AU2004100984B4 - Primary Products Production System and Method - Google Patents

Description

18 Nov 2004 17:34 Smoorenburg Patent L Trad 03 9712 0159 p.3 0 1 0 SPRIMARY PRODICTS PRODUCTION SYSTEM AND METHOD O FIELD OF INVENTION Z The present invention relates to a primary product production system, and 00 o a method of supplying niaterial for a primary product production system. In particular, the present invntion Is directed to the provision of raw materials in a Smanner that provides, int r-alia, an Improvement in the delivery and/or selection 00 0of supplied materials used in primary product production systems and methods.

SIn one particular form, the present invention relates to primary product manufacturing, and a method of supplying materials used in the production of S 10 primary product. In anoter particular form, the present invention relates to the N production of primary products resultant from the metal making and/or coal ind ustries, BACKGROUND ART Systems and methods used for the supply of raw materials and the production of a primary froduct are generally based on a large scale. For example, in the productior of Hot Metal, raw materials, such as iron ore and coal are sourced from separat mines, which are usually geographically remote from the foundry site where the Hot Metal is produced. These bulk raw materials are then usually transported Ireat distances by road and/or rail andlor ship and a system of cranes and co veyors to the foundry. However, it Is current practice also to stockpile the raw materials so that the supply of the raw materials into the foundry can be coordinat d with foundry output and customer orders. In other words, raw materials are 4enerally mined and transported to a stockpile near the foundry or a remote site ur til they are required by the foundry.

In business terms, stockpile is considered to be an under-utilised asset.

In effect, there are costs 'ssociated with the provision of a site to store the raw materials, lost opportunity eats in terms of cash flow, in that expenses have been incurred in the mining/s pply of raw materials, including transport, but the materials have not yet been converted into a saleable commodity and customers have not yet purchased the commodity, meaning the foundry has not yet had the benefit of cash flow from commodity sales. There is a need to better utillse assets.

COMS ID No: SBMI-01003719 Received by IP Australia: Time 18:49 Date 2004-11-18 18 Nov 2004 17:34 Smoorenburg Patent Trad 03 9712 0159 p.

4 o 2 Where customers lave specific needs, such as a need for the supply of O Hot Metal having specifi specifications and composition, the foundry usually Z supplies Hot Metal falling within a range of parameters as set out, usually, in a 12 00 month supply contract. T e contract may provide a relative premium price for Hot Metal having a certain pr ferred composition, and also provide a relatively poor price for Hot Metal not h ving the preferred composition. It is known that the 0 characteristics of raw materials vary from mine to mine, and even vary within each mine. Thus a stockile of material from a mine or a number of mines will include possibly great vaiations in the raw material characteristics. When the stockpile Is fed to the four dry, due to the variations in the composition of the raw N materials supplied to the foundry, it is difficult to provide a relatively consistent grade of Hot Metal and thus, the foundry has difficulty in producing Hot Metal of a quality within a customer's contract range and may in fact, produce Hot Metal which falls outside the range acceptable to customers. This Hot Metal outside a customer's range is difficu t, if at all possible, to sell and thus, represents another under-utilised asset of the business, De-phosphorising plants have been utilised in the past, to overcome the problem of the productior of Hot Metal which Is unacceptable to the foundry's customers. This involves further and/or additional processing the Hot Metal. Not only does this involve the construction and operation of another plant, but the reprocessing involves moving the liquid Hot Metal to this intermediate plant, then bubbling an inert gas plus the de-phosphorising agent (eg calcium fluoride or barium fluoride) through the Hot Metal. This chemical action separates the phosphorous into a slag vhich is skimmed off prior to returning the Hot Metal to the processing chain, all pf which incurs further expense in the supply of Hot Metal to customers. Thera is a need to enable the supply of Hot Metal which is more constituent in meeting specified parameters of customers.

Further improvements are also considered necessary In the manner in which materials are supplied to the foundry. Current practices of supply of material to a foundry, suc as the supply chain, are primarily based on a linear programming technique. his is a supply chain of raw materials based largely on a lowest cost delivery basi In this regard, Figure 1 illustrates an example supply chain for the supply of th4 main raw materials for the production of Hot Metal.

