Senior Design 2014

1. Senior Design 2014 Week 2

2. Oral Presentations • Dress Code • Simulating reports to directors – need professional dress at semi-formal level • White shirt and tie • Nice slacks – not to be confused with shorts • Dress code alternative • Tan slacks – not to be confused with shorts • Mining Polo’s • Entire team must be uniform for this option

3. Some Guidelines for Public Speaking Poise • Avoid rocking back and forth and swaying • This can usually be done by spreading to feet slightly more than the width of your hips • I have seen this done to where someone looks like they are doing the splits – they don’t sway but the look highly un-natural • Make sure any walking movements fit context of your presentation • You don’t have to stand still but if you walk it should not look like you are dodging bullets in a shooting gallery or appear to be a nervous habit.

4. Poise and Appearing You Don’t Need a Pad by that Name • Face you audience • Maintain eye contact with the audience • Not your power point (very hard to do) • You should know your power point well enough that you don’t have to read it • Look at it when you want to point something out and then return the gaze to the audience • Look slowly around the room making eye contact with individuals including those at the edges • Don’t shift gaze so rapidly that you appear hysterical • Gestures should be natural • Don’t put your hands in your pocket • Don’t stand stiff as a board • Don’t flap you hands so it looks like you are trying to get airborne

5. Speak Straight and Clear • Keep your head up – let your lungs expand, speak loudly without shouting or straining your voice • Avoid ah’s, ya’s , you know, and other words that take up space and break the context and flow of your words

6. Don’t Be Over-Powered by Your Power Point • Slides don’t give your speech for you • Avoid too many words • (most of my power points have to many words in an attempt to help students doing reviews – it is not the ideal) • Avoid print so small one must strain to see • Avoid busy tables that no one can read.

7. But What Should I Do About Tables? • Why are you showing it? • Answer a lot of times is you did a lot of work and want people to see it and don’t know yourself what to emphasize • Consider handing tables out (they can’t read it on the screen anyway) • If you know what you want them to see consider doing blow-up of table data you want to emphasize

8. Coal • Improve your model • You mine lease area starts a 0,0 in the south-west and extends 5 miles to the north and 7.5 miles to the east (adjust your mining area and models) • Your fault definition is excellent • You need to add your dikes and washout channels • Computer interpolation on these features are likely inadequate

9. Dealing With Dikes • You have two of them – in one case you drilled right into it – in another you encountered burnt coal near it. • They are long narrow features • Dike is an igneous intrusion up a fracture – assume less 40 feet wide but could be miles long • The coal on each side will be burnt for about 50 feet and degraded for about 200 feet • Where coal is burnt the thickness cannot be relied on since burning the coal down would obviously reduce thickness • Carlson allows you to draw an exclusion polyline around the affected area • You may have to use you knowledge and drill-hole data

10. Moving on to Channels • Washout channels are caused by streams cutting into and eroding coal and replacing with something else • Stream channels are likely to be continuous – not spot features • You need to figure out where the stream is likely going • Exclusion polylines again. • You should probably not use washed out coal to interpolate thickness

11. Produce Maps from Your Model • Coal thickness with drill holes into local features (dikes) and channels excluded from modeling but with exclusion polylines to handle the local dike and washout features • Coal seam bottom elevation • You will use this to help you get a feel for where water will flow and collect • It may help govern your mining direction (do you really want the water to pond on the face) • It will be used for design of a dewatering system.

12. Produce InnerburdenIsopacks • Produce contours of the thickness of the material between coal seams. • For your maps put borders and title blocks and prepare them as drawings that can be used in your final report • (they may get a few updates over time) • You will turn in small paper 8.5X11 copies of your maps with your presentation.

13. Start Applying Your Work from last time • Look at your property map and flood regions • Identify areas where you would not put key mine features such as shafts, prep plants, or waste piles • Identify areas that might be favorable for such features • This does not require you to make any final decision on facilities location • This is a step in a process

14. Price and Market • Look at coal price history • Is $46/ton from the spot market your likely price? • Is there a premium or penalty for low or high sulfur or chlorine • How would your prices bias up or down • Last week you demonstrated you could • Get the 1 million ton per year Hutsonville 20 year contract that will pay you $34/ton • You demonstrated you could get 20% of Newton Power plants coal supply • Assume your most likely price • Use FERC data to get quality and quantity numbers • You sort of demonstrated you could get the $50/ton boiler coal market in Terra Haute • The market required $6/ton transport • You got $6/ton but forgot the $4/ton cost for the rail change • Review your costs • If you have to you can go for $46/ton and eat the extra $4/charge for transportation • You found you could not get coal to the Ohio River for $6/ton and capture the $45/ton 2.5 million dollar per year orient market • You were $8/ton plus a $4/ton rail change • Check your cost estimates • Decide whether you will “eat the extra cost” and do $39/ton coal

15. Size Your Steam Coal Market • Are there any other power plants besides Newton and Hutsonville you can get to • Assume you can get 20% of their coal supply at typical coal prices less any cost above $6/ton for shipping • Add up your annual steam coal market with the contracts you want to take • Assume you can market another 10% on the spot market • For the contracts picked how many tons are you looking at and at what average price? • Look at your steam coal reserves • If you had 60% recovery how many years would you have • Chances are something in the 20 to 40 year range for mine life would be good – do any adjustments suggest themselves

16. Look at Your Met Coal Market • You forecast $120/ton • Where does the met coal have to ship? • Keep in mind you are sending it to coking ovens – not iron foundries • For about a 20 to 40 year life what mining rate would you have for the #2 coal seam?

