1/03/2023

Introduction to Surface Mining and Planning

By
Dr. Mehmet Cigla
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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

• Scale of mining operations

Unique mine services and infrastructure requirements
• Technological advancement
• Safety
• Sustainability
Community relationships
Energy and water dependence
• Responsible mining
Mine reclamation and closure
Bingham Canyon (copper) mine Chuquicamata copper mine, The Super Pit (gold), located on
located south-west of Salt Lake situated 1,650km north of south-east edge of Kalgoorlie,
City, Utah, US, is the deepest Santiago, Chile, is the second Western Australia, is the sixth
open pit mine in the world. deepest open-pit mine in the deepest open-pit mine in the
world. world.
The Bingham Canyon pit is more
than 1.2km deep and Chuquicamata open pit, is 4.3km The gold producing open pit
approximately 4km wide. long, 3.0km wide and more than mine is 3.8km long, 1.5km wide
850m deep. and up to 600m deep.

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• Scale of mining operations

Unique mine services and infrastructure requirements
Mines often operate in remote locations, so it is necessary that the
• Technological advancement required utilities such as electric power, raw water, diesel, etc. can be
sourced either locally or remotely.
• Safety Infrastructure and services required for a mine site are very site specific.
And the inputs…
• Sustainability • Ore body geometry and geology
• Management strategy (start small and expand, blend from two pits,
Community relationships etc.)
• Material properties (dust, abrasiveness, etc.)
Energy and water dependence •
•
Mining method (surface or underground or both) and mine plans
Materials handling systems – equipment and labour
• Automation and emerging technologies
• Responsible mining • Design and cost of similar installations in other mines
Mine infrastructure and services may include…
Mine reclamation and closure
• Access roads
• Drainage and pumping facilities
• Power generation plant and distribution systems
• Main workshops
• Servicing and warehousing facilities
• Offices
• Change house and sewerage
• Mine communication

• Scale of mining operations

Unique mine services and infrastructure requirements
• Technological advancement
• Safety
• Sustainability
Community relationships
Energy and water dependence
• Responsible mining
Mine reclamation and closure

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• Scale of mining operations

Unique mine services and infrastructure requirements
• Technological advancement
• Safety
• Sustainability
Community relationships
Energy and water dependence
• Responsible mining
Mine reclamation and closure

• Scale of mining operations

Unique mine services and infrastructure requirements
• Technological advancement
• Safety
• Sustainability
Community relationships
Energy and water dependence
• Responsible mining
Mine reclamation and closure

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• Scale of mining operations

Unique mine services and infrastructure requirements
• Technological advancement
• Safety
• Sustainability
Community relationships
Energy and water dependence
• Responsible mining
Mine reclamation and closure

1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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Mining
Methods
MINE4401
MINE4503
Underground Mining 1
Surface Mining

Underground
Surface Mining
Mining
Methods
Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving

Vertical Crater Square-set Longwall

Quarrying
Retreat Mining Mining

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Mining
Methods

Underground
Surface Mining Mining
Methods Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving

Vertical Crater Square-set Longwall

Quarrying Retreat Mining Mining

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Mining
Methods

Underground
Surface Mining Mining
Methods Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving

Vertical Crater Square-set Longwall

Quarrying Retreat Mining Mining

http://i5tradings.com/coal-mining.html

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Mining
Methods

Underground
Surface Mining Mining
Methods Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving

http://www.marmidicarrara.com/cave_apuane.html

Vertical Crater Square-set Longwall

Quarrying Retreat Mining Mining

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Mining
Methods

Underground
Surface Mining Mining
Methods Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving
https://www.world-nuclear.org/information-library/nuclear-fuel-
cycle/mining-of-uranium/in-situ-leach-mining-of-uranium.aspx
Vertical Crater Square-set Longwall
Quarrying Retreat Mining Mining

