tsv mining: critical density in mining and changes to sustainable low cost production

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Total System Value TSV Mining Pty Ltd [email protected] M: +61 438 886 473 www.tsvmining.com.au Presented by: Christopher Braund Director

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TSV Mining's presentation on Critical Density in opencut mining operations and its impact on sustainable low cost production. From the mining boom, the increase in production for some operations may have crossed a point where sustainable low cost production may no longer be possible without redesign of how the operation functions.

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Page 1: TSV Mining: Critical density in mining and changes to sustainable low cost production

Total System Value

TSV Mining Pty Ltd [email protected]

M: +61 438 886 473 www.tsvmining.com.au

Presented by:

Christopher Braund

Director

Page 2: TSV Mining: Critical density in mining and changes to sustainable low cost production

Background

From Phillip Ball’s book Critical Mass, and his discussion of the

traffic flow modeling work by Nagel Schreckenburg (NaSch Model).

Moving from stable traffic flow, to metastable, to an unstable traffic

jam.

Understanding the effects of the Critical Density Point in traffic flow

modelling and applying it to the open cut mining system.

Total System Value

Page 3: TSV Mining: Critical density in mining and changes to sustainable low cost production

Critical Density

Critical Density is where a system passes a density point where

it tends into a metastable and potentially unstable state.

Total System Value

Page 4: TSV Mining: Critical density in mining and changes to sustainable low cost production

Metastable State

Metastable literally means to be “next to stable”.

It is a state which is stable but only needs the slightest provocation

in order for it to fall into an unstable state.

Total System Value

Page 5: TSV Mining: Critical density in mining and changes to sustainable low cost production

The NaSch Model

Traffic flow has been modelled since the 1960’s. Modelling work

by Nagel and Schreckenburg (NaSch Model) in the mid 1990’s

can give us a better understanding on the effects of traffic

density to flow:

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Page 6: TSV Mining: Critical density in mining and changes to sustainable low cost production

Stable traffic flow

Flow

Rate

Density (cars / km)Critical

Density

Here traffic flows well. The lower density

of cars means that the traffic is capable

of handling unplanned events such as a

motorist suddenly breaking. However it

will reach a point where the traffic is at a

critical density.

Stable

state

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Page 7: TSV Mining: Critical density in mining and changes to sustainable low cost production

Metastable traffic flow

Flow

Rate

Density (cars / km)Critical

Density

Metastable

statePast this critical density point, the density

and flow rate of the traffic can still

continue to increase, however it is in a

metastable state, and hence it will not be

able to tolerate any unplanned, disruptive

events.Stable

state

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Page 8: TSV Mining: Critical density in mining and changes to sustainable low cost production

Traffic jam

Flow

Rate

Density (cars / km)Critical

Density

Metastable

state

Event

occurs

Traffic Jam

In this state a simple reaction by a driver, say

suddenly breaking to avoid an incident, will

cause a chain reaction. The traffic flow rate will

suddenly descend and density will increase

creating a traffic jam.

Stable

state

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Page 9: TSV Mining: Critical density in mining and changes to sustainable low cost production

Getting out of the traffic jam

Flow

Rate

Density (cars / km)Critical

Density

Metastable

state

Event

occurs

Traffic Jam

In order for the traffic to again increase

its flow rate, it must reduce its density.

The amount of cars coming into the traffic

jam must be reduced in order to bring the

traffic back into its free flowing state. It

must be reduced back down below its

critical density.

Stable

state

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Page 10: TSV Mining: Critical density in mining and changes to sustainable low cost production

The traffic jam is a one way loop

Flow

Rate

Density (cars / km)Critical

Density

Metastable

state

Event

occurs

Traffic

Jam

The traffic jam cannot be reversed. It

cannot revert back to being in a

metastable state without first going

back to a stable state below the

critical density point.ONE WAY

LOOPStable

state

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Page 11: TSV Mining: Critical density in mining and changes to sustainable low cost production

Mining in a stable stateT

hro

ughput

Process DensityCritical

Density

In the stable state, the throughput from the

operation is consistent and cost are controlled.

It can handle most events that occur within the

operation. Inventory is healthy and sustained.

Processes have minimal impact on one

another.Stable

state

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Page 12: TSV Mining: Critical density in mining and changes to sustainable low cost production

Mining in a metastable to

unstable state

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NOTE: the line is curved past the Critical Density Point as the change occurs gradually with the change in inventories. The

traffic inventory is consumed in seconds, and hence has a sharp drop.

Page 13: TSV Mining: Critical density in mining and changes to sustainable low cost production

Costs and throughput in the

unstable state

The metastable state is where issues can occur in the mining

industry.

