Strategic Open Pit Mine Planning Course

LQS Latin America Avenida Luis Thayer Ojeda 0130 Ofi. 304, Providencia.
Santiago, Chile Tel: 562-6573898 Fax: 562-6573897

Toda la informacin contenida en este manual es de propiedad del Seor Kadri Dagdelen y cualquier reproduccin parcial o total de la misma ser sancionada legalmente.
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
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
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
Dispatch Systems
In Pit Crushing and conveying systems
Mineral Processing
Mining Project Cash Flow Analysis

Net Present Value Calculations
Mine Sequence, Cutoff grade and Process Flow NPV optimization
Papers by Kadri Dagdelen.
Surface Mine Design
Bingham Canyon Mine

Porphyry Copper
Case Study
Surface Mine Design
General Information
General Information
Surface Mine Design
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.
3
General Information
Surface Mine Design
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.
General Information
Surface Mine Design
Layout
General Information
Surface Mine Design
Geology
General Information
Surface Mine Design
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/m3 or equivalent tonnage factor of
12.38 ft3/ton.
Mine Plan
Surface Mine Design
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 34o; catch benches are
50 ft wide.
8
Mine Plan
Surface Mine Design
Typical Mining Sequence
Mine Plan
Surface Mine Design
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.
10
Mine Plan
Surface Mine Design
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.
11
Surface Mine Design
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.
12
Drilling
Drills operate 5 days per week and two 8-hour
shifts per day.
Surface Mine Design
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.
13
Drilling
Surface Mine Design
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.
14
Blasting
Surface Mine Design
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 downlines.
15
Blasting
Surface Mine Design
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.
16
Surface Mine Design
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.
17
Loading
Surface Mine Design
2 15-yd3 P&H2100; availability averages 78%; 10

Ktons per shovel shift.
4 27-yd3 P&H2800 Mark II; availability averages
80%; 15 Ktons per shovel shift.
3 30-yd3 P&H 2800 XP; availability averages
2 34-yd3 P&H 2800 XPA; availability averages
2 8-yd3 International; 1 12-yd3 Clark; 2 12-yd3
Caterpillar rubber tired FELs.
18
Surface Mine Design
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.
19
Haulage
Surface Mine Design
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
Surface Mine Design
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.
21
Road Maintenance
28 miles of haulage roads and 40 miles of service
roads.
Surface Mine Design
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).
22
Open Pit Mining Fundamentals
Surface Mine Design
Dr. Kadri Dagdelen

Colorado School of Mines
Terminology
BENCH: Ledge that forms a single level of
Surface Mine Design
operation above which mineral or waste materials

are mined from the bench face.
Terminology (Cont.)
Surface Mine Design
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.
Terminology (Cont.)
BENCH SLOPE OR BANK ANGLE : Horizontal
Surface Mine Design
angle of the line connecting bench toe to the bench

crest.
Terminology (Cont.)
Surface Mine Design
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.
Terminology (Cont.)
Surface Mine Design
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.
Terminology (Cont.)
The overall pit slope angle is affected by the width
Surface Mine Design
and grade of the haul road.
Terminology (Cont.)
HAUL ROADS: During the life of the pit a haul
Surface Mine Design
road must be maintained for access.

HAUL ROAD - SPIRAL SYSTEM: Haul road is
arranged spirally along the perimeter walls of the
pit.
Terminology (Cont.)
HAUL ROAD SWITCH BACK SYSTEM:
Surface Mine Design
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.
Surface Mine Design
Haul Road Effect on Pit Limits
10
Terminology (Cont.)
ANGLE OF REPOSE: Maximum slope of the
Surface Mine Design
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.)
Surface Mine Design
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.
12
Surface Mine Design
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.
13
Surface Mine Design
Single Working Bench
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Surface Mine Design
Shovel in Working Bench
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Surface Mine Design
Two Working Benches
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Surface Mine Design
Final Pit Limit
17
Surface Mine Design
Cresson Mine Year 2001
18
Surface Mine Design
19
Surface Mine Design
20
Surface Mine Design
Pit Sequence (1)
21
Surface Mine Design
Pit Sequence (2)
22
Surface Mine Design
Pit Sequence (3)
23
Surface Mine Design
Pit Sequence (4)
24
Surface Mine Design
Section of Pit Sequence
25
Open Pit Mine Planning and

Design: Fundamentals
Surface Mine Design
Dr. Kadri Dagdelen

Source: Hustrulid and Kuchta
Open Pit Mine Planning and Design
Surface Mine Design
Geometrical Considerations
Parts of a bench
Cumulative frequency
distribution of measured
bench face angles (Call, 1986).
Surface Mine Design
Functioning of catch benches.

Section through a working bench.
Surface Mine Design
Double benches at final pit limits.
Catch bench geometry (Call, 1986).
Typical catch bench design dimensions (Call, 1986).

Bench height
(m)
15
30
45
Impact zone
(m)
3.5
4.5
5
Berm height
(m)
1.5
2
3
Berm width Minimum bench width

(m)
(m)
4
7.5
5.5
10
8
13
Surface Mine Design
Safety berms at bench edge
Surface Mine Design
Height of reach as a function of bucket size.

6
Surface Mine Design
Example orebody geometry.

Ramp access for the example orebody.
Blast design for the ramp excavation.

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Surface Mine Design
Shovel Working Range
Surface Mine Design
Minimum width drop cut

geometry with shovel
alternating from side to side.
Surface Mine Design
Minimum width drop cut

geometry with shovel
alternating from side to side.
10
Surface Mine Design
Isometric view of the ramp in waste approaching the orebody.
Diagrammatic representation of the expanding mining front.

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Surface Mine Design
Dropcut / ramp placement in ore.
Expansion of the mining front.
12
Surface Mine Design
Plan view of an actual pit bottom

Showing drop cut and mining
Expansion (McWilliams, 1959).
13
Surface Mine Design
Extension of the current

Ramp close to the pit wall
(McWilliams, 1959).
14
Surface Mine Design
Creating initial access / benches.
Shovel cut sequence when initiating

benching in a hilly terrain (Nichols, 1956).
Sidehill cut with a shovel.
15
Surface Mine Design
Detailed steps in the development of a new production level.

16
Surface Mine Design
Parallel cut with drive by.

17
Surface Mine Design
Parallel cut with the double spotting of trucks.

18
Surface Mine Design
Parallel cut with the single spotting of trucks.

19
Surface Mine Design
Time sequence showing shovel

loading with single spotting.
20
Surface Mine Design
(Continued).
21
Surface Mine Design
Time sequence showing shovel

loading with double spotting.
22
Surface Mine Design
(Continued).
23
Surface Mine Design
(Continued).
24
Surface Mine Design
Section and plan views through a working bench.

Simplified presentation of a safety berm.
25
Surface Mine Design
Initial geometry for the push back example.
Cut mining from bench 1.
Cut mining from bench 2.
26
Surface Mine Design
Safety bench geometry

showing bench face angle.
Overall slope angle.
27
Surface Mine Design
Overall slope angle with ramp included.

Interramp slope angles.
28
Surface Mine Design
Overall slope angle with

Working bench included.
Interramp angles associated with
the working bench.
29
Surface Mine Design
Overall slope angle with

one working bench an a ramp section.
Interramp slope angles for a slope containing
a working bench and a ramp.
30
Surface Mine Design
Overall slope angle for a slope containing two working benches.

31
Surface Mine Design
Slopes for each working group.

32
Surface Mine Design
Final overall pit slope.

33
Advances in Pit Slope Management Systems
Dr. Kadri Dagdelen

Professor
Mining Engineering Department
Golden, Colorado 80401
Pit Slope Failure Problems

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Continue to be the source of human and financial

losses
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
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
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Failure plane must daylight

in the slope face; i.e. its dip
must be smaller than slope
(S>P)
Plane must strike parallel or
nearly parallel (within 20o) to
the slope face.
Less common than other
failure modes
Plane Failure in a Limestone

Quarry
Wedge Failure
NON-DAYLIGHTING
WEDGE
DAYLIGHTING WEDGE
Most common mode of

failure for rock slopes
Line of intersection
must daylight into
slope face
Often, failure is sudden
Circular Failure
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Soils
Stock piles
Reclamation piles
Waste dumps
Highly weathered overburden rocks
Toppling and Step-Path

Modes
Toppling
Mixed modes
(e.g. Toppling & Step-Path)
Overall Slope Design

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Identify geological sectors; their strength

characteristics and possible mode of failures
Determine maximum height and angle for interramp design
Determine bench geometry
Incorporate bench geometry into Inter-ramp
design
Overall slope design
Failure Modes in Different

Sectors
Pit Slope Monitoring

- What to look for
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Overhang rock
New geological structures
Swell and/or increased rock fall activity on highwall
Heavy precipitation
Signs of stress
Tension cracks
Movement (acceleration)
Increased water levels
Tension Crack Measurements

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The formation of cracks behind slope is a sign of instability

(Safety Factor 1)
Monitoring changes in crack width and direction can provide
information on extent of unstable area
Inclinometers
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Inclinometers measure horizontal

deflections of a borehole
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
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Consists of tensioned rods

anchored at different points in a
borehole.
Measures changes in distance

between anchors, as well as collar
Provides displacement
information across discontinuities.
New and Emerging Technologies

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Automated Total Station Network (robots)
Non-reflective Laser scanners (Lidar systems:

Cyra, Riegl, I-Site)
Radar Technologies
GPS (Local sensors with multiple antenna)
TDR (Time Domain Reflectometry)
Digital photogrammetry
Arial photography (Kodak)
Automated Total Station Network in

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

Station Network using Leica 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 Communication Network

Bridge
Bluebox
Switch
Energy
SHELTER 2
ARTURO ESTE
ARTURO OESTE
SHELTER 1
SHELTER 4
SHELTER 6
SHELTER 5
SHELTER 3
CONTROL ROOM
ETHERNET NETWORK
Location of Stations and Integration of

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.
SHELTER 2
ARTURO ESTE
ARTURO OESTE
SHELTER 1
SHELTER 4
SHELTER 6
SHELTER 5
SHELTER 3
CONTROL
CONTROL ROOM
ROOM
Total Station and Prism Locations in

Caseta
Oeste
Caseta
Este
GPS Surveyed Control Stations in

S2
S3
S4
S1
S5
D (PR-1)
E1 (PR-2)
PILAR GT-1
Matus (PR-3)
GT-1 PR-4
Morgan (PR-5)
D1
D2
APS-WEST.
D3
D5
ZONA-6
Norte : 2085.491
Este : 3870.863
Cota : 2846.745
Elev
D4
ZONA-5
ZONA-7
Coordenadas de la
Estacin de Monitoreo
APS(N;E;Z)
Slope Stability Radar Technology

from GroundProbe of Australia
Complete Pit Wall Coverage from

Remote Locations
Radar Scan Lines
Location and Time of Wall

Movements
Inc
r
disp easing
lace
me
nt w
ith t
ime
02:04 9th October 2003
Displacement (mm)
Slip Area
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 Images Screen
SSRViewer Figures Screen
10mm movement over 45

hours in Region 1
15mm movement over 45

hours in Region 3
0.0mm movement over 45 hours

in Region 2
Laser Scanning Technologies

There are Many 3D Laser Scanners
Major Companies with Products are:
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Cyrax (Leica) www.cyra.com (USA)

Optech ILRIS (Canada)
I-site (Maptek) www.isite3d.com (Australia)
LMS 3D Scanning systems (Riegl) www.riegl.co.at
(Austria)
Z+F Laser Measuring Systems (Zoller+ Frhlich)
www.zofre.de (Germany)
Cyrax 2400
Other Application in Laser Technologies

Riegl Z 210i Lidar Laser Scanner
Specifications
1200+ ft scan range
2.5cm accuracy @ 900 ft
5 cm accuracy > 900 ft
361 degrees x 80 degree scan
9000 Hz
Riegl LPM 800 HA

Specifications
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
Riegl Z 420 Lidar Laser Scanner

Specifications
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
High Wall Scan (Pre Blasting)
Post-Blast Scan
Pre Blast Triangles
Post Blast Triangles
Combined Pre / Post
Dynamic Cross Section
Complete Pit Scan using Riegl
Pit Wall Scan Using Riegl
Pit Wall Failure Scan - Riegle
Slope Monitoring Systems

Technology
Precision
SSR
GROUND
PROBE
0.2 mm Broad
Area
~ mins
850 m
Easy
(1.4km)
Yes
Laser
(Prisms)
~ 1s cm
Discrete
Points
Twice
Daily
2 km
Difficult
No
Broad
Area
~ secs
900 m
Easy
No
LIDAR
~ 1s cm
SCANNER
Wall
Coverage
Update
Rate
Range
Deployment
All
weather
Extensometers
~ 1s mm Discrete
Points
~ secs
n/a
Difficult
Yes
GPS
~ 1s cm
Discrete
Points
~ secs
n/a
Difficult
Yes
Broad
Area
~ hours
< 150 m Moderate
Photogram ~ 1s cm
-metry
No
Slide Management Options

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Reduce slope angle

Dewater unstable area
Leave unstable areas
Continue mining
Unload slide
Partial clean up
Step-out
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Reduce slope height by

segmenting the slope
Support unstable ground
Contingency Planning
Blasting
Erosion control measures
(reclamation)
- Geotextiles against erosion
and raveling
- Vegetating and planting
Leave Unstable Areas untouched

Instability can be left
alone if it is in
an abandoned area,
an inactive area,
an area that can be
avoided
Continue mining
Displacement (cm)
If the displacement rate is low and predictable,

living with the displacement while continuing to
mine may be the best action.
150
May continue mining

(displacement rate is constant)
100
50
1/4/02
5/4/02
11/4/02
Time
16/4/02
Basic Principles of Drainage

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Prevent surface water from entering to the slope through

open tension cracks and fissures
Reduce water pressure in the vicinity of the potential
failure surface
Providing for gravity flow of water is the most common
method
Pumping is used on a temporary basis depending on the
urgency of the problem
Method of Slope Drainage

Bench section view
Benches sloped
toward toe
Bench face view

Slope crest
Inclined bench for gravity flow
Horizontal Drain Network

(303 drains/34 miles since 1999)
T
AN
RM
DO
55
O
DE
RO
S
EMILY
IND
BL
60
60
K
EE
CR
JB
PATS
S
CHRISTY
RO
DE
O
T
IGH
DN
MI
CR
EE
K
60
EX
PLO
DIN
G
N-00-B
60
60
75
78
ANFO
LAST LA
85
UGH
ST
PO
60
FLOWER PATC
25
H
50
UL
ERF
POW
AMANDA
AN
JE
50
BL
IND
RO
DE
O
AN
TIP
OS
T
D
AN
GR
80
CR
EE
K
RO
DE
O
CR
EE
K1
Unload Side
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though unloading has been a common

response, in general it has been
unsuccessful.
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fact, there are situations involving high

water pressure where unloading actually
decreases stability.
Partial clean-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
Step-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
New Slope Design
Failure Surface
Step out
Originally Planned Slope Design
Old Overall Slope Angle

New (Flatter) Overall Slope Angle
Reduce slope height by

segmenting slope
Support unstable ground
Buttress
Rock Bolts
Anchors, Tiebacks, and

Shotcrete
1.
2.
3.
4.
5.
6.
Reinforced concrete dowel to

prevent loosening of slab at
crest
Tensioned rock anchors to
secure sliding failure along crest
Tieback wall to prevent sliding
failure on fault zone
Shotcrete to prevent raveling of
zone of fractured rock
Drain hole to reduce water
pressure within slope
Concrete buttress to support
rock above cavity
Mesh & Bolts
Buttressing
Buttressing
NE Wall Sept 2002

unwting cut
N-00-B
2% ramp & buttress
mudslide
4880 buttress
4640
4280
NE Wall Un-weighting Cut
2/1
/0
2/1 2
5/0
2
3/1
/0
3/1 2
5/0
3/2 2
9/0
4/1 2
2/0
4/2 2
6/0
5/1 2
0/0
5/2 2
4/0
2
6/7
/02
6/2
1/0
2
7/5
/0
7/1 2
9/0
2
8/2
/02
8/1
6/0
8/3 2
0/0
9/1 2
3/0
9/2 2
7
10 /02
/11
10 /02
/25
/0
11 2
/8
11 /02
/22
/0
12 2
/6
12 /02
/20
/02
1/3
/0
1/1 3
7/0
1/3 3
1/0
2/1 3
4/0
2/2 3
8/0
3
MOVEMENT IN (INCHES/DAY)
Prism Data Feb 2002 to Feb 2003

PRISM DATA - All In Movement Area
0.20
0.00
TN000084
-1.60
TN000089
-0.20
TN010095
TN010119
-0.40
TN 80
TN 72
-0.60
TN 97
TN 98
-0.80
TN 101
TN 114
-1.00
TN 115
TN 127
-1.20
TN 144
#4
-1.40
#3
-1.80
-2.00
DATE
TN 149
Blasting
Line
drill
holes
Pre-splitting
Production
holes
Face
Line drilling
Use of less
charges
next to toe
Slide Management Example

PUSHBACK DEVELOPMENT
Displacement rate
Normal
2 a 5 cm/day
Only ore production stripping
5 a 10 cm/day
Stop push-back development
> 10 cm/day
DESPLAZAMIENTO (cm)
D5
BENCH
300
250
y = 63.213x - 2E+06
200
150
Catch
Berm, 40
m.
H13
BENCH
SAFETY
BERM
y = 16.016x - 597363
y = 8.7432x - 326060
100
Failure
y = 5.6082x - 209126
50
0
1/2/02
6/2/02
11/2/02
16/2/02
TIEMPO
PUSHBACK
Access D5
& H13 closed
21/2/02
Took out
shovel
Contingency Planning
l
l
l
l
l
l
l
Provide multiple access to production faces

Maintain double access to working benches,
whenever possible
Stockpile ore/rock
Design to prevent noses in the plan geometry
Provide for failure costs in scheduling and budgeting
Add lag times in production scheduling
Plan step-outs
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 .
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
Surface Mine Design
Dr. Kadri Dagdelen

Haul Road Design

HAUL ROADS: During the life of the pit a haul
Surface Mine Design
road must be maintained for access.

