MINE PLANNING

REPORT
MINE PLANNING AND OPTIMISATION USING
NPV METHOD

MINE PLANNING AND OPTIMISATION

Table of content
Table of content ...................................................................................................................................... 1
OPTIMAL MINING SYSTEM .................................................................................................................. 2
Integrated strip mining ........................................................................................................................ 2
OPTIMUM ANNUAL PRODUCTION RATE DESIGN ................................................................................... 2
Methodology ....................................................................................................................................... 2
Production Scheduling And Net Present Value Optimization ............................................................. 3
MINE DESIGN AND EXTRACTION PLAN ................................................................................................... 5
Mine layout design (Assume good coking coal specific gravity of 1.6t/m3) ....................................... 5
Overburden stripping: ......................................................................................................................... 5
Coal seam stripping: ............................................................................................................................ 6
Unit Operation equipment design....................................................................................................... 6
SPOIL PILE REHABILITATION PLAN ........................................................................................................ 11
Short term plan ................................................................................................................................. 11
Medium and long term plan.............................................................................................................. 11
SOCIAL POLITICAL AND ENVIRONMENTAL IMPACTS OF MINING ......................................................... 12
Environmental Impacts ..................................................................................................................... 12
Social Impacts .................................................................................................................................... 13
Political Impact .................................................................................................................................. 13
REFERENCES .......................................................................................................................................... 14

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OPTIMAL MINING SYSTEM
Coal mining can either be done by a surface or an underground mining method. The choice of
working with surface mining is best if conditions are favorable for its feasibility as they are
economically cheaper.REF The choice of surface mining is supported by the relatively low
depth of coal seam and overall low stripping ratio value.

SR = Volume of Waste/Volume of ore;

SR = H/h; SR = 1.7: 1 (Given that areas are identical)

Surface mining of coal can either be Area/Dragline method, Truck and Shovel or an
integrated method that combines both. These methods are all variants of strip mining. Strip
mining is the most adequate surface mining method as it’s suitable for shallow horizontal or
near horizontal coal deposits with low stripping ratio value. Mining will be done using the
integrated strip mining method. The method and its advantages are described below:

Integrated strip mining

As its name indicates it combines the conventional Area dragline mining system to the Truck
and shovel method. Successive strips of deposits are mined with the use of dragline for the
removal of thick overburden after fragmentation operation . Then a fleet of truck and shovels
do the mining of the coal seam. Prior to each strip top soil is removed with the use of scrapers
for later reuse during reclamation phase. The determination of the width of the strips depends
on the capacity of the truck and shovels operating at the coal seam level as well as the reach
of the dragline to be operated. This method presents several advantages to using either method
individually.

 Reduced operating cost given that the fleet of trucks and shovel is reduced as most of
the waste stripping is done with the dragline that operates at a low cost;
 Higher production rate and flexibility in production;
 The higher working rage of the dragline enables easy removal of overburden as
compared to shovels.
 The lack mobile flexibility of draglines are compensated for by the fleet of truck and
shovels
 Reclamation activities can be carried out at the same time with mining, as dragline
wastes are automatically dropped in the previous strip.

OPTIMUM ANNUAL PRODUCTION RATE DESIGN

Methodology
Taylor formula for annual production rate from ore tonnage is used to estimate an initial
production rate that is then optimized with the net present value using the estimated mine life
span.

- Production rate (t/day) = 0,0143 (Tonnage)^(0,75);

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Tonnage = 109Mt; Production rate = 15 254.78t/day

- Mine life (years) = Tonnage/( production x yearly operating days );

Let’s assume a 350 working days.

- Mine life = 20.4 years approximately 21 years

Production Scheduling And Net Present Value Optimization

We will design using the constant stripping ratio method, from the overall stripping ratio
using annual ore and waste tonnage rates we select the best schedule from the optimal net
present value.

