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Curso de Planificacin Minera Estratgica

Cielo Abierto
Profesor:
Kadri Dagdelen Ph.D
Profesor
Mining engineering Department
Colorado School of Mines
Organizado por:
LQS Latin America
Periodo:
6 - 10 de Noviembre 2006
Lugar:
Hotel Plaza El Bosque, Suites, Santiago, Chile
Ie|: 562-657-3898 |as: 562-657-3897
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Curso de Planiicacin Minera Lstratgica

Dr. Kadri DagdeIen



Kadri Dagdelen es profesor del Departamento de Minas
en la Universidad de Colorado School of Mines. El Dr.
Dagdelen posee los grados de BSc., MSc. y PhD. en
ngeniera de Minas de Colorado School of Mines y un
ME en Geoestadstica de L'ecole des Mines de Paris. El
ha presentado varias veces el curso "Planificacin Mine-
ra Estratgica alrededor del mundo. El Dr. Dagdelen
tiene experiencia en la industria minera destacndose
en el diseo de minas a cielo abierto y la evaluacin de
proyectos de exploracin y adquisicin. Anteriormente a
su incorporacin a Colorado School of Mines formo parte de Homestake Mining
Corporation. El ha trabajado con equipos de ingenieros de minas a cielo abierto y
subterrnea en la planificacin de largo y corto plazo, estimacin de reservas y
control de leyes, adems ha publicado diversos artculos en revistas como "Mining
Engineer,E&MJ, "SME Transaccions y "Geostatistics.

El Dr. Dagdelen es profesor del departamento de minas de la Universidad Colora-
do School of Mines desde 1992 para alumnos de pregrado y postgrado as tambin
efectuando actividades de investigacin en el rea de Geoestadstica e investiga-
cin Operativa basada en la Optimizacin de Proyectos. Sus investigaciones inclu-
yen Caracterizaciones geoestadsticas, diseo de limite final en minera cielo abier-
to, optimizacin de leyes de corte para mltiples tipos de mineral y procesos, opti-
mizacin de planes mineros y dilucin en pit a travs del uso de simulacin condi-
cional. Forma parte del directorio de la "Society for Mining, Metallurgy and Explora-
tion (SME) y del Consejo nternacional APCOM.


Descripcin deI Curso
PIanificacin Minera Estratgica de Minera CieIo Abierto y Opti-
mizacin de Leyes de Corte

El curso esta orientado para gerentes, ingenieros, gelogos y cualquier persona
involucrada en el proceso de planificacin minera de cielo abierto. El curso relacio-
na todos los procesos mineros comenzando con el modelamiento de depsitos
utilizando la geoestadstica, diseo de pit final, diseo de fases, plan minero, leyes
de corte, seleccin de equipos y evaluaciones econmicas. El curso considera 5
das para cubrir todos los tpicos.
610 No.|emhre, 2006
LOWLR QUAR1ILL
SOLU1IONS
&
COLORADO
SCHOOL
OI
MINLS

PRLSLN1AN:

CURSO DL
PLANIIICACION
MINLRA
LS1RA1LGICA
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STRATEGIC OPEN PIT MINE PLANNING
COURSE OUTLINE


Day 1
Introduction to Mining Practices- Case Studies
Open Pit Mining Terminology
Pit Geometry and Slope Angles
Open Pit Mine Planning Concepts - Circular Analysis
Geologic Block Modeling Techniques
Assay and Composite Sections and Block Modeling
Geostatistical Resource Estimation Techniques

Day 2
Economic Definition of Ore
Break-even Cutoff Grades and Stripping Ratio Analysis
Economic Block Modeling, Cone and L&G Mining Analysis
Final Pit Limits, Nested Pits and Mining Sequence Determination
Cutoff Grade Policy, Scheduling and Stockpile Management
Mine Sequence, Cutoff Grade, Process Flow Determination

Day 3
UNIT OPERATIONS AND EQUIPMENT SELECTION
Drilling Fundamentals and Drill Selection
Blasting Fundamentals
Front End Loaders; Hydraulic Shovels and Cable Shovels
Excavator Selection Considerations
Equipment Cost Calculations
Cat Handbook
Truck Haulage and Cycle Times
Fleet Size Determination

Day 4
Dispatch Systems
In Pit Crushing and Conveying Systems
Mineral Processing

Day 5
Mining Project Cash Flow Analysis
Net Present Value Calculations
Mine Sequence, Cutoff grade and Process Flow NPV optimization









Profesor:



GOLDEN, COLORADO 80401 1887

Kadri Dagdelen, Ph. D.
Profesor
Mining Engineering Department

Telfono: 1-303- 273 3711
Fax: 1-303- 273 3719
kdagdele@mines.edu





Organiza:

LQS Latin America

Avenida Luis Thayer Ojeda 0130, Oficina 304
Telfono: 56-2-232 4406
Fax: 56-2-232 0589
Providencia,
Chile

John Paul Hudson
jhudson@lqsla.com
Gerente General


Juan Pablo Moriamez
jpmoriamez@lqsla.com
Gerente Tcnico

COLORADO SCHOOL OF MINES
Bingham Canyon Mine
Porphyry Copper
Case Study
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General Information
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General Information
Worlds first low grade copper mine.
5 billion tons of material and 13 million tons of
copper produced since 1906.
Overall stripping ratio is 0.4:1.
Mine daily production is 111 Kton of ore and 99.2
Kton of waste. (40 and 36 Mton/year respectively).
Reserves are at 1.0 Btons @ 0.5% Cu per ton which
results in 25 years mine life.
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General Information
210 Kton of copper; 350 oz of gold; 2.5 MM oz of
silverand 6350 ton of moly per year.
2.5 miles long; 0.5 miles deep.
Truck haulage haul road 150 ft wide; also 3
tunnels for ore and waste haulage.
Mine operates three 8-hour shifts per day, 365 days
per year.
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General Information
Layout
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General Information
Geology
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General Information
Block model dimensions 100 x 100 x 50 ft. Each
block is assigned a value of Cu, Au, Ag, and Mo
using a geostatistical technique known as kriging.
Development drilling on 400 by 600 ft centers.
Density 2.58 t/m
3
or equivalent tonnage factor of
12.38 ft
3
/ton.
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Mine Plan
Pushbacks range from 100 ft to 200 ft in width and
50 ft in height.
Five ore shovel production faces to meet average
grade and metallurgical blending requirements.
Five waste shovel production faces to meet long
range stripping requirements.
Operating interramp pit slope, including bench face
angles and catch benches, is 34
o
; catch benches are
50 ft wide.
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Mine Plan
Typical Mining Sequence
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Mine Plan
Ore is being mined in lower 900 ft of the pit and
highest active waste stripping occurs 2000 ft higher
elevation.
In extreme cases, mining room must be brought
down nearly 40 benches before new ore is exposed;
this process can take as long as seven years.
Slope angles for the ultimate pit limits are defined
by subdividing the pit surface in 26 sectors.
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Mine Plan
Slope angles for each of these sectors range from
29 to 50 degrees.
Slope angles will be achieved by double benching
or single benching and control blasting digging to
hard.
Slope dewatering using near horizontal drains
improves slope angles by 3 to 5 degrees in the
ultimate slope.
Mining plans are developed by defining the volume
of ore and waste between series of pushbacks.
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Mine Plan
The material in pushbacks sequentially mined by a
computerized mining simulator algorithm. Highest
relative profit margin ore is mined first.
Haulage roads are added to the incremental pits.
Mine plan is a series of annual plans for five-year
followed by five year plans to the end of mine life.
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Drilling
Drills operate 5 days per week and two 8-hour
shifts per day.
8 Bucyrus-Erie 60R track-mounted electric drills.
They can drill 57 to 65 ft in a single pass by
exerting 120 Klb thrust.
Rotary tricone bits with carbide inserts are used to
drill 12.25 in diameter holes.
One drill can drill 12 holes per 8-hour shift.
Two drilltech D75K track-mounted units; carbide
insert bits 9.875 in diameter 4 35-ft drill rods.
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Drilling
D75K drills are used in resilient (hard) formations
where closer patterns are necessary for proper
fragmentation.
One secondary drill uses 2.5-in and 12-ft drill rods
to drill boulders. Also mine has rubber-tired rock
breaker.
Drill patterns vary with the rock types but range
from 30 x 30 ft to 36 x 36 ft for 12.25-in holes. 25 x
25 ft to 30 x 30 ft for 9.875-in holes.
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Blasting
Two ANFO trucks blending of ammonium nitrate
prills and fuel oil occurs when bulk delivery trucks
deliver these material to the mine-site storage tanks.
Commercial bulk emulsion-blend explosives are
used in wet holes.
Holes are primed with two 0.75-lb boosters placed
near the bottom of the explosive column.
A 200-ms delay is inserted into each booster and
connected to individual 7.5-grain primaline down-
lines.
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Blasting
25 grain detonating cord is used for trunk lines and
cross ties.
Surface delays of 17 ms are used between holes and
100 ms between rows.
A single strand of detonating cord extended from
the pattern and initiated by a non-electric cap taped
to the cord.
Drill cuttings are used for stemming. Each hole
produces 2.4 to 3.7 tons of cuttings. These cuttings
are forced into loaded holes.
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Blasting
Powder factor varies between 0.13 to 0.25 lbs of
explosive per ton depending on rock type; average
0.16 lb per ton.
Ground motion due to blasting is limited to 25
in/sec at the planned final pit slopes.
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Loading
2 15-yd
3
P&H2100; availability averages 78%; 10
Ktons per shovel shift.
4 27-yd
3
P&H2800 Mark II; availability averages
80%; 15 Ktons per shovel shift.
3 30-yd
3
P&H 2800 XP; availability averages
80%; 15 Ktons per shovel shift.
2 34-yd
3
P&H 2800 XPA; availability averages
80%; 20 Ktons per shovel shift.
2 8-yd
3
International; 1 12-yd
3
Clark; 2 12-yd
3
Caterpillar rubber tired FELs.
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Loading
Power is provided by 44-kva substations; radial
lines are then fed to smaller substations with voltage
reduced to 5500 V ac.
Electric connections between the switch houses and
shovels are made through trailing cables up 2000 ft
for shovels and 3000 ft for the drills.
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Haulage
Mainly trucks and some rail.
Truck haulage utilizes a fleet of 44 trucks
composed of 28 190-ton CAT-785 mechanical
drive; 8 170-ton Unit Rig diesel electric; 8 170-ton
Wabco diesel electric trucks.
In 1990 34 truck-shifts/shift are scheduled with
average availability of 94% for the new, larger
trucks; 84% for the smaller, older trucks.
All trucks are equipped with two-way radios to
assist appropriate dispatching.
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In-Pit Crusher
Movable, 60- by 109-in, 1000-hp Allis Chalmers
gyratory crusher that has a capacity of 120,000 tons
per day on continuous basis.
Two trucks at a time at a dumping rate of one truck
per minute.
3 to 4 weeks are required to move the crusher.
-10 in crushed rock is fed directly to a 72-in
conveyor.
The belt is 5 mile ling to Copperton concentrator
and capable of carrying 10,000 tph at 900 ft/min
speed.
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Road Maintenance
28 miles of haulage roads and 40 miles of service
roads.
20 dozers (CAT D9H, D9L, D10L).
11 graders (CAT 16G).
2 scrappers (CAT 631).
4 salt trucks (5.4 or 6 ton capacity).
6 water trucks (converted 65-ton or 59-ton haulage
trucks; 10,000 to 30,000 gallons capacity).
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Open Pit Mining Fundamentals
Dr. Kadri Dagdelen
Colorado School of Mines
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Terminology
BENCH: Ledge that forms a single level of
operation above which mineral or waste materials
are mined from the bench face.
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Terminology (Cont.)
BENCH HEIGHT: Vertical distance between the
highest point on the bench (crest) and the lowest
point or the bench (toe). It is influenced by size of
the equipment, mining selectivity, government
regulations and safety.
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Terminology (Cont.)
BENCH SLOPE OR BANK ANGLE : Horizontal
angle of the line connecting bench toe to the bench
crest.
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Terminology (Cont.)
BERM: Horizontal shelf or ledge within the
ultimate pit wall slope left to enhance the stability
of the a slope within the pit and improve the safety.
Berm interval, berm width and berm slope angle are
determined by the geotechnical investigation.
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Terminology (Cont.)
OVERALL PIT SLOPE ANGLE: The angle measured from
the bottom bench toe to the top bench crest. It is the angle at
which the wall of an open pit stands and it is determined by:
rock strength, geologic structures and water conditions.
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Terminology (Cont.)
The overall pit slope angle is affected by the width
and grade of the haul road.
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Terminology (Cont.)
HAUL ROADS: During the life of the pit a haul
road must be maintained for access.
HAUL ROAD - SPIRAL SYSTEM: Haul road is
arranged spirally along the perimeter walls of the
pit.
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Terminology (Cont.)
HAUL ROAD SWITCH BACK SYSTEM:
Zigzag pattern on one side of the pit.
HAUL ROAD WIDTH: Function of capacity of the
road and the size of the equipment. Haul road width
must be considered in the overall pit design.
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Haul Road Effect on Pit Limits
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Terminology (Cont.)
ANGLE OF REPOSE: Maximum slope of the
broken material.
SUBCROP OR ORE DEPTH: Depth of waste
removed to reach initial ore.
PRE-PRODUCTION STRIPPING: Stripping done
to reach initial ore.
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Terminology (Cont.)
ULTIMATE PIT LIMITS: Vertical and lateral
extend of the economically mineable pit boundary.
Determined on the basis of cost of removing
overburden or waste material vs. the mineable value
of the ore.
PIT SCHEDULING: Material may be mined from
the pit either in 1) sequential pushbacks 2)
conventional pushbacks.
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Terminology (Cont.)
STRIPPING RATIO: Expressed in tons of waste to tons of
ore in hard rock open pit operations. Critical and important
parameter in pit design and scheduling
AVERAGE STRIP RATIO: Total waste divided by total ore
within the ultimate pit.
CUTOFF STRIPPING RATIO: Costs of mining a ton of ore
and associated waste equals to net revenue from the ton of
ore.
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Single Working Bench
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Shovel in Working Bench
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Two Working Benches
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Final Pit Limit
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Cresson Mine Year 2001
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Cresson Mine Year 2007
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Cresson Mine Year 2011
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Pit Sequence (1)
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Pit Sequence (2)
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Pit Sequence (3)
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Pit Sequence (4)
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Section of Pit Sequence
Dr. Kadri Dagdelen
Colorado School of Mines
Source: Hustrulid and Kuchta
Open Pit Mine Planning and Design
Open Pit Mine Planning and
Design: Fundamentals
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2
Geometrical Considerations
Parts of a bench
Cumulative frequency
distribution of measured
bench face angles (Call, 1986).
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Geometrical Considerations
Section through a working bench.
Functioning of catch benches.
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Geometrical Considerations
Double benches at final pit limits. Catch bench geometry (Call, 1986).
Typical catch bench design dimensions (Call, 1986).
Bench height Impact zone Berm height Berm width Minimum bench width
(m) (m) (m) (m) (m)
15 3.5 1.5 4 7.5
30 4.5 2 5.5 10
45 5 3 8 13
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5
Geometrical Considerations
Safety berms at bench edge
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Geometrical Considerations
Height of reach as a function of bucket size.
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Geometrical Considerations
Example orebody geometry.
Ramp access for the example orebody.
Blast design for the ramp excavation.
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Shovel Working Range
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Geometrical Considerations
Minimum width drop cut
geometry with shovel
alternating from side to side.
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Geometrical Considerations
Minimum width drop cut
geometry with shovel
alternating from side to side.
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Geometrical Considerations
Isometric view of the ramp in waste approaching the orebody.
Diagrammatic representation of the expanding mining front.
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Geometrical Considerations
Dropcut / ramp placement in ore. Expansion of the mining front.
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Geometrical Considerations
Plan view of an actual pit bottom
Showing drop cut and mining
Expansion (McWilliams, 1959).
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Geometrical Considerations
Extension of the current
Ramp close to the pit wall
(McWilliams, 1959).
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Geometrical Considerations
Creating initial access / benches.
Shovel cut sequence when initiating
benching in a hilly terrain (Nichols, 1956).
Sidehill cut with a shovel.
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Geometrical Considerations
Detailed steps in the development of a new production level.
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Geometrical Considerations
Parallel cut with drive by.
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Geometrical Considerations
Parallel cut with the double spotting of trucks.
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Geometrical Considerations
Parallel cut with the single spotting of trucks.
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Geometrical Considerations
Time sequence showing shovel
loading with single spotting.
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Geometrical Considerations
(Continued).
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Geometrical Considerations
Time sequence showing shovel
loading with double spotting.
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Geometrical Considerations
(Continued).
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Geometrical Considerations
(Continued).
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Geometrical Considerations
Section and plan views through a working bench.
Simplified presentation of a safety berm.
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Geometrical Considerations
Initial geometry for the push back example.
Cut mining from bench 1.
Cut mining from bench 2.
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Geometrical Considerations
Overall slope angle.
Safety bench geometry
showing bench face angle.
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Geometrical Considerations
Overall slope angle with ramp included.
Interramp slope angles.
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Geometrical Considerations
Overall slope angle with
Working bench included.
Interramp angles associated with
the working bench.
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Geometrical Considerations
Overall slope angle with
one working bench an a ramp section.
Interramp slope angles for a slope containing
a working bench and a ramp.
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Geometrical Considerations
Overall slope angle for a slope containing two working benches.
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Geometrical Considerations
Slopes for each working group.
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Geometrical Considerations
Final overall pit slope.
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Advances in Pit Slope Management Systems Advances in Pit Slope Management Systems
Dr. Kadri Dagdelen
Professor
Mining Engineering Department
Colorado School of Mines
Golden, Colorado 80401
Pit Slope Failure Problems
Pit Slope Failure Problems
l Continue to be the source of human and financial
losses
l Recent examples from Wyoming coal mines and
Grasberg pit in Indonesia point to additional
research needs to be done in the area of pit slope
management
l Pit slope monitoring research is undertaken at the
Colorado School of Mines using Lidar Scanners
with funding from Kennocott Energy and 3-DP
Plane Failure
Plane Failure
l Failure plane must daylight
in the slope face; i.e. its dip
must be smaller than slope
(S>P)
l Plane must strike parallel or
nearly parallel (within 20
o
) to
the slope face.
l Less common than other
failure modes
Plane Failure in a Limestone
Plane Failure in a Limestone
Quarry
Quarry
Wedge Failure
Wedge Failure
DAYLIGHTING WEDGE
NON-DAYLIGHTING
WEDGE
Most common mode of
failure for rock slopes
Line of intersection
must daylight into
slope face
Often, failure is sudden
Circular Failure
Circular Failure
l Soils
l Stock piles
l Reclamation piles
l Waste dumps
l Highly weathered overburden rocks
Toppling and Step
Toppling and Step
-
-
Path
Path
Modes
Modes
Toppling Mixed modes
(e.g. Toppling & Step-Path)
Overall Slope Design
Overall Slope Design
l Identify geological sectors; their strength
characteristics and possible mode of failures
l Determine maximum height and angle for inter-
ramp design
l Determine bench geometry
l Incorporate bench geometry into Inter-ramp
design
l Overall slope design
Failure Modes in Different
Failure Modes in Different
Sectors
Sectors
Pit Slope Monitoring
Pit Slope Monitoring
-
-
What to look for
What to look for
l Overhang rock
l New geological structures
l Swell and/or increased rock fall activity on highwall
l Heavy precipitation
l Signs of stress
l Tension cracks
l Movement (acceleration)
l Increased water levels
Tension Crack Measurements
Tension Crack Measurements
l The formation of cracks behind slope is a sign of instability
(Safety Factor 1)
l Monitoring changes in crack width and direction can provide
information on extent of unstable area
Inclinometers
Inclinometers
l Inclinometers measure horizontal
deflections of a borehole
l They can
- Locate failure surface
- Determine nature of failure surface
(rotational or planar)
- Measure movement along failure
surface and determine if
movement is accelerating
Borehole extensometer
Borehole extensometer
l Consists of tensioned rods
anchored at different points in a
borehole.
l Measures changes in distance
between anchors, as well as collar
l Provides displacement
information across discontinuities.
New and Emerging Technologies
New and Emerging Technologies
l Automated Total Station Network (robots)
l Non-reflective Laser scanners (Lidar systems:
Cyra, Riegl, I-Site)
l Radar Technologies
l GPS (Local sensors with multiple antenna)
l TDR (Time Domain Reflectometry)
l Digital photogrammetry
l Arial photography (Kodak)
Automated Total Station Network in
Automated Total Station Network in
Chuquicamata Mine, Chile
Chuquicamata Mine, Chile
A network of automated total stations for geotechnical monitoring
of pit slopes that operate continuously 24 hours a day, 7 days a
week and during the 365 days a year.
Provide a reliable and quantitative information in real time that
allows to establish with anticipation the behavior of the rock mass
and geologic structures on the pit slopes.
Completely Automated Electronic
Completely Automated Electronic
Station Network using
Station Network using
Leica
Leica
TCA2003
TCA2003
Motorized Station, Leica TCA2003
Characteristics
Reach with 1/3 prisms in average
atmospheric conditions : 2500/3500 mts.
Precision in distance : 1mm + 1 ppm
Angular precision : 0.3 (0.1 mgon)
Increase of lens : 30 x
Compartment for the insertedable
memory card PCMCIA.
Integrated application programs :
Reframing, orientation of horizontal circle
and drag of levels, reseccion and
distance of connection between two
points.
Capture of information in modality ATR
and DIST.
Wireless Wireless Communication Communication Network Network
Bridge
Bluebox
Switch
Energy
SHELTER 1
SHELTER 2
SHELTER 6
SHELTER 5
ARTURO OESTE
SHELTER 3
SHELTER 4
ARTURO ESTE
CONTROL ROOM
ETHERNET NETWORK
SHELTER 1
SHELTER 2
SHELTER 6
SHELTER 5
ARTURO OESTE
SHELTER 3
SHELTER 4
ARTURO ESTE
CONTROL ROOM CONTROL ROOM
Location Location of Stations of Stations and and Integration Integration of of
Information Information
Software of Information Integration
Have a Computational Software that allows to totally integrate
and administer the acquisition of geotechnical data, procesing
and analisis of the information in real time originating from the
robotic system (TCA) intalled in each of the monitoring
stations.
Total Station and Prism Locations in
Total Station and Prism Locations in
Chuquicamata Mine, Chile
Chuquicamata Mine, Chile
Caseta
Este
Caseta
Oeste
GPS Surveyed Control Stations in
GPS Surveyed Control Stations in
Chuquicamata Mine, Chile
Chuquicamata Mine, Chile
Coordenadas de la
Estacin de Monitoreo
APS(N;E;Z)
ZONA-5
ZONA-6
ZONA-7
D1
D2
D3
D4
D (PR-1)
E1 (PR-2) Matus (PR-3)
GT-1 PR-4
Morgan (PR-5)
S4
S3
S5
S2
S1
D5
.
PILAR GT-1
APS-WEST.
Norte : 2085.491
Este : 3870.863 Elev
Cota : 2846.745
Slope Stability Radar Technology
Slope Stability Radar Technology
from
from
GroundProbe
GroundProbe
of Australia
of Australia
Complete Pit Wall Coverage from
Complete Pit Wall Coverage from
Remote Locations
Remote Locations
Radar Scan Lines
Location and Time of Wall
Location and Time of Wall
Movements
Movements
18:13 8
th
October 2003
20:47 8
th
October 2003
23:22 8
th
October 2003
02:04 9
th
October 2003
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Slip Area
Slope Stability Radar Features
Slope Stability Radar Features
High deformation precision ( 0.2 mm std. dev.)
Broad area coverage (~1000s pixels/scan)
Continuous operation (~ 1s min/scan, 24 hrs/day)
30-850m range
All weather operation (incl. dust, fog)
Rapid Deployment
Remote Operation via radio link and internet
High resolution CCD Camera
Custom software with alarm settings
SSRViewer
SSRViewer
Images Screen
Images Screen
SSRViewer
SSRViewer
Figures Screen
Figures Screen
10mm movement over 45
hours in Region 1
0.0mm movement over 45 hours
in Region 2
15mm movement over 45
hours in Region 3
Laser Scanning Technologies
Laser Scanning Technologies
There are Many 3D Laser Scanners There are Many 3D Laser Scanners
Major Companies with Products are: Major Companies with Products are:
l l Cyrax Cyrax ( (Leica Leica) ) www.cyra.com www.cyra.com(USA) (USA)
l l Optech Optech ILRIS (Canada) ILRIS (Canada)
l l I I- -site ( site (Maptek Maptek) ) www.isite3d.com www.isite3d.com(Australia) (Australia)
l l LMS 3D Scanning systems (Riegl) LMS 3D Scanning systems (Riegl) www.riegl.co.at www.riegl.co.at
(Austria) (Austria)
l l Z+F Laser Measuring Systems ( Z+F Laser Measuring Systems (Zoller Zoller+ + Frhlich Frhlich) )
www.zofre.de www.zofre.de (Germany) (Germany)
Cyrax Cyrax 2400 2400
Other Application in Laser Technologies Other Application in Laser Technologies
Riegl Z 210i Lidar Laser Scanner Riegl Z 210i Lidar Laser Scanner
1200+ ft scan range
2.5cm accuracy @ 900 ft
5 cm accuracy > 900 ft
361 degrees x 80 degree scan
9000 Hz
Specifications Specifications
Riegl LPM 800 HA
Riegl LPM 800 HA
3000 ft scan range
1cm accuracy @ 1250 ft
2 cm accuracy > 1250 ft
0.018 degrees step size
360 degrees of horizontal
rotation
180 degrees of vertical rotation
1000 Hz
Specifications Specifications
Riegl Z 420 Lidar Laser Scanner
Riegl Z 420 Lidar Laser Scanner
2400+ ft scan range
1cm accuracy in topo mode
6 mm accuracy in detail mode
0.01 degree step size
361 degrees x 90 degree scan
window
8000 - 12000 Hz
Specifications Specifications
High Wall Scan (Pre Blasting)
High Wall Scan (Pre Blasting)
Post
Post
-
-
Blast Scan
Blast Scan
Pre Blast Triangles
Pre Blast Triangles
Post Blast Triangles
Post Blast Triangles
Combined
Combined