HAUL ROAD - SPIRAL SYSTEM: Haul road is
arranged spirally along the perimeter walls of the
pit.
Haul Road Design

HAUL ROAD SWITCH BACK SYSTEM:
Surface Mine Design
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.
Surface Mine Design
Haul Road Effect on Pit Limits
Surface Mine Design
Considerations for Haul Road

Design
Visibility
Stopping distances
Vertical alignment
Horizontal alignment
Cross section
Runaway-vehicle safety
provisions
5
Sight Distances and Stopping

Distances
Surface Mine Design
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
6
Sight Distances and Stopping

Distances
Surface Mine Design
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
Sight Distance Diagrams
Surface Mine Design
Sight distance diagrams for horizontal and vertical curves

(Kaufman and Ault)
Stopping Distances
Surface Mine Design
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
Surface Mine Design
Stopping Distance
Characteristics
For example,
stopping
distance
characteristics
of vehicles of
200,000 to
400,000 pounds
GVW
(Kaufman and Ault)
10
Stopping Distances
Surface Mine Design
Prior to final road layout, manufacturers of

vehicles that will use the road should be
contacted to verify the service brake
performance capabilities
11
Vertical Alignment
Establishment of grades and vertical curves that
Surface Mine Design
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
12
Surface Mine Design
Vehicle Performance Chart
13
Surface Mine Design
Vehicle Retarder Chart
14
Vertical Alignment
Surface Mine Design
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
15
Vertical Alignment
Surface Mine Design
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
16
Vertical Curves
Surface Mine Design
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
17
Surface Mine Design
Stopping Distance vs. Vertical

Curve
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)
18
Horizontal Alignment
Surface Mine Design
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
19
Curves, Superelevation, and

Speed Limits
Surface Mine Design
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)
20

Speed Limits
Surface Mine Design
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
21
Surface Mine Design
Curve Superelevation
(CAT)
22
Recommended Superelevation
Rates
Surface Mine Design
If superelevation is not used, speed limits should be set on curves.
(Kaufman and Ault)

23

Speed Limits
Surface Mine Design
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
24
Combinations of Alignments
Avoid sharp horizontal curvature at or near the crest
Surface Mine Design
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
25
Cross Section
Surface Mine Design
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)
26
Surface Mine Design
California Bearing Ratio
27
Surface Mine Design
Subbase Construction
28
Cross Slopes
Surface Mine Design
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
29
Cross Slopes
Surface Mine Design
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%)
30
Recommended Rate of CrossSlope Change
Surface Mine Design
Slope change should be gradual.
(Kaufman and Ault)
31
Width
On straight or tangent segments, width

Surface Mine Design
depends on
Vehicle width
Number of lanes
Recommended vehicle clearance, which ranges
from 44 to 50% of vehicle width
32
Surface Mine Design
Minimum Road Design Widths

for Various Size Dump Trucks
(Couzens, SME Open Pit Planning and Design)
33
Surface Mine Design
Typical Design Haul Road

Width
Typical
design haulroad width
for two-way
traffic using
77.11-t (85st) trucks
(Couzens, SME Open Pit Planning and Design)
34
Surface Mine Design
Typical Haulageway Sections
(Kaufman and Ault)
35
Width
Surface Mine Design
Berm height 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)
36
Haulageway Widths on Curves
Surface Mine Design
37
Safety Provisions - Berms
Triangular or trapezoidal made by using local

Surface Mine Design
material
Stands at natural angle of repose of construction

material
Redirects vehicle onto roadway
Minimum height at rolling radius of tire
38
Berms
Larger boulders backed with earthen material

Surface Mine Design
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
39
Runaway Provisions
Surface Mine Design
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
40
Runaway Provisions
Surface Mine Design
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
Provision Spacing
10 mph 20 mph
1,000 ft 800 ft
(Kaufman and Ault)

41
Surface Mine Design
Runaway Precautions
(Atkinson SME Handbook)
42
Median Runaway-Vehicle
Provision Berms
Surface Mine Design
Vehicle straddles collision berm and 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
43
Surface Mine Design
Median Runaway-Vehicle
Provision Berms
Requires maintenance in freezing conditions

Agitation to prevent damage to vehicle
May cover berm in high rainfall areas
44
Escape Lanes
Surface Mine Design
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
45
Escape Lanes
Surface Mine Design
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
46
Surface Mine Design
Escape Lanes
47
Maintenance
Surface Mine Design
The road surface is
deformed by the constant

pounding of haulage
vehicles.
A good road maintenance
program is necessary for
safety and economics.
48
Safety Considerations
Surface Mine Design
Dust, potholes, ruts, depressions, bumps, and

other conditions can impede vehicular
control.
49
Economic Considerations
The wear on every component is increased when a
Surface Mine Design
vehicle travels over a rough surface.

If the vehicle brakes constantly, unnecessary lining
wear occurs as well.
50
Dust Control
Surface Mine Design
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.
51
Deterioration Factors
Surface Mine Design
Weather
Vehicles follow a
similar path
Spillage
52
Motor Graders
Surface Mine Design
A motor grader
should be used to
maintain cross slopes,
remove spills, and to
fill and smooth
surface depressions as
they occur.
53
Road Drainage
Surface Mine Design
To avoid overflow, roadside ditches and
culverts should be periodically cleaned.

Avoid erosion or saturation of subbase
materials.
54
Haul Road Design
Surface Mine Design
Open Pit Contour Maps

Dr. Kadri Dagdelen
Source: Hustrulid and Kuchta
Surface Mine Design
Example of Mapping Procedure
Surface Mine Design
Plan View of a Portion of the

Open Pit
Crests denoted by dashed lines and toes by solid lines.
Surface Mine Design
Example of Mapping Procedure
Surface Mine Design
Midbench Elevation
Surface Mine Design
Plan View of Midbench Elevation
Surface Mine Design
Map Based on Midbench Contours
Surface Mine Design
Procedure to Convert Midbench to

Toe and Crest Contours
Surface Mine Design
Representation of Crests and Toes
Surface Mine Design
Designing a Spiral Ramp Inside

the Wall
10
Surface Mine Design
Completing the new crest lines
11
Surface Mine Design
Pit Layout Including Ramp
12
Surface Mine Design
Design of a Spiral Ramp Outside

the Wall
13
Surface Mine Design
14
Surface Mine Design
Design of a Switchback
15
Surface Mine Design
16
Surface Mine Design
17
Surface Mine Design
18
Surface Mine Design
Example of Two Switchbacks
19
Surface Mine Design
Plan and Section Views of Pit

Without Ramp
20
Surface Mine Design
Plan and Section Views of Pit

With Ramp
21
Surface Mine Design
Road Volume in the Ramp
22
Surface Mine Design
Block Modeling and Ore Reserves

Estimation
Dr. Kadri Dagdelen
Surface Mine Design
Basic Block Model Information
Topography Data
Drill Data
Sampling
Assays
Surface Mine Design
Topography Data
3D Display (Color Coded Elevations)
Drill Data
Surface Mine Design
Drill Hole Data Sources
Collar Coordinates
Geologic Logs
Down Hole Surveys
Lab Tests
Samplings
Surface Mine Design
Sampling Data
Rock Types
Alteration Types
Metal Grades
Attributes
Surface Mine Design
Samplings (Cont.)
Data Collections
Surface Mine Design
Assays
Assay Data for Cu and Mo

Multiple Cutoffs
Rock Types
Alterations
7
Surface Mine Design
Geological Interpretation
Section View Showing

Topography and Alteration Types
Surface Mine Design
Boundaries for rock types
Surface Mine Design
Color Filled Display for Alteration Types
10
Surface Mine Design
3D Geological View
3D Display of Alteration Type Solids

(With Drill Hole Piercing Points)
11
Surface Mine Design
Composites
Composited Grade Data with Corresponding

Assay Interval Data
12
Surface Mine Design
3D Block Models
3D View of the Block Models
13
Surface Mine Design
Block Estimation
Kriging - Geological Interpolation Technique for

Ore Reserve Estimation
14
Surface Mine Design
Block Values
Block by Block Profit Values in Association with

Block Grade Data and Alteration Type Boundaries
15
Surface Mine Design
Block Models
Interpolated Grades from Drill Hole Data
16
Surface Mine Design
Ore Reserve Estimation
Interpolated Grades from Drill Hole Data
17
Surface Mine Design
Economic Pit Limits
Economic Pit Limits for Different Economic Scenarios
18
Surface Mine Design
3D View of Economic Pit Limits
3D View of Economic Pit Limits for Different

Economic Scenarios
19
Surface Mine Design
Mine Planning Application

(Open Pit Mine)
Yearly Maps for the Open Pit Mine Scheduling
20
Surface Mine Design
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
21
Surface Mine Design
Frequency and Cumulative Frequency Plots
Classical Statistics
Data Posting and Display
Histograms
Cumulative Histograms
Probability Plots
22
Inverse Distance Technique
Surface Mine Design
Inverse distance technique is the simplest

interpolation method.
Give more weight to the closest samples, and less
to those that are farthest away.
In general,
1
d ip
wi = n
1
p
i =1 d i
1
n
di p
v = n
vi
1
i =1
p
d
i =1
i
n
v = wi vi
i =1
wi = 1
i =1
23

(pg257)
Surface Mine Design
We can make the weights inversely

proportional to any power of the distance.
If p=2, it is called Inverse Distance Square.
v4
d3
v1 d
1
v2
d2
d4
v3
Inverse Distance Square

v =
1
2
d1
4
i =1
1
di2
v1 +
1
2
d2
4
i =1
1
di2
v2 +
1
2
d3
4
i =1
1
di 2
v3 +
1
2
d4
4
i =1
v4
1
di2
24
Inverse Distance Square Example
Estimate the unknown point

Distance Square technique
Surface Mine Design
V3=0.5
d3=4
by using the Inverse
v1= 0.2 d1 =1
d1=1
V1=0.2
V2=0.3
d2=2
v2= 0.3 d2 =2
v3= 0.5 d3 =4
v = ?
25
First of all, calculate the weights w1, w2, w3
Surface Mine Design
w1 =
w2 =
w3 =
1
12
1
12
1
12
+
+
+
1
12
1
22
1
22
1
22
1
42
1
22
+
+
+
1
42
1
42
1
42
21
16
16
=
21
1
4
21
16
4
=
21
1
16
21
16
1
=
21
Note:
w1 + w2 + w3 = 1
26
Surface Mine Design
Then, calculate v
v =
16
4
1
0.2 + 0.3 + 0.5 = 0.233
21
21
21
27
Estimation Error
Surface Mine Design
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
28
Surface Mine Design
Histogram of Errors
29
Scatter Graph
True grades agai n s t E s t i mated grades
0.90
0.70
E s t i mated (%)
Surface Mine Design
0.80
0.60
0.50
0.40
0.30
0.20
0.10
0.00
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
True (%)
30
Surface Mine Design

MNGN312 - MNGN512
Surface Mine Design
Lecture 5
September 14, 2004
Instructor
Dr. Kadri Dagdelen
Surface Mine Design
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.

Estimate the grade of the block (block size 75ft x 75ft)
for exploration data set.
Estimate the
center point
75ft
Surface Mine Design
v1
v2
75ft

Rectangular search neighborhood of 37.5ft x 37.5ft.
75ft
Surface Mine Design
37.5ft
37.5ft
37.5ft
37.5ft
75ft
Use all the exploration holes within a given block (For this
block, use 3 exploration samples)
4
Surface Mine Design
Inverse distance technique is the simplest interpolation

method.
Give more weight to the closest samples, and less to
those that are farthest away.
In general,
Unknown point
1
d ip
wi = n
1
p
i =1 d i
1
n
di p
v = n
vi
1
i =1
p
d
i =1
i
Sampling points
Weights
v = wi vi
i =1
wi = 1
i =1
Surface Mine Design
We can make the weights inversely proportional to any

power of the distance.
If p=2, it is called Inverse Distance Square (IDS).
v4
d3
v1 d
1
v2
d2
d4
v3
Inverse Distance Square

v =
1
2
d1
4
i =1
1
di2
v1 +
1
2
d2
4
i =1
1
di2
v2 +
1
2
d3
4
i =1
1
di 2
v3 +
1
2
d4
4
i =1
v4
1
di2
Estimate the unknown point

Distance Square technique
Surface Mine Design
V3=0.5
d3=4
by using the Inverse
v1= 0.2 d1 =1
d1=1
V1=0.2
V2=0.3
d2=2
v2= 0.3 d2 =2
v3= 0.5 d3 =4
v = ?
7
First of all, calculate the weights w1, w2, w3
Surface Mine Design
w1 =
w2 =
w3 =
1
12
1
12
1
12
+
+
+
1
12
1
22
1
22
1
22
1
42
1
22
+
+
+
1
42
1
42
1
42
1
21
16
16
21
1
4
21
16
4
=
21
1
16
21
16
Note:
w1 + w2 + w3 =
16 + 4 + 1
=1
21
1
21
Then, calculate v
v =
16
4
1
0.2 + 0.3 + 0.5 = 0.233
21
21
21
Surface Mine Design
d1
25
g1 25
d1 = 25 2 + 25 2 = 35.36
9
Surface Mine Design
0.0008
0.0032
Block1
Centered on
(X=37.5, Y=37.5)
X
12.5
62.5
37.5
Y
12.5
12.5
62.5
vi
0.42
0.24
0.41
x dist
25
-25
0
y dist
25
25
-25
di
35.35534
35.35534
25
1/di 2
0.0008
0.0008
0.0016
0.0032
wi
wi*vi
0.25
0.105
0.25
0.06
0.5
0.205
1
0.37
(Estimated Grade)
2
i =1 di
10
Surface Mine Design
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.
11
Geologic Block Model

Reconciliation
Surface Mine Design
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
12

Reconciliation
Surface Mine Design
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
13

Reconciliation
Histogram of Error (Example of 100ft x 100ft estimation)

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%
3.5
100.00%
90.00%
80.00%
2.5
Frequency
Surface Mine Design
Histogram of Estimation Errors (Estimation - True)
70.00%
60.00%
50.00%
1.5
40.00%
30.00%
20.00%
0.5
10.00%
0.00%
-0.2 -0.15 -0.1 -0.05
0.05 0.1
Bin
0.15 0.2
0.25 More
Frequency
Cumulative %
14

Reconciliation
Scatter Graph (Example of 100ft x 100ft estimation)

True grades agai n s t E s t i mated grades
Draw a diagonal line

(y=x) to show perfect
estimation line.
0.80
0.70
E s t i mated (%)
Surface Mine Design
0.90
0.60
0.50
0.40
0.30
0.20
0.10
0.00
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
True (%)
15
Univariate Distribution of
Errors
Surface Mine Design
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.
16
Univariate Distribution of
Errors
Surface Mine Design
We would like to see the error distribution has small

spread.
a)
b)
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).
17
Surface Mine Design
Over and Under Estimation
a)
b)
a) Negative mean: A general tendency towards the

underestimation.
b) Positive mean: A general tendency towards the

overestimation.
18
Scatter Diagrams in Estimation
True
Under Estimation at
Low Grade
Estimation
Over Estimation at
High Grade
Estimation
Estimation
Surface Mine Design
Good Estimation
True
True
Good Estimation: Falling closer to diagonal on

which perfect estimates would plot.
19
Scatter Diagrams in Estimation

Under Estimation at
Low Grade
Estimation
Estimation
Surface Mine Design
Over Estimation at
Low Grade
True
True
20
Surface Mine Design
Floating Cone Algorithm
Dr. Kadri Dagdelen
Basic Procedure
Surface Mine Design
Top
-1
+1
-1
-1
-1
-1
-1
+3
-1
-1
Bottom
Left
Right
-1
-1
-1
-1
-1
-1
Heuristic procedure
2
Floating Cone Steps
Surface Mine Design
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.
Example
Surface Mine Design
-1
-1
-1
-1
-1
+1
-2
-2
+4
-2
-2
+7
+1
-3
-1
Ore
Waste
Initial Block Model
Example
Surface Mine Design
-1
-1
-1
-1
-1
+1
-2
-2
+4
-2
-2
+7
+1
-3
-1
Ore
Waste
Mined
Step 1
Example
Surface Mine Design
-1
-1
-1
-1
-1
+1
-2
-2
+4
-2
-2
+7
+1
-3
-1
Ore
Waste
Mined
Step 2
Example
Surface Mine Design
-1
-1
-1
-1
-1
+1
-2
-2
+4
-2
-2
+7
+1
-3
-1
Ore
Waste
Mined
Step 3
Example
Final Pit
Surface Mine Design
-1
-2
+1
-2
-3
Shortcomings
Missing Combinations of Profitable Blocks
Surface Mine Design
-1
-1
-1
-1
-1
-1
-2
-2
-2
-2
-2
+10
-3
+10
-1
Ore
Waste
Initial Block Model
Shortcomings
Surface Mine Design
-1
-1
-1
-1
-1
-1
-2
-2
-2
-2
-2
+10
-3
+10
-1
Ore
Waste
Considered but rejected
Step 1
10
Shortcomings
Surface Mine Design
-1
-1
-1
-1
-1
-1
-2
-2
-2
-2
-2
+10
-3
+10
-1
Ore
Waste
Step 2
There are no blocks to be mined wrong solution
11
Shortcomings
Surface Mine Design
-1
-1
-1
-1
-1
-1
-2
-2
-2
-2
-2
+10
-3
+10
-1
Ore
Waste
Mined (Correct solution)
Final Pit
-3
Correct solution
12
Shortcomings
Over-mining
Surface Mine Design
-1
-1
-1
-1
+5
-2
-2
+5
-1
Ore
Waste
Initial Block Model
13
Shortcomings
Over-mining
Surface Mine Design
-1
-1
-1
-1
+5
-2
-2
-1
+5
Ore
Waste
Mined
First block analyzed