COMS ID No: SBMI-01003719 Received by IP Australia: Time 18:49 Date 2004-11-18 15/08 2005 MON 15:57 FAX IP AUSTRALIA A005/018 3 Mines 1, 2 and 3 indicate raw material sources. They may be iron ore, coal and/or other materials. These are transported 7 to stockpiles 4,5 or delivered to a port 8 for transport by a ship. At some point in time, the materials are delivered to the foundry either form the mine 1 directly, from stockpiles 4,5 and/or the ship from port 8. The materials are provided to the foundry for the production of Hot Metal. As noted above, the present supply chain arrangements tend to result in the production of Hot Metal of varying quality of characteristics. There is therefore also considered to be a need to provide an alternative and/or improved supply chain.

SUMMARY OF INVENTION The present invention provides, in one aspect, a system and or method adapted to determine a supply chain of raw material(s) in a process of primary product production, the system including first means for creating a new supply chain for each order, second means for repetitively and/or continuously creating a new supply chain for the order in accordance with at least a portion of the time taken to move the raw material(s) from source to a final destination.

Other aspects and preferred aspects are disclosed in the specification and or defined in the appended claims, forming a part of the description of the invention.

In essence, the present invention is based on determining a new created supply chain for each order of each customer to be produced and on an automatic/repetitive basis via computer aided technology. This stems from having a number of 'assets', preferably each 'asset' in the supply chain connected to an information and/or event management system and/or system chain system.

In fact, the present invention enables a supplier of a primary product to source or mine raw materials on the basis of knowing which order(s) the materials are destined to fulfil, and which thus enables the supplier of the primary product to source or utilise existing materials of a particular quality and/or composition and/or availability, knowing that these particular materials will enable production of a relatively quantifiable customer product. The primary product supplied may be at the end of a production process, or supplied from any point in/during the production process, dependent on customer requirements. The present invention may also include known delays calculated on statistical information, for example COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 15/08 2005 MON 15:57 FAX IP AUSTRALIA Q006/018 b 4 in-foundry or in-refinery processing delays, in order to determine a relatively correct time for raw material or product flow through the supply chain and/or for filling the customer order from initial sourcing of raw materials.

_The present invention also enables a number of advantages to be realised when compared to prior art arrangements and current practices, such as: Increased predictability of Hot Metal, stainless steel and aluminium 00 chemistry and coke specifications. Knowing the requirements of a customer's order, it is possible to source various raw materials and more exact qualities for each of those materials in order to more closely meet the customer order.

Reduced variation of Hot Metal, stainless steel and aluminium chemistry and coke specifications. Furthermore, knowing the requirements of a customer's order, raw materials can be sourced and their delivery coordinated substantially simultaneously to a foundry, so that the correct ingredients for the customer's order are provided.

S Savings in costs in supply chain. The present invention enables the reduction or elimination of stockpiles, and also provides alternative supply chain(s) based on unpredictable or unexpected events.

S Increased availability/knowledge of assets in supply chain.

9 Increased yield from coal, bauxite, Alumina and iron ore reserves, and from blended beds of coal and iron ore. This transpires due to a reduction in delivery of raw materials and Hot Metal production not meeting customer requirements.

0 Extended economic viability of assets in supply chain. This result is due to the improvement in supply chain costs, thus assets considered traditionally unviable, may now be considered viable.

Reduced safety risk to people, based on a forecast of mine operations and automatic early warning of mission safety critical states generated from the local model and electronic memory of designed functional capability compared with history of use and with projected and/or planned usage and related to wear and fatigue scenarios based around known performance envelopes.

COMS ID No: SBMI1-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 18 Nov 2004 17:35 Smoorenburg Patent L Trad 03 9712 0159 p.7 Reduced environm4ntal impact resulting from a reduction in the need for stockpiles.

