Underground Alternative Method

One of the most important decisions in mine development is the selection of the mining method.

Open pit or underground methods are selected depending on the shape of the deposit and its position with respect to the surface. Sometimes this decision is not clear or evident. In these cases, the common rule is to compare underground and open pit projects to choose which yields the maximum return. However, in some circumstances, the best alternative is to start the operation with an open pit until a point where mine operating costs make it more convenient (and profitable) to employ an underground method. In this case, the final pit limit is not directly related to commodity prices and its overall shape is a function of capital and operating costs associated with both methods.

In your application, you can choose to automatically assess the different block values arising from both above-ground and underground methods and establish the most appropriate ultimate pit considering an underground mine.

This article provides an in-depth look at the underground alternative calculation...

Defining Above-ground and Underground Processing Methods

When defining settings for the economic model, you can designate a processing method as either Above-Ground or Underground.

If a method is designated for an underground method, the ultimate pit calculation will, if enabled in the Pit Optimization Settings dialog, compare underground and open pit block values and generate an ultimate pit based on the difference between those values. Underground processing cost will generally be higher than an open pit method, so this enhanced calculation will determine the most cost-effective ultimate pit definition to encompass all economic model processing methods.

If you wish to consider an underground mining method as an alternative to open pit, you must designate at least one method for at least one rock type as [underground method] in Economic Model Settings, for example:

Once set, the following option becomes available in the Pit Optimization Settings dialog:

	Related Topics
	Underground Alternative Method in Depth Economic Model Essentials Pit Optimization Essentials