INTRODUCTION
Approaches
to decision making by planning
1
Plan
2
Planning
process
3
Satting
primary and intermediate goals
3
Search
for opportunities
3
Formulations
of plans
3
Target
setters
3
Fallow-up
plan
4
Caution in planning
4
Planning essentials
5
Mining industry in comparison to other industries 5
Mine planning problems
6
Planning adjusting to mineral policy
8
Guidelines of policy flaming
8
CHAPTER - 1
Mine Planning Requirements
10
Conceptual mine plan
10
Long-range plan
11
Intermediate-range plan
12
Day to day plans
13
Strategic mine planning
13
Issue before strategic planning
15
CHAPTER-2
Surface Or Underground Mining
17
Production potential
17
Development of productivity
18
Mining Costs
19
Risk of accident
20
Losses and dilution
21
Safety zones
22
Psychological
factors
22
Environmental impact
22
Techno-economic decision
23
Decision steps
23
Determination of recoverable reserve
23
Project cost and return
24
Final project appraisal
25
Impact of future underground mining on pit design
26
CHAPTER-3
Determination Of Technical Factors In Mine Planning
28
Classification of planning information
28
Geologic and mineralogical information
28
Structural information ( Physical and chemical
)
28
Economic information
29
Determination of production parameters
29
The basics of mine investment
30
Non-discounting criterion
30
Accounting rate of return
30
Debt service coverage ratio
31
Benefit-cost quotient/differential
33
Empirical methods
35
Zwiagin method (1975)
36
Modification of Taylor’s rule
37
Life of the mine
38
Market condition and price
39
System requirement in mine planning
40
Optimizing mine capacity
41
Profit maximization
41
Cost minimization
42
Optimization in more complex systems
Requirement
42
Manpower capacity
42
Evacuation capacity
43
Stowing capacity
43
Ventilation
43
Drainage
44
Net Present Value
With Risk
44
The Difference
between NPV-OP
45
Market indices:
Equity Based Investment
47
Company cash flow
48
Equity Issues
48
Finance Lease Repayments
49
Debt Draw Dawn
49
Due Diligence Studies
49
Matching
50
MATHEMATICAL FORMULATION
51
Productivity of
shovel ( Q )
51
bucket fill factor ( f )
51
Swell factors
(S1, S2 )
51
Swing factor ( S 3 ),
51
cycle Time ( C1 ),
52
Overall utilization ( U ),
52
Spotting time of dumper ( T s ),
52
Loading Time (
T L ),
52
Travel (Loaded )
Time. (
T TL )
53
Dumping Time ( T TL ),
53
waiting time ( T TE).
53
Calculation Procedure
54
Number of shovels required for Excavation
54
Number of shovels required for production
54
Total number of shovels required
54
Calculation of number of dumpers
required for each working shovel
54
Total number of dumpers/dump trucks
for excavation and production
54
Conclusion
54
References
55
CHAPTER - 4
Considerations Of Risk Of Mine Planning
57
Mineral risk
61
Promoters and sponsor’s
risk
62
Project completion risk
63
Completion tests
65
Infrastructure requirements
65
Contractors
66
Capital cost and delay risk
66
Operation risk
67
Offtake (Market )
67
Supply
68
Demand
69
Sovereign risk
70
Economic environment
70
Risk of political and regulatory
environment
71
Posco case in Orissa, India
72
Currency risk
73
Economic analysis
73
Financing structure
75
Legal analysis
78
Investment-grade criteria
78
Summary
79
Acceptable mineral risk
79
Minimal construction
79
Moderate operating risk
79
Mitigated offtake ( market ) risk
79
Debt evaluation of mining projects
80
Essential documentation, including
80
Management
81
Environmental factors
81
Market analysis
81
Contracts
81
Sovereign
81
Finance plan and proposal
82
Equity promoter
82
Conclusions
82
Reference
82
Legal problems and risk in mining investment in
Russia
83
CHAPTER- 5
Optimization Techniques In Mine Planning
84
Optimization-what it means
85
Problem identification
85
Model building
86
Ore body models
86
Mine models
86
Financial models
87
Mine optimization
87
Two-dimensional pit of uniformly graded deposit
87
Two-dimensional pit-variably graded bedded deposit
91
Floating cone heuristic method
93
Disjointed ore bodies
93
Three-dimensional larchs- Grossman algorithm:
94
Optimization criteria
97
The capability of scheduling software’s
