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Robust and Dynamic Planning through the

implementation of Digital Tools in the mine planning


process: A Step Forward for Mining System Efficiency
Enrique Rubio, Ph.D. – Executive Director
Nassam Estibill, P.Eng.- Manager of Technology and Digital Applications
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts
3. Our Digital Tools

4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
5. Simulations to assess the insertion of new technologies

6. Simulation in Underground Mining


7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

2
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts
3. Our Digital Tools

4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
5. Simulations to assess the insertion of new technologies

6. Simulation in Underground Mining


7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

3
REDCO Mining Consultants
Providing tailored solutions for your operation

> Mining Engineering Firm with offices at


Chile, Perú, Brazil, Russia and Finland

> More than 16 years in the market with


more than 200 studies and projects.

> Technology insertion driven company


adding value to client's projects,
operations and services.

> Supporting operational, tactical and


strategic decision making with reliable
solutions and services

> Strategic alliances with different


consulting and engineering firms to
provide robust solutions to our clients.

4
Productivity and Efficiency of Consulting of Digital Projects and
Mine Planning and Design Rock Mechanics Engineering Reports
Mining Operations Strategies

> Construction of systemic > Evaluation of mining plans and > Review and update of > Review and elaboration of > Identification of benefits
simulation models from mine to analysis of variability, risk, and geotechnical models. engineering reports: associated with digital projects.
port. expected financial returns.
> Review and construction of 2D o Preliminary Economic > Evaluation of the digital maturity
> Definition of technical limits and > Optimization of mining designs and 3D geomechanical models / Assessments (PEA) of mining operations.
demonstrated capabilities. and plans. numerical models.
o NI 43-101 Reports > Identification of risks and
> Identification of stabilization o Pit-underground o Rocscience opportunities associated with
o Conceptual Studies
opportunities in the value chain. transition o Phase 2 digital projects.
o Pre-feasibility studies
> Full Potential Assessments o Sequence optimization o RS3 > Definition of value levers
o Map3D o Feasibility studies associated with digital
> Systemic evaluation and o Trade-off evaluations
technologies and projects.
management of initiatives. of exploitation methods o Abaqus
> 3D Stability Analysis > Assessing value levers in the
> Systemic evaluation and > Optimization of mine
context of a production plan
management of risks and development and preparation > Rock Mass Characterization
opportunities. programs. > Review of technologies and
> Fragmentation and Dilution in systems.
> Formulation and monitoring of > Evaluation of dilution, recovery Cave Mining
adherence and mine compliance and gravitational flow in > Review, formulation and / or
metrics. underground projects. > Micro-seismic Analysis induced by recommendation of
Mining implementation roadmap
> OPEX and CAPEX estimation
> Fortification and Support Design > OPEX and CAPEX estimation.

Simulatoni Model – CAP Gravitational Flow Modelling – Codelco Stress 2D Model – Alrosa, Rusia PEAs / NI 43-101 – Sierra Metals Integrated Operating Center - Teck

5
REDCO's history dates back to 2005, where more than 200 studies and
projects have been developed using different digital tools.
Simulation Model as a tool for evaluating the mining
Reliability Assessment of Los Bronces Five- Simulation model to compare the performance of two truck fleets when considering the effect of
system for the fulfillment of the ramp-up of the
Year Plans Using SIMPLAN Chuquicamata Underground project - CODELCO altitude in Quebrada Blanca 2.

Simulation Model as a tool to forecast and


Diagnosis and analysis of mining assets for
Analysis of bottlenecks and maximum potential of MEL, Risk analysis of plans in different horizons stabilize weekly gold production from roasting
CMP. Digital Twin as a tool to evaluate the
and variability of production plans plants and autoclaves at Goldstrike - Barrick
maximum potential of the operation.
Gold

6
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts
3. Our Digital Tools

4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
5. Simulations to assess the insertion of new technologies

6. Simulation in Underground Mining


7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

7
The traditional operating model generates high variability and low
compliance with organizational commitments, being rather reactive than
proactive / predictive.
Planning Drill & Blasting

Siloed
High software
Variability
systems

Logistics Processes Loading &


Hauling

Lack of Plan Compliance


● Geological uncertainty ● Equipment failure An operational model based on robust mining planning
● Operational variability ● Uncertain ore/waste boundary can identify and solve these problems and point towards
● Uneven geometrical extraction ● Insufficient buffers and stocks a more efficient and productive mine. This will result in
● Coarse/packed fragmentation
● More…. higher returns on investment.
● Unbalanced shovel and truck

8
As REDCO we believe that increases in production and productivity are
linked to: (1) Decreasing the manageable variability and (2) stabilize the
operation.
Mining System
Theoretical Capacity
Optimization
Technical
Limits
Demonstrated Full Potential
Capacity

Actual
Simulation Actual State
Model Current Performance

Actual Stabilized Restringido


Optimized
Productivity gaps; Mainly due to Variabilty
Actual State→ Has gaps due to variability • Operational (performance of equipments,
Operational factors, etc.)
Stabilized State → Incorporating initiatives that minimize • Equipment failure
variability. • Stockpile strategies
• Fragmentation
Optimized State → Increase in production due to a decrease • Geoloty
in: (1) Variability and (2) the number of low production valleys. • Other
This generates an increase in the average production →
Increase in efficiency.

9
Why do we need to submit production plans to simulations under
uncertainty?
✓ Identification of bottlenecks.
✓ Analysis of alternative production scenarios.
✓ Visualization of improvement opportunities.

Production
Plan
➢ Minimize deviations → Greater Adherence to
the Production Plan.
➢ Minimize variability → Robust Mining System.
SIMULATIONS ➢ Minimize uncertainty → Lower Risk.

Operational
Capacities “The balance between risk and
Philosophy
return of the mining system allows
an efficient design and a robust
production program that enables
Uncertainty in Planning
adherence to the plan.”
Productivity Costs

10
Integrated model that consists of generating scenarios for decision making by
reducing operational deviation, the fundamental axis of operational excellence. This
implies: greater performance and greater reliability of equipment and facilities.

