Production Costs Calculation Model in Crushing and Screening

Using a technical-economic approach tool for finding the optimal production costs when
comparing technical and economical solutions
Hedvall, Per

2022

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Citation for published version (APA):

Hedvall, P. (2022). Production Costs Calculation Model in Crushing and Screening: Using a technical-economic
approach tool for finding the optimal production costs when comparing technical and economical solutions.
[Doctoral Thesis (monograph), Production and Materials Engineering]. Department of Production and Materials
Engineering, LTH, Lund University,.

Total number of authors:

1

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Production Costs Calculation
Model in Crushing and Screening
− Using a technical-economic approach tool for finding the optimal
production costs when comparing technical and economical solutions

PER HEDVALL | DIVISION OF PRODUCTION AND MATERIALS ENGINEERING

FACULTY OF ENGINEERING | LUND UNIVERSITY
 NORDIC SWAN ECOLABEL 3041 0903
Printed by Media-Tryck, Lund 2022
9 789180 394055

Division of Production and Materials

Engineering, Faculty of Engineering

ISBN 978-91-8039-405-5
ISRN CODEN:LUTMDN/(TMMV-1074)/1-218/(2022)
 Production Costs Calculation Model in
Crushing and Screening
− Using a technical-economic approach tool
for finding the optimal production costs
when comparing technical and economical
solutions

Per Hedvall

DOCTORAL DISSERTATION
by due permission of the Faculty of Engineering, Lund University, Sweden.
To be defended in lecture hall A:B, Sölvegatan 24, 223 62 Lund.
Date 2022-11-18 and time 09:00
Faculty opponent
Professor Kerstin Johansen
Department of Product Development, Production and Design, Jönköping
University, Sweden
 Organization Document name:
LUND UNIVERSITY Doctoral dissertation
Faculty of Engineering
Division of Production and Materials Date of issue: 2022-08-15
Engineering
Author(s): Per Hedvall Sponsoring organization: Sandvik SRP AB, Svedala
Title and subtitle: Production Costs Calculation Model in Crushing and Screening

The mining and quarrying industries represent a highly important sector of the Swedish economy. The mining
industry operates globally, whereas the quarrying industry operates on a regional/local basis. Demands for metal
and construction aggregates have increased over the last decade, and almost 80 billion tons of solid minerals and
rocks are extracted from the earth’s crust each year. Construction aggregates are the largest part of this extraction.
Most of the metals in the crust are in mineral form, with one or more elements in chemical compounds. To extract
the metals, the rock must first be reduced to fine or very fine particles, so creating the right properties for mineral
beneficiation and metal extraction.
Construction aggregate is used as ballast in concrete and in asphalt or by itself in road building and other
infrastructure, dams, protection, and padding. Construction aggregate ranges in sizes from large boulders to very
fine sand, but normally the construction aggregate sizes are in the range of 1–100 mm. Railway aggregates are in
the upper part of this range, aggregates used for asphalt and concrete in the middle, and sand in the lower part.
Crushing and screening are among the common size reducers and size sorters in the mining and quarrying
industries. The crushers are machines for breaking rocks or other minerals into smaller particles/fragments. The
screens are the size-sorting machines for separating coarser particles from finer particles. Technical process
simulation and equipment selection for crushing and screening (C&S) plants are well established for mining and
quarrying plants.
In this dissertation I develop a product cost calculation model (PCCM) that adds one more dimension to the area of
process simulation, providing guidelines for calculating product costs within C&S plants and finding the process
alternative with the lowest product cost for a C&S plant process application.
The PCCM calculates the product costs using, process uptime costs, process downtime costs, salary costs and
auxiliary costs. The process uptime and downtime costs include capital costs and dynamic process costs such as
wear parts, spares, tools, and power consumption.
The conformity, CF (calculated costs divided by actual costs) is in the range of 0.9–1.2 for the seven C&S plants
tested. The application mining C&S plant gave the product cost allocation shown below:
Costs Distribution (%)
Capital 30–50
Dynamic 30–40
Salary 10–20
Two examples demonstrate how the PCCM can be used:
1. In an existing C&S plant to calculate the product costs.
2. In a future C&S plant to calculate the production costs before the plant is built.
Key words crushing, screening, C&S processes and plants, product cost calculations, mining, construction and
quarrying.
Classification system and/or index terms (if any)

Supplementary bibliographical information Language: English

ISSN and key title ISBN 978-91-8039-405-5

Recipient’s notes Number of pages Price

Security classification> Open

I, the undersigned, being the copyright owner of the abstract of the above-mentioned dissertation, hereby grant to all
reference sources permission to publish and disseminate the abstract of the above-mentioned dissertation.

Signature Date 2022-08-15

Production Costs Calculation Model
in Crushing & Screening
− Using a technical-economic approach tool
for finding the optimal production costs
when comparing technical and economical
solutions

Per Hedvall
Cover photos by: Sandvik and Jan-Eric Ståhl

Copyright Per Hedvall

Faculty of Engineering
Division of Production and Material Engineering

ISBN 978-91-8039-405-5 (print)

978-91-8039-406-2 (PDF)
ISRN CODEN:LUTMDN/(TMMV-1074)/1-218/(2022)

Printed in Sweden by Media-Tryck, Lund University, Lund 2022

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1.Introduction
The chapter begins with an account of the background of the research presented in
the dissertation. Thereafter, it presents the conceptual approach taken, the
objectives, the research questions posed, and the scope and the limitations of this
project.

1.1Background
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1.2World production of solid minerals and rocks

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Figure 1.1 World production of solid minerals, stones, and rocks [4, 16, 17, 18, 19, 20,
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1.3Mining industries
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Figure 1.2 Overview of metal mining and metallurgy [4].

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Figure 1.3 The metal process chain, from ore to finished product [4].


1.4Construction industries
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Figure 1.4 Overview of construction industries [4].

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1.5 Crushing and screening (C&S)
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1.5.1 Crushing and screening plants

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Figure 1.5 Typical C&S plant from above, and a side view of the secondary station in the
plant.

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Figure 1.6 Typical stationary C&S plant (left) and a mobile C&S plant (right).

1.5.2 Feeding and transportation

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Figure 1.7 Vibrating feeder with dust encapsulation (left), and conveyors (right).

1.5.3 Crushing
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Figure 1.8 The two main rock-crushing principles [4].

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Figure 1.9 Different types of compression crushers, gyratory, jaw, and cone [4].

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1.5.4 Mechanical screening

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Figure 1.10 The two main screening principles: right, screening through stratification,
and left, screening through free-falling [4].

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Figure 1.11 Screen deck with rubber screening media with square holes.

1.5.5 C&S circuits

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Figure 1.12 Typical open (left) and closed (right) crushing circuit with explanations.


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[24].
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Figure 1.13 Particle size distribution for a product (red) and a feed (blue) (left); and the
related distribution for the reduction ratio Rr, modified based on [24].

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 Table 1.3 Guideline for reduction ratio with required number of crushing stages [4].
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2.Review of Product Cost Calculations
This chapter reviews previous work in cost modeling related to crushing and
screening plants. The available models found in scientific literature and in other
reference works are reported. However, little has been published in this specific
field. The chapter results in a compilation of the most important published works.
The compilation includes each model’s level of detail.

2.1Introduction to product cost calculations

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2.2.1 General cost models for customized applications

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݇ ൌ ฬ ൅ ൤ ൨ ൅
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௔ ௕
݇஼௉ ܰ଴
ቈ ቉ ൅
͸Ͳܰ଴ ߰ோ௔௧௘ ‫ ڄ‬ሺͳ െ ‫ݍ‬ொ ሻሺͳ െ ‫ݍ‬௉ ሻ ௖ଵ
݇஼ௌ ܰ଴ ‫ݍ‬ௌ
ቈ ‫ڄ‬ ൅ ܶ௦௨
͸Ͳܰ଴ ߰ோ௔௧௘ ‫ ڄ‬ሺͳ െ ‫ݍ‬ொ ሻሺͳ െ ‫ݍ‬௉ ሻ ሺͳ െ ‫ݍ‬ௌ ሻ
ͳ െ ܷோ௉ Equation 2.2
൅ ܶ௣௕ ቉ ൅
ܷோ௉ ௖ଶ
݊௢௣ ‫݇ ڄ‬஽ ܰ଴
ቈ ൅ ܶ௦௨
͸Ͳܰ଴ ߰ோ௔௧௘ ‫ ڄ‬ሺͳ െ ‫ݍ‬ொ ሻሺͳ െ ‫ݍ‬ௌ ሻሺͳ െ ‫ݍ‬௉ ሻ
ͳ െ ܷோ௉
൅ ܶ௣௕ ቉ 
ܷோ௉ ௗ

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Table 2.1 Examples of the use of custom cost models for different production-related
applications based on Ståhl’s standard cost model [28].
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2.3Absorption cost model

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2.4Product cost calculations in C&S plants

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2.4.1 Major mineral processing equipment costs
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݇஼̴௡௘௪ ൌ ‫ܭ‬଴௢௟ௗ ‫ ڄ‬൬ ൰  Equation 2.3
ெ்೛౹̴೚೗೏

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݇஼̴௙௜௫ ൌ ͻ͹͹ͻͲ ‫ܶܯ ڄ‬௣̴ௗ௔௬  Equation 2.4

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‫ܭ‬஼̴௉௟௔௡௧ ൌ σ௜ୀ௡
௜ୀଵ ‫ܨ‬௜ ‫ܭ ڄ‬଴௜  Equation 2.5

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2.4.2 Crushing operating costs in 911 Metallurgist

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Figure 2.1 Crushing costs for gold ore processing [46].

