Blast Based Services

Innovation, Sustainability,
Energy & Emissions

15 April, 2010
Contents

Blast Based Services

An outline

Examples
Open Pit Metal Mine & Open Pit Coal mines

Energy and Emissions

Definition
Blast Based Services (BBS) represent Oricas capability to offer services to
improve mining efficiency through modelling, design, measurement and
execution.

The delivery of these capabilities is underpinned by Oricas investment in highly

skilled Technical Services, Operations and Research & development resources,
coupled with innovative technologies

Our Advanced Blasted Based Services are a suite of services that offer our
customers, the opportunity to purchase blast outcomes.

Advanced Blast Based Services meet specific customer needs and incorporate
our technology and technical support capability to create compelling benefits.

It is the demonstrable value and transparency of these benefits that underpins

a sustainable commercial relationship with our customers.
Definition
The Advanced BBS Project Process
Customer
High level BBS
Consultation and Mine Scoping Demonstration Commercial
Technical
Needs Study Phase Proposal
Investigation
Identification

We engage with the customer and understand the real needs and financial /
performance drivers

We send our senior engineers to assess project feasibility

We undertake a rigorous Site Scoping Study involving mine personnel

We conduct a demonstration or phase to verify and measure results

We propose a commercial offering based on value outcomes we model

and establish KPIs for
A Summary
The Service is proposed if Orica identifies technological and
process solutions that deliver value
Develop BBS Determine
Technical Solution & Customer Value
Mine Scoping Study Establish Baseline
Deployment using Value
Programme Calculator

Total
Delivered
Value
Operational
Cost
$/bcm

Value Calculator

Baseline BBS
Operational Enabled
Costs Operational
Cost
Value Quantification
The Value Calculator
A tool for analysing a base case and alternative scenarios, in a
clear, transparent way

Full year D&B

Load & Haul improvements of
savings of $
$1.4M and Secondary 1,520,000
breakage savings of $286K
Example 1: Open Pit Zinc mine
Background
Rapid expansion from 26 M BCM p.a to 41
M BCM p.a

Capital investment made for additional load

and haul fleet

Drill & blast performance seen as the

bottleneck to the required rapid expansion
of mine production

Massive oversize issues from the a

limestone domain of the pit

Considering major investment in new drills

The Goal Reliable supply of Ore to the

mill
Background

Stage 7

Stage 6
The Advanced BBS Process

Customer
Analysis BBS
Consultation and Mine Scoping Demonstration Commercial
Solution
Needs Study Phase Proposal
Identified
Identification

Develop BBS Determine

Technical Solution & Customer Value
Establish Baseline
Deployment using Value
Programme Calculator
The Advanced BBS Process
Develop BBS Determine
Mine Scoping Study Technical Solution & Customer Value
Establish Baseline
Deployment using Value
Programme Calculator

Develop BBS Deployment

Technical Solution Programme

Implementation plan

Full time onsite R2STM Team

Fully intergrated into the the mines

technical services team

Mapped Project Plan

Tracking method of value delivered

Advanced Modelling
Capability to Deliver
Design
Reports

Quality Assurance
Blast Design
revolving around

QA
Reporting
SHOTPlus-i Pro
Blast Modelling

Automating Loading
Blast Delivery Specialised charging Instructions
Implementation

QA Drilling Location

QA Drilling Depth
Implementation
Results
A 78% decrease in secondary blasting requirements
Results
A 25.6% increase in instantaneous shovel productivity from 1900 bcm/hr to
2386 bcm/hr
Results
Significantly improved wall control with combined production/limits shots
Results (Phase 1)
Customer Benefit Nett

Fragmentation improvement (P80 reduction of 35%) -

77% reduction for oversize / secondary blasting $1.1M

Load & Haul productivity improvement of 7.2% $6.9M

Reduction in drilling requirements by 15%

Reduction in explosive consumption by 7% $5.3M

Increased explosive delivery rates ( from 75 to 150tne per day ) -

TOTAL $13.4M

(Our) mine would not have been able to achieve 41M BCM without Rock to SpecificationTM
Mine Technical Services Manager
Example 2: Open Pit, multiple-seam coal mine
An example: Through seam blasting
Turn this (Conventional).
High strip ratio (16:1) For each 5m there are ~ 11 individual blasting events.
The mine blast 2-3 areas together.
240m
Conventional mining method results in low 2.5m 7 6 5 4 3 2 1
11 110 9 48
14 13 12
recoveries and high extraction costs 21 20 19 18 17 16 15

