WhittleMIME 413-513 Workshop 1 2014

MIME 413 Strategic Mine Planning with Uncertainty
MIME 513 Mine Planning Optimization under Uncertainty

Lecturer: R. Dimitrakopoulos
Fall 2014
Class Project Part 1

Optimization in Mine Design using Whittle Software
Due date: September 26th 2014
Early bird submission bonus by September 23st 2014: +10%
Late submission penalty: 10% per day
OUTLINE
1.
Introduction
2.
Task
3.
Data Files
4.
Instructions
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1. Introduction
Part 1 of the project covers the following topics:
1. Definition of the ultimate pit limit.
2. Determining nested pit shells.
3. Designing pushbacks.
4. Effects of extraction sequence of ore/waste blocks on production scheduling and
long term planning.
Concepts behind Whittle Nested Pits
Whittle uses a Model File containing details of the contents of each block, but, for
optimization purposes, we need a single value for each block. This value is the cash flow
(positive or negative) that would result from mining the block. For optimization purposes
it is important to assume that the block has been uncovered. It is unnecessary to allow for
stripping costs, because the optimizer does this implicitly. If we calculate the block
values for a particular model we will get a certain set of block values that, when used in a
pit optimization, will lead to a particular pit outline, the optimal outline.
Example 1
For the purpose of this example, assume the pit outline is outline "A" in the following
diagram.
Figure 1. Pit outline obtained from a single optimization.
Within an optimal outline, every block is "worth mining". Each block consists of zero or
more parcels and, possibly, some undefined rock that can be regarded as another parcel.
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The resultant cash flow from mining a block consists of the sum of the cash flows
generated be mining the blocks parcels. A parcels cash flow depends on the way we
treat the parcel (i.e. mill, leach, etc.) and the associated prices and costs with the method
of treatment. An increase in all commodity prices while keeping the costs constant may
cause the parcel to be treated differently (e.g. it may now be processed rather than treated
as waste); in this case, the cash flow will always either stay the same or increase.
Increasing the prices will not decrease the cash flow obtained from mining a given parcel.
Thus, if we increase the prices, the value of every block within outline A will increase or
stay the same. No block value will go down. Consequently, every block within outline A
is still worth mining.
Example 2
In addition, if we do another optimization using the new values, the new outline (shown
as outline B below) is certain to include the whole of A. It may also include extra blocks
that were not worth mining before, but which are now worth mining.
Figure 2. Pit outlines obtained from two optimizations.
The Whittle Pit Shells node (Optimization program, FXOP)

If we step the prices through a series of values, doing an optimization for each, we obtain
a set of nested pit outlines, and this is, in effect, what the Pit Shells node in Whittle does.
It multiplies all of the prices by a series of 50 to 100 "Revenue Factors" ranging,
typically, from 0.3 to 2.0, and produces a pit outline for each factor. The reason for
producing outlines for the smaller values of Revenue Factor is that we want to produce
inner pit shells that highlight the best positions to start mining and to assist with the
sequencing. The outlines are often very close together and form an almost continuous
"spectrum", where the change in tonnage from one outline to the next is quite small.
However, if the grade increases sharply with depth or the ore body is discontinuous, large
tonnage differences between adjacent pits can occur. Since all the outlines obey the pit
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slope requirements, it is simple to determine which sequences are feasible when mining
out a particular pit.
Example 3
Figure 3. Schematic of nested pits.
In Figure 3, if pit 5 is the ultimate pit, we can clearly mine in the sequence a, b, c, d, e, f,
g, h, etc. If the pits are sufficiently far apart to give working space, another possible
sequence is a, f, b, g, k, c, etc. Regardless, given a set of nested pits, these sequences are
clearly defined and easy for the computer to trace, and thus can be used to show various
mining schedules in order to obtain projected tonnages, grades and cash flows. Although
each set of outlines is only strictly optimal for a particular set of costs, their usefulness
goes far beyond this. Provided that the costs used are of the same order, another
optimization run with different costs will usually produce a set of pits of similar shape,
but are shifted relative to those from the first run. For example, pit number 20 from one
run may be very similar to pit number 25 from the previous run. It is therefore reasonable
to simulate mining with wide ranges of prices and costs using the same set of nested pits.
Once a set of costs has been settled on, a final optimization using those costs and a
repeated simulation can be run as verification.
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2. Project (Part 1) Task & Deliverables