100
Optimization tools for underground mining
102
Commercial pit optimization software
102
Whittle programming pty ltd.: Australia
102
Combinatorics: Australia
103
Earth works : Australia
103
Engineering computers services international:
Australia
103
Lynx geosystems: Canada
103
Mine map: Australia
103
Mintec:USA
103
Optimum planit: Australia
103
Acknowledgement
103
References
103
CHAPTER-6
Infrastructure Planning
105
Plan items
105
The planning sequence
105
Location selection of facilities
106
Mining facility examples
106
Total cost minimization
107
Weizfeld’s alforithm
108
Problem
109
Assumptions
109
Other algorithms of use
115
Elzinga and hearn algorithm
115
Nonlinear optimization techniques
115
Direct search and descent methods
116
The problem
117
Conclusion
119
References
120
CHAPTER- 7
Mine surface layout: planning and design
121
Introduction
121
Vehicular movement
121
Contractor’s compounds, etc.
121
Bulk material
121
Stores and workshops
121
Site services
121
Pit side facilities
121
Clean side facilities
122
Environmental control
122
Classification of surface layouts
122
Building design
127
Information from within the industry must cover:
127
Information from external influences will cover:
127
Conclusion
129
References
129
CHAPTER- 8
Economic Decision Making For Vertical Shaft Or
Inclined Mine 130
Introduction
130
Assumptions in the mine model
130
The model of the mine in case of two variants
130
Shaft mine
130
Capital investment
131
Winders for production shaft
131
Service winder
131
Standardization
131
Shaft equipment
132
Skip loading arrangements
132
Decking equipment
132
Head frames/towers
133
Winding rope
133
Revenue expenditure
133
Cost of energy for coal raising
133
Ventilation
133
Wages
134
Shope mine
134
Capital expenditure
134
Drivage of slopes
134
Equipping slope with belt
134
Structure for belt
134
Drive head for belt
134
Other equipment for belt slope
135
Haulages for second slope
135
Equipping second slope
135
Sinking of ventilation shaft
135
Equipping ventilation shaft
136
Winding rope
136
Revenue expenditure
136
Energy for coal raising
136
Ventilation
136
Haulages rope
137
Wages
137
Summary
137
Case studies
138
Economic decision
141
Criteria for final selection
142
Reference acknowledgement
142
CHAPTER –9
Mine Access Design- A Shaft System
143
Elements of a shaft system
143
Basic technical data required
144
Design of shaft system
145
Choice of winding system
145
Balance winding or counterweight system
Winding cycle and payload
145
Type and location of winder
147
Type of conveyance and their dimensions
148
Nature of guides
149
General configuration of headframe
149
Various insets and openings in the shaft
150
Detailed desigin of various elements
151
Winder foundation
151
Headframe
152
Conveyance
152
Shaft collar
Geotechnical aspects of mine shaft design
153
Geotechnical data
153
Geotechnical investigation
154
Evaluation of shaft stability conditions and strata
Pressures on lining
154
U,S ARMY design guidelines for strata
155
Control in shaft sinking
155
Pre-sink operations
157
Main sinking
157
Estimation of costs in shaft sinking
159
Cost summary
161
Conclusions
161
References
162
Selected bibliography
162
CHAPTER-10
Planning Of Power Requirements
163
Power planning
163
Underground mines face
power planning
163
Surface mine power
layouts
167
Estimation of power
and energy requirements
167
Estimation of maximum
demand
168
Selection of judicious
voltage level
168
Overburden removel
by shovels
170
Overburden removel
by draglines
171
Power to blast hole
drills in O/B area
171
Power supply to coal
face equipment
171
Example study for estimating
energy consumption
172
Energy audit
173
Case study
174
Conclusion
176
References
176
CHAPTER-11
Planning Of Mineral
Handling plants
177
Introduction
177
Basic of bulk mineral
handling planning
177
Description of material
177
Basic data
178
Economic appraisal
df a project
180
Handling cost formula
181
Bulk mineral handling
plants
181
Planning approach
181
Coal handling plants
( CHP )
183
Mode of evacuation
183
System capacity of
chp
183
Internal structure
185
Location
