Introduction To Panel Caving

An Introduction to Block and Panel Caving
Allan Moss, General manager Rio Tinto Copper Projects
Agenda
Context why the interest in caving How block caving works and key technical considerations Risks Value drivers
1 March 2011
BMO Capital Markets 2011 Global Metals & Mining Conference
Greater Depths of Mining
1 March 2011
Trends in Mining ~ to 2013
1 March 2011
Trends in Mining ~ after 2013
1 March 2011
Why Caving?
Use of gravity to break the rock (instead of explosives), thus low operating cost compared with other underground methods High production rates can be achieved allowing economies of scale Allows high degree of mechanization Safe However High initial capital costs Conceptually simple let gravity do the work - but technically very challenging Requires large design effort; high quality construction; and rigorously managed operations
1 March 2011 BMO Capital Markets 2011 Global Metals & Mining Conference 6
Cave Mining ~ When is it Applicable?

Orebodies with a substantial vertical dimension; massive or pipe like Rock strength not a limitation but need sufficient orebody dimensions Primarily used in copper mining but also molybdenum and diamonds,
1 March 2011
Evolution of daily production rates

New generation Caves; under construction
160000
Palabora Henderson Homestake - S Dakota
140000
1000m
Magma
Western Deeps
Kidd Creek
TONNES PER DAY
120000 100000 80000 60000 40000 20000 0 1880
Open pits
2000m
Super caves
3000m
4000m
San Manuel Climax Kiruna Malmberget Premier Kidd Creek Salvador Henderson Andina
Conventional underground
Olympic Dam Palabora Freeport IOZ/DOZ Ridgeway
Miami Mount Isa
1900
1920
1940
1960
1980
2000
2020
2040
YEAR
1 March 2011 BMO Capital Markets 2011 Global Metals & Mining Conference
(after Brown 2004a)

8
Modernisation of an Old Method
LHD Grizzley Block Block Cave Cave

With Increasing Production comes need for Size

Questa Perseverance Parkes Premier San Manuel Palabora
DOZ
Henderson
Oyu Tolgoi
Resolution
Waste Unexploited resource Caved waste Exploited resource
Note: size is for illustrative purpose only and has been sourced from published information
BMO Capital Markets 2011 Global Metals & Mining Conference 10
1 March 2011
Major block and panel cave mines
1 March 2011
Rio Tinto Planned Currently operating Closed mines BMO Capital Markets 2011 Global Metals & Mining Conference
11
Rio Tinto a leader in cave mining

Involved in 5 block caves in operation or development Applying experience from operating mines to developing next generation block cave mines Advancing technology and innovation in block cave mining Building an Underground Technology Centre to ensure objectives are met, particularly with regard to people
Agenda
1 March 2011
13
Where Does Caving fit in the Spectrum of Underground?
Method Resuing Cut and Fill Shrinkage Room and Pillar Open Stoping Sub-level Caving Block Caving
1 March 2011
T / Manshift 0.2 - 0.5 12 - 48 20 - 28 15 - 150 20 - 115 65 - 180 300 - 2000
Avg. T / Day 50 - 100+ 500 1,500 200 - 800 1,500 10,000 1,500 25,000 1,500 50,000 10,000 100,000
Relative Operating Cost per tonne 70+ 20 to 70 20 to 50 7 to 20 7 to 25 7 to 17 1 to 2.5

Underground mining methods modified from Brown, 2003
14
Five Key Components of a Cave Mine

Orebody access Undercut Level Shafts Tunnels Extraction Level Undercutting The level where caving is initiated Extraction Ore flow Sizing and transfer of ore to surface
Haulage Level Infrastructure Exhaust Level Vent Raise Ore Pass
Orebody
Where ore is removed from the broken rock
Support systems, ventilation, power, water, supplies, men

Block Cave Concept

Plant Crushed Ore
Shaft Ore body
Draw bells
Production tunnels
Haulage system
1 March 2011
16
Caving Process
20
Progressive spalling
Block cave mining is based on the principle that, once a sufficiently large area of a block has been undercut by drilling and blasting, the overlying block of ore will start to cave under the influence of gravity. The process will continue until caving propagates through the entire block to surface or to the open pit above
25
35
45
1. Develop undercut level 2. Develop production tunnels

