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MassMin 2016 Super Caves
MassMin 2016 Super Caves
Considerations and Risks
C deWolfe1 and I Ross2
ABSTRACT
Block caving has been the favoured mining method for large underground hard rock mines for the
last few decades. The orebody must be of a size large enough to cave and generally amenable to a
caving method. Typically, these mines ranged from 15 000 to 50 000 tonnes per day (50 kt/d) and
have been some of the largest and most productive underground mines in the world.
Now mining companies, in the quest for improved shareholder return, are looking for higher
production rates from new underground mines. Whether a ‘Greenfields’ development, or a
replacement for ageing large open pit mines, minimising capital and maximising production has
been a focus of project teams. These new block cave mines are what have become known as ‘super
caves’. These caves range from 80 kt/d to over 150 kt/d and are being planned or constructed by
several major mining companies including Codelco, Freeport-McMoRan, Newcrest and Rio Tinto.
Issues facing these super caves include high initial capital costs, very long development periods
and significant technical challenges. These issues tend to make it difficult to present an attractive
business case for such a project.
This paper will discuss some of the potential benefits as well as the technical challenges and
risks of operating a mine with the block or panel caving method at these very high tonnage rates.
Considerations including geotechnical conditions, development rates, panel widths and ore
column heights are discussed. The risks associated with these technical challenges and potential
benefits for successful approaches will also be discussed.
INTRODUCTION
Block caving and panel caving are mining methods that are Resolution (Arizona, USA) and Oyu Tolgoi (Mongolia).
used in massive orebodies that have a large enough footprint Newcrest has recently developed a super cave at Cadia East
to allow the initiation of caving and a sufficient vertical (Australia). Freeport has been operating the Deep Ore Zone
component to sustain production operations. The methods (DOZ) mine since 2000 and in 2010 the annual production rate
are not new as the first recorded examples are from around reached 80 kt/d.
1907 (Peele, 1918). These have been some of the largest and Given the long lead times on establishing a block cave,
most productive underground mines in the world with and the large capital costs involved, it may appear counter-
production tonnage rates ranging from 10 kt/d to 50 kt/d. intuitive that the fundamental reason for considering super
However, in the 21st century, many mines are considering caves is to improve value. Casten, Acton and Johnson (2012)
even larger underground operations, in the quest to improve
indicate that the estimated capital cost for the Grasberg Block
shareholder value. For example, Wellman et al (2012) noted
Cave (GBC) is US$3.7 billion and has a 12 year lead time from
that the Grasberg Block Cave was conceptually planned at
commencement of initial access development through to the
50 kt/d, and by 2003 was studied in prefeasibility at 110 kt/d.
production of the first tonne of caved ore. This mine is planned
At the end of the Feasibility analysis this had increased to
to ultimately produce 160 kt/d. Other mines mentioned in
160 kt/d.
the same paper, Deep Mill Level Zone (DMLZ) and Kucing
Brown (2007) classifies ‘super caves’ as those cave mines Liar (KL), each have approximate costs of US$2.0 billion and
producing more than 25 Mt per annum and this equates to will produce up to 80 kt/d and 100 kt/d respectively. These
around 70 kt/d. Several major mining companies such as are all ‘brownfields’ projects as the treatment facility and
Codelco, Freeport-McMoRan, Newcrest and Rio Tinto are infrastructure already exist – the mine site in Indonesia has
studying, planning or building super caves with tonnage been operating since 1973.
rates from 80 kt/d to over 160 kt/d. These caves are also
planning to extract ore column heights from 300 m to as much
as 1000 m from a single production level. Codelco is planning BENEFITS
super caves at El Teniente and Chuquicamata (Chile); In order for these projects to be financially attractive, it is
Freeport-McMoRan is planning two caves at the Grasberg important to achieve high rates of development advance, in
complex (Indonesia) and Rio Tinto also is planning two, at order to reduce lead time, and strive for correspondingly high
SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016 51
C deWolfe and I Ross
52 SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016
Super Caves – Benefits, Considerations and Risks
from underground using a caving mining method. The caves, given that most of them are at depth, the basic decision
specific issues of orebody geometry, as well as factors such as that must be made is whether to hoist ore in a vertical shaft or
geography, climate and proximity to infrastructure, will affect convey through a decline.
