Strategic Mine Planning Integrating Computer

Software, Simulation, and Social Responsibility

Sukumar Bandopadhyay, PhD, PE.
Professor of Mining Engineering, University of Alaska
Fairbanks, AK, USA
Raja V. Ramani, Ph.D., P.E.
Professor of Mining Engineering Emeritus, Pennsylvania State University,
USA

Outline of Presentation

Mine Planning Attributes, Complexity & Planning Horizons

Unique Ore body Challenges or Opportunities ?
Mine Planning Process, what is needed, and how do we get there?
Mine Planning Software and Scheduling Tools
Examples of Mine Planning and Design in Vulcan
Examples of Mine Scheduling in Igantt
Integration of Simulation in Mine Planning: Example of Mine Ventilation
Design
Integration of Social Dimensions and Corporate Responsibility in Mine
Planning
Conclusions

Strategic Mine Planning

Mine Planning involves choosing the optimum
layout and making long-term strategic plans to
exploit the maximum amount of ore at the
lowest cost with greatest safety and in an
environmentally responsible way

Mine Planning Attributes

Multi-faceted activity
Remains as one of the challenging tasks
A pre-requisite for optimum extraction of an ore body
It is not, however, an automated process since each ore
body is unique
As a result, planning, development, extraction, and
scheduling of production of an underground or open pit
mine is not a relatively easy and simple process.
Modeling complex stratigraphic deposits is one of the
greatest challenges for mine planners.

Decision Complexity
Decision to develop an ore body by underground or open
pit method is an important and critical process
It defines not only the overall quantity of ore, but also the
overall rate of return.
Mine planning moves into a dynamic stage once the
mining is started
Heterogeneous ore body, ore grade is seldom uniform
Add to this, the uncertainty about metal price

Mine Planning challenges or Opportunities ?

One of the challenges in mine production
managements is the heterogeneity of ore
deposit.
Not rare for ore deposits to contain
different mining zones of variable grade,
tonnage, and operational characteristics.

Mine Planning Challenges or Opportunities ?

Higher metal price could trigger expansion of mine
capacity by mining out lower grade ore zones
Lower metal price could make it more economical to
downsize mine capacity from lower grade zones to avoid
major negative cash flow.
Production planning of both the low grade ore zone and
the relatively high grade ore zone is influenced by the
time of the decision is made, the metal price and its
volatility.

Challenges or Opportunities ?
Cut-off grade is often used on underground metal mines to
determine economic limits and is based on mine-wide
average parameters
General cut-off grade is not valid as many parameters vary by
location does not show which areas deliver the greatest value
or which areas are not economical
Approach should be to split the deposit in blocks and calculate
economics for each block

Unique ore body

A single ore body can be accessed and developed in many
different ways, the different capital investment strategies
used will have various implications on the rate of return on
the capital.
The main challenge of any underground mining operation is,
perhaps, integrating multiple sources of production
information within a cost effective and flexible mining
infrastructure.

Several Planning Horizons

A well designed mine plan demands of technical and business
streams operating across a range of time frames or planning
horizons.
These discrete planning horizons commence with the strategic
view and cycle through the planning phases.
The decision as to how and when to act include extraction
and routing of blocks of ore, timing of decision and the
placement of shafts and ramps, etc. The later can be more
crucial because it determines how much development work is
required, and consequently how much capital is needed to
develop the ore body
Presents a base on which the development of mining
scheduling and sequencing can be conducted.

Social License to Operate

The concept is extra-legal, and abstract
The recognition and acceptance of a companys
contribution to the community in which it operates,
while moving beyond meeting basic legal requirements.
Overall, it comes from striving for relationships based on
honesty and mutual respect.
So far, largely outside the core business of mining, but
fundamentally changes the manner in which mining
companies do business
It implies that society can monitor & measure a project,
and company performance throughout lifecycle of a
project.

Mine Planning Process

(Adapted from Jourgen Fuykschot, 2009)

What is Needed ?

