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Economic analysis and selection of continuous surface miner: A case study for a
bauxite deposit
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2 authors, including:
Khanindra Pathak
Indian Institute of Technology Kharagpur
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1.0 Introduction
In the mid-70s of the last century, the idea of mechanical extraction of rock triggered the development of
a new, economically efficient open-cast mining method using continuous surface miners. This machine
works on milling principle and enables excavating rock without blasting. By the turn of the century, this
machine got wide acceptability in many countries. In India it started with lime stone mining and got
accepted for coal production. Techno economic analysis of this machine for various fields was undertaken
by various authors. For selecting any machine for mining, it is essential that the response of the rock-mass
of the site to the machine is established first. Diggability of rocks by different equipment was studied by
Scoble and Muftuoglu (1984) amonst others,. Determining the diggablity index of the rock mass of a
mining field helps in selecting the type of equipment. The cost of operations and risks of investment is
highly influenced by the cutting tool of the machine and rock interactions. The risks of operation with CSM
were investigated by Sabnov et al (2008). Dey et al (2000) studied the applicability of CSM in Indian mining
conditions. Dey and Sen (2001) developed a methodology for studying selection of continuous surface
miner. Dey and Ghosh (2008) studied the prediction of cuttability with surface miners.
A study was conducted for one of the bauxite mines in India. This involved investigating the cost
effectiveness of changing from conventional surface mining to blast-free mining using CSM under
particular site condition.
1
Professor, Department of mining engineering, IIT Kharagpur-721302, khanindra@mining.iitkgp.ernet.in
2
PG Student, Presently with Rio Tinto, Australia
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Jl. Of Mines Metals and Fuels, vol 59, no 9 Sept 2011, pp 280-293.
Sl No Module Elements
1 Drive group Engine, clutch, pump drive mounting.
Engine fuel line
Engine piping
2 Milling drum unit Drum support arrangement
Rear scrapper arrangement
Belt tensioning arrangement.
3 Steering and lifting Steering arrangement (front & rear)
unit Lifting arrangement (front & rear)
4 Track module Under carriage assembly
Drive group track
Idler group track
Tension and recoil assembly (track front & rear)
Roller group track
Link assembly track
Guard track
Idler assembly track
5 Lubrication system Lubrication pump assembly
Lubrication piping for clutch
Lubrication piping for PTO
Grease piping-Steering and lifting
Grease piping-Rear scrapper
6 Water system Water piping (suction)
Water spray arrangement delivery
Spray pump assembly
High-pressure washing.
The selection of a machine for a particular site involves critical decision making after examining the
cuttability of the particular rockmass in the site and maintainability of the components of the equipment
under the working geo-mining conditions.
The rear drum type CSM as shown in Figure 2 (Manufacturer: Vermeer has cantilever arms that can be
raised and lowered to allow vertical movement of the cutter drum. Such machine with 3.7 m width of
cutting drum can achieve a depth of cut of 61 cm. The cutter drum with its adjustable height is fitted with
teeth around its circumference. The excavating rate is controlled by the travelling speed of the track-
mounted machine. The cutter drum with its adjustable height is fitted with teeth around its
circumference. The excavating rate is controlled by the travelling speed of the track-mounted machine.
This machine demonstrated a production rate of 580 t/h on limestone with compressive strengths
between 35 and 139 MPa. (http://www.verlagbt.de/verlag/ci/2009-03/themen2.en.php) .
The “top-down” cutting technology of Vermeer machine allows the cutter teeth to achieve greater rock
penetration. When the machine travels forward, the teeth on top of the drum are positioned over the top
of the rock surface. As contact is made, the teeth instantly cut the rock. Tractive effort is no longer
required to create tooth penetration.
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The mine where the machine was tested uses conventional method of bauxite mining where hard rocks
are blasted and excavated by hydraulic shovel. The overburden is also removed by dozing and ripping
where applicable. The structure of the bauxite deposit is having high undulations both at the floor and the
roof. And often selective mining is carried out at the interface of OB and bauxite or at the floor and
bauxite. There are also intrusions of hard rock into the deposit, which would provide excessive cutting
resistance to the cutting drum leading to higher rate of damage of the cutting picks of the .
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Besides the above there will be certain savings by reducing excess manpower and other costs that are
associated with storage, handling and maintaining security of explosives.
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Investment in machinery requires capital and should therefore be assigned a capital cost regardless of
whether or not money is borrowed to purchase the machinery. If the money to purchase machinery is
borrowed, the calculated interest cost is at least large enough to cover the interest paid on the loan.
