1423
Maximizing Total Profit Margin by Optimizing
Coal Processing Operations
Peter Bethell, Steven Keim
Marshall Miller &Associates, Bluefield, Virginia USA
ABSTRACT: Optimizing coal processing operations provides significant opportunities for enhancing
the overall profitability of a coal mining complex. However, to fully realize this potential gain, a multi-step
programs of process improvement must be undertaken. Initially, senior management must obtain sales contracts
with quality specifications that match available coal resources. Failure to do so will result in a suboptimal
processing operation with severe coal losses. Secondly, plant operators must monitor the efficiencies of their
process circuitry to ensure that inefficiencies are identified and corrected. This necessitates routine sampling
and analysis coupled with feedback to management showing the impact of efficiency losses/gains in monetary
terms. Next, the mining complex must strive to maintain constant incremental qualities, ash for example in
ash-constrained contracts, in their cleaning circuits/plants to optimize plant yields. Typically, this effort requires
well-coordinated communications between personnel involved in all aspects of coal sales, extraction, processing
and blending. This extends to all operations sourcing the same sales contracts. Plant managers should use
the experience and expertise of qualified experts to help develop best practices for operating and maintaining
process equipment. Best practice plant audits should also be performed, including plant surveys, to ensure that
the standard operating procedures are being followed and are kept up to date. Lastly, senior management should
strive to continuously have circuit alternatives incorporating emerging innovations in process technology that
can offer improved efficiencies and/or lower costs evaluated. This article reviews the protocols involved with
each of the process improvement opportunities described above. Real-world examples are also provided to
illustrate how effective implementation of these protocols will positively impact the profitability of a modern
coal production complex.
Keywords: Efficiency, Optimization, Incremental Quality, Key Performance Indicators
INTRODUCTION
Coal preparation plants (CPPs) serve as a critical linkage
between upstream run-of-mine (ROM) coal extraction
mining facilities and downstream end-use consumers.
Because of this unique position, CPPs have a dramatic
impact on the overall profitability of the operations, as
seen in Figure 1. This plot shows the unit gain/loss in rev-
enue for each percentage point increase/decrease in organic
efficiency for a 1,000 tonnes per hour (tph) feed (dry) CPP
as a function of clean coal yield and coal sales price. As
shown, a hypothetical 1,000 tph plant operating with a 60%
clean coal yield and a coking coal price of $250 per tonne
would expect a gain/loss in revenue of about $11.4 million
per year for each one percentage point increase/decrease
in organic efficiency (OE). As such, operating at a higher
OE of 98% compared to a poorer OE of 90% results in a
Maximizing Total Profit Margin by Optimizing
Coal Processing Operations
Peter Bethell, Steven Keim
Marshall Miller &Associates, Bluefield, Virginia USA
ABSTRACT: Optimizing coal processing operations provides significant opportunities for enhancing
the overall profitability of a coal mining complex. However, to fully realize this potential gain, a multi-step
programs of process improvement must be undertaken. Initially, senior management must obtain sales contracts
with quality specifications that match available coal resources. Failure to do so will result in a suboptimal
processing operation with severe coal losses. Secondly, plant operators must monitor the efficiencies of their
process circuitry to ensure that inefficiencies are identified and corrected. This necessitates routine sampling
and analysis coupled with feedback to management showing the impact of efficiency losses/gains in monetary
terms. Next, the mining complex must strive to maintain constant incremental qualities, ash for example in
ash-constrained contracts, in their cleaning circuits/plants to optimize plant yields. Typically, this effort requires
well-coordinated communications between personnel involved in all aspects of coal sales, extraction, processing
and blending. This extends to all operations sourcing the same sales contracts. Plant managers should use
the experience and expertise of qualified experts to help develop best practices for operating and maintaining
process equipment. Best practice plant audits should also be performed, including plant surveys, to ensure that
the standard operating procedures are being followed and are kept up to date. Lastly, senior management should
strive to continuously have circuit alternatives incorporating emerging innovations in process technology that
can offer improved efficiencies and/or lower costs evaluated. This article reviews the protocols involved with
each of the process improvement opportunities described above. Real-world examples are also provided to
illustrate how effective implementation of these protocols will positively impact the profitability of a modern
coal production complex.
Keywords: Efficiency, Optimization, Incremental Quality, Key Performance Indicators
INTRODUCTION
Coal preparation plants (CPPs) serve as a critical linkage
between upstream run-of-mine (ROM) coal extraction
mining facilities and downstream end-use consumers.
Because of this unique position, CPPs have a dramatic
impact on the overall profitability of the operations, as
seen in Figure 1. This plot shows the unit gain/loss in rev-
enue for each percentage point increase/decrease in organic
efficiency for a 1,000 tonnes per hour (tph) feed (dry) CPP
as a function of clean coal yield and coal sales price. As
shown, a hypothetical 1,000 tph plant operating with a 60%
clean coal yield and a coking coal price of $250 per tonne
would expect a gain/loss in revenue of about $11.4 million
per year for each one percentage point increase/decrease
in organic efficiency (OE). As such, operating at a higher
OE of 98% compared to a poorer OE of 90% results in a