Improving Energy and Water Specific Consumption Strategies Remote Supervision and Diagnostics

Osvaldo Bascur, Ph. D.

Business Development OSIsoft, LLC.

Agenda
Overview of the MMM Industries

Forcing Factors and Key Market Drivers

Industrial Examples

PI Asset Framework Infrastructure

Conclusions

OSIsoft in Mining
Provides operational visibility through real time data and event infrastructure. Over 18,000 installations in more than 180 countries 8 of the top 10 Mining Metals Producers use the PI System:

Todays Business Climate

Business Drivers:
Global Environment Regulations, Water and Energy Issues Lower Grade Material requires Higher Production Volatile Global Commodity Markets Return and Optimization of Current Assets and New Capital
Basic Industries

Challenges:
Aging workforce, new unskilled resources, centralized SMEs Distributed and Disjointed asset information Independent and Local owned local operational systems Very High Capital Remote Installations A lack of communication and collaboration tools Aging Physical Assets and Unclear maintenance Strategies
Utilities

Chemicals and Natural Resources

Energy Water Strategies

Higher Grade less Energy at Smelter Higher Recovery Higher Energy at Concentrator

Impact of Grade on Energy Use

80% 70% Recovery 90% 100%

30,000

Comminution Energy 50% of Milling Energy Water 5M3/Ton Cu

kWh/T of Cu

20,000 Total Energy Including Milling 10,000 Smelting Refining 0 0 0.5 Ore Grade 1.0 1.5 2.5
Doug Fuerstenau,UC Berkeley Study, 2001

Mining Costs Example

43% Energy Water 5M3/Ton Cu

* Fuente: Southern Peru Copper - Cuajone

Energy Water Strategies

Higher Grade less Energy at Smelter Higher Recovery Higher Energy at Concentrator
8

Impact of Grade on Energy Use

80% 70% Recovery 90% 100%

30,000

Comminution Energy 50% of Milling Energy Water 5M3/Ton Cu

kWh/T of Cu

20,000 Total Energy Including Milling 10,000 Smelting Refining 0 0 0.5 Ore Grade 1.0 1.5 2.5
Doug Fuerstenau,UC Berkeley Study, 2001

Mining Costs Example

43% Energy Water 5M3/Ton Cu

* Fuente: Southern Peru Copper - Cuajone

Weather and Country Energy Limitations

Most Arid Region in the World

Large Energy Requirements

Chile
1 1

Water is very important for Endesa

ENDESA Centro de Monitoreo y Diagnstico

ENDESA Aplicaciones

Process Areas Condition Based State or Smooth Factor Index

AVG (Flow(t)) = PISUM( StTime, EtTime, Flow, AVG, filter (running), ) STD (Flow(t)) = PISUM( StTime, EtTime, Flow, STD, filter(running),)

Southern Peru Copper - Integration of Mining with Production of Concentrates

Access to Mining SCADA on line

Mining Grinding Flotation Dynamic Performance Monitoring and Notification

Concentrator Portal Applications

Productivity Indicators

Benefits for the Milling Advanced Control System

Increase of ore milling: 4.6% Decrease of mil power: 3.9% Decrease of fresh water consumption: 6.8%

Production Benefits:

Economic Benefits:

Net profit: US$ 31.8 million PI System contribution: US$ 7.95 million
*(period: 2009/04/04 to 2009/12/31)

PI Asset Framework Configuration

PI Asset Framework Model

Cubos de datos
Proceso Unidad 1 Unidad 2 Unidad Unidad 3 Unidad 4 Mineral 1 Mineral 2 Material Mineral 3 Mineral 4
85.132 85.980 85.132 85.980 94.110 94.853 94.110 94.853 44.700 44.790 44.700 44.790 85.230 85.234 85.230 85.234 81.230 81.234 81.230 81.234 69.030 69.790 69.030 69.790 44.700 44.790 44.700 44.790 42.7932 42.840 42.7932 42.840 69.030 93.790 69.030 93.790 85.132 85.980 85.132 85.980 42.7932 42.840 42.7932 42.840 94.110 94.853 94.110 94.853

Chancado Molienda Hidro Flotacin

01:00

02:00 Tiempo

03:00

Example Concentrator OLAP

Conclusions
Gaining data visibility across all operations Gather data from multiple systems & sites, and leverage opportunities to reduce costs and improve operations. Identify and promote best practices Dynamic Performance Management Infrastructure with Collaborative Services (Utilities, Water, Consumables, Inventories and Metallurgical Performance Metrics) PI Asset Framework standardization and standard Web and BI tools. PI System provides the required granularity and consolidation of Information for improved Operational Intelligence

Osvaldo Bascur
osvaldo@osisoft.com +1 936 443 6527