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ENGIN5505 Mine Planning and Scheduling Assignment Help and Solution - Federation University, Australia

Task - Design a suitable mining system in detail for the shallow part of the deposit. The student should include in their answer the following:

Select and justify a suitable mining system.

Design and optimise the annual production rate using NPV method.

Design and plan in detail mine excavation.

Plan the rehabilitation of the spoil pile or waste dump.

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Answer - MINE PLANNING AND OPTIMISATION USING NPV METHOD

Selection and justification of a suitable mining system:

As per deposit description, the mining system suitable for the shallow part of the deposit is described here, i.e., Strip Mining Process.

There are four methods of mining. They are - under ground mining, open surface (pit) mining, placer mining and in-situ mining. The method that we select for mining depends on the mineral resource type that has to be mined and the location - whether it is on the surface or below the surface.

We also have to consider if the mineral resource is good enough in generating money at least which is used in its extraction. Every method of mining has different types of effects on the area surrounding the mined place.

For deeper and expensive deposits, underground mining is used. For shallow and cheaper deposits, surface mining is used. For mining valuable metals from water body sediments, placer mining is used. For uranium, in-situ mining is used.

In surface mining, the soil and the rock lying on the mineral's deposit are removed. No tunnels are dug in it [2]. There are 5 types of surface mining. The one we will use here for shallow depth is the strip mining. It is a type of mechanical excavation method. The overlying rock and soil is called the over burden.

In strip mining, we mine a seam of mineral. It is done by the removal of a long strip of overburden. It is mainly used to mine coal.

Strip mining is also of 2 types-Area Stripping and contour mining. We use area stripping here as it is a flat and large area. The over burden can be placed in excavation that is generated by the previous strip.

Surface mining has an impact on the topography, vegetation and water resources also. It is highly controversial. It can leave large areas of infertile waste rock. Almost 70% of the excavated material gets wasted.

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Mine Planning and Scheduling Assignment.png

In strip mining, the ore is located near to the land surface. On top of the ore, there are rock or filth layers. These can be removed using the technique of Strip mining. The steps involved in Strip mining are as follows:

1. Removal of trees and bushes using bulldozers.

2. Dump this waste, filth and sand to a nearby area.

3. Drill many small holes in the rock.

4. Put explosives in the holes due to which rocks break.

5. Break the mineral found using the blazing process.

It causes various harmful effects. It affects the area near to mine, rainwater may run over the area into water bodies and also may affect the vegetation. For regaining the land, the mining firms are made responsible to fix the land and make it as it was originally there.

Surface mining needs a big capital investment due to expensive transport costs but it gives good productivity, low cost of operation and also the working conditions are safe as compared to underground mining.

The heavy equipment like earthmover removes the overburden initially. Then we use big machines like dragline excavators to extract the product. After the removal of the product, the land reclamation is done so that its surface becomes safe for use in the future.

Design and optimisation of the annual production rate using NPV method:

Many mathematical optimization techniques are available to improve the economics of mining projects. There are algorithms for optimization purpose which are being designed from 1960s. But they were not implemented due to lower capacity of computer software and hardware [6]. Moreover, now the systems have developed tremendously and now we have the capacity to implement these optimization algorithms. These algorithms help in the overall improvement of the economics of a mining project.

Mining Simulation with optimization:

A simulation model represents a mine in which we can use any type of mining. We can enter various equipments until we obtain coal as a product. It can be run on the user defined data. The output data can be exported to the user in graphical and numerical form.

We use mining financial modelling for valuation purpose. We can analyse mining financial model using excel spreadsheet. Mining simulation softwares are also available for the purpose of optimisation.

Using the data from the model, the decision maker can understand how the mine is expected to perform. The attributes like grade, carbon content etc. can be changed and some changes can be made in machines also to improve the system. It can be tested using different scenarios and other input parameters. There are different optimization algorithms.

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We are using surface mining here. Surface mining has several benefits over the shaft mining. The site preparation cost is less. It causes less injuries to the labourers. The rate of resource recovery is high and the productivity of the worker is also high.

