{"id":8080,"date":"2024-08-13T13:27:13","date_gmt":"2024-08-13T13:27:13","guid":{"rendered":"https:\/\/northamericanmining.com\/?p=8080"},"modified":"2024-08-13T13:31:24","modified_gmt":"2024-08-13T13:31:24","slug":"the-path-to-improvement","status":"publish","type":"post","link":"https:\/\/northamericanmining.com\/index.php\/2024\/08\/13\/the-path-to-improvement\/","title":{"rendered":"The Path to Improvement"},"content":{"rendered":"\n

In the daily dash to hit production targets, mines can often overlook the value of reconciliation. Yet when done well and integrated into day-to-day operations, this technically challenging task will highlight key opportunities to deliver operating, financial, and sustainability improvements. North American Mining took a deep dive into this critical topic, guided by a group of the world\u2019s leading experts.<\/em><\/strong><\/p>\n\n\n\n

By Jonathan Rowland<\/em><\/p>\n\n\n

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Accurate reconciliation is critical to deliver efficient and profitable mining operations over the life of a mine. Pictured: laser scanners, such as this from Maptek, can provide various data for reconciliation, including wall conformance, pit face updates, drill floor topographies, ROM stockpile measurements, and end-of-month runs.<\/em><\/figcaption><\/figure>\n\n\n

Mining reconciliation involves identifying, analyzing, and managing variation between predicted ore quantities and grades, as provided in resource\/reserve models and ore grade control information, and the measured production, usually from a processing or treatment plant. The aim is to \u201chighlight opportunities to improve a mine or a company\u2019s performance,\u201d Craig Morley, executive consultant and expert in mine geology and reconciliation at Snowden Optiro, an independent mining and geology advisory and training business within the Datamine Software Group, told North American Mining<\/em>.<\/p>\n\n\n\n

It is a multi-disciplinary process, with \u201cdata sourced across departments, including geology, mining engineering, operations, and metallurgy, to deliver benefits throughout the mining value chain,\u201d continued Morley. \u201cRecently the addition of other data has enhanced reconciliation. For example, the inclusion of geometallurgical data into models has gained focus in planning, and also for reconciliation, as it is important to ensure the accuracy of assumptions on rock characteristics, as they appear in mine plans, and to measure the impact on plant throughput and recovery, if those plans are to achieve their goals.\u201d<\/p>\n\n\n\n

\u201cWe typically split reconciliation into two categories,\u201d added Nathan Flesher, a partner and mining practice leader at McKinsey. \u201cGeological reconciliation is concerned with \u2018Did we extract what we expected?\u2019 and compares the volumes, grades, qualities, and spatial compliance of the geological model to the actual extracted values. Operational reconciliation is concerned with \u2018Did we hit the rates we anticipated in the places we planned?\u2019 and compares the operating parameters (e.g., OEE, spatial compliance) used in building a mine plan to actual performance. The outputs indicate how efficient or inefficient the planning and production processes are. Mines can use this information to continually refine and improve performance.\u201d<\/p>\n\n\n\n

Another facet of reconciliation is expectation management, of both company management, and of shareholders and potential investors, noted Ian Glacken, executive consultant with Snowden Optiro\u2019s geology advisory services. \u201cVarious predictions inherent in the mine value chain are in the public domain. For example, reporting codes ask companies to disclose their resource and ore reserve reconciliations on an annual basis. Mining companies must also clearly report their fiscal mining and metal recovery performance by deposit; they need a reconciliation process to verify and validate this information.\u201d<\/p>\n\n\n

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Accurate reconciliation lies in the ability to track plan vs. actual performance in near real time. Pictured: SourceOne EKPS from Eclipse Mining Technologies helps identify issues as soon as information is ingested.<\/em><\/figcaption><\/figure>\n\n\n

Hugely important
<\/strong>The importance of reconciliation to mining operations and businesses derives from the fact that \u201cmining operations \u2013 and the investments that enable them \u2013 are largely based on assumptions,\u201d explained Peter Johnson, chair of mining software company, Maptek. \u201cThese include assumptions about orebody quality, size, and shape; about the structure and geotechnical characteristics of the rock; about economic conditions in the future; about equipment performance and any number of other variables that cannot be locked in when the decision to mine is made. That decision is based on the best possible plan at the time, bearing in mind all those assumptions, which means it is not perfect.\u201d<\/p>\n\n\n\n

\u201cAssumptions are notorious for causing problems,\u201d Johnson continued. \u201cMining operations rarely run exactly to plan, usually due to variation from the assumed data used in the mine plan. Accurate reconciliation is an effective way to measure and understand this variation and to identify its sources and probable causes. Mines can then adjust assumptions during the planning cycle for more accurate mine planning in the future.\u201d<\/p>\n\n\n\n