The search process was started from bottom to top.
Everything is mined out.
14
Shortcomings
Over-mining
Surface Mine Design
-1
-1
-1
-1
+5
-2
-2
-1
Ore
Waste
Mined
+5
Final Pit
-1
-2
-1
-2
+5
Correct solution
15
Shortcomings
Combination of problems
Surface Mine Design
-1
-1
-4
-1
+5
-4
+5
+3
-1
Ore
Waste
Initial Block Model
16
Shortcomings
Surface Mine Design
-1
-1
-4
-1
+5
-4
+5
+3
-1
Ore
Waste
First Step
17
Shortcomings
Surface Mine Design
-1
-1
-4
-1
+5
-4
+5
+3
-1
Ore
Waste
Second Step
18
Shortcomings
Surface Mine Design
-1
-1
-4
-1
+5
-4
+5
-1
+3
Ore
Waste
Mined
Wrong Solution
Everything is mined out.
19
Shortcomings
Surface Mine Design
-1
-1
-4
-1
+5
-4
+5
+3
-1
Ore
Waste
Mined
Final Pit
-4
+3
Correct Solution
20
Surface Mine Design
Example
Initial Data
% recovery through mill and smelter
Value of recovered copper
Stripping and haulage to dump (level 1)
Mining and transportation to plant level
Haulage cost increase per ton per bench
Processing, smelting and refining
General overhead, administration, etc.
Ultimate Pit Slope
90.00%
$1.00
$0.50
$0.80
$0.10
$1.20
$1.20
1:1
per lb
per ton
per ton
per ton/bench
per ton
per ton
21
Example
Geologic Model
Surface Mine Design
0.00
1.15
0.08
0.05
0.00
0.00
0.00
1.25
1.15
1.13
0.00
1.13
1.15
0.50
0.05
Copper Grades (%)
22
Example
Block Values
Surface Mine Design
P = Price
s = Sales Cost
Ore Block:
c = Processing Cost
BV = ( P s) * g B * y c m
y = Recovery
m = Mining Cost
gB = Block Grade
Waste Block:
BV = m
BV = Block Value
23
Example
Economic Model
Surface Mine Design
-0.50
17.50
-0.50
-0.50
-0.50
-0.50
-0.60
19.20
17.40
17.04
-0.60
16.94
17.30
-0.70
-0.50
Value per block ($/ton)
24
Example
Economic Model
Surface Mine Design
-0.50
17.50
-0.50
-0.50
-0.50
-0.50
-0.60
19.20
17.40
17.04
-0.60
16.94
17.30
-0.70
-0.50

BV = (1 0) *1.15 / 100* 2000* 0.9 2.4 0.8 = 17.5
25
Example
Economic Model
Surface Mine Design
-0.50
17.50
-0.50
-0.50
-0.50
-0.50
-0.60
19.20
17.40
17.04
-0.60
16.94
17.30
-0.70
-0.50

BV ($ / ton) = (1 0) * 0.0 / 100* 2000* 0.9 2.4 0.8 = 3.2
BV ($ / ton) = 0.6
If mined as ore
If mined as waste
26
Example
Economic Model
Surface Mine Design
-1
18
-1
-1
-1
-1
-1
19
17
17
-1
17
17
-1
-1

Values rounded to the nearest $
27
Example
-1
18
-1
-1
-1
-1
19
17
17
-1
17
17
-1
-1
Surface Mine Design
-1
1st Increment
28
Example
-1
18
-1
Surface Mine Design
-1
-1
-1
-1
17
17
-1
17
-1
19
17
-1
2nd Increment
29
Example
Surface Mine Design
-1
18
-1
-1
19
-1
17
17
-1
17
-1
-1
-1
17
-1
3rd Increment
30
Example
Surface Mine Design
-1
18
-1
-1
19
17
-1
17
-1
17
3
17
-1
-1
-1
4
-1
4th Increment
31
Example
-1
18
Surface Mine Design
-1
1
-1
-1
2
19
17
-1
2
17
-1
3
17
3
17
-1
4
-1
4
-1
5th Increment
32
Example
-1
18
Surface Mine Design
-1
1
-1
-1
2
19
17
-1
2
17
17
3
17
5
-1
3
-1
4
-1
4
-1
6
6th Increment
33
Example
Surface Mine Design
-1
-1
-1
Ultimate Pit Limit
34
Example
Total Economic Value
Surface Mine Design
-5,000
175,000
-6,000
-5,000
-5,000
-5,000
-5,000
192,000 174,000 170,400

169,400 173,000
Value Per block considering:

Tonnage/block = 10,000 tons
35
Example
Pit Reserves
Surface Mine Design
Bench
Ore tons
Waste tons
S.R.
1
2
3
10,000
30,000
20,000
50,000
10,000
0
5.00
0.33
0.00
150,000
530,400
342,400
Total
60,000
60,000
1.00
1,022,800
36
Surface Mine Design
Manual Pit Design
Dr. Kadri Dagdelen
Manual Pit Design

Stripping Ratio
Surface Mine Design
S .R.( Breakeven) =
Re cov ered Value ($ / ton) Total Pr oduction Cost ($ / ton)

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

Stripping Cost ($ / ton )
Surface or Underground Breakeven =
$5.04 / ore ton $0.70 / ore ton

= 6.58 : 1
$0.66 / waste ton)
Manual Pit Design

Example
Surface Mine Design
Ore Grade (%Cu)
0.90
0.85
0.75
0.70
0.65
0.50
0.40
Conc. Recovery (%)

Smelt. Recovery (%)
Ref. Recovery (%)
0.900
0.980
0.990
0.900
0.980
0.990
0.900
0.980
0.990
0.900
0.980
0.990
0.900
0.980
0.990
0.900
0.980
0.990
0.900
0.980
0.990
Total Recovery (%)
0.873
0.873
0.873
0.873
0.873
0.873
0.873
15.7
14.8
13.1
12.2
11.3
8.7
7.0
Finance
Mining
Concentration
Smelter
Refining
0.62
0.70
2.68
1.70
1.80
0.62
0.70
2.68
1.48
1.57
0.62
0.70
2.68
1.38
1.36
0.62
0.70
2.68
1.29
1.27
0.62
0.70
2.68
1.21
1.20
0.62
0.70
2.68
1.19
1.16
0.62
0.70
2.68
1.18
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
Recovered Quantity (lb/ton)

Costs per ton
Breakeven stripping ratio

Copper Price ($/lb)
0.90
0.75
0.70
0.65
BESR =
10.07
6.50
5.31
4.12
9.56
6.19
5.06
3.94
15.7 lbs $0.90 / lb $7.5 / ton of ore

= 10.07
$0.66 / ton of waste
7.65
4.67
3.68
2.69
6.73
3.95
3.03
2.10
5.70
3.13
2.27
1.42
2.29
0.30
-0.36
-1.02
-0.02
-1.61
-2.14
-2.67
Manual Pit Design

Stripping Ratio Grade - Price
S.R. - Ore Grades - Cu Prices
12.00
8.00
Stripping Ratio
Surface Mine Design
10.00
6.00
0.90 $/lb
0.75 $/lb
0.70 $/lb
0.65 $/lb
4.00
2.00
0.00
0.40
-2.00
0.50
0.60
0.70
0.80
0.90
-4.00
% Cu
Manual Pit Design

Hypothetical Cross Section
Surface Mine Design
Topo
X'
X
SR =
X'
Y'
SR =
Y'
X
Y
Orebody
Y
Surface Mine Design
Manual Pit Design

S.R. in Section
First
First
X = 30
X = 10
Y = 5
Y=5
S.R. = 6
S.R. = 2
G = 0.67%
G = 0.48%
Second
Second
X = 39.6
X = 15
Y = 6
Y=3
S.R. = 6.6 (Breakeven)
S.R. = 5
G = 0.70%
G = 0.70%
Current Price = 0.90

$/lb
5 : 1 < 6.6 : 1 OK
Surface Mine Design
Manual Pit Design

Repeat for All Sections
Pit contour
or Final pit
Surface Mine Design
Cutoff Grade Optimization
Dr. Kadri Dagdelen
Surface Mine Design
Factors Influencing The Cutoff

Grades
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)
What Is Cutoff Grade

1.
Surface Mine Design
2.
3.
4.
5.
Cutoff Grade is defined as the grade that is normally used to

discriminate between ore and waste within a given deposit
Cutoff Grade is the dial that is used to adjust the cash flow
coming from the mining operations in a given year
The Cutoff Grade policy allows a mining company to fine tune
their operation with respect to a given financial objective
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
The overall influence of Cutoff Grade policy on the economics
of an operation is profound
3
Surface Mine Design
Economic Objectives And The

Cutoff Grade
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.
Surface Mine Design
Economic Objectives And The

Cutoff Grade (Cont.)
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.
Surface Mine Design
Ultimate Pit Cutoff
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.
6
Surface Mine Design
Ultimate Pit Cutoff
Price (P)
Sales Cost (s)
Processing Cost (c)
Recovery (y)
Mining Cost (m)
Overhead
(Included in c and m )
$400/oz
$5 /oz
$ 10/ ton ore
90 %
$ 1.20/ ton
Surface Mine Design
Ultimate Pit Cutoff

Milling Cost + Mining Cost
gm =
(Pr ice Sales Cost ) * Re cov ery
$10 + $1.2
gm =
= 0.0315 oz / ton
($400 $5) * 0.9
8
Surface Mine Design
Milling Cutoff
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.
Surface Mine Design
Milling Cutoff
Milling Cost
gc =
$10
gc =
= 0.0281 oz / ton
($400 $5) * 0.9
10
Surface Mine Design
Block Value
Block Grade = gB
if gc < gm < gB then
Block Value = (P-S)* gB * y c m
Else if gB
Block Value = -m
<
gm
<
gc then
11
Surface Mine Design
Block Value
Block Grade = gB
if gc < gB < gm then
Block contains marginal ore.
Marginal ore pays for processing cost

but not for mining cost.
12
Block Value Calculation Example
Surface Mine Design
a)
Ore Block
Block grade = gB = 0.11 oz/ton
gc < gm < gB
0.0281 < 0.0315 < 0.11
Block Value = (P-S)* gB * y c m
Block Value = (400 - 5)*0.11*0.9 - 10 - 1.20
= $27.9/ton of block
13
Surface Mine Design
Block Value Calculation Example

b) Waste Block
Block Grade = gB = 0.01 oz/ton
gB < gc < gm
0.01 < 0.0281 < 0.0315
therefore
Block Value = - $1.20/ton
= Mining Cost
14
Surface Mine Design
Mine Design Parameters For The

Case Study
Price (P)
Sales Cost (s)
Processing Cost (c)
Recovery (y)
Mining Cost (m)
Fixed Costs (fa)
Mining Capacity (M)
Milling Capacity (C)
Capital Costs (CC)
Discount Rate (d)
$600/oz
$5 /oz
$ 19/ ton ore
90 %
$ 1.20/ ton
8.35 M/year
Unlimited
1.05 M
105 M
15%
15
Surface Mine Design
Calculation of Ultimate Pit

Cutoff Grade
gm =
$19 + $1.2
gm =
= 0.038 oz / ton
($600 $5) * 0.9
16
Surface Mine Design
Calculation of Milling Cutoff

Grade
Milling Cost
gc =
$19
gc =
= 0.035 oz / ton
($600 $5) * 0.9
17
Grade Tonnage Distribution
Surface Mine Design
Grade Interval
0.000
0.020
0.025
0.030
0.035
0.040
0.045
0.050
0.055
0.060
0.065
0.070
0.075
0.080
0.100
0.020
0.025
0.030
0.035
0.040
0.045
0.050
0.055
0.060
0.065
0.070
0.075
0.080
0.100
0.358
KTons
70,000
7,257
6,319
5,591
4,598
4,277
3,465
2,428
2,307
1,747
1,640
1,485
1,227
3,598
9,576
Avg. Interval
Grade
0.0100
0.0225
0.0275
0.0325
0.0375
0.0425
0.0475
0.0525
0.0575
0.0625
0.0675
0.0725
0.0775
0.0900
0.2290
KTons
Grade
89,167
Waste
Cutoff Grade 0.035
Ore
36,348
0.1023
Oz/ton
18
Constant Cutoff Grades.

Yearly Tons and Grade Schedules.
Table 3
Surface Mine Design
Year
1
2
3
4
5
6
7
8
9
10
For 11 to 34
35
TOTAL
Cutoff
Grade
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
0.035
Avg
Grade
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
0.102
QM
Qc
Qr
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.4
125.8
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.00
36.70
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
91.7
3365.9
Profits
$M/year
33.0
33.0
33.0
33.0
33.0
33.0
33.0
33.0
33.0
33.0
33.0
31.4
1154.2
NPV $M 218.5
19
Profit
Surface Mine Design
Profits ($M) = (P s ) x Qr Qc x c Qm x m
P
S
Qm
Qc
Qr
c
m
Price
Sales Cost
Total Material Mined
Ore Tonnage Processed By The Mill
Recovered Ounces
Milling Costs ($/ton)
Mining Costs ($/ton)
20
Surface Mine Design
Shortcomings of the traditional

cutoff grades
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.
21
Traditional
Surface Mine Design
Milling Cost + Depreciati on + Minimum Pr ofit

gc =
$19 + $10 + $3
gc =
= 0.060 oz / ton
($600 $5) * 0.9
22
Surface Mine Design
Nontraditional ????????
Milling Cost + Depreciation
gc =
$19 + $10
gc =
= 0.054 oz / ton
($600 $5) * 0.9
23
Constant Cutoff Grades

Yearly Tons and Grade Schedules
Table 4
Surface Mine Design
Year
1
2
3
4
5
6
7
8
9
10
For 11 to 27
28
TOTAL
Cutoff
Grade
0.060
0.060
0.060
0.060
0.060
0.054
0.054
0.054
0.054
0.054
0.035
0.035
0.035
Avg
Grade
0.153
0.153
0.153
0.153
0.153
0.141
0.141
0.141
0.141
0.141
0.102
0.102
0.102
Qm
Qc
Qr
6.90
6.90
6.90
6.90
6.90
6.00
6.00
6.00
6.00
6.00
3.60
0.30
125.80
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
0.09
28.44
144.60
144.60
144.60
144.60
144.60
132.80
132.80
132.80
132.80
132.80
96.30
8.10
3032.10
Profits
$M/year
57.8
57.8
57.8
57.8
57.8
51.9
51.9
51.9
51.9
51.9
33.0
2.8
1112.7
NPV $M 355.7
24
Surface Mine Design
Declining Cutoff Grades

Milling Cost + Depreciation + Fixed Cost
gc =
$19 + $10 + $7.95

gc =
= 0.069 oz / ton
($600 $5) * 0.9
25
Surface Mine Design

Milling Cost + Fixed Cost
gc =
$19 + $7.95
gc =
= 0.050 oz / ton
($600 $5) * 0.9
26
Surface Mine Design
Milling Cost + Depreciation + Minimum Pr of . + Fixed Cost

gc =
$19 + $10 + $3 + $7.95

gc =
= 0.075 oz / ton
($600 $5) * 0.9
27
Surface Mine Design
Milling Cost
gc =
(Pr ice Sales Cost) * Re cov ery
$19
gc =
= 0.035 oz / ton
($600 $5) * 0.9
28
Surface Mine Design

Yearly Tons and Grade Schedules.
Table 5
Year
Cutoff
Grade
Avg
Grade
QM
Qc
Qr
**Profits
$M/year
1
2
3
4
5
6
7
8
9
10
For 11 to 17
18
0.075
0.075
0.075
0.075
0.075
0.069
0.069
0.069
0.069
0.069
0.050
0.050
0.182
0.182
0.182
0.182
0.182
0.169
0.169
0.169
0.169
0.169
0.132
0.132
9.2
9.2
9.2
9.2
9.2
8.2
8.2
8.2
8.2
8.2
5.4
1.3
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
0.26
171.6
171.6
171.6
171.6
171.6
160.0
160.0
160.0
160.0
160.0
124.8
30.5
62.8
62.8
62.8
62.8
62.8
57.1
57.1
57.1
57.1
57.1
39.5
9.6
125.8
18.11
2562.5
885.6
NPV $M 357.7
TOTAL
**Profits ($M)= (P-s) x Qr Qc x c Qm x m f a
29
Surface Mine Design

Determination Of
Optimum Cutoff Grades
When The Mill
Is Bottleneck
30
Surface Mine Design
Formula for Optimum Cutoff

Grade
c + f + Fi
gc (i) =
(P S ) * y
Where
Fi = d x NPVi /C
f = fa/C
and fa is annual fixed costs
31
Surface Mine Design
Optimum Cutoff Grades

Yearly Tons and Grade Schedules
Table 6
Year
Cutoff
Grade
Avg
Grade
QM
Qc
Qr
**Profits
$M
NPV
$M
1
2
3
4
5
6
7
8
9
0.161
0.152
0.142
0.131
0.120
0.107
0.092
0.079
0.065
0.259
0.255
0.250
0.245
0.239
0.232
0.213
0.188
0.163
18.0
17.2
16.5
15.7
14.9
14.1
12.1
9.8
7.6
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
245.2
241.0
236.4
231.3
225.7
219.6
200.9
177.9
153.6
95.9
94.4
92.6
90.5
88.1
85.4
76.7
65.9
53.9
413.8
380.0
342.6
301.4
256.1
206.4
152.0
98.1
46.9
125.8
9.45
1931.4
743.4
NPV $M 413.8
TOTAL
**Profits ($M)= (P-s) x Qr Qc x c Qm x m f a

32
Summary
Surface Mine Design
Avg
Grade
Total
Amount
mined
Qm
Total
Amount
processed
Qr
Strip
Ratio
Profits
NPV
$M
$M
Life Undiscounted
% Reduction
INC
CUM
yrs
NPV
% Increase
INC CUM
Traditional
0.102
125.8
36.70
2.43
4453.4
218.5
35
n/a
n/a
n/a
n/a
Heuristic
(Depr)
0.125
125.8
28.44
3.42
1127.4
355.7
28
3.6
3.6
63.0
63.0
Heuristic
(Depr and
Fixed Costs)
0.164
125.8
18.11
5.95
885.6
357.1
18
20.4
23.3
0.3
63.4
Lanes's
Approach
0.235
125.8
9.45
12.31
743.4
413.8
16.0
35.6
15.9
89.0
33
Surface Mine Design

One Constraint
Cutoff Grade
Optimization Algorithm
34
Surface Mine Design
Steps Of The Algorithm

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
35
Steps Of The Algorithm (Cont.)
Surface Mine Design
3. Determine the cutoff grade gc for year (i).
c + f + Fi
gc (i) =
(P S ) * y
Where
Fi = d x NPVi /C
f = fa/C
and fa is annual fixed costs
36
Surface Mine Design
4.
For Cutoff Grade gmilling (i):
Determine Ore Tonnage Tc and Grade gc
Determine the Waste Tonnage Tw
Stripping Ratio (sr) = T w/Tc

37
Surface Mine Design
5.
Set
Qc = C
Qc = T c
if Tc > C
if Tc < C
And
Qm = Qc(1+sr)
38
Surface Mine Design
6. Determine the annual profit (Pi) by using the

following equation
Pi =(P-s) x Qc x gc x y Qc x (c + f) Qm 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)
gc - Average Grade (Opt)
y - Recovery
f - Fixed Cost ($/ton)
39
Surface Mine Design

7. Adjust the Grade-Tonnage Curve of the deposit
for Qc and
Qw = Qm Qc .
8. If Qc < C in year (i) go to step 9
otherwise
Set i = i+1 and go to Step 3.
40
Surface Mine Design
9.
Calculate incremental NPV for each year (i)

N
NPVi =
j =i
Pj
(1 + d )
j i +1
41
Surface Mine Design

10. If NPV1 for this iteration is not within some tolerance
(say plus-minus $500K ) on the NPV1 of the previous
iteration go to Step 1
otherwise
Stop the cutoff grade gc (i) for years i = 1,
1
N is Optimum Policy.
42
Surface Mine Design
Open Pit Sequencing and

Production Scheduling
Dr. Kadri Dagdelen
Surface Mine Design
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.
Declining Stripping Ratio

Method
1
Surface Mine Design
2
3
3
4
4
5
5
6
7
6
7
Stripping
Volume
6
7
Time
Orebody
Waste
Surface Mine Design
Increasing Stripping Ratio

Method
Orebody
Waste
Surface Mine Design
Constant Stripping Ratio

Method
Orebody
Waste
Surface Mine Design
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.
6
Short Term Production

Scheduling
Surface Mine Design
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.
7
Surface Mine Design
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.
Surface Mine Design

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.
Surface Mine Design

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.
10

Planning (cont.)
Surface Mine Design
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.
11
Surface Mine Design

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.
12
Pit Sequence Planning
Surface Mine Design
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.
13
Procedure to obtain the

pushbacks
Generate nested pits by increasing and/or decreasing
Surface Mine Design
the product price.

