Application of Whittle Four-D to Risk Management in Pit Optimisation
Organization: The Australasian Institute of Mining and Metallurgy
Jan 1, 1994
Nine case studies are presented to illustrate how risks can be, minimised or quantified during pit optimisation, utilising Whittle Four-D software. Each case study covers a specific problem that has been encountered from a wide variety of pit optimisations. Case A: Maximising profits when the tenement owner is paid a royalty on tonnes processed. Case B: Allocating product prices, rather than a single commodity price during optimisation. Case C: Quantifying processing costs that are affected by penalty elements in the ore. Case D: Exploration expenditures below current pits can be quantified through the use of simulation techniques. Case E: Alternative strategies can be quantified when pits are restricted by tenement boundaries. Case F: Relocation of mine infrastructure that requires large capital expenditures, can be simulated by allocating costs to an area during optimisation. Case G: Evaluating alternative corporate strategies during pit optimisation. Case H: Sensitivity analysis for price, processing cost and mining cost. Case I: Quantifying the advantages of using additional mining capacity during the early periods of mining.