Mine Planning

Introduction
• The goal of Mine planning is to integrated
mine systems so that minerals are extracted
and prepared as per market specification with
minimum unit cost within acceptable social,
legal, and regulatory constraints.

• How mine planning is different than other

industry?
Introduction
• The mine planning is a multidisciplinary
activity

• Planning assures the correct selection and

coordinated operation of all subsystems
Introduction
• The planning process consists of three steps,
(1) Baseline assessment,
(2) Reserve determination,
(3) Premine planning
Baseline assessment
• The baseline assessment is a initial review of
all available information on the potential
reserve or mine.
• The available information are:
– geographic
– geologic
– environmental
– technical, and
– economic
Reserve determination
• Mineral deposits can be classified as:
Mineral occurrences or prospects of geological
interest but not necessarily of economic interest
Mineral resources that are potentially valuable,
and for which reasonable prospects exist for
eventual economic extraction.
Mineral reserves or Ore reserves that are valuable
and legally and economically and technically
feasible to extract
Methods of Reserve determination
• Reserve estimation involves taking point data
(samples from drilling or prospecting) and
extrapolating those data to blocks or grids for
calculation purposes.
• Method of Resource Estimation
– Polygonal method
– Triangular method
– Inverse distance method
– Geostatistical methods
Relationship between Mineral
Resources and Ore Reserves
 Resource Reporting
• The estimated deposits are classified and
reported in accordance with one of the
accepted international reporting standards:

JORC (Joint Ore Reserves Committee, Australia)

SAMREC (South African code for Reporting of
Mineral resources)
NI 43/101 (CIM code, Canada)
The Reporting Code (UK and Europe)
SME Guideline (USA)
 JORC CODE

• Volunteer committee of:

– The Australasian Institute of Mining and
Metallurgy
– Minerals Council of Australia
– Australian Institute of Geoscientists
• Representation by invitation from:
Australian Stock Exchange
Securities Institute of Australia
• In continuous existence for over 30 years
 Characteristics of JORC-Style
Reporting Standard
• Minimum standard for public reporting

• Classification system of tonnage/grade

estimates according to:
– geological confidence
– technical/economic considerations
 Characteristics of JORC-Style
Reporting Standard
• Requires public reports to be based on work
undertaken by an appropriately qualified and
experience person

• Provides extensive guidelines on Resource/

Reserve estimation
 Mineral Resource
• Concentration or occurrence of material of intrinsic
economic interest in or on the Earth’s crust in such
form, quality and quantity that there are reasonable
prospects for eventual economic extraction (requires
preliminary judgments as to technical and economic
criteria)
• Location, quantity, grade, geological characteristics
and continuity are known, estimated or interpreted
from specific geological evidence and knowledge
• Sub-divided, in order of increasing geological
confidence, into: (a)Inferred; (b) Indicated; (c)
Measured
 Inferred Mineral Resource
• That part of a Mineral Resource that can only
be estimated with a low level of confidence
• Reasons for low confidence may include:
– Inadequate geological knowledge
– Limited sampling data
– Data of uncertain or poor quality
– Uncertain geological and/or grade continuity
 Indicated Mineral Resource
• That part of a Mineral Resource that can be
estimated with a reasonable level of
confidence
• “Reasonable” in this context means sufficient
to allow the application of technical and
economic parameters, and to enable an
evaluation of economic viability
• Therefore Indicated Resources may be
converted directly to Ore Reserves
 Measured Mineral Resource
• That part of a Mineral Resource that can be
estimated with a high level of confidence
• “High” means sufficient to allow the
application of technical and economic
parameters, and to enable an evaluation of
economic viability that has a greater degree of
certainty
• Therefore Measured Resources may be
converted directly to the highest category of
Ore Reserves
 Criteria for Classifying Mineral Resources
as Measured, Indicated or Inferred

• Confidence in geological and grade continuity

• Quantity and distribution of sampling data
• Quality of sampling data
• Sensitivity of the Resource estimate to
additional data or changes in the geological
interpretation
• Judgment of the Competent Person
 Ore (Mineral) Reserve
• Economical mineable part of a measured and/or
Indicated Mineral Resource
• Appropriately detailed technical/economic studies
have been carried out which take into account
realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and governmental factors
• These assessments demonstrate at the time of
reporting that extraction could reasonably be
justified
• Sub-divided in order of increasing confidence into:
(a) Probable Ore Reserves; (b) Proved Ore Reserves
 Probable Ore Reserve
• The economically mineable part of an
Indicated, and in some circumstances, a
Measured Mineral Resource

• Based on appropriate technical/economic

studies which take into account realistically
assumed Modifying Factors
 Proved Ore Reserve
• The economically mineable part of a
Measured Mineral Resource

• Based on appropriate technical/economic

studies which take into account realistically
assumed Modifying Factors
 Criteria for Classifying Ore Reserves
as Proved or Probable
• Proved Ore Reserves derive only from
Measured Mineral Resources
• Probable Reserves normally derive from
Indicated Mineral Resources
• Probable Ore Reserve may derive from
Measured Mineral Resources if there are
significant uncertainties in any of the
Modifying Factors
• Ore Reserves may not be directly derived from
Inferred Mineral Resources
 Competent/Qualified Person
Concept
• The Competent Person is named in the public
report

• It is the Competent Person’s responsibility to

ensure that the estimates have been performed
properly

• The Competent Person may be either an

employee or a consultant
 Competent/Qualified Person
Concept
• A Competent Person must have at least five years
relevant experience

• A Competent Person must be a member of a

professional society that:
– requires compliance with professional and ethical standards
– has disciplinary powers, including the power to
discipline or expel a member
 Premine planning
• A plan is chosen that will minimize the construction
or development time required to get an operation
into production.
• The mining method selection may be a tradeoff
between capital investment, time from development
to full production, and production costs.
• Most plans start with a feasibility study to provide an
engineering assessment of the potential viability and
minability of the project.
 Premine planning
• To obtain accurate cost forecasts for the complete
project, it is required to develop a life-of-mine plan

• Factors that influences the mine plan

– Regulatory and legal factors
– Geological and geotechnical factors
– Environmental factors
– Technical factors
 Regulatory and Legal Factors
• Adequate consideration must be given to regulatory
affairs

• Activities like exploration drilling, sampling, surveying,

mine construction, operation, and closure, require
proper permits and approvals from various regulatory
agencies.

