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By Juan P. Camus

One of the most important decisions in mine development is the selection of the mining method. Open pit or underground methods are selected depending on the shape of the deposit, and its position with respect to the surface. When the decision is not clear or evident, then the common rule is to compare underground and open pit projects to choose the one which yields the maximum return. However, in some circumstances' the best alternative is to start-up the operation with an open pit until a point where mine operating costs make more convenient to employ an underground method. In this case, the final pit limit is not directly related with commodity prices and its position is a funtion of capital and operating costs associated with both methods. The goal of this paper is a mans of establishing the proper ultimate pit considering a potential underground mine. The methodology is quite simple and can be implemented to work with a variety of available routines for pit optimization, such as Lerchs-Grossmann, floating cone, network flow and the Lemieux moving cone optimizing algorithm, which is the tool used by the author.

Jan 1, 1992

By Peter K. Achireko, Samuel Frimpong

Design and optimization of open pit limits are of paramount importance because they provide information for evaluating the economic potential of a mineral deposit and for developing short and long range mine plans. Many algorithms and their modifications have been used to design and optimize open pit limits. These algorithms have provided mine planning engineers with pertinent information in designing, optimizing and extracting ore reserves by open pit technology. However, they do not address the random field properties associated with the ore grades and reserves and commodity prices, and thus, fail to yield the truly optimized pit limits in any time horizon. In this paper, a new algorithm, MCSIMFNN, which overcomes these limitations is proposed and used to optimize open pit limits. The random field properties of the ore grade and reserves have been modelled using the modified conditional simulation based on the best linear unbiased estimation and local average subdivision techniques. Artificial neural networks are used to classify the blocks into classes based on their conditioned values. The error back propagation algorithm, in the neural networks, is used to optimize the pit limits by minimizing the desired and actual outputs error in a multi- layer perceptron under the pit wall slope constraints. The optimized pit value obtained by this algorithm has been compared to that from the Lerchs-Grossman's algorithm in a case study. The results are the same, but in random multivariable states, the MCSI MFNN algorithm is the most suitable for pit optimization. The method is also fast since it mimics the operation of the brain in the solution of the pit optimization problem.

Jan 1, 1996

By Edwin T. Wood

THE term blending as used herein refers to the mixing of ores assaying more than 0.20 pct U3O8 with low grade material assaying less than 0.20 pct U3O8. Such blending when properly understood and controlled will produce more total dollars of profit from many mining ventures. The question whether or not to blend is particularly vexing when an orebody is surrounded by an envelope of low grade material or separate tonnages of low grade exist which could be extracted coincident with the higher grade ores. Should any, all or part of this low grade be mined? If so, in what proportion and what is the limiting assay of the low grade material?

Jan 7, 1958

"Chairman: Professor E. P. PFLEIDER Rapporteur: Mr P. R. JANISCHPapers:Optimum design of an open pit by D. A. PhillipsAn open pit design system for stratiform ore bodies by L. A. J. Pronk van Hoogeveen, J. R. Cutland and M. WeirAn open pit design model by R. H. Robinson and N. B. PrennThe Chairman in opening the session highlighted the current situation in the United States of America where some 85 to 90 per cent of all mining (except for coal) is done by open pit methods, and where some 40 per cent of the coal is mined by open pit. The South African industry is, of course, dominated by the deeper level underground gold mines; however, with the aid of an extensive open-pit technology developed in other countries, South African companies arc continuing to explore possibilities of open-pit exploitation of base mineral, coal and diamond deposits. Several successful ventures are already in operation at Phalabora, Optimum Colliery, Kimberley and elsewhere, and South Africa is undoubtedly benefitting in this regard by drawing on the experience of others.The papers of this session were therefore particularly pertinent, particularly when viewed in conjunction with those presented at an earlier South African conference devoted specifically to open pit mining.Two themes dominated the discussion which followed presentation of the three papers at this session. The first related to the practicability of using the reported techniques as a tool for management, and their acceptability as such to mine management. This was, of course, not peculiar to this particular session, but rather the major point of debate over the entire conference.The second theme concerned the reliability of the initial drill hole data on which any open-pit design must necessarily be based. This gave added emphasis to the problem of practicability, for no management is likely to accept an elaborate pit design unless confidence can be placed in the ore reserve assessment.In noting these two features of the discussion, it should be remembered that all the three papers dealt largely with design and pre-planning; there was an unfortunate lack of papers or discussion on the subject of controlling the day-to-day mining of open pits, and this is an area where the potential impact which can be made by the computer is even greater.In introducing his paper, Mr D. A. Phillips pointed out that it was concerned only with optimization, and that it therefore assumed, firstly, an adequate subdivision of the orebody into ore blocks characterized by grade, rock type, structure, etc., and, secondly, an acceptable forecast of costs and mineral prices in order to generate a suitable profit matrix. However, programs dealing with these problems for both massive, disseminated and stratiform ore bodies are available to Roan Consolidated Mines. The method of optimization which he had described had been used on a region split into 28 000 blocks, for which the program used three hours of C.P.U. time on an IBM 360/40 computer. The computer design had provided a three per cent improve¬ment on a normal design of the same area."

