First for Coal

 

Watch the video and see why mines are turning to MineSight for their coal needs.

MineSight products offer numerous advantages for mining coal, particularly structurally complex coal. MineSight Reserve, which unifies the consolidated power of MineSight’s reserve engines, provides complex coal functionality and comprehensive reporting logic. Recent improvements to the MineSight Implicit Modeler offer true thickness calculations with surface outputs, plus user-input controlling features. There’s new multiple ore percent support in MineSight Data Analyst as well as enhancements in MineSight Torque that improve complex coal modeling.

MineSight Schedule Optimizer is equipped with new features, such as multiple equipment sets by material for handling different waste types and coal seams.

MineSight offers coal-specific modeling features and selective mining options for reporting. It can handle both metallurgical and thermal coal deposits, and can report and model multiple coal types within each of these deposits.

For block models, MineSight is the only software package that can model unlimited seams in one project. With greater spatial precision, Sub-Blocking enhances MineSight’s underground solution and makes modeling even the narrowest coal seams both quick and simple. And MineSight is the only software package with fully integrated haulage with multiple equipment allocation.

MineSight supports multiple types of block models – multiple ore percent for unequalled accuracy in complex geology, gridded seam models for stratiform deposits, and sub-blocked models for spatial precision.

For more information on these coal-friendly products and others, read the MineSight for Coal eBrochure.

MineSight debuts at HxGN LIVE

A new chapter in MineSight’s history opened today at the MGM Grand in Las Vegas, Nevada, as Hexagon’s annual users’ show kicked off in style.

Thousands of delegates attend HxGN LIVE, which this year features more than 100 technologies and more than 400 technical, educational and hands-on workshops. ‘The Disruptive Power of Transformation,’ a much-anticipated keynote address by Hexagon President and CEO, Ola Rollén, caps Day 1 this evening.

Day 1

Central to HxGN LIVE’s ‘Synergy Solutions’ track is MineSight, which appears in the new Hexagon Mining division alongside Leica Geosystems, Devex and SAFEmine. MineSight President John Davies and Vice President-Technical, Glenn Wylde, are dividing time between appearing in panel discussions, podcasts and interviews while Senior MineSight Specialists Alyson Cartwright and Jose Sanchez field questions at a MineSight stand. Chairman-Founder Fred Banfield, COO Susan Wick and other MineSight staff are also attending.

Hexagon is expected to complete its acquisition of MineSight later in June. Appearing at HxGN LIVE this week is part of a transition for MineSight, which began in April when news of the acquisition was announced.

In the video to debut at HxGN LIVE, John Davies introduces MineSight to Hexagon users while putting into context what Hexagon’s acquisition means.

“MineSight and Hexagon: Together, we’re the smarter solution.”

Bookmark http://hxgnlive.com/ for updates.

For those unable to attend the conference, HxGN LIVE offers more than four days of online streaming of select keynotes and popular content via HxGN LIVE TV. Access live content and re-caps on desktops or mobile devices. Free registration is available and viewing instructions will be e-mailed.

Affection for MineQuest tradition

 

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For all the excitement generated by news of Mintec’s acquisition by Hexagon, there was a reassuring familiarity about this year’s MineQuest in Tucson. (For more on the acquisition, click here.) Mintec’s seminar, an annual tradition for more than 30 years, featured the ever-popular mix of presentations, workshops and one-on-one consultation together with numerous networking opportunities. For attendees, those presentations will soon be available via video and pdf online and on the MineQuest app, new to this year’s event.

Mintec’s continued integration of its software together with new and improved MineSight products generated much of the buzz at MineQuest. And MineQuest’s educational theme – an invitation to “Broaden your Mind and your Mine” – also struck a chord with clients.

Principal MineSight Specialist Matt Thorndal and Mintec Chairman Fred Banfield (lower right) share a moment on the opening day of MineQuest.

Principal MineSight Specialist Matt Thorndal and Mintec Chairman Fred Banfield (lower right) share a moment at the Westward Look Resort in Tucson, on the opening day of MineQuest.

“It’s like free training!” laughed Raza Parvez, Senior Geologist at Atrum Coal. “This is a very well planned conference and the one-on-one is very helpful.”

Parvez was among many clients who singled out the new MineSight Implicit Modeler for praise. MineSight Implicit Modeler allows geologists to rapidly build models and grade shells directly from drillholes. It avoids the need to manually create and link sectional interpretations, and it masters complicated surfaces.

