PROCEMIN 2010

CONCENTRATOR MANAGEMENT

AND OPTIMIZATION

ROBERT DUNNE Group Executive- Metallurgy Lead Technical Advisor

Newmont Mining Corporation Denver, USA

Concentrator Management
QUOTE There are no manuals or handbooks for budding mill superintendents or process plant managers. Most who obtain this level of responsibility have gained their training from watching the good and bad of their predecessors and the successful ones have themselves graduated from the school of hard knocks R. Francis and G Cooper Managing Mineral Processing Plants in Australia-Tips and Pitfalls 2007

TEN IMPORTANT ITEMS

FRANCIS AND COOPER

Assemble a good team Staff retention Provide regular performance reviews/ feedback Be aware of the big picture Acting department roles Managing upwards Statutory and other responsibilities Setting an example of pride and passion Run effective meetings Challenge the status quo Working with other departments The future-generation X and Y

Three Important Things To Look After

FRANCIS AND COOPER

The People The Plant The Ore

Concentrator Management What is required?

People

Ore

Tailings
Water

Consumables Water

Power

Maintenance Parts

Concentrate Bullion
12/29/2010 Concentrate Management

Samples
5

CONCENTRATOR MANAGEMENT AND OPTIMIZATION

BACKGROUND

In 2004 the metallurgical group of Newmont Australia Ltd decided to develop a PLANT MANAGEMENT SYSTEM as a means to help with onsite CONTINUOUS IMPROVEMENT. The approach was to assess all aspects of plant management using a SET OF STANDARDS and comparing individual site performance against the standards by means of a questionnaire. The ASSESSMENT SYSTEM provides for a rating against the standards and allows for either self or third party assessment

CONCENTRATOR MANAGEMENT

PURPOSE
The management system is a driver for continuous improvement and is based on an evaluation against a set of standards.

STRUCTURE OF MANAGEMENT SYSTEM

Key Components (areas of focus) Standards for each component

Assessment against the standards Accountability of the process

Documentation and controls

CONCENTRATOR MANAGEMENT FOUR KEY AREAS OF FOCUS

1. Metallurgical Department Management

2. Metallurgical Performance
3. Metallurgical Accounting 4. Maintenance of the Process Facility
(not discussed in this presentation)

CONCENTRATOR MANAGEMENT OUTLINE OF STANDARD

Purpose of standards (guidelines)
Scope Definitions Standards details Assessment Accountability (metallurgical manager, mine manager) Links to other corporate standards

Reference list

4. ASSESSMENT

DISCUSS LATER IN THE PRESENTATION

CONCENTRATOR MANAGEMENT

DETAILS OF THE INDIVIDUAL MANGEMENT COMPONENT

CONCENTRATOR MANAGEMENT

1. METALLURGICAL DEPARTMENTAL MANAGEMENT

a. Health, Safety and Loss Prevention b. Environmental Performance c. Community Relations d. Training e. Business Planning Physical Production Operating Costs Capital Expenditure f. Best Practice

HIGH LEVEL CORPORATE STANDARDS

1a. Health , Safety & Loss Prevention (HSLP)

(SOPS, JSAS, Permits, Training)

1b. Environmental Performance (Noise, Dust, Water, Energy, Tailings, Chemicals) 1c. Community Relations (Plant tours, school/university interaction)

1e. TRAINING AND SUCESSION PLANS

PURPOSE To increase the competency of the workforce (People are the most important resource) Organizational chart Job description for each position COMPENTENCE MATRIC FOR EACH LEVEL TRAINING SCHEDULE SUCESSION PLAN

1e. BUSINESS PLANNINGPHYSICAL PRODUCTION

Delivery of Ore Tons and Grade Metallurgical department receives regular copies of the mine production schedule that includes ore tonnage, ore type and ore grades.

Plant availability

Maintenance schedule developed for annual production period and adjustments are provided in a timely manner
LONG TERM PLANNING Future ore test program (2 year plan) (hardness, recovery, consumables)

1e. BUSINESS PLANNING OPERATING COST (Financial Planning)

Written procedures for determining consumable usage Bulk consumable usage determined by change in stocks (calibration procedures) Power usage (annual, peak loads etc) Monitoring 1. Up to date analysis of major cost elements (charts/trends) 2. Monthly explanation of cost variances 3. Fixed and variable costs analysis

1e. BUSINESS PLANINING CAPITAL EXPENDITURE

Schedule with expenditure estimates for equipment replacement and process improvement

1f. BEST PRACTICES

No loss time injuries for last two years No reportable injuries for the past year No reportable environmental incidents in the past two years Use of control charts to monitor performance Ore milled rate within 3 % of budget Metal recovery within 1% of budget Operating cost within 3% of budget Actual capital expenditure and timing in line with budget

