"Fundamentals of Mine

Planning"
JEF MICHAEL L. DAHUYLA – BSEM 4
ORE
 Ore is a natural aggregate of one or more solid minerals that can be mined, processed and
sold and profit.
 Extraction leading to a profit

Profit = Revenue = Cost

Revenues = Materials sold (units) x Price/Unit
Cost = Material sold (units) x Cost/unit
Profits = Material sold (units) x (Price/unit – Cost Unit
 Price of material is mostly determined by supply and demand
 Role of mining engineers: Minimizing the unit cost
 A thorough understanding of the deposit itself and the tools/techniques used in the
extraction process

 Cost> price  profit < 0  natural aggregate ≠ ore  no job

MINE DEVELOPMENT PHASE
 Planning Phase: Thorough evaluation of the mineral deposit to determine its economic
attractiveness.
 Implementation Phase: Development of the mine and processing facilities.
 Production Phase: Mineral is mined and processed.

Initial Data Collection Checklist

 Topography
 Land Ownership
 Climatic Conditions
 Power
 Water
 Smelting
 Geologic structures
 Roads
 Mine Water
 Government
 Surface
 Rock Type  Economic Climate

 Location for concentrator  Waste Dump Location

 Tailings Pond Area  Accessibility
 Methods of Obtaining Information
MINE PLANNING PHASE
 Stages of Planning Phase
1. Conceptual study
2. Preliminary/Pre-feasibility study
3. Feasibility study

 Offers the greatest opportunity

 Minimize the capital and operating costs of the mining project
 Maximize the operability and profitability of the project

 At the start of the conceptual study, there is a relatively much higher opportunity to
influence the cost of the emerging project.
CONCEPTUAL STUDY
 Preliminary valuation
 Transformation of a project idea into a broad
investment proposal.
 Objective: To identify a potential investment
opportunity by
 comparing different methods of define
the scope of the project
 comparing different cost estimating
techniques

 Capital and operating costs are usually

approximate ratio estimate using the
historical data.
PRE – FEASIBILITY STUDY
 Normally not suitable to make an investment decision.
 Objective: To determine whether the project proposal
justifies a detailed analysis by a feasibility study and whether
any aspects of the project are critical and need in depth
investigation

 Important sections of a pre-feasibility report:

 Aim
 Technical Concept
 Findings
 Ore tonnage and grade
 Mining and production schedule
 Capital cost estimate
 Revenue estimate
 Taxes and financing
 Cash flow tables
FEASIBILITY STUDY
 Provides a conclusive technical, environment and economic
base to make an investment decision.
 Optimization of all critical elements of the project by changing
them again and again.

 It identifies the
 production capacity,
 technology,
 investment and production cost
 Sales revenues
 Return on investment
FEASIBILITY STUDY
 Contains all the information that
 supports a general understanding and evaluation of
the project
 reasons for the selecting particular processes,
equipment or courses of action
 Key requirement for reports:

 The reports must be easy to read, and their

information must be easily accessible.
 The parts of the reports need to be read and
understood by non-technical people.
FEASIBILITY REPORT
 Feasibility report volumes

 Geology, ore reserve and mining

 Metallurgy
 Capital and operating cost estimates
 Legal, finance and marketing
 Summary and economic analysis

Drill Hole Mining Composite Mining Equipment

Mining Report
Data Reserves assay data schedule selection

Simplified flowsheet showing the mining activities

MINE RECLAMATION
 Today, the regulations in most of the countries require a
thorough and satisfactory plan addressing the environmental
aspects of the proposal project.

 Purpose of reclamation plan:

 Details guidelines for the reclamation process and
fulfill federal, state, country and other local agencies
requirements.

 Contents of reclamation plan:

 Logical sequence of steps for completing the
reclamation process
 The specifics of how the reclamation standards will be
achieved
 An estimate of specific costs of reclamation.
 Sufficient information for the development of a basis
of inspection and enforcement of reclamation.
 Thanks!
Does anyone have any questions?
jeffmichaeldahuyla@gmail.com
+63 95 1683 23 60

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