“Implicit Modeler was one of the best things that ever happened to us,” said Parvez. “Our project is unique in the sense that it’s a big area and it has small seams, which are close together. It has partings in them and so we are constantly updating our model. The traditional way of doing footwalls and then doing sections and then creating surfaces would have taken so long. And so with Implicit Modeler we just update those points and then we get in our drillhole database and we get a new surface very quickly.”

MineSight Implicit Modeler proved to be a big hit with clients at MineQuest.

MineSight Implicit Modeler proved to be a big hit with clients at MineQuest.

Dustin Meisburger, Senior Mining Engineer at Anglo American’s Peace River Coal is equally impressed.

“I think MineSight Implicit Modeler is really going to revolutionize how complex coal models are built. You’re not going to have to digitize 200, 300 sections. You’ll let Implicit Modeler build your surfaces and you’ll still do the work, you’ll look at the drillhole data and if you’ve got to make changes you’ll make changes, but to have that initial amount of work done before you start is huge.”

Meisburger has implemented a long-term planning schedule at Peace River using MineSight Schedule Optimizer. He likes what he’s seen of MineSight Planner, which will soon replace MineSight Interactive Planner.

“Integral to MineSight Planner is the new reserves engine. It sounds like there will be some options in there that will allow us to calculate our reserves properly without using workarounds, so it will be built into the program, making it easier on us and less work for us.”

MineSight Schedule Optimizer has undergone numerous enhancements in the last year.

MineSight Schedule Optimizer has undergone numerous improvements.

MineSight Schedule Optimizer has undergone numerous improvements.

“Multiperiod scheduling is an especially good addition to MineSight Schedule Optimizer,” said Eric Mader, Principal Mining Engineer at Cube Consulting. “It helps with trying to get the best value and looking at when do you start the next phase, how you should do your stockpiling; it’s really good.”

ArcelorMittall is one of the first users of MineSight Atlas. Chief Mining Engineer Philippe Chabot believes the product will greatly benefit the company.

MineSight Atlas offers a resource-based, true calendar approach to multiple-activity scheduling.

“We have a lot of trucks and loading units in conjunction with a lot of deposits and with Atlas we’re able to put it all together and we’re able to help the short term planner make the right decision,” said Chabot. “We can increase the grade and decrease the stripping ratio and it’s a win-win situation. We look forward to the future with Atlas and we’re sure it’s going to be a good product for our mine.”

Atlas2 Animating schedule sequence of activities and destinations, transparency

MineSight Atlas is reshaping short term planning at ArcelorMittall and at mines around the world.

Improvements to the MineQuest experience were also appreciated.

“The app was very handy because it’s with you all the time – very helpful,” said Greg Trout of Moose Mountain Technical Services.

“We can go to PDAC and CIM and it’s a different flavor, but MineQuest is more focused on the software that we’re using, and solving the problems that we need to solve,” said Garth Kirkham of Kirkham Geosystems. “I’ve always liked Mintec – it’s a real family atmosphere. The seminar has always improved. Every year it gets tweaked a little bit better.”

MineQuest events are free to attend for MineSight clients. Here’s this year’s schedule.

June 19-20          MineQuest Perth

June 24-25          MineQuest Swakopmund

Nov. 6-7               MineQuest Hermosillo

Nov. 10-11          MineQuest Lima

Nov. 13-14          MineQuest Santiago

 

MineQuest's Quest for the Cup was again hotly contested this year at Arizona National Golf Course.

MineQuest’s Quest for the Cup was again hotly contested this year at Arizona National Golf Course.

 

 

Cape crusaders back from the booth!

 

Cape Town, South Africa, hosted the 20th annual Mining Indaba. Mintec was there!

Cape Town, South Africa, hosted the 20th annual Mining Indaba. Mintec was there!

Preparation proved to be the key to Mintec’s highly successful outing at Mining Indaba. A coordinated sales effort saw 150 companies approached before the Feb. 3-6 event in Cape Town, South Africa. That led to numerous meetings and demos of MineSight software at the 20th annual event.

MineSight specialist, Selcuk Akinci, coordinated sales efforts out of Mintec’s Johannesburg branch. With help from the company’s London office and Tucson headquarters, Akinci and Johannesburg branch manager Rob Macfarlane hit the ground running on Day 1.

Johannesburg branch manager, Rob Macfarlane, flanked by MineSight specialists Derick Butler (left) and Selcuk Akinci are busy following up leads after a highly successful Mining Indaba.