Deliverable for Project Part 1:
A properly documented report that amalgamates the deliverables from each of the three
Steps below, for the mines yearly pit design and mine planning study.
Find the optimal ultimate pit limits, design pushbacks and generate a Life-of-Mine
(LOM) production schedule for a small gold deposit, so as to maximize its Net Present
Value. Report all findings and justify your choices. For this task, the Whittle software
must be used along with the parameters provided in Table 1 and the orebody models in
the files described below. All deliverables for this assignment are discussed in this
section; for information on the related files and steps, refer to the following sections.
Table 1. Parameters for the optimization of the gold deposit.
Slope angle
54
Selling price
19.29 $/unit
Selling cost
N/A
Mining cost
1.8 $/tonne
Processing cost Fresh Ore
16.862 $/tonne
Processing cost Oxide Ore
8.195 $/tonne
Recovery Fresh Ore
84 %
Recovery Oxide Ore
90 %
Cut-off
0.3 g/tonne
Model Au unit
Grams
Processing capacity
0.2 Mt/y
Extraction capacity
0.5 Mt/y
Discount rate per period
8%
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Step 1: Defining the ultimate pit limit

Define the final pit by choosing amongst the available nested pit shells generated by
Whittle.
Deliverables from Step 1:
a) A pit-by-pit graph of undiscounted cash flow per pit shell, where the pit number is
plotted on the X axis and the net economic value on the Y axis.
b) A pit-by-pit graph of discounted cash flow per pit, where the pit number is plotted
on the X axis and the discounted economic value on the Y axis.
c) Pit-by-pit graph of recovered metal, ore and waste where the pit number is plotted
on the X axis and the metal on the Y axis.
d) Plot the required graphs using bar style.
e) All choices made need to be justified and implications briefly explained.
Step 2: Design pushbacks given the ultimate pit limit in Step 1
Using the final pit as defined in Step 1, use the automatic pushback selection in Whittle
to choose the pushback design. Try at least three different and meaningful numbers of
pushbacks and assess the possible implications on the final NPV of the mine; explain the
differences and related effects.
a) A table that associates a pushback design to its NPV.
b) Report in pushback-by-pushback graphs ore, waste, metal and cash flows.
c) Discuss the implications of the number of pushbacks used and what they
physically represent.
d) All choices must be justified and implications briefly explained.
Step 3: Generate the LOM production schedule of the mine
Using the ultimate pit and pushback design from Steps 1 and 2, generate the LOM
production schedule. Use the same processing and extraction capacities as in Table 1.
a) Produce the LOM production schedule and report all related graphs (ore, waste,
metal production, and cumulative NPV) for the mine.
b) Describe the differences among the available schedule generating options:
Milawa NPV, Milawa Balance and fixed lead.
c) All choices must be justified and implications briefly explained, including the
selection of the scheduling option.
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3. Data Files
The folder named MIME 413 Project Part 1 contains a single estimated (kriged,
deterministic) orebody model and a parameter file.
A) Model File:
Orebody block model files: These types of files are identified by their extension as
mod. They contain the specification of the block model of the deposit such as block
coordinates, metal grade, ore and waste tonnage etc.
Format: The formats of the parameter and model files are provided in the Whittle
softwares manual and the summarised below.
The first line:
X, Y, Z, Number of Parcels, Positional mining CAF, Processing CAF, tonnage
The second line:
X, Y, Z, Rock Type, Tonnage, Metal Content
If the number of the parcel for a block is zero, the second line doesnt exist for that
block. If the number of the parcels is 1 or more, the second line is written for each of
the parcels for that block.
Figure 4. Example of a mod file when opened in a text editor.
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B) Parameter File
In this workshop, all the necessary parameters for the design and planning of the pit are
provided. For more information, see the Whittle Parameters document included or the
Whittle help manual.
The parameter file: parfile.par
Format: The format of the parameter file is summarised as below.
1
dx
dy
dz
x0 y0
z0
(block dimensions along x, y and z directions and the origin of model)

2
nx
ny
nz
(number of blocks along x, y and z directions)

3
ABI
MCAF
PCAF
PRNT RSTINT
RSTME
[active block indicator, positional mining CAF(1=use CAF, 0=do not use), processing
CAF(1=use CAF, 0=do not use), printing index (1:quantity of unprocessed material
printed, 0:quantity of unprocessed material not printed), restart interval and restart time]
4
nx
ny
nz
(sub-region block limits)

