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    D I G G I N G

    D E E P E R DECEM

    BER2002

    1

    Eden Paki is the Drill & Blast Supt at Newcrest

    Mining Limiteds Cadia Valley Operations near

    Orange in NSW where the current open pit

    mining rate is around 80 Mtpa. Eden already

    had substantial mining experience before moving

    to Cadia, including 7 years D&B work for Roche

    at KCGMs Superpit in Kalgoorlie followed by

    working with Macmahon on D&B at the Mt

    Todd Gold Mine in the Nor thern Territory.

    Despite his more than full time job at Cadia,

    Eden has also been acting as a sounding board

    for Newcrests Telfer Project Feas Study open

    pit mining team in the areas of assessing D&B

    requirements for the project and how best to

    PRACTICAL ADVICE WHERE ITS

    CRUCIALLY NEEDED, AT THE FACECourtesy of one of AMCs Directors, Perth-based Lawrie Gillett, who cannot recommend

    Eden Pakis work highly enough

    satisfy those requirements. In the process of

    helping the Telfer team, Eden has offered

    guidelines based on his experience and these

    are summarised below. They include formulae

    which have been developed by others (apologies

    in advance to authors of the formulae for not

    being able to acknowledge them!!!) and these

    formulae have gained good acceptance amongst

    open pit mining D&B practitioners. Eden asks

    that the reader bear in mind that the guidelines

    were put together for practical, operations

    based in-house assistance to his colleagues and,as such, do not pretend to be an exhaustive or

    scientifically rigorous treatment of the subject.

    Eden of course points out that there are always

    site specifics which must be taken into account

    in any mining determination, but AMC suggests

    that Edens guidelines provide an excellent start

    point. AMC has also found Edens guidelines

    to be consistent with its discussions with drill

    manufacturers and suppliers, blast hole drilling

    contractors and drill bit suppliers.

    We thank Eden for his cooperation in agreeing

    to provide his guidelines to the broader mining

    community through Digging Deeper.

    Continued page 2

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    As a base, I tend to favour the material size

    required to allow for productive mining by the

    selective loading toolsgiven that the hole

    diameter determines the burden and spacing.

    Until you can substantiate the mine to mill

    process at the mine, then ultimately this should

    not determine the drilling and blasting practices

    (dont pour money into the process until you

    can quantify and accurately measure it). Ground

    hardness can also affect the hole diameter

    selection process, but this can be addressed

    through powder factors. Critical diameter for

    explosives can also affect the hole diameter

    but as long as you are looking at larger than

    76mm blast holes, then this shouldnt be an issue.

    Blast Size I always tend to look at going for

    the largest achievable blast possible. This means

    a reduction in infill drilling, reduction in initiation

    costs, reduction in blasting frequency, which

    means a reduction in blast affected production

    delays. Altogether, a reduction in cost. When

    talking blast size, I refer to the overall volume of

    the blast. Vibration and timing (scheduling) and

    physical restrictions such as the time taken to

    load, tie-in and fire the blast play a more limiting

    factor on the size blasts that I elect to use.

    Blast Width I find this to be more important

    than overall blast size. I have a tendency to look

    at maximising the blast width, while minimising

    the blast depth. Of course this is constrained

    by the bench and mine plan, but where the real

    estate is available to do so, I would elect to go

    with 68 row shots that go on for as far as

    possible. When looking at minimising the blast

    depth, I refer to minimising to around 6 rows in

    depthnot fewer. This provides excellent

    displacement (if that is the desired result),

    delivering excellent muckpile looseness.

    Fragmentation is also maintained which means

    that productivity is maximised.

    2

    EDENS RULES OF THUMB

    There are a number of combinations that can

    be used for Burden to Spacing ratios etc,

    especially when blasting in unfamiliar terr itory.

    When I encounter this, it is usually prudent to

    go back to basics and apply a few well accepted

    principles orrules of thumb. You will generally

    find that most rules of thumb, require either

    the hole diameter or burden to calculate what

    other parameters will fit into the puzzle. The

    following are fairly common rules of thumb

    used throughout the industry when designing

    blast patterns.