According to the size of the deposit, pick a number of
phases that allow enough operating room for the
equipment.
14
Surface Mine Design
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
15

pushbacks (Cont.)
Surface Mine Design
Block Model showing copper grades in %

Level
1 0.00
2 0.00
3 0.05
4 0.04
5 0.05
6 0.08
0.10
0.22
0.05
0.15
0.08
0.10
0.15
0.08
0.12
0.12
0.15
0.08
0.08
0.25
0.13
0.45
0.12
0.01
0.05
0.15
0.02
0.08
0.30
0.05
0.00
0.13
0.14
0.09
0.21
0.34
0.00
0.10
0.11
0.25
0.09
0.45
0.05
0.13
0.08
0.20
0.79
0.02
0.03
0.45
0.22
0.29
0.10
0.01
0.00
0.20
0.09
0.14
0.45
0.04
0.05
0.20
0.08
0.15
0.32
0.38
0.05
0.32
0.15
0.04
0.23
0.00
0.05
0.10
0.22
0.24
0.01
0.00
0.05
0.15
0.20
0.05
0.01
0.00
0.05
0.24
0.14
0.02
0.01
0.01
0.05
0.21
0.05
0.04
0.01
0.15
16

pushbacks (Cont.)
Economic Model showing block values in $/ton
Surface Mine Design
Original copper price of $1.10/lb

1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
1.06
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
1.65
-0.70
5.41
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
2.34
-1.00
-0.50
-0.60
-0.70
-0.80
0.56
3.03
-0.50 -0.50 -0.50

-0.60 -0.60 5.61
-0.70 -0.70 0.96
1.45 0.46 2.24
-0.90 12.04 -0.90
5.21 -1.00 -1.00
-0.50
0.66
-0.70
-0.80
5.31
-1.00
-0.50
0.66
-0.70
-0.80
2.74
3.82
-0.50
3.04
-0.70
-0.80
0.95
-1.00
-0.50
-0.60
0.96
1.25
-0.90
-1.00
-0.50
-0.60
0.56
-0.80
-0.90
-1.00
-0.50
1.45
-0.70
-0.80
-0.90
-1.00
-0.50
0.86
-0.70
-0.80
-0.90
-1.00
For ore blocks:

BV = ( P s ) * g B * y c m
For waste blocks:

BV = m
17

pushbacks (Cont.)
Surface Mine Design
The floating cone algorithm was used to find

the ultimate pit limit
1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
1.06
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
1.65
-0.70
5.41
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
2.34
-1.00
-0.50
-0.60
-0.70
-0.80
0.56
3.03
-0.50
-0.60
-0.70
1.45
-0.90
5.21
-0.50 -0.50 -0.50 -0.50 -0.50

-0.60 5.61 0.66 0.66 3.04
-0.70 0.96 -0.70 -0.70 -0.70
0.46 2.24 -0.80 -0.80 -0.80
12.04 -0.90 5.31 2.74 0.95
-1.00 -1.00 -1.00 3.82 -1.00
-0.50
-0.60
0.96
1.25
-0.90
-1.00
-0.50
-0.60
0.56
-0.80
-0.90
-1.00
-0.50
1.45
-0.70
-0.80
-0.90
-1.00
Pit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
-0.50
0.86
-0.70
-0.80
-0.90
-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
18

pushbacks (Cont.)
Surface Mine Design
To find a smaller pit reduce the copper price to 0.60/lb

Economic block model
1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
1.36
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
1.16
-0.50
-0.60
-0.70
-0.80
4.93
-1.00
-0.50
1.56
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
1.26
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
0.40
-0.50
0.16
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
For ore blocks:

BV = ( P s ) * g B * y c m
For waste blocks:

BV = m
19

pushbacks (Cont.)
Surface Mine Design
The floating cone algorithm was used to find

the limit of the pit at $0.60/lb
1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
1.36
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
1.16
-0.50
-0.60
-0.70
-0.80
4.93
-1.00
-0.50
1.56
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
1.26
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
0.40
-0.50
0.16
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
1
2
3
4
5
6
20

pushbacks (Cont.)
Surface Mine Design
To find an intermediate pit reduce the copper price to $0.86/lb

Economic Block Model
1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.11
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.57
-0.70
3.47
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
1.04
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
1.56
-0.50
-0.60
-0.70
0.37
-0.90
3.27
-0.50
-0.60
-0.70
-0.80
8.63
-1.00
-0.50
3.67
-0.70
0.99
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
3.37
-1.00
-0.50
-0.60
-0.70
-0.80
1.35
2.18
-0.50
1.65
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
0.22
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.42
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
21

pushbacks (Cont.)
Surface Mine Design
To find an intermediate pit reduce the copper price to $0.86/lb

Economic Block Model
1
2
3
4
5
6
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.11
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.57
-0.70
3.47
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
1.04
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
1.56
-0.50
-0.60
-0.70
0.37
-0.90
3.27
-0.50
-0.60
-0.70
-0.80
8.63
-1.00
-0.50
3.67
-0.70
0.99
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
3.37
-1.00
-0.50
-0.60
-0.70
-0.80
1.35
2.18
-0.50
1.65
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
0.22
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
-0.50
0.42
-0.70
-0.80
-0.90
-1.00
-0.50
-0.60
-0.70
-0.80
-0.90
-1.00
Pit
1
2
3
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
22

pushbacks (Cont.)
Surface Mine Design
The three pits shown in together

1
2
3
4
5
6
$0.60/lb
$0.86/lb
$1.10/lb
23
Hypothetical Deposit and Pit

Development Sequence
Ultimate Pit
Surface Mine Design
Design Phase Limits
Rock Type I
Rock Type II
D
E
Ore
24
Tonnage Inventory by Phase

Thousands of tonnes
Surface Mine Design
Bench
5100
5050
5000
4950
4900
4850
4800
4750
4700
4650
4600
4550
Total
Phase "A"
Waste
Ore
15,000
32,000
50,000
38,000
15,000
4,000
10,000
3,000
9,000
2,000
8,000
159,000
27,000
Phase "B"
Waste
Ore
2,000
18,000
20,000
15,000
4,000
3,000
2,000
1,000
9,000
9,000
7,000
6,000
65,000
31,000
Phase "C"
Waste
Ore
4,000
15,000
18,000
22,000
16,000
3,000
5,000
8,000
3,000
1,000
95,000
10,000
20,000
22,000
17,000
7,000
76,000
25
Summary by Phase
Surface Mine Design
Thousands of tonnes
Waste above
Waste on
Phase
first ore
ore
Ore
bench
benches
A
150,000
9,000
27,000
B
55,000
10,000
31,000
C
75,000
20,000
76,000
D
128,000
38,000
125,000
E
182,000
49,000
151,000
F
220,000
45,000
130,000
Total
810,000
171,000
540,000
*Assuming an annual milling rate 0f 25,000 tonnes
Ore
Cumulative
Life*
ore life
(years)
(years)
1.08
1.08
1.24
2.32
3.04
5.36
5.00
10.36
6.04
16.40
5.20
21.60
21.60
26
Time (Years)
-10
250
-5
10
15
Phase "D" ore = 125 M tonnes

Phase "D" life = 5 years
It requires 128 M tonnes stripping
25
Earlier ore development

due to the proposed
stripping schedule
Hypothetical Deposit and Pit

Development Sequence
200
100
150
50
100
B
C
31
0
-10
-5
3.04
27
1.08
50
76
1.24
Developed Ore
(Millions of tonnes)
20
Cumulative Stripping
Surface Mine Design
1000
500
- Production period
50 M tonnes / year
A proposed stripping
schedule
- Pre-production period
4 yrs. Yr 1
25 M
2-3 50 M
4
75 M
200 M
750
E
500
D
C
250
75
A
50
Minimum waste stripping

required to sustain
ore deliveries
Pre-production
Period
5
10
Time (Years)
15
200
50
25
0
-5
1
50
250
B
A
0
-10
A proposed stripping
schedule
4 yrs. Yr 1
25 M
2-3 50 M
4
75 M
200 M
- Production period
50 M tonnes / year
20
25
-10
-5
2 3
4 0
Pre-production
Period
27
-10
Time (Years)
0
-5
10
Earlier ore development

due to the proposed
stripping schedule
Phase "D" ore = 125 M tonnes

Phase "D" life = 5 years
It requires 128 M tonnes stripping
150
Developed Ore
D
Cushion = 0.34 years
100
125
50
76
A
31
27
0
3.04
1.24
5.00
750
E
Cumulative Stripping
Surface Mine Design
1.08
500
- Production period
50 M tonnes / year
D
250
4 yrs. Yr 1
25 M
2-3 50 M
4
75 M
200 M
C
B
75
50
50
0
-10
Minimum waste stripping

required to sustain
ore deliveries
25
-5
1 2 3 40
Pre-production
Period
5
10
Time (Years)
28
Period 2
$72M
Period 1
$81M
Period 1
$50M
Period 8
$9M
Period 3
$63M
Period 4
$61M
Period 7
$43M
Period 5
$37M
Period 6
$32M
Period 2
$37M
Period 7 $52M
Period 8 $19M
($398M)
Period 4
$50M
Period 3 $60M
Period 5 $49M
Period 6
$50M
($366M)
Period 4
$65M
Period 1
$46M
Period 2
$32M
Period 2
$42M
Period 3
$63M
Period 5
$51M
($374M)
Period 3
$71M
Period 7 $43M
Period 8 $16M
Period 6
$48M
Period 1 $42M
Period 7 $57M
Period 8 $11M
Period 4 $51M
Period 5 $57M
Period 6 $52M
($372M)
Long Term Planning and

Sequencing
Surface Mine Design
Dr. Kadri Dagdelen


Sequencing
Surface Mine Design
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

Sequencing
Surface Mine Design
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
3
Surface Mine Design

Sequencing
Determine mineable resource boundaries

Haul road layout
Define long term reclamation needs
Surface Mine Design
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.
5

Case Study
Surface Mine Design
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

Case Study
Surface Mine Design
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 SO3 requirements
Determine equipment and capital investment
needs for the next 10 years
Surface Mine Design
Quarry Development and

Sequencing
Surface Mine Design
Holnam Quarry Mining Sequence:

First Bench Development
Surface Mine Design

Second Bench Development
During the First Three Years
10
Surface Mine Design

First and Second Bench Development
11
Surface Mine Design

12
Surface Mine Design

13
Surface Mine Design
Midlothian North Area Quarry

Progress Contours Year1
14
Surface Mine Design

Progress Contours Year 2
15
Surface Mine Design

16
Surface Mine Design

17
Surface Mine Design
Midlothian Quarry Block

Model Definition
18
Surface Mine Design
Midlothian Quarry Block

Model Definition
19
Surface Mine Design
Midlothian Quarry Sequence: One

Year Increments on Elevation 790
20
Surface Mine Design

21
Surface Mine Design

22
Surface Mine Design

23
Surface Mine Design

24
Surface Mine Design

25
Surface Mine Design

26
Surface Mine Design

27
Surface Mine Design

28
Surface Mine Design

29
Equipment Selection
Three Different Options were Evaluated:
Surface Mine Design
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
30
Surface Mine Design
Loader - Truck Fleet Evaluation

and Cost Analysis Year 1
31
Surface Mine Design

32
Surface Mine Design

33
Surface Mine Design
Loader - Truck Fleet Evaluation &

Cost Analysis Haul Road Profile
34
Loader - Truck Productivity

Calculations
Assumptions
Surface Mine Design
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
35
Loader - Truck Productivity

Calculations
Surface Mine Design
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
36
Surface Mine Design
Equipment Productivity & Cost

Estimation
For CAT 992G

Loader - 775D Trucks
37
Option 1: Cat 992G Loader 775D Trucks
Surface Mine Design
The truck cycle time for four different

conditions:
Year 1: 9.67 minutes

38
Surface Mine Design
Option 1: Cat 992G Loader - 775D

Trucks Fleet Productivity in Tons
# of 775D's
1
2
3
4
Year 1
Year 2
Year 3
Year 7
825,332 808,107 801,532 808,669
1,540,565 1,524,899 1,504,316 1,525,959
2,111,530 2,108,190 2,070,839 2,109,657
2,586,695 2,644,575 2,580,165 2,644,575
39
Surface Mine Design
The truck cycle time for four different

conditions

40
Surface Mine Design

# of 777's
1
2
3
4
Year 1
945,127
1,731,661
2,285,652
2,737,983
Year 2
903,286
1,667,466
2,234,289
2,714,476
Year 3
920,644
1,695,274
2,254,834
2,724,550
Year 7
934,223
1,715,981
2,275,379
2,731,266
41
Surface Mine Design
Operating Cost for the Loader

and Trucks
Model
Operating Cost
CAT 992G
$125/hr
CAT 775 D
$63/hr
CAT 777
$82/hr
42
Surface Mine Design
Operating Cost for the Loader

and Trucks
Model
Operating Cost
CAT 992G
$125/hr
CAT 775 D
$63/hr
CAT 777
$82/hr
43
Surface Mine Design
Loader - Truck Capital

Requirements
Model
Purchase Price
CAT 992G $1,270,000
CAT 775 D
$740,000
CAT 777
$1,060,000
44
Loader - Truck Capital

Requirements
Surface Mine Design
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.
45
Loaders and Shovels
Surface Mine Design
Comparative Analysis
Dr. Kadri Dagdelen
Source: J. Wiebmer, Caterpillar Incorporated
Surface Mine Design
Hydraulic Shovel Applications
Hard Digging
Poorly shoot material
Selective loading
Wet, jagged floor
Pitching floor
Single face operation
2
Hydraulic Shovel Selection

Considerations
Surface Mine Design
Multiple loading fronts

Fast cycle time (25 to 30
seconds)
Low capital costs
Moderate mobility
Highly productive
Surface Mine Design
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
4
Surface Mine Design
Hydraulic Shovel
Unfavorable Site Conditions
Requires clean-up support

Excessive tramming
High benches
Surface Mine Design
Wheel Loader Applications
Mobility and versatility

Well blasted material
Low pile profile
Smooth, level floor
No clean-up support equipment
Short mine life
6
Surface Mine Design
Wheel Loader
Selection Considerations
Highly mobile/versatile
High bucket fill factors
Low capital costs
No clean-up support
Surface Mine Design
Wheel Loader
Favorable Site Conditions
Good loading materials

Lower face profile
Multi-face loading
Surface Mine Design
Wheel Loader
Unfavorable Site Conditions
Poor underfooting (tire cost)
Soft floor
Tight load area
Comparison Shovels vs.

Loaders
Surface Mine Design
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%
10
Mobility
Surface Mine Design
Wheel Loader
Hydraulic
Shovel
200
400
600
800
1000
1200
1400
Feet Traveled in One Minute
11
Breakout Force
Surface Mine Design
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.
12
Bucket Fill Factors
Surface Mine Design
Hydraulic Front Shovels

Hydraulic backhoes
Caterpillar wheel loaders
Other wheel loaders
80-85%
100%
100-115%
85-95%
13
Power and Fuel
Hydraulic shovels burn less fuel per hour

Surface Mine Design
than wheel loaders.
But considering tons moved per gallon

burned, wheel loaders and hydraulic shovel
compare very favorable to each other.
14
Two-to-Three Minute Rule
Surface Mine Design
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.
15
Loading Tool Preferences
Surface Mine Design
Region
North & South America
85%
15%
Europe, Africa, Middle East
60%
40%
Australia, Far East
50%
50%
16
Surface Mine Design
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
17
Surface Mine Design
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
18
Conclusions
Surface Mine Design
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
19
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
Rubber Wheel
Front End
Loader
SURFACE
UNDERGROUND
Hauling Combination Loading
Hauling Combination
Trucks
Back Hoe
Crawler
Loader
Scrapers
Bulldozers
Graders
Track
Loader
Hydraulic
Shovel
Cable
Shovel
Drag Line
Bulldozers
Bucket Wheel
Excavator
Front End
Loader
Trucks
Load Haul
Dump
Over Shot
Loaders
Track
Loaders
Hydraulic
Shovel s
Over Shot
Loaders
Back Hoe
Conventional
Rail Cars
Rail
Other
Over Shot
Mine Cars/
Loaders Locomotives
Walking
Drag Line
Pneumatic/
Hydraulic
Pneumatic/
Hydraulic
Dredge
Conveyer
Conveyers
Skips
Slusher
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.
Dozer Powered Functions
Typical Dozer Production Cycle
Applications
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
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.
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.
Scrapers
Scraper Powered Functions
Scrapers
Applications
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
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.
Terex S-24B tandem scraper self loading overburden.