Pre / Post
Pre / Post
Dynamic Cross Section
Dynamic Cross Section
Complete Pit Scan using
Complete Pit Scan using
Riegl
Riegl
Pit Wall Scan Using
Pit Wall Scan Using
Riegl
Riegl
Pit Wall Failure Scan
Pit Wall Failure Scan
-
-
Riegle
Riegle
No Moderate < 150 m ~ hours Broad
Area
~ 1s cm Photogram
-metry
Yes Difficult n/a ~ secs Discrete
Points
~ 1s cm GPS
Extenso-
meters
LIDAR
SCANNER
Laser
(Prisms)
SSR
GROUND
PROBE
Technology
Yes Easy 850 m
(1.4km)
~ mins Broad
Area
0.2 mm
No Difficult 2 km Twice
Daily
Discrete
Points
~ 1s cm
No Easy 900 m ~ secs Broad
Area
~ 1s cm
Difficult
Deployment
Yes n/a ~ secs Discrete
Points
~ 1s mm
All
weather
Range Update
Rate
Wall
Coverage
Precision
Slope Monitoring Systems
Slide Management Options
Slide Management Options
l Reduce slope angle
l Dewater unstable area
l Leave unstable areas
l Continue mining
l Unload slide
l Partial clean up
l Step-out
l Reduce slope height by
segmenting the slope
l Support unstable ground
l Contingency Planning
l Blasting
l Erosion control measures
(reclamation)
- Geotextiles against erosion
and raveling
- Vegetating and planting
Instability can be left
alone if it is in
an abandoned area,
an inactive area,
an area that can be
avoided
Leave Unstable Areas untouched
Leave Unstable Areas untouched
Continue mining
Continue mining
If the displacement rate is low and predictable,
living with the displacement while continuing to
mine may be the best action.
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Time
1/4/02 5/4/02 11/4/02 16/4/02
50
100
150
May continue mining
(displacement rate is constant)
Basic Principles of Drainage
Basic Principles of Drainage
l Prevent surface water from entering to the slope through
open tension cracks and fissures
l Reduce water pressure in the vicinity of the potential
failure surface
l Providing for gravity flow of water is the most common
method
l Pumping is used on a temporary basis depending on the
urgency of the problem
Bench section view
Inclined bench for gravity flow
Slope crest
Bench face view
Benches sloped
toward toe
Method of Slope Drainage
Method of Slope Drainage
P
O
S
T
FLOWER PATCH
E
X
P
L
O
D
IN
G
B
L
IN
D
R
O
D
E
O
C
R
E
E
K
1
R
O
D
E
O
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K
G
R
A
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J
E
A
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A
M
A
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A
A
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IP
O
S
T
C
H
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I
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T
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S
D
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M
A
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J
B
A
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F
O
P
A
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S
M
ID
N
IG
H
T
60
60
60
50
85
80
60
55
50
25
60
60
75
N-00-B
E
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LAST LAUGH
78
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IN
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1
P
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E
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F
U
L
Horizontal Drain Network
Horizontal Drain Network
(303 drains/34 miles since 1999)
(303 drains/34 miles since 1999)
Unload Side
Unload Side
l Even though unloading has been a common
response, in general it has been
unsuccessful.
l In fact, there are situations involving high
water pressure where unloading actually
decreases stability.
Partial clean
Partial clean
-
-
up
up
Partial cleanup may be the best choice where
a slide blocks a haul road or fails onto a
working area
Only that material necessary to get back into
operation need be cleaned up
New (Flatter) Overall Slope Angle
Old Overall Slope Angle
Originally Planned Slope Design
New Slope Design
Failure Surface
Step out
Step
Step
-
-
out
out
l Increased highwall stability due
to shallower slope angle It locks
up reserves
l Advantages of leaving step out
should be weighed against
cleaning by considering ore
lock up and having safer overall
slope
Reduce slope height by
Reduce slope height by
segmenting slope
segmenting slope
Support unstable ground
Support unstable ground
Buttress
Rock Bolts
Anchors, Tiebacks, and
Anchors, Tiebacks, and
Shotcrete
Shotcrete
1. Reinforced concrete dowel to
prevent loosening of slab at
crest
2. Tensioned rock anchors to
secure sliding failure along crest
3. Tieback wall to prevent sliding
failure on fault zone
4. Shotcrete to prevent raveling of
zone of fractured rock
5. Drain hole to reduce water
pressure within slope
6. Concrete buttress to support
rock above cavity
Mesh & Bolts
Mesh & Bolts
Buttressing
Buttressing
Buttressing
Buttressing
NE Wall Sept 2002
NE Wall Sept 2002
2% ramp & buttress
mudslide
4880 buttress
unwting cut
N-00-B
4640
4280
NE Wall Un
NE Wall Un
-
-
weighting Cut
weighting Cut
Prism Data Feb 2002 to Feb 2003 Prism Data Feb 2002 to Feb 2003
PRISM DATA - All In Movement Area
-2.00
-1.80
-1.60
-1.40
-1.20
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
2
/
1
/
0
2
2
/
1
5
/
0
2
3
/
1
/
0
2
3
/
1
5
/
0
2
3
/
2
9
/
0
2
4
/
1
2
/
0
2
4
/
2
6
/
0
2
5
/
1
0
/
0
2
5
/
2
4
/
0
2
6
/
7
/
0
2
6
/
2
1
/
0
2
7
/
5
/
0
2
7
/
1
9
/
0
2
8
/
2
/
0
2
8
/
1
6
/
0
2
8
/
3
0
/
0
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9
/
1
3
/
0
2
9
/
2
7
/
0
2
1
0
/
1
1
/
0
2
1
0
/
2
5
/
0
2
1
1
/
8
/
0
2
1
1
/
2
2
/
0
2
1
2
/
6
/
0
2
1
2
/
2
0
/
0
2
1
/
3
/
0
3
1
/
1
7
/
0
3
1
/
3
1
/
0
3
2
/
1
4
/
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/
2
8
/
0
3
DATE
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TN000084
TN000089
TN010095
TN010119
TN 80
TN 72
TN 97
TN 98
TN 101
TN 114
TN 115
TN 127
TN 144
TN 149
#3
#4
Blasting
Blasting
Use of less
charges
next to toe
Line
drill
holes
Production
holes
Face
Pre-splitting Line drilling
SAFETY
BERM
Cat c h
Ber m, 40
m.
H13
BENCH
D5
BENCH
PUSHBACK
> 10 cm/day Stop push-back development
5 a 10 cm/day Only ore production stripping
2 a 5 cm/day Normal
Displacement rate PUSHBACK DEVELOPMENT
Slide Management Example
Slide Management Example
y = 63.213x - 2E+06
y = 16.016x - 597363
y=8.7432x- 326060
y = 5.6082x - 209126
0
50
100
150
200
250
300
1/2/02 6/2/02 11/2/02 16/2/02 21/2/02
TIEMPO
D
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A
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N
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O
(c
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)
Took out
shovel
Access D5
& H13 closed
Failure
Contingency Planning
Contingency Planning
l Provide multiple access to production faces
l Maintain double access to working benches,
whenever possible
l Stockpile ore/rock
l Design to prevent noses in the plan geometry
l Provide for failure costs in scheduling and budgeting
l Add lag times in production scheduling
l Plan step-outs
Conclusions
Conclusions
l New Radar and Lidar based technologies applied
to pit slope monitoring appears to be very
promising in providing cost effective and accurate
real time data .
l Accurate and reliable slope displacement
information coupled with proper pit slope
management practices has a potential to prevent
unexpected catastrophic pit slope failures.
Haul Road Design
Dr. Kadri Dagdelen
Colorado School of Mines
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Haul Road Design
HAUL ROADS: During the life of the pit a haul
road must be maintained for access.
HAUL ROAD - SPIRAL SYSTEM: Haul road is
arranged spirally along the perimeter walls of the
pit.
3
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Haul Road Design
HAUL ROAD SWITCH BACK SYSTEM:
Zigzag pattern on one side of the pit.
HAUL ROAD WIDTH: Function of capacity of the
road and the size of the equipment. Haul road width
must be considered in the overall pit design.
4
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Haul Road Effect on Pit Limits
5
Considerations for Haul Road
Design
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Visibility
Stopping distances
Vertical alignment
Horizontal alignment
Cross section
Runaway-vehicle safety
provisions
6
Sight Distances and Stopping
Distances
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Vertical and horizontal curves designed
considering sight distance and stopping
distance
Sight distance is the extent of peripheral area
visible to the vehicle operator
Sight distance must be sufficient to enable
vehicle traveling at a given speed to stop
before reaching a hazard
7
Sight Distances and Stopping
Distances
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On vertical curves, road surface limits sight
distance
Unsafe conditions remedied by lengthening curve
On horizontal curves, sight distance limited by
adjacent berm dike, rock cuts, trees, etc;
Unsafe conditions remedied by laying back bank or
removing obstacles
8
Sight Distance Diagrams
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Sight distance diagrams for horizontal and vertical curves
(Kaufman and Ault)
9
Stopping Distances
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Stopping distances depend on truck breaking
capabilities, road slope and vehicle velocity
Stopping distance curves can be derived
based on SAE service break maximum
stopping distances
10
Stopping Distance
Characteristics
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For example,
stopping
distance
characteristics
of vehicles of
200,000 to
400,000 pounds
GVW
(Kaufman and Ault)
11
Stopping Distances
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Prior to final road layout, manufacturers of
vehicles that will use the road should be
contacted to verify the service brake
performance capabilities
12
Vertical Alignment
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Establishment of grades and vertical curves that
allow adequate stopping distances on all segments
of the haul road
Maximum sustained grades
Reduction in grade significantly increases vehicle uphill speed
Reduction in grade decreases cycle time, fuel consumption, stress
on mechanical components and operating costs
Reduction in grade increases safe descent speeds, increasing
cycle time
The benefits of low grades offset by construction costs associated
with low grades
13
Vehicle Performance Chart
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Vehicle Retarder Chart
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Vertical Alignment
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Maximum sustained grades
Some states limit maximum grades to 15 to 20% and
sustained grades of 10%
Most authorities suggest 10% as the maximum safe
sustained grade limitation
Manufacturer studies show 8% grades result in the
lowest cycle time exclusive of construction
consideration
16
Vertical Alignment
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Maximum sustained grades
Property boundaries, geology, topography, climate
must be considered on a case by case basis.
Lower operating costs must be balanced against higher
capital costs of low grades.
Truck simulators and mine planning studies over the
life of mine should be used to make the determination
of the appropriate grades
17
Vertical Curves
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Vertical curves smooth transitions from one
grade to another
Minimum vertical curve lengths are based on
eye height, object height, and algebraic
difference in grade
18
Stopping Distance vs. Vertical
Curve
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For example,
vertical curve
controls 9 ft eye
height (usually
minimum height
for articulated
haulage trucks of
200,000 to
400,000 pound of
GVW)
19
Horizontal Alignment
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Deals primarily with design of curves and
considers previously discussed radius, width,
and sight distance in addition to
superelevation
Cross slopes also should be considered in the
design
20
Curves, Superelevation, and
Speed Limits
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Superelevation grade recommendations vary
but should be limited to 10% or less because
of traction limitations
Depending on magnitude of the side friction
forces at low speed, different values are
suggested for small radius curves
Kaufman and Ault suggest .04-.06 fpf
(basically the normal cross slope)
21
Curves, Superelevation, and
Speed Limits
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CAT suggests higher slopes with traction
cautions and 10% maximum caution
Again, where ice, snow, and mud are a
problem, there is a practical limit on the
degree of superelevation
22
Curve Superelevation
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(CAT)
23
Recommended Superelevation
Rates
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(Kaufman and Ault)
If superelevation is not used, speed limits should be set on curves.
24
Curves, Superelevation, and
Speed Limits
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Centrifugal forces of vehicles on curves are
counteracted by friction between tire an road and
vehicle weight as a result of superelevation
Theoretically, with superelevation, side friction
factors would be zero and centrifugal force is
balanced by the vehicle weight component
To reduce tire wear, superelevation or speed limits
on curves are required
25
Combinations of Alignments
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Avoid sharp horizontal curvature at or near the crest
of a hill
Avoid sharp horizontal curves near the bottom of
sustained downgrades
Avoid intersections near crest verticals and sharp
horizontal curvatures
Intersections should be made flat as possible
If passing allowed, grades should be constant and
long enough
26
Cross Section
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A stable road base is very important
Sufficiently rigid bearing material should be
used beneath the surface
Define the bearing capacity of the material
using the California Bearing Ratio (CBR)
27
California Bearing Ratio
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Subbase Construction
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29
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Cross Slopes
Cross slopes provide adequate drainage and
range from to inch drop per foot of
width (approximately .02 to .04 foot per foot)
Lower cross slopes used on smooth surfaces
that dissipate water quickly and when ice or
mud is a constant problem
30
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Cross Slopes
Higher cross slopes permit rapid drainage,
reduce puddles and saturated sub-base, and
are used on rough surfaces (gravel and
crushed rock) or where mud and snow are
not a problem
High cross slopes can be particularly
problematic with ice or snow on high grades
(+5%)
31
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Recommended Rate of Cross-
Slope Change
(Kaufman and Ault)
Slope change should be gradual.
32
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Width
On straight or tangent segments, width
depends on
Vehicle width
Number of lanes
Recommended vehicle clearance, which ranges
from 44 to 50% of vehicle width
33
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Minimum Road Design Widths
for Various Size Dump Trucks
(Couzens, SME Open Pit Planning and Design)
34
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Typical Design Haul Road
Width
(Couzens, SME Open Pit Planning and Design)
Typical
design haul-
road width
for two-way
traffic using
77.11-t (85-
st) trucks
35
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(Kaufman and Ault)
Typical Haulageway Sections
36
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Width
Bermheight and width as a function of
vehicle size and material type
Ditch(es) added to basic recommendations
Runaway provisions may also add to width
Road wider on curves because of overhang
Minimum turning radius considered on
curves (should be exceeded)
37
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Haulageway Widths on Curves
38
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Safety Provisions - Berms
Triangular or trapezoidal made by using local
material
Stands at natural angle of repose of construction
material
Redirects vehicle onto roadway
Minimum height at rolling radius of tire
39
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Berms
Larger boulders backed with earthen material
Near vertical face deflects vehicle for slight
angles of incidence
Problems with damage and injury and
availability of boulders
Minimum height of boulder at height of tire
allowing chassis impact
40
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Runaway Provisions
With adverse grades some safety provision should
be integrated to prevent runaway vehicles
Primary design consideration is required spacing
between protective provisions
Driver must reach a safety provision before truck
traveling too fast to maneuver
Maximum permissible speed depends on truck
design conditions and operator
41
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Runaway Provisions
Maximum permissible speed, equivalent
downgrade, and speed at break failure determine
distance between runaway truck safety provisions
For example, at an equivalent downgrade of 5% and
a maximum speed of 40 mph,
Speed at Failure 10 mph 20 mph
Provision Spacing 1,000 ft 800 ft
(Kaufman and Ault)
42
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Runaway Precautions
(Atkinson SME Handbook)
43
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Median Runaway-Vehicle
Provision Berms
Vehicle straddles collision bermand rides
vehicle to stop
Made of unconsolidated-screened fines
Critical design aspects spacing between
berms and height of berm
Height governed by height of undercarriage
and wheel track governed by largest vehicle
44
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Median Runaway-Vehicle
Provision Berms
Requires maintenance in freezing conditions
Agitation to prevent damage to vehicle
May cover bermin high rainfall areas
45
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Escape Lanes
Good tool for stopping runaway but
expensive to construct
Entrance from road is important; spacing,
horizontal, vertical curve and superelevation
are all considered in design
Deceleration mainly by adverse grade and
high rolling resistance material
46
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Escape Lanes
Length a function of grade and speed at
entrance and rolling resistance
Stopping by level section median berm, sand
or gravel or mud pits, road bumps or manual
steering
47
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Escape Lanes
48
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Maintenance
The road surface is
deformed by the constant
pounding of haulage
vehicles.
A good road maintenance
program is necessary for
safety and economics.
49
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Safety Considerations
Dust, potholes, ruts, depressions, bumps, and
other conditions can impede vehicular
control.
50
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Economic Considerations
The wear on every component is increased when a
vehicle travels over a rough surface.
If the vehicle brakes constantly, unnecessary lining
wear occurs as well.
51
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Dust Control
Dust may infiltrate brakes, air filters,
hydraulic lifts, and other components of
machinery.
The abrasive effect of dust will result in
costly cleaning or replacement of these
items.
52
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Deterioration Factors
Weather
Vehicles follow a
similar path
Spillage
53
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Motor Graders
A motor grader
should be used to
maintain cross slopes,
remove spills, and to
fill and smooth
surface depressions as
they occur.
54
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Road Drainage
To avoid overflow, roadside ditches and
culverts should be periodically cleaned.
Avoid erosion or saturation of subbase
materials.
Haul Road Design
Open Pit Contour Maps
Dr. Kadri Dagdelen
Source: Hustrulid and Kuchta
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2
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Example of Mapping Procedure
3
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Plan View of a Portion of the
Open Pit
Crests denoted by dashed lines and toes by solid lines.
4
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Example of Mapping Procedure
5
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Midbench Elevation
6
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Plan View of Midbench Elevation
7
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Map Based on Midbench Contours
8
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Procedure to Convert Midbench to
Toe and Crest Contours
9
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Representation of Crests and Toes
10
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Designing a Spiral Ramp Inside
the Wall
11
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Completing the new crest lines
12
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Pit Layout Including Ramp
13
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Design of a Spiral Ramp Outside
the Wall
14
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Pit Layout Including Ramp
15
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Design of a Switchback
16
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Design of a Switchback
17
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Design of a Switchback
18
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Pit Layout Including Ramp
19
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Example of Two Switchbacks
20
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Plan and Section Views of Pit
Without Ramp
21
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Plan and Section Views of Pit
With Ramp
22
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Road Volume in the Ramp
1
Block Modeling and Ore Reserves
Estimation
Dr. Kadri Dagdelen
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2
Basic Block Model Information
Topography Data
Drill Data
Sampling
Assays
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3
Topography Data
3D Display (Color Coded Elevations)
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4
Drill Data
Drill Hole Data Sources
Collar Coordinates
Geologic Logs
Down Hole Surveys
Lab Tests
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5
Samplings
Sampling Data
Rock Types
Alteration Types
Metal Grades
Attributes
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6
Samplings (Cont.)
Data Collections
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Assays
Assay Data for Cu and Mo
Multiple Cutoffs
Rock Types
Alterations
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8
Geological Interpretation
Section View Showing
Topography and Alteration Types
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9
Geological Interpretation
Boundaries for rock types
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Geological Interpretation
Color Filled Display for Alteration Types
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11
3D Geological View
3D Display of Alteration Type Solids
(With Drill Hole Piercing Points)
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Composites
Composited Grade Data with Corresponding
Assay Interval Data
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3D Block Models
3D View of the Block Models
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Block Estimation
Kriging - Geological Interpolation Technique for
Ore Reserve Estimation
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Block Values
Block by Block Profit Values in Association with
Block Grade Data and Alteration Type Boundaries
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Block Models
Interpolated Grades from Drill Hole Data
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Ore Reserve Estimation
Interpolated Grades from Drill Hole Data
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Economic Pit Limits
Economic Pit Limits for Different Economic Scenarios
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3D View of Economic Pit Limits
3D View of Economic Pit Limits for Different
Economic Scenarios
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Mine Planning Application
(Open Pit Mine)
Yearly Maps for the Open Pit Mine Scheduling
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21
Geologic Resource Modeling Techniques
Exploratory Data Analysis
Variogram Analysis
Search Strategies
Simple Kriging, Ordinary Kriging, Indicator
Kriging, Co-Kriging
Cross Validation
Uncertainty and Risk Evaluation
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Frequency and Cumulative Frequency Plots
Classical Statistics
Data Posting and Display
Histograms
Cumulative Histograms
Probability Plots
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Inverse Distance Technique
In general,

=
=
=
n
i
i
n
i
p
i
p
i
v
d
d
v
1
1
1
1

Inverse distance technique is the simplest


interpolation method.
Give more weight to the closest samples, and less
to those that are farthest away.

=
=
n
i
p
i
p
i
i
d
d
w
1
1
1

=
=
n
i
i i
v w v
1

1
1
=

=
n
i
i
w
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24
Inverse Distance Technique
(pg257)
v
1
v
2
d
1
d
2
4
4
1
1
1
3
4
1
1
1
2
4
1
1
1
1
4
1
1
1
2
2
4
2
2
3
2
2
2
2
2
1
v v v v v
i
d
d
i
d
d
i
d
d
i
d
d
i i i i

= = = =
+ + + =
v

Inverse Distance Square


We can make the weights inversely
proportional to any power of the distance.
If p=2, it is called Inverse Distance Square.
d
3
d
4
v
3
v
4
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25
Inverse Distance Square Example
V
1
=0.2
V
2
=0.3
d
1
=1
d
2
=2
v

Estimate the unknown point by using the Inverse


Distance Square technique
d
3
=4
V
3
=0.5
v

v
1
= 0.2 d
1
=1
v
2
= 0.3 d
2
=2
v
3
= 0.5 d
3
=4
?

= v
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26
Inverse Distance Square Example
First of all, calculate the weights w
1
, w
2
, w
3
21
16 1
16
21
2
4
1
2
2
1
2
1
1
2
1
1
1
= =
+ +
= w
21
4
16
21
4
1
2
4
1
2
2
1
2
1
1
2
2
1
2
= =
+ +
= w
21
1
16
21
16
1
2
4
1
2
2
1
2
1
1
2
4
1
3
= =
+ +
= w
Note:
1
3 2 1
= + + w w w
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27
Inverse Distance Square Example
Then, calculate
233 . 0 5 . 0
21
1
3 . 0
21
4
2 . 0
21
16
= + + = v
v

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Estimation Error
Error estimation between estimation (Exploration data)
and true value (Blasthole data).
Error = Estimated Grade True Grade
e.g., Estimation Error for Block 1 = 0.463 0.433 = 0.031
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Histogram of Errors
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Scatter Graph
True grades agai nst Esti mated grades
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
True (%)
E
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m
a
t
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d

(
%
)
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Surface Mine Design
MNGN312 - MNGN512
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Lecture 5
September 14, 2004
Instructor
Dr. Kadri Dagdelen
2
Geologic Block Modeling
Assume that a geologic model to be created by using 75ft
by 75ft blocks from the exploration data set. Estimate the
grade of these blocks using the inverse distance square
(IDS) technique.
Use rectangular search neighborhood of 37.5ft x 37.5ft.
Assume that the center of the block represents the block
grade.
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3
Geologic Block Modeling
Estimate the grade of the block (block size 75ft x 75ft)
for exploration data set.
75ft
7
5
f
t
1

v
2

v
Estimate the
center point
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4
Geologic Block Modeling
Rectangular search neighborhood of 37.5ft x 37.5ft.
7
5
f
t
37.5ft
37.5ft 37.5ft
37.5ft
Use all the exploration holes within a given block (For this
block, use 3 exploration samples)
75ft
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5
Inverse Distance Technique
In general,

=
=
=
n
i
i
n
i
p
i
p
i
v
d
d
v
1
1
1
1

Inverse distance technique is the simplest interpolation


method.
Give more weight to the closest samples, and less to
those that are farthest away.

=
=
n
i
p
i
p
i
i
d
d
w
1
1
1

=
=
n
i
i i
v w v
1

1
1
=

=
n
i
i
w
Unknown point
Sampling points
Weights
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6
Inverse Distance Technique
v
1
v
2
d
1
d
2
4
4
1
1
1
3
4
1
1
1
2
4
1
1
1
1
4
1
1
1
2
2
4
2
2
3
2
2
2
2
2
1
v v v v v
i
d
d
i
d
d
i
d
d
i
d
d
i i i i

= = = =
+ + + =
v

Inverse Distance Square


We can make the weights inversely proportional to any
power of the distance.
If p=2, it is called Inverse Distance Square (IDS).
d
3
d
4
v
3
v
4
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7
Inverse Distance Square Example
V
1
=0.2
V
2
=0.3
d
1
=1
d
2
=2
v

Estimate the unknown point by using the Inverse


Distance Square technique
d
3
=4
V
3
=0.5
v

v
1
= 0.2 d
1
=1
v
2
= 0.3 d
2
=2
v
3
= 0.5 d
3
=4
?

= v
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8
Inverse Distance Square Example
First of all, calculate the weights w
1
, w
2
, w
3
21
16 1
16
21
2
4
1
2
2
1
2
1
1
2
1
1
1
= =
+ +
= w
21
4
16
21
4
1
2
4
1
2
2
1
2
1
1
2
2
1
2
= =
+ +
= w
21
1
16
21
16
1
2
4
1
2
2
1
2
1
1
2
4
1
3
= =
+ +
= w
Note:
1
21
1 4 16
3 2 1
=
+ +
= + + w w w
Then, calculate
233 . 0 5 . 0
21
1
3 . 0
21
4
2 . 0
21
16
= + + = v
v
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9
Geologic Block Modeling
25
25
g
1
d
1
36 . 35 25 25
2 2
1
= + = d
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10
Geologic Block Modeling
0032 . 0
0008 . 0

=
n
i i
d
1
2
1
Block1 X Y vi x dist y dist di 1/di
2
wi wi*vi
Centered on 12.5 12.5 0.42 25 25 35.35534 0.0008 0.25 0.105
(X=37.5, Y=37.5) 62.5 12.5 0.24 -25 25 35.35534 0.0008 0.25 0.06
37.5 62.5 0.41 0 -25 25 0.0016 0.5 0.205
0.0032 1 0.37
(Estimated Grade)
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11
Geologic Block Modeling
Using the estimated block values, one normally
determines the overall estimated bench average grade of
the copper ore at some cutoff, i.e, 0.7%Cu.
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12
Geologic Block Model
Reconciliation
Determine the average grade of 75ft by 75ft grid blocks
for the blasthole data set (blasthole2004.txt) by averaging
the grades of 9 blast holes that fall within each block.
Block 1 Grade
= (0.42+0.35+0.24+0.33+
+ 0.46) / 9
=0.35
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Geologic Block Model
Reconciliation
Error estimation between estimation (Exploration data)
and true value (Blasthole data).
Error = Estimated Grade True Grade
e.g., Estimation Error for Block 1
= 0.37 0.35 = 0.02
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14
Geologic Block Model
Reconciliation
Histogram of Error (Example of 100ft x 100ft estimation)
Histogram of Estimation Errors (Estimation - True)
0
0.5
1
1.5
2
2.5
3
3.5
-0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2 0.25 More
Bin
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e
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c
y
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Frequency
Cumulative %
Bin FrequencyCumulative %
-0.2 0 0.00%
-0.15 0 0.00%
-0.1 1 11.11%
-0.05 1 22.22%
0 3 55.56%
0.05 3 88.89%
0.1 0 88.89%
0.15 0 88.89%
0.2 1 100.00%
0.25 0 100.00%
More 0 100.00%
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Geologic Block Model
Reconciliation
Scatter Graph (Example of 100ft x 100ft estimation)
True grades agai nst Esti mated grades
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
True (%)
E
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d

(
%
)
Draw a diagonal line
(y=x) to show perfect
estimation line.
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Univariate Distribution of
Errors
Error = Estimated Value - True Value
We also refer to these error as residuals.
If error is positive, then we have overestimated the true;
if error is negative, then we have underestimated the
true.
If m=0, then Unbiased Estimates
Overestimates and underestimates
are balanced.
We typically prefer to have a
symmetric distribution.
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Univariate Distribution of
Errors
We would like to see the error distribution has small
spread.
Both distributions are centered on 0 and are symmetric.
The distribution shown in a), however, has error that span
a greater range.
Therefore, b) is better estimation than a).
a) b)
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Over and Under Estimation
a) Negative mean: A general tendency towards the
underestimation.
b) Positive mean: A general tendency towards the
overestimation.
a) b)
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Scatter Diagrams in Estimation
E
s
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i
m
a
t
i
o
n
True
Good Estimation
E
s
t
i
m
a
t
i
o
n
True
Over Estimation at
High Grade
E
s
t
i
m
a
t
i
o
n
True
Under Estimation at
Low Grade
Good Estimation: Falling closer to diagonal on
which perfect estimates would plot.
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Scatter Diagrams in Estimation
E
s
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i
m
a
t
i
o
n
True
Over Estimation at
Low Grade
E
s
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i
m
a
t
i
o
n
True
Under Estimation at
Low Grade
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1
Floating Cone Algorithm
Dr. Kadri Dagdelen
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Basic Procedure
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Top
-1 +1 -1 -1 -1
-1 -1 +3 -1 -1
Bottom
Left Right
-1 -1
-1 -1 -1 -1
Heuristic procedure
3
Floating Cone Steps
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The cone is floated from left to right along the top row of blocks in the section. If
there is a positive block it is removed.
Move to the second row. Start from the left and search for the first positive block. If
the sum of all blocks falling within the cone is positive, the blocks are removed
(mined).
Follow the floating cone process moving from left to right and top to bottom of the
section until no more blocks can be removed. Then go back to the top again and repeat
the process for a second iteration. If during a given iteration no positive blocks can be
mined, stop.
The profitability of the mined area can be found by adding the values of the blocks
that are to be removed.
Overall stripping ration can be determined by dividing the number of positive blocks
by the total number of negative blocks.
4
Example
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-1 -1 -1 -1 -1 +1 -1
Ore
-2 -2 +4 -2 -2
+7 +1 -3
Waste
Initial Block Model
5
Example
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-1 -1 -1 -1 -1 +1 -1
Ore
-2 -2 +4 -2 -2
Waste
+7 +1 -3
Mined
Step 1
6
Example
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-1 -1 -1 -1 -1 +1 -1
Ore
-2 -2 +4 -2 -2
Waste
+7 +1 -3
Mined
Step 2
7
Example
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-1 -1 -1 -1 -1 +1 -1
Ore
-2 -2 +4 -2 -2
Waste
+7 +1 -3
Mined
Step 3
8
Example
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-1
-2 -2
+1 -3
Final Pit
9
Shortcomings
Missing Combinations of Profitable Blocks
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-1 -1 -1 -1 -1 -1 -1
Ore
-2 -2 -2 -2 -2
+10 -3 +10
Waste
Initial Block Model
10
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Step 1
-1 -1 -1 -1 -1 -1 -1 Ore
-2 -2 -2 -2 -2 Waste
+10 -3 +10
Considered but rejected
Shortcomings
Missing Combinations of Profitable Blocks
11
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Step 2
-1 -1 -1 -1 -1 -1 -1 Ore
-2 -2 -2 -2 -2 Waste
+10 -3 +10
Considered but rejected
There are no blocks to be mined wrong solution
Shortcomings
Missing Combinations of Profitable Blocks
12
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Correct solution
-1 -1 -1 -1 -1 -1 -1
Ore
-2 -2 -2 -2 -2
Waste
+10 -3 +10
Mined (Correct solution)
-3
Final Pit
Shortcomings
Missing Combinations of Profitable Blocks
13
Shortcomings
Over-mining
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-1 -1 -1 -1 -1
Ore
+5 -2 -2
+5
Waste
Initial Block Model
14
Shortcomings
Over-mining
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First block analyzed
-1 -1 -1 -1 -1
Ore
+5 -2 -2
Waste
+5
Mined
The search process was started from bottom to top.
Everything is mined out.
15
Shortcomings
Over-mining
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Correct solution
-1 -1 -1 -1 -1 Ore
+5 -2 -2 Waste
+5 Mined
-1 -1
-2 -2
+5
Final Pit
16
Shortcomings
Combination of problems
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-1 -1 -4 -1 -1
Ore
+5 -4 +5
+3
Waste
Initial Block Model
17
Shortcomings
Combination of problems
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First Step
-1 -1 -4 -1 -1
Ore
+5 -4 +5
Waste
+3
Considered but rejected
18
Shortcomings
Combination of problems
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Second Step
-1 -1 -4 -1 -1
Ore
+5 -4 +5
Waste
+3
Considered but rejected
19
Shortcomings
Combination of problems
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Wrong Solution
-1 -1 -4 -1 -1
Ore
+5 -4 +5 Waste
+3
Mined
Everything is mined out.
20
Shortcomings
Combination of problems
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Correct Solution
-1 -1 -4 -1 -1
Ore
+5 -4 +5
Waste
+3
Mined
-4
+3
Final Pit
21
Example
Initial Data
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% recovery through mill and smelter 90.00%
Value of recovered copper $1.00 per lb
Stripping and haulage to dump (level 1) $0.50 per ton
Mining and transportation to plant level $0.80 per ton
Haulage cost increase per ton per bench $0.10 per ton/bench
Processing, smelting and refining $1.20 per ton
General overhead, administration, etc. $1.20 per ton
Ultimate Pit Slope 1:1
22
Example
Geologic Model
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0.00 1.15 0.08 0.05 0.00 0.00 0.05
0.00 1.25 1.15 1.13 0.00
1.13 1.15 0.50
Copper Grades (%)
23
Example
Block Values
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P = Price
s = Sales Cost
c = Processing Cost
y = Recovery
m = Mining Cost
g
B
= Block Grade
BV = Block Value
m c y g s P BV
B
= * * ) (
Ore Block:
Waste Block:
m BV =
24
Example
Economic Model
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-0.50 17.50 -0.50 -0.50 -0.50 -0.50 -0.50
-0.60 19.20 17.40 17.04 -0.60
16.94 17.30 -0.70
Value per block ($/ton)
25
Example
Economic Model
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-0.50 17.50 -0.50 -0.50 -0.50 -0.50 -0.50
-0.60 19.20 17.40 17.04 -0.60
16.94 17.30 -0.70
Value per block ($/ton)
5 . 17 8 . 0 4 . 2 9 . 0 * 2000 * 100 / 15 . 1 * ) 0 1 ( = = BV
26
Example
Economic Model
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-0.50 17.50 -0.50 -0.50 -0.50 -0.50 -0.50
-0.60 19.20 17.40 17.04 -0.60
16.94 17.30 -0.70
Value per block ($/ton)
2 . 3 8 . 0 4 . 2 9 . 0 * 2000 * 100 / 0 . 0 * ) 0 1 ( ) / ($ = = ton BV If mined as ore
6 . 0 ) / ($ = ton BV If mined as waste
27
Example
Economic Model
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Value per block ($/ton)
Values rounded to the nearest $
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
28
Example
Floating Cone Algorithm
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1
st
Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
1
29
Example
Floating Cone Algorithm
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2nd Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
1 2 2
2
30
Example
Floating Cone Algorithm
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3rd Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
2 2
2
1 3
3
31
Example
Floating Cone Algorithm
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4th Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
3
3
1 2 2
2
4
4
32
Example
Floating Cone Algorithm
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5th Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
3
3
1 2 2
2
4
4
5
5
5
33
Example
Floating Cone Algorithm
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6th Increment
-1 18 -1 -1 -1 -1 -1
-1 19 17 17 -1
17 17 -1
3
3
1 2 2
2
4
4
5
5
5 6
34
Example
Floating Cone Algorithm
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Ultimate Pit Limit
-1
-1
-1
35
Example
Total Economic Value
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Value Per block considering:
Tonnage/block = 10,000 tons
-5,000 175,000 -5,000 -5,000 -5,000 -5,000
-6,000 192,000 174,000 170,400
169,400 173,000
36
Example
Pit Reserves
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Bench Ore tons Waste tons S.R. $
1 10,000 50,000 5.00 150,000
2 30,000 10,000 0.33 530,400
3 20,000 0 0.00 342,400
Total 60,000 60,000 1.00 1,022,800
1
Manual Pit Design
Dr. Kadri Dagdelen
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2
Manual Pit Design
Stripping Ratio
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e
s
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n
) / ($
) / ($ Pr ) / ($ cov Re
) .( .
ton Cost Stripping
ton Cost oduction Total ton Value ered
Breakeven R S

=
) / ($
) / ($ ) / ($
ton Cost Stripping
ton Cost Mining Surface ton Cost Mining UG
Breakeven d Undergroun or Surface

=
1 : 58 . 6
) / 66 . 0 $
/ 70 . 0 $ / 04 . 5 $
=

=
ton waste
ton ore ton ore
Breakeven d Undergroun or Surface
3
Manual Pit Design
Example
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Ore Grade (%Cu) 0.90 0.85 0.75 0.70 0.65 0.50 0.40
Conc. Recovery (%) 0.900 0.900 0.900 0.900 0.900 0.900 0.900
Smelt. Recovery (%) 0.980 0.980 0.980 0.980 0.980 0.980 0.980
Ref. Recovery (%) 0.990 0.990 0.990 0.990 0.990 0.990 0.990
Total Recovery (%) 0.873 0.873 0.873 0.873 0.873 0.873 0.873
Recovered Quantity (lb/ton) 15.7 14.8 13.1 12.2 11.3 8.7 7.0
Costs per ton
Finance 0.62 0.62 0.62 0.62 0.62 0.62 0.62
Mining 0.70 0.70 0.70 0.70 0.70 0.70 0.70
Concentration 2.68 2.68 2.68 2.68 2.68 2.68 2.68
Smelter 1.70 1.48 1.38 1.29 1.21 1.19 1.18
Refining 1.80 1.57 1.36 1.27 1.20 1.16 1.12
Total cost ($/ton) 7.50 7.05 6.74 6.56 6.41 6.35 6.30
Stripping cost ($/ton) 0.66 0.66 0.66 0.66 0.66 0.66 0.66
Breakeven stripping ratio
Copper Price ($/lb)
0.90 10.07 9.56 7.65 6.73 5.70 2.29 -0.02
0.75 6.50 6.19 4.67 3.95 3.13 0.30 -1.61
0.70 5.31 5.06 3.68 3.03 2.27 -0.36 -2.14
0.65 4.12 3.94 2.69 2.10 1.42 -1.02 -2.67
07 . 10
/ 66 . 0 $
/ 5 . 7 $ / 90 . 0 $ 7 . 15
=