Jan 1, 2014

By Barrie W. Sullivan

The New Celebration Gold Mine near Kalgoorlie in Western Australia was commissioned in late 1986 and the CIL treatment plant currently processes 1.7 million tonnes of gold ore annually. The 1988 geological resource was 13.2 million tonnes grading 2.37 g/t Au in several open pittable deposits with the bulk of gold mineralisation occurring as a stockwork in Archaean quartz feldspar porphyry intrusives along a major regional shear zone. Mine planning, scheduling and operating techniques have focused on minimising open pit dilution whilst maintaining production requirements. This paper describes the successful achievement of this aim in extremely variable ground conditions and orebody widths.

Jan 1, 1989

PURPOSE OF UPDATED ESTIMATE FOR MINERAL INVENTORY BLOCKS During the production stage of an open pit porphyry copper mine it was observed that the expected production grade, as determined from the block inventory estimates, often differed greatly from the head grade of ore delivered to the mill. It was determined that, for purposes of production scheduling and monthly forecasting, better in situ grade estimates for mining blocks were necessary. Because all of the bench blastholes were being sampled, and periodic holes were being drilled into the next underlying bench, much more sample data existed than was being used for estimating the grade of nearby mining blocks. It was reasoned that, by periodically updating the mineral inventory block file over the benches scheduled for mining in the next time period using all existing data, better estimates and forecasts for production grade could be made. BLASTHOLE SAMPLE DATA MANAGEMENT The collars of all blastholes in each mined bench were surveyed and assays run on the cuttings representing the full 12-m (40-ft) bench height. The blastholes range from about 5 to 6 m (16 to 19 ft) apart along the front of the bench as well as perpendicular to the front. Overbreakage often left larger spacings between successive blasts. Fig. 17-1 is a plan map of blastholes on a typical mine bench. All blasthole data were keypunched to a format resembling that of the 12-m (40-ft) composite assay data file as follows: [Collar Coordinates Compite Assoy Hole ID Northing East Elewotion Total Copper Oxide Copper] Because of the many blasthole samples available, and in order not to use excessive computer time for running kriged estimates for 30.5 X 30.5 X 12-m (100 X 100 X 40 ft) blocks adjacent to and beneath the mined area, the decision was made to average all the blastholes falling with each 15.2 X 15.2-m (50 X 50-ft) mined block, and use the mean value of the samples as a regionalized variable for purposes of assigning kriged estimates and estimation variance to adjacent unmined blocks. In other words, instead of using individual blasthole samples for making kriged estimates, the holes were grouped by blocks and assay values were averaged and assigned to the centroid of the holes within the block, which was then treated as a single regional variable for purposes of kriging. See Fig. 17-2. VARIOGRAM COMPUTATIONS AND KRlGlNG RESULTS With the many blasthole samples it was possible to compute directional and vertical experimental variograms for both sulfide and nonsulfide copper assays falling within the enriched mineral zone for the full 12-m (40-ft) sample support. Due to the close spaced drilling, excellent definition of the experimental variograms was possible, and the spherical model exhibited good fits. A three-dimensional kriging program was then run over the two or three mine benches involved in the inventory update, and estimated grades reassigned to all mining blocks falling within the range of the new blasthole assay data according to the anisotropisms of the deposit. Better confidence limits could then be assigned to scheduled mining blocks and better short- range forecasts made. An interactive kriging computer program was also applied for the purpose of determining the kriging variance or estimation of error for larger, irregular mining blocks representing the monthly production from a particular bench. The interactive program permitted the operator to enter the limits of the irregular block onto the screen of a cathode ray tube (CRT) as a series of points around the perimeter of individual gridded blocks making up the larger irregular block. The computer then was programmed to calculate the kriging variance of the larger block using all samples fall- ing within range. Thus the limits of estimated grade could be established at any confidence level. Fig. 17-3 illustrates the output from the interactive kriging program showing the sample points entering into the grade and kriging variance computations, and also the kriging coefficient assigned by the computer to each sample.

