Planning to c
ompete
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To meet increasingly competitive coal
markets, emphasis on good exploration,
geological modelling and mine planning
systems at coal mines are more critical
than ever. In response to the recent
downturns in coal markets and outlook,
coal producers must react defensively
to protect profit margins. One response
is to reduce production as demand
declines. But to maximise profits in
competitive markets, mine technical
services departments should renew their
focus on improving existing operations
through excellent mine planning.
Effective exploration, geological
modelling and mine planning systems
depend on modern technology and
skilled, experienced geologists and
mining engineers. These systems
www.worldcoal.com 
Richard and
David Marston,
Marston &
Marston Inc.,
US, discuss data that may be relevant to improving
exploration, operations. This article describes
typical processes and software tools
geological that constitute an effective exploration,
modelling and geological modelling and mine planning
system.
mine planning
in a competitive Exploration
Exploration work should be carefully
marketplace. planned to yield the key results
necessary for mining development
work and operations at the lowest cost.
Scrimping on exploration substantially
are based on software products and raises the risk of lost production,
technical procedures that allow for poor product quality and missed
rapid updating and detailed analyses of opportunities. Shovel-front exploration
mining alternatives. Most importantly, is poor practice at any time, but in
these systems must be capable of rapidly challenging markets, competitive, quality
storing, retrieving and analysing all production is a key element in making
Reprinted from January2009 WorldCoal

Figure 1. Drillhole area of influence.
Figure 2. RAMS viewer ArcGIS information.
and maintaining sales. Therefore, mine
exploration activities should be geared
towards providing mine planners
and operations with the best possible
information to avoid potentially
devastating economic surprises.
Best practice exploration data
management should be built around an
enterprise-wide geographic information
WorldCoal Reprinted from January2009 
system (GIS), which should be a primary
concern of exploration, geology and
mine planning departments.
A mining companys fundamental
assets are truly clear only when tied
together spatially. Company decision
makers can then review the best
available exploration data within the
context of property and mineral control,
permits, mining and mine plans and
infrastructure.
Furthermore, enterprise GIS
should be designed and implemented
to meet strict standards and best
practices. All the resources relevant
information should be managed
within the enterprise GIS database.
This information should include all
geological and sampling data, land and
other records, any form of imagery and
mapping that shows current mines,
limits or boundaries on mining or
mining rights, and any other spatially
oriented data that may affect decisions
regarding the acquisition of adjacent
properties or mining operations.
Proper data management should
cross all departments within a
mining company. Given the expense
of collecting exploration
information, companies should be
very strict on storing and managing
the data in the best possible way to
check and retrieve it.
One such data management
system is Marstons Resource Asset
Management System (RAMS),
which uses ESRI ArcGIS software.
Projects begin with standardised data
management and organisation with
strict procedures for documenting
incoming client data, data checking
processes and any changes or revisions
to the base data. The incoming base
data includes any form of mapping,
imagery and electronic data files.
Map data and imagery is checked
and reconciled to a single map
projection and survey. Point data
is located and checked spatially
and through a standardised series
of accuracy and integrity checks to
catch and correct data entry errors or
omissions and prepare the data for
geological modelling. The database
is immediately available to all project
personnel and can be available to
client personnel via a secure internet
connection and a customised web
portal. The database may then be
archived and provided to the client, if
desired.
Geological modelling
Reliable geological modelling techniques
are critical to effective mine planning.
For public companies, accurate
geological modelling is a matter of
producing reasonable resource and
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Figure 3. Logs and correlation.
Figure 4. Geological cross-section of existing pit and coal seams.
reserve estimates that meet securities
exchange standards.
Reasonable geological interpretation
is dependent on accurately located,
reliable base exploration data. It is critical
that all relevant data is made available to
the geological modelling team.
Though often a matter of the
geologists or engineers preference,
software for modelling coal deposits
must adequately account for seam
quality variance, mineable partings,
intrusives and other deposit
characteristics in order to facilitate
reliable mine planning. The multiple-
seam, complex deposits prevalent in
western Canada, South America, Russia
and Indonesia require significantly
different modelling techniques to the
flat-lying deposits mined elsewhere.