    Burden = 25 to 35 hole diameters.

    Spacing = 1.2 to 1.5 burdens (for largediameters e.g. Greater than 140mm) or around

    1.5 to 1.8 for smaller diameters.

    Stemming = 0.7 to 1.3 burdens. Keep in mind

    that if you select a larger bench height, the

    stemming column could have an impact on the

    diggers productivity, especially if you are looking

    at digging in flitches. For instance, if you were

    to dig a 12m bench in three (3) flitches, then

    the loading tool would be digging through the

    stemming column. This is the area where you

    are more likely to encounter oversize, thereforeproductivity would be much lower than the

    other two (2) flitches.

    Bench Height 4= 0 to 50 hole diameters.

    Obviously this can usually change in accordance

    with the bench height requirements of the

    loading tools.

    Subdrill = 8 hole diameters. This can be

    increased for the face rows to around 10 to

    12 hole diameters.

    Powder Factors Governed by budget,

    mine to mill processes and, to a lesser extent,

    ground hardness.

    Hole Diameters Essentially governed by the

    required average material size. There are many

    different perceptions on what determines the

    hole diameter, but I personally select a hole

    diameter based on the size of the loading

    equipment, and any other material constraints

    placed upon me by the milling process (finer

    material means higher throughput). You must

    find the middle ground between the two

    at which point the higher cost of increased

    powder factors, or drill & blast costs outweigh

    the savings received from the milling process.

    Blast Depth Blast depth can get you into

    trouble, both through productivity issues and

    through the cost required to minimise the effects

    on productivity. I have trialed various blast depths

    over time, trying various techniques such asincreased powder factors in the back rows, or

    altered burdens and spacings, adding delays to

    give a second front etc , however have had mixed

    success in my effor ts. Essentially, the largest

    impact of blast depth is muckpile looseness.

    Higher powder factors can be introduced to

    ensure that fragmentation is maintained in the

    back rows of the blast, however it is very difficult

    to provide a free face that allows sufficient

    displacement to give productive dig rates.

    Blast patterns that are greater than 8 rows,

    are generally tighter to dig on the back few

    rows. The lack of a free face in front, means that

    the material is choked therefore becomes tighter

    to dig. Additional heave is also a result which,

    although providing some relief, is generally

    confined to the upper reaches of the muckpile,

    and not the lower and middle sections where

    the shovel/excavator bucket spends most of its

    time. The higher face created from the choked

    rows also creates a hazard due to the higher face

    height. Larger rocks, generally encountered in the

    stemming collar are now higher in the diggingface, meaning that cooler packs on face shovels

    become prone to accident damage.

    Choke Firing Related to the above, choke firing

    has its positives and its negatives. Choke firing

    allows for minimal disruptions to the scheduling

    process, as a digging unit does not need to free

    face a blast and walk away. Instead, the digging

    unit can continue digging through the area with

    the choke shot being fired prior to the material

    in front running out. The negative of choke firing

    is muckpile displacement (which is actually apositive for grade control) and looseness

    or lack of. Higher powder factors are generally

    used also, to ensure that fragmentation is

    maintained, as due to the confinement of the

    blast, the energy tends to vent up and outwards.

    This can mean poor fragmentation, especially at

    the toe. Maximising free faces is always the best

    option (productivity wise) however, choke firing

    can be a necessary evilespecially in a gold

    mining environment.

    PRACTICAL ADVICE WHERE ITS CRUCIALLY NEEDED, AT THE FACEContinued from page 1

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    Explosives Density As a general rule, the

    harder the rock, the higher the explosives density.

    You require more shock energy in harder ground.

    For rock with a density of around 2.6 to 2.8, I

    would look at using an explosive with a density of1.2 to 1.3. Further, as I am going to a high density

    explosive, I would look to maximising the usage

    of heavy ANFO based explosives as opposed

    to pumped product, as the heave properties of

    the augered product allows for better muckpile

    looseness.

