Can quantification of geological risk improve open pit mine design?

TL;DRAbstract

The management of cash flows and risk during production is a critical part of a surface mining venture as well as an integral part of a strategy in developing new and operating existing mines. Orebody uncertainty is a critical factor in strategic mine planning, the optimisation of mine design and long-term production scheduling are available; however, none of them is explicitly developed to effectively deal with, incorporate and take advantage of geological risk. In this research a new approach to mine design based on risk quantification and alternative strategic decision-making criteria is developed. First, the concepts of risk integration and quantification in decision-making for both new an operating surface mines are reviewed. In addition, it is demonstrated that its inclusion in economic evaluation is a critical part of assessing the real value of mining assets. Subsequently, a new method for dealing with quantified geological and grade uncertainty in the context of optimal pit d

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