Production Costs Calculation Model in Crushing & Screening
Production Costs Calculation Model in Crushing & Screening
Production Costs Calculation Model in Crushing & Screening
Using a technical-economic approach tool for finding the optimal production costs when
comparing technical and economical solutions
Hedvall, Per
2022
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LUNDUNI
VERSI
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+4646-2220000
Production Costs Calculation
Model in Crushing and Screening
− Using a technical-economic approach tool for finding the optimal
production costs when comparing technical and economical solutions
ISBN 978-91-8039-405-5
ISRN CODEN:LUTMDN/(TMMV-1074)/1-218/(2022)
Production Costs Calculation Model in
Crushing and Screening
− Using a technical-economic approach tool
for finding the optimal production costs
when comparing technical and economical
solutions
Per Hedvall
DOCTORAL DISSERTATION
by due permission of the Faculty of Engineering, Lund University, Sweden.
To be defended in lecture hall A:B, Sölvegatan 24, 223 62 Lund.
Date 2022-11-18 and time 09:00
Faculty opponent
Professor Kerstin Johansen
Department of Product Development, Production and Design, Jönköping
University, Sweden
Organization Document name:
LUND UNIVERSITY Doctoral dissertation
Faculty of Engineering
Division of Production and Materials Date of issue: 2022-08-15
Engineering
Author(s): Per Hedvall Sponsoring organization: Sandvik SRP AB, Svedala
Title and subtitle: Production Costs Calculation Model in Crushing and Screening
The mining and quarrying industries represent a highly important sector of the Swedish economy. The mining
industry operates globally, whereas the quarrying industry operates on a regional/local basis. Demands for metal
and construction aggregates have increased over the last decade, and almost 80 billion tons of solid minerals and
rocks are extracted from the earth’s crust each year. Construction aggregates are the largest part of this extraction.
Most of the metals in the crust are in mineral form, with one or more elements in chemical compounds. To extract
the metals, the rock must first be reduced to fine or very fine particles, so creating the right properties for mineral
beneficiation and metal extraction.
Construction aggregate is used as ballast in concrete and in asphalt or by itself in road building and other
infrastructure, dams, protection, and padding. Construction aggregate ranges in sizes from large boulders to very
fine sand, but normally the construction aggregate sizes are in the range of 1–100 mm. Railway aggregates are in
the upper part of this range, aggregates used for asphalt and concrete in the middle, and sand in the lower part.
Crushing and screening are among the common size reducers and size sorters in the mining and quarrying
industries. The crushers are machines for breaking rocks or other minerals into smaller particles/fragments. The
screens are the size-sorting machines for separating coarser particles from finer particles. Technical process
simulation and equipment selection for crushing and screening (C&S) plants are well established for mining and
quarrying plants.
In this dissertation I develop a product cost calculation model (PCCM) that adds one more dimension to the area of
process simulation, providing guidelines for calculating product costs within C&S plants and finding the process
alternative with the lowest product cost for a C&S plant process application.
The PCCM calculates the product costs using, process uptime costs, process downtime costs, salary costs and
auxiliary costs. The process uptime and downtime costs include capital costs and dynamic process costs such as
wear parts, spares, tools, and power consumption.
The conformity, CF (calculated costs divided by actual costs) is in the range of 0.9–1.2 for the seven C&S plants
tested. The application mining C&S plant gave the product cost allocation shown below:
Costs Distribution (%)
Capital 30–50
Dynamic 30–40
Salary 10–20
Two examples demonstrate how the PCCM can be used:
1. In an existing C&S plant to calculate the product costs.
2. In a future C&S plant to calculate the production costs before the plant is built.
Key words crushing, screening, C&S processes and plants, product cost calculations, mining, construction and
quarrying.
Classification system and/or index terms (if any)
I, the undersigned, being the copyright owner of the abstract of the above-mentioned dissertation, hereby grant to all
reference sources permission to publish and disseminate the abstract of the above-mentioned dissertation.