1 March 2011
3. Drill and blast undercut rings 4. Open troughs

17
What are we trying to achieve?
Caved Ground
Undercut
Extraction LHD Loading

Block Caving Concept

VALUE REALIZATION CAPITAL INVESTMENT
100%
$
CAVEDYNAMICS SOURCESOF UNCERTAINTY
Vyazmensky 2007
TIME CAVEMANAGEMENT
Section Through Cave
1 March 2011
20
Key Technical Issues
cave propagation cave flow
1 March 2011
cave fragmentation
21
Critical dimensions to initiate caving
1 March 2011
22
Geometry of drawbells
DRAWBELLS
1 March 2011
23
Fragmentation: the key to a successful operation
1 March 2011
24
Impacts of Fragmentation
IMPLICATIONS ON RESOURCE RECOVERY
PRODUCTIVITY
SECONDARY BLASTING
VALUE AT RISK
Caving the block

Index of Interruptions Frequency (Salvador mine, draw point 04W20)
Primary Fragmentation
Secondary fragmentation
HoD
Initialsecondary fragmentation Blastingeffect

Blastedundercutmaterial
FlowInterruptionIndex (events/tonsx1000)
Secondary Fragmentation
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26
Rock Structure and fragmentation
1 March 2011
27
Fragmentation is complex: risks!!!

zone of loosening
Primary fragmentation
expansion void
Secondary fragmentation
f(fragment size)
fragment size evolution with draw
Fine material
higher mobility of finer fragments within a draw column
Coarse material
IDZ
1 March 2011
28
Cave Flow
Zone of Loosening
(blocks that were displaced vertically at least once)
Waste
waste Entry ore
waste
waste
ore
ore
ore
IDZ ~ Ellipsoid of Motion

(extracted blocks)
HoD
Flow dictates Revenue Stream
WASTE ROCK
CAVED ORE UNCAVED ORE
WASTE ENTRY
cylindrical IEZ
EXTRACTED ORE
elliptical or frustum shaped IEZ; height equivalent to~100-200 mean fragment size
RILLING and MASS FLOW

1 March 2011
PREDOMINATLY MASS FLOW

30
What do we draw?- the recovery issue

Highgradeore Dilutionentry
ORE BODY
$
WASTE ROCK
WASTE ROCK
Vyazmensky Vyazmensky 2008 2008
TIME
REPEAT
What do we draw?- the recovery issue

Highgradeore Dilutionentry
ORE BODY
$
WASTE ROCK
WASTE ROCK
Vyazmensky Vyazmensky 2008 2008
TIME
1 March 2011
32
Undercutting
UNCAVED ORE
Rings to be blasted
CAVED ORE
Blasted undercut rings
1 March 2011
33
Purpose of the Extraction Level
ALLOW DEVELOPMENT OF DRAWBELLS
ACCESS TO ORE ABOVE
1 March 2011
34
Light at the End of the Tunnel
A video of some of the concepts outlined can be found http://www.argylediamonds.com.au/video_block_cave.html

Agenda
1 March 2011
36
Cant define risk - Cant define value

Block caving is not for marginal projects Complete knowledge of the future is an impossibility The question then becomes how representative is the information we have on hand? This information is used to develop a robust enough plan to cater for the inherent uncertainty. Uncertainty translates to risk (Flexibility costs money)
1 March 2011
37
Differences in Knowledge therefore differences in Uncertainty
Initiation point close to surface Substantial information No geotechnical constraints Ore drilled and typically sampled as part of mining process detailed knowledge for short term planning Initiation point remote from surface Limited information Substantial geotechnical constraints
Limited knowledge of ore- sampling after the fact
1 March 2011
38
Scale
1 March 2011
39
Access and Extraction Complexity

DOZ Mine Freeport, Indonesia
GBT Area I & II
Escondida, Chile
IOZ
DOZ
Courtesy of PTFI
Control
OPENPITMINING CAVEMINING
uncertainty
reducedknowledge wellestablishedmethod goodcontrol morecertainty

BETTERTECHNOLOGYISAKEYTO BETTERVALUE
limitedcontrol
Risk
Characterisation the resource; understanding the size of the prize Design resource to reserve; time for imagination Construction the big spend and first taste of reality Operation recovery and payback
Paper (Design) Value vs. Actual Value
1,5 m
CONCRETE DAMAGE
CONCRETE DAMAGE
1 March 2011
42
Lesson learned at Palabora

Palabora successfully transitioned from an open pit to a 30,000 tpd underground block cave but. Surface subsidence
1 March 2011
Mine infrastructure
dilution of the ore reserve and subsequent reduction in life of mine