Scaleable, becau the fully interconnected, massively parallel, modularised architecture can be used at all levels of the CM model (from sensors up to prouction and planning and back down to the actuators) and because he information may be communication via telecommunication systems and the Intemet and Is based on physical and business paramete so it is not constrained by a protocol and is applicable to a range of makes and models of processing plant and equipment.

Real-time dlstributed operations so that the controlling logic is located at the point of control making it flexible and therefore being able to respond to perturbations be ore the overall process is disturbed and/or before the end result or goa is changed or adversely affected, updates to the operations can be introduced without reducing the performance of the process, increasin Ihe robustness of the process to local performance degradation such a asset wear or failure or loss of resources.

S Reduced apparent omplexity of the supply chain or continuous production and refining proce sng of bulk raw materials via the system so that it is easier to Install, orate and maintain the assets and resources in the supply chain. The benefits are increased availability of the supply chain and an Increased ield from the raw materials being processed by the supply chain for a g von productivity and capacity.

Complex resources planning reduced. The present invention provides less complexity on the art of operators and creates strategies for scenarios such as mine roof ollapse, equipment breakdown, coal, bauxite, alumina and iron ore specifi ation variation, customer requirement changes, market size and economi asset value, stripping ratios, ships being prevented from leaving or arri ng at port, etc.

In terms of the pesent invention, an 'asset' includes raw material(s), material reserve(s), stock ile(s), blended bed(s), haulage, mining equipment, port loading and unloading sts, foundry(les), reflnery(ies) and/or operational expertise.

COMS ID No: SBMI-01003719 Received by IP Australia: Time 18:49 Date 2004-11-18 15/08 2005 MON 15:58 FAX IP AUSTRALIA [a 007/018 6 c1Throughout the present specification, 'primary product' means an output of a process in the steel making and/or coal industries, such as any one or a combination of, but not limited to, hot metal, pig iron, slab, clean coal, blended coal, coke, lump and nuts, blended lump and fines sinter, aluminium, stainless steel.

Preferred embodiments of the present invention will now be described with oO 0 reference to the accompanying drawings, in which: Figure 1 illustrates a prior art supply chain for raw material, Figures 2A and 2B illustrate an embodiment of the present invention, Figure 3 illustrates, by way of a time line, a representation of the way in Swhich the present invention is implemented, in one form, Figures 4A, 4B and 4C illustrate examples of the present invention as applied to a Hot Metal supply chain inasmuch as different supply strategies and product compositions are illustrated, Figures 5A and 5B illustrate yet a further representation of the present invention, Figure 6 illustrates yet a further example of the present invention, Figure 7 illustrates yet another example of the present invention, and Figure 8 also illustrates another example of the present invention.

DESCRIPTION OF PREFERRED EMBODIMENTS Referring to Figure 2A, one overall generic description of the present invention can be made. A customer 10 places an order of processed product having specifications as set out in the order 11. The order includes, typically, quality and quantity of processed product, such as pig iron or other product as required. Subsequent changes 12 may also be made. This information is input to a database or computer 20. The computer or database then determines from this order which sources of raw materials or ore bodies, represented as 'assets 1 to n' and denoted by numeral 15 are to be used to supply raw materials to the foundry or refinery in order to produce a primary product (for example hot metal, aluminium, stainless steel or blended coal) which fulfils the customer's order and/or changes. The raw material(s) may be supplied from an 'asset' whether from only one asset or a number of assets.

COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 16 Nov 2004 17:3G Smoorenburg Patent Trad 03 9712 0159 p.9 7 Referring to Figure B, which represents an asset, such as a mine site, this illustrates that within an a st, there may be regions of raw materials of different compositions or characte stics (T1, T2, T3, T4 etc). These regions may also be listed as an 'asset' for the purpose of the present Invention inasmuch as they may be included as a supply 4ource for raw material(s). Equally, it may be possible that within a stockpile (nct shown) different compositions or characteristics may also be located.

Also, known time d lays (for example based on statistical or industry data) for raw material or primary product delivery or in-refinery or in-foundry processing requirements/delays can te factored into meet the customer's delivery schedule.