=
waste of ton
ore of ton lb lbs
BESR
4
Manual Pit Design
Stripping Ratio Grade - Price
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S.R. - Ore Grades - Cu Prices
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
0.40 0.50 0.60 0.70 0.80 0.90
% Cu
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0.90 $/lb
0.75 $/lb
0.70 $/lb
0.65 $/lb
5
X'
SR =
A B
Y'
Y
Topo
Orebody
X'
Y'
SR =
Y
X
X
Manual Pit Design
Hypothetical Cross Section
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6
Manual Pit Design
S.R. in Section
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First
X = 30
Y = 5
S.R. = 6
G = 0.67%
Second
X = 39.6
Y = 6
S.R. = 6.6 (Breakeven)
G = 0.70%
First
X = 10
Y = 5
S.R. = 2
G = 0.48%
Second
X = 15
Y = 3
S.R. = 5
G = 0.70%
5 : 1 < 6.6 : 1 OK
Current Price = 0.90
$/lb
7
Manual Pit Design
Repeat for All Sections
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Pit contour
or Final pit
1
Cutoff Grade Optimization
Dr. Kadri Dagdelen
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2
Factors Influencing The Cutoff
Grades
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As the Cutoff Grade increases in a given operation cash flow
also increases
The ultimate adjustment of the dial is influenced by the
available capacities in the mining system
The Cutoff Grade is not only function of economic parameters
but also capacities of the mining system with respect to mining,
milling and the market (refining)
3
What Is Cutoff Grade
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1. Cutoff Grade is defined as the grade that is normally used to
discriminate between ore and waste within a given deposit
2. Cutoff Grade is the dial that is used to adjust the cash flow
coming from the mining operations in a given year
3. The Cutoff Grade policy allows a mining company to fine tune
their operation with respect to a given financial objective
4. The Cutoff Grade dial also controls how much ore is available
to the mill from a given bench and how much of final product
to be produced in a given period
5. The overall influence of Cutoff Grade policy on the economics
of an operation is profound
4
Economic Objectives And The
Cutoff Grade
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The cash costs related to mining, milling and refining along with
the commodity price determines the lower limit to cutoff in a
given period.
If the financial objective of the company is to maximize
undiscounted profits, the cutoff grade should be lowered all the
way down to process breakeven cutoff grade.
Processing every ton of ore that pays for itself will maximize the
undiscounted profits for the operation.
5
Economic Objectives And The
Cutoff Grade (Cont.)
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If the financial objective of the company is to maximize the
discounted profits that is Net Present Value (NPV), the Cutoff
Grade in a given period has to be adjusted upwards to pay for
the opportunity cost of mining low grade ore now while the
higher grades are still available.
The mining rate, milling rate, the ultimate rate of production for
the commodity being sold, and the production costs determine
how far the cutoff grade has to be adjusted upwards to maximize
the NPV.
6
Ultimate Pit Cutoff
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Defined as the breakeven grade that equates cost of
mining, milling and refining to the value of the block in
terms of recovered metal and the selling price.
Any administrative overhead expense which would stop if
mining were stopped must be included in the cost
calculations.
Overhead costs should be divided between mining and
processing.
7
Ultimate Pit Cutoff
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Price (P) $400/oz
Sales Cost (s) $5 /oz
Processing Cost (c) $ 10/ ton ore
Recovery (y) 90 %
Mining Cost (m) $ 1.20/ ton
Overhead
(Included in c and m)
8
Ultimate Pit Cutoff
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ery Cost Sales ice
Cost Mining Cost Milling
g
m
cov Re * ) (Pr
+
=
ton oz g
m
/ 0315 . 0
9 . 0 * ) 5 $ 400 ($
2 . 1 $ 10 $
=

+
=
9
Milling Cutoff
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Defined as the breakeven grade that equates cost of milling
and refining to the value of the block in terms of recovered
metal and the selling price.
Any administrative overhead expense which would stop if
mining were stopped must be included in the cost
calculations.
10
Milling Cutoff
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ery Cost Sales ice
Cost Milling
g
c
cov Re * ) (Pr
=
ton oz g
c
/ 0281 . 0
9 . 0 * ) 5 $ 400 ($
10 $
=

=
11
Block Value
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Block Grade = g
B
if g g
c c < <
g g
m < m <
g g
B B
then
Block Value = (P (P- -S)* g S)* g
B B
* y * y c c m m
Else if g g
B B < <
g g
m < m <
g g
c c
then
Block Value = Block Value = - -m m
12
Block Value
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Block Grade = g
B
if g g
c c < <
g g
B B < <
g g
m m
then
Block contains marginal ore.
Marginal ore pays for processing cost
but not for mining cost.
13
Block Value Calculation Example
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a) Ore Block
Block grade = g
B
= 0.11 oz/ton
g g
c c < <
g g
m < m <
g g
B B
0.0281 < 0.0315 < 0.11
Block Value = (P (P- -S)* S)* g g
B B
* y * y c c m m
Block Value = (400 - 5)*0.11*0.9 - 10 - 1.20
= $27.9/ton of block
14
Block Value Calculation Example
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b) Waste Block
Block Grade = g
B
= 0.01 oz/ton
g g
B B < <
g g
c c < <
g g
m m
0.01 < 0.0281 < 0.0315
therefore
Block Value = - - $1.20/ton $1.20/ton
= Mining Cost
15
Mine Design Parameters For The
Case Study
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Price (P) $600/oz
Sales Cost (s) $5 /oz
Processing Cost (c) $ 19/ ton ore
Recovery (y) 90 %
Mining Cost (m) $ 1.20/ ton
Fixed Costs (f
a
) 8.35 M/year
Mining Capacity (M) Unlimited
Milling Capacity (C) 1.05 M
Capital Costs (CC) 105 M
Discount Rate (d) 15%
16
Calculation of Ultimate Pit
Cutoff Grade
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ery Cost Sales ice
Cost Mining Cost Milling
g
m
cov Re * ) (Pr
+
=
ton oz g
m
/ 038 . 0
9 . 0 * ) 5 $ 600 ($
2 . 1 $ 19 $
=

+
=
17
Calculation of Milling Cutoff
Grade
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ery Cost Sales ice
Cost Milling
g
c
cov Re * ) (Pr
=
ton oz g
c
/ 035 . 0
9 . 0 * ) 5 $ 600 ($
19 $
=

=
18
Grade Tonnage Distribution
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Avg. Interval
Grade
0.000 - 0.020 70,000 0.0100
0.020 - 0.025 7,257 0.0225
0.025 - 0.030 6,319 0.0275
0.030 - 0.035 5,591 0.0325
0.035 - 0.040 4,598 0.0375
0.040 - 0.045 4,277 0.0425
0.045 - 0.050 3,465 0.0475
0.050 - 0.055 2,428 0.0525
0.055 - 0.060 2,307 0.0575
0.060 - 0.065 1,747 0.0625
0.065 - 0.070 1,640 0.0675
0.070 - 0.075 1,485 0.0725
0.075 - 0.080 1,227 0.0775
0.080 - 0.100 3,598 0.0900
0.100 - 0.358 9,576 0.2290
Cutoff Grade 0.035
KTons Grade Interval KTons Grade
89,167
36,348
Waste
0.1023
Ore
Oz/ton
19
Constant Cutoff Grades.
Yearly Tons and Grade Schedules.
Table 3
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Year Cutoff Avg QM Qc Qr Profits
Grade Grade $M/year
1 0.035 0.102 3.6 1.05 96.3 33.0
2 0.035 0.102 3.6 1.05 96.3 33.0
3 0.035 0.102 3.6 1.05 96.3 33.0
4 0.035 0.102 3.6 1.05 96.3 33.0
5 0.035 0.102 3.6 1.05 96.3 33.0
6 0.035 0.102 3.6 1.05 96.3 33.0
7 0.035 0.102 3.6 1.05 96.3 33.0
8 0.035 0.102 3.6 1.05 96.3 33.0
9 0.035 0.102 3.6 1.05 96.3 33.0
10 0.035 0.102 3.6 1.05 96.3 33.0
For 11 to 34 0.035 0.102 3.6 1.05 96.3 33.0
35 0.035 0.102 3.4 1.00 91.7 31.4
TOTAL 0.035 0.102 125.8 36.70 3365.9 1154.2
NPV $M 218.5
20
Profit
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Profits ($M) = (P Profits ($M) = (P s ) x s ) x Q Q
r r
Q Q
c c
x c x c Q Q
m m
x m x m
P Price
S Sales Cost
Q
m
Total Material Mined
Q
c
Ore Tonnage Processed By The Mill
Q
r
Recovered Ounces
c Milling Costs ($/ton)
m Mining Costs ($/ton)
21
Shortcomings of the traditional
cutoff grades
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They are established to satisfy the objective of
maximizing the undiscounted profits from a given
mining operation.
They are constant unless the commodity price and
the costs change during the life of mine AND
They do not consider grade distribution of the
deposit.
22
Traditional
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ery Cost Sales ice
ofit Minimum on Depreciati Cost Milling
g
c
cov Re * ) (Pr
Pr

+ +
=
ton oz g
c
/ 060 . 0
9 . 0 * ) 5 $ 600 ($
3 $ 10 $ 19 $
=

+ +
=
23
Nontraditional ????????
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ery Cost Sales ice
on Depreciati Cost Milling
g
c
cov Re * ) (Pr
+
=
ton oz g
c
/ 054 . 0
9 . 0 * ) 5 $ 600 ($
10 $ 19 $
=

+
=
24
Constant Cutoff Grades
Yearly Tons and Grade Schedules
Table 4
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Year Cutoff Avg Qm Qc Qr Profits
Grade Grade $M/year
1 0.060 0.153 6.90 1.05 144.60 57.8
2 0.060 0.153 6.90 1.05 144.60 57.8
3 0.060 0.153 6.90 1.05 144.60 57.8
4 0.060 0.153 6.90 1.05 144.60 57.8
5 0.060 0.153 6.90 1.05 144.60 57.8
6 0.054 0.141 6.00 1.05 132.80 51.9
7 0.054 0.141 6.00 1.05 132.80 51.9
8 0.054 0.141 6.00 1.05 132.80 51.9
9 0.054 0.141 6.00 1.05 132.80 51.9
10 0.054 0.141 6.00 1.05 132.80 51.9
For 11 to 27 0.035 0.102 3.60 1.05 96.30 33.0
28 0.035 0.102 0.30 0.09 8.10 2.8
TOTAL 0.035 0.102 125.80 28.44 3032.10 1112.7
NPV $M 355.7
25
Declining Cutoff Grades
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ery Cost Sales ice
Cost Fixed on Depreciati Cost Milling
g
c
cov Re * ) (Pr
+ +
=
ton oz g
c
/ 069 . 0
9 . 0 * ) 5 $ 600 ($
95 . 7 $ 10 $ 19 $
=

+ +
=
26
Declining Cutoff Grades
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D
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s
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ery Cost Sales ice
Cost Fixed Cost Milling
g
c
cov Re * ) (Pr
+
=
ton oz g
c
/ 050 . 0
9 . 0 * ) 5 $ 600 ($
95 . 7 $ 19 $
=

+
=
27
Declining Cutoff Grades
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s
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ery Cost Sales ice
Cost Fixed of Minimum on Depreciati Cost Milling
g
c
cov Re * ) (Pr
. Pr

+ + +
=
ton oz g
c
/ 075 . 0
9 . 0 * ) 5 $ 600 ($
95 . 7 $ 3 $ 10 $ 19 $
=

+ + +
=
28
Declining Cutoff Grades
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s
i
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ery Cost Sales ice
Cost Milling
g
c
cov Re * ) (Pr
=
ton oz g
c
/ 035 . 0
9 . 0 * ) 5 $ 600 ($
19 $
=

=
29
Declining Cutoff Grades
Yearly Tons and Grade Schedules.
Table 5
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Year Cutoff Avg QM Qc Qr **Profits
Grade Grade $M/year
1 0.075 0.182 9.2 1.05 171.6 62.8
2 0.075 0.182 9.2 1.05 171.6 62.8
3 0.075 0.182 9.2 1.05 171.6 62.8
4 0.075 0.182 9.2 1.05 171.6 62.8
5 0.075 0.182 9.2 1.05 171.6 62.8
6 0.069 0.169 8.2 1.05 160.0 57.1
7 0.069 0.169 8.2 1.05 160.0 57.1
8 0.069 0.169 8.2 1.05 160.0 57.1
9 0.069 0.169 8.2 1.05 160.0 57.1
10 0.069 0.169 8.2 1.05 160.0 57.1
For 11 to 17 0.050 0.132 5.4 1.05 124.8 39.5
18 0.050 0.132 1.3 0.26 30.5 9.6
TOTAL 125.8 18.11 2562.5 885.6
NPV $M 357.7
**Profits ($M)= (P Profits ($M)= (P- -s) x s) x Qr Qr Qc x c Qc x c Qm Qm x m x m f a f a
30
Cutoff Grade Optimization
Determination Of
Optimum Cutoff Grades
When The Mill
Is Bottleneck
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Formula for Optimum Cutoff
Grade
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y S P
F f c
i g
i
c
* ) (
) (

+ +
=
Where
F Fi i = d x NPV = d x NPVi i /C /C
f = f = f fa a/C /C
and fa is annual fixed costs
32
Optimum Cutoff Grades
Yearly Tons and Grade Schedules
Table 6
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Year Cutoff Avg QM Qc Qr **Profits NPV
Grade Grade $M $M
1 0.161 0.259 18.0 1.05 245.2 95.9 413.8
2 0.152 0.255 17.2 1.05 241.0 94.4 380.0
3 0.142 0.250 16.5 1.05 236.4 92.6 342.6
4 0.131 0.245 15.7 1.05 231.3 90.5 301.4
5 0.120 0.239 14.9 1.05 225.7 88.1 256.1
6 0.107 0.232 14.1 1.05 219.6 85.4 206.4
7 0.092 0.213 12.1 1.05 200.9 76.7 152.0
8 0.079 0.188 9.8 1.05 177.9 65.9 98.1
9 0.065 0.163 7.6 1.05 153.6 53.9 46.9
TOTAL 125.8 9.45 1931.4 743.4
NPV $M 413.8
**Profits ($M)= (P Profits ($M)= (P- -s) x s) x Qr Qr Qc x c Qc x c Qm Qm x m x m f a f a
33
Summary
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Avg Total Total Strip Profits NPV Life Undiscounted NPV
Grade Amount Amount Ratio % Reduction % Increase
mined processed INC CUM INC CUM
Qm Qr $M $M yrs
Traditional 0.102 125.8 36.70 2.43 4453.4 218.5 35 n/a n/a n/a n/a
Heuristic 0.125 125.8 28.44 3.42 1127.4 355.7 28 3.6 3.6 63.0 63.0
(Depr)
Heuristic 0.164 125.8 18.11 5.95 885.6 357.1 18 20.4 23.3 0.3 63.4
(Depr and
Fixed Costs)
Lanes's 0.235 125.8 9.45 12.31 743.4 413.8 9 16.0 35.6 15.9 89.0
Approach
34
Cutoff Grade Optimization
One Constraint
Cutoff Grade
Optimization Algorithm
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Steps Of The Algorithm
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1. Start with Grade-Tonnage Curve.
2. Define: P - Price
C - Milling Capacity
s - Marketing Costs
m - Mining Costs
c - Milling Costs
fa - Fixed Costs
d - Discount Rate
36
Steps Of The Algorithm (Cont.)
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3. Determine the cutoff grade g
c
for year (i).
y S P
F f c
i g
i
c
* ) (
) (

+ +
=
Where
F Fi i = d x NPV = d x NPVi i /C /C
f = f = f fa a/C /C
and fa is annual fixed costs
37
Steps Of The Algorithm (Cont.)
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4. For Cutoff Grade g
milling
(i):
Determine Ore Tonnage T
c
and Grade g
c
Determine the Waste Tonnage T
w
Stripping Ratio ( (sr sr) = ) = T T
w w
/ /T T
c c
38
Steps Of The Algorithm (Cont.)
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5. Set
Q Q
c c
= C = C if if T T
c c
> C > C
Q Q
c c
= = T T
c c
if if T T
c c
< C < C
And
Q Q
m m
= Q = Q
c c
(1+ (1+sr sr) )
39
Steps Of The Algorithm (Cont.)
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6. Determine the annual profit (Pi) by using the
following equation
Pi =(P Pi =(P- -s) x Qc x s) x Qc x g g
cc
x y x y Qc x (c + f) Qc x (c + f) Qm Qm x m x m
P - Price
s - Marketing Costs
Qm - Total material mined
Qc - Ore tonnage processed by the mill
c - Milling Costs ($/ton)
m - Mining Costs ($/ton)
g
c
- Average Grade (Opt)
y - Recovery
f - Fixed Cost ($/ton)
40
Steps Of The Algorithm (Cont.)
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7. Adjust the Grade-Tonnage Curve of the deposit
for Qc and
Q Q
w w
= = Qm Qm Qc Qc .
8. If Qc < C Qc < C in year (i) go to step 9
otherwise
Set i = i+1 i = i+1 and go to Step 3.
41
Steps Of The Algorithm (Cont.)
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9. Calculate incremental NPV for each year (i)

