Senior Design 2014

Week 2

Oral Presentations

• Dress Code– Simulating reports to directors – need professional

dress at semi-formal level• White shirt and tie• Nice slacks – not to be confused with shorts

– Dress code alternative• Tan slacks – not to be confused with shorts• Mining Polo’s• Entire team must be uniform for this option

Some Guidelines for Public Speaking Poise

• Avoid rocking back and forth and swaying– This can usually be done by spreading to feet slightly

more than the width of your hips• I have seen this done to where someone looks like they are

doing the splits – they don’t sway but the look highly un-natural

• Make sure any walking movements fit context of your presentation– You don’t have to stand still but if you walk it should

not look like you are dodging bullets in a shooting gallery or appear to be a nervous habit.

Poise and Appearing You Don’t Need a Pad by that Name

• Face you audience• Maintain eye contact with the audience

– Not your power point (very hard to do)– You should know your power point well enough that you don’t have to read

it• Look at it when you want to point something out and then return the gaze to the

audience

• Look slowly around the room making eye contact with individuals including those at the edges– Don’t shift gaze so rapidly that you appear hysterical

• Gestures should be natural– Don’t put your hands in your pocket– Don’t stand stiff as a board– Don’t flap you hands so it looks like you are trying to get airborne

Speak Straight and Clear

• Keep your head up – let your lungs expand, speak loudly without shouting or straining your voice

• Avoid ah’s, ya’s , you know, and other words that take up space and break the context and flow of your words

Don’t Be Over-Powered by Your Power Point

• Slides don’t give your speech for you– Avoid too many words– (most of my power points have to many words in

an attempt to help students doing reviews – it is not the ideal)

• Avoid print so small one must strain to see• Avoid busy tables that no one can read.

But What Should I Do About Tables?

• Why are you showing it?– Answer a lot of times is you did a lot of work and

want people to see it and don’t know yourself what to emphasize• Consider handing tables out (they can’t read it on the

screen anyway)

– If you know what you want them to see consider doing blow-up of table data you want to emphasize

Coal

• Improve your model– You mine lease area starts a 0,0 in the south-west

and extends 5 miles to the north and 7.5 miles to the east (adjust your mining area and models)

– Your fault definition is excellent– You need to add your dikes and washout channels• Computer interpolation on these features are likely

inadequate

Dealing With Dikes

• You have two of them – in one case you drilled right into it – in another you encountered burnt coal near it.– They are long narrow features

• Dike is an igneous intrusion up a fracture – assume less 40 feet wide but could be miles long

• The coal on each side will be burnt for about 50 feet and degraded for about 200 feet– Where coal is burnt the thickness cannot be relied on since burning the

coal down would obviously reduce thickness

• Carlson allows you to draw an exclusion polyline around the affected area– You may have to use you knowledge and drill-hole data

Moving on to Channels

• Washout channels are caused by streams cutting into and eroding coal and replacing with something else– Stream channels are likely to be continuous – not

spot features• You need to figure out where the stream is likely going• Exclusion polylines again.

– You should probably not use washed out coal to interpolate thickness

Produce Maps from Your Model

• Coal thickness with drill holes into local features (dikes) and channels excluded from modeling but with exclusion polylines to handle the local dike and washout features

• Coal seam bottom elevation– You will use this to help you get a feel for where

water will flow and collect• It may help govern your mining direction (do you really

want the water to pond on the face)• It will be used for design of a dewatering system.

Produce Innerburden Isopacks

• Produce contours of the thickness of the material between coal seams.

• For your maps put borders and title blocks and prepare them as drawings that can be used in your final report– (they may get a few updates over time)– You will turn in small paper 8.5X11 copies of your

maps with your presentation.

