8 hrs.

Phase 2 - Rapid transport of rock; reduce muck cycle ~ 2 hrs. (300t/hr)

3-Canopy System for Rapid AdvanceReduce Development Cycle Time: from >17 hours to <10.5-hours

Ultra-Deep Mining Network

Improve Productivity & Safety

© CEMI 2017

Discrete Event Simulations

0

1

2

3

4

5

6H

ou

rs

5m x 5m Heading with Emulsion - Process Time Comparison

No Canopy with Explosives Loader and LHD Canopy with Explosives Loader and LHD

Canopy with Face Machine and LHD Canopy with Face Machine and Continuous Mucking

No Canopy + Expl. Loader + LHD

Canopy + Jumbo Loader + LHD Canopy + Jumbo Loader + Cont. Mucker

Canopy + Expl. Loader + LHD

Critical Path Reductions

Target #1 = Bolting


Discrete Event Simulations

0

1

2

3

4

5

6H

ou

rs

5m x 5m Heading with Emulsion - Process Time Comparison

No Canopy with Explosives Loader and LHD Canopy with Explosives Loader and LHD

Canopy with Face Machine and LHD Canopy with Face Machine and Continuous Mucking

No Canopy + Expl. Loader + LHD

Canopy + Jumbo Loader + LHD Canopy + Jumbo Loader + Cont. Mucker

Canopy + Expl. Loader + LHD

Critical Path Reductions

Target #1 = Bolting

Target #2 = Mucking

Saved

> 6.6 hrs.

Canopy

>4.8 hrs of Bolting

Time Eliminated.

Continuous Equip.

> 1.8 hrs of Loading

Time Eliminated


Reduce Development Cycle Time: from >17 hours to <10.5-hours

0

1

2

3

4

5

6

7

8

9

10

Standard Dev (Anfo) Standard Dev (Emulsion) Canopy Face Machine Continuous Mucking

Process

Me

ters

pe

r D

ay

Meters Developed per Day - 4m Round Length

8.5

6.56.5

4.9

CEMI 2014 Target: > 7m/day 7.2

5.4

JUMBO

CHARGING

CONT.

MUCKINGCANOPYBASE

3-boom jumbo

Cont. Loader &

Transport System

5.6

3.0

For a 3km drive, saving 217 days/km,

gains 22 months & adds $120M to NPV

3m/day to 8.5m/day saves 217d/km ~ adds $40M/km of drive

© CEMI 2017

CEMI’s Rapid Development ProjectDiscrete Event Simulations

Reduce Development Cycle Time: from >17 hours to <10.5-hours






at Lower Cost



Since 2005…


Labour & Energy

Reduce Capital Cost

2) Mitigate heat & humidity

Battery-driven equipment

Individual proximity warning

- flashing helmet brim

4) PPE & Cooling:

Jannatec

Warning of proximity to

quiet electric equipment

in dark, confined spaces.

Reduce largest costs; Labour & Energy

1) Improve Conventional Systems: BESTECH (VoD)

Maestro (Vent. Sensors)

3) Introduce Cooling:

a) Hydraulic Air Compressor: Fresh Aircompressed

b) Liquid Air Systems

© CEMI 2017






at Lower Cost



Since 2005…


Labour & Energy

Reduce Capital Cost

Fuel Effectiveness:

20% fuel moves ore;

80% fuel moves the LHD

Increase Production Rate - move ore faster & more

effectively

CEMI Innovation Targets:

1) Design Energy- & Time-effective Systems

then 2) then Electrification & Automation

LHD Time-effectiveness:

Haul time >> Load/Dump time

< 10% time-effective

at moving ore/rock

© CEMI 2017

LHD Overall Effectiveness = 2%

Automation of Equipment: necessary & progressing

Electrification of Equipment: essential & urgent

all-electric mine - 1990’s - umbilical cables

LHD = 3 x Ore Load

Trip ratio = 6:1

Increase Ore Flow Rate at Lower Cost

Business-driven Project Selection Criteria

Tomorrow

IMPROVE

ROI

YEARS

Today

Pre

-pro

du

cti

on

an

d p

rod

ucti

on

Cash

DECREASE

INVESTMENT

ACCELERATE REVENUE

NPVStep-change Innovation: target 200-300% improvement.

Single-heading Access

Low-cost Cooling

Double Advance Rates

Top-down Mining

Double Production Rates

Half Energy Consumption

Half Labour Cost

Ore Production Process

Impact of Innovation on Mining Process





4) Delay of Projects: $25-30Bn

for Social-enviro Issues


at Lower Cost



Since 2005…


Labour & Energy

Reduce Capital Cost

Improve Assurance of

Environmental Performance

Resourceful People in the Resource Industry

CEMI935 Ramsey Lake Rd

Sudbury, Ontario

P3E 2C6

www.cemi.ca

Team of Mining Engineers, Geologists and Business Professionals

National & Global Reach

Transforming the Metal Mining Industry€¦ · 3/6/2018 · Vision: Help mines solve their...

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