How An Object-Orientated Modelling Approach For A Mine Option Study Can Increase The Quality Of Decision: A Case Study

A large new underground platinum mining project required that all different mining options were investigated during an option study before proceeding to the prefeasibility stage of the project. The capital project team identified 21 different options requiring investigation. These options considered 10 different access methods and 4 different mining methods. Each of the 21 options required a mine design, a valid production schedule, and the associated economics in order to facilitate a comparison on project Net Present Value (NPV) and other metrics. The project sponsors required this work to be completed in 3 months and therefore the project team decided to adopt an object-oriented modelling approach as implemented by Cyest Corporation. This would allow all 21 options to be valuated within the tight time frame due to the generation and re-use of templates. Standard objects were configured into templates containing the mine layout, design, and scheduling logic. These templates could then be assembled into a model to represent the option being investigated. The adoption of rules-based design and production scheduling then allowed for the rapid generation of a valid production schedule for each option with different iterations of varying production ramp-up and mining efficiency assumptions. The activity-based operating costs, labour, and capital were also linked to the standard templates such as a half level or barrel, which were then replicated to represent the overall mine structure for each option under consideration. Using this approach for each option, a full production schedule was produced per mining activity, the operating costs were calculated using activity-based costing, an infrastructure capital expenditure estimate was determined, the development capital requirements costed, and an overall NPV determined. This options study was completed in an unprecedented 10 weeks and a recommendation was put through to the Business to take three of the options to the next study phase.