11
This vision integrates the operational areas, the different planning horizons,
and variability to the mine planning process.
Bottleneck Operational Discipline Integration of System Benefits:
Analysis Mine Compliance enablers
• System capacity of operating
units
• Create multiple scenarios
• Introduce operational variability
Disciplines or Areas anti interruptions
Mine, Plant, Maintenance, Tailings,
Water, Leaching Pads, Pipeline, others. • Evaluate different sequences
Digital

Short term, mid-term, long-term


for project expansions
Twin
• Evaluate equipment
Horizons configuration
Planning

• Evaluate water balance


• Evaluate tailings volume
availability
• Evaluate rehandling and
stockpile activities
• Capex prioritization
Plan
Simulation
SIMPLAN VALUE
Dynamic UPLIFT
Planning

Decision making Consistency


Dynamic operational
based on between
philosophy / Catch-
objective data components
up

12
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


3.1 Digital Twins

3.2 SIMPLAN
3.3. Digital Twins + SIMPLAN for Dynamic Planning
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

13
To assess the compliance of production plans and evaluate different risk and
opportunity scenarios, we count with two digital offerings:

Exhaustive Analysis of Production Plans (Bottlenecks, Compliance, risks and opportunities)

Digital Twins SIMPLAN


Simulation consists in designing and building a SIMPLAN is a mining plan simulation tool that receives a mining plan
computational model of a real system. The objective of as input and is capable of incorporating the capacity constraints of the
this model is to be able to experiment with it to entire mining process chain.
understand the operation of the system and
evaluate new strategies for its operation.

Simulation is a useful tool for:


Evaluate and quantitatively analyze the performance of
systems. Production Analysis Economic Evaluation
Answer questions of the type: "What if?" As a result, an operational production Used to evaluate alternative strategic
plan (deterministic or stochastic) will be plans and quantify the future value.
Operations optimization. generated that is defined by the As a result of the software, mine
minimum of all capacities (bottleneck) extraction, mine movement and fine
Comparison of different production alternatives. and as a consequence evaluate copper extraction profiles are
different performance metrics of the obtained, which are then are valued
Identify most relevant variables in the system. plan. It is possible to measure with a simplified or complex
compliance in terms of: Ex-Pit Tonnage, economic model (investments, mine
Make decisions based on objective assessments. Total Movement, Production, Fine costs, process costs, discount rates or
Copper, or any other key value driver. others) allowing the comparison of
Identify bottlenecks and test debottlenecking measures. assets or portfolios and contribute in
the decision-making process.

14
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


3.1 Digital Twins

3.2 SIMPLAN
3.3. Digital Twins + SIMPLAN for Dynamic Planning
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

15
Simulation models serve as a tool to visualize effects on production under
interruptions, identify bottlenecks and see the effect due to the
implementation of initiatives.

16
During the 15 years of REDCO's trajectory, we have been able to use simulation
models to solve issues involving three areas: (1) Operational, (2) Planning and (3)
Design.
DIGITAL TWIN APPLICATION IN MINING Planning Operational Design

Fleet sizing and evaluation for the operation of a mine


Detailed understanding of the interactions of the equipment between the
operating units.
Detailed analysis of truck congestion and all equipment acting as entities

Detailed analysis of operational factors such as physical availability and


the use of critical components.

Detailed analysis of mine extraction capacity and its variability.

Identification of bottlenecks between mine, plant, port.

Detailed analysis of the production capacity of the plant and its variability.

Identification of the effects of the mixture of materials or different types of


minerals in the final product.

Identify the consumption of enablers such as water, energy, space, etc.

Calculation of the reliability of the production schedule to follow at the


operational level

Test prediction models using Machine Learning to be used in full operation

17
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


3.1 Digital Twins

3.2 SIMPLAN
3.3. Digital Twins + SIMPLAN for Dynamic Planning
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

18
SIMPLAN Conceptual Model

Mine Extraction Plan Equipment Plan and Historical Data Proceses Projects

Block Caving

Start: Year 50 o 60.


Duration: 20, 25 o 30
años.
Regime: 15 o 20Mt/a.

+ 100yd3 Shovel

N°: 1, 2 o 3.
Start: Year 30.

Increase Capacity

Start: Year 20.


Duration: 60
years.
Capacity:
Mine plan with detail in tonnage, ore grade, Details of the equipment fleet, operational factors Detail of the operational +10Mt/yr.
recovery, haulage cycle times and other (availability and utilization) and productivity are factors (availability and
relevant variables of the material to be extracted. required in the plan by unit operation per year (ex. Drill and utilization) and Potential projects
The plan must include the origin (pushback blasting, loading, hauling, etc). Historical information that performance of the considered by the asset
and stocks) and different destinations per allows to quantify the KPI's variability, and investments, equipment required in the with details of its main
year. An executive report of mine extraction and mine costs and costs per process per unit operation. plan by process per year. characteristics (the input will
processing for the validation of the base plan is Investments and costs. depend on each project).
relevant. Investments and costs

19
Strategic Planning Simulator is a tool that quantifies future value through the
dynamic and flexible association of projects to a base case
Base Case Edge Case 1

Mine Mine

Project 2040

Project 2050 Project 2050


Input

Project 2030 Project 2030 +

2020 2030 2040 2050 2060 2070 2020 2030 2040 2050 2060 2070
Copper

Copper
Results
Fine

Fine
2020 2030 2040 2050 2060 2070 2020 2030 2040 2050 2060 2070

20
SIMPLAN – Engine Philosophy

21
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


3.1 Digital Twins

3.2 SIMPLAN
3.3. Digital Twins + SIMPLAN for Dynamic Planning
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

22
Finally, Digital Twins and SIMPLAN, can be used for Dynamic Planning and
to do Catch-up in case of operational deviations…

Tonnes or other
Production KPI Monthly
Plan • Constant data/cloud feedback as they
become available.
CatchUp • Constant simulation of operational
scenarios
• Try different sequences.
Minimized • See alternative plans for
Deviation operational conditions.
• Search for catch-up
alternatives.
Projected Final • Forecast of operational performance.
Deviation
• Test of different operational
philosophies.

Period
x-1 Today x+1 x+2 x+3

23
This is an example of a dynamic catch-up dashboard that we generated for
Minera Escondida in Chile.

24
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
4.1 Digital Twin Study Case: Radomiro Tomic Open Pit Mine – Codelco, Chile

4.2 Digital Twin Study Case: Minera Escondida Open Pit Mine – BHP, Chile
4.3 Digital Twin Study Case: CMP Iron Ore Mines – CAP, Chile

4.4 SIMPLAN Study Case: Los Bronces – Anglo American, Chile


5. Simulations to assess the insertion of new technologies
6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

25
In REDCO we are convinced that by implementing a systemic modeling tool,
that is used transversally within the organization, mining operations can
optimize their operational productivity.

> Quantify the impact of initiatives on the


productivity KPI.
> Guide to define resource allocation
> Strengthen the monitoring and value
capture of the corporate goals.
Productivity
and costs

REDCO’s
> Assess compliance to plans. continuous
> Strengthen the formulation and
> Standardize the evaluation of improvement
evaluation of technical limits
initiatives in the context of mining methodology
> Bottleneck Identification
plans:
Mine Operational > Define aspiration and assess new
> Evaluate new improvement
Planning Excellence initiatives systemically
strategies.
> Evaluate debottlenecking
initiatives.

Through the systemic analysis of mining production processes, it is possible to obtain a production function that
will allow establishing an internal benchmark of productivity per process.