Johannesburg branch manager, Rob Macfarlane, flanked by MineSight specialists Derick Butler (left) and Selcuk Akinci, are busy following up leads after a highly successful Mining Indaba.

“The show attracted more service providers than ever, mostly at the expense of junior mining companies who were affected by the industry downturn in 2013,” said Akinci. “Our stand location was good and the latest MineSight videos helped attract visitors.

“Booth traffic was very busy on Day 2, and we decided to visit our target companies’ stands to maximize the business opportunity. It was definitely the right decision and we managed to have some really good meetings.”

Mintec’s direct approach generated quality leads from across Africa, Europe and Australia, said Akinci.

Rob Macfarlane fields questions at the busy MineSight booth during Mining Indaba.

Rob Macfarlane fields questions at the busy MineSight booth during Mining Indaba.

“There was interest in our new MineSight products, such as Atlas and Implicit Modeler,” said Akinci. “But most of all, companies seemed impressed with MineSight’s complete software solution.

“We managed to speak to more than double the number of companies, compared to last year’s numbers. Those leads are now being followed up.”

 

 

New products, new video

 

Geologists and engineers looking for the latest advances in mine software need look no further than Mintec, which releases its newest MineSight product video today.

MineSight Atlas, Implicit Modeler and Performance Manager are featured in the video, which combines software footage and client testimonials. Mintec’s software experts preview the products, which are already creating a buzz in the mining industry.

“Atlas seems to me like a necessity,” says Abel Puerta (Hochschild Mining-Peru) of MineSight’s complete package for manual scheduling and stockpile blending.

“I think it’s something that’s going to have a lot of potential,” said Norwest Corp’s Scott Braithwaite of MineSight Implicit Modeler, which rapidly builds models and grade shells directly from drillholes.

“… Mintec is putting a lot of stock into the development of these packages that benefit us in the work we do on a daily basis,” said Minera Cerro Verde-Peru’s Willy Mesa of the new products.

For more MineSight product videos, click here.

MineSight 101 with Fred Banfield

 

For the definitive low-down on Mintec and MineSight software, who better to talk to than Fred Banfield, company founder and chairman. Fred took the hot seat during Arizona Mining Review’s monthly online video magazine to answer a wide range of questions from host and state geologist, Lee Allison.

In a wide-ranging interview, Fred discusses Mintec’s expansion from a one-room company to a global operation, its recent Presidential award for exports, and the direction of mining and mining software.

Despite its growth from a one-room office to a global network, Mintec continues to foster a family atmosphere - to which chairman Fred Banfield and president John Davies can attest.

Despite its growth from a one-room office to a global network, Mintec continues to foster a family atmosphere – to which chairman Fred Banfield and president John Davies can attest.

“Life was easier selling software than working 20 hours a day doing consulting work,” says Fred of Mintec’s early transition to becoming a software company.

Fred combined his expertise in mine engineering with his passion for computers to help companies with mine modeling and design. He started Mintec from his Tucson apartment back in 1970 and watched the company grow to a worldwide network of mining professionals, operating from branch offices on every continent. He continues to play a daily role in MineSight software development.

Mintec may have grown, but a sense of family still prevails among its 250 employees.

Mintec staff at the Tucson headquarters.

Mintec staff at the Tucson headquarters.

“Our objective is not only to do the best for our clients and give them the best software, but also to provide an environment for our own workers to progress and have a good life,” says Fred.

Arizona Mining Review is broadcast by the Arizona Geological Survey. From potash to copper to gold, from mineral exploration to policy development, AMR explores and reviews mining in Arizona. Every month the show invites experts from industry, academia, research, and politics to discuss the current state and future of mining in Arizona. Visit http://www.azgs.az.gov/ for more information.

Early days at Mintec, Inc.

Early days at Mintec, Inc.

Desde MineSight hasta su operacion

A fin de marzo de 2013: Topografía, diseños actuales de etapa y modelo de bloques.

Topografía, diseños de la etapa actual y modelo de bloque en la mina de plata a cielo abierto Álamo Dorado en México, de Minera Corner Bay– tal como se demuestra en MineSight. El equipo de asistencia en proyectos MineSight resolvió recientemente las dificultades que tenía Alamo Dorado en reconciliar sus planes de largo y de corto alcance, permitiendo que obtuvieran un 9% del valor del proyecto adicional.

