IDENTIFICATION OF COST-CUTTING STRATEGIES FOR UNDERGROUND MINES IN ILLINOIS
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Title
IDENTIFICATION OF COST-CUTTING STRATEGIES FOR UNDERGROUND MINES IN ILLINOIS
Creator
ICCI
ICCI Project ID
00-1/1.1A-1
Investigator
Chugh
Institution
Southern Illinois University
ICCI Abstract
Over the past two decades, coal prices have been declining while labor, material and other costs have been increasing. For the Illinois coal industry, this difficult situation is augmented by environmental challenges arising from the 1990 Clean Air Act Amendments and other regulatory issues. The lasting solution to these issues must be based on economics. If the production cost of coal is reduced sufficiently, the ability to deal with price and environmental issues improves. The goal of this project was to identify specific cost cutting strategies that will reduce the cost of coal delivered to the customer by at least 20% of the mine sale price, or roughly $4 per ton. This project is focused on strengthening the overall industry by developing strategies that benefit most, if not all, of the operations in the State.
Industry support played a significant role in this project. An industry steering committee, consisting of representatives from all major coal operations in the State, demonstrated that support by attending meetings and hosting mine visits and discussions. These meetings and mine visits led to the identification of the following specific research areas and the expected production cost reductions associated with each: 1) high-voltage continuous miners - 8%, 2) alternative face haulage systems - 15%, 3) \"best practices\" training to reduce out-of-seam dilution - 10%, 4) managing coarse coal processing waste underground - 9%, 5) dewatering fine coal waste disposal areas - 3%. Cooperating partners were secured and proposals developed and submitted to ICCI for each area.
Actual research on one project, an industrial engineering/productivity study on a highvoltage continuous miner with batch haulage, was initiated with the objective of determining if the high-voltage machine provides a 15% productivity gain as claimed. Twenty full-shift time studies indicate that the high-voltage machine is capable of increasing loading rates by 30%, tons per car by 9%, and tram rates by 8%. However, overall productivity remained unchanged due to change-out delays associated with batch haulage, highlighting the need for a more continuous haulage system to realize productivity gains. Dust and coal samples collected during the study indicate about 40% decrease in both dust concentration and minus 100 mesh fines. Such results would have a major impact for the Illinois coal industry but require more studies at different operations.
Industry support played a significant role in this project. An industry steering committee, consisting of representatives from all major coal operations in the State, demonstrated that support by attending meetings and hosting mine visits and discussions. These meetings and mine visits led to the identification of the following specific research areas and the expected production cost reductions associated with each: 1) high-voltage continuous miners - 8%, 2) alternative face haulage systems - 15%, 3) \"best practices\" training to reduce out-of-seam dilution - 10%, 4) managing coarse coal processing waste underground - 9%, 5) dewatering fine coal waste disposal areas - 3%. Cooperating partners were secured and proposals developed and submitted to ICCI for each area.
Actual research on one project, an industrial engineering/productivity study on a highvoltage continuous miner with batch haulage, was initiated with the objective of determining if the high-voltage machine provides a 15% productivity gain as claimed. Twenty full-shift time studies indicate that the high-voltage machine is capable of increasing loading rates by 30%, tons per car by 9%, and tram rates by 8%. However, overall productivity remained unchanged due to change-out delays associated with batch haulage, highlighting the need for a more continuous haulage system to realize productivity gains. Dust and coal samples collected during the study indicate about 40% decrease in both dust concentration and minus 100 mesh fines. Such results would have a major impact for the Illinois coal industry but require more studies at different operations.
Start Date
11/1/2000
End Date
10/31/2001
Year Funded
2000
Collection
Citation
ICCI, “IDENTIFICATION OF COST-CUTTING STRATEGIES FOR UNDERGROUND MINES IN ILLINOIS,” ICCI Reports, accessed May 20, 2024, https://isgswikis.web.illinois.edu/icci_reports/items/show/20.