2008 Oxford Business &Economics Conference Program ISBN : 978-0-9742114-7-3

THE ENTERPRISE SOLUTION TO INTEGRATING

BLASTING INTO THE MINING PROCESS
David P. Lilly, P.E., MBA, Dyno Consult, Pawleys Island, S.C., USA

Moe Dann, Lafarge North America, Oakville, ON, Canada

John Cory, Lafarge North America, Ottawa, ON, Canada

ABSTRACT

Previous papers have described the use of statistics to integrate blasting into the mining process to increase
productivity (“A Statistical Approach to Integrating Blasting into the Mining Process”, Oxford 2007; and
“Factors Driving Continuous Blasting Improvement at the Lafarge Ravena Plant, Nashville 2007”). Further
work was described in another paper developing the techniques to selectively produce high margin
aggregate sizes incorporating statistical principles and extensive databases (“Aggregate Size Optimisation
Program at the Lafarge Marblehead Plant” Perth, 2007).

This paper elaborates the process and indicates methods to maximize total enterprise returns starting from
basic explosive physical processes to final profitability analysis.

The authors have embarked on an ambitious information management project. The technique involves the
combination of blasting and mining databases with the further refinements of predictive product
forecasting, cost forecasting and profitability forecasting. The system will provide more workers with
access to high quality data that can help the move towards more analytics (the linking of various metrics to
drive business performance). Mine level processes and systems are being integrated with the processes and
systems of the extended enterprise so that operators and business managers alike have better, up-to-date
visibility not only in how well a mining process is operating in isolation but how well it is contributing
overall to profitability, return on assets, and production goals

INTRODUCTION

Previous papers described the use of statistics to integrate blasting into the mining process to increase
productivity (“A Statistical Approach to Integrating Blasting into the Mining Process”, Oxford 2007; and
“Factors Driving Continuous Blasting Improvement at the Lafarge Ravena Plant, Nashville 2007”).

Both papers utilized multivariable predictive control to combine the nonlinear process control inferentials
derived both from the blasting and mining processes. These papers dealt only with increasing mining
productivity and not cost or profitability although costs are closely tied to productivity.

Further work was described in another paper developing the techniques to selectively produce high margin
aggregate sizes incorporating statistical principles and extensive databases (“Aggregate Size Optimisation
Program at the Lafarge Marblehead Plant” Perth, 2007). This paper related selective aggregate size
production to the explosives parameters involved in productivity. Again this paper did not deal with the
costs or profitability of the analysis.

This paper elaborates the process and indicates methods to maximize total enterprise returns starting from
basic explosive physical processes to final profitability analysis. The paper also details ways that present
efforts are overcoming study limitations by the use of continuing visual data updates to all levels of the
enterprise. A future method of profitability analysis stemming from basic blasting and mining processes
will also be identified.

June 22-24, 2008 1

Oxford, UK
2008 Oxford Business &Economics Conference Program ISBN : 978-0-9742114-7-3

The authors have collaborated on more than 50 studies of individual mines .The studies have suggested
improvements for productivity and cost reduction. However, studies take a picture at a point in time and
things change frequently in mining operations. There is a strong need for continual involvement at all levels
of the organization to build a more analytical and intuitive feel for right course of action when decision
points arrive. The described process will provide a link with key performance indicators, cost response to
actions, and overall profitability measures.

THE PHYSICAL EXPLOSIVE AND MINING PARAMETERS - COST RELATIONSHIP

The earlier papers established the relationship between physical explosive parameters and mining
productivity. A complex nonlinear system with many inputs, some of which are hidden or counter –
intuitive is described in the earlier papers.

For example, the powder factor-productivity relationship is driven by the geology and the degree of
fragmentation of the rock. Too much explosive and over fragmentation creates fines slowing the crusher.
Too little explosive causes under fragmentation and creates boulders. In addition, fines normally are a low
margin or waste product in the process.

870
PRODUCTIVITY TONS/HOUR

R2 = 0.4088
820

770

720

670

620
1 1.5 2 2.5
POWDER FACTOR - TONS/LB EXPLOSIVE

The powder factor-productivity relationship has an inverse relationship when looking at costs as shown
below (1986 costs from an unidentified mine are reported for confidentiality). The relationship is
significant in that a variation in powder factor can easily alter production costs over $1.00 per ton. Other
explosive parameters can be significant also (drill hole diameter, explosive energy and velocity, pattern
geometry, etc.). The multivariable nonlinear regression techniques detailed in the previous papers can be
used to identify the mining and explosive variables and equations that describe the cost relationship.

$5.50
$5.00
TOTAL COST $/TON

$4.50
$4.00

$3.50
$3.00

$2.50
R2 = 0.5665
$2.00
1 1.5 2 2.5
POWDER FACTOR - TONS/LB EXPLOSIVE

June 22-24, 2008 2

Oxford, UK
 2008 Oxford Business &Economics Conference Program ISBN : 978-0-9742114-7-3

VISUAL REPORTING AND CONTROL

While these techniques have been successful in specific studies to reduce cost and increase productivity,
continuity is lost with time and changes to mining techniques or explosive parameters that can invalidate
the results. Most mines now have monthly meetings with all levels of mining personnel (operators,
management, etc.) along with explosive suppliers. These are the chief decision makers closest to the results
and information needs to be available on a regular basis. In addition, decision parameters should be
discussed to provide for decisions made when data is not available. The following is a sampling of
information that is being made available to all levels of the organization to drive value decisions.