Operations will run at their highest throughput with predictable costs

for a time, however it eventually becomes unsustainable.

As the operation trends to the unstable state, throughput drops and

costs rise.

Adding processes into the system makes things worse, with more

interactions, more complexity and higher costs (like adding more

cars into the traffic jam).

Eventually the operation bites the bullet and see that to go forward

they must take a hit on production in order to re-build depleted

inventories and stabilise.

This is done and the loop starts again as the operation tries to go

back into the metastable state.

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Page 14: TSV Mining: Critical density in mining and changes to sustainable low cost production

Reducing throughput and density

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Page 15: TSV Mining: Critical density in mining and changes to sustainable low cost production

Is the drop in production required to

bring the system back to a stable

state? As always, this is site dependent, however in most cases it may

not be required. Why?

Unlike a set traffic system, the Critical Density Point and the

steepness of the production line is not fixed in a mining system.

Page 16: TSV Mining: Critical density in mining and changes to sustainable low cost production

Steepening the production lineT

hro

ughput

Process DensityCritical

Density

Some ways in which to steepen the

production line:

• Increase the operational strike or

area of the operation

• Increase the on bench capacity of

processes by combining like

processes, moving to larger fleets, or

by increasing performance of fleets

Throughput is increased

while maintaining the same

density

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Page 17: TSV Mining: Critical density in mining and changes to sustainable low cost production

Move the Critical Density Point to

the right

Thro

ughput

Process DensityCritical

Density

The critical density has

been moved to the right

allowing for an increase in

density and throughput.

Moving the Critical Density Point to the

right can be a very cost effective method

of increasing the throughput. The

methods of doing this are around

changing the environment and policies of

the operation:

• Enabling parallel processing

• Remove constraints that restrict

material flow

• Redesign to improve material flow

• Improve task balance in the operation

• Improved mining methodology

• Improved equipment mobility and

flexibility

• And many more…..

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Critical

Density

Page 18: TSV Mining: Critical density in mining and changes to sustainable low cost production

Moving the Critical Density Point when

already in a metastable or unstable state

Some of the options for moving the Critical Density point to the

right will temporarily increase the density of the processes.

If the area is already in an unstable state, these options have

the potential to temporarily restrict throughput for a period of

time, ie things will get worse before they can improve.

When attempting to shift the Critical Density Point when already

in an unstable state, options that do not temporarily increase

density should be implemented first.

Page 19: TSV Mining: Critical density in mining and changes to sustainable low cost production

Watching the Critical Density Point

Care must be taken to ensure that the movement of the Critical

Density Point does not shift to the left unnoticed.

There are factors which shift the point to the left which cannot be

avoided (eg increased depth and stripping as a mine progresses).

There can also be changes to an operation that at first do not

appear to have an effect, however they may have shifted the

Critical Density Point left far enough to move the operation into a

unstable state.

Even though a shift may have occurred, it may take years before

the consequences are felt.

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Page 20: TSV Mining: Critical density in mining and changes to sustainable low cost production

The Critical Density Point influence

on the operation

Depending on what side of the Critical Density Point an operation, or

parts of the operation sits on will have an impact on how it will react

to change.

Changes to the operation can include:

Changing processes

Adding processes

Reducing inventories

Increasing production

Changing operational policies

Implementing projects

A stable operation will react differently to change then one that is

metastable or unstable.

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Page 21: TSV Mining: Critical density in mining and changes to sustainable low cost production

The Critical Density Point can be

measured

Although this presentation is abstract, TSV Mining has actually

measured the Critical Density Point of operations.

By using customised models including all processes that occur in

the operation, as well as replication of the movement of material, it

can be shown when areas will not produce more, regardless of how

much more equipment is allocated to the area. Due to additional

interactions, the production will deteriorate when adding more

equipment to the area.

Options to change the steepness of the production line, and to the

location of the Critical Density Point can also be measured and

valued

Page 22: TSV Mining: Critical density in mining and changes to sustainable low cost production

Summary

An operation that moves from a stable to an unstable state, will

pass through a metastable state where production is higher and

costs are managed, however it is not sustainable.

There is a significant delay before the consequences of instability

effect the operation (it can take years for some operations).

Once unstable, operations have three options to get back to a

stable state:

1. Drop production and rebuild inventories and stabilise

2. Steepen the production line

3. Shift the Critical Density Point to the right

Changes to the operation (in particular operational policies) shift

the Critical Density Point significantly.

Operations will react differently to change, depending on where

they sit with respect to the Critical Density Point.

Page 23: TSV Mining: Critical density in mining and changes to sustainable low cost production

Always customised – no two sites are

the same

Thank you

Total System Value