AUSTRALIAN LONGWALL COAL MINE
Longwall miner boosts CHPP operational time by 33%
The Challenge
Globally, longwall mines are challenged to reach their nameplate production rate. This is largely due to a focus on equipment efficiency rather than systemwide throughput. Over the past two decades, the growth in capacity of longwall equipment has shifted the bottleneck away from the mining face to the Coal Handling and Preparation Plant (CHPP) and/or Development.
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This shift often goes unnoticed because traditional operational strategies prioritise maximal equipment efficiency. Ironically, this leads to inefficiencies in overall flow, characterised by stop-start flow and effective output well below system capability.
Our client, a leading longwall mine in Australia, faced this prevalent issue, mirroring the broader industry challenge. The situation called for a strategic overhaul rather than conventional efficiency-focused approaches.
LOCATION
Australia
MINE TYPE
Longwall Coal Mine
CHPP OPERATIONAL TIME INCREASE PHASE 1 (no Capex)
33%
CHPP OPERATIONAL RATE INCREASE PHASE 2 (2-month payback Capex being implemented)
21%
INDICATIVE SALES
INCREASE
+$61 million p.a./ each $100 million in budgeted sales. (baseline - prior operating capability,)
The Stratflow Productivity Platform
Intervention Strategy:
We at Stratflow introduced the Productivity Platform, akin to choosing minimally invasive keyhole surgery over more drastic measures. This platform enhances overall system productivity through refined operational flow and decision-making processes. Since the CHPP is the most expensive part of longwall operations to add capacity, we chose this as the bottleneck.
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Implementation and Results:
The implementation in 2023 led to a transformative 33% increase in operational time for the CHPP. This performance required no Capex and delivered more than profit; it also uplifted operational culture:
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Employee Engagement: There was a noticeable increase in workforce engagement and decision-making quality.
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Operational Maturity: Employees exhibited greater maturity, managing operations with foresight and agility.
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Superflow Achievement: The concept of 'Superflow in a spirit of calmness' was realised, characterised by smooth, efficient, and predictable operations. This calm operational state not only enhances productivity but also employee satisfaction and empowerment.
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Sustained Production and Proactive Management:
Post-intervention, the CHPP operations not only increased in throughput but also achieved remarkable stability. This stability allows for predictable monthly production metrics and proactive problem management, fostering a proactive rather than reactive operational culture.
Strategic Capital Expenditure (CapEx) Justification:
The success of the initial intervention provided robust justification for further CapEx investment focused on alleviating identified bottlenecks. The expected payback period was remarkably short, projected at 2 months, with an additional 21% per year increase in CHPP operation rate projected for future years.
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Indicative Benefit
As an example, if price and yield remain constant, and budgeted sales revenue for next year is projected at $100M, this would offer a combined 61% increase in revenue, or $61M, most of which (except for Truly Variable Cost) will flow to the bottom line.
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