CASE 1: NPV using an annual schedule ratio of 1.7 wastes: 1 coal

Instantaneous stripping ratio SR is 1.7: 1; we need to determine annual (350 working days)
tonnage of ore and waste to be striped

- Annual coal production rate (15 254.78 x 350) = 5.3M t/year;

- Annual waste stripping rate (5.3 x 1.7) = 9.07M t/year

We assume cost of coal and ore stripping identical

Let cost per ton be represented by: A$, and price per ton: 3A$. Discount of 15%

Net Value = Annual sales – Annual revenue

Annual sales = Unit price x Annual coal production

Total stripping cost per year = Unit cost x (production + waste)

- Annual sales per year ( 3A x 5.3 ) = 15.9A M$

- Stripping cost per year ( A x 14.37 ) = 14.37A M$
- Net Value ( 15.9 – 14.37) = 1.53A M$

The net value stays constant throughout the life of mine since the schedule is constant

∑( )

NPV = 0.482A M$

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CASE 2: NPV using an annual schedule ratio of 2.5 wastes: 1 coal
Instantaneous stripping ratio SR is 2.5: 1; we need to determine annual (350 working days)
tonnage of ore and waste to be striped

- Annual coal production rate (15 254.78 x 350) = 5.3M t/year;

- Annual waste stripping rate (5.3 x 2.5) = 13.25M t/year
We assume cost of coal and ore stripping identical

Let cost per ton be represented by: A$, and price per ton: 3A$. Discount of 15%

Net Value = Annual sales – Annual revenue

Annual sales = Unit price x Annual coal production

Total stripping cost per year = Unit cost x (production + waste)

- Annual sales per year ( 3A x 5.3 ) = 15.9A M$

- Stripping cost per year ( A x 18.55 ) = 18.55A M$
- Net Value ( 15.9 – 18.55) = -2.57A M$
-

∑( )

The net value stays constant throughout the life of mine since the schedule is constant

NPV = -0.82A M$

CASE 3: NPV using an annual schedule ratio of 1.5 wastes: 1 coal

Instantaneous stripping ratio SR is 1.5: 1; we need to determine annual (350 working days)
tonnage of ore and waste to be striped

- Annual coal production rate (15 254.78 x 350) = 5.3M t/year;

- Annual waste stripping rate (5.3 x 1.5) = 7.95M t/year
We assume cost of coal and ore stripping identical

Let cost per ton be represented by: A$, and price per ton: 3A$. Discount of 15%

Net Value = Annual sales – Annual revenue

Annual sales = Unit price x Annual coal production

Total stripping cost per year = Unit cost x (production + waste)

- Annual sales per year ( 3A x 5.3 ) = 15.9A M$

- Stripping cost per year ( A x 13.25 ) = 13.25A M$
- Net Value ( 15.9 – 13.25) = 2.65A M$
-

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 ∑( )

The net value stays constant throughout the life of mine since the schedule is constant

NPV = 0.847A M$

SUMMARY

ISR 1.7 2.5 1.5 1.4 1.25

NPV 0.482A -0.82A 0.84A 1.016A 1.269A

NPV reduces with increase ISR (working stripping ratio) and increases with reduction in
stripping ratio. Also increase could also be achieved by an increase in annual production rate
but this will imply increasing the production cost

The optimal schedule selected is 1.4:1 with a NPV of 1.016A M$ as low values of ISR will
lead to reduction in operating space and increase pressure on production resources hence an
indirect increase in cost of production.

MINE DESIGN AND EXTRACTION PLAN

Mine layout design (Assume good coking coal specific gravity of 1.6t/m3)
The mining configuration is made of a series of successive strips with widths of 40m to
accommodate coal extraction and haulage with shovels and trucks as well as dragline reach.
Each strip is mined with a constant stripping ratio of 1.4:1 meaning the overburden stripping
must lead coal stripping by a factor of 0.4 units.

The strips are aligned in the direction of longest length of the coal sedimentary basin and
progress in a direction perpendicular to the initial strip. The cut will have two levels, the first
level for overburden H = 11.5m while the second H = 7.0m for coal mining with near vertical
walls.

