A simultaneous mining and mineral processing optimization and sustainability evaluation prepared during a platinum project prefeasibility study

Abstract

This paper develops themes explained at two SAIMM platinum conferences. Optimization techniques can be used to significantly increase the value of mining businesses by enabling better long-term planning decisions. Open pit and underground mine design, mine scheduling, cut-off grade and blending, stockpiling, and the linking of these to flexible elements of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that net present value (NPV) can be increased significantly, usually even before the expenditure of significant amounts of project capital. Recent studies of NPV have aimed to simultaneously evaluate the impact of the optimized financial solution on the non-financial features of a project or operation. The case study presented comprised a commercially orientated review of the prefeasibility study designs and cost estimates of a platinum group metal (PGM) project in South Africa, followed by value chain optimization and sustainability studies of the project carried out simultaneously to identify potential value uplifts to be gained and guide the owners' team going forward into the feasibility study phase. Some of the major aspects of the project that were found to have significant potential to add value included enhancement of the business model by the application of activity-based costing and theory of constraints, focus on the highest net value portions of the orebody in the early years of production, enhanced and optimized scheduling of the underground mining operation, application of dynamic grind and percentage mass recovery from ore to flotation concentrate (also known as percentage mass pull) to optimize revenue, application of elevated cut-off grades early in the life of mine, matching of the mining and processing capacity, expansion of the operation subject to capital availability, and installation of downstream processing facilities subject to regional third-party capacities. The investigation of non-financial project features focused on demonstrating that a financially optimized solution could also have a number of other benefits. These are mentioned briefly in the paper, which aims to present the status of the project at an early stage of its development.