Desde el Ártico hasta el Pacífico sur, el soporte técnico de Mintec está en la mina, como socio del cliente para sacarle el máximo provecho a MineSight. El especialista sénior en MineSight, Ernesto Vivas acaba de regresar de Sonora, México, donde Minera Corner Bay está utilizando MineSight en la mina de plata a cielo abierto Álamo Dorado. Minera Corner Bay es una subsidiaria de Pan American Silver, de Vancouver.

La producción a escala comercial en esta mina comenzó el primero de abril de 2007. El principal ingreso de Álamo Dorado se genera a partir del mineral de plata y el resto proviene del oro. Cuando Ernesto visitó la mina por primera vez en 2009, la estrategia de ley de corte era mediante acopio del material de baja ley. Cuatro años después, en 2013, mezclan ese material con la mena de alta ley proveniente del tajo, para satisfacer las especificaciones de calidad de la planta.

“La última vez que trabajé con este cliente fue en noviembre de 2011”, comenta Ernesto. “Después de analizar el cronograma observamos que había oportunidades para extraer mineral en áreas distintas y así aumentar el valor de la planificación”.

Esta mejora logró capturar un 9 por ciento adicional en el valor del proyecto y justificó la realización de cambios operacionales para adecuarse a los recursos en esas nuevas áreas.

El especialista sénior en MineSight, Ernesto Vivas, forma parte del equipo de asistencia en proyectos MineSight. Aquí lo vemos en SME-2012 en Seattle, como pez en el agua ayudando a clientes a resolver sus problemas mediante MineSight.

El especialista sénior en MineSight, Ernesto Vivas, forma parte del equipo de asistencia en proyectos MineSight. Aquí lo vemos en SME-2012 en Seattle, como pez en el agua ayudando a clientes a resolver sus problemas mediante MineSight.

Durante el seminario Mintec 2012 en Hermosillo, México, Ernesto se entrevistó con los representantes de Pan American para conversar sobre Álamo Dorado. Ese encuentro dio lugar a la visita de Asistencia en Proyectos MineSight realizada en abril último. La Asistencia en Proyectos MineSight es parte de los servicios de consultoría que ofrece Mintec. Los clientes pueden contratar la ayuda del equipo de ingenieros de mina y geólogos de asistencia profesional en proyectos para servicios remotos o in situ.

Durante la visita de abril, Ernesto se reunió con el gerente de mina y con el ingeniero de planificación a corto plazo y también con el ingeniero de planificación corporativa de Pan American Silver para el largo plazo. Alamo Dorado le pidió a Ernesto que resolviera las dificultades para conciliar las planificaciones de corto y largo alcance. La mina utilizaba MineSight Strategic Planner para el presupuesto y el plan de vida. Para la planificación diaria, se empleaba un sistema propio de control de mena, y MineSight Interactive Planner para los planes semanales. MineSight Strategic Planner toma en cuenta las reservas totales/parciales de los bancos, mientras que los planes diarios y semanales se basan en cortes poligonales.

“Para cerrar la brecha de planificación entre corto y largo plazo y para mejorar cuestiones de conciliación, sugerí que utilizáramos MineSight Schedule Optimizer para confeccionar un plan de mina integrado”, comentó Ernesto.

No se realizó ninguna preparación de datos antes del encuentro con el cliente. La información inicial es la que se muestra a continuación:

“Empezamos preparando los cortes y el trazado para excavaciones, aplicando anchos de explotación operacionales”, dijo Ernesto. “Los cortes se diseñaron según las metas de tonelaje equivalentes a la producción de un día”.

Se importaron en la base de datos MineSight Planning Database y se cargaron los atributos correspondientes. El primer año (abril a diciembre de 2013) se configuró por mes, el segundo por trimestre y el resto de los períodos, por año.

“Durante la vida útil de este proyecto, la empresa ha estado acopiando la mena de baja ley y actualmente están utilizando ese acopio para mezclarlo con el mineral extraído de la mina, para satisfacer las condiciones de tonelaje/ley de la planta”, agregó Ernesto. “Era necesario implementar algunas consideraciones de arranque en el plan de mina, para que la planificación fuera factible”.

Afortunadamente, MineSight Schedule Optimizer tiene una función que permite reflejar esas restricciones. Por ejemplo, el número de bancos abiertos ayudó a evitar que la pala tuviera que desplazarse de un banco a otro. Ernesto tenía que asegurar que las excavadoras disponibles fueran asignadas de manera adecuada y que pudieran desplazarse de un área a otra, de uno a otro período, y según sus capacidades de trabajo y demás limitaciones operacionales. Los gráficos que se presentan más abajo muestran ejemplos de otras reglas de arranque.