Jan 1, 1980

By A. M. Laird

Endako Mines' molybdenum operation is located near the geographic center of the province of British Columbia, Canada. The property is six miles south of the Northern Transprovincial Highway and the northern main line of the Canadian National Railway. The area is broken by high hills covered with dense stands of spruce and pine with vast areas of the valley floors covered with aspen and poplar. The climate is moderate with precipitation averaging 22 inches per year. Approximately four feet of snow accumulates in the winter, and temperatures range from 900 F. in summer to -40° F. in winter. The orebody, a lowgrade porphyry type deposit, occurs in a widespread granitic intrusive which has been locally weakened at the intersection of two regional faults. In this vicinity the quartz monzonite has been further shattered to permit the entry of mineralizing solutions and local dykes. Two types of mineralization occur within the orebody. The most prom¬inent is the six inch to four foot wide continuous quartz veins with characteristic ribbons of molybdenite and frequently finely-divided grains of molybdenite within the quartz. The second type occurs as fine fractures filled with quartz molybdenite in the form of a stockwork halo radiating out from 20 to 200 feet from the quartz veins. Minor hematite, magnetite and chalcopyrite are also present. Mineralization is roughly proportional to the extent of kaolinization in the quartz monzonite, kaolinization being one of three distinct forms of hydrothermal alteration. Pyrite is commonly associated with molybdenum mineralization within the orebody and a pyrite halo is recognized on the south side of the orebody.

Jan 1, 1968

By H. Sevim

The logic and capabilities of a long-term production planning method for open pit mining are presented. This is a new method that can be used to obtain simultaneous solutions to the four interrelated parameters of open pit mining: mine life, specific blocks to be mined each year, the amount of ore and waste to be mined each year, and the ultimate pit limits. An efficient milling cutoff grade can also be obtained through a systematic analysis. A production plan for a real-life gold deposit is given to illustrate the logic and the capabilities of the method.

Jan 1, 1994

In this paper, the logic and the capabilities of a long term production planning method for open pit mining are presented. The method is the first attempt in obtaining simultaneous solutions to the four interrelated parameters of open pit mining; 1) the mine life, 2) the specific blocks to be mined each year, 3) the amount of ore and waste to be mined each year, and 4) the ultimate pit limits. An efficient cutoff grade can also be obtained through a sensitivity analysis. None of the existing methods can bring such a comprehensive solution to the problem. A production plan for a real life gold deposit is given to illustrate the logic and the capabilities of the method.

Jan 1, 1993

Open pit production planning is a procedure consisting of multiple stages. Although all the planning stages rely on the geostatistical block models, long- to short-term plans each require their appropriate resolutions and levels of details. The main motives behind using different resolutions are the tractability of the models and the practicality of the generated schedules. The current approach in the mining industry is to use nested pits generated by Lerchs-Grossman as the basis for long-term planning and to use manually generated polygons, within those pushbacks, as the units of production control in mid- and short-term planning. However, the nested pits generated by Lerchs-Grossman algorithm and the polygons drawn by mining engineer do not provide control over the value and tonnage of ore and waste inside the planning units and therefore cannot lead to optimum solutions. In this paper, we first present a pushback determination approach which maximizes the profit of the mine with control over the tonnage of ore and waste within each pushback. We then propose a clustering approach with size and shape control that determines aggregates within those pushbacks; and finally, we introduce a mathematical programming model which uses the generated pushbacks and aggregates as the planning basis and generates production schedules that maximize the net present value of the operation and are practical from the operation?s point of view.

