We are pleased to share with you that Magemi Mining’s project titled “Data Analytics and Machine Learning to Optimize Ore Blending, GHG Emissions and Project Economics in the Mining Industry” has been selected as a winner of the Customer Demonstration Program administered by Ontario Centres of Excellence (OCE) on behalf of the Ontario Ministry of Economic Development and Growth (MEDG). As an integral part of the IBM Innovation Incubator Project, the Customer Demonstration Program provides an opportunity for disruptor companies participating to showcase to a potential client the value of their technology.
All program funding administered by OCE is discretionary and awarded on the basis of a highly competitive process that attracts many applications. Eligible applications are reviewed on their merit and also assessed against program objectives and assessment criteria. Given the limited funding available, only projects that attain the highest recommendations and demonstrate the greatest likelihood of meeting program objectives are awarded funding.
This award has recognized Magemi Mining as a significant disruptor in the field of data mining and artificial intelligence, and has facilitated the licensing of our flagship product, Magemi Mine Optimizer, to another client.
Magemi Mining Inc. is pleased to announce that NSERC has approved funding for the Company's project "Data Analytics for Ore Blending Schedules".
The project aims to develop novel data analytics models for optimizing ore blending schedules for Magemi Mining Inc. Ore blending is a key process in mining operations , where ores of distinct qualities are mixed from different stockpiles so as to balance the available mineral reserves with revenues obtained upon sale of the final products. In particular, higher-grade ore feed lead to products with higher prices, but they reduce the overall life-of-mine tonnage and production. Thus, medium to low grade ore must be often combined with high-quality ones. A key challenge is that such blends must be defined daily while considering a large variety of factors, such as quality restrictions and a complex revenue structure that relies on current and future market prices. This results in a difficult problem in which it is necessary to consider numerous different blending scenarios, currently addressed only by manual methods.
In May this year, Environment and Climate Change Canada published a technical paper on the federal carbon pricing backstop which seeks to inform Canadians and stakeholders about the federal carbon levy and the output-based pricing system that are going to take effect in 2018 and 2019, respectively. All elements of the backstop will apply in jurisdictions that do not have a carbon pricing system in place by 2018. The backstop will also supplement systems that do not fully meet the benchmark. In effect, a carbon pollution pricing system will take form in all provinces and territories in Canada as early as next year.
Coverage and rates of the carbon levy
Fossil fuels that will be subject to the levy include liquid fuels (e.g., gasoline, diesel fuel, and aviation fuel), gaseous fuels (e.g., natural gas) and solid fuels (e.g., coal and coke). Carbon levy rates will initially be set for the period from 2018 to 2022. Rates for each fuel subject to the levy will be set such that they are equivalent to $10 per tonne of CO2 e in 2018 and increase by $10 per tonne annually to $50 per tonne in 2022. These rates of levy correspond to increases in gasoline and diesel prices of ¢11.63 and 13.69, respectively.
Impact on the mining industry
Mining companies, such as Agnico Eagle, have estimated the impact of the federal carbon tax in the range of tens of millions of dollars over the next six years for their remote operations locations in Nunavut. With energy representing about 25% of production costs, mining companies are very motivated to reduce their carbon footprint. One way to do that is through renewable energy and long-term investments in wind, solar and other renewable energy projects which can cut expenses and clean up their operations. Companies such Rio Tinto PLC and Glencore Xstrata have wind-farm projects in the Northern Territories under way that will reduce energy costs and the expected carbon tax.
How can we help?
One thing that all miners seem to agree on is that the cost of inaction will be very high. Magemi Mining can help your company address effectively the looming carbon taxes. Our team of experienced mining and computer sciences professionals has developed a software scheduler called Magemi Mine Optimizer that optimizes handling and re-handling costs in all areas of mine operations and eliminates or substantially reduces GHG emissions from re-handling. Initial results show that Magemi scheduler can result in 50-80% of fuel for handling and re-handlingand GHG emissions reduction in the mining and processing areas and contribute to over $1.1M of savings a year in an average mine project. Now that’s worth having a conversation about. If you are interested in learning more about Magemi Mine Optimizer, feel free to contact our CEO:
As commodity prices have remained stagnant for the last five years or so, financing deals in the mining industry are drying up. According to Business Vancouver, money raised in the mining sector in British Columbia alone dropped 40% compared with 2015: from $6.14 billion to $3.69 billion. Companies have to become more competitive in their search for money – but how?
One way to achieve that is through a truly “bankable” feasibility study. Typically, a bankable feasibility study is a comprehensive forward analysis of a project’s economics in the range of +/- 10% precision that seeks to convince investors of the credit-worthiness for project financing. The format prescribed by NI43-101 has largely remained unchanged for decades and that gives innovative mining companies an opportunity to differentiate themselves by preparing feasibility studies that run through many sensitivity tests and identify with objectivity the best-case scenario for profitability. Sensitivity analysis, such as Monte Carlo simulations, performed by an external vendor on stockpile blending, can run through multiple scenarios and combination to determine the optimal tonnage and time to blend different grade stockpiles in order to maximize processing plant performance. That will result in savings in final products penalties and improvement in the project financials above and beyond back-of-the envelop calculations.
Magemi Mining Inc has developed Magemi Mine Optimizer with that purpose in mind. With a click of a button, the optimizing software runs through multiple blending strategies and finds the optimal blends that maximize revenue and cash flows. The software goes through multiple sensitivity scenarios in the mine and plant production parameters, CAPEX, OPEX, prices, foreign exchange rate, and discount rate to produce a truly “bankable” solution that gives mining companies a unique competitive advantage in their feasibility studies.
The mining industry is tired of the gloom and doom and senior miners have already embraced forward-thinking technology solutions and consulting services in search of cost savings and optimal performance. That is the only way to go in a world of low commodity prices and reduced pool of investment options. Contact Magemi Mining to get started today.
Magemi Mining Optimizer is a powerful tool that designs and estimates mine projects scheduling, optimizes processes and generates financial reports. It also optimizes operations daily material handling and plant feed to maximize project financials, daily production, and control.Read more about the tool
The Prospectors & Developers Association of Canada (PDAC) is the leading voice of the mineral exploration and development community. With over 8,000 members around the world, the PDAC’s mission is to promote a globally responsible, vibrant and sustainable minerals industry. Optimism and opportunity abounded in PDAC 2016 Convention which was attended by more than 22,000 attendees.
2017 PDAC Convention is going to take place duringMarch 5-8 at Metro Toronto Convention Centre in Toronto, Canada. It should all but exceed the expectations and rebound set in 2016 PDAC as commodity markets continue to trend up. You can purchase your 2017 PDAC tickets here.