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Making our reserves last longer
Published
7 years agoon
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admin
Modern mining practices can help us optimise consumption of scarce raw materials, says Bhanu Bhatnagar of Adani Cementation Ltd.
Scientific mining and optimal exploitation of limestone stands on four pillars viz., effective mine planning, optimisation of deposit with judicious blending of various grades, regular monitoring and effective improvements in mining operations. This ultimately results in to effective mineral conservation, enhanced life of deposits, sustainable mining operation and low cost of limestone production.
This article will cover the optimisation of deposit as a part of effective mine planning. To think of optimisation as "informed mine planning with maximising the geological resources safely throughout the life of mine operation" would not be amiss. We will elaborate on the steps involved in optimisation and the significant role IT plays in optimisation exercise.
There exist several state-of-the-art software solutions for optimisation of mineral resources, both available commercially and developed by companies in house. In the current scenario, IT-enabled services coupled with state-of-the-art mining software are used to monitor quarry operations and to take key decisions for regular operation of mining.
Introduction
The optimisation of deposit is essential for maximum utilisation of resources at lowered cost of mining production. Given the limited quantity of available raw material resources and increasing mining constraints, quality and cost competitive requirements become quite strict for cement making, making a good and well designed resource optimisation desirable.
Every deposit of limestone in India is not homogeneous in nature with varying quality in terms of CaO, SiO2, MgO, etc. content. This directly affects the cement making process, where a consistent quality of run-of-mine is required. Most deposits with variable quality contain both lower and higher range, needing a proper blend plan for proper utilisation. This has to be taken into account during the optimisation exercise of mine planning to prepare extraction plans with proper blending of all chemical constituents available in resource.
Benefits of effective optimisation
Following are the benefits at large for effective optimisation of resource available:
A basic requirement of optimisation for a limestone deposit is extensive knowledge of the deposit and its possible extraction plans. Lack of proper extraction plan can lead to various risks like complexity of deposit, variation in quality, resource sterilisation, proper benching, maintaining slopes, stripping ratios, etc.
Steps involved in effective optimisation in mine planning
Basic requirements of optimisation of resource in a deposit are as follows, which depends on stages of mining operations:
In both above cases, resource optimisation depends on site visits and analysis of factors affecting the optimisation planning of a mine, such as surface constraints (like wetland, transmission lines, private land, access etc.), overburden depths, limestone quality, hydrogeological constraints, relative cost ranking, geotechnical issues, etc.
1.Map (2D or 3D) with location of ramps, haul roads, benches, stockpiles, sumps, crusher, conveyors, etc. 2.Quality and quantity of production and final ROM parameters. 3.Phasing sequence of extraction of mineral 4.Blending schedule for each extraction phase – Blended stockpile management. 5.Benches pit slopes and Mine limits 6.Identification for new area for exploration 7.Progressive and final mine closure areas 8.Any other information which management would like to add. 9.Updating of extract plans with Blast hole quality data, on regular basis.
To update the optimisation model: To update block model with the regular quality and quantity inputs from production data, blast hole data and with additional exploration data. This will ultimately update the optimisation model for deposit.
Effectiveness of optimisation plan for a mine
The effectiveness of an optimisation plan of a mine depend on several parameters. The main parameters in this are listed below:
Outcome of effective optimisation and mine plan
Production scheduling (as a result of mine planning and optimisation) is the preparation of a sequence in which the limestone deposit is extracted and moved in order to maximise the NPV encompassing the effect of mining, economic and processing constraints.
Application of IT for optimisation of resources
In today’s age, IT has become essential to use tools of IT for the optimisation detailed above, underlying its importance in the framework of any mining initiative. In general, the major reason for the success of IT tools in multiple fields is the ability of such tools to continuously monitor, collect and assess various kinds of data. This eliminates the possibly erroneous and definitely discrete step of manual data collection, and allows for continuous and accurate data collection with minimal expenditure. To credit of these IT tools is also their ability to process large quantities of collected data in very short times, and their ability to provide this to the users in a comprehensible and easy to use format.
