Project Optimisation | Nov 2012| 2
• Economic risk mitigation
• More sophisticated prediction & scheduling
• Potential to integrate engineering design steps into a coherent outcome
• More sophistication in ore characterisation and deposit knowledge is required on a greater scale
• Ability to justify and manage projects on a much bigger scale with a high capital risk and a longer time period for the start of profit return
• Ability for more accurate decision making in a challenging business environment
The industry is changing, we must change with it
A systems approach in design across the mining process is now considered the next generation of engineering
Project Optimisation | Nov 2012| 3
Multifactor Productivity: The efficiency in which capital, labour, materials, services, and energy are utilised to generate a unit of product
The industry business environment is now more challenging where profit margins are being squeezed
Australian Bureau of Statistics 2011, Experimental Estimates of Industry Multifactor Productivity, 2010-11, ABS, Cat no: 5625.0.55.002, Canberra.
5060708090
100110
Inde
xed
2000
-01
= 10
0
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.
Project Optimisation | Nov 2012| 4
Project optimisation can mean the difference between success and failure in this challenging environment
NPV makes the first few years critical to successful operation
Plant design capacity
Fast run up to full
capacity Slow run up to partial capacity
Project Optimisation | Nov 2012| 5
GeM Model
Economic Models
LS
LC
ROM
Leach
Crushers ProcessMine
LS
LC
ROM
Leach
Crushers ProcessMineFamily of Solutions
Data Collection
Mining Sequences
Mine Plan
Feedback to improve model
Constraints Constraints
LS
LC
ROM
Leach
Crushers ProcessMine
LS
LC
ROM
Leach
Crushers ProcessMine
LS
LC
ROM
Leach
Crushers ProcessMine
LS
LC
ROM
Leach
Crushers ProcessMine
Slope Models
1 1.5 2 2.5 3 3.5 4
x 108
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
X
Probability Distribut ion of Expected Cash Flow @ PP-1
2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6
x 109
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
x
F(x)
Empirical CDF
Cash flow stream
Capit
alInv
estm
e nt
Curre
ntM
in eP r
oj ect
V alu e
Production Period
Milli
onof
$
V
I
0t 1t 2t 3t 4t
()711tiiitWACCCFR==+
7t5t 6t
1 1. 5 2 2.5
x 108
0
0.02
0.04
0.06
0.08
0.1
0.12
X
Probability Distribution of Expected Cash Flow @ Last PP
Simulation
Confidence Model
0 5 10 15 20 25 30-1
0
1
2
3
4
5
6
7x 10
8 Stochastic Expected Cash Flow
Production Period
Cas
f Flo
w
1 1.5 2 2.5 3 3.5 4
x 108
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
X
Probability Distribution of Expected Cash Flow @ PP-1
1.5 2 2.5 3 3.5 4 4.5
x 108
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
X
Probability Distribution of Expected Cash Flow @ PP-2
1 1.5 2 2.5
x 108
0
0.02
0.04
0.06
0.08
0.1
0.12
X
Probability Distribution of Expected Cash Flow @ Last PP
Probability of cash flow can be assessed for each year.
Project Optimisation – Intelligent Engineering
Data transfer technology now makes this possible early in the design process
• All aspects of the mining process can now be designed to a level of sophistication where the outputs can be used as inputs into other engineering operations
• All engineering operations can then be optimised together
• The key is to do this in an iterative loop several times to ensure overall operational efficiency
Project Optimisation | Nov 2012| 6
Geological Assays Petrophysical Equotip Comminution
Multi-disciplinary data collection
Class Group
Copper Domain
Throughput Domain
Recovery Domain
Group C Group B
Group B Group C
Group A Group D
Group A Group D
Group C Group A
Group D Group A
Geometallurgical domains in block model
Sophisticated data collection is the key (Geometallurgy)
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Process Attribute Ore Domain 1 Ore Domain 2 Ore Domain 3 Ore Domain 4Ore ValueValuable metal 1 (Au) grade 0.6g/t - - 1.1g/tValuable metal 2 (Cu) grade 1.20% - - 0.50%Valuable metal 3 (Ag) grade - 2.2g/t 1.3g/t -Valuable metal 3 (Mo) grade - 0.99% 0.47% -Valuable metal x (?) gradePenalty elements Yes (High As content) No No Yes (Low As content )
Ore CharatersiationMineral liberation size 75 micron 30 mciron 160 micron 212 micronProperty deportment siganture Yes (Upgrade factor 2.1) No No Yes (Upgrade factor 1.6)Ore sorting feasible Yes No No NoEnergetic conditioning feasible No No No NoImpact breakage energy consumption High High Very High mediumLow energy abrasion energy consumption High High High LowBed breakage energy consumption Medium Medium Medium HighGrinding Energy consumption High Medium High LowFine grinding energy consumption - Medium High -
Separation ProcessFlotation recovery - High Medium -Flotation kinetics - Medium Medium -Leaching recovery Medium - - LowLeaching kinetics Medium - - LowGravity Au recovery Yes - - NoPressure oxidisation required for Au recovery No - - Yes
Engineering Design Request Floation circuit? - Yes Yes -Concetrate regrind circuit? - Yes No -Leach dump? No - - YesLeach heap? Yes - - NoLeach tank? No No No NoCiL carbon and leach circuit? Yes - - NoOre sorting technology? Yes - - NoEnergetic conditioning technology? No No No NoCrushing? Yes Yes Yes YesGrinding? No Yes Yes NoHPGR? No No Yes NoFine grinding? No Yes No No
Ore Domain 2 Ore Domain 4 Ore Domain 7
Engineering Recommendations for Project Optimisation
So what is the most cost effective option?
Project Optimisation | Nov 2012| 7
Project optimisation for small and large studies
pit design, production plan & scheduledesign criteria, flowsheet, mass balance etc
block modelgeomet data (mill, float, leach, geomechanical test data)
option and scenarioanalysis
AMDAD/Ausenco LiteO Whittle/Ausenco EO
PFS
FS
best possible optimised outcome
Ausenco now has access to this expertise
Project Optimisation | Nov 2012| 8
Ausenco Project Optimisation
• When industry is in a growth cycleo How can we optimise design, construction and production to
help your business make more money most efficiently
• When industry is in a contraction cycleo How can we optimise design, construction and production to
help your business to survive in a challenging environment
• Flexible decisions can now be made in a defendable form, fit for purpose to the macro business environment
Engineering expertise merges with corporate decision making
Project Optimisation | Nov 2012| 9
Thank you for your time
Dr Simon Michaux
Senior Process Engineer (Geometallurgy)
Technical Solutions
Minerals & Metals
Dr Andrew Lewis
Consultant (Optimisation)
Technical Solutions
Minerals & Metals
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