Open Pit Planning Solution

Solution Overview
Datamine Software open pit planning solution incudes the following desktop
and web based applications:
• Complete strategic pit planning package covering pit optimization,
pushback generation, cut-off grade optimization, scheduling, haulage
optimization and stockpile management
• Highly visual and interactive complete design and scheduling package for
medium to short term planning
• Strategic risk analysis package understanding the main economic drivers
by performing sensitivity analysis and the probability of achieving certain
economic and mining outcomes using simulation
Strategic Planning: Introduction
Generating the optimal strategic plan for an open pit operation requires solving
complex mathematical problems which are bound by various constraints such as:
• The geological realities of the orebody, e.g. structure, grade distribution,
contaminants etc.
• The economic conditions for mining, e.g. mining and processing costs, commodity
value, discount rate, capital costs
• The engineering requirements for pit slope, dilution, mill recovery, minimum
mining width etc.

NPV Scheduler addresses these constraints to produce a

viable and practical strategic mine plan
Strategic Planning: Process Overview

NPV Scheduler includes pit optimization, pushback design, scheduling,

stockpiling and cut off grade optimization
Data Import
Example: Imported model showing
grade distribution Resource models can be imported from a range of
formats

Mapping of the model’s contents to required data

in NPV Scheduler is straightforward

Importing Resource Models and other data is simple. At each stage of the process automatic
reports are generated making data validation easy
Economic Model
Example: Calculated revenue
distribution in economic model
Economic Modelling
The economic values of each block are calculated as a
function of its geo-metallurgical attributes by specifying
parameters such as:
• The selling price of any commodity recovered by
processing where the recovery is defined as a
mathematical expression of the block attributes
• The unit cost of mining (ore and waste) and the unit
cost of processing (ore) including any adjustment
factors that apply
• Ore Dilution and Recovery
• The unit cost of rehabilitation for waste
• The additional costs for each unit of commodity

NPV Scheduler provides alternative methods for calculating whether blocks are ore as
well as optionally allowing for mining cost adjustments per bench
Ultimate Pit
Example: Wireframe of the ultimate pit and its
relationship to revenue distribution
Creating the Ultimate Pit
• A Lerchs-Grossmann (LG) method is used to
determine the ultimate pit for given prices, a
set of cost parameters and engineering
constraints such as wall slopes and pit limits
• The Ultimate Pit is a pit shell defining the
economic limits of mining for the given
deposit
• Nested LG Shells can be optionally computed
• Bench discounting can be applied when
generating the ultimate pit and LG shells

In addition to maximizing value, NPV Scheduler also has options for creating an
ultimate pit that maximizes the resource or meets blending requirements
Nested LG Shells
Example: Section through Ultimate Pit
model coloured on LG Shells
Creating the ultimate pit - Nested LG Pits
• By varying economic parameters such as metal price
in percentage increments a set of nested pits is
generated. Each pit represents the maximum value
ultimate pit that corresponds to the particular
price/cost parameters.
• The smallest pit is one that is still viable even under
worst economic conditions
• The largest pit represents the pit with the longest life
under best economic conditions
• Nested pits are in the order of highest to lowest
value per tonnne mined

Nested LG Shells can be generated using one of three

parameterization options: price, profit, or mining cost
The Optimal Extraction Sequence (OES)
The OES is the extraction sequence for all blocks in the
model which provides the highest possible NPV for a
logically possible sequence of mining
Within NPV Scheduler an OES is calculated at each stage
of processing
As designs and schedules are modified to be more realistic
the NPV of a project tends to decrease

Example: The Ultimate Pit OES

Unique to NPV Scheduler, the OES reflects the physicality of the plan
meaning the practicality of any design and schedule can be validated
 UltimateUltimate
Optimizing Pit: Optimization using boundary
Pit using control
boundaries
Ultimate Pit optimization can take into account
boundaries such as property limits and exclusion zones
The cost of this
boundary prevents
mining Costs can optionally be associated with each boundary

The following types of boundaries can be used:

• Mining must occur within boundaries

• Mining must not occur within boundaries
• Mining may be avoided within boundaries
depending on associated costs and block values

Reports include summaries of capital costs

NPV Scheduler has powerful tools for controlling ultimate pit limits
Pushbacks
Example: Sections showing pushback
Generating Pushbacks
configuration The Ultimate Pit OES is used as an input to the Pushback
generator:
• The objective of the pushback generator is to create
pushback shapes which meet a primary target such as ore
tonnage whilst honouring constraints such as minimum
mining width, depth and position
• Pushback shape, size, and location can be controlled
using imported or defined boundaries
• The Ultimate Pit OES is used to provide contiguous blocks
of ore that define practical mining shapes which are
adjusted to meet the physical criteria of the pushbacks
• 5 types of pushback control boundary are supported

