Using Lean Six Sigma Techniques to Prioritize and Define Business Value for Projects at a Mature Uranium Mine and Mill

"INTRODUCTION Strategies to improve performance in mining production, maintenance and mineral processing operations has evolved over time from straightforward time studies of individual machine performance in the 1960’s-1970’s to more sophisticated and better focused statistical and financial tools that have emerged in the 1980’s-1990’s . These newer strategies fall under the broad descriptive category of “Operational Excellence”. Operational Excellence is the term that embodies a number of performance evaluating strategies, the most popular and relevant to mining includes the following: • Six sigma for addressing errors within mining or milling process and work standards • Lean manufacturing to optimize organizational and operational performance through continuous improvement. There are other strategies that can be applied as well and this paper is not focused on a review of the pros and cons of any one strategy. However, the common threads in these strategies embody the expectation that expected results from these efforts can be quantified and that value will positively benefit the targeted work process, organizational unit, equipment deployment or time schedule when applied to it as part of continuous improvement efforts. The priority for proceeding with any one or more of these efforts is based on the calculated net value of the required resources to affect the change versus the estimated value gained. The practice is identified as the value mapping process. This discussion summarizes the value mapping process methodology used at a mature uranium mine and mill in northern Canada to work through the myriad of potential improvement efforts available through the operational excellence process for continuous improvement.THE RABBIT LAKE MINE AND MILL The Rabbit Lake Mine and Mill are located in northern Saskatchewan, Canada on the shores of Wollaston Lake (Figure 1).The mine was discovered in the mid-1960s and was built by Gulf Minerals, Ltd. The mill began processing uranium ore into yellowcake in 1975 from an adjacent open pit mine. A whole ore acid leaching followed by solvent extraction and precipitation forms the basic milling processes. The operation continued to produce yellowcake through a succession of open pits and finally opened an underground mine in the early 1990s. Since beginning production, over 200 million pounds of yellowcake has been packaged from the site, making it the sixth highest producing uranium mine of all time."