=
+
+
=
N
i j
i j
j
i
d
P
NPV
1
) 1 (
42
Steps Of The Algorithm (Cont.)
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10. If NPV1 for this iteration is not within some tolerance
(say plus plus- -minus $500K minus $500K ) on the NPV1 of the previous
iteration go to Step 1
otherwise otherwise
Stop the cutoff grade g
c
(i) for years i = 1 i = 1,
N N is Optimum Policy.
Open Pit Sequencing and
Production Scheduling
Dr. Kadri Dagdelen
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Open pit production scheduling
It is a timed sequence of extraction of the ore and waste
within the ultimate pit limits from the initial condition of
the deposit up to a predetermined stage that mat be
referred to as an intermediate of final pit limit.
It sets the relationship between quantity and quality of
the material to be mined, time, geometry of the orebody,
and the available resources.
3
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Time
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V
o
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Declining Stripping Ratio
Method
1
2
3
4
5
6
7
1
2
7
6
5
4
3
1
2
3
4
5
6
7
Orebody
Waste
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Increasing Stripping Ratio
Method
Orebody
Waste
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Constant Stripping Ratio
Method
Orebody
Waste
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Long Term Production
Scheduling
Long term production scheduling is usually carried out
from the initial condition of the deposit (i.e. initial
topography) to the ultimate pit limit, in periods of at least
one year.
Its purpose is to determine ore reserves, stripping ratios,
future investments, and to conserve and develop owned
resources.
Long term production scheduling takes into account capital
availability, geometry and grade distribution of the orebody,
metallurgical and physical properties of the material, as well
as environmental and legal constraints.
7
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Short Term Production
Scheduling
Short term production scheduling is concerned with
schedules on a daily, weekly or monthly basis.
Its main objective is to furnish the requirements of the
processing plant with ore of uniform quality to ensure
operating efficiency.
To accomplish this objective, short term production
scheduling has to comply with restrictions imposed by the
long term plan, equipment availability, blending of different
materials from different sites within the mine, and the
availability of exposed ore.
8
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Objectives in Open Pit Mine
Planning
To ensure the tonnage required by the processing plant in order
to operate efficiently and to produce the expected amount of
concentrate per mining period.
To meet the grade specifications at the processing plant within a
given range for each ore parameter that has an effect on the
operating costs or the quality of the final product.
9
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Objectives in Open Pit Mine
Planning (cont.)
To minimize the pre-production stripping volume required to
expose enough ore at the beginning of the mine life in order to
ensure a continuous operation.
To defer waste stripping as long as possible to maximize cash
flow in the early years of the operation.
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Objectives in Open Pit Mine
Planning (cont.)
To ensure a feasible schedule in terms of mining practice. This
implies mining exposed material sequentially, keeping
appropriate mining widths, maintaining access to the mining
areas, and maintaining stable pit walls.
To ensure the schedule is compatible with the remaining
periods. In other words, the present schedule must ensure the
feasibility of the future extraction.
11
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Objectives in Open Pit Mine
Planning (cont.)
To mine the orebody in such a way that for each year the cost to
produce a given kilogram of metal is at minimum.
To develop an achievable start-up schedule with respect to
manpower training, equipment deployment, infrastructure and
logistical support in order to ensure positive cash flow as
planned.
To have enough exposed ore at the beginning of each
scheduling period to offset any problem that could arise in the
case of underestimation of ore tonnages and grades in the
reserves model.
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Objectives in Open Pit Mine
Planning (Cont.)
To maximize design pit slope angles in response to adequate
geotechnical investigations, and yet through careful planning
minimize the adverse impacts of any slope instability, should it
occur.
To properly examine the economic merits of alternative ore
production rate and cutoff grade scenarios.
To thoroughly subject the proposed mining strategy, equipment
selection, and mine development plan to what if contingency
planning, before a commitment to proceed is made.
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Pit Sequence Planning
Orebodies are normally mined in stages, so as to defer waste
stripping and maximize the net present value of the surface
mining venture.
These stages are commonly called sequences, expansions,
phases, working pits, slices, or pushbacks.
They are the basic building block on which more detailed time
period planning is subsequently made.
Phase planning should commence with mining that portion of
the orebody which will yield the maximum cash flow and then
proceed to mine other stages of lessening cash flow.
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Procedure to obtain the
pushbacks
Generate nested pits by increasing and/or decreasing
the product price.
According to the size of the deposit, pick a number of
phases that allow enough operating room for the
equipment.
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Example of how to obtain the
pushbacks
% Recovery through mill and smelter 90%
Value of recovered copper $1.10/lb
Stripping and haulage to dump (level 1) $0.50/ton
Mining and transportation to plant level $0.80/ton
Haulage costs increase per bench $0.10/ton
Processing, smelting and refining $1.20/ton
General overhead, administration, etc. (ore blocks only) $1.20/ton
Ultimate pit slope 1 : 1
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Example of how to obtain the
pushbacks (Cont.)
Block Model showing copper grades in %
Level
1 0.00 0.10 0.15 0.08 0.05 0.00 0.00 0.05 0.03 0.00 0.05 0.05 0.05 0.05 0.05 0.05
2 0.00 0.22 0.08 0.25 0.15 0.13 0.10 0.13 0.45 0.20 0.20 0.32 0.10 0.15 0.24 0.21
3 0.05 0.05 0.12 0.13 0.02 0.14 0.11 0.08 0.22 0.09 0.08 0.15 0.22 0.20 0.14 0.05
4 0.04 0.15 0.12 0.45 0.08 0.09 0.25 0.20 0.29 0.14 0.15 0.04 0.24 0.05 0.02 0.04
5 0.05 0.08 0.15 0.12 0.30 0.21 0.09 0.79 0.10 0.45 0.32 0.23 0.01 0.01 0.01 0.01
6 0.08 0.10 0.08 0.01 0.05 0.34 0.45 0.02 0.01 0.04 0.38 0.00 0.00 0.00 0.01 0.15
17
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Example of how to obtain the
pushbacks (Cont.)
Economic Model showing block values in $/ton
Original copper price of $1.10/lb
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50
2 -0.60 1.06 -0.60 1.65 -0.60 -0.60 -0.60 -0.60 5.61 0.66 0.66 3.04 -0.60 -0.60 1.45 0.86
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 0.96 -0.70 -0.70 -0.70 0.96 0.56 -0.70 -0.70
4 -0.80 -0.80 -0.80 5.41 -0.80 -0.80 1.45 0.46 2.24 -0.80 -0.80 -0.80 1.25 -0.80 -0.80 -0.80
5 -0.90 -0.90 -0.90 -0.90 2.34 0.56 -0.90 12.04 -0.90 5.31 2.74 0.95 -0.90 -0.90 -0.90 -0.90
6 -1.00 -1.00 -1.00 -1.00 -1.00 3.03 5.21 -1.00 -1.00 -1.00 3.82 -1.00 -1.00 -1.00 -1.00 -1.00
m c y g s P BV
B
= * * ) (
m BV =
For ore blocks:
For waste blocks:
18
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Example of how to obtain the
pushbacks (Cont.)
The floating cone algorithm was used to find
the ultimate pit limit
Pit
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 1
2 -0.60 1.06 -0.60 1.65 -0.60 -0.60 -0.60 -0.60 5.61 0.66 0.66 3.04 -0.60 -0.60 1.45 0.86 2
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 0.96 -0.70 -0.70 -0.70 0.96 0.56 -0.70 -0.70 3
4 -0.80 -0.80 -0.80 5.41 -0.80 -0.80 1.45 0.46 2.24 -0.80 -0.80 -0.80 1.25 -0.80 -0.80 -0.80 4
5 -0.90 -0.90 -0.90 -0.90 2.34 0.56 -0.90 12.04 -0.90 5.31 2.74 0.95 -0.90 -0.90 -0.90 -0.90 5
6 -1.00 -1.00 -1.00 -1.00 -1.00 3.03 5.21 -1.00 -1.00 -1.00 3.82 -1.00 -1.00 -1.00 -1.00 -1.00 6
7
The ore block left at the right cannot be mined due to slope constraints. All ore blocks are mined in the first iteration. 8
9
1 10
2 11
3 12
4 13
5 14
6 15
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Example of how to obtain the
pushbacks (Cont.)
To find a smaller pit reduce the copper price to 0.60/lb
Economic block model
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50
2 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 1.56 -0.60 -0.60 0.16 -0.60 -0.60 -0.60 -0.60
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70
4 -0.80 -0.80 -0.80 1.36 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80
5 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90 4.93 -0.90 1.26 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90
6 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 1.16 -1.00 -1.00 -1.00 0.40 -1.00 -1.00 -1.00 -1.00 -1.00
m c y g s P BV
B
= * * ) (
m BV =
For ore blocks:
For waste blocks:
20
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Example of how to obtain the
pushbacks (Cont.)
The floating cone algorithm was used to find
the limit of the pit at $0.60/lb
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50
2 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 -0.60 1.56 -0.60 -0.60 0.16 -0.60 -0.60 -0.60 -0.60
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70
4 -0.80 -0.80 -0.80 1.36 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80 -0.80
5 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90 4.93 -0.90 1.26 -0.90 -0.90 -0.90 -0.90 -0.90 -0.90
6 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 1.16 -1.00 -1.00 -1.00 0.40 -1.00 -1.00 -1.00 -1.00 -1.00
1
2
3
4
5
6
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Example of how to obtain the
pushbacks (Cont.)
To find an intermediate pit reduce the copper price to $0.86/lb
Economic Block Model
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50
2 -0.60 0.11 -0.60 0.57 -0.60 -0.60 -0.60 -0.60 3.67 -0.60 -0.60 1.65 -0.60 -0.60 0.42 -0.60
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70
4 -0.80 -0.80 -0.80 3.47 -0.80 -0.80 0.37 -0.80 0.99 -0.80 -0.80 -0.80 0.22 -0.80 -0.80 -0.80
5 -0.90 -0.90 -0.90 -0.90 1.04 -0.90 -0.90 8.63 -0.90 3.37 1.35 -0.90 -0.90 -0.90 -0.90 -0.90
6 -1.00 -1.00 -1.00 -1.00 -1.00 1.56 3.27 -1.00 -1.00 -1.00 2.18 -1.00 -1.00 -1.00 -1.00 -1.00
22
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Example of how to obtain the
pushbacks (Cont.)
To find an intermediate pit reduce the copper price to $0.86/lb
Economic Block Model
1 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 Pit
2 -0.60 0.11 -0.60 0.57 -0.60 -0.60 -0.60 -0.60 3.67 -0.60 -0.60 1.65 -0.60 -0.60 0.42 -0.60 1
3 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 -0.70 2
4 -0.80 -0.80 -0.80 3.47 -0.80 -0.80 0.37 -0.80 0.99 -0.80 -0.80 -0.80 0.22 -0.80 -0.80 -0.80 3
5 -0.90 -0.90 -0.90 -0.90 1.04 -0.90 -0.90 8.63 -0.90 3.37 1.35 -0.90 -0.90 -0.90 -0.90 -0.90
6 -1.00 -1.00 -1.00 -1.00 -1.00 1.56 3.27 -1.00 -1.00 -1.00 2.18 -1.00 -1.00 -1.00 -1.00 -1.00
The ore block left at the right cannot be mined due to slope constraints. All ore blocks are mined in the first iteration.
1
2
3
4
5
6
23
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Example of how to obtain the
pushbacks (Cont.)
The three pits shown in together
1 $0.60/lb
2
3
4
5
6
$1.10/lb
$0.86/lb
24
A
B
C
D
E
F
Design Phase Limits
Ultimate Pit
Ore
Rock Type I
Rock Type II
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Hypothetical Deposit and Pit
Development Sequence
25
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Tonnage Inventory by Phase
Waste Ore Waste Ore Waste Ore
5100 15,000
5050 32,000
5000 50,000 2,000 4,000
4950 38,000 18,000 15,000
4900 15,000 20,000 18,000
4850 4,000 10,000 15,000 22,000
4800 3,000 9,000 4,000 9,000 16,000
4750 2,000 8,000 3,000 9,000 3,000 10,000
4700 2,000 7,000 5,000 20,000
4650 1,000 6,000 8,000 22,000
4600 3,000 17,000
4550 1,000 7,000
Total 159,000 27,000 65,000 31,000 95,000 76,000
Thousands of tonnes
Phase "A" Phase "B" Phase "C"
Bench
26
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Summary by Phase
Waste above Waste on Ore Cumulative
first ore ore Ore Life* ore life
bench benches (years) (years)
A 150,000 9,000 27,000 1.08 1.08
B 55,000 10,000 31,000 1.24 2.32
C 75,000 20,000 76,000 3.04 5.36
D 128,000 38,000 125,000 5.00 10.36
E 182,000 49,000 151,000 6.04 16.40
F 220,000 45,000 130,000 5.20 21.60
Total 810,000 171,000 540,000 21.60
*Assuming an annual milling rate 0f 25,000 tonnes
Phase
Thousands of tonnes
27
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Hypothetical Deposit and Pit
Development Sequence
Time (Years)
10
ore deliveries
required to sustain
Minimum waste stripping
Time (Years)
Pre-production
(
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0
500
750
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D
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50
0
1000
100
150
B
A
C
D
It requires 128 M tonnes stripping
Phase "D" life = 5 years
Phase "D" ore = 125 M tonnes
-10 -5
200
250
5 0
F
200 M
25 M
75 M
50 M
- Pre-production period
A proposed stripping
- Production period
50 M tonnes / year
4 yrs. Yr 1
schedule
E
4
2-3
E
F
20 15
stripping schedule
due to the proposed
Earlier ore development
25
Period
-10 -5 0 5 10 15 20 25
schedule
4 yrs. Yr 1
- Pre-production period
A proposed stripping
50 M tonnes / year
- Production period
B
A
C
D
25 M
50 M
200 M
75 M 4
2-3
0
500
250
-10 -5 0 5 1 2 3 4
25
50
50
75
1
50
Pre-production
Period
200
B
A
C
D
0
50
100
-10 -5 0 5
1
.
0
8
1
.
2
4
3
.
0
4
27
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76
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Time (Years)
10
ore deliveries
required to sustain
Minimum waste stripping
Time (Years)
Pre-production
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500
750
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50
0
100
150
B
A
C
D
It requires 128 M tonnes stripping
Phase "D" life = 5 years
Phase "D" ore = 125 M tonnes
-10 -5 5 0
200 M
25 M
75 M
50 M
- Pre-production period
- Production period
50 M tonnes / year
4 yrs. Yr 1
E
4
2-3
E
stripping schedule
due to the proposed
Earlier ore development
Period
-10 -5 0 5 10
1 2 3 4
75
50
50
25
Cushion = 0.66 years
Cushion = 0.80 years
Cushion = 0.34 years
5.00
3.04
1.24
1.08
27
31
76
125
($374M)
Period 1
$46M
Period 2
$42M
Period 3
$63M
Period 5
$51M
Period 4
$65M
Period 6
$48M
Period 7 $43M
Period 8 $16M
Period 1
$81M
Period 2
$72M
Period 3
$63M
Period 5
$37M
Period 6
$32M
Period 7
$43M
Period 8
$9M
($398M)
Period 4
$61M
Period 1
$50M
Period 2
$37M
Period 3 $60M
Period 4
$50M
Period 5 $49M
Period 6
$50M
($366M)
Period 7 $52M
Period 8 $19M
($372M)
Period 1 $42M
Period 7 $57M
Period 8 $11M
Period 2
$32M
Period 3
$71M
Period 4 $51M
Period 5 $57M
Period 6 $52M
Long Term Planning and
Sequencing
Dr. Kadri Dagdelen
Colorado School of Mines
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Long Term Planning and
Sequencing
Objective is to determine the suitability of the limestone
resource for the subsequent processing by the cement plant
Life of mining and reclamation plans
Equipment Selection
Facility layout and Permitting
3
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Long Term Planning and
Sequencing
Create a geologic model
Define structural domains and stratigraphy
Chemistry
Long and short term variability
Long term reserves and average chemistry
Estimate the block chemical values
Estimate possible raw mix requirements
Quarry layout and operational plan yearly mine
plans
4
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Long Term Planning and
Sequencing
Determine mineable resource boundaries
Haul road layout
Define long term reclamation needs
5
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Midlothian Cement Quarry:
Case Study
Current production 1.8 million tons of limestone
One 50ft to 60ft bench operation
In pit crushing - 1000 ton/per hour capacity
Expand the capacity to 3.6 million tons by bringing
the second bench into production
50 percent of the production from first 50ft bench
and another 50 percent from the second bench.
%SO
3
is not very good for the limestone coming
from the second bench. Blending of these two
benches are necessary.
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Midlothian Cement Quarry:
Case Study
Quarry currently operates 10 hours per shift,
5 days per week
1000 ton per hour Krubb In Pit Crusher
2000 ft long main movable belt conveyor
with 500 ft long extension belt
Komatsu 14 and 10 cubic yard loaders
7
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Midlothian Cement Quarry:
Case Study
Determine next 50 years life of mine plans
Sequencing plan to come up with the right
blend limestone that meets the minimum of
%1.3 SO
3
requirements
Determine equipment and capital investment
needs for the next 10 years
8
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Quarry Development and
Sequencing
9
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Holnam Quarry Mining Sequence:
First Bench Development
10
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Holnam Quarry Mining Sequence:
Second Bench Development
During the First Three Years
11
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Holnam Quarry Mining Sequence:
First and Second Bench Development
12
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Holnam Quarry Mining Sequence:
First and Second Bench Development
13
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Holnam Quarry Mining Sequence:
First and Second Bench Development
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Midlothian North Area Quarry
Progress Contours Year1
15
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Midlothian North Area Quarry
Progress Contours Year 2
16
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Midlothian North Area Quarry
Progress Contours Year 3
17
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Midlothian North Area Quarry
Progress Contours Year 4
18
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Midlothian Quarry Block
Model Definition
19
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Midlothian Quarry Block
Model Definition
20
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Midlothian Quarry Sequence: One
Year Increments on Elevation 790
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Midlothian Quarry Sequence: One
Year Increments on Elevation 780
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Midlothian Quarry Sequence: One
Year Increments on Elevation 770
23
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Midlothian Quarry Sequence: One
Year Increments on Elevation 760
24
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Midlothian Quarry Sequence: One
Year Increments on Elevation 750
25
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Midlothian Quarry Sequence: One
Year Increments on Elevation 750
26
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Midlothian Quarry Sequence: One
Year Increments on Elevation 730
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Midlothian Quarry Sequence: One
Year Increments on Elevation 720
28
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Midlothian Quarry Sequence: One
Year Increments on Elevation 700
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Midlothian Quarry Sequence: One
Year Increments on Elevation 690
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Equipment Selection
Three Different Options were Evaluated:
One 15 yd3 Caterpillar 992G model loader working
with a 70 ton CAT 775D truck fleet.
One 15 yd3 Caterpillar 992G model loader working
with a 98 ton CAT 777D truck fleet.
One 11 yd3 Caterpillar 990series II model loader
working with a 70 ton CAT 775D truck fleet
31
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Loader - Truck Fleet Evaluation
and Cost Analysis Year 1
32
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Loader - Truck Fleet Evaluation
and Cost Analysis Year 2
33
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Loader - Truck Fleet Evaluation
and Cost Analysis Year 3
34
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Loader - Truck Fleet Evaluation &
Cost Analysis Haul Road Profile
35
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Loader - Truck Productivity
Calculations
Assumptions
90 % Loader and truck availability resulting
in 81 % fleet availability
92 % Operator efficiency
75 % bucket fill factor
2400 scheduled hrs
0.55 min. loader cycle time
36
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Loader - Truck Productivity
Calculations
Assumptions (Cont.)
0.1 min. first bucket dump time
0.7 min. hauler exchange time
2492 lbs/yd3 density
14 ton/pass; 5 passes per truck
2400 hours per year
37
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Equipment Productivity & Cost
Estimation
For CAT 992G
Loader - 775D Trucks
38
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Option 1: Cat 992G Loader -
775D Trucks
The truck cycle time for four different
conditions:
Year 1: 9.67 minutes
Year 2: 11.05 minutes
Year 3: 10.86 minutes
Year 7: 11.04 minutes
39
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Option 1: Cat 992G Loader - 775D
Trucks Fleet Productivity in Tons
# of 775D's Year 1 Year 2 Year 3 Year 7
1 825,332 808,107 801,532 808,669
2 1,540,565 1,524,899 1,504,316 1,525,959
3 2,111,530 2,108,190 2,070,839 2,109,657
4 2,586,695 2,644,575 2,580,165 2,644,575
40
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Option 2: Cat 992G Loader -
777D Trucks
The truck cycle time for four different
conditions
Year 1: 12.16 minutes
Year 2: 12.63 minutes
Year 3: 12.42 minutes
Year 7: 12.27 minutes
41
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Option 2: Cat 992G Loader -
777D Trucks
# of 777's Year 1 Year 2 Year 3 Year 7
1 945,127 903,286 920,644 934,223
2 1,731,661 1,667,466 1,695,274 1,715,981
3 2,285,652 2,234,289 2,254,834 2,275,379
4 2,737,983 2,714,476 2,724,550 2,731,266
42
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Operating Cost for the Loader
and Trucks
Model Operating Cost
CAT 992G $125/hr
CAT 775 D $63/hr
CAT 777 $82/hr
43
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Operating Cost for the Loader
and Trucks
Model Operating Cost
CAT 992G $125/hr
CAT 775 D $63/hr
CAT 777 $82/hr
44
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Loader - Truck Capital
Requirements
Model Purchase Price
CAT 992G $1,270,000
CAT 775 D $740,000
CAT 777 $1,060,000
45
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Loader - Truck Capital
Requirements
At the start of the production from bench
two, $2.1 M is needed to purchase 1 Cat
992G Loader and 775D truck.
In year 2, additional $1.5M is needed to
purchase 2 more Cat 775D trucks.
For the Cat 992G loader, Cat 777D truck
combination, $2.35M and $2.12M would be
needed at the start and beginning of year 2.
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Loaders and Shovels
Comparative Analysis
Dr. Kadri Dagdelen
Colorado School of Mines
Source: J. Wiebmer, Caterpillar Incorporated
2
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Hydraulic Shovel Applications
Hard Digging
Poorly shoot material
Selective loading
Wet, jagged floor
Pitching floor
Single face operation
3
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Hydraulic Shovel Selection
Considerations
Multiple loading fronts
Fast cycle time (25 to 30
seconds)
Low capital costs
Moderate mobility
Highly productive
4
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Hydraulic Shovel
Favorable Site Conditions
Single loading face
Tight digging materials
Face height equals to stick
length
Some will dig below and
above
Soft floors
5
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Hydraulic Shovel
Unfavorable Site Conditions
Requires clean-up support
Excessive tramming
High benches
6
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Wheel Loader Applications
Mobility and versatility
Well blasted material
Low pile profile
Smooth, level floor
No clean-up support equipment
Short mine life
7
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Wheel Loader
Selection Considerations
Highly mobile/versatile
High bucket fill factors
Low capital costs
No clean-up support
8
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Wheel Loader
Favorable Site Conditions
Good loading materials
Lower face profile
Multi-face loading
9
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Wheel Loader
Unfavorable Site Conditions
Poor underfooting (tire cost)
Soft floor
Tight load area
10
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Comparison Shovels vs.
Loaders
Hydraulic Shovel Wheel Loader
% Operating Weight
as bucket payload
8-11% 18-21%
Cost/CY of capacity
($1000)
100-120 60-80
Economic life (1000
hours)
30-60 30-60
Operating Cost/ton 0.07 - 0.12 0.07 - 0.12
Market Share (1980) 15% 85%
Market Share (1990) 30% 70%
11
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Mobility
0 200 400 600 800 1000 1200 1400
Hydraulic
Shovel
Wheel Loader
Feet Traveled in One Minute
12
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Breakout Force
For similar bucket capacities, a hydraulic shovel and a wheel
loader will show approximately the same breakout force.
However, because the difference in bucket shapes, the
shovel can apply twice as much force.
The shovel can apply the force over its reach of the face.
13
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Bucket Fill Factors
Hydraulic Front Shovels 80-85%
Hydraulic backhoes 100%
Caterpillar wheel loaders 100-115%
Other wheel loaders 85-95%
14
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Power and Fuel
Hydraulic shovels burn less fuel per hour
than wheel loaders.
But considering tons moved per gallon
burned, wheel loaders and hydraulic shovel
compare very favorable to each other.
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Two-to-Three Minute Rule
A truck does not make money when its tires
are not running.
Truck load times should be in the two to
three minute range.
Loading times are reduced by the use of the
right loading tool, better rock fragmentation,
operator training, and face supervision.
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Loading Tool Preferences
85% 15%
60% 40%
50% 50%
Region
North & South America
Europe, Africa, Middle East
Australia, Far East
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Hydraulic Shovel Production
Range
Operating Weight
(Tons)
Production Range
(tons/hour)
140 800 - 1,100
230 1,100 - 1,800
340 1,600 - 2,400
620 3,000 - 4,000
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Wheel Loader Production
Range
Model
Production Range
(tons/hour)
Cat 994 2,700 - 3,100
Cat 992D 1,300 - 1,700
Cat 988B 700 - 900
Cat 980F 500 - 700
Cat 966F 300 - 500
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Conclusions
No two pits are the same.
There is a wide array of loading tools to meet
operational needs.
Analysis, not luck, will yield the winner for
your operation
Types of Mobile Surface Mining Equipment
Dozers
Scrapers
Trucks
Front-end Loaders
Hydraulic Excavators
Electric Shovels
Draglines
Bucket Wheel Excavators
Blast Hole Drills
Other Bulk Material Handling Systems
Surface and Underground Mining
Belt Conveyors
Rail Haulage
Types of Underground Mining Equipment
Blast Hole Drills
Roofbolters
Slushers
Overshot Loaders
Load-Haul-Dump Units (LHDs)
Trucks
Belt Conveyors
Rail Transportation
Hoisting Systems
Loading & Hauling Equipment
Loading Hauling Combination Loading Hauling Combination
Rubber Wheel
Front End
Loader
Trucks
Loader
Scrapers
Front End
Loader
Trucks
Load Haul
Dump
Bulldozers
Back Hoe Graders
Over Shot
Loaders
Crawler
Track
Loader
Bulldozers
Track
Loaders
Hydraulic
Shovel
Bucket Wheel
Excavator
Hydraulic
Shovel s
Cable
Shovel
Over Shot
Loaders
Drag Line
Back Hoe
Rail
Conventional
Rail Cars
Over Shot
Loaders
Mine Cars/
Locomotives
Other
Walking
Drag Line
Pneumatic/
Hydraulic
Pneumatic/
Hydraulic
Slusher
Dredge Conveyer Conveyers
Skips
SURFACE UNDERGROUND
Comparative Equipment Size
Transport Distances
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Dozers
The dozer, or bulldozer is a crawler or wheel driven tractor with a
front mounted blade for digging and pushing material.
It is used to both excavate and transport material over short
distances.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Dozer Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Typical Dozer Production Cycle
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Land clearance: The dozer can be sized to provide sufficient
power, and with proper operating techniques can move most
obstacles in its path, including boulders, trees, etc. This makes it the
primary tool in clearing land prior to mining. Special blades are
available for this application.
Stripping overburden: Some mine plans utilize scrapers and
dozers for overburden removal. The dozer, in these operations,
moves a portion of the overburden by pushing it over the highwall.
Grading and leveling mining benches: Draglines, electric shovels
and wheel excavators require a flat work surface free of boulders;
dozers are commonly used in this clean-up operation.
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Feeding a belt conveyor: The dozer can be effectively employed to
push material into a "belt loader" which in turn feeds a belt
conveyor.
Trapping for loaders: The efficiency of small to medium sized
loading equipment can be improved by using a dozer to rip and
position material to be loaded.
Reclamation: Dozers are a basic tool for leveling and recontouring
mined out land. Special blades and special wheel models are
available for this type of work.
Fait-Allis 41B with single shank ripper leveling dragline spoil piles.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
CAT D11, Black Thunder Mine, Wyoming, Spring 2002
CAT D11, Black Thunder Mine, Wyoming, Spring 2002
CAT D11, Black Thunder Mine, Wyoming, Spring 2002
Scrapers
The scraper is a rather unique machine because of its ability to
excavate material in thin horizontal layers, transport the material a
considerable distance, and then discharge it in a spreading action.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Scrapers
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Scraper Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Scrapers
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Topsoil removal: The scraper is broadly used in those activities
which involve selective removal of horizontal horizons and
transport to storage.
General reclamation: The scraper is applied in the rough leveling
and contouring phase and for replacement of the upper horizons
prior to revegetation.
Ore/Coal removal (with or without ripping): Scrapers are
employed in cases where the seams are thin and other types of
excavating equipment are inefficient.
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Overburden removal (with or without prior ripping): These can
be either initial cuts or prebenching operations for other excavating
equipment, or complete overburden removal.
The latter case requires a well planned circular operational layout to
minimize travel distances and utilize downgrade loading and
dumping.
Typically, operations of this type use dozers for preshaping,
supplementary material transport and push-pull scraper
loading techniques.
x
Terex S-24B tandem scraper self loading overburden.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Trucks
A truck is simply a mobile piece of equipment for hauling material.
It is often an integral part of the material handeling activities in the
mine for either transport of ore from the face to processing or
stockpile, or for transport of overburden to spoil.
Trucks
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Truck Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
These trucks are used exclusively for material transport. The
material can be just about anything but, in mining, the broad
classifications are:
Overburden
Ore/Coal
When trucks are used to haul overburden, the mine normally has an
open pit or area mine plan with dumping off of spoil benches.
Trucks can be used to haul ore/coal to a hopper or stockpile, in
virtually any surface mine plan.
Dumping to stockpile is generally done in shallow lifts.
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Bottom dump units, driving over a grizzly, are used to feed a
hopper.
A back-in hopper station is utilized with rear dumps.
In some cases the trucks carrying coal directly to a nearby power
plant will on the return trip transport ash back into the pit for burial.
Large Haul Trucks, Cripple Creek Victor, Colorado, Fall 2002
Large Haul Truck, Cripple Creek Victor, Colorado, Fall 2002
Wabco 3200B, 250 ton, three axel rear dump.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Rimpull three axel bottom dump coal hauler.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
(World Mining Equipment, September 2002)
(World Mining Equipment, March 2003)
Front-End Loaders (FEL)
The front-end loader is a wheel or crawler mounted tractor with a
front mounted bucket and is utilized in excavating, loading, and
transporting material.
Because of its versatility, the front end loader is found in a wide
variety of mining applications.
FEL Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
(Source: Surface
Mining Equipment,
Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
The wheel loader is a competitive excavator, loader and transporter.
It competes with shovels, dozers and, over short transport distances,
with scrapers and trucks.
Being quite fast, mobile, and versatile, it can be used in a number of
mine applications.
Because the FEL has generally not been considered to have the
digging ability of a shovel in consolidated digging faces, it finds
many of its applications in softer formations, coal/ore and
stockpile work.
The larger sizes are more rugged and powerful, and are proving
themselves in difficult digging.
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
The primary mine applications are the following:
Loading and/ or transporting topsoil
Loading and/ or transporting coal/ ore from the digging face
Loading and/or transporting coal/ore from stockpile
Loading and/or transporting overburden and waste
In all of the above loading can be into trucks, hoppers, railroad cars,
or belt loaders.
Transport can be for distances up to 1000 feet on the level or grades
up to 12%.
CAT 994D loading a haul truck
Heavy Equipment, John Tipler, 2000
Hydraulic Excavators
Hydraulic shovels, primarily a European development, have
proven themselves on construction projects.
The have now reached a level of
reliability and have increased in
size to the point where units are
common in surface mining
applications.
Digging Profile
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Hydraulic Excavator Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
Hydraulic machines are employed in overburden removal, coal/ore
loading or, in the smaller sizes, for utility work generally related to
mine drainage systems.
The hydraulic shovel is primarily an excavating and loading device.
While it can swing and/or propel to transport material short
distances, it is used almost exclusively to load trucks or, in some
cases, hoppers/crushers.
Hoes have similar uses to shovels. However, their below grade
digging capability makes them particularly suited to tasks such as
trenching or excavating under water.
Hoes are utilized in mining when floor conditions warrant keeping
machines off the bottom of the pit.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Typical Hydraulic Shovel Production Cycle
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Typical Hydraulic Hoe Production Cycle
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Heavy Equipment, John Tipler, 2000
CAT 5230 hydraulic excavator loading a haul truck
Electric Shovels
The shovel is one of the oldest types of excavating equipment.
With time, the machines grew in capacity , steam power was
replaced by gas, then diesel fuel and finally, in the larger units used
in mining today, by electricity.
In recent years, smaller shovels below 5 cubic yards in capacity are
being replaced by front-end loaders and hydraulic machines.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Steam Shovel Mining Virginia Minnesota, circa 1910
Electric Shovels
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Electric Shovel Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Electric shovels generally have the same applications as hydraulic
shovels although the electric units are considered to be particularly
suited to more severe digging conditions.
They are available in larger sizes and have a proven service record
in multi-shift mining operations. Electric shovels also tend to have
longer range capabilities.
These shovels are applied in benching operations in either
overburden or coal/ore.
Discharge is commonly into trucks but can also be into mobile
hoppers.
The larger models and/or those equipped with long range front ends
may be applied in direct spoiling overburden removal operations.
Loading Plans
(Source: Surface Mining Equipment, Martin, et. al., 1982)
The Bucyrus-Erie 1850-B
Brutus with 90-yard dipper
at Pittsburg and Midway
Coal Mining Company in
1961.
This shovel is currently
maintained by a
preservation group.
Extreme Mining Machines, Keith Haddock, 2001
The last stripping shovel produced was this 105-yard Marion 5900,
sold in 1971 to Amax Coal Companys Leahy Mine in Illinois.
Extreme Mining Machines, Keith Haddock, 2001
Draglines
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Draglines
Through the years, the dragline has remained a unique
excavating tool and has experienced a dramatic growth in
maximum size.
With its long reach and ability to dig to substantial depths below
itself, it has had broad applications on many irrigation
projects and, in more recent years, in surface mining.
The hydraulic hoe has, to some extent, replaced the smaller sized
diesel draglines but the larger diesel and/ or electric machines
retain their popularity.
Draglines, along with the bucket wheel excavators, are the
largest pieces of mobile equipment currently manufactured.
Draglines
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Dragline Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
The worlds largest operating dragline (one of two), the Bucyrus
2570-WS with 160 yard bucket at the Black Thunder Mine, WY.
Extreme Mining Machines, Keith Haddock, 2001
The 100 yard Marion 8800 loading in Kentucky
Extreme Mining Machines, Keith Haddock, 2001
Bucyrus Internationals Big Muskies 220-yard bucket easily
accommodates a high school band. Photo taken in 1969.
Extreme Mining Machines, Keith Haddock, 2001
Bucket Wheel Excavators
Wheel excavators dig with a rotating bucket wheel that discharges
the material onto a belt conveyor.
The material is transported on this conveyor or a series of belt
conveyors until it is discharged from the machine.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Bucket Wheel Excavators
Wheel excavators have been used, in limited numbers, for
continuous excavation of unconsolidated materials starting back in
the mid 1920's.
Interest in the machines has been much greater overseas with the
Germans, in particular, performing extensive application studies and
machine development.
Overall use within the United States has been very limited.
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Bucket Wheel Excavator Powered Functions
(Source: Surface Mining Equipment, Martin, et. al., 1982)
Applications
(Source: Surface Mining Equipment, Martin, et. al., 1982)
There are currently very few bucket wheel excavators in service in
the US. They have been used for:
Overburden excavation with direct spoiling
Overburden excavation with conveyor or truck loading,
prestripping for a large dragline or stripping shovel
Large earthmoving projects
(medium size or small fixed wheels)
Coal excavation with conveyor or truck loading
(medium size or small fixed wheels)
Topsoil removal and Reclamation leveling (small fixed wheels)
Rhineland Lignite Mine, Germany
www.mining- technology.com
World Mining Equipment, September 2002
Frderanlagen Magdenburg (FAM) bucket wheel excavator.
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Loading Equipment
Dr. Kadri Dagdelen
Colorado School of Mines
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Excavators
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Hydraulic Shovels
Specifications
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Excavator Specifications
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Digging Envelopes
Front Shovels
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Curl and Crowd Forces
Front Shovels
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Digging Envelopes
Excavators
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Excavators Bucket
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Loaders
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Breakout Force
Loaders
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Breakout Force fromRackback
Loaders
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Carry Position
Loaders
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900 Series II Dimensions
Loaders
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900 Series II Dimensions
Loaders
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Specifications
Loaders
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Specifications
Loaders
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Travel Time Loaded
Loaders
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Travel Time Empty
Loaders
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Excavator Production
Calculations
A standard formula for cyclic excavators can be
employed:
O = B x BF x D x HS x J x A x 3,600 seconds
(1+S) C hour
Bucket Load Buckets/Period
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Bucket Load
B x BF x D/(1 + S) < Recommended
Operating Capacity
With wheel loaders:
50% of full turn static tipping load for
a specific bucket type
With front shovels:
Maximum load
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Bucket Load
Bucket weight depends on size, duty and
ground engaging tools
Bucket size depends on reach
Bucket size (B) based on 2:1 heap
Bucket fill (BF) decreases with increasing
material consolidation
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(CAT)
Wheel Loader Bucket Fill
Factors
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Weight of Materials
(CAT)
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Bucket Load
% Swell increases and load factor decreases
with degree of consolidation
In place density (D) important and should be
a measured number
Loose density (D/(1 + S)) important and
should be a measures number
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Buckets/Period
Average cycle time (C) based on standard
cycle time adjusted for:
Material
Material fragmentation
Material size distribution
Pile configuration
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Buckets/Period
Average cycle time (C) based on standard
cycle time adjusted for:
Consistency of operation
Swing angle (Shovels)
Travel distance (Loaders)
Operator ability
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Wheel Loader Cycle Time
Average cycle time for truck loading
increases with machine size
.60-.70 15-21
.55-.60 7.5-11
.50-.55 5.0-7.5
.45-.50 1.7-4.5
Cycle time (min) Loader Size (cy)
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Cycle Time
Hours scheduled (HS) usually a given, based
on management preferences and required
output
Longer shifts appear to be trend to minimize
start-up, shut-down impact
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Cycle Time
Job factor (J) depends on:
Truck assignment
Management issues
Job layout (Blending, etc.)
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Cycle Time
Mechanical availability (A) depends on:
Material
Management/suppliers
Age of machine
Schedule
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Loading Methods
Loading method impacts cycle time and job factor
Wheel loaders
Y pattern used with machine digging point left to right
Truck spotting location important
With a limited truck fleet and excess loader capacity,
staggered and chain loading can be utilized
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Loading Methods
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Loading Methods
(Mining Magazine)
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Shovels:
Double Back-Up
Options include
Double back-up
Single back-up
Drive-by
Modified drive-by
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Shovels:
Double Back-Up
Trucks loaded on both sides
Average swing angle reduces
Clean-up allowed on one side while loading
continues
Moves required as shovel penetrates bank
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Shovels:
Double Back-Up
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Shovels:
Double Back-Up
Requires
balance of
move time
versus
cycle time
(Oslund and Russell)
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Shovels:
Single Back-Up
Truck loaded on one side
Larger swing angle
Potential clean-up delays
Potential spotting delays depending on
excavator first cycle
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Shovels:
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Shovels:
Drive-By
Used with tractor trailers
Large swing angles
Potential clean-up delays
Minimal amount of shovel moves
Blending problems
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Shovels:
Drive-By
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Shovels:
Modified Drive-By
Truck backs in to reduce swing angle
Potential clean-up delays
Minimal amount of shovel moves
Blending problems
Depth of cut effects cycle time and move
time
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Shovels:
Modified Drive-By
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Modified Drive-By:
Optimum Width
Production Estimating of Material
Movement With Earth Moving Equipment
There are five factors which need to be considered in preparing a
production estimate of earthmoving equipment for any particular job.
These factors include:
1. Earthmoving Cycle Components
2. Job Efficiency Factors
3. Material Weights & Swell Factors
4. Vehicle Payloads
5. Selection of Equipment
1. Earthmoving Cycle Components
The productivity cycle of any earthmoving job may be separated
into six components:
1. load,
2. haul or push,
3. dump,
4. return,
5. spot,
6. and delay.
Each of these components is responsible for a certain percentage of the
total cycle time.
The factors affecting these components will determine the time each
component will require.
Load Factors
Performance ability of unit
Hauling distance
Haul road condition
Grades
Miscellaneous factors affecting haul speed
Haul/Push Factors
Size and type of loading machine
Type & condition of material to be loaded
Capacity of unit
Skill of the loading operator
Dump Factors
Performance ability of unit
Return distance
Haul road condition
Grades
Miscellaneous factors affecting return speed
Return Factors
Destination of material -Hopper, Over Bank, Fill, Stockpile, etc.
Condition of dump area
Type & maneuverability of hauling unit
Type & condition of material
Spot Factors
Time spent waiting on loading unit or pusher
Time spent waiting to dump at crusher
Delay Factors
Maneuverability of unit
Maneuver area available
Type of loading machine
Location of loading equipment
2. Job Efficiency Factors
An estimate must indicate sustained, or average earthmoving production
over a long period of time.
Overly optimistic hourly production estimates will result in failure to
maintain forecasted production, and an insufficient number of units
assigned to the job.
It is necessary to allow for the unavoidable delays encountered on all
operations such as night operating, shovel moving, blasting, weather,
traffic, shutdowns, or for factors such as management and supervision
efficiency, operator experience, proper balance of auxiliary equipment
such as tamping roller, pusher or spreader bulldozers, proper crusher
capacity, etc.
2. Job Efficiency Factors
The maximum productivity of an earthmover should be derated to meet
actual conditions. Typical deration factors are found in the following
table:
3. Material Weights & Swell Factors
The weight of material is most often expressed in pounds per cubic yard.
Undisturbed or in place material is called
a bank cubic yard (BCY).
Material in a loose, broken, or blasted state is called
a loose cubic yard (LCY).
3. Material Weights & Swell Factors
The relationship between bank and loose cubic yards is established by
the swell factor or percent swell.
For example, the percent swell of shale is 33% indicating that one
bank cubic yard of shale will swell to 1.33 cubic yards in the loose
state.
Shale weighs 2800 pounds per bank cubic yard. At a swell factor of
0.75 (inverse of 1.33) the weight of one loose cubic yard of shale is
2100 pounds (2800 pounds * 0.75).
Note: Earthfill projects employ mechanical means such as rolling,
tamping and adding water to compress the deposited loose cubic yard
back to the state it was in the bank. This compaction may reduce the
volume of the bank cubic yard by as much as 15%.
4. Vehicle Payloads
The rated payload of hauling units is given on the specification sheets in
pounds, struck (water level) capacities and SAE capacities.
For haulers the SAE heaped capacity is for a load at a 2: 1 slope. For
scrapers the SAE heaped capacity is for a load at a 1: 1 slope.
For estimating purposes, the payload in pounds should not be exceeded.
Vehicle Payloads Should Not Be Exceeded
4. Vehicle Payloads
Loaders, scrapers and haulers all carry material in the loose condition.
To assure adequate volumetric capacity, the pounds payload should be
divided by the weight per loose cubic yard and compared to the heaped
capacity as shown below:
5. Selection of Equipment
After the estimator has examined the job requirements and operating
conditions and decided to investigate earthmoving equipment, a tentative
equipment selection will be made.
The final decision will, of course, depend on which method offers the
lowest cost per yard or ton.
In some cases, methods such as draglines, belt conveyors, etc. will also
be considered.
Example
Rock density: 11 cubic feet per short ton
Swell factor: 1.6
Shovel
Bucket capacity: 18.8 cubic yards
Digging cycle time: 30 seconds per pass
Bucket fill factor: 0.92
Truck
Load capacity: 62 cubic yards struck
88 cubic yards at 2:1 SAE
140 tons payload capacity
a) Calculate the number of passes to load the truck.
b) Calculate the total time required to load a truck.
Loading and Hauling
Fleet Productivity
Dr. Kadri Dagdelen
Source : Hrebar Lafarge 2000 Presentation
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Truck Selection
Number and type of trucks selected should
be based on overall system economics
Lowest cost fleet selected considering
operating and capital coats
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Truck Selection
Production requirement and operating
schedule
Material characteristics
Density in place and loose, swell
General size distribution, particularly maximum
and minimum sizes and percentage of total
Hardness and texture
Ease of handling
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Truck Selection
Physical and climatic conditions
Effect of altitude on engine efficiency
Effect of ambient temperature on engine cooling, tire
performance, and use of lubricants
Effect of rainfall, frost, snow, fog, etc. on road conditions
and travel
Haul road characteristics
Length, grade, and surface condition of
segment
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Truck Selection
Loading
Space and ground conditions at loading point
Type and size of loading equipment
Total availability of loading equipment
Dumping
Dumping arrangements: rear dump into hopper, drive
over hopper, edge of spoil, windrow, etc.
Space and ground condition at dump point
Total availability of down stream equipment
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Truck Selection:
Rear Dump
High horsepower to weight ratio
Deep pits, high grades, maneuverability required
high impact and rough in pit conditions.
Can be used with any type of material ( e.g.,
blocky, free flowing, etc. )
Used for dumping into hoppers or over bank or fill
Economic distance limited
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Truck Selection:
Bottom Dump
Low HP/weight ratio
Free flowing material
Dumping over hopper or in windrow
Operational advantages: Dump on the move,
More favorable tire and axle loading, high
speed hauling on level hauls
Moderate grade and long distance hauls
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Production Calculations
The prime mover delivers a force that
propels the haulage vehicle plus the load
The force the drive wheels deliver to the
ground is referred to as rimpull
This force is a function of: the torque
developed by the engine, the ratio of the
gears, and the size of the wheels
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Production Calculations
Maximum velocity is reached when rimpull
is equal to resisting forces of gravity, rolling
resistance. etc.
Horsepower x 375 x Efficiency
Available Rimpull =
Speed in MPH
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Rimpull vs. Velocity
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Rolling Resistance
Measure of the force required to overcome internal
bearing friction and the retarding effect between the
tires and the ground (i.e., tire penetration and tire
flexing).
Expressed in terms of lb/ton vehicle weight or %
vehicle weight
Haul Road Resistance can be estimated by:
RR = 2%+1.5% per inch of tire penetration
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Rolling Resistance Factors
TYPICAL ROLLING RESISTANCE FACTORS
Various tire sizes and inflation pressures will greatly reduce or increase the rolling resistance. The
values in this table are approximate, particularly for the track and track+ tire machines. These values
can be used for estimating purposes when specific performance information on particular equipment
and given soil conditions is not available See Mining and Earthmoving Section for more detail:
ROLLING RESISTANCE, PERCENT`
Tires Track Track
UNDERFOOTING Bias Radial ** +Tires
A very hard, smooth roadway, concrete, cold asphalt
or dirt surface, no penetration or flexing 1.5%* 1.2% 0% 1.0%
A hard; smooth, stabilized surfaced roadway
without penetration under load; watered; maintained 2.0% 1.7% 0% 1.2%
A firm, smooth, rolling roadway with dirt or light
surfacing, flexing slightly under load or undulating,
maintained fairly regularly, watered 3.0% 2.5% 0% 1.8%
A dirt roadway, rutted or flexing under load; little
maintenance, no water, 25 mm (1) tire penetration
or fl exing 4.0% 4.0% 0% 2.4%
A dirt roadway; rutted or flexing under load; little
maintenance, no water, 50 mm (2) tire penetration
or flexing 5.0% 5.0% 0% 3.0%
Rutted dirt roadway, soft under travel, no
maintenance, no stabilization 100 mm (4) tire
penetration or flexing 8.0% 8.0% 0% 4.8%
Loose sand or gravel 10.0% 10:0% 2% 7.0%
Rutted dirt roadway, soft under travel, no
maintenance, no stabilization, 200 mm (8) tire
penetration and flexing 14.0% 14.0% 5% 10:0%
Very soft, muddy, rutted roadway, 300 mm (12)
tire penetration, no flexing 20.0% 20.0% 8% 15%

