More Related Content Similar to 01 geological investigation (20) 1. Strength. Performance. Passion.
© 2013 Holcim Ltd
Raw Materials Management (RMM):
The way to get the most from your deposit
CMC APAC 2014
Monday, September 8, 2014
Pawel Kawalec
(presentation prepared by L.ScheurerCMC APAC Sep. 2014
2. © 2014 Holcim Ltd
• Assure a steady supply of raw materials in terms of quality
and quantity for cement and aggregate production
RMM objective: quality and quantity
4. © 2014 Holcim Ltd
• Natural raw materials in our industry
Clinker production
Cement production
Aggregates
• Basics of geology
• Raw materials investigations
• Resouces - Reserves
Outline
5. © 2014 Holcim Ltd
Clinker production
• Main elements: limestone, marl and claystone
• Correctives: silica sand, iron ore and bauxite
We use different natural raw materials in our industry
6. © 2014 Holcim Ltd
The sand - clay - carbonate system
The raw mix is made of limestone – clay and sand
7. © 2014 Holcim Ltd
Cement production
• Natural additives: gypsum, pozzolan, diatomite
• Aggregates production: sand and gravel, crushed stones
Natural raw materials in our industry
8. © 2014 Holcim Ltd
• Raw material supply
Raw materials constitute the basic element for our business.
Industrial, demographic and ecological developments increasingly reduce their
availability.
• Quality control
The raw material quality has a significant bearing on process and products.
• Cost
The raw material situation has a location, and exploitation costs have a significant
bearing on competitiveness.
• Environmental footprints
Traditionally, not having sufficient raw materials was considered as one of the
main risks – nowadays, not getting a permit or even a closure of operation has to
be considered as the highest risk in our business operation.
We need raw materials, what are the issues?
9. © 2014 Holcim Ltd
• Natural raw materials in our industry
• Basics of geology
Principles
Stratigraphy
Tectonics
• Raw materials investigations
• Resouces - Reserves
Outline
10. © 2014 Holcim Ltd
• Uniformitarism: the present is the key to the past
• Law of superposition: a sedimentary rock layer is
younger than the one beneath it and older than
the one above it
• Principle of original horizontality: the deposition of
sediments occurs essentially as horizontal beds
• Principle of lateral continuity: layers of sediments
initially extend laterally in all directions
Some principles to help you understand geology
11. © 2014 Holcim Ltd
• Reef – high grade limestone
Uniformitarism - Paleo-environmental reconstructions:
examples (1/4)
present past
TexasAustralia
12. © 2014 Holcim Ltd
• Alluvial fan – variable granulometry
Paleo-environmental reconstructions: examples (2/4)
present past
UtahDeath Valley, CA
13. © 2014 Holcim Ltd
• Sand dunes – high SiO2
Paleo-environmental reconstructions: examples (3/4)
present past
Utah Utah
14. © 2014 Holcim Ltd
• Lagoon systems – High TOC/ Pyritic S and/or MgO
Paleo-environmental reconstructions: examples (4/4)
present past
Atlantic coast Wyoming
15. © 2014 Holcim Ltd
Carbonate platform: pure limestone
Alluvial fan: sand and clay
Death Valley, CA
Bahamas
Reconstructing depositional environments: why ?
16. © 2014 Holcim Ltd
Mississippi Delta
• Deltaic environment where
clastic material enters a
carbonate platform:
• Clay and marl
• Lateral variation
…to know the degree of variability of our deposit and
anticipate quality aspects
17. © 2014 Holcim Ltd
Law of superposition: chronological superposition of
sedimentary units through time
Oldrocksyoungrocks
Grand Canyon - AZ
18. © 2014 Holcim Ltd
An history of marine/clastic sedimentation, erosion, tilting and plutonic
intrusion….
Stratigraphic sequences: a chronological journey
19. © 2014 Holcim Ltd
• Horizontality: the deposition of sediments occurs
essentially as horizontal beds
• Principle of lateral continuity: layers of sediments
initially extend laterally in all directions
Principles of original horizontality and continuity of
sedimentary layers
Utah
Glarus - CH
20. © 2014 Holcim Ltd
• Describes the various
geological layers and
their chronological
sequence
Geological concepts: Stratigraphy
21. © 2014 Holcim Ltd
• Normal fault
• Reverse fault
Geological concept: tectonics
22. © 2014 Holcim Ltd
• Strike-slip fault
Geological concept: tectonics
25. © 2014 Holcim Ltd
Folding occurs on ductile sequences
Hagerstown
26. © 2014 Holcim Ltd
Folding occurs on ductile sequences
Hagerstown
28. © 2014 Holcim Ltd
Faulting occurs on brittle rocks
Holderbank
29. © 2014 Holcim Ltd
Faulting occurs on brittle rocks
Holderbank
30. © 2014 Holcim Ltd
• Natural raw materials in our industry
• Basics of geology
• Raw materials investigations
Objectives
Desk study
Preliminary investigation
Overall investigation
Detailed investigation
• Resouces - Reserves
Outline
31. © 2014 Holcim Ltd
We, the raw material specialists, often hear the following
arguments from the plant personnel:
• We know the deposit
• The deposit is very homogeneous
• We had no problems in the past
• etc.