43
Agenda
1 March 2011
44
Ore grade and value
Value is a function of Run of Mine (ROM) grade which is an outcome of three interrelated factors
1. The resource grade; a measure of the metal that is in the ground 2. The reserve grade, a measure of the effectiveness of the design 3. The recovered grade, a measure of how the cave is managed and cave dynamics
1 March 2011
45
Indicative Costs
Capital
The capital and operating costs shown are relative and provide an indication of the spread. Both green field and brown field projects are included as are operations where access is via shaft or by decline. They were developed simply by normalising to lowest cost producers in terms of capital and operating cost.
Operating
1 March 2011
46
How Soon do you Get your Money Back?
1 March 2011
47
Realising Value
New generation of Cave Mines represent a step change in the size of operations require investment levels of $2 to 10 billion and require significant time to achieve operating targets
There are value drivers common to any mining project: 1. Costs (capital and operating) 2. Revenue 3. Time
Investment in technology and innovation to drive value

Cave dynamics Block caving is inflexible and value locked in at the design phase Important to understand cave behaviour and reliably forecast metal production (tons and grade)
Mine of the Future
Intelligent Mining Autonomous equipment Block cave operations well suited to concept of intelligent mining; real time information Operating efficiencies
1 March 2011
49
Investment in technology and innovation to drive value

Rapid development Tunnelling concepts that are more productive and cost effective than traditional methods Integrated shaft boring machinery with the potential to dramatically improve safety while reducing construction time Optimised design and management Building on ability to predict cave behaviour Improved planning techniques and software to improve grade sequencing
1 March 2011
50
The Vision an Ore Factory

Required Fragmentator
In Situ Fragment Size Crushing and Grinding
Energy (Distance Traveled) Reliable Ore Flow Predictable Fragmentation (+ grade) Ore Transport and Sizing
The Factory The Ore Rock Factory
1 March 2011
51
Thank You
Allan Moss, General manager Rio Tinto Copper Projects

Introduction To Panel Caving

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An Introduction to Block and Panel Caving

Allan Moss, General manager Rio Tinto Copper Projects

BMO Capital Markets 2011 Global Metals & Mining Conference

Greater Depths of Mining

BMO Capital Markets 2011 Global Metals & Mining Conference

Trends in Mining ~ to 2013

BMO Capital Markets 2011 Global Metals & Mining Conference

Trends in Mining ~ after 2013

BMO Capital Markets 2011 Global Metals & Mining Conference

Cave Mining ~ When is it Applicable?

BMO Capital Markets 2011 Global Metals & Mining Conference

Evolution of daily production rates

TONNES PER DAY

120000 100000 80000 60000 40000 20000 0 1880

Olympic Dam Palabora Freeport IOZ/DOZ Ridgeway

Miami Mount Isa

(after Brown 2004a)

Modernisation of an Old Method

LHD Grizzley Block Block Cave Cave

With Increasing Production comes need for Size

Waste Unexploited resource Caved waste Exploited resource

Major block and panel cave mines

Rio Tinto a leader in cave mining

BMO Capital Markets 2011 Global Metals & Mining Conference

Where Does Caving fit in the Spectrum of Underground?

T / Manshift 0.2 - 0.5 12 - 48 20 - 28 15 - 150 20 - 115 65 - 180 300 - 2000

Relative Operating Cost per tonne 70+ 20 to 70 20 to 50 7 to 20 7 to 25 7 to 17 1 to 2.5

BMO Capital Markets 2011 Global Metals & Mining Conference

Five Key Components of a Cave Mine

Where ore is removed from the broken rock

Support systems, ventilation, power, water, supplies, men

Block Cave Concept

Shaft Ore body

BMO Capital Markets 2011 Global Metals & Mining Conference

1. Develop undercut level 2. Develop production tunnels

3. Drill and blast undercut rings 4. Open troughs

BMO Capital Markets 2011 Global Metals & Mining Conference

What are we trying to achieve?

Extraction LHD Loading

Block Caving Concept

Section Through Cave

BMO Capital Markets 2011 Global Metals & Mining Conference

Key Technical Issues

cave propagation cave flow

BMO Capital Markets 2011 Global Metals & Mining Conference

Critical dimensions to initiate caving

BMO Capital Markets 2011 Global Metals & Mining Conference

BMO Capital Markets 2011 Global Metals & Mining Conference

Fragmentation: the key to a successful operation

BMO Capital Markets 2011 Global Metals & Mining Conference

IMPLICATIONS ON RESOURCE RECOVERY

Caving the block

Initialsecondary fragmentation Blastingeffect

BMO Capital Markets 2011 Global Metals & Mining Conference

Rock Structure and fragmentation

BMO Capital Markets 2011 Global Metals & Mining Conference

Fragmentation is complex: risks!!!

fragment size evolution with draw

higher mobility of finer fragments within a draw column

BMO Capital Markets 2011 Global Metals & Mining Conference

waste Entry ore

IDZ ~ Ellipsoid of Motion