Overburden stripping:
This involves removing the 12m thick overburden to expose the coal seam. It starts with top
soil removal with the aid of bulldozers and scrapers along the designed strip length to be
reused later for reclamation or rehabilitation purpose. Once considerable length is cleared,
rock fragmentation follows with drilling and cast blasting. The rock fragmented overburden
removal can commence with dragline positioning itself on spoil pile stripping spoil and
dropping in the previously mined strip. Once a proper waste strip lead factor of about 0.4 is
reached, coal mining can commence.

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Coal seam stripping:
An initial access ramp is created is created with an 8% grade to access coal seam, the seam is
then mined by method of frontal approach to maximize number of shovels that can operate at
a single period in time.

Once a strip completely mined of coal the cycle starts again with the new strip.

Unit Operation equipment design

a. DRILL AND BLASTING

Assumption: Specific gravity of coking coal: 1.6t/m3, Burden x spacing: 3.5x4.5; Atlas
Copco Roc 460Hf 152mm 30m/h rate Drilling machine

Recall: Coal annual production: 5.3Mt, ISR: 1.4: 1

Expected Annual Drilling Production (EADP): Expected Number of holes drilled per year
to achieve required production

- Volume of coal produced annually (Vc) = SG coal x Annual coal production

Vc = (5.3x1.6)M m3;
- Volume of waste per year (Vw) = ISR x Vc ; Vw = 1.4(5.3x1.6) Mm3; Vw = 11.8Mm3
- Volume of waste per hole (Vh) = BxSxH ; Vh = (3.5 x 4.5 x 11.5) m3; Vh = 181.13m3

; EADP = 65 544 Holes/year

Drilling Machine Annual Production (DMAP): Number of holes drilled per year by Atlas
machine.

Annual working time

Annual working days = 350, Hours per shift = 8h, Average job efficiency 50min/h, Pause
time per shift = 0.5h.

We will have 50 Weeks of 7days per year.

21 Shift per week of 8hr will lead to a (50x21) shift per year i.e. 1050 Shifts

- Production time per shift (Ps) = Operating time x Job efficiency

Operating time (Ot) = Full shift – Pause periods; Ot = 8 - 0.5; Ot = 7.5h. Ps = 7.5 x 50;
Ps = 375 min Or Ps = 6.25h

Annual working time (AWT): 1050 x Ps, = (1050 x 6.25) h; AWT = 6562.5h

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Drilling machine rate : 30m/h ,

DMAP = =

Drilling Machine Annual Production (DMAP) = 16406.25 Holes per year

Minimum number of drilling machines (MND)

MND = , MND = ; MND = 3.99 Approximately 4 Drilling machines

needed for achieving desired production.

b. WASTE STRIPPING BY DRAGLINE

Recall: Annual working time = 6562.5h for an 8hr shift; Bank Volume of waste per year
(Vw) = 11.8Mm3

Designed Annual Production = 11.8Mm3

Given that we are using a single dragline we will from the designed annual production derive
the desire production capacity of the dragline knowing the total working hours

Dragline required Production rate per hour (Dr)

Dr = ; Dr = ; Dr = 1798 m3/h

Bucket size capacity determination

Theoretical production 1798m3, Period 1h. We assume the following required working
conditions: Minimum cycle time i.e. 1min, Operational Efficiency: 0.8; Bucket fill factor 0.8

Theoretical cycle per hour: ; = 60cycles per hour

Actual cycles per hour = Theoretical cycles x operating efficiency = 60 x 0.8

Actual cycle per hour = 48 cycles per hour

Material handled per hour = Hourly production / Actual cycle per hour
Material handled per hour = 1798 m3/48 cycles per hour; = 37.5m3

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Bucket capacity = Material handled per hour / Bucket fill factor;
Bucket capacity = ; Bucket capacity = 46.8m3 Approximately 50m3 For full

coverage.

c. COAL SEAM MINING

- Loading Design(Shovel)

Recall

Annual coal production: 5.3Mt; Annual working days = 350, Hours per shift = 8h, Average
job efficiency 50min/h, Pause time per shift = 0.5h.