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Mining
Methods

Underground
Surface Mining Mining
Methods Methods

Mechanical Aqueous Unsupported Supported Caving

Extraction Extraction Methods Methods Methods

Open Pit Solution Rom and Pillar Shrinkage Sublevel

Mining Mining Mining Stoping Caving

Open Cast Placer Sublevel Cut-and-Fill Block

Mining Mining Stoping Mining Caving

Vertical Crater Square-set Longwall

Quarrying Retreat Mining Mining

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Spatial aspects of the ore body (e.g. size, shape, attitude, and depth)

• Surface vs. Underground

• Mine size

• Mine development (access to orebody) requirements

Pre-production or advance stripping in surface operations
Additional infrastructure and capital requirements for development in underground mining

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Geological and geotechnical features

• Geological considerations such as mineralogy, petrography, structure, hydrology, distribution of ore grades, etc.

Mineral processing or metallurgical aspects, blending requirements, water bodies and pumping requirements

• Geotechnical properties: strength, deformation modulus, hardness, abrasiveness, etc.

Pit slope angles, bench height, haul road designs, etc. and support requirement for underground operations

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Economic and technical aspects

• Maximise the return on investment or maximise mineral resource recovery

• Capital requirements and operating costs

• Ore dilution

• Production rates and productivities

• Ore average/head grades and recoveries

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Safety and possibility of accidents or injuries

Environmental and social impacts – during and after mining Economics, safety, and environment address the context of
• Reclamation and restoration requirements and costs sustainable development of mining operations

• Availability of experienced work force

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Single method vs transitional

• Generally shallow deposits mined entirely by surface methods

• Deeper deposits usually mined entirely by underground methods

• Some deposits are best mined initially as open pits, with production shifting to an underground method as deeper portions of the
ore body are extracted.

• Break-even depth?

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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1. Topography

(a) USGS maps

(b) Special aerial or land survey - Establish survey control stations
Contour

2. Climatic conditions

(a) Altitude
(b) Temperatures - Extremes
Monthly averages
(c) Precipitation - Average annual precipitation
Average monthly rainfall
Average monthly snowfall
Run-off
Normal
Flood
Slides – snow and mud
(d) Wind - Maximum recorded
Prevailing direction
Hurricanes, tornados, cyclones, etc.
(e) Humidity - Effect on installations, i.e. electrical motors, etc.
(f) Dust
(g) Fog and cloud conditions

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3. Water – potable and process

(a) Sources - Streams
Lakes
Wells
(b) Availability - Ownership
Water rights
Cost
(c) Quantities - Monthly availability
Flow rates
Drought or flood conditions
Possible dam locations
(d) Quality - Present sample
Possibility of quality change in upstream source water
Effect of contamination on downstream users
(e) Sewage disposal method

4. Geologic structure
(a) Within mine area
(b) Surrounding areas
(c) Dam locations
(d) Earthquakes
(e) Effect on pit slopes - Maximum predicted slopes
(f) Estimate on foundation conditions

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5. Mine water as determined by prospect holes

(a) Depth
(b) Quantity
(c) Method of drainage

6. Surface

(a) Vegetation - Type

Method of clearing
Local costs for clearing
(b) Unusual conditions - Extra heavy timber growth
Muskeg
Lakes
Stream diversions
Gravel deposits

7. Rock type – overburden and ore

(a) Submit sample for drillability test

(b) Observe fragmentation features - Hardness
Degree of weathering
Cleavage and fracture planes
Suitability for road surface

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8. Locations for concentrator – factors to consider for optimum location

(a) Mine location - Haul uphill or downhill

(b) Site preparation - Amount of cut and/or fill
(c) Process water - Gravity flow or pumping
(d) Tailings disposal - Gravity flow or pumping
(e) Maintenance facilities - Location

9. Tailings pond area

(a) Location of pipeline length and discharge elevations

(b) Enclosing features - Natural
Dams or dikes
Lakes
(c) Pond overflow - Effect of water pollution on downstream users
Possibility for reclaiming water
(d) Tailings dust - Its effect on the area

