1 Spring 2017

EDSGN 100 Design Project #2 Final Design Report

Rare Earth Element Extraction Strategy Plan

Introduction to Engineering Design

EDSGN 100 Section 19

Colledge Girls Jocelynn Kelly jjk5770@psu.edu

Hannah Kemper hvk5310@psu.edu Victoria Kotwica vkk5058@psu.edu Alyssa Peretin ajp6019@psu.edu

Submitted to: Prof. Thomas Colledge

Date: 04/26/2017

Executive Summary The objective of this project, assigned by General Electric, was to develop a new mining strategy

that could be utilized in the Pocono Mountains to successfully obtain, transport, and process ore

from a block cave mine. The main specifications in this project included air quality, health and

safety, environmental management, and operating costs and productivity. From these

specifications, we were able to develop and then analyze multiple mine operation design ideas.

The design aspects that were altered within the ideas included the way in which the mining

machines were powered, how the ore was transported to the surface, and what type of labor

was utilized. Following the analysis of the possible designs, the idea that ranked the highest

consisted of electricity powered, remote controlled mining machines and the use of conveyer

belts. The tailings from the ore would be used to make concrete to seal the mine and possibly

construct a baseball stadium. After the selection, the cost of the design was calculated.

Comparison of this value to the profit afforded by the rare-earth elements within the ore

allowed us to calculate the final expected profit if the mine were to operate over 14 years.

2 Spring 2017

The Future of Mining: “The Poconater 3000”

Table of Contents

1.0 Introduction ................................................................................................................................. 3

1.1 Design Principles............................................................................................................... 3

1.2 Gantt Chart ...................................................................................................................... 3

2.0 Project Background ...................................................................................................................... 4

3.0 Project Objectives (Problem Statement and Specifications) ...................................................... 4

3.1 Problem Statement .......................................................................................................... 5

3.2 Specifications ................................................................................................................... 5

4.0 Conceptual Designs ..................................................................................................................... 6

4.1 Descriptions ..................................................................................................................... 6

4.1.1 Idea 1 .................................................................................................................. 6

4.1.2 Idea 2 .................................................................................................................. 7

4.1.3 Idea 3 .................................................................................................................. 8

4.1.4 Idea 4 .................................................................................................................. 8

4.1.5 Tailing Uses ......................................................................................................... 8

4.2 Research & Analysis ..................................................................................................................... 9

4.3 Concept Selection ...................................................................................................................... 10

5.0 Detailed Design .......................................................................................................................... 11

6.0 Conclusions ................................................................................................................................ 14

7.0 References ................................................................................................................................. 15

3 Spring 2017

1.0 Introduction

The main purpose of this project is to research and develop a mining strategy in order to

successfully obtain, transport, and process ore. This ore is located at a depth of 3,000 meters

beneath various terrain in the Pocono Mountains. The project needs to be completed while

satisfying the contract solicitation requirements outlined by the sponsor of this project, General

Electric. These contract solicitations will be discussed during the specifications portion of this

report. General Electric has been influential in numerous industries throughout the world,

including mining. In the mining industry, General Electric has been involved through its

production of Load-Haul-Dump machines or LHDs.

1.1 Design Principles

The contract solicitation requirements outlined various key components of the project that we

needed to be conscious of throughout the process.

1.2 Gantt Chart

The Gantt Chart pictured below was utilized in order to ensure tasks were completed in a timely matter.

This schedule ensured the project was completed on time.

4 Spring 2017

2.0 Project Background

This ore is located at a depth of 3,000 meters beneath various terrain in the Pocono Mountains.

Block cave mining infrastructure has already been put in place in order to extract the ore and

the rare-earth elements contained within it as this mining option presents the lowest cost per

ton in comparison to other underground mining methods commonly seen in the industry. Deep

underground mines, such as this one, pose difficult obstacles such as higher temperatures and

humidity. Naturally-occurring gas emissions can also begin to climb as the depth of a mine

increases. Mine ventilation and cooling help to combat these issues and provide healthier and

safer conditions, minimizing many environmental and occupational hazards. Ventilation has

already been put in place at this mine when the infrastructure was being developed.

Different mining equipment alters the amount of ventilation and cooling needed within the

mine. The engines of diesel machines produce large amounts of heat as they continually run.

Diesel-powered machines also emit many toxic emissions, like carbon monoxide, aldehydes,

and particulates, that could lead to an increase in the need for such ventilation. It has been

determined that these impacts on the mine environment could lead to the use of this

equipment being costly and may pose operational and maintenance difficulties. The block cave

mining method in place utilizes LHDs, haul trucks, and drilling jumbos in order to carry out the

mining process. It has been recommended that no deviations from these vehicles be made in

order to avoid any additional costs or delays.