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
Truck Powered Functions
Applications
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
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.

Rimpull three axel bottom dump coal hauler.

(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)
Applications
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
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
Hydraulic Excavator Powered Functions
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.
Typical Hydraulic Shovel Production Cycle
Typical Hydraulic Hoe Production Cycle
CAT 5230 hydraulic excavator loading a haul truck
Heavy Equipment, John Tipler, 2000
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.
Steam Shovel Mining Virginia Minnesota, circa 1910
Electric Shovels
Electric Shovel Powered Functions
Applications
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
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.
Draglines
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
Dragline Powered Functions
The worlds largest operating dragline (one of two), the Bucyrus

2570-WS with 160 yard bucket at the Black Thunder Mine, WY.
The 100 yard Marion 8800 loading in Kentucky
Bucyrus Internationals Big Muskies 220-yard bucket easily

accommodates a high school band. Photo taken in 1969.

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.

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.
Bucket Wheel Excavator Powered Functions
Applications
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
Frderanlagen Magdenburg (FAM) bucket wheel excavator.
World Mining Equipment, September 2002
Loading Equipment
Surface Mine Design
Dr. Kadri Dagdelen

Surface Mine Design
Excavators
Surface Mine Design
Hydraulic Shovels
Specifications
Surface Mine Design
Excavator Specifications
Surface Mine Design
Digging Envelopes
Front Shovels
Surface Mine Design
Curl and Crowd Forces

Front Shovels
Surface Mine Design
Digging Envelopes
Excavators
Surface Mine Design
Excavators Bucket
Surface Mine Design
Loaders
Surface Mine Design
Breakout Force
Loaders
10
Surface Mine Design
Breakout Force from Rackback

Loaders
11
Surface Mine Design
Carry Position
Loaders
12
Surface Mine Design
900 Series II Dimensions

Loaders
13
Surface Mine Design
900 Series II Dimensions

Loaders
14
Surface Mine Design
Specifications
Loaders
15
Surface Mine Design
Specifications
Loaders
16
Surface Mine Design
Travel Time Loaded

Loaders
17
Surface Mine Design
Travel Time Empty

Loaders
18
Surface Mine Design
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
19
Surface Mine Design
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
20
Bucket Load
Surface Mine Design
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
21
Surface Mine Design
Wheel Loader Bucket Fill

Factors
(CAT)
22
Surface Mine Design
Weight of Materials
(CAT)
23
Bucket Load
Surface Mine Design
% 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
24
Buckets/Period
Average
Surface Mine Design
cycle time (C) based on standard

cycle time adjusted for:
Material
Material fragmentation
Material size distribution
Pile configuration
25
Buckets/Period
Average
Surface Mine Design
cycle time (C) based on standard

cycle time adjusted for:
Consistency of operation
Swing angle (Shovels)
Travel distance (Loaders)
Operator ability
26
Wheel Loader Cycle Time
Surface Mine Design
Average cycle time for truck loading

increases with machine size
Loader Size (cy)
1.7-4.5
5.0-7.5
7.5-11
15-21
Cycle time (min)

.45-.50
.50-.55
.55-.60
.60-.70
27
Cycle Time
Surface Mine Design
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
28
Cycle Time
Surface Mine Design
Job factor (J) depends on:

Truck assignment
Management issues
Job layout (Blending, etc.)
29
Cycle Time
Surface Mine Design
Mechanical availability (A) depends on:

Material
Management/suppliers
Age of machine
Schedule
30
Loading Methods
Surface Mine Design
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
31
Surface Mine Design
Loading Methods
32
Surface Mine Design
Loading Methods
(Mining Magazine)
33
Surface Mine Design
Shovels:
Double Back-Up
Options include
Double back-up
Single back-up
Drive-by
Modified drive-by
34
Surface Mine Design
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
35
Surface Mine Design
Shovels:
Double Back-Up
36
Surface Mine Design
Shovels:
Double Back-Up
Requires
balance of
move time
versus
cycle time
(Oslund and Russell)
37
Surface Mine Design
Shovels:
Single Back-Up
Truck loaded on one side

Larger swing angle
Potential clean-up delays
Potential spotting delays
depending on
excavator first cycle
38
Surface Mine Design
Shovels:
Single Back-Up
39
Surface Mine Design
Shovels:
Drive-By
Used with tractor trailers

Large swing angles
Minimal amount of shovel moves
Blending problems
40
Surface Mine Design
Shovels:
Drive-By
41
Surface Mine Design
Shovels:
Modified Drive-By
Truck backs in to reduce swing angle

Minimal amount of shovel moves
Blending problems
Depth of cut effects cycle time and
move
time
42
Surface Mine Design
Shovels:
Modified Drive-By
43
Surface Mine Design
Modified Drive-By:
Optimum Width
44
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
Size and type of loading machine

Type & condition of material to be loaded
Capacity of unit
Skill of the loading operator
Haul/Push Factors
Performance ability of unit

Hauling distance
Haul road condition
Grades
Miscellaneous factors affecting haul speed
Dump Factors
Destination of material -Hopper, Over Bank, Fill, Stockpile, etc.

Condition of dump area
Type & maneuverability of hauling unit
Type & condition of material
Return Factors
Performance ability of unit

Return distance
Haul road condition
Grades
Miscellaneous factors affecting return speed
Spot Factors
Maneuverability of unit
Maneuver area available
Type of loading machine
Location of loading equipment
Delay Factors
Time spent waiting on loading unit or pusher

Time spent waiting to dump at crusher

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.

The maximum productivity of an earthmover should be derated to meet
actual conditions. Typical deration factors are found in the following
table:

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).

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.
Surface Mine Design
Loading and Hauling

Fleet Productivity
Dr. Kadri Dagdelen

Source : Hrebar Lafarge 2000 Presentation
Truck Selection
Surface Mine Design
Number and type of trucks selected should
be based on overall system economics

Lowest cost fleet selected considering
operating and capital coats
Truck Selection
Surface Mine Design
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
3
Truck Selection
Physical and climatic conditions
Surface Mine Design
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
Truck Selection
Surface Mine Design
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
Truck Selection:
Rear Dump
Surface Mine Design
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
Surface Mine Design
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
7
Production Calculations
Surface Mine Design
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
8
Production Calculations
Surface Mine Design
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
Surface Mine Design
Rimpull vs. Velocity
10
Rolling Resistance
Surface Mine Design
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
11
Surface Mine Design
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 flexing
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)
12
Grade Resistance
Force required to overcome gravity when moving
Surface Mine Design
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 distance2 + vertical distance2)1/2
e.g., (1,0002 +602)1/2 = 1,001.8 ft
13
Weights and Traction

Weights: determines the force required to propel
vehicle.
Surface Mine Design
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
14
Surface Mine Design
Coefficient of Traction Factors
(CAT)
15
Surface Mine Design
Altitude Deration
(CAT)
16
Speed Limits
Speed Limits: limits on curves, in pit, and on

Surface Mine Design
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
17
Acceleration, Deceleration,
Operator
Surface Mine Design
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
18
Tires
Surface Mine Design
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
19
Tires
TMPH = Average Tire Load x Average Speed for Shift
Surface Mine Design
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
20
Surface Mine Design
Ton-MPH Data
(CAT)
21
Estimating Cycle Time
Surface Mine Design
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.
22
Estimating Cycle Time
Surface Mine Design
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
23
Unit Production
Unit Production (Tons/shift)
Surface Mine Design
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)
24
Unit Production
Units Required Purchased

Surface Mine Design
Units Required Operating (Not rounded) /

Mechanical availability
25
Match Factor and System
Surface Mine Design
Production of the excavator truck system

dependent on the number of trucks assigned
to the excavator
26
Match Factor and System

Allocations based on at least two approaches:
Number of trucks = Truck cycle time / Load time

Surface Mine Design
(excluding first pass)

This calculation approach reduces excavator delays
Number of trucks =
Truck cycle time
Load time (excluding first pass) + Truck exchange time
27
Match Factor Approach

Match factor approach reduces truck delays
Surface Mine Design
compared to first method. For example:

Loader cycle tim e
N o . of passes
Effective loading tim e (7-1)x.5
Truck spot tim e (exchange tim e)
H aul, dump and return
Truck cycle tim e
N o . T ru c k s ( 1 7 . 0 1 / 3 . 0 0 )
N o . T ru c k s ( 1 7 . 0 1 / ( 3 . 0 0 + 1 . 3 0 ) )
3
1
12
17
. 5 m in
7
.0 0 m i n
.3 0 m i n
.7 1 m in
.0 1 m in
5.67
3.96
28
System Production
Surface Mine Design
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
29
Surface Mine Design
The End
30
Surface Mine Design
TRUCK SELECTION AND

PRODUCTION CALCULATIONS
Dr. Kadri Dagdelen

Calculations
Surface Mine Design
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.

Calculations (Cont.)
Surface Mine Design
Equation to estimate the production per hour:
O = BC*BF*D*MA*JF*3,600sec
(1+SF)*CT
Where,
hour
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
3

Surface Mine Design
Solution:
O = 11*0.95*1.55*0.85*0.833*3,600sec
33sec
= 1252 tons/hr
Loader-Truck Production
Calculations
Surface Mine Design
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.
Truck cycle time
Haul
3.8min
Dump
1.0min
Return
1.8min
Spot
0.6min
5
Surface Mine Design
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
Surface Mine Design
Cycle time
Load
1.7min
Haul
3.8min
Dump
1.0min
Return
1.8min
Spot
0.6min
Total Cycle time
8.9min
7
Surface Mine Design
Number of Trucks/ Loader

No. of Trucks = Truck cycle time / Load time
= 8.9 min / 1.65 min
= 5.4 trucks
(Assume 6 trucks)
Total Production
Surface Mine Design
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
Calculations
Surface Mine Design
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.
10
Surface Mine Design
Example (Cont.):
Loader data:
Capacity: 8cy
Fill factor: 80%
Cycle time: 0.5 min/pass
Mechanical availability: 88%
11
Surface Mine Design
Example (Cont.):
Truck cycle time data:
Spot time: 0.8 min
Dump time:1.5min
Truck mechanical availability: 85%
12
Example (Cont.):
Surface Mine Design
Road profile:
Segment
Length (m)
Speed limit
(km/hr)
Grade (%)
Rolling
resistance (%)
122
45
762
20
152
45
Road condition: Firm

13
Surface Mine Design
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
14
Haul Speed:
Surface Mine Design
Segment1
Total Resistance = 4%
Max speed = 42km/h
< Speed limit (45km/hr)
42
15
Surface Mine Design
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

16
Haul Speed :
Surface Mine Design
Segment2
Max speed = 16km/h
Conversion factor = 1
Avg speed = 16km/hr
16
17
Haul Speed :
Surface Mine Design
Segment3
Max speed = 42km/h
Conversion factor = 0.68

Avg speed
= 42km/hr*0.68=28.6km/hr
42
18
Haul Time:
Surface Mine Design
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
19
Return Speed:
Surface Mine Design
Segment1
Max speed = 73km/h
> Speed limit (45km/hr)
So, choose 45km/hr
Avg speed
= 45km/hr*0.68=30.6km/hr
73
20
Return Speed :
Surface Mine Design
Segment2
Total Resistance = -8%+2% = -6%
Max speed = 69km/h
> Speed limit (20km/h)
6%
Choose 20km/hr
Avg speed = 20*0.95

= 19km/h
69
21
Return Speed :
Surface Mine Design
Segment3
Max speed = 73km/h
> Speed limit (45km/hr)
So, choose 45km/hr
Avg speed
= 45km/hr*0.54=24.3km/hr
73
22
Return Time:
Surface Mine Design
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
23
Haul and Return Time Summary:
Surface Mine Design
Haul
Segment
Length
(m)
Grade(%)
RR (%)
Total Resistance
(%)
Speed
(km/hr)
Limit
(km/hr)
Conversion
Avg. Speed
(km/hr)
time (min)
122
42
45
0.51
21.42
0.34
762
10
16
20
16
2.86
152
42
45
0.68
28.56
0.32
Segment
Length
(m)
Grade(%)
RR (%)
Total Resistance
(%)
Speed
(km/hr)
Limit
(km/hr)
Conversion
Avg. Speed
(km/hr)
time (min)
122
73
45
0.68
30.6
0.24
762
-8
-6
69
20
0.95
19
2.41
152
73
45
0.54
24.3
0.38
Return
Total time = 3.52min(haul)+3.02(return)=6.54 min

24
Surface Mine Design
Truck cycle time (min)
Load
2.0 min
Haul
3.5min
Dump
1.5min
Return
3.0min
Spot
0.8min
Total
10.8min
25
Surface Mine Design
Slip condition check (Segment2):

Available Rimpull
=(Grade resistance + Rolling resistance)
* Gross Vehicle Weight
= (8% + 2%) * (34050kg + 41000kg)
= 10%*75050kg
= 7505kg
26
Surface Mine Design
Usable Rimpull: Function of road surface and weight

on the drive wheels
Usable Rimpull
= Coefficient of Traction * Weight on Wheel
27
Surface Mine Design
Typical Coefficient of Traction
28
Surface Mine Design
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
29
Surface Mine Design
CONDITION CHECK
Usable Rimpull > Available Rimpull
There is no slip condition.
30
Unit Production
Surface Mine Design
Assuming 50min / hour

Productivity:
41T/cycle*1cycle/10.8min*50min/hr*0.85 = 161T/hr
31
Surface Mine Design
Number of Trucks/ Loader

For maximum productivity: 10.8min / 2.0min = 5.4
(6trucks)
To achieve 260T/hr: 260 / 161 = 1.61 (2 trucks)
32
Fleet Size Determination Using

Binomial Distribution
Surface Mine Design
by
Dr. Kadri Dagdelen
Example
Surface Mine Design
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.
2
Surface Mine Design
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.
Surface Mine Design
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.
Surface Mine Design
Binomial Distribution
n!
p x (1 p) n x
x! (n x)!
This formula gives the fraction of time x units are
available out of a fleet of n units with a given
availability of p.
Binomial Distribution for

Trucks
Surface Mine Design
Availability = 70%
Fleet
Size (n)
Number of Units Available (x)

0
0.30
0.70
0.09
0.42
0.49
0.03
0.19
0.44
0.34
0.01
0.08
0.26
0.41
0.24
0.00
0.03
0.13
0.31
0.36
0.17
0.00
0.01
0.06
0.19
0.32
0.30
2!
0.71 (1 0.7)21 = 0.42
1! (2 1)!
0.12
Fraction of the time

that 1 truck out of a
fleet of 2 will be
operating
6
Fleet Capacity
Surface Mine Design
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
Surface Mine Design
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.
Surface Mine Design
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

Determination
Surface Mine Design
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.
10
Surface Mine Design

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.
11
Estimating Owning and Operating

Costs
Surface Mine Design
by
Dr. Kadri Dagdelen
Hourly owning and operating

cost estimate
Surface Mine Design
Analyst
Date
Machine Designation
Estimated Ownership Period (Years)
Estimated Usage (Hours/Year)
Ownership Usage (Total Hours)
Antonio Peralta
11/7/2005
1
Track-type Tractor
7
1200
8400
2
Wheel Loader
5
1500
7500
Owning Costs
1. a. Delivered Price (including attachments)
b. Less Tire Replacement Cost if Desired
c. Delivered Price Less Tires
2. a. Residual Value - % of original deliverd price
b. Less Residual Value at replacement
3. a. Value to be recovered through work
b. Cost per hour
4. a. Interest rate
b. Interest costs
5. a. Insurance rate
b. Insurance Costs
6. a. Tax rate
b. Property tax
7. Total hourly owning cost
135,000
135,000
35%
47,250
87,750
10.45
16%
10.29
1%
0.64
1%
0.64
22.02
1,200,000
4,000
1,196,000
48%
574,080
621,920
82.92
16%
76.54
1%
4.78
1%
4.78
169.03
Hourly owning and operating

cost estimate
Surface Mine Design
Operating Costs
8. a. Fuel unit price
b. Fuel consumption
c. Fuel cost
9. Lube oils, filters, grease
10. a. Life of tires (Hours)
b. Tires replacement cost
c. Impact factor
d. Abrasiveness factor
e. Z factor
f. Basic factor
g. Under carriage
11. a. Extended use multiplier for repair reserve
b. Basic repair factor for repair service
c. Repair reserve
12. a. Special wear items
2.20
5
11.00
0.46
2.20
4
8.80
0.43
3,500
1.14
0.20
0.20
0.30
6.20
4.34
1.00
4.50
4.50
1.32
1.00
4.00
4.00
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
9A. Lube Oils, Filters, Grease
Surface Mine Design
Track-type tractor
Wheel Loader
Unit Price Consumption Cost/Hour Unit Price Consumption Cost/Hour
Engine
Transmission
Final Drives
Hydraulics
Grease
Filters
Total
Total
12A. Special Wear Items
Surface Mine Design
#
1
2
3
4
5
6
Track-type tractor
Cost
Life
$/Hour
105
150
0.70
165
450
0.37
125
500
0.25
Total
1.32
Wheel Loader
Cost
Life
50
165
80
450
70
600
$/Hour
0.30
0.18
0.12
Total
0.60
Surface Mine Design
Drilling
Dr. Kadri Dagdelen
Drilling Methods
Top hammer drilling
Hydraulic self-contained drills
Surface Mine Design
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
2
Surface Mine Design
Surface Drilling Methods and

Applications
Surface Mine Design
Components of Surface Drilling

Methods
Top Hammer Drilling

Soft to hard rock
Surface Mine Design
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
5
Principle of Top Hammer Drilling