    Number of blasts per blast day Determined

    by labour. I would recommend blasting no more

    than once per day, with no more that two (2) to

    three (3) shots at a time. Any more and you start

    to have problems relating to preparing the blaston the day (tie-ing in the shot), clearing the pit

    for blasting, firing the shots and clearing the blasts

    after firing. These can be very time consuming

    and could result in a delay for blasting taking up

    to an hour. I would not recommend planning to

    tie in the blast the day before, purely for safety

    reasons (also increases the risk of misfire through

    human interaction or natural events such as wind

    and storm).

    Number of blasts per weekOnce again

    I would look to minimise this. I try to scheduleblasting to a maximum of 3 times per week.

    Any more and you start feeling the effects of

    delays to production caused by blasting, plus the

    strain starts to tell on the blast crew through

    the frequency of tasks such as tie-ing in a shot.

    This means that mistakes tend to creep in, plus

    complacency becomes apparent. It is preferable

    to dedicate whole days to purely charging and

    stemming operations, which also gives the blast

    crew adequate relief between each shot. Misfires

    3

    become a rare event, as opposed to a hazard

    that is dealt with on a regular basis.

    Stemming Size If you are looking at increasing

    the blast hole diameter, I would recommend the

    use of crushed rock for stemming. A rule of

    thumb is that stemming size should be between

    10% and 15% of the hole diameter. Drill cuttings

    used in holes greater than 127mm tend to eject,

    giving minimal confinement. The better

    confinement offered by the crushed rock also

    gives you the opportunity to reduce the

    stemming column, thus improving the overall

    fragmentation.

    The table below is an example of the above rules

    of thumb applied to an example set of project

    parameters.

    You will note that my Burden to Spacing ratio is

    on the low sideI have actually found that

    equilateral patterns give a great result (Burden =

    0.867 of Spacing) however, they do cost a little

    more in the long run. Please also note that I have

    elected some fairly simple pattern sizes. Where

    possible, I would suggest that you err away from

    using dimensions such as 4.1 or 5.9. What tends

    to happen is that operations will look for a

    simpler dimension working in half metre

    increments rather than 0.1 decimals.

    Pulldown is another factor that you must

    consider when selecting a hole diameter. This is

    especially important when drilling rotary (note

    that an 8 hammer is the largest commercial

    hammer on the market todayother larger

    hammers are generally made for specialist

    purposes other than production blasthole

    drilling). The pulldown requirement is usually

    governed by the hole diameter, and the

    compressive strength of the rock being drilled.

    A basic formula to determine the pulldown

    requirements of drilling with rotary is as follows:

    P = (D x C) / 5

    Where P = Required Pulldown, D = Hole

    Diameter in inches and C = The rock uniaxial

    compressive strength in PSI.

    For example, if you were drilling a 251mm hole

    in rock with a UCS of 260 MPa, the following

    would apply:

    251mm = 97/8; 260 MPa = 37,710 PSI

    P = (97/8 x 37,710) / 5

    P = 74,530 lbs

    Using this number to assist you in drill selection

    should go a long way to ensure that you have the

    right drill combination to suit the application.

    Imperative in this is selecting a drill that will

    achieve your desired targets comfortably, unlike

    the mistake made at one project where the drill

    selection was aimed around maximising the

    output of the drill through minimising the cost of

    the initial purchase. Drill manufacturers will state

    that their units are capable of drill hole diameters

    ranging from 165mm to 270mm however, they

    are not recommended to be run under load forextended periods of time. In order to achieve the

    270mm, the engine, pumps and rotary head will

    be under maximum load. The unit is capable of

    achieving this, however you will find that over

    time, in order to sustain this diameter, you are in

    fact drastically reducing the life of the drill and its

    components. Further, you may find that a dr ills

    performance is reduced when operating for long

    periods at the upper ranges of the drills

    capabilities. I cannot provide operating data to

    evidence this view, however it is a qualitative

    observation made from experience.