CONCENTRATOR MANAGEMENT

2. METALLURGICAL PERFORMANCE
a. b. c. d. e. Metallurgical Control Process Control Modeling and Simulation Plant Optimization Best practice

2a. METALLUGICAL CONTROL

a. Daily information (KPIs)-throughput b. Weekly information (KPIs)-consumables c. Monthly information (KPIs)-availability e. Daily and Monthly Testwork Particle size analysis Flotation/leaching tests Mineralogical and diagnostic tests Trend analysis Consumable QA/QC

2b. PROCESS CONTROL

Stabilizing Control
1. Up to-date and to industry standards 2. Provide smooth and consistent operation

Expert System Optional

1. Service and support 2. Training

2c. MODELING AND SIMULATION

PURPOSE Allows for technical optimization and preparing for major ore changes

Models are appropriate

Simulation techniques are appropriate Software is recognized within the industry as suitable for the task. Documentation and sign off for any changes

Training schedule and risk profile with alternatives.

2e. PLANT OPITMIZATION

No process or equipment is modified without a cost benefit analysis Modifications require engineering sign off
Data collection and remodeling after change with appropriate updates internally and externally.

BEST PRACTICE Can explain metallurgical results and provide technical support Systematic and ongoing process improvement programs Third party review on a regular basis

CONCENTRATOR MANAGEMENT

3. METAL ACCOUNTING
a. Measurement of Mass b. Measurement of Density and Volume c. Sampling d. Sample preparation e. Assaying f. Metal balancing g. Best practice

METAL ACCOUNTING STRUCTURE

IN

ACCUMULATION/LOSS

OUT

Realization Adjustment

3a. Mass Measurement

1. Weightometers and weighbridges are suitable for the task and are located to maximize accuracy (CE requirement) 2. Appropriate calibration procedure and frequency of calibration. 3. Appropriate cleaning procedure and frequency of cleaning. 4. Appropriate documentation for procedures and recording calibration information.

5. Appropriate moisture sampling and determination for feed (SAG??), concentrate and tailings
6. Training schedule.

3b. Density and Volume Measurement

1. Appropriate procedures for determining ore/concentrate relative density, water density and other materials (ie activated carbon) 2. Appropriate location and calibration of flow measurement devices. 3. Appropriate measurement of stockpiles if required. 4. Appropriate calibration and measurement of pulp density and % solids. 5. Appropriate documentation for procedures and recording calibration information

6. Training schedule.

3c.

Sampling

1. Appropriate sampling systems (CE requirement) 2. Sample quantity and frequency are appropriate 3. Procedures for operation, cleaning and basic maintenance of samplers 4. Appropriate procedures for manual sampling (inventory measurements) 5. Regular cleaning and recording 6. Training and schedule 7. Documentation

3d. Sample Preparation

1. Samples are labeled appropriately
2. Appropriate measures to avoid contamination (eg high and low grade materials) 3. Appropriate cleaning and maintenance of sample preparation equipment (eg. buckets, filters, dryers and trays) 4. Appropriate sub-sampling (integrity) 5. Appropriate housekeeping and dust abatement. 6. Training

3e.

Assaying

1. Appropriate labeling
2. Appropriate sub sampling prior to and after pulverizing 3. Appropriate pulverizing equipment, procedures, cleaning and particle size determination 4. Procedures to avoid contamination. 5. Appropriate analytical techniques and standard practice 6. Appropriate QA/QC system with the use of appropriate standards and relabeled recycle of production samples. 7. Appropriate documentation and training 8. Appropriate laboratory manage system (data capture/data transfer) Normally all of the above are covered in ISO systems

3f.

Metal Balancing

Data assembled and developed into information for reporting

1. Appropriate procedures for determining metal-in-circuit

2. Appropriate method to determine metal input and output (mass and assay)
3. Appropriate system to record smelter/refinery metal out-turns 4. Appropriate metal balancing procedure and methodology to included out-turn discrepancies 5. Appropriate and compliant software 6. Training

3g.