NPV Scheduler quickly generates practical pushbacks meaning many

alternative designs can be considered
Pushback Design
Pushback Design details
• PB1i represents a grouped sequence of blocks established
by the Ultimate Pit OES
• These groupings are expanded to create PB1ii by including
later sequenced blocks so that a specific ore tonnage
condition for the first pushback is achieved
• Considering all remaining blocks PB2i groups are created
using sequence of blocks established by the Ultimate Pit
OES
• These groupings are expanded to create PB2ii by including
later sequenced blocks so that a specific ore tonnage
condition for the second pushback is achieved
• Further addition of blocks to create PB2iii joining pushback
two to the previous pushback
• Manual adjustments/modifications can be made
• Output is the Pushback Optimal Extraction Sequence (PB-
OES)
Schedule
Scheduling pushbacks
The objective is to find a practical sequence maximizing NPV when
mining the pushbacks using the following inputs:
• Pushback OES
• Scheduling targets (primary and secondary)
• Pushback maximum sinking rate
• Bench lags between pushbacks

The scheduler allows mining of two or more pushbacks at the same

time while targeting high NPV and other objectives

Existing pushback designs can be imported and scheduled

The scheduler considers the impact on all future periods; it does

not just schedule one period at a time

The Scheduler produces a schedule that is practical, meets production targets

and maximizes the use of processing capacity
Scheduling Details: Targets and Controls
• Primary target
• Secondary targets
• Can be defined as rates or ratios
and varied over time
• Min, max and ideal (target) limits
• Multiple targets can be defined
• Pushback Control
• Sinking rate – number of benches
mined per pushback per annum
• Pushback availability (start dates)
• Dependencies between pushbacks
• Rescheduling
Scheduler OES
Example: Schedule Extraction Sequence
Capital Costs
NPV Scheduler can manage the following capital costs:
• Location dependent (obstacle removal)
• Pushback start up costs
• Costs incurred at specified time periods
independent of mining rate
• Costs incurred at specified time periods whose
timing may change with mining rates (Mine Flow
Optimization)
Location dependent and start up costs are taken into
account during scheduling optimization.

Capital costs are included in all revenue and NPV

calculations and in all reports.
 Haulage Optimization Overview
• Designed to satisfy requirements of Life
of Mine studies
• Offers rapid evaluation of different
mining strategies
• Offers rapid evaluation of different truck
fleets
• Optimizing mining schedule for truck
hours allows review of fleet size
Haulage is divided into four components:  How many truck are needed to move
• p = from loading point to bench exit and back XX tonnes?
• P = from bench exit point, up ramp to pit exit point, and back
• F = from pit exit to destination entry and back
 How many tonnes can be moved with
• D(x) = from destination entry point to dump point and back YY trucks?
where D is linear function of total tonnes delivered to the dump (x)
Material Allocation Optimizer
Material Allocation Optimizer (MAO) uses a linear programming implementation to offer a complete solution
for helping the engineer determine how to best transport, stockpile and treat material to generate all required
products

• Inputs to MAO can be material from pits, stockpiles, or externally sourced material
• Destinations determined by MAO can be processing methods and / or stockpiles which also serve as
inputs for the next periods
• Destinations can have any number of targets expressed as rates or ratios of elements
• Capacities of destinations can be unlimited (leach pads or waste dumps), limited (stockpiles) or specifically
targeted (processing plants)
• Global constraints can be set over several rock types, for example to ensure a processing plant has a fixed
ratio of rock types as its input
• Destinations can have positive or negative costs. A negative cost is equivalent to a selling price allowing a
number of complex products that vary over time to be specified
 Material Allocation Optimizer
Additional MAO features:
• MAO handles multiple standard products,
multiple processing methods and
stockpiles simultaneously
• It keeps mining stockpiles beyond the life
of the mine
• On output, it produces a sub-cell model,
where each sub-cell is assigned its
optimal destination and time of mining
• The output model is the basis for all
further reports; the schedule is based on
physical locations rather than just a
spread sheet
Cut Off Grade Optimization
The Mine Flow Optimizer (MFO) can be used to determine whether the NPV of the mine plan can be
increased by accelerating the mining rate in order to process higher grade ore sooner without upgraded
processing capacities.