    The last thing to consider when looking at hole

    diameters, is the size of the drill pipe associated

    with that hole diameter. Drill pipe affects your

    uphole velocity (also bailing or annular velocity)

    which, in turn affects the performance of the

    drilling consumables and the wear characteristics

    of your drill string. A higher uphole velocity,

    created by a smaller annulus will drastically

    increase the wear on your hammers, subs and

    drill rods, however a lower uphole velocity

    may mean that youre not sufficiently lifting

    the drill cuttings out of the blast hole .

    Parameter 187 mm Diameter 251 mm Diameter

    Pattern Burden x Spacing 5.5 x 6.5 6 x 7.5 7.5 x 9 9 x 10.5

    Explosive Density (g/cc) 1.2 1.1 1.2 1.2

    Hole Diameter (mm) 187 187 251 251

    Burden (m) 5.4 6.0 7.5 9.0

    Spacing (m) 6.5 7.5 9.0 10.5

    Burden/Spacing Ratio 1.20 1.25 1.20 1.17

    Bench Height (m) 12.0 12.0 12.0 12.0

    Subdrill Length (m) 1.5 1.5 2.0 2.0Stemming Length (m) 4.5 4.5 4.5 4.5

    Stemming/Diameter Ratio 24.1 24.1 17.9 17.9

    Powder Factor (kg/bcm) 0.70 0.50 0.70 0.50

    Explosive Mass (kg per hole) 297 272 564 564

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    I have worked on 7000 to 8000 feet per minute

    for fresh rock, going for the upper limits if that

    material is also wet and down around 5000 feet

    per minute for softer materials. A formula for

    calculating uphole is as follows:

    V = (Q x 183.33) / (D2 - d2)

    Where V = bailing velocity, Q = compressor

    output in CFM, D = Hole Diameter in inches and

    d in drill pipe diameter in inches.

    For example, if you are selecting a drill with a

    compressor output of 1150cfm, drilling a 251mm

    hole with 8 1/2 drill pipe, the bailing velocity

    would be:

    251mm = 97/8

    V = (1150 x 183.33) / (97/82 - 81/22)

    V = 8,345 ft/min

    You can go to a smaller hole diameter to achieve

    the same result, however you must ensure that

    you have sufficient air capacity on the drill to

    achieve an optimal bailing velocity, e.g. 1,450cfm.

    Last but not least, when considering varying hole

    diameters, consideration must be taken as to the

    difference between the hole diameter and drill

    pipe combinations available. The 81/2 drill pipe

    used in the example above for the 251mm hole,

    is too large to drill a 187mm hole. Therefore, in

    order to use this configuration you would need

    to change your drill string every time you wish to

    change hole diameters. This requires labour,

    cranes and, most important of all, time. The

    optimal drill pipe size required to drill a 187mm

    hole, will be too small to effectively run the

    251mm rotary bits at the end of the daythis is

    due to bailing velocity plus flex on the rods.

    MESSAGE FROM

    THE MANAGING

    DIRECTOR

    Redundancy

    Redundancy is essential in engineering and

    systems design. It is why a jumbo jet can lose an

    entire electrical circuit and continue flying. It is

    why your car brakes are still effective after losinga brake circuit.

    When we prepare a feasibility study for a

    new mine we specify a range of management,

    technical and operating positions in an

    organisation char t. Traditionally, the redundancy

    allowance (sickness, leave and absenteeism)

    was around 12% of the complement. This didn t

    really allow for replacement of specialists, who

    were required to arrange their work so that they

    could take annual leave. We assumed that if

    unusual circumstances led to higher absences,additional appointments would be made to

    provide the necessary redundancy.

    Most mines today operate on an organisation

    chart that is pared to the bone. It shows just

    enough people, if they were all available, to run

    the mine safely and efficiently. But most mines

    dont have those people available.