For example, transport ti es or delays and foundry processing or production times can be taken into account in meeting the customer order requirements.

These times can be utilisd in determining the scheduling and management of supply as put to the raw material source.

The present Invent on, through its access to certain data, such as asset information, delays and various scenarios (provided or calculated) provides a determination and/or cordination or primary product to meet customer requirements.

This determination of the source of raw materials is possible because information regarding each 'asset' is provided or gathered locally, and on a continuous or periodic basis. In one embodiment, each asset is 'tagged', in other words, identified uniquely. This unique tag may be associated with the particular asset throughout its journey to the end product and customer. This information is provided in the present invention at a local point 14 and/or by means of a 'tag' denoted in Figure 2 as Al, A2, A3 through to An, each corresponding to their respective asset. The ta; information may be reported daily and/or at certain points, as is required, in the overall product delivery and production process. The tag also enables the mov ment of the asset(s) to be monitored throughout the production delivery and p ocess. The information provided locally at 14 is, for example: Details describing the asset's fundamental physical properties and functional capabilitis based on the system-wide business performance metrics: in the particular case of coking coal for Hot Metal, typical COMS ID No: SBMI-01003719 Received by IP Australia: Time 18:49 Date 2004-11-18 18 Nov 2004 17:37 Smoorenburg Patent L Trad 03 9712 0159 8

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p. examples are ash, sulphur, phosphorus, vltrinite, volatile matter, fluidity, crucible swell nume r, moisture, sizing. Other information as is required may also be descri ed, Business paramet rs to be optimised by the system-wide solution and managed locally at the asset: namely variable and fixed operating costs, asset's mission life and return on investment, productivity and yield and availability, Presence of raw mt erials in the processing assets, History of operatio al use and performance of the asset, Details describing tie designed operating envelop of the asset, Schedule of planned use of the asset, Operational status of the asset including current status, history and forecast status against schedule of planned use of the asset, Asset's physical configuration as options during the phase when a solution is being sought, as the proposed set points and/or utilisation strategy when a s stem-wide solution has been found, and as the current operating s t-up during operational use, Asset's operationa capabilities during the phase when a solution Is being sought and the functional set-up when a solution is being executed, The processing step being performed by the asset in terms of when the step Is being perfo med, the processing being done on the material by the processing asset the geographical location of the asset and/or the material being processing by the asset.

It can well be appr ciated that this 'local Information' does not need to be stored 'locally'. For exanple, using well-known communication techniques it is understood that the 'local nformation' may be stored or be accessible at any point in a networked system. T e 'local' information simply is required to relate 'locally' to the particular asset.

Based on this local information 14, the present invention has in its database 20, or has acce s to 14, data concerning the assets 1 to n. Thus, it is possible to know that a certain quantity of raw material having a certain

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COMS ID No: SBMI-01003719 Received by JP Australia: Time 18:49 Date 2004-11-18 I i 15/08 2005 MON 15:58 FAX IP AUSTRALIA 00os/01 9 r composition which is required for a specific order is able to be sourced from an 0 asset or a number of assets. The raw material may also be sourced from a stockpile or mine, where the local information 14 regards stockpile or mine Scharacteristics and related data.

Based on this knowledge of where raw material can be sourced, a schedule for delivery of raw material and coordinating the arrival of raw material 00 0to the blast furnace (where possible) is determined. It may also be advantageous Sfor a particular raw material to be 'reserved' for particular client or order. In other words, it is possible to ensure a specific raw material or quantity is for only specific orders or customers.

C Figure 3 illustrates schematically, by way of example, a schedule. The compositions and quantities of each raw material in order to produce the Hot Metal is taken in this example to have already been determined.

