proud to work for.. - mine africa - whittle consulting.pdf · proud to work for..! our vision - the...
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Proud to work for.. Our Vision - the de facto Global Standard for Enterprise Optimisation
Our Mission – Transforming economic value in mining globally!
Increasing NPV by 5-35%!
Real Cases Last 2 years!
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!
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
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
It’s a MONEY MINE!Habits Destroy & Create Value!
It’s a MONEY MINE!Habits Destroy & Create Value!
It’s a MONEY MINE!Habits Destroy & Create Value!
It’s a MONEY MINE!
MONEY has a time value!we want it NOW!
Bottlenecks prevent us !Getting the Money NOW!!
Why Simultaneous Optimisation!Enterprise Optimisation!
Accelerates CASH!
Identifies LOM Bottlenecks!
Why Simultaneous Optimisation!Enterprise Optimisation!
June 2013
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?!
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!
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!
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
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
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
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 !
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!
Enterprise Level of Optimisation
Optimised Sustainability
$
Value Potential
None
$$$
COAL Existing LOM Plans
Partially Optimised Gemcom Whittle
Enterprise Optimisation
10 Mechanisms
Typical Optimisation Journey!
Alliance Partners!Global
Africa Asia Australia Nth America
Sth America
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!
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