Below is a series of graphs that highlight the relationship between blasting decisions and cost. Cost is
expressed as a percentage of the previous years cost to hide actual values since the explosive supplier is
normally an outside vendor. The costs come from the combining of explosives and mining databases.
Comparable graphs are provided to illustrate the mining parameter – cost relationships.
DRILLING AND BLAS TING COS T

0.65

VARIABLE COS T P E R TON

0.60 220%

(% P RE VIOUS YE AR)
0.55
P E R TON ($)

0.50 170%

0.45
120%
0.40
0.35 70%
0.30 R2 = 0.7552 R2 = 0.5159
0.25 20%
0.80 1.00 1.20 1.40 1.60 1.80 2.00 30000 80000 130000 180000

POWDER FACTOR - TONS/LB MONTHLY TONS PRODUCED

0.65 220%
DRILLING AND BLASTING

200%
0.60
VARIABLE COST/TON
(% PREVIOUS YEAR)
COST PER TON ($)

180%
0.55 160%
0.50 140%
120%
0.45 100%
0.40 80%
60%
0.35
R2 = 0.4571 40% R2 = 0.4637
0.30 20%
40.00 45.00 50.00 55.00 60.00 65.00 0.80 1.00 1.20 1.40 1.60 1.80 2.00
AVERAGE BENCH HEIGHT - FT POWDER FACTOR - TONS/LB

Additionally, the relationship with other key performance indicator metrics can be visualized as shown
below. There is no limit to the relationships than can be displayed and reports can be tailored for site-
specific requests of relationships of interest.

44 100%
TONS PER MANHOUR

42
PRO DUCTIVITY INDEX %

95%

40 90%

38 85%
36 80%
34 75%
32
70%
R2 = 0.542 R2 = 0.2362
30
June 22-24, 2008 3 65%
1.5 1.6 1.7 1.8 1.9 2 33 34 35 36 37 38 39 40
Oxford, UK
POWDER FACTOR - TONS/LB BENCH HEIGHT - FEET
2008 Oxford Business &Economics Conference Program ISBN : 978-0-9742114-7-3

It is hoped to create a culture of continuous improvement where each team can consider multiple
conflicting objectives. Multivariable predictive control analysis as described in “A Statistical Approach to
Integrating Blasting into the Mining Process” can be used to refine analysis and provide proximate rules for
decisions in times between data analysis.

FUTURE REFINEMENT

The inclusion of profitability analysis based upon explosives parameters or even possibly geologic
parameters is possible. The chart below shows the evolution of the control process and future development
for one explosive parameter, powder factor. Powder factor, expressed in tons of rock blasted per pound of
explosive, is a significant indicator of expected blasting performance. Other mining and explosive
parameters can be included in the analysis also.

5.5

4.5
$/TON

Poly. (COST)
Poly. (REVENUE)
4

3.5
MARGIN

A B C
3
1.4 1.6 1.8 2 2.2 2.4 2.6
POWDER FACTOR - TON/LB

Point A is the typical powder factor used in many mines. It blasts and fragments the rock too small and
creates fines. The results appear excellent and digging rates increase. However crusher productivity may
suffer from too many fines and unless data is reviewed periodically the more optimum higher powder
factors will not be used.

Point B is the powder factor for least cost mining and relates to the highest crusher productivity. The
optimum fragmentation between fines and boulders is achieved to maximize crusher throughput.

Point C is the powder factor creating the largest percentages of high margin products. Powder factors above
that point create too large blocks, slow the crusher significantly, and begin increasing costs.

It is hoped that this structured approach to problem solving will lead the way eventually into statistical
quality control measures such as lean manufacturing, 6 sigma, etc. The goals are to achieve consistency in
product production, reduce process and product costs, improve process control to maintain predictable and
stable processes, achieve process and product robustness, and streamline process flow to reduce
complexity, decrease downtime, shorten cycle time, and reduce waste.

June 22-24, 2008 4

Oxford, UK
2008 Oxford Business &Economics Conference Program ISBN : 978-0-9742114-7-3

REFERENCES

Bremer, D., Ethier, R., and Lilly, D. (2007), Factors Driving Continuous Blasting Improvement at the
Lafarge Ravena Plant. International Society of Explosives Engineers – 33rd Annual Conference on Blasting
Technique.

Dann, M., Smith, C., and Lilly, D (2007), Aggregate Size Optimisation Program at the Lafarge Marblehead
Plant. 7th Large Open Pit Mining Conference, Perth, Australia.

Lilly, D. (2007). A Statistical Approach to Integrating Blasting into the Mining Process. Oxford Business
and Economic Conference, Oxford, UK, June 24-26, 2007.

Lilly, D. (1985). Applications of Computer Blasting Simulations in Vertical Retreat and Open Pit Mining.
University of Chile.

Lilly, D. (1988). Blasting and Crusher Productivity. Pit & Quarry Magazine.

Lilly, D. (1989). Blasting Related Crusher Productivity. Pit & Quarry Magazine.

Lilly, D. (1992). The Powder Factor: More is not Necessarily Better. Pit & Quarry Magazine.

Lilly, D. (1993), Neural Network Simulation: Charting the Future of Blast Process Control. Pit & Quarry
Magazine.

June 22-24, 2008 5

Oxford, UK