NPV Scheduler

Information Sheet (1.1 MB) - English
Information Sheet (1.2 MB) - Spanish

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Frequently Asked Questions about Strategic Open Pit Planning

General
What is the difference between MaxiPit and NPV Scheduler? MaxiPit produces the ultimate pit, pit phases and optimal extraction sequence.

NPV Scheduler does everything MaxiPit does but then takes the user on to pushback design and optimizing the production schedules, or in other words, NPV Scheduler finds both the ultimate pit and the optimal pit.
What does MineFlow Optimizer do? It optimizes cut-off grades over the life of the mine. This can make a significant difference to the NPV of the operation.
Can I run MineFlow Optimizer on its own? No. It is integrated within the NPV Scheduler+MFO product. This ensures that your cut-off grade optimization is an integral part of the Scheduling and Optimization. This is a unique feature of NPV Scheduler+MFO.
Compatibility

Which computer operating systems are supported? Microsoft Windows 98. ME, 2000 and XP.
Support  
What training do I need to start using the program? MaxiPit, NPV Scheduler NPV Scheduler+ and NPV Scheduler+MFO come supplied with a comprehensive set of introductory and advanced tutorials which take you step-by-step through all the important procedures needed to complete an optimization. The user interface is designed for ease of use, no complex parameter files to edit, just click the options you want on the dialogs and run. The programs also has a powerful set of contouring and charting tools for easy viewing and presentation of your optimization settings and results.
How frequently does the program get updated and at what cost? Major upgrades are delivered regularly. Upgrades normally attract an upgrade fee - the scale of the fee depends on the content of the upgrade. Clients with NPV Scheduler maintenance contracts receive free upgrades.
Licensing

What discounts are offered for multiple license purchases? Multi license packs (MLP) offer significant discounts for bulk purchases. Licenses can be purchased in quantities of 3 or more. Contact your nearest Datamine office for details.
Can I try before I buy? Easy. Just download MaxiPit or NPV Scheduler, NPV Scheduler+ or NPV Scheduler+MFO and the Data Source Drivers and follow the tutorials. In Demo Mode, the programs are fully functioned but can only import data files that have been specially branded by us.
I already have NPV Scheduler v1.6 installed. Can I try MFO with this version? No. MFO is an integral part of NPV Scheduler+MFO. But you can download NPV Scheduler+MFO for a free trial.

v1.6 and NPV Scheduler+MFO can be installed and run independently on the same computer.

What deals are offered for universities? Significant educational discounts are offered on all Datamine products. But before you rush out and buy NPV Scheduler, you should really consider structuring your course work around a standard set of branded data files. You can use our tutorials and sample data, or you can ask us to brand a set for you. Consider the advantages: all students can be safely supplied with their own copies of NPV Scheduler (unregistered, running in Demo Mode), you pay nothing, and, the university is protected from any potential liability over copyright infringements.
Reliability  
Who is the program authored by? Dr Bolek Tolwinski, based in Colorado, USA, is an eminent mathematician in the field of optimization techniques.
How reliable is the ultimate pit generated by MaxiPit? An independent firm of international mining consultants was commissioned to compare the ultimate pit generated by MaxiPit (and hence NPV Scheduler) against the ultimate pit generated by its most expensive competitor, Whittle Four-D. You can download the consultant's report from the product page to get all the details. To quote from the report...

"The results of the comparisons show no significant difference between the optimum pits generated by Maxipit or Whittle. The differences that do exist in product tonnage and metal are negligible, the higher differences in the total pit volume is a reflection of slope modeling accuracy and is to be expected."

And to quote from an in-house evaluation by CVRD, the largest iron ore mining company in Brazil...

"Comparing the results of MaxiPit and W4D with exactly the same slope sub-regions, there were not significant differences in the surface topography of the ultimate pits generated."

Who is using MaxiPit and NPV Scheduler? Current users include:
Codelco, Chile (copper)
De Beers, South Africa (diamonds)
Placer Dome, Canada (gold)
Miller Mining, UK (coal)
Ultrafertil, Brazil (phosphate)
Normandy-LaSource, France (gold)
MBR, Brazil (iron ore)
CSN, Brazil (iron ore)
Knight Piesold, Argentina (borax)
Millennium, Brazil (mineral sands)
Ashanti Goldfields, Ghana (gold)
Polymetal, Russia (gold)
Sishen, South Africa (iron ore)
Rio Tinto, UK (various)
Orapa Mine, Botswana (diamonds)
Amplats, South Africa (platinum)
Placer Pacific, Australia (gold)
Revisions

What's different between the various versions of NPV Scheduler Version 3.2 delivers significant new functionality including improvements and additions to the parameters in the Economic Model, new options added to the Ultimate Pit Shell Generation and additional tools for the analysis and display of results.

Please contact your nearest Datamine office for details of the latest releases.

