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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (38465)	6/11/2009 8:07:40 PM
From: LoneClone	Read Replies (1) \| Respond to of 195353

Mine optimization can lead to big savings on the bottom line Global engineering consultancy, Coffey Mining, reckons mine optimization can save a mining company hundreds of millions of dollars over an operation's life. Author: Lawrence Williams Posted: Wednesday , 10 Jun 2009 LONDON - mineweb.net In looking at mine planning optimisation, Coffey Mining underground mining expert Tim Horsley reckons to stop work when he can't save a client a substantial amount of money in an hour of mine optimisation analysis. Mr Horsley, Mining Manager at Coffey , says that mine optimisation doesn't need to take a lot of time or be an expensive exercise, but has very real potential to add significant value, sometimes in the order of hundreds of millions of dollars over the life of an operation. However, such gains can only be made by looking at the big picture of the entire operational process. "Mine optimisation should be approached from a broad perspective, as it is rarely the case that parts of the process can be optimised in isolation," he said. "If you specifically focus on one part of the value chain there is a risk of transferring costs or reducing revenue elsewhere." Mr Horsley believes in a balanced approach to mine planning, emphasising that it is vital to work with understanding of the synergies that exist between different areas within a mine project. "Synergies between the processes can add or destroy value and so it is vital that the project process is assessed from the in-situ resource through to cash revenue generation. There is a significant amount of value to be realised by being able to model and understand these synergies, particularly with respect to the definition of ‘ore' locally within a mine and how this impacts on productivities, costs and the downstream processes," he said. "This is particularly important in an underground mine where the orebody geometry can have a significant impact on the mine layout and production efficiency. For example, having a more flexible approach to cut-off grade can allow for more stable stopes that are easier to drill and blast, resulting in higher production capacity and lower costs." Mr Horsley said that by looking at both the mining method and the equipment used from a broader perspective, losses in the chain can be more clearly identified and potential improvements made from there. PLANNING FOR THE PRICE CYCLE Although the current resources downturn has meant that many mine operators are looking to make savings wherever they can, Mr Horsley believes that mine optimisation is such an important process that it should be prioritised by organisations throughout the price cycle. "The key to a mine's longer term viability is to maintain a continuous focus on optimisation in good times as well as bad," he said. "A thorough study can provide compelling ways of streamlining a mine's current operations and would provide a life-of-mine optimisation model which can be periodically updated, and optimisations re-run with minimal effort. "Keeping such a model current provides a valuable tool for scenario analysis planning and allows a mine operator to react very quickly to changing circumstances." According to Norman Lock, Coffey Mining's Regional Manager - Canada, it is the cashed up companies that often neglect to pay attention to optimising value and keeping costs as low as possible in good times. "The first things to go in a downturn are exploration and drilling, and so it is the organisations that have planned for the cyclical nature of the industry who will survive and see the cycle out in relatively good shape. "Just as no battlefield general would go into a fight without a backup plan, planning for a downturn and optimising your operations so you are running to peak efficiency in good times as well as bad is the most prudent management strategy."