Practical example of what can happen if you don’t do
geological investigations
Why we do not need geological investigations ?
32. © 2014 Holcim Ltd
Three drillholes have been dug in the limestone deposit
33. © 2014 Holcim Ltd
This is an elementary solution for limestone correlation
34. © 2014 Holcim Ltd
• How can we guarantee that the correlation is correct?
with a thorough geological knowledge (by means of field
investigations)
• What benefits will be get from these investigations?
Reliable geological model
More efficient drilling program
Realistic planning of the quarry
This limestone correlation might not be correct
35. © 2014 Holcim Ltd
RMM Mission
Manufacturing clinker & cement is about making use of the right
ingredients...
at the time we need them
at the lowest cost possible
as long as possible and
obtained in a safe & responsible manner
own materials correctives MICs
36. © 2014 Holcim Ltd
Sustainable Use of the
Raw Material Deposit
The RMM Pyramid has the tools to make this happen:
.... to ensure the timely delivery of
materials for production
at the lowest cost possible
.... to locate the materials we need
.... to provide the basis for safe &
responsible mining activities
.... to ensure their long-term access
.... to further reduce operating costs by
providing the foundation to apply
the drill to mill initiative
37. © 2014 Holcim Ltd
• That’s not so trivial....
It’s about legal compliancy
It’s about understanding and translating non-linear, geological
processes into a finite numerical model
It’s about estimating the geographic distribution of process-
relevant parameters (multivariate geostatistics)
e.g. LS, AR, SR, CaO, SiO2
, Fe2
O3
, Al2
O3
, minor elements, emission-relevant
components, rock types, physical properties, costs, etc.
How to ensure that kiln(s) and/or mill(s) are fed anytime with
the required materials and as long as possible ?
→ It’s about planning in space AND in time..... Yes, in 4D
!
38. © 2014 Holcim Ltd
• Once a concession is registered, it is of utmost importance to
make the most of the deposit.
• Therefore, we need adequate tools for the correct evaluation of
the deposit in terms of quality and quantity in order to create
an inventory of the deposit.
• Having an intimate knowledge of the deposit, it is necessary to
develop an optimal exploitation plan in such a way which is
also practicable.
What are the challenges ?
39. © 2014 Holcim Ltd
Raw material exploration: a stepwise approach
Desk Study
Preliminary Investigation
Overall Investigation
Detailed Exploration
40. © 2014 Holcim Ltd
Development of costs, time and reliability versus risk in the
raw materials investigations
Project definition
Desk study
Preliminary
investigations
Overall
exploration
Detailed
Investigations
41. © 2014 Holcim Ltd
Tools in Raw Materials Management, CM Block Week - T. Galfetti / CM-MMT,
2013-12-02
42. © 2014 Holcim Ltd
Objective: Identification of areas of interest
Main tasks:
• Study of published information, like:
Mining cadastre
Topographical maps, at a scale of 1:200’000 to 1:50’000
Geological maps, at a scale of 1:500’000 to 1:200’000
Aerial pictures and remote sensing data
World Database of Protected Areas (IUCN)
Question to answer:
• Where are the areas with potential? Where are the competitors
• What is the geological situation and are there enough resources for a long-term
operation?
• What infrastructure is available; what are the environmental restrictions?
