A Spatial Mine-to-Plan Compliance Approach to Improve Alignment of Shortand Long-Term Mine Planning at Open Pit Mines

"The objective of any mining company is to sustainably maximize the net present value (NPV) throughout the life-of-mine (LOM). The expected NPV over the LOM is calculated based on a mine plan, yet the actual value realized by the mining company depends greatly on the level of intertemporal execution against the mine plan. Consequently, a major key performance indicator (KPI) that is often overlooked in open pit mining, due to a greater focus on temporal KPIs, is the degree of spatial compliance to the mine plan. Such focus sometimes leads to short-term actions being detrimental to long-term plans. In this paper we describe the development and implementation of a spatial mine-to-plan compliance reconciliation approach for an open pit mine. Application to a case study open pit iron ore mine in South Africa indicated a significant improvement in the spatial mine-to-plan compliance, from 69% to 94% over a three-year period from 2014 to 2016. These results indicate that implementation of the proposed spatial mine-to-plan compliance reconciliation approach can contribute positively to improving the level of spatial execution and assists in improving the alignment between short-term, medium-term, and LOM plans.IntroductionThe objective of any mining company is to maximize the net present value (NPV) throughout the life of mine (LOM). However, this objective needs to be fulfilled in a sustainable manner that considers the needs of various stakeholders, including employees, shareholders, and local communities where the mines operate. The expected NPV is calculated using a mine plan as a basis. Mine planning broadly involves identifying a strategy to exploit the mineral resource in a way that maximizes value at an acceptable level of risk throughout the LOM (Tholana and Neingo, 2016).The mine planning process is a well-recognized component in the mining value chain of an open pit mine. Figure 1 reflects the relative position of mine planning within a typical open-pit mining value chain from the mineral resource to the market"