01 / Allocation
ROM allocation across multiple mines
Allocate ROM from each mine and mining area across stockpiles and plants so the combined operation delivers the most value, and test the downstream value of alternative mine plans.
Customer case study · Coal · Multi-mine
Multi-Mine Optimisation Software for Mining
BlendOpt is a configurable optimisation platform for mining value chains. Configured for multi-mine planning, it starts from the run-of-mine (ROM) material each mine supplies and optimises the ROM and product stockpiles, processing plants and outbound logistics as one value chain, deciding which products to make and how to blend them so product output lines up with the sales and marketing strategy.
Customer resultMulti-mine coal operation
Powered by BlendOpt
Outcome
+3 Mt a year
More production from new product and blending strategies for ROM from multiple mines, with improved margins via higher value products and a higher average sale price.
Products24 → 10
Processing plants3
OutboundBarge loading
Coal · multi-seamCase study below
What BlendOpt optimises
What BlendOpt optimises in multi-mine planning
Starting from each mine’s ROM, short-term and long-term plans are optimised together against margin, rather than treating each mine’s output in isolation.
02 / Products
Product portfolio strategy
Test which products to make and how many, so a simpler product range can still meet contracts and lift the average sale price.
03 / Blending
Blending across mines and seams
Combine material from several mines and seams, including multi-seam deposits, to meet product quality targets with better quality control.
04 / Markets
Alignment with sales and marketing
Match production to sales contracts and the marketing strategy for the short and long term, including price penalties and royalties.
05 / Value chain
Stockpiles, plants and logistics
Model ROM and product stockpiles, road haulage to processing plants and barge loading together, so a change at one site is valued across the whole chain.
06 / Scenarios
Scenario planning for expansion
Run scenarios for planned expansions and changing markets, and compare each production strategy against the current baseline.
Customer results
Multi-mine optimisation results
Results BlendOpt customers have measured against their existing plans, across mines, plants and product strategy.
+3 Mt / yr
more production from new product and blending strategies for ROM from multiple mines
Read the case study below →
+18% NPV
over life of mine, like for like, against the existing Xpac plan for multiple processing plants
Multi-plant life-of-mine case study →
35% → <5%
coal quality specification violations across a five-year plan
Coal quality consistency case study →
The whole value chain
Multi-mine planning in the context of the whole value chain
When ROM from several mines feeds shared stockpiles, plants and ports, planning each mine’s material on its own is rarely the best plan for the business.
BlendOpt takes each mine’s plan as an input and models the ROM it supplies with every stockpile, processing plant, logistics step and sales contract, so each allocation, blending and product decision is valued by its effect on margin across the whole operation. See how this works for integrated mine planning and scheduling, product portfolio optimisation, coal blending and collaborative optimisation.
Multi-mine value chainSeveral mines. One plan.
BlendOpt model
- MinesROM by seam
- StocksROM & product
- Plantsprocessing
- Logisticsroad & barge
- Marketproducts & contracts
Optimisation objective
Maximise margin across the operation
Each allocation and blending decision is valued by its effect on margin across the ROM from every mine and every stockpile, plant, logistics step and sales contract.
Customer case study · Coal
Case study
Multi-mine product strategy
3 Mt a year more production across multiple mines
A coal operation with multiple mines, three processing plants and barge loading used BlendOpt to rework its product portfolio and blending strategy in line with its sales and marketing plans.
- +3 Mtproduction a year
- ↑ ASPmargins improved
- 24 → 10products
Before BlendOpt
See the value unlocked →
Spreadsheet planning
Multiple seams, many unique sale contracts, large inventories, price penalties and royalties, and low sale prices.
Full case study
PDF
Download the case studyMulti-mine optimisation (PDF)
The challenge, solution and value unlocked for a multi-mine coal operation, as a PDF.
Customer success criteria achieved
- Consistent planning outcomes
- Reduced human data errors
- Transparency for management
- No more spreadsheet planning
01
The challenge
The customer’s value chain consisted of multiple mines with three main mining areas of operations, each with separate ROM, product stockpiles and barge loading facilities. The customer had plans to expand their operations in the medium term. Coal is road transported to one of three processing plants and then barged.
The operation is characterised by multiple seam complexity, a large number of unique sale contracts, large inventories, and cost drivers such as price penalties and royalties, with low sale prices. An optimisation of product strategy was needed to improve margins and cash flow.
02
The solution
BlendOpt was used to model and explore a product portfolio and blending strategy that improved margin projections in alignment with the customer’s sales and marketing strategy for the short and long term, over the customer’s baseline.
03
The value unlocked
BlendOpt demonstrated new product and blending strategies resulting in 3 million more tonnes of production per annum, with improved margins via higher value products and increased ASP, and improved product quality control.
Paradyn achieved the customer’s success criteria for a new value-chain optimisation software solution: consistent planning outcomes, reduced human data errors, transparency for management, and no further need for spreadsheet planning.
FAQ
Multi-mine optimisation FAQ
How BlendOpt takes ROM from several mines as its starting point and plans the plants, stockpiles and logistics they share as one value chain.
What is multi-mine optimisation?
Multi-mine optimisation is planning the stockpiles, plants and logistics that several mines share as one value chain, starting from the ROM each mine supplies, rather than as separate operations. It decides how ROM from each mine is allocated and blended and which products are sold, so the combined operation earns the best margin. The mine plans themselves come from the customer’s mine planning tools, and BlendOpt can evaluate the downstream value of alternative mine plans. BlendOpt does this across both short-term and long-term planning horizons.
Why optimise ROM from several mines together instead of one mine at a time?
Mines that share processing plants, stockpiles, transport and customers affect each other, so a downstream plan that looks best for one mine’s ROM can reduce value elsewhere. Optimising the shared chain together lets material from different mines and seams be blended to meet contracts and avoid price penalties. In one coal operation this approach delivered 3 million more tonnes of production per annum with improved margins.
How does multi-mine optimisation align production with sales and marketing?
BlendOpt models the product portfolio, sales contracts, prices, penalties and royalties alongside the ROM supplied by each mine and the plants. It then finds a product and blending strategy that supports the sales and marketing strategy for the short and long term. Plans can be compared against the current baseline to show the margin difference.
Can reducing the number of products improve results?
It can. In the multi-mine coal case study, BlendOpt helped reduce the product range from 24 to 10 while improving margins through higher value products and a higher average sale price. A simpler portfolio also made product quality easier to control.
Can BlendOpt replace spreadsheet planning for multi-mine operations?
Yes. In the multi-mine case study, BlendOpt eliminated the need for spreadsheet planning, reduced human data errors, gave management more transparency and produced consistent planning outcomes.