http://dx.doi.org/10.

17159/2411-9717/2019/v119n3a4

A spatial mine-to-plan compliance

approach to improve alignment of short-
and long-term mine planning at open pit
mines
by T.J. Otto1 and C. Musingwini2

term planning processes (McCarthy, 2015).

'% ) According to Steffen (1997), most open pit
mining operations follow a systematic and
The objective of any mining company is to sustainably maximize the net
present value (NPV) throughout the life-of-mine (LOM). The expected NPV
disciplined mine planning process involving
over the LOM is calculated based on a mine plan, yet the actual value three distinct levels of mine planning in
realized by the mining company depends greatly on the level of developing the Mineral Reserves. These levels
intertemporal execution against the mine plan. Consequently, a major key are the:
performance indicator (KPI) that is often overlooked in open pit mining, ® LOM plan
due to a greater focus on temporal KPIs, is the degree of spatial compliance ® Long-term plan (LTP), which follows
to the mine plan. Such focus sometimes leads to short-term actions being
from the LOM
detrimental to long-term plans. In this paper we describe the development
® Short-term plan (STP), which in turn
and implementation of a spatial mine-to-plan compliance reconciliation
approach for an open pit mine. Application to a case study open pit iron follows from the LTP.
ore mine in South Africa indicated a significant improvement in the spatial Each of these stages of planning represents
mine-to-plan compliance, from 69% to 94% over a three-year period from different levels of risk and has different
2014 to 2016. These results indicate that implementation of the proposed objectives. The planning horizons for the
spatial mine-to-plan compliance reconciliation approach can contribute different stages are also broadly referred to as
positively to improving the level of spatial execution and assists in the strategic, tactical, and operational planning
improving the alignment between short-term, medium-term, and
levels (Tholana and Neingo, 2016).
LOM plans.
Literature on mine planning generally
-(%$
 focuses on ways of improving mine plans by
intertemporal compliance, spatial compliance, short-term plan, long-term incorporating the analysis and evaluation of
plan, LOM plan. risk into the planning process, thereby
improving the expected NPV and/or risk-
adjusted NPV of the mine. The literature deals
,'"$%
!")%' mainly with the strategic level of mine
The objective of any mining company is to planning. Various studies have been devoted
maximize the net present value (NPV) to improvements in the mine planning process
throughout the life of mine (LOM). However, with the aim of developing optimal mine plans.
this objective needs to be fulfilled in a These include advances in mine planning
sustainable manner that considers the needs of software and related systems that are
various stakeholders, including employees, employed in mine planning (Gurgenli, 2011)
shareholders, and local communities where the and the application of orebody flexibility to
mines operate. The expected NPV is calculated ensure maximum mineral asset utilization in
using a mine plan as a basis. Mine planning underground mining applications (Tholana
broadly involves identifying a strategy to and Neingo, 2016), as well as the progression
exploit the mineral resource in a way that of stochastic mine planning techniques. Where
maximizes value at an acceptable level of risk stochastic approaches have been applied, they
have proven to be able to add higher value in
throughout the LOM (Tholana and Neingo,
production schedules – in the order of 25%,
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 1 Anglo American Kumba Iron Ore, Corporate
mineral resource to the market. Office, Centurion South Africa.
2 School of Mining Engineering, University of the
The mine planning process begins with a
Witwatersrand, South Africa.
sequence of increasingly detailed feasibility © The Southern African Institute of Mining and
studies and continues throughout the life of Metallurgy, 2019. ISSN 2225-6253. Paper received
the mine through several long-term and short- Sep. 2018.
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A spatial mine-to-plan compliance approach to improve alignment

)$(*)')'* &#(*!&)'*$%*$(%$!(*"%*&$
("