Shelter, Insurance, Taxes
For most machines these three costs are usually less than depreciation and interest, but they still need to
be acknowledged. Some researchers indicate that a quick guideline would be to charge an amount equal
to 2% of the purchase price to estimate the expense of all three of these costs. However, a better method
would be to calculate the storage space required by machinery and then charge an appropriate rate per
square foot of storage space required considering the cost of building and maintaining the machinery
shed. This cost is usually covered in the Plant and Maintenance costs.
Costs for insurance coverage need to be included as insurance provides protection from risks associated
with theft, fire or other natural disasters not relating to users negligence. The cost of insurance (premium
payment) is based on the initial cost and type of machinery as well as the type and extent of protection
desired.
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According to the technical brochure, Wirtgen 4200 consumes 289 liters per hour when working on full
load. The value used is the product of number of machines and 289.
12) L - Estimated cost of a liter of oil, grease and or filters.
13) M - Oil consumption (liter per hour) of the machine. (General assumption)
14) N - Cost of a cutting pick. These are high wear items and need to be included separately for
calculating ownership cost.
15) O - The expected lifetime (in number of hours) of a set of cutting picks.
16) P - Estimated repair and maintenance cost. This can be a significant factor in the equipment cost.
Repair and maintenance costs vary considerably depending on the type of work. Equipment with the
lowest repair and maintenance are cost effective over the life of a machine. Periodic Maintenance
Plans are important to keep this cost down. The Service Manager is the best source for this type of
information. Estimated repair and maintenance costs are sometimes available from either the
manufactures performance handbook, or from the product manuals.
For Surface Miners the maintenance cost is generally considered to be 15 percent of the cost of the
surface miner.
17) Q - Operator cost per year - Operator wages.
Wirtgen requires about 6 to 7 people to handle all its operations; however this cost has been directly
extracted from the cost sheet provided by mine.
18) R - Operating hours for the machine per year - scheduled hours the equipment will be used per
year.
The following parameters were directly copied and used from the cost information sheet provided by
mines. These values remain unchanged regardless of method selected for extraction of Bauxite.
19) S – Subtotal 1 – Utilities and Power cost taken from present data. This value is assumed to remain
same even after change in method of excavating.
20) T – Subtotal 3 – Cost of Building, Plant maintenance and others. This cost is assumed to remain
unchanged after change in method of working.
21) U – Subtotal 4 – Cost of Factory overhead, Royalty, Quality management, Pollution control and
Administrative overhead. This cost is assumed to remain unchanged; however the cost of pollution
control will decrease with use of Surface Miners.
22) V – Subtotal 5 – Cost of Salary and wages and others. This cost will decrease with the
implementation of Surface Mines; however the change is offset by the increase in production.
23) W – Freight and Transportation cost; assumed to remain unchanged.
The cost has been estimated using the values available from case studies of similar application. Table 1.2
shows the factors considered for the estimation of owning and operating costs. The figures colored blue
are calculated using the simple mathematical relationships. Figures marked yellow are assumed based on
the personal discussions, literature and brochures from different companies. An excel sheet based
calculator has been developed, that can be used as and when exact values are provided by the user.
The operating and owning costs are estimated on the following assumptions –
1. The annual production target 6.8 million tons of bauxite.
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2. Whichever model and make of surface miner is selected for use; the number of surface miners
required are calculated based on fixed target production mentioned above.
3. Certain costs are independent of the number of surface miners used. These costs are mentioned
the explanations following the costs table.
4. Wirtgen 4200 Surface Miner was considered for calculating all the values given in the Table 3
Table 3 Calculation of cost of production by deployment of CSM
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Thus it is observed that the cost of production with CSM less than producing by conventional method by
about Rs.80 per tonne.
The number of dumpers may change depending on the machine selected. Table 5 summarises the
comparison of the number of dump trucks required for some of the different models of the Surface Miner
with BH-60 and BH-85 ton trucks.
Table 5 Compatibility of CSM and dump truck
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Wirtgen 4200 12 9
L &T 304 10 7
Vermeer T1255 SM 7 6
As annual production capacity depends on the machine specification, it varies machine to machine. The
fleet size of machines and associated trucks depends on the model selected. Taking the target production
to be 6.8 million tonnes per year the number of Surface Miners required to meet the production for
different make and model is shown in the Table 6.
Table 6 Number of machines required to produce 6.8 Mte in the specific site conditions in the present study.
