Integrated PlanningA Technical Analysis Using BlendOpt

J. Whitacre, S. Schellenberg and A. Iorio Paradyn Systems Pty Ltd

www.paradynsystems.com

Holistic Processing Strategies

Strategic Decisions

feed blendingwhat to bypasshow to process

Opex

Washability

Mine Schedule

Plant Operating Capacities

Product Ash

Sales Targets

Feed Qualities

Pit

CHPP

Blending at

train loading

Blending in

Port Stockyard

Blending onto ship

ROM Blending

Stockp

ile

Blends

Pit Train Vessel

Value Drivers in a Coal Supply Chain

Coal Aging/Oxidation

Cut-points, feed blending, wash or bypass, operating

constraints

ROM StockpilesProduct Stockpiles Port Stockpiles

Rail constraints

Feed Blends

Integrated Planning Study with BlendOptModel Inputs

BlendOptOutputs

Case Study 1Rule-based Processing Strategy

Case Study 1Results

Rule-based Strategy

BlendOpt• 6.8% higher revenue• 50% less washing

Case Study 2Processing Strategies using Excel Solver

…Understanding the Limits of Optimisation in Excel

Case Study 2 Planning by Premium Product

Planning Heuristic: use Excel Solver to optimise in order of price premium

Case Study 2 Results

Product Ash Spec Price Premium over P3P1 Low 23%P2 Mid 15%P3 High 0%

Tonnage P1 (Mt) P2 (Mt) P3 (Mt) Total (Mt) Revenue ($M)Heuristic 1.03 0.70 0.55 2.28 160.0BlendOpt 0.52 1.86 0.00 2.38 168.5

…Over-washing caused by an over emphasis on premium product

Case Study 3 DMC Cut-Point Strategies

Objectives

Planning Decisions

• Consistent Met Coal Product Quality • Maximise Revenue

• Cut-point Settings per Seam • Product Blending

Case Study 3 Results

Baseline 5yr change in product VM ~ 2

BlendOpt

DMC cut-point = 1.45

Processing Product Consistency Revenue

9% increase over baseline

Other Model Considerations

• Dual-Stage DMC Circuits

• Different Seam Feed Rates

• Managing Data Uncertainty

Plant Modelling• ROM and Product Stockpiles

• Rail Capacity Constraints

• “Wash Only” Contracts

• 3rd Party Coal

• “Energy Based” Contracts

Supply Chain Modelling

Conclusions

Incremental Adjustments in:• Wash vs Bypass• DMC cut-points • Product Blending

Non-Trivial Improvements to:• Yields• Costs• Revenue

CAN DISCOVER

Holistic View of Processing Uncertainty drives calculated risks not conservativism

…BUT ONLY IF