*Percent of combined machine weight.
**Assumes drag load has been subtracted. to give Drawbar Pull for good to moderate conditions.
Some resistance added for soft conditions. (CAT)
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Grade Resistance
Force required to overcome gravity when moving
vehicle uphill. Expressed in % vehicle weight (adds
power to vehicle downhill).
Percent Grade = Vertical rise or drop (ft) x 100
Horizontal Distance (ft)
e.g., 60 ft rise in 1,000 ft, Grade = 60/ 1,000 x 100 = 6%
Horizontal Distance =
(Horizontal distance
2
+ vertical distance
2
)
1/2
e.g., (1,000
2
+60
2
)
1/2
= 1,001.8 ft
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Weights and Traction
Weights: determines the force required to propel
vehicle.
Function of vehicle weight, rated capacity (CY), and
density of material hauled, number of passes of
excavator
Traction: force deliverable can be limited by
traction conditions
Usable rimpull is a function of road surface and weight
on the drive wheels
Usable Rimpull =
Coefficient of Traction x Weight on Drive Wheels
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Coefficient of Traction Factors
(CAT)
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(CAT)
Altitude Deration
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Speed Limits
Speed Limits: limits on curves, in pit, and on
main haul roads
Curves based on radius and super elevation
In pit, ramp, and main haul roads, the speed limit
depends on haul road width and conditions
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Acceleration, Deceleration,
Operator
Speeds obtained from performance curves indicate
maximum velocity under optimum conditions on a
given profile.
These speeds must be corrected for acceleration,
deceleration, and operator performance to yield
reasonable haul and return times.
F=Ma Simulation utilized to account for acceleration and
deceleration
Time studies indicate that simulated haul times are less
than actual haul times
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Tires
Limit capability of machine to perform by
limiting load and speed
Ton-mile-per-hour ratings should not be
exceeded and depend on:
Weight (Flex/revolution)
Speed (Flexes/period)
Ambient Temperature
Road Surface Temperature
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Tires
TMPH = Average Tire Load x Average Speed for Shift
Average Tire Load = Empty Tire Load + Loaded Tire Load (tons)
2
Average Speed = Round Trip (mi) x Trips/Shift
Total Hours (hr)
Limits by tire type and limits may also include maximum
speed
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Ton-MPH Data
(CAT)
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Estimating Cycle Time
Limiting factors are considered in developing an
estimate of the cycle time. The cycle time consists
of variable or travel time (haul and return time) plus
the fixed time (load, dump, and spot times).
Travel time (haul and return times) is a function of
payload, vehicle weight, HP/weight ratio, haul road
segment lengths, rolling and grade resistance, speed
limits, etc.
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Estimating Cycle Time
Loading time is a function bucket size, fill factor,
excavator cycle time, loose material density, and
truck capacity
Other fixed times depend on loading method and
dump configuration
Spot and maneuver in loading area (typically .6-.8 min)
Dumping (typically 1-1.2 min)
Unit production calculated considering truck
payload, truck cycle time, hours per shift, and
operating efficiency
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Unit Production
Unit Production (Tons/shift)
Truck payload / Truck cycle time x Operating
efficiency x Hours/shift
Units required are a function of total shift tonnage
requirements and unit production and mechanical
availability
Units Required Operating
Tons required/shift / Unit truck production/shift
(Usually rounded up)
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Unit Production
Units Required Purchased
Units Required Operating (Not rounded) /
Mechanical availability
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Match Factor and System
Production of the excavator truck system
dependent on the number of trucks assigned
to the excavator
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Allocations based on at least two approaches:
Number of trucks = Truck cycle time / Load time
(excluding first pass)
This calculation approach reduces excavator delays
Number of trucks =
Truck cycle time
Load time (excluding first pass) + Truck exchange time
Match Factor and System
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Match Factor Approach
Match factor approach reduces truck delays
compared to first method. For example:
L o a d e r c y c l e t i m e . 5 m i n
N o . o f p a s s e s 7
E f f e c t i v e l o a d i n g t i m e ( 7 - 1 ) x . 5 3 . 0 0 m i n
T r u c k s p o t t i m e ( e x c h a n g e t i m e ) 1 . 3 0 m i n
H a u l , d u m p a n d r e t u r n 1 2 . 7 1 m i n
T r u c k c y c l e t i m e 1 7 . 0 1 m i n
N o . T r u c k s ( 1 7 . 0 1 / 3 . 0 0 ) 5 . 6 7
N o . T r u c k s ( 1 7 . 0 1 / ( 3 . 0 0 + 1 . 3 0 ) ) 3 . 9 6
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System Production
System production must consider number of trucks,
unit production and excavator availability.
System production
Number of truck/shift x Unit production (Tons/shift)
x Excavator availability
Complexity of calculations and variability of times
leads to use of fleet production simulators such as
FPC and TALPAC
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The End
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TRUCK SELECTION AND
PRODUCTION CALCULATIONS
Dr. Kadri Dagdelen
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Wheel Loader Production
Calculations
Example:
Calculate the output in tons/hr of a 990 Wheel
Loader with a 11cy bucket with .55 min. cycle time
and 95% bucket fill factor loading material with
3100 lbs. per LCY.
Assume 85% mechanical availability and 83.3% job
factor.
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Wheel Loader Production
Calculations (Cont.)
Equation to estimate the production per hour:
O = BC*BF*D*MA*JF*3,600sec
(1+SF)*CT hour
Where,
O =Production, tons/hr
BC=Bucket Size, CY (Usually heaped at 2:1)
BF =Bucket Fill Factor, %
D =In Place Density, tons/CY
MA=Mechanical Availability, %
JF =Job Factor, %
SF =Material Swell, %100
CT =Average cycle time, seconds
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Wheel Loader Production
Calculations (Cont.)
Solution:
O = 11*0.95*1.55*0.85*0.833*3,600sec
33sec
= 1252 tons/hr
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Loader-Truck Production
Calculations
Example:
CAT775 truck (65ton) is loaded with a 11.0CY 990
loader with 0.55min cycle time with 95% fill factor.
For truck cycle time, use the following table.
Determine the number of trucks needed for the loader and
the total production per hour.
0.6min Spot
1.8min Return
1.0min Dump
3.8min Haul
Truck cycle time
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Loader-Truck Production
Calculations (Cont.)
Tons / cycle = 11CY/cycle * 0.95*3100lb/cy / 2000lb
= 16.2T/cycle
# of cycles/truck = 65T / truck / 1 cycle/16.2T
= 4 cycles
Loading time = (4-1) cycles * 0.55min / cycle = 1.65 min
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Loader-Truck Production
Calculations (Cont.)
Cycle time
1.7min Load
0.6min Spot
1.8min Return
1.0min Dump
3.8min Haul
Total Cycle time 8.9min
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Loader-Truck Production
Calculations (Cont.)
Number of Trucks/ Loader
No. of Trucks = Truck cycle time / Load time
= 8.9 min / 1.65 min
= 5.4 trucks
(Assume 6 trucks)
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Loader-Truck Production
Calculations (Cont.)
Total Production
Assume 50 min / hour, and 85% availability
65T/cycle*1cycle/8.9min*50min/hr*0.85/unit = 312T/hr
Total Production = No. of trucks * tons/hr unit
= 5.4 trucks * 312T/hr per truck
= 1685 tons/ hr
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Loader-Truck Production
Calculations
Example:
A quarry works with CAT769D flat floor trucks (Max
payload 41T, Engine+-450hp) that is loaded by 8cy loader.
The material density is 2800lb/LCY and the quarry is located
at the sea level, sending material at 260tons/ hour to the
crusher.
Calculate truck loading time, productivity, and number or
trucks required.
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Loader-Truck Production
Calculations (Cont.)
Example (Cont.):
Loader data:
Capacity: 8cy
Fill factor: 80%
Cycle time: 0.5 min/pass
Mechanical availability: 88%
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Loader-Truck Production
Calculations (Cont.)
Example (Cont.):
Truck cycle time data:
Spot time: 0.8 min
Dump time:1.5min
Truck mechanical availability: 85%
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Loader-Truck Production
Calculations (Cont.)
Example (Cont.):
Road profile:
4
2
4
Rolling
resistance (%)
0
8
0
Grade (%)
45
20
45
Speed limit
(km/hr)
152 3
762 2
122 1
Length (m) Segment
Road condition: Firm
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Loader-Truck Production
Calculations (Cont.)
Tons / cycle = 8CY/cycle * 0.8*2800lb/cy / 2000lb
= 9T/cycle
# of cycles/truck = 41T / truck / 1 cycle / 9T
= 4.6 cycles (5 cycles)
Loading time = (5-1) cycles * 0.5min / cycle = 2.0 min
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Loader-Truck Production
Calculations (Cont.)
Haul Speed:
Segment1
Total Resistance = 4%
Max speed = 42km/h
< Speed limit (45km/hr)
42
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Loader-Truck Production
Calculations (Cont.)
Conversion of Max Speed to Average Speed
Weights to HP ratio:
75050kg = 165456lb
165456lb / 450hp = 368lb/hp
Haul load length:
122m = 401ft
Conversion factor = 0.51
Avg speed = 42km/hr*0.51=21.4km/hr
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Loader-Truck Production
Calculations (Cont.)
Haul Speed :
Segment2
Total Resistance = 10%
Max speed = 16km/h
< Speed limit (20km/hr)
Conversion factor = 1
Avg speed = 16km/hr
16
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Loader-Truck Production
Calculations (Cont.)
Haul Speed :
Segment3
Total Resistance = 4%
Max speed = 42km/h
< Speed limit (45km/hr)
Conversion factor = 0.68
Avg speed
= 42km/hr*0.68=28.6km/hr
42
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Loader-Truck Production
Calculations (Cont.)
Haul Time:
Segment1:
0.122km / 21.4km/hr * 60min = 0.34 min
Segment2:
0.762km / 16km/hr * 60min = 2.86 min
Segment3:
0.152km / 28.6km/hr * 60min = 0.32 min
Total Haul Time:
0.34+2.86+0.32 = 3.52 min
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Loader-Truck Production
Calculations (Cont.)
Return Speed:
Segment1
Total Resistance = 4%
Max speed = 73km/h
> Speed limit (45km/hr)
So, choose 45km/hr
Avg speed
= 45km/hr*0.68=30.6km/hr
73
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Loader-Truck Production
Calculations (Cont.)
Return Speed :
Segment2
Total Resistance = -8%+2% = -6%
Max speed = 69km/h
> Speed limit (20km/h)
Choose 20km/hr
Avg speed = 20*0.95
= 19km/h
69
6%
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22
Loader-Truck Production
Calculations (Cont.)
Return Speed :
Segment3
Total Resistance = 4%
Max speed = 73km/h
> Speed limit (45km/hr)
So, choose 45km/hr
Avg speed
= 45km/hr*0.54=24.3km/hr
73
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23
Loader-Truck Production
Calculations (Cont.)
Return Time:
Segment1:
0.122km / 30.6km/hr * 60min = 0.24 min
Segment2:
0.762km / 19km/hr * 60min = 2.41 min
Segment3:
0.152km / 24.3km/hr * 60min = 0.38 min
Total Return Time:
0.24+2.41+0.38 = 3.02 min
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24
Loader-Truck Production
Calculations (Cont.)
Haul and Return Time Summary:
0.38 24.3 0.54 45 73 4 4 0 152 3
2.41 19 0.95 20 69 -6 2 -8 762 2
0.24 30.6 0.68 45 73 4 4 0 122 1
time (min)
Avg. Speed
(km/hr) Conversion
Limit
(km/hr)
Speed
(km/hr)
Total Resistance
(%) RR (%) Grade(%)
Length
(m) Segment
Return
0.32 28.56 0.68 45 42 4 4 0 152 3
2.86 16 1 20 16 10 2 8 762 2
0.34 21.42 0.51 45 42 4 4 0 122 1
time (min)
Avg. Speed
(km/hr) Conversion
Limit
(km/hr)
Speed
(km/hr)
Total Resistance
(%) RR (%) Grade(%)
Length
(m) Segment
Haul
Total time = 3.52min(haul)+3.02(return)=6.54 min
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25
Loader-Truck Production
Calculations (Cont.)
Truck cycle time (min)
0.8min Spot
3.0min Return
1.5min Dump
3.5min Haul
2.0 min Load
Total 10.8min
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26
Loader-Truck Production
Calculations (Cont.)
Slip condition check (Segment2):
Available Rimpull
=(Grade resistance + Rolling resistance)
* Gross Vehicle Weight
= (8% + 2%) * (34050kg + 41000kg)
= 10%*75050kg
= 7505kg
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27
Loader-Truck Production
Calculations (Cont.)
Usable Rimpull: Function of road surface and weight
on the drive wheels
Usable Rimpull
= Coefficient of Traction * Weight on Wheel
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Loader-Truck Production
Calculations (Cont.)
Typical Coefficient of Traction
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29
Loader-Truck Production
Calculations (Cont.)
Weight of Wheel:
769D: Rear 66.7%, Front 33.3% Distribution
(by CAT Performance Book)
Weight on Rear Tire is
75050kg * 0.667 = 50058kg
Then, Usable Rimpull is
0.6*50058kg*Cos(8%) = 29939kg
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30
Loader-Truck Production
Calculations (Cont.)
CONDITION CHECK
Usable Rimpull > Available Rimpull
There is no slip condition.
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31
Loader-Truck Production
Calculations (Cont.)
Unit Production
Assuming 50min / hour
Productivity:
41T/cycle*1cycle/10.8min*50min/hr*0.85 = 161T/hr
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32
Loader-Truck Production
Calculations (Cont.)
Number of Trucks/ Loader
For maximum productivity: 10.8min / 2.0min = 5.4
(6trucks)
To achieve 260T/hr: 260 / 161 = 1.61 (2 trucks)
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Fleet Size Determination Using
Binomial Distribution
by
Dr. Kadri Dagdelen
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Example
Consider the following fleet:
One loader, 80% mechanical availability and an
estimated productivity of 9,000 tons per
operating shift.
Three haul trucks, 70 percent mechanical
availability and an estimated productivity 0f
4,000 tons per operating shift.
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Example
Assume that the fleet is scheduled 100% of the
time and will only be inoperative if either the
loader or all the trucks are down for repairs.
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Wrong Assumption
One could incorrectly assume that the average
loader production would be 80% of 9,000 tons per
shift, or 7,200 tons per shift.
However, since the loader production is dependent
on available haul trucks, the truck downtime
distribution must be considered.
5
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Binomial Distribution
x n x
p p
x n x
n

) 1 (
)! ( !
!
This formula gives the fraction of time x units are
available out of a fleet of n units with a given
availability of p.
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Binomial Distribution for
Trucks
42 . 0 ) 7 . 0 1 ( 7 . 0
)! 1 2 ( ! 1
! 2
1 2 1
=

Availability = 70%
0 1 2 3 4 5 6
1 0.30 0.70
2 0.09 0.42 0.49
3 0.03 0.19 0.44 0.34
4 0.01 0.08 0.26 0.41 0.24
5 0.00 0.03 0.13 0.31 0.36 0.17
6 0.00 0.01 0.06 0.19 0.32 0.30 0.12
Fleet
Size (n)
Number of Units Available (x)
Fraction of the time
that 1 truck out of a
fleet of 2 will be
operating
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Fleet Capacity
The fleet capacity can be stated as follows:
The loader operates 80% of the time and during this time,
34% will be at 9,000 tons per shift, 44% will be at 8,000
tons per shift, and 19% will be at only 4,000 tons per shift.
0.80 x 0.34 x 9,000 = 2,448 tons
0.80 x 0.44 x 8,000 = 2,816 tons
0.80 x 0.19 x 4,000 = 608 tons
TOTAL = 5,872 tons
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Fleet Capacity
From this example, it can be seen that production from the
loader would be 18% short of the initial estimate of 7,200 tons
per shift that was determined without consideration of the haul
fleet.
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Haul Truck Requirement
Determination
Annual target objective 1,800,000 tons
Shifts scheduled 250 shifts
Tonnage requirements per shift 7,200 tons
Average truck productivity 4,000 tons per shift
Need 1.80 operating trucks per shift
3 trucks at 70% availability will average 2.1 shifts
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Haul Truck Requirement
Determination
It could be incorrectly assumed that 3 trucks would be
sufficient.
However, if the loading fleet contains only 1 loader , then
20% of the time the haul fleet would be idle waiting for the
loader to be repaired.
It is also known that the loader could not keep up with three
trucks and production would be limited to 9,000 tons per shift,
not the 12,000 tons indicated by the haulage capacity.
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Haul Truck Requirement
Determination
250 shifts x 0.80 x 0.34 x 9,000 tons = 612,000 tons
250 shifts x 0.80 x 0.44 x 8,000 tons = 704,000 tons
250 shifts x 0.80 x 0.19 x 4,000 tons = 152,000 tons
TOTAL = 1,468,000 tons per year
The solution in this case would be to purchase another loader
or work more shifts.
Estimating Owning and Operating
Costs
by
Dr. Kadri Dagdelen
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Hourly owning and operating
cost estimate
Analyst
Date
1 2
Machine Designation Track-type Tractor Wheel Loader
Estimated Ownership Period (Years) 7 5
Estimated Usage (Hours/Year) 1200 1500
Ownership Usage (Total Hours) 8400 7500
1. a. Delivered Price (including attachments) 135,000 1,200,000
b. Less Tire Replacement Cost if Desired 4,000
c. Delivered Price Less Tires 135,000 1,196,000
2. a. Residual Value - % of original deliverd price 35% 48%
b. Less Residual Value at replacement 47,250 574,080
3. a. Value to be recovered through work 87,750 621,920
b. Cost per hour 10.45 82.92
4. a. Interest rate 16% 16%
b. Interest costs 10.29 76.54
5. a. Insurance rate 1% 1%
b. Insurance Costs 0.64 4.78
6. a. Tax rate 1% 1%
b. Property tax 0.64 4.78
7. Total hourly owning cost 22.02 169.03
Antonio Peralta
11/7/2005
Owning Costs
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Hourly owning and operating
cost estimate
8. a. Fuel unit price 2.20 2.20
b. Fuel consumption 5 4
c. Fuel cost 11.00 8.80
9. Lube oils, filters, grease 0.46 0.43
10. a. Life of tires (Hours) 3,500
b. Tires replacement cost 1.14
c. Impact factor 0.20
d. Abrasiveness factor 0.20
e. Z factor 0.30
f. Basic factor 6.20
g. Under carriage 4.34
11. a. Extended use multiplier for repair reserve 1.00 1.00
b. Basic repair factor for repair service 4.50 4.00
c. Repair reserve 4.50 4.00
12. a. Special wear items 1.32 0.60
13. Total hourly operating cost 21.62 14.97
14. Maching Owning plus operating 43.64 184.01
15. Operator's hourly wage (include fringes) 30.00 30.00
16. TOTAL OWNING AND OPERATING COST 73.64 214.01
Operating Costs
4
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9A. Lube Oils, Filters, Grease
Unit Price Consumption Cost/Hour Unit Price Consumption Cost/Hour
Engine
Transmission
Final Drives
Hydraulics
Grease
Filters
Total 0 Total 0
Track-type tractor Wheel Loader
5
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12A. Special Wear Items
# Cost Life $/Hour Cost Life $/Hour
1 105 150 0.70 50 165 0.30
2 165 450 0.37 80 450 0.18
3 125 500 0.25 70 600 0.12
4
5
6
Total 1.32 Total 0.60
Track-type tractor Wheel Loader
Drilling
Dr. Kadri Dagdelen
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Drilling Methods
Top hammer drilling
Hydraulic self-contained drills
Pneumatic drills with portable air compressors
Down-the-hole (DTH) drilling
Pneumatically operated carriers with portable air compressors
Hydraulically operated self-contained carriers
Rotary drilling
Drills for rotary crushing
Drills for rotary cutting
3
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Surface Drilling Methods and
Applications
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Components of Surface Drilling
Methods
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Top Hammer Drilling
Soft to hard rock
Diameter from 7/8 to 10
Top hammer drills can be classified according to their size
and principle of operation:
Hydraulic or pneumatic handheld drills
Light hydraulic drills mounted on feeds for mechanized drilling in
different types of boom applications
Pneumatic crawler drills operated by a separate portable air
compressor
Hydraulic crawler or wheel-based drills operated by a powerpack
onboard
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Principle of Top Hammer Drilling
It can be hydraulic or pneumatic
It combines four functions
Percussion
Feed
Rotation
Flushing
Parameters that affect the penetration rate:
Impact energy, impact frequency, rotation speed, feed force, and
flushing of the hole
7
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Relative Penetration Rate as a Function
of Percussion Pressure
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The Optimal Adjustment of Drilling
Parameters Means Maximum Penetration
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Flushing
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Flushing
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Penetration Rates Between Pneumatic
and Hydraulic Top Hammer Drilling
12
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Bench Drilling Rig
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Bench Drilling Rig
A modern surface crawler drill should fulfill the
following requirements, to make the operation
economical:
High penetration rate
Short cycle times
High quality holes
High availability
Low operating cost
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Choice of Bit Type
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Application Range of Tube Drill Steels
16
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DTH Drilling
It is more efficient than top hammer drilling
A DTH hammer follows immediately behind the bit
Good drilling accuracy
DTH drills are used in bench drilling of 3 to 6 holes
on benches up to 150 feet
DTH hammer life is dependent on:
Hammer size, operating pressure, rock abrasiveness, and rock
drillability
17
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Principle of DTH Drilling
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A Typical DTH Hammer
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Features of DTH Hammer
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Truck Mounted DTH Drill
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DTH Bit Designs
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Rotary Drilling
It is used in most major open pit mining operations
Diameter from 4 to 17, depth up to 150 feet
The key elements in rotary drilling are:
Sufficient torque to turn the bit in any strata encountered
Sufficiently high bit loading capability (pulldown force) for optimum
penetration
Sufficient flushing air volume to remove the cuttings during
penetration, as well as to provide cool air to the drill bit bearings
Selection of the proper type of bit for the material being drilled
23
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Principle Rotary Drilling
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Rotary Drills
25
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Rotary Drills
26
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Principles of Rotation
27
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Rotary Power versus Hole Diameter
28
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Pull Down versus Hole Diameter
29
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Principles of Feed Systems
30
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Thrust and Pulldown Force
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Flushing Air Compressor Size
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Carrousel Type Pipe Changer
33
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Rotary Drilling Accessories
Drill bits
Drill pipes
Shock subs
Stabilizers
Saver subs
Bit subs
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Rotary Drill Bit Components
35
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Rotary Bit Selection Parameters
Type of ground Tooth or insert spacing Tooth depth Cutting action
Soft formations with low
compressive strengths and
high drillability: shales,
unconsolitaded sands,
calcites
High
Large: Inserts
extended chisel
shaped
Mostly gouging and scraping by
skew cone action, with little
chipping and crushing
Medium Formations: harder
shales, limestone,
sandstones, dolomites
Medium, close
Medium: Inserts
short or blunt
chisel shaped
Partly by gouging and scraping
but with significant chipping and
crushing action especially at
harder end of type
Hard formations: siliceous
limestones, hard
sandstones, porphyry
copper ores
Close with low intermesh
Low: Inserts
spherical or
conical
Mostly by chipping and crushing
by cutter rolling action
Very hard formations:
taconites, quartzites
Very close with low
intermesh
Very low: Insert
hemispherical
conical or ovoid
Nearly all excavation by true
rolling action of cutters
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Bit Selection for Rotary Drilling
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Insert Shapes for Tricone Bits
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Penetration Rate versus Bit Load
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Principles of Rotary Cutting
Drilling
Dr. Kadri Dagdelen
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Penetration Rate
300
) log 28 61 (
10
rpm W
Sc P =

Where:
P = penetration rate (ft/hr)
Sc = uniaxial compressive strength, in thousands of psi
W/F = Weight per inch of bit diameter, in thousands of pounds
rpm = revolutions of drill pipe per minute
Bauer and Calder, 1967 (Surface Mining Handbook)
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Horse Power
5 . 1 5 . 2
W D rpm K hp =
Where:
D = bit diameter (in.)
W = weight on the bit in thousands of pounds
K = constant that varies with rock type.
As material strength decreases, the value of K increases. This caters for the
greater teeth penetration experienced in soft rocks. Values vary from 14 x 10-5
for soft rocks down to 4 x 10-5 for high-strength materials.
Surface Mining Handbook
4
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Balancing Air Velocity
2 / 1 2 / 1
264 d p Um =
Where:
Um =
2420 fpm for 13 mm (1/2 in.) diameter platelets with a
density of 2.7 g/cc
d = diameter of the chip in inches
p = density of the chip in lb/ft
3
Surface Mining Handbook
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Bailing Velocities
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i
g
n
Bailing Velocities
7
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Air Requirements Chart
8
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Optimal Bit Load
5
D C
Load OptimumBit

=
Where:
C = Rock compressive strength
D = bit diameter in inches
Source: R. Baker, Tamrock
9
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Total Work
T N R W WT Work Total = 2 ) (
Where:
W = bit load (lbs)
R = penetration rate (feet/min)
N = bit rotation speed
T = torque (foot lbs)
Source: R. Baker, Tamrock
10
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Rotary Horsepower
C
W R D
hp Power Horse
6 . 1
) 1000 / ( 95 . 4
) (

=
Where:
hp = rotary horsepower
R = bit rotational speed
D = bit diameter (inches)
W = optimum bit load (lbs)
C = rock compressive strength
Source: R. Baker, Tamrock
11
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Maximum Bit RPM
6 . 1
) 1000 / ( 95 . 4
) (
W D
C hp
R RPM Bit Maximum

=
Where:
hp = rotary horsepower
R = bit rotational speed
D = bit diameter (inches)
W = optimum bit load (lbs)
C = rock compressive strength
Source: R. Baker, Tamrock
12
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Volume CFM

=
144
25 . 0
144
25 . 0
2 2
D
P SF
D
P CFM Volume

Where:
P = penetration rate
D = bit diameter (inches)
SF = swell factor (0.6 sedimentary or 0.4 Igneous/metamorphic)
Source: R. Baker, Tamrock
13
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Air Velocity
2 2
183
d D
CFM
Velocity Air

=
Where:
d = pipe diameter (inches)
D = bit diameter (inches)
CFM = effective compressor volume (CFM)
Source: R. Baker, Tamrock
14
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Compressive Strength
9 . 0
) 10000 / 1 ( 2 . 0
18 . 2
) (
D P
R W
C Strength e Compressiv


=
Where:
P = average pure penetration rate (feet/hour)
W = average bit load (lbs)
R = average bit rotation
D = bit diameter (inches)
Source: R. Baker, Tamrock
15
S
u
r
f
a
c
e

M
i
n
e

D
e
s
i
g
n
Pure Penetration
) 10000 / ( 2 . 0
18 . 2
) (
9 . 0
C D C
R W
P n Penetratio Pure


