Surface Mining: Roadmap to the Future
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- Mervyn Merritt
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1 Surface Mining: Roadmap to the Future February 2018
2 The process: What, How, Why Issues Challenges Constraints Assumptions Generalized solution areas What might be Alternative approaches DeepDive Prototype Design Alternative Process Flow Projects Resourcing Opportunity Statement Ideation Topics New Concepts New Solutions Existing Design Principles New Design Principles New Connections Integrated System Designs Roadmap Go to Insert Tab to insert footer 2
3 Discover Phase Identify the issues and establish existing design principles and constraints Process Each attendee was asked to write down a list of issues, challenges, constraints and assumptions present today in the surface mining industry. Teams then discussed their ideas and collectively came up with key themes. Issues Aversion We don t want to retry after we failed and want to stick to the past experiences we know and are comfortable with we are not challenging ourselves Social license and responsibility Knowledge of ore body Real time control of grade variability Material transport Too much non value waste Water use, availability, treatment/disposal Failure to engage diverse experience from other industries Sunk technologies already committed Power/Energy intensity, availability and usage Challenges IP limiting progress Market volatility Economic competitiveness Community expectations beyond LOM No one wants to put money into innovation Low margin business work just to survive, lowest cost producer wins Key Themes Constraints We design for longevity Commodity prices Vendors are viewed transactional, not as partners Infrastructure not in place for electrification Nowhere to test designs, innovation and process Incentive for long term improvement lacking from site. Who drives innovation? Lack of trust for mining Introducing innovative methods requires encouragement, money and cultural change Reliance on older technology Environmental considerations Assumptions Truck/Shovel mindset Bigger is better Trucking/Mining is batch We need to use water Mining has to be capital intensive Tailings are a non-valuable liability Long term options are fixed upfront Mine design leads Solution is more energy 3
4 Synthesize Phase Areas of opportunity and new design principles. Process Teams focused on areas of opportunity. They were asked to think about generalized solution areas, ideation topics and new design principles relating to issues addressed in the first phase, with no solution being too far-fetched. Key Themes Why only surface or underground not combined mining hybrid? Do we need to move waste? Can we repurpose it and remove waste? Why do we not have processing at the ore body? Reduce material movement minimize cost/energy What if we don t mine the ore to realize value? Have accurate knowledge of inputs (ore body, stockpile, equipment, bottle necks, reliability, environment) to enable plan What if the next great ore body doesn t have to be big? Combined mining and processing Integrated material processing (selective, specific, dynamic) Continuous/just in time mining value chain Understand impact of change and variability through value chain. Real time knowledge of ore and other parameters Integrated data and decision making Multi-owner by area mine site Different business models coordinated free agents Attract investors interested in long term returns and vision Freedom and means to try ideas and fail occasionally Solve collective problems that don t present competitive advantage Mines can be turned on and off 4
5 Envision Phase Ideation on what might be possible Process Teams envisioned what might be, alternative approaches, new concepts, new connections, they were encouraged to think of other industries and what solutions may have already been solved in a different application. Key Themes Material movement: minimize the distance/volume, separation and processing at the point of extraction (small/modular/simple/flexible/scalable) Orebody Characterization: geological model, accuracy what attributes, dynamic post mining Free energy/self-powered Connection to game/game theory groups HMI -> HPI (process) Continuous/just in time mining based on feed requirements, digital twin constantly updated to "keep it real" to actual operation Mine plan optimized based on higher strategic goals rather than equip KPIs, etc. Ultimate KPI becomes adherence to digital plan (not optimizing) - specific to department Reduced workforce via automation and remaining workers have excellent digital skills and eliminate operator variability Transparent real-time communication of environmental and social KPIs to communities and stakeholders (e.g. GHG emissions, E usage water discharge and treatment) No waste approach: benign tailings, closed loop supply chain/processing to recycling Automated and remotely managed, VR/AI sensor monitors Proactive collaboration with stakeholders to develop mine plan and KPIs on social license to operate - shared responsibility to set environmental/social goals 5
6 DeepDive Innovation Design Process 30min 4. Second Prototype Design 30mins 2. First Prototype Design 30mins 7. Present and voting 25mins 6. Final Prototype Design 5. Second Prototype Frenzy: present, feedback, record 30mins 3. First Prototype Frenzy: present, feedback, record 30mins 1. Design Challenge 5mins
7 Co-Create Teams designed a prototype of a mine, considering the key design elements and the current issues addressed in the previous phases. Key Design Elements Physical design elements Supply chain components Role of people Employers Community Investors Role of information Collaboration/cooperation Customer involvement Resource intensity Labour Energy/water Capital Footprint Development phase explore to close Business model/value sharing 7
8 Co-Create Team #1 Modular, small, compact mine Key Ideas Build a mine to last for 5 years, rather than 15 years using mobile/portable infrastructure. Downsize crush, sort, convey and the excavation infrastructure. Since the assets can be moved, a large pit is not required. Makes a small ore body viable using the right application of a small mine design. Utilize underground techniques. Lower capex makes an ore body profitable that was previously unprofitable. Distribute your variance to the right module for processing In pit staking of paste and tails deposit 45% of paste and tails Community operations centre: local community jobs - development of local digital suppliers and contractor Autonomous control of processes Real time ore characterization collect information to get a highly detailed attribute map of your ore body Understand what customers are demanding for product and change processing accordingly 8
9 Co-Create Team #2: Virtual rendition of the mine Key Ideas High knowledge of attributes and characteristics of the ore body using a new technology that is very easy to gather accurate information of the ore body and value Business model takes input from stakeholders owners, investors, supplies, customers Ore body and business model combined in digital twin to produce a modular and configurable approach Community input around reclamation Assemble processes, energy, transportation, excavation, recycle and waste modules to handle the ore in the most efficient way possible. Modules are small and at the mine site, minimizing transportation of ore and waste Remote operations, few local workers in semi skilled positions with support from experts and senior maintenance workers via the cloud. Chance for remote operators to become subject matter experts Sensors on everything. Data is fed into the data management system and then into operating models to enable operations of the facility Sell the product in advance. Use of blockchain to manage risk in operation Process tailings to collect alternate product coming from the waste 9
10 Co-Create Team #3: Super computer Brian Super computer with a twin computer that does simulations. Provides quality and structure in real time, the tool that does all the thinking for you with real time value The computer makes the plan that tells you the optimum production performance goal is to follow the plan Brian comes up with Brian is the mine and the physical is the twin. Information to feed the mine Shareholder value up front Key Ideas 10
11 Next Steps TBD 11
12 Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. The information contained herein is not intended to substitute for competent professional advice.
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