American Coal Concert Series Launched - Coal News

18
June 2010
IPCC Systems Interest Growing
Says P&H
Surface coal mining operations
have long relied upon truckbased
overburden handling
strategies, and for many good reasons.
Trucks provide good versatility
as the mine plan evolves through its
early years and phases. Trucks can
be easily relocated from excavators
that are shut down or undergoing
maintenance to other available
excavators. And their acquisition
and operating costs are a known
quantity based on decades of truckbased
overburden handling operations
management.
As mines enter “middle age” and
begin to deepen and spread out,
however, the costs associated with
truck-based overburden handling
systems necessarily increase to a
point where they prompt exploration
of potentially less costly material
handling system alternatives including
in-pit crushing-conveying systems
or IPCCs.
Since announcing its decision to
develop and market overburdenhandling
IPCCs during MINExpo
2008, P&H Mining Equipment has
engaged in discussions with several
large-scale surface coal mining
operations, examining the pros and
the cons of truck-based versus IPCCbased
overburden handling systems.
Coal News recently interviewed
P&H IPCC systems product manager
Scot Szalanski to learn more about
what key factors need to be considered
when analyzing IPCCs as a
potential alternative to truck-based
overburden strategies.
Coal News: How do you compare
trucks as the prime mover in surface
mines with the emerging interest in
IPCC systems?
Szalanski: Trucks have been and will
continue to be valuable and versatile
overburden handling tools for surface
mining operations. What
makes IPCCs intriguing as an alternative
for some mines to consider,
however, is the growing awareness
that they offer the opportunity to
provide materially lower cost-perton
economies versus trucks as
operations continue to expand and
deepen.
Coal News: Is there a cost “tipping
point” with regard to trucks versus
IPCCs? And if so, how or when does
that tipping point occur?
Szalanski: For most open pit coal
mines, moving more than 15 million
bank cubic yards per year seems to
be that point when overburden handling
cost can prompt a strategic
review. That volume of material to
be moved, combined with truck travel
time – including time returning
P&H In-Pit Crushing-Conveying (IPCC) System
empty for the next refill – are key
cost factors. Use of trucks also
requires significant support machinery
expense – graders, water trucks,
dozers, tires and tire-service trucks,
fuel trucks, operator and maintenance
cost, and lastly higher and
often volatile fuel cost. Add to this
the growing pressure to reduce carbon
emissions and what we’ve
arrived at is an overburden handling
strategy “perfect storm” cost situation
for operators of open pit coal
mines.
Coal News: What are the pros and
the cons associated with IPCC systems?
Szalanski: Pros include the fact that
IPCC technology is over 50 years old
and therefore an established option.
It is the next most flexible overburden
handling method next to truckshovel
based operations but it is far
more efficient. An IPCC operation is
not as dependent on weather as
trucks are and it does not return
empty. IPCCs offer mines greater
ability to meet increasingly tighter
environmental regulations. IPCCs
are also easily expandable with lowest
capital and operating cost as
strip ratio increases.
Cons include the fact that IPCCs
have a high capital cost. They are
also perceived to have lower overall
system availability, and perceived as
well to lack synchronicity with the
shovel that feeds them. One other
concern is that IPCCs are serviced by
multiple suppliers and as a result
have limited aftermarket service and
support.
Coal News: What is your response
with regard to those actual and perceived
IPCC system disadvantages?
Szalanski: With regard to high capital
cost, a detailed total cost of ownership
or TCO analysis is absolutely
necessary when making a financial
comparison between trucks and
IPCCs. TCO analysis examines both
operating costs as well as capital
cost and it must include the proposed
life-of-mine horizon as well as
annual tonnage requirements as
they vary over that time frame. You
then calculate a cash flow analysis
for the proposed IPCC versus trucks
on a net present value or NPV basis.
For some mines, the IPCC strategy
offers compelling cost saving advantages.
To address the concern about the
shovel working in optimal harmony
with the IPCC, P&H Mining
Equipment has developed a continuous
processing remote health system
called PreVail, that links the
shovel, crusher, spreader and all
appropriate conveyors to provide
everyone – mine management,
shovel and IPCC system operators,
MinePro and P&H engineers at the
factory – with the ability to distill
large volumes of system health and
performance data into the information
and knowledge needed to optimize
the complete IPCC system productivity
and reliability.
To address concerns about having
necessary service support, a P&H
IPCC system is installed and supported
by the regional P&H MinePro
Services team that supports the
mine’s P&H and other equipment.
Coal News: Is there anything else
that can help mine management in
its overburden handling strategy
review?
Szalanski: It helps to be able to visualize
the productivity and how an
IPCC might be applied to the mine’s
production landscape. How that
IPCC can adapt and evolve as the
mine operations progress over time
through planned overburden and
production phases is critical. Our
engineers have developed a proprietary
“4D Visualization” system that
combines a mine’s 3D mine topographic
model with application of
IPCC system components. Using
fast-forward time, we can visually
show how the mine plan will develop
over the life of the mine.