The Road To NPV+
Organization: The Southern African Institute of Mining and Metallurgy
Jan 1, 2001
When the slope angles of the southern side of the Venetia open pit were required to be flattened by some 20 degrees after an analysis completed by De Beers geotechnical engineering in conjunction with SRK, the additional waste stripping tonnage generated was in the order of some 70 million tons. The potential cost of having to move this tonnage had a significantly negative effect on the Net Present Value of Venetia Mine, challenging the viability of the third pushback and rendering a potential fourth pushback completely uneconomic. This paper details some of the innovation that went into the design and planning process undertaken to virtually negate the instantaneous effect of the flattened slope angles and the associated waste tonnage as well as further improve the NPV of Venetia Mine and bring the fourth pushback back into economic viability. This process has become known as NPV+ and is anon going exercise in waste reduction/deferment and revenue advancement.