Are you really using your information to increase the effectiveness of assets and people?

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1 Are you really using your information to increase the effectiveness of assets and people? Presented by Osvaldo A. Bascur, Metals Industry Principal, OSIsoft, LLC. Copyright 2014 OSIsoft, LLC.

2 2

3 Current Forcing Factors Early work and challenges What is being done? Competence Centers Further work: Cloud 3

4 Where is the PI System Used in Metals and Mining? Coal and Energy Iron Ore Copper Nickel, Zinc, Lead and Silver PGM and Gold Diversified and Other Mining Companies Alpha Natural Resources BHP Billiton Cameco Consol Energy Energy Coal Glencore Murray Energy Corporation Peabody Rio Tinto Coal Sasol Suncor Energy Syncrude Xstrata Coal Arcelor Mittal BHP Billiton CAP CLIFFS Companhia Siderurgica Nacional Dongbu Rio Tinto SeverStal Resurs TATA Steel Usiminas Vale Anglo American Aurubis BHP Billiton Chinalco Codelco Escondida Glencore Freeport-McMoRan Grupo Mexico Ivanhoe Mines Kennecott Utah Copper KGHM Rio Tinto Southern Copper Sumitomo Corporation JianChi Copper Asturiana de Zinc Grupo Paranapanama KGHM Glencore Nyrstar Penoles QNI Teckcominco Vale Votorantim Anglo American Anglo Platinum Barrick Cameco Goldcorp, Inc. Umicore Newmont Kinross Oceana Gold Gold Fields Aditya Birla Group Alcoa Anglo American Bhpbilliton Cemex Climax Molybdenum Dubai Aluminum Glencore Italcementi Hydro Logan Aluminum Mosaic Rio Tinto Upstream Midstream Downstream Mining Mineral Processing Metal Processing Product Manufacturing 4

5 Energy/Water In Mineral Processing Plants 5

6 Mining and Mineral Processing Forcing Factors Falling Ore Grades Rising Energy Costs Ore Type Variations Remote Operations Safety and Environmental Regulations Water Labor Costs Rapid technological changes 6

7 Electricity consumption in copper mineral processing M I N E, 3 % M I N E, 3% P R I M A R Y C R U S H E R 4% SAG Mill, 21 % Crushing and Milling, 58% Ball Mills, 31% Flotation, 14 % T h I c k e n e r s, 5 % T a i l I n g s D a m Flotation, 23% Other, 7% Other, 7% Infrastructure and Water, 8% Infrastructure and Water, 8%

8 New Tools and Technologies in the 21 st Century Remote Sensors Modern Design Tools Smart Sensors Robotics Process Analytics Big Data Cloud Based and Collaborative Technologies Continuous Video Monitoring Advanced Process Control Offline Decision Making Learning On-demand Mobile Apps

9 Information A Key Enabler for Manufacturing Excellence New Technology Enables Improved Productivity through Employee Engagement and Enhanced Functionality to the Business Operating System 10

10 What If Your Company had the Ability to Leverage Its Current Data Assets to Improve Enterprise Visibility and Management (Operating System) Establish and Automatically Report Standard KPIs to Measure Performance Support Operations through Global and Regional CoEs (Centers of Excellence) Drive Real-time Action in Support of Operational Excellence Rapidly Identify and Leverage Best Practices Increase Employee Engagement with Continuous Improvement Innovation Improve Awareness and Forecasted Impact of Uncontrollable Factors Rising Energy Rates Rising Raw Material Costs, Reduced Raw Material Quality Rising Water Rates Rising Labor Rates Cost of Environmental Regulation / Mandates More Directly Impact Controllable Costs / Performance Continuously Improve Process Productivity / OEE Better Control Product Quality / Improve Genealogy Tracking Extend Life of Critical Assets / Reduce Maintenance Costs Reduce Energy / Raw Material / Natural Resource Consumption Continuously Improved Environmental Performance to Meet Regulatory Compliance and Reporting Requirements 11

