PLANIFICACIÓN MINERA

Introduction and planning process

ASIEH HEKMAT
SESSION 1
No Date Theme
1 7/8/2018 An introduction to mine planning
2 9/8/2018 Planning process and strategic mine planning
3 14/8/2018 Value chain- Cost estimation methods
4 21/8/2018 Mine life and production rate
5 23/8/2018 Open pit/underground Cost calculation
6 28/8/2018 Common production planning algorithms
7 30/8/2018 Open pit optimization
8 4/9/2018 General principles of cut off grade
9 6/9/2018 Lane algorithm -1
10 11/9/2018 Lane algorithm -2
11 13/9/2018 Cut off grade for Polymetallic deposits
12 20/9/2018 Cut of grade- Open pit and underground selective mining
13 25/9/2018 Mine phases and pushback definition
14 27/9/2018 Midterm exam
No Date Theme
15 2/10/2018 Uncertainties in mine planning
16 4/10/2018 Mining Investment - Understanding the Risks
17 9/10/2018 Underground cost estimation
18 11/10/2018 Block caving mine planning
19 16/10/2018 Sublevel stopping/ sublevel caving
20 18/10/2018 Underground mine planning- Room and pillar
21 23/10/2018 Feasibility studies and project Financing
22 25/10/2018 Project management -1
23 30/10/2018 Project management - 2
24 6/11/2018 Linear programming for optimizing mine performance
25 8/11/2018 Game theory
26 27/11/2018 Data envelopment analysis
27 29/11/2018 Presentation
28 4/12/2018 Final exam
29 13/12/2018 Recuperation exam
References
• Hustrulid, W. A., Kuchta, M., & Martin, R. K. (2013). Open pit mine planning & design. Boca
Raton, FL: CRC Press.
• Kennedy, B. A. (2009). Surface mining. Littleton, CO: Society for Mining, Metallurgy, and
Exploration.
• SME mining engineering handbook: vol I. (2011). Society for Mining Metallurgy and Exploration
(SME).
• Rendu, J. M. (2008). An introduction to cut-off grade estimation. Society for Mining Metallurgy
and Exploration (SME).
Final grade
 Midterm exam: 35%
Rules of the class
 Final exam: 35%
If a student disturbs the concentration of the
 Project:20%
class, he/she should leave the class and if it
◦ Presentation: 5%
happened two times, the final grade of that
◦ Quiz: 5%
◦ Project exam: 10% student will calculate considering 70=4
 Laboratory: 30 %

Final grade: 60 = 4
Mineral Supply process
$ Exploration Discovery
Change in market

Delineation
Advance in technology

Demand for mineral

Occurrence of ore product
deposit

Develop mine
extraction facilities
Sell product
$
Mine and process
Mineral Supply process
A positive change in the market place create a new or increase demand for a mineral product.

In response to demand, financial resources are applied in an exploration phase resulting in the
discovery and delineation of deposit.

By increasing in price and/or advances in technology , previously located deposits may become
interesting.

Deposits must be thoroughly evaluated regarding their economic attractiveness. This evaluation
process will be termed the planning phase of a project.
Mine planning
Based on the results of planning phase, the decision will be made as to weather or not to
proceed.

Production or
Mine
Decision GO operational
development
phase
Development profile
Definition Reserves
Resources

Project Development

Mine Operation
Mine planning objective
The objective of mine planning is to produce a feasible mine plan
that maximizes the net present value (NPV).

In some cases the objective may be different

Mine planning objective
 Maximize short term cash flow from the operation

 Maximize employment (government- owned mine)

 Maximize resource recovery (Regularity control)

 Maximize the mine life

Constraints in open pit mining
 Social and regulatory constraints

 Technological constraints

 Geometric constrains

 Economic constraints in the form of available capital

Mining Phases
Phase PLANNING IMPLEMENTATION PRODUCTION

Concept
Stage Study Prelim Feas Start up Operation
Study Study COMM
Design &
Construction

Milestones
Investment decision

Relative ability to influence cost (Lee (1984))

Planning Stages
Conceptual study

Using comparative methods of scope definition and cost estimation techniques to identify a
potential investment opportunity.

The main objective of this stage is to highlight the principal investment aspects of a possible
mining proportion.

The preparation of this study is normally the work of one or two engineers.

The findings are reported as a preliminary valuation.

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Planning Stages
Preliminary or Pre-feasibilty Stage

An intermediate stage between a relatively inexpensive conceptual study and relatively

expensive feasibility study.

This stage can be done by two or three man team or a multi-group effort.

Objective is to determine whether:

• The project concept justifies a detail analyses.
• Any aspects of the project are critical and necessitate in-depth investigation
through functional or support study.

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Planning Stages
Feasibility study

Provides a definitive technical, environmental and commercial base for an

investment decision.

During this stage the following parameters are define:

- Production capacity - technology investment
- Production costs - Sales revenues
- Return on investment

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Planning cost and accuracy
Depending on the:

◊ Size of the mine ◊ nature of the project ◊ type of study

◊ Number of alternatives to be investigated

Cost of study Acceptance error

Plan stage
(%capital cost of the project) (%)
Conceptual study 0.1-0.3 ±30
Preliminary study 0.2-0.8 ±20
Feasibility study 0.5-1.5 ±10
Lee (1984)

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Planning Process General preparation
Perform stakeholder Determine proposed scope

Preparation of inputs for the study

Mining and
Resource information Commodity demand Mining cost
Environmental Laws

Framing
Determine a set of decisions and alternatives

Assessment
Conduct the modeling, optimization and economic evaluation of alternatives

Selection
Select the best alternative plan

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Strategic mine planning
Mine Planning
The process to get the right material out of the mine at the right time to
obtain the lowest possible cost per unit of final commodity product in order
to fulfill the business targets of the company.
Strategic mine planning is the process where the mine planning process is
integrated and aligned with the strategic objectives of the company which
involves continuous adjustments to changes in the business environment.

