Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver-lead-zinc ores. Production levels change with world demand and prices, but in a typical year, 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialized areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible. You can see the scope of the problem from an outline of the journey for copper, this starts with underground explosions to break up the ore body. The broken ore is collected by front-end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the surface and stored in crude ore bins, with a capacity of 60,000 tonnes. A conveyor moves ore from these bins to another crusher, where it is reduced to about 10mm, and passed to fine ore bins. The ore then goes to a rod-and-ball crusher for fine grinding and is pumped to a floatation process, which produces concrete of about 25% copper. The concrete is passed to smelters that roast it to move some of the sulfur, smelt the roast product to remove more sulfur. The result at this stage is impure copper. This is sent to a casting furnace to remove most of the remaining impurities and cast the copper into 300kg ingots. These operations are all carried out at the mine site, so there are two main logistics problems. The first moves huge quantities of materials from the mine to world markets and the second moves the materials needed by the mine, smelters, and other operations into the remote site. The copper ingots are taken by train to Townsville, 80 km away on the coast, for electrolytic refining, which removes any remaining impurities and gives almost completely pure copper. These facilities have a capacity of over 150,000 tonnes a year. At this point, the copper is cast into its final form, of cake, bars, rods, and wire. These are driven to the nearby port where they are shipped around the world. Copper is only one of Mount Isa’s products, and it has similar transport problems with lead and zinc. It also mines coal and gold, has organized its transport operations into a separate company, generates electricity, and supplies water for the city of Mount Isa, and is involved in a wide range of mining and associated ventures. Required: From the case study above, provide diagram of Mount Isa Mine supply chain.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver-lead-zinc ores. Production levels change with world demand and prices, but in a typical year, 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialized areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible.

You can see the scope of the problem from an outline of the journey for copper, this starts with underground explosions to break up the ore body. The broken ore is collected by front-end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the surface and stored in crude ore bins, with a capacity of 60,000 tonnes. A conveyor moves ore from these bins to another crusher, where it is reduced to about 10mm, and passed to fine ore bins. The ore then goes to a rod-and-ball crusher for fine grinding and is pumped to a floatation process, which produces concrete of about 25% copper. The concrete is passed to smelters that roast it to move some of the sulfur, smelt the roast product to remove more sulfur. The result at this stage is impure copper. This is sent to a casting furnace to remove most of the remaining impurities and cast the copper into 300kg ingots.

These operations are all carried out at the mine site, so there are two main logistics problems. The first moves huge quantities of materials from the mine to world markets and the second moves the materials needed by the mine, smelters, and other operations into the remote site.

The copper ingots are taken by train to Townsville, 80 km away on the coast, for electrolytic refining, which removes any remaining impurities and gives almost completely pure copper. These facilities have a capacity of over 150,000 tonnes a year. At this point, the copper is cast into its final form, of cake, bars, rods, and wire. These are driven to the nearby port where they are shipped around the world. Copper is only one of Mount Isa’s products, and it has similar transport problems with lead and zinc. It also mines coal and gold, has organized its transport operations into a separate company, generates electricity, and supplies water for the city of Mount Isa, and is involved in a wide range of mining and associated ventures.

Required:

From the case study above, provide diagram of Mount Isa Mine supply chain.

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Optimization models
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.