Start Applying Your Work from last time

• Look at your property map and flood regions– Identify areas where you would not put key mine

features such as shafts, prep plants, or waste piles– Identify areas that might be favorable for such

features– This does not require you to make any final

decision on facilities location• This is a step in a process

Price and Market• Look at coal price history

– Is $46/ton from the spot market your likely price?– Is there a premium or penalty for low or high sulfur or chlorine

• How would your prices bias up or down

• Last week you demonstrated you could– Get the 1 million ton per year Hutsonville 20 year contract that will pay you $34/ton– You demonstrated you could get 20% of Newton Power plants coal supply

• Assume your most likely price• Use FERC data to get quality and quantity numbers

– You sort of demonstrated you could get the $50/ton boiler coal market in Terra Haute• The market required $6/ton transport

– You got $6/ton but forgot the $4/ton cost for the rail change– Review your costs– If you have to you can go for $46/ton and eat the extra $4/charge for transportation

– You found you could not get coal to the Ohio River for $6/ton and capture the $45/ton 2.5 million dollar per year orient market• You were $8/ton plus a $4/ton rail change• Check your cost estimates• Decide whether you will “eat the extra cost” and do $39/ton coal

Size Your Steam Coal Market

• Are there any other power plants besides Newton and Hutsonville you can get to– Assume you can get 20% of their coal supply at typical coal prices

less any cost above $6/ton for shipping• Add up your annual steam coal market with the contracts you

want to take– Assume you can market another 10% on the spot market– For the contracts picked how many tons are you looking at and at

what average price?– Look at your steam coal reserves

• If you had 60% recovery how many years would you have• Chances are something in the 20 to 40 year range for mine life would be

good – do any adjustments suggest themselves

Look at Your Met Coal Market

• You forecast $120/ton– Where does the met coal have to ship?• Keep in mind you are sending it to coking ovens – not

iron foundries

– For about a 20 to 40 year life what mining rate would you have for the #2 coal seam?

Look at Your Workforce

• You now have an estimate of how many tons you are going to produce– Estimate what kinds of crew needs you will have

• Plan out your work schedule– How many days per week?– How long is a shift?– How many shifts?– Will you have hot seat change-outs– How many days per year– How will you do maintenance shifts

Workforce

• With your general map of the workforce– How many people will you have to move?– How many locals can you use?

• What will your wage and burden costs for your different workers be– Prepare a scale and chart– Work your burden out in some detail

Writing Assignment• Write a report on how much coal tonnage you can sell and at what

price and with what quality requirements– The report should give an estimated mining rate and mine life.

• Write a report on the climate and any considerations that will limit your operating season or restrict where you can build.– Indicate any climate features that may force you to take special

precautions for heating or humidity control• Write a report on workforce producedures

– Days per week and year, shift structure etc.– Itemize benefits you will provide

• Prepare an appendix showing what those benefits will cost and how you got the cost.

• Your Writings will be turned in at the end of your next oral report.

Metal Miners

• Fix your work from last week– Most was very glossed over and incomplete– Metal Prices• You have Gold, Silver, Copper, Lead, and Zinc• Estimate your best guess at the likely price• Estimate your optimistic price (don’t just pick an all

time high unless you feel something is happening that might push to the all time high on a sustained basis)• Estimate your disappoint price (again don’t just pick a

record low)

More Fixing

• Water– Are there any springs in the area?– What aquifers are in the area?– Are there already commercial water districts in the area? What

would it cost to buy water from them.– You are in a desert – all water is spoken for. You can’t just drill

wells or stick a siphon hose in the Colorado River.• What is the cost of water out of Lake Mead or Lake Havasu?• What is the cost of water from Kingman.• Get the cost for existing sources and then figure out what it would take to

get water from that source to your doorstep.• Quantity discounts may spread the capital cost of a pipe-line over more

units but you don’t get quantity discounts on water in a desert.

The Burden Burden

• You claimed 40% based on lecture and then talked about benefits like 40% would buy anything the mind could conceive.– Social security is 6.2%– Medicare is 1.45%– Workmans Comp is 1.5%– Unemployment is about 0.9%– What is that 401 K program going to cost

• 3% for the first 3%, half match to 7% - maybe 5% if everyone participates. What is your participation rate?