The NPV will increase if this higher grade ore is processed instead of ore scheduled for processing by the
Scheduler.

MFO includes in its optimisation the consideration of whether the ore being replaced by mining faster
should be stockpiled or treated as waste. If it is to be stockpiled MFO determines when it should be
processed.

Increasing the rate of mining to release higher grade ore sooner effectively increases the ore cut off
grade during the periods for which the mining rate is increased.

Because the input into MFO is an OES there is no averaging of grades over a year and
there is much greater certainty that the increase in NPV can actually be achieved
Optimization of Multiple Pits
MultiMine Scheduler (MMS) extends the functionality of NPV Scheduler to allow simultaneous scheduling of several
mines represented by distinct block models
• MMS is fully integrated with NPV Scheduler. You can work on a MultiMine project starting with importing
geological models (at least two) all the way from economic model generation through pit optimization, pushback
generation, scheduling, to material allocation and mine flow optimizations
• In order to use MMS, there must be common products and global constraints for the entire mine complex e.g.
maximum metal production capacity, total rock movement etc.
Advantages:
• MultiMine Scheduler allows the process of optimization, pushback generation and scheduling to be done in the
same environment
• All operations are carried out simultaneously for all mines and the pushback designs can be easily adjusted to
refine a MultiMine schedule
• The Material Allocation Optimizer and Mine Flow Optimizer can be used to re-evaluate the multi mine schedule
to account for time varying economic parameters, stockpiles, multiple blended products and cut off grade
optimization
NPV Scheduler Outputs
Surfaces:
• Mine specific pit topographies (surfaces) are viewable and exportable as 3D objects, contours and coded
in the block model
• Lerchs-Grossmann ultimate pits and phases, pushbacks and the scheduled annual pits can be visualized
and exported
Reports and Charts:
• Customizable spreadsheet reports and charts including all mines reports, pit specific reports, bench
reserves (mine specific only) and all mines and mine specific grade curves
Parcel Model:
• Block model in Datamine or Text format where each parcel (sub-cell) is tagged with its processing
destination (processing method or stockpile), mining cost, processing cost, profit, LG shell, Pushback,
Scheduling period, and Scheduler OES
Geological Risk Assessment
• A facility that allows the results of conditional simulation to be used to evaluate the risks inherent in the
given mineral deposit due to uncertain geological information
• Option to calculate the probability distribution (variance) of the key variables (NPV, Profits, Costs,
Tonnages, etc)
• Option to generate ‘safe’ pits, or pits that are resilient to changing geology
 Geological Risk Assessment
Purpose: to manage risk associated with
uncertainty in the resource model

The resource model used to generate strategic plans

contains estimated grades

Conditional simulation is the process of generating a

number of equally likely resource models each of
which will generate an (equally realistic) alternative
mine plan

An ultimate pit is generated for each grade

simulation and the results are analysed
Geological Risk Assessment

Risk Rated Pits are generated by examining how frequently a

block occurs in an ultimate pit. The 100% safe pit is the one
defined by the model blocks that occur in every ultimate pit.
 Geological Risk Assessment
The trade off between risk and value

Modest sacrifice
An assessment can be made of potential in confidence for
value versus the probability of achieving significant
increase in value
that value

Confidence in the pit shape’s influence Likely range of pit

selection that
from the resource model can be balances risk
sacrificed for more value versus value

Significant sacrifice
in confidence for
modest increase in
value
Short Term Planning: Methodology
Inputs Setup Schedule Reporting
 Mining Blocks  Calendars  Block Schedule  Excel™
 Reserves  Machines  Process Flow  EPS Gantt Chart
 Haul Trucks  Animations
 Haul Routes  Plots
 Targets
 Activities/Process Flow
Short Term Planning: Calendars
The definition of mine infrastructure including stockpiles, processing methods,
equipment, haul routes, and calendars can be set to any required level of detail

• Scheduling Periods
• Non-Working days and Downtimes
• Planned Maintenance
Short Term Planning: Destinations
• Processing plants
• Stockpiles
• Waste dumps
Short Term Planning: Machines and Trucks
• Machines
• Haul Trucks
• Performance
Short Term Planning: Network Setup
The haulage network can be
defined using multiple:
- Bench exits
- Pit Exits
- Intersections
- Destinations
- Dump points
- Haulage roads
- Sectors
Short Term Planning: Interactive Scheduling

Interactive scheduling is straightforward with dynamic feedback

on whether targets and constraints are being met
Short Term Planning: Reporting

Reporting includes plans, sections, tables, animations,

Gantt charts, and output to reporting tools such as Excel
Summit Web based Solution
Summit is a web based platform for
delivering Datamine’s next generation of
REPORTING
geological modelling and mine planning
solutions