11 Who drives the Value? - Operators leverage critical information when and where is needed in the field - Process Engineers develop ad-hoc analysis and Best Practice process - And Visualization standards to improve location production management - And performance - Supervisors and Area Managers review real time KPI and have drill down - Capability for root cause analysis and problem resolution - TICoE leverage Best Practices analysis and visualization standards - Across the business for Power Comparison, root cause analysis - And improved performance - Business Leadership is insured of timely, accurate and consistent information - For evaluating performance improvements and driving decisions 12

12 What would be the Results? Improve Operating Cost Position Reduce Sustaining Operations Cost / Improve Productivity Reduce Working Capital (Inventory) Improve Supply Chain Options / Performance Increase Revenue Stream Improve Overall Production Capacity / Quality Improve Capacity / Mix of Higher Margin Products Increase Asset Availability Reduce Capital Requirements Reduce Sustaining Capital Requirements Reduce Capital Requirements for Information Solutions / System Integration 13

13 The Evolution of the OSIsoft PI System What is Driving the Growth with Existing Customers? Deployed in Support of Defined Process / Project Initiatives Provides Process Historian Functionality Component Pricing / Purchases Provides an Information Infrastructure Deployed as Data Foundation for the Plant / Enterprise Operating System Software / Services Purchased as Enterprise Agreements 14

14 Large Metallurgical are large cities Process Productivity / OEE Optimize Asset Life / Reduce Maintenance Cost Reduce Energy / Raw Material / Natural Resource Consumption Environmental, Health, and Safety Product Genealogy / Quality Equipment Assets Raw Materials Gas and Electric Metallurgical Complexes Water and Wastewater Material Inventories Compliance and Reporting Process Systems 15

15 Initiatives for Ore Types, Energy, Water and Metals Recovery Harder and Variable Ore Time Increased Energy Consumption Increased Water Consumption Sag Milling Concentrate Products Metal 16

16 Local vs. Collaborative Decision Making KPI Examples: Production, Quality, Costs, Equipment Availability, Environmental and Safety alerts with fast resolution and improved decision making. Min ² Mines, Mills, Smelters, Refineries KPIs -> Continuous Improvement and Innovation MONITOR MONITOR In Control? In Control? Yes No Identify Root Causes Identify Root Causes Operations/Maintenance Yes No Local Operations/Maintenance $ IMPROVE Satisfied? Establish Alternatives Yes No $ Strategic Competence Centers Maintenance/Engineering/Management Technology Change Behavior One Center 17

17 Information as an Enabler for the Business Operating System The Infrastructure serves as a foundation for competitive advantage through: People Engagement & Best Practice With common data, talent across the globe will engage in collective innovation and the pursuit and sharing of best practices. The SMART architecture allows for the rapid deployment of Best Practices through leverage of a common computing infrastructure Process Measurement (KPI) Sharing a common language with other plants will allow us to truly realize Enterprise Advantage. A discovery in one plant can result in procedure, training, and policy changes in the other plants. SMART measures will become common measures. They will allow us to share best practices from one plant to another. Conventional manual data entry / transfers will be reduced. Continuous Improvement Better Results 18 18

18 Competence Centers: ORE ENERGY WATER EQUIPMENT CONCENTRATE 19

19 The Mining, Mineral and Metals Industries COMPETENCE CENTER Knowledge and Collaboration Data Integration, Validation, Event Frames and Notifications Asset Optimization Mining Mineral Processing Metallurgical Processing Metal Refining Metal Manufacturing Costs Reduction, Energy, Water, Environmental, ISO50001 S95

20 Benefits of the Center Monitoring Diagnostics Common model for the operational and maintenance of the processing plants On-line expert support distributed for the operations and maintenance Transmitting core best practices to the operations Maintain internal know how Technological center of operational excellence 21

21 Transforming Data into Actionable Information H I E R A R C H Y Data Acquisition Data Validation Classification & Analysis Model Selection Coordination Zero Span Communications Low High Flow Compensation If ( F>200 and T>100 Then ST=OK If ( F < 200) Then ST = Trouble Model PREDICTIONS Debottleneck Data History Events Predictive Analytics Actionable Information

22 Leveraging Mine Mill Integration and Advanced Analysis 23

23 Integrated Mineral Processing 24

24 Grade Recovery Performance Management Grade Recovery Maps Grade Optimize Grade Ore Type 1 Optimize Efficiency Ore Type 2 Optimize Recovery and Grade Optimize Recovery Recovery

