What is Value Based Planning?
Value based planning is an approach to mine planning that integrates ESG, economic, grade, processing, downstream and physical factors into the very core of the mine planning process.
All of these parameters are calculated at the block level, which preserves the most amount of information and therefore enables decisions to be with the very best information available.
Our approach at Quantified Strategies calculates these values for every single combination of product//stream/value scenario, which is especially important when multiple processing streams and/or product outputs are available. Ore and waste material is not hard coded. Fixed cutoffs based on element grades are not pre-allocated. The value metrics are used to determine where the scheduler sends material to provide the highest possible value.
Example
Copper, gold, multi element deposits
How do you determine the higher value block between blocks with multi elements? Each block has different pricing, recovery, water, carbon, mill throughput rate, downstream processing costs, and other factors. Many operations continue to use simple cutoff criteria including grade, copper equivalent, NSR (Nett Smelter Return), however these measures do not consider all the factors necessary to deliver the highest overall value, including the environmental impact. Value based planning is the only way to generate the highest overall value.
Why would you do it that way?
More Value
In almost all cases, value based planning will add significant value to the deposit.
What makes value based planning difficult?
Large Models
Calculating the value/cost for every possible stream will typically generate hundreds or thousands of attributes for each block. Given that this is done for each block, and there are typically millions of blocks, these models become too large and cumbersome for all existing mine planning packages to handle effectively. We have developed specialised tooling that handles large data with ease.
Operational Implementation
Using a value based planning model can be difficult to implement on site as cutoff grades are not statically linked to grade or simple block factors. Site practitioners need to understand the value associated with a more complex operational model and understand why it is worthwhile to adopt. We generally provide the tools to site personnel so they are able to incorporate value based planning in their daily workflows.