Mitigating Risk in the Mining Sector: Best Practice Implementation & Independent Audits
Jean Richardson, Andre McKen, Russ Calow, SGS Minerals Services
Outi Maatta, SGS Systems, Standards and Certifications
Adrian Shaw, SGS Project Finance
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Definition of Risk, Risk Management
Risk - the effect of uncertainty on objectives
Risk management identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor & control probability and/or impact of
unfortunate events to maximize the realization of opportunities
ISO 31000, Nov 2009
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Risk in the Minerals Sector
PROJECT FINANCE
SSC
MINERALS
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Top Risks to Mitigate, 2009/2010
Cost containment
Industry consolidation
Access to capital
Keep social license to operate
Climate change
Skills shortage
Lack of infrastructure access
Access to secure energy
Resources nationalization
Pipeline shrinkage
Technical/operational Strategic Financial Social Environmental Operational/Human Resources Location Location/Operational Political Strategic
Ernst and Young, 2009.
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CEOs’ Concerns, 2009/2010
Pricewaterhousecoopers, 2010
20102009
54% Somewhat or extremely concerned
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Energy Use
Rule 2009
HEAT MECH LOSS GRAIN SIZE REDUCTION
85%
14%
1%
3-4% of global energy consumption used for comminution. Of this 1% is used for grain size reduction.
Alavadro et al 1998
South Africa (Eskom) generates 38 GV/yr
AngloPlats uses 1 GV/yr
40% in comminution and smelting
Less than 1% results in grain size reduction
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Comminution Update
Technology advancements Jaw, cone crushers → ball& rod mills → SAG & FAG mills → HPGR
Complex deposits, complex mineralogy, fine grained ore Finer grinding needed – UFG, Activox, multiple regrinds 1998 High Definition Mineralogy 2000 Variability in hardness & grindability - geometallurgy
Simulation and modeling in feasibility Process and systems control Technical and management audits
Plant improvements & ISO 50001
Need, costs and availability of power Carbon emissions
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Technology Advances
Replace old equipment & assess technologies
Design flowsheet for mineralogy – can require fine grinding
HPGR more energy efficient
0
20
40
60
80
300 75 106 75 45Target Grind Size (micron)
Ene
rgy
(kW
h/t)
HPGRJaw-Rolls-Ball
Rule et al., 2009
40%
20%
fine coarse
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Complex DepositsMapping Variability/Geometallurgy
SGS SPI Grindability Test
Tumbling (abrasive) test
2 kg of 22 mm top size
Good for variability mapping
Batch test
Yields SPI & Ci for SAG design Hardness Domains
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SGS SPI Database
0
10
20
30
40
50
60
70
80
90
100
0 50 100 150 200 250 300SAG Power Index
Cum
ulat
ive
Freq
uenc
y D
istri
butio
n (%
)
hard soft
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t/hP80
t/hP80
t/hP80
t/hP80
t/hP80
t/hP80
Comminution Model SGS CEETCompleted
Simulate & Populate the Block Model
SAG MILL BALL
MILL
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Cerro Verde25 65.5 Elevation
Tonnes P e r H ou r
Throughput Modeled in 3D
Peruvian Porphyry Cu-Au
Blue / soft ore/ high tph Brown / hard ore/ low tph
5000
4500
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Predict Power Needs by Year(SAG and Ball Mills)
Bulled, 2007a, b
hard
BALL MILL
SAG MILL
P80
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Technical Audits
Technical Audits (Plant optimization) Surveys, sampling, analysis, troubleshooting
Many plant parameters PSA, critical size build-up, mill speed, pulp density
SAG Mill
Cyclone
Ball MillClassification Screen
Pebble Crusher
Hard RockSp
litter
Soft Rock
CT
Cyclone
Ball Mill
Gravity
Ball Mill Splitter
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Results Oriented: Improved Profitability
Cu plant Implementation of a pre-
crusher improved power efficiency 31% for hard ores
Capex = $US 11M
New revenues $US 40M/yr
Au oxide plant Optimization increased throughput
by 9.5% at similar grind
No CAPEX
New revenue $US13M/yr
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Management Audits: ISO Standards
BS EN 16000 → ISO 50 0001 Energy supply and use including equipment and systems Procurement and use-related disposal issues Continuous improvement cycles
ANSI/MSE 2000-2008
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Value of Systematic Energy Management
PRODUCTION Decreased energy use Controlled energy costs Improved operational efficiency
PLANNING Data for fact-based decisions Operating and capital spending Purchasing strategies
PROTECTION Protection against energy market instabilities Reduced environmental impacts, show corporate social responsibility Competitive advantages
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SGS: a Partner in Risk Mitigation