Strategic Planning Solutions

Mine Site Local Area Enterprise Wide

confidential customer briefing

1 NPV Scheduler
(metals)

NPV Scheduler v3.1

Lerchs Grossman pit optimization NPV optimal extraction sequencing Multi grade, multi ore type, multi process Pushback generator Multi target scheduler NPV optimal stockpiling Cutoff grade optimization (MFO option) Export schedule surfaces and models to Datamine Used in: iron ore, gold, platinum, copper, nickel, base metals,

diamonds Used by: Rio Tinto, BHP, CVRD, Phelps Dodge, Ashanti, De Beers, Barrick, Anglo American, Codelco, Vulcon,

Economic Model
Input
Block model Detailed mining and processing costs Extraction factors Cut off factors

Resource model Economic model

Output

Economic model- revenue per block

Sequence
Input
Economic Model Mining rates Financial constraints Slope Defn. Pit Outline

Resource model Economic model Sequence

Output

Lerchs Grossman(undiscounted) shell An optimised pit (discounted) Reports-block sequence

Pushback
Input
Sequence model Ultimate Pit A mining rate Pushback Defn

Resource model Economic model Sequence Pushback

Output

Reports per pushback Export into DM for pit design

Schedule
Input
Pushback Model Pit Rate Detailed Targets

Resource model Economic model Sequence Pushback

Output

Schedule

Completed Optimised Practical Schedule Reports per period

Stockpiles
Input

Resource model Economic model Sequence Pushback Schedule Stockplies

Pit Schedule(Rates) Define Stockpiles Plant Capacities Grade Constraints Price/Cost variations

Output

Plant Input Schedule Calculate NPV s/p

NPV Scheduling
Tonnage
Head Grade

NPV

2 Haulage Simulation
(Truck Optimisation)

Truck requirements over the life of the mine based on

Truck capacities Haulage routes Optimised Pit Schedule

Annual Haul Hours Annual Haul Hours Annual Haul Hours Annual Haul Hours
400000 400000 400000

350000 350000 350000

300000 300000 300000

250000 250000 250000

Haul Hours Haul Hours Haul Hours

200000 200000 200000

150000 150000 150000

100000 100000 100000

50000 50000 50000

0 00
1 88 9 9 9 10 10 11 12 13 14 15 16 17 18 19 20 21 22 11 2 2 3 3 44 55 6 6 77 8 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 2323 23 2424 24 2525 25 2626 2727 2828 2929

Period Period Period

Haulage Opimiser

3 RM Scheduler v3.1
(raw materials)

RM Scheduler v3.1
Resource maximization or Lerchs Grossman
Blended or NPV optimal extraction sequencing Locate optimal blended pit at any point in time Multi quality, multi rock type, multi process Multi target scheduler Haulage simulation and truck hours scheduling Blend with stockpiles and external additives Export optimal blended pits and models to Datamine Used in: limestone, aggregates, phosphates, coal, gypsum, borax, kaolin, sand, Used by: Cemex, Soeicom, ISCOR, National Power, ,

Cement Solution
Cement plant sources raw materials from local limestone quarry, and supplements kiln feed with sand and clay purchased from independent supplier.
What is the best mix of quarried and imported materials which, while meeting the silica and lime modulus targets, also minimizes the cost of production and maximizes the operational life of the quarries and kiln? What is the optimal extraction sequence in the limestone quarry (the optimal blended pit)? Lime Saturation Factor(LSF)

___________%CaO 0.7 %SO3__________

2.8 %SiO2 + 1.2 %Al2O3 + 0.65 %Fe2O3
RM Scheduler

Corporate Planning Solutions

Linking together open pit planning systems to create strategic planning tools

Corporate Planning Tools

1. MultiMine
Single blended product from multiple pits.

2. Mining Enterprise Plan

Multiple blended products and commodities from multiple pits.

1. MultiMine

Single Product
Multiple, geographically independent ore reserve models Separate economic modeling of individual mines incorporating additional haulage costs Attach NPVS and RMS project resources Generate combined schedule for all mines

Export local area plan (LAP) back to NPVS at individual mines

Report combined and individual production data

Multiple Operations-One Product

2.

Enterprise Mine Planning

Multiple Products

Include all functions of MultiMine Multiple products and commodities from multiple pits.

Market Driven
Includes capital expenditure

Market Driven Plans

Mine plans derived from central marketing plans

Best utilization of available resources to meet corporate

sales and financial objectives

Decision support system for strategic planners

Rapid assessment of alternative market scenarios

Financial CAPEX Investments

Enterprise-wide approach to NPV maximization

Optimum allocation and timing of capital expenditure at

mines based on corporate, not local, benefit

Optimum utilization of global ore resources

Truck Fleet

Additional Trucks

Shovels Fleet

Additional Shovel

Plant

Plant Extension

Pit 1

No Capacity CAPEX

27 120000 12 70000

+1 5000 $.5M +1 5000

4 14000 4 14000

+1 20000 $2M +1 20000

1 1400000 1 40000

+1 40000 $5m +1 40000

Pit 2

No Capacity

CAPEX

$.5M

$2M

$3m