• A review of the leases is required to determine mineral

and surface rights for any mining venture.
 Geological and geotechnical
Factors
• Geologic and geotechnical factors :
– Identification of ore horizons within a potential minable
zone,
– The quality of individual seams, and
– The material type forming the mining horizon roof and floor

• Areas of potentially adverse geologic conditions, such

as faults, folds , or water inflow must be located

• The knowledge regarding seam/ore hardness and

presence of partings/impurities are important factor
 Environmental Factors
• The impacts on the environment

• Sources include the underground and surface mine

infrastructure, mineral processing plant, access or haul
roads, remote facilities

• The mine plan must include all the technical measures

necessary to handle all the environmental problems

• The plan must consider the effects of mine subsidence,

vibration and impact on surface and groundwater.
 Technical Factors
• Access development to the deposit is considered

• The optimum mine size or production level can be

determined

• Technical factors includes:

– Surface facilities -- Physical factors
– Equipment -- Support system
– Transportation -- Manpower
– Mine power -- Water
– Services -- Ventilation
 Mine Closing and Reclamation
• After the deposit has been completely mined, the
mine area must be cleaned up and returned to
approximately its original condition
Feasibility Study
 Feasibility Study
• An engineering and economic assessment of
the commercial viability of a project

• To assess the various relationships that exist

among the many of factors that directly or
indirectly affect the project

• The objective of a feasibility study is to clarify

the basic factors that govern the chances for
project success.
 Scoping study
• Assess the potential of the new or expanded business
opportunity;
• Describe the general features of the opportunity
• Develop order of magnitude costs of the opportunity
• Identify technical issues needing further investigation,
• Determine the costs and time to complete a
prefeasibility study;
• Identify the resources, personnel and services required
• Provide a comprehensive report
 Pre-feasibility study
• Prefeasibility studies are based on:
– Increasing amounts of data pertaining to geologic
information,
– Preliminary engineering designs and plans for
mining and processing facilities, and
– Initial estimates of project revenues and costs.
 Pre-feasibility study
• Prefeasibility studies contain the following
information and analysis:
– Project Description
– Geology
– Mining
– Processing
– Other operating needs
– Transportation
– Towns and Related Facilities
– Labor Requirements
– Environmental Protection
– Legal Considerations
– Economic Analysis
 Pre-feasibility study
• Assess the likely technical and economic viability of the
opportunity;
• Consider different mining, process, location and project
configuration cases;
• Consider different capacities for the project;
• Outline the features of the recommended project;
• Determine the risk profile of the opportunity;
• Determine the nature and extent of the further geological, mining,
metallurgical, environmental etc. work needed to be undertaken
• Determine the costs and time to prepare a feasibility study
• Identify the resources, personnel and services required to
undertake further work on the opportunity
 Feasibility Study
• Identification of factors
• Quantify the factors
• Potentiality of the project

• Aim of initial study:

– (1) what magnitude of deposit might exist,
– (2) should further expenditures be incurred
– (3) should the project be abandoned, or
– (4) what additional effort and/or expense is necessary
 Feasibility study
• If pre-feasibility study confirms that the
project is viable to continue then feasibility
study can be performed
MINERAL EXPLORATION PROSPECT MINE
EVALUATIONPROJECT CONSTRUCTIONPRODUCTION
Resources Reserves

PROJECT
COMMISSIONING
FEASIBILITY
STUDY

PRE-FEASIBILITY
STUDY

DESK TOP
STUDY

DISCOVERY
Value
 Feasibility study
• Demonstrate the technical and economic viability of a
business opportunity based on the proposed project;
• Develop only one project configuration and investment case
and define the scope, quality, cost and time of the proposed
project;
• Demonstrate that the project scope has been fully optimised
• Establish the risk profile and the uncertainties
• Plan the implementation phase of the proposed project to
Provide a baseline for management, control, monitoring
• Facilitate the procurement of sufficient funds to develop the
project in a timely manner; and
• Provide a comprehensive report with supporting appendices
Cost of study
Project Development Framework
Degree of Definition in study phase
Data required for feasibility study
Data required for feasibility study
Data required for feasibility study
Data required for feasibility study
Data required for feasibility study
Data required for feasibility study
 Components of feasibility study
• An estimate of minable reserves;
• A market study for coal to be produced in the Mining Area;
• An evaluation of the known deposits within the boundaries of
the Mining Area
• A description of the technology process to be used
• An initial mine plan indicating expected recovery rates
• The Environmental Assessment and the Environmental
Management Plan
• A description of requirements associated with obtaining
required permits, including the estimated cost
• A description and plans of the area of the Project facilities
 Components of feasibility study
• An organization chart and requirements for personnel;
• Schedules to initiate construction and construction
timetables;
• Estimates, accurate to within fifteen percent (15%), of capital
costs and operation costs;
• An economic evaluation;
• A financial analysis, with financial viability of the exploitation
• A description and generalized plans for all infrastructure
• A description of plans for potential reprocessing of materials
• A description of plans for the development of the deposits;
• Plans for electricity supply for Mining Operations
• The estimated Date of Commencement of Production.