Is a 2.5áper cent Success Rate Good Enough? Traditional Mine Development Methods have the Tail Wagging the Dog

Australian Bureau of Statistics (ABS) data shows that since 2006 the balance of capital costs associated with mine development has become weighted greater than 75 per cent to enabling infrastructure and less than 25 per cent on process plant, equipment and machinery. The well-developed mine planning techniques including pit optimisation and scheduling and process plant design and optimisation have typically proceeded in a linear fashion from geology, mine planning, through processing, with some iterations back to the mine. Only then is attention paid to planning and costing of enabling infrastructure in any detail.Optimisation has typically involved developing cut-off grades, mine plans and schedules and ore processing that produces maximum economic ore. Infrastructure has then been sized æto suitÆ the mining and processing core business drivers.What the ABS data, together with global trends, indicates is that infrastructure can no longer be an afterthought if miners wish to achieve robust project value estimates, realistic ore to market costing and resource statements based on achievable economic cut-off grades.In addition, with such a large proportion of the costs originating from non-mining or processing activities, a mining operation can only be truly optimal if these aspects are given due consideration in the mine design stages, based on quality geometallurgical inputs so that the size and cost of enabling infrastructure is optimised to maximise project value.This paper outlines an iterative holistic approach to mining project development, which integrates the geometallurgical approach and enables infrastructure planning into project design and evaluation. It presents case studies showing reduced overall costs, increased net present value (NPV) and reduced project delivery timelines.CITATION:Curry, D C, Keith, A C and Jackson, J, 2013. Is a 2.5 per cent success rate good enough? Traditional mine development methods have the tail wagging the dog, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 113-128 (The Australasian Institute of Mining and Metallurgy: Melbourne).