the transition point from open pit to underground (Ross, 2014). The current trend is to opt for conveyor systems through
As stated above, orebodies must have both sufficiently large declines. Cadia East, for example, has selected a conveyor
footprints to allow sufficient numbers of drawpoints as well system, even though the Lift 2 extraction level (PC2 S2)
as sufficient vertical height in order to sustain high production is almost 1500 m below surface (Dunstan et al, 2012) (see
rates. The various super caves have differing approaches, Figure 3). This may seem ‘unconventional’ to convey from this
with Chuquicamata planning relatively short columns of depth, but the issues associated with hoisting over 70 kt/d
216 m (Aguayo, Uribe and Pedrero, 2012), through 390 m at are even more daunting. The depth and payload limitations
OT (Sinuhaji, Newman and O’Connor, 2012) to over 800 m at imposed by current hoist rope technology mean that multiple
Cadia (Dunstan et al, 2012). The norm appears to be around winders need to be installed in a shaft and also multiple shafts
the 500 m mark at GBC, DMLZ and Resolution (Pascoe, Oddie are required to allow the levels of production required from
and Edgar, 2008). those depths. Hoisting requires buffering capacity between
flights, which necessitates the excavation of storage bins,
Design issues as it is essentially a batch system (Spreadborough, 2015).
Buffering also requires additional feeders and mechanical
Access – shafts or declines infrastructure, which add to cost and potentially reduce
The orebodies for the currently planned super caves are very availability, by requiring regular planned maintenance of
large and are either very deep, or have unfavourable terrain for wearing parts. Conveying appears to be more cost efficient
easy access. As a result, they require numerous shafts, adits or irrespective of depth when compared directly with hoisting.
declines to provide access, ventilation and material handling Issues of ventilation, geotechnical risk during excavation
paths (both logistics for men and materials as well as ground and travel times may be the ultimate factors that determine
handling facilities) for the mine. Much of this mining and whether shafts or inclined conveyor systems are employed.
construction must be done prior to first production resulting Further improvements in conveyor technology, have the
in preproduction development periods of anywhere from ten potential to reduce the number of flights (and transfer points)
to 14 years (if no additional delays are encountered). This is required for a given depth.
far from ideal from a financial analysis viewpoint; however, In short, hoisting appears to have been overtaken by
it is a real constraint. There is a limit to what advance can improvements in conveyor technology. This could be the key
be achieved through a single access point (shaft or decline) enabler for increased capacity for super caves.
and each access point represents a major investment. There is
still significant debate about the limitations of decline access Extraction level layout
compared with shaft access for deep mines. When designing the layout of the extraction level of a super
The old rule of thumb of 500 m being the depth at which cave, consideration should be given to the geology/geometry
shafts surpass the decline access appears to be redundant. of the orebody. Two basic approaches that are used are either
This is probably due to the changes in inclined haulage long, moving panels or discrete blocks.
technology, whether it be trucks or conveyors. Both have
improved in terms of power and efficiency, allowing steeper Panel
declines to be designed. This in turn reduces the distance to be A panel cave has the advantage of concentrating mining activity
developed (to reach the same depth). In the context of super and only requires a single undercut face to be advanced. This
SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016 53
C deWolfe and I Ross
has been the approach planned at Resolution (Pascoe, Oddie operated and managed independently. However, there are
and Edgar, 2008). However, depending on the width of the limits to the ‘independence’ of the blocks as there will be a
panel, column heights and the planned output (discussed in degree of interaction, based on the separation distance. Where
the ‘Technical Issues’ section), the panel may need to advance the ‘macro block’ approach is considered, sequencing and
in both directions to provide sufficient capacity, as indicated stress considerations will be critical to success. Additionally,
at OT (Sinuhaji, Newman and O’Connor, 2012) (see Figure 4). the need for common infrastructure to support the blocks is
This was also the approach originally planned at GBC until key to keeping costs down and improving efficiency.