17. Look at Your Workforce • You now have an estimate of how many tons you are going to produce • Estimate what kinds of crew needs you will have • Plan out your work schedule • How many days per week? • How long is a shift? • How many shifts? • Will you have hot seat change-outs • How many days per year • How will you do maintenance shifts

18. Workforce • With your general map of the workforce • How many people will you have to move? • How many locals can you use? • What will your wage and burden costs for your different workers be • Prepare a scale and chart • Work your burden out in some detail

19. Writing Assignment • Write a report on how much coal tonnage you can sell and at what price and with what quality requirements • The report should give an estimated mining rate and mine life. • Write a report on the climate and any considerations that will limit your operating season or restrict where you can build. • Indicate any climate features that may force you to take special precautions for heating or humidity control • Write a report on workforce producedures • Days per week and year, shift structure etc. • Itemize benefits you will provide • Prepare an appendix showing what those benefits will cost and how you got the cost. • Your Writings will be turned in at the end of your next oral report.

20. Metal Miners • Fix your work from last week • Most was very glossed over and incomplete • Metal Prices • You have Gold, Silver, Copper, Lead, and Zinc • Estimate your best guess at the likely price • Estimate your optimistic price (don’t just pick an all time high unless you feel something is happening that might push to the all time high on a sustained basis) • Estimate your disappoint price (again don’t just pick a record low)

21. More Fixing • Water • Are there any springs in the area? • What aquifers are in the area? • Are there already commercial water districts in the area? What would it cost to buy water from them. • You are in a desert – all water is spoken for. You can’t just drill wells or stick a siphon hose in the Colorado River. • What is the cost of water out of Lake Mead or Lake Havasu? • What is the cost of water from Kingman. • Get the cost for existing sources and then figure out what it would take to get water from that source to your doorstep. • Quantity discounts may spread the capital cost of a pipe-line over more units but you don’t get quantity discounts on water in a desert.

22. The Burden Burden • You claimed 40% based on lecture and then talked about benefits like 40% would buy anything the mind could conceive. • Social security is 6.2% • Medicare is 1.45% • Workmans Comp is 1.5% • Unemployment is about 0.9% • What is that 401 K program going to cost • 3% for the first 3%, half match to 7% - maybe 5% if everyone participates. What is your participation rate? • How many days of vacation do they get (how many days work goes with that). You can calculate the additional cost • Same thing with sick leave or family leave

23. More Burden • $300/month per employee and you pay 60% • You have got to be kidding • Mining companies have top flight plans • Most workers have families • 60% by the company needs a lot of McDonald’s and Walmart employees in the mix • Go talk to some of your buddies in industry and see what they are getting • (an SIU prof policy costs about $1400/month from the school and $200 from the worker) • How many hours will you get out of a worker per month? • You can do math – how much cost does that add?

24. Somebody Needs Education • Where are those MSHA training and refreshers offered? • Are you flying people in • Remember you pay your people regular wages and expenses when they go • Don’t forget that burden cost • Where are you getting task training? • What schools train heavy equipment operators? • Are you going to set up your own? – What will that cost • Itemize don’t just hail-mary guess • What schools are in the area and what do they offer • Don’t over-look your community colleges

25. Draft Pit • Make sure you get the data from your correct Draft Pit before doing the next step. • The stripping ratio on what you showed in class is highly suspect.

26. Processing • We will try to work up a more accurate processing plan on Friday

27. Transportation • Accuracy and completeness may be lacking • If you don’t buy the San Manuel Smelter where are the other smelters? • A cost of $2.6/ton mile by rail may be good for freight but not for bulk raw materials. • For copper concentrates 6 cents per ton-mile for a 350 mile trip would be expected. • This does not include rail carrier changes ($4/ton) • Loading Cost • Unloading Cost • Building a Rail system and building a rail spur are not the same thing. $750,000 a mile should build a reasonable rail spur

28. Other Products • Where are nearby gold mines that process refractory gold ores? • Assume they can recover your gold and silver • Although not true now assume that you can smelt lead at Hurculanium, Mo. • Where are Zinc Smelter Located? • Where are existing copper concentrators • As Process is worked out it will become more apparent where to ship things.

29. Moving Ahead • Size your mining operation • You have your tonnage – about • What mining rates correspond to life of • 15 years • 20 years • 25 years • 30 years • 40 years • What rates seem normal and feasible

30. Locate Facilities • You know about where the pit is and you know your process • Locate the general area for your processes and waste • You know how big your pit is • Do estimates of your cycle times to move material • Get a cost for loading and trucking costs • Zero in on 3 feasible mining rates and the truck and loader combinations likely to accompany that • Consider fuel costs to get fuel to the mine • Design model drilling and blasting rounds • Assume 15 meter bench height • Estimate the cost • Assume drilling blasting and trucking make up about 70% of mining costs • What is your ore mining cost? • What is your leach mining cost? • What is your waste mining cost?

31. More Cost Estimates • Get cost estimates for processing • (comments must be based on their chosen process) • Take your revised cost estimates and calculate your ultimate pit again • This time also include pit slopes based on rock type or working geometry as appropriate • Also allow variable slope by azimuth to account for fracture planes • Check your pit size and ore reserves against your assumptions • Fine tune and see if anything you calculated was completely invalidated.

32. Notice the Design Spiral • You did a crappy pit design to size ore reserves and locate facilities • Then you used that information to get case specific costs • Then you went back and did your ultimate pit again.

33. Report Writing • Write a report on historical metal prices and your estimated prices for high, low, and middle case. • Make sure the report explains how and why you chose your prices • Write a Report on the Climate • Are there things that will cause shut-downs and lost time? • Are there things that will impact equipment operations? • Any dust storms? • Will heat impact truck speeds? • Can winter weather cost you days? • Will you have any freeze-thaw issues on rocks? • What is your operating season and hours • Is there anything you need for that operating season (such as lighted roadways etc).