Introduction

• The operation and management of a large open pit

mine is an enormous and complex task, particularly
for mines having a life of many years.
• Optimization techniques can be successfully applied
to resolve a number of important problems that arise
in the planning and management of a mine.
• These applications include: ore-body modelling and
ore reserve estimation; the design of optimum pits;
the determination of optimal production schedules;
the determination of optimal operating layouts; the
determination of optimal blends.
Introduction
• Optimum pit design plays a major role in all stages
of the life of an open pit: at the feasibility study
stage when there is a need to produce a whole-of-
life pit design; at the operating phase when pits
need to be developed to respond to changes in
metal prices, costs, ore reserves, and wall slopes;
and towards the end of a mine’s life where the final
pit design may allow the economic termination of a
project.
• At all stages there is a need for constant monitoring
of the optimum pit, to facilitate the best long-term,
medium-term and short-term mine planning and
subsequent exploitation of the reserve.
• A fundamental problem in mine planning is that of
determining the optimum ultimate pit limit of a mine.
• The optimum ultimate pit of a mine is defined to be
that contour which is the result of extracting the
volume of material which provides the total maximum
profit whilst satisfying the operational requirement of
safe wall slopes.
• The ultimate pit limit gives the shape of the mine at
the end of its life. Usually this contour is smoothened
to produce the final pit outline.
• Three stripping ratios which can be
defined:
• Overall Stripping Ratio
• Incremental (Instantaneous) Stripping
Ratio
• Break-even or maximum Stripping Ratio
• Overall stripping ratio is the ratio of the
total tonnage of waste divided by the total
tonnage of ore contained in the final pit
• Incremental stripping ratio (or
instantaneous stripping ratio)is the ratio of
waste tonnage to ore tonnage as a result of
expanding the pit by a unit volume (ISR)
• Break-even stripping ratio is the ratio of
waste tonnage to ore tonnage where the
cost of the waste removal exactly equals the
value of the mineral.
• Ultimate pit determination in each period of
time is a function of financial affairs. This
function is well defined by Break-Even
Stripping Ratio (BESR).

• BESR= (Revenue per tonne of ore - production cost per
tonne of ore) / Stripping cost per cubic meter of waste

• Revenue per tonne of ore= grade* recovery* selling price
per tonne of ore
• Production cost= mining cost + processing cost
• For an open pit operation, the value of
metal is Rs 210 per Kg and recoverable
grade is 1.2 %. Production cost per
tonne of ore inclusive of mining and
processing but excluding stripping is Rs.
2000. If the break even stripping ratio is
3.43 m3/tonne, what will be the stripping
cost.
(Ans. Rs. 149 per tonne)
Importance of Ultimate Pit
• As the first step for long or short-range planning, the
limits of the open pit must be set.
• The limits define the amount of ore minable, the
metal content, and the associated amount of waste to
be moved during the life of the operation which is
important in deciding the size of the various HEMM.
• The size, geometry, and location of the ultimate pit
are important in planning waste dumps, access
roads, concentrating plants, and all other surface
facilities. Knowledge gained from designing the
ultimate pit also aids in guiding future exploration
work.

• Ultimate limits of an open pit, which define its size
and shape at the end of the mine’s life, is the pit with
the highest profit value.

• The shape of mining area at the end of mining
operation or final limits of a mine must be designed
before starting the operation.
• According to the designed final pit limits, mining
operational parameters such as width, length and
depth of mined pit, opening track ways, location of
waste dump, stripping ratio, mine life, mineable ore
tonnage, waste tonnage and production scheduling
can also be determined.