Per Hedvall
Cover photos by: Sandvik and Jan-Eric Ståhl
Faculty of Engineering
Division of Production and Material Engineering
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1.Introduction
The chapter begins with an account of the background of the research presented in
the dissertation. Thereafter, it presents the conceptual approach taken, the
objectives, the research questions posed, and the scope and the limitations of this
project.
1.1Background
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Figure 1.1 World production of solid minerals, stones, and rocks [4, 16, 17, 18, 19, 20,
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1.3Mining industries
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Figure 1.3 The metal process chain, from ore to finished product [4].
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1.5 Crushing and screening (C&S)
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Figure 1.7 Vibrating feeder with dust encapsulation (left), and conveyors (right).
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Figure 1.9 Different types of compression crushers, gyratory, jaw, and cone [4].
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Figure 1.10 The two main screening principles: right, screening through stratification,
and left, screening through free-falling [4].
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Figure 1.11 Screen deck with rubber screening media with square holes.
Figure 1.12 Typical open (left) and closed (right) crushing circuit with explanations.
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Table 1.2 Nominal reduction ratios for compression type crushers [24].
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Table 1.3 Guideline for reduction ratio with required number of crushing stages [4].
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1.6Objective
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1.7Research questions
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1.9Selected definitions
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2.Review of Product Cost Calculations
This chapter reviews previous work in cost modeling related to crushing and
screening plants. The available models found in scientific literature and in other
reference works are reported. However, little has been published in this specific
field. The chapter results in a compilation of the most important published works.
The compilation includes each model’s level of detail.
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ͳ െ ܷோ Equation 2.2
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Table 2.1 Examples of the use of custom cost models for different production-related
applications based on Ståhl’s standard cost model [28].
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Ǥ Equation 2.11
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Figure 2.2 Flowsheet of closed circuit.
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Table 2.6 Overview of the reviewed product cost calculation proposals.
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Table 2.7 Description of the level of detail of input cost items in reported cost models for
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3.Research Methodology
This chapter explains the research approach taken and introduces the research
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Figure 3.1 Research paradigm in the field of production including the concept of digital
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Figure 3.2 General overview of the complete work and the building of experience and the
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This chapter provides explanations and equations related to C&S and presents the
original model for production costs calculations for C&S as well as the associated
research. The first application of the developed model is also presented in the form
of a case study.
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Equation 4.25
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Equation 4.26
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Figure 4.5 Production flow with recirculation for product P1.
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Table 4.2 Selected basic data for the reported calculation example.
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Figure 4.6 Example of the ideal cost kIdel as a function of the utilization URP.
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Figure 4.7 The build-up of cost by successive accumulation of current cost terms in the
production of product P1 for pf2 = 0.4.
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Figure 4.8 The cost k per ton as a function of the flow (feed) L0 for different proportions of
recirculation pf2 (0, 0.2 and 0.4) in production of product P1 for a downtime rate qS = 0.2.
4.3Dynamic cost simulation
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Assessment of the reasonableness and quality of the generated vector qP.
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Figure 4.9 Generation of a vector with data representing an assumed rate loss qP with a
given distribution function, modified after Ståhl [74].
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Figure 4.10 The distribution S (left) and the frequency function s (right) of the production
cost k1 when varying the investment level K0, the interest cost p, and the plant's life n for
three different occupancy rates URP.
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Figure 4.11 The distribution S (left) and the frequency function s (right) on the
manufacturing cost k1 when varying the rate loss qP and the downtime percentage qS for
three different occupancy rates URP.
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Figure 4.12 The distribution S (left) and the frequency function s (right)on the
manufacturing cost k1 by varying the costs for wear parts Kwp, spare parts Ksp, and electricity
cost kkwh for three different levels of the occupancy rate URP.
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Figure 4.13 The distribution S (left) and the frequency function s (right) of variations in all
studied variables and parameters according to cases a), b) and c).
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Table 4.3 Overall data for calculated costs.
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Figure 4.15 All cost term based on Weibull distribution functions together with the total
cost k1 [62].
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Figure 4.16 Frequency functions for all cost terms based on Weibull distributions together
with the total cost k1 [62].
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Figure 4.17 Calculated and actual product costs [58].