2008 but this was subsequently changed and analysed in The use of separate blocks as opposed to continuous panels
2011 (Wellman et al, 2012). The combination of advance rate, has advantages. Each block can be positioned such that any
draw bell construction rate and cave width all indicated that higher grade zones can be exploited which will improve
multiple blocks would provide a more appropriate solution. project finances, whereas with a panel, the sequence and
The main disadvantage with a large panel cave is that there are direction will be fixed.
no alternatives should problems be encountered. The undercut The blocks can even be on different levels and this can take
face needs to keep moving, and draw bells constructed. Also advantage of grade variance or trends with depth. The use of
the open drawpoints need to be pulled regularly in accordance multiple elevations will undoubtedly complicate sequencing,
with sound cave management principles. but it may provide a significant value lever.
The most significant advantage is that with multiple blocks,
Blocks
there is an opportunity to ramp up production in phases.
Codelco have been a leading exponent of the use of multiple If sufficient consideration is given to common infrastructure,
blocks (or mines) combining into high production operations items such as ventilation shafts and fans, additional crushers
(or Divisions) at El Teniente (Araneda and Sougarret, 2008).
and even modules in the processing/recovery plants can be
This approach has been used for many years and appears to
phased to suit. This has the advantage of phasing the capital,
be continued in the future plans for Chuquicamata (Aguayo,
which may make an investment decision easier. There is
Uribe and Pedrero, 2012).
also an opportunity to learn from the first block and ensure
This approach means that there is inherently more flexibility that improvements are made or challenges overcome before
as each individual block (or mine) can be designed, constructed, subsequent blocks and increases in production are planned.
The disadvantage of the block approach is the tonnage in
A between the blocks. There remains much debate about how
to treat the interface between blocks. It is likely that in most
cases, there will be mineralised material that will be ‘lost’
between the boundaries and there are more boundaries with
blocks than panels.
Drawpoint layout
The two main layouts in general use are the offset herringbone
or straight-through (or El Teniente) style drawpoints. The
selection remains a topic of debate but the general consensus
appears to be that for super cave panels, the straight-through
layout offers more advantages during construction:
•• footprint is readily expandable
•• easier construction access
•• easier to develop.
However, Resolution is planning an offset herringbone
layout. A key reason for this is the planned use of electric
load-haul-dump units (LHDs) for heat considerations. At
B Resolution, the virgin rock temperature around the planned
extraction level horizon is approximately 80°C. It is thought
that the use of electric LHDs will require less cooling to be
applied to meet their nominal reject temperatures. The design
team also believes that electric LHDs will not be as productive
in a straight-through (El Teniente) style drawpoint layout due
to the number of moves that would be required.
Fundamentally, there is no real difference in the development
metres for either layout style and any differences in relative
construction efficiency would be almost negligible in the
contribution to upfront capital cost.
Underground haulage
In either a panel cave, where the mining front may move
hundreds of metres, or in a multiple block scenario on the
same footprint, there will be a requirement to gather the ore
and get it out of the mine. The three main options for the
FIG 4 – (A) Planned panels at Resolution, (B) planned panels at Oyu Tolgoi. haulage systems are trucks, rail haulage or conveyor.