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2.4.3 Simulation and optimization of crushing plant performance

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௠ೝ೚೎ೖǡ೔ ሺ௑ሻ

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Equation 2.8
Ͳ ൑ ߤ౹ǡ ௜ ሺܺሻ ൑ ’

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Equation 2.10
σ௤౹ୀଵ൫ܸ౹ െ ‫ܥ‬౹ǡ௧௢௧ ሺܺሻ െ ‫ܥ‬௜௡௜௧ ൯ ‫݉ ڄ‬௥௢௖௞ǡ౹ ሺܺሻ

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Ǥ Equation 2.11
‫ܥ‬ௗ௢௪௡௧௜௠௘ 

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2.4.4 Dynamic profit optimization comminution circuit

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ொ೛

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 ெ்்ிరబబ
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Figure 2.2 Flowsheet of closed circuit.

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2.4.5 Cost evaluation of producing different aggregate sizes

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Figure 2.3 Cost allocation for Quarry 1 [47].


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2.4.6 Crushing cost studies

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Table 2.2 Investment costs, indirect investment including engineering, contractors, and
contingency costs [48].

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Figure 2.4 Examples of cost distribution in oil shale crushing [48].

2.4.7 Improvement of efficiency in stone crushing

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Table 2.3 Examples of equipment investment costs (INR, Indian rupee) in C&S plant [49].
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Table 2.4 Examples of labor costs (INR, Indian rupee) in C&S plant [49].
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Table 2.5 Examples of electricity costs (INR, Indian rupee) in C&S plant [49].
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2.4.8 Capital and operating costs of mineral processing plants

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2.5Conclusions of the literature review

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 Table 2.6 Overview of the reviewed product cost calculation proposals.

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3.Research Methodology
This chapter explains the research approach taken and introduces the research
methodology employed in obtaining the results reported in the thesis.

3.1Theory and methodology

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3.1.1 Theories, models, and philosophies

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Figure 3.1 Research paradigm in the field of production including the concept of digital
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Figure 3.2 General overview of the complete work and the building of experience and the
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Figure 3.3(a)Detail overview of the study approach and the thesis.

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Figure 3.4 Inductive and deductive research, after Schmitz [54].

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Figure 3.5 Schematic flow of the work and the thesis structure.

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3.2Mapping the process flowsheet
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Table 3.1 Normal utilization in a C&S plant [24].
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Table 3.2 Normal approximate technical lifetimes for machines/equipment in C&S plants,
based on experience [16, 24].
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 4.Basic PCCM Model for C&S
This chapter provides explanations and equations related to C&S and presents the
original model for production costs calculations for C&S as well as the associated
research. The first application of the developed model is also presented in the form
of a case study.
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Figure 4.1 Open and closed circuits in C&S.

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4.2Open and closed crushing circuit analysis

4.2.1 Open C&S circuits
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Figure 4.2 Open C&S circuit.

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MTphp = pf ⋅ MTphC if MTphC ≤ MTphS Equation 4.1

if MTphC > MTphS then MTphp ≤ MTphS

 and 
MTP = pf ⋅ L Equation 4.2

LR = ( − pf ) ⋅ L Equation 4.3

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Figure 4.4 The black box model or a control volume approach: one united main process.


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Table 4.1 Overview of manufacturing in C&S, casting, and machining [4, 10, 61].

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4.2.3 Cost model for a product in C&S

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݇ଵெ் ൌ ݇ଵ஻ ൅ ݇ଵ஼௉ ൅ ݇ଵௌ ൅ ݇ଵ஽  Equation 4.5

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4.2.4 Cost per metric ton of product j, kj

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Descriptions of process and equipment costs
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ఈ೑ ‫ڄ‬ሺ௄బ ିோబ ሻ‫ڄ‬ሺଵା௞ೝ೐೙ ‫ڄ‬ேೝ೐೙ ሻା௒‫ڄ‬௞೤ ା்೛೗ೌ೙ ‫ڄ‬൬ ಾ౹ ା௞೛౹ ൰
౹ಾ
݇஼௉ ൌ Equation 4.11
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7KH HTXLYDOHQW DQQXDO FDSLWDO FRVW ($&&M IRU PDFKLQHHTXLSPHQW M FDQ EH
FDOFXODWHGZLWKWKHDQQXLW\PHWKRGDFFRUGLQJWR(TXDWLRQ7KHRULJLQDOPRGHO
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LQYHVWPHQW.DFFRUGLQJWR(TXDWLRQ

‫ ݌‬ή ሺͳ ൅ ‫݌‬ሻ௡
‫ܥܥܣܧ‬௝ ൌ ߙ௙௝ ή ൫‫ܭ‬଴௝ െ ܴ଴௝ ൯ ൌ ή ൫‫ܭ‬଴௝ െ ܴ௡௝ ൯ Equation 4.12
ሺͳ ൅ ‫݌‬ሻ௡ െ ͳ

,QWHUYLHZVHVWDEOLVKHGWKDWLWLVSRVVLEOHWRUHFRXSDSSUR[LPDWHRIWKHRULJLQDO
LQYHVWPHQWFRVWDIWHUWKHH[SHFWHGOLIHWLPHRIERWKVFUHHQVDQGFUXVKHUV>@:LWK
WKLVNQRZOHGJHWKHUHVLGXDOYDOXH5 ZDVUHSUHVHQWHGDFFRUGLQJWRWKHQHWSUHVHQW
YDOXHPHWKRG>@:KHUH5MDQG5QMDUHWKHUHVLGXDOYDOXH\HDUDQG\HDUQ
ܴ௡௝
ܴ଴௝ ൌ  Equation 4.13
ሺͳ ൅ ‫݌‬ሻ௡
$OWHUQDWLYHO\5MFDQDOVREHFDOFXODWHGDVr0 · K0j.
‫ݎ‬
‫ݎ‬଴ ൌ ͳ െ Equation 4.14
ሺͳ ൅ ‫݌‬ሻ௡

ZKHUHULVWKHUHVLGXDOYDOXHLQSHUFHQWRIWKHRULJLQDOLQYHVWPHQWMDW\HDUULV
WKHUHVLGXDOYDOXHLQSHUFHQWRIWKHRULJLQDOLQYHVWPHQWMDW\HDUQSLVWKHLQWHUQDO
UDWH \HDUO\FRVWIRUFDSLWDOLQ DQGQLVWKHH[SHFWHGWHFKQLFDOOLIHWLPH8VLQJ
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RWKHUFRVWVDVVRFLDWHGZLWKFRPPLVVLRQLQJDQHZPDFKLQH.