It can be hydraulic or pneumatic
It combines four functions
Surface Mine Design
Percussion
Feed
Rotation
Flushing
Parameters that affect the penetration rate:

Impact energy, impact frequency, rotation speed, feed force, and
flushing of the hole
6
Surface Mine Design
Relative Penetration Rate as a Function

of Percussion Pressure
Surface Mine Design
The Optimal Adjustment of Drilling

Parameters Means Maximum Penetration
Surface Mine Design
Flushing
Surface Mine Design
Flushing
10
Surface Mine Design
Penetration Rates Between Pneumatic

and Hydraulic Top Hammer Drilling
11
Surface Mine Design
Bench Drilling Rig
12
Bench Drilling Rig
Surface Mine Design
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
13
Surface Mine Design
Choice of Bit Type
14
Surface Mine Design
Application Range of Tube Drill Steels
15
DTH Drilling
It is more efficient than top hammer drilling
A DTH hammer follows immediately behind the bit
Surface Mine Design
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
16
Surface Mine Design
Principle of DTH Drilling
17
Surface Mine Design
A Typical DTH Hammer
18
Surface Mine Design
Features of DTH Hammer
19
Surface Mine Design
Truck Mounted DTH Drill
20
Surface Mine Design
DTH Bit Designs
21
Rotary Drilling
It is used in most major open pit mining operations
Diameter from 4 to 17, depth up to 150 feet
Surface Mine Design
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
22
Surface Mine Design
Principle Rotary Drilling
23
Surface Mine Design
Rotary Drills
24
Surface Mine Design
Rotary Drills
25
Surface Mine Design
Principles of Rotation
26
Surface Mine Design
Rotary Power versus Hole Diameter
27
Surface Mine Design
Pull Down versus Hole Diameter
28
Surface Mine Design
Principles of Feed Systems
29
Surface Mine Design
Thrust and Pulldown Force
30
Surface Mine Design
Flushing Air Compressor Size
31
Surface Mine Design
Carrousel Type Pipe Changer
32
Rotary Drilling Accessories
Drill bits
Surface Mine Design
Drill pipes
Shock subs
Stabilizers
Saver subs
Bit subs
33
Surface Mine Design
Rotary Drill Bit Components
34
Rotary Bit Selection Parameters
Surface Mine Design
Type of ground
Tooth or insert spacing
Tooth depth
Soft formations with low
Large: Inserts
compressive strengths and
High
extended chisel
high drillability: shales,
unconsolitaded sands,
shaped
calcites
Cutting action
Mostly gouging and scraping by
skew cone action, with little
chipping and crushing
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
Close with low intermesh
sandstones, porphyry
copper ores
Low: Inserts
spherical or
conical
Mostly by chipping and crushing

by cutter rolling action
Very hard formations:

taconites, quartzites
Very low: Insert

hemispherical
conical or ovoid
Nearly all excavation by true

rolling action of cutters
Medium Formations: harder

shales, limestone,
sandstones, dolomites
Medium, close
Very close with low

intermesh
35
Surface Mine Design
Bit Selection for Rotary Drilling
36
Surface Mine Design
Insert Shapes for Tricone Bits
37
Surface Mine Design
Penetration Rate versus Bit Load
38
Surface Mine Design
Principles of Rotary Cutting
39
Surface Mine Design
Drilling
Dr. Kadri Dagdelen
Penetration Rate
Surface Mine Design
W rpm
P = (61 28 log10 Sc)
300
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)
2
Horse Power
hp = K rpm D
2.5
1.5
Surface Mine Design
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
3
Balancing Air Velocity
Um = 264 p
1/ 2
1/ 2
Surface Mine Design
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

4
Surface Mine Design
Bailing Velocities
Surface Mine Design
Bailing Velocities
Surface Mine Design
Air Requirements Chart
Optimal Bit Load

CD
OptimumBitLoad =
5
Surface Mine Design
Where:
C = Rock compressive strength
D = bit diameter in inches
Source: R. Baker, Tamrock

8
Total Work
Total Work (WT ) = W R 2 N T
Surface Mine Design
Where:
W = bit load (lbs)
R = penetration rate (feet/min)
N = bit rotation speed
T = torque (foot lbs)

9
Rotary Horsepower
4.95 D R (W / 1000)1.6
Horse Power (hp) =
C
Surface Mine Design
Where:
hp = rotary horsepower
R = bit rotational speed
D = bit diameter (inches)
W = optimum bit load (lbs)
C = rock compressive strength
10
Maximum Bit RPM

Maximum Bit RPM ( R ) =
hp C
4.95 D (W / 1000)1.6
Surface Mine Design
Where:
hp = rotary horsepower
R = bit rotational speed
C = rock compressive strength
11
Volume CFM
0.25D 2
0.25D 2
SF + P
Volume CFM = P
144
144
Surface Mine Design
Where:
P = penetration rate
SF = swell factor (0.6 sedimentary or 0.4 Igneous/metamorphic)

12
Air Velocity
183 CFM
Air Velocity =
D2 d 2
Surface Mine Design
Where:
d = pipe diameter (inches)
CFM = effective compressor volume (CFM)

13
Compressive Strength
Compressive Strength (C ) =
2.18 W R
0.2 (1 / 10000) P D 0.9
Surface Mine Design
Where:
P = average pure penetration rate (feet/hour)
W = average bit load (lbs)
R = average bit rotation

14
Pure Penetration
Pure Penetratio n ( P ) =
2.18 W R
0.2 C D 0.9 (C / 10000)
Surface Mine Design
Where:
P = average pure penetration rate (feet/hour)
R = optimum bit rotation speed
C = average compressive strength
15
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
Tensile Shock Waves
Compressiv
e 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 (NO3).
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 17th 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.

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
(C3H5N3O9), but he considered it too unpredictable and
hazardous for anyone to use.

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.

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.

1894-PETN
The explosive PETN (C5H8N4O12) 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.

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.

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

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

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.

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 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.
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 parallelseries and for the final check before
firing.

The series are connected in parallel and subsequently measured.
The resistance of the parallel connection is in accordance with
Kirckhoffs law:
1
1
1
1
=
+
+ ... +
R R1 R 2
Rn
As the difference in resistance between the series must not exceed

5 percent, the resistance of the parallel connection will be:
Resistance/series
R=
Number of series
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/series 180
R=
=
= 36 Ohms
Number of series
5
Resistance at the firing point is the resistance of the parallel-series connection
plus the resistance of the firing cable.
36 + 5 = 41 Ohms.
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).

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
Shell
Closure
Air Space
Non Electric Cap
Fuse
Element
Crimps
Ignition
Plug Charge Fuse
Powder
Bridge
Wire
Priming
Charge
Electric Cap
Base
Charge
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.
Fixed bottom
Free breakage
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/m3 ) 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.
Basic Definitions
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.
After Blasting
Partial
Reflected
Wave
Before Blasting
Blasting Theory
Leaves Unfractured Toe
Un-reflected
Compression
Wave
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.
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
Inclined Holes
Easier to drill
Avoids difficulties in
fractured rock
Commonly drilled between 10 &

15 degrees
Causes more productive
reflected shock wave in toe of
bench
Bench Height Factors

Bench Height is a function of both hole diameter and burden distance.
Zone of optimal fragmentation
Research indicates that

bore hole length should
be approximately 3
times the burden
distance.
-Ash & Smith, Society of
Explosives Engineers, 1976
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.

Langefors/Kihlstrm
Bmax
Bmax
d
p
s
c
c
f
S/B
d
p*s
=
33 c * f * S/B
= maximum burden (m)

= diameter in the bottom of the blasthole (mm)
= packing degree (loading density) (kg/liter or g/c3 )
= weight strength of the explosive (ANFO = 1)
= rock constant, 0.3 to 0.5
= c + 0.05 for Bmax between 1.4 and 15.0 meters
= degree of fixation, 1.0 for vertical holes
and 0:95 for holes with inclination 3:1
= 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 (lb)
rock constant (c)
constriction of the blasthole (R1)
Table 1a.
RECENT DEVELOPMENTS IN VEHICLE PROXIMITY

WARNING AND COLLISION AVOIDANCE SYSTEMS
USING GPS AND WIRELESS NETWORKS
Kadri Dagdelen
Fuat Bilgin
Colorado Shool of MInes
OUTLINE
INTRODUCTION
PREVIOS WORK
CURRENT WORK
MAIN
FUTURE WORK
CONCLUSIONS
10/29/2006
2
COLORADO SCHOOL OF MINES
INTRODUCTION
Surface Mining Safety Research Program
Safety Issues
Truck Proximity Warning
Collision Avoidance
Global Positioning System (GPS)

Wireless Network Technology
10/29/2006
3
The Problem We Face

E-Mail Requesting Help
Jim:
You may or may not be aware that at couple of
weeks ago El Abra suffered a fatal accident
when a truck driver backed through the berm.
Shortly after that happened, I was asked by
Dennis Barlett and Hunter White to lead a team
of representatives from North American
operations to make sure that this was the last
accident of this type that we had to suffer. .
..
Thanks,
Ferol
10/29/2006
4
CONCEPTUALIZED SYSTEM
Software for dump edge recognition
Trimble GPS
Trimble 900 MHz radios
Introduction to 802.11b
10/29/2006
5
MORENCI TEST
PREVIOUS WORK
Field Tests at the Morenci

Copper Mine - Arizona
10/29/2006
6
CURRENT WORK
LAFARGE QUARRY IMPLEMENTATION
OptiTrack
Real Time
Design of the System
Hardware Development
Software Development
Robustness of the System
10/29/2006
7
OptiTrack SYSTEM
10/29/2006
CURRENT WORK
8
Description of the System (Infrastructure)

OptiTrack Network at Lafarge
Quarry
GPS Differential Correction Service
GPS
Wireless Communication
Transmitting Truck Position
Data, DTM
Between Lafarge Quarry and CSM
GPS data
GPS Differential
DTM
Control Base
10/29/2006
9
OptiTrack (Lafarge)
CURRENT WORK
Mobile Clients
Haul Trucks
Manager Trucks
PDAs
Central Points
Repeaters
Trailer
10/29/2006
10
OptiTrack Mobile Clients
10/29/2006
CURRENT WORK
11
OptiTrack Haul Trucks
CURRENT WORK
Omni Antenna
Lighting Arrestor
WRLA-1.2/1.8
N-Female N -Female
Barrel Adapter
N-Male N -Male
Wireless PCMCI Card

Cisco LMC 352
Jumper Cable
LMR600
N-Male RPTNC-Female
N-Male N-Male
DC Injector
N-Female
N-Female
GPS Device & Antenna
Amplifier 1wt
WAF2400-1000
N-Female N -Female
GPS Satellites
RS 232
10/29/2006
12
OptiTrack Central Points
CURRENT WORK
Repeater at Mechanic House
Repeater on the Trailer

10/29/2006
13
OptiTrack Repeater
10/29/2006
CURRENT WORK
14
OptiTrack Trailer
CURRENT WORK
10/29/2006
15
OptiTrack Trailer
CURRENT WORK
10/29/2006
16
Schematic Representation of OptiTrack Trailer

CURRENT WORK
Point to Point Antenna
WR2400-24M H Pol
N-Female
Coax Cable
LMR600
Directional Antennas N-Male N-Male
WRPA2400 11-AM
V Pol N-Male
Coax Cable
LMR600
N-Male N-Male
Coax Cable
LMR600
N-Male N-Male
Lighting Arrestor
WRLA-1.2/1.8
N-Female N-Female
Power Supplies
Solar Panels
Barrel Adapter
N-Male N-Male
Jumper Cable
LMR600
N-Male RPTNC-Female
N-Male N-Male
Cisco
AP 350
DC Injector
N-Female
N-Female
Amplifier 1wt
WAF2400-1000
N-Female N-Female
RPTNC-male
10/29/2006
17
OptiTrack (CSM)
CURRENT WORK
OptiTrack at CSM GPS Laboratory
Server
10/29/2006
18
OptiTrack Antenna
CURRENT WORK
Point to Point Antenna (Brown Building)
10/29/2006
19
Schematic Representation of OptiTrack (CSM)

CURRENT WORK
Amplifier 1wt
WAF2400-1000
N-Female N-Female
Antenna on the roof of

Brown Building
RF Coax Cable
N-Male N-Male
Jumper Cable
N-Male
RPTNC -Female
LMR600
N-Male N-Male
Lighting Arrestor
WRLA-1.2/1.8
N-Female N-Female
Cisco
AP 350
RPTNC-male
DC Injector
N-Female
N-Female
Barrel Adapter
N-Male N-Male
10/29/2006
20
OptiTrack Software
10/29/2006
CURRENT WORK
21
Future Work
New Mobile Clients
PDAs
Sensors
Radar Implementation
Mobile Adhoc Network

(MANET)
10/29/2006
22
Description of the System (Ad Hoc)

OptiTrack Network at Lafarge
Quarry
GPS Differential Correction Service
GPS
Data, DTM
Between Lafarge Quarry and CSM
GPS data
Transmitting Truck Position
GPS Differential
DTM
Control Base
10/29/2006
23
Broadcast Protocols
Future Work
Existing Protocols
Flooding
Adaptive-SBA
AHBP-EX
OptiTrack Protocols
Naive Bayes
Adaptive Boosting (AdaBoost)
10/29/2006
24
Existing Protocols
10/29/2006
Future Work
25
Machine Learning Approach
Future Work
Classification
Rebroadcast
Incoming
Packet
Discard
10/29/2006
26
OptiTrack Protocols
10/29/2006
Future Work
27
Simulation Comparison
Simulation Parameter
Value
Simulator
NS-2 (1b7a)
Network Area
350 x 350 meter
Node Tx Distance
100 meter
Data Packet Size
64 bytes payload
Node Max. IFQ Length
50
Simulation Time
100 seconds
Number of Trials
10
Confidence Interval
95 %
Trial
Number of Nodes
40
50
60
70
90
Average Speed (m/sec)
10
15
20
Pkt. Src. Rate (pkts/sec)
10
20
40
60
80
10/29/2006
Future Work
28
Delivery Ratio of the Protocols

Future Work
Delivery Ratio
100
95
90
Delivery Ratio
85
Adaptive SBA
AHBP-EX
80
Flooding
AdaBoost
Naive Bayes
75
70
65
60
1
Trial
10/29/2006
29
Number of Retransmitting Nodes

Future Work
Number of Retransmitting Nodes
60
NumberofRetransmittingNodes
50
40
Adaptive SBA
AHBP-EX
30
Flooding
AdaBoost
Naive Bayes
20
10
0
1
Trial
10/29/2006
30
End-to-End Delay
Future Work
End-to-End Delay
2,5
End-to-EndDelay
Adaptive SBA
AHBP-EX
1,5
Flooding
AdaBoost
Naive Bayes
0,5
0
1
Trial
10/29/2006
31
ADHOC & INFRASTRUCTURE
Future Work
Infrastructure
ADHOC
10/29/2006
32
Conclusions
1. The tests that are being carried out at CSM as well
as in Lafarge Quarry indicate that OptiTrack soft
ware system can be used as a proximity warning d
evice to avoid collisions between off highway truck
s and the other vehicles as well as to monitor truck
positions with respect to dump edge on a 3-D topo
graphy map.
2. Integration of the developed GPS based system wit
h other systems based on concepts such as RFID, r
adar, and video cameras need to be pursued to hav
e a complete and reliable collision avoidance syste
m.
10/29/2006
33
Sustainability Issues in Mining

by
Antonio Peralta
Source: Rozgonyi and Ramirez, January 2003
Surface Mine Design MNGN312/512
What is Sustainable Development?

Sustainable development is:
ECONOMICAL
A concept of needs;
Idea of limitations;
Future oriented paradigm, and;
A process of change.
SUSTAINABLE
DEVELOPMENT
SOCIAL
ECOLOGICAL
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 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.
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.
Principal Mining and Environmental Actions

During Each Phase of Mine Development
PHASE IN MINE
PROJECT
DEVELOPMENT
PRINCIPAL MINE PLANNING ACTION
PRINCIPAL ENVIRONMENTAL
MANAGEMENT ACTION
Exploration road construction

Exploration
Pre-feasibility study
Rock core drilling

Geochemical analysis
Geostatistical analysis
Orebody evaluation
Initial mine and minerals process planning
Facilities siting
Scheduling
Econometric analysis
Initial technology selection
Plan of operations
Technology selection
Feasibility study
Conceptual to final designs

Costing and cost benefit analysis
Investment brokerage
Environmental assessment
Rehabilitation plan
Exploration permit application
Environmental baseline study

Environmental assessment
Fatal Flaw analysis
Initiation of permitting process
Comprehensive EIA and review
Mitigation planning
Reclamation and closure planning
Conceptual design for closure
Reclamation and closure costing
Closure fund design
Principal Mining and Environmental Actions

During Each Phase of Mine Development (cont.)
PHASE IN MINE
PROJECT
DEVELOPMENT
PRINCIPAL MINE PLANNING ACTION
PRINCIPAL ENVIRONMENTAL
MANAGEMENT ACTION
Construction
Access and haul road development

Site clearing and grubbing
Earth moving and surface water management
Mine dewatering
Utilities installation
Building and infrastructure construction
Installation of pollution control facilities

General environmental management (air,
water, land)
Construction phase reclamation and
closure
Production
Ore extraction
Size reduction
Minerals processing
Smelting and refining
Maintenance and upgrade
General environmental management

Performance assessment/audit
Monitoring
Concurrent reclamation
Final closure design
Partial closure
Partial bond release
Closure
Facilities decommissioning
Dismantling
Decontamination
Burial
Removal
Asset recovery
Recycling
Implementation of closure plan

Site cleanup
Final reclamation
Final impact assessment
Post closure planning
Post closure
Treatment
Maintenance
Monitoring
Final bond release
Elements of Environmental Planning
A). INITIAL PROJECT EVALUATION

B). THE STRATEGIC PLAN
C). THE ENVIRONMENTAL PLANNING TEAM
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.

(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.

