Pit Optimization Settings: Time An explanation of fields and properties

Pit Optimization Settings: Time

To access this dialog:

• Using the Optimization control bar, select Ultimate Pit | Settings and select the Time tab.

In this dialog you define parameters needed for NPV evaluations.  For detailed explanation of the overall process, see Pit Optimization.  

Field Details:

Annual discounting: enter a percentage discount rate between 0 and 100.

Average ore output rate: enter the ore (raw material) tonnage the mine will produce per selected time period, usually a year (365 days). The Ultimate Pit Optimal Extraction Sequence (UP OES) is used to calculate the first n tonnes of ore (where n is specified using the tonnes field) and the net profit generated from this activity is discounted by the figure shown in the Annual Discounting field, above. The next n tonnes are further discounted as if they are mined in year 2, and so on. This can be expressed by the following formula for a 10% Annual discounting value:

Kth year NPV = Net value / (1+0.10)k

The rate is defined in terms of recovered and/or diluted ore option becomes available only when Mining dilution or Mining recovery are changed from their default values in the Economic Settings dialog.

	Related Topics
	Pit Optimization Essentials Pit Optimization Quick Start