Para poder acceder a cortes que se arrancan en septiembre: Cortes que deben arrancarse hasta agosto: Las palas tenían que llegar a este nivel y extraer estos cortes: Antes de poder arrancarlos.

Para poder acceder a cortes que se arrancan en septiembre: Cortes que deben arrancarse hasta agosto: Las palas tenían que llegar a este nivel y extraer estos cortes: Antes de poder arrancarlos.

“Ejecutamos MineSight Schedule Optimizer período por período, verificando la planificación en la gráfica y analíticamente para asegurarnos que se cumplían en los objetivos”, continuó. “Armamos el plan de vida de mina y creamos el siguiente video. Tuvo tan buena aceptación, que los clientes nos dieron permiso para compartirlo, tal como ven abajo:

“Después de que armamos el plan de mina integrado tomamos los resultados de abril y creamos un plan semanal que incluía el carguío”. “Primero intentamos hacerlo con MineSight Interactive Planner-Material Manager. Pero, para lograr la mezcla y satisfacer los requerimientos de tonelaje y ley, era más fácil y más rápido hacerlo con MineSight Schedule Optimizer”.

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La asistencia en proyecto concluyó con una guía para planeamiento de mina preparada específicamente para los ingenieros de Álamo Dorado. “Los documentos están muy buenos con una presentación excelente y datos pormenorizados. No queda más que agradecer por la profesionalidad y la calidad personal demostrada en todo momento”, comentó el gerente de mina Rogelio Martinez.

No permita que la falta de personal o una sobrecarga de trabajo comprometan su productividad.Los profesionales multilíngües de Asistencia en Proyectos Minesight están a su disposición para ayudarlo. Haga clic aquí para contactarnos.

MineSight to your site

The topography, current phase designs and block model at Minera Corner Bay's Alamo Dorado open pit silver mine in Mexico - as presented by MineSight.

The topography, current phase designs and block model at Minera Corner Bay’s Alamo Dorado open pit silver mine in Mexico – as presented by MineSight. The MineSight Project Assist Team recently solved Alamo Dorado’s difficulties reconciling long and short range planning, capturing an additional 9% of project value.

From the Arctic to the South Pacific, Mintec technical support is on-site, partnering with clients to get the most from MineSight. Senior MineSight specialist, Ernesto Vivas, recently returned from Sonora, Mexico, where Minera Corner Bay is using MineSight at the Alamo Dorado open pit silver mine. Minera Corner Bay is a subsidiary of Vancouver company, Pan American Silver.

Commercial production at Alamo Dorado began on April 1, 2007. Production from Alamo Dorado generates most of its revenue from silver with the remainder from gold. When Ernesto visited the site for the first time in 2009 the cutoff grade strategy was to stockpile the low grade material. Four years later in 2013, they are blending that material with high grade from the pit to meet the plant quality specifications.

“The last time I worked with the client was in November of 2011,” says Ernesto. “After we analyzed the schedule we found opportunities to mine in different areas to improve the value of their plan.”

The improvement captured an additional nine percent of project value and justified operational changes to allocate the mine resources in the newly identified areas.

Senior MineSight specialist, Ernesto Vivas, pictured here in Seattle at SME-2012, is in his element helping clients solve their problems with MineSight.

Senior MineSight specialist, Ernesto Vivas, is a member of Mintec’s Project Assist Team. Pictured here in Seattle at SME-2012, Ernesto is in his element helping clients solve their problems with MineSight.

During Mintec’s 2012 seminar in Hermosillo, Mexico, Ernesto met Pan American representatives to discuss Alamo Dorado. That meeting led to April’s MineSight Project Assist visit. MineSight Project Assist is part of Mintec’s consulting services. Clients can enlist the help of the project assist team’s professional geologists and mining engineers on-site or remotely.

During April’s visit, Ernesto met with Alamo Dorado’s mine manager and short range engineer, as well as Pan American Silver’s corporate long range engineer. Ernesto was asked to address Alamo Dorado’s difficulties reconciling long and short range planning. MineSight Strategic Planner was being used for the mine’s budget and life of mine plan. An in-house OCS was being used for daily plans and MineSight Interactive Planner for weekly plans. MineSight Strategic Planner uses full/partial bench reserves while the daily and weekly plans are based on polygon cuts.