Aug 1, 2013

The long-term production schedule of open pit mines that maximises the net present value (NPV) of a given project relies on the proper design of phases (pushbacks) within the ultimate pit limits. There is not a phase design algorithm applied in the mining industry today that gives yearly production schedules that are optimum.The majority of phase design algorithms currently in use by the mining industry aims at grouping the blocks that fall within the ultimate pit limits into phases such that the average value of the blocks within each phase decrease as the size of the phases increase. Current phase design methods are typically based on a pit limit optimisation algorithm, originally introduced by Lerchs and Grossmann (LG) in 1965. To obtain multiple pit shells to be used for the phase design, the LG pit limit algorithm successively applied to economic block models by changing the price of the commodity or some other factor that properly parameterises the size of the pit. These modified economic block models are developed by predetermining the destination for each block in the model based on a breakeven analysis and highest economic outcome between alternative destinations. Phase designs determined by these existing algorithms may be suboptimal if a given project utilises multiple processing facilities for metal recovery and particularly if these facilities have restrictions (constraints) that require blending of attributes in the feed. To overcome these problems in obtaining phases that optimise overall production schedules, a new algorithm is developed at the Colorado School of Mines. The algorithm determines the phases of an open pit mine by taking into account multiple process options for the blocks and period by period blending requirements. This algorithm has been implemented within a software program (the software) and is being prototyped successfully in the design of improved pushbacks at a copper mine in South America and on a gold mine in Nevada. This presentation will demonstrate the shortcomings of the traditional phase design methodologies based on comparison of results coming from the new approach versus the traditional.

Dec 6, 2010

By R. A. Halatchev

Historically two basic approaches of production sequencing have been formed in the theory of open pit mine design. The first approach implements a technological discretization of the pit space within the ultimate pit outlines where the minimum working width is the limiting technological factor. The second approach uses a pseudo-economic discretization based on the implementation of analytical methods for designing intermediate/ultimate pit outlines and the concept of pit shells generation. The paper offers an elaborate analysis of both approaches used currently for discretization of the geological medium into working benches and modelling the working zone of open pit mine. The analysis is extended with a new vision for unification of the mining systems in open pit mine design under the form of a classification. A comparison of the approaches is provided to illustrate their advantages and disadvantages with regard to the implementation of the principle of waste deferment as one of the main principles of mine planning that exploits the time effect of money.

Jan 1, 2003

By Graham A. Mathieson

The precise definition of an ultimate or economic pit has, over the years, received much attention in the literature on the subject of mine planning. Unfortunately, relatively little has been published in the area of pit sequencing and scheduling--an aspect which is typically of much greater economic significance both during the life of a mining operation, as well as in the evaluation of an exploration project. This paper discusses an overall mine planning methodology with emphasis on the design of an optimal sequence of pit expansions or phases. Although the concepts given are not new, it is hoped that some practical suggestions will be made. The paper will also describe graphical techniques which have been found useful in comparing the merits and impacts of alternate planning strategies and production schedules.

Jan 1, 1982

By J. R. Mattern

The engineering geology of the Rio Tinto Borax Boron Mine creates challenges in providing practical slope design recommendations to mine planning engineers. Low strength sedimentary units interbedded with very low strength lakebed clays surround the orebody. Faulting has offset and juxtaposed these units into variably adverse orientations, while groundwater is compartmentalized both vertically and horizontally within fault blocks. A collective program of geologic data collection, geomechanical strength testing, geologic modeling, slope depressurization, confirmation of underground stope locations, and documentation of slope behavior provides vital information for design investigations and sensitivities. Analysis results lead to risk assessments and operational procedures that add value to the business by optimizing slope configurations and minimizing risk.