 ಿ ೖೝ೐೙
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݇௥௘௡ ൌ Equation 4.15
௄బ ‫ڄ‬ேೝ೐೙

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ܶ௣௟௔௡
‫ ݊ۍ‬ή ݄ ‫ې‬
௬
ܰ௥௘௡ ൌ ݅݊‫ێ ݎ݁݃݁ݐ‬ ‫ۑ‬ Equation 4.16
‫݊ ێ‬௦௬௥௘௡ ‫ۑ‬
‫ۏ‬ ‫ے‬
:KHUH7SODQāQLVWKHWRWDOOLIHWLPHRIWKHHTXLSPHQWH[SUHVVHGLQQXPEHURIKRXUV
'LYLGLQJE\K\WKHWRWDOKRXUVSHUVKLIWJLYHVWKHWRWDOQXPEHURIVKLIWVRYHUWKH
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UHQW>@
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GLVFUHWHPDQXIDFWXUHDFFRUGLQJWR>@DV
݇ெ௛
݇஽௬௡ ൌ ܶ௣௟௔௡ ή ൬ ൅ ݇௣௛ ൰ Equation 4.17
݄ெ

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݇ெ௛
݇௪௣ ൅ ݇௦௣ ൅ ݇௧௢ ൅ ܶ௣௟௔௡ ή ൬݇௘௡ ή ݇௞௪௛ ൅ ൅ ݇௛ௗ௬௡ ൰ Equation
݄ெ
݇஼௉஽௬௡ ൌ  4.18
ܶ௣௟௔௡

7KLVLQFOXGHVWKHDQQXDOFRVWVIRUZHDUSDUWVNZSVSDUHSDUWVNVSWRROVNWDVZHOODV
DVVRFLDWHGHQHUJ\FRVWVSHUKRXULQWKHIRUPRIWKHSURGXFWNHQāNNZK7KHG\QDPLF


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ఈ೑ ‫ڄ‬ሺ௄బ ିோబ ሻ‫ڄ‬ሺଵା௞ೝ೐೙ ‫ڄ‬ேೝ೐೙ ሻା௒‫ڄ‬௞೤
݇஼ௌ ൌ  Equation 4.19
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FDQEHFDOFXODWHGXVLQJ
௞ೢ೛಴ೄ ା௞ೞ೛಴ೄ ା௞೟೚಴ೄ
݇஼ௌ஽௬௡ ൌ  Equation 4.20
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Cycle time, t0
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‫ݐ‬௠௙ ൌ  Equation 4.21
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PD[LPXPIORZWKURXJKDFUXVKHUKDVSUHYLRXVO\EHHQUHSRUWHGLQ(TXDWLRQ
Batch size N0 and the setup time Tsu
7KH EDWFK VL]H SUHVHQW LQ DOO WHUPV LQ WKH JHQHULF PRGHO PXVW EH FKDQJHG VLQFH
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RIPHWULFWRQVRIUDZPDWHULDOHQWHUHGLQWKHSURFHVVEHWZHHQDGMXVWPHQWVRIWKH
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݇ெ଴ ൌ ൫݊௢௣‫݇ ڄ‬஽ ൅ ݇஼ௌ ൯ ‫ڄ‬  Equation 4.22
ெబ

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GHVFULEHGFRVWWHUPFRPSLODWLRQDFFRUGLQJWR(TXDWLRQ,QSUDFWLFDOWHUPVWKH
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EDVLVIRUFDOFXODWLQJWKHGRZQWLPHVKDUHT6
Material waste rate, qB
6LQFH& 6LQJHQHUDOGRHVQRWVHSDUDWHPDWHULDOIURPDPDLQSURGXFWEXWSURGXFHV
LWLQGLIIHUHQWIUDFWLRQVWKHUHLVQRPDWHULDOZDVWHWRFRQVLGHUH[FHSWIRUDQHJOLJLEOH
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Rejection rate, qQ
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Rate losses, qP
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‫ݍ‬௉ ൌ  Equation 4.23
௅బ ା௅భೃ

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7KHUDWHORVVFDQDOVREHH[SUHVVHGXVLQJWKHIORZFRPSRQHQWV,IWKHPDWHULDOORVVHV
FDQEHQHJOHFWHGWKHUDWHORVVGXULQJUHFLUFXODWLRQZLOOFRUUHVSRQGWRWKHIORZUDWH
RIUHFLUFXODWHGPDWHULDO
Balancing losses, D
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‫ܧ‬ଵ ൌ  Equation 4.24
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‫ܮ‬଴
‫ܦ‬ଵ ൌ ͳ െ ‫ܧ‬ଵ ൌ ͳ െ 
‫ܶܯ‬௣౹
‫ܦ‬ଵଶ ൌ ͳ െ ‫ܧ‬ଵଶ ൌ ͳ െ
௅బ ‫ڄ‬ሺଵା௣௙మ ሻ
 Equation 4.25
ெ்೛౹

Equation 4.26
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SURGXFWLRQZLWKRUZLWKRXWUHF\FOHGIORZ

4.2.5 The ideal cost, k1Idel

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ORVV' DWWKHVDPHWLPHDVWKHSODQWKDVDIXOORFFXSDQF\UDWHWKDWLV853 
7KHLGHDOFRVWLVWKHORZHVWFRVWLQRUGHUWRSURGXFHDWRQRIWKHSURGXFW3DQGFDQ
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ఈ೑ ‫ڄ‬௄బೞೠ೘ ା௄಴ು೏೤೙ ௡೚೛ ‫ڄ‬௞ವ
݇ଵூௗ௘௟ ൌ ݇஻ ൅ ൅  Equation 4.27
்೛೗ೌ೙ ‫ڄ‬ெ்೛౹ ெ்೛౹


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4.2.6 Multiple stations and bottleneck identification

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4.2.7 Cost calculation for one product in a single crush step

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Figure 4.5 Production flow with recirculation for product P1.

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 Table 4.2 Selected basic data for the reported calculation example.

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Figure 4.6 Example of the ideal cost kIdel as a function of the utilization URP.



 
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Figure 4.7 The build-up of cost by successive accumulation of current cost terms in the
production of product P1 for pf2 = 0.4.


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Figure 4.8 The cost k per ton as a function of the flow (feed) L0 for different proportions of
recirculation pf2 (0, 0.2 and 0.4) in production of product P1 for a downtime rate qS = 0.2.


4.3Dynamic cost simulation
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4.3.1 The basics of dynamic simulation of current costs

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Assessment of the reasonableness and quality of the generated vector qP.
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Figure 4.9 Generation of a vector with data representing an assumed rate loss qP with a
given distribution function, modified after Ståhl [74].

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4.3.2 Example of dynamic simulation of C&S

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Figure 4.10 The distribution S (left) and the frequency function s (right) of the production
cost k1 when varying the investment level K0, the interest cost p, and the plant's life n for
three different occupancy rates URP.
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Figure 4.11 The distribution S (left) and the frequency function s (right) on the
manufacturing cost k1 when varying the rate loss qP and the downtime percentage qS for
three different occupancy rates URP.

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Figure 4.12 The distribution S (left) and the frequency function s (right)on the
manufacturing cost k1 by varying the costs for wear parts Kwp, spare parts Ksp, and electricity
cost kkwh for three different levels of the occupancy rate URP.

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Figure 4.13 The distribution S (left) and the frequency function s (right) of variations in all
studied variables and parameters according to cases a), b) and c).

4.3.3 Results and discussion

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Figure 4.14 Flowsheet of the gold ore C&S plant.

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Figure 4.15 All cost term based on Weibull distribution functions together with the total
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Figure 4.16 Frequency functions for all cost terms based on Weibull distributions together
with the total cost k1 [62].

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Figure 4.17 Calculated and actual product costs [58].

4.4Conclusions of the initial PCCM model

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5.Model Refining for Several Products
This chapter deals with further development of the model to a more comprehensive
version that can handle several different products from one plant. In order to do
this, it is necessary to be able to separate operating costs and allocate them to each
product. The problem to be addressed is when several products pass through the
same equipment and contribute to cost items such as wear parts, spare parts, and
energy consumption. This second phase of the work was carried out after further
information gathering and experience based on the previous chapter. An important
part of this approach is the use of allocation keys when the C&S plant produces
more than one end product.

5.1Introduction to complex analysis

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Figure 5.1 The Discrete model – all individual subprocesses in a C&S system.


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5.2Improved cost model developments

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5.2.1 One end product

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Figure 5.2 A typical process flow with one end product extracted at the last C&S stage.


Figure 5.3 A C&S plant with one end product, where the end product is extracted when
created.

5.2.2 Two, three, or more end products

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Figure 5.4 A typical C&S plant with two end products.

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SURGXFWLRQFRVWVWRWKHHQGSURGXFWVDVLQ7DEOH


 
Figure 5.5 A typical C&S plant with multiple end products (P1–P5) where some of them
are extracted in earlier C&S stages.

Table 5.1 Overview of type of allocation models.

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5.2.3 Utilization of the C&S plant

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5.2.4 Allocation keys

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‫ܭܣ‬௚௜ ൌ ೔స೙೛  Equation 5.1
σ೔సభ ெ்ು೔

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‫ܭܣ‬௝௜ ൌ ೔స೙೛  Equation 5.2
σ೔సభ ெ்ೕǡ೔

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Figure 5.6 Crushing circuits, process chain with extraction of final products at different
stations or in different process lines.