3.0 Project Objectives

The majority of the project objectives came from General Electric during the introduction

presentation on March 13, 2017 in Deike Building. This PowerPoint was then made available for

all the Engineering Design 100 sections. General Electric wanted all the Engineering Design 100

classes to come up with a strategy to obtain, transport, and process the ore located in the

Pocono Mountain Range. The Design Team that offered the most comprehensive, complete and

supportable extraction strategy plan would be awarded the contract to execute the strategy, or

in other words, have the opportunity to present their strategy at the BJC Design Expo. Dr.

Colledge asked us to also consider alternatives to traditional mining methods such as Block-Cave

Mining and the use of non-diesel-powered mining equipment in the mining process. We

however, recognized that the block cave mining system was already in place and that any

deviation from this method could prove costly and incur other difficulties. The stakeholders for

this project include General Electric, the community, our design team, the environment, the

mine workers, the nuclear plants nearby, Kevlar (for the conveyor belt), the companies that build

our equipment, and the buyers of our REE’s.

5 Spring 2017

3.1 Problem Statement

We recognize the need to research and develop a mining strategy in order to successfully obtain,

transport, and process ore, and also separate the REE’s from a depth of 3000 meters across

various terrain in the Pocono Mountains while satisfying the contract solicitation requirements.

3.2 Specifications

The mine owner has issued a contract solicitation for an engineering Design Team (DT) to develop

a strategy to extract the REE ore in a cost-efficient and environmentally conscious manner,

including, but not limited to, the use of alternative types of mobile mining equipment, alternative

energy sources for mobile equipment, or other methods that could exploit the current mine

setup. The contract solicitation requirements to be included in the extraction strategy plan are as

follows:

Table 1: Specification Development

Stakeholder Needs Specifications

Chemical and particulate emissions released to the environment

would be harmful to community

Airborne

Contamination

Care and management of REE ore through its entire lifecycle, which

means final disposal of tailings

Stewardship

Protection of flora and fauna and compliance with applicable laws

and regulations

Environmental

Management

Emphasis on prevention or mitigation of workplace hazards Occupational Health &

Workplace Safety

General Electric needs us to come up with a low-cost development

and operation of the REE mine and ancillary costs for mining

equipment, fuel, labor, electricity, water, etc.

Operating Costs &

Productivity

Need to be able to engage local and adjacent communities with

emphasis on social license to operate as a good neighbor

Local Community

Engagement

Solid waste from REE processing plant and mine groundwater

inflow (drainage) need to be taken care

Waste Management &

Disposal

Prevention of long-term degradation impacts to the environment

and consideration of future sustainability of the site

Mine Closure &

Rehabilitation

6 Spring 2017

The Pairwise Comparison allowed us to compare the importance of the specifications we

previously determined to one another. As a result, we were able to conclude that air quality,

health and safety, environmental management, and operating costs and productivity were the

top ranked and most important specifications.

Table 2: Pairwise Comparison

4.0 Conceptual Designs

The design concept of this project, similarly stated in the problem statement, is to make a safe,

environmentally friendly, and productive strategy to extract ore from the mine. During the

brainstorming process, we considered these aspects to form solutions.

4.1 Descriptions

After identifying the stakeholders and resulting specifications, we combined these aspects with

the contract solicitation requirements and began brainstorming numerous ideas.

4.1.1 Idea 1

Idea 1 consisted of a GE designed Load Haul Dump machines that uses diesel fuel. The haul trucks

and drilling jumbo would also be diesel powered. A ramp that goes from the surface to the base

of the mine would be implemented so that vehicles could drive up and down it to transport the

collected ore. We also thought to use humans for labor for tasks like driving the trucks and being

in the mine to regulate progress.

7 Spring 2017

Figures 1 and 2: Idea 1 Concept Sketch and Diesel Powered LHD

4.1.2 Idea 2

Idea 2 consisted of using a GE designed battery powered LHD for moving the ore and battery

powered haul trucks and drilling jumbos. The LHDs would place the extracted ore on an elevator

that traveled vertically up a shaft to the surface. On the surface, there would workers controlling

the remote-controlled vehicles carrying out the designated tasks within the mine.