The various steps involved in surface mining are - Planning, site preparation, deposit opening, development of pit, production of ore, the land and environment reclamation, liquidation phase and post mining operations.

In strip mining or open cast mining, the flat deposits are mined out and the overburden is filled back into the worked out area. It causes least degradation of the land. Waste dumping is not needed. It has low cost and high productivity. There is a term called SR (Strip Ratio) which is the mass of the extra material to be mined to obtain a unit mass of the desired ore.

Net Present Value (NPV):

We assume a business or company and calculate its NPV. If NPV is positive, it is good to invest in the business. If it is negative, it is good to put the money in the bank at given interest rate.

We assume rate of interest as 5%.

We have assumed the values of the cash flow for various years.

YEAR

CASH FLOW

PRESENT VALUE

0

-350

-350

1

100

95.24

2

200

181.41

3

150

129.58

4

75

 61.70






SUM = 117.92



NPV = 117.92

The following formulae can be used in MS-Excel:

Present value = B3/(1+R)^A3

NPV = C3 + NPV (R,B4:B7)

For R=10%, NPV = 70.12. It gets reduced.

In this venture, The value of NPV obtained is positive. Hence, it is advisable to invest in the venture.

Mining Life Cycle:

The assets include:

1. Projects:

Exploration and Feasibility:

- Locate mineral anomalies

- Discovery and Sampling

- Resource definition, drilling programs

- Economic studies

Planning and Construction:

- Mine Planning

- Environmental and social issues

- Permitting

- Bankable economic studies

- Construction

- Infrastructure, pre-stripping

2. Mines

Production or Operations

- Ore extraction

- Crushing, grinding and concentrating

- Metal production

- Waste management

- Closure

- Site cleanup and reclamation

- Environmental monitoring

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In a Mining Lifecycle, the data collection has to be done in a systematic manner. At the data centre, mainly 4 steps are followed. They are: Data Validation, Actual data, Data analytics and reporting. The mining office gets this data Pre blast, during blast and post blast. The simulation software used also needs some data.

It includes the basic information, Fragmentation, Load haul dump operation, crusher data, QAQC (Quality Assurance Quality Control) and validation and quality control. Whenever a mining system is simulated, it goes through all these stages mentioned. All the data is fed in the software and then the final output is obtained by the user.

NPV Example:

Suppose in our mining project, we invest $900,000 today. Suppose that our project has a life of 4 years.

We are expecting cash flow at the end of each year as $200,000, $300,000, $300,000 and $400,000.how do you get these cash flow? You have to work out them.

The values are our expectations of the cash flow from the business.

Year 1: Payments Received - Amount spent = $200,000

Year 2: Payments Received - Amount spent = $300,000

Year 3: Payments Received - Amount spent = $300,000

Year 4: Payments Received - Amount spent = $400,000

We define the Net Present Value (NPV) as the net result obtained on the addition of present value (PV) of cash inflow to the present value (PV) of cash outflow.

Assume that R = 10%

PV0 = -900,000 $

PV1 = FV1/(1+R) n = 200,000/(1.1) 1 = $ 181818

PV2 = FV2/(1+R) n = 300,000/(1.1) 2 =$ 247934

PV3 = FV3/(1+R) n = 300,000/(1.1) 3 =$ 225394

PV4 = FV4/(1+R) n = 400,000/(1.1) 4 =$ 273205

Year

FV ($)

NPV ($)

0

-900,000


1

200,000

181818

2

300,000

247934

3

300,000

225394

4

400,000

273205

NPV = PV0+PV1+PV2+PV3+PV4 = $28351

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The NPV value is positive. Hence, the project is acceptable.