186
Topography of the site
186
Capacity
186
Grizzly
186
Feeder
186
Crushers
187
Product size
187
Storage systems
187
Deshaling
188
Hand picking
188
Rotary breakers
188
Loading complex
189
Reclamation
189
Marshalling
189
Weighment
190
Conventional loading
190
Rapid-loading systems
190
High-speed loadout
systems
190
Minimum rate of loading
191
Silo
192
Loading gates
192
Wagon loading and weighment
192
Other facilities in
rapid loading
192
Ore handling system
at kudremukh
194
A chp at Mahanadi coalfields
India
195
Conclusion
200
Acknowledgment
200
Reference
200
CHAPTER-12
Filling and Stowing
Plant: Planning and Design
201
Planning considerations
201
Calculation of volume
of stowing
201
Availability of stowing
materials
201
Transportation of stowing
material
202
Characteristics of
stowing material
202
Plant design options
202
Mechanical stowing
203
Pneumatic stowing
203
Pneumatic stowing
203
Hydraulic stowing
203
Design
204
Volume of open space
204
Volume for number if
stowing/filling faces
205
Stowing capacity
205
Critical velocity of
flow
206
Frictional pressure
loss in horizontal pipes
207
Other losses
209
Hydraulic profile and
hydraulic gradient line
209
Back filling system
in mosabani mines
210
Sand stowing system
at digwadih colliery
210
Reference
210
CHAPTER-13
Environmental Control
Measures in Mine Planning
215
Environmental legislative
requirements in mine planning:
General provisions
215
Special provisions
217
Specific new provisions:
national mineral policy
218
Environmental impacts
if mining activity and mitigation
219
Land degradation control
and planning
221
Soil erosion
224
Soil erosion prediction
226
Mechanical soil erosion
control
230
Biological erosion
control
232
Water pollution
233
Recharge and discharge
233
Water pollutant categories
233
Oxygen demanding wastes
233
Nutrients
234
Salts
234
Thermal pollution
234
Heavy metals
235
Acid mine drainage
( AMD)
235
Methods of treatment
237
Radioactive substances
237
Assessment of water
pollution as planning information
239
Ground water flow characterization
contamination
239
Example problem and
solution
239
Stream water pollution
241
Example problem and
solution
241
Air pollution
243
Effects of air pollution
on vegetation
243
Air pollution due to
fuel-fired plant/processing units
244
Provisions of environment
control in mine planning
244
Land
244
Water
245
Air
247
Additional pollutants
248
General plan requirements
248
Mine land rehabilitation
planning
248
Goals
Planning requirements
249
Final plan
250
Case study
250
Equipment
251
Post-Mining land-use
planning
251
Planning information
251
Alternative uses of
mined land
252
Post mining land-use
plan
252
Conclusion
253
References
254
CHAPTER-14
Introduction
255
Financial profitability
255
Production of production
cost
256
Recovery of payment
256
Zero-stock objective
257
Fiscal discipline
257
Reduction of non-performing
assets
257
Increased savings
257
Value additive mining
257
Competitiveness
258
Means of finance
259
Cost-effective and
conservative production
259
Management structure
260
Technology focus
262
Mineral rights
263
Labour compensation and social protection
263
Conclusion
265
Reference
265
CHAPTER-15
Preparation of Plan
Reports
266
Introduction
266
Conceptual plan report
( CPR )
266
Feasibility report
(FR )
267
Estimation and justification
of investment
267
Selection of annual
production
271
Land status
272
Phases of the project
272
Other items of the
FR
273
Bankable feasibility
report
274
Detailed project report
( DPR)
277
Technical characteristics
277
Graphical data
277
Preparation of technical
design report
278
Intermediate planning
report
279
Environment management
plan
279
Conclusion
281
References
281
CHAPTER-16
Sustainable Use of
Mined Land and Closure Planning
282
Introduction
282
Sustainability as a
working concept
282
Minerals planning and
mining business initial framework of
Sustainability strategy
283
Design for closure
287
Closure plan categories
288
Elements of a closure
plan
289
Closure completion
criteria
289
Closure costing
295
Mine operating cost
295
Assessing closure risk
299
Main closure risks
300