54 SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016
Super Caves – Benefits, Considerations and Risks
SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016 55
C deWolfe and I Ross
56 SEVENTH INTERNATIONAL CONFERENCE & EXHIBITION ON MASS MINING / SYDNEY, NSW, 9–11 MAY 2016
Super Caves – Benefits, Considerations and Risks
There is also a concern that in some studies there appears to produce anything from 10 kt/d to 45 kt/d. Today there are
be a tendency to work backwards to determine the required no super caves producing the defined minimum of 70 kt/d.
cave capacity that will satisfy the required financial metrics. There are no clear examples of success or failures for reliable
Study managers are cautioned that it is the geology and benchmarking. The development schedules, ramp-up rates,
geometry of the orebody that will ultimately dictate the limits dilution estimates, cave integrity, infrastructure life, etc are all
of operations and not the Excel spreadsheet. The fundamental engineered for these caves by very capable teams. However,
approach should be to design along logical, demonstrated they cannot demonstrate any current examples of active super
principles and then determine what realistic capacity results caves to convince the relevant decision makers.
from those designs. It should also be remembered that when
looking at key value levers, higher grades early in a project
can negate the need for overly ambitious tonnage targets.
CONCLUSIONS
Risks are inherent in any underground mining project.
Another key issue with financial models is that with these
However, the risks associated with super caves are magnified
large-scale long-life projects, commodity prices will vary
significantly during the life of the mine. All too often, the due to the scale of the projects and the inability to benchmark
financial assumptions, such as future commodity price, have a the outcomes, or all of the key aspects.
disproportionate impact on the results. The level of confidence A delicate balance must be maintained between production
(and reliability) of those inputs do not match the engineering rate, drawpoint development rate, column height and
effort and level of accuracy of the rest of the study. undercut advance rate to successfully operate a high tonnage
caving mine. If any of these aspects do not go according
Drawpoint and orepass life to plan, there will be an adverse impact on the project.
A risk inherent to the high tonnages expected from a super Many caves have been damaged or lost due to long slowly
cave is the ability of key infrastructure in the footprint of the advancing cave faces, excessive weight and stress problems
cave such as drawpoints and orepasses to last for the life of or the inability to maintain the drawpoints and draw bell
the associated draw column heights. development (construction) rate.
A drawpoint, as considered in Table 1, with a 450 m column As a result, there is significant risk that the indicated value,
will need to deliver about 374 000 t over a period of over five and hence shareholder return, may not achieve the levels
years at an average draw rate of 250 mm a day. The brows, implied during the feasibility studies of the projects.
steel sets, concrete floors, bullnoses, etc will undoubtedly need A more prudent approach to building successful mines is to:
to be repaired at least once and possibly more. Sometimes
drawpoints cannot be repaired and are lost. This risk was the •• look for opportunities to construct in phases
main reason that in weak ground such as Kimberlites and •• demonstrate value by starting with an option that is
‘secondary ore’ (Araneda and Sougarret, 2008) many mines readily manageable
kept column heights to 200 m or less. •• remain within the bounds of good practice and then look
The orepasses, and associated loading chutes, will need for opportunities to grow.
to handle over 7.5 Mt if they serve 20 drawpoints or more Such an approach requires less upfront capital and puts
if they are used to handle development or undercut swell less at risk until the technical challenges associated with a
muck. Orepass erosion, liner replacements and chute repairs particular project are known and addressed. It then paves the
are costly and time-consuming. This can result in lengthy way for future expansion. This will greatly reduce the risk of
shutdowns of extraction drives, which can cause both destroying shareholder value.
production capacity issues as well as draw management Super caves can succeed and generate a significant revenue
issues, which may result in weight or even convergence stream that could last for decades. There are several exiting
problems on the extraction level. projects on the drawing board, or in development/execution.
The underground mining industry is on the threshold of a new
Dilution from high column heights era where massive projects have the potential to provide value
It is debatable whether tall draw columns will result in higher to their shareholders although there is a commensurate level
or lower levels of dilution. Some engineers are concerned of risk. The risks will reduce as more projects find solutions to
that the dilution will be higher. The standard tools for traditional limitations. There are some that factors that simply
producing production schedules (which include dilution) are cannot be changed. Nature created the deposits and nature
generally based on the classic work from Laubscher (Brown, will ultimately dictate how readily they can be exploited.
2007; pp 409–413). These were based on studies of relatively
low lift (<200 m) and lower daily production rate caves
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