Strategic Mine Planning Frameworks and Software

1. Constituent Parts

Strategic mine planning involves the long-term optimization and management of mining projects. It establishes the framework for the entire mining operation, defining how the resource will be extracted efficiently and profitably over the mine's life. It also integrates geological, engineering, economic, and environmental considerations to maximize the project's value while addressing risks and uncertainties.

Key Objectives

• Maximizing Resource Value involves designing an extraction sequence that ensures the highest economic return while minimizing the costs.
• Life-of-Mine (LOM) Scheduling is planning the entire timeline of mining operations, from development to closure, while aligning with production targets.
• Risk Mitigation Identifying and addressing potential geological, economic, and operational risks early.
• Environmental and Social Responsibility Ensuring compliance with environmental regulations and fostering positive community relations.

Core Elements

• Orebody Modelling developing 3D geological models to understand the resource's spatial and grade distribution.
• Mine Design choosing the mining method (e.g., open-pit or underground) and creating a layout that minimizes waste and maximizes recovery.
• Cut-off Grade Optimization determining the minimum grade of ore that can be economically processed to maximize profitability over the mine's life.
• Production Scheduling creating an extraction sequence that aligns with resource availability, equipment capacity, and market demand.
• Economic Evaluation analysing costs, revenues, and financial metrics like Net Present Value (NPV) to guide decision-making.
• Stakeholder Alignment balancing the expectations of investors, regulators, and communities to maintain project viability.

The Process

• Data Collection and Analysis gathering geological, geotechnical, market, and operational data to inform decisions.
• Scenario Analysis exploring various development and extraction scenarios to identify the most viable options.
• Optimization Techniques using algorithms and software (e.g., Whittle, MineSight, or Datamine) to optimize pit shells, schedules, and resource allocation.
• Evaluation and Decision-Making assessing the feasibility and trade-offs of different strategies, considering financial and operational factors.
• Integration into Operational Plans aligning the strategic plan with short- and medium-term plans to ensure consistency and adaptability.

Key Challenges

• Uncertainty geological variability and market fluctuations can impact resource estimates and profitability.
• Balancing Long-Term and Short-Term Goals reconciling immediate production needs with long-term sustainability and profitability.
• Technological Advancements adopting new technologies while maintaining operational efficiency.
• Regulatory and Environmental Constraints navigating increasingly stringent laws and stakeholder expectations.

Strategic Software Tools

Strategic Mine Planning software plays a crucial role in optimizing mining operations by aiding in the planning and evaluation of mine resources. The leading software products in this space typically focus on mine design, scheduling, resource optimization, and economic evaluation. Here are some of the top products widely recognized in the industry -

GEOVIA (Dassault Systèmes)

• Flagship Product GEOVIA Surpac, GEOVIA Whittle, and GEOVIA Minex.
• Capabilities Surpac - Geological modelling, mine planning, and survey tools. Whittle - Strategic mine planning with advanced pit optimization tools. Minex - Solutions for stratified deposits such as coal and lignite.
• Strengths Integration across geology, mine planning, and operational efficiency.

Deswik

• Capabilities Mine design, scheduling, and optimization for various mining methods. Support for both open-pit and underground operations. Strong reporting and scenario analysis tools.
• Strengths User-friendly interface and powerful integration options with other software.

Maptek

• Flagship Product Vulcan, Evolution, and BlastLogic.
• Capabilities Vulcan - Comprehensive mine planning and geological modelling. Evolution -: Long-term and medium-term scheduling and optimization. BlastLogic - Blast design and execution tools.
• Strengths Advanced 3D visualization and efficient scheduling capabilities.

Datamine (Epiroc)

• Flagship Product Studio RM, Studio OP, and Studio UG.
• Capabilities Studio RM - Resource modelling. Studio OP - Open-pit design and scheduling. Studio UG - Underground mine planning.
• Strengths Modular approach with tools for different phases of mining.

Micromine

• Flagship Product Micromine Origin and Pitram.
• Capabilities Origin - Geological modelling, resource estimation, and mine design. Pitram - Operational management for production monitoring and reporting.
• Strengths Cost-effective with a focus on user accessibility.

RPMGlobal

• Flagship Product XPAC Solutions and Minvu.
• Capabilities XPAC - Advanced mine scheduling and financial modelling. Minvu - Operational data integration and reporting.
• Strengths High-performance tools for enterprise-level strategic planning.

Hexagon Mining

• Flagship Product MinePlan (formerly MineSight).
• Capabilities Geological modelling, mine design, scheduling, and survey management. Seamless integration with Hexagon's suite of operational tools.
• Strengths Comprehensive solutions covering the full lifecycle of mining.

Schneider Electric – SimSci Mine Planning

• Capabilities Advanced simulation and optimization tools. Integration with broader energy management systems.
• Strengths Tailored for companies with a strong focus on sustainability and efficiency.

When choosing a mine planning software, consider the following -

• Type of operation (e.g., open cast, underground, or stratified resources).
• Integration capabilities with existing systems.
• Ease of use and training availability.
• Cost and licensing flexibility.
• Support for long-term strategic planning and economic evaluation.

2. Available Frameworks

There are several established frameworks for strategic mine planning that address key elements such as geological modelling, optimization, risk assessment, and sustainability.

