Feasibility study of the current raw material supply system if a new furnace is built at West Plant

Abstract

BHP Billiton, the worlds largest mining company, is planning on building a new furnace, M14, at one of their plants at Metalloys. The M14 project represents a significant investment to BHP Billiton and to ensure that the project is a success feasibility studies to determine the effect of the new furnace on other operations at Metalloys was mandated. One of the functional areas that needed to be assessed was the Raw Material Transport System (RMTS). The RMTS is a complex system that needs to accommodate the new demand of M14 as well as continue to supply the current furnaces with an adequate supply of raw material. Guidelines from literature indicated that simulation can be used as a competent tool to help solve the problem. Different methodologies for solving the problem using different perspectives were analyzed using literature from the chosen simulation software, AnyLogic R?. The model proved to be relatively accurate to the real world system, with discrepancies in the outputs experienced because of the stochastic and human elements inherent to operating the system. After analysis of 30 outputs from the current scenario model versus the M14 scenario model it was concluded that the average material availability at all the plants will decrease by an average of 13% while the spread of the distribution will increase by an average of 5,8%. A proposed modification of the stockyard layout was also tested using the simulation model. It was tested on the current and M14 scenario in order to determine and better explain changes stockpile locations will have on the system.