Best Practice

1. Control charts are used to monitor accuracy of measurements (eg weightometer accuracy concentrate grade and tonnage etc) 2. Method for testing discrepancies highlighted in control chart 3. Third party review on a regular basis, at least once a year

4. ASSESSMENT SYSTEM
Assessment using a questionnaire
Questionnaire separated into 4 key components Each component is subdivided into sections with a number of detailed questions. A weighting and point system is used for scoring A roll up approach is used to get a final single rating Assessment either by self or third party

CONCENTRATOR MANAGEMENT ASSESSMENT

Rating is based on 5 point (star) scale 1. Not addressed, improvement expected 2. Partially addressed, improvement required 3. Good practice, minimum required 4. Very good performance 5. World best practice, excellent performance Review either by self-assessment or third party

ASSESSMENT PROCEDURE

ASSESSMENT PROCEDURE

QUICK REVIEW OF MANAGEMENT SYSTEM

Key Components (areas of focus) Standards for each component

Assessment against the standards Accountability of the process

Documentation and controls

CONCENTRATOR OPTIMIZATION

OPTIMISATION
PURPOSE- TO BE MORE PROFITABLE HOW??
INCREASE REVENUE 1. Metal recovery 2. Throughput DECREASE COSTS

1. Consumables 2. Throughput

OPTIMISATION-EXAMPLES

RECOVERY

THROUGHPUT

OPTIMISATION-EXAMPLES

RECOVERY IMPROVEMENTS EXAMPLE

AIM OF THE PROJECT

TO IMPROVE FLOTATION GOLD (AND COPPER) RECOVERY WITHOUT CHANGING FLOTATION CONCENTRATE GRADE

COPPER-GOLD FLOTATION PLANT Modal Analysis of Flotation Tailings

Flotation Concentrate Information

F Deportment by particle size

OPTIMISATION-FLOTATION
Cadia Flotation Circuit.

Convention three stage rougher and cleaning circuit with regrind of rougher scavenger concentrate. Also has Flash flotation with separate coarse cleaners

TESTWORK PROGRAM

Monthly size by size assay data over a two year period available for final flotation tailings and concentrates

Reagent testing at laboratory and plant scale to evaluate collectors, modifiers and frothers to enhance composite particle recovery from the rougher-scavenger flotation circuit Regrind and flotation tests on the final concentrate and coarse composites (screened) from the rougher-scavenger concentrate to assess flotation recovery and grade of concentrate.

Modifications

Modifications to Flotation Circuit-high level New reagent suite for rougher-scavenger circuit (AP3418A) Rougher-scavenger concentrate and Flash coarse cleaner concentrate reground prior to final cleaning Dewatering cyclone in flotation circuit to help with water balance

Plant results after Plant Modifications

Final Concentrate Grade

Tailings Comparison-Modal Analysis

Overall benefits after modifications-long term

Gold recovery increased 7%

Copper recovery increased by 3%

Increased final copper concentrate grade and more consistent to 24.5 % Cu Payback in less than 20 months

OPTIMISATION-EXAMPLES

THROUGHPUT EXAMPLE AIM- TO INCREASE SAG MILL THROUGHPUT

METHODOLGY-MINE TO MILL

Traditional Mine Site Optimisation Based On Individual Departmental Performance

Objectives of Mine to Mill

Reduce variability and so improve productivity (increased throughput and more consistent feed)
Provide reliable prediction of overall performance on a daily, weekly and annualized basis (meet budget-metal production and costs)

Batu Hijau Overview

Mill feed particle size distribution strongly influences mill throughput

7000 6500 80 70

Total SAG TPH

6000 5500 5000 4500 4000 3500 3000 50 55 60 65 70 75 30 20

50 40

SAG Feed Size F80 (mm)

SAG TPH RQD
Slide 56

RQD (%)

60

Mine-to-Mill Methodology

Control Feed Particle Size

How?? Cook book approach for blast hole spacing and powder factor developed for each rock type (including waste-coarser product and lower cost)

Results of M2M at Batu Hijau

Average sustainable throughput increases:

7% in soft domains 17% in hard domains Good Mill Throughput Forecast Model

+/- 3% on an annual basis

When Silos Exist

Mine to Process Mining Benefits

There are always anomalies

THANK YOU

References
Osvaldo, B. and Kennedy, J.P., 1995, Measuring, Managing and Maximizing performance of Mineral Processing Plants, XIX IMPC, San Francisco, 225232 Herbst, J.A. and Pate, W.T., 1995, Plantwide Control: The Next Step in Mineral Processing Plant Optimization, XIX IMPC, San Francisco, 211-215 Johnson, G. and Munro, C., 2010, Improving Mining and Minerals Plant Performance: Operations and Maintenance Working Together Using New Information Technology, CIM Bulletin, 102 (1119). Cesnik, F., Hart, S., Dioses, J., Clements, B and Dunne, R., 2005, Low-Grade Concentrator Regrind Circuit Upgrade at Newcrests Cadia Valley Operations, Centenary of Flotation Symposium, AusIMM Brisbane, 815-820. Dunne, R. and Valery, W., 2007, Managing Mine to Mill (M2M), IQPC Mineral Processing Conference, Brisbane, Nov. Fuenzalida, R. E. Economic Operations Management in Copper Concentrators. Moly Corporation.