Excavator Selection
Excavator Selection
Excavator Selection
Excavator Selection
By B S Gregory 1
Abstract
The excavator selection process is quite complex due to the large number of influencing factors, many of these are variable and difficult to accurately define. The majority of mining companies prepare a tender of general specifications and suppliers will then match a product to those specifications. The mining company will then evaluate the tenders on the basis of the best available deal. In this paper, the importance of open pit excavator selection in terms of its impact on operating costs is analysed and discussed. A rigorous process for selection is then outlined.
loaders, draglines, bucket wheel excavators, scrapers and continuous miners may be valid alternatives in specific applications but these will not be discussed in detail. The selection of the type, size and operating mode of a loading unit can be a complex task governed by a number of factors that may be variable and poorly defined depending upon the maturity of the mining operation. Selection of an excavator is often dependent upon factors such as: mine design; mine production schedule; geology; material characteristics performance; and expected blasting
He has also been involved in numerous other analyses involving truck selection considerations including the following operations: Tarmoola; Mt Keith; Harmony.
climate and/or environment; expected reliability of the excavators; capital cost and operating cost; required mobility of the excavator; maintenance support analysis; power costs vs fuel costs.
Introduction
In this paper the importance of the open pit excavator selection process is examined and a suggested methodology is outlined. The term "excavator" is used here as a collective term covering face shovels and backhoes. (The author is aware that the term "excavator" is sometimes used as an alternative to "backhoe".) A general observation is that there is no accepted industry standard methodology for the selection of the most suitable excavator for an open pit. As is discussed in this paper, excavator selection can have a significant impact on the efficiency and profitability of a mining operation and hence a comprehensive systematic approach is warranted. This paper primarily focuses on the selection of face shovels and backhoes for medium to large scale, hard rock open pit mining. Other types of loading equipment such as front end
The costing analysis presented in this paper has been performed using Australian Mining Consultants Pty Ltd's (AMC's) OPMincost cost estimation model. The version utilised was based on a mine with the following attributes: 20 year mine life; maximum uphaul of 500m; total movement averaging 50 Mtpa; average dry density of material ~2.5 t/bcm.
1. Principal Mining Engineer, AMC Consultants Pty Ltd, 9 Havelock Street, West Perth, WA. Email: [email protected]
OPMincost is a comprehensive, spreadsheet-based model, which has been developed over a number of years by AMC and has been utilised successfully on about 20 projects. For the version used in this analysis, the following basic assumptions were used: owner mining;
Excavator Selection
owner maintenance; fuel price after rebate of A$0.36; interest rate of 7.5% per annum; 365 day, 24 hour operation with a two and one FIFO roster.
insufficient selectivity may result in grade, dilution and ore loss; poor matching with haul trucks results in increased haulage costs; loading inefficiency can cause downstream problems including a poor match with processing plant capacity and haulage fleet inefficiencies; poor excavator reliability can cause significant inefficiencies downstream including haulage fleet redirection, haul truck stand-down and/or production shortfalls; poor loading performance can directly impact on ore production and hence revenue; poor loading performance can result in insufficient waste stripping which may cause ore production delays and reduced revenues; sub-optimal sizing of excavators will result in opportunity costs, especially with regard to loading and hauling activities.
Cost inputs were based on May 2002 budget quotations from equipment suppliers. Considerable effort has been made to validate cost inputs and model outputs, including reference to recent benchmarking data and checking with various relevant industry professionals. Although the model is based on a real project, it is not appropriate or necessary to name the project.
The effects mentioned above are discussed in more detail below and in order to examine the significance of these effects, an order-of-magnitude profit impact has been calculated based on the example project mentioned above (low grade open pit gold, 20 year mine life, 50 Mtpa total movement). Of course, the relative magnitude of these impacts will vary significantly for different operations but the intention here is simply to illustrate the importance of excavator selection.
Haul
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These proportions will obviously vary from operation to operation but a check on AMC's database confirmed that loading costs typically make up between 15 to 20% of total mining costs for large open pits. Based on this analysis, it appears that loading costs may not be as important as haulage costs and it could be mistakenly concluded that less effort may be warranted in selection of loading equipment. However, because of the pivotal nature of the loading activity in a mining operation, excavator performance affects the efficiency of the whole operation, including the processing plant and excavator selection often requires as much or more effort than truck selection. In addition to its impact on the cost of the loading activity, suboptimal excavator selection may impact on operational profitability via the following mechanisms:
Excavator Selection
number of passes to load the truck; load time (which includes truck exchange time); the cost index.