Step 1: Desk study
43. © 2014 Holcim Ltd
Desk study: Published information
Mining Cadaster
1:50’000
Topographic Map
1:25’000
Geological Map
1:100’000
Aerial
Picture
44. © 2014 Holcim Ltd
Objective: Identification of potential deposits
Main Tasks:
• Evaluation of geographical and logistics situation
• Evaluation of geological situation
• Surface sampling of outcrops, of small trenches, and eventually
limited drilling
• Chemical and environmental analyses
• Preliminary estimation of raw material quality and quantity
• Evaluation and definition of 1 – 2 deposits for investigation
Step 2: Preliminary investigation
46. © 2014 Holcim Ltd
Objectives: Characterize raw material for CAPEX and guarantee reserves for
an operation of > 100 years
Tasks:
• Topography at a scale of 1:5’000 or better
• Detailed geological mapping and cross sections
• Drill holes and core sampling (limestone: drilling of ca. 2000 – 4000 m,
sampling at intervals of approx. 2 m)
• Raw material testing (around 1000 – 2000 samples)
• 3D geological model
• Overall geotechnical / hydrogeological study
• Block model, QSO, calculation of reserves
• Definition of mining strategy and design
Step 3: Overall investigation
51. © 2014 Holcim Ltd
Samples preparation
Core cutting Crushing Homogenizing
53. © 2014 Holcim Ltd
Geological cross sections for determination of mining
perimeter
Mining
perimeter
55. © 2014 Holcim Ltd
• For each sample of the drill holes( 1 to 2 m length)
LoI, SiO2
, Al2
O3
, Fe2
O3
, CaO, MgO, SO3
, K2
O, Na2
O, TiO2
, P2
O5
,
Mn2
O3
, Cl
• On composite samples (max 10 –12 m length) of selected drill holes
TOC - VOC, NH3
, Pyritic S, Cd, Tl, Hg and Trace elements
• On selected samples of the drill holes
Moisture content, density, compressive strength,…
• On bulk samples
Abrasivity, grindability
Burnability
Expulsion test
Quality of the deposit: Analyses required of the drill hole
samples
56. © 2014 Holcim Ltd
• Limit values of minor elements in the raw mix
Oxides % in Raw Mix Remarks
MgO < 3% MgO comes mainly from the calcareous
component
SO3
< 0.2 - 1% In general, SO3
comes from the
argillaceous-siliceous component
K2
O < 1 %
Argillaceous-siliceous component contain
alkalisNa2
O < 0.3
P2
O5
< 0.3% Mainly from calcareous component
Cl-
< 0.02 %
All component can have high Cl-
content
Quality of cement raw materials: minor elements
57. © 2014 Holcim Ltd
• Limit values of environmentally problematic elements in the raw mix
Oxides % in Raw Mix Remarks
TOC
< 0.2 – 0.3%
Mainly from the argillaceous
component(Total Organic
Carbon)
NH3
(ammonia) 100 ppm
Mainly from the argillaceous
component
Pyritic sulfur < 0.2 %
From both, calcareous and argillaceous
components. High content are rather
likely in the argillaceous component
Hg (Mercury) 0.04 ppm
Often linked with volcanic activity
Quality of cement raw materials: environment
58. © 2014 Holcim Ltd
Objective: Obtain sufficient data for quarry planning on the short
term
Tasks:
• Drilling and sampling (percussion drilling, sampling every
meter)
• Chemical analyses
• Adjusting of 3D geological model
• Adjusting of block model and QSO
• Exploitation planning
Step 4: Detailed exploration
59. © 2014 Holcim Ltd
− Duration Project Phase
• Desk Study: 2 - 4 weeks Opportunity Study
• Preliminary study: 4 - 6 months Prefeasibility study
• Overall: 8 -12 months Feasibility study
• Detailed Study: 3 - 4 months Quarry opening
Time frame
60. © 2014 Holcim Ltd
Three drillholes have been dug in the limestone deposit
61. © 2014 Holcim Ltd
This is an elementary solution for limestone correlation
62. © 2014 Holcim Ltd
• How can we guarantee that the correlation is correct?
with a thorough geological knowledge (by means of field
investigations)
• What benefits will be reap from these investigations?
Reliable geological model
More efficient drilling programme
Realistic planning of the quarry
Limestone correlation
63. © 2014 Holcim Ltd
Limestone correlation, alternative solutions
64. © 2014 Holcim Ltd
The solution is a folded and thrusted limestone
65. © 2014 Holcim Ltd
• Natural raw materials in our industry
• Basics of geology
• Raw materials investigations
• Resouces – Reserves
Classification
Example
Outline
66. © 2014 Holcim Ltd
Holcim Reporting Standard
• PERC: Pan-European Reserves and Resources
Reporting Committee www.perc.co
• To give a clear picture of the raw material
situation of our deposits at time of reporting
considering level of knowledge and confidence
and the requirements of operation.
• Main principles governing the application of the
standard are:
transparency,
materiality,
competence, and
impartiality
• Reference
• Objective
67. © 2014 Holcim Ltd
Terminology
• A Mineral Occurrence = The occurrence of a target rock (e.g.
limestone) in a defined geological setting (geological formations).
The information is inappropriate for deriving estimates of tonnage
and quality. Normal to be applied in desk studies and preliminary
field investigations.
• A Mineral Resource = A Mineral Occurrence with reasonable
prospects for eventual economic extraction (in terms of quality,
quantity, technical feasibility). For Mineral Resources estimates an
economic extraction needs to be reasonably assumed (process
requirements, mining, and availability). Mineral Resources are sub-
divided into Inferred, Indicated or Measured categories (according
level of knowledge and confidence).
