proud to work for.. - mine africa - whittle consulting.pdf · proud to work for..! our vision - the...

Proud to work for.. Our Vision - the de facto Global Standard for Enterprise Optimisation

Our Mission – Transforming economic value in mining globally!

Increasing NPV by 5-35%!

Real Cases Last 2 years!

Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Blasting

Geo-metallurgy

Activity Based Costing

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Dependability

Legend Best Practice Rating

Not Applied

Partial

Applied

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct Asset Applying

Best Practices 5-35% more NPV

Opportunity to generate Strategic Options

Asset today

Software Tools Rating

Strategic Software

Scheduling

Sustainability Rating

Social Impact

Water

Energy

Tailing & Waste

It’s a MONEY MINE!Whittle Best Practices!

It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡  Managing their asset in silos ¡  Focussing on the tonnes and

ounces ¡  Planning mines from the

bottom up

¡  Waiting till the commodity cycle goes down before slashing costs in the operation, hiring McKinsey, Proudfoot

Owners who create value are…. ¡  Managing their assets a an

integrated whole ¡  Focussing on the CA$H

¡  Planning mines using PROVEN technologies to plan top down

¡  Focusing on mechanisms to generate margin

It’s a MONEY MINE!Habits Destroy & Create Value!Owners who destroy value are…. ¡  Outsourcing the entire

development of a mine to people who have no interest to see it deliver the benefits for the owner

¡  Only concerned about returns to shareholders i.e. Pascua Lama

¡  Not using technology to enhance productivity or using it within the technical silos

Owners who create value are…. ¡  Embedding the owner’s voice

to shape the projects economics

¡  Working through the trade-offs with other stakeholders i.e. communities, the environment, governments NGOs

¡  Embracing in a holistc way appropriate technologies around blasting, comminution, planning, geo-met, blasting

It’s a MONEY MINE!Habits Destroy & Create Value!

It’s a MONEY MINE!Habits Destroy & Create Value!

It’s a MONEY MINE!Habits Destroy & Create Value!

It’s a MONEY MINE!

MONEY has a time value!we want it NOW!

Bottlenecks prevent us !Getting the Money NOW!!

Why Simultaneous Optimisation!Enterprise Optimisation!

Accelerates CASH!

Identifies LOM Bottlenecks!

Why Simultaneous Optimisation!Enterprise Optimisation!

June 2013

Defining the Optimised Cases FOCUS on the largest opportunities for value enhancement

Pits •  Re-optimised for net value based on CV, Sulphur and activity based

costing, focussed on system bottlenecks like ports Phases •  Possible for certain mines only Schedule •  Flexible mining by site to meet port limits Cut-off •  Prioritising high CV, low Sulphur over low CV, high S material – dynamic

value ranking mechanism utilised Stockpiling and Logistics •  active, but we did not isolate the value or focus on improving these

BANPU - Our Focus?!

Design2011  

Phase  2  in  blue  

Phase1  in  purple  –  area  1  

Phase1    in  purple  –  area  2  

Phase1    in  purple  –  area  3  

35⁰  Overall  slope  angle  

Phasing Example!

Key Results •  Improved cumulative cash flow from 2013 to 2023

nearly doubling cash flow in year 1 •  14% NPV uplift over the base case •  This was without spending any additional capital

over what was stipulated in the Base case. •  Coal price the same over LOM •  Mine permitting and license to operate conditions

were incorporated into the scheduling constraints. Results generated by the following mechanisms: •  Pit CV content – higher CV blocks attracted a

reward, lower CV blocks a penalty •  Sulphur content – higher S blocks attracted a

penalty, lower S a reward. •  Blending was used to meet product requirements

and prioritise the mining shape selection and scheduling.

•  Much of the effort was focused on the Mining Activity Based Costing models and logistics models.

BANPU Results!

Whittle Best Practice – Base Case!Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Predictability

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct

Software tools Applied

Rating

Strategic software

Scheduling

Legend Best Practice Rating

Not used

Partial

Used

Opportunity to generate Strategic Options

BASE BASE

Whittle Best Practice - APPLIED!Mechanisms Rating

Pit

Phasing

Schedule

Blending

Cut-off

Stockpile

Simultaneous

Plant

Product

Logistics

Capital

Base Case Data

Rating

Integrity

Gaps

Val. Model Consistency & integrity

Predictability

Difficult Easy

Opportunity Assessment

Low

Im

pact

H

igh

Impa

ct

OPTIMISED

Software tools Applied

Rating

Strategic software

Scheduling

Legend Best Practice Rating

Not used

Partial

Used

Opportunity to generate Strategic Options

BASE CASE

A simplified network

The Opportunities!

BYPASS

Wilpinjong

Wambo(fixed  feed)

Product  112%Ash

Product  213%Ash

Product  315%Ash

Product  422%Ash

Product  527%Ash

CHPPASSET 1

ASSET 2

The result is a potential NPV uplift of AU$298M over the LOM. This is a 19.3% increase over the Base case NPV. There is a potential extra AU$150M in net cash flow over the next 5 years, by leveraging the unused capacity in the wash plant and changing the product mix (1 & 4).

Opportunity 1 !

Key Results [Published Nov 14 2013 www.avantimining.com] •  Significant improvement in projects economics for the FS Update of the Kitsault FS •  Signed off by AMEC’s QP •  “Projected cash costs are in the lowest quartile of primary molybdenum producers worldwide.”

Mark G Premo CEO Results generated by the following mechanisms: •  Fully variable elevated cutoff grades during the life of mine paired with the dynamic use of the

ore stockpiles. •  Implementation of a flexible mineral processing regimen based on grind-throughput-recovery

(GTR) relationships for the three main rock types contained in the deposit. •  Selection of the ultimate pit and internal operational phases incorporating the results of the

Enterprise Optimization study. •  Optimization of equipment selection and layout in the process plant. •  Optimization of the grinding circuit to maximize throughput •  Incorporation of improvements to the silver recovery circuit. •  Rationalization of the initial and sustaining capital requirements, including optimization to the

project infrastructure and tailings management facilities

AVANTI Results!

Enterprise Level of Optimisation

Optimised Sustainability

$

Value Potential

None

$$$

COAL Existing LOM Plans

Partially Optimised Gemcom Whittle

Enterprise Optimisation

10 Mechanisms

Typical Optimisation Journey!

Alliance Partners!Global

Africa Asia Australia Nth America

Sth America

Want to learn more?!Money Mining & Sustainability Seminar Fremantle February, 2014!London March, 2014!Johannesburg April, 2014!Lima ! May, 2014!Johannesburg May, 2014!! www.whittleconsulting.com.au/events!

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