Reliable mine planning begins
with a reasonable geological model
that accurately accounts for geological
variability within the deposit.
Operational mine planning should
be based on all available data within
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the area to be mined. This includes
base exploration data, pit mapping
and surveys, drill hole data, and in-pit
coal samples. Actual production and
coal quality should be systematically
reconciled with mine planning estimates
to ensure that accurate factors are
derived for the relative density of coal
and waste materials, total moisture, and
losses and dilution due to mining.
For operations that include coal
processing plant(s) (CPP), the geological
model should include reasonable CPP
product yield and quality predictions.
Coal washability data should be
completely integrated into a coal
producers data management system.
Washability data and CPP simulations
should be carefully reviewed and
analysed to reflect actual CPP
efficiencies given as mined coal plant
feed characteristics.
One key to optimising mine plans and
maximising clean coal product yields is
to understand and model the processing
plant capabilities. The geological model
should reflect yields that are likely,
given mining schedules. Where in-seam
variability or variability between seams
should dictate CPP media gravities and
other operating points, the geological
model should readily provide such
information to mine planners and
operations management in an accurate
and timely manner.
Marston uses Mincoms StratModel
system to model coal deposits.
StratModel provides effective tools
for modelling all structures, including
the manually intensive triangulation
and wire framing tools necessary for
complex, overturned deposits, such as
those found in the Rocky Mountains
of western Canada. StratModel is
geared towards sedimentary deposits
where structural control is primarily
stratigraphic, although major and minor
faults and folded structures also are
handled well.
StratModel demands consistent,
orderly treatment of all stratigraphic
units to be modelled. Marston
frequently models coal seams, intra-
seam partings and waste rock units that
serve as marker horizons or that require
extraordinary care, special handling
or disposal. All modelled strata are
maintained within a single, integrated
model with full accounting and statistics
on each unit.
The systems design requires
organised, consistent geological data.
The RAMS database includes tools to
ensure accurate, complete data transfers
in StratModels required format,
while StratModel provides complete
support for exporting shape files to
RAMS. Therefore, a projects RAMS
database is regularly updated to include
all modelled strata, coal quality and
other geologically controlled features
pertinent to geologists, mine planners
and management.
StratModel also includes a wide
number of analytical tools for resource
characterisation and analysis and
mine planning. These tools include
stratigraphy-controlled block modelling
and the capability to program custom
manipulations of the geological model
for engineering analyses; for example,
simple strip ratio maps or underground
opening and pillar sizes based on the
Salamon Formula, which is prevalent
in South Africa. Whenever possible,
geological models should be used to
Reprinted from January2009 WorldCoal
 map coal and other relevant strata, coal
quality and related information that is
essential to reliable mine planning.

Mine planning
Mine plans should be the primary
deliverables of a mines technical
department. Such plans should be
practical and sufficiently detailed to
clearly illustrate objectives and major
machine assignments to all of the people
responsible for achieving the plans.
Mine plans should reflect all available
geological information, mining limits
and management goals for achieving
profitable sales.
Mine plans should be well thought
out and incorporate practical advice
from operations regarding access and
unit operations scheduling. They should
Figure 5. Stripping ratio map.
also integrate all ancillary operations,
including mining equipment and CPP
maintenance programmes, waste and
tailings disposal and land reclamation
and environmental compliance. Every
mine plan should reflect all relevant
facts and circumstances as of the date of
the mine plan.
Mine planning should be systemised,
beginning with a long-term plan that
may be regularly refined in medium
and short-term plans produced for
budgets and operations. A long-term
schedule should be updated annually or
whenever market or mining conditions
change significantly and outside of the
base assumptions of the plan.
A long-term plan should account for
an acceptable range of market volatility.
That is, for any mine, a coal producer
should establish plans that will weather
expected changes in market prices
without changing the basic approach to
mining a deposit in the most economic
manner. These usually take the form
of sensitivity analyses to demonstrate
positive mining economics even if
market prices are reduced below the
base assumption.
Whenever a producer believes that
demand or prices have moved and are
expected to linger too far from the base
assumptions, the plan should be revised
accordingly.
