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MINE PLANNING &SCHEDULING RELATED SITES

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BUSINESS SCENARIO
Mine planning provides information about the blocks to be mined and the expected ore PARTNER OPPORTUNITIES - MINING
grades. The optimal sequence of blocks to be mined is determined. This process is Mine Planning Systems
typically performed in third party systems. The result of this planning process (tonnages
and grades) will then be used in the subsequent production planning.

Increasing Revenue

Improve capacity utilization

Life of Mine Planning The life of mine (LOM) plan spans the period from the current time until the year the final block of ore is
mined, giving the name life of mine . The LOM plan typically delivers a set of practical stope and pit designs
(scenarios), by which the planners decide which of the blocks of the mineral resource inventory they will
mine (pay blocks) and in which sequence (depending on practical design criteria).

For these scenarios a net present value (NPV) is calculated based on estimation of the tons mined, final
product recovery figures, production costs and sales and marketing information such as price, demand, and
risk parameters.

Short Term Mine The short-term mine production plan typically expands one to three years with a monthly resolution. It takes
Planning into account the defined development sequences, production characteristics, quantities and rates from the
Life of Mine Plan. These rates are validated against production capacity constaints, for example due to
planned maintenance activities. The result is a feasible mining production plan. Depending on the overall
Supply Chain Model, the short-term mine production plan may also be adapted to the demand coming from
the concentrate production process and ultimately customer demand.

The approved short-term mine production plan is the basis for the material requirements planning and the
annual cost budget.

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