What is to be mined and when ?
A Surface Mine (Planning, Design, Operation)
Why so fancy shapes ?
Mine Planning Process
1. What do we plan for?
* Planning goals
2. What are the planning targets?
* Outcomes of planning process
3. Planning stages
* Sequence of activities
Sample Planning Goals
1. Maximize NPV, ROR, Payback
2. Provide stable cash flow patterns
3. Uniform grade, grade decline or highgrading
4. Uniform or favorable stripping ratio
5. Uniform / stable (or required) ore tonnage
6. Other….. to comply with company goals???
a. Lowest cost producer?
b. Mine the best 320 mt over 20 years?
What Are Your Goals ?
1. First, clearly define the goals to be achieved! They are site specific!
2. Communicate !!!!
3. Make sure that
a. All are familiar with the goals, and
b. These are understood and agreed to!
4. Periodically review your goals
a. Company’s management, goals, situation changes!!!
Planning Outcomes: Targets
1. Tonnage (volume) to be mined
TONNES
2. Grade to meet the plant requirement
GRADE
3. Cost and economics
DOLLARS
Quantity To Be Mined : Tons and Grades
1. Define how much material is to be mined and from where:
a. To achieve the objectives at the lowest cost
b. To size facilities and estimate capital expenditures
2. Do you mine several different materials?
a. Ore, waste, partings, etc.
More Than That !!!!
a. Time consideration
b. Sequence consideration
Time Component
1. The defined tonnes (or tons, bcm, bcy) need to be mined within a certain time frame
a. Continuity of operation
b. Need for advanced development
c. Impact on cash flow
2. Compare CAT’s FPC
a. Unit cost may be a trade-off for time
Sequence Component
1. Mining needs to follow a sequence
2. Define and pay attention to the best sequence of mining
a. Opening or box cut?
b. Waste to be stripped in advance to allow mining of ore
c. Which waste need to be stripped ???….
Degree Of Detail
1. Everything changes!
a. Location, quality and quantity of ore
b. Prices for your product(s)
c. Costs
2. Long range plan:
a. Little detail, rough estimates
3. Short range plan
a. All the detail, detailed & accurate estimates
Planning Period
1. Life of the mine plan: to ultimate pit limit
2. Long range: five to then years
3. Budget: one year plan
4. Short range: monthly and quarterly plans
5. Production schedule: weekly and daily
DOLLARS - GRADES - TONNES
Note This:
1. Customize your planning system to correspond to
a. The need for information
b. Availability of data / information
c. Cost of developing the information
2. Planning systems and terminology differ from site to site
a. … and between the countries?
Mine Planning Sequence
1. Geologic Model
2. Economic Model
3. Pit Limits (LRP)
4. Pushbacks
5. Mining Schedules
6. Detailed mine plans and optimization studies
Mine Planning : 1st Step
Geologic ore body model
In: Results of exploration
Out: grades, tonnes, geometry, rock properties ……
Geologic Ore body Model
Stage 1: Outcome
Information on:
1. Existence, location, properties and quality of mineralization
2. The same for other materials within your property
3. Variety of other geologic information
Can one trust a geologist ?
Mine Planning: 2nd Step
Economic ore body model
In: Geological model, dilution, recovery, costs, prices, other
Out: Block values
Geologic or geological?
Example of Inputs
…. Required at this point:
1. Topography and geographical features
2. Ownership of the land, mineral rights, etc.
3. Other limits on pit boundaries (rrds, structures, etc.)
4. Inventory of environmental conditions & requirements
5. Estimate of costs: mining, processing, smelting, selling, etc.
6. Geological & geomechanical properties mat’ls to be mined
Step 2: Outcomes
1. Quantity, location and value of ore contained within the deposit
2. Quantity, location and cost of removal of other materials
Mine Planning : 3nd Step
Long Range mine plan (LRP)
In: economic model, mining restrictions (slopes, mining widths, other)
Out: Optimum (economic) pit limit
Floating cone (example)
LRP Goal: Pit Limits
Example of Inputs
…. required at this point
1. Regulatory approvals: what agencies are involved?
2. Production targets / goals & life of mine
3. Type location and cost of facilities and projects
4. Overheads: admin., facilities, services ….
5. Inventory/availability of resources: financial, technical, human
Step 3: Outcomes
1. Economic pit limit:
* Rate of return, other financial criteria
* Tons and grades (but no detailed schedule)
2. Physical pit limits
* May be different from economic ones
Mine Planning: 4th Step
Mine Life & Pushbacks
In: Size & location of deposit, pit limits, mining restrictions, “nested pits”, preferences …
Out: Stages in mine life
Stages, cutbacks, pushbacks, phases ….
Pushbacks
Step 4: Outcomes
1. What is the potential value of the mine
2. Where to start mining
3. What and when is to be mined
a. Not much detail; round figures only
b. Changes many be needed as the scenario changes
Mine Planning : 5th Step
Short range plans = production schedules
In: (a) Long range plan, updated geologic model; (b) Production requirements (t, %), equipment capacities, geotechnical restrictions, other
Out: sequence of mining
Example of Inputs
…….. required at this point:
1. Current status of the mine
2. Scheduled working time
3. Equipment availability, utilization, reliability and productivity
4. Mill / ore / coal recipient requirements
5. Human resources by skill / craft / profession
6. Availability of contractors and other external support available
Step 5 : Outcomes
1. Details of
a. Who mines what?
b. When?
c. How?
2. Resources and revenues are of lesser importance at this stage
LOOP BACK AT EACH STAGE to the economic model, LR plan, budget
1. Updated mining and other costs
2. Updated prices and receipts
3. Updated pit limits
4. Updated production rates
5. Updated environmental, regulatory and other requirements
6. Other updates: admin, eng’g, etc.