Production Planning in

Open Pit Mine

By

Professor Dr. Abdul Ghani Pathan

October, 2011
1
Objectives

1. To develop a logical and easily

achievable start-up schedule
with due recognition of
manpower training, poineering
activities, equipment
deployment, infrastructure and
logistic support, thus
minimizing the risk of delay.
2
Objectives
(Cont:)

2. To optimize the design of pit

slope angles on the basis of
sufficient geotechnical
investigations.
3. To mine the ore body in such a
way that for each year the cost
of production becomes
minimum.
3
Objectives
(Cont:)

4. To maintain operation viability

within the plan through the
incorporation of adequate
equipment operating room,
haulage access to each active
bench.

4
Objectives
(Cont:)

5. To incorporate exposed ore

information in the reserve
model to update it.
6. To defer waste stripping
requirements as much as
possible

5
Objectives
(Cont:)

7. Properly examine the

economic merits of alternative
ore production and cutoff
grade.
8. To prepare contingency plan
for the proposed mining
strategy, equipment selection
and mine development plan.
6
Kinds of Production
Planning

Production planning is an ongoing

activity throughout the life of a mine.
There are two kinds of production
planning:

 Operational or short range: It is related to

the function of an operating mine.
 Long range: It is usually done for
feasibility study and budget estimates. It
is important for decision making
7
Example
An open pit mine at Thar Coalfield
is to be developed to produce 4
million metric tons of lignite per
year. 35.23 million bank m3 of
waste rock is required to be
removed in 6th year of mining
operation.

8
Example (cont:)
Following machinery will be deployed
for the excavation and haulage:
 Shovel with 22 m3 bucket size for
the excavation of waste rock.
 110 m3 capacity truck for the
haulage of waste material.
 Backhoe (12 m3 bucket) for the
excavation of lignite.

9
Example (cont:)
 60 m3 capacity truck for the
haulage of lignite.
Following data is available:
 Utilization time = 5241 hours/year
 Bucket fill factor of shovel = 95 %
 Bucket fill factor of backhoe = 90 %
 Swelling factor of waste rock = 1.2
 Swelling factor of lignite = 1.25
 Operator’s efficiency = 0.83
 Bank density of lignite = 1.15 t/m3 10
Example (cont:)
 Cycle time of shovel = 30 sec.
 Cycle time of backhoe = 30 sec.
 Spotting time of truck = 42 sec.
 Average cycle time of a truck = 16.5 min
 Operating cost of shovel = 247.89 $/hour
 Operating cost of backhoe= 67.51 $/hour
 Operating cost of truck (110 m3) = 190.38
$/hour
 Operating cost of truck (60 m3) = 113.55
$/hour
11
Example (cont:)
Determine the following:
 Yearly production of shovel (in
Mbcm)
 Yearly production of backhoe (in
Mtons)
 No: of shovels (22 m3) required
 No: of backhoes (12 m3) required

12
Example (cont:)
 No: of trucks (110 m3) required
 No: of trucks (60 m3) required
 Yearly operating cost of shovel (22
m3)
 Yearly operating cost of backhoe (12
m3)
 Yearly operating cost of truck (110
m3)
 Yearly operating cost of truck (60
m3) 13
Logical procedure for the
determination of yearly
production of shovel

 Yearly production of shovel (bcm) = No: of

trucks filled x Bank material filled in one
truck
 No: of trucks filled/year = shovel working
hours per year x 60 / time to load one truck
 Time to load one truck = spot time + No: of
passes to fill truck x cycle time of shovel
 No: of passes = Vol: of truck / loose
material loaded per cycle
 Loose material loaded/cycle = bucket size
of shovel x bucket fill factor
14
Solution
(Production of shovel, 22 m3)

• Loose material handled/cycle = size

of bucket x bucket fill factor
• Loose material handled/cycle = 22 x
95/100 = 20.9 lcm
• Bank material handled/cycle = Loose
material handled per cycle/swell
factor
• Bank material handled/cycle =
20.9/1.2 = 17.42 bcm
15
Solution
(Production of shovel, 22 m3)

• No: 0f passes to fill a truck = volume

capacity of truck / loose material
handled/cycle
• No: 0f passes to fill truck = 110/20.9
= 5.263
• Say No: of passes to fill truck = 5