In the context of the above resource optimisation resources in mines, the following benefits of using IT tools emerge:
Desired technical specifications for mine planning and optimisation software This is a general list of specifications which any mining software must fulfil for it to be viable as a solution for mining optimisation. Each company, individual etc. will require to either modify or add to these while selecting their own software solution, but as such this would serve as basic guidelines for this selection. Generally, a mining software solution must satisfy the following:
Quick/automatic dump and stockpile units (dumping blocks and stockpiling blocks) creation.
A few cement companies like ACC and Ambuja have started mine planning and optimisation with their own created software like QSO (Quarry Scheduler and Optimiser) for long-term planning and Quarry Master for short term planning from Holcim. However, majority still use commercial solutions from other vendors. The mining software solutions commonly used in India for limestone mines planning and optimisation are described below:
Gemcom (Surpac) – Now GEOVIA (3DExperience mine solution for limestone mine):
1.The software has recently been updated with point cloud technology for better data management. 2.For strategic mine planning, the GEOVIA works on principle of mine optimisation to match with business objectives of life of mine maximisation (resources/reserves), Optimised cash flow, and better plan for how to mine and where to mine. 3.This gives idea of proper blend plan to optimise the resources of mine on short term and long term basis.
>Datamine Studio RM Software:
1.Data validation through HOLES3D output files, which generates table of drillholes 2.Export current view to pdf format. 3.Graphics using 64bits, which can handle large data set 4.Advantageous in working with 2 or 3 monitors, Data/Model/solids can be viewed separately. 5.Dynamic checking of data using mouse and curser on screen 6.It handles complex data filtering 7.Drillhole samples assay values, lithologs and geology is easy to compare. 8.Advanced geostatistics is possible.
Maptek (Vulcan) software:
1.Scheduling (optimisation) based on commodity pricing. 2.Integrate modelling with I-Site laser survey data. 3.This is also available in 64bit graphics
Mining software by CMC:
Concept of remote quarry management
A recent technique which accentuates the importance of application of IT to mine optimisation is the "Remote Quarry Management". It uses IT solutions to analyse and support actual mining activity in field from a remotely located center. This technique does not add onto the previous IT solutions for mine optimisation. Rather, the core of this technique lies in the battery of IT tools used to share data and for management purposes, which in turn enables the remote center to effectively convert the optimisation plans to operations on the field without requiring a separate local management team. This not only reduces manpower requirements, but also coordinates the operations with the planning stage, enabling corrective inputs to be incorporated easily and earlier. Such a remote center also can integrate expert help, multiple knowledge bases and potential leaderships easily to provide quick alternative solutions, detailed analysis, evaluation of multiple scenarios and ultimately better operation management, deposit use and streamlined quarry output.
Conclusion
This article has discussed about the mine optimisation in limestone mine, which is major commodity for cement manufacturing. This is quite a critical exercise for maximising the resources and optimising the NPV of gains. Mining of limestone is a dynamic scenario, in which any changes in Cement markets directly affect mining operations. The optimisation exercise helps in updating and timely managing the above two objectives. Despite extensive use of optimisation techniques, challenges still exist in this field, such as various demands from stakeholders, environmental demands, etc.
Software solutions available for mine planning and optimisation help in expediting the analysis and obtaining alternative results for management to take suitable decision. Various software available in India were discussed in brief with their capabilities. Continuous improvement in this field is on the card, which is something the IT world is working on constantly and continuously. It is fluid and dynamic situation, and each new day brings a new solution or software to light for the ever present challenges of this field.
References
benefits of effective optimisation:
Affected partiesBenefits
Operation Staff1.Flexibility in operation 2.No human interventions 3.Avoid Human biasness 4.Alternatives available 5.Efficient operation Management1.Evaluation of alternatives 2.Optimal use of deposit 3.Better controls over resource 4.Regular updating of mine faces Company 1.Savings in Operating Cost 2.Minimal inventories 3.Increased deposit life 4.Consistent production Customer1.Consistent quality product 2.Effective Cost to product
Author: Bhanu Prakash Bhatnagar, Head Mining and Raw materials, Adani Cementation Ltd, Ahmedabad.