Research by the Parker Bay Company has shown that the industry average number of passes per truck load is five. The results shown in Table 1 tend to support this. See also Figure 2 which shows a minimum cost index around four to five pass loading for the 650t and 400t excavators but an unexpected result for the 100t excavator where cost efficiencies of larger trucks override the excavator/truck match effect.
It is very unlikely that mining operations would select an excavator that is more than one class away from the optimal match, so for this analysis it is assumed that the sensitivity to a shortfall in this aspect is the difference between the cost indices of two adjacent classes. The approximate average magnitude of this difference is 5%. The effect of this truck selection shortfall on total mining costs would be approximately 2.5% because load and haul accounts for roughly 50% of total mining costs as defined in this analysis.
Table 1 - Analysis of the effects of excavator/truck matching on load and haul costs
Operating Weight (t) Bucket Capacity (cu.m) Truck Size (Payload) (t) 49 91 146 187 230 353 Number of Passes 4 7 12 15 18 100 6.5 Load Time (min) 2.13 3.48 5.73 7.08 8.43 Cost Index (%) 200% 144% 130% 126% 134% Number of Passes Excavators 400 20 Load Time (min) Cost Index (%) Number of Passes 650 34 Load Time (min) Cost Index (%)
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Excavator Selection
To quantify these potential effects, the following arbitrarily determined parameter changes were made to the OPMincost model: 10% increase in excavator maintenance costs
Increase of 10 minutes per shift in trucks waiting for excavators. These resulted in a: 2% increase in haulage costs 4% increase in loading costs 1% increase in total mining costs.
As for the effects of reduced ore production, again the relative importance compared to other cost impacts will vary greatly from operation to operation but generally this effect is the most serious in terms of potential impact on profitability. For example, an indicative calculation showed that if annual ore production was reduced by 5% for the example operation mentioned above, the loss of revenue would be equivalent to approximately a 20% increase in annual mining costs.
To analyse this effect the digging efficiency factor within OPMincost was reduced by 10%. The result of this was: 10% increase in loading costs 1% increase in hauling costs 2% increase in total mining costs.
Effect of poor excavator reliability on hauling costs and total mining costs
Poor reliability is defined here to mean frequent breakdowns. The most common measure of this aspect is the mean time between failures (MTBF). Reliability is related to availability (the time the machine is available for productive use divided by calendar time) but reliability reflects the level of operational disruption (inefficiency) caused by breakdowns. Poor excavator reliability can be related to excavator selection if the problem is a function of the excavator design, suitability of the machine for its duties, performance of parts suppliers or technical backup of equipment suppliers. All these issues need to be thoroughly researched and responded to in the selection process. A mining operation can be affected by poor excavator reliability in the following ways: Increased maintenance costs, especially through inefficient use of maintenance resources. This is because poor reliability implies frequent unplanned maintenance activities. Production shortfalls caused by reduced effective excavator hours. The most serious potential consequence of this would be loss of revenue due to interruption of ore supply to the processing plant. Haulage fleet inefficiencies, especially where unexpected excavator breakdowns cause unplanned re-allocation of haulage resources.
Excavator Selection
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Figure 4 - Potential impacts on profitability (in terms of percentage of total mining costs)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Dilution Poor Reliability Truck Match Inefficiency
Dilution due to poor selectivity Poor match with haul trucks Inefficient loading Poor excavator reliability
Please note, the profitability effects relating to dilution and reliability were quantified in terms of loss of revenue. These quantities were converted to an equivalent total mining cost for comparison purposes. Obviously these effects are potentially very significant and their magnitude highlights the importance of excavator selection. Refer to Figure 4 for a graphical representation of these effects.
Excavator Selection
Blending requirements may require ore from several sources to be delivered at specified feed rates. considering capacities and loading heights.
E. F. G. H. I.
Matching to haul trucks Expected digging characteristics of material to be mined for example, loose density, fragmentation, swell factor.
Develop/customise cost estimation model. First pass analysis and maintenance cost estimation. Prepare and distribute tender requests for excavator supply. Prepare and distribute tender requests for contract maintenance. Finalise analysis.