    It has become common for a mine having a

    technical and management complement of,

    say, 15 to run chronically three or four positions

    short. The cause is claimed to be outside

    managements control, because there is a general

    shortage of experienced professionals and they

    are highly mobile. New vacancies arise as quickly

    as positions are filled.

    This phenomenon, in my opinion, compromises

    the safe and effective working of the mine.

    Production variability rises due to a lack of

    planning and process control, leading to a loss

    of profitability and to accidents. Both of these

    outcomes should be unacceptable to

    management and to boards of directors.

    The solution is simple. Build some redundancy

    into the management chart. If the bare bones

    management chart requires 15 technical people,

    make it your aim to employ 20. With the chronic

    shortage still applying, you may sustain 15. The

    same principle applies for operators. And guess

    what? Safety and profitability will improve, despite

    the higher employee cost.

    I have been an expert witness in more than

    thirty underground mine accident cases and

    I believe that the cultural causes of accidents are

    hard to quantify. However, it is easy to prove,

    using employee records, that a mine was under-

    staffed. I think that the causal link between

    under-staffing and safety could be demonstrated.

    Some operations are adequately staffed and

    can demonstrate this. If your operation is not,

    then I think that you are exposed. As a director

    or manager you might turn your thoughts to

    redundancy.

    Merry Christmas.

    Peter McCarthy

    MINING AND TUNNELLING UNDER EXTREME CONDITIONS

    mineABILITY will present a Mining and

    Tunnelling under Extreme Conditions short

    course in Melbourne 1415 April, 2003. The

    course adopts an integrated approach to solving

    problems encountered when mining and

    tunnelling under extreme conditions. The five

    presenters have a wide range of overseas and

    local experience and will highlight the inter-

    relationships between the rock mass character,

    groundwater conditions, effective ground

    stresses and feasible construction methods.

    Case histories will be analysed that illustrate

    the need for timely implementation of the most

    appropriate ground remediation.

    The course leaders are Dr Nick Barton from

    Norway, who developed the widely used Q-

    system for classifying rock masses and for

    dimensioning rock tunnel and cavern support,

    and Dr Eda Quadros from Brazil, who has over

    25 years research experience in fluid flow

    through jointed rock. Dr Barton has consulted on

    numerous tunnel and cavern projects, reservoir

    subsidence, rock stress measurement, nuclear

    waste disposal and embankment dam projects

    in a total of 26 countries over the last 30 years.

    He has received several international awards for

    his development work in rock tunnelling and

    jointed rock behaviour.

    For further details, contact David Pollard (phone

    08 8362 5545, email [email protected])

    or Marnie Pascoe (phone 03 9670 8455, email

    [email protected])

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    Consider the geological aspects

    Narrow reef/lode type structures are often too

    narrow to require or retain any estimated grade

    variation across the width of the zone. Therefore,

    composites should span the entire width of the

    zone with a single interval. It may be suitable to use

    service variable methods for interpolation in order

    to address the issue of variable sample support.

    Where broader or mixed zones are being

    modelled, the block dimensions become more

    of a factor. It is rarely appropriate for thecomposites to be larger than the relevant block

    dimensions, given the requirement for similar

    support between block and composites.

    However, composites can be smaller than

    the block dimensions. In this case, the support

    issues can be addressed through appropriate

    discretisation parametersan array of points

    within each block are used to generate individual

    estimates which are then averaged to provide

    the block estimate.

    Compositing, through combination of data,inherentlysmooths the data and alters its

    statistical characteristics. Sometimes compositing

    is used to intentionally reduce the variance of

    the data to reasonable levels, and hence improve

    the quality of the variogram. The degree of

    smoothing imposed by the compositing process

    needs to be monitored. Before and after

    compositing histograms of the grade data will

    help to visualise the changes to the grade

    distributions.

    This is especially critical where the zone/domainbeing modelled is marginal to lower cut-offs likely

    to be applied later on for repor ting.