(cont.)
C). THE ENVIRONMENTAL PLANNING TEAM
The team shall be multidisciplinary:
Mining engineers
Metallurgical engineers
Biologists
Environmentalists
Toxicologists
etc.
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?
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
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
Mine Reclamation
i.
Surface and groundwater

management
ii.
iii.
Tailings management
iv.
Cyanide heap and vat leach systems
v.
vi.
Landform reclamation
vii.
Revegetation
viii. Site stability

ix.
Subsurface stabilization
x.
Erosion prevention
Location of the McLaughlin Mine in California
Facilities map of the McLaughlin Mine

M
1)
2)
c
L
a
u
g
h
Early stage for waste disposal & AMD control facilities
3)
Advance of the waste disposal works
4)
l
i
n
Final limit of the waste dump
Erosion control by revegetating is started
Mine waste management (cont.)

M
5)
05/04/ 92
6)
05/04/ 93
c
L
a
u
g
Advance on the erosion control & and pit backfilling
7) 05/10/ 93
East waste dump is completely covered
8) 06/14/ 98
l
i
n
South pit is backfilled & west dump is almost covered
Waste dumps encapsulation is finished
AMD control facilities at the west waste dump
Revegetation
Supervising the revegetation works on the west waste dump

(notice the AMD control facilities on the right side)
Minimizing AMD in open pit mining

through mine planning
by
Antonio Peralta
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 (AMD)
Acid Mine Drainage Examples
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.
Contributing Factors
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.
Problems for Mine Operators
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.
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.
Principles to Prevent Acid Mine Drainage
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.
1st Step Characterization of Rock Types
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 Information Sources
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 Sampling
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 Handling of Samples
q Topography and drillholes
Geological Assessment Interpretation
q Cross section of the drillholes
q Interpretation of rock types
q 3D view of two interpreted sections
q 3D view of two interpreted sections
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
Geochemical Tests Static Tests
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 Producing Potential
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.
Net Acid Generation Test
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.
Saturated paste pH and conductivity
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.
Total and soluble metal analysis
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.
Geochemical Tests Kinetic Tests
Classification for regulatory and permitting purposes.
q Acid Generating (AG)
q Potentially acid generating (PAG)

q Potentially acid consuming (PAC)
q Potentially neutral (PN)
Rock Classification
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.
2nd Step Quantifying the Materials to be disposed
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.
Block Modeling
q Ore grades.
q Contaminants.
q Metallurgical recoveries.
q Physical parameters of the ore.
q Economic parameters.
q Environmental parameters.
Information in the 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.
Steps to create a block model
q Block model includes waste and ore blocks.
Complete Block Model
q Block model includes only ore blocks.
Constrained Block Model
q Blocks inside and outside the final pit limit.
Block Model and Mine Design
q Site potential and reserves

Expected pit development
q Development phasing
Period of development
Areas of extraction
by phase
3rd Step - Mining Development
2005
2020
2035
2050
Maps for different time periods
q Clearing / Vegetation removal

q Topsoil management
q Overburden / Waste rock
management
q Grading principles
q Erosion control
q Revegetation
Coordination with Reclamation
q The objective is to isolate reactive wastes for
selective disposal either separately or within nonreactive 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.
Isolation Strategy
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.
Waste Encapsulation
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.
In -Pit Disposal
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.
Co-disposal and Blending of Waste
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.
Covers
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.
Recovery and Treatment
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.
Conclusions
Questions and comments???????
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.
Summitville, 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.
Examples, Colorado
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 15percent 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:
F = P(1 + i) N
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
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:
P = F / (1 + i) N
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
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:
N
where:
CFn
=0
n
n = 0 (1 + i)
(4)
CFn = 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.
Steps Involved in Cash Flow Analysis

The evaluation of a mining project is usually an iterative process
using the following steps:
1.
2.
3.
4.
5.
Select a mining method

Select a production rate
Calculate Capital and Operating Costs
Select cutoff grade and tonnage
Calculate cash flow and return
Change steps 4, 2, and 1 and select the alternative that gives the
highest return.

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 postproduction 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
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

Cash Flow Calculations ($1,000)
Pre-Production Period
Year
1
Exploration *1
2,000
Development *2
0
Mine/Mill
0
Working Capital
0
Total Investment
(2,000)
Tax Savings *3
800
Net Cash Flow
(1,200)
2
4000
0
0
0
(4,000)
1600
(2,400)
3
4000
0
0
0
(4,000)
1600
(2,400)
4
0
4000
15000
0
(19,000)
1600
(17,400)
5
0
8000
36000
0
(44,000)
3200
(40,800)
6
0
8000
36000
2600
(46,600)
3200
(43,400)
*1 Expensed under Section 617 of IRS Code

*2 Expensed
*3 Assume federal, state, and local tax rate = 40% of net after depletion
7
0
0
0
9,300
(9,300)
0
(9,300)
Total
10,000
20,000
87,000
11,900
(128,900)
12,000
(116,900)
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 =
Deductions:
Base Charge
Price Adjustment
(47- 40)c * $3.00/c
Total Deductions:
Freight:
Truck
Rail
Total Freight:
$425.43/ton
170.00
= 21.00
(191.00)
5.00
15.00
Net Smelter Return/Ton Concentrate (NSR/T)
(20.00)
$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
Revenues
Operating Costs
Net Before D & D
Depreciation
Net After Depr.
Depletion
Taxable Income
Tax @ 40%
Net After Tax
Depreciation
Depletion
Cash Flow
Working Capital
Net Cash Flow
Depletion Calculation:
Initial Recapture
22% Revenue
50% Net After Depr.
Depletion Earned
Depletion Recaptured
Recapture Balance
Depletion Claimed
7
73,684
(34,500)
39,184
(5,800)
33,384
(6,211)
27,173
(10,869)
16,304
5,800
6,211
28,315
(9,300)
19,015
8
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
9
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
10
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
11
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
12-21
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
7
10,000
16,211
16,692
16,211
10,000
0
6,211
10
11
12-21
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
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
Revenues
Operating Costs
Net Before D & D
Depreciation
Net After Depr.
Depletion
Taxable Income
Tax @ 40%
Net After Tax
Depreciation
Depletion
Cash Flow
Working Capital
Net Cash Flow
Depletion Calculation:
Initial Recapture
22% Revenue
50% Net After Depr.
Depletion Earned
Depletion Recaptured
Recapture Balance
Depletion Claimed
7
73,684
(34,500)
39,184
(5,800)
33,384
(6,211)
27,173
(10,869)
16,304
5,800
6,211
28,315
(9,300)
19,015
8
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
9
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
10
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
11
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
12-21
73,684
(34,500)
39,184
(5,800)
33,384
(16,211)
17,173
(6,869)
10,304
5,800
16,211
32,315
0
32,315
7
10,000
16,211
16,692
16,211
10,000
0
6,211
10
11
12-21
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
16,211
16,211
16,692
16,211
0
0
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

Year (j) Net CF
1
(1,200)
2
(2,400)
3
(2,400)
4 (17,400)
5 (40,800)
6 (43,400)
7
19,015
8
32,315
9
32,315
10
32,315
11
32,315
12
32,315
13
32,315
14
32,315
15
32,315
16
32,315
17
32,315
18
32,315
19
32,315
20
32,315
21
32,315
22
3,900
367,726
1/(1+.20)^j
0.833
0.694
0.579
0.482
0.402
0.335
0.279
0.233
0.194
0.162
0.135
0.112
0.093
0.078
0.065
0.054
0.045
0.038
0.031
0.026
0.022
0.018
Present Value
CF @ 20%
(1,000)
(1,667)
(1,389)
(8,391)
(16,397)
(14,535)
5,307
7,515
6,263
5,219
4,349
3,624
3,020
2,517
2,097
1,748
1,457
1,214
1,011
843
702
71
3,580
1/(1+.25)^j
0.800
0.640
0.512
0.410
0.328
0.262
0.210
0.168
0.134
0.107
0.086
0.069
0.055
0.044
0.035
0.028
0.023
0.018
0.014
0.012
0.009
0.007
Present Value
CF @ 25%
(960)
(1,536)
(1,229)
(7,127)
(13,369)
(11,377)
3,988
5,422
4,337
3,470
2,776
2,221
1,777
1,421
1,137
910
728
582
466
373
298
29
(5,666)
By Linear Interpolation
DCF-ROR = 20% + 3580/(3580+5666)*(25-20)% = 21.9%
Exact Solution
21.5090%
0.21509
0.823
0.677
0.557
0.459
0.378
0.311
0.256
0.210
0.173
0.143
0.117
0.097
0.079
0.065
0.054
0.044
0.036
0.030
0.025
0.020
0.017
0.014
Present Value
CF @ 21.509%
(988)
(1,626)
(1,338)
(7,982)
(15,403)
(13,485)
4,862
6,800
5,597
4,606
3,791
3,120
2,567
2,113
1,739
1,431
1,178
969
798
657
540
54
0
Projected Cash Flows For Bedded Zinc Deposit
17
19
21
17
19
21
15
13
11
10000
0
-10000
-20000
$ *1000
40000
30000
20000
-30000
-40000
-50000
Year
Present Value of Cash Flows

at 21.5% Discount Rate
10,000
(10,000)
(15,000)
(20,000)
Year
15
13
11
(5,000)
0
1
$ *1000
5,000
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

Optimization
- The State of Art -
K. Dagdelen
Professor
Golden, Colorado 80401
OPEN PIT OPTIMIZATION
APCOM 2005
l
l
For Each Block in The

Model
If a given block of
material should be
mined?
When it Should be
mined?
Once it is mined what to
do with the block of
Material

Start
APCOM 2005
Physical Capacities
Production
Costs
Extraction
Scheduling
Ultimate pit
Cutoff Grade
Design Of Cuts
Steps of Traditional Planning by Circular Analysis
APCOM 2005
ULTIMATE PIT LIMITS

ULTIMATE PIT LIMITS
l Identifies What blocks should be mined and which
l
l
APCOM 2005
l
l
ones should be left in the ground.

Defines the lateral and vertical extent to which a given
deposit can economically be mined to
3-D Breakeven Analysis
Moving Cone algorithm gives sub-optimum results
Lerchs and Grossmann algorithm gives true
breakeven pit that maximizes the undiscounted profits
APCOM 2005
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

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
APCOM 2005
l Economic block model is generated by discounting
block values based on a rough initial production

schedule

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
APCOM 2005
l NPV analysis on the last incremental pushbacks
always results in elimination of non-contributing

incremental pits

Start
APCOM 2005
Physical Capacities
Production
Costs
Extraction
Scheduling
Ultimate pit
Cutoff Grade
Design Of Cuts
APCOM 2005
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
APCOM 2005
DESIGN OF PUSHBACKS
PHASE 1
PHASE 2
PHASE 3

DESIGN OF PUSHBACKS
APCOM 2005
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
APCOM 2005
DESIGN OF PUSHBACKS

Start
APCOM 2005
Physical Capacities
Production
Costs
Extraction
Scheduling
Ultimate pit
Cutoff Grade
Design Of Cuts
APCOM 2005
CUTOFF GRADES
2005 SME Annual Meeting
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.
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
McLaughlin Gold Mine

California, USA
Pit
Ore and waste discrimination
Waste
Waste
dumps
Ore
Cutoff grade
Stockpiles
Autoclave Mill
Round Mountain Gold Mine
Oxide
Low grade
stockpiles
Ore
Sulfide
Crusher
Stockpiles
CIP Mill
Leach Pads
Waste
Waste
dumps
Breakeven Mill Cutoff Grade
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
Traditionally, this breakeven cutoff grade has been

widely used in a production scheduling.
McLaughlin Mine Case Study
The economic and operational parameters:

Price
(P)
600
$/oz
Sales Cost
(s)
$/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
Breakeven Cutoff Grade (Case1)
If one uses breakeven cutoff grade for a production

scheduling:
Breakeven cutoff grade =
$19/ton
($600/oz - $5.0/oz) * 0.90
= 0.035 oz/ton
All the materials above 0.035oz/ton goes to process,

and below goes to waste dump.
McLaughlin Case Study

l
l
Consider a case study from McLaughlin Mine in California

where an epithermal gold deposit was mined by an open pit.
The grade distribution within the ultimate pit limit is:
From
Tons
Grade Category
Grade intervals
0
0.02
0.025
COG 0.03
0.035
0.04
0.045
0.05
0.055
0.06
0.065
0.07
0.075
0.08
0.1
To
0.02
0.025
0.03
0.035
0.04
0.045
0.05
0.055
0.06
0.065
0.07
0.075
0.08
0.1
0.358
midpoint
0.0100
0.0225
0.0275
0.0325
0.0375
0.0425
0.0475
0.0525
0.0575
0.0625
0.0675
0.0725
0.0775
0.0900
0.2290
Ktons
70,000
7,257
89,167 tons
6,319
5,591
4,598
4,277
SR=2.45
3,465
2,428
2,307
1,747 36,346 tons
1,640
1,485 @0.102oz/ton
1,227
3,598
9,576
125,515
Yearly Mining and Milling Rates
Assuming the deposit is homogeneously distributed,

yearly mining rate is given as follows:
l
l
l
l
Yearly ore tons: 1.05Mtons (Limited by process capacity)

Yearly ounces recovered: 1.05Mtons x 0.102 oz/ton x 0.9
= 96.3koz
Yearly waste tons: 1.05Mtons x 2.45 (SR) = 2.58Mtons
Yearly mining rates: 1.05M + 2.58M = 3.62Mtons
Yearly Schedules by Breakeven

Cutoff Grade (Cont.)
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)
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
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

Cutoff Grades
l
They are established to maximizing the undiscounted

profits from a 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.

CUTOFF GRADES
l Many open pit mines are still designed and operated
using cutoff grades based on breakeven economic

analysis which maximizes undiscounted profits
APCOM 2005
l The cutoff grades should be set to much higher
levels than the breakeven cutoff during the initial

years of the operation

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
APCOM 2005
l Applying this method to a given project results in
higher NPV for a project specially if capacities are

not in harmony with the grade distribution of the
deposit
Declining Cutoff Grade

l
Traditional cutoff grade (constant cutoff grade) does

not maximize the NPV.
Many approaches have been suggested to improve

NPV of the project.
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

Algorithm
Lanes approach considers the mining operation to be

constrained by the capacities of mine, mill, and
refinery.
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.
This approach has been successfully used in the
mining industry for many years.
Optimum Cutoff Grades by OptiPit
Linear Programming (LP) based algorithm and

software is being developed to optimize cutoff grades
under complex mining and process constraints.
Mathematical programming approach is very powerful
and provides complete flexibility in modeling complex
operating environments.
This approach will be described and demonstrated
using four case studies coming from gold mines in
Western United States.
Round Mountain Gold Mine
Oxide
Low grade
stockpiles
Ore
Sulfide
APCOM 2005
Crusher
Stockpiles
CIP Mill
Leach Pads
Waste
Waste
dumps
COMPLICATED PROCESSES AND

CAPACITIES
limited by
ROM
Leach
Dump
10M
tons/yr
crusher
Cr
Leach
1
oc
r
P
2
oc
r
P
Phase
1
Cr
Proc 3
Autoclave
APCOM 2005
Phase2
Mine
Pr
oc
4
5M
tons/yr
20%
Flot.
1.05M
tons/yr
80%
Mining Capacity: 12M tons/yr

Refining Capacity: 350 koz/yr
Stockpile available
2M
tons/yr
Tailings

CUTOFF GRADES
l Linear Programming (LP) based algorithm and
software is being developed to optimize cutoff grades

under complex mining and process constraints.
APCOM 2005
l Mathematical programming approach is very powerful
and provides complete flexibility in modeling complex

operating environments.
CUTOFF GRADE FORMULATION

Index d
Cutoff
Grade
Tons
Dump
APCOM 2005
McLaughlin mine
Grade intervals
Decision variables:
Mine
Index g
igd
Index i
Index t: Years
Mill

FUTURE
APCOM 2005
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.
MNGN 433 Mine Systems Analysis
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.
Push Backs or Phases Example
Phase 1
Phase 2
2

(Cont.)
Phase 3
Phase 4
3

(Cont.)
Cross Section
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
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.
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
0
0.02
0.025
0.03
0.035
0.04
0.045
0.05
0.055
0.06
0.065
0.07
0.075
0.08
0.1
0.02
0.025
0.03
0.035
0.04
0.045
0.05
0.055
0.06
0.065
0.07
0.075
0.08
0.1
0.358
midpoint
0.0100
0.0225
0.0275
0.0325
0.0375
0.0425
0.0475
0.0525
0.0575
0.0625
0.0675
0.0725
0.0775
0.0900
0.2290
Ktons
70,000
7,257
6,319
5,591
4,598
4,277
3,465
2,428
2,307
1,747
1,640
1,485
1,227
3,598
9,576
125,515
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 %
Traditional Cutoff Grades
Traditionally, a cutoff grade is used to determine if a block

of material should be mined or not.
Ultimate pit cutoff grade
And, another cutoff is used to determine whether or not it

should be milled or taken to the waste dump.
Milling cutoff grade
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 =

$19/ton + $1.2/ton
($600/oz - $5.0/oz) * 0.90
= 0.038 oz/ton
10
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
Milling cutoff grade =
$19/ton
($600/oz - $5.0/oz) * 0.90
= 0.035 oz/ton
11
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.
12
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.
13
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.
14
Yearly Tons and Grades Schedules by

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
15
Yearly Tons and Grade Schedules by

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)
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
0.035
0.102
3.6
1.05
96.3
33.0
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
16
Yearly Tons and Grades Schedules by

Constant Cutoff Grades (NPV Calculation)
NPV of the project:

33.0
(1 + 0.15)1
33.0
(1 + 0.15)2
33.0
(1 + 0.15)4
33.0
(1 + 0.15)5
33.0
31.4
+
(1 + 0.15)34
(1 + 0.15)35
NPV =
33.0
(1 + 0.15)3
= $218.5M
17
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
18
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.
19
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.

20
Concept of Heuristic Cutoff

Grade
The concept is demonstrated pictorially as follows:
Idealized cross section of a series of pits for

various cutoff grades
21
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
22
Minimum Profit
Assume:
Minimum profit of $3.0 per ton will be imposed to
increase the cash flows further during the first five years
23

Calculation
The milling cutoff grades will be:
Yr 1 to 5
g milling =
Milling Cost + Depreciation + Minimum Prof.