“To bridge the gap between long and short range planning and improve their reconciliation issues, I suggested that we used MineSight Schedule Optimizer to complete an integrated mine plan,” says Ernesto.

“We started by preparing the cuts and excavations paths using operational minable widths,” says Ernesto. “The cuts were designed to meet tonnage targets equivalent to one day’s worth of production.”

The cuts were imported into the MineSight Planning Database and the corresponding attributes were populated accordingly. The first year (April through December 2013) was set up monthly, the second year quarterly and the remaining periods yearly.

“Over the life of the project they have been stockpiling low grade ore and currently are using that stockpile to blend it with the run of mine ore to meet the tonnage/grades required by the plant,” says Ernesto. “Certain mining considerations had to be implemented into the mine plan in order to make the schedule practical.”

Fortunately, MineSight Schedule Optimizer has the functionality to reflect such constraints. For example, the number of open benches helped prevent the shovel from moving from one bench to another. Ernesto had to ensure that the excavators available were allocated properly and could move from one area to another, from period to period, subject to their excavation rates and other operational constraints. Similar examples of additional mining rules are shown in the picture below.

PA3

“We executed MineSight Schedule Optimizer period by period, checking the schedule graphically and analytically to make sure that the objectives were satisfied,” says Ernesto. “We completed the life of mine plan and made the following movie. It was so well-received, the clients gave us permission to share here.

“After we completed the integrated mine plan we took the results from April and created a weekly plan that included the haulage,” says Ernesto. “At first we tried using MineSight Interactive Planner-Material Manager. However, in order to achieve the blending and meet the tonnage and grade requirements, it was actually easier and faster to do it with MineSight Schedule Optimizer.”

PA4

The project assist was completed with a custom Mine Planning Guide document prepared for the engineers at Alamo Dorado.

“The documents are very good with excellent presentation and detailed data,” writes mine manager, Rogelio Martinez. “There is nothing left to do but to thank you for your professionalism and the quality of person that you have always demonstrated.”

Don’t let a lack of personnel or a work overload compromise your productivity.The multilingual professionals of MineSight Project Assist are available to help you. Click here to contact us.

Script for success

 

In southeastern British Columbia, Canada, Teck Coal faced the challenge of building a combined model for two of its mining areas that had been surveyed in different coordinate systems. Geologist, Michael Clarke, of Teck’s Fording River Operations explains how Mintec designed Coordinate Transformation Scripts for Teck Coal based on transformation algorithms developed by a contractor.

Geologist, Michael Clarke, of Teck’s Fording River Operations.

Geologist, Michael Clarke, of Teck’s Fording River Operations, presents at MineQuest.

Teck used these scripts to build combined models and pit designs over Fording River and Greenhills in B.C.’s Elk Valley. The ultimate goal is to eventually convert both operations to the UTM NAD83 Grid.

All mine planning MineSight objects and models must be converted so that when mine operations converts, planning is seamless.

“To be able to do this has made things so much easier,” said Michael during his presentation at MineQuest-Tucson in April. “Without the scripting work that Andrew did, I don’t know where we’d be – we wouldn’t have this done here today,” added Michael, acknowledging the help of Mintec senior software developer, Andrew Fee.

 

Recognizing the whole of the hole

 

Recognizing pit external costs within pit expansion calculations is central to Ricardo Garcia’s MineQuest presentation, which offers a MineSight solution.

The usual process to define an optimum pit considers only the economic parameters related to the mining and processing of the ore and waste inside of the optimum pit shell, explains Ricardo.

Rio Tinto's Ricardo Garcia at MineQuest 2013.

Rio Tinto’s Ricardo Garcia at MineQuest 2013.

The inputs to the algorithms used for pit optimization, such as floating cone and Lerchs-Grossmann, can recognize capital cost associated with major equipment purchases and plant construction costs.

However, these inputs overlook variable costs external to the pit limit. These variable costs might include costs for dump construction, leach pad construction, road construction, dike construction, and waste stockpile re-handle costs driven by specific geotechnical offsets from pit crests to dump toes.

Rio Tinto Technology & Innovation realized that in some projects these external costs are large enough to impact substantially the size of the optimum pit, rendering it sub-optimal.

Ricardo explains how a MineSight solution offers a methodology within the pit optimization/pit expansion process that not only recognizes the operational costs and the capital cost of the deposit, but also recognizes the variable external costs associated with the reserves.