Safety and health risk
302
Community and social
risk (RC )
302
Final land use risk
( RLU )
303
Relative importance
of the risks
305
Estimation closure
risk factor
305
Case study (courtesy
and with permission from the study of
D .LAURENCE, 2001 )
306
Closure risk factor
309
Empirical classification
( Laurence ,2001)
309
Conclusion
310
References
311
CHAPTER- 17
Project Monitoring for plan Execution of Mines:
Discussions on Information Networks and Action
314
Introduction
314
Project monitoring
314
Process flows
316
Project life cycle
317
Sanctioning authority selection
317
Parliamentary responses
321
Project monitoring process
322
Land acquisition
324
Preparation of mou and finalization, monitoring
of mou
Parameters
324
Monitoring the rehabilitation of project affected
people
326
Monitoring the rehabilitation
326
Acknowledgement
326
CHAPTER-18
Project Planning Issues:
A Review of Parameters
327
What is a project
328
Delay and cost
328
Not too much structure, not too little
331
Performance reports
332
Collaboration
332
Conflict as a natural outcome
333
Vaaland (2004) relationship i4mproveme4nt4 model 333
Human resource management
336
Benchmarking the management of projects
337
Risk and uncertainty
338
Project uncertainty and variability associated
with estimates
339
Survey reports
341
Conclusions
344
Reference
345
CHAPTER-19
Mine Project Scheduling: PERT, CPM and CCPM
349
Overview of scheduling formats
350
Bar charts
350
The network logic diagram
352
Conventions
353
Time and cost estimates
355
Types of time estimates
355
Padding task durations and cost
355
Pert estimating
356
Time estimating
357
Compressing
the schedule
358
Earliest and latest start and finish times
359
The cost schedule optimization
362
Step-by-step example
364
Cautions
371
Mine project scheduling
371
Mining project characteristics
372
Critical chain project management
373
Assumption regarding human behaviour during project
planning 375
Aggregation of contingency reserves
376
Probability of completing a task
378
Implications of aggregating provisions for contingencies
379
Assumption regarding human behaviour during project
Execution
379
The advantages of a critical chain
380
Scheduling non –critical activities
381
Conclusions
385
References
386
CHAPTER-20
IT-enabled strategic planning
388
The organizational attributes
389
Planning studies
389
Tools for implementation of strategic planning
architecture in organization
390
IT enablement of strategic planning
390
The planning process
392
Collaborative forecasting
392
Inventory management
392
Inventory management
393
Safety stock calculation by SAP
ERP software (Enterprise resource planning)
393
Real time promising of customer delivery date
396
Complaint resolution
398
Key concepts defining the complaint resolution
process
399
Strategic sourcing
400
Strategic sourcing method
400
Supplier management
401
E-procurement
402
Production scheduling
402
Dispatch planning
402
E-procurement
404
Production scheduling
404
Scheduling priorities
405
Expanded form of acronyms
406
Conclusions
406
CHAPTER- 21
Supply Chain Management for Minerals
407
Supply Chain opportunities
408
Context
410
Shift 1:from cross-functional integration to cross-enterprise
410
Shift 2: from physical efficiency to market mediation
411
Shift 3: from supply focus to demand focus
411
Shift 4: from single company product design to
collaborative,
Concurrent production
412
Shift :
from cost reduction to breakthrough business models
412
Shift 6: from mass-market supply to tailored offerings
412
Supply chain processes
413
Information technology requirements
413
Organization structure
413
Supply chain methodology
413
Customer perspective
414
Supply chain : key requirements
414
Organizational perspective
414
Organization ‘s mission
414
Vision of key personnel
415
Customer perspective
416
Customer requirements: product-1
416
Customer requirements: product-2
Customer requirements: product-3
418
Customer perspective
417
Key imperatives for supply chain
419
Supply chain vision: objectives
419
Supply chain costs
419
On time delivery (otif)
420
Supply chain performance: targets
420
