Kokkola-2008!10!1 Mine Cost Drivers JM

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Bildplatshållare Capital Markets Day November 2008 Mine cost drivers Jan Most röm President BA Mines

Transcript of Kokkola-2008!10!1 Mine Cost Drivers JM

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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 

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Heap leach operation