• A Mineral Reserve = The economically minable part of a Measured
and/or Indicated Mineral Resource. Mineral Resources are
converted into Reserves through the application of so called
Modifying Factors and by means of quarry planning. Mineral
Reserves are sub-divided into Probable, and Proved categories.
• Mineral
Occurrence
• Mineral
Resources
• Mineral
Reserves
69. © 2014 Holcim Ltd
Mineral resources classification
Resources = What a deposit offers for production
INFERRED: Low level of confidence.
Geological evidence are limited or of uncertain quality
and reliability.
The geological and /or quality continuity through the
deposit are not determined
INDICATED: Level of confidence
required
for feasibility studies
Appropriate investigations (geological mapping,
sampling, drilling,
testing) are carried out to characterize the geological
structure and quality of the deposit.
MEASURED: Level of confidence for
detailed mining planning.
Detailed investigations are carried out
if required by in-filled drill holes, sampling and testing.
Probabl
e
Prove
d
Indicated
Measured
Inferred
Mineral
Reserves
Mineral
Resources
Increasinglevelof
geologicalknowledge
andconfidence
Modifying factors
70. © 2014 Holcim Ltd
Mineral reserves classification
Probabl
e
Prove
d
Indicated
Measured
Inferred
Mineral
Reserves
Mineral
Resources
Increasinglevelof
geologicalknowledge
andconfidence
Modifying factors
Mineral reserves are the economically mineable part
of indicated and/or measured resources
Probable reserves: category that
ensures that the raw materials are
available and suitable.
The extraction is justified. Probable
reserves are estimated based on a
a long term quarry development.
The level of knowledge is sufficient
for decision.
Proved reserves: category that ensures
high accuracy in estimates and
mineability the raw materials.
Detailed reliable mining plans can be
prepared with respect of all factors such
as stability, economic, legal,
environmental.
We would recommend for cement raw material deposits to estimate:
Probable reserves for 50 years of production for a greenfield or expansion project
Proved reserves for 20 to 30 years of production for operation on a roll out basis.
71. © 2014 Holcim Ltd
How we proceed – adoption of standard code for cement
industry
Resources Raw Mix Resources Reserves
72. © 2014 Holcim Ltd
How we proceed – adoption of standard code for cement
industry
Resources Raw Mix Resources Reserves
73. © 2014 Holcim Ltd
How we proceed – adoption of standard code for cement
industry
Resources Raw Mix Resources Reserves
Modifying factors
74. © 2014 Holcim Ltd
• 159 drillholes
• 50 x 50 m and 200 x 300 m pattern
• Indicated resources on most of the mining license: the variogram shows that there is
a continuity over 200 m, but the extent of the lenses is not defined
• QSO model over the whole mining license
Case study – Deposit investigation
75. © 2014 Holcim Ltd
• The government land can be mined; you have it under your control
• You can not access into private land
• On which areas can you transform resources into reserves?
Case Study - Resources and Reserves reporting
76. © 2014 Holcim Ltd
Be careful on the modifying factors
Dump
Dump
Dump
Outside
mining lease
Properties too
small to create a
pit
77. © 2014 Holcim Ltd
Geological quiz
740/02
K
G
D
J
E
L
F
I
C
H
A
B
Tick the events in the correct time sequence.
M
N
78. © 2014 Holcim Ltd
• A: Erosion of rocks - after tilting (deformation)
• B: Low-angle deformation (overthrust)
• C: Intrusion of volcanic rocks (dike)
• D: Intrusion of a granitic stock (plutonite)
• E: Deposition of old limestone
• F:Deposition of young limestone
• G: Deposition of old sandstone
• H: Metamorphosis and folding (deformation)
• I: Deposition of young nodular limestone
• J:Deposition of old shale
• K: Erosion of rocks - after tilting (deformation)
• L:Deposition of young silty shale
• M: Actual surface topography
• N: Tilting of old sequence
Geological quiz - legend
79. © 2014 Holcim Ltd
• Indicate with letters the time sequence of the geological events
from old to young:
Geological quiz
80. © 2014 Holcim Ltd
• Sequence of the geological events from old to recent:
Answers to geological quiz
M
H D K G J
CN IA L F
E B
81. © 2014 Holcim Ltd
• Good geological mapping is decisive for the evaluation of a deposit.
• The stratigraphic and tectonic concepts are vital to understanding
the 3D shape of the deposit.
• The design of the drilling grids should be based on sound geological
concepts.
• The block model cannot be computed before having carried out
detailed geological investigations.
• Only then can the deposit be exploited in an optimal way:
Potential of the deposit: resources / reserves
Minimise environmental impact
Assure safety
Conclusions
82. © 2014 Holcim Ltd
• Know your deposit: is the life insurance of our operation.
• A thorough knowledge requires investigations
• Investigations require time and resources (competent people
and money).
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