Extracting products along the process chain

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WϮ͕DdWϮ
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)LJXUHIn principle, how products are extracted out along a process chain and thus
burden the equipment in different ways and use resources in different levels.

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Extraction of products in different process lines
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EHGHILQHGDVVKRZQLQWKHSUHYLRXVVHFWLRQ

5.3An actual C&S plant with two end products

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& 6SODQWWKDWSURGXFHVWZRHQGSURGXFWV7KH& 6SODQWVHOHFWHGZDVDQLURQRUH
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LVWRQ\HDU7KH& 6SODQWIORZVKHHWLVVKRZQLQ)LJXUH


 
Figure 5.8 The iron ore C&S plant with each section, A, B, C, and D [64]. 

5.3.1 Flow analysis and mass balances

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&RPSDUHWKLVDOVRZLWK)LJXUH


Figure 5.9 An open C&S circuit.
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VKRZQLQWKHPDVVEDODQFHHTXDWLRQVEHORZVHHDOVR)LJXUH
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GLVWULEXWLRQV

Figure 5.10 The primary station with mass balances (A).


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Figure 5.11 The secondary station with mass balances (B).
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/ 073V073V
/ / 073V073V073V
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073V073V073V  SIVSVÂ/  SIVSVÂ/  ± SIVSVSIVSV Â/ 
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Figure 5.12 The tertiary station with mass balances C.

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/ 073V073V
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Figure 5.13 The final production station with mass balances D.

Table 5.2 Flow production and investment: the iron ore C&S plant (Figure 5.8).
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SHUVRQDOSHUPLVVLRQ7DEOHVKRZVWKH\HDUO\SURGXFWLRQRIWKHWZRSURGXFWV


 Table 5.3 The yearly production of the end products for the iron ore C&S plant.
,WHP 3URGXFW 073< 
3 ±PP  
3 ±PP  
 7RWDO  


5.3.2 Capital costs

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7KHPDMRUFDSLWDOFRVWVNLIRUSURGXFWLZLOOEH
௝ୀே ோ೙ೕ
‫ܥܥܣܧ‬௜ ൌ σ௝ୀଵ ೘ ܽ௙௝ ‫ܭܣ ڄ‬௝ǡ௜ ‫ ڄ‬൤‫ܭ‬଴௝ െ ൨ Equation 5.3
ே௉௏೑ೕ

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ͳെ ͳ൅‫݌‬
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EH
௝ୀே೘ǡ೔

8SWLPH ݇଴௜௨௣௧ ൌ ܷோ௉ ‫ ڄ‬෍ ‫ܭܣ‬௝ǡ௜ ‫ܥܥܣܧ ڄ‬௝  Equation 5.4

௝ୀଵ



 ௝ୀே೘ǡ೔

'RZQWLPH ݇଴௜ௗ௪௧ ൌ ሺͳ െ ܷோ௉ ሻ ‫ ڄ‬෍ ‫ܭܣ‬௝ǡ௜ ‫ܥܥܣܧ ڄ‬௝  Equation 5.5

௝ୀଵ
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Table 5.4 Example of an allocation matrix for calculating AK values for Pn products in a
plant with Nm machines.
3URGXFW 1 1 1 1 1M   
3 07 07     
3 07 07 07   
3 07 07 07 07   
3L 07L      
       
3QS       

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GLDJUDP
Table 5.5 Equivalent annual capital costs for product P1 and P2, with interest rate 5 %.

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Figure 5.14 Annuity factors for different technical lifetimes and different interest rates.

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EH LQ XSWLPH +RZHYHU WKH ZRUN WLPH QHHGV WR EH UHGXFHG DFFRUGLQJ WR WKH
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SURGXFWV

5.3.3 Dynamic costs during operation and downtime

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௝ୀே Equation 5.6
݇௪௣ ௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௪௣௝
௝ୀே೘

݇௦௣ ௜ ൌ ෍ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௦௣௝ 

௝ୀଵ Equation 5.7
௝ୀே
݇௧௢ ௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௧௢௝ 

Equation 5.8

DQG


 ௝ୀே Equation 5.9
݇௣௢௪ ௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫ܶ ڄ‬௣௟௔௡ ‫݇ ڄ‬௘௡௝ ‫݇ ڄ‬௞௪౹ ‫ ڄ‬൫ͳ െ ‫ܦ‬௝ ൯ ‫ܷ ڄ‬ோ௉ 

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Table 5.6 Examples of annual costs of WP, SP, TO, and power for two products, P1 and
P2.

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WLRQ \  \  \  \  \  \  \  \ 

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% 6        

& &        

& 6        

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௝ୀே
݇஼ௌௗ௬௡ǡ ௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫ܶ ڄ‬௣௟௔௡ ‫݇ ڄ‬௘௡௜ௗǡ௝ ‫݇ ڄ‬௞௪౹ ‫ ڄ‬൫ͳ െ ‫ܦ‬௝ ൯ ‫ܷ ڄ‬ோ௉  Equation 5.10

5.3.4 Salary costs

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Table 5.7 Distribution of salary costs.
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& &6)   
' 6$ %   

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‫ܭ‬஽ǡ ௜ ൌ ‫ܭܣ‬௚ǡ௜ ‫ ڄ‬σ ‫ڄ‬ ೔స೙೛  Equation 5.11
ே೘ǡೕ σ೔సబ ெ்ು೔

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‫ܭ‬௔௨௫ǡ ௜ ൌ ‫ܭܣ‬௚ǡ௜ ‫ ڄ‬σଵ௬௘௔௥ ݇௔௨௫  Equation 5.12

5.3.5 Cost example of product P1 and P2

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3   073< 86\

3   073< 86\

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$ % & '

Figure 5.15 The costs per section of the C&S iron ore plant.

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±WLPHVWKHQRUPDOOLIHWLPHDQGUHGXFHVWKH:3FRVWVWRWKHVDPHH[WHQW


5.3.6 Cost conformity, CF
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Table 5.8 The conformity for P1, P2 and total in relation to available customer
information.
&)± 3 &)± 3 &)± 7RWDO
§ § §

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SURGXFHG

5.4The improved PCCM model

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Production costs  
Production costs during uptime
Production costs during downtime
Salary costs
Auxiliary costs
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DQGUHVWRUDWLRQFRVWV

5.4.1 Production costs during uptime

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௞బ೔ೠ೛೟ ା௞಴ು೏೤೙ǡು೔
݇஼௉ǡ ௉௜ ൌ
்೛೗ೌ೙ ‫ڄ‬ெ்೛೓ǡು೔
 Equation 5.13


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௝ୀே೘

݇௦௣ǡ ௉௜ ൌ ෍ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௦௣௝ 

௝ୀଵ
௝ୀே೘
Equation 5.15
݇௧௢ǡ௉௜ ൌ ෍ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௧௢ǡ௝ 
௝ୀଵ
௝ୀே
݇௣௢௪ǡ௉௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫ܶ ڄ‬௣௟௔௡ ‫݇ ڄ‬௘௡ǡ௝ ‫݇ ڄ‬௞௪௛ ‫ ڄ‬൫ͳ െ ‫ܦ‬௝ ൯ ‫ܷ ڄ‬ோ௉ 
Equation 5.16

Equation 5.17
$QG
݇஼௉ௗ௬௡ǡ ௉௜ ൌ ݇௪௣௉௜ ൅ ݇௦௣௉௜ ൅ ݇௧௢௉௜ ൅ ݇௣௢௪௉௜  Equation 5.18


5.4.2 Production costs during downtime

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WRT6'DQG853
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݇஼ௌǡ ௉௜ ൌ
்೛೗ೌ೙ ‫ڄ‬ெ்೛೓ǡು೔
 Equation 5.19
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5.4.3 Payroll and auxiliary costs

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೟స೅೛೗ೌ೙
σ೟సబ ௡೚೛ ‫ڄ‬௞ವ
݇஽ǡ ௉௜ ൌ ‫ܭܣ‬௚௜ ‫ڄ‬
்೛೗ೌ೙ ‫ڄ‬ெ்೛೓ǡು೔
 Equation 5.20

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்೛೗ೌ೙ ‫ڄ‬ெ்೛೓ǡು೔
 Equation 5.21
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HQGSURGXFWVLQSURSRUWLRQRIPDLQPDFKLQHVHTXLSPHQWXVHGRULQSURSRUWLRQWR
WKHDUHDXVHGE\WKHPDLQPDFKLQHVHTXLSPHQW