8 Spring 2017

Figures 3 and 4: Idea 2 Concept Sketch and Battery Powered LHD

4.1.3 Idea 3

Idea 3 consisted of an electricity powered GE designed LHD. The haul trucks and drilling jumbos

would also be powered with electricity. The electricity would be sourced from a surrounding

nuclear power plant and run through a set of pipes in the mine, which would be attached to the

LHD by a coil. The LHD would then dump the ore onto a conveyor belt that goes from the bottom

to the surface of the mine. The conveyor belt would run through the entire mine. Robots would

do the labor inside and out of the mine.

Figure 5: Idea 3 Concept Sketch

4.1.4 Idea 4

Idea 4 was developed after the first round of analysis and consists of a hybrid of the previous

ideas 2 and 3. It utilized electricity powered LHDs, conveyor belts, and remote controlled vehicles.

4.1.5 Tailing Uses

With our brainstorms, we came up with many ideas for what could be done with the tailings.

Some could be made into concrete and dedicated to sealing up the mine. The rest could be used

for community development in the Poconos, such as building a stadium, making roadways, or

making a park. The cement the tailings can be used to make can be used for many versatile

projects.

9 Spring 2017

Figures 6 and 7: Baseball Stadium and Public Park

4.2 Research & Analysis

Many aspects went into deciding our overall solution to extracting the ore and choosing a

brainstorming method to finalize.

The diesel engine is the most efficient prime mover commonly available today. Productivity of

the mine is extremely important because it is such an expensive operation, even in upfront

costs. The diesel powered LHD is extremely efficient and a cost-effective way to collect ore.

However, the diesel engine is one of the largest contributors to pollution in the environment.

Diesel emissions contribute to the development of cancer; cardiovascular and respiratory

health effects; pollution of air, water, and soil; soiling; reductions in visibility; and global climate

change. Using Diesel LHD also means that mines are more intoxicating in a shorter amount of

time and a lot of resources and money has to be incorporated into ventilation. GE invented a

battery powered LHD recently, slowly being integrated into all of their mining processes. There

are no emissions, low maintenance requirements, and benefits or cleaner, safer, and quieter

mine environments. More perks of the battery powered LHD also include lower fuel costs,

reduced life cycle costs, and regenerative breaking.

Figure 8: Life Cycle Cost of Battery Powered Vehicles

While these other options are worth considering, our group decided an LHD powered by

electricity from a local nuclear power plant was the most effective solution.

10

Spring 2017

The conveyor belt is efficient in that sections can be replaced, it can operate at a constant speed,

and run along an already constructed path so another shaft doesn’t have to be made. We also

decided using remote controlled vehicles for labor was the best option. Eliminating human labor

greatly decreases health and safety related concerns. If humans aren’t in the mine, we preserve

peace of mind for everyone’s families and companies involved. Using remote controlled labor is

also much cheaper than robots due to the less intense programming.

4.3 Concept Selection

The graphs below detail the decision matrices we used to come to our conclusions,

incorporating research and personal rationale.

First we compared our three original ideas to the specifications we had identified using the

concept variants chart pictured below. The results allowed us to conclude that ideas two and

three were the best ones to further pursue and analyze.

Table 3: Concept Variants

Following the determination of the individual weights of our specifications, we compared ideas

two and three, as well as a hybrid of the two, to the specifications using the weighted selection

matrix pictured below. From this table, we were able to identify the hybrid concept to be the best

one to move forward with.

3 2

11

Spring 2017

Table 4: Weighted Selection Matrix

5.0 Detailed Design

After evaluating all of our brainstorming ideas, we decided that the most cost-effective, energy-

efficient, and environmentally friendly solution was a combination of Brainstorming Ideas #2 and

#3. In our final design, there will be 100 draw points, each approximately 300 meters apart from

each other. We will have 10 Electric, Remote-Controlled Load Haul Dump Vehicles, each with 10

draw points to manage. The mine will be arranged in a 10x10 grid, with each Load Haul Dump

Vehicle carrying the ore from one row of the grid to a Kevlar conveyor belt that extends into the

mine from the processing plant above ground. Each eLHD will start at the extraction draw point

farthest the conveyor belt and work its way up to the point nearest the conveyor belt before

cycling back around to pick up more ore. The eLHDs will be on a rotating system so that their ore

deposits do not overlap and cause a backup on the conveyor belt. The ore loaded onto the

conveyor belt is brought to the surface, where it is then processed in the processing plant. The

eLHDs are remote-controlled, so human labor is minimized and profit is maximized. The electricity

comes from a combination of mechanical energy harnessed from the conveyor belt and nearby

nuclear plants. The closest nuclear power plant in relation to the Pocono Mountains is the

Susquehanna Steam Electric Station. The Limerick Generating Station and the Three Mile Island

Nuclear Generating Station are also nearby providing numerous nuclear power sources. Although

air quality underground is an insignificant consideration due to the lack of human labor

underground, the eLHDs have no fuel emissions. With two 10-hour shifts and the mine being 80%

efficient (totaling 16 hours of working time each day), the eLHDs will be able to charge for up to 8

hours a day.