On time delivery (otif) : target
420
Supply chain: performance indicators
421
Complaint resolution time: bench-marking
421
Complaint resolution time: Bench marking
421
Demand/supply planning
422
Manage customers- customers order
423
Managing procurement- supplies
423
Production process
424
Logistics/distribution
424
Other opportunities
425
The supply chain managers role
426
Sales people and markets
426
Designers
426
Downstream
partners and product services
426
Cutting lead times
427
How to communicate well
427
Important planning inputs
428
A cement supply chain- a case study
429
Characteristics
429
Distribution system
429
Implementation of scm
429
Achieving target of increasing domestic market
share
429
Optimizing distribution facility
429
REDUCING COST
430
Satisfying consumers
430
Marketing plain
430
Production plan
430
Execution of delivery
431
Warehouse management
431
Information system
431
SCM as market mediation
431
Conclusions
431
Acknowledgement
432
References
432
CHAPTER-22
Dispute Resolution Mechanisms for Mining Projects:
Aspects of Legality
And Flexibility
433
Brief glossary
433
Job contracting types
434
Dispute types
434
Complexities of dispute
434
Dispute resolution clause
435
To arbitrate or to litigate
435
Arbitration clause
437
Legality of arbitration
438
The place of arbitration
438
Project delivery structures
438
Alliances and partnering
439
An arbitration case study
440
Multi-party arbitration agreements
440
Approaches for solution
441
In the absence of a multi-party arbitration agreement
442
Conclusions
443
Acknowledgment
443
References
443
CHAPTER-23
Planning for Rejuvenation of Local Economy in
Active and Abandoned
Regional mine Areas
444
Features of local economy
444
Priorities of local economic planning
445
Fact finding and data generation
445
Available resources
446
Developmental resources
446
Directions for sustainable economic development
447
Trade and community centric development in mature
and old areas
447
Local skill development
448
Poverty alleviation
448
Women’s education and health
448
Facilitation and demanding special status
448
Preparedness and capacity building
450
Regional planning review: case study I Joda-Barbil
area, Orissa
450
Demand of minerals
452
Revenue generation
452
Population characteristics
452
Social acceptance, lifestyle and living
455
Mine closure
455
Existing and expandable infrastructure
455
Water supply
455
For the mines under OMC
456
Drainage& sewage
456
Power supply
456
Mining and other industries
456
Local industry policy
457
Lacunae in regional planning
459
Areas requiring improvement
460
Reviving local economy: case study II Kangwon
South Korea
460
Strength
462
Weakness
462
The way forward
462
Collaboration
463
Conclusions
467
Acknowledgement
468
Reference
468
CHAPTER- 24
Mine Planning in the Future-Issues and Challenges
469
Introduction
469
Challenges before the global minerals industry
471
Fuel minerals industry
471
Energy supply security
472
Non-fuel minerals industry
472
Emerging new areas for immediate concern, survival
and growth
473
The challenge of the natural environment
473
A natural resource-based view of mining activity
474
Pollution prevention
475
Product stewardship
475
Sustainable development
476
Recycling and reuse
476
Value additive mining
477
Looking for non-mining business opportunities
477
Overall expertise
479
Encouraging non-mining jobs
479
Mining lands permanent asset
479
Radical restructuring
479
Conclusion: shapes of future mining
481
References
483
APPENDIX-1
Proposed Proforma for for Environtal Management
Plan Report
484
The plan details
484
Environmental inventory
484
Environmental assessment
485
Environtal impact statement
485
APPENDIX-II
Environtal Management Plan Checklist
486
APPENDIX-III
Assessment of Preparedness for Mine Plans and
Mining Industries in
Environmental Protection
490
Voluntary statement form
490
APPENDIX-IV
Due Diligence of Mining Project
495
Introduction
495
Definition
495
Scope
495
Purpose
496
Who requests due diligence reviews
496
Examples of the perspective of various reviewers
496
Acquisitions
496
Consumers
497
Summary
497
