Professional Documents
Culture Documents
The
Pros & Cons
Of
Contract Drilling & Blasting
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3/4/2015
Purpose
of
Drilling & Blasting
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3/4/2015
To This
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Participants
Kurt Oakes
Corporate Manager of D & B
Martin Marietta, Raleigh, NC
kurt.oakes@martinmarietta.com
Matt Boatman
President
General Drilling, Fishers, IN
matt.boatman@generaldrilling.com
Frank Sames,
Corporate Manager of Blaster Development
Austin Powder Company, Nashville, TN
frank.sames@austinpowder.com
Ed Svec (Moderator)
National Accounts Manager
Austin Powder Company, Cleveland, OH
ed.svec@austinpowder.com
Matt Boatman
President
General Drilling Company
Fishers, IN
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Union Contract
No Satisfactory Drillers
Owners of New Drills
Daily Small Shots
Operational
- Control of Training
- Schedule as needed
- Day to Day communications with Driller
Economic
- Volume
- Specialized Drilling
- No Viable Contractors
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Making the
Right Drill
Decision
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Breakdown Of Costs:
Maintenance and Upkeep
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3/4/2015
$.008 / Ton
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$12,611 / $800,000
1.6% Return
Volume Economics
Fixed and variable costs
Volume required
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Cost of Operations
Types of Costs Ownership
Description
Fixed Variable Mixed Contractor Quarry
Drill Labor X X X
Drill Bits and Tooling X X X
Rig Oil and Fuel X X X
Rig Repairs X X X
Training X X X
Rig Depreciation X X X
Pickup Maintenance X X
Mobile Phones X X
Licenses, Permits, & Fees X X X
Salaries X X
Advertising X X
Auto Expense X X
Auto Depreciation X X
Training X X X
Office Rent X X
Interest Expense X X X
Insurance on Equipment X X X
Office Supplies X X
Office Maintenance X X
Property Taxes X X X
Utilities X X
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Drillers Pickup
Mobile Phone For Driller
Office Salaries
Advertising
Auto Expense and Depreciation
Office Supplies
Utilities
Profit
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Equals:
Footage per drill needed to cover costs
not incurred by quarry
125,000 feet in Limestone to breakeven
Back-up
Mechanical
Capacity
Personnel
Liability
Budget Forecasts
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Operational Needs
Shot Laid Out in Timely Manner
Open Communication with Quarry Personnel and
Blasters
Clear Instruction and Expectations
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STUFF
HAPPENS!!!
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35
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Burning Questions?
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Definition of Services
DELIVERY
Quarry does it all Operation owns and operates its
own drill.
Explosives are delivered and stored on site.
Operation provides all services, blaster, equipment
for hole charging, and handles all design and layout.
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DOWN HOLE
Quarry does almost all.
Same as delivery except product to the borehole is
contracted through an outside explosive company
(may have some storage).
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How to decide
which is the right
choice?
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Safety Production
Blasting
Process
Interfaces
Cost
Environmental
Effects
Measurements
Communication
Blasting Process Specifications
Determination of Risk Balance
Decision Process
Implementation
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Communication
Communication
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Safety
Regulations, Rules and Ordinances
Safety Policies of all Parties
Emergency Procedures
Site Specific Requirements
HAZARDS OF EXPLOSIVES
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HAZARDS OF EXPLOSIVES
Misfires
Yourself Yourself All Powder All Miners
Co-Worker Co-Worker Miners
Flyrock
Crew & Public
Production
Tonnage (Volume) Requirements
Tons per Day
Quality (Size and Mineral Content)
Mine Plan and Extraction Schedule
Blast Design
Drill Pattern
Products
Loading Requirements
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AN/FO Heavy AN/FO Heavy AN/FO Pumpable Blend Pumpable Blend Emulsion
100% 70/30 % 50/50 % 30/70 % 20/80 % 100 %
Blends
Chemical Sensitization or Sensitized Emulsion
Require Sensitization
Un-sensitized Emulsion:
1942 1993
+ Gassing Chemicals
1942 1993 3375
Heavy AN/FO
A+B
3375
Ammonium Nitrate (AN) AN/FO added to
and Diesel Fuel (FO) Un-sensitized Emulsion:
Blended when loading
AN/FO Heavy AN/FO Heavy AN/FO Pumpable Blend Pumpable Blend Emulsion
100% 70/30 % 50/50 % 30/70 % 20/80 % 100 %
Blends
Augered Pumped
Equipment Reference: Blasters Handbook, International Society of Explosives Engineers (ISEE) 2011
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AN/FO
Pumpable Blends
Heavy AN/FO
Emulsion
Equipment Reference: Blasters Handbook, International Society of Explosives Engineers (ISEE) 2011
Cost
Production Cost
Product Prices
Cost Evaluation Process
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Measurement
Blast Assessment
Blast Geometry
Fragmentation Requirements
Displacement
Blast Evaluation
Seismic Monitoring
Compliance
Advanced Signal Analysis
Reporting
Blast Layout
Work-Site Inspection
Equipment Inspection
Drill Log
Selection of Documents:
May also include ATF, DOT , or other Loading Chart Inventory Scale Ticket
required forms.
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Blast Data
Source
Documents
GPS Data Profiles / Surveying Data Loading Equipment Data Blasting Machine / Video / Images Seismograph Data
Detonators
Environmental Program
- Regulations
- Compliance Monitoring
- Operation Limits
- Community Relations
- Complaint Response
Procedure
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Federal
Regulations
State Regulations
and Rules
Safety
1
Short Term Plan
Cost Projection
Blast Planning Environmental Effects
Sequence of
Mineral Extraction
Bench
Blast Size
Standard Blast Design Layout Pattern, Product
Scaled Distance
Blast Design
Blast Design
etc.
Profiling
Geology
Measure-
Layout Backbreak
ments Area
etc.
Layout Report
Drill Log
Day of Blast
Drilling Schedule Blast Time
Special Arrangements
Wet or Dry?
Loading Adjustments Burden Profile
Drill Deviations
Seismic Monitoring
Blast Monitoring Video
Advanced Blast Monitoring
Performance
Blast Report Reporting & Document Ranking
Assessment -ation Additional Reports
etc.
Environmental
Community Mine
(Public) Management
Effects Blasters
Plan
+ Measure
Engineers
+ Control
= Optimization
Assessment
Physics and Science
Reporting Setup
Reporting,
Management
& Best Practices
Decision
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Considerations
Compare Cost-Benefits :
- Include All Aspects of Production Costs
Determine Real Value - Assess Cost
versus Price Issues
Develop Procedures for Operator &
Contractor Conflict Resolution
Implementation
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Planning
Blast Design
Tools
Electronic
The Circle
Blast Report of Continuing
Improvements
Product
Blast Quality and
Monitoring Innovation
Technical Services
PARTNERS
Communication
Expectations
Contractors
Action
Producers
Planning
Feedback
Performance Evaluation
Communication
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Summary Remarks
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Thank You!
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Producers View
Kurt Oakes
Corporate Manager
of
Drilling & Blasting
Martin Marietta
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3/4/2015
Total Outsource
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Total Outsource
Outsource Blasting
In House Drilling
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3/4/2015
Outsource Blasting
In House Drilling
Company has Lower Cost of Capital than Contractor
NEED about 125,000 Ft/yr to Cost Justify Drill Purchase
Contract Driller is Not an Option
In House Blasting
Outsource Drilling
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In House Blasting
Outsource Drilling
In House Blasting
Outsource Drilling
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3/4/2015
Totally In House
Totally In House
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CONCLUSION
QUESTIONS
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Different Applications
Different Applications
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