26
To materialize our vision, we have developed a methodology that is
embedded within the continuous improvement philosophy, striving to
internalize this methodology within the mine planning areas.
Philosophy of
continuous
Operational Excellence
improvement
Full Potential Managment of Initiatives Standarization Integration to Mine Planning

Stages of the Definition of Incorporation of Integration to Mine Analysis of Future


Statistical Analysis Digital Twin
methodology Technical Limits Initiatives Plans Scenarios

• Diagnosis • Gaps • Bottlenecks • Opportunities • Quantifying the benefits • Taking the technical limits to
• Variability • Demonstrated Capacity • Systemic real capacities • Evaluation of initiatives • Reliability assessments of future conditions
• OEE • Variability • Productivity per process plans
• Bottleneck movement
Methodology
Inputs Tool and its results Enablers

Plan

Operational
Strategy Production Calibration
Historical
Function
Definition of *The objective is to
Data Technical Limits replicate a previous year.

Results
1 Production Throughput and recovery models
2 Bottlenecks
3 Evaluation of scenarios Initiatives and levers
4 Indicators and goals Evaluation of impact in mine plan

27
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
4.1 Digital Twin Study Case: Radomiro Tomic Open Pit Mine – Codelco, Chile

4.2 Digital Twin Study Case: Minera Escondida Open Pit Mine – BHP, Chile
4.3 Digital Twin Study Case: CMP Iron Ore Mines – CAP, Chile

4.4 SIMPLAN Study Case: Los Bronces – Anglo American, Chile


5. Simulations to assess the insertion of new technologies
6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

28
The Weibull methodology is used to process and clean the data, in addition
to assessing the control level of the processes (1/2).

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios

Technical Limit Section: Data analysis by Weibull methodology


Line of proven Capacity Maximum component allows:
Drawn based on real daily capacity under perfect
data. The slope indicates the execution
level of stability of the process. 1. Delete data with low reliability,
Nominal Capacity identify the line of proven
Efficiency (common cause
Line: Potential KPI capacity and technical limit.
losses) is represented by area
"E", between the demonstrated target at an improved
Reliability

capacity and the nominal level of stability. 2. Determine the level of process
capacity line control.
Reliability (losses due to
special causes) is Control level according to the 3. Estimate the nominal capacity
represented by the "R" slope of proven capacity line: associated to a process under
area, where the indicator control.
has fallen below the
demonstrated capacity
line.

Ln(Indicator Value in Daily Basis)

29
From the data, it is possible to generate a first estimation of the production
gaps and systemic bottlenecks.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

Tonnage [Mton]
115
16
93 93
85 5 87
2 16
11 11
3 5

22 30
48
2 3

CHPO CH2 CH3 Stacking Ripios Reclaim Ripios Reclaim CAEX Total Ripios Removal

Theoretical Capacity Demonstrated Capacity Plan


Technical Capacity Real

31
Then, the simulation model is conceptualized and built with the level of detail
required by the client, to detect bottlenecks at a systemic level of the value
chain.
Statistical Definition of Incorporation of Integration to Analysis of Future
Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

A systemic simulation
model (Digital Twin) from
mine to port was
constructed for the
Radomiro Tomic
operation.

Bottlenecks result from the systemic interaction of subprocesses

32
With the use of the simulation model it was possible to identify the dynamic
bottlenecks of the system.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

2020 2021 2022 2023 2024

Hauling Hauling Hauling


Mine -4 ktCu -4 ktCu -3 ktCu

Ch. 1 Ch. 3 Ch. 2


Crusher -1 ktCu -3 ktCu -1 ktCu

Stacking Stacking
Stacking -7 ktCu -3 ktCu

Removal of Rip. Removal of Rip.


Removal of ripios -1 ktCu -1 ktCu

SX / EW

We noted that the initiatives that the Division had designed were aligned with the bottlenecks
shown by the simulation model in the current performance scenario.

33
With the use of the simulation model it was possible to identify the dynamic
bottlenecks of the system.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

Copper Fine
[kt] -2%
1,059
1,060
1,050 0 0 3
1,040 1,034
1 0
1,030
1,020

20
10
0
Plan (5YP) Mine CH1 CH2 CH3 Stacking Ripios MDC Current
Performance

34
Then, we gather the different initiatives generated by the operation and
identified which levers to modify.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

Increase treatment to Increase in Improvement in


Iniciativas Ripios Optimization
183 ktpd for year 2024 secondary leaching mine efficiency

> Improve > Improve wheel > Increase hydric > Increase
performance of bucket shovel’s resources availability of
stacking system performance (increase shovels
> Improve utilization > Improve irrigation) > Increase
of stacking system availability of the > Better operational performance of
Palancas > Improve wheel bucket discipline shovels
availability of shovel > Increase utilization
stacking system > Increase utilization of trucks
> Increase
performance of
trucks

35
Initiatives were simulated within the context of a mine plan allowing the
operation to quantify their impact in copper production.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : R A D O M I R O T O M I C

Copper Fine +4%


[kt]
1.075 Total with Initiatives 1.074
Gains with initiatives
1.070 Bottleneck effect
1.065 2%
-2%
1.060 1.058
1.055
1.050
1.045 0 0

1.040
1.035 1.033
1 0
1.030

0
Plan (5YP) Mine CH1 CH2 CH3 Stacking Ripios MDC Current Increase of Opt. Ripios Secondary Mine Total
Performance treatment Leach Efficiency

36
As a summary, from the previously displayed methodology, we can obtain
the following outputs, contributing to the decision making process of our
clients.

Digital Full potential Definition of Evaluation of the Identification and Evaluation of Recommendation of
representation of analysis of the technical limits reliability of the visualization of initiatives, risks and operation range to
the value chain operation production plan bottlenecks opportunities in the maximize
context of a plan productivity

Reports are fully


Bottleneck Dashboard
customizable
according the our
client’s needs.
Compliance Histograms
20%
Max-Min-Average Graphs
15%
2
Frecuency [%]

10%

Tonnage [Mt]
1
5%
1.08
1.10
1.12
1.15
1.17
1.20
1.22
1.24
1.27
1.29
1.32
1.34
1.36
1.39
1.41
1.44
1.46
1.48
1.51
1.53
1.56

0%
0
Tonnage [Mt]
Simulation (100) P80 Period
Real P50 Minimum

37
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
4.1 Digital Twin Study Case: Radomiro Tomic Open Pit Mine – Codelco, Chile

4.2 Digital Twin Study Case: Minera Escondida Open Pit Mine – BHP, Chile
4.3 Digital Twin Study Case: CMP Iron Ore Mines – CAP, Chile

4.4 SIMPLAN Study Case: Los Bronces – Anglo American, Chile


5. Simulations to assess the insertion of new technologies
6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

38
The largest copper producing mine in the world has asked REDCO to
provide them with a digital solution able to:

Perform a simulation of the mine’s production system integrating: mine, plant, port and
each of its unit operations in order to quantify the systemic latent capacities and the
variability over time of each of the processes that make up the production chain.
Period #1
A second objective is the determination of bottlenecks in the process over time for each of the
unit operations that make up the productive processes of the operation.