Development is initially focussed on four

solutions:

• Strategic Open Pit Planning

• Resource Estimation
• Underground Stope Optimisation
• Geological Database Reporting

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 Summit: Strategic Open Pit Planning
Datamine’s Summit platform uses high performance computing
for strategic analysis
• Sensitivity Analysis
Quickly determine the main economic drivers of a project
• Simulation
Investigate the probability of certain outcomes using probabilistic risk analysis

Summit enables you to carry out studies in days rather than months
to discover information about your projects that would previously
have been undetected

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Summit: Sensitivity and Simulation Analysis
Sensitivity and Simulation analysis is not new but is rarely carried out with a high degree of rigour during mine
planning studies:
• Computation time can be lengthy

• Requires long preparation and set up time

• Prone to user errors

• May not detect all project characteristics

• Relies on a high degree of local data management and individual commitment

• Desktop applications can produce individual results, but provide an insufficient platform for delivering
reliably processed and auditable studies to management

Summit lowers the barrier of entry to carrying out studies and enables these to be
done collaboratively by teams of engineers
Drivers for analysing risk = more and more scenarios

• Volatility of prices, costs, exchange rates

• increased need for sensitivity analysis
• increased need for simulation analysis
• Processing options
• increased need to re-run multiple pit optimisations
for sensitivity and simulation analysis

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 So What is the Result?
Results to date Development sequence
 2 weeks work done in 6 hours
• 1. Pit optimisation – sensitivity

– 90% time saving • 2. Pit optimisation – simulation & risk

In Development
• 3. Pushbacks and material movement

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Summit: Sensitivity Analysis Example
For each input variable produce a set of ultimate pit
designs that correspond to the variable’s possible input
values whilst keeping all other variables at their base case
1 10 value
2 11
3 12 For example to determine the sensitivity to Mining Cost:
4 13
5 14 • Keep Metal Price, Mill Processing Cost and Slope
6 15 Angles at base case values
7 16
8 17 • Produce 9 designs for each value of Mining Cost
9 18 Then repeat for Mill Processing Cost and the other
variables
In this example, with only 4 input variables, 33 ultimate pits
are generated

A Platform is required to manage the data, make use of

multiple computers and produce management reports in an
acceptable time frame
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Summit: Simulation Analysis
A probability
distribution is assigned
Simulation analysis can be used to determine the resilience of a plan to variations
to each variable
in expected conditions
4
1
2
3 Each variable is provided with a probability distribution
5

The distribution may be specified in alternative ways (e.g. normal, triangular

distribution)
3
1 In this illustration a probability has been assigned to each of the variable values
4
5
2 from which a distribution is inferred

The sum of the probabilities for each variable is 1

4 From this data, using the probability distributions and Monte Carlo simulation, a
5
2 large number of cases are generated, each of which uses a mix of variable values.
1
(Unlike sensitivity cases where the value of only one variable changes per case)
3
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Simulation Analysis - Correlation
• Changes in parameters such as commodity prices may be related; this can be taken into account in the
simulated inputs
• Ten Year rate of change in price for Copper v Nickel and Gold v Silver are shown below*

• Currently SOPP allows parameters defined with a normal distribution to be correlated

*source http://www.indexmundi.com/commodities/

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Summit: Simulation Analysis

Probability of achieving certain outcomes can be investigated

There is a 90% probability that the Recovered Copper will be greater than
163,000 t.

Probability of the
Rec.NPV
Cu being
beingbetween
between162,000
$110M
$100M and
t and$140M
$150M
172,000
is 50.6%
78.8%
t is 78.9%

Rec.NPV
Probability of the Cu being
beingless
lessthan
than162,000
$100M is
$110M t is31.1%
10.4%
6.5%

Rec.NPV
Probability of the Cu being
beinggreater
greaterthan
than172,000
$150M is
$140M t is18.4%
10.8%
14.5%

With a sufficient number of simulations it is possible to

understand the probability of achieving certain outcomes
 Benefits of Summit
For the end user For the IT department
• Trusted techniques unlocked in a modern • 99.9% uptime
computing environment • No local installations or software
• Rapid pit optimisation for sensitivity and deployment
simulation analysis • Scalable to level of usage
• A practical way to understand • Lower IT costs
economical and geotechnical risks
• Quality reporting, easily shared instantly
• Work anywhere, anytime

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Questions