Minimum mining width required. Excavator mobility requirements how often does the excavator need to relocate and how far does it have to move? electric rope shovels are most competitive in bulk mining situations and where power costs are reasonably low. usually driven by selectivity considerations. Face shovels require higher bench heights for efficient digging.
Reliability of excavator. Reliability of suppliers/support. Operating costs: life-cycle maintenance fuel/power and lubrication operator costs GET.
Capital costs. Lead time for delivery. New versus second-hand equipment. Residual/salvage values. Cost analysis (preferably Net Present Cost). Industry trends.
Suggested process
Different circumstances may require markedly different approaches to that described below. The following process is based on a situation where: Time constraints (in relation to the selection process) are not overly onerous. There are no special relationships between the purchaser and any particular supplier group. Excavators would be owned (or leased) by the mine owner. Mine life exceeds the economic life of the excavators.
In estimating these factors it is useful to have access to a database of comparable, measured examples. That is, previous performance in similar material-types may be the best starting point for estimation factors. Note that, in relation to production rates, mine planning and excavator selection can, in some situations, be an iterative process comprising variations of the following steps: a mine plan is developed to satisfy production targets; excavators are selected that best meet the mine plan requirements and satisfy other criteria, eg least cost; the mine plan may be adjusted to take advantage of any excess excavator capacity.
In summary, the suggested process would be: A. B. C. D. Assemble a cross-functional team. Determine key operational requirements and analyse where necessary. Review industry trends. Request detailed information from equipment suppliers.
Excavator Selection
Selectivity. As discussed in the previous section, the importance of mining selectivity for operational profitability varies widely between mines according to the style of occurrence of mineralisation. Where selectivity is an issue, careful analysis is warranted because of the need to find the appropriate trade-off between dilution/ore loss and mining costs.
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This aspect can be analysed using standard integrated mine planning software such as Datamine. The methodology for this analysis can be summarised as follows. For each excavator type and size: re-block the resource model to match the excavator's selective mining unit dimensions, producing uniform blocks with diluted grade; apply appropriate mining and processing costs to orebody model blocks; apply appropriate metallurgical recoveries for calculated grade ranges; apply profit algorithm; calculate total operating cashflow; plot results of operating cashflow versus excavator size.
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This graph shows that with this type of deposit, the larger the block size the more dilution of ore grade. Figures 7 and 8 show the same relationships as described above (ie, cashflow versus excavator bucket size and ore grade versus mining block size) for more disseminated (actually a quartz stockwork deposit in this example) ore deposits where selectivity is less important. As can be seen in Figure 7, the economics of using larger mining equipment balance out the benefits of selectivity and, on the basis of this graph, it would be equally valid to select a 21m3 backhoe or a 50m3 rope shovel. Clearly other operational factors should be considered in conjunction with this analysis in order to make the appropriate selection. Flexibility. In this context, flexibility relates to the ability of an excavator to respond to changes in digging requirements. These requirements may involve selectivity issues and/or the need to relocate the excavator between different material types or mining areas on a regular basis.
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21 cubic metre backhoe 26 cubic metre shovel 35 cubic metre shovel 38 cubic metre rope shovel 50 cubic metre rope shovel
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Please note that the shape of the curves will vary from operation to operation in accordance with geological, operational and cost variations. Also, the curves on the graph have resulted from analysis of a reef type deposit where selectivity is a significant factor. The average diluted ore grade resulting from selective digging with the smaller excavator, is higher than for the larger excavators. In this case the 21m3 backhoe should be selected because it would provide the best operating surplus. Figure 6 shows an example of the effect of mining block size on diluted ore grade in a reef type deposit where selective mining is desirable.
In terms of selectivity, backhoes are more flexible than face shovels and hydraulic faced shovels are more flexible than electric rope shovels, due to the digging actions of the machines. Backhoes can better selectively mine flat-dipping deposits than face shovels and backhoes can also selectively mine to steeply dipping contacts. Face shovels can usually mine selectively to steep dipping contacts. Rope shovels have a fairly restrictive digging action because the bucket must mainly be lifted vertically through the face so selective mining is usually not suited to these machines. In terms of flexibility to relocate, hydraulic excavators are more mobile than electric rope shovels because they typically travel at about 2 kph compared to 1 kph for rope shovels. Also, the cable-handling work required when relocating rope shovels necessitates the use of more resources. To better balance the comparison between electric rope shovels and hydraulic excavators it should be noted that rope shovels remain the loading tool of choice for a significant proportion of applications worldwide. These machines are especially suited for bulk mining applications where frequent shovel-moves are not required and where power costs are attractive.