We will have 50 Weeks of 7days per year. 21 Shift per week of 8hr will lead to a (50x21)
shift per year i.e. 1050 Shifts

Shovel required Production rate per hour (Ph)

Volume of coal produced annually (Vc) = SG coal x Annual coal production

Vc = (5.3x1.6)M m3;

Ph = ; Ph = ; Ph = 1292.1 m3/h

Theoretical cycle per hour: ; = 60cycles per hour

Period 1h. We assume the following required working conditions: Minimum cycle time i.e.
1min, Operational Efficiency: 0.8; Bucket fill factor 0.8

Actual cycles per hour = Theoretical cycles x operating efficiency = 60 x 0.8

Actual cycle per hour = 48 cycles per hour

Material handled per hour = 1292.1 m3/48 cycles per hour; = 26.9m3

Bucket capacity = ; 33.625m3 Approximately 35m3

- Hauling(Trucks)

Annual production: 5.3Mt

For a Period of 1h. We assume the following required working conditions: Minimum cycle
time i.e. 20min, Truck availability: 50min/h and 100% coverage for a 150t truck.

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Total cycle per hour = 50/20 ; Total cycle per hour = 2.5

Production per hour = 2.5 x Payload (150) ; Production per hour for a truck = 375t

Annual working time = 6562.5

Total production per truck = 375 x 6562.5; Total production per truck = 2 460 750t per year

Number of trucks = ; Number of trucks =

Number of trucks = 2.1 Thus for full coverage and maintenance purposes we add an extra
truck

Total number of trucks = 3

d. Top soil removal

Loading excavator

Volume of soil stripped per year (Vt);

Vt = Hs x A (Hs : Topsoil thickness, A : Area stripped per year)

A = Volume of coal / Coal thickness; A = ; A = 1 211 428m2/year

Vt = 1 211 428m2/year x 0.5m; Vt = 605 714.28 m3/year

Production per hour (Ph)

Ph = ; Ph = ; Ph = 92.3m3/h

For an annual working days = 350, Hours per shift = 8h, Average job efficiency 50min/h,
Pause time per shift = 0.5h. Minimum cycle time i.e. 1min, Operational Efficiency: 0.8;
Bucket fill factor 0.8

Actual cycles per hour = Theoretical cycles x operating efficiency = 60 x 0.8

Actual cycle per hour = 48 cycles per hour

Material handled per hour = 92.3 m3/48 cycles per hour; = 1.92m3

Bucket capacity = ; 2.4m3 Approximately 3m3 For an 80% coverage,

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Hauling(Trucks)

Volume of material per hour = 92.3 m3/h

For a Period of 1h. We assume the following required working conditions: Minimum cycle
time i.e. 20min, Truck availability: 50min/h and 100% coverage for a 15m3 truck.

Total cycle per hour = 50/20 ; Total cycle per hour = 2.5

Production per hour = 2.5 x Truck capacity (15m3) ; Production per hour for a truck = 37.5m3

Number of trucks (N) = ; N= ;

N = 2.46Trucks thus 3 trucks will enable full coverage

Summary of Equipment Selection

Overbuden
Top soil removal removal Coal Extraction

Loading Hauling Loading and Hauling Loading Hauling

1 Excavator 3 Trucks 1 Dragline 1 Shovel 3 Trucks
(3m3 Capacity) (15m3 Capacity) (50m3 Capacity) (35m3 Capacity) (150t Payload)

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SPOIL PILE REHABILITATION PLAN
Short term plan
Erosion and sedimentation control:

Temporary waste dump need to be contoured and stabilized with vegetation and berns placed
around to limit surface erosion. Sedimentation ponds need to be design and constructed to
reduce release of sediments from pile to surface water bodies.