Multiple production rates are expected and NPV of them are calculated to decide the optimal production rate in this design project. 4/20

Assume that R = 20%

PV0 = -900,000 $

PV1 = FV1/(1+R) n = 200,000/(1.2) 1 = $ 166667

PV2 = FV2/(1+R) n = 300,000/(1.2) 2 =$ 208333

PV3 = FV3/(1+R) n = 300,000/(1.2) 3 =$ 173611

PV4 = FV4/(1+R) n = 400,000/(1.2) 4 =$ 192901

Information given

The delineated reserves, to date, total around 120 Mt of high quality coking coal. Overburden is a typical basin sedimentation stratigraphy, and all bedding is nearly parallel to the coal seam.

3.1 Stripping Ratio and Break Even Stripping Ratio

- General data of coal mine

Coal price = $74 (Online)

Mining recovery = 94% (Assume)

Milling recovery = 91% (Assume)

- Cost

Mining cost = $1.60/BCM (Assume)

Stripping cost = $2.30/BCM (Assume)

Milling cost = $2.10/ton (Assume)

- Trial and error method to find stripping ratio from a cross section following in figure and table (Assume the overall slope of high wall is 45o)

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Mine Planning and Scheduling Assignment1.png

Table 1 Show the number of volume each materials to find stripping ratio per 1 m3

Materials

Topsoil

Sand

Sandstone

Clay

Shale

Coal

Stripping Ratio

Density(g/cm3)

1.7

1.5

2.3

1.9

1.6

1.4

Volume (BCM)

817.65

3398.5

3419.5

1729.6

3152.5

1774.3

6

957.65

3999.5

6522.3

2303.3

3923

2085.8

7

1017.7

4758.5

10883

2827.9

4845

2516.1

8

1147.7

5348.5

15682

3360.6

5644

2889

9

1277.7

6058.5

21356

3893.3

6443

3261.8

10

Table 2 Show the weight of waste and coalby stripping ratio

Materials

Stripping Ratio

Topsoil

Sand

Sandstone

Clay

Shale

SUM of waste

Coal

SUM of coal

Density(g/cm3)

1.7

1.5

2.2

1.9

1.6

1.4

Weight of waste (tonnages)

6

1390

4628

6981

2943

4589

20299

1663

1663

7

1382

5588

13477

3976

5870

30292

2064

2064

8

1602

6658

22822

5082

7252

43417

2491

2491

9

1820

7568

32901

6041

8441

56771

2860

2860

10

2018

8468

44846

6990

9640

71961

3233

3233

Table 3 Show the number of amount by overall stripping ratio

Materials

Revenue of coal($)

Cost of coal($)

Cost of waste($)

Amount($)


Overall Stripping Ratio

6

101690

5922

44648

51720

7

126305

7319

66743

52643

8

152462

8815

95618

48430

9

175133

10112

124996

40426

10

197803

11409

158415

28380

Mine Planning and Scheduling Assignment2.png

The line graph shows the number of amount each overall stripping ratio from 6 to 10, that the overall stripping hasthe highest at 7. Thus, this coal mine can be usedoverall stripping ratio at 7 because the coal mine can be got a maximum amount at $52443.

- Break even stripping ratio (BESR)

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Design and plan in detailofmine excavation:

Cavities are created in earth's crust artificially by extracting the rocks or by excavations that are used for mineral deposits. There are shafts, cross cuts, horizontal and inclined excavations. Many methods are available for excavation in a mine [9].??? Explain about the methods?????

The methods are mechanical excavation: Open-pit mining, Terrace mining, Strip mining, Contour Strip mining, Auger mining, Glory Holing, Quarrying. In aqueous method, they are: Placer (Panning, Sluicing, Dredging, Hydraulic Mining) and Solution (Heap Leaching and In-situ leaching).

The method that we select depends on many factors like function, various mining, geological and hydrological conditions and also the level of excavation process mechanization. Mining excavation process involves the stages of drilling, blasting and evacuation. describe it??

Drilling is used in order to explore the area or to give a drainage option or to stabilize the slope of a place or to test the foundation. In mining, it can be used to place the explosives when needed.

Blasting is a process in which we fire a charge in a blast hole.

Evacuation is needed while planning. There may be a need for the evacuation of some areas which are residential in nature. Also any roads or rail lines or any power lines need to be taken care of.