– How many days of vacation do they get (how many days work goes with that). You can calculate the additional cost

– Same thing with sick leave or family leave

More Burden

• $300/month per employee and you pay 60%– You have got to be kidding– Mining companies have top flight plans– Most workers have families

• 60% by the company needs a lot of McDonald’s and Walmart employees in the mix

• Go talk to some of your buddies in industry and see what they are getting– (an SIU prof policy costs about $1400/month from the school and $200

from the worker)

– How many hours will you get out of a worker per month?• You can do math – how much cost does that add?

Somebody Needs Education

• Where are those MSHA training and refreshers offered?– Are you flying people in– Remember you pay your people regular wages and expenses

when they go• Don’t forget that burden cost

• Where are you getting task training?– What schools train heavy equipment operators?– Are you going to set up your own? – What will that cost

• Itemize don’t just hail-mary guess

• What schools are in the area and what do they offer– Don’t over-look your community colleges

Draft Pit

• Make sure you get the data from your correct Draft Pit before doing the next step.– The stripping ratio on what you showed in class is

highly suspect.

Processing

• We will try to work up a more accurate processing plan on Friday

Transportation

• Accuracy and completeness may be lacking– If you don’t buy the San Manuel Smelter where are the other

smelters?• A cost of $2.6/ton mile by rail may be good for freight but not for

bulk raw materials.– For copper concentrates 6 cents per ton-mile for a 350 mile trip would be

expected.– This does not include rail carrier changes ($4/ton)– Loading Cost– Unloading Cost

• Building a Rail system and building a rail spur are not the same thing. $750,000 a mile should build a reasonable rail spur

Other Products

• Where are nearby gold mines that process refractory gold ores?– Assume they can recover your gold and silver

• Although not true now assume that you can smelt lead at Hurculanium, Mo.

• Where are Zinc Smelter Located?• Where are existing copper concentrators• As Process is worked out it will become more

apparent where to ship things.

Moving Ahead

• Size your mining operation– You have your tonnage – about– What mining rates correspond to life of• 15 years• 20 years• 25 years• 30 years• 40 years

– What rates seem normal and feasible

Locate Facilities• You know about where the pit is and you know your process

– Locate the general area for your processes and waste• You know how big your pit is

– Do estimates of your cycle times to move material• Get a cost for loading and trucking costs• Zero in on 3 feasible mining rates and the truck and loader combinations likely to

accompany that• Consider fuel costs to get fuel to the mine

– Design model drilling and blasting rounds• Assume 15 meter bench height• Estimate the cost

– Assume drilling blasting and trucking make up about 70% of mining costs• What is your ore mining cost?• What is your leach mining cost?• What is your waste mining cost?

More Cost Estimates

• Get cost estimates for processing– (comments must be based on their chosen process)

• Take your revised cost estimates and calculate your ultimate pit again– This time also include pit slopes based on rock type or

working geometry as appropriate– Also allow variable slope by azimuth to account for fracture

planes– Check your pit size and ore reserves against your assumptions

• Fine tune and see if anything you calculated was completely invalidated.

Notice the Design Spiral

• You did a crappy pit design to size ore reserves and locate facilities

• Then you used that information to get case specific costs– Then you went back and did your ultimate pit

again.

Report Writing

• Write a report on historical metal prices and your estimated prices for high, low, and middle case.– Make sure the report explains how and why you chose your prices

• Write a Report on the Climate– Are there things that will cause shut-downs and lost time?– Are there things that will impact equipment operations?

• Any dust storms?• Will heat impact truck speeds?• Can winter weather cost you days?• Will you have any freeze-thaw issues on rocks?

– What is your operating season and hours• Is there anything you need for that operating season (such as lighted

roadways etc).