15m

Normal practice is small blasts. Numerous

equipment stoppages and movement.
Seam 3
Highly inefficient SM1 Seam 8 Seam 7 Seam 6 Seam 5 Seam 4

...into this (Through Seam Blasting)

Orica studied through seam blasting Full volume fired in 3 blasts of 80m x 180m surface area.
240m
potential at this site. Very complex, given
the faulted and folded seams and
requirement to achieve 100mm accuracy 15m
Shot 3 Shot 2 Shot 1

and protect and recover seams as thin as Seam 2

200mm inches
Seam 3
SM1 Seam 8 Seam 7 Seam 6 Seam 5 Seam 4
Downstream value of large blasts
Conventional: Walk & Blast time,
no excavation
Set up & bench
Disruption due to preparation
blast, walk, blast Disrupted
excavation
Excavation for full
shifts

18 Blasts
Blast Blast Blast Blast Blast Blast Blast Blast Blast Blast Blast Blast 2,257 hours
Walk Walk Walk Walk Walk Walk (Elapsed time for excavation)

700k Bank Cubic

Metres Excavation

Through-seam:

3 Blasts (80% less)

1,120 hours
(Elapsed time for excavation)

700k Bank Cubic

Metres Excavation
Gateway to mine efficiency
# of Blast Events
(Excavation of 700k BCM) Smarter Blasting
20 80% less blasts
15
4-fold increase in blast size
8 x bigger blast areas for excavators
10
18 3 x higher bench height
5

3
0
Current TSB

Mine Efficiency Capability for higher efficiency mining

(Hours to excavate 700k Less pit operation interruptions
BCM) Load and Haul
2500
represents approx Less excavator repositioning delays
60% of mining costs
2000
for TSB Area
Higher instantaneous dig rate
1500
Double the drill, blast, load & haul
1000
2,257
volume/hour
500 1,120 Half the fleet hours
0
Current TSB
How to deliver
Estimated operational cost value
to the mine
Significant savings
Mostly in Load & Haul
Extraction cost/ Bank Cubic Metres (US$)*
Includes capital efficiencies
Major reduction in blasting
$3.73 $0.06 $0.01
$0.26
requirements
$0.67
$0.16
-22%
Reduction in both bulk
$2.89
explosive requirements and
detonator requirements

Current Drilling savings Explosives Increased Increased Load ABT Base Fee Total
Estimated BCM Savings Utlisation of and Haul
Waste BCM Availability Efficiencies
Rate

* Estimated based on full year projection of measured results

Reduce energy and emission intensities
with Oricas Blast Based Services
Our Customers
Energy & Emissions #1 issue

Energy &
Water Rehab / closure Biodiversity
Emissions
Our Customers
Energy & Emissions also most difficult

Most
Less difficult
difficult
Our Customers
Energy & Emissions also most difficult

vs

Year upon year energy and Deliver economic value to

emissions reduction targets shareholders through
increased development
 Blast Based Services:
Energy & Emissions
What it is and how it can help our
Customers
Mine to Mill
Comminution and Electricity Consumption

Example
 Metal mine producing 5 Mtpa ore:

 Energy usage: 1500TJ (primary en.)

 GHG: 160kt CO2e
[ 60% is milling ]
Mine to Mill
Comminution and Electricity Consumption
Example Scenario
 10% increase in mill throughput via a
20% increase in blasting energy

 Milling: 95TJ; 11kt CO2e

(at electricity
generation)

 Explosives: 12TJ; 2kt CO2e

(onsite)

 Net Mine Intensity: 6%

Mine to Mill
Comminution and Electricity Consumption
Example Scenario
 10% increase in mill throughput via a
20% increase in blasting energy
Reduction in Margin
Copper GHG SP: US$3,276/t
tonnes Intensity (%) Cost: US$1,200/t
produced per tonne of
copper
Current mill
65,000 - US$134.9M
throughput

10% improved
71,500 9.1% US$148.4M
throughput

Margin
US$ 13.5M p.a.
Improvement
Preguntas