In parallel are coal and iron ore time lines, in weeks. At time 21, iron ore is sourced from Port Hedland. At time 22, coal is mined. It is to be understood that the iron ore and/or coal may be sourced from a plurality of assets. For simplicity, we describe one asset source for each of iron ore and coal. The present invention is not to be so limited, however. From Figure 3, it can be seen that the iron ore and coal have been scheduled to arrive substantially at the same time 24 at the steel works, for example Port Kembla. The coal is coked in coke ovens at time 27, fed at time 26 to the blast furnace 28. The iron ore is also fed to the blast furnace at substantially that time. At time 25, Hot Metal can be obtained from a tap hole in the blast furnace. What the present invention provides, in one aspect, is the ability to have relatively good knowledge of the output from the blast furnace, in terms of quality, quantity, etc, given that there is provided relatively good and detailed data regarding the input raw materials to the furnace.

The present invention also reduces or eliminates the need for stockpiled materials, the raw material(s) may be fed directly to the furnace if they are needed. If there is a given time delay for the steel works, based on data from the steel works, the time delay could be factored into a schedule for the delivery of product to the customer.

Figures tables 4A, 4B and 4C illustrate examples of the determination undertaken by the present invention, and as shown in the Tables 4A, 4B and 4C, COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 15/08 2005 MON 15:59 FAX IP AUSTRALIA 009/018 0 Sthere are example product compositions and from which 'assets' or ore bodies Sthey are sourced. Figures 4A, 4B and 4C also illustrate that with the information 14 or tag associated with each asset, it is possible to provide a number of possible raw material and/or product supply/delivery to customers depending on events, as yet unpredictable in mining and product delivery operations. For example, what if, with reference to Figure 4A, the 'Appin Mine, Appinwashery' 00 00 was unable to fulfil the delivery of raw material as requested in the initial determination of the present invention. The result is illustrated in Figure 4B. The present invention, in continuously or periodically making determinations for each order and/or customer, enables a fresh determination to be made for such events.

C-i These determinations may also be made by way of predictions based on statistical information and/or anticipated or possible scenarios. In the case illustrated, some raw material is now sourced from 'WestCliffMine, WestCliffWash' and some raw material is sourced from 'TowerMine, BCWashery'.

In the situation where a fresh determination is made and raw material is altered, say, due to the need for management of unexpected events, the present invention may have to find a raw material or a number of raw material source(s), that whilst not being exactly the same as the raw material which cannot be delivered, are the most closely matched or the most commercially effective, compared to the raw material which cannot be delivered.

In fact, in one embodiment of the present invention, it is contemplated that provision is made for the determination of a relatively large number of (even 90 or more) alternative supply chains, each alternative supply chain being determined bearing in mind a change in the initially selected supply chain. In the example above, the 'Appin Mine Appinwashery' was unavailable. The present invention, in this form, determines, in advance, an alternative supply chain to meet such a scenario, and thus the customer's order can continue to be met by way of utilising this determined alternative scenario.

This is done periodically, continuously and/or automatically by the assets running forward predictions derived from the information provided locally at 14 and/or system of the present invention running predictions to generate scenarios when particular assets and supply chains would not be viable and when assets and supply chains would be at optimal utilisation. This results in the generation of COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 15/08 2005 MON 15:59 FAX IP AUSTRALIA 010/018 b 11 Sasset portfolio management strategies for current and future customer requirements. For example, scenarios may be generated based on one or a number of events, such as floods, labour force disruptions, earthquakes, geo- _mechanical failure of a mine, changes in water tables, equipment failure, road or rail infrastructure disruptions, weather conditions, technical changes, processing times or delays, delivery/transport times or delays, likely customer order changes, 00 foundry efficiency or delays or updates.

Figure 4C illustrates the result of a fresh determination in which the product characteristics have been changed. The phosphorous needs to be less than or equal to 0.005%. Resultant changes in the raw material sources can be seen as C a consequence.

Referring to Figures 5A and 5B, another embodiment of the present invention is shown. By way of applying the essence of the present invention, it can be seen that the 'primary product' supplied in accordance with a customer's order does not need to be the final output of, for example, a steel making process. In fact, the present invention serves to provide a newly created supply chain for each primary product supplied in accordance with a customer order.

Thus the present invention selects any one of, or a combination of, assets Al to An in a manner that enables supply of the customer order.

The customer order may include coking and/or energy coal 29 from one or a number of assets, lump and/or fines 30 from one or a number of assets.

