Approaches to Make Strategic Mine Planning Successful

Strategic Mine Planning approaches are vital in today’s mining industry, integrating technical feasibility, economic viability, and environmental considerations to ensure optimal resource extraction. They provide the technical and economic direction of a mining project and play a central role in maximizing value from increasingly scarce resources. Yet, many mines do not fully embrace this kind of planning—often because they have yet to understand how the right approaches can make the best use of available technology and deliver stronger outcomes.

In this article, we explore four approaches to creating a strategic mine plan that is robust enough to give mine planners and decision-makers confidence in their plans, even amid market uncertainties. This confidence is made possible with the help of advanced technologies from Dassault Systèmes.

But first, let us establish the basics by distinguishing between a mine plan and a mine schedule, as well as between strategic mine planning and tactical mine planning—terms that are often used interchangeably despite referring to different processes.

Strategic Mine Planning Approaches vs. Mine Scheduling

According to Mark Bowater, author of Crimes Against Mine Planning, a mine plan is “the set of things to be done to allow something to be achieved and includes mine designs, plus a schedule, plus the communication of it all.”

A mine schedule, meanwhile, is “the sequence of activities carried out at the mine site to achieve target outcomes. [It] includes a database of the quantities of the task to be scheduled, along with equipment productivities, a calendar, and then some form of sequence path for equipment to carry out those tasks.”

Strategic Mine Planning Approaches vs. Tactical Mine Planning

Dassault Systèmes GEOVIA Mining Industry Process Consultant Joaquin Romero defines the difference clearly:

• Strategic Mine Planning (SMP): Concentrates on long-range production planning aimed at maximizing the value of an ore deposit.
• Tactical Mine Planning: Focuses on short-range plans that maintain operational viability.

This makes long-term strategic mine planning approaches highly susceptible to both internal and external forces, such as geological knowledge, economic fluctuations, market volatility, technological advancements, and legislative changes.

Defining Reserves with Strategic Mine Planning Approaches

From Traditional Algorithms to Flexible Mine Planning Approaches

Traditionally, surface mine planners have relied on the Lerchs-Grossmann (L&G) algorithm to define reserves. This generates pit shells designed to maximize total undiscounted cash flows. Once the final pit is identified, planners create “nested pit shells” as pushbacks leading toward the final pit. However, most of these nested pit shells are not operationally feasible.

The solution to this geometry-related issue lies in adopting flexible strategic mine planning approaches. Instead of using a rigid sequence, the L&G algorithm can be modified by incorporating a starting point and direction for extraction. From there, a sequence schedule is built that aligns more effectively with the project’s strategic requirements.

Dassault Systèmes tested this flexible approach using a combination of GEOVIA Whittle and SIMULIA process-automation tools. By generating between 1,600 to 2,400 scenarios, they produced a value map where decision-makers can easily determine the “best starting region and corresponding directions” for extraction.

The Future of Strategic Mine Planning Approaches

The first part of this article highlighted the importance of distinguishing between mine plans, schedules, and tactical versus strategic planning, while also addressing modern methods for defining reserves. By applying strategic mine planning approaches, mining companies can create plans that are not only technically and economically robust but also resilient to uncertainties.

In Part 2, we will cover mine production-scale planning, risks and uncertainties in SMP, how to optimize production schedules, and how GEOVIA’s SMP solutions can help you strengthen your approaches to success.