Jan 1, 2004

By J. F. Lupo

There are numerous mines throughout the world that have open pit highwalls developed partially or wholly in soil or soil-like materials. Soil-like materials are considered to include soils (either transported or residual) and highly weathered rock, which may have soil-like behavior. These materials generally have characteristics or material properties that vary considerably from those of moderately weathered or fresh rock. Given these differences, it is important to consider the characteristics of soil-like materials to design safe open pit slopes. In the design of open pit slopes in soil-like materials, it is important to recognize the behavior of these materials is strongly dependent upon their mineralogy, degree of weathering, cementation, stress history, depositional history, and presence of water. As a result, soil-like materials may contain one or more of the following characteristics that can have a significant effect slope stability and design: - Relict structural features (joints, faults, etc), - Sensitivity to moisture (both wetting and drying), - Zones of alteration with variable strength and drainage characteristics, - Zones of low permeability creating perched ground water conditions, and - Undrained and drained strain softening or strain hardening behavior.

Jan 1, 2011

By Caner Zanbak, Erdogan Yüzer, Mahir Vardar, Kemal A. Erguvanli

The Hasancelebi iron deposit in Eastern Turkey is a very low grade (average 20% oxide) magnetite body consisting of 720 million longtons of proven reserve at a 10% cut-off limit. The ore-bearing scapolitic oclcs cover an area of approximately 4300m x 300m, and the thickness of the outcropping deposit exceeds 300m. Prefeasibility project studies revealed that a one degree decrease in a 45° final slope angle of the proposed pit would require excavation of approximately 10 million cubic meters of excess waste material, for a projected pit bottom 300 meters below the valley floor. There- fore, determination of the final slope angles of the open pit was considered to be the most important task in the feasibility analysis of this project. In this investigation, the main emphasis was given to collection, compilation and evaluation of the engineering geological, hydrogeological and rock mechanics data of the highly fractured and weathered rocks. Due to the presence of intense fracturing, the rock wedge analysis method was used for projected 30m-high benches and the circular failure analysis method was used for the stability of the projected final pit slopes. The proposed bench slope angles ranged between 60° and 80°, whereas the projected final slope angles varied between 30° and 48°, depending on the slope heights and groundwater levels.

Jan 1, 1983

By M Recabarren, A Echeverria, J Ronda, J I. Guzman, R Dodds, G Juarez, E Vila-Echague

A strategic mine plan is a fundamental part of any mining operation. It must provide a realistic and operative extraction and processing schedule, and yield the highest value for the business. For open pit mines, the problem can be modelled as a set of blocks representing the deposit, for each of which we need to decide if it is going to be mined, if so, when and where it will be sent (process, stock or dump).This problem can be proven to be of NP-Hard complexity. The traditional approach used by mining engineers to tackle this complexity is to separate the problem into more tractable components, solving each separately. The first step is to use the Lerchs-Grossman (LG) algorithm to obtain the final pit limit, as well as a set of optimised pit shells (nested pits), using different input prices. Then, using this input, operational phases are designed. Third, the set of phases can be used as an input for a phase-bench style optimisation, usually using a mathematical programming-based algorithm.There are, however, several problems with this approach. First, dividing the problem into simpler parts has the consequence that any compromises made at early stages limit the potential value left for the following steps. Second, LG is a static algorithm, with no concept of the time-value of money, capacity limits, opportunity costs, etc. Phase design is essentially a manual step, for which nested pits provide insufficient information in practice, and therefore the quality of the result in terms of potential net present value (NPV) depends strongly on the experience and expertise of the designer. This means that key input data such as commodity prices, different processes capacities and mine movement limits, are considered only at scheduling, when there is little room for optimisation. This sequential approach limits the potential value in each step, where a simplified problem is addressed, instead of addressing the real, and more complex problem, which is dynamic and should be solved as a whole.We present in this paper an algorithm, and its commercial software implementation, that addresses the dynamic problem as a whole, simultaneously and automatically creating a high-value strategic mine plan that adheres to basic operational constraints, determining dynamic cut-off grades and delivering a set of phases which can serve as a much stronger guide than nested pits for the final design. We discuss some of the key elements of the algorithm and propose a new methodology for strategic mine planning, where phase design dynamically responds to mining strategy definition. Results using different mining and operational parameters on a fictitious copper deposit are used as a demonstrative example.CITATION:Juarez, G, Dodds, R, Echeverria, A, Guzman, J I, Recabarren, M, Ronda, J and Vila-Echague, E, 2014. Open pit strategic mine planning with automatic phase generation, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 147–154 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By Tony Peach