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Price hikes, drop in input costs help cement industry to post positive margins: Care Ratings
Published
4 years agoon
October 21, 2021By
admin
Region-wise,the southern region comprises 35% of the total cement capacity, followed by thenorthern, eastern, western and central region comprising 20%, 18%, 14% and 13%of the capacity, respectively.
The cement industry is expected to post positive margins on decent price hikes over the months, falling raw material prices and marked drop in overall production costs, said an analysis of Care Ratings.
Wholesale and retail prices of cement have increased 11.9% and 12.4%, respectively, in the current financial year. As whole prices have remained elevated in most of the markets in the months of FY20, against the corresponding period of the previous year.
Similarly, electricity and fuel cost have declined 11.9% during 9M FY20 due to drop in crude oil prices. Logistics costs, the biggest cost for cement industry, has also dropped 7.7% (selling and distribution) as the Railways extended the benefit of exemption from busy season surcharge. Moreover, the cost of raw materials, too, declined 5.1% given the price of limestone had fallen 11.3% in the same aforementioned period, the analysis said.
According to Care Ratings, though the overall sales revenue has increased only 1.3%, against 16% growth in the year-ago period, the overall expenditure has declined 3.2% which has benefited the industry largely given the moderation in sales.
Even though FY20 has been subdued in terms of production and demand, the fall in cost of production has still supported the cement industry by clocking in positive margins, the rating agency said.
Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. The cement sector will be seeing a sharp growth in volumes mainly due to increasing demand from affordable housing and other government infrastructure projects like roads, metros, airports, irrigation.
The government’s newly introduced National Infrastructure Pipeline (NIP), with its target of becoming a $5-trillion economy by 2025, is a detailed road map focused on economic revival through infrastructure development.
The NIP covers a gamut of sectors; rural and urban infrastructure and entails investments of Rs.102 lakh crore to be undertaken by the central government, state governments and the private sector. Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified.
The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together account for 79% of the proposed investments in six years to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.
Similarly, the Pradhan Mantri Awaas Yojana, aimed at providing affordable housing, will be a strong driver to lift cement demand. Prices have started correcting Q4 FY20 onwards due to revival in demand of the commodity, the agency said in its analysis.
Industry’s sales revenue has grown at a CAGR of 7.3% during FY15-19 but has grown only 1.3% in the current financial year. Tepid demand throughout the country in the first half of the year has led to the contraction of sales revenue. Fall in the total expenditure of cement firms had aided in improving the operating profit and net profit margins of the industry (OPM was 15.2 during 9M FY19 and NPM was 3.1 during 9M FY19). Interest coverage ratio, too, has improved on an overall basis (ICR was 3.3 during 9M FY19).
According to Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region-wise, the southern region comprises 35% of the total cement capacity, followed by the northern, eastern, western and central region comprising 20%, 18%, 14% and 13% of the capacity, respectively.
Installed capacity of domestic cement makers has increased at a CAGR of 4.9% during FY16-20. Manufacturers have been able to maintain a capacity utilisation rate above 65% in the past quinquennium. In the current financial year due to the prolonged rains in many parts of the country, the capacity utilisation rate has fallen from 70% during FY19 to 66% currently (YTD).
Source:moneycontrol.com
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Wonder Cement shows journey of cement with new campaign
Published
4 years agoon
October 21, 2021By
admin
The campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV…
ETBrandEquity
Cement manufacturing company Wonder Cement, has announced the launch of a digital campaign ‘Har Raah Mein Wonder Hai’. The campaign has been designed specifically to run on platforms such as Instagram, Facebook and YouTube.
#HarRaahMeinWonderHai is a one-minute video, designed and conceptualised by its digital media partner Triature Digital Marketing and Technologies Pvt Ltd. The entire journey of the cement brand from leaving the factory, going through various weather conditions and witnessing the beauty of nature and wonders through the way until it reaches the destination i.e., to the consumer is very intriguing and the brand has tried to showcase the same with the film.