Excavator Selection
Figure 7 - Operating surplus versus excavator bucket size - quartz stockwork deposit
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Budget pricing. Component replacement schedule and parts pricing. Maintenance labour hours estimate component replacement schedule. Average fuel consumption rates. Lubrication consumption rates. Technical specification. Maximum suspended load and bucket weight. A listing of equipment numbers in the state, country and worldwide. Estimated delivery time from time of order. to match
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Figure 8 - Effect of mining block size on ore grade quartz stockwork deposit
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This model needs to cover all costs that would be affected by the excavator selection decision so that the total cost of alternatives can be compared. It is usual practice that Net Present Costs (NPC's) are calculated and compared so that the time value of money is taken into account. Development of comprehensive cost estimation models can be a time-consuming process. AMC's approach is to minimise this time by customising the OPMincost model for each application. A flow diagram representing OPMincost methodology is presented in Figure 9. In brief terms OPMincost calculates equipment productivities and hourly operating costs and combining the two calculates the total cost of the respective activity such as load and haul. Inputs to the cost estimation model, eg OPMincost include: are being Truck travel times and average fuel consumptions for each haul profile. Mining schedule. Truck specifications. Excavator specifications. Equipment maintenance costs. Calendar and operating roster parameters. Material characteristics. Equipment operating cost parameters. Wage rates. Operating delay estimates and efficiency factors, etc.
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What new technological developments are likely to be available in the near future? Is owner-maintenance becoming more popular? or OEM maintenance
Which makes and models of excavators are selling the most and how happy are current users?
Methods of review are many and varied, including literature search, suppliers' information, field visits, conferences, internet searches, magazines, utilising specialist consultants and visiting manufacturing plants.
Outputs required from the cost estimation model to compare alternatives include:
Excavator Selection
Excavator productivities and numbers required to meet the mining schedule. Number of trucks required to meet the mining schedule. Total load and haul operating costs. Total load and haul ownership costs. Total load and haul cash flows. Load and haul NPC.
It is also preferable to produce the following outputs to provide a clear understanding of equipment combination scenarios and allow for reality checks, eg comparing with statistics from other operations: Total annual operating hours. Total operating personnel requirements. Total maintenance personnel requirements. Hourly maintenance costs.
Talpac Inputs
Talpac Analysis
Costing Parameters Productivity Parameters Material Characteristics Truck Travel Times and Fuel Consumptions
Operating Hours
gaining an understanding of issues and opportunities and developing a tender request short-list.
Excavator Selection
It is during this phase of the analysis that maintenance cost projections are developed. This is a very important exercise (maintenance costs account for approximately 50% of loading costs), especially if owner-maintenance is being considered but even if contract maintenance is preferred, results provide a useful check on tendered contract maintenance rates. A checklist for items to be included in maintenance costs follows: Freight. Lubrication fluids. On-site and/or off-site labour costs. Unscheduled maintenance allowances. Bucket maintenance. Supervision and management. Tooling. GET replacement costs. Cranage. Oil sampling. Servicing costs.
new fleets of mining equipment are acquired. Possible reasons for this are: The risk of maintenance costs being underestimated is reduced. The problems associated with the owner recruiting and managing the maintenance crew is largely eliminated. Outcomes from contract maintenance from the owner's perspective have been quite good in terms of maintenance costs and equipment availability.
I - Finalise analysis
The steps involved here include: Review of tender responses. Discussion and negotiation with tenderers. Validation of key aspects of tender responses by checking actual industry experience. Calculate NPCs using the cost estimation model, incorporating tender responses. Carry out a risk analysis. If necessary, prepare a decision matrix to assist in finalising the selection.
Projected from time to time, these items may either be included or excluded from suppliers life-cycle maintenance cost projections. Major component lives should be checked against experience from other operations and from truck to truck to improve confidence in the numbers. It is preferable to have projections checked by an experienced haul truck maintenance professional.
Conclusion
The main messages to be noted when planning an excavator programme are that: The potential operating cost and production revenue impacts of excavator selection shortfalls are significant. A rigorous process should be followed in an effort to make the best possible selection. Thorough research needs to be carried out to determine the status of the market, industry trends and to validate suppliers' information.
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