Some of the various excavation methods are Caisson method, injection method, frozen-rock method etc. For these processes we make use of the loader and scrapper.

The horizontal as well as inclined mining excavations are carried out by drilling as well as by blasting. The driving technique and the equipment is selected based on the size of the cross section of the shaft which is dependent on the way the shaft has to work [10]. It also depends on the hardness as well as the firmness of the rock. If we use the drill and blast technique to load the rocks broken, we use loader and scraper. Why.

In case of soft rock, to cut horizontally or at an incline up to 35 degree, we use the driving machines. They break the rock and then load them into a car or on a conveyor. This method is much safe and has more efficiency as compared to the method which involves drilling and blasting operations. In this method, the rocks in the surrounding area are not blown up. In case of hard rock, the use of under ground chamber is preferred.

Blasting is an operation used in mining to break the rocks so that the over burden can be removed easily.

The equipment used in the overburden removal includes truck lines, trucking and shovels and excavators. In case of surface mining, we prefer the use of truck and shovel excavation system. These equipment have low cost and are easily available. They can also be easily resold. But the cost of fuel is high and also the maintenance cost is high. For shallow coal mines, working drag lines can also be used. They do not use the fuel but they make use of electrical energy and they move at low speeds. Their cost is also low. Their resale cost is also very low. Key block evacuation method is a type of drag line excavation method which can be used in this case?

What about stripping and mining operations?

There are Surface excavation, loading and casting units which include Scraper, dozer and ripper, wheel loader, backhoe, hydraulic excavator, dipper shovel, grab, dragline (for excavating, loading and digging), stripping shovel(for casting), bucket ladder excavator and bucket wheel excavator(for cutting and loading).

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What are the dimensions and slopes of pit and spoil?

We will use a slope of 45 degree and the thickness is 7 m and depth is 12 m.

These are expected. What you expect explain it please

Plan of the rehabilitation of the spoil pile or waste dump:

In early days, strip mining left the place damaged. So, an unproductive land was left out which was unsuitable for any use. Such areas need rehabilitation after the mining operations are done.

For ecological sustainability, mine rehabilitation and closure of mine wastes is done. The top soil has to be restored. The shape of the landform after mining has to be restored to the same physical and geographical design. In case of coal mining, there are erosion issues due to rains in water bodies , contouring and seeding and land reforming.

Rehabilitation also takes some % of total mining closure cost. The soil and water as well as the geological support is lost due to mining. After mining, degradation and loss of ecosystem structure, processes and functional services occurs.

After the mining is done, we find that we have degraded the natural structure of the place. This may lead to degradation of the land which is affected by the mining activities like biodiversity loss.

The topsoil gets affected due to the removal of trees and plants. There may be a pollution of the place due to the mining wastes. The whole system gets unbalanced and needs to be balanced again.

Rehabilitation process is an integrated approach to balance the complete ecosystem. It is the stabilisation of the biotic (like plants and animals) and abiotic structures, maintenance of various nature's cycles and energy flows like hydrological cycle, biogeochemical cycle etc. The site must not be left in a polluted state.

The major aims of rehabilitation process or closure are as follows:

- Safety for the human beings, animals and other creatures

- Physical and chemical stability of the place

- No pollution must be left due to the hazardous materials

- The natural ecosystem and its stability and sustainability of the place must be maintained

Various technologies and solutions can be used by industries to do so. They must be cost-effective, have low secondary risks involved and they must be able to adapt to the operations.

What is your rehab plan for this project?explain it in detail?

Our rehabilitation plan is to clear off all the waste material which is not biodegradable. The biodegradable material can be buried in the soil. Once the soil is in place, some trees can be grown so that the place becomes normal as earlier soon. It must aim at building the area fit for the purpose it was initially meant for.

The major focus would be on the reduction of the angle of the slope. This will reduce any kind of soil erosion in the future. Also, the landform must be regenerated. For example - If it was a grazing ground before the mining process began, then slowly it must be converted to the same grazing ground. The landform must not be disturbed.

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