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10. Roads

(a) Obtain area road maps

(b) Additional road information - Widths
Surfacing
Maximum load limits
Seasonal load limits
Seasonal access
Other limits or restrictions
Maintained by county, state, etc.
(c) Access roads to be constructed by company (factors considered) - Distance
Profile
Cut and fill
Bridges, culverts
Terrain and soil conditions
11. Power

(a) Availability - Kilovolts

Distance
Rates and length of contract
(b) Power lines to site - Who builds
Who maintains
Right-of-way requirements
(c) Substation location
(d) Possibility of power generation at or near site

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12. Smelting

(a) Availability
(b) Method of shipping concentrate
(c) Rates
(d) If company on site smelting – effect of smelter gases
(e) Concentrate freight rates
(f) Railroads and dock facility

13. Land ownership

(a) Present owners

(b) Present usage
(c) Price of land
(d) Types of options, leases and royalties expected

14. Government

(a) Political climate - Favourable or unfavourable to mining

Past reactions in the area to mining
(b) Special mining laws
(c) Local mining restrictions

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15. Economic climate

(a) Principal industries

(b) Availability of labour and normal work schedules
(c) Wage scales
(d) Tax structure
(e) Availability of goods and services - Housing
Stores
Recreation
Medical facilities and unusual local disease
Hospital
Schools
(f) Material costs and/or availability - Fuel oil
Concrete
Gravel
Borrow material for dams
(g) Purchasing – Duties

16. Waste dump location

(a) Haul distance

(b) Haul profile
(c) Amenable to future leaching operation

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17. Accessibility of principal town to outside

(a) Methods of transportation available

(b) Reliability of transportation available
(c) Communications

18. Methods of obtaining information

(a) Past records (i.e. government sources)

(b) Maintain measuring and recording devices
(c) Collect samples
(d) Field observations and measurements
(e) Field surveys
(f) Make preliminary plant layouts
(g) Check courthouse records for land information
(h) Check local laws and ordinances for applicable legislation
(i) Personal inquiries and observation on economic and political climates
(j) Maps World Wide Web
(k) Make cost inquiries
(l) Make material availability inquiries
(m) Make utility availability inquiries

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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Prospecting – discovery of a mineral deposit

Exploration – ore body definition – size, shape, geometry,

ore, waste, etc.

Development – mineral rights acquisition, mining method

selection, environmental impact statement, construction
of access roads, surface facilities, access to ore body

Exploitation – excavate ore body

Reclamation and closure – site restoration

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Prospecting – discovery of a mineral deposit

Exploration – ore body definition – size, shape, geometry,

ore, waste, etc.

Development – mineral rights acquisition, mining method

selection, environmental impact statement, construction
of access roads, surface facilities, access to ore body

Exploitation – excavate ore body Core logging should include the following:

Reclamation and closure – site restoration •Structural features

Fracture spacing and orientation

RQD

•Lithological description

Rock type
Color
Texture
Mineralogy
Alterations

•Core Loss

•Assays

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Prospecting – discovery of a mineral deposit

Exploration – ore body definition – size, shape, geometry,

ore, waste, etc.

Development – mineral rights acquisition, mining method

selection, environmental impact statement, construction
of access roads, surface facilities, access to ore body

Exploitation – excavate ore body

Reclamation and closure – site restoration

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Prospecting – discovery of a mineral deposit

Exploration – ore body definition – size, shape, geometry,

ore, waste, etc.

Development – mineral rights acquisition, mining method

selection, environmental impact statement, construction
of access roads, surface facilities, access to ore body

Exploitation – excavate ore body

Reclamation and closure – site restoration

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Prospecting – discovery of a mineral deposit

Exploration – ore body definition – size, shape, geometry,

ore, waste, etc.

