BlendOpt is a configurable optimisation platform for mining value chains. Configured for bottleneck analysis, it finds the constraint that actually limits value, not just tonnes, by optimising pits, stockpiles, processing, logistics and sales together. That shows whether a capacity upgrade is really needed, or whether the same value can be unlocked by changing how material is blended, washed, stockpiled and sold.
What BlendOpt optimises in bottleneck analysis
Value-based bottleneck analysis
Test whether a constraint that binds on tonnes still limits value once blending, product mix and sales are optimised together.
CHPP and wash plant feed
Decide which material is washed, bypassed or stockpiled, including material such as oxidised coal that cannot go through the wash plant.
Haulage and logistics limits
Model limited haulage between pits, the plant and the rail stockyard, and include the extra cost of moving material in every decision.
Stockpiles and blending
Blend from many stockpiles of varying quality so plant capacity is spent on the material that adds the most value.
Product portfolio and sales mix
Balance fixed and spot market sales across products such as PCI and thermal coal while meeting operational constraints up- and down-stream.
What-if capacity scenarios
Compare a proposed capacity upgrade against operational alternatives and alternative product portfolios before committing capital.
Bottleneck optimisation results
Bottlenecks in the context of the whole value chain
A plant that looks full on tonnes is not always the constraint on value. What the plant is fed, which stockpiles are used, how material is hauled and which products are sold all change where the real bottleneck sits. BlendOpt models these decisions together, so a capacity question is answered by its effect on the whole operation. See how this works for coal blending, multiple processing plants, stockpile optimisation and integrated mine planning and scheduling.
Case study
CHPP bottleneck eliminated without capital investment
A three-pit Central Queensland coal operation used BlendOpt to build a 12 month forecast and found that its CHPP bottleneck could be eliminated on a value basis, avoiding a planned capacity upgrade.
Optimised CHPP
utilisation
~10% increase
in revenue
Eliminated
bottlenecks
The challenge
A mining operation in Central Queensland, Australia containing three pits and multiple seams with varying quality with an annual production capacity of 5 million tonnes wanted to test their planning assumptions. The main seam of the coal deposit was approximately 8 metres thick and split into an upper and lower seam. The operation crushed and screened ore before feeding to the wash plant or placing it on crushed ore stockpiles. The wash plant had a maximum capacity of 275kT and was located at one of the pits. Washing material from other pits incurred additional costs because of haulage, which had limited capacity to move material between pits and to the rail stockyard for delivery onto trains. Additional complexity resulted from many stockpiles with varying quality, and different handling of oxidised coal and fresh coal for product blending as they have different quality characteristics - in the case of oxidised coal, material could not be sent through the wash plant. The product portfolio consisted of PCI and thermal coal products. Production targets for the operation were a combination of fixed and spot market sales. The client needed to develop a 12 month forecast in the presence of significant complexity surrounding the decision points in their value-chain.
The solution
The complexity of the client's operation was well suited to the BlendOpt value-chain optimiser, which is engineered to model and optimise operational complexity within mining value-chains. The BlendOpt application was used to model numerous stockpiles, processing and logistical decisions, and product portfolio distributions. For our client this was a very time consuming process - done manually, it was prone to mistakes and required expert knowledge of the operation. BlendOpt was utilised by the operation as a value chain solver by optimising the blending decisions while satisfying the product distribution and operational constraints up- and down-stream.
The value unlocked
Using BlendOpt our client identified that, on a volume basis, the CHPP was the bottleneck in the operation. However, on a value basis, BlendOpt showed that the CHPP bottleneck could be eliminated. Accordingly, the operation did not require capital investment to upgrade CHPP capacity (which was under consideration), saving the organisation 10s of millions of dollars in additional Capital Expenditures. Using BlendOpt our client identified a ~10% increase in revenue compared to their benchmark which was a simple Spry optimiser.
BlendOpt provided a user friendly UI for rapid testing of "What If" scenarios and alternative product portfolios across 12 months to evaluate opportunities and risks. The mathematical optimisation process allowed the BlendOpt users to focus on other important responsibilities in their day to day work. BlendOpt's automated report generation and visual analytics allowed for the rapid dispensing of information to other stakeholders.
Download the case study (PDF)
Bottleneck optimisation FAQ
What is bottleneck optimisation in mining?
Bottleneck optimisation is finding the part of the operation that limits value and deciding how to relieve it, whether by changing plans or by adding capacity. In mining the bottleneck is often a processing plant, haulage route or logistics link. BlendOpt finds it by optimising the whole value chain at once rather than looking at each step in isolation.
What is the difference between a volume bottleneck and a value bottleneck?
A volume bottleneck is the step that limits how many tonnes can move through the operation. A value bottleneck is the step that limits how much the operation earns. In the case study below the CHPP was the bottleneck on a volume basis, but BlendOpt showed that on a value basis the bottleneck could be eliminated by changing blending, processing and product decisions.
Can a processing bottleneck be removed without capital investment?
Sometimes it can. When plant capacity is spent on the material and products that add the most value, a plant that looks full may no longer limit value. In this case study the operation found it did not need the CHPP capacity upgrade it was considering, saving tens of millions of dollars in capital expenditure.
How does BlendOpt test a proposed plant upgrade?
BlendOpt runs what-if scenarios that compare the operation with and without the extra capacity, each fully optimised across stockpiles, processing, logistics and sales. The operation in this case study tested scenarios and alternative product portfolios across 12 months to evaluate opportunities and risks. Where a capacity change does add value, BlendOpt can show it, as in the stockpile case study where new definitions and a moderate capacity change added a forecast $24M a year.
Which parts of the operation does BlendOpt include in a bottleneck analysis?
BlendOpt can model pits and seams, crushing and screening, stockpiles, wash plants, haulage between pits, rail stockyards and the product portfolio in one model. Constraints such as material that cannot be washed, limited haulage capacity and fixed and spot sales targets are all included. BlendOpt also handles operations with multiple processing plants, where it delivered 18% higher NPV over life of mine against an existing Xpac plan.
Take the stress out of planning—see how BlendOpt can transform your workflow
Do you optimize product placement into the market?
Do you know when Demurrage adds value (can you spot “value justified” demurrage)?
Do you know in what situations your stockpile quality models increase contract rejection risk?
Does your planning software require stable operations, predictable markets, consistent orebodies?
Can you run scenarios to understand your options?
Does your tactical scheduling software automatically synchronize with your longer term planning tools?
Do your schedules reflect conditions on the ground?
Are your schedules tossed in the bin on day 1?