Strengthen the process of preparing the Budget, 5YP and LOA plans, considering various
Period #2 advice on simulations, optimizations, strategy and activities & initiatives that will be jointly
(on going) executed by the operations planning and technical group and a dedicated REDCO engineering
team.

39
In the first stage, the design of the mine-to-port simulation model was
conceptualized:

Conceptual Model of Minera Escondida Operation Digital Twin Model Components

Largest copper producing mine in the world

> 2 Mines
> 5 Crushers
> Conveyor System
> 3 Concentrator Plants
> Leaching Pads
> Oxidation Pads
> Transportation of tailings
> Piping
> Port
> Enablers
> Ore assignation strategy
> Ore priority strategy
> Processing priority logics
> Stock level operational philosophy
> Throughput Model
> Recovery Model

40
This model has a systemic view of the value chain since it makes the
different components interact from mine to the port, moving us away from
isolated evaluations.

Bottlenecks result from the systemic interaction of the threads.

41
In the first instance, the 5YP21 is simulated considering its current
performance, to then give way to the simulation of projects and initiatives.
> Tenemos una condición inicial que presenta diversos cuellos de botella a lo largo del tiempo.
> Para hacer frente a esta condición inicial, en conjunto con el equipo de BHP, se integran una serie de iniciativas y proyectos.
> La simulación con iniciativas muestra como se modifican los cuellos de botella, reduciendo las alarmas principalmente en
transporte.

Projects to improve the availability and use of equipment, water


supply, connection between stockpiles, among others.

! Bottleneck

! Warning

! Enabler

42
Finally, the results of the analysis showed that by integrating various
initiatives, the projected compliance for the 5YP increases from 97.4% to
99.4%.
Base Current Performance 5YP with mitigation initiatives

Bottleneck Effect Possitive impact generated by initiatives

43
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
4.1 Digital Twin Study Case: Radomiro Tomic Open Pit Mine – Codelco, Chile

4.2 Digital Twin Study Case: Minera Escondida Open Pit Mine – BHP, Chile
4.3 Digital Twin Study Case: CMP Iron Ore Mines – CAP, Chile

4.4 SIMPLAN Study Case: Los Bronces – Anglo American, Chile


5. Simulations to assess the insertion of new technologies
6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

44
In CMP we have covered the previously described methodology, identifying
clear possibilities to strengthen and improve the operation’s current state.
The project had a first stage of diagnosis from which a first idea of ​the potential bottleneck was obtained.
Then, the simulation model was generated in order to more accurately identify bottlenecks and thus
project production and test improvement initiatives.

Methodology

A mine-to-port simulation model was


A diagnosis of the operation is made Short and long-term initiatives are Mitigation initiatives are evaluated to
generated in order to project
from a quantitative analysis of the generated that seek to stabilize and quantify their impact at a systemic
production and determine systemic
information collected. optimize production. level.
capacities and bottlenecks.

> Information gathering. > Simulation (Digital Twin) of the mining > Review of simulation model results. > Simulation of initiatives.
> Information analysis. system. > Workshop for generating improvement > Identification of new bottlenecks.
> Carry out a diagnosis at the process > Identify bottlenecks in the mining system (or mitigation) initiatives. > Quantification of the impact of the
level. in the context of the production plan. initiative at the Key Value Drivers level.
> Make field visits (if necessary) > Reportability.
> Identify main opportunities in the
processes and organizational system.
> Identify risks and opportunities

45
For CMP we currently have an integrated and systemic simulation model of
the three valleys.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : C M P H I G H L I G H T S

Bottlenecks result from the systemic interaction of subprocesses

46
The current state simulation showed that under current performance
conditions there would be an 82% compliance of the LOM plan.

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : C M P H I G H L I G H T S

For the long term, the


projection of the current
condition would generate
82% compliance with the
LOM (until 2030).

47
In the next stage, several short and long term initiatives were generated…

Statistical Definition of Incorporation of Integration to Analysis of Future


Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : C M P H I G H L I G H T S

Short Term Long Term


• Increase plant Base case with Stabilization of Improvement in Optimization of
Actual Case production
production Project in plant production availability
• Stabilize maintenance
• Stabilize plant • Operation condition • Increased • Greater feed to mill • Increased efficiency • Release RCA
maintenance 2018 production capacity Pellet mill of loading operation
of the Magnetite • Pellet Chip equipment and • Achieve 95%
• Optimize stock tonnage
Plant Generation CAEX utilization in
• Optimize preconcentrate
Decrease • Increase to 90% grinding
transport between mine
• 2% increase in availability of plant • Achieve an
and plant
availability: benefit increase in plant
• Improve process control
o Benefit plant production,
• Improve quality of green
pellets

48
By simulating again, this time with initiatives, we see an increase in
compliance going from 82% to 93%, and giving an additional value of $ 518
MUSD.
Statistical Definition of Incorporation of Integration to Analysis of Future
Digital Twin
Analysis Technical Limits Initiatives Mine Plans Scenarios
U S E R C A S E : C M P H I G H L I G H T S

82%
to $518
93% MUSD
compliance additional
value

49
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
4.1 Digital Twin Study Case: Radomiro Tomic Open Pit Mine – Codelco, Chile

4.2 Digital Twin Study Case: Minera Escondida Open Pit Mine – BHP, Chile
4.3 Digital Twin Study Case: CMP Iron Ore Mines – CAP, Chile

4.4 SIMPLAN Study Case: Los Bronces – Anglo American, Chile


5. Simulations to assess the insertion of new technologies
6. Simulation in Underground Mining

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

50
SIMPLAN: Capable of capturing a variation of the feeding capacity to a
process [Mt] and the effect on its cut-off grade [% Cu]
Context: 5YP-19 of Mine X Additional comments:
Software: SIMPLAN
Results: Total sum of tonnage fed and simulated cut-off grade to Mill process during the 5 • Two types of materials can be fed to the Mill
years of the plan
and Sulphide Leaching (SL): sulphides and
Conclusion: Inverse effect between feeding a process and its respective cut-off grade. marginal sulphides. However, in the plan the
sulphides go to Mill, while the marginal
sulphides go to SL.

• -40% represents that the feed decreases 40%


with respect to the plan.

• The validation of this simulation is achieved


through an operational philosophy of prioritizing
the origin-destination combinations of the plan
by 90% and the remaining 10% of prioritizing
the best grades.

• The simulation aims to saturate Mill's capacity.