=
Where:
P = average pure penetration rate (feet/hour)
W = optimum bit load (lbs)
R = optimum bit rotation speed
D = bit diameter (inches)
C = average compressive strength
Source: R. Baker, Tamrock
Explosives
Definitions
Explosive -A chemical mixture that releases gasses and heat at
high velocity, causing very high pressures.
Explosion Thermochemical process in which mixtures of gasses,
solids, or liquids react with almost instantaneous formation of
gaseous pressures and heat release.
Detonation Supersonic explosive reaction which creates a high
pressure shock wave, heat, and gasses.
Theory of Blasting
The rock is affected by a detonating explosive in three principal
stages.
In the first stage, starting from the initiation point, the blasthole
expands by crushing the blasthole walls. This is due to the high
pressure upon detonation.
In the second stage, compressive stress waves emanate in all
directions from the blasthole with a velocity equal to the sonic
wave velocity in the rock. When these compressive stress waves
reflect against a free rock face, they cause tensile stresses in the
rock mass between the blasthole and the free face. If the tensile
strength of the rock is exceeded, the rock breaks in the burden
area, which is the case in a correctly designed blast.
Mechanics of Detonation
Compressiv
e Shock
Waves
Tensile Shock Waves
Mechanics of Detonation
In the third stage, the released
gas volume "enters" the crack
formation under high pressure,
expanding the cracks.
If the distance between the
blasthole and the free face is
correctly calculated, the rock
mass between the blasthole
and the free face will yield and
be thrown forward.
Bench Blast
(Atlas Copco)
History of Explosives Development
1000 -Black Powder
Discovered in China around 1000 A.D.
Mixture of potassium nitrate (saltpeter), sulfur and charcoal.
The combustion of charcoal (C) and sulfur (S) is the fuel, and
oxygen is contained within the nitrate ion (NO
3
).
Marco Polo brought it to Europe where it was originally used
for military purposes.
The first blasting application was in Hungary in 1627 and by
the end of the 17
th
century most of the European miners used
black powder to loosen rock.
The first black powder mills were established in America
around the year 1775.
History of Explosives Development
1831-Safety Fuse
William Bickford, an Englishman, patented the Miners Safety
Fuse, in 1831.
Safety fuse gave blasters a safe and reliable means of initiating
black powder.
1846 -Nitroglycerin
In 1846, Ascanio Sobrero, an Italian, discovered nitroglycerin
(C
3
H
5
N
3
O
9
), but he considered it too unpredictable and
hazardous for anyone to use.
History of Explosives Development
1867 -Blasting Caps
The main problem with nitroglycerin was to get it to shoot
consistently.
Alfred Nobel, a Swede, solved this problem with the invention
of the fulminate of mercury blasting cap in 1867.
Use together with safety fuse, the blasting cap provided an
excellent initiating system for nitroglycerin.
History of Explosives Development
1866 Dynamite
In his efforts to make nitroglycerin safer to handle, Alfred
Nobel in 1866 discovered that Kieselguhr (a diatomaceous
earth) not only absorbed three times its own weight of
nitroglycerin, but also rendered it less sensitive to shock.
After kneading and shaping it into a cartridge, it was wrapped
in paper and the Dynamite was invented.
History of Explosives Development
1894-PETN
The explosive PETN (C
5
H
8
N
4
O
12
) was discovered in 1894.
It was not widely used until the 1940s and today it is the
primary explosive compound in modern initiators and boosters.
1922-Electric Blasting Caps
In the beginning of the 20th century the electric initiation was
introduced, and by 1922 the first electric delay detonator (with
1 sec. delay) came into practical use.
The introduction of the short delay detonator 10-100
milliseconds) in the late 1940's has had the greatest importance
in the development of modern blasting techniques.
History of Explosives Development
1956 ANFO
In 1956, ANFO (Ammonium Nitrate and Fuel Oil) was
introduced to the U.S. market.
The success of the ANFO in U.S.A. is indisputable, from a
consumption rate of almost nil in 1956, the consumption had
increased to over 1,000,000 tons by 1975, the consumption of
dynamites has, during the same time, declined from 340,000
tons to 135,000 tons.
History of Explosives Development
1960s -Water gels and slurries
In the 1960's, we have seen the development of water gels,
also called slurries.
A slurry explosive is a high density aqueous explosive
containing ammonium nitrate which is an oxidizer.
Water gels contain 10 to 30 percent water and are sensitized by
carbonaceous fuels, TNT, aluminum, or certain organic
compounds like methylamin nitrate.
Both cap sensitive and non-cap sensitive water gel explosives
are available
History of Explosives Development
1970s-Nonel
In the late 1970's we saw new non-electrical initiating systems
like Nonel being developed.
1970s -Emulsions
1970's the development of emulsion explosives.
Emulsion explosives are composed of separate, very small
drops of ammonium nitrate solution and other oxidizers,
densely dispersed in a continuous phase, which is composed of
oil and wax.
The oil/wax mixture, which is the fuel, is in this way given a
very large contact surface to the oxidizer, the ammonium nitrate
solution .
Properties of Explosives
In the ideal conditions of dry blastholes a simple explosive can be
used, while under wet conditions, more sophisticated products are
called for .
The most important characteristics of an explosive are:
velocity of detonation (VOD)
strength
detonation stability
sensitiveness (propagation ability)
density
water resistance
sensitivity
safety in handling
resistance to freezing
oxygen balance
shelf life
Classification of Explosives
The explosives used in civil engineering and mining can nowadays
be classified as:
High explosives
Blasting agents
High explosives are characterized by high velocity of detonation
(VOD), high pressure shock wave, high density and by being
cap sensitive.
Blasting agents are mixtures consisting of a fuel and oxidizer
system, where none of the ingredients are classified as an explosive
and when unconfined cannot be detonated by means of a #8 test
blasting cap (1.0 grams of high explosives). Blasting agents have to
be initiated by a primer. ANFO is a typical blasting agent.
Firing Devices
Firing methods can be divided into two main groups:
Non-electric
Safety Fuse and Blasting Cap
Detonating Cord
Nonel system
Electric
Electronic Blasting Caps
Safety Fuse and Blasting Cap
The safety fuse consists of a black powder core that is tightly
wrapped with coverings of textile and waterproofing materials.
Safety fuse has a steady well controlled burning speed, usually
around 40 seconds per foot.
Safety Fuse and Blasting Cap
To initiate the explosive, a plain detonator has to be attached to the
safety fuse.
Detonators of different strengths expressed as a number are
available, currently #6 or #8 caps.
The #8 detonator contains approximately 1.0 grams of high
explosives, and the #6 about 0.8 grams.
Detonating Cord
Detonating cord consists of a PETN core which is wrapped in
coverings of textiles and waterproofing materials.
Detonating cord may be initiated
with a #6 detonator and
detonates along its entire length
at about 7000 meters/second.
It initiates most explosives.
Does not work well with ANFO
in small to medium sized
blastholes, (incomplete
detonation).
Firing pattern for detonating cord blast.
Electric Blasting Caps
Electric detonators can be divided into three different classes
according to their timing properties:
instantaneous
millisecond delays
half second delays
The millisecond delay detonator has a built-in millisecond delay
element. Delays are usually available in 25 ms delay intervals.
Electric Blasting Caps
Electric detonators may be
connected in series or parallel
depending on the number of
detonators in the round, and
the current available in the
blasting machine.
Parallel series circuit.
Electric Blasting Caps
The testing instruments for blasting
circuits have to be specially designed
for their purpose and be approved by
the authorities concerned.
An Ohm-meter is used to control the
resistance of single electric detonators,
detonators in series and in parallel-
series and for the final check before
firing.
Electric Blasting Caps
The series are connected in parallel and subsequently measured.
The resistance of the parallel connection is in accordance with
Kirckhoffs law:
As the difference in resistance between the series must not exceed
5 percent, the resistance of the parallel connection will be:
series of Number
/series Resistance
R =
Rn
1
...
R
1
R
1
R
1
2 1
+ + + =
Example
Assume a blast of 250 V A-detonators with a resistance of 3.6 Ohms each. (The
resistance is always 3.6 Ohms independent of legwire length.) The firing cable
has a resistance of 5 Ohms and a CID 330 V A blasting machine is used.
In accordance with the instructions on the blasting machine, the round may be
connected in 5 parallel series.
Number of detonators in each series: 50.
Resistance per series: 50x3.6=180 Ohms.
Resistance after parallel connection :
Resistance at the firing point is the resistance of the parallel-series connection
plus the resistance of the firing cable.
36 + 5 = 41 Ohms.
Ohms 36
5
180
series of Number
/series Resistance
R = = =
Possible errors during measuring:
Resistance too high:
* Larger number of detonators than calculated.
* Sub-division into series wrongly carried out.
* Poor contact ill some connection or detonator .
Resistance too low:
* All detonators are not connected into the circuit.
* Sub-division into series wrongly carried out.
* Some part of the round not connected into the circuit.
Infinite resistance:
* Interruption in series through incomplete connection.
* Faulty detonator (usually torn off legwire).
Electric Blasting Caps
Blasting machines of various
types are used to fire the
rounds.
Shown is the model CI 50
which is designed for firing a
maximum of 50 conventional
detonators.
Nonel system
The NONEL detonator functions as an electric delay detonator, but
the legwires and the fuse head have been replaced by a plastic tube
through which a shock wave is transmitted.
The endsplit of of the shockwave from the plastic tube initiates the
delay element in the detonator.
The 3mm diameter plastic tube is coated on the inside with a thin
layer of reactive material which transmits the shockwave with a
velocity of about 2000 meters per second.
Non-Electric vs. Electric
Tubing
Air Space
Shell
Non Electric Cap
Electric Cap
Crimps
Plug
Ignition
Charge
Fuse
Powder
Fuse
Element
Priming
Charge
Base
Charge
Closure
Bridge
Wire
Nonel system
A connector with a strength of 1/3 a #8 cap is used to connect and
initiate the detonators.
Nonel system
NONEL connected for bench blasting.
Nonel system
NONEL detonators may also be connected to a detonating cord
using a specially designed clip if noise is not a problem.
Nonel system
A NONEL round may be fired using a plain detonator and safety
fuse, or by using a specially designed NONEL system blasting
machine.
Bench Blasting
Bench blasting is the most common kind of blasting work.
It can be defined as blasting of vertical or nearly vertical blastholes in
one or more rows towards a free surface.
The blastholes can have free breakage of fixed bottom.
Free breakage
Fixed bottom
Bench Blasting
The tensile, compressive and shearing strengths of a rock mass vary with
different kinds of rock and may vary within the same blast.
As the rock's tensile strength has to be exceeded in order to break the
rock, its geological properties will affect its blastability.
Faults and dirt-seams may change the effect of the explosive in the blast.
Faulty rock containing voids, where the gases penetrate without giving
full effect, may be difficult to blast even though the rock may have a
relatively low tensile strength.
Bench Blasting
The requisite specific charge, (kg/m
3
) provides a first-rate measure of
the blastability of the rock.
By using the specific charge as a basis for the calculation, it is possible
to calculate the charge which is suitable for the rock concerned.
The distribution of the explosives in the rock is of the utmost
importance. A closely spaced round with small diameter blastholes gives
much better fragmentation of the rock than a round of widely spaced
large diameter blastholes, provided that the same specific charge is used.
Burden -the distance between
the drill hole and the nearest
parallel free face.
Spacing - the distance between
holes along rows that are parallel
to the face.
Stemming -non-explosive
material that is placed in the bore
hole to confine the explosives
(usually placed near the collar of
the hole).
Sub-drilling is the amount of
hole that is drilled below the
intended new bench level.
Basic Definitions
Blasting Theory
When hole depth equals the bench height masses of rock are often
left at the toe of the bench because of lack of reflected tension
energy from the free face. The solution for this is either sub-drilling
or inclined holes.
Partial
Reflected
Wave
Un-reflected
Compression
Wave
Leaves Un-
fractured Toe
B
e
f
o
r
e

B
l
a
s
t
i
n
g
A
f
t
e
r

B
l
a
s
t
i
n
g
Blasting Theory
Inclined holes cause total
reflective tensile waves at
the toe of the bench. This
causes a flat lower bench
and is a more efficient use
of explosives.
Total
Reflected
Tensile
Waves
Vertical Holes vs. Inclined Holes
Vertical Holes
Easier to drill
Avoids difficulties in
fractured rock
Inclined Holes
Commonly drilled between 10 &
15 degrees
Causes more productive
reflected shock wave in toe of
bench
Bench Height Factors
Research indicates that
bore hole length should
be approximately 3
times the burden
distance.
-Ash & Smith, Society of
Explosives Engineers, 1976
Bench Height is a function of both hole diameter and burden distance.
Zone of optimal fragmentation
Burden Spacing Equations
Burden Spacing Equations
Anderson
B = K(d*L)**2
Pearse
B = K*d*(P/T)**2
Ash
B = K*d/12
Fraenkel (meters & mm)
((R*L)**0.3)*(l**0.3)*(d**0.8)
B =
50
B burden distance (inches)
d hole diameter (inches)
L hole length (feet)
T ultimate tensile strength of rock (pounds per square inch)
P stability pressure of explosive (pounds per square inch)
K constants (empirically determined)
Rock characteristics are difficulty to mathematically model since rock
is never really homogeneous.
Burden Spacing Equations
S/B * f * c
s * p
33
d
B
max
=
Langefors/Kihlstrm
B
max
= maximum burden (m)
d = diameter in the bottom of the blasthole (mm)
p = packing degree (loading density) (kg/liter or g/c
3
)
s = weight strength of the explosive (ANFO = 1)
c = rock constant, 0.3 to 0.5
c = c + 0.05 for B
max
between 1.4 and 15.0 meters
f = degree of fixation, 1.0 for vertical holes
and 0:95 for holes with inclination 3:1
S/B = ratio of spacing to burden
Terminology
Charge Calculations
The maximum burden in the
bottom of the blasthole depends on:
weight strength of the actual
explosive (s)
charge concentration (l
b
)
rock constant (c)
constriction of the blasthole (R
1
)
Table 1a.
Kadri Dagdelen
FuatBilgin
Mining EngineeringDepartment
Colorado Shool of MInes
RECENT DEVELOPMENTS IN VEHICLE PROXIMITY
WARNING AND COLLISION AVOIDANCE SYSTEMS
USING GPS AND WIRELESS NETWORKS
10/29/2006
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2
OUTLINE
INTRODUCTION
PREVIOS WORK
CURRENT WORK
FUTURE WORK
CONCLUSIONS
MAIN
10/29/2006
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3
INTRODUCTION Surface Mining Safety Research Program
Safety Issues
Truck Proximity Warning
Collision Avoidance
Global Positioning System (GPS)
Wireless Network Technology
10/29/2006
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4
E E- -Mail Requesting Help Mail Requesting Help
Jim: Jim:
You may or may not be aware that at couple of You may or may not be aware that at couple of
weeks ago El Abra suffered a fatal accident weeks ago El Abra suffered a fatal accident
when a truck driver backed through the berm. when a truck driver backed through the berm.
Shortly after that happened, I was asked by Shortly after that happened, I was asked by
Dennis Barlett and Hunter White to lead a team Dennis Barlett and Hunter White to lead a team
of representatives from North American of representatives from North American
operations to make sure that this was the last operations to make sure that this was the last
accident of this type that we had to suffer. . accident of this type that we had to suffer. .
.. ..
Thanks, Thanks,
Ferol Ferol
The Problem We Face
10/29/2006
COLORADO SCHOOL OF MINES
5
CONCEPTUALIZED SYSTEM
Software for dump edge recognition
Trimble GPS
Trimble 900 MHz radios
Introduction to 802.11b
10/29/2006
COLORADO SCHOOL OF MINES
6
Field Tests at the Morenci Field Tests at the Morenci
Copper Mine Copper Mine - - Arizona Arizona
MORENCI TEST PREVIOUS WORK
10/29/2006
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7
CURRENT WORK
LAFARGE QUARRY IMPLEMENTATION
OptiTrack
Real Time
Design of the System
Hardware Development
Software Development
Robustness of the System
10/29/2006
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8
OptiTrack SYSTEM CURRENT WORK
10/29/2006
COLORADO SCHOOL OF MINES
9
Description of the System (Infrastructure)
GPS Differential Correction Service
Data, DTM
GPS data
GPS Differential
GPS
Control Base
OptiTrack Network at Lafarge
Quarry
Wireless Communication
Transmitting Truck Position
Wireless Communication
Between Lafarge Quarry and CSM
DTM
10/29/2006
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10
OptiTrack (Lafarge) CURRENT WORK
Mobile Clients
Haul Trucks
Manager Trucks
PDAs
Central Points
Repeaters
Trailer
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OptiTrack Mobile Clients CURRENT WORK
10/29/2006
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12
OptiTrack Haul Trucks CURRENT WORK

DC Injector
N-Female
N-Female
Amplifier 1wt
WAF2400-1000
N-Female N-Female
Barrel Adapter
N-Male N-Male
Lighting Arrestor
WRLA-1.2/1.8
N-Female N-Female
Jumper Cable

N-Male RPTNC-Female
LMR600

N-Male N-Male
Omni Antenna
RS 232
GPS Satellites GPS Device & Antenna
Wireless PCMCI Card
Cisco LMC 352
10/29/2006
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OptiTrack Central Points CURRENT WORK
Repeater at Mechanic House
Repeater on the Trailer
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14
OptiTrack Repeater CURRENT WORK
10/29/2006
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15
OptiTrack Trailer CURRENT WORK
10/29/2006
COLORADO SCHOOL OF MINES
16
OptiTrack Trailer CURRENT WORK












10/29/2006
COLORADO SCHOOL OF MINES
17
Schematic Representation of OptiTrack Trailer
CURRENT WORK

Power Supplies
Solar Panels
Cisco
AP 350
DC Injector
N-Female
N-Female
Amplifier 1wt
WAF2400-1000
N-Female N-Female
Barrel Adapter
N-Male N-Male
Lighting Arrestor
WRLA-1.2/1.8
N-Female N-Female
Jumper Cable

N-Male RPTNC-Female
LMR600

N-Male N-Male
Coax Cable

LMR600
N-Male N-Male
Coax Cable

LMR600
N-Male N-Male
Coax Cable
LMR600
N-Male N-Male
Directional Antennas
WRPA2400 11-AM
V Pol N-Male
Point to Point Antenna
WR2400-24M H Pol
N-Female
RPTNC-male
10/29/2006
COLORADO SCHOOL OF MINES
18
OptiTrack (CSM) CURRENT WORK
OptiTrack at CSM GPS Laboratory
Server
10/29/2006
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19
OptiTrack Antenna CURRENT WORK


Point to Point Antenna (Brown Building)
10/29/2006
COLORADO SCHOOL OF MINES
20
Schematic Representation of OptiTrack (CSM)
CURRENT WORK

Cisco
AP 350
RPTNC-male
Jumper Cable
N-Male
RPTNC-Female
DC Injector
N-Female
N-Female
LMR600
N-Male N-Male
Amplifier 1wt
WAF2400-1000
N-Female N-Female
Barrel Adapter
N-Male N-Male
Lighting Arrestor
WRLA-1.2/1.8
N-Female N-Female
RF Coax Cable
N-Male N-Male
Antenna on the roof of
Brown Building

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21
OptiTrack Software CURRENT WORK
10/29/2006
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22
Future Work
New Mobile Clients
PDAs
Sensors
Radar Implementation
Mobile Adhoc Network
(MANET)
10/29/2006
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23
Description of the System (Ad Hoc)
GPS Differential Correction Service
Data, DTM
GPS data
GPS Differential
GPS
Control Base
OptiTrack Network at Lafarge
Quarry
Wireless Communication
Transmitting Truck Position
Wireless Communication
Between Lafarge Quarry and CSM
DTM
10/29/2006
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24
Broadcast Protocols Future Work
Existing Protocols
Flooding
Adaptive-SBA
AHBP-EX
OptiTrack Protocols
Naive Bayes
Adaptive Boosting (AdaBoost)
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25
Existing Protocols Future Work
10/29/2006
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26
Machine Learning Approach Future Work
Classification
Rebroadcast
Discard
Incoming
Packet
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27
OptiTrack Protocols Future Work
10/29/2006
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28
Simulation Comparison Future Work
95 % Confidence Interval
10 Number of Trials
100 seconds Simulation Time
50 Node Max. IFQ Length
64 bytes payload Data Packet Size
100 meter Node Tx Distance
350 x 350 meter Network Area
NS-2 (1b7a) Simulator
Value Simulation Parameter
80 60 40 20 10 Pkt. Src. Rate (pkts/sec)
20 15 10 5 1 Average Speed (m/sec)
90 70 60 50 40 Number of Nodes
5 4 3 2 1 Trial
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29
Delivery Ratio of the Protocols
Delivery Ratio
60
65
70
75
80
85
90
95
100
1 2 3 4 5
Trial
D
e
l
i
v
e
r
y

R
a
t
i
o
Adaptive SBA
AHBP-EX
Flooding
AdaBoost
Naive Bayes
Future Work
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COLORADO SCHOOL OF MINES
30
Number of Retransmitting Nodes
Number of Retransmitting Nodes
0
10
20
30
40
50
60
1 2 3 4 5
Trial
N
u
m
b
e
r

o
f

R
e
t
r
a
n
s
m
i
t
t
i
n
g

N
o
d
e
s
Adaptive SBA
AHBP-EX
Flooding
AdaBoost
Naive Bayes
Future Work
10/29/2006
COLORADO SCHOOL OF MINES
31
End-to-End Delay Future Work
End-to-End Delay
0
0,5
1
1,5
2
2,5
3
1 2 3 4 5
Trial
E
n
d
-
t
o
-
E
n
d

D
e
l
a
y
Adaptive SBA
AHBP-EX
Flooding
AdaBoost
Naive Bayes
10/29/2006
COLORADO SCHOOL OF MINES
32
ADHOC & INFRASTRUCTURE Future Work
ADHOC
Infrastructure
10/29/2006
COLORADO SCHOOL OF MINES
33
1. 1. The tests that are being carried out at CSM as well The tests that are being carried out at CSM as well
as in Lafarge Quarry indicate that as in Lafarge Quarry indicate that OptiTrack OptiTrack soft soft
ware system can be used as a proximity warning d ware system can be used as a proximity warning d
evice to avoid collisions between off highway truck evice to avoid collisions between off highway truck
s and the other vehicles as well as to monitor truck s and the other vehicles as well as to monitor truck
positions with respect to dump edge on a 3 positions with respect to dump edge on a 3- -D topo D topo
graphy map. graphy map.
2. 2. Integration of the developed GPS based system wit Integration of the developed GPS based system wit
h other systems based on concepts such as RFID, r h other systems based on concepts such as RFID, r
adar, and video cameras need to be pursued to hav adar, and video cameras need to be pursued to hav
e a complete and reliable collision avoidance syste e a complete and reliable collision avoidance syste
m. m.
Conclusions
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Sustainability Issues in Mining
Antonio Peralta
by
Source: Rozgonyi and Ramirez, January 2003
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
What is Sustainable Development?
Sustainable development is:
A concept of needs;
Idea of limitations;
Future oriented paradigm, and;
A process of change.
This concept reflects a compromise between the
worlds tripartite aspirations:
ECONOMICAL: Promoting economic betterment
but preserving of options for future generations.
ECOLOGICAL: Protecting, maintaining and
restoring of environmental quality.
SOCIAL: Promoting and improving social and
community stability and values.
SUSTAINABLE
DEVELOPMENT
ECONOMICAL
ECOLOGICAL
SOCIAL
SUSTAINABLE
DEVELOPMENT
ECONOMICAL
ECOLOGICAL
SOCIAL
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Sustainable Development in Mining
Applying the concepts of sustainable development and
sustainable natural resource management to energy and
mineral resources is not an oxymoron.
Energy and mineral resources are mostly not renewable;
sustaining any given deposit or mine is not possible.
However, SD involves designing, developing and managing
resources in a way that is conducive to long-term wealth
creation. Minerals are a form of natural capital and thus of
endowed wealth.
Therefore, mining projects can serve sustainability objectives
if they are designed and implemented in ways that build viable
long-term capacities, strengthen communities and rehabilitate
damaged ecosystems.
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Global Mining and Mineral Industry Trends
International mergers, and globalization,
Shifts in supply availability and recycling,
Consumer demand (responsibility for the whole life cycle of
the minerals, metals),
Political restructuring,
Economic transformations,
Social and cultural developments,
Public attitudes about mining and minerals,
The new paradigm of sustainable development,
An era of increasing regulations affecting all phases of
activity from exploration and extraction to processing and
products.
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Principal Mining and Environmental Actions
During Each Phase of Mine Development
Environmental assessment
Rehabilitation plan
Exploration permit application
Exploration road construction
Rock core drilling
Geochemical analysis
Geostatistical analysis
Orebody evaluation
Exploration
Comprehensive EIA and review
Mitigation planning
Reclamation and closure planning
Conceptual design for closure
Reclamation and closure costing
Closure fund design
Plan of operations
Technology selection
Conceptual to final designs
Costing and cost benefit analysis
Investment brokerage
Feasibility study
Environmental baseline study
Environmental assessment
Fatal Flaw analysis
Initiation of permitting process
Initial mine and minerals process planning
Facilities siting
Scheduling
Econometric analysis
Initial technology selection
Pre-feasibility study
PRINCIPAL ENVIRONMENTAL
MANAGEMENT ACTION
PRINCIPAL MINE PLANNING ACTION
PHASE IN MINE
PROJ ECT
DEVELOPMENT
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Principal Mining and Environmental Actions
During Each Phase of Mine Development (cont.)
Implementation of closure plan
Site cleanup
Final reclamation
Final impact assessment
Post closure planning
Facilities decommissioning
Dismantling
Decontamination
Burial
Removal
Asset recovery
Recycling
Closure
Installation of pollution control facilities
General environmental management (air,
water, land)
Construction phase reclamation and
closure
Access and haul road development
Site clearing and grubbing
Earth moving and surface water management
Mine dewatering
Utilities installation
Building and infrastructure construction
Construction
Treatment
Maintenance
Monitoring
Final bond release
Post closure
General environmental management
Performance assessment/audit
Monitoring
Concurrent reclamation
Final closure design
Partial closure
Partial bond release
Ore extraction
Size reduction
Minerals processing
Smelting and refining
Maintenance and upgrade
Production
PRINCIPAL ENVIRONMENTAL
MANAGEMENT ACTION
PRINCIPAL MINE PLANNING ACTION
PHASE IN MINE
PROJ ECT
DEVELOPMENT
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Elements of Environmental Planning
A). INITIAL PROJECT EVALUATION
B). THE STRATEGIC PLAN
C). THE ENVIRONMENTAL PLANNING TEAM
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Environmental Planning Procedures (EPP)
A). INITIAL PROJECT EVALUATION:
1. Prepare a detailed outline of the proposed action.
2. Identify permit requirements.
3. Identify major environmental concerns.
4. Evaluate the opportunity for and likelihood of public participation in the
decision making process.
5. Consider the amount and effect of delay possibly resulting from public
participation during each stage of the project.
6. Evaluate the organization and effectiveness of local citizens groups.
7. Determine the attitudes and experiences of governmental agencies.
8. Consider previous industry experience in the area.
9. Consider recent experience of other companies.
10. Identify possible local consultants and evaluate their ability and
experience.
11. Consider having a local consultant check the conclusions of the initial
evaluation.
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Environmental Planning Procedures (EPP)
(cont.)
B). THE STRATEGIC PLAN:
1. Outline of technical information needed to obtain permits and to address
legitimate environmental, land use and socio-economic concerns.
Permitting process is quite long and complex.
2. Categorically assign responsibilities for the acquisition of the technical
information and hire necessary consultants.
3. Prepare a schedule for obtaining information and data and for submitting
permit applications to the appropriate agencies.
4. Select local legal, technical and public relations consultants.
5. Avoid hostile confrontations with environmental groups.
6. Develop a consistent program for the generation of credible factual
information.
7. Perform risk assessment.
8. Perform cost analysis.
9. Prepare mine reclamation plan.
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Environmental Planning Procedures (EPP)
(cont.)
C). THE ENVIRONMENTAL PLANNING TEAM
The team shall be multidisciplinary:
Mining engineers
Metallurgical engineers
Biologists
Environmentalists
Toxicologists
etc.
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Risk Assessment
1. Data collection and hazard evaluation.
2. Toxicity assessment.
3. Exposure assessment.
4. Risk characterization.
a). Non carcinogenic risks.
b). Carcinogenic risks.
5. Risk assessment / management by considering:
a). What types of problems or failures could occur, and
what is the probability that each one will occur?
b). What types of environmental impacts could result?
c). What types of compliance-related retrofits or
remediation methods could be required?
d). What are the possible fines or remediation costs?
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Cost Analysis
By considering:
Capital costs
Operating costs
Closure costs
Potential costs for retrofits associated with
regulatory compliance
Potential cost for remediation
Life-cycle environmental costs
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Mine Reclamation
i. Surface and groundwater
management
ii. Mine waste management
iii. Tailings management
iv. Cyanide heap and vat leach systems
v. Acid Mine Drainage Control
vi. Landform reclamation
vii. Revegetation
viii. Site stability
ix. Subsurface stabilization
x. Erosion prevention
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Mine Reclamation
i. Surface and groundwater
management
ii. Mine waste management
iii. Tailings management
iv. Cyanide heap and vat leach systems
v. Acid Mine Drainage Control
vi. Landform reclamation
vii. Revegetation
viii. Site stability
ix. Subsurface stabilization
x. Erosion prevention
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Location of the McLaughlin Mine in California
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Facilities map of the McLaughlin Mine
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Mine waste management
1) 2)
3) 4)
M
c
L
a
u
g
h
l
i
n
Early stage for waste disposal & AMD control facilities Advance of the waste disposal works
Final limit of the waste dump Erosion control by revegetating is started
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
5) 6)
7) 8)
Mine waste management (cont.)
M
c
L
a
u
g
h
l
i
n
Advance on the erosion control & and pit backfilling
South pit is backfilled & west dump is almost covered
East waste dump is completely covered
Waste dumps encapsulation is finished
06/14/ 98
05/04/ 92
05/04/ 93
05/10/ 93
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Acid Mine Drainage Control
AMD control facilities at the west waste dump
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Revegetation
Supervising the revegetation works on the west waste dump
(notice the AMD control facilities on the right side)
Surface Mine Design Surface Mine Design MNGN312/512 MNGN312/512
Minimizing AMD in open pit mining
through mine planning
Antonio Peralta
by
Acid Mine Drainage (AMD) Acid Mine Drainage (AMD)
q It encompasses all issues associated with
the environmental effects of sulphide
oxidation resulting from mining activities.
q Its significant potential for long-term
environmental degradation makes it one of the
biggest environmental issues facing the
mining industry.
Acid Mine Drainage Examples Acid Mine Drainage Examples
Contributing Factors Contributing Factors
q Primary factors are directly involved in the
generation of sulphide oxidation products.
q Secondary factors consume or alter those
products.
q Tertiary factors are the physical conditions
that influence the process.
Problems for Mine Operators Problems for Mine Operators
q Impact on mine water quality.
q Impact on aquatic ecosystems.
q Impact on riparian communities.
q Impact on groundwater quality.
q Impairment of the use of waterways.
q Revegetating and stabilizing mine wastes.
q Long term liability.
Acid Mine Drainage Control Acid Mine Drainage Control
q There is a number of well established
principles for minimizing AMD.
q Mine planning to minimize AMD is the most
cost effective and desirable solution to the
problem.
q Treatment is less desirable due to the long
term nature of AMD and associated high
treatment costs.
Principles to Prevent Acid Mine Drainage Principles to Prevent Acid Mine Drainage
q Exclusion of oxygen from wastes.
q Control of water flux within wastes.
q Minimize transport of oxidation products.
q Neutralization of AMD with alkaline materials.
q Monitoring to determine the effectiveness of
remediation measures.
1 1
st st
Step Step Characterization of Rock Types Characterization of Rock Types
q Geological assessment.
q Geochemical tests, classified as static and
kinetic tests.
q Static testing evaluates the acid generating and
acid neutralizing processes.
q Kinetic testing evaluates the rate of sulphide
oxidation, AMD characteristics, and assess
potential management techniques.
Geological Assessment Geological Assessment Information Sources Information Sources
q Acid generation characteristics of similar ore
bodies and host rocks.
q Relevant information should be logged and
recorded from drill core during the exploration
stage.
q Core samples must be retained for further
testing.
Geological Assessment Geological Assessment Sampling Sampling
q Sampling should be representative, based on
accepted statistical procedures.
q Representative profiles of all geological units
should be sampled.
q The number of samples will depend on
geological variability, complexity of rock types,
and level of confidence required.
Geological Assessment Geological Assessment Handling of Samples Handling of Samples
q Samples should be stored in a cool, dry
environment to minimize sulphide oxidation prior
to testing.
q Static tests may require as little as 2 grams of
sample.
q Kinetic tests require a minimum of 500 grams of
sample.
Geological Assessment Geological Assessment Interpretation Interpretation
q Topography and drillholes
Geological Assessment Geological Assessment Interpretation Interpretation
q Cross section of the drillholes
Geological Assessment Geological Assessment Interpretation Interpretation
q Interpretation of rock types
Geological Assessment Geological Assessment Interpretation Interpretation
q 3D view of two interpreted sections
Geological Assessment Geological Assessment Interpretation Interpretation
q 3D view of two interpreted sections
Geochemical Tests Geochemical Tests Static Tests Static Tests
q Acid base accounting or net acid producing
potential (NAPP) test.
q Net acid generation (NAG) test.
q Saturated paste pH and conductivity (EC).
q Total and soluble metal analysis
Net Acid Producing Potential Net Acid Producing Potential
q NAPP is determined by subtracting the
estimated acid neutralizing capacity of a sample
from the estimated potential acidity of the sample.
q It has three components:
Maximum potential acidity (MPA)
Acid neutralizing capacity (ANC)
Sample classification.
Net Acid Generation Test Net Acid Generation Test
q NAG comprises the addition of a strong
oxidizing agent such hydrogen peroxide to a
prepared sample and the measurement of the
solution pH and acidity after the oxidation reaction
is complete.
q This test can provide and indication of sulphide
reactivity and available neutralizing potential
within 24 hours.
Saturated paste pH and conductivity Saturated paste pH and conductivity
q The test gives a preliminary indication of the in situ
pH and the reactivity of the materials present in the
sample.
q A crushed sample (<1 mm) is saturated to create a
paste and the pH and EC is determined after a period
of equilibration.
Total and soluble metal analysis Total and soluble metal analysis
q Initial screening should compare metal
concentration in the solids with that of the
background soils and country rocks in the area.
q Statistical methods are available to determine
whether any enrichment is significant.
Geochemical Tests Geochemical Tests Kinetic Tests Kinetic Tests
q They simulate weathering and oxidation of rock
over time under exposure to moisture and air.
q They provide an indication of the oxidation rate
and time periods for onset of acid generation (lag
time).
q Columns and humidity cells are the most used
kinetic test techniques.
Rock Classification Rock Classification
q Acid Generating (AG)
q Potentially acid generating (PAG)
q Potentially acid consuming (PAC)
q Potentially neutral (PN)
Classification for regulatory and permitting purposes.
2 2
nd nd
Step Step Quantifying the Materials to be disposed Quantifying the Materials to be disposed
q AMD waste materials includes overburden, waste
rock, pit walls, pit floor and tailings.
q A database of the AMD parameters determined in
the tests is required.
q A predictive AMD block model should be created
using the information available in the database.
Block Modeling Block Modeling
q A block model is a three-dimensional spatial
representation of an ore body.
q It is used to quantify the geology an economics of
the deposit.
q It is developed by dividing the ore body and the
host rock into regularly shaped blocks representing
the smallest mineable unit.
Information in the Block Model Information in the Block Model
q Ore grades.
q Contaminants.
q Metallurgical recoveries.
q Physical parameters of the ore.
q Economic parameters.
q Environmental parameters.
Steps to create a block model Steps to create a block model
q Produce a detailed geologic interpretation.
q Create drill hole composites per material type.
q Perform statistical analysis.
q Perform spatial analysis if sufficient data exist.
q Interpolate a value into each block, for each of the
required variables.
Complete Block Model Complete Block Model
q Block model includes waste and ore blocks.
Constrained Block Model Constrained Block Model
q Block model includes only ore blocks.
Block Model and Mine Design Block Model and Mine Design
q Blocks inside and outside the final pit limit.
3 3
rd rd
Step Step - - Mining Development Mining Development
q Site potential and reserves
Expected pit development
q Development phasing
Period of development
Areas of extraction
by phase
2005
2035
2020
2050
Maps for different time periods Maps for different time periods
Coordination with Reclamation Coordination with Reclamation
q Clearing / Vegetation removal
qTopsoil management
q Overburden / Waste rock
management
q Grading principles
q Erosion control
q Revegetation
Isolation Strategy Isolation Strategy
q The objective is to isolate reactive wastes for
selective disposal either separately or within non-
reactive materials.
q In some cases, it may be preferable to segregate
highly reactive wastes within a separate facility to
permit intensive treatment and control strategies.
Waste Encapsulation Waste Encapsulation
q AMD waste is selectively handled and surrounded
with non-acid producing materials to limit flow of air
and water into waste and AMD flow out.
q A cell structure is formed. The surface is covered
with compacted benign material, usually clay.
In In- -Pit Disposal Pit Disposal
q Similar in concept to encapsulation. Method is
useful where a mined out pit of sufficient size is
available.
q With effective mine planning an early closure of
one of a series of mined pits allows for in-pit disposal
of AMD wastes.
Co Co- -disposal and Blending of Waste disposal and Blending of Waste
q Involves the blending/mixing and co-disposal of
AMD wastes with benign non-acid producing
materials or even acid neutralizing materials.
q Small cells within a waste dump are rapidly filled
and covered to reduce AMD generation and water
ingress.
Covers Covers
q A low permeability cover is constructed over an
existing waste dump, mainly using locally available
borrow or benign waste, to reduce the infiltration of
surface water and infusion of air into the dump.
Recovery and Treatment Recovery and Treatment
q Option for marginal acid producing wastes where
subsequent acid drainage is recovered and treated
downstream.
q Collection/recovery systems can include
catchment ponds, drains, trenches and groundwater
bores.
Conclusions Conclusions
q Mine planning can be a cost effective method to
control AMD in open pit mines.
q There are three basic steps to achieve AMD
control: characterize the rock types, quantify the
amount and content of the rocks, and develop a mine
plan according to the previous steps.
q The mine plan should include waste management
strategies to minimize AMD: isolation, encapsulation,
in-pit disposal, co-disposal, blending, covers, and
treatment.
q A combination of these strategies could be highly
effective to control AMD.
Questions and comments??????? Questions and comments???????
Summitville, Colorado Summitville, Colorado
Summitville, Colorado Summitville, Colorado
According to the United States Environmental Protection Agency
(US EPA), mining generates twice as much waste as all other
American industries put together.
So-called "hard rock" mining wastes are acidic and contaminated
with toxic heavy metals which have poisoned more than 12,000
miles of streams and rivers and 180,000 acres of lakes.
EPA estimates the public cost to clean up the more than 550,000
abandoned mines in America at between $32-72 billion.
The very scale of today's massive open-pit mining operations
means that sometimes cleanup costs will outstrip the value of the
metals pulled out of the ground, as happened with the $232 million
cleanup of the Summitville mine in southern Colorado.
Examples, Colorado Examples, Colorado
At Eagle mine, a zinc, copper and silver operation, ten million tons
of mine waste and mine tailings were left along the banks of the
Eagle River in Gilman Colorado.
Cleanup costs exceeded $55 million which totaled more than $5.50
per ton of mine waste.
A zinc, lead and silver mine at Smuggler Mountain in Pitkin
Colorado. The estimated cost for environmental recovery is $7.2
million. This equals $2.40 per ton of waste.
Feasibility Studies
The formal feasibility study includes an economic analysis of the rate of
return that can be expected from the mine at a certain rate of production.
Some of the factors considered during such an economic analysis are:
Tons in the deposit
Grade of the mine product
Mill recovery
Sale price of the metal or mineral
Cost of mining per ton
Cost of milling per ton
Royalties
Capital cost of the mine
Capital Cost of the mill
Exploration and development cost
Mining rate, tons per day
Depreciation method used
Depletion allowance
Working capital necessary
Miscellaneous costs of operation
Tax rate
Risk
Mining is a very risky business.
The most serious risks in any mining project are those associated
with:
Geology: the actual size and grade of the minable portion of
the deposit,
metallurgical factors: how much of the orebody can be
recovered, and
Economics: metal markets, interest rates, mining, processing,
ect.
Return on Investment
In order to compensate for risk, a mining organization will require
a minimum acceptable rate of return on investment.
The cost of borrowing capital for the mine or of generating the
needed capital internally within the company must be considered.
If a company has a number of attractive investment opportunities,
the rate of return from the proposed mine venture may be
compared with the rate expected on a different mining venture
elsewhere, or with some other business opportunity unrelated to
mining.
Management has an obligation to its stockholders or investors to
select projects with the best rate of return.
As a general rule of thumb, a project must have better than a 15-
percent rate of return to be considered by a major company.
An individual commonly expects a 30- to 50 percent rate of return
to consider investing in a mining venture.
Among other uses of the cash flow generated by the mine, these
funds must finance:
continuing exploration elsewhere,
pay for past failures, and
contribute to the mine's portion of main office and general
overhead.
Time Value of Money
Money has a time value. The future value of an investment can be
calculated by:
where:
P = Present value of investment
F = Future value of investment
i = interest rate
N = number of years
For example $100 invested at 10% interest for 1, 2, and 3 years would
yield:
F = 100(1 + .10)
1
= $110.00
F = 100(1 + .10)
2
= $121.00
F = 100(1 + .10)
3
= $133.10
N
i) P(1 F + =
Time Value of Money
Conversely money received in the future is not as valuable as money
received today. If money is received in the future:
Using the same example:
P = 110.00/(1 + .10)
1
= $100.00
P = 121.00/(1 + .10)
2
= $100.00
P = 133.10/(1 + .10)
3
= $100.00
N
i) (1 / F P + =
DCF-ROR
The criterion most commonly employed in the minerals industry
when evaluating the rate of return on an investment proposal is
called the discounted cash flow rate of return (DCF-ROR).
The term is a special version of the more generic term, internal rate
of return (IRR).
The internal rate of return is defined a that interest rate which
equates the sum of the present value in cash inflows with the sum
of the present value of cash outflows for a project:
PV cash inflows = PV cash outflows (3)
DCF-ROR
The DCF-ROR can be calculated by:
(4)
where:
CF
n
= Amount of cash in or out in a given year
n = Year
N = Project life
i = DCF-ROR
Once the cash flows for a project have been determined, the
interest rate i can be solved for using an iterative process, i.e. guess
at an initial value for i and then solve Equation 4 until a result of 0
is obtained.
0
i) (1
CF
N
0 n
n
n
=
+