7KHQWRWDOFRVWN3LIRUSURFHVVLQJSURGXFW3LSHUWRQFDQEHFDOFXODWHGDV 
݇௉௜ ൌ ݇஼௉ǡ௉௜ ൅ ݇஼ௌǡ௉௜ ൅ ݇஽ǡ௉௜ ൅ ݇௔௨௫ǡ௉௜ Equation 5.22


5.5Conclusion
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• 7KHPDLQVXESURGXFWFRVWVDUH
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o 3URGXFWLRQGRZQWLPHFRVWV
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o $X[LOLDU\FRVWV
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VXEFRVWLWHPV
• &DQ GLVWULEXWH WKH SURGXFWLRQ FRVWV WR HDFK DQG HYHU\ HQG SURGXFW E\ XVLQJ
DOORFDWLRQNH\V%XWWKHUHDUHQRGHILQLWHO\DQGRUHVWDEOLVKPRGHOVRQKRZWR
FUHDWHFRUUHFWSURSHUDQGIDLUDOORFDWLRQNH\VWRGLVWULEXWHWKHSURGXFWLRQFRVWV
WRWKHHQGSURGXFWVDVGLVFXVVHGLQVHFWLRQ


6.Model Verification
In this chapter the PCCM calculation model is tested against five existing C&S
plants to assess the conformity between the actual values provided and calculated
values. Of these five cases, two are mining C&S plants and three are construction
C&S plants. Thereafter, the PCCM is used on one simulated C&S circuit with two
alternatives to find the alternative with the lowest special production costs. The
production costs in earlier sections have been converted from local currency to US
$, in order to compare the values given by customers and calculated or simulated
values. This will make it possible to compare different applications from different
places in the world.

 Prerequisites and assumptions

,Q PDQ\ WHFKQLFDO DQG HFRQRPLF FRQWH[WV LW FDQ EH GLIILFXOW WR FRPSDUH DFWXDO
RXWFRPHVDQGFDOFXODWLRQVGXHWRIDFWRUVVXFKDVGDWDXQFHUWDLQW\LQWHUSUHWDWLRQRI
GDWDGHSUHFLDWLRQUXOHVDQGYDU\LQJSUDFWLFHV7KHYHULILFDWLRQEHORZLVEDVHGRQ
FRPSDULQJFDOFXODWHGDQGVLPXODWHGSURGXFWLRQFRVWVZLWKUHDOSURGXFWLRQFRVWVRU
GDWDSURYLGHGE\FXVWRPHUVRUXVHUVRI& 6SODQWIRUFDOFXODWHWKHUHDOSURGXFWLRQ
FRVWV
7KHDXWKRUKDVDVIDUDVSRVVLEOHXVHGWKHVDPHLQSXWGDWDLQWKHIRUPIRUH[DPSOH
RIFDSLWDOFRVWVDQGHTXLSPHQWOLIHPDGHLQWKHDSSOLFDWLRQVVWXGLHG,QVRPHFDVHV
WKLVKDVQRWEHHQSRVVLEOHGXHWRFRQILGHQWLDOLW\RUGLIILFXOWLHVLQDFFHVVLQJFXUUHQW
LQIRUPDWLRQ,QWKHVHFDVHVWKHPRVWFRPPRQGDWDLQWKHLQGXVWU\KDYHEHHQXVHG
7KHDXWKRUDOVRZLVKHVWRFODULI\WKDWGDWDREWDLQHGIURPFXVWRPHUVRUXVHUVRI& 6
IDFLOLWLHVVKRXOGQRWEHUHJDUGHGDVH[DFWEXWDVSUREDEOHDQGUHDVRQDEOHJXLGHOLQHV
0RUHRYHU,KDYHQRWVHSDUDWHO\YDOLGDWHGFRVWVGDWDDQGIDFWVREWDLQHGIURPWKH
FXVWRPHURU& 6SODQWXVHUV

 C&S iron ore plant, product 0–16 mm

7KLV& 6SODQWSURGXFHVRQHHQGSURGXFWVL]HG±PPIURPEODVWHGLURQRUHRI
WKHKHPDWLWHW\SH7KHSODQWLVLQDUHJLRQWKDWKDVPRQVRRQUDLQVIRURQHPRQWK
HDFK\HDUZKLFKUHGXFHVWKHXWLOL]DWLRQRIWKH& 6SODQW>
@
7KH SODQW RSHUDWHV WZR VKLIWV SHU GD\ DOO \HDU URXQG H[FHSW GXULQJ WKH PRQVRRQ
SHULRG 'XULQJ WKDW SHULRG WKH SODQW FDQ SURGXFH IRU RQO\ RQH TXDUWHU RI WKH
DYDLODEOHWLPH



2SHUDWLQJSURSHUWLHV
o 7ZRHLJKWKRXUVKLIWVSHUGD\
o :RUNLQJZHHNGD\VDOO\HDUURXQG
o $QQXDOSURGXFWLRQPLOOLRQWRQV
o 3URGXFWILQHV±PP
7KHIORZVKHHWIRUWKLV& 6SODQWLVVKRZQLQ)LJXUH


Figure 6.1 The flowsheet for the 0–16 mm iron ore C&S plant (CSP 3).

7KHRUHLVIHGLQWRWKHKRSSHURIWKHJUL]]O\IHHGHU)E\GXPSWUXFNV7KHJUL]]O\
IHHGHUKDVDVFUHHQGHFNWKDWVFDOSVFRDUVHPDWHULDODQGILQHPDWHULDO7KHFRDUVH
PDWHULDOLVSUHFUXVKHGLQFUXVKHU&7KHFUXVKHGSURGXFWIURP&DQGWKHILQHV
IURPWKHVFUHHQGHFNRQWKHJUL]]O\IHHGHUDUHFRPELQHGDQGFRQYH\HGWRDVXUJH
SLOHZLWKDIHHGHULQWKHERWWRP7KHPDWHULDOIURPWKHVXUJHSLOHLVWUDQVSRUWHGWRD
WKUHHGHFNVFUHHQ6ZKHUHWKHFRDUVHPDWHULDOLVIHGWRDVXUJHELQZLWKDIHHGHU
,QWHUPHGLDWHPDWHULDOE\SDVVHVFUXVKHU&DQGWKHILQHPDWHULDOLVWUDQVSRUWHGWRWKH
SURGXFW VWRFNSLOH 7KH FRDUVH PDWHULDO LV FUXVKHG LQ RSHQ FLUFXLW LQ FUXVKHU &


,QWHUPHGLDWHPDWHULDODQGPDWHULDOFUXVKHGLQ&DUHIHGWRDGRXEOHGHFNHGVFUHHQ
67KHUHWKHFRDUVHPDWHULDOIURPERWKWKHILUVWDQGVHFRQGGHFNVLVFUXVKHGLQ&
ZKLFKLVDOVRLQFORVHGFLUFXLWZLWKVFUHHQ67KHILQHVIURP6DUHWUDQVSRUWHGWR
WKHSURGXFWVWRFNSLOH
7KHSODQWLVTXLWHROGDQGDFFRUGLQJWRWKHFXVWRPHUIXOO\GHSUHFLDWHG7KHRQO\
HTXLSPHQWFRVWVFDSLWDOFRVWVDUHZKHQVRPHHTXLSPHQWVWRSVZRUNLQJFRPSOHWHO\
+RZHYHULQP\RSLQLRQWKHFXVWRPHULVFRQIXVLQJFDSLWDOFRVWVZLWKGHSUHFLDWLRQ
FRVWVWZRGLIIHUHQWEXGJHWDU\DSSURDFKHV&DSLWDOFRVWVDUHFRVWVUHTXLUHGWREX\DQ
LWHP RI HTXLSPHQW ZKHQ LWV WHFKQLFDO OLIH HQGV 'HSUHFLDWLRQ FRVWV DUH D ZD\ RI
UHSRUWLQJWKDWLWFRVWVPRQH\WREX\DQDVVHWWRGD\DQGUHSODFHLWLQWKHIXWXUH7KHVH
GHSUHFLDWLRQFRVWVIROORZWKHWD[UXOHVLQHDFKFRXQWU\