25 Southern Peru Copper: Cuajone Cuajone Production 87,000 MT fine Copper per day. Conventional open-pit mine Concentrator - 10 Grinding Lines. 26

26 Traditional Strategy for Grade Recovery Optimization Traditional Data Handling 27

27 Interface Mining SCADA Ore Type Events GPS Mine Planning DISPATCH Round # (Ultimos datos: 29/11/ :06:39 ) 418 Round Meteorización Tipo de roca 1 3 % Tipo de roca 1 91,1 Tipo de roca 2 6 % Tipo de roca 2 8,9 ph Dureza 7,61 4 Cu % 0,75 Au g/t 0,84 5 Datos de mineral de mina al chancador, actualizado por hora. Tendencias de las últimas 24 horas - Hacer doble click para ampliar Round-Tipo de roca. 01/12/ :46: , 20000, 0, 0, 0, 0, 15:00 17:00 19:00 21:00 23:00 1:00 3:00 5:00 7:00 9:00 11:00 Leyes Cu-Au-Cu soluble 01/12/ :46:55 1,6 1,6 6, 1, 6, 100, 0, 0, 0, 15:00 17:00 19:00 21:00 23:00 1:00 3:00 5:00 7:00 9:00 11:00 Cu soluble % 0,09 15:00 17:00 19:00 21:00 23:00 1:00 3:00 5:00 7:00 9:00 11:00 Rock Tipo de roca Tipo alteración Meteorización/Enriquecimiento Dureza de roca 3 - Pórfiro P3 1 - Potásica fuerte 1 - Suelo residual. Fábrica original, destruida Type 4 - Pórfiro P2 2 - Cuarzo-Magnetita 2 - Completamente meteorizada/alterada. Roca descompuesta y friable 5 - Pórfiro Los Amarillos 3 - Epídoto-Clorita 6 - Andesita 4 - Fílica 9 - Andesita Rubble Zone 5 - Argílica 100, Round-Dureza-pH-Meteorización 01/12/ :46: , 20000, 7, 0, 10, 5, 6, 0, 3 - "Zona de Lixiviación" No visible Pyrita/Calcopirita.Alta meteorización/alteración Roca decolorada y de reducida resistencia por meteorización 4 - "Zona de enriquecimiento" Visible Calcosina/Covelina. Moderada meteorización/alteración Roca decolorada, pero su resistencia poco afectada solo en discontinuidades con meteorización 5 - Suave meteorización/alteración, resisrencia inalterada,meteorización solo en diaclasas 6 - Fresca e inalterada. Alteración puede resultar en una mayor competencia de la roca (ej.silicificacion). Hardness 1 - Roca extremadamente blanda 2 - Roca muy blanda 3 - Roca blanda 4 - Roca de media a dura 5 - Roca dura 6 - Roca muy dura

28 Operational Unit Events Ore B Reduction (Time Slices) Ore A Production target Event Capture Startup Production Shutdown Event Operating Events [St, Et} Production time STDev=(-15m, *,x, Trouble) STDev=(-1month,x, Ore B) Running = Key Variables within acceptable range Trouble = Equipment not meeting Production target, Environmental, Quality Down = Equipment broke Stopped = Equipment idle Maintenance = Scheduled Maintenance

29 30

30 New Strategy for Grade Recovery Improvements Events Events Events 31

31 Big Data, Events and Business Intelligence tools Process Characteristics Prod 1 Production Prod 2 Lines Prod 3 Prod 4 Ore Type Mineral 1 Mineral 2 Mineral Crushing Grinding Flotation Thickening Historical Events OK Mineral 4 Trouble Down 01:00 02:00 03:00 Stopped Maintenance Time

32 Southern Peru Copper: Cuajone Process Sharepoint, PI AF, Excel Data Services, PI Slicers Using Latest Power Pivot in Memory technologies AF Model Slicers Analytics Results 33

33 Results: Advanced Mine to Mill Integration UC 2010 Production Benefits: Economic Benefits: Integration of Mine Feed Knowledge with Milling, Flotation and Dewatering. 34

34 THANK YOU Brought to you by

35 THANK YOU Brought to you by Copyright 2014 OSIsoft, LLC.

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