=
Steps Involved in Cash Flow Analysis
The evaluation of a mining project is usually an iterative process
using the following steps:
1. Select a mining method
2. Select a production rate
3. Calculate Capital and Operating Costs
4. Select cutoff grade and tonnage
5. Calculate cash flow and return
Change steps 4, 2, and 1 and select the alternative that gives the
highest return.
Steps Involved in Cash Flow Analysis
In a feasibility study, attempt to quantify all geologic, technical,
marketing, environmental, political, etc. factors. Many of these
variables are dependent on each other. A feasibility study are
usually divided into the pre-production, production, and post-
production phases:
1. Preproduction Period
Exploration
Water and land acquisition
Mine and mill capital
Working capital, etc
2. Production Period
Revenue less costs
Calculation Of Annual Cash Flow
3. Postproduction Period
Equipment salvage
Working capital liquidation
Steps Involved in Cash Flow Analysis
Depletion
One of the features that distinguish a mining enterprise from many
other businesses is that during production, the companys assets,
i.e. the ore, is consumed.
The percentage depletion allowance is based on the idea that as
minerals are extracted, the mine is worth less.
The percentage depletion allowance permits mining companies to
deduct a certain percentage from their gross income to reflect the
mine's reduced value over time.
Depreciation
Depreciation is an allowable deduction when computing taxable income
that represents the exhaustion, wear, and tear of property used in a trade or
business, or of property held for the production of income.
The purpose of the depreciation deduction is to provide a means by which a
business or trade can recapture the capital needed to keep itself in business.
Therefore depreciation allowances for capital assets are deducted from
taxable income in an orderly manner such that the property owner has
deducted the initial investment in the asset by the time it wears out or
becomes exhausted.
Having recaptured the initial asset cost from the annual tax deductions, the
owner can, in theory, replace the worn-out piece of equipment with a new
one and keep himself in business.
Case Study
The calculation of the cash flow and DCF-ROR is illustrated using a
bedded zinc deposit, producing 6000 tons per day, with total reserves of
22.5 MM Tons @ 14% zinc.
Simplifying and other assumptions:
1. No royalty
2. No investment tax credits
3. Straight line depreciation and depreciation life equal to life of property
4. Federal, state, and local taxes equal to 40% net after depletion
5. No replacement or additional equipment requirements
6. No start-up costs or learning curve
7. Uniform grade mined over mine life
8. Uniform production rate over mine life
9. Operating costs constant over mine life
10. Mine would be division of large profitable corporation with 100%of exploration
and development expensed
11. No consideration of cost depletion
12. Price/cost differential constant over life of mine with no consideration of escalation
and inflation
Cash Flow Calculations
Pre-Production Period
Year 1 2 3 4 5 6 7 Total
Exploration *1 2,000 4000 4000 0 0 0 0 10,000
Development *2 0 0 0 4000 8000 8000 0 20,000
Mine/Mill 0 0 0 15000 36000 36000 0 87,000
Working Capital 0 0 0 0 0 2600 9,300 11,900
Total Investment (2,000) (4,000) (4,000) (19,000) (44,000) (46,600) (9,300) (128,900)
Tax Savings *3 800 1600 1600 1600 3200 3200 0 12,000
Net Cash Flow (1,200) (2,400) (2,400) (17,400) (40,800) (43,400) (9,300) (116,900)
*1 Expensed under Section 617 of IRS Code
*2 Expensed
*3 Assume federal, state, and local tax rate = 40% of net after depletion
Cash Flow Calculations ($1,000)
Zinc Smelter Schedule
Payments
Silver: Deduct 2 Troy oz., pay for 80% of remainder at
Handy & Harman quotation for refined silver in
Metals Week, averaged for the calendar month
following delivery, less $.055 per oz.
Lead: No payment.
zinc: Pay for 85% of zinc content at delivery price for
prime western zinc published in Metals Week,
averaged for the calendar month following delivery,
less $.015 per pound.
Zinc Smelter Schedule
Deductions
Smelter Charge:
$170/dry ton
Price Adjustment:
Increase by $3.00 per ton for each $.01 that the zinc
quotation exceeds $.40 per pound. Fractions in
proportion.
Decrease by $2.00 per ton for each $.01 that the zinc
quotation decreases below $.40 per pound. Fractions
in proportion.
Smelter Schedule Calculations
Concentrate Grade = 55%
zinc Price = $0.47/lb
Payments:
2,000 lb/ton * 0.55 * 0.85 * $(0.47- 0.015)/lb = $425.43/ton
Deductions:
Base Charge 170.00
Price Adjustment
(47- 40)c * $3.00/c = 21.00
Total Deductions: (191.00)
Freight:
Truck 5.00
Rail 15.00
Total Freight: (20.00)
Net Smelter Return/Ton Concentrate (NSR/T) $214.43/ton
Revenue and Operating Calculations
Revenue/year = Tons/year Concentrate * NSR/ton
Tons/year Concentrate = (Tons/year Ore * Grade * Mill Recovery)/(Conc. Grade)
Mine Schedule = 250 Days/year
Mill Recovery = 90%
Tons/year Concentrate = 6,000 T/D * 250 D/Y * 0.14 * 0.9/0.55
= 343,636 Tons/year Concentrate .
Revenue/year ($1,000) = 343,636 T/Y * $214.43/1,000 = $73,684/Year
Direct Operating cost/Year = Tons/year Ore * Operating Costs/Ton Ore
Direct Operating Costs
Mining $15.00 /Ton Ore
Milling 5.00
Overhead 3.00
Total 23.00 /Ton Ore
Operating Cost/Year ($1,000) = 6,000 T/D * 250 D/Y * $23.00/T/1,000
= $34,500/Year
Production Period
Year 7 8 9 10 11 12-21
Revenues 73,684 73,684 73,684 73,684 73,684 73,684
Operating Costs (34,500) (34,500) (34,500) (34,500) (34,500) (34,500)
Net Before D & D 39,184 39,184 39,184 39,184 39,184 39,184
Depreciation (5,800) (5,800) (5,800) (5,800) (5,800) (5,800)
Net After Depr. 33,384 33,384 33,384 33,384 33,384 33,384
Depletion (6,211) (16,211) (16,211) (16,211) (16,211) (16,211)
Taxable Income 27,173 17,173 17,173 17,173 17,173 17,173
Tax @ 40% (10,869) (6,869) (6,869) (6,869) (6,869) (6,869)
Net After Tax 16,304 10,304 10,304 10,304 10,304 10,304
Depreciation 5,800 5,800 5,800 5,800 5,800 5,800
Depletion 6,211 16,211 16,211 16,211 16,211 16,211
Cash Flow 28,315 32,315 32,315 32,315 32,315 32,315
Working Capital (9,300) 0 0 0 0 0
Net Cash Flow 19,015 32,315 32,315 32,315 32,315 32,315
Depletion Calculation: 7 8 9 10 11 12-21
Initial Recapture 10,000
22% Revenue 16,211 16,211 16,211 16,211 16,211 16,211
50% Net After Depr. 16,692 16,692 16,692 16,692 16,692 16,692
Depletion Earned 16,211 16,211 16,211 16,211 16,211 16,211
Depletion Recaptured 10,000 0 0 0 0 0
Recapture Balance 0 0 0 0 0 0
Depletion Claimed 6,211 16,211 16,211 16,211 16,211 16,211
Depreciation and Depletion
Depreciation/Year = (Mine & Mill capital)/Mine Life
Mine Life = Reserves/Annual Production
= 22,500,000 Tons/(6,000 T/D * 250 D/Y) = 15 years
Depreciation/Year ($1,000) = $87,000,000/15 Yr/1,000 = $5,800/Year
Depletion ($1,000):
Statutory % * Revenue or 50% Net after Depreciation, Select Smaller
zinc Depletion Rate = 22%
22% * $73,684 = $16,211 <=== Select Smaller
OR
50% * $33,384 = $16,692
Production Period
Year 7 8 9 10 11 12-21
Revenues 73,684 73,684 73,684 73,684 73,684 73,684
Operating Costs (34,500) (34,500) (34,500) (34,500) (34,500) (34,500)
Net Before D & D 39,184 39,184 39,184 39,184 39,184 39,184
Depreciation (5,800) (5,800) (5,800) (5,800) (5,800) (5,800)
Net After Depr. 33,384 33,384 33,384 33,384 33,384 33,384
Depletion (6,211) (16,211) (16,211) (16,211) (16,211) (16,211)
Taxable Income 27,173 17,173 17,173 17,173 17,173 17,173
Tax @ 40% (10,869) (6,869) (6,869) (6,869) (6,869) (6,869)
Net After Tax 16,304 10,304 10,304 10,304 10,304 10,304
Depreciation 5,800 5,800 5,800 5,800 5,800 5,800
Depletion 6,211 16,211 16,211 16,211 16,211 16,211
Cash Flow 28,315 32,315 32,315 32,315 32,315 32,315
Working Capital (9,300) 0 0 0 0 0
Net Cash Flow 19,015 32,315 32,315 32,315 32,315 32,315
Depletion Calculation: 7 8 9 10 11 12-21
Initial Recapture 10,000
22% Revenue 16,211 16,211 16,211 16,211 16,211 16,211
50% Net After Depr. 16,692 16,692 16,692 16,692 16,692 16,692
Depletion Earned 16,211 16,211 16,211 16,211 16,211 16,211
Depletion Recaptured 10,000 0 0 0 0 0
Recapture Balance 0 0 0 0 0 0
Depletion Claimed 6,211 16,211 16,211 16,211 16,211 16,211
Post-Production Period
Year 22
Working Capital 11,900
After-Tax Reclam. -8,000
Net Cash Flow 3,900
DCF-ROR or Internal Rate of Return
Present Value Present Value Present Value
Year (j) Net CF 1/(1+.20)^j CF @ 20% 1/(1+.25)^j CF @ 25% 0.21509 CF @ 21.509%
1 (1,200) 0.833 (1,000) 0.800 (960) 0.823 (988)
2 (2,400) 0.694 (1,667) 0.640 (1,536) 0.677 (1,626)
3 (2,400) 0.579 (1,389) 0.512 (1,229) 0.557 (1,338)
4 (17,400) 0.482 (8,391) 0.410 (7,127) 0.459 (7,982)
5 (40,800) 0.402 (16,397) 0.328 (13,369) 0.378 (15,403)
6 (43,400) 0.335 (14,535) 0.262 (11,377) 0.311 (13,485)
7 19,015 0.279 5,307 0.210 3,988 0.256 4,862
8 32,315 0.233 7,515 0.168 5,422 0.210 6,800
9 32,315 0.194 6,263 0.134 4,337 0.173 5,597
10 32,315 0.162 5,219 0.107 3,470 0.143 4,606
11 32,315 0.135 4,349 0.086 2,776 0.117 3,791
12 32,315 0.112 3,624 0.069 2,221 0.097 3,120
13 32,315 0.093 3,020 0.055 1,777 0.079 2,567
14 32,315 0.078 2,517 0.044 1,421 0.065 2,113
15 32,315 0.065 2,097 0.035 1,137 0.054 1,739
16 32,315 0.054 1,748 0.028 910 0.044 1,431
17 32,315 0.045 1,457 0.023 728 0.036 1,178
18 32,315 0.038 1,214 0.018 582 0.030 969
19 32,315 0.031 1,011 0.014 466 0.025 798
20 32,315 0.026 843 0.012 373 0.020 657
21 32,315 0.022 702 0.009 298 0.017 540
22 3,900 0.018 71 0.007 29 0.014 54
367,726 3,580 (5,666) 0
By Linear Interpolation
DCF-ROR = 20% + 3580/(3580+5666)*(25-20)% = 21.9%
Exact Solution 21.5090%
Present Value of Cash Flows
at 21.5% Discount Rate
(20,000)
(15,000)
(10,000)
(5,000)
0
5,000
10,000
13579
1
1
1
3
1
5
1
7
1
9
2
1
Year
$

*
1
0
0
0
Projected Cash Flows For Bedded Zinc Deposit
-50000
-40000
-30000
-20000
-10000
0
10000
20000
30000
40000
13579
1
1
1
3
1
5
1
7
1
9
2
1
Year
$

*
1
0
0
0
Definitions of troy ounce on the Web:
ounce: a unit of apothecary weight equal to 480 grains or one twelfth of a pound
he traditional unit of weight for gold is the troy ounce, named, it is
thought, after a weight used at the annual fair at Troyes in France in the
Middle Ages.
Although the metric system is used increasingly in mining and the gold
business, the troy ounce remains the basic unit in which the price of 995
gold is quoted.
One troy ounce = 31.1034807 grams,
32.15 troy ounces = 1 kilogram,
1 troy ounce = 480 grains,
Mine Production Scheduling
Mine Production Scheduling
Optimization
Optimization
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The State of Art
The State of Art
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K. Dagdelen
Professor
Mining Engineering Department
Colorado School of Mines
Golden, Colorado 80401
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
For Each Block in The For Each Block in The
Model Model
l l If a given block of If a given block of
material should be material should be
mined? mined?
l l When it Should be When it Should be
mined? mined?
l l Once it is mined what to Once it is mined what to
do with the block of do with the block of
Material Material
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
Start
Physical Capacities
Ultimate pit
Design Of Cuts
Cutoff Grade
Steps of Traditional Planning by Circular Analysis
Extraction
Scheduling
Production
Costs
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
ULTIMATE PIT LIMITS
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
ULTIMATE PIT LIMITS
l Identifies What blocks should be mined and which
ones should be left in the ground.
l Defines the lateral and vertical extent to which a given
deposit can economically be mined to
l 3-D Breakeven Analysis
l Moving Cone algorithm gives sub-optimum results
l Lerchs and Grossmann algorithm gives true
breakeven pit that maximizes the undiscounted profits
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
ULTIMATE PIT LIMITS
The Lerchs and Grossmann Algorithm
l Only finds the maximum profit pit boundary
l No time value of money is considered
l The pit that maximizes discounted profits (NPV) by
taking into account time value of money is much
smaller than the ultimate pit found by this
technique
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
ULTIMATE PIT LIMITS
l Common practice is to apply Lerchs and
Grossmanns algorithm to the economic block model
that is generated to discounted block values
l Economic block model is generated by discounting
block values based on a rough initial production
schedule
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
ULTIMATE PIT LIMITS
l If the schedule is not defined by identifying effect of
waste stripping on the overall cash flows then the
ultimate pit limit may not be correct
l NPV analysis on the last incremental pushbacks
always results in elimination of non-contributing
incremental pits
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
Start
Physical Capacities
Ultimate pit
Design Of Cuts
Cutoff Grade
Steps of Traditional Planning by Circular Analysis
Extraction
Scheduling
Production
Costs
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
DESIGN OF PUSHBACKS
Economic block models are developed by varying either
l Metal Price
l Cutoff Grade
l Minimum profits required per ton of ore
l Some ratio in block evaluation equation
l As these variables change the pit outline also changes
l Each outline is then used as pushbacks
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
DESIGN OF PUSHBACKS
PHASE 2
PHASE 1
PHASE 3
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
DESIGN OF PUSHBACKS
l The concept is based on mining next best ore
without considering impact of stripping to be done
ahead of time
l First incremental pit contains the ore that has the
highest average overall value per ton. The
subsequent pits have lower and lower average value
per ton of ore
l The push back designs do not take into account
effect of timing of waste stripping on the NPV
l Blending requirements can not be taken into
account
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
DESIGN OF PUSHBACKS
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
Start
Physical Capacities
Ultimate pit
Design Of Cuts
Cutoff Grade
Steps of Traditional Planning by Circular Analysis
Extraction
Scheduling
Production
Costs
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
CUTOFF GRADES
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Cutoff Grades
Cutoff Grades
l A cutoff grade is the grade that is used to
differentiate between ore and waste in a given
mining environment. Although the definition of
cutoff grade is straight forward, the determination
of it is not.
l To determine if a block of material should be milled
or taken to the waste dump, breakeven mill cutoff
may be used.
Milling cutoff grade
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McLaughlin Gold Mine
McLaughlin Gold Mine
California, USA California, USA
Waste
dumps
Autoclave Mill
Pit
Waste
Ore and waste discrimination
Cutoff grade
Stockpiles
Ore
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Round Mountain Gold Mine
Round Mountain Gold Mine
Waste
dumps
Leach Pads
Stockpiles
Low grade
stockpiles
Crusher
Waste
Oxide
Sulfide
CIP Mill
Ore
Breakeven Mill Cutoff Grade
Breakeven Mill Cutoff Grade
l The lowest economic grade where mining, milling,
and administration cost are equal to revenues obtained
from the metal produced.
Breakeven cutoff grade =
Milling Cost
(Price Refining Cost - Sales Cost) * Recovery
l Traditionally, this breakeven cutoff grade has been
widely used in a production scheduling.
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McLaughlin Mine Case Study
McLaughlin Mine Case Study
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l The economic and operational parameters:
Price (P) 600 $/oz
Sales Cost (s) 5 $/oz
Processing Cost (c) 19 $/ton ore
Recovery (y) 0.9
Mining Cost (m) 1.2 $/ton
Fixed Cost (fa) 8.35M $/year
Mining Capacity (M) Unlimited
Processing Capacity (C) 1.05M tons
Discount Rate (d) 15 %

Production Scheduling By
Production Scheduling By
Breakeven Cutoff Grade (Case1)
Breakeven Cutoff Grade (Case1)
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l If one uses breakeven cutoff grade for a production
scheduling:
$19/ton
($600/oz - $5.0/oz) * 0.90
Breakeven cutoff grade =
= 0.035 oz/ton
l All the materials above 0.035oz/ton goes to process,
and below goes to waste dump.
McLaughlin Case Study
McLaughlin Case Study
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l Consider a case study from McLaughlin Mine in California
where an epithermal gold deposit was mined by an open pit.
l The grade distribution within the ultimate pit limit is:
Grade Category
From To midpoint Ktons
0 0.02 0.0100 70,000
0.02 0.025 0.0225 7,257
0.025 0.03 0.0275 6,319
0.03 0.035 0.0325 5,591
0.035 0.04 0.0375 4,598
0.04 0.045 0.0425 4,277
0.045 0.05 0.0475 3,465
0.05 0.055 0.0525 2,428
0.055 0.06 0.0575 2,307
0.06 0.065 0.0625 1,747
0.065 0.07 0.0675 1,640
0.07 0.075 0.0725 1,485
0.075 0.08 0.0775 1,227
0.08 0.1 0.0900 3,598
0.1 0.358 0.2290 9,576
125,515
T
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Grade intervals
36,346 tons
@0.102oz/ton
89,167 tons
SR=2.45
COG
Yearly Mining and Milling Rates
Yearly Mining and Milling Rates
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l Assuming the deposit is homogeneously distributed,
yearly mining rate is given as follows:
l Yearly ore tons: 1.05Mtons (Limited by process capacity)
l Yearly ounces recovered: 1.05Mtons x 0.102 oz/ton x 0.9
= 96.3koz
l Yearly waste tons: 1.05Mtons x 2.45 (SR) = 2.58Mtons
l Yearly mining rates: 1.05M + 2.58M = 3.62Mtons
Yearly Schedules by Breakeven
Yearly Schedules by Breakeven
Cutoff Grade (Cont.)
Cutoff Grade (Cont.)
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l Mining the deposit with breakeven cutoff grade of
0.035oz/ton at 1.05M tons process capacity:
Avg Qm Qc Qr Profits
Year (i) COG Ore Grade (Mtons) (Mtons) (ktons) ($M)
1 0.035 0.102 3.6 1.05 96.3 33.0
2 0.035 0.102 3.6 1.05 96.3 33.0
3 0.035 0.102 3.6 1.05 96.3 33.0
4 0.035 0.102 3.6 1.05 96.3 33.0
5 0.035 0.102 3.6 1.05 96.3 33.0
6 0.035 0.102 3.6 1.05 96.3 33.0
7 0.035 0.102 3.6 1.05 96.3 33.0
8 0.035 0.102 3.6 1.05 96.3 33.0
9 0.035 0.102 3.6 1.05 96.3 33.0
10 0.035 0.102 3.6 1.05 96.3 33.0
11 to 34 0.035 0.102 3.6 1.05 96.3 33.0
35 0.035 0.102 3.4 1.00 91.7 31.4
Total 125.8 36.7 3,365.9 1,154.2
(NPV@15%)
$218.5
Shortcomings of the Traditional
Shortcomings of the Traditional
Cutoff Grades
Cutoff Grades
l They are established to maximizing the undiscounted
profits from a given mining operation.
l They are constant unless the commodity price and the
costs change during the life of the mine.
l They do not consider grade distribution of the deposit.
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
CUTOFF GRADES
l Many open pit mines are still designed and operated
using cutoff grades based on breakeven economic
analysis which maximizes undiscounted profits
l The cutoff grades should be set to much higher
levels than the breakeven cutoff during the initial
years of the operation
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
CUTOFF GRADES
l The heuristic algorithm to define optimum declining
cutoff grades that maximize the NPV of a given
project was developed by Kenneth Lane in 1965
l Applying this method to a given project results in
higher NPVfor a project specially if capacities are
not in harmony with the grade distribution of the
deposit
Declining Cutoff Grade
Declining Cutoff Grade
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l Traditional cutoff grade (constant cutoff grade) does
not maximize the NPV.
l Many approaches have been suggested to improve
NPV of the project.
l K. F Lane in 1964 suggested an heuristic algorithm to
obtain cutoff grades higher than breakeven grades
during the early years that maximize the Net Present
Value (NPV) of a project
Optimum Cutoff Grades by Lanes
Optimum Cutoff Grades by Lanes
Algorithm
Algorithm
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l Lanes approach considers the mining operation to be
constrained by the capacities of mine, mill, and
refinery.
l The cutoff grades are optimized by considering the
grade distribution of the deposit in providing highest
quality of ore to the mill subject to three capacity
constraints.
l This approach has been successfully used in the
mining industry for many years.
Optimum Cutoff Grades by OptiPit
Optimum Cutoff Grades by OptiPit

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l Linear Programming (LP) based algorithm and
software is being developed to optimize cutoff grades
under complex mining and process constraints.
l Mathematical programming approach is very powerful
and provides complete flexibility in modeling complex
operating environments.
l This approach will be described and demonstrated
using four case studies coming from gold mines in
Western United States.
Round Mountain Gold Mine
Round Mountain Gold Mine
Waste
dumps
Leach Pads
Stockpiles
Low grade
stockpiles
Crusher
Waste
Oxide
Sulfide
CIP Mill
Ore
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COMPLICATED PROCESSES AND COMPLICATED PROCESSES AND
CAPACITIES CAPACITIES
Dump
ROM
Leach
Cr
Leach
Cr
Flot.
10M
tons/yr
limited by
crusher
5M
tons/yr
1.05M
tons/yr
2M
tons/yr
P
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1
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2
Proc 3
P
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4
Tailings
80%
20%
Autoclave
Mine
Phase
1
Phase2
Mining Capacity: 12M tons/yr
Refining Capacity: 350 koz/yr
Stockpile available
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
CUTOFF GRADES
l Linear Programming (LP) based algorithm and
software is being developed to optimize cutoff grades
under complex mining and process constraints.
l Mathematical programming approach is very powerful
and provides complete flexibility in modeling complex
operating environments.
CUTOFF GRADE FORMULATION
CUTOFF GRADE FORMULATION
McLaughlin mine
Mine
Dump
Mill Cutoff
Grade
Index i
Index g
Index d
Index t: Years
T
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Grade intervals
igd
t
X
l Decision variables:
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OPEN PIT OPTIMIZATION
OPEN PIT OPTIMIZATION
FUTURE
l NO scheduler in the market that incorporates
shortcomings discussed
l There are efforts to develop methods that will overcome
these shortcomings
l The advancements in hardware and software
technology in recent years is providing an unique
opportunity to solve this problem by way of Linear
Integer Programming techniques
l In the mean time, the use of computer programs that
optimizes sub-problems will give you higher NPV for a
given project if not the optimum.
1
M
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Push Backs or Phases
Defines how the pit will evolve with time.
Defines ore tons and its quality for different time periods.
Defines waste tons for removal schedules.
Defines the cash flows and overall project economics.
2
M
N
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N

4
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A
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Push Backs or Phases Example
Phase 1 Phase 2
3
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N

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Push Backs or Phases Example
(Cont.)
Phase 3 Phase 4
4
M
N
G
N

4
3
3

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n
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Push Backs or Phases Example
(Cont.)
Cross Section
5
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G
N

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Cutoff Grade
Minimum grade of the material for processing.
Normally used to discriminate between ore and waste within
a given orebody.
Cutoff grade is Dynamic.
Read Cutoff Grade Optimization by Dr. Dagdelen
6
M
N
G
N

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Breakeven Cutoff Grade
The lowest economic grade where mining, milling, and
administration cost are equal to revenues obtained from the
metal produced.
Cutoff grades in the pit are normally much higher than the
breakeven cutoff grade.
Cutoff grades decline as the mine matures, and approaches
the breakeven cutoff.
7
M
N
G
N