Optimize the quantity and quality of the mined product

Utilize all available resources as efficiently as possible
Show the big picture and detail where required
Implement business strategy
Accommodate change in input parameters at any time
Allow effective feedback to workforce and management
Allow Sensitivity analysis
Chosen on basis of the technical level of available
personnel

What is needed ?
A mine plan that accommodates changes:
Resources
Commodity price
Costs
Cash flow
Project detail level

A mine plan that would allow changes:

the level of resource utilization
Production volume and grade
Timing of production infrastructure development

How do we get there ?

Computerized three dimensional geological models,
and Sophisticated 3-D mine planning software
by combing practical mine experience with
mathematical model and computer programming , it
is now possible to use computer simulation to
investigate complex models to optimize the
exploitation of an ore body.
Computerized mine planning and production
scheduling systems allow alternative strategic
reviews, including risk evaluation.

Mine Planning Software

(Adapted from Jourgen Fuykschot, 2009)

16

Integrated mine planning softwares

Many of the softwares provides:
The complete functionality to develop 3dimensional blocks, stratigraphy and surface
contours, sections, etc., almost seamless transfer
of information from exploration to the final mine
closure.
With extensive underground layout and design
tools, drift and stope design can be easily
accomplished while maintaining the desired
functionality.

Drillhole Database Design File & Drill holes: Vulcan

Drillhole Plot (Vulcan)

Creating Vertical Sections

Orebody Visualization from User

Interpretation of Drillholes

Ore body Visualization (Vulcan)

Block Modeling (Vulcan)

Block Model

Block Model with Surface

Topography

Fault Zone

Underground Mine Design

Stope Design(Vulcan)

Blast Design

Planning Functionality
Long term planning function allows creation and evaluation of unique
ore body configurations, and ever changing mine plans throughout the
life of the mine, equipment requirements, and the profitability of the
project.
Short term planning functions such as reserve calculations, blast
design, etc, integrated with optimization and production scheduling
are available on demand.
The production function facilitates daily production attributes such as
day-to-grade control, blast design, in-mine production management ,
tying back into the geological model, planning and design.

Scheduling Technologies
MineMAX Planner: Pit Optimization
MineMAX Scheduler: Strategic Schedule
Optimization with Blending, Stockpiling and
Complex Mineral Process Modelling
MineMAX iGantt: Activity-based Gantt
Chart 3D Production Scheduling

Production Scheduling

To maximize resource utilization through

intelligent allocation of rates to activities.
To decrease the time taken to produce
detailed production schedules.

Interactive Gantt Chart

Resource, location or process-based view of
activities.
Easily change the start time, rate, and
resource allocation of activities within the
Gantt chart.
Visually set precedences between activities
related to mining logic.

3-D Visual Scheduling

Simple point and click scheduling using
Strings for development centrelines
Triangulated solids for stopes

Click on a 3D object to
sequence the activity on a resource
Set a precedence with another activity

String files associated with development and triangulation

files associated with stope shapes
Vulcan
Datamine
Surpac

iGantt Generates Precedences from Geometry

Equipment Scheduling
Schedule equipment considering:
Different mining rates for varying ground
conditions
Scheduled equipment maintenance
Operator availability.

Over-allocated Jumbo

Start Auto Scheduling Algorithm

After Auto Scheduling

Sub-Activities Created for Changing Rates

Scheduler: Strategic Schedule Optimization

Optimize NPV
Satisfy Blending
Requirements
Model Series and Parallel
Material Flow
Alternative Process Routes
Alternative Products with
own prices
Address Intermediate
Stockpiling
Consider Multiple Pits /
Mines

iGantt View

Integration of Simulation in mine Plan

Policies, control criteria, procedures and
methods can be analyzed when a valid model
is set up
Symbiotic objectives - reflect the way
future mining operations must work, always
looking for optimal production results.

Integration of Simulations in Mine Planning

Underground copper + zinc mine
Sulphur + Oxides in stockworks
Expected production: 3,000 tpd
Metallurgy for copper: flotation
(sulphur) and leaching (oxide)
(zinc will be considered a byproduct
for this exercise)

Expected run-of-mine grade:

11+/- 2% (sulphur)
6+/- 1.5% (oxide)

Stopes:
- sulphur A (grade: 20 +/- 4%)
B (6 +/- 2.7%)
- oxides C (grade 8+/- 2.1%)
D (5+/-3%)

Mine Layout
Stope C

Stope D
Stope B
Stope A

Concentrator Plant

Oxide Zone

Leaching Pad

Sulphur Zone
Passenger
loading level
(shift change)
SULPHUR
BIN

OXIDE
BIN

Mine Layout
Stope C

STK-S

Stope D 2 +/-.6 min.