with consequent improvements of up to 30% in the NPV operate a large open pit mine two major areas need to be
compared to conventional approaches to mine planning managed; namely the quality and integrity of the mine
(Dimitrakopoulos, 2011). planning process and the execution of the mine plan. The
Despite significant improvements in the mine planning importance of execution against the mine plan is also
process and the resultant mine plans, open pit mining highlighted by Musingwini (2016); operations are measured
remains a high-risk business (Sabour and Dimitrakopoulos, against planned targets in order to evaluate operational
2008). There are numerous sources of risk, and these can be performance.
grouped as: The level of execution or compliance against a mine plan
® External uncertainties such as volatile commodity can be measured in two ways – time-based or temporal
prices and exchange rates measurements, and area-based or spatial measurements. The
® Internal uncertainties such as geology, chemical quality measurement of performance against temporal metrics is
predictions, operational uncertainties, and input cost. common practice in the open pit mining industry and these
Open pit mines are dynamic environments that are time-based targets are typically short-term focused. The
characterized by a continuous displacement of the working measurement of performance against spatial metrics is
faces both in time and space (Halatchev and equally important in an open pit mine. These area-based
Dimitrakopoulos, 2003). The existence of risk (and metrics provide insight into the long-term aspects of
opportunity) in open pit mining is evident when considering execution against the mine plan. The development and
the differences between the expected and actual outcomes implementation of a spatial mine-to-plan compliance process
achieved by mining projects and operating mines. This was is important to ensure:
noted from benchmark studies considering mainly Australian ® Long-term sustainable ore supply
mining operations. A survey of 48 Australian mining projects ® That key issues adversely impacting on mine
showed that the actual tonnages extracted for 46% of these production are identified (e.g. ramp establishment,
mines were more than 20% higher or lower than those dewatering, drill-and-blast quality, pre-split and buffer
expected (Sabour and Dimitrakopoulos, 2008). Benchmark blocks)
studies of 21 open pit mines by AMC Consultants evaluating ® The achievement of planned mining flexibility.
the monthly variability between the mine budget and actual Previous studies on spatial mine-to-plan compliance have
production over a 12-month period showed an average been done in mining environments other than open pit
variability of 29% for ore tonnes mined (McCarthy, 2015). mining and have mainly focused on short-term plans. For
Ramazan and Dimitrakopoulos (2004) indicated that about example, Angelov and Naidoo (2010) described a two-
60% of the mines surveyed had an average rate of production dimensional (2D) spatial mine-to-plan compliance approach
in the early years of operation that was less than 70% of the that determines the degree of deviation from the original
designed production capacity. The failure to have actual short-term mine plans in underground coal mines by
outcomes close to or the same as planned targets is widely comparing actual mined areas to initially planned mining
acknowledged in the mining industry as a top risk areas. Morely and Arvidson (2017) proposed a spatial mine-
(Musingwini, 2016). to-plan compliance approach that determines spatial
Ultimately, the actual value realized by the mining comparison of volumes measured monthly against the short-
company (as opposed to the expected value) is not only term plan. The purpose of this paper is to describe the
dependent on the quality and integrity of the mine plans; it development and implementation of a standardized spatial
also depends greatly on the level of execution against the mine-to-plan compliance reconciliation approach at an open
mine plan. The effective execution of the agreed-upon mine pit mine by comparing planned and actual tonnages in three
plan is therefore critical to the successful operation of an dimensions (3D) instead of just comparing volumes and
open pit mine (Hall and Hall, 2006). In order to sustainably aligning short-term plan execution to long-term plans.
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A spatial mine-to-plan compliance approach to improve alignment
.*"$&!
* &")&#*)'("% #&'*!% #)&'!(+ KPIs that mining companies track on a weekly, monthly,
quarterly, and annual basis and the long-term value expected
To achieve the goal of creating long-term value, mining
by (and often promised to) stakeholders.
companies (with operational mines) typically develop short-
term measures of value against which operational and
)'("% #&'*!% #)&'!(*%
(#
financial performance are tracked. As a result, many time-
based or temporal key performance indicators (KPIs) are The spatial mine-to-plan compliance at an open pit mine can
developed and tracked by mining companies. be measured effectively when the following major
One grouping of KPIs is concerned with reconciling components are in place: a quality mine plan, a process of
planned activities with what actually happened. Conducting capturing and analysing actual mining progress spatially, and
reconciliation across the mining value chain ensures that the definitions or categories for reconciling the actual areas
mining process occurs in a progressively more predictable mined with the planned mining areas. These aspects are
manner (Bester et al., 2016). Reconciliation in the open pit explained in the following sections.
mining industry is a broad subject and is usually associated 

