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Page 1: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!
Page 2: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Proud to work for.. Our Vision - the de facto Global Standard for Enterprise Optimisation

Our Mission – Transforming economic value in mining globally!

Page 3: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Increasing NPV by 5-35%!

Real Cases Last 2 years!

Page 4: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Blasting

Geo-metallurgy

Activity Based Costing

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Dependability

Legend Best Practice Rating

Not Applied

Partial

Applied

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct Asset Applying

Best Practices 5-35% more NPV

Opportunity to generate Strategic Options

Asset today

Software Tools Rating

Strategic Software

Scheduling

Sustainability Rating

Social Impact

Water

Energy

Tailing & Waste

It’s a MONEY MINE!Whittle Best Practices!

Page 5: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡  Managing their asset in silos ¡  Focussing on the tonnes and

ounces ¡  Planning mines from the

bottom up

¡  Waiting till the commodity cycle goes down before slashing costs in the operation, hiring McKinsey, Proudfoot

Owners who create value are…. ¡  Managing their assets a an

integrated whole ¡  Focussing on the CA$H

¡  Planning mines using PROVEN technologies to plan top down

¡  Focusing on mechanisms to generate margin

Page 6: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡  Outsourcing the entire

development of a mine to people who have no interest to see it deliver the benefits for the owner

¡  Only concerned about returns to shareholders i.e. Pascua Lama

¡  Not using technology to enhance productivity or using it within the technical silos

Owners who create value are…. ¡  Embedding the owner’s voice

to shape the projects economics

¡  Working through the trade-offs with other stakeholders i.e. communities, the environment, governments NGOs

¡  Embracing in a holistc way appropriate technologies around blasting, comminution, planning, geo-met, blasting

Page 7: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!Habits Destroy & Create Value!

Page 8: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!Habits Destroy & Create Value!

Page 9: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!Habits Destroy & Create Value!

Page 10: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

It’s a MONEY MINE!

MONEY has a time value!we want it NOW!

Bottlenecks prevent us !Getting the Money NOW!!

Page 11: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Why Simultaneous Optimisation!Enterprise Optimisation!

Accelerates CASH!

Identifies LOM Bottlenecks!

Page 12: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Why Simultaneous Optimisation!Enterprise Optimisation!

June 2013

Page 13: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Defining the Optimised Cases FOCUS on the largest opportunities for value enhancement

Pits •  Re-optimised for net value based on CV, Sulphur and activity based

costing, focussed on system bottlenecks like ports Phases •  Possible for certain mines only Schedule •  Flexible mining by site to meet port limits Cut-off •  Prioritising high CV, low Sulphur over low CV, high S material – dynamic

value ranking mechanism utilised Stockpiling and Logistics •  active, but we did not isolate the value or focus on improving these

BANPU - Our Focus?!

Page 14: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Design2011  

Phase  2  in  blue  

Phase1  in  purple  –  area  1  

Phase1    in  purple  –  area  2  

Phase1    in  purple  –  area  3  

35⁰  Overall  slope  angle  

Phasing Example!

Page 15: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Key Results •  Improved cumulative cash flow from 2013 to 2023

nearly doubling cash flow in year 1 •  14% NPV uplift over the base case •  This was without spending any additional capital

over what was stipulated in the Base case. •  Coal price the same over LOM •  Mine permitting and license to operate conditions

were incorporated into the scheduling constraints. Results generated by the following mechanisms: •  Pit CV content – higher CV blocks attracted a

reward, lower CV blocks a penalty •  Sulphur content – higher S blocks attracted a

penalty, lower S a reward. •  Blending was used to meet product requirements

and prioritise the mining shape selection and scheduling.

•  Much of the effort was focused on the Mining Activity Based Costing models and logistics models.

BANPU Results!

Page 16: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Whittle Best Practice – Base Case!Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Predictability

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct

Software tools Applied

Rating

Strategic software

Scheduling

Legend Best Practice Rating

Not used

Partial

Used

Opportunity to generate Strategic Options

BASE BASE

Page 17: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Whittle Best Practice - APPLIED!Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Predictability

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct

OPTIMISED

Software tools Applied

Rating

Strategic software

Scheduling

Legend Best Practice Rating

Not used

Partial

Used

Opportunity to generate Strategic Options

BASE CASE

Page 18: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

A simplified network

The Opportunities!

BYPASS

Wilpinjong

Wambo(fixed  feed)

Product  112%Ash

Product  213%Ash

Product  315%Ash

Product  422%Ash

Product  527%Ash

CHPPASSET 1

ASSET 2

Page 19: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

The result is a potential NPV uplift of AU$298M over the LOM. This is a 19.3% increase over the Base case NPV. There is a potential extra AU$150M in net cash flow over the next 5 years, by leveraging the unused capacity in the wash plant and changing the product mix (1 & 4).

Opportunity 1 !

Page 20: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Key Results [Published Nov 14 2013 www.avantimining.com] •  Significant improvement in projects economics for the FS Update of the Kitsault FS •  Signed off by AMEC’s QP •  “Projected cash costs are in the lowest quartile of primary molybdenum producers worldwide.”

Mark G Premo CEO Results generated by the following mechanisms: •  Fully variable elevated cutoff grades during the life of mine paired with the dynamic use of the

ore stockpiles. •  Implementation of a flexible mineral processing regimen based on grind-throughput-recovery

(GTR) relationships for the three main rock types contained in the deposit. •  Selection of the ultimate pit and internal operational phases incorporating the results of the

Enterprise Optimization study. •  Optimization of equipment selection and layout in the process plant. •  Optimization of the grinding circuit to maximize throughput •  Incorporation of improvements to the silver recovery circuit. •  Rationalization of the initial and sustaining capital requirements, including optimization to the

project infrastructure and tailings management facilities

AVANTI Results!

Page 21: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Enterprise Level of Optimisation

Optimised Sustainability

$

Value Potential

None

$$$

COAL Existing LOM Plans

Partially Optimised Gemcom Whittle

Enterprise Optimisation

10 Mechanisms

Typical Optimisation Journey!

Page 22: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Alliance Partners!Global

Africa Asia Australia Nth America

Sth America

Page 23: Proud to work for.. - Mine Africa - Whittle Consulting.pdf · Proud to work for..! Our Vision - the de facto Global Standard for Enterprise Optimisation! ... Gemcom Whittle! Enterprise!

Want to learn more?!Money Mining & Sustainability Seminar Fremantle February, 2014!London March, 2014!Johannesburg April, 2014!Lima ! May, 2014!Johannesburg May, 2014!! www.whittleconsulting.com.au/events!

!