Development – mineral rights acquisition, mining method

selection, environmental impact statement, construction
of access roads, surface facilities, access to ore body

Exploitation – excavate ore body

Reclamation and closure – site restoration

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
Less constrained More constrained

Order of Feasibility
Pre-Feasibility
Magnitude Study
Study
Scoping Absolute studies;
Comparative and/or
Conceptual or reserve based
re-engineering studies
desktop study (bankable)

3-Month Plan
Strategic Budget/ 1-Month Plan
Life-of-Mine Plan
Review Re-Forecast 1-Week Plan
1-Day Plan

Multiple Base & Plus

options/scenarios Cases

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Financial Optimisation Using Circular Analysis

Financial Optimisation
Capital and operating summation
Revenue
Cash flow statement
Marginal ore utilisation
Rate of return

Ore Reserve Analysis

Refined ore Reserves
Break-even analysis
Cut-off grade
Drill-hole evaluation
Marginal analysis
Pit design
Design alternatives
Marginal analysis

Production Scheduling
Pre-production costs
Equipment and Facilities
Working room
Capital intensive
Stripping ratios
Equipment selection
Sequencing
Operation costs
Reclamation
Capital depreciation
Operating schedules
Selective mining
Financial
Constraints

Dohm, G.C., Jr. 1979. Circular analysis–Open pit optimization. Chapter 21 in Open Pit Mine Planning and Design (J.T. Crawford, III and William A. Hustrulid, editors). AIME. Pp 281-310. 38

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Ore is a natural aggregation of one or more solid minerals that can be mined, processed and sold at a profit.

For mining engineers, profits can be expressed in simple equation form as

Gold

Profits = Revenues − Costs $/g or $/t.oz

Revenues = Material sold (units) × Price/unit

Costs = Material sold (units) × Cost/unit Copper

$/lb or $/t
Profits = Material sold (units) × (Price/unit − Cost/unit)

A failure to keep up is reflected quite simply by the profit equation as

Iron
Profits < 0
$/t
For mining engineers (including students and practicing), the meaning of ore is:

Ore ≡ Profits ≡ Jobs

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
Less constrained • Order More constrained
of Magnitude

– can the orebody be mined profitably..?

Order of • Feasibility
Pre-Feasibility Study
Pre-Feasibility
Magnitude Study
Study
Scoping Absolute studies;
Comparative and/or
Conceptual or
re-engineering studies based
–reserve basedon
current knowledge, what’s the most profitable
desktop study (bankable)
means of mining (within acceptable risk)
– includes mine extensions 3-Month Plan
Strategic Life-of-Mine Budget/ 1-Month Plan
Review Plan Re-Forecast 1-Week Plan
• Strategic Reviews 1-Day Plan

– as per Pre-Feasibility Study (but updated, following mining)

– precursor to annual Life-of-Mine and Budget process
Multiple follows
–Base & Plus significant change to any main input parameter
options/scenarios – Cases
includes mine capacity expansions/contractions

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Strategic Mine Planning Tactical Mine Planning

➢ Best opportunity to increase value Operational Mine Planning
Less constrained ▪
More constrained
consider all potentially feasible options

➢ Best opportunity to destroy value

▪ adequate comparative accuracy required

Order of ➢ LessFeasibility
detailed than tactical or operational plans
Pre-Feasibility Long-time frames being considered
Magnitude ▪ Study
Study indicative,
Scoping Absolute
▪ studies; not definitive
Comparative and/or
Conceptual or reserve based
re-engineering studies
desktop study ➢ (bankable)
Plans evaluated by economic measures
▪ NPV and Return on investment considered key measures
3-Month Plan
Strategic Life-of-Mine
➢ Include Budget/
inferred resources and closure costs 1-Month Plan
Review Plan Re-Forecast 1-Week Plan
➢ Sanity checks throughout 1-Day Plan

➢ Strategic decision -> Tactical and Operational constraints

➢ Non-biased, practical assumptions

Multiple Base & Plus
options/scenarios ➢ Assumed
Casesthat all plans adhere to acceptable practice in terms of safety,
health & sustainability

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
➢ Less constrained
Feasibility Study More constrained

▪ maximise value based on Pre-Feasibility

Study output

Order ofPlan Feasibility

➢ Life-of-Mine Pre-Feasibility
Magnitude Study
Study
▪ maximise
Scoping value based on Strategic
Comparative Review
and/or
Absolute studies;
Conceptual
output or reserve based
re-engineering studies
desktop study (bankable)

