Open Pit Optimization Considering An Underground Alternative - Introduction

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.