• As Mill's capacity decreases, higher grade


sulfide materials feed the process. While when
the capacity increases marginal sulfide
materials of lower grade, they go to the process.

51
Evaluate the 5YP of Los Bronces copper operation: 2017-2018

Model Validation Definition of Risk and Opportunity Scenarios

52
Evaluate the 5YP of Los Bronces copper operation: 2017-2018

Risks & Opportunities Simulation

Deviations in the extraction of pushbacks:

53
Evaluate the 5YP of Los Bronces copper operation: 2017-2018

Discrete Scenarios Stochastic Scenarios Discrete Scenarios Stochastic Scenarios

54
Agenda

1. Introduction: REDCO Mining Consultants

2. Simulation Concepts
3. Our Digital Tools
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


5.1 Study Case: IPCC and HAC technology implementation at Radomiro Tomic Open Pit Mine – Codelco, Chile

5.2 Study Case: Comparison of the performance of two truck fleets at QB2 – Teck, Chile
6. Simulation in Underground Mining
7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

55
REDCO’s Methodology to Assess Technology Value Proposition

Step 1 Step 2 Step 3


Elaborating a diagnosis of the Operational philosophy and Mine planning and risk/return
actual state and its potential determining new design variables analysis using the Technology
Define the actual state of the mining Define an operation philosophy Mine planning incorporating the new design
operation. considering the incorporation of these new variables.
• Assess its current technologies technologies.
• Elaborate a base case for comparison • Simulate (Digital Twin) in the mining Evaluate different scenarios in order to
purposes context how the new technology works derive an efficiency frontier.
and verify the value levers. • Generate different risk/return points
Validate base case. considering the use of the new
Extract the design, planning and operation technology
Characterize new technologies in terms of variables that are ad hoc to the technology.
its value levers that help the mine reach its • Slope angles
full potential. • Geometries
• New maintenance profiles
Example: TBM for tunnel construction for • New unit operations required by the new
Block Cave Layout technology
• Others

56
Agenda

1. Introduction: REDCO Mining Consultants

2. Simulation Concepts
3. Our Digital Tools
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


5.1 Study Case: IPCC and HAC technology implementation at Radomiro Tomic Open Pit Mine – Codelco, Chile

5.2 Study Case: Comparison of the performance of two truck fleets at QB2 – Teck, Chile
6. Simulation in Underground Mining
7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

57
In-pit crushing and conveyor systems have gained popularity in the industry
due to the increase in pit depths and hauling costs.

Given the increase in depth hauling costs and its significant participation in the OPEX of an open pit mining
operation, it is essential to evaluate other hauling options.

Challenges

> Reduce vertical transportation costs.


> Reduce carbon emission.
> Maintaining the general philosophy of the pushback
design.
> Potentially high vertical development ranges.
> Potentially high pushback productivity.
> Maintaining mining flexibility such that Blending
restrictions are achieved and that excavated material
can go to a number of destinations for ore and waste.
Typical operating cost distribution in large open pit mines (Based on examples in Chile/USA at 600
kt/day operation using conventional shovel-truck methods)

Under this context, the use of high productivity conveyor belts is considered

58
Finally, its not a trivial decision whether to apply or not an IPCC/HAC
technology.
Values
represent
Only the cost per
trucks ton ($/ton).

Hauling
+ IPCC

Hauling IPCC + Hauling


d_1

IPCC +
Hauling Hauling
Trucks Trucks
v

59
In general, advantages of the system are associated with higher productivity
and cost reduction, while disadvantages are linked to a lack of flexibility.

Advantages Disadvantages

1> Energy efficiency 1> Higher CAPEX than truck fleet


o Electricity cost versus diesel cost (approximately 2> Operation is dependent on availability and reliability
25% lower cost) of crushing and conveying system.
2> Minimize haulage distance, generating a decrease in o Loss in operational flexibility
cycle time. 3> Relocation of crusher and extension of conveyor
3> Lower operational costs requires time and capital expenditure.
o Energy 4> IPCC and Shovel do not operate together
o Maintenance 5> Less flexible in mining layout.
o Consumables 6> Less flexible in capacity.
4> Environmental advantages
o Electrical equipment vs fuel
o Prevention of dust on haulage route
o Less consumption of energy and consumables
>5 Minimization of queuing
>6 Operational continuity
>7 Increase in safety due to less exposure of personnel.
>8 Less sensitive to weather conditions

60
The planning for an IPCC project consists in four main steps:

1 2 3 4
Crusher Type Crusher Location Dump Location Conveyor Route

Simulations serve as a support tool for these stages in order to make robust and
objective design and operational decisions

61
Simulation plays a key role in the evaluation of new technologies…

Example
“In-pit crusher location can be considered multifactorial dynamic location problem”
Factors affecting optimum location and relocation time for IPCC The Role of Simulations

Haulage distances and truck Conveyor operating cost (per ton) Integration of the mine plan in
1 5
operating costs vs. truck operating cost (per ton) order to assess technology based on
these given conditions (planned and
Mine schedule and block Additional haulage cost in designed)
2 6
sequences relation to pit depth
Obtain more reliable insights to
3 Rate of increase in haulage 7 Cost for relocation of the system
support an IPCC or any other design
cost with increasing haulage (including engineering,
project
distance and time (predicted disassembling, installation, labor,
haulage cost) and others)

4 Scheduled hours and time Understand the role of


required for the relocation planning and design ad hoc to
the underlying material handling
technology

62
REDCO has used simulation models to assess the implementation of HAC
and IPCC systems.

One of CODELCO’s assets, Radomiro Tomic, requested REDCO to evaluate the implementation of a high
altitude conveyor system (HAC) and an in-pit crushing and conveyor system (IPCC) in comparison to its
current shovel-truck system.

Context Problem Visualizations


> Open-pit mine in the north of
Plant
Chile.
> Oxide and Sulfide minerals. Projects an increase in their haulage
cost due to deepening of the pit and
> Produces mainly cathodes,
consumables cost.
while their sulfide ores are
processed in Chuquicamata’s
concentrator plant. Dump Crusher
> Radomiro Tomic is a world-
class benchmark due to its
modern and efficient
operational model.
> 2019 produced 266.415
metric tonnes of copper fine.
> 1,252 workers.