Stope B

STK-O

3 +/-1 min.
Stope A

Concentrator Plant
4 +/-1.5 min.

2 min.
7 +/-4 min.

5 +/-3 min.

Oxide Zone

Leaching Pad

Sulphur Zone
Passenger
loading level
(shift change)
QBIN-S

SULPHUR
BIN

QBIN-O

OXIDE
BIN
15 +/5 min.

WHAT TO CONTROL?
Run-of-Mine Grade for Sulphur & Oxides
Number of Trucks and Scoops
Negotiating Time between ore and personnel transport
Average R-O-M production
Availability of Ore Bins
Availability of Stockpiles
Availability of Locomotive number of mine cars
Consider changes in current infrastructure, i.e. number of cars, equipment units,
skips and bin capacities for a production increase from 3,000 to 5,000 tpd

STOPES A-B (Sulphide) AND C-D (Oxide)

RESULTS - Tonnage and Grade

Tonnage Output of Cu during a 30-day simulation
Oxides

1200
1000
800

29

27

25

23

21

19

17

15

13

11

600
400
200
0
1

Tons

Suplhides

Days

Variation of Cu grade during a 30-day simulation

Sulphides

Oxides

4
2

Days

29

27

25

23

21

19

17

15

13

11

0
1

Mine ventilation designs

Ventilation for different Stages of Mine Life:

Exploration, Development, PrePre-production, upper level ventilation, lower
level ventilation, future growth;

Ventilation System Selection:

Exhausting vs. Forcing, Shaft vs. Ramping

Scheduling and sequencing of vent infrastructures:

Ahead of vs. parallel with production;
Long vent raise vs. short vent raises in series;

Surface Mining:
Ramp, vent raises and escapeways to the active pit;

10/12/2011

Computer Simulation and ventilating design optimization.

.
Mine Ventilation Design Options and Economic Analysis
(Adapted from Hongliang Wang 2011)
Q1: What is the best way to design the mine?
There might be 16 different scenarios:
Cut-off grade (Oz/ton): 0.15, 0.18, 0.20, 0.22;
Stope width (ft): 15, 20, 25, 30.

North
Lantern 3 Pit: 2010~2011
Q2: How
Lanternmany reserves we can generate?
Pit Model total resource:
2010MY
800,000 ounces; average grade @ 0.25;

Decline

Q3: What are the options for ventilation?

How much air we need, what is the best way
to establish the vent system so we can start production in Q4?

Stope Design and Optimization

(Adapted from Honglian Wang, 2011)

Mine Ventilation Design Option 1: Deep Vent Raise

(Adapted from Hongliang Wang, 2011)

1600 ft; 14~16ft

400 KCFM, 3000 FPM
Estimated cost: $3~5M
@ $950 gold price, 10% discount rate
NPV with 0.2 cutoff designs: -$6.5M

Mining from Bottom Up

Mine Ventilation Design Option 2: Dual Decline

(Adapted from Wang, 2011)

Dual Decline:
~10,000 ft, 16X16, $11M,
@ $950 gold price, 10% discount rate
NPV with 0.2 cutoff designs:

$45K

Mining from Multiple Levels

Mine Ventilation Design Option 3: Vent Decline + Short

Vent Raises (Adapted from Wang
Wang 2011)

Vent Decline: 1400 ft, $1.5M

Main Fan
Vent Raises:
12~14ft;~$500,00
@ $950 gold price, 10% discount rate
NPV with 0.2 cutoff designs: $3.1M

Mining from Multiple Levels

Exhausting or Forcing?
If the deposit
grows significantly

Main Fan

Integration of Social Dimensions and Corporate

Responsibility in mine Planning
While technology will definitely take the mining industry to
the next level the biggest challenge seems to be not with the
technology , but with the social aspect of mining, within the
context of corporate responsibility.
The management of social issues poses a considerable
challenge for mining companies in underdeveloped countries.