Terminology

What is the difference between a phase, a pushback and a schedule? A phase (nested pit) is a Lerchs Grossman ultimate pit obtained for specific block economic values. The only criterion used to obtain a phase is the maximization of cash flow.

A pushback is a pit that in addition to maximizing the cash flow, also satisfies a number of practical mining requirements including minimum size and access space. Unlike a phase, a pushback always consist of spatially connected blocks.

A schedule is a sequence of pits (equivalently, blocks) that meet user defined targets and thus gives the best picture of optimal ways of developing the mine.
What is the difference between an ultimate pit and an optimal pit? The ultimate pit gives the highest possible undiscounted cash flow without considering the practicalities of access or scheduling targets. The optimal pit gives the highest possible net present value taking into account all operational design constraints. The optimal pit always lies inside the ultimate pit, and only in the rarest of cases do these two surfaces coincide. The plain truth is that if you are mining to the limits of the ultimate pit, you are wasting a lot of time and money.
Competition

Other pit optimization programs create pushbacks and schedules. Why should I buy NPV Scheduler? NPV Scheduler provides you with tools to achieve the following tasks:
  1. Design or import practical pushbacks. There are good push-back design features within NPV Scheduler, and realistic design constraints can be imposed. NPV Scheduler does not use ‘phases’ from optimization as the start point for push-back design.
  2. Consider alternative pushback sequences.
  3. Obtain realistic mining schedules that take into account any number of crucial targets like ore production rate, stripping ratios, cash flows, blending, contamination control, etc.
  4. Determine realistic NPV estimates that can be very different from the very tentative figures produced by other products.

By ‘Scheduling’ we do not mean ‘sequencing’ - which is exactly what MaxiPit does. Scheduling starts from a practical set of pushback designs, which are then scheduled for Optimum NPV. Beware of the expression "sub-optimal maxima": either the schedule is optimized or it isn't - its a bit like calling something "almost unique".

A further enormous advantage of NPV Scheduler v2 is that it handles stockpiles, both building and reclaiming. No other product does this.

Doesn't NPV Scheduler compete with DATAMINE's own scheduling and blending modules? No. The two programs complement each other. NPV Scheduler is a long term planning tool which solves the problem of how to sequence the extraction of blocks to meet targets over the life of the mine and deliver the optimal NPV. DATAMINE's ACHIEVE product is a short term planning tool which solves the problem of which of the available blocks should be mined in any given period to meet the current period target. By using ACHIEVE on its own, you will be able to meet your period to period targets, but without NPVS you will probably reach the point where there is insufficient ore of a particular type to continue blending at the required ratios - short term solutions can create long term headaches.

ACHIEVE uses a Linear Programming technique which is well suited to the task of selecting the required mix from a limited number of available blocks or faces. NPV Scheduler on the other hand uses a Dynamic Programming technique which is ideally suited to dealing with sequencing a very large number of blocks, the order of extraction of which is controlled by inter-block dependencies.
Your competitors' products frequently cost more than NPV Scheduler. What do they do that NPV Scheduler doesn't? In fact it is more a matter of what NPV Scheduler can do that the conventional optimizers cannot. All products effectively find the same ultimate pit under the same set of conditions and should be able to handle multiple ore types with multiple processing methods and multiple products or grades. The differences start to appear in the pushback and scheduling functions. You need to take a long hard look at just how useful the pushback and scheduling functions in other packages really are.

Firstly, pushbacks that are created by combining a series of phases are of questionable value as this almost certainly guarantees the resulting schedules will be non-optimal. Some packages use phases to serve as tentative pushbacks, set the mining rate, and then the phases are assumed to be mined bench by bench. There are several problems with this solution:
  1. The phases may have little to do with the practical pushbacks. The pit sizes may vary wildly, especially when there is a gap problem. A phase may consist of several disjoint holes in the ground. There is no allowance for access. There is no possibility to limit early pushbacks to one area of the mine to avoid excessive infrastructure costs. This problem of the use of phases as a starting point is not eliminated even if you include controls on such aspects as minimum and maximum leads, maximum advance rate etc. NPV Scheduler itself has many practical controls on pushback generation. The important point is where you start from – and NPV Scheduler starts from realistic pushbacks.
  2. The assumption that you mine one phase entirely before starting the next one is very unrealistic. For example, to keep the mill supplied with ore at all times you usually have to start prestripping the next phase way before you finished mining the previous one. This may change NPV a lot as you are moving waste stripping ahead in time.

Secondly, automating pushback generation is great but it needs to be coupled with interactive user controls so the user is able to satisfy external design criteria. In NPV Scheduler, the user retains full control over the position, extent and depth of every pushback.