3-Month Plan
➢ Budget
Strategic Budget/ 1-Month Plan
Life-of-Mine Plan
▪ Review
Life-of-Mine Year 1, detailed revenue- Re-Forecast 1-Week Plan
expenditure 1-Day Plan

➢ Budget Re-Forecast
▪ Multiple
early warning of potential variance,
Base & Plus
corrective actions options/scenar
ios Cases
▪ manage stakeholder expectations,
including investors

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➢ More detailed than strategic plans Tactical Mine Planning

Strategic Mine Planning Operational Mine Planning
▪ implementation plan for Strategic Mine More constrained
Less constrained
Plan outputs
▪ focus on risk & cost reduction

➢ Key inputs are Strategic Mine Plan outputs

▪ mining methods, production rate, cut-off
grades
Order of Feasibility
Pre-Feasibility
verify comparative assessment during
▪ Magnitude Study
Study
Strategic Mine Plan Comparative and/or
Scoping Absolute studies;
Conceptual
➢ Basis for marketor assessment of organisation reserve based
re-engineering studies
desktop study absolute accuracy compared to (bankable)
▪ improved
Strategic Mine Plan
3-Month Plan
Strategic Budget/ 1-Month Plan
➢ Reduced flexibility & scope for change Life-of-Mine Plan
Review Re-Forecast 1-Week Plan
1-Day Plan
➢ Implementation is ultimate measure of success
▪ collaborate with operations personnel
▪ measure progress using suitable KPIs
▪ reconcile actual to plan
Multiple
➢ Plans evaluated by economic & physical metrics
options/scenar Base & Plus
ios Cases
➢ Assumed that all plans adhere to acceptable
practice in terms of safety, health & sustainability

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
➢ Monthly Plan
Less constrained More constrained
▪ focus on Budget implementation
▪ update monthly, 3-month horizon
KPI reporting
▪ Order of against Budget & actuals
Pre-Feasibility
Feasibility
Magnitude Study
Study
Scoping Absolute studies;
Comparative and/or
Conceptual or reserve based
re-engineering studies
➢ Weekly Plan
desktop study (bankable)

▪ focus on managing monthly plan variance 3-Month Plan

Strategic Budget/ 1-Month Plan
Life-of-Mine Plan
▪ update weekly, Review
end-of-month horizon Re-Forecast 1-Week Plan
1-Day Plan

➢ Daily Plan
Multiple
▪ focus on resource assignments to achieve
options/scenar
weekly
Base & Plus plan
Cases
▪ update start-of-shift, ios
24-hour horizon

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
Less constrained More constrained
➢ Most detailed types of plan
▪ implementation plans for Budget outputs
absolute
▪ Order of accuracy is paramount
Pre-Feasibility
Feasibility
Magnitude Study
Study
Scoping Absolute studies;
Comparative and/or
Conceptual or reserve based
re-engineering studies
➢ Focus on:
desktop study (bankable)

▪ managing routine activities 3-Month Plan

Strategic Budget/ 1-Month Plan
Life-of-Mine Plan
▪ Review
deviations/fluctuations from Budget Re-Forecast 1-Week Plan
1-Day Plan
▪ data gathering & getting consensus

Multiple
➢ Plans evaluated by physicals
options/scenar
& resourcing
Base & Plus
ios Cases

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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Strategic Mine Planning Tactical Mine Planning

Operational Mine Planning
Less constrained More constrained

Order of Feasibility
Pre-Feasibility
Magnitude Study
Study
Scoping Absolute studies;
Comparative and/or
Conceptual or reserve based
re-engineering studies
desktop study (bankable)

3-Month Plan
Strategic Budget/ 1-Month Plan
Life-of-Mine Plan
Review Re-Forecast 1-Week Plan
1-Day Plan

Multiple Base & Plus

options/scenarios Cases

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The Oxford English Dictionary defines feasible as ‘practical and possible’

We, mining engineers, define feasible as ‘The practicable and possible relate to not only the
physical aspects of resource exploitation (technical) but also to the economics of the project
(financial)’

Chapter 3 ➔ Page 21-40 Chapter 4.2 ➔ Page 396-423 Chapter 1 ➔ Page 4-19
Chapter 2 ➔ Page 24-27

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Plan Type Suggested accuracy

OoM 35-50%; 50-70% probability of positive NPV
PFS ±25%; 85% probability of positive NPV
FS, SR ±15%
LoM ±10%
Budget ±5%

Are accuracy measures meaningful..?