16
Solution
(Production of shovel, 22 m3)

• Time to load one truck = loading spot

time + loading cycle time x No: of
cycles
• Time to load one truck = 42 + 30 x 5
• Time to load one truck = 192 sec. =
3.2 min
• No: of trucks loaded/year = shovel
operating hours x 60 / time to load
one truck
17
Solution
(Production of shovel, 22 m3)

• No: of trucks loaded/year= 5241 x 60

/ 3.2 = 98,268
• Bank material loaded on one truck =
bank material loaded per cycle x No:
of cycles
• Bank material loaded on one truck =
17.42 x 5 = 87.1 bcm

18
Solution
(Production of shovel, 22 m3)

• Bank material loaded on one truck =

17.42 x 5 = 87.1 bcm
• Production of shovel/year = No: of
trucks loaded per year x bank
material loaded on one truck
• Production of shovel/year = 98,268 x
87.1 = 8,559,142 bcm

19
Solution
(Production of shovel, 22 m3)

• Production of shovel/year after

allowing operator’s efficiency factor
of 0.83 = 8,559,142 x 0.83 =
7,104,087 bcm (7.1 Mbcm)

20
Solution
(Production of backhoe, 12 m3)

• Loose material handled/cycle = size

of bucket x bucket fill factor
• Loose material handled/cycle = 12 x
90/100 = 10.8 lcm
• Bank material handled/cycle = Loose
material handled per cycle/swell
factor
• Bank material handled/cycle =
10.8/1.25 = 8.64 bcm
21
Solution
(Production of backhoe, 12 m3)

• No: 0f passes to fill a truck = volume

capacity of truck / loose material
handeled/cycle
• No: 0f passes to fill truck = 60/10.8 =
5.555
• Say No: of passes to fill truck = 5

22
Solution
(Production of backhoe, 12 m3)

• Time to load one truck = loading spot

time + loading cycle time x No: of
cycles
• Time to load one truck = 42 + 30 x 5
• Time to load one truck = 192 sec. =
3.2 min
• No: of trucks loaded/year = shovel
operating hours x 60 / time to load
one truck
23
Solution
(Production of backhoe, 12 m3)

• No: of trucks loaded/year= 5241 x 60

/ 3.2 = 98,268
• Bank material loaded on one truck =
bank material loaded per cycle x No:
of cycles
• Bank material loaded on one truck =
8.64 x 5 = 43.2 bcm

24
Solution
(Production of backhoe, 12 m3)

• Bank material loaded on one truck =

8.64 x 5 = 43.2 bcm
• Production of backhoe/year = No: of
trucks loaded per year x bank
material loaded on one truck
• Production of backhoe/year = 98,268
x 43.2 = 4,245,177 bcm

25
Solution
(Production of backhoe, 12 m3)

• Production of backhoe/year after

allowing operator’s efficiency factor
of 0.83 = 4,245,177 x 0.83 =
3,523,497 bcm = 3,523,497 x 1.15 =
4,052,022 tons (4.052 Mtons)

26
Solution
(Determination of No: of shovels)

• No: of shovels required = Bank

volume of waste rock / yearly
production of shovel
• No: of shovels required = 35.23
Mbcm/7.1 Mbcm = 4.96
• Say No: of shovels required = 5

27
Solution
(Determination of No: of backhoes)

• No: of backhoes required =

Mtons of lignite / yearly
production of backhoe
• No: of backhoes required = 4.00
Mtons/ 4.052 Mtons = 0.987
• Say No: of backhoes required =
1

28
Solution
(Determination of No: of trucks,
110 m3)

• Average cycle time of truck (110 m3) = 16.5

min:
• Time to load one truck (110 m3) = 3.2 min:
• No: of trucks (110 m3)/shovel = 16.5/3.2 =
5.16
• Say No: of trucks/shovel = 6
• No: of Trucks (110 m3)/year = No: of shovels
x No: of trucks/shovel
• No: of Trucks (110 m3)/year = 5 x 6 = 30