    Standard compositing routines tend to allow

    specification of a minimum composite size to

    retain, with some software defaulting to a value

    that is half of the chosen composite length.

    Where downhole compositing is used with

    RESOURCE MODELLING:

    DEVELOPING A STRATEGY FOR

    COMPOSITING OF RAW SAMPLE

    INTERVALS IN DRILLHOLE DATABy Ingvar Kirchner & John Tyrrell

    One aspect of resource modelling that is

    commonly misunderstood, or underestimated,

    in terms of its significance, is the issue of

    compositing of raw sample intervals in drillhole

    data. Compositing is done specifically, to provide

    common sample support for geostatistical

    evaluations and grade interpolations.

    Some of the issues that AMC routinely

    considers when determining an appropriate

    composite size are:

    s The common raw sample lengths.

    s Data quantity issues.

    s Average zone/lode estimated true widths

    and degree of internal definition required

    from the estimates.

    s Block size and bench heights (support issues).

    s Data variability and the potential amount of

    pre-estimation smoothing of the data.

    s Loss of data at zone/domain margins.

    s Selectively sampled/assayed intervals.

    Generate a histogram of the raw

    sample lengths in each zone/domain

    Quite often the bulk of the sampling will occur

    at some common interval (eg 0.5/1.0/2.0 metre

    intervals etc). It would be unwise to use

    a composite interval that splits up (or is smaller

    than) the larger common raw sample intervals

    termed decompositing. Decompositing of

    larger intervals tends to cause a downward bias

    in the data variance and causes some bias in the

    rest of the statistical results. The initial effects can

    be seen in variography (lower variance values,

    increased ranges) and lower coefficient of

    variations, and this can lead to other

    downstream problems.

    If the composite size is too large, the amount

    of data available for the statistical analysis,

    variography and grade interpolation will be

    significantly reducedwith a corresponding drop

    in the quality of the results.

    composite runs controlled by zone/domain

    boundaries, it is possible that critical data may be

    lost at those boundaries. Narrow vein, lode, or

    reef type zones may also inadvertently lose data

    where the short length composite intervals fall

    below the minimum composite length threshold

    due to the narrow width of the zone. There are

    residual retention type compositing processes

    that can be used to overcome these issues

    without resorting to very small minimum

    composite lengths, which can produce a

    negatively skewed distribution of sample lengths

    and corresponding sample support problems.

    A major issue is the effect of compositing on

    selectively sampled or selectively assayed data.

    Where data is incomplete and biased towards

    higher grades (a common feature of the selective

    sampling process), compositing has a nasty habit

    of inflating those high grades and then causing

    hot spots in the model, particularly where

    those high grades are not bound by adjacent low

    grades in the same hole. Dealing with selective

    sampling/assaying issues is always hard, but

    sometimes unavoidable. In this case, the best

    strategy is probably to avoid using composite

    intervals that are significantly larger than the

    common sample intervals, thereby attempting

    to minimise the inflation of those grades over

    multiple/larger composite intervals.

    It is apparent that different zones/domains may

    require different compositing methods. Similar ly,

    different elements may require different

    compositing methods within the same model.

    When choosing composite intervals and method,

    a very considered, careful approach is required.

    For further information, contact John

    or Ingvar on [email protected] or

    [email protected] respectively

    Comparison of Raw versus 2m Composites

    Log Histogram 14/11/2002

    SPEED UP YOUR SEARCH

    AMCs website (www.ausmin.com.au) now has a

    comprehensive consultant search facility which

    provides a detailed and accurate listing of AMCs

    consultants, who can be selected on the basis of

    profession, expertise, commodity experience and

    country experience (hyperlinks to email

    addresses are provided). This new search facility

    complements the full range of resumes available

    on the website. Go to Staff on the sidebar and

    click on Consultant Search

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    Australian Mining Consultants Pty Ltd ABN 58 008 129 164 Website: http://www.ausmin.com.au