Is content & approach more meaningful..?

If we find the project “not feasible” it does not

mean the study budget was wasted.

It is better to learn from a study than from an

experience

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Area of Problems Frequency

Geology, resource and reserve estimation 17% MINE2001, MINE4405
Geotechnical Analysis 9% MINE2001, MINE4404, MINE5502
Mine Design and Scheduling 32%
Mine equipment selection 4%
Metallurgical test work, sampling and scale-up 15%
Process plant equipment design and selection 12%
➢ The capital cost is higher than expected
Cost estimation 7%
➢ The operating cost is higher than expected
Hydrology 4%

➢ The recovered grade is lower than expected

➢ Sales revenue is lower than expected

➢ It takes longer to build and ramp up than expected

➢ Initial performance cannot be sustained, though It

may take several years for the failure to become
evident.

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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Process Product
Mine
Ore Sag Mill
Ball mill
Concentrate
Refinery Metal Economy
Flotation

Waste Waste

Waste Dump Tailings

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Stockpile

Reclaim

Process Product
Mine
Ore Sag Mill
Ball mill
Concentrate
Refinery Metal Economy
Flotation

Waste Waste

Waste Dump Tailings

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Reclaim Product
Stockpile Heap Leach Metal

Reclaim

Process Product
Mine
Ore Sag Mill
Ball mill
Concentrate
Refinery Metal Economy
Flotation

Waste Waste

Waste Dump Tailings

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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Financial Optimisation Using Circular Analysis

Financial Optimisation
Capital and operating summation
Revenue
Cash flow statement
Marginal ore utilisation
Rate of return

Ore Reserve Analysis

Refined ore Reserves
Break-even analysis
Cut-off grade
Drill-hole evaluation
Marginal analysis
Pit design
Design alternatives
Marginal analysis

Production Scheduling
Pre-production costs
Equipment and Facilities
Working room
Capital intensive
Stripping ratios
Equipment selection
Sequencing
Operation costs
Reclamation
Capital depreciation
Operating schedules
Selective mining
Financial
Constraints

Dohm, G.C., Jr. 1979. Circular analysis–Open pit optimization. Chapter 21 in Open Pit Mine Planning and Design (J.T. Crawford, III and William A. Hustrulid, editors). AIME. Pp 281-310. 62

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Mine
Design

Mine STRATEGIC
Scheduling
Iterating
for Value
Maximisation
Mining Cost
Estimation
TACTICAL

Plan Type Suggested accuracy

OoM 35-50%;
50-70% probability of positive NPV Economic
PFS ±25%;
Evaluation
85% probability of positive NPV
FS, SR ±15% OPERATIONAL
Planning process
should be flexible
LoM ±10%
to change &
sensitivities Reporting
Budget ±5%

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1. Challenges in Modern Mining Operations

2. Classification of Surface Methods
3. Precursor to Mine Planning
4. Scope of Mine Plans
5. Accuracy of Mine Plans
6. What is a Mining Operation
7. Mine Planning Process
8. Engineering Report Content

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The essential functions of the feasibility report

1. To provide a comprehensive framework of established and detailed facts concerning the mineral project.

2. To present an appropriate scheme of exploitation with designs and equipment lists taken to a degree of detail
sufficient for accurate prediction of costs and results.

3. To indicate to the project’s owners and other interested parties the likely profitability of investment in the project if
equipped and operated as the report specifies.

4. To provide this information in a form intelligible to the owner and suitable for presentation to prospective partners
or to sources of finance.

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