proud to work for.. - mine africa - whittle consulting.pdf · proud to work for..! our vision - the...
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Proud to work for.. Our Vision - the de facto Global Standard for Enterprise Optimisation
Our Mission – Transforming economic value in mining globally!
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Increasing NPV by 5-35%!
Real Cases Last 2 years!
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Mechanisms Rating
Pit
Phasing
Schedule
Blending
Cut-off
Stockpile
Simultaneous
Plant
Product
Logistics
Capital
Blasting
Geo-metallurgy
Activity Based Costing
Base Case Data
Rating
Integrity
Gaps
Val. Model Consistency & integrity
Dependability
Legend Best Practice Rating
Not Applied
Partial
Applied
Difficult Easy
Opportunity Assessment
Low
Im
pact
H
igh
Impa
ct Asset Applying
Best Practices 5-35% more NPV
Opportunity to generate Strategic Options
Asset today
Software Tools Rating
Strategic Software
Scheduling
Sustainability Rating
Social Impact
Water
Energy
Tailing & Waste
It’s a MONEY MINE!Whittle Best Practices!
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It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡ Managing their asset in silos ¡ Focussing on the tonnes and
ounces ¡ Planning mines from the
bottom up
¡ Waiting till the commodity cycle goes down before slashing costs in the operation, hiring McKinsey, Proudfoot
Owners who create value are…. ¡ Managing their assets a an
integrated whole ¡ Focussing on the CA$H
¡ Planning mines using PROVEN technologies to plan top down
¡ Focusing on mechanisms to generate margin
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It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡ Outsourcing the entire
development of a mine to people who have no interest to see it deliver the benefits for the owner
¡ Only concerned about returns to shareholders i.e. Pascua Lama
¡ Not using technology to enhance productivity or using it within the technical silos
Owners who create value are…. ¡ Embedding the owner’s voice
to shape the projects economics
¡ Working through the trade-offs with other stakeholders i.e. communities, the environment, governments NGOs
¡ Embracing in a holistc way appropriate technologies around blasting, comminution, planning, geo-met, blasting
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It’s a MONEY MINE!Habits Destroy & Create Value!
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It’s a MONEY MINE!Habits Destroy & Create Value!
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It’s a MONEY MINE!Habits Destroy & Create Value!
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It’s a MONEY MINE!
MONEY has a time value!we want it NOW!
Bottlenecks prevent us !Getting the Money NOW!!
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Why Simultaneous Optimisation!Enterprise Optimisation!
Accelerates CASH!
Identifies LOM Bottlenecks!
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Why Simultaneous Optimisation!Enterprise Optimisation!
June 2013
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Defining the Optimised Cases FOCUS on the largest opportunities for value enhancement
Pits • Re-optimised for net value based on CV, Sulphur and activity based
costing, focussed on system bottlenecks like ports Phases • Possible for certain mines only Schedule • Flexible mining by site to meet port limits Cut-off • Prioritising high CV, low Sulphur over low CV, high S material – dynamic
value ranking mechanism utilised Stockpiling and Logistics • active, but we did not isolate the value or focus on improving these
BANPU - Our Focus?!
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Design2011
Phase 2 in blue
Phase1 in purple – area 1
Phase1 in purple – area 2
Phase1 in purple – area 3
35⁰ Overall slope angle
Phasing Example!
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Key Results • Improved cumulative cash flow from 2013 to 2023
nearly doubling cash flow in year 1 • 14% NPV uplift over the base case • This was without spending any additional capital
over what was stipulated in the Base case. • Coal price the same over LOM • Mine permitting and license to operate conditions
were incorporated into the scheduling constraints. Results generated by the following mechanisms: • Pit CV content – higher CV blocks attracted a
reward, lower CV blocks a penalty • Sulphur content – higher S blocks attracted a
penalty, lower S a reward. • Blending was used to meet product requirements
and prioritise the mining shape selection and scheduling.
• Much of the effort was focused on the Mining Activity Based Costing models and logistics models.
BANPU Results!
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Whittle Best Practice – Base Case!Mechanisms Rating
Pit
Phasing
Schedule
Blending
Cut-off
Stockpile
Simultaneous
Plant
Product
Logistics
Capital
Base Case Data
Rating
Integrity
Gaps
Val. Model Consistency & integrity
Predictability
Difficult Easy
Opportunity Assessment
Low
Im
pact
H
igh
Impa
ct
Software tools Applied
Rating
Strategic software
Scheduling
Legend Best Practice Rating
Not used
Partial
Used
Opportunity to generate Strategic Options
BASE BASE
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Whittle Best Practice - APPLIED!Mechanisms Rating
Pit
Phasing
Schedule
Blending
Cut-off
Stockpile
Simultaneous
Plant
Product
Logistics
Capital
Base Case Data
Rating
Integrity
Gaps
Val. Model Consistency & integrity
Predictability
Difficult Easy
Opportunity Assessment
Low
Im
pact
H
igh
Impa
ct
OPTIMISED
Software tools Applied
Rating
Strategic software
Scheduling
Legend Best Practice Rating
Not used
Partial
Used
Opportunity to generate Strategic Options
BASE CASE
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A simplified network
The Opportunities!
BYPASS
Wilpinjong
Wambo(fixed feed)
Product 112%Ash
Product 213%Ash
Product 315%Ash
Product 422%Ash
Product 527%Ash
CHPPASSET 1
ASSET 2
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The result is a potential NPV uplift of AU$298M over the LOM. This is a 19.3% increase over the Base case NPV. There is a potential extra AU$150M in net cash flow over the next 5 years, by leveraging the unused capacity in the wash plant and changing the product mix (1 & 4).
Opportunity 1 !
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Key Results [Published Nov 14 2013 www.avantimining.com] • Significant improvement in projects economics for the FS Update of the Kitsault FS • Signed off by AMEC’s QP • “Projected cash costs are in the lowest quartile of primary molybdenum producers worldwide.”
Mark G Premo CEO Results generated by the following mechanisms: • Fully variable elevated cutoff grades during the life of mine paired with the dynamic use of the
ore stockpiles. • Implementation of a flexible mineral processing regimen based on grind-throughput-recovery
(GTR) relationships for the three main rock types contained in the deposit. • Selection of the ultimate pit and internal operational phases incorporating the results of the
Enterprise Optimization study. • Optimization of equipment selection and layout in the process plant. • Optimization of the grinding circuit to maximize throughput • Incorporation of improvements to the silver recovery circuit. • Rationalization of the initial and sustaining capital requirements, including optimization to the
project infrastructure and tailings management facilities
AVANTI Results!
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Enterprise Level of Optimisation
Optimised Sustainability
$
Value Potential
None
$$$
COAL Existing LOM Plans
Partially Optimised Gemcom Whittle
Enterprise Optimisation
10 Mechanisms
Typical Optimisation Journey!
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Alliance Partners!Global
Africa Asia Australia Nth America
Sth America
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Want to learn more?!Money Mining & Sustainability Seminar Fremantle February, 2014!London March, 2014!Johannesburg April, 2014!Lima ! May, 2014!Johannesburg May, 2014!! www.whittleconsulting.com.au/events!
!