Presented by

Venkata Ashok Kumar Indian Institute Of Management Raipur

Under the guidance of R.K. Tiwari and O.P. Vaidya

Content
Introduction Scope of application of operation research in mining Problem formulation Literature Survey Research Problem Research Design Results and Conclusions Recommendations
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Introduction

Founder Shri Om Prakash Jindal

Jindal Power Limited (JPL) is a fully owned subsidiary of Jindal Steel and Power Limited (JSPL)
JPL, Tamnar is the first Mega Power project in India with 1000 Mega Watt (MW) (4 X 250 MW) annual capacity Projects with capacity of 10, 480 MW are under various stages of completion as of June 2012. Fuel is supplied from captive open cast coal mines in Tamnar
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Five - S

Introduction

Located in Sub Block IV/2 & IV/3 of Gare Pelma area in Mand Raigarh coal field Total reserve of about 285 MT and planned production capacity of 6 MTPA (Million Ton per Annum) A 6.7 Km length conveyor belt to transport coal to power plant from CHP (Coal Handling Plant), Mines. A combination of Shovel Dumper is used for the extraction and transportation of mineral
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Introduction

All the equipment and machinery in the mine is outsourced Operated in 3 different pits by 3 different contractors Explosives are purchased from Orica Indian Oil Corporation of India Limited (IOCL) supplies diesel. SAP R/3 is used as ERP system in the Mine
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.
Introduction
Scope of application of operation research in mining

Problem formulation
Literature Survey

Research Problem
Research Design Results and Conclusions Recommendations
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Scope

Mining is a capital intensive industry

Very Important to achieve break even in minimum time Synchronize various activities of mining and reduce cost of production Blending of ore to achieve optimum quality
Efficiency in various operations
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Scope

Effective use of fuel and other resources

Maximum extraction of mineral

Material Handling Waste management and pollution control

Reclamation of land and other resources

.
Introduction
Scope of application of operation research in mining

Problem formulation
Literature Survey

Research Problem
Research Design Results and Conclusions Recommendations
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Problem Formulation

Typical Indian open cast mine spends about 32% of total cost on energy and fuel Diesel is an important source of fuel in open cast mines used in shovels, dumpers, dozers, cranes etc.

Energy efficiency is important for increasing productivity

Proper combination of dumpers and loaders reduce idle time of excavators and queuing time for dumpers

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Unaccounted losses and improper maintaining of records

.
Introduction
Scope of application of operation research in mining

Problem formulation
Literature Survey

Research Problem
Research Design Results and Conclusions Recommendations
12

Literature Survey

Tan and Ramani (1992), Kesimal (1998) and Black well (1999) has proposed match factor for selection of equipment in mines Match factor is the ratio of efficiency of loading equipment to the efficiency of haulage equipment

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Literature Survey

The minimum number of trucks required is calculated using match factor Karimi (2007) addressed uncertainty in parameters with fuzzy optimization allocation model Ta (2005) developed stochastic model that incorporates real time data for allocation of fleet US geological survey developed Linear programming model. Given the location and demands of various grades of coal, the problem of mining and distributing coal in an optimal fashion has been formulated as a linear programming problem

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Literature review

Queuing model addresses the truck dispatching problems using mathematical study of queues and waiting lines. Key performance Indicators (KPI) are defined to evalute the performance of different aspects in mine. Bench marking provides means to measure and identify best practices with in a single organization

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.
Introduction

Scope of application of operation research in mining

Problem formulation Literature Survey Research Problem

Research Design
Results and Conclusions Recommendations
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Research Problem
1)

The equipment selection and the proper combination of excavators and dumpers directly affect the efficiency of the business operations. The consumption of diesel varies in proportion to the efficiency of allocation of the transporting equipment to the loading machinery. Fuel management in mines leads to the reduction in fuel cost.

2)

3)

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.
Introduction

Scope of application of operation research in mining

Problem formulation Literature Survey Research Problem

Research Design
Results and Conclusions Recommendations
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Methodology

Data is obtained by the use of SAP

Most of the calculations are done in Excel

Calculations are based on the data for Fiscal year 2011-12 Comments on fuel management system is based on observation

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.
Introduction

Scope of application of operation research in mining

Problem formulation Literature Survey Research Problem

Research Design
Results and Conclusions Recommendations
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Results (Match Factor)

HEMM List
Excavators and Loaders Capacity (m) No. of machines Dumpers Capacity (m) 14 1.88 1.9 2.5 0 1 1 16 17 18 No. of machines 3 62 10 76

2.7 3
3.5 3.7 4 4.5 5.5
21

5 3
5 1 0 5 0 21

18.7 16.74
Total

7 Avg
158

Total

Results (Match Factor)

Calculation of match factor is done in table below

Average daily production no. of dumpers Avg. capacity of dumpers no of cycles per dumper no. of shovels Avg. capacity of shovels 44538.65 158 16.74 16.83932 21 3.318 5.045208 m3 no.s m3 no.s no.s m3 no.s

no. of cycles to fill one dumper

no. of cycles per shovel

Match factor

126.6958
1

no.s

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Results ( Litres/BCM)
Month Total excavation (m3) Diesel Consumption Litres per Bank cubic (Litres) metres

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12
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1805164 1406300 1249498 1110546 839819 784008 1371189 1634836 1599780 1484588 1589803 1158382 16033913

978777 788151 716762 625827 541250 524343 863870 918294 941664 820929 849924 767088 9336879
Average

0.542209461 0.560443006 0.573639974 0.563530912 0.644484109 0.668798022 0.630015264 0.561704049 0.588620935 0.552967557 0.534609634 0.662206422 0.582320672 0.589657694

Fuel Management

Dipstick is used for the measurement of fuel from the tanks Disadvantages are

Unintentional human errors Unaccounted losses Error in fuel measurement Unavailability of accurate records or readings for verification

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Fuel management

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Conclusions

Diesel consumption is 0.69 litre per m3 of mineral excavated and is higher than other large open cast mines such as Jayant, NCL which uses automatic truck dispatching

Idle time of excavators is greater because of the lack of proper dispatching system
Manual management of fuel resulting in errors and losses

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.
Introduction
Scope of application of operation research in mining

Problem formulation
Literature Survey

Research Problem
Research Design Results and Conclusions Recommendations
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Recommendations

Use of larger capacity HEMM

Use of Automatic truck dispatch systems such as OITDS and MLS Use of energy efficient power excavators and shiftable conveyors Use of proper fuel management systems

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Thank you

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