Sanjay Joshi, executive director, Wonder Cement, said, "Cement as a product poses a unique marketing challenge. Most consumers will build their homes once and therefore buy cement once in a lifetime. It is critical for a cement company to connect with their consumers emotionally. As a part of our communication strategy, it is our endeavor to reach out to a large audience of this country through digital. Wonder Cement always a pioneer in digital, with the launch of our IGTV campaign #HarRahMeinWonderHai, is the first brand in the cement category to venture into this space. Through this campaign, we have captured the emotional journey of a cement bag through its own perspective and depicted what it takes to lay the foundation of one’s dreams and turn them into reality."
The story begins with a family performing the bhoomi poojan of their new plot. It is the place where they are investing their life-long earnings; and planning to build a dream house for the family and children. The family believes in the tradition of having a ‘perfect shuruaat’ (perfect beginning) for their future dream house. The video later highlights the process of construction and in sequence it is emphasising the value of ‘Perfect Shuruaat’ through the eyes of a cement bag.
Tarun Singh Chauhan, management advisor and brand consultant, Wonder Cement, said, "Our objective with this campaign was to show that the cement produced at the Wonder Cement plant speaks for itself, its quality, trust and most of all perfection. The only way this was possible was to take the perspective of a cement bag and showing its journey of perfection from beginning till the end."
According to the company, the campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV. No other brand in this category has created content specific to the platform.
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In spite of company’s optimism, demand weakness in cement is seen in the 4% y-o-y drop in sales volume. (Reuters)
Published
4 years agoon
October 21, 2021By
admin
Cost cuts and better realizations save? the ?day ?for ?UltraTech Cement, Updated: 27 Jan 2020, Vatsala Kamat from Live Mint
Lower cost of energy and logistics helped Ebitda per tonne rise by about 29% in Q3
Premiumization of acquired brands, synergistic?operations hold promise for future profit growth Topics
UltraTech Cement
India’s largest cement producer UltraTech Cement Ltd turned out a bittersweet show in the December quarter. A sharp drop in fuel costs and higher realizations helped drive profit growth. But the inherent demand weakness was evident in the sales volumes drop during the quarter.
Better realizations during the December quarter, in spite of the 4% year-on-year volume decline, minimized the pain. Net stand-alone revenue fell by 2.6% to ?9,981.8 crore.
But as pointed out earlier, lower costs on most fronts helped profitability. The chart alongside shows the sharp drop in energy costs led by lower petcoke prices, lower fuel consumption and higher use of green power. Logistics costs, too, fell due to lower railway freight charges and synergies from the acquired assets. These savings helped offset the increase in raw material costs.
The upshot: Q3 Ebitda (earnings before interest, tax, depreciation and amortization) of about ?990 per tonne was 29% higher from a year ago. The jump in profit on a per tonne basis was more or less along expected lines, given the increase in realizations. "Besides, the reduction in net debt by about ?2,000 crore is a key positive," said Binod Modi, analyst at Reliance Securities Ltd.
Graphic by Santosh Sharma/Mint
What also impressed analysts is the nimble-footed integration of the recently merged cement assets of Nathdwara and Century, which was a concern on the Street.
Kunal Shah, analyst (institutional equities) at Yes Securities (India) Ltd, said: "The company has proved its ability of asset integration. Century’s cement assets were ramped up to 79% capacity utilization in December, even as they operated Nathdwara generating an Ebitda of ?1,500 per tonne."
Looks like the demand weakness mirrored in weak sales during the quarter was masked by the deft integration and synergies derived from these acquired assets. This drove UltraTech’s stock up by 2.6% to ?4,643 after the Q3 results were declared on Friday.
Brand transition from Century to UltraTech, which is 55% complete, is likely to touch 80% by September 2020. A report by Jefferies India Pvt. Ltd highlights that the Ebitda per tonne for premium brands is about ?5-10 higher per bag than the average (A cement bag weighs 50kg). Of course, with competition increasing in the arena, it remains to be seen how brand premiumization in the cement industry will pan out. UltraTech Cement scores well among peers here.
However, there are road bumps ahead for the cement sector and for UltraTech. Falling gross domestic product growth, fiscal slippages and lower budgetary allocation to infrastructure sector are making industry houses jittery on growth. Although UltraTech’s management is confident that cement demand is looking up, sustainability and pricing power remains a worry for the near term.

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