Finally, "scheduling" in most other products is simplistic and does not meet the real life scheduling needs of an operating mine. Pushbacks are always extracted, to some degree, in parallel, if only to begin stripping the next pushback while the ore mining is concluded in the previous one. Even the simplest of mining operations requires a multi-target approach on scheduling. NPV Scheduler not only ensures that the pushbacks and schedules are practical, but also delivers the optimal solution for each set of user imposed conditions. If a non-optimal path is taken in extracting the pit (as occurs when phases are used to build pushbacks), the NPV will peak and then decrease before the ultimate pit is reached. In other words, the mine life is shortened. Only NPV Scheduler can obtain the optimal schedule and so maximize the NPV, cashflow and life of the mine.

The full incorporation of stockpiles and the integration of cut-off grade optimization (by MFO) are unique features of NPVS and the Mine Flow Optimizer together.

Importing models

What file formats are required for importing an ore reserve block model? ASCII text and SQL tables can be imported in two general formats. Text files can be either fixed column width or character delimited. Standard Datamine, Surpac, Vulcan, Micromine and Medsystem block models are also supported.
The grades in my block model are in % and ppm. How does the program know how to deal with this? Percent grades result in products expressed in 0.01 of the rock mass unit. For example, if the rock unit is metric tonnes, 1% is equivalent to 10kg/tonne and so 1 unit of product mass equals 10kg. Similarly, 1 ppm is equivalent to 1gram/tonne.
Economic model

Can mining and processing costs be varied for different ore or rock types? Yes, the reference mining and processing costs may be adjusted by specifying different cost adjustment factors for each rock type.
Can I predefine a profit model of my own and by-pass the calculation of block values? Yes, simply select either the cost or profit model option on the initialization dialog.
Is it possible to vary the mining cost with depth or by other user defined criteria? Yes, positional mining and processing cost adjustment factors can be read from the block model. These may be varied with depth, by rock type, by geotechnical quality, or in any way the user wishes.
Can I vary mining and processing costs over the life of the mine? Yes, with NPV Scheduler V2 you can vary these and any other financial parameters (such as prices and discount rates) over time.
What about multi-element ores? Yes, any number of grades or values may be specified in the input block model. Block revenues are derived from the accumulated value of all elements with prices set individually for each element. A variety of cut-off grade methods are also provided to control the selection of ore blocks.
Can I specify multiple ore processing methods? Yes, any number of processing methods e.g. mill and leach, may be specified. The program calculates the cut-over grade for each method ensuring the block is allocated to the processing method which generates the highest possible cashflow.
Can the initialized block value model be exported so I can check the values before proceeding with the optimization? Yes, you can review the block values using the Contour Bench tool or export the model back to your mining package.
Ultimate pit

Which technique is used to find the ultimate pit shell? MaxiPit and NPV Scheduler are based on the Lerchs-Grossman pit optimization method. The numerical implementation differs from other pit optimizers, but the results are the same.
What does the optimal extraction sequence tell me? The pit optimization produces three valuable pieces of information about each block: (1) it determines whether the block is inside or outside the pit, (2) it determines if the block should be processed as ore, and by what processing method, or sent to the waste dump, and (3) it determines the block extraction sequence that generates the highest net present value for the pit. The latter is termed the optimal extraction sequence. Each block in the pit model is numbered, forming the most detailed possible set of nested pits. The sequence number is an extremely useful design guide when manual pit designs are being prepared.
When NPV is charted against phase number, I get negative NPV increments in the last few phases. Why? This is perfectly normal. The ultimate pit maximizes the undiscounted cash flow, not NPV. The NPV values for phases represent the worst case scenario where the entire phase is mined bench by bench. The optimum NPV is provided by following the extraction sequence. Extracting the pit according to the phases will almost certainly be non-optimal. The most reliable NPV estimates are produced by NPV Scheduler and only these should be used to predict the project’s profitability.
Can I apply restrictions to the lateral and vertical extents of the pit? Yes, and as many as you wish. The ultimate pit extents may be controlled inside or outside a series of depth limited polygons created interactively by the user.
What about limiting the pit depth for underground mining? Yes, the underground mining and processing costs can be specified for each rock type and the program will automatically determine the economic limit to open pit mining.
Once the pit surface has been generated, what can I do with it? You can...
  • report the contents and value of the pit,
  • contour any block attribute by bench,
  • contour the ultimate pit surface and phase surfaces,
  • chart block attributes against extraction sequence or phases
  • export the pit model
  • export the pit surface
Slope modeling

How difficult is it to define complex slope regions? Any complex model takes time to build, but MaxiPit and NPV Scheduler make this task as easy and as visual as possible for the user. But don't take our word for it, read the evaluation reports on the product page...quoting from the independent consultant's report:

"The linking of blocks to model slopes is the core of any optimization package. On the basis of the limited analysis we have performed Maxipit models slopes at least as well as Whittle. The methodology for defining slopes in Maxipit is more flexible and more easily visually checked than that in Whittle. Maxipit has a capability to read the slope specifications from a Whittle parameter file, however this is a compromise which does not give as good a result as can be achieved by specifying the slopes using Maxipit’s parameter screens."

Can I import DTM surface