5
30
0.0
(number of slope regions, number of benches to generate structure arcs, default block
tonnage)
6
0.0
54.0
(slope bearing angle, pit slope)

12
(decimal places to write: block ton, total ton, revenue factor, currency total, currencycharacter)
13
1.000
1.000
1.800
(general block tonnage, dilution factor, [recovery, the selling cost ratio; not used,] air flag
A=consider air blocks in optimization(1) or do not (2), air flag B=air blocks not included
in the result file (1) or air blocks within the ultimate pit are included (2)-Air flag A must
be 1, or all air blocks in the model file are included (3), reference mining cost, ore
selection by cutoff (1) or by cash flow (2))
14
0.1657506
(revenue factor as single number or range start-step size-end)
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GOLD
Fall 2014
(element type, position in the file, decimal places for gold in the block: total unit of
element, grades and cut-offs for this element.
20
GOLD
0 19.2900
(element, selling cost/unit, price/unit)

21
OXOR
1.000
1.000
(rock type, mining CAF, rehabilitation cost/ton, processing throughput factorspeed of

processor for a particular rock type)
25
MILL OXOR
8.195
(processing method, rock type, processing cost/ton)

26
GOLD
0.900
0.300
(element type, cutoff controlled (C) or not controlled (N), processing cost/unit, process
recovery fraction, recovery threshold, minimum and maximum grade).
4. Task Instructions
The computer session of this first part focuses on the basics of using the Whittle software.
This is only useful to those who have not used Whittle previously. This section covers
importing data into Whittle, generating pit shells and ultimate pit limits, designing
pushbacks from pit shells and optimization with the Milawa-NPV option. Some of the
traditional sensitivity analysis, such as varying commodity price and processing capacity
are also included in the notes, but is not necessary for this assignment. You are, however,
encouraged to explore these features if desired.
The data set used in this assignment is generated from an estimation method (ordinary
kriging). The estimated orebody model will be used as input and the resulting schedules
and pushbacks obtained in the first part are referred to as the base case during analysis
performed in subsequent assignments.
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1 Import Deposit Data in to Whittle

a. Make a new directory in your personal network drive (P:\ drive) called Project
Part 1.
b. Copy the files: parfile.par and kriging.mod from the folder provided into the
Project Part 1 directory you just created.
c. Open Whittle and import parfile.par and kriging.mod files as follows:
d. Click on create a new project and press OK.
e. Type project name: Project1, select the project directory by clicking on the
directory icon on the right side - P:\Project1\. Whittle should automatically
create a working directory - P:\Project1\working_Project1. Click on next,
for import type, choose Whittle block model. Browse the folder you created
to find kriging.mod as the model file to import, and parfile.par as the
parameter file to import. Then, click on finish and yes to confirm. If there are
any additional windows that appear asking for parameters, simply keep
selecting Next or Finish until they go away.
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f. Check the parameters loaded and run the program by clicking on the third man
icon
. A green check mark should appear beside New Block Model.
g. Under New Block Model, select the Description tab and change the block
models description from New Block Model to Kriged Model.
h. Under the Formats tab, set the Units for Element GOLD to gram. Not
setting the correct units in Whittle can lead to misleading results.
i. Press the Accept button to accept the changes.
j. Now, click on each of the tabs and check what information is provided.
k. When finished, select the Check Data button to ensure that all data has been
correctly entered.
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2 Generate Ultimate Pit Limits

a. Click on New Slope Set on the left and description tab on the right. Type
Kriging Slope Set for the description and click on Accept keeping all the
values as default. Click on Profile tab and check the parameters to ensure that
the slope angles are correct, as per the assignment requirements (Section 2).
b. Click on New Pit Shells on the left and description tab on the right. Type
Kriging Pit Shells for the description. All of the parameters for this node
should have been read from the parameter file but you should verify them all.
Once again, it is important to be mindful of your units (% recovery, grades
expressed as decimals, units for selling on market, etc.) When finished, press
Accept.
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c. Right-click on New Schedule Graph on the left side and choose Cut Branch
from the menu. Repeat for the Pit by Pit Graph node.
d. Click on description tab of the New Operational Scenario node and type
Operational Scenario-1. Click on time cost tab and change the discount
rate. Then, Click on the limits tab on the right side and change the value of
the extraction and processing limits. Additionally, ensure that the units for
Element limits is set to grams. Then, click on accept.
e. Add Pit by Pit Graph: Right click on Operational Scenario-1 and add Pit by
Pit Graph. Click on description tab and type Pit by Pit Graph-1. On
schedule tab, ensure that fixed lead is selected with 0 value. In the
Definition tab, delete all the lines below tonnage of waste rock. Then add a
new value to be displayed by clicking in add select Output on the left and
select Undiscounted revenue and cash flow on the right, and choose Open Pit
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Value. In order to generate various graphs (as outlined in the assignment

