Yield Optimization In Process Plant Economics

The overall economics of a coal production unit are governed by a number of interdependent parameters which individually and collectively affect the final result. A business judgement is measured through return on investment considerations and in this respect, a sensitivity analysis proves useful. Figures 1 and 2 show how the various parameters affect return on investment through unfavourable change from planned or expected values. In the case of metallurgical coals, the selling price negotiated is the primary and most sensitive variable, followed by transportation, clean coal yield and capital funds invested in mining. It is clear that coal preparation plant capital and operating costs are the least sensitive to R.O.I. For energy coals, the selling price is determined by heat energy content (x cents per million BTU's) and is therefore not con¬sidered as an interdependent variable. In this case, transportation cost is the major primary factor affecting the level of income. Again the amount of saleable clean coal or total yield has a major effect on return on investment. Most of the factors considered in Figures 1 and 2 are fixed and unfavorable change from planned values becomes critical but clean coal yield is to a great extent controllable during actual operations. Once the theoretical yield for a particular coal has been determined, the optimum return is achieved by approaching this theoretical yield as nearly as possible in practical commercial operation.