• Optimum pit limits are usually designed with the use of the
block models.
• Geological block model, which presents the reserve as a
combination of numerous small blocks, is determined by inverse
distance or geostatistical methods.
• Then the economical block model is calculated by applying cost,
price and other parameters to each block.
• In this model ore blocks have positive values and waste blocks
have negative values.
• Most of the optimum pit limits methods use the economical
block models to determine the pit limits. The methodology is
searching for a combination of blocks with the maximum
economical value at current economical and technical condition.
Block Modelling
• An early task in mine management is the establishment of an
accurate model for the deposit. Though a number of models are
available, the regular 3D fixed-block model is the most
commonly used.
• This model is based on the ore body being divided into fixed-
size blocks.
• The block dimensions are dependent on the physical
characteristics of the mine, such as pit slopes, dip of deposit
and grade variability as well as the equipment used. The centre
of each block is assigned, based on drill hole data and a
numerical technique, a grade representation of the whole block.
• The numerical technique used is some grade extension
method such as : distance weighted interpolations, weighted
moving averages and kriging .
• Using the financial and metallurgical data the net profit of each
block is determined.
Block Modelling
 Net Value Calculation
• Cu grade- 0.5%
• Cu Price- Rs. 350 per Kg
• By product Value- Rs. 100 per tonne of Ore
• Mining Recovery- 90%
• Milling Recovery-95%
• Refinery Recovery-94%
• Amount of copper contained per tonne of ore = Grade x
Overall Recovery x1000 Kg
• = 0.5x0.9x0.95x0.91x1000/100 = 4 Kg
• Gross value per tonne of Ore= 350x4 + 100 = 1500 Rs.
• Cost of Mining- Rs. 350
• Cost of Milling- Rs. 200
• G&A cost- Rs 100
• SRS Cost- Rs. 100
• Net Value per Tonne of Ore= 1500-750
• Rs. 750 per tonne of ore
Develop a net value- Grade Curve
Grade (% Cu) Value Per Tonne of Ore
0 (Rs) -750
0.1 -370
0.2 -90
0.3 220
0.4 470
0.5 750
0.6 1030
0.7 1310
 Net Value -Grade Curve For Copper Deposit
y = 2879.8x - 686.67
1500

875

Net Value -Gra

250

-375

-1000
0.0 0.2 0.4 0.5 0.7
Determination of break even cut off grade

• The break even cut off grade is defined as

the grade for which the net value is zero.
• In the above equation putting y=0, one will
get
X =( 686/2879) x 100 % = 0.238%
Developing a Stripping Ratio Grade Curve

• The cut off grade distinguishes that

material which can be mined and
processed with a net value greater than or
equal to zero.
• Zero net value- Can not pay anything for
stripping
• Cost of stripping – Rs 250 per tonne
 Stripping Ratio Grade Curve
6.0

4.5

Stripping Ratio G
y = 11.42x - 2.6646
3.0

1.5

0.0
0.0 0.2 0.4 0.5 0.7
 Mineral Inventory
Grade (% Cu) Tons (in Grade (% Cu) Tons (in
Thousands) Thousands)
> 3.2 25 1.4-1.6 335
3.0-3.2 22 1.2-1.4 590
2.8-3.0 10 1.0-1.2 1030
2.6-2.8 43 0.8-1.0 1370
2.4-2.6 55 0.6-0.8 1810
2.2-2.4 55 0.4-0.6 2030
2.0-2.2 80 0.2-0.4 2350
1.8-2.0 135 0-0.2 20000
1.6-1.8 320
 Tonnage Vs Grade Class Interval
10000

7500

5000 Tonnage Vs Gra

2500

0
> 3.2 2.8-3.0 2.4-2.6 2.0-2.2 1.6-1.8 1.2-1.4 0.8-1.0 0.4-0.6 0-0.2
 Cumulative Tonnage as a function of Cut Off
Grade


Grade Cumu. Tonnage Grade Cumu. Tonnage

(1000000 tonnes) (1000000 tonnes)
3.2 0.03 1.4 1.08

3 0.047 1.2 1.67

2.8 0.057 1 2.7

2.6 0.1 0.8 4.07

2.4 0.155 0.6 5.88

2.2 0.21 0.4 7.91

2 0.29 0.2 10.26

1.8 0.425 0 20.26

1.6 0.745
 Cumulative Tonnage Vs Cut Off Grade
30.00

22.50

Cumulative Tonn
15.00

7.50

0.00
0.0 1.0 2.0 3.0 4.0
Average Grade as a function of Cut Off Grade


Cut off Grade Average Grade Cut off Grade Average Grade

3.2 3.2 1.4 1.92
3 3.07 1.2 1.78
2.8 2.98 1 1.49
2.6 2.82 0.8 1.35
2.4 2.68 0.6 1.1
2.2 2.49 0.4 0.95
2 2.32 0.2 0.7
1.8 2.22 0 0.45
1.6 2.05
 Average Grade Vs Cut off Grade
4.00

