Approaches to Make Strategic Mine Planning Successful

Ensuring optimal resource extraction, maximizing the value of scarce resources, and maintaining confidence in mine plans despite market uncertainties are all possible through strategic mine planning with DS GEOVIA’s SMP solutions. In Part 1, we explained the differences between mine plan and schedule, as well as strategic and tactical mine planning. This second part explores how a production-scale plan, an optimized production schedule, and thorough risk assessment contribute to the success of strategic mine planning.

Establishing the Optimal Scale of Production

After identifying the best starting region and pushback directions, mine planners must create a production-scale plan that adapts to demand shifts over the life of mine. This plan requires three major decisions: mine sequences, cut-off grade, and production rate. These decisions are interconnected, so adjusting one directly affects the other two.

The Hill of Value helps visualize a value surface that shows the relationship between cut-off grade and production rate. It also highlights the point that generates maximum value.

Using GEOVIA Whittle and SIMULIA process-automation tools, mine planners can evaluate up to 9,680 sequences with varying production rates, cut-off grades, and market conditions—all in less than a day.

Optimizing the Strategic Production Schedule

Once sequencing decisions are defined, the planner faces a critical question: How can the strategic production schedule be optimized to meet both technical and operational constraints while maximizing value?

The solution lies in understanding which factors can be optimized—schedule, cut-off grade, stockpiling, and blending. By optimizing these, planners can increase net present value (NPV). The Milawa algorithm in GEOVIA Whittle supports this process by identifying what to mine and when.

Cut-off grade optimization is commonly based on Lane’s theory, which suggests discarding low-value material even if it lies above the marginal cut-off. Doing so allows early processing of higher-grade ore, which increases the mine’s NPV.

Blending also plays a vital role. GEOVIA Whittle’s “blend bins” feature enables planners to optimize extractive blending without manually reclassifying block model data. This ensures smoother workflows and better value generation. Optimizing the production schedule is, therefore, a key driver of successful strategic mine planning.

Assessing Risks in Strategic Mine Planning

A strong mine plan accounts for risk. GEOVIA Whittle can generate tens of scenarios, while the GEOVIA SMP Workflow, combined with SIMULIA tools, can produce thousands. This enables mine planners to test assumptions and identify risks across every step of the workflow.

Uncertainty analysis helps measure the accuracy of pit definitions, pushbacks, production scales, and schedules. Romero notes that this approach allows planners to better manage the impact of uncontrolled variables.

Monkhouse and Yeates (2007) identified five key sources of uncertainty in mine planning:

• Orebody
• Processing
• Market
• Discount rate
• Changing technologies

Processing, market, and discount rate risks are relatively easier to manage. Orebody uncertainty, however, poses greater challenges. Monte Carlo simulation addresses this by incorporating input variables directly into pit optimization. Running multiple scenarios produces pit shell sets that capture the potential variability of the orebody.

Studies have shown that GEOVIA SMP improves NPV by 10–50% and reduces stripping ratio by 16–20%, lowering mining costs. It also enhances grade forecasting accuracy by 30%, cuts development costs by 10%, reveals optimal performance scenarios, and reduces planning time from one month to just three days.

Strengthening Strategic Mine Planning

From Optimized Production to Risk-Ready Mine Plans

Dassault Systèmes GEOVIA’s SMP enables mining companies to spend less time on repetitive processes and more time analyzing results and making informed decisions. With the right tools, strategic mine planning can maximize long-term value, minimize risks, and provide clarity in the face of uncertainty.

For more information on SMP and other Dassault Systèmes solutions, contact DS Value Solutions partner Paramina Earth Technologies, Inc. at paramina_solutions@paramina.com or visit www.paramina.com.