Mining Case Study: Software Lends a Hand
Column
By Robert W. Selzler   
Wednesday, 23 January 2008

Founded in 1992 and listed on the Australian Stock Exchange in July 1994, Straits Resources Ltd. focuses on acquiring and developing assets in the gold, copper and bulk commodities sectors. Straits  is one of the few mining entities based in western Australia with such a well diversified group of assets.

The Perth-based producer controls and operates the Whim Creek and Tritton Copper Operations in Australia and the Mt. Muro Gold Mine and the Sebuku coal mine in Indonesia. In addition, Straits holds an outstanding portfolio of mining investments, development projects and exploration ground throughout Australia and Indonesia. With open pit and underground projects, as well as bulk commodities, Straits required comprehensive technology to use at all of of its sites.

Three years ago, Straits spent significant time reviewing several mine planning systems to find an affordable, multidisciplinary approach and a local support network. Straits ultimately adopted Gemcom’s Surpac software to support resource modeling and mine planning functions.

Today, the company has 30 Surpac installations and uses Gemcom’s training and technical support services. As a result of its investment, Straits has gained more efficiency through decision-making support capabilities, which enables the company to reduce the cost of delivering commodities to the market.

“We have a wide range of projects, so we chose software that applies to all of our mining environments,” says Chris Ramsay, geologist for Straits, who has used the software since 1998. He also notes that Straits engaged with Gemcom to obtain responsive technical support.

Same Software, Different Functions
Surpac brings efficiencies, ease of use and flexibility to three mining disciplines at Straits: geology, surveying and engineering. Surpac is the company’s primary data manipulation, resource modeling and estimation, volume calculation and grade-control system.

By employing Surpac, Straits has significantly increased the resource base at all  of its operations: Straits surveyors use Surpac for volume calculation, and the company’s engineers count on Surpac to provide 3-D designs and calculations, as well as to manage grade control and resource inventories.

The software conveys information to them in visual ways that enhance non-mining professionals’ understanding of mining operations.

“Without Surpac, our work would take longer, and we would need dozens of extra people in my area alone,” Ramsay says. “To a lesser extent, the engineering and surveying areas would also need to hire additional staff.”

Better Decision-Making
Although other, competitive systems are available, Ramsay says that Surpac’s 3-D visualization of ore body and block models is helpful to Straits’s geologists who create models to bring about multibillion-dollar results and make wise decisions about Straits’ mining operations.

“We gather sparse information that is very expensive to come by,” he says, “and the representation of that spatially is critical in correctly calculating what is in the ground. Surpac gives us a strong comfort level that we are making the right decisions to achieve high-value results.”

A Wealth of Features
Surpac is integrated with the company’s 16 GIS and 3-D mining applications, and package translations are available at the touch of a button. When needed, the software’s language options, including English, French, Spanish, Chinese and Russian, enhance collaborations at Straits’ locations globally.

Alternative sources of data convert well into a Surpac readable file. In fact, Straits’ teams are able to view data from various IT systems with the software’s Data Plug-in modules, and incorporate this information into their planning.

“In any of the packages that we have, we transfer geographic or 3-D information back and forth into Surpac very easily,” Ramsay says. “Surpac’s representation of geographic information in a text file is extremely simple.”

It is also a simple exercise to program certain management processes using the software’s scripting/macro capabilities. “We gain a lot of power from the scripting/macro,” Ramsay says.

In addition, the Gemcom software instantly includes information from other core data systems. Plus, the company can leverage the most current information to save operational costs. “In some of the mining operations, we might spend from $50 to $500,000 a day, so instantaneous refining of information is critical to cost savings,” Ramsay notes.

Straits’ growth has prompted it to expand Surpac usage as its work force increases for a particular project. Implementing another system into an active environment is as simple and quick as copying files onto the company’s work station.

“With Gemcom as our partner, we see being able to expand our solution as our operations needs change in the organization,” Ramsay says. “Gemcom provides a greater level of funding and programming support behind this product. However, right now, we’re quite happy with Surpac.”

In establishing Surpac software as its standard technical tool, Straits empowers its personnel to share data, skills and project knowledge across the company in a consistent way. “At our Perth headquarters, we have one format for dealing with any information that comes in centrally,” Ramsay says. “This also enables us to manage training in a collective way.”

Straits takes advantage of Gemcom’s base of trainers, selected for their in-depth mining knowledge and industry experience. In addition, the company’s technical support services play an important role in Strait’s decision to continue with Surpac. As a shortage of skilled workers continues to plague the resources industry, Straits commands a competitive edge in the labor market, stemming in part from its use of Surpac. “Because Surpac has a fair share of the industry in this region, attracting skilled practitioners to Straits is somewhat easier,” Ramsay concludes. 

    
Robert Selzler is vice president of marketing for Gemcom Software International Inc., based in Vancouver, British Columbia, Canada. He can be reached at rselzler@gemcomsoftware.com. For more on Straits, visit www.straits.com.au.

 
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