29
Solution
(Determination of No: of trucks,
60 m3)

• Average cycle time of truck (60 m3) = 16.5

min:
• Time to load one truck (60 m3) = 3.2 min:
• No: of trucks (60 m3)/backhoe = 16.5/3.2 =
5.16
• Say No: of trucks/backhoe = 6
• No: of Trucks (60 m3)/year = No: of
backhoes x No: of trucks/backhoe
• No: of Trucks (60 m3)/year = 1 x 6 = 6

30
Solution
(Determination of yearly operating
cost of shovel)

• Yearly production of shovel (22 m3) =

7,104,087 bcm
• Available operating hours of
shovel/year = 5,241 hours
• Hourly production of shovel =
1,355.48 bcm
• Shovel (22 m3) operating hours
required = 35.23 x 1,000,000 /
1,355.48 = 25,990.79 hours
31
Solution
(Determination of yearly operating
cost of shovel)

• Hourly operating cost of shovel =

247.89 $/hour
• Yearly operating cost of shovel =
25,990.79 x 247.80 = 6,440,517.76 $

32
Solution
(Determination of yearly operating
cost of shovel)

Simplified Approach
 Total operating cost of shovels =
Yearly operating hours x No: of
shovels x hourly operating cost
 Total operating cost of shovels =
5,241 x 6 x 247.89 = 7,795,149 $
 Operating Cost Difference =
7,795,149 – 6,440,518 = 1,354,631 $

33
Solution
(Determination of yearly operating
cost of backhoe)

• Yearly production of backhoe (12 m3)

= 4,052,022 tons
• Available operating hours of
backhoe/year = 5,241 hours
• Hourly production of backhoe =
773.14 tons/hour
• Backhoe (12 m3) operating hours
required = 4 x 1,000,000 / 773.14 =
5,173.71 hours
34
Solution
(Determination of yearly operating
cost of backhoe)

• Hourly operating cost of backhoe =

67.51 $/hour
• Yearly operating cost of backhoe =
5,173.71 x 67.51 = 349,277.16 $

35
Solution
(Determination of yearly operating
cost of Backhoe)

Simplified Approach
 Total operating cost of backhoes =
Yearly operating hours x No: of
shovels x hourly operating cost
 Total operating cost of backhoes =
5,241 x 1 x 67.51 = 353,820 $
 Operating Cost Difference = 353,820
– 349,277 = 4,543 $

36
Solution
(Determination of yearly operating
cost of truck, 110 m3)

• Bank material loaded on one truck =

87.1 bcm
• No: of trips required = Bank material
removed per year/bank material
loaded on a truck
• No: of trips required = 35,230,000
bcm/87.1 = 404,478 trips/year

37
Solution
(Determination of yearly operating
cost of truck, 110 m3)

• Time for one trip of truck = Cycle

time of truck + loading
• Time for one trip of truck = 16.5 + 3.2
= 19.7 min:
• Total time required to haul 35.23
Mbcm of waste rock = No: of trips
required x time for one trip
• Total time required to haul 35.23
Mbcm of waste rock = 404,478 x 19.7
= 7,968,217 min. = 132,804 hours 38
Solution
(Determination of yearly operating
cost of truck, 110 m3)

• Operating cost of trucks = Total

operating hours required x hourly
operating cost
• Operating cost of trucks = 132,804 x
190.38 = 25,283,226 $/year (25.283
million $/year)

39
Solution
(Determination of yearly operating
cost of truck, 110 m3)

Simplified Approad
Operating cost of trucks = Total
operating hours required x hourly
operating cost
• Operating cost of trucks = 132,804 x
190.38 = 25,283,226 $/year (25.283
million $/year)

40
Solution
(Determination of yearly operating
cost of truck, 60 m3)

• Lignite loaded on one truck = Bank

m3 of lignite loaded on one truck x
density of coal
• Lignite loaded on one truck = 43.2
bcm x 1.15 = 49.68 tons
• No: of trips required = Lignite
production per year/lignite loaded on
one truck
• No: of trips required =
4,000,000/49.68 = 80,515 trips/year 41
Solution
(Determination of yearly operating
cost of truck, 60 m3)

• Time for one trip of truck = Cycle

time of truck + loading
• Time for one trip of truck = 16.5 + 3.2
= 19.7 min:
• Total time required to haul 4.00
Mtons of lignite = No: of trips
required x time for one trip
• Total time required to haul 4.00
Mtons of lignite = 80,515 x 19.7 =
1,586,146 min. (26,436 hours) 42
Solution
(Determination of yearly operating
cost of truck, 60 m3)

