Arif Hindarto

Mine Planning Engineer – PT ANTAM (Persero) Tbk

Open Cut Mine Planning and Operational Excellence

21 – 24 February 2012, Resorts World Sentosa, Singapore
PRESENTATION OUTLINE

1. Introduction
2. Objective
3. Planning Criteria Considered for The Washing Plant
4. Initial Mine Planning of Tayan Bauxite Mine
5. The Obstacles of The Initial Plan Implementation
6. Movable Washing Plant as The Alternative Strategy
7. Comparison between Fixed and Movable Washing Plant
8. Conclusion
INTRODUCTION
CORPORATE

 Antam is a diversified mining and metals company, export-oriented,

limited liability state-controlled company since 1968 with the merger of
several single commodity mining companies. With operations spread
throughout Indonesian archipelago, Antam undertakes all activities from
exploration, excavation, processing through to marketing of nickel ore,
ferronickel, gold, silver, and bauxite.
 The company has long term loyal blue chip customers in Europe and
Asia. Antam has formed several joint ventures with international partners
to profitably develop geological ore bodies into profitable mines.
 In 1997, the company conducted an Initial Public Offering (IPO) and
listed its shares on the Indonesia Stock Exchange and 35% were sold by
the government to the public, to raise money for a ferronickel expansion.
In 1999, Antam listed its shares in Australia as a foreign exempt entity
and then in 2002 augmented its status to the more stringent ASX Listing.
LOCATION OF ANTAM’S OPERATION
TAYAN PROJECT LOCATION

SERIMBU
P. Lemukutan KABUPATEN
KABUPATEN SANGGAU
P. Temaju
PONTIANAK
P. Damar
MEMPAWAH MAND O R SO SO K
NGABANG
P. Sitinjan P AH AUMAN
SUNG AIP INYUH BAT ANG T ARANG
SANGGAU
P. Datu
0
0 00’ TAYAN

s
ua
K
ap
Pun
ua
s ap
gur
Besa Ke K MELIAU
r ci
l
T ERAJU

T ERENT ANG
KUBU BALAIBERKUAK

SIMP ANG D UA

KABUPATEN
0
1 00’ LS KETAPANG

PROJECT LOCATION
TAYAN RESOURCES DISTRIBUTION

SERIMBU
P. Lemukutan KABUPATEN
KABUPATEN SANGGAU
P. Temaju
PONTIANAK
P. Damar
MEMPAWAH MAND O R SO SO K
BLOCK
B
NGABANG
P. Sitinjan P AH AUMAN
SUNG AIP INYUH BAT ANG T ARANG
SANGGAU
P. Datu
0
0 00’ TAYAN

K
ap ua
s BLOCK C
Pun
ua
s ap
gur
Besa Ke K MELIAU
r ci
l
T ERAJU

T ERENT ANG
KUBU BALAIBERKUAK

BLOCK A
SIMP ANG D UA

KABUPATEN
0
KETAPANG
BLOCK D
1 00’ LS

BLOCK E

Page 7
TAYAN BLOCK A RESOURCES DISTRIBUTION

Embaloh
Village

Semerah
Village

Trans
Kalimantan
Road

Page 8
TAYAN BLOCK A RESOURCES DISTRIBUTION

TAl2O3 Iso-grade of Block A Tayan Bauxite Resources

Page 9
TAYAN BLOCK A RESOURCES DISTRIBUTION

RSiO2 Iso-grade of Block A Tayan Bauxite Resources

Page 10
Tayan Bauxite Lateritic Profile

Typical Profile of Bauxite Ore Layer in Tayan Area

Page 11
OBJECTIVE

Page 12
 Initiating a new strategy as the alternative of
Fixed Washing Plant scenario to reduce the cost
and minimize the social risk in Tayan Bauxite
Mine Project
 To investigate the benefit opportunity of
applying the Movable Washing Plant strategy to
replace the Fixed Washing Plant scenario

Page 13
PLANNING CRITERIA
CONSIDERED FOR THE WASHING PLANT

Page 14
Lateritic Bauxite Mine & Washing Activities

CF = Concretion Factor
Land Clearing
WBx (WMT) X 100 %
=
CBx (WMT)
Top Soil  50 %
Stripping

