This document discusses using scenario planning and analysis in open pit mine planning to assess sustainability and deliver sustained value. It recommends: 1. Creating multiple pit design scenarios to understand project risk, opportunities, and drivers under different inputs and assumptions. 2. Analyzing scenarios in Datamine software to efficiently generate, schedule, and evaluate pit designs on optimization shells. 3. Comparing scenario metrics like NPV, cash flow, costs to balance financial and sustainability targets for a socially and environmentally responsible mine. This facilitates robust project valuation and selection of development options aligned with sustainability.

1. CREATING A MINE WITH DATAMINE:
SCENARIO PLANNING AND SUSTAINED VALUE DELIVERY
By Nicole Player,
Principal Technical Manager – Mining

2. Project Valuation through Sustained Value Delivery
• Business performance criteria has grown over the last couple of decades
• From economic performance for shareholders
• To sustainability performance for all stakeholders

3. Project Valuation through Sustained Value Delivery
• How does this relate to open pit mining?
• To achieve sustainable value delivery, we
must assess multiple scenarios to
understand the individual project risk,
opportunities and drivers
• Analyse the effects of changes in inputs for
sensitivity and probability of success to
determine project drivers
• The scenarios underpin project valuation
and facilitate comparison of project
development options on sustainability
investment criteria
Photo Credit: Datamine, Drill And Blast Best Practices Part One: Bench Preparation article, 13 July 2020

4. Open Pit Planning Scenario Generation
• Efficient create, schedule and evaluate multiple pit designs, on multiple optimisation shells
• Areas of high probability of achieving a defined overall outcome or
• Areas of interesting variability that may represent risks or opportunities or
• Areas of environmental or cultural significance or
• Areas where innovation and technology may influence outcomes
• Fast/easy/reliable/viable planning solutions, for it to be an integrated solution
Strategic
Optimisation
(Summit)
Strategic
Planning
(NVPS)
Design and
Scheduling
(Studio OP)
Excavation
Analysis
Drill and
Blast
Surveying
Open Pit
Planning
• Scenario assessment during open pit planning

5. Strategic Optimisation
• Selected scenarios from a flexed group of scenarios:
• Original expectation (Base Case)
• Most probably outcome
• Innovation effect
• Outlier opportunity
• Outlier risk
Base Probable Innovation Opportunity Risk
Ore Tonnes - -14% 1% 44% -30%
Total Tonnes - -6% 3% 57% -26%
Cashflow - -15% 8% 57% -25%
Margin - 5% -3% 23% 48%

6. Scenario Planning
Undertake design, schedule and valuation of all options because:
1. Studio OP makes it quick and easy
2. Undertaking planning allows us to value the investment for
sustainable performance for all stakeholders
3. It’s fun

7. Design and Scheduling
• Studio OP automated pit design and scheduling makes generating and comparing alternatives
straightforward
• If I tried doing this manually it would take me 5 times as long
Base Case Probable Case Opportunity Case Risk Case
Innovation Case

8. Scheduling and Financial Valuation
Base Case

9. Metrics Valuation
Probable Case
Innovation Case
Risk Case
Opportunity Case
Base Case
Develop strategies to
• reduce exposure to risk
• capitalize on opportunities
Undertake additional analysis to
balance desired financial
metrices
• NPV
• Cashflow
• Unit Cost
• Unit Cost Margin
• Payback Period
• Maximum Negative Cashflow
• Mine Life

10. Metrics Valuation
Probable Case
Innovation Case
Risk Case
Risk Case
Opportunity Case
Base Case
Base Case Innovation Case Probable Case Opportunity Case
• NPV
• Cashflow
• Unit Cost
• Unit Cost Margin
• Payback Period
• Maximum Negative Cashflow
• Mine Life
• Water, Waste, Energy Usage
• Waste Management
• Reduce Pollution
• Responsible Closure Planning

11. Creating a Mine with Datamine: Scenario Planning and Sustained Value Delivery
• Often open pit development is the selection of an optimization shell, and undertaking a
couple of designs to create a maximum cashflow or highest ounce open pit
• Automated Studio OP tools makes generating and comparing alternative scenarios
quick and easy
• This facilitates the testing of multiple design and scheduling scenarios, providing
clarity on durability/stability of open pit, sensitivity the project, the drivers of the
project and potential opportunities and risks
• Sustainability metrics can be added across the range of scenarios to understand the
alignment or deviation of financial and sustainability targets
• This way project development can focus on safe, financially profitable, technically
appropriate, environmentally and socially responsible extraction
• This is something we can all do

12. WANT TO EXPLORE MORE?
Get in touch with our team at MineGeoTech to find out how we can help you
maximise value through innovation.
www.minegeotech.com.au
contact@minegeotech.com.au
(08) 9381 3215