Xstrata Coal: calibrating and using a simulation model to motivate capital expenditure of a stockpile

Abstract

Xstrata Coal’s Goedgevonden Colliery (GGV) is an opencast coal mine that started operating in 2007. A simulation model was developed by Ceenex (Pty) Ltd to simulate the coal handling system for the future expansion of GGV. This project aims to adjust and calibrate the previous simulation model such that it can accurately be used for present day analysis and decision making purposes. In this report, the processes that were followed in achieving the project aims are discussed. The simulation model was adjusted, calibrated and used to determine the system’s bottleneck and to motivate the capital expenditure for a Raw coal sized stockpile. The outcome of the project concludes that the Coal Processing Plant (CPP) is the bottleneck in the system and that a Raw coal sized stockpile would increase the annual throughput by 800,000 tonnes. Revenue gained from this increase in production would entail a pay-off-period of 11 months for the infrastructure expansion and a R 160,000,000 annual return on investment thereafter.