CHPP Optimisation Review Unlocks $100M+ in Coal Yield Value

An independent CHPP optimisation assessment identified over $100M in annual yield, reliability and runtime value for a major metallurgical coal producer.

A large metallurgical coal operation running multiple high‑capacity coal handling and preparation plants (CHPP) planned to increase saleable coal by 25% in two years utilising existing infrastructure. The operator needed confidence that its processing plants could sustain the increase in throughput while protecting product quality.

While installed capacity exceeded current demand, operating performance varied across parallel CHPPs. Yield outcomes were inconsistent and runtime differed between plants, creating hidden revenue loss and increasing the risk that coal processing would become a constraint as feed volumes and fines content rose.

To address this risk, the operator engaged eXcellerate to independently assess CHPP performance and identify practical opportunities to improve yield, strengthen reliability and protect margins ahead of the production ramp‑up.

The Challenge: Yield Loss and Maintenance Driven Downtime

Through its independent review, eXcellerate identified a set of yield and reliability risks that were not apparent from installed capacity alone. The operation faced a combination of process variability and maintenance execution constraints that limited realised value.

Key challenges included:

Measurable variation in fines, coarse coal and total yield between parallel CHPPs, including differences of approximately 5-8% in primary yield.
Misclassification of coal into lower‑value products driven by sub‑optimal parameters and circuit performance, in some cases affecting up to 24% percent of product streams
Underperforming fines circuits, increasing the risk of lost tonnes as ROM ash and fines content increased.
Variable runtime and availability between plants, despite similar design capacity.
Maintenance backlog of approximately 14 to 17 weeks, driving reactive work and reducing effective runtime.
Non‑redundant processing assets where unplanned downtime had a disproportionate impact on production.

While spare capacity masked some of these issues in the short term, eXcellerate’s analysis showed that without intervention, yield losses and downtime would materially erode margins as additional coal supply came online.

The Approach: Data Led Yield and Runtime Assessment

eXcellerate applied a structured, value focused approach that linked plant performance, maintenance condition and business outcomes. The team:

Analysed yield performance across fines, coarse coal and total product streams.
Compared CHPP1 and CHPP2 operating outcomes to identify systemic and plant specific issues.
Assessed maintenance practices, backlog levels and execution constraints affecting runtime.
Evaluated non redundant assets and protection strategies that influenced availability.
Quantified the financial impact of yield losses and downtime using realistic production assumptions.

This approach ensured recommendations targeted the highest value opportunities rather than incremental optimisation.

Key Recommendations: Practical CHPP Improvements with Minimal Capital

Working with site leadership, eXcellerate helped define and prioritise a set of targeted recommendations focused on execution discipline and rapid value delivery.

Key actions included:

Development of a structured yield improvement plan for fines and coarse coal circuits.
Recommending the return to critical CHPP components to OEM operating specifications, confirming optimal operating parameters and identifying opportunities to standardise practices across plants.
Prioritising runtime and downtime improvements for non‑redundant CHPP infrastructure.
Refocusing maintenance effort on reliability‑critical assets, including strengthening protection and spares strategies to reduce unplanned downtime.
Recommending alignment of maintenance execution with production windows and reliability priorities, with a view to reduce reactive work and progressing the maintenance backlog toward a three‑week target.

The program avoided unnecessary complexity and capital expenditure, instead emphasising consistency, accountability and operational discipline.

The Outcome: CHPP Optimisation Delivering Sustainable Coal Yield Improvement

The eXcellerate review identified a substantial opportunity to create and protect value through improved CHPP performance, while enabling the operator’s planned 25% increase in production. The total opportunity was valued in +$100 million per annum, derived from the combined impact of:

Yield improvement across existing throughput. Across multi‑million‑tonne annual washed coal volumes, even 1-2% improvements in total yield equate to 100,000 to 200,000 tonnes of additional saleable coal per year, representing tens of millions of dollars in incremental revenue.
Recovery of value from misclassification. Reducing the proportion of coal reporting to lower‑value products lifted average realised price per tonne without increasing feed volumes, contributing additional margin uplift.
Runtime and availability improvement on non‑redundant assets .Improving availability on non‑redundant CHPP infrastructure directly protected saleable tonnes, avoiding lost production rather than deferred output.
Avoided future losses as production increased. As coal volumes and fines content increased, yield losses and downtime would have scaled materially without intervention. The identified improvement opportunities represented both current upside and the certain erosion of future margins without intervention

By identifying yield loss and maintenance‑driven inefficiencies early, eXcellerate provided the operator with a clear pathway to ensure the CHPPs could continue operating as a reliable buffer between mining variability and fixed rail and port commitments as production increased. This positioned the operation to deliver its growth plan while protecting margins, with eXcellerate’s review providing the insight and recommendations required to sustain performance at higher throughput.