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Bildplatshållare
Capital Markets DayNovember 2008
Mine cost drivers
Jan Moström
President BA Mines
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Mining
DRILLINGDEPOSIT EVALUATION
FEASIBILITY STUDY
LOADINGHAULAGE
HOISTING
ROCK SUPPORTCHARGING
BLASTING
LEACHING
FLOTATION
GRAVIMETRY
WASTE ROCK
ORE RESERV
ORE
GRINDINGCRUSHING
TAILINGS
DISPOSAL(TAILING DAMS,
DUMPS AND MINEDOUT STOPES
CONCENTRATES SMELTERS
METALS
SX EWCRUSHINGHEAP LEACHINGDUMP LEACHING
MINE
MILL
LEACH/SX EW
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Two main types of mines
Open pit mining
Roughly ten times lower in cost per ton compared to under groundmining
Slope stability decide waste/ore ratio
With low grades a high production rate is needed
Big equipment for high volume production
Under ground mining
Under ground mines commonly have lower production rate
Increased cost to infrastructure and ground support
More up front development work
Often smaller ore bodies but with higher grades
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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
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Under ground mining
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Under ground mine infrastructure
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Under ground mining methods
– Room and pillar mining
Common for flat ore
bodies High production and
low cost
Good productivity
Ore lost in pillars
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Under ground mining methods
– Open stoping
Common for steeply dipping ore
bodies Can be deep
Good production rate
Moderate to high cost
Higher dilution
High capital cost
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Under ground mining methods
– Block caving
Common for massive
ores Caveable rock
Can be deep
High production
Low cost Very high capital cost
No selectivity
High dilution Surface subsidence
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Under ground mining methods
– Cut and fill mining
Common for steeply dipping
irregular ore bodies Higher grades needed
Moderate production
Higher cost
More ground support withdepth
Good recovery and controlleddilution
Flexible method
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Open pit mining
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Open pit sequencing – push backs
12
34
5
6
7
8
9
Production flow
PB 1
PB 2
PB 3
1
47
2
11
6
810
10
11
13
12
14
12
17
20
23
18
16
14
1210
8
Solutionpush backs
Critical phase
Critical phase
21
3
4
5
6
7
8
9
Economy cash flow
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The Aitik Mine 1968
– 2 million tonnes per year
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The Aitik Mine early 70’s
– 6 million tonnes per year
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Mill &workshop
The Aitik Mine 2000
– 18 million tonnes per year
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Crusher
WorkshopMill
Railway
terminal
Conveyor belts
The Aitik Mine 2010
– 36 million tonnes per year
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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%
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Mill
DRILLINGDEPOSIT EVALUATION
FEASIBILITY STUDY
LOADINGHAULAGE
HOISTING
ROCK SUPPORTCHARGINGBLASTING
LEACHING
FLOTATION
GRAVIMETRY
WASTE ROCK
ORE RESERV
ORE
GRINDINGCRUSHING
TAILINGS
DISPOSAL(TAILING DAMS,
DUMPS AND MINED
OUT STOPES
CONCENTRATES SMELTERS
METALS
SX EWCRUSHINGHEAP LEACHINGDUMP LEACHING
MINE
MILL
LEACH/SX EW
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About the mill process
Grinding is the major part in milling costs
The choice of grinding technology is crucial, Boliden type of autogenous
grinding (AG) has proved to be the most cost efficient Semi autogenous grinding (SAG) is by far the most used technology
Flotation separation, based on surface chemistry, is the outmost importanttechnology to separate base metal minerals from waste rock – products are
called concentrates The flotation process is adopted to the specific ore type when it comes to
equipment, circuit lay outs and reagent regime
Since flotation is a wet process the concentrates must be dewatered,
dewatering technology can vary depending on proprieties of theconcentrate and customer demand
Leaching process is used solely to recover the gold/silver content that notreports to concentrates
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Mills
grinding
Water addition
Filters
dewatering Thickeners(dewatering)
Flotation Circuit
separation
Crusher
Mill (Ore Dressing Plant, Concentrator)
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Boliden ABEnhet/verksamhet 2008-10-28
Fragmentation, crushing and grinding
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Boliden ABEnhet/verksamhet 2008-10-28
Communition – industry average cost
distribution
Blasting 1%
Coarse crushing 2%
Fine crushing 20%
Grinding 77%
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Boliden ABEnhet/verksamhet 2008-10-28
Grinding mill
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Waste
Ore (pulp)
ChemicalsAir
Flotation cells
Concentrate
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Dewatering - thickeners
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Boliden ABEnhet/verksamhet 2008-10-28
Dewatering of Concentrates – pressure filter
Fully automatic
Capacity up to 250 t/h
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Mill and leaching plant at Boliden Area
Operations
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Tailings and waste rock disposal
Tailing Pond
Waste Rock Dumps
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Stekenjokk – reclaimed minesite
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Heap Leaching SX EW
DRILLINGDEPOSIT EVALUATION
FEASIBILITY STUDY
LOADINGHAULAGE
HOISTING
ROCK SUPPORTCHARGINGBLASTING
LEACHING
FLOTATION
GRAVIMETRY
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
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Typical porphyry copper ore
Heap Leach SX EWOre
Flotation Ore
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Heap leaching SX EW
The process is normally applicable to oxide minerals (the upperweathered 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
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Heap leach process – copper