Accurate reconciliation is \u201chugely important,\u201d agreed McKinsey\u2019s Flesher. \u201cIt is a fundamental requirement for a well-functioning mine, enabling companies to develop effective production plans and budgets and to provide accurate production guidance to shareholders. If this is unreliable, credibility suffers, which can impact the allocation of resources, such as equipment and capital. Poor reconciliation, leading to subpar performance, also drives destructive short-term operational behaviors to catch up production, such as high-grading or mining out of sequence.\u201d<\/p>\n\n\n\n

\u201cMetal and value loss, linked to poor operational planning and execution, highlighted by reconciliation, remains a widespread problem across the mineral sector,\u201d added Snowden Optiro\u2019s Glacken. \u201cWith an ever-increasing drive for cost reduction and\/or mine optimization, there is growing industry acceptance that the greatest untapped potential for profit improvement lies with enhanced mine-to-mill planning, execution, and reconciliation.\u201d<\/p>\n\n\n

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Datamine\u2019s Reconcilor software features a continuum screen, providing an overview of the entire mining process, from resource to shipped product. It allows easy identification of metal losses and where they are occurring. Reconcilor also supports user-defined reconciliation comparisons with the ability to switch easily between multiple configurations.<\/em><\/figcaption><\/figure>\n\n\n

Reconciliation gone wrong
<\/strong>For all its importance, reconciliation is a complex process that can easily go wrong. And even when done right, mining companies may not put the lessons learned to effective use. \u201cGeologists, engineers, and metallurgists often face contradictory information while attempting to balance metal, independently or collectively, for virtually all selected time intervals, from weekly to annually,\u201d Glacken continued. \u201cA process that is meant to quantify and resolve differences between resource and reserve depletion, together with mill production, is often opaque at the mine site level.\u201d<\/p>\n\n\n\n

\u201cThe most common poor practices are lack of transparency in how the data is collected, how the calculations are done and, most importantly, how the results are communicated and used to drive change,\u201d agreed Patrick McCann, senior expert with McKinsey\u2019s mining business. \u201cOrganizations often use reconciliation to justify why they missed the plan, but then they move on and continue to make deficient plans instead of updating their processes, assumptions, and execution to drive continuous improvement.\u201d<\/p>\n\n\n\n

\u201cIt is also common for Resource and Reserve estimates to be completed by a team remote from the mine,\u201d added Snowden Optiro\u2019s Morley, \u201cwhile a completely different team is responsible for the short-term mine plan, which is built on updated data and geological models informed by mining.\u201d<\/p>\n\n\n\n

Reconciliation between these plans may be \u201croutinely carried out, but no actions taken,\u201d Morley continued. \u201cWhen it comes to execution, the mining team often only focuses on a ton target, rather than delivering a quality feed to the processing plant. This impacts throughput and recovery, leading to off-spec product. Reconciliation will quantify these issues in a report, but often companies will still pay bonuses for hitting targeted tons moved. There is thus no incentive to learn from reconciliation, even as targets are missed, and value lost.\u201d<\/p>\n\n\n

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Specialist software solutions support accurate and timely<\/em>
reconciliation that improves mining operations.<\/em><\/figcaption><\/figure>\n\n\n

Thinking spatially
<\/strong>Beyond this disconnect between technical and operational processes, one must also remember that \u201cmining is a spatial industry,\u201d as Maptek\u2019s Johnson pointed out. \u201cThe shape, volume, size, and location of all activities onsite are critical to execution of the business model. The inability to locate and measure tasks spatially, in an accurate and timely manner, is thus a key source of poor reconciliation outcomes.\u201d<\/p>\n\n\n\n

Examples here might include blasting practices that do not accurately measure the shape of the blast bench, locate drilling and charging tasks, or record post blast shapes. Another common source of error is incorrect dumping locations (waste to ore stockpiles, or ore to waste dumps). \u201cFleet management does not solve this problem, as there is no spatial awareness of the mine plan, and no real-time solution to identifying and tracking deviation from plan,\u201d added Johnson.<\/p>\n\n\n\n

There is also the issue of when reconciliation takes place. \u201cAll mines undertake reconciliation,\u201d explained Rudy Moctezuma, chief business relations officer at Eclipse Mining Technologies. \u201cThe problem is they do it after the fact, and not when these issues are happening. Ideally, mines would capture technical data in near real time, as the earlier you have the information \u2013 and the more information you have identifying the issue \u2013 the sooner you can make decisions, and the better those decisions will be. Too many mines use reports that provide information after mining has occurred, after the shift, by which time it is too late.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

Embracing digitalization and automation
<\/strong>\u201cFor those involved in mining reconciliation, it is well-known that spreadsheets are ubiquitous and deeply ingrained in mining operations worldwide,\u201d noted Rayleen Hargreaves, principal consultant, and product owner of Datamine Software Group\u2019s Reconcilor software. \u201cSpreadsheets have a proven, albeit sometimes debated, value in reconciliation processes. However, mismanagement of spreadsheets, whether accidental or intentional, can have potentially disastrous consequences on an operation. Over the past two decades, advancements in information technology have heightened awareness of these issues, prompting operations to seek automation in data management. This shift aims to mitigate risks and prevent errors that could lead to poor decision-making.\u201d<\/p>\n\n\n\n