63
We simulated three main cases considering (1) Operations current state, (2)
Operation with HAC system, and (3) Operation with IPCC system.
6 6
6
7 7
1610 7
2560
1900 1080

1 1

900
1
374
5 5
Correa Correa
1350 2 Canchad 2 Canchad
190 4 or 4 or

350
204 5 305 370 300
Hacia Planta Hacia Planta
Correa
780 500
2 2800 Canchad
or 1000
3 3

1300
4 1590
D
8
9 B 8
9 A
Hacia Planta A C
3 C B

1. Production point #1 (1 shovel) A. Center of Feeder Brakers 1. Production point 1


2. Production point #2 (1 shovel) B. HAC Conveyor Belt (Option 1) 2. Production point 2
3. Production point #3 (1 shovel) C. HAC Conveyor Belt (Option 2) 3. Production point 3
4. Production point waste #1 (3 shovels) D. Surface conveyor belt A. Central crusher
5. Ore Crusher (2 unloading points) B. IPCC Conveyor Belt
6. Dump (6 unloading points) C. Surface conveyor belt
7. Parking

64
The results of the simulation showed that the implementation of an IPCC
system was more beneficial in terms of productivity and cycle time than the
rest of the options.
HAC A + HAC B + IPCC
Only Trucks
Trucks Trucks

Autonomous HAC IPCC


Base Case Case 1 Case 2 Case 3
N° Trucks 70 67 58 58
Ore Shovel 1 3,015 2,701 1,813 2,781
Ore Shovel 2 2,766 2,624 2,206 3,534
Ore Shovel 3 2,538 2,446 2,555 3,534
Waste Shovel 1 4,255 4,532 4,255 5,158
Waste Shovel 2 4,002 4,179 4,007 4,858
Waste Shovel 3 4,443 3,712 4,443 5,385
Mean Productivity (KTPH) 21,019 20,194 19,279 25,250
Mean Cycle Time (MIN) 56 56 49 44
Mean Utilization (%) 78% 69% 72% 77%

65
This derived to a final cost evaluation of the system resulting in a decrease
in the number of trucks, a saving in truck OPEX, a saving in crushing cost
and a lower productive variability.
Results
Hauling mine cost ($/t)

> CAPEX HAC: $155 MUSD


1.55 $/t > Lower number of hauling
1.36 $/t trucks
1.34 $/t > Saving in hauling truck OPEX
2,100 Mt

1.26$/t
> Saving in crushing
1,622 Mt

1,500 Mt

1,260 Mt
> Lower productive variability

% Usage of IPCC/HAC
0% 22% 30% 40%
DVAC ($)

103 trucks -6%


-7%
130 Ktpd, 99 trucks
-11%
164 Ktpd, 97 trucks
213 Ktpd, 85 trucks

Movement with MAP


Movement with trucks

66
Agenda

1. Introduction: REDCO Mining Consultants

2. Simulation Concepts
3. Our Digital Tools
4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


5.1 Study Case: IPCC and HAC technology implementation at Radomiro Tomic Open Pit Mine – Codelco, Chile

5.2 Study Case: Comparison of the performance of two truck fleets at QB2 – Teck, Chile
6. Simulation in Underground Mining
7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

67
In 2019 REDCO was asked to assess the performance of two truck fleets
taking into consideration the effect of high altitude deration at Quebrada
Blanca 2 (QB2), property of Teck.

• To determine the effect of high altitude deration on the performance of a Truck Fleet A;
Objectives • To compare the performance of a truck fleet of Truck Fleet A and a fleet of Truck Fleet B;
• To evaluate the extent of this effect in the surface mining project

68
As a first step we gathered information regarding the different equipments
and the mine plan for QB2.

Loaded (522 tonnes) Unloaded (231 tonnes) The benefit of one fleet over the
Derration Uphill Horizontal Downhill Uphill Horizontal Downhill
Truck Scenario
effect (%) speed speed speed speed speed speed
other is that Truck fleet B is
(km/h) (km/h) (km/h) (km/h) (km/h) (km/h) not affected by deration,
Base 100% 12.0 45.0 20.0 25.5 46.0 30.0 versus the Truck fleet A, which
1 85% 10.2 38.3 17.0 21.7 39.1 25.5
Truck Fleet A is affected. (Deration affects
2 90% 10.8 40.5 18.0 23.0 41.4 27.0
3 80% 9.6 36.0 16.0 20.4 36.8 24.0
speed of truck).
Truck Fleet B Base 100% 12.0 45.0 20.0 25.5 46.0 30.0

103 103 102 101 100 100 97 96 95 Length (km)


93
Equivalent Distance

49
2 3 3 3 3 3 3 3 3 3 Total Distance

1 2 Ramp Distance

Horizontal Distance

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Mine to Plant Stock to Plant Mine to Stock Mine to Dump

69
Secondly, we developed a Digital Twin of the pit, considering the topography,
the hauling distances and different destinations.

Conceptual Model of QB2 Digital Twin Model Digital Twin Model Components

Largest copper producing mine in the world

> 3 shovels and a loader are considered to avoid


queueing of the trucks
> Trucks move at average speed at all times
> Fixed loading and unloading times were used
> 2 shifts per day, 12 hours per shift
> Trucks are assigned based from a plan
requirement;
> Operational parameters were considered from
a similar mine;
> The model seeks to replicate the planned
movement, not exceed it
> Distances were estimated by adjusting the
existing layout for QB1 to meet the truck
requirement.

70
Simulations showed a clear advantage in performance of one fleet over the
other, reaching a maximum difference of upto 4 trucks in the worst
conditions.
# of Required Trucks – Base Case – 85% Deration Effect
Truck Fleet B +3 +3
BY SELECTING KMS 930
Truck Fleet A +2 EQUPMENT THERE IS A
+2 CAPITAL SAVING
+2 EQUIVALENT TO

2-3 TRUCKS

PERCENTUAL
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
SAVING ON
# of Required Trucks – Best Case – 90% Deration Effect # of Required Trucks – Worst Case – 80% Deration Effect INVESTMENT IN
+2 +4
CAEX
+2 +4
+2 +3

+1 +3 11%
+1 +2

~ $10 MUSD
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

71
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining
6.1. Study Case: Digital Twin Model to determine Andina III Panel full potential – Codelco, Chile

6.2. Study Case: Chuquicamata Underground Project: One Pager


6.3 SIMPREP – Digital Tool to support the planning process of development and preparation tasks

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

72
In addition to our open-pit simulations, we have also developed various
models for underground operations…
Simulation Model as an evaluation tool to estimate the compliance of the Evaluation of Minera Escondida’s underground project to provide continuity
Full potential analysis of Andina III Panel – CODELCO
Chuquicamata Underground project ramp-up - CODELCO to the operation – BHP

Assessment of the development and preparation processes using a


Simulation to evaluate the productivity of using semi- Evaluation of Chuquicamata Underground Project extraction layout in terms
traditional method based on Drill and Blasting versus one using a TBM –
autonomous LHD in El Teniente – CODELCO of recovery, dilution and interaction height.
Chuquicamata Underground Project, Codelco

73
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining
6.1. Study Case: Digital Twin Model to determine Andina III Panel full potential – Codelco, Chile