with comparing the results of planned versus actual activities
As a start, it is important to define ‘the plan’ against which
for temporal KPIs such as the waste production, plant
spatial mine-to-plan compliance is measured. The tactical
production, and chemical and physical qualities of the
horizon of mine planning normally involves the development
product for the specific time period under review. The main
of annual tactical plans (also referred to as budget plans,
reason for undertaking these reconciliations is performance
business plans, or medium-term plans). These plans are
tracking with the purpose of operational improvement.
successors of feasibility studies and LOM plans, and
Consequently, a major KPI that is often overlooked in the
predecessors of operation plans (Phillis and Gumede, 2011).
open pit mining industry is the level of spatial compliance to
These annual production schedules are a critical factor in the
the mine plan, which measures how well the mine plan is
planning of open pit mines. They deal with the effective
executed spatially. This requires considering not only what is management of a mine’s production and cash flows in the
being mined and when, but also where the mining activities order of millions of dollars (Ramazan and Dimitrakopoulos,
are taking place in the open pit. This is important because 2004). The reason for focusing on the tactical mine plan is
mining in areas outside of the planned areas can affect future that this plan is typically the basis for annual budgets and, as
waste stripping or advance into future production areas too such, it sets annual operational and financial performance
early. targets. Management is expected to deliver against annual
Hall and Hall (2015) stated that the major focus of high- mine plans – these plans are a form of contract between a
performing open pit mines should be on delivering the mine and its stakeholders (Phillis and Gumede, 2011). The
operational and financial targets according to the tactical tactical plan provides the bridge between strategic mine
mine plan, without compromising the mine’s ability to deliver planning and operational planning and translates the
on its future KPIs. The difference (if any) between planned expected long-term value (often expressed as NPV) into
and actual performance should therefore be regularly operational and financial targets such as monthly production
measured and monitored. The monitoring of compliance with tonnes, product quality, unit cost, and revenue projections.
the mine plan should also consider spatial aspects. It is Importantly, it remains a mining plan and therefore also
important to identify where material has been mined to prescribes the spatial development of the open pit mine.
ensure that the progress of mine development is adequate to For these reasons, the annual tactical plan produced for
meet long-term strategic targets such as timely access to an open pit mine is used as the basis for tracking the spatial
future ore (Hall and Hall, 2015). An unbalanced focus on mine-to-plan compliance. The minimum output required from
short-term temporal KPIs such as productivity improvements the tactical plan is stage plans for the agreed-upon measuring
or unit cost reduction at the expense of spatial compliance period (typically monthly) per mining area (or pushback) and
with the mine plan could lead to the prioritization of mining bench. The stage plans are typically provided in the
inappropriate mining activities in the wrong mining areas. format of a digital terrain model (DTM) indicating the areas
The development and implementation of a spatial mine- planned for mining per month. In addition, ore and waste
to-plan compliance reconciliation approach is of critical tonnages for these areas are calculated from the applicable
importance in an open pit mine, as it ensures that short-term mining model, which contains the appropriate geological
KPIs are achieved by identifying key factors negatively information for these areas. These outputs are typically
impacting on mine production while giving adequate generated using mine scheduling software and a suitable
consideration to long-term KPIs such as sustainable ore general mining package (GMP).
supply and the achievement of planned mining flexibility.
An evaluation of the operational performance of an open  
pit mine that considers only temporal KPIs, such as monthly In an open pit mine the survey department is typically
ore and waste tonnages mined, can provide a false sense of responsible for capturing and analysing actual spatial mining
security to mine management as performance against these progress. Best practice in data acquisition involves the use of
KPIs could be positive while mining activities are not laser scanners to conduct month-end ex-pit production
occurring in the correct spatial areas in the open pit, to the measuring surveys. Riegl and Maptek scanners exceed the
detriment of long-term KPIs such as timely exposure of minimum requirements for the spatial accuracy of surveyed
future ore. Spatial mine-to-plan compliance is therefore a data-points and are currently considered industry-leading
critical KPI as it provides a bridge between the short-term technologies. Scanners and associated global positioning
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A spatial mine-to-plan compliance approach to improve alignment
system (GPS) equipment are checked and calibrated on a envisaged in the tactical plan and the incremental (or
weekly basis to ensure their spatial accuracy is within 50 monthly) areas within the bigger tactical plan. This
mm. Although Total Stations are also still utilized, laser introduces the concepts of in-sequence and out-of-sequence
scanning technology is preferred due to its speed, accuracy, mining as subsets of mining within the tactical plan. Actual
density of survey points captured, and the ability to work mining is deemed to be in sequence when it took place within
effortlessly in a 3D environment. the areas indicated in the tactical plan up to the date of
The laser scanning process involves the continuous measurement. Actual mining is deemed to be out of sequence
scanning of open pit working areas during the production when it took place within the areas indicated in the tactical
month and again at month-end. The working areas are plan but after the date of measurement. For example, for the
typically scanned in a ‘stop-and-go’ mode from three reconciliation process done at the end of month six of a
positions to ensure accurate spatial registration of the specific year, all actual mining activities that took place in
scanned data as well as complete coverage of the working areas planned for months one to six are deemed in sequence,
areas. These working area scans are then registered and a while actual mining activities that took place in areas
report is generated which states the spatial accuracy achieved planned for months seven to twelve are deemed out of
for the scans. A survey DTM of the pit is then generated by sequence. The categories used for reporting spatial mine-to-
combining all the individual scans. The survey DTM plan compliance are described in Table I and illustrated in
represents the actual pit surface at the time of measurement. Figure 2.
By comparing the latest survey DTM with the DTM developed Compliance measurement per category is calculated as a
at the start of the measuring period (month), areas where tonnage compliance and expressed as a percentage of
mining took place during the month under evaluation, can be planned tonnes for ore, waste, and total material mined.
identified.
)'("% #&'*!% #)&'!(*$(!%'!)#)&")%'* $%!(
   