6.2.1 Actual identified production costs

7KHGDWDIRUSURGXFWLRQFRVWREWDLQHGIURPWKHFXVWRPHUDUHVKRZQLQ7DEOH
Table 6.1 Product costs according to customer.
,WHP &RVW 86W  5HPDUNV
(TXLSPHQW  6HHP\FRPPHQWVDERYH
:36372  
3RZHU  
6DODU\  
$X[LOLDU\  
7RWDO  /RZGXHWRQRHTXLSPHQWFRVWV

6.2.2 Calculated production costs in Appendix F3.

7DEOHVKRZVPDQXIDFWXULQJFRVWVREWDLQHGIRUWKHSURGXFWLRQRILURQRUHVL]HG
±PPE\XVLQJWKHGHYHORSHG3&&0
Table 6.2 Calculated product costs based on PCCM (Appendix F3).
,WHP &RVW 86W  5HPDUNV
(TXLSPHQW  ,QWHUHVWUDWH 
:36372  
3RZHU  
6DODU\  
$X[LOLDU\ QD /DFNRILQIRUPDWLRQ
7RWDO  /RZGXHWRQRDX[LOLDU\FRVWV
7KHVHOHFWLRQRIFRPHVIURPLQWKHFRXQWU\ZKHUHWKH& 6SODQWLVORFDWHG>@

7KHFRQIRUPLW\HTXDWLRQ FDOFXODWHGSURGXFWFRVW  DFWXDOSURGXFWFRVW JLYHV


 &)D  
:LWKRXWFDSLWDODQGDX[LOLDU\FRVWV
&)E  
7KLV ILUVW H[DPSOH VKRZV WKH GLIILFXOWLHV RI FRPSDULQJ REWDLQHG DQG FDOFXODWHG
YDOXHV LI QRW DOO FRVWV DUH VDPSOHG DQG UHFRUGHG ,QVSHFWLRQ VKRZHG WKDW WZR
LPSRUWDQWFRVWLWHPVZHUHQRWLQFOXGHGLQWKHYDOXHVUHFHLYHGIURPWKHXVHURIWKH
& 6SODQW'HVSLWHDGMXVWLQJWKHLQSXWGDWDWKHGHYLDWLRQLVUHODWLYHO\ODUJHZKLFK
PD\SRVVLEO\EHH[SODLQHGE\KRZSHUVRQQHOFRVWVDUHGLVWULEXWHGEHWZHHQGLIIHUHQW
SURFHVVLQJVWHSV

 C&S plant in copper mine, 1/4ȨȨ product

7KH & 6 SODQW SURGXFHV ±óȨȨ ILQHV IURP EODVWHG FRSSHU RUH ZLWK DQ DQQXDO
SURGXFWLRQRIW\HDU7KH& 6SODQWRSHUDWHVKSHU\HDUQRUPDOO\
ZLWK WZR VKLIWV SHU GD\ DOO \HDU URXQG >      @ 7KH JHQHUDO
SURFHVVIORZLVVKRZQLQ)LJXUH


Figure 6.2 The flowsheet for the 0–¼ƍƍ copper ore C&S plant (CSP4).

7KHEODVWHG&XRUHLVIHGWRWKHGXPSKRSSHURIWKHSULPDU\FUXVKHU&E\PLQLQJ
WUXFNV 7KH EODVWHG RUH LV FUXVKHG LQ RSHQ FLUFXLW LQ FUXVKHU & 7KH SULPDU\


FUXVKHU¶VSURGXFWLVFRQYH\HGWRDELJVXUJHSLOHZLWKWXQQHOIHHGEHORZ7KLVVXUJH
SLOHWDNHVXSWKHPDWHULDOIORZIOXFWXDWLRQDQGXVHVWKHWXQQHOIHHGHUVWRHYHQRXW
WKHIORZWRWKHVHFRQGFUXVKLQJVWDJH$KHDGRIWKHVHFRQGFUXVKHUV &$ % 
WKHUH DUH WZR VXUJH ELQV ZLWK IHHGHUV WR DFKLHYH FKRNH IHHGLQJ FRQGLWLRQV WR WKH
FUXVKHUV&$ %7KH&FUXVKHUVUXQLQFORVHGFLUFXLWZLWKWZRSDUDOOHOWKUHH
GHFNVFUHHQV6$ %7KHFRDUVHPDWHULDOIURPWKHWRSGHFNVLVUHFLUFXODWHGWR
& $  % 7KH LQWHUPHGLDWH SURGXFWV IURP GHFNV  DQG  DUH FRPELQHG DQG
WUDQVSRUWHGIRUIXUWKHUWUHDWPHQW)LQHVIURPVFUHHQV$ %DUHWUDQVSRUWHGWRWKH
HQG SURGXFW VLOR 7KH LQWHUPHGLDWH SURGXFW IURP 6 $  % LV FUXVKHG LQ FORVHG
FLUFXLWLQFUXVKHUV&$ %WKDWKDYHWZRVXUJHELQVZLWKIHHGHUVDKHDGRIWKHP
7KHVHFUXVKHUVUXQLQFORVHGFLUFXLWZLWKWKHWZRGHFNVFUHHQV6$ %&RDUVH
DQGLQWHUPHGLDWHPDWHULDOIURPWKHVFUHHQV6$ %LVUHFLUFXODWHGWRFUXVKHUV&
$ %7KHILQHVIURPVFUHHQ6$ %DUHWUDQVSRUWHGWRWKHHQGSURGXFWVLOR

6.3.1 Given production costs for plant CSP 4

,Q WKLV & 6 SODQW WKH JLYHQ SURGXFWLRQ FRVWV FRPH IURP ERWK WKH FXVWRPHU DQG
6DQGYLN¶VSODQWLQIRUPDWLRQGDWDEDVH>@
Table 6.3 Actual product costs related to the copper ore C&S plant according to customer
and Sandvik [25].
,WHP &RVW 86W  5HPDUNV
(TXLSPHQW  
'\QDPLFSURGXFWFRVWV  
6DODU\  
7RWDO  

6.3.2 Calculated production costs

&DOFXODWLRQVEDVHGRQWKH3&&0JLYHSURGXFWLRQFRVWVLQ7DEOH
Table 6.4 Calculated product costs based on PCCM (Appendix F4).
,WHP &RVW 86W  5HPDUNV
(TXLSPHQW  ,QWHUHVWUDWH 
'\QDPLFSURGXFWFRVWV  
6DODU\  
7RWDO  
7KHVHOHFWLRQRIFRPHVIURPLQWKHFRXQWU\ZKHUHWKH& 6SODQWLVORFDWHG>@

7KHFRQIRUPLW\HTXDWLRQJLYHV

&)  


,QWKLVFDVHWKHGHYLDWLRQVDUHSULPDULO\GXHWRHTXLSPHQWFRVWVDQGDVVXPHGYDOXHV
RIWKHLQWHUHVWUDWHS%\DVVXPLQJYDOXHVRISEHWZHHQDQGWKHFRQIRUPLW\
YDULHVEHWZHHQDQG

 Mobile C&S plant with three products

7KLVFDVHLQYHVWLJDWHVDPRELOH& 6SODQWZKLFKPRYHVDURXQGWRGLIIHUHQWVLWHV
DQGMREVSURGXFLQJWKUHHHQGSURGXFWV,WLVGHVLJQHGIRUFDSDFLWLHVEHWZHHQWR
 073+ GHSHQGLQJ RQ IHHG SDUWLFOH VL]H GLVWULEXWLRQ W\SH RI URFN DQG WKH
UHTXLUHPHQWVRIWKHHQGSURGXFWV>@7KHSUHVHQWVHWXS
VSHFLILFDWLRQVDUH
o )HHGPDWHULDOVDQGDQGJUDYHO±PP
o (VWLPDWHGDQQXDOSURGXFWLRQWRQ
o 7KUHHSURGXFWVFRDUVH 3 LQWHUPHGLDWH 3 DQGILQHV 3 
7KHWKUHHPRELOH& 6XQLWVDUHUXQE\WZRRSHUDWRUVZKRDOVRKDQGOHORDGLQJDQG
XQORDGLQJRIWKH& 6SODQW7KH\UXQDQGFRQWUROWKH& 6SODQWXVLQJDXWRPDWLRQ
DQGUHPRWHFRQWUROVLQWKHLUZKHHOORDGHUV
7KHIORZVKHHWIRUWKHPRELOH& 6SODQWLVVKRZQLQ)LJXUH
7KLV W\SH RI PRELOH & 6 SODQW LV GHVLJQHG WR EH PRYHG DQG VHW XS DW GLIIHUHQW
ORFDWLRQV ZLWK GLIIHUHQW SURGXFWLRQ DQG GLIIHUHQW SURGXFW UHTXLUHPHQWV LW VHOGRP
UXQVDWWKHVDPHVLWHSURGXFLQJWKHVDPHSURGXFWVDOO\HDUURXQG,KDYHFDOFXODWHG
DQDVVXPHGDQQXDOSURGXFWLRQE\H[WHQGLQJWKHSUHVHQWVHWXSDQGUHTXLUHPHQWVWRD
IXOO\HDU


 
Figure 6.3 The flowsheet of the mobile C&S plant (CSP 5).