6.2. Study Case: Chuquicamata Underground Project: One Pager


6.3 SIMPREP – Digital Tool to support the planning process of development and preparation tasks

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

74
Context: Andina Division – Codelco, Chile

División Andina Resources and reserves Study Context

Ore Grade Copper


> Production of 170,274 (Mt) (CuT %) (Mt)
> Underground mine has
metric tonnes of copper. been challenged to
> 2,771 workers > Measured 1,261 0.77 9.8 increase its daily
> Underground and open > Indicated
production from its
894 0.77 6.9
pit mine average 29,000 tpd to
> Operating since 1970 > Infered 1,984 0.82 16.3 34,000 tpd.
> Los Andes, Región de > REDCO has been hired to
Valparaíso > Total 4,139 0.80 32.9 perform an analysis to
> Copper concéntrate evaluate different
> Seeks to increase its Ore Grade Copper alternatives to increase the
current processing plant (Mt) (CuT %) (Mt) mine’s production in a
from 95,000 tpd to 0.69 1.5
stable manner.
> Proven 219
150.000 tpd.
> Probable 943 0.69 6.5

> Total 1,163 0.69 8.0

75
The simulation model has the production level layout, with all its drawpoints
and ore passes...

76
...and also the hauling level with its silos.

> Model Components


o 898 draw points
o 10 LHD
▪ Velocity profile
▪ Loading factor
o 10 Dumpers
▪ Velocity profile
▪ Loading factor
o Operational factors
▪ Availability
▪ Performance
▪ Utilization → Output of the model
o Maintenance calendar for each LHD and Dumper
o Hang-up frequency
o Oversize frequency
o Infrastructure
▪ 62 ore passes
▪ 35 intermediate silos
▪ 9 plant silos
o Operational times (per shift)
o Cycle time calculation
o Logics / Operational philosophies

77
Simulation model to support operational planning – Andina Division,
Codelco.

It was possible to derive that by


stabilizing the operation there could be
an increase of approximately 4,000 tpd,
reaching a maximum systemic
capacity of the III Panel is of 32,300
tpd or 1,002,000 tonnes per month
with an availability of 75% and a
utilization of 55.8%.

78
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining
6.1. Study Case: Digital Twin Model to determine Andina III Panel full potential – Codelco, Chile

6.2. Study Case: Chuquicamata Underground Project: One Pager


6.3 SIMPREP – Digital Tool to support the planning process of development and preparation tasks

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

79
Evaluation of mining system’s capacity to meet the production program -
Chuquicamata Underground Project, Codelco.

Digital Twin Digital Twin Components:


• 20 macroblocks + extraction points availability.
• LHDs
• 8 crushers
• Conveyor system (underground and overland)
• Feeders
• Distribution Silos
• Pile Mine + Pile RT
• SAG and Conventional Plants

Digital Twin Results:


60.00 Marinas
Starting from 2020 there is a lack
50.00 of compliance of the plan. Ch 8

Ore Tonnage [Mt]


Ch 7
40.00
Ch 6
30.00
Ch 5
20.00 Ch 4
10.00 Ch 3

0.00 Ch 2
2019 2020 2021 2022 2023 2024 2025 Ch 1
Year Tonelaje Planificado

CHANGE IN OPERATIONAL PHILOSOPHY OF ADITIONAL INCOMES OF


LHDs TO CRUSHRES, INCREASING
EFFECTIVE OPERATING HOURS FROM 16.4
HRS/DAY TO 100% $176 MUSD
compliance
19.3 hrs/day IN THE FIRST 5 YEARS OF
RAMP UP

80
Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts

3. Our Digital Tools


4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks

5. Simulations to assess the insertion of new technologies


6. Simulation in Underground Mining
6.1. Study Case: Digital Twin Model to determine Andina III Panel full potential – Codelco, Chile

6.2. Study Case: Chuquicamata Underground Project: One Pager


6.3 SIMPREP – Digital Tool to support the planning process of development and preparation tasks

7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

81
SIMPREP: Development & Preparation Tool
Meters Monthly Plan

Catch-up

Advanced
Meters

Real

Period
(shift)
x-1 x x+1 x+2 x+3

Work Front 1
Work Front 1
SIMPREP:
• Multiple work areas per shift (transactions) Work Front 2 Advanced
• Transactions with unit operations attributes (hours) Work Front 2 Meters
• Independent capacity per unit operation (hours) Work Front 3
• Sequencing of unit operations Work Front 3
• Unit operations that must be fully completed Work Front 4
• CatchUp (advances and delays recovery) Work Front 4
• Reportability in development hours or meters of progress
• Possibility of calculating resource consumption (ex. bolts)
Real Simulation

82
SIMPREP: Development & Preparation Tool
Development Plan and Operating hours according to unit operation: plan input and Simulation results: operating
Capacity distribution simulated hours and meters of progress
Sector / Work Front

83
SIMPREP: Development & Preparation Tool: Application at Chuquicamata
Underground Project

Compliance projection and Catch-up Opportunity Automation in the generation of the Shift Plan for Chuquicamata Underground
Sector Área de trabajo 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 Uso frente (h)
Simulación de medidores acumulativos de preparación total OFICINA 01 - - - PP PP PP PP L L L L - M M M M - - - - - - - - 6.0
TALLER/ POZO - - - AC AC PP PP PP PP - - - - - - - - - - - - - - - 3.0
B. CÍVICO TALLER 01/ SALA BOTAS - - - L L L L - - - - - - - - - - - - - - - - - 2.0
160 NORTE AC PD N41/N52 01 - - - LP MT PA PA PA PA - - - - - - - - - - - C C C Q 5.0
PAÑOL 01 - - - LP H H H SH SH - PA PA PA - - - - - - - C C C Q 6.5
140 OFICINA 02/AC PD N41/N52 01 - - - - - AC - PP PP L L L L - M M M M M - - - - - 6.0

