Introduction To Mine Planning

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INTRODUCTION TO MINE PLANNING

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PRESENTATION OUTLINE
 Precursor to mine planning
 Mineral exploration and orebody definition
 Mining operations
 Scope of mine plans
 Mine planning process

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PRECURSOR TO MINE PLANNING
 Mineral exploration

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PRECURSOR TO MINE PLANNING
 Orebody modelling or definition
 Orebody model information
 Block location (x, y, z coordinates), grade (Cu in %, Au in oz. per tonne, etc.), rock type and quantity of material (tonnes)

X, Y, Z Coordinates
Block Grade
Quantity of Material (Rock Type)

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PRESENTATION OUTLINE
 Precursor to mine planning
 Mineral exploration and orebody definition
 Mining operations
 Scope of mine plans
 Mine planning process

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MINING OPERATIONS
 Surface mining operations
 Open pit mining – metallic/non-metallic ore deposits

 Underground mining operations

http://www.superpit.com.au/PhotoLibrary/OpenPit/tabid/176/Default.aspx
Sublevel Stoping Sublevel Caving Block Caving Accessed on December 3, 2014

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MINING OPERATIONS

Stockpile

Ore Concentrate
Mine Process Refinery

Economy

Product
Waste
Waste

Dump Tailings Metal

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PRESENTATION OUTLINE
 Precursor to mine planning
 Mineral exploration and orebody definition
 Mining operations
 Scope of mine plans
 Mine planning process

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SCOPE OF MINE PLANS
 Strategic or long-term mine plan
 Operational or short-term mine plan

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SCOPE OF MINE PLANS
 Strategic or long-term mine plan
 Covers all aspects from resource definition to mine closure
 Establishes overall economy of the operation – value of mining business
 Maximize shareholder value or maximize the value of mining business

 Maximize undiscounted/discounted value of future cash flows

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SCOPE OF MINE PLANS
 Strategic or long-term mine plan
 Size or extent of operation
 Scale of operation
 Mining, processing, and refining capacities

 Production plan
 Life of operation

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SCOPE OF MINE PLANS
 Strategic mine plans
 Size or extent of operation
 Input – available resource
 Maximize undiscounted value of future cash flows

 Scale of operation
 Input – available reserves
 Production capacities – capital expenditure
 Opportunity cost – time value of money

 Production plans – maximize the discounted value of future cash flows

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SCOPE OF MINE PLANS
 Operational or short-term mine plans
 Production requirements
 Unit operations
 Drilling – blasting – loading – haulage

 Resource allocations – human and physical

Source: http://superpit.com.au/photos/mining/ Source: http://superpit.com.au/photos/mining/ Source: http://superpit.com.au/photos/mining/ Source: http://superpit.com.au/photos/mining/


Accessed on January 12, 2018 Accessed on January 12, 2018 Accessed on January 12, 2018 Accessed on January 12, 2018

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SCOPE OF MINE PLANS

Relative importance during the life cycle of a mining operation

Operational/Tactical mine plan


Type of mine plan

Strategic mine plan

Prospecting Exploration Development Production Closure

Life cycle of a mining operation

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PRESENTATION OUTLINE
 Precursor to mine planning
 Mineral exploration and orebody definition
 Mining operations
 Scope of mine plans
 Mine planning process

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MINE PLANNING PROCESS
 Mining method selection – surface vs. underground Inputs
 Material destinations – processing routes
 Scale of operation – production capacities Economic, Geotechnical,
 Production sequence or schedule Geological, Metallurgical

 Cut-off grades

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MINE PLANNING PROCESS
 Uniqueness of the mine planning process
 Size of the optimization problem
 Computational complexity

 Realistic mineral supply chain


 Multiple mines, materials, processes, products

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MINE PLANNING PROCESS
 Uniqueness of mine planning process
 Economic and geological uncertainty
 Commodity price
 Estimated mining block grades

 Current mine planning practice


 Are we considering all possible values of future commodity price?
 Are we considering all possible values of mining block grades?

 Stochastic mine planning – risk quantification under commodity price and geological uncertainties

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REFERENCES AND FURTHER READING
Management of mineral resources, creating value in the mining business, Juan P. Camus, SME, ISBN: 0-87335-216-5.

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