Referencing the SANDVIK LH514E, we estimate that our eLHDs will be able to carry 14,000

kilograms of ore at once (or a maximum of 140 kilograms from each draw point). They will also

travel at a speed of approximately 19 kilometers/hour. Based on these estimates combined with

12

Spring 2017

the time that the mine is operating and taking into consideration the total availability of

370,000,000 U.S. tons of ore, we determined that the mine will need to operate for

approximately 14 years at maximum efficiency to extract all of the ore. Factoring in that our

eLHDs and other equipment will need to be replaced after 7 years, we calculated the following

total cost and profit.

Table 5: Cost Evaluation

Total cost of eLHDs $20,000,000

Operators’ Salaries $3,000,000/year

Electricity Cost $3,737,600/year

Total cost of Haul Trucks $25,000,000

Conveyor Belt Operating Cost $114,000/year

Drilling Jumbo $7,500,000

Maintenance $2,160,800/year

Base Cost $3,000,000,000/year

Total Cost (14 years) $42,000,000,000

Estimated Profit from REE $3,700,000,000,000

Total Profit $3,658,000,000,000

The systems diagram pictured below highlights the most important considerations and

demonstrates how we arrived at our final design while keeping those factors in mind.

13

Spring 2017

Figure 9: Systems Diagram

Figure 10: Sketch of Final Design

14

Spring 2017

Figure 11: Diagram of eLHD Paths

Each LHD will cover 10 draw points. Arranged in a 10x10 grid, each LHD will travel in the same

direction, picking up ore at each draw point and transporting it to the conveyor belt, which will

follow a shallow grade up to the surface. The LHDs will be staggered, as depicted above, in

order to prevent backup of ore on the conveyor belt. The path of the leftmost LHD is shown

with arrows. All other LHDs will follow the same path.

6.0 Conclusions

“The Poconater 3000,” which is the name we came up with for our strategy, is powered by

electricity and is remote controlled. It also utilizes conveyer belts.

Overall, our strategy proved to be among the best of the class as we were voted second place out

of eight groups. Our team successfully took all of the gathered restraints and came up with one

efficient solution that met all of the requirements. We were able to satisfy the most important

requirements when it came to the objectives given to us, which included: air quality,

environmental management, health and safety, and finally, operating costs and productivity.

A possible way we decided to give back to the community is through the use of the tailing

concrete, in which we decided to build a baseball stadium. Since the members of the Pocono

community would have to deal with any disturbances the mining process could cause, this is our

way to give back.

If we were to further the efficiency of our strategy, we would look at ways to offer more jobs to

15

Spring 2017

the community so that there is more inclusion and involvement. The community could also take

part in deciding what projects they would like to see completed as part of our thanks. Our Design

Team hopes to see this design implemented for long-term use for General Electric, or any mining

industry looking to extract ore in the most efficient way possible.

7.0 References

http://www.dupont.com/products-and-services/fabrics-fibers-nonwovens/fibers/uses-

and-applications/conveyor-belts-for-mining.html

http://www.dupont.com/content/dam/dupont/products-and-services/fabrics-fibers-and-

nonwovens/fibers/documents/DPS_Kevlar_Belts_Mining_Brochure_.pdf

http://www.oemoffhighway.com/electronics/press-release/12260930/artisan-vehicle-

systems-launches-battery-powered-lhd-underground-mining-vehicle

http://www.groundtruthtrekking.org/Issues/MetalsMining/block-caving-underground-

mining-method.html

https://www.youtube.com/watch?v=MVDAw56s5dU

http://mining.sandvik.com/en/products/equipment/underground-loading-and-

hauling/electric-lhds/lh514e

http://robotics.ee.uwa.edu.au/theses/2013-ElectricMines-Jacobs.pdf

https://www.ncbi.nlm.nih.gov/pubmed/11417675

http://www.gefairchild.com/PDF/full-brochure.pdf

https://sites.psu.edu/engineeringdesignproject/files/2017/03/EDSGN_100_GE_SP17docx-

1gp9e1o.pdf