7KHVDQGDQGJUDYHOPDWHULDOLVIHGLQWRWKHIHHGKRSSHURIWKHILUVWPRELOHFUXVKHU
E\DZKHHOORDGHU7KLVXQLWKDVDJUL]]O\IHHGHUDQGDMDZFUXVKHURQERDUG7KH
JUL]]O\IHHGHUVHSDUDWHVFRDUVHDQGILQHV7KHFRDUVHPDWHULDOLVFUXVKHGLQWKHMDZ
FUXVKHU DQG WKHQ UHFRPELQHV RQ WKH GLVFKDUJH FRQYH\RU ZLWK WKH ILQHV IURP WKH
JUL]]O\WKDWE\SDVVHGWKHFUXVKHU7KHGLVFKDUJHFRQYH\RUVHQGVWKHPDWHULDOWRWKH
IHHGKRSSHURIWKHIHHGFRQYH\RURQWKHVHFRQGPRELOHFUXVKLQJXQLW$OOPDWHULDO
LVFUXVKHGLQWKHVHFRQGDU\FUXVKHUDQGFRQYH\HGWRWKHIHHGKRSSHURIWKHPRELOH
VFUHHQLQJXQLW7KHVFUHHQLQJXQLWKDVDWZRGHFNVFUHHQWKDWVHSDUDWHVWKHFRDUVH
LQWHUPHGLDWHDQGILQHPDWHULDOV7KHVHSDUDWHGSURGXFWVDUHFRQYH\HGWRVWRFNSLOHV

6.4.1 Given production costs for plant CSP 5.

7DEOHGLVSOD\VWKHFRPSLOHGDQGVWUXFWXUHGGDWD7KHILJXUHVDUHEDVHGRQDFWXDO
SURGXFWLRQ GDWD FRVWV FRPLQJ IURP ERWK WKH FXVWRPHU DQG 6DQGYLN¶V SODQW
LQIRUPDWLRQGDWDEDVH>@
Table 6.5 Actual product costs according to customer and Sandvik [25].
&RVW
,WHP 5HPDUNV
6(.W 
(TXLSPHQW  7KHFXVWRPHUQRUPDOO\VHOOVKLVPRELOHXQLWV
DEURDGDIWHUDSSUR[LPDWHO\ILYH\HDUV¶


 RSHUDWLRQ+HWULHVWRUHFRXS§RIWKH
RULJLQDOSULFHSDLGIRUWKHXQLWV
'\QDPLFSURGXFWFRVWV  
6DODU\ QD 7KHFXVWRPHUZLOOQRWGLYXOJHVDODULHVWR
SURWHFWWKHSULYDF\RIWKHRQO\WZRHPSOR\HHV
LQYROYHG
$X[LOLDU\ QD 
7RWDO  ([FOXGLQJVDODU\DQGDX[LOLDU\FRVWV

6.4.2 Calculated production costs

7KH3&&0SURGXFWLRQFRVWVDUHVHWRXWLQ7DEOH,QWKLVFDVHDOOSURGXFWVDUH
H[WUDFWHGIURPWKHODVWVWDJHRIWKHSODQW$OORFDWLRQNH\VZHUHXVHGDFFRUGLQJWR
WKHSURSRUWLRQRIWKHILQDOSURGXFWVSURGXFHG
([FOXGLQJ WKH VDODU\ FRVWV DQG XVLQJ WKH KLJK DQG ORZ YDOXHV IRU WKH SURGXFWLRQ
FRVWVWKHFRQIRUPLW\FDQEHFDOFXODWHGDV

&)  

+RZHYHUDFFRUGLQJWRWKH3&&0FDOFXODWLRQVLQWKLVWKHVSHFLILFFDVHWKHVDODU\
FRVWLVLQWKHUDQJHRIRIWKHWRWDOSURGXFWLRQFRVWZKLFKLVDVXEVWDQWLDOSDUW
VHH $SSHQGL[ ) 6DODU\ FRVWV VKRXOG DOZD\V EH LQFOXGHG WR REWDLQ VXIILFLHQW
DFFXUDF\LQGHWHUPLQLQJRUFDOFXODWLQJWRWDOSURGXFWLRQFRVWV%XWLQWKLVFDVHWKH
6DODU\DQGWKH$X[LOLDU\FRVWVZHUHQRWHGRXWE\WKHFXVWRPHU
)RUWKLVSODQWWKH3&&0RYHUHVWLPDWHVWKHG\QDPLFSURGXFWLRQFRVWVFRPSDUHGWR
WKHFRVWJLYHQE\WKHFXVWRPHUDQG6DQGYLN¶VSODQWLQIRUPDWLRQGDWDEDVH>@

Table 6.6 Calculated product costs based on PCCM.
,WHP &RVW 6(.W 5HPDUNV
(TXLSPHQW  $VVXPLQJHTXLSPHQWVROGDIWHUILYH\HDUVUHFRXSV
,QWHUHVWUDWHRI 
'\QDPLFSURGXFWFRVWV  
6DODU\  
$X[LOLDU\ QD 
7RWDO  ([FOXGLQJVDODU\ DX[LOLDU\FRVWV
 ([FOXGLQJDX[LOLDU\FRVWV
7KHVHOHFWLRQRIFRPHVIURPLQWKHFRXQWU\ZKHUHWKH& 6SODQWLVORFDWHG>@

,I RQO\ WKH G\QDPLF FRVWV DUH FRQVLGHUHG 3&&0 DFKLHYHV D EHWWHU FRQVLVWHQF\
EHWZHHQWKHDFWXDOFRVWVDQGWKHHVWLPDWHGFRVWV


  C&S plant 500 MTPH with six products
7KLVLVDIL[HG& 6SODQWZLWKDQQXDOSURGXFWLRQRIWZLWKVL[SURGXFWV>
@7KHSURGXFWLRQGXULQJWKH\HDUGHSHQGVRQPDUNHWDFWLYLW\
EXWZHKDYHREWDLQHGWKHDYHUDJHQRUPDOSURGXFWLRQIRUWKLVSODQW3URGXFW3LV
TXDUU\ILQHVWKDWDUHGLUHFWO\UHPRYHGDV³VDQG´IRUSULYDWHXVHUVFXVWRPHUV7KLV
³VDQG´LVRIORZTXDOLW\DQGFDQQRWEHXSJUDGHG3URGXFW3LVUDLOZD\DJJUHJDWHV
ZLWK KLJK VKDSH UHTXLUHPHQWV 7KH UHPDLQLQJ SURGXFWV 3 ± 3 DUH XVHG DV
FRQVWUXFWLRQDJJUHJDWHVIRUFRQFUHWHRUDVSKDOW
6SHFLILFDWLRQV
o 2SHUDWLQJWLPHRIK\HDU
o /RFDWHGLQFHQWUDO(XURSH
o VKLIWSHUGD\RIKRXUV
o :RUNLQJZHHNGD\V
o $QQXDOSURGXFWLRQW
o 3URGXFWVL]HV±PP
)LJXUHVKRZVWKHPDLQSURFHVVIORZ


 
Figure 6.4 The flowsheet of the fixed C&S plant (CSP 6).