Acid rock drainage control:

Proper drainage of surface need proper canalization towards water retention ponds for proper
treatment before any release is done.

Monitoring:

Monitoring of the stability of the dump after contouring and any signs of failure as well
efficiency of acid and sedimentation control systems.

Medium and long term plan

Backfilling:

Cast Backfilling of waste in previously mined strip is done immediately strip completely
mined from coal. Backfilling is done with dragline in a selective manner, this to enable bury
of located toxic materials and boulders for proper soil profile reconstitution.

Spoil grading:

Spoil grading is done in a sequential manner as strip mining advances. This is done with the
aid of graders. Spoil grading is necessary as cast backfilling of produces undulating
landforms. The unit area graded per hour should approximate the area of waste stripping per
hour. grading is expected to work at a rate of about 61.34m²/h.

Recall: Vw = 4.63 Mm3/year

Area of waste stripped per year = volume of waste / Height of waste ;

Aw = ; Aw = 0.403Mm²/year, Area per hour = Aw/working hours per year

Area per hour = 0.403Mm3/6562.5, Area per hour = 61.34m²/h

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Topsoil reconstruction:

Top soil reconstitution is done to create an A horizon that can support a desired vegetation
design by land use map. Top soil scraped from newly opened site is carried with trucks to
newly graded sites were it is spread on surface of graded area with a minimum average
thickness of 0.5m with a grader. Tractors will be used for sorting large pebbles from soil and
make the soil more ready for any planting.

Revegetation:

With the aid of natural fertilizers such as mulch obtained from vegetation clearing prior to
opening of new strips, seeding is done on reconstructed soils. This is done taking into account
the plant species most adapted to the region as well as favorable planting seasons.

Monitoring:

On a regular base monitoring is done and reports on erosion state, water quality, slope
stability, vegetation health are made during and after mining operations.

SOCIAL POLITICAL AND ENVIRONMENTAL IMPACTS OF MINING

Environmental Impacts
Surface water:

Several alterations directly or adjacent mining sites will be diverse for the project to be
executed. As a result both quantity and quality of surface water bodies in the area around
mine site could be affected. These changes may affect fish habitat and even navigability of
water ways.

Vegetation and Wildlife Habitat:

Proposed mine layout is estimated to disturb large surface areas. All vegetation would be
removed from disturbed areas. The effect of this is the modification of the habitat of wildlife
in the area and around the mine site. The effect may be attenuated but may not be returned to
normal.

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Air Quality:

The principal effect on air quality is dust generated by mobile equipment’s. Loading, hauling,
crushing, blasting etc… More effects though minor will emerge from engines

Social Impacts
Population and demographics:

Mining operations are usually site for the development of secondary economic activities due
to high capital expenditure due to mining projects. The increase population and demographics
is essentially caused by laborers seeking better job opportunities as well as merchants.

Employment and Education:

Usually Mining will require the recruitment of locals as part of workforce, this mostly require
that skill training be given to these workers before they could be engaged. Most of the time
mining companies enter into partnership with local institution and provide input as to the type
of training that is required and the number of employees required. At the end of training
sessions graduates are expected to move into upcoming job vacancies within industry.

Infrastructural developments:

Mining project will develop infrastructural networks such as roads, railways, power stations
water treatment plants that will serve the project in general.

Political Impact
Community well-being:

With the general increase in well fare conditions due to improvement of economic conditions
such as education health care services security and infrastructural facilities.

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REFERENCES
1. B.A. Kennedy, Surface Mining, SME, 1990
2. William Hustrulid and M. Kuchta, Open Pit Mine Planning and Design, Vol. I, April 2006, 2ND
Edition. Taylor and Frances.
3. Bymonika Hardgora Andgabriela P. Mine Planning And Equipment Selection 2004
4. Novia Scotia Environnent, EA.Guide-Surface Coal Mine Reclamation September 2009

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