Equally, the order may seek blended coal 31, coke, nuts and/or breeze 32, hot metal and/or pig iron 33, sinter 34, and/or steel 35. It is to be understood that the primary product is a raw material(s) which has been processed or refined in some form. The invention is not limited to only these primary products, and may include any primary product within the coal, aluminium and/or steel making industries.

Figure 6, illustrates another example of the present invention. Information regarding assets are displayed by product view, and/or by system view. Assets, such as mine face, washery, coke ovens, sinter plant, etc provide the information to the present invention. Again, coordination of raw material delivery can be provided to the blast furnace. Again, the invention is not limited to only the iron ore and coal emulation depicted.

COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15 Nov 2004 17:38 Smoorenburg Patent Trad 03 9712 0159 p.14 Figure 7 illustrates stainless steel productioi materials are sourced, s ferrochrome 38, other fer 39 and scrap steel 40. TI schedule the raw material requirements. The prese 41, ferricmartensitic gradi are typically used to prod long products, such as b construction, transportatio durables.

Figure 8 illustrates aluminium production. In sourced, such as bauxite would be well known in th refinery. The present inve raw materials In a m.

requirements. The prese Aluminium Is typically use( As the present in departing from the spirit 0 be understood that the ab invention unless otherwis within the spirit and scop Various modifications and within the spirit and scope 12 one example of the present invention as applied to i. In stainless steel production, a number of raw uch as stainless steel scrap 36, primary nickel 37, oalloys and slay formers as would be known in the art e present Invention as described above can be used to in a manner to suit customer orders and/or production nt invention may be used to produce anstenitic grade i 42 and/or Mn grade stainless steel 43. These grade uce fiat products, such as sheet, strip and plate, and r, rod and wire, for use in process plant, building and Sfood/beverage handling, automotive and consumer one example of the present Invention as applied to aluminium production, a number of raw materials are 6 and alumina 47, such recycled aluminium scrap, as e art. These raw materials are typically delivered to a ntion as described above can be used to schedule the inner to suit customer orders and/or production ,nt invention may be used to produce aluminium 48.

I in many applications, as would be known in the art.

vention may be embodied in several forms without the essential characteristics of the invention, it should )ve described embodiments are not to limit the present a specified, but rather should be construed broadly Sof the invention as defined In the appended claims.

equivalent arrangements are intended to be included 3f the invention and appended claims.

COMS ID No: SBMI-01003719 Received by IP Australia: Time 18:49 Date 2004-11-18

Claims (4)

1. A system adapted to determine a supply chain of raw material(s) in a process of primary product production, the system including: first means for creating a new supply chain for each order, second means for repetitively and/or continuously creating a new supply chain for the order in accordance with at least a portion of the time taken to move 0 -the raw material(s) from source to a final destination.

2. A system as claimed in claim 1, wherein each supply chain created is 0based on information gathered regarding at least one of the raw materials(s).

3. A system as claimed in claim 1 or 2, wherein the primary product is lump, fines or iron ore from one or more assets or an output of a process in the steel making and/or coal industries, such as any one or a combination of, but not limited to, hot metal, pig iron, slab, clean coal, blended coal, coke, lump and nuts, blended lump and fines sinter, aluminium, stainless steel.

4. A system as claimed in claim 2 or 3, wherein the information gathered relates to quality, quantity and or availability of the raw material(s). A system as claimed in any one of claims 1 to 4, wherein the second means and/or third means additionally creates further supply chain(s), taking into account events, such as changes in customer requirements, equipment availability, asset/ore and body/deposit/reserve availability, feed variation, local commodities, supply delays/timing, transport delays/timing and or characteristics. DATED THIS 1 2 th day of August 2005 BHP BILLITON INNOVATION PTY LTD SMOORENBURG PATENT TRADE MARK ATTORNEYS PO BOX 515 RINGWOOD VIC 3134 AUSTRALIA COMS ID No: SBMI-01420849 Received by IP Australia: Time 16:07 Date 2005-08-15