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Strategic mine planning
Seeks to answer how best to develop an orebody in support of
the objective of maximizing NPV.

Strategic planning should continue throughout a mining project's

life, from scoping studies through active mining to the end of mine
life.

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Strategic mine planning
Strategic planning establishes the potential project value on the bases of:

1. Designing the shape and extend of the final pit limit

2. Defining the optimal mining sequence
3. Defining the destination of each block
4. Establishing the rate at which the deposit should be mined or
processed

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Strategic mine planning
Environmental aspects

strategic mine planning should also consider the environmental and waste
handling impacts associated with mine development to ensure that
adequate baseline and technical studies are initiated to support future
planning work and regularity

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Strategic mine planning

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10 things you should know about Strategic Mine Planning for Open Pits
1- Objectives must be clearly understood and communicated

Objectives are provided to planning engineers from

corporate/management teams. Each objective (e.g.
maximising NPV) requires a separate strategic plan
and a differing set of policies. Objectives are
generally achievable only by compromising other
objectives. Input from all departments is necessary
to develop and implement a practical and dynamic
strategic plan.
10 things you should know about Strategic Mine Planning for Open Pits
2- Selecting the appropriate pit size can significantly improve project value
A little known fact is that a Revenue Factor 1.0 pit shell is never the optimal pit and can often increase
project risks. A different pit shell will often provide a higher NPV and reduce project risk.

3- Practical cutback sequencing is key to deferring waste stripping

Designing practical cutbacks that can be mined separately allows waste mining to be deferred, which can
significantly add to the project’s NPV and decrease start-up capital. Deferral of waste stripping is limited
primarily by practical sink rates.
10 things you should know about Strategic Mine Planning for Open Pits
4- Steady state mining schedules with fixed cut-offs are not optimal
Mineral deposits have variable material characteristics (grade, hardness, density etc.). A variable
mining rate enables higher value material to be targeted early and to defer waste mining where
practical. The aim is to harness the deposit variability and develop dynamic planning policies to
add value.
5- How to calculate important cut-off grades
Marginal Cut-Off (MCOG) (where marginal cost is processing unit cost per tonne ore).
10 things you should know about Strategic Mine Planning for Open Pits
Operating Cut-Off (OCOG) (where total cost is mining + processing unit cost per tonne ore).

These two cut-off points can be used to define processing pathways.

10 things you should know about Strategic Mine Planning for Open Pits
6- Plant throughput and metal recovery trade-off should be assessed
The relationship between metal recovery and plant throughput should be examined to identify whether
a small sacrifice in metal recovery could increase plant throughput, improve metal production and cash
flow.

7- Density and processing characteristics are as important as grade

The quantity of recovered metal is equally weighted by density, processing recovery and grade.
Geological sampling and estimating the variability in density and processing recovery/throughput
enables the next level of project optimization.
10 things you should know about Strategic Mine Planning for Open Pits
8- Assess multiple options to identify the correct strategies
A robust options analysis will help you to identify the optimal strategy for a number of possible scenarios.
Assessing a single option will not determine the optimal mine plan.

9- Modern software enables fast options assessment

Advanced optimization software can now be used to assess multiple strategic plans in days.

10- Garbage in = Garbage out

Understanding the accuracy of your assumptions that underpin your mine plan is vital to developing a
proper strategic plan. When actual operating data is unavailable, a first principles approach is the most
robust and defendable technique for equipment, labor and cost estimation.
Long range planning
Or long term production planning begins with prefeasibility
studies and is ongoing throughout the mine life.

OBJECTIVE ?
Practical mining constrains now being to be examined in more
detail.

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Long range planning (LRP)
LRP advances the activities of strategic planning and evaluating in greater
detail alternative planning scenarios for the mine’s development.

Long range production planning (scheduling, equipment and labor

forecasts, etc.) is done on the basis of annual time periods, although in
the near term (0 to 5 years) quarterly planning should be conducted,
and in the far-term (beyond 20 or 30 years) planning may employ up to a
5 year time period.

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Short range planning (SRP)
Or production planning, involves detailed operations planning for a rolling
twelve to eighteen month period, normally on a daily, weekly or bi-weekly,
monthly, and quarterly basis.

The plans specify the production targets, maintenance activities, what

equipment is to be used, where it will be located, the production rate
expected of each piece of loading equipment, and where the material mined
is to be routed.

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Short range planning (SRP)
Key considerations include :

 Blending for the process plant,

 Planning the dump advance,
 Ensuring the correct handling of potentially acid generating rock (PAG)
 Maintaining waste stripping in support of the LRP,
 Ensuring adequate ore inventories (ore which can be mined without
further waste stripping).

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 Geological Information
Hydrological Information
Mining Project
start up Geo-mechanical
Mine planning
Information

Economical Information

Mine design

Long term

Production planning
Economical evaluation Medium term
Equipment selection

Short term
Selection the
best scenario

Mining Process 35