The components of the mine-to-plan compliance model
 described above provide the basis from which the
The spatial data can now be analysed in order to reconcile the reconciliation process can be managed. The detailed steps of
actual mined areas with the planned areas in 3D space. the reconciliation process are presented in the following
Actual and planned mining areas are then divided into three sections.
categories: ‘mined in plan’, ‘mined out of plan’, and the
resultant ‘planned areas not mined’. The reconciliation is 
done by considering both the total (or annual) area The spatial compliance against the tactical mine plan is

Table I

&"(%$)(*%$*!&#!#&")'* &")&#*)'("% #&'*!% #)&'!(

&"(%$ (!$) ")%' %#%$*!%
(

Planned and mined in sequence Areas that were planned to be mined and were mined in sequence. Green
Planned and mined out of sequence Areas that were planned to be mined but were mined out of sequence. Yellow
Mined out of plan Areas that were mined completely outside of the tactical plan. Red
Planned not mined Areas that were planned to be mined but not mined. Brown

)$(*&"(%$)(*%$*!&#!#&")'* &")&#*)'("% #&'*!% #)&'!(

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)$(*( %$")'*%*!#&") (* &")&#*)'("% #&'*!% #)&'!(*"($('*

reported on a monthly basis using the categories described in considering how these areas should be prioritized in future
Table I. The reporting format consists of graphs in which the operational plans. The plans also assist in understanding the
spatial compliance is expressed as a percentage of planned reasons for adverse outcomes with the aim to improve future
tonnes mined. This allows for evaluation of the year-to-date mine-to-plan compliance.
compliance as well as the assessment of trends in the spatial
mine-to-plan compliance over a given period of time. Figure 3
illustrates an example of the reporting of spatial mine-to-plan
compliance on a cumulative monthly basis.
From the information provided in Figure 3 the following
interpretation can be made using the mine-to-plan
compliance data.
1. The actual tonnes mined for the seven month period is
102% of the planned tonnes
2. 79% of the mining took place in the areas planned to date
(mined in sequence)
3. 14% of actual mining took place within the areas planned
in the tactical plan but after the date of measurement
(mined out of sequence)
4. 9% of mining took place outside of the tactical plan
(mined out of plan).
In addition, the monthly trend provides further insight
into month-on-month changes in compliance to the tactical
mine plan. The major implication of below-targeted spatial
mine-to-plan compliance is the fact that planned areas are
not mined (i.e. mining capacity is not applied spatially in line
with the tactical plan). This impacts negatively on the open
pit mine’s ability to achieve operational (production and
product quality) and financial targets.
The reporting is further enhanced with plans per mining
area illustrating the reconciliation between areas planned and
areas where actual mining took place (Figure 4) by using the
categories in Figure 2. Although these plans allow for further
analysis of the areas actually mined, the real value lies in )$(* #&'*%)'* &")&#*)'("% #&'*!% #)&'!(
evaluating the areas that were planned but not mined and $(!%'!)#)&")%'*$(#"*&"*)('*)$%'*%$(*)'(*'&'*
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A spatial mine-to-plan compliance approach to improve alignment
It is important to note that the mine-to-plan compliance iron ore Mineral Reserve was approximately 500 Mt and the
reconciliation results should not be considered in isolation. LOM stripping ratio approximately four times. The Sishen pit
These results should be included in a consolidated is a conventional open pit, truck-and-shovel operation. In
performance dashboard for an open pit mine that provides a 2017, a total of 162 Mt of waste material was mined at
holistic view of the mine’s technical and financial Sishen, making it the single biggest open pit mine in
performance against temporal and spatial short-term and southern Africa on a tonnes per annum basis. Both dense
long-term KPIs. medium separation and jig processing plants are employed
and the annual product output in 2017 was 31.1 Mt.
 The spatial mine-to-plan compliance methodology was
Target setting is of paramount importance for the successful introduced at Sishen during 2013. The focus of the mine-to-
management of spatial mine-to-plan compliance. It is plan compliance reconciliation model and process is to track
important to select targets that reflect industry best practice spatial compliance against the annual business plan (tactical
while taking account of historical performance, levels of plan) agreed upon as part of the annual business planning
flexibility in the open pit mine, as well as practical cycle.
considerations. For the purpose of explaining the process and Spatial mine-to-plan compliance reconciliation takes place
based on acceptable results achieved, the target for spatial through a well-established monthly management routine
mine-to-plan compliance against the tactical plan is set at a using the model and process discussed in this paper. At
minimum of 85% in-sequence mining and a maximum of Sishen, the mine-to-plan compliance results form part of a
15% mining outside of the tactical plan. The targets should technical key success factor (TKSF) dashboard that is used to
be refined as the mine-to-plan compliance process is measure and manage the technical health of the mine.
embedded. The effectiveness of the proposed approach is
demonstrated in Figure 5, which shows the Sishen spatial