5.Model Refining for Several Products
This chapter deals with further development of the model to a more comprehensive
version that can handle several different products from one plant. In order to do
this, it is necessary to be able to separate operating costs and allocate them to each
product. The problem to be addressed is when several products pass through the
same equipment and contribute to cost items such as wear parts, spare parts, and
energy consumption. This second phase of the work was carried out after further
information gathering and experience based on the previous chapter. An important
part of this approach is the use of allocation keys when the C&S plant produces
more than one end product.
Figure 5.1 The Discrete model – all individual subprocesses in a C&S system.
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Figure 5.2 A typical process flow with one end product extracted at the last C&S stage.
Figure 5.3 A C&S plant with one end product, where the end product is extracted when
created.
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Figure 5.4 A typical C&S plant with two end products.
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Figure 5.5 A typical C&S plant with multiple end products (P1–P5) where some of them
are extracted in earlier C&S stages.
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Figure 5.6 Crushing circuits, process chain with extraction of final products at different
stations or in different process lines.
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)LJXUHIn principle, how products are extracted out along a process chain and thus
burden the equipment in different ways and use resources in different levels.
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Figure 5.8 The iron ore C&S plant with each section, A, B, C, and D [64].
Figure 5.9 An open C&S circuit.
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Figure 5.11 The secondary station with mass balances (B).
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Figure 5.12 The tertiary station with mass balances C.
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Figure 5.13 The final production station with mass balances D.
Table 5.2 Flow production and investment: the iron ore C&S plant (Figure 5.8).
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Table 5.3 The yearly production of the end products for the iron ore C&S plant.
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Figure 5.14 Annuity factors for different technical lifetimes and different interest rates.
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Table 5.6 Examples of annual costs of WP, SP, TO, and power for two products, P1 and
P2.
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Figure 5.15 The costs per section of the C&S iron ore plant.
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5.3.6 Cost conformity, CF
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Table 5.8 The conformity for P1, P2 and total in relation to available customer
information.
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Equation 5.21
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5.5Conclusion
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6.Model Verification
In this chapter the PCCM calculation model is tested against five existing C&S
plants to assess the conformity between the actual values provided and calculated
values. Of these five cases, two are mining C&S plants and three are construction
C&S plants. Thereafter, the PCCM is used on one simulated C&S circuit with two
alternatives to find the alternative with the lowest special production costs. The
production costs in earlier sections have been converted from local currency to US
$, in order to compare the values given by customers and calculated or simulated
values. This will make it possible to compare different applications from different
places in the world.
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Figure 6.1 The flowsheet for the 0–16 mm iron ore C&S plant (CSP 3).
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Figure 6.2 The flowsheet for the 0–¼ƍƍ copper ore C&S plant (CSP4).
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Figure 6.3 The flowsheet of the mobile C&S plant (CSP 5).
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C&S plant 500 MTPH with six products
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Figure 6.4 The flowsheet of the fixed C&S plant (CSP 6).
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Figure 6.5 The flowsheet of the C&S plant (CSP 7).
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Applications related to selection of C&S plant
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Figure 6.6 The two flowsheets for alternative A and B (CSP 8).
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Table 6.10 Calculated special product costs for alternative A and B.
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7.Discussion and Conclusions
This chapter discusses the results achieved by using the PCCM. Conclusions are
drawn, and then the two research questions are answered.
Development
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Figure 7.1 Distribution of the production costs in CSP 3 (Appendix F3).
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Table 7.1 Comparison between the reviewed and PCCM product cost calculationsSDUW
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Table 7.2 Comparison between the reviewed and PCCM product cost calculations, part 2.
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8.Future Research
This chapter identifies possible developments of the PCCM for other size reduction
processes such as grinding as well as other sizing processes such as classification.
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Summary
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9.References
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Appendix F – Case study of full-scale plants.
Appendix F1 – Gold ore
Appendix F2 – Iron ore (Magnetite)
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Appendix H – Production analysis, input sheet
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Appendix I -- Analyses of simulation results
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Remember that the Actual Production Costs are the ones specified by the
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