• Operating cost of trucks = Total

operating hours required x hourly
operating cost
• Operating cost of trucks = 26,436 x
113.55 = 3,001,808 $/year (3.002
million $/year)

43
Mine lease area of
SECMC
• text

44
Coordinates of lease
Point Easting (m) Northing (m)
A 2,368,783 784,654
B 2,377,505 790,038
C 2,382,096 785,460
D 2,373,528 778,739

45
Area calculation
• AB = 10,249.91 m
• BC = 6,483.47 m
• CD = 10,889.56 m
• AD = 7,583.02 m
• AC = 13,337.78 m
• ΔABC = 32,322,978.3 m2
• ΔACD = 41,285,391.38 m2
• Area of rectangle ABCD = 73,608,369.68 m2
• Area of rectangle ABCD = 73.61 km2

46
Some Basic Mine Life
Concepts
• Example: A copper ore body is thoroughly
investigated and initial estimates for the cost and
recoveries are calculated as given below:
 Mining cost (ore) = $ 1.00/ton
 Mining cost (waste) = $ 1.00/ton
 Milling cost = $ 2.80/ton
 G&A cost (mining) = $ 0.17/ton
 G&A cost (milling) = $ 0.40/ton ore
 Smelting, refining & sales = $ 0.3/lb Cu
 Overall metal recovery = 78%
 Sell price of metal = $ 1.00/lb Cu

47
Some Basic Mine Life
Concepts (Cont:)

 Step 1: Construction of
grade block model.
(Assumption 1)

 Step 2: Construction of
economic block model
(Assumption 2)
48
Determination of Break-even
grade

49
 Mineral Inventory as a function of
grade class interval
Grade class Tons (103) Grade class Tons (103)
interval (%cu) interval (%cu)

>3.2 25 1.5 – 1.6 205

3.1 – 3.2 7 1.4 – 1.5 130
3.0 – 3.1 15 1.3 – 1.4 270
2.9 – 3.0 5 1.2 – 1.3 320
2.8 – 2.9 5 1.1 – 1.2 570
2.7 – 2.8 10 1.0 – 1.1 460
2.6 – 2.7 33 0.9 – 1.0 550
2.5 – 2.6 40 0.8 – 0.9 420
2.4 – 2.5 15 0.7 – 0.8 950
2.3 – 2.4 25 0.6 – 0.7 980
2.2 – 2.3 30 0.5 – 0.6 830
2.1 – 2.2 30 0.4 – 0.5 1,200
2.0 – 2.1 50 0.3 – 0.4 1,050
1.9 – 2.0 75 0.2 – 0.3 1,300
1.8 – 1.9 60 0.1 – 0.2 2,700
1.7 – 1.8 150 <0.1 18,020
1.6 – 1.7 170 50
Tonnage vs grade class
interval

51
Cumulative tonnage vs
cutoff grade

52
Logarithm of cumulative
tonnage vs cutoff grade

53
Average grade vs cutoff
grade

54
Cumulative tons & average grade
as a function of cutoff grade

55
Destination options for
material (Assumption 3)

• Destination A: Mill

• Destination B: Waste
dump

56
Mill tonnage for cutoff
grade 0.4 %

57
Average mill feed grade for
a cutoff grade of 0.4%

58
Size of a plant
(Assumption 5)
• Market survey has suggested
that 5,000 tons of copper can be
sold every year.

59
Determination of milling
rate (Rmill)
• Assuming that:
 Mill recovery = 80%
 Combined smelter/refinery recovery =
97.5%
 Operating days = 250 days/yr

60
Determination of mine
life

• Mine life (yrs)

61
Mine production rate
(Rmine)

62
 Copper recovered = Cu production
per year x life of a mine
 Copper recovered = 5000x11.1
= 55,000 tons
 Overall SR = 23,000,000/7,800,000
 = 2.95

63
 Milling = 2,801 tpd
 Mining = 11,000 tpd
 Mine life = 11.1 years

64
Example: repeat the exercise
using cutoff grade as o.2

 Step 1: Determine the average

ore grade from Figure 6.8

65
Determination of average
grade

66
Determination of milling
rate

67