  mine-to-plan compliance reconciliation results for 2014,
Spatial deviations from the mine plan (positive and negative) 2015, and 2016.
occur when either the quality of the mine plan is not on Figure 5 demonstrates that, using the approach discussed
standard or the execution against the mine plan is not in this paper, the spatial mine-to-plan compliance at Sishen
adequate. In an open pit mine, spatial deviations from the improved from 69% to 94% over the three-year period up to
mine plan typically occur for two main reasons. Firstly, when 2016. This illustrates the benefits of implementing spatial
the assumptions used as input to the development of the mine-to-plan compliance reconciliation and incorporating this
tactical mine plan are not achieved in practice (or are KPI into the TKSF dashboard of an open pit mine.
incorrect). Examples include assumptions on the vertical rate
of advance, loading and hauling equipment productivity, and %'!#)%'
assumptions regarding equipment allocated to critical An approach for measuring and managing the spatial mine-
secondary tasks. Actual mining therefore remains spatially to-plan compliance against the tactical mine plan has been
on plan but takes place at a different rate from the planned presented. The approach incorporates a model providing
rate. This normally manifests as actual in-sequence mining mine-to-plan reconciliation categories as well as a spatial
being higher or lower than planned. If not managed, it could reconciliation process focusing on reporting, target setting,
lead to actual mining activities taking place out of sequence and analysis of the reasons for deviations. The aim of the
and out of plan. Secondly, this occurs when short-term approach is to improve the spatial execution against the
technical or financial objectives are prioritized at the expense tactical mine plan in an open pit mine. Application of the
of the spatial execution of the tactical mine plan. Examples approach will contribute to the achievement of an open pit
include cutting back on waste stripping to improve short-term mine’s operational and financial targets (derived from the
unit cost and targeting an unplanned mining area to reduce tactical mine plan) while maintaining the mine’s ability to
short-term hauling distances. Here, actual mining is not deliver on its future KPIs, thereby contributing towards
spatially honouring the tactical plan. If not managed properly, meeting the ultimate objective of maximizing the NPV
then out-of-sequence and out-of-plan mining takes place and throughout the LOM in a sustainable way.
the areas planned and not mined increase as a result. A case study at the Sishen iron ore mine, South Africa
Adverse outcomes are highlighted as part of the monthly illustrated how the implementation of the spatial mine-to-
reporting routines and should be viewed as opportunities for plan compliance approach contributed positively to improving
the quality of mining plans and to an improved
improvement of either the quality of the next tactical mine
understanding of the major reasons for non-compliance. This
plan or the quality of spatial mining execution against the
led to a significant improvement in the spatial mine-to-plan
plan. The operational or short-term planning horizon is
compliance from 69% to 94% over the three-year period from
utilized to manage improved spatial compliance by directing
2014 to 2016, inclusive.
mining to areas planned and not yet mined.
/!
'%#(
(('"
/ #)!&")%'*)'*&'*% ('* )"*)$%'*%$(*)'( The work reported in this paper is part of a current PhD
The spatial mine-to-plan compliance approach discussed research study in the School of Mining Engineering at the
above was implemented at the Sishen iron ore mine in the University of the Witwatersrand. The permission granted by
Northern Cape Province of South Africa. Sishen is operated the management of Anglo American Kumba Iron Ore to
by Anglo American Kumba Iron Ore. At the end of 2017 the publish the paper is greatly appreciated.
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)$(* &")&#*)'("% #&'*!% #)&'!(* ($%$&'!(*)('*)$%'*%$(*)'(*'&'*

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