CA-PD-N41-01-W / AC-CA-PD-N41-01 - - - H H MT PA PA PA PA - - - - - - - - - - - - - - 3.5


120 CA-PD-N41-01-E / AC-CA-PD-N41-01 - - - - - - - - - PP PP PP PP L L L L - M M M M - - 6.0
Total Meters

N03 CAB PD N42 01 - - - - LP LP MT - - PA PA PA PA - - - - - - - C C C Q 5.5


100 CA PD N42 05/CAB PD N42 01 - - - - - - - - - PP PP PP PP L L L L - - M M M M - 6.0

80 N03 X CAB 1 CA-PD-N01-01-E / CAB-PD-N41-01 - - - - LP H H - - SH SH - MT PA PA PA PA - - - C C C Q 7.0

60 B. CÍVICO SUR GALERIA CARGA Y DESCARGA - - - - - - - - - - - - - - - - - PA - - - - - - 0.5

CAB-PD-S04-01 - - - RM - E E E E - - - - - - - - - - - AC PP PP - 4.0
40 AC PD S03/S04 01 E / CAB PD S03 01 - - - RM - - E E E E - - - - - - - - - - - AC - - 3.0
CA PD S03 01 E / CAB PD S03 01 - - - - - - - - - E - - - - - - - - - - - - M - 1.0
20 CA PD S03 02 E / CAB PD S03 01 - - - - - - AC - - - - - - - - - - - - - - - - - 0.5
FR-EXS-S03-02 - - - SH SH - - - - - - - - - - - - - - - LP MT PA - 2.5
S03 E/ CAB1 Z5S / CA-PD-S03-02 - - - - - - - - - - - - - - - - - AC - - - - - - 0.5
0
26/06 26/06 27/06 27/06 28/06 28/06 29/06 29/06 30/06 30/06 Z5N / CA-PD-S03-02 - - - M M M M H H H H - - - - - - - - - SH SH - - 5.0
A B A B A B A B A B Z7N/CA PD S03 02 - - - L L L L - M M M - - - - - - - - - - - SH - 4.0
Z8N/CA PD S03 03 - - - PP - - - - - - - - - - - - - - - - - - - - 0.5
CatchUp Delays [h] 0.0 3.6 7.2 7.2 10.8 10.8 18.0 25.2 28.8 32.4
FR-EXS-S03-01 - - - RM - - - - - - E E E E - - - - - - - - - - 2.5
CatchUp Advanced [h] 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6
Actual [h] AC-PD-S03/S04-01 - - - - - SH SH - - - - - - - - - - - - - LP - - - 1.5
10.8 21.6 32.4 46.8 57.6 72.0 79.2 86.4 97.2 108.0
CA-PD-S03-01 - - - - - - - - - - - SH - - - - - - - - - LP - - 1.0
CatchUp Total [h] 14.4 28.8 43.2 57.6 72.0 86.4 100.8 115.2 129.6 144.0 Z9S/CA PD S03 01 - - - MT - - - - - - - - - PA PA PA PA - - - - - - - 2.5
S03 Z8N / CA-PD-S03-01 - - - RM - - - - - - E E E E - - - - - - - - - - 2.5
Planned [h] 14.4 32.4 43.2 61.2 72.0 93.6 108.0 118.8 133.2 147.6
Z8S / CA-PD-S03-02 - - - - - - - - - - - - - - - - - - - - - - AC - 0.5
Z8N / CA-PD-S03-02 - - - - - - - L L L L - - - - - - - - - - - - - 2.0

OTRAS CA OO - - - - - - - - - - - - - PP PP PP PP L L L - - - - 3.5
Period [Shift]

84
85
Application Example:

Maximum Potential Current State


Agenda

1. Introduction: REDCO Mining Consultants


2. Simulation Concepts
3. Our Digital Tools

4. Using Simulation Models to Optimize Operational Productivity through Efficient Management of Bottlenecks
5. Simulations to assess the insertion of new technologies

6. Simulation in Underground Mining


7. Enhancing operational discipline through the incorporation of a Mine Compliance KPI

86
Mine compliance is a fundamental element to avoid degrading the value of
the business.

Context: During the past 20 years, almost all industries have


experienced several initiatives aimed at improving project NPV
BEST CASE
performance and product quality. The fundamental motivation
of these efforts is that undisciplined execution leads to PLAN SEQUENCE

inefficient performance and defective products (value-loss). $


Stay in Business Expenditure
ΔSIB
It is not enough to measure the efficiency of execution, but it NON COMPLIANCE
OF PLANNED SEQUENCE
is also necessary to understand the process of: ΔSIB

ΔSIB WORST CASE


• Planning, understood as the design and dimensioning of
the strategy to achieve a goal.
• Programming, understood as the scheduling of activities Tiempo

to achieve a goal. Pushback 1


The lack of compliance generates a
Pushback 1 degradation in the value of the business
Pushback 2 through a variation in the execution time of
Pushback 2 the plan and an increase in the cost. In
$
Pushback 3 addition to this, there are also implications
Pushback 3 in recovery, grade and dilution that end
➢ Compliance is responsible for controlling the execution
Pushback 4 up damaging the integrity of the
and quality of the operation with respect to a robust and Pushback 4 business.
coherent plan.

➢ Motivation: Monitor adherence to the plan, since


deviations generate losses of value to the business.

87
Definition of different compliance metrics.

Zone Ton Legend

Real vs Plan Spatial Compliance Adherence


Plan Volumetric Compliance

88
KPI Mine Compliance Metric

System

Frequency
Simulation in
Arena

Frequency
Operation
behavior

%
Reliablity
Budget Plan

Frequenc
Reliability

y
Performance

89
Comparison KPI Mine Compliance – Results FY18 Mine A

Exercise to validate the metric with actual FY18 Actual Information FY18

PUSHBACKS YTD
Inputs Mton Pi Mt Plan (Budget) Plan Actual %
Input Loading 428 55% S03C-E04C 98.9 85.6 87%
Input Hauling 424 52% N015 6.1 6.1 100%
Input Crusher 132 54% N016 59.9 55.9 93%
E006 74.7 74.2 99%
PL01 66.6 63.5 95%
Plant Waste+Stock Mine N456 20.1 14.4 72%
Plan 132,900,556 291,637,128 424,537,684 N008 64.1 64.1 100%
Average 143,703,750 294,387,700 436,091,450 N009 32.8 31.7 97%
SD 2,997,238 27,171,854 26,967,050 SPATIAL TOTAL 423.1 395.5 93%
Reliability (Plan) 100% 54% 60%
Mt Plan (Budget) Plan Actual %
Volatility 2.09% 9% 6.16%
VOLUME TOTAL 423.1 416.4 98%
Cpk 0 0.9 0.9
LEI 134,712,037 212,872,137 357,190,299
LES 152,695,463 375,903,263 518,992,601
KPI Mine Compliance 93.47% 91.51% 94.50%

➢ KPI Mine Compliance is consistent with FY18 Results


Unplanned Delay

90
Comparison KPI Mine Compliance – Results FY18 Mine B

Exercise to validate the metric with actual FY18 Actual Information FY18

Inputs Mton Pi
Input Loading 109,4 54%
Input Hauling 109,4 49%
Input Crusher 15,6 58%

Plant Waste+Stock Mine


Plan 15,652,120 93,805,635 109,457,755
Average 18,153,250 87,263,850 100,417,100
SD 1,030,034 5,125,650 5,048,133
Reliability (Plan) 99% 11% 10%
Volatility 5.67% 6% 4.79%
Cpk 1.0000 0.3056 0.34
LEI 15,063,148 71,886,901 90,272,700
LES 21,853,953 98,305,102 116,786,274
KPI Mine Compliance 99.91% 65.71% 75.04%

➢ KPI Mine Compliance is consistent with FY18 Results

91

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