Cliffs Natural Resources Pty Ltd (Cliffs) operates iron ore mines in the Koolyanobbing region of Western Australia. Ore is mined from three separate hubs and trucked to Koolyanobbing. There it is crushed and screened to lump and fines finished products and railed to Esperance port for export to Asian customers._x000D_
Cliffs is renowned in the marketplace for its consistent product quality. In 2010, 9 Mt of ore was exported to Asia.Over the last three years, Cliffs has systematically refurbished its product quality system (PQS), to improve efficiency of production while maintaining its high standard of product quality._x000D_
Particular attention has been given to reducing inventory, which has required significant modifications to the production process design.In redesigning the production process, emphasis was placed on maximising the application of the inherent blending in each of the production process steps and dedicated blending was only introduced where essential. Simulation modelling and statistical analysis of process capabilities were utilised to develop a system that optimises inventory, minimises rehandle, eliminates several decision-making steps and maintains a pull focus throughout the value chain.The new planning functions are now fully integrated and effectively control long-term grade variability rather than relying on long-term stockpiling. The production process design and the daily crusher blend plan are used to control short-term grade variability. With the upgrading of the planning processes the accuracy and consistency of algorithms for lump per cent and lump and fi nes grades became more important and an increased geometallurgical function has been added to the company.The continuous stockpile management system was upgraded to increase the effectiveness of the daily crusher blend planning process and is now the sole intervention point in the production process for grade-based decisions. Grade control systems were modified to utilise advances in software and geostatistics to deliver accurate short range planning models. The reconciliation and sampling systems have also been refurbished with an emphasis on practical application and feedback loops.Accountability and transparency are provided by management reports that are generated from a centralised data warehouse and the introduction of a corrective action system._x000D_
Standardised reports are available to all stakeholders and a quarterly KPI scorecard assists the management review process.The successful rejuvenation of the PQS has culminated in operational efficiency through the implementation of an integrated end-to-end process flow. Shareholder value is maximised through maximising recovery of the resource and minimising costs._x000D_
Customer focus is maintained by reliably delivering product with acceptable and low grade variability.