Mining Engineering team (ENSC3011 – Fundamentals of Mining Engineering students)

Memorandum
To: Mining Engineering team (ENSC3011 – Fundamentals of Mining Engineering students)
From: Adam Schwartzkopff, CEO, Possum Minerals
Date: Wednesday 24 August 2022
Re: Loading and Haulage Fleet Study
Dear Mining Engineering team,
As you are probably aware, Possum Minerals has recently discovered the Ringtail gold deposit
near Norseman WA and wishes to exploit it with an open pit operation for a mine life of 6 years.
A key issue towards the successful completion of this project will be the efficient and cost-effective
removal of waste rock. Your recommendations are needed as to the most appropriate fleet required
to meet the production target for waste removal, and an estimation of the costs involved.
SCOPE
We are considering a variety of mining scenarios, so each of you has a different set of
assumptions for required waste removal rate, ramp gradient and fuel cost (see page 5).
You might want to use some of the background information shown on page 3.
DELIVERABLES
You are required to write a short report with a concise explanation of your input parameters,
assumptions, methods and outcomes for all stages of work, it should be sufficient for someone else
to replicate your work. It must include an executive summary that provides an overview of the
important findings of your work.
Your report must include:
 A clear statement of number and model(s) of Loaders you recommend using. Explain your
decisions. Please note that due to a corporate arrangement, we can only select from a list of
Caterpillar shovels shown on page 3. Use
https://www.cat.com/en_AU/products/new/equipment/hydraulic-mining-shovels.html for
specifications, and page 3 in this Memo for costs. LMS has a copy of the Caterpillar
Handbook, which might be useful.
 A clear statement of number and model(s) of Trucks you recommend using. Explain your
decisions. Please note that due to a corporate arrangement, we can only select from the
Komatsu trucks listed on page 3. Use https://www.komatsu.com.au/equipment/dump-trucks
for specifications, and page 3 in this Memo for costs. LMS has copies of the Komatsu
Handbook (although a little old) and the Caterpillar Handbook, which might be useful.
 A graph of loading costs ($/year and $/t) and hauling costs ($/year and $/t) for years 1 to 6 of
the project, given the schedule for pit depth (see page 3) and your individual production rate
(see page 5)
Page 2 of 8 ENSC3011 – Fundamentals of Mining Engineering – Assignment (2022)
 Decisions have yet to be made on the roster and salaries offered to the equipment operators.
Your initial calculations should be for a base case scenario of an average salary of $100,000 per
year and a roster of “8 and 6”. You should show the sensitivity of your results to reasonable
variations in those two base case assumptions.
All the parameters you need to perform the calculations must be clearly listed with a justification.
This justification will typically be the relevant page from the source, and a copy of this must be
included in an Appendix. In other words, you must have an appendix to the report, with a page
from the relevant specifications (or lecture notes or other source) supporting every one of your
decisions. For example:
Parameter Value Justification
Truck Tray capacity 226t Komatsu specifications (see Appendix 3)
Sometimes you will be able to obtain the required parameter simply enough, other times you might
have to do a bit more research and/or make an informed estimation.
Please note you should not simply submit printouts of Excel spreadsheets, where I must backcalculate how you got your answers. Your calculations must be explained clearly in your report.
No software, other than Microsoft Office programs (e.g. Word and Excel) is to be used.
You are required to submit your report in softcopy format via LMS by 5:00 pm on Friday 23
September 2022 (Perth time). Of course, there is nothing stopping you from delivering your work
earlier if it suits your personal schedule better. Only softcopies via LMS will be accepted.
Do not throw away marks by submitting your work late. Marks will be deducted at the rate of 5%
of the assignment value for each day (or part day) late. In other words, if you are 5 minutes late,
you lose 5%.
Proof read your work. Submissions with poor spelling, grammar, structure, and/or presentation will
receive a poor mark. Ensure you clearly present the deliverables listed above.
This assignment represents 30% of your overall unit mark, so it merits a significant amount of
effort!
I am available for questions, but not for people who do not bother to attempt to find an answer for
themselves before contacting me!
Good luck,
Adam Schwartzkopff
CEO
Possum Minerals
Page 3 of 8 ENSC3011 – Fundamentals of Mining Engineering – Assignment (2022)
DATA SHEET
 Average annual rainfall = 300mm
 Minimum/Maximum average temperature = 5 o/33o
in July/January
 The blasting is expected to produce good fragmentation and a swell factor of 20%
 The operation will generally have average work conditions
 Design Powder factor = 0.80kg/m3
 The haul road will be well maintained and watered daily to reduce dust.
 The waste rock is generally granite, with a uniaxial compressive strength (UCS) of
140MPa
 Assume there is an average flat travel distance of 100 m on the pit floor, and another flat
haul of 300 m at the top of the pit, before a 100 m (at 1 in 10) uphill sector to get to the
waste dumping point, i.e.:
Planned Schedule for Pit Floor Depth
Year 1 2 3 4 5 6
Average Pit Depth (m) 40 100 130 170 200 220
Loader
Dump 300 m flat
100 m flat
Pit Floor Depth
(see table below)
Page 4 of 8 ENSC3011 – Fundamentals of Mining Engineering – Assignment (2022)
EQUIPMENT COSTS TO USE
(all $ are Australian Dollars)
Manufacturer Model
Purchase Cost (including
delivery, insurance and all
taxes)
but excluding tyres
Total cost for maintenance
(including parts, GET,
lubrication and maintenance
labour)
per operating hour
Caterpillar 6020B $ 3,000,000 $ 110
Caterpillar 6030 $ 4,500,000 $ 145
Caterpillar 6040FS $ 7,000,000 $ 175
Caterpillar 6050FS $ 9,500,000 $ 205
Caterpillar 6060 $ 12,000,000 $ 245
Caterpillar 6090FS $ 16,000,000 $ 290

Komatsu HM300-5 $ 1,500,000 $ 80
Komatsu HM400-5 $ 2,000,000 $ 120
Komatsu HD405-8 $ 2,500,000 $ 140
Komatsu HD605-8 $ 3,000,000 $ 170
Komatsu HD785-7 $ 3,750,000 $ 180
Komatsu HD1500-8 $ 4,500,000 $ 210
Komatsu 730E-8 $ 6,000,000 $ 270
Komatsu 830E-5 $ 7,000,000 $ 310
Komatsu 930E-4SE $ 8,000,000 $ 340
Komatsu 930E-5 $ 10,000,000 $ 360
Komatsu 980E-4 $ 12,500,000 $ 395

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