3.00
Average Grade Vs

2.00

1.00

0.00
0.0 1.0 2.0 3.0 4.0
Design procedure in an open pit mine with regard to UPL
determination
• The basic models which are used for the
analysis are as follows:

Where R is overall recovery coefficient of the mineral processing (decimal

fraction), g is ore grade (decimal fraction), p is the final product price per
tonne, c1 is concentrating cost, c2 is the costs of further treatment such as
smelting cost and refining cost per tonne of
final product, b is the mining cost per tonne of ore, and a is waste
removal cost per tonne.
Determination of Ulitmate Pit
• The final pit limits define what is economically mineable from a
given deposit.
• It identifies which blocks should be mined and which ones should
be left in the ground.
• In a effort to identify the blocks to be mined, an economic block
model is created first from the geologic grade model.
• This is done by assuming production and process costs and
commodity prices at current economic conditions (i.e. current costs
and prices).
• Then using the economic block values, each positive block is
further checked whether its value can pay for the removal of
overlying waste blocks.
• The analysis is based on the breakeven calculation that check if
undiscounted profits obtained from a given ore block can pay for the
undiscounted cost of mining the waste blocks.
• This analysis is done by using computer programs that either
utilizes the "cone mining" method or the Lerchs and Grossmann
(LG) algorithm.
Methods of Finding Ultimate pit size
• Manual Method
• Floating or moving cone method
• Lerchs and Grossmann algorithm based on
graph theory
•
• the following basic steps involved in
determining pit limits remain the same:
• 1. A slice is selected.
• 2. The contained value is compared with the
costs.
• 3. If the net value is positive, the pit can be
expanded. If negative, the pit contracts.
• 4. The final pit position is where the net value
of the slice is zero.
• ISR = BESR
• Fig. Shows an idealized cross section through an
orebody which outcrops at the surface and dips
to the left at 45 degree.
• There are distinct physical boundaries separating
the ore from the over and underlying waste.
• The orebody extends to considerable depth and
it is desired to know how large the open pit will
be.
• The slope angle is 45 degree.
• The location of the final pit wall is determined by
examining a series of slices as shown.
• In designing the ultimate pit, the engineer will assign
values to the physical and economic parameters.
• The ultimate pit limit will represent the maximum
boundary of all material meeting these criteria. The
material contained in the pit will meet two objectives.
• A block will not be mined unless it can pay all costs for
its mining, processing, and marketing and for stripping
the waste above the block.
• For conservation of resources, any block meeting the
first objective will be included in the pit.

• The result of these objectives is the design that will
maximize the total profit of the pit based on the
physical and economic parameters used.
• As these parameters change in the future, the pit
design may also change. Because the values of the
parameters are not uniquely known at the time of
design, the engineer may wish to design the pit for a
range of values to determine the most important
factors and their effect on the ultimate pit limit.
MANUAL DESIGN

• Floating or moving cone algorithm is one of
the easiest and fastest algorithms for
determining the final pit limits. In addition,
mining operational restrictions on various
slopes can be applied to this method
perfectly.
• This method, which was first described by
Carlson, Erickson, O’Brain and Pana (1966),
works on an economical block model of the
deposit.
Method Description
• For each positive (ore) block, this method involves
constructing a cone with sides oriented parallel to the
pit slope angles, and then determining the value of
the cone by summing the values of blocks enclosed
within it.
• If the value of the cone is positive, all blocks within
the cone are mined.
• This process starts from the uppermost level and
moves downward searching for positive blocks.
• The process continues until no positive cones remain
in the block model.
Mine Production Scheduling
• The open pit mine production scheduling problem
can be defined as specifying the sequence in which
blocks should be removed from the mine in order to
maximize the total discounted profit from the mine
subject to a variety of constraints. The constraints
may involve the following :
• mill throughput (mill feed and mill capacity)
• volume of material extracted per period
• blending constraints
• stockpile related constraints
• logistic constraints