Strategy Optimisation Systems Pty Ltd

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Strategic Mine Planning with COMET Software

Introduction
COMET is an advanced multi-policy schedule optimisation tool developed by Strategy Optimisation Systems Pty Ltd over the last 10 years. The COMET algorithm maximises project Net Present Value (NPV) by simultaneously optimising multiple policies such as pushback/strip sequencing, fixed/variable cut-off grades, multiple ore and waste destinations, stockpile creation and depletion, mining recovery (ore dilution/loss), processing recovery (mill/recovery/throughput) and many others. COMET has been used for optimising both single mine and complex combinations of surface and underground mines. It is designed to allow the modelling of multiple ore type processing and interactions of the processing facilities. The objective of each optimisation is the maximization of the NPV, taking into account productivity, constraints and economic conditions that change throughout the project life.

COMET automatically generates an integrated production schedule by simultaneously optimising multiple policies for single and multi mine projects under a range of mining, processing and marketing constraints.

Design
COMETs design has always been guided by the needs of operational mine-planners who regularly utilise Microsoft Excel. Accordingly, COMET has been developed using a Microsoft Excel Graphical User Interface (GUI) that organizes the input data and output reports from Excel. Comet accesses a C++ based efficient dynamic programming optimisation algorithm. This clean architecture delivers flexibility and control to the user as well as the ability to utilise familiar formulae, text formatting, comments and links to other spreadsheets. Running COMET can be set up using a Wizard, which, through a series of guided input screens and questions, can assist the user in the building of a model. Complex processes can then be gradually added using the standard interface. Additionally, the GUI supports an integrated help feature as well as custom toolbar/ribbon for frequently used processes. The optimisation process is automated to minimise time and bias from the manual design of different scenarios. COMET provides a series of reports to view the optimisation results in the Excel environment. These features allow the software to be used with other mine planning software packages.

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Strategy Optimisation Systems Pty Ltd

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Installation
COMET software has been designed to run on IBM compatible personal computers using Windows 2000, XP or Vista. Ideally these machines will have a fast processor, 2GB of RAM and at least 1Gb of free disk space. Standard upgrades to the software (included in the maintenance fee) are available online through the dedicated support site. COMET can be installed on a single machine or a network of machines. The distributed-processing implementation of COMET allows users to set up networks of computers with multiple processors and run cases simultaneously and systematically. Very large numbers of cases can be run simultaneously from a central controller, dispatching new jobs as each case is completed.

Custom Functions
Recognising the need for site specific customisation and adaptation, COMET has an innovative set of custom functions which are very effective in modelling complex processes where unique relationships can be modelled. There are more than 40 custom functions which extend the capabilities of COMET and provide greater user control over the modelling process. Custom Functions are used in modelling the Cash Flow to apply complex constraints as well as cost and revenue relationships which have the potential to significantly influence the mining schedule and project value. They are written in the C++ programming language and are fully integrated with the COMET software.

Wizard
The COMET wizard is designed for users who want to rapidly model a project. The wizard leads you through the set-up process with a series of simple screens designed to collect input data on the project, block model, cut-off grades, sinking-rates, under cutting and mining constraints, stockpiles, revenue and processing.

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Applications
Comet is used on major surface and underground resource projects around the world. These projects include base metal projects (such as Escondida in Chile and Bingham Canyon in the USA), bulk mining projects (such as Hammersley Iron in Western Australia, Comalco Bauxite in Weipa and Hunter Valley coal projects) and precious stone mining (such as Ekati in Canada).

Ekati

Iron Ore Canada Oyu Tolgoi

Bingham Canyon

Lihir Antamina Tintaya Collahuasi Escondida Andacollo Ranger Rssing Hammersley Hunter Valley Olympic Dam Weipa

Inputs
The inputs for COMET are user definable and include the following key elements: Resource phases/sequences/pushbacks, which typically include a range of rock specific parameters (including metal grades), mining information (e.g. blasting requirements, water, haulage times for different destinations, shovel productivity rates) and rock specific processing information (e.g. hardness, SAG rate, recovery) Economic parameters (e.g. prices, costs, investments, taxes, discount rate/s), each can be adjusted over time and varied according to the material source Production constraints including a combination of sinking rate, undercutting, access and development constraints. The sinking rate constraint can vary according to the geometry of the benches and production equipment used Key mining constraints, which can include mining, stockpile, processing plant and market capacity constraints

Outputs
The outputs for COMET include the following key elements:

User customisable period reports that allow any period property to be reported. The reported information would typically include quantities and qualities of material (mined, stockpiled and processed), operating policies (such as cut-off grade/s) and all cash flow components Detailed material mined report from each source is also customisable with the same comprehensive information as in the period reports (e.g. how much material was processed from each source and the grades of this material) Pivot tables displaying mining information in each pushback in every period mined Normal Excel features can also be used in the input fields including using macros, formulas and linking to other spreadsheets for information. All results are automatically imported into Excel to allow any number of reports and graphs to be displayed and customised Sensitivity studies can also be simply automated using COMET's macro facility or using Excel's Visual Basic.

User definable inputs and customisable outputs ensure flexibility and adaptability.

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Integrated Help
COMET users can access a dedicated support website to get the latest information or log an enhancement request or request for information. An integrated Microsoft compiled help file also provides users with system and operational help required to effectively use COMET. Constantly updated, the online support includes a selection of key papers related to the optimisation theory behind COMET.

Toolbar
The COMET toolbar provides users with quick access to a set of frequently used functions at the click of a mouse. In addition to controlling the optimise function and facilitating easy navigation throughout the GUI, it also integrates a number of useful utilities. For example, users can change languages, upgrade software, export results and review output files, all at the click of a button.

The Company
Strategy Optimisation Systems Pty Ltd is a specialised mining consultancy which focuses on the provision of the tools and knowledge that are essential to maximise the value of resources through optimum operating policies. Founded in 2000 by Dr Brett King, SOS now has a support network in Brisbane, Melbourne, London and Santiago. SOS clients include BHP Billiton, Rio Tinto, Newcrest, Xstrata, and Teck Cominco. As an acknowledged leader in the optimisation community, SOS consultants currently work on a range of energy, metallic and non-metallic resource projects in Australia, Canada, Chile, Peru, USA and Africa.

Strategy Optimisation Systems Pty Ltd | ABN 33 091 668 003 24 Harris Street Wellington Point Queensland 4160 Australia Office: +61 7 3333 1677 | Email: support@stops.com.au Strategy Optimisation Systems Pty Ltd 2009 P a g e |4