    MELBOURNELevel 19114 William StreetMelbourne 3000Telephone +61 3 9670 8455Facsimile +61 3 9670 [email protected]

    PERTHGround level9 Havelock StreetWest Perth 6005Telephone +61 8 9481 6611Facsimile +61 8 9481 [email protected]

    BRISBANELevel 8135 Wickham TerraceBrisbane 4000Telephone +61 7 3839 0099Facsimile +61 7 3839 [email protected]

    UNITED KINGDOMHampton Business Centre7 Mount Mews, Hampton-on-ThamesMiddlesex, TW12 2SH, UKTelephone +44 20 8213 5881Facsimile +44 20 8979 [email protected]

    In todays world the concept of 24/7 is

    well established. Airlines talk about seat

    utilisation factors, supermarkets are open

    24 hours, and the local milk bar has been

    replaced with a 7-Eleven, which never closes.

    Why?

    Its all about utilisation, the ability to use available

    capacity fully. For airlines it means selling cheap

    seats on the midnight flight, for supermarkets it

    means dodging the shelf packers late at night,

    and the 7-Eleven is well known for the midnight

    munchies. So what does capacity utilisation mean

    for mines?

    In Optimisation we spend a lot of time talking

    about capacity costs. Capacity costs are thosecosts that you incur when adding a unit of

    capacity. Buy an additional loader and you have

    to pay for manning, supervision, maintenance,

    insurance, leases and ventilation. All these things

    must be paid for, in full, before you can use the

    loader. These upfront costs are the capacity costs

    for the loader. That is they are the costs you have

    to pay, to create the option of using the loader.

    They are not as most people think, fixed costs.

    If instead of adding a machine you take away a

    machine, capacity costs become potential savings.

    Fixed costs dont go away.

    When we benchmark a mine one of the areas

    we look at is production variability. We look at

    two features, variability relative to budget, and

    the variation on a month to month basis relative

    to the peak monthly tonnage.

    Figure 1 is the distribution of monthly tonnage

    relative to peak monthly tonnage for the 25

    underground mines on our database. The data

    set ranges from Beaconsfield at 100 ktpa, to

    Olympic Dam at 9 Mtpa.

    The average is 83%. That is, on average,

    underground mines use 83% of their

    demonstrated capacity. Alternatively, in

    Australian underground mines, there is on

    average an opportunity to reduce capacitycosts by 15%. Our experience in benchmarking

    is that demonstrated capacity is normally a lot

    less than theoretical capacity.

    The budget story is not much better. On

    average, at the 3 standard deviation level,

    mines deliver 20% of what they planned

    to do. This is illustrated in Figure 2.

    There are many causes for the level of variability.

    However, they all boil down to a need to better

    forecast actual production, and making sure that

    alternative sources of ore are available to cover

    for unexpected problems.

    What does this mean to the consultant? Two

    things. Firstly, when designing a mine and making

    equipment selection, be aware of capacity

    constraints. Try to avoid over sizing. Make sure in

    schedules that multiple ore sources are available.

    We normally find for the average mine (1.0 to 1.5

    Mtpa), a minimum of 3 to 4 stopes are needed

    to be available to bog at any one time. Less than

    that, equipment tends to have lower utilisation.

    The second is that when a client asks how they

    can improve their performance, have a look at

    their variability. It might not solve everything, but

    it sure is a good start.

    If you want to know a bit more about capacity

    costs and variability, look up Johns paper entitledWhy Cost Cutting Fails to Deliver under Mine

    Planning in AMCs Reference Library at

    www.ausmin.com.au

    Or for more information, contact

    John de Vries, Principal Mining Engineer

    with AMC, at [email protected]

    GETTING WHAT YOU ARE PAYING FOR

    A HALF FULL GLASS IS 50% UTILISATION

    Figure 1: Production Relative to Peak Monthly Production 25 Underground

    Mines 20002002Figure 2: Ratio of Actual to Planned Tonnage 25 Underground Mines 20002002