deliverables), you will need to repeat this step and select the correct properties
to save. You will likely need to explore the various options to be able to get the
correct graphs. Do not hesitate to include a new graph not outlined in the
assignment deliverables if you believe it helps you justify your points in your
reports discussion. Click on add to selection list and best case, click on OK.
Then, click on OK and accept it by clicking accept in the general window.
Then, run the program by clicking the running man icon.
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f. Generating the pit list: Right click on the Kriging Pit Shells and select OtherExport Pit List. Select the directory you created and change the name to
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kriga.pil, click on run. Click on OK for the message. You will need these
pit shells for future assignments.
g. Finding the optimal pit: Click on Pit by Pit Graph-1. Click on output tab
on the right side. It shows the best, specified and worst case scenarios. The
optimum pit can be found from there (checking in the discounted cash flow it
may be seen which pit shell has the highest value and therefore may be chosen
as the ultimate pit).
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h. Click on the Graph tab and press zoom button. Click on the preferences. Type
DCF on the Title of Y-Axis. Select only Open Pit Value and unselect the
other options. Click on the 2nd Y-Axis preference tab and unselect Use multiple
Y-Axis because you have chosen only one display (there is no need to display
the 2nd axis). Click on Style preferences and select Open pit value for the
best case. Change the Style to Bar, and Colour to red. Click on Graph tab to
see the modified plot. Repeat these steps to generate your graphs required for
the assignment deliverables. Be sure to comment on your results.
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3 Generating Pushbacks from Pit Shells

a. We will first create pushbacks using the automatic pushback selection tool.
Right-click on Pit by Pit Graph-1, and select Copy Node. Right-click on
Operational Scenario-1 and select Paste. Change the name of the node
(Description) and re-name it to Pit by Pit Graph- # PB where # is the
number of pushbacks you wish to test. Under the Schedule tab, and under
Specified case pushback definitions, select Auto and enter the number of
pushbacks you would like in your design. Select the Definition tab, and press
Edit. You can now enter the final ultimate pit shell to be considered (the limit
of mining); enter the ultimate pit shell number defined in Step 2 (g,h) in the
End textbox. You will not need to worry about the graphs in this step, as they
will be generated in more detail in the following step. Press the running man
icon to run the pushback designs. After the algorithm has finished running,
under the Schedule tab, you will see numbers listed in order beside
Pushbacks used for last run. These tell you the optimal pit shell combinations
that Whittle has chosen, given the number of pushbacks you have selected. You
will need to write down these numbers, as they will be required in the
following step (Step 3 b). Repeat this step for various numbers of pushbacks by
copying the node and pasting under Operational Scenario-1, and changing the
number of pushbacks.
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b. Adding Mining Width (combine pit shells to pushbacks): Right-click on