7KHEODVWHGURFNLVORDGHGLQWRWKHIHHGKRSSHURIWKHJUL]]O\IHHGHUE\WRQWUXFNV
7KHEODVWHGURFNLVVHSDUDWHGLQWRFRDUVHDQGILQHVE\WKHJUL]]O\VFUHHQGHFN7KH
ILQHVDUHFRQYH\HGWRDVFUHHQ6WKDWUHPRYHVWKHTXDUU\ILQHVDQGLQWHUPHGLDWH
PDWHULDO4XDUU\ILQHVDUHFRQYH\HGWRDVWRFNSLOHDVSURGXFW37KHFRDUVHPDWHULDO
IURPWKHJUL]]O\VFUHHQGHFNLVFUXVKHGLQWKHFUXVKHU&7KLVFUXVKHGSURGXFWLV
DGGHGWRWKHLQWHUPHGLDWHPDWHULDOIURP6DQGFRQYH\HGWRDVXUJHSLOHZLWKWXQQHO
IHHGHU)URPWKHVXUJHSLOHWKHPDWHULDOLVWUDQVSRUWHGFRQYH\RUWRDVXUJHELQZLWK
IHHGHUDKHDGRIWKHFUXVKHU&&UXQVLQFORVHGFLUFXLWZLWKDIRXUGHFNVFUHHQ
67KHFRDUVHPDWHULDOIURPGHFNLVUHFUXVKHGLQ&7KHPDWHULDOIURPGHFN
LV FRQYH\HG WR D VWRFNSLOH DV SURGXFW 3 7KH LQWHUPHGLDWH PDWHULDO IURP 6 LV
FRQYH\HGWRDVXUJHELQZLWKIHHGHUDKHDGRIFUXVKHU&7KHILQHVIURP6DUH


WUDQVSRUWHGGLUHFWO\WRWKHVWRFNSLOHIRUSURGXFW3&UXQVLQFORVHGFLUFXLWZLWKD
IRXUGHFNVFUHHQ67KHFRDUVHPDWHULDOIURPGHFNLVUHFUXVKHGLQ&$OOWKH
RWKHUPDWHULDOVIURPWKH6DUHFRQYH\HGWRWKHLURZQVWRFNSLOHDVSURGXFWV33
DQG37KHILQHVIURP6DUHFRQYH\HGWRWKHVDPHVWRFNSLOHDVWKHILQHVIURP6
SURGXFW3

6.5.1 Given production costs for plant CSP 5

7DEOHVKRZVWKHFRPSLOHGDQGVWUXFWXUHGGDWD7KHILJXUHVDUHEDVHGRQDFWXDO
SURGXFWLRQGDWDFRVWVFRPLQJPDLQO\IURPWKHFXVWRPHUDQGDOVRIURP6DQGYLN¶V
SODQWLQIRUPDWLRQGDWDEDVH>@
Table 6.7 Actual product costs according to customer and Sandvik [25].

,WHP &RVW ¼WRQ  5HPDUNV

(TXLSPHQW  
'\QDPLFSURGXFWFRVWV  
6DODU\  
7RWDO  ([FOXGLQJDX[LOLDU\FRVWV
 ,QIRUPDWLRQ IURP WKH FXVWRPHU V ILQDQFLDO GHSDUWPHQW +RZHYHU , WKLQN WKLV FDSLWDO FRVW LV WKH
GHSUHFLDWLRQFRVWWKDWWKH\XVHLQWKHDQQXDOUHSRUW,KDYHGLYLGHGWKLVFRVWE\WKHDQQXDO& 6SODQW
SURGXFWLRQWRGHWHUPLQHWKHFRVWSHUWRQSURGXFHG

6.5.2 Calculated production costs

7KHSURGXFWLRQFRVWVFDOFXODWHGXVLQJWKH3&&0DUHVKRZQLQ7DEOH,QWKLV
FDVH SURGXFWV ZLOO EH H[WUDFWHG IURP WKH GLIIHUHQW & 6 VWDJHV RI WKH SODQW XVLQJ
DSSURSULDWHDOORFDWLRQNH\V
Table 6.8 Calculated product costs based on PCCM (Appendix F6).
,WHP &RVW ¼WRQ  5HPDUNV
(TXLSPHQW  ,QWHUHVWUDWH 
'\QDPLFSURGXFWFRVWV  
6DODU\  
7RWDO  ([FOXGLQJDX[LOLDU\FRVWV
7KHVHOHFWLRQRIFRPHVIURPLQWKHFRXQWU\ZKHUHWKH& 6SODQWLVORFDWHG>@

7KHFRQIRUPLW\EHWZHHQDFWXDOFRVWVDQG3&&0EDVHGFRVWVFDQEHFDOFXODWHGDV

&)  

,QWKLVFDVHWKHGLVFUHSDQF\EHWZHHQDFWXDODQGHVWLPDWHGFRVWVFDQEHDWWULEXWHG
SULPDULO\WRHTXLSPHQWFRVWV


  C&S plant 200 MTPH with four products
7KLV & 6 SODQW LV LQ 6RXWK $VLD SURGXFLQJ IRXU FRQVWUXFWLRQ DJJUHJDWH SURGXFWV
3±3ZLWKDQQXDOSURGXFWLRQRIWLQWKHUDQJH±PP>
  @ 7KH RSHUDWLQJ WLPH SHU \HDU LV  K RQ DQ H[WHQGHG VKLIW RI 
KZRUNLQJGD\7KH& 6SODQWSURFHVVIORZVKHHWLVVKRZQLQ)LJXUH


Figure 6.5 The flowsheet of the C&S plant (CSP 7).

7KHEODVWHGURFNLVWUDQVSRUWHGIURPWKHTXDUU\IDFHWRWKH& 6SODQWE\GXPSHUV
7KHURFNLVIHGLQWRWKHJUL]]O\IHHGKRSSHU7KHJUL]]O\IHHGHUKDVWZRGHFNVWR
VHSDUDWHWKHEODVWHGURFN7KHWRSGHFNLVDJUL]]O\ZKHUHFRDUVHPDWHULDOLVSDVVHG
RYHU7KHILQHVWKDWIDOOWKURXJKWKHJUL]]O\DUHWKHQVHSDUDWHGLQWRWZRSURGXFWV
LQWHUPHGLDWHDQGTXDUU\ILQHVRQWKHVHFRQGGHFNRIWKHJUL]]O\IHHGHU7KHFRDUVH
PDWHULDOIURPWKHJUL]]O\GHFNLVFUXVKHGLQFUXVKHU&7KHLQWHUPHGLDWHPDWHULDO
E\SDVVHVWKHFUXVKHU&DQGFRPELQHVZLWKWKHSURGXFWIURPFUXVKHU&7KHTXDUU\
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6.6.1 Given production costs for plant CSP 7

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Table 6.9 Actual product costs according to customer and Sandvik [25].
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6.6.2 Calculated production costs

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Table 6.10 Calculated product costs based on PCCM (Appendix F7).
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Figure 6.6 The two flowsheets for alternative A and B (CSP 8).

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6.7.1 Production costs for alternatives A and B, special cost

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 Conclusions from the case studies conducted

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7.Discussion and Conclusions
This chapter discusses the results achieved by using the PCCM. Conclusions are
drawn, and then the two research questions are answered.

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݇௧௢ǡ௉௜ ൌ ෍ ‫ܭܣ‬௝ǡ௜ ‫݇ ڄ‬௧௢ǡ௝ 

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݇௣௢௪ǡ௉௜ ൌ σ௝ୀଵ ೘ ‫ܭܣ‬௝ǡ௜ ‫ܶ ڄ‬௣௟௔௡ ‫݇ ڄ‬௘௡ǡ௝ ‫݇ ڄ‬௞௪௛ ‫ ڄ‬൫ͳ െ ‫ܦ‬௝ ൯ ‫ܷ ڄ‬ோ௉ Equation 7.6

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  How to use the PCCM
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7.3.1 In existing C&S plants

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WKHSURGXFWLRQFRVWVGLUHFWO\WRWKHDFWXDOFRVWV7KHWRWDOSURGXFWLRQFRVWVZLOOEH
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7.3.2 In simulated C&S plants

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SURGXFWLRQFRVWRUWKHSURGXFWFRVWVRIWKHHQGSURGXFWV,WVHUYHVDVDKHOSIXOWRRO
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7.3.3 Factors that influence accuracy in the PCCM

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 General conclusions and answer to the research

questions
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7.4.1 General conclusion for RQ1

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Table 7.4 The features incorporated in the PCCM.
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 Table 7.5 Description of the level of detail of input cost items in reported cost models for
C&S plants (from section 7.1).
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7.4.2 General conclusions related to RQ2A – Open circuit

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7.4.3 General conclusion for RQ2B - Closed crushing circuit

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Figure 7.5 Typical semi-closed/open circuit.

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8.Future Research
This chapter identifies possible developments of the PCCM for other size reduction
processes such as grinding as well as other sizing processes such as classification.

 PCCM development for other size reduction

machines
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8.1.2 Grinding mills

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 PCCM development for other size-sorting machines

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9.References
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>@ +DLNR+,%LOHWVN\L96First Metals Discovery and Development: The Sacral
Component Phenomenon, Theoretical and Practical Solutions of Mineral Resources
Mining$%DONHPD%RRN/RQGRQ
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