$19/ton + $10/ton + $3/ton

($600/oz - $5.0/oz) * 0.90
= 0.060 oz/ton
24

Calculation (Cont.)
Yr 6 to 10
g milling =
Milling Cost + Depreciation

$19/ton + $10/ton
($600/oz - $5.0/oz) * 0.90
= 0.054 oz/ton
25

Calculation (Cont.)
Yr 11 to Depletion
Milling Cost
g milling =
$19/ton
($600/oz - $5.0/oz) * 0.90
= 0.035 oz/ton
26
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)
0.060
0.153
6.9
1.05
144.6
57.8
0.060
0.153
6.9
1.05
144.6
57.8
0.060
0.153
6.9
1.05
144.6
57.8
0.060
0.153
6.9
1.05
144.6
57.8
0.060
0.153
6.9
1.05
144.6
57.8
0.054
0.141
6.0
1.05
132.8
51.9
0.054
0.141
6.0
1.05
132.8
51.9
0.054
0.141
6.0
1.05
132.8
51.9
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
27
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)

28

(Including G & A)
In the previous calculations, the G & A costs were not

included in the cutoff grade and profit calculations.
Assume:
Fixed Costs per year: $8.35M / year
Fixed Costs per ton: ($8.35M/year) / (1.05Mtons/year)
= $7.95 / ton
29
Heuristic Cutoff Grade Calculation

(With G & A)
The milling cutoff grades will be:
Yr 1 to 5
g milling =
Milling Cost + Depreciation + Minimum Prof. + Fixed cost

$19/ton + $10/ton + $3/ton + $7.95/ton

($600/oz - $5.0/oz) * 0.90
= 0.075 oz/ton
30

(With G & A) (Cont.)
Yr 6 to 10
g milling =
Milling Cost + Depreciation + Fixed cost

$19/ton + $10/ton + $7.95/ton

($600/oz - $5.0/oz) * 0.90
= 0.069 oz/ton
31

(With G & A) (Cont.)
Yr 11 to Depletion
g milling =
Milling Cost + Fixed cost

$19/ton + $7.95/ton
($600/oz - $5.0/oz) * 0.90
= 0.050 oz/ton
32
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)
0.075
0.182
9.2
1.05
171.6
62.8
0.075
0.182
9.2
1.05
171.6
62.8
0.075
0.182
9.2
1.05
171.6
62.8
0.075
0.182
9.2
1.05
171.6
62.8
0.075
0.182
9.2
1.05
171.6
62.8
0.069
0.169
8.2
1.05
160.0
57.1
0.069
0.169
8.2
1.05
160.0
57.1
0.069
0.169
8.2
1.05
160.0
57.1
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
33
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)
34
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

35
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.
36
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 + Fi
(P - s) * y
Where i = 1, , N (mine life),

gmilling(i) is the cutoff grade to be used in Year i.
37
Cutoff Grade Equation for

Lanes Approach (Cont.)
Fi is the opportunity cost per ton of ore in Year i and it is

defined as:
Fi = d * NPVi / C
f is defined as:
f = fa / C
Where
d is the discount rate;
NPVi is the NPV of the future cash flows of the years (i) to the end
of mine life;
fa is the annual fixed costs
38
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)
0.161
0.259
18.0
1.05
245.2
95.9
413.8
0.152
0.255
17.2
1.05
241.0
94.4
380.0
0.142
0.25
16.5
1.05
236.4
92.6
342.6
0.131
0.245
15.7
1.05
231.3
90.5
301.4
0.120
0.239
14.9
1.05
225.7
88.1
256.1
0.107
0.232
14.1
1.05
219.6
85.4
206.4
0.092
0.213
12.1
1.05
200.9
76.7
152.0
0.079
0.188
9.8
1.05
177.9
65.9
98.1
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
39
Steps to Obtain Table 6 (1st Iteration)

Year (i)
1
2
3
4
5
6
7
21
22
23
Total
NPVi
0
0
0
0
0
0
0
Cog
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0
0
0
0.050
0.050
0.050
Avg
Waste
Ore Grade (Mtons)
0.133
101.5
0.133
97.1
0.133
92.6
0.133
88.2
0.133
83.7
0.133
79.3
0.133
74.9
0.133
0.133
0.133
12.7
8.3
3.8
Ore
(Mtons)
24.0
23.0
21.9
20.9
19.8
18.8
17.7
SR
3.0
2.0
0.9
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
Year 1:
Cog=
19+8.35/1.05+(0*0.15)/1.05
(600-5)*0.9
0.050
Year 2:
Cog=
19+8.35/1.05+(0*0.15)/1.05
0.050
Qm
(Mtons)
5.5
5.5
5.5
5.5
5.5
5.5
5.5
Qc
(Mtons)
1.05
1.05
1.05
1.05
1.05
1.05
1.05
Qr
(ktons)
125.7
125.7
125.7
125.7
125.7
125.7
125.7
Profits
($M)
39.9
39.9
39.9
39.9
39.9
39.9
39.9
NPV
($M)
$255.0
$253.4
$251.5
$249.3
$246.8
$243.9
$240.6
5.5
5.5
5.1
125.8
1.05
1.05
0.91
24.0
125.7
125.7
108.9
2,874.0
39.9
39.9
33.1
910.8
(NPV@15%)
$255.0
$86.6
$59.7
$28.7
(600-5)*0.9
40
Steps to Obtain Table 6 (2nd Iteration)

2nd iteration
Year (i)
1
2
3
4
5
6
7
8
9
Total
NPVi
$255.0
$253.4
$251.5
$249.3
$246.8
$243.9
$240.6
$236.8
$232.4
Cog
0.118
0.118
0.117
0.117
0.116
0.115
0.115
0.114
0.112
Avg
Ore Grade
0.238
0.238
0.236
0.236
0.236
0.236
0.236
0.235
0.234
Waste
(Mtons)
116.6
102.9
89.1
74.5
61.6
48.2
34.8
20.0
7.0
Ore
(Mtons)
8.9
7.9
6.8
5.7
4.8
3.8
2.7
1.6
0.5
SR
13.1
13.1
13.1
13.1
12.9
12.9
12.9
12.9
15.6
Qm
(Mtons)
14.8
14.8
14.8
14.8
14.6
14.5
14.6
14.6
7.5
125.0
Qc
(Mtons)
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
0.45
8.9
Qr
(ktons)
224.9
224.9
223.0
223.0
223.0
223.0
223.0
222.1
94.8
1,881.8
Profits
($M)
87.8
87.8
86.6
86.7
86.8
86.9
86.9
86.3
30.5
726.4
NPV
($M)
$399.5
$371.7
$339.7
$304.0
$262.9
$215.5
$160.9
$98.2
$26.6
(NPV@15%)
$399.5
Year 1:
Cog=
19+8.35/1.05+(255*0.15)/1.05
(600-5)*0.9
0.118
Year 2:
Cog=
19+8.35/1.05+(253.4*0.15)/1.05
(600-5)*0.9
0.118
41
Steps to Obtain Table 6 (3rd Iteration)

3rd iteration
Year (i)
1
2
3
4
5
6
7
8
9
Total
NPVi
$399.5
$371.7
$339.7
$304.0
$262.9
$215.5
$160.9
$98.2
$26.6
Cog
0.157
0.149
0.141
0.131
0.120
0.108
0.093
0.077
0.057
Avg
Ore Grade
0.257
0.253
0.250
0.245
0.238
0.232
0.215
0.189
0.158
Waste
(Mtons)
118.1
101.2
84.8
69.0
54.7
40.7
27.5
15.3
7.1
Ore
(Mtons)
7.4
6.6
5.9
4.9
4.2
3.3
2.5
1.7
0.9
SR
15.9
15.4
14.4
14.1
13.2
12.3
11.1
9.0
8.4
Qm
(Mtons)
17.7
17.3
16.2
15.8
14.9
14.0
11.7
9.5
8.8
125.8
Qc
(Mtons)
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
9.5
Qr
(ktons)
242.9
239.1
236.3
231.5
224.9
219.2
203.2
178.6
149.3
1,925.0
Profits
($M)
94.9
93.2
92.8
90.5
87.7
85.3
78.6
66.6
50.0
739.7
NPV
($M)
$411.8
$378.7
$342.2
$300.7
$255.4
$206.0
$151.6
$95.7
$43.5
(NPV@15%)
$411.81
Year 1:
Cog=
19+8.35/1.05+(399.5*0.15)/1.05
(600-5)*0.9
0.157
Year 2:
Cog=
19+8.35/1.05+(371.7*0.15)/1.05
(600-5)*0.9
0.149
42
Steps to Obtain Table 6 (4th Iteration)

4th iteration
Year (i)
1
2
3
4
5
6
7
8
9
Total
NPVi
$411.8
$378.7
$342.2
$300.7
$255.4
$206.0
$151.6
$95.7
$43.5
Cog
0.160
0.151
0.142
0.131
0.118
0.105
0.091
0.076
0.062
Avg
Ore Grade
0.259
0.255
0.250
0.245
0.238
0.230
0.213
0.182
0.162
Waste
(Mtons)
117.0
101.4
85.2
70.0
55.9
41.8
28.0
16.5
8.0
Ore
(Mtons)
7.8
6.7
5.9
5.1
4.2
3.3
2.7
2.0
1.2
SR
15.0
15.1
14.4
13.7
13.3
12.7
10.4
8.3
6.7
Qm
(Mtons)
17.8
17.0
16.2
15.6
14.6
13.9
12.0
10.2
8.5
125.8
Qc
(Mtons)
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
9.5
Qr
(ktons)
244.8
241.0
236.3
231.5
224.9
217.4
201.3
172.0
153.1
1,922.1
Profits
($M)
96.0
94.7
92.8
90.7
88.0
84.3
77.1
61.8
52.6
738.0
NPV
($M)
$412.3
$378.2
$340.2
$298.4
$252.4
$202.3
$148.3
$93.5
$45.7
(NPV@15%)
$412.30
Year 1:
Cog=
19+8.35/1.05+(411.8*0.15)/1.05
(600-5)*0.9
0.160
Year 2:
Cog=
19+8.35/1.05+(378.7*0.15)/1.05
(600-5)*0.9
0.151
43
Table 6
Table 6
Year (i)
1
2
3
4
5
6
7
8
9
Total
NPVi
$413.8
$380.0
$342.6
$301.4
$256.1
$206.4
$152.0
$98.1
$46.9
Cog
0.161
0.152
0.142
0.131
0.119
0.105
0.091
0.077
0.063
Avg
Ore Grade
0.259
0.255
0.250
0.245
0.239
0.232
0.2131
0.188
0.163
Waste
(Mtons)
Ore
(Mtons)
SR
Qm
(Mtons)
18.0
17.2
16.5
15.7
14.9
14.1
12.1
9.8
7.6
125.8
Qc
(Mtons)
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
9.5
Qr
(ktons)
244.8
241.0
236.3
231.5
225.9
219.2
201.4
177.7
154.0
1,931.7
Profits
($M)
95.7
94.4
92.5
90.6
88.2
85.2
77.0
65.7
54.3
743.7
NPV
($M)
$413.8
$380.2
$342.8
$301.7
$256.3
$206.6
$152.3
$98.2
$47.2
(NPV@15%)
$413.82
Year 1:
Cog=
19+8.35/1.05+(413.8*0.15)/1.05
(600-5)*0.9
0.161
Year 2:
Cog=
19+8.35/1.05+(380.0*0.15)/1.05
(600-5)*0.9
0.152
44
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)

45
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
1
Definition of the Problem

The problem is to maximize the NPV subject to production

constraints:
N
Maximize
NPV = profit(i ) * (1+1d ) i

i =1
Subject to
Qm (i ) M
for i = 1,N
Qc (i) C
for i = 1,N
Q (i ) R
for i = 1,N
r
Where
i: Year indicator
N: Mine life in years

Qm: Amount of total metal mined in a given year (Ore + Waste)
Qc: Ore tonnage processed in a given year
Qr: 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
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 Qm amount of material
Vq:
Maximum possible present value of future profits

(cash flows) after the next Qm amount of material has been
mined
v=V-Vq:
Marginal increase in present value to be achieved by

mining next Qm of material

Mining Low Grades (Cont.)
V=
( profits ($M ) + Vq )
(1 + d )T
V * (1 + d )T = ( profits ($ M ) + Vq)
If i is relatively small, then
(1 + d ) i = (1 + d * T )
V * (1 + d * T ) = profits ($ M ) + Vq
V + V * d * T = profits ($M ) + Vq
V Vq = profits ($M ) V * d * T
4

Mining Low Grades (Cont.)
Let v=V-Vq then
v = profits ($M ) d * V * T
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
5
Basic Present Value Expression

Annual profits can be calculated as follows:

v = ( P r s ) * Qr c * Qc m * Qm f * T d * V * T
Where
P: Metal price per ton of product
r: Marketing cost per ton of product
s: Sales cost per ton of product
c: Processing cost per ton of ore
m: Mining cost per ton of ore
f: Annual fixed administrative costs
T: Number of time periods that will take to mine, concentrate and
refine Qm amount of material from the pit (i.e. years)
Mine Limiting Case
When the mining capacity is the bottleneck in the system:

Qm
T=
M
( f + d *V )
vm = ( P r s) * Qr c * Qc m +
* Qm
M
vm
vm is a function of
cutoff grades
COG
COG of Mine Limiting Case
Cutoff grade of mine limiting case is:

gm =
c
(P r s ) * y
where
y: Metallurgical recovery
Concentrator Limiting Case
When the concentrator capacity is the bottleneck in the system:

Qc
T=
C
( f + d *V )
vc = ( P r s) * Qr c +
* Qc m * Qm
C
Cutoff grade of concentrator limiting case is:

( f + d *V )
c+
C
gc =
( P r s) * y
9
Refinery Limiting Case
When the refinery capacity is the bottleneck in the system:

Qr
T=
R
vr = ( P r s
( f + d *V )
) * Qr c * Qc m * Qm
R
Cutoff grade of refinery limiting case is:

gr =
c
( f + d *V )
Pr s
* y
R
10
Balancing Cutoff Grade (Cont.)

Mine - Mill
C/M
g mc
11

Mine - Refinery
R/M
g mr
12

Mill - Refinery
R/C
g rc
13
Open Pit Copper Case Study

Deposit Reserves
(%Cu)
(Mtons)
14
First Year Production Reserves

(%Cu)
(Mtons)
15
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
40M of 1%Cu of one unit of mining /yr
(R):
(=40M*0.01tonCu /yr = 400k tons Cu /yr)

Recovery
(y):
100%
Discount rate
(d):
15%
16
Mine Limited Case

(V=0)
(V=1174)
17
Concentrator Limited Case

(V=0)
(V=1174)
18
Refinery Limited Case

(V=0)
(V=1174)
19
Balancing Cutoff Grades (V=0)

gm
gr
500
gc
400
300
200
Profit
Balancing Cutoff Grade
vm
Gopt
100
vc
vr
0
-100
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
-200
-300
COG
Feasible Region
20
Balancing Cutoff Grade

300
250
200
150
100
Profit
Balancing Cutoff Grades (V=1174)
vm
50
vc
0
-50 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
vr
-100
-150
Gopt
-200
-250
COG
21
Limiting Economic Cutoff Grades
Cutoff grade of mine limiting case is (V=0):
c
2($ / ton)
2
gm =
=
=
%Cu = 0.10%Cu
( P s) * y ( 25 5)($ / 1%Cu *1ton) *1 ( 25 5) *1
Cutoff grade of concentrator limiting case is (V=0):
300 M ($ / yr )
( f + d *V )
300
2
($
/
ton
)
+
c+
2+
50 M (ton / yr)
C
50 %Cu = 0.40%Cu
gc =
=
=
( P s) * y
(25 5)($ / 1%Cu * 1ton) * 1 (25 5) * 1
22
Limiting Economic Cutoff Grades

(Cont.)
Cutoff grade of refinery limiting case is (V=0):
gr =
c
2($ / ton)
=
( f + d *V )
300M ($ / yr)
Ps
* y (25 5)($ / 1%Cu *1ton)
*1
R
40 M (1%Cu *1ton / yr))
2
300
25 5
*1
40
%Cu = 0.16%Cu
23
Grade Tonnage Curve
24
Average Grade Above Cutoff
25
Ore : Material Ratio
26
Product : Material Ratio
27
Product : Ore Ratio
28
Grade Tonnage Relationship

Cutoff
(%Cu)
Quantity
(Mtons)
Tons Below Tons Above Avg Grade

Cutoff
Cutoff
Above Cutoff
(Mtons)
(Mtons)
(%Cu)
(C )
Cu Produced
Product to
Material
Ratio
(R/M)
Product to
Ore
Ratio
(R/C)
Ore to
Waste
Ratio
( R)
Ore to
Material
Ratio
(C/M)
(%Cu of
1ton of Material)
0.00
100
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
29
Balancing Economic Cutoffs

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

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

grc: Product : Ore
= R:C = 40M/50M =0.8
Then, from the table above grc= 0.60 %Cu
30
Choosing Optimum Cutoff Grade
31
Choosing Optimum Cutoff Grade
Gmc = 0.40%Cu
Grc = 0.40%Cu
Gmr = 0.16%Cu
Then,
Gopt = 0.40%Cu
32

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LQS Latin America Avenida Luis Thayer Ojeda 0130 Ofi. 304, Providencia.

Santiago, Chile Tel: 562-6573898 Fax: 562-6573897

Introduction to Mining Practices- Case Studies

UNIT OPERATIONS AND EQUIPMENT SELECTION

Mining Project Cash Flow Analysis

Papers by Kadri Dagdelen.

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Bingham Canyon Mine

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Slope angles for each of these sectors range from

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8 Bucyrus-Erie 60R track-mounted electric drills.

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Dr. Kadri Dagdelen

operation above which mineral or waste materials

Surface Mine Design

BENCH HEIGHT: Vertical distance between the

angle of the line connecting bench toe to the bench

Surface Mine Design

BERM: Horizontal shelf or ledge within the

Surface Mine Design

OVERALL PIT SLOPE ANGLE: The angle measured from

and grade of the haul road.

road must be maintained for access.

Zigzag pattern on one side of the pit.

Surface Mine Design

Haul Road Effect on Pit Limits

SUBCROP OR ORE DEPTH: Depth of waste

PRE-PRODUCTION STRIPPING: Stripping done