COSMO Stochastic Mine Planning Framework developed at McGill University's COSMO Laboratory, this framework integrates stochastic modelling to handle uncertainties in geology, market dynamics, and operational conditions. It employs advanced optimization techniques to enhance resource valuation, production scheduling, and environmental management, including CO₂ sequestration strategies

CRC ORE Grade Engineering Framework this framework, focused on optimizing orebody value, uses grade engineering to enhance economic outcomes. It combines data on metallurgical and geological attributes with economic parameters to refine pit design and cut-off grade strategies. It emphasizes maximizing the resource's net value per ton

Stochastic Optimization in Mine Planning widely adopted in academic and industrial settings, this approach integrates non-linear and probabilistic models to manage risks in pit optimization and production scheduling. It provides flexibility by modelling multiple scenarios, enabling strategic decisions under uncertainty

These frameworks are implemented through tools and software that combine advanced simulation, optimization, and financial analysis, helping to align long-term strategies with operational goals. Depending on the specific project, these approaches can be customized to address unique challenges and objectives.

3. Software to Implement these Frameworks

There are several advanced software packages that implement frameworks for strategic mine planning, including COSMO, CRC ORE, and stochastic optimization methodologies.

KPI-COSMO Stochastic Mining Optimizer Developed through a partnership between KPI Mining Solutions and McGill University's COSMO Laboratory, this software focuses on stochastic mine planning. It incorporates multiple uncertainties, such as geological variability, commodity pricing, and operational conditions, to optimize mine production schedules across the entire value chain. It aims to increase the net present value (NPV) and provides a more dynamic approach than traditional deterministic models. It is currently tailored for open-pit operations, with plans to extend to underground mining in future iterations

Deswik Software this offers comprehensive mine planning tools that can integrate principles from frameworks like CRC ORE. It supports orebody modelling, production scheduling, and optimization with a focus on both operational efficiency and environmental sustainability. The software is widely used in the mining industry for medium to long-term planning

Whittle Consulting’s Enterprise Optimisation (EO) While not specific to the COSMO or CRC ORE frameworks, Whittle EO focuses on strategic optimization across the mining business value chain. It aligns with frameworks that consider financial, environmental, and operational variables to maximize overall value

Gurobi Optimizer Often used for academic and industrial applications, Gurobi is a mathematical optimization tool that has been employed in stochastic mine planning research. It can handle large-scale optimization problems, including those involving multi-scenario stochastic frameworks

These tools are examples of how mining operations can adopt advanced frameworks to enhance decision-making, manage risks, and optimize resource extraction. Each software may be best suited for specific planning needs or frameworks, and many offer trial or demonstration versions for evaluation.

There is a comparison table below where I have sought to compare the strengths and weaknesses of these frameworks -

Evaluating the available frameworks for strategic mine planning requires analyzing their capabilities across core dimensions such as flexibility, scalability, innovation, and real-world applicability. Below is a high-level comparison and rating of the three frameworks:

Framework Details

1. COSMO Stochastic Mine Planning Framework

• Flexibility: Highly adaptable, addressing geological uncertainty, dynamic pit optimization, and multi-decade planning.
• Scalability: Efficient in handling multi-asset portfolios with integration into long-term planning.
• Innovation: Built on cutting-edge stochastic optimization research. Strong focus on uncertainty modeling and value-chain optimization.
• Applicability: Widely applicable across different mine types and scales, particularly in gold, copper, and bulk commodities.
• Ease of Implementation: Requires advanced modeling expertise, making implementation complex for some operations.
• Integration Potential: Works well with existing scheduling tools and enterprise systems.

2. CRC OPE Grade Engineering Framework

• Flexibility: Focused on integrating orebody knowledge with engineering, but less versatile for broader stochastic optimization.
• Scalability: Best suited for medium-sized operations, as scaling to large, complex sites requires adaptation.
• Innovation: Innovative approach to grade control, blending strategies, and selective processing.
• Applicability: Practical for operations with challenging ore variability or high blending requirements.
• Ease of Implementation: Easier to adopt than COSMO but requires significant process alignment.
• Integration Potential: Can complement mine design tools, but deeper system integration is less straightforward.

3. Stochastic Optimization in Mine Planning

• Flexibility: Extremely versatile, covering resource modeling, scheduling, and financial optimization.
• Scalability: Handles diverse mine scales, from small operations to large multi-mine systems.
• Innovation: Built on probabilistic methods and advanced algorithms, offering the highest level of innovation in uncertainty management.
• Applicability: Applicable to almost all mining scenarios, with strong adoption in research-driven projects.
• Ease of Implementation: High complexity in implementation, often requiring collaboration with academic or specialist consultants.
• Integration Potential: Strong potential for integration with enterprise systems, financial planning, and advanced analytics platforms.

Key Takeaways

• COSMO leads in theoretical rigor and multi-decade uncertainty management but requires specialized expertise for adoption.
• CRC OPE focuses on practical, site-specific challenges, making it easier to adopt for smaller or medium-sized operations.
• Stochastic Optimization in Mine Planning offers unparalleled flexibility and scalability but has steep technical requirements.

The choice depends on the scale of operations, complexity of orebody, and the organization’s capacity to handle advanced modelling and integration.