Economic impact of coal preparation problems

"The methods generally applied to predict performance and financially evaluate beneficiation options are reviewed.Typical costs f or a western Canadian thermal coal operation are examined. Preparation-from truck dump to loadout-frequently amounts 10 over a quarter of total minesite costs. Failure to achieve projected yield-whether caused by mine or plant problems-s-substantially increases production costs because more coal has 10 he mined to meet a specific market demand. Problem identification by mass/ash balances is recommended.Thorough characterization of the coal and associated waste materials and more reliable prediction of beneficiation process performance are therefore essential to determine a project 's financial viability.IntroductionWestern Canadian coal prep a ration plant capacity is partway through a massive expansion program . In 198 1 potential product ion was 14 million tonnes, by 1985 it will be 26 million tonnes per year. Only two years ago the industry was concerned whether it could sustain this rate of growth to meet market demands : now with diminished market demand and lower coal prices being offered by our international competitors there are doubts whether t his potential will be fully employed , even by 1990.One direct consequence o f the occurrence of a variety of coals in a stunningly beautiful but complex geo logical setting such as the Rocky Mountains and their Foothills is that each project is unique. Coal is a low value per tonne product. To supply distant markets from geographically isolated deposit s necessitates expensive , dedicated , infrastructure . T o be profitable these operations must achieve eve ry advantage of the economy of scale.Each of the mi ne complexes commissioned in the 1970s experienced severe problems in the area o f co a l preparation . Most bought their way out , paying for major plant modifications by increasing the scale of their total operation . The current market recession may not allow new operations this route to profitability.The objective of this paper is to illustrate the economic impact of coal preparation problems on the profitability o f the total minesite operation and thus provide a sound basis for decision making process."