Project Description The Ok Tedi Mine is located approximately 18 km east of the Papua and New Guinea-Indonesia border, on the southernmost extremity of the Star Mountains Range, it is situated almost equidistant from the north and south coastlines. The headwaters of the Fly River system are in the Star Mountains. The open pit mining activities are on Mt Fubilan with a (pre-mining) elevation of 2,095 metres (6,871 Feet) in the Western Province. The mine is in an area characterised by very steep topography and dense tropical rainforest. The pit has been free draining but will cease to be so in the first quarter of 2009. Ok Tedi Mining Limited (OTML) required a drainage tunnel to be driven under the mine, if possible before free drainage was no longer possible. The tunnel was required to be at least 5 m in diameter and 4,200 m (13,776 ft) long, with a possible extension of 1,100 m (3,608 Feet) if the mine decided it was required for additional drainage and underground exploration. The tunnel is being driven up grade at 0.67%, and will be connected to the pit by the raising boring of two 1.1 m (3 Ft. 6 In.) diameter shafts from the tunnel level 250 m (820 Feet) below to the pit. In Tabubil, the adjacent township at an elevation of 640 m (2,100 feet), air temperatures range from a mean at night of 20 (68°F) degrees centigrade to a daytime aver-age of 27 (81°F) degrees. Extremes of 12 and 39 (54°F?102°F) degrees centigrade have been recorded. Rain falls, on average, 339 days each year and totals 8,000 mm (315 inches), and have been known to approach 12,000 mm (472 inches) making the area one of the wettest places on earth. The portal site is at an elevation of 1,200 m or 4,000 ft and the air temperatures are a little cooler and the rainfall a little greater. Access to the mine is by air for personnel and light freight and by ship for heavier goods and materials. The port is at Kiunga on the Fly River 153 km from the portal site. The program for the project was tight, the decision to purchase the required TBM was made in July 2007 and the final decision to go ahead with the construction of the tunnel was made in November 2007.

By P J. Terbrugge

Many ore deposits have considerable vertical extent which is not always known at the time of commencement of mining. In many of these cases, initial mining is by opencast methods, and as ore reserves are proved to greater depths, the pits are often planned to go deeper than had been originally envisaged. In such cases, surface plants and critical underground facilities such as conveyer tunnels, access ramps, ore passes, hoisting shafts and ventilation shafts are often located much closer to the pit rim and the orebody than is desirable for the deeper mining situation. This usually raises the question of the stability of such underground excavations, which may be critical for the viable longer-term mass underground operation of the mine. In this paper the key considerations in the evaluation of the stability of the overall mining environment for ædeepened minesÆ are defined. Aspects which are dealt with are: open pit stability, shaft stability, dilution, mudrushes and airblasts, and selection of mining method. The necessary stability evaluations are put into the appropriate context by considering two case histories. Critical parameters and considerations which need to be addressed during the evaluation of excavation interaction are also discussed.

Jan 1, 2000

By K Dagdelen, I Traore

This paper presents an iterative net present value (NPV) maximisation method to determine the optimum surface to underground transition depth for an orebody to be mined by multiple open pits and an underground mine. The determination of transition depth from open pit to underground mining is based on global production scheduling optimisation of open pit and underground mines using mixed integer linear programming. The method is applied to a case study coming from a gold mining complex with six open pits and a large underground mine using longhole open stoping. The results indicate potential improvements of the NPV of global operations when compared to the traditional techniques based on independently optimised open pit first, followed by underground mining.CITATION:Dagdelen, K and Traore, I, 2014. Open pit transition depth determination through global analysis of open pit and underground mine production scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 195–200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014