Overburden
Removal
Soil Crude Bauxite
Spreading (CBx)
Ore Getting
Back
Washed Bauxite Feeding to
filling Cbx Ore (WBx) Ore CGA PLANT
Washing about 50% of Cbx

MINED To Residue
OUT AREA Residual Slurry Sedimentation
Pond

Page 15
Flow Chart of Bauxite Ore Material Balance

Flowed to The Residue Pond

Feeded to Chemical Grade

Alumina (CGA) Plant
Criteria of the Washing Plant Placing

1. Placing the washing plant (WP) near the mining front to minimize the hauling
distance of the crude ore (with 50% impurity waste)
2. The WP initial location should be near the first mining block that also close to
CGA Plant location to minimize the hauling distance and cut the capital cost
in the starting period by reducing the amount of dump trucks for ore
transporting, but it must still do the ore blending to preserve the quality of
washed bauxite feed to the CGA plant.
3. The WP should be near the adequate water source for the ore washing
process
4. The WP residue must be flowed easily to the nearest lower area
(valley/swamp area) with adequate capacity of slurry sedimentation pond to
accommodate volume of washing residue.

Page 17
Criteria of the Sediment Pond

The basic principle of how the sediment pond works is that the slurry of
sediment residue produced from ore washing process will be flowed and
settled in the sediment pond. When the slurry is contained in the pool, there
is a separation between the water and sediment mud/solid because of the
solid will be settled in the bottom of the pond. Then water content of the
slurry will flowed to the river or re-pumping to the WP for the next washing
process.
To estimate the effective size of the sediment pond, a proper observation and
data collecting is needed, including:
• Residual sediment tonnage produced from the ore
• Ratio of solids and water in the slurry
• Average local rainfall
• Washing efficiency

In developing the sediment pond, the mining area around the pond must start from the
lowest level to the direction of the hill peak to increase the sediment pond’s capacity
and avoid losing resources due to bauxite dump by the sediment

Page 18
INITIAL MINE PLANNING
OF TAYAN BAUXITE MINE
(Centralized/Fixed Washing Plant Scenario)

Page 19
Pit Design on Hill no.2 and Hill no.3

Page 20
Centralized Washing Plant and Residue/Slurry Pond

Ore Body
CGA Plant
Area

Katuk Lake
Segelam
Lake

Page 21
Centralized Washing Plant and Residue/Slurry Pond

Page 22
THE OBSTACLES
OF THE INITIAL PLAN IMPLEMENTATION

Page 23
Implementing the Fixed Washing Plant Scenario will take several
consequences as follow:
1. The cost of CBx hauling to the WP location will be relatively high due to 4.5 km
distance from mining front to WP and the 50% clayey impurities contained in it.
2. The Centralized Washing Plant will need the Massive Slurry Sediment Pond
with a big volume of cut and fill civil work to build 15-20 m dam height. The
pond will cover two villages and some segment of Trans Kalimantan Road.
3. Need to relocate the people of Semerah and Embaloh Village. The villages
relocation plan is still in the negotiation process because some residents of
Embaloh are still not willing to be relocated.
4. Need to relocate some segment of Trans Kalimantan Road that will be covered
by the Massive Slurry Sediment Pond.

Page 24
Resettlement & TKR Relocation Plan at Bukit 19 Area

Semerah
Townsite

Embaloh
Townsite

TKR Existing

New Segment
TKR

TKR Existing

Resettlement Plan
Area

Layout Relocatiion
Area
MOVABLE WASHING PLANT
AS THE ALTERNATIVE STRATEGY

Page 26
Basic Idea

• The Bauxite Resource of Antam’s Tayan project Block A area is spread

on many hills separated by swampy valley. It need an effective strategy
to reduce the hauling distance, especially for the crude bauxite with 50 %
impurities.
• Block A area is plenty enough with surface water resource to
accommodate the operation of washing plant in several locations.
• Many swamps/valleys spread on this area can be used as sediment
ponds to accommodate the slurry residue from the nearest washing plant
for certain period.
• By putting some washing plants closed to the mining front, it can
minimize the crude bauxite hauling distance to it washing location.

