Ignatov & Company Group - Engineering & Technology Consulting - Feasibility studiesWe make a wide variety of pre-feasibility and feasibility studies – from Order Of Magnitude to Detailed feasibility. Read the case study below to better understand our approach in feasibility study.

Case study 

Challenge

International commodity trader decided to launch own coal and iron ore mining projects in Kazakhstan. A client had information about 3 iron ore and 3 coal deposits located in the Northern Kazakhstan and planned for tendering with the country’s authorities. 

Approach

At the stage 1 of the complex consulting and engineering project we made Order Of Magnitude Study for a client. Based on geological data, information on transport network in the area, mineral in situ quality reports we suggested to concentrate efforts in 2 coal deposits located in 7 km from each other and in 2 iron ore neighbor deposits (5 km distance between). The 3rd ore deposit was rejected due to low content of iron in ore, lower reserves and ore deep bedding.

At stage 2 of the project we made pre-feasibility study for 2 mining projects – one of which cover coal exploration and mining in 2 neighbor deposits, and another project referred ore exploration and mining in 2 neighbor deposits. At pre-feasibility stage we made top-level design of the open pit and underground mines. By the results of stage 2 both projects were estimated as feasible.

A stage 3 We made detailed feasibility study for 2 projects; a large volume of mining engineering work was done, including design of 2 coal and 2 iron ore mines, 2 processing plants (coal washing and ore enrichment), transportation schemas, etc. At this stage we suggested to a client a wide range of advanced technological solutions – most of which had been never used before in Kazakhstan. In particular we suggested mobile heavy crushers in combination with mobile conveyors to be used in iron ore open pit mines; use of steep inclined and vertical conveyors made it possible to exploit a very deep iron ore open pit mines.

We made a design of coal underground mines with use of longwall systems and high level of mechanization and automation.

Another innovation was in use of conveyor lines for long-distance transportation of coal and ore from smaller mines to processing plants located near large mines; design for conveyor lines in 5 km (iron ore) and 7 km (coal) was done. Design for automotive roads (35 km in total length) and railroads (85 km in total) was done.

We made Capex/Opex calculations for the projects as well as estimation for NPV/IRR in 3 scenarios (that differed in coal/ore forecast prices).  Active use of outsourcing in supplementary areas (like accounting, cleaning, truck fleet management, telecom, security, etc.) was suggested to a client – while the project operator projects should concentrate efforts in mining. 

Value

Our client presented the projects to Kazakhstan authorities and participated tenders for deposit exploration and mining; we are proud that at Summer 2008 our client won tenders for 2 coal and 2 iron ore deposits. Moreover – the innovative character of mining solutions suggested with us was highly appreciated with Kazakhstan supreme authorities; a presentation of the projects was done to the country’s top-officials.