A long-term plan should provide
basic mine development and mining
sequences as general guides for the
shorter-term plans. Concepts and
Figure 6. Area mine plan.
plans should be included for access,
mine layouts and key geotechnical

WorldCoal Reprinted from January2009  www.worldcoal.com


Figure 7. Ultimate pit plan.
design parameters for openings and
excavations, coal and waste transport
routes, mine, facilities and CPP
operating schedules, labour and mining
equipment requirements and land
reclamation plans.
Although a long-term plan is
typically performed using a relatively
large time interval (months, quarters,
years), the geologic, mining and design
data forming the plan basis should be as
detailed as possible to ensure a realistic
simulation of the work efforts required
to achieve desired coal production and
quality over the plan period.
Medium-term and annual mine
plans are normally used for capital
budgeting and development activities
required in advance of operations.
Generally, five-year plans and annual
budget plans should be used to analyse
and respond to medium and short-term
issues related to equipment and plant
needs, land acquisition, permitting and
similar matters. These plans respond
to specific lead time requirements; for
example, environmental permitting
application periods or potential market
opportunities.
Short-term operations planning
should be detailed and establish
assigned mining areas and monthly,
weekly and daily production goals for
all mining crews. A key requirement
for short-term mine planning is to
continually update and incorporate
all prevailing exploration, pit design
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and operating criteria. This includes
geological and analytical data, current
pit configurations and any productivity
issues affecting the mining fleet. Because
short-term planning cycles are frequent,
updates to the geological and quality
models with the latest data must be a
rapid, though controlled, exercise. As
part of every short-term plan, the mine
planners should update geological data,
current productivity and maintenance
schedules for equipment and any
significant variations in waste and coal
haulage routes.
Ideally, mine design and scheduling
software should be integrated with
database and modelling systems
to ensure easy access to base data,
modelling results and engineered
structure designs during planning
efforts. Compatibility tools are
essential for efficient data transfers
between independent packages,
especially software for specialised
design applications, such as Lerchs-
Grossman or Whittle pit shell analysis,
Earth Technologys 3d-Dig excavation
simulation package or the Ventsim
ventilation simulation software.
Marston uses a variety of tools
for various mine planning functions,
primarily the MineScape suite
of software, including database,
modelling and design modules. The
modelling systems provide a wide
range of analytical tools, including
a comprehensive surface expression
capability that allows mapping of
various planning factors, ranging from
simple in situ and product stripping
ratios to financial projections of cost/
delivered heat unit.
In MineScape, a wide range of
integrated mine design tools are
available to address the detailed design
of excavation, material storage and
impoundment structures, haul routes,
dewatering and drainage structures, etc.
Regularised block models are integrated
with the stratigraphic models for use in
external pit extent analysis programs,
such as Whittle or Lerchs-Grossman-
based packages. Finally, a full suite of data
import and export formats are available
for interface with any specialised software
suites required for a particular project.
For simulation of mine development
activities, Marston typically utilises
Minescapes Schedule module.
The package is integrated with the
MineScape design and modelling
tools and includes extensive tools
for equipment and fleet productivity
assignments, data storage and
accumulation and production
reporting. Because it is an integrated
package, the results of each sequence
are readily combined with model and
design surfaces for the rapid, accurate
production of mine status mapping from
proposed sequences. The basic database
for the long-range plan (LRP) system
then provides the initial database for
ongoing short-term planning efforts.
Conclusion
In past market downturns, technical
services departments were often the first
to suffer from staff and other reductions.
Geologists and engineers who are in
high demand in a booming market
for new projects are even more critical
to maintaining and improving profit
margins in a down market. Producers
should ensure that their mine planning
departments and systems are fully
modernised and honed to optimise
mining and coal products, enhance
operations and minimise risk. The keys
to an effective planning system are
software tools and processes that allow
for rapid updating and detailed analyses
of mining alternatives. Most importantly,
these systems must be capable of
storing, retrieving and rapidly analysing
all data that is possibly relevant to
improving operations.
Reprinted from January2009 WorldCoal