Page 27
MOVABLE WASHING PLANT SCENARIO

Using two Washing Plant units

with 250 tons WBx/hour of each
capacity will be operated
simultaneously

WP1
Crude bauxite (CBx) ore mined
from Block A Tayan will
transported to the nearest
Washing Plant (WP) location
WP2

The average distance for CBx

hauling from the mining front to
WP3
WP location is 1.5 km
WP4
It reduce the CBx Hauling
distance from 4.5 km to 1.5
km
• Reduce hauling cost
• Reduce amount of CBx
Dumptrucks needed
Page 28
COMPARISON BETWEEN
FIXED & MOVABLE WASHING PLANT

Page 29
Fixed WP Movable WP

Page 30
Operational and Social Aspects
Fixed WP
1. Using a single washing plant unit to
accommodate all excavated bauxite
ore from Tayan Block A area
2. Average distance of CBx ore
hauling is 4.5 km
3. Need the massive sedimentation
pond for the washing residue slurry
with15-20m dam height.
4. Relocation of Embaloh and
Semerah Villages is a must for the
scenario implementation
5. Need to relocate some segment of
Trans Kalimantan Road (TKR) that
will be covered by the WP residue
sedimentation pond.
Page 31
Movable WP
1. Using two washing plant units at the
same time, and its will move to the next
placement location after certain period
2. Average distance of CBx ore hauling is
1.5 km only
3. The slurry will be distributed several
smaller ponds rather than single big
pond, its only need 5-7m dam height.
4. The relocation is optional, the movable
WP scenario can be implemented
without relocation.
5. TKR relocation is also optional. If
needed, it requires smaller volume of
cut & fill work and smaller capital cost
compared to the Fixed WP scenario
Investment Cost
SUMMARY OF INITIAL CAPEX

* Movable WP Sc2 is using assumption of no resettlement/relocation for Embaloh Village

Movable WP Scenario reduces the CAPEX about US$ 0.8 M – 1.9 M

Page 32
Operating Cost
Operating Cost Summaries to produce 1 ton WBx Ore (about 2.3 tons CBx & 2.3 tons OB)
SUMMARY OF OPEX Fixed WP Mov. WP
Variabel Cost USD/ton 8.78 7.86
Mining USD/ton
Washing Plant USD/ton
Replantation USD/ton
Water Consumption USD/ton
Mining Erosion Preventive USD/ton
Supporting Equipment USD/ton
Man Power USD/ton

Fixed Cost USD/ton 3.57 3.47

Dead Rent Fixed Contribution of Mining Right
PBB (Land and Building Taxes)
Maintenance
Fire Insurance for Washing Plant Equipment and Building
Electrical Consumption
Man Power
Fuel for Light Equipment
Rental Light Equipment
Safety and Environment
Quality Control (sampling, preparation & analysis)
Post Mining

Other Cost 1.29 1.23

Corporate Social Responsibility USD/ton 0.50 0.50
Royalty 3.75% USD/ton 0.79 0.73

TOTAL COST USD/ton 13.63 12.57

Movable WP Scenario reduces the Operating Cost about US$ 1.06 / ton WBx.
With production rate of 851,000 tons WBx/year for 20 years, roughly it will save US$ 18.04 Million
Operating cost for each periods is different due to the changing of its hauling distance & prod. rate,
this calculation is using the average distance to meet the average
Page 33 estimated cost for each scenario
CONCLUSION
Conclusion

1. Movable Washing Plant scenario is an appropriate strategy to replace the

Centralized/Fixed Washing Plant scenario as the initial plan.
Movable WP reduced the following costs :
• Capital cost, saving about US$ 0.8 – 1.9 million, especially by decreasing
the investment for heavy equipment (hauling truck)
• Operational cost, it saving US$ 1.06 / ton WBx. Roughly, it will save about
US$ 18.04 million for 20 years ore supply to Tayan CGA Plant
2. Movable WP also gives the solution of Tayan project’s social risks from
resettlement plan of Embaloh residents and Trans Kalimantan Road relocation.
By this scenario, the project is still able to be run without the resettlement and
relocation.
3. Operationally, Movable Washing Plant scenario is also more flexible to be
applied rather than the initial plan.

Page 35
TERIMA KASIH
THANK YOU