Kriging Pit Shells select Add and Mining Width, then, click on the
Description tab and type Kriging Mining Width - # Pushbacks (where # is
the number of pushbacks you want to consider). Click on the Definition tab
and type in the desired mining width (justify your parameters in your report). If
you are unsure of any of the parameters in this menu, please refer to the help file
in Whittle. Then, in Pushback definition, click on edit pushbacks and type in
the desired pit shells numbers to be considered as pushbacks. These were made
available to you in Step 3 (a) under Pushbacks used for last run. Run the
program to combine pit shells to pushbacks. You will need to repeat this step for
each pushback configuration you wish to test (# of pushbacks in design). It is
recommended that you save these as new scenarios
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c. Right click on your pushback scenario created in the previous step (Kriging
Mining Width - # Pushbacks), and select Add then New Operational
Scenario. Whittle should add the correct parameters, however if they are
incorrect, be sure to put in the correct parameters (Discount rate and Processing
limit), as per Step 2 (d) . Right click on your new operational select and select
Add then Pit by Pit Graph. Under the Schedule tab, ensure that
Specified Case Pushback Definitions is set to Manual, and you will need to
add your pushbacks. Press the Add button, and then enter your pushbacks in
increasing order (e.g. if you have 4 pushbacks, you would enter 1 2 3 4). Press
OK. Under the Definition tab, ensure that Whittle will generate the correct
graphs that you require. When ready, press the running man button. Under the
Graphs tab, you should now be able to see your graphs for the pushbacks (i.e.
not pit shells, as shown in the previous step). You will need to re-do this
analysis according to the various # of pushback scenarios you have chosen.
Compare what happens in pushback tonnages, ore tonnages, etc. to justify your
decision on number of pushbacks in your design before going on to the next
step.
d. Generating Pit list Krigb.pil: Right click on Kriging Mining Width, toolsexporting pit-list- select the working directory and change the name to krigb.pil,
export it. Here, this pit list contains block coordinates and the number
representing the pushbacks. You will need to do this for which ever design (# of
pushbacks) you deem best. The output file is required for the next part of the
project.
4 Optimization with Milawa Algorithm
a. New Schedule Graph: Create a production schedule by right clicking on the new
operational scenario (whichever was deemed optimal from the previous step),
selecting Add then Schedule Graph. In the Description tab, type Kriging
Schedule Milawa NPV. In the Specified Case Scheduling Algorithm
section of the Schedule tab, select Milawa NPV. Add Manual pushbacks
by clicking add on the right side (Add as many pits as needed e.g. if you have
4 pushbacks, you would enter 1 2 3 4). In the Definition tab, delete all the
lines below Discounted open pit value and click on add. Then, click on
output on the left, and on the right choose element and grade. Choose Qty
of <element> output from <method> (<method><element> /UO*) to have
quantity of gold in the output file. Click on add to selection, choose GOLD,
from MILL for specified case, and OK. Click accept. Feel free to add
whatever graphs necessary to justify your decisions in your reports discussion.
Then, run the program by clicking on 2nd running man. Repeat this step for
Milawa Balanced. Discuss the differences between the output schedules,
which one you think is more effective, etc.
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5 Exporting the Results to an Excel Worksheet

a. Right-click on the menu-button on the optimal pushback design you have
chosen on the left side. Choose Options then Export Files options. See that
the directory file will be created (directory can be changed by clicking at the
end of directory name box). Click on the square beside Spreadsheet File to
put a check-sign and type the name as krigpb.csv and Ok .
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MIME 413 Strategic Mine Planning with Uncertainty

MIME 513 Mine Planning Optimization under Uncertainty

Class Project Part 1

MIME 413 Strategic Mine Planning with Uncertainty

Figure 1. Pit outline obtained from a single optimization.

MIME 413 Strategic Mine Planning with Uncertainty

Figure 2. Pit outlines obtained from two optimizations.

The Whittle Pit Shells node (Optimization program, FXOP)

MIME 413 Strategic Mine Planning with Uncertainty

Figure 3. Schematic of nested pits.

MIME 413 Strategic Mine Planning with Uncertainty

2. Project (Part 1) Task & Deliverables

Processing cost Fresh Ore

Processing cost Oxide Ore

Recovery Fresh Ore

Recovery Oxide Ore

Discount rate per period

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

Step 1: Defining the ultimate pit limit

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

Figure 4. Example of a mod file when opened in a text editor.

MIME 413 Strategic Mine Planning with Uncertainty

(block dimensions along x, y and z directions and the origin of model)

(number of blocks along x, y and z directions)

(sub-region block limits)

(slope bearing angle, pit slope)

(revenue factor as single number or range start-step size-end)

MIME 413 Strategic Mine Planning with Uncertainty

(element, selling cost/unit, price/unit)

(rock type, mining CAF, rehabilitation cost/ton, processing throughput factorspeed of

(processing method, rock type, processing cost/ton)

MIME 413 Strategic Mine Planning with Uncertainty

1 Import Deposit Data in to Whittle

MIME 413 Strategic Mine Planning with Uncertainty

. A green check mark should appear beside New Block Model.

MIME 413 Strategic Mine Planning with Uncertainty

2 Generate Ultimate Pit Limits

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

Value. In order to generate various graphs (as outlined in the assignment

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

3 Generating Pushbacks from Pit Shells

MIME 413 Strategic Mine Planning with Uncertainty

b. Adding Mining Width (combine pit shells to pushbacks): Right-click on

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

MIME 413 Strategic Mine Planning with Uncertainty

5 Exporting the Results to an Excel Worksheet

MIME 413 Strategic Mine Planning with Uncertainty

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