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Hypothetical Case Study
Consider a hypothetical case study where an epithermal gold
deposit will be mined by an open pit.
The grade distribution within the ultimate pit limit is:
Grade Category
From To midpoint Ktons
0 0.02 0.0100 70,000
0.02 0.025 0.0225 7,257
0.025 0.03 0.0275 6,319
0.03 0.035 0.0325 5,591
0.035 0.04 0.0375 4,598
0.04 0.045 0.0425 4,277
0.045 0.05 0.0475 3,465
0.05 0.055 0.0525 2,428
0.055 0.06 0.0575 2,307
0.06 0.065 0.0625 1,747
0.065 0.07 0.0675 1,640
0.07 0.075 0.0725 1,485
0.075 0.08 0.0775 1,227
0.08 0.1 0.0900 3,598
0.1 0.358 0.2290 9,576
125,515
8
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N

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Mine Design Parameters
Capacities and Costs are:
Price (P) 600 $/oz
Sales Cost (s) 5.00 $/oz
Processing Cost (c) 19.0 $/ton ore
Recovery (y) 90 %
Mining Cost (m) 1.2 $/ton
Fixed Costs (fa) 8.35 $M/yr
Mining Capacity (M) Unlimited
Milling Capacity (C) 1.05 M
Capital Costs (CC) 105 $M
Discount Rate (d) 15 %
9
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N

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Traditional Cutoff Grades
Traditionally, a cutoff grade is used to determine if a block
of material should be mined or not.
And, another cutoff is used to determine whether or not it
should be milled or taken to the waste dump.
Ultimate pit cutoff grade
Milling cutoff grade
10
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Ultimate Pit Cutoff Grade
Ultimate pit cutoff grade is defined as the breakeven grade
that equates cost of mining, milling, refining and marketing
to the value of the block in terms of recovering metal and
the selling price.
Ultimate pit cutoff grade =
Milling Cost + Mining Cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $1.2/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.038 oz/ton
11
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N
G
N

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Milling Cutoff Grade
Milling cutoff grade is defined as the breakeven grade that
equates cost of milling, refining and marketing to the value
of the block in terms of recovering metal and the selling
price.
Milling cutoff grade =
Milling Cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton
($600/oz - $5.0/oz) * 0.90
Milling cutoff grade =
= 0.035 oz/ton
12
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N
G
N

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Milling Cutoff Grade (Cont.)
In the milling cutoff grade, no mining cost is included since
this cutoff is basically applied to those blocks that are
already selected for mining.
The depreciation costs, general and administrative costs (G
& A) and the opportunity costs are not included in the cutoff
grade.
The basic assumption is that all of these costs including
fixed costs defined as G & A will be paid by the material
whose grade is much higher than the established cutoff
grades.
13
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N
G
N

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Summary of the Traditional Cutoff
Grades
The ultimate pit limit cutoff is used to ensure that no
material (unless they are in the way of other high grade
blocks) is taken out of the ground unless all of the direct
costs associated with gaining the metal can be recovered.
(This assurance is automatically built into the ultimate pit
limit determination algorithms like Learchs Grossmann
and Moving Cone)
The milling cutoff is used to ensure that any material that
provides positive contribution beyond the direct milling,
refining and marketing costs will be milled.
14
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N
G
N

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Shortcomings of the Traditional
Cutoff Grades
They are established to satisfy the objective of maximizing
the undiscounted profits from given mining operation.
They are constant unless the commodity price and the costs
change during the life of the mine.
They do not consider grade distribution of the deposit.
15
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N
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N

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Yearly Tons and Grades Schedules by
Constant Cutoff Grades
Define:
Qm: Amount of total material mined in a given year (Mtons)
Qc: The ore tonnage processed by the mill (Mtons)
Qr: The recovered gold (koz)
The annual cash flows:
Profits ($M) = (P - s) * Qr Qc * c Qm * m
16
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N

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Yearly Tons and Grade Schedules by
Constant Cutoff Grades
Mining the deposit with traditional milling cutoff grade of
0.035oz/ton at 1.05M tons milling capacity (Table3):
Avg Qm Qc Qr Profits
Year (i) COG Ore Grade (Mtons) (Mtons) (ktons) ($M)
1 0.035 0.102 3.6 1.05 96.3 33.0
2 0.035 0.102 3.6 1.05 96.3 33.0
3 0.035 0.102 3.6 1.05 96.3 33.0
4 0.035 0.102 3.6 1.05 96.3 33.0
5 0.035 0.102 3.6 1.05 96.3 33.0
6 0.035 0.102 3.6 1.05 96.3 33.0
7 0.035 0.102 3.6 1.05 96.3 33.0
8 0.035 0.102 3.6 1.05 96.3 33.0
9 0.035 0.102 3.6 1.05 96.3 33.0
10 0.035 0.102 3.6 1.05 96.3 33.0
11 to 34 0.035 0.102 3.6 1.05 96.3 33.0
35 0.035 0.102 3.4 1.00 91.7 31.4
Total 125.8 36.7 3,365.9 1,154.2
(NPV@15%)
$218.5
17
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N
G
N

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Yearly Tons and Grades Schedules by
Constant Cutoff Grades (NPV Calculation)
NPV of the project:
NPV =
33.0
(1 + 0.15)
1
33.0
(1 + 0.15)
2
+
33.0
(1 + 0.15)
3
+
33.0
(1 + 0.15)
4
+
33.0
(1 + 0.15)
5
+

33.0
(1 + 0.15)
34
+
= $218.5M
31.4
(1 + 0.15)
35
+
18
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N
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N

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Summary of Constant Cutoff
Grade
Total 28.44M tons is mined (Avg. grade 0.102 oz/ton)
Overall stripping ratio: 1: 2.42
Mine life: 35 years
Undiscounted profits: $1154.2M
NPV: $218.5M
19
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N
G
N

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Declining Cutoff Grade
Traditional cutoff grade (constant cutoff grade) does not
maximize the NPV.
Many approaches have been suggested such that NPV is
improved.
Using cutoff grade higher than breakeven grades during the
early years for a faster recovery of capital investments and
using breakeven grades during the later stages has been
practiced in the industry.
20
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N
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N

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Heuristic Cutoff Grade
The traditional cutoff grade is modified so that they include
depreciation, fixed costs and minimum profit per ton
required for a period of time to obtain a much higher cutoff
grade during the early years.
After the end of the initial period, minimum profit
requirement is removed from the equation to lower the
cutoff grades further until the plant is paid off.
At that point, the depreciation charges are also removed.
21
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G
N

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Concept of Heuristic Cutoff
Grade
The concept is demonstrated pictorially as follows:
Idealized cross section of a series of pits for
various cutoff grades
22
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Capital Cost
Assume:
Capital Cost: $105M (Depreciated during the first 10 years)
Depreciation cost per year
$105M / 10 yrs = $10.5M / yr
Depreciation cost per ton
$10.5M / 1.05M tons = $10 / ton of ore
23
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N
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N

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Minimum Profit
Assume:
Minimum profit of $3.0 per ton will be imposed to
increase the cash flows further during the first five years
24
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N
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N

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Heuristic Cutoff Grade
Calculation
The milling cutoff grades will be:
g
milling
=
Milling Cost + Depreciation + Minimum Prof.
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $10/ton + $3/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.060 oz/ton
Yr 1 to 5
25
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N
G
N

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Heuristic Cutoff Grade
Calculation (Cont.)
g
milling
=
Milling Cost + Depreciation
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $10/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.054 oz/ton
Yr 6 to 10
26
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N
G
N

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Heuristic Cutoff Grade
Calculation (Cont.)
g
milling
=
Milling Cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.035 oz/ton
Yr 11 to Depletion
27
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N
G
N

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Yearly Tons and Grade
Schedules
The year by year tons and grade schedule obtained modified
cutoff grade policy (Table4):
Avg Qm Qc Qr Profits
Year (i) COG Ore Grade (Mtons) (Mtons) (ktons) ($M)
1 0.060 0.153 6.9 1.05 144.6 57.8
2 0.060 0.153 6.9 1.05 144.6 57.8
3 0.060 0.153 6.9 1.05 144.6 57.8
4 0.060 0.153 6.9 1.05 144.6 57.8
5 0.060 0.153 6.9 1.05 144.6 57.8
6 0.054 0.141 6.0 1.05 132.8 51.9
7 0.054 0.141 6.0 1.05 132.8 51.9
8 0.054 0.141 6.0 1.05 132.8 51.9
9 0.054 0.141 6.0 1.05 132.8 51.9
10 0.054 0.141 6.0 1.05 132.8 51.9
11 to 27 0.035 0.102 3.6 1.05 96.3 33.0
28 0.035 0.102 0.3 0.09 8.1 2.8
Total 125.8 28.44 3,032.1 1,112.7
(NPV@15%)
$355.7
28
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N
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N

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Summary of Modified Cutoff
Grade
Again, a total 28.44M tons is mined (Avg. grade 0.106 oz/ton)
Overall stripping ratio: 1: 3.88
Mine life: 25 years
Undiscounted profits: $1112.7M (3.6% reduction from Table3)
NPV: $355.7M (63% increase from Table3)
29
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N

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Heuristic Cutoff Grade
(Including G & A)
Assume:
Fixed Costs per year: $8.35M / year
Fixed Costs per ton: ($8.35M/year) / (1.05Mtons/year)
= $7.95 / ton
In the previous calculations, the G & A costs were not
included in the cutoff grade and profit calculations.
30
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N

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Heuristic Cutoff Grade Calculation
(With G & A)
The milling cutoff grades will be:
g
milling
=
Milling Cost + Depreciation + Minimum Prof. + Fixed cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $10/ton + $3/ton + $7.95/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.075 oz/ton
Yr 1 to 5
31
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N

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Heuristic Cutoff Grade Calculation
(With G & A) (Cont.)
g
milling
=
Milling Cost + Depreciation + Fixed cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $10/ton + $7.95/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.069 oz/ton
Yr 6 to 10
32
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N

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Heuristic Cutoff Grade Calculation
(With G & A) (Cont.)
g
milling
=
Milling Cost + Fixed cost
(Price Refining Cost - Sales Cost) * Recovery
$19/ton + $7.95/ton
($600/oz - $5.0/oz) * 0.90
Ultimate pit cutoff grade =
= 0.050 oz/ton
Yr 11 to Depletion
33
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N
G
N

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Yearly Tons and Grades
Schedules
The year by year tons and grade schedule obtained modified
cutoff grade policy that includes fixed costs (Table5):
Avg Qm Qc Qr Profits
Year (i) COG Ore Grade (Mtons) (Mtons) (ktons) ($M)
1 0.075 0.182 9.2 1.05 171.6 62.8
2 0.075 0.182 9.2 1.05 171.6 62.8
3 0.075 0.182 9.2 1.05 171.6 62.8
4 0.075 0.182 9.2 1.05 171.6 62.8
5 0.075 0.182 9.2 1.05 171.6 62.8
6 0.069 0.169 8.2 1.05 160.0 57.1
7 0.069 0.169 8.2 1.05 160.0 57.1
8 0.069 0.169 8.2 1.05 160.0 57.1
9 0.069 0.169 8.2 1.05 160.0 57.1
10 0.069 0.169 8.2 1.05 160.0 57.1
11 to 17 0.050 0.132 5.4 1.05 124.8 39.5
18 0.050 0.132 1.3 0.26 30.5 9.6
Total 125.8 18.11 2,562.5 885.6
(NPV@15%)
$357.1
34
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N
G
N

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Summary of Modified Cutoff Grade
with Fixed Cost Included
The policy of declining cutoff grades calculated with
depreciation, minimum profit, and the G & A cost further
improved the NPV of the deposit by 1% ($355.7M vs.
$357.5M)
Overall undiscounted profits were adversely reduced by 20%
($1112.7M vs. $885.6M)
35
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N
G
N

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Lanes Approach
Declining cutoff grades throughout the mine life gives
higher NPV.
The question is, How should the cutoff grades be
determined to obtain the highest NPV?
K. F. Lane discussed the theoretical background, a general
formulation, and a solution algorithm.
Read Choosing the Optimum Cutoff Grade by K.F. Lane
36
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Lanes Approach (Cont.)
Lane showed that cutoff grade calculations that maximize
NPV have to include the fixed costs associated with not
receiving the future cash flow quicker due to the cutoff
grade decision taken now.
Underlying philosophy in inclusion of the opportunity
cost is that every deposit has a given NPV associated with
it at a given point in time and that every ton of material
processed by the mill during a given year should pay for
the cost of not receiving the future cash flows by one year
sooner.
37
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N

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i
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Cutoff Grade Equation for
Lanes Approach
The cutoff grade equation that maximizes the NPV of the
deposit constrained by the mill capacity is:
g
milling
(i) =
c + f + F
i
(P - s) * y
Where i = 1, , N (mine life),
g
milling
(i) is the cutoff grade to be used in Year i.
38
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N
G
N

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i
s
Cutoff Grade Equation for
Lanes Approach (Cont.)
F
i
is the opportunity cost per ton of ore in Year i and it is
defined as:
F
i
= d * NPV
i
/ C
f is defined as:
f = f
a
/ C
Where
d is the discount rate;
NPV
i
is the NPV of the future cash flows of the years (i) to the end
of mine life;
f
a
is the annual fixed costs
39
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N

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y
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i
s
Yearly Tons and Grades
Schedules
The year by year tons and grade schedule resulted from
Lanes approach (Table6):
Avg Qm Qc Qr Profits NPV
Year (i) COG Ore Grade (Mtons) (Mtons) (ktons) ($M) ($M)
1 0.161 0.259 18.0 1.05 245.2 95.9 413.8
2 0.152 0.255 17.2 1.05 241.0 94.4 380.0
3 0.142 0.25 16.5 1.05 236.4 92.6 342.6
4 0.131 0.245 15.7 1.05 231.3 90.5 301.4
5 0.120 0.239 14.9 1.05 225.7 88.1 256.1
6 0.107 0.232 14.1 1.05 219.6 85.4 206.4
7 0.092 0.213 12.1 1.05 200.9 76.7 152.0
8 0.079 0.188 9.8 1.05 177.9 65.9 98.1
9 0.065 0.163 7.6 1.05 153.6 53.9 46.9
Total 125.8 9.45 1,931.4 743.4
(NPV@15%)
$413.8
40
M
N
G
N

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i
s
Steps to Obtain Table 6 (1
st
Iteration)
Avg Waste Ore SR Qm Qc Qr Profits NPV
Year (i) NPVi Cog Ore Grade (Mtons) (Mtons) (Mtons) (Mtons) (ktons) ($M) ($M)
1 0 0.050 0.133 101.5 24.0 4.2 5.5 1.05 125.7 39.9 $255.0
2 0 0.050 0.133 97.1 23.0 4.2 5.5 1.05 125.7 39.9 $253.4
3 0 0.050 0.133 92.6 21.9 4.2 5.5 1.05 125.7 39.9 $251.5
4 0 0.050 0.133 88.2 20.9 4.2 5.5 1.05 125.7 39.9 $249.3
5 0 0.050 0.133 83.7 19.8 4.2 5.5 1.05 125.7 39.9 $246.8
6 0 0.050 0.133 79.3 18.8 4.2 5.5 1.05 125.7 39.9 $243.9
7 0 0.050 0.133 74.9 17.7 4.2 5.5 1.05 125.7 39.9 $240.6

21 0 0.050 0.133 12.7 3.0 4.2 5.5 1.05 125.7 39.9 $86.6
22 0 0.050 0.133 8.3 2.0 4.2 5.5 1.05 125.7 39.9 $59.7
23 0 0.050 0.133 3.8 0.9 4.2 5.1 0.91 108.9 33.1 $28.7
Total 125.8 24.0 2,874.0 910.8
(NPV@15%)
$255.0
Year 1: Cog= 19+8.35/1.05+(0*0.15)/1.05 = 0.050
(600-5)*0.9
Year 2: Cog= 19+8.35/1.05+(0*0.15)/1.05 = 0.050
(600-5)*0.9
41
M
N
G
N

4
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Steps to Obtain Table 6 (2
nd
Iteration)
2nd iteration
Avg Waste Ore SR Qm Qc Qr Profits NPV
Year (i) NPVi Cog Ore Grade (Mtons) (Mtons) (Mtons) (Mtons) (ktons) ($M) ($M)
1 $255.0 0.118 0.238 116.6 8.9 13.1 14.8 1.05 224.9 87.8 $399.5
2 $253.4 0.118 0.238 102.9 7.9 13.1 14.8 1.05 224.9 87.8 $371.7
3 $251.5 0.117 0.236 89.1 6.8 13.1 14.8 1.05 223.0 86.6 $339.7
4 $249.3 0.117 0.236 74.5 5.7 13.1 14.8 1.05 223.0 86.7 $304.0
5 $246.8 0.116 0.236 61.6 4.8 12.9 14.6 1.05 223.0 86.8 $262.9
6 $243.9 0.115 0.236 48.2 3.8 12.9 14.5 1.05 223.0 86.9 $215.5
7 $240.6 0.115 0.236 34.8 2.7 12.9 14.6 1.05 223.0 86.9 $160.9
8 $236.8 0.114 0.235 20.0 1.6 12.9 14.6 1.05 222.1 86.3 $98.2
9 $232.4 0.112 0.234 7.0 0.5 15.6 7.5 0.45 94.8 30.5 $26.6
Total 125.0 8.9 1,881.8 726.4
(NPV@15%)
$399.5
Year 1: Cog= 19+8.35/1.05+(255*0.15)/1.05 = 0.118
(600-5)*0.9
Year 2: Cog= 19+8.35/1.05+(253.4*0.15)/1.05 = 0.118
(600-5)*0.9
42
M
N
G
N

4
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Steps to Obtain Table 6 (3
rd
Iteration)
3rd iteration
Avg Waste Ore SR Qm Qc Qr Profits NPV
Year (i) NPVi Cog Ore Grade (Mtons) (Mtons) (Mtons) (Mtons) (ktons) ($M) ($M)
1 $399.5 0.157 0.257 118.1 7.4 15.9 17.7 1.05 242.9 94.9 $411.8
2 $371.7 0.149 0.253 101.2 6.6 15.4 17.3 1.05 239.1 93.2 $378.7
3 $339.7 0.141 0.250 84.8 5.9 14.4 16.2 1.05 236.3 92.8 $342.2
4 $304.0 0.131 0.245 69.0 4.9 14.1 15.8 1.05 231.5 90.5 $300.7
5 $262.9 0.120 0.238 54.7 4.2 13.2 14.9 1.05 224.9 87.7 $255.4
6 $215.5 0.108 0.232 40.7 3.3 12.3 14.0 1.05 219.2 85.3 $206.0
7 $160.9 0.093 0.215 27.5 2.5 11.1 11.7 1.05 203.2 78.6 $151.6
8 $98.2 0.077 0.189 15.3 1.7 9.0 9.5 1.05 178.6 66.6 $95.7
9 $26.6 0.057 0.158 7.1 0.9 8.4 8.8 1.05 149.3 50.0 $43.5
Total 125.8 9.5 1,925.0 739.7
(NPV@15%)
$411.81
Year 1: Cog= 19+8.35/1.05+(399.5*0.15)/1.05 = 0.157
(600-5)*0.9
Year 2: Cog= 19+8.35/1.05+(371.7*0.15)/1.05 = 0.149
(600-5)*0.9
43
M
N
G
N

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Steps to Obtain Table 6 (4
th
Iteration)
4th iteration
Avg Waste Ore SR Qm Qc Qr Profits NPV
Year (i) NPVi Cog Ore Grade (Mtons) (Mtons) (Mtons) (Mtons) (ktons) ($M) ($M)
1 $411.8 0.160 0.259 117.0 7.8 15.0 17.8 1.05 244.8 96.0 $412.3
2 $378.7 0.151 0.255 101.4 6.7 15.1 17.0 1.05 241.0 94.7 $378.2
3 $342.2 0.142 0.250 85.2 5.9 14.4 16.2 1.05 236.3 92.8 $340.2
4 $300.7 0.131 0.245 70.0 5.1 13.7 15.6 1.05 231.5 90.7 $298.4
5 $255.4 0.118 0.238 55.9 4.2 13.3 14.6 1.05 224.9 88.0 $252.4
6 $206.0 0.105 0.230 41.8 3.3 12.7 13.9 1.05 217.4 84.3 $202.3
7 $151.6 0.091 0.213 28.0 2.7 10.4 12.0 1.05 201.3 77.1 $148.3
8 $95.7 0.076 0.182 16.5 2.0 8.3 10.2 1.05 172.0 61.8 $93.5
9 $43.5 0.062 0.162 8.0 1.2 6.7 8.5 1.05 153.1 52.6 $45.7
Total 125.8 9.5 1,922.1 738.0
(NPV@15%)
$412.30
Year 1: Cog= 19+8.35/1.05+(411.8*0.15)/1.05 = 0.160
(600-5)*0.9
Year 2: Cog= 19+8.35/1.05+(378.7*0.15)/1.05 = 0.151
(600-5)*0.9
44
M
N
G
N

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Table 6
Table 6
Avg Waste Ore SR Qm Qc Qr Profits NPV
Year (i) NPVi Cog Ore Grade (Mtons) (Mtons) (Mtons) (Mtons) (ktons) ($M) ($M)
1 $413.8 0.161 0.259 18.0 1.05 244.8 95.7 $413.8
2 $380.0 0.152 0.255 17.2 1.05 241.0 94.4 $380.2
3 $342.6 0.142 0.250 16.5 1.05 236.3 92.5 $342.8
4 $301.4 0.131 0.245 15.7 1.05 231.5 90.6 $301.7
5 $256.1 0.119 0.239 14.9 1.05 225.9 88.2 $256.3
6 $206.4 0.105 0.232 14.1 1.05 219.2 85.2 $206.6
7 $152.0 0.091 0.2131 12.1 1.05 201.4 77.0 $152.3
8 $98.1 0.077 0.188 9.8 1.05 177.7 65.7 $98.2
9 $46.9 0.063 0.163 7.6 1.05 154.0 54.3 $47.2
Total 125.8 9.5 1,931.7 743.7
(NPV@15%)
$413.82
Year 1: Cog= 19+8.35/1.05+(413.8*0.15)/1.05 = 0.161
(600-5)*0.9
Year 2: Cog= 19+8.35/1.05+(380.0*0.15)/1.05 = 0.152
(600-5)*0.9
45
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N
G
N

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Summary of Lanes Approach
Lanes approach gives 90% higher NPV and 35% lower
undiscounted profits than constant cutoff grade (Table3).
Total tons mined are the same.
Tons milled is lower (36.7Mtons vs. 9.45Mtons)
Ounces of gold recovered is lower (3.37Moz vs. 1.93Moz)
Mine life is significantly shorter (36yrs vs. 10yrs)
1
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N
G
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Cutoff Grade Optimization 2
How to determine a cutoff grade policy where
Mining capacity, milling capacity, and refining capacity may
be limited,
And
Maximizing NPV of the projects
Read An NPV Maximization Algorithm For Open Pit
Mine Design by Dr. Dagdelen
2
M
N
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N

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Definition of the Problem
The problem is to maximize the NPV subject to production
constraints:
Maximize

=
+
=
N
i
d
i
i profit NPV
1
) 1 (
1
* ) (
Subject to
M i Q
m
) (
for i = 1,N
C i Q
c
) ( for i = 1,N
R i Q
r
) ( for i = 1,N
Where
i: Year indicator
N: Mine life in years
Q
m
: Amount of total metal mined in a given year (Ore + Waste)
Q
c
: Ore tonnage processed in a given year
Q
r
: Recovered metal (in tons) in a given year
M: Annual mining capacity in tons
C: Annual milling capacity in tons
R: Annual refinery capacity in tons
3
M
N
G
N

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Derivation of Opportunity Costs of
Mining Low Grades
Define:
V: Maximum possible present value of future profits
(cash flows) from the operation (NPV of total operation)
Profits ($M): Profits (Cash flow) from mining Q
m
amount of material
Vq: Maximum possible present value of future profits
(cash flows) after the next Q
m
amount of material has been
mined
v=V-Vq: Marginal increase in present value to be achieved by
mining next Q
m
of material
4
M
N
G
N

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Derivation of Opportunity Costs of
Mining Low Grades (Cont.)
T
d
Vq M profits
V
) 1 (
) ) ($ (
+
+
=
) ) ($ ( ) 1 ( * Vq M profits d V
T
+ = +
If i is relatively small, then
) * 1 ( ) 1 ( T d d
i
+ = +
Vq M profits T d V + = + ) ($ ) * 1 ( *
Vq M profits T d V V + = + ) ($ * *
T d V M profits Vq V * * ) ($ =
5
M
N
G
N

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Derivation of Opportunity Costs of
Mining Low Grades (Cont.)
Let v=V-Vq then
T V d M profits v * * ) ($ =
The opportunity cost of taking low grades
now when higher grades are still available
We need to set cutoff grade so that we do
not delay high grade
6
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N
G
N

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Basic Present Value Expression
Annual profits can be calculated as follows:
T V d T f Q m Q c Q s r P v
m c r
* * * * * * ) ( =
Where
P: Metal price per ton of product
r: Marketing cost per ton of product
c: Processing cost per ton of ore
m: Mining cost per ton of ore
f: Annual fixed administrative costs
s: Sales cost per ton of product
T: Number of time periods that will take to mine, concentrate and
refine Q
m
amount of material from the pit (i.e. years)
7
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N
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Mine Limiting Case
When the mining capacity is the bottleneck in the system:
M
Q
T
m
=
m c r m
Q
M
V d f
m Q c Q s r P v *
) * (
* * ) (

+
+ =
COG
v
m
v
m
is a function of
cutoff grades
8
M
N
G
N

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COG of Mine Limiting Case
Cutoff grade of mine limiting case is:
y s r P
c
g
m
* ) (
=
where
y: Metallurgical recovery
9
M
N
G
N

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Concentrator Limiting Case
When the concentrator capacity is the bottleneck in the system:
C
Q
T
c
=
m c r c
Q m Q
C
V d f
c Q s r P v * *
) * (
* ) (

+
+ =
Cutoff grade of concentrator limiting case is:
y s r P
C
V d f
c
g
c
* ) (
) * (

+
+
=
10
M
N
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N

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Refinery Limiting Case
When the refinery capacity is the bottleneck in the system:
R
Q
T
r
=
m c r r
Q m Q c Q
R
V d f
s r P v * * * )
) * (
(
+
=
Cutoff grade of refinery limiting case is:
y
R
V d f
s r P
c
g
r
*
) * (

+

=
11
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Balancing Cutoff Grade (Cont.)
Mine - Mill
C/M
g
mc
12
M
N
G
N

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Balancing Cutoff Grade (Cont.)
Mine - Refinery
R/M
g
mr
13
M
N
G
N

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Balancing Cutoff Grade (Cont.)
Mill - Refinery
R/C
g
rc
14
M
N
G
N

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Open Pit Copper Case Study
Deposit Reserves
(Mtons) (%Cu)
15
M
N
G
N

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First Year Production Reserves
(Mtons) (%Cu)
16
M
N
G
N

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Open Pit Copper Case Study
Unit of mining: ton

Price (P): $25/ 1%Cu of one unit of mining
(=$25/1%Cu*1ton = $25/0.01tonCu = $25/20lbsCu
= $1.25/lbCu)
Mining Cost (m): $1/ one unit of mining = $1/ton
Concentrator Cost (c): $2/ one unit of mining = $2/ton
Refinery Cost (s): $5/ 1%Cu of one unit of mining
Fixed Cost (f): $300M /yr
Mine capacity (M): 100M one unit of mining /yr = 100Mtons/yr
Concentrator capacity (C): 50M one unit of mining /yr = 50Mtons/yr
Refinery capacity (R): 40M of 1%Cu of one unit of mining /yr
(=40M*0.01tonCu /yr = 400k tons Cu /yr)
Recovery (y): 100%
Discount rate (d): 15%
17
M
N
G
N

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Mine Limited Case
(V=0) (V=1174)
18
M
N
G
N

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Concentrator Limited Case
(V=0) (V=1174)
19
M
N
G
N

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Refinery Limited Case
(V=0) (V=1174)
20
M
N
G
N

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Balancing Cutoff Grade


Balancing Cutoff Grades (V=0)
-300
-200
-100
0
100
200
300
400
500
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
COG
P
r
o
f
i
t
vm
vc
vr

gm
gr
gc
Gopt
Feasible Region
21
M
N
G
N

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Balancing Cutoff Grade
Balancing Cutoff Grades (V=1174)
-250
-200
-150
-100
-50
0
50
100
150
200
250
300
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
COG
P
r
o
f
i
t
vm
vc
vr

Gopt
22
M
N
G
N

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Limiting Economic Cutoff Grades
Cu Cu
ton Cu
ton
y s P
c
g
m
% 10 . 0 %
1 * ) 5 25 (
2
1 * ) 1 * % 1 / )($ 5 25 (
) / ($ 2
* ) (
=

=
Cutoff grade of mine limiting case is (V=0):
Cutoff grade of concentrator limiting case is (V=0):
Cu Cu
ton Cu
yr ton M
yr M
ton
y s P
C
V d f
c
g
c
% 40 . 0 %
1 * ) 5 25 (
50
300
2
1 * ) 1 * % 1 / )($ 5 25 (
) / ( 50
) / ($ 300
) / ($ 2
* ) (
) * (
=

+
=

+
=

+
+
=
23
M
N
G
N

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Limiting Economic Cutoff Grades
(Cont.)
Cutoff grade of refinery limiting case is (V=0):
( ) 1 *
)) / 1 * % 1 ( 40
) / ($ 300
) 1 * % 1 / ($ 5 25
) / ($ 2
*
) * (

+

=
yr ton Cu M
yr M
ton Cu
ton
y
R
V d f
s P
c
g
r
Cu Cu % 16 . 0 %
1 *
40
300
5 25
2
=


=
24
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N
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N

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Grade Tonnage Curve
25
M
N
G
N

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Average Grade Above Cutoff
26
M
N
G
N

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Ore : Material Ratio
27
M
N
G
N

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Product : Material Ratio
28
M
N
G
N

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Product : Ore Ratio
29
M
N
G
N

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Grade Tonnage Relationship
Cutoff Quantity Tons Below Tons Above Avg Grade Cu Produced Ore to Product to Product to Ore to
(%Cu) (Mtons) Cutoff Cutoff Above Cutoff (%Cu of Material Material Ore Waste
(Mtons) (Mtons) (%Cu) 1ton of Material) Ratio Ratio Ratio Ratio
(C ) ( R) (C/M) (R/M) (R/C)
0.00 100 0 1000 0.500 500 1.0 0.500 0.500 0.00
0.10 100 100 900 0.550 495 0.9 0.495 0.550 0.11
0.20 100 200 800 0.600 480 0.8 0.480 0.600 0.25
0.30 100 300 700 0.650 455 0.7 0.455 0.650 0.43
0.40 100 400 600 0.700 420 0.6 0.420 0.700 0.67
0.50 100 500 500 0.750 375 0.5 0.375 0.750 1.00
0.60 100 600 400 0.800 320 0.4 0.320 0.800 1.50
0.70 100 700 300 0.850 255 0.3 0.255 0.850 2.33
0.80 100 800 200 0.900 180 0.2 0.180 0.900 4.00
0.90 100 900 100 0.950 95 0.1 0.095 0.950 9.00
30
M
N
G
N

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Balancing Economic Cutoffs

g
mc
: Ore : Material = C:M = 50M/100M =0.5
Then, from the table above g
mc
= 0.50 %Cu

g
mr
: Product : Material = R:M = 40M/100M =0.4
Then, from the table above g
mr
= 0.45 %Cu

g
rc
: Product : Ore = R:C = 40M/50M =0.8
Then, from the table above g
rc
= 0.60 %Cu
31
M
N
G
N

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i
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Choosing Optimum Cutoff Grade
32
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N

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S
y
s
t
e
m
s

A
n
a
l
y
s
i
s
Choosing Optimum Cutoff Grade
Gmc = 0.40%Cu
Grc = 0.40%Cu
Gmr = 0.16%Cu


Then,

G
opt
= 0.40%Cu