Specialist digital and software provide the tools for accurate data management (reducing the risk of human error); they also enable real-time monitoring and provide actionable intelligence for faster and better operational decision-making, leading to improved regulatory compliance, cost efficiency, and sustainable mining practices. Key features of these solutions include:<\/p>\n\n\n\n

    \n
  • Automated data capture, integration, validation, and analysis:<\/li>\n\n\n\n
  • Integrating data from various sources (geological models, mine planning, production records).<\/li>\n\n\n\n
  • Rigorous data validation and quality control to ensure data accuracy and consistency.<\/li>\n\n\n\n
  • Data visualization and analytics (including AI) to gain actionable insights and identify trends<\/li>\n\n\n\n
  • Standardized workflows and procedures for reconciliation activities across all mine sites, clearly defining roles, responsibilities, and timelines for each step.<\/li>\n\n\n\n
  • Regular, comprehensive, and timely reporting to identify discrepancies and anomalies, and provide insights into production volumes, grades, inventory balances.<\/li>\n\n\n\n
  • Enhanced decision-making supported by access to accurate and up-to-date information, regular reviews, and audits to identify areas for improvement, and continuous learning, training, and upskilling to enhance reconciliation expertise.<\/li>\n\n\n\n
  • Transparency of the data and calculations used, and repeatability of the reported results.<\/li>\n<\/ul>\n\n\n\n

    With the development of such integrated digital tools and centralized data platforms, \u201cmine plan reconciliation has the potential to become less of a distinct event and more of a continuous process, shortening the cycle between the emergence of deviations to the mine plan and their correction,\u201d concluded Karilyn Farmer, practice expert at McKinsey.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Other benefits of enhanced reconciliation
    <\/strong>The ability to identify and react to challenges more quickly also helps mining operations adapt to \u201cincreasingly complex mining methods and safety issues, as well as higher production costs, due to declining and more complex ore grades,\u201d said Eclipse Mining\u2019s Moctezuma. \u201cThis requires solutions that go beyond centralizing data to create relationships between the original data and the new data, allowing the system to \u2018understand\u2019, as you mine, when parameters are changing from the original plan and that, as they do, it may affect areas such as blasting and processing.\u201d<\/p>\n\n\n\n

    A \u201csuperior mine reconciliation approach can also support the sustainability of mining operations,\u201d added Farmer. \u201cThe mine planning, execution, and reconciliation cycle can help ensure that the mine is minimizing emissions and efficiently using inputs such as water and fuel. It can also help to identify further sustainability opportunities that may require alternative approaches to mining or implementation of innovative technologies.\u201d<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Failure to reconcile; reconcile to failure
    <\/strong>For all the benefits, adapting to new ways of working is always a challenge in an industry still so wedded to its spreadsheets. Communication again is an issue here. \u201cWith mines still working in siloed departments, the communication required to integrate data across the mine value chain can be problematic,\u201d said Datamine\u2019s Hargreaves. \u201cTypically, this silo mentality is at its most pronounced between the mine and the processing sections, and it is often (but not always!) a challenge to break down.\u201d<\/p>\n\n\n\n

    And then there is cost, as Snowden Optiro\u2019s Morley noted. Cost is always problematic when trying to change processes or bring new software onto a site. But \u201cas geologists and specialists in reconciliation, we need improve our ability to identify value added and report the dollars that reconciliation adds to an operation. This justifies the work and the spend and enables continuous improvement.\u201d<\/p>\n\n\n\n

    \u201cIt is much easier to reconcile on a short-term basis \u2013 number of truck trips for ore, number for waste, tons, grade, recovery,\u201d concluded Maptek\u2019s Peter Johnson. \u201cMonth by month, mines can manage these numbers to achieve short-term goals; however, in the longer term, these decisions may not be correct. Reconciling against longer-term goals and plans is thus also important. Practices such as high grading, short hauling, or stockpile raiding to meet short-term targets can sterilize an orebody, or seriously impact the likelihood of meeting future targets. Reconciliation against a range of time periods allows engineers to avoid such mistakes and make decisions that balance near term objectives with the longer-term viability of the mine business.\u201d<\/p>\n\n\n\n

    \u201cUltimately, mines operate over many years, while being expected to be profitable for the entire mine life,\u201d said Johnson. \u201cMines that close before the planned end of life have usually failed at some point to reconcile variations between the mine plan and the actual performance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

    In the daily dash to hit production targets, mines can often overlook the value of reconciliation. Yet when done well and integrated into day-to-day operations, this technically challenging task will highlight key opportunities to deliver operating, financial, and sustainability improvements. North American Mining took a deep dive into this critical topic, guided by a group of the world\u2019s leading experts.…<\/p>\n","protected":false},"author":8,"featured_media":8081,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[3144,336,3145,3143,3146],"coauthors":[1635],"class_list":["post-8080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-datamine-software-group","tag-maptek","tag-mineral-sector","tag-mining-reconciliation","tag-ore-stockpiles"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t