Integration of Social Responsibilities in Mine Planning

Identifying and addressing these issues early on in the mine
planning phase and managing then actively throughout the
life of a project can increase the likelihood the success of a
project.
It is a new and emerging concept for all mine planning
endeavors worldwide.
Mine planning approaches must display foresight and vision
of a changing world, through leadership and dialog.
Mining companies need to enhance their ability to earn the
right to enter a mining region and extract its resources with
social responsibility.

Social Dimensions in Mine Planning

Strong emphasis on gathering of socioeconomic data at the front end of

the process a lack of social information can pose a risk for the mining
company
Initial public consultations should commence at the scoping stage , and
frequently all inclusive, in a culturally appropriate and socially relevant
way
Community ownership in building solutions for mitigation measures or
development opportunities
Acknowledgement that Social impacts extends beyond the footprint
overlays and may include direct and indirect impacts,
Separate consultations with vulnerable groups, in particular women,
minority or ethnic groups

Integration of Social Dimensions & Corporate

Responsibility

Participatory techniques, participatory land use planning & stakeholder

analysis
Quantitative methods for empirical measurements of project impacts
Group interviews, focus group (women, minorities, social orgs)
Analysis of Social impacts, level of significance for each impact &
measures developed for each anticipated impact
Impact for four key stages in the mine life: Design & planning,
Development , Mine operation, and Mine closure
Mitigation of Adverse impacts, Sequencing strategy to manage social
impacts, avoidance, minimization, compensation.
Planning and implementation of mitigation measures: a mines
development and construction phase often provide economic
opportunities.

Human Dimension

Explorationsocial mapping, livelihood patterns and coping strategies,

ownership of resources, power dynamics of different income groups,
ethnicities and genders.
Deposit Evaluationconsultations for prior and informed consent,
beginning of community engagement women must be a part. Gender
analysis roles of women & men.
Mine Planning-Social Impact Assessments, social mapping surveys,
Cultural Impact Assessments and R&R planning.
Constructioncommunity development begins with community-needs
surveys (men & women have separate needs).
Mine Operation-Livelihood projects, training & education, credit to set up
small businesses & income generating activities.
Mine Closure Community consultations, livelihood projects.

Conclusion
Mining is changing because of increased liabilities, permitting,
cost of environmental, and safety compliances.
More productive and economic alternatives, larger efficient
equipment and automation are also changing the mining
industry.
New mining developments , geology through mine closure will
be entirely integrated from planning through the operating
phases of the life of the mine.
The economic success of mining company will increasingly
depend on the fully integrated mine planning and feedback
mechanism.

Conclusion
Integrating all aspects of mining from exploration through
closure, mine plans can be developed based on a strong
understanding of ore body and other parameters throughout
the mining life cycle. By evaluating multiple future scenarios,
the best mining method, sequence and operational
characteristics under a number of changing environments can
be determined. Using this information, a management team
can ensure an appropriately balanced risk profile for mining
company. When is the right time to invest on project? Under
what circumstances should the production expand or
contract?

Conclusion
Mine planners are constantly under pressure to
evaluate the changing economic times and newly
acquired data on the mine plans.
Incorporating these changes such as metal price,
fluctuating cost assumptions, and newly acquired
geological and mine production data requires a
quick turnaround for model building and planning to
keep pace with changes as they occur.
Engineers can now quickly create and adapt
geological models and mine plans based on
constantly shifting field data.

Acknowledgements
Hongliang (Henry) Wang, Newmont USA Ltd.,
SME Annual Meeting, Denver, 2011.
Jourgen Fuyschot, SRK Consulting, Minex Conference, 2009
Kantula Lahiri-Dutt, Int. Conference on Mining, Phnon Penh,
May 2011.
Will Collingwood, University of Alaska Fairbanks, 2011
Kumar Vaibhav Raj, University of Alaska Fairbanks, 2011
Maptek-Vulcan & iGantt

SUMMER SUNSET IN FAIRBANKS