No of machines
Model
required
Wirtgen 4200 3
Wirtgen 2500 4
Vermeer 1225 3
L & T 223 SM 4
L & T 304 SM 3
Astec 3000 SM 3
Huron Easy Miner
3
1224
Bitelli SF 200 M 10
MTS 180 4
MTS 300 3
MTS 500 2
MTS 800 2
MTS 1200 2
MTS 2500 1
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The above analysis showed that the cost of production (including the cost of freight and transportation)
amounts to Rs 217.64 per tonne under the site condition during the study time. This cost is comparatively
much less than the cost of production by conventional method currently used there, which is as per the
data provided by the mine is around Rs 331.04 per tonne. Certain important aspects of the comparison
done above are –
1. Wirtgen 4200 was considered as the Surface Miner used for blast-free mining as Wirtgen 4200’s
technical brochure provided most clear information.
2. For considering any other model and make of Surface Miner the production is kept constant at
6.8 million tons per annum.
3. The number of machines to be deployed is directly related its production capacity and total target
production.
4. Certain parameters do not change with the number of machines deployed.
The Table 7 lists a few sites where Surface Miners were deployed successfully and economically with the
respective material type and production results.
Table 7 Examples of sites using different Surface Miner Models
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truck change-over time will have to be minimized and it should be less than the cycle time for loading the
material from windrow by an excavator on the large capacity dump truck. The existing excavators will not
be economic to use as loader for trucks from the windrow produced by CSM, because of the low height
of the windrow. Price of the machines and number of machines required for the targeted production will
be the main decision criteria for selection of the machine.
Using the specifications of different models of CSM production rate and required number of dumpers
were calculated for the conditions of the site under study. Table 8 gives the results of this study:
Table 8 Comparison of alternative machines on selected conditions
SM4200 and L&T 304 has conveyor belt loading facilities. In case the mine operator plans a new work
face along with the existing system Vermeer T1255 or L&T 304 can be can be considered along with a
compatible front end loader (FEL) to work with BH-60 dumper. The main decision criteria in this case will
be the number of unit required. If L&T 304 is selected, the machine may cost less than the cost of imported
machine. However, Vermeer T1255 being rear drum machine; the cost on certain aspects of maintenance
will be less. However, it should be noted that the reliability of the machines and their running costs must
be considered carefully. A detailed study on these aspects is necessary to develop proper equipment
selection guideline.
The L&T 304 is a 1200 HP machine, whereas SM 4200 is a 1600 HP machine whereas T1255 is a 600 HP
machine. As the rock of the investigated size does not fall into the category of rocks that are very difficult
to cut, very high installed capacity may not be necessary.
It was recommended that the specifications of the L&T 304 and Vermeer T1255 would be useful for the
studied mine site. Any final selection will be on the basis of the actual price and running costs of the
machine.
3.0 Conclusion
The cost of production by CSM will be less than the cost of production by conventional method. As
observed in this study the saving may be around Rs 80 under specific conditions, however, this value
cannot be considered for any site. In general the savings are obtained due to:
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Optional:
1. Discharge belt conveyor capacity: 800-850 m3/h
2. Belt width: 1500-2000 mm
3. Pressurized air-conditioned cabin room
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References
1. Scoble, M. J. and. Muftuoglu Y.V, 1984, Derivation of a diggability index for surface mine
equipment selection , Mining Science and Technology , Volume 1, Issue 4, August 1984, Pages
305-322
2. S. Sabanov, J-R. Pastarus, O. Nikitin, and E. Väli, 2008. Risk Assessment of Surface Miner for
Estonian Oil Shale Mining Industry, The 12th International Conference of International Association for
Computer Methods and Advances in Geomechanics (IACMAG) 1-6 October, 2008, Goa, India
3. K. Dey, Pathak, K. and P. Sen, 2000
Continuous Surface Miner in Indian Surface Coal Mining-A Case study Surface Mining, Braunkohle &
Other Minerals , 4/2000, pp. 371-376
4. Dey K, Sen P (2001). Selection of optimum mode of continuous surface miner operation- A methodology. The Indian
Mining Eng. J., May/June: 21-24.
5. Dey K, Ghose AK (2008). Predicting “Cuttability” with Surface Miners –A Rockmass Classification Approach. J. Mines
Metals Fuels 56(5 -6): 85 - 92. Available online at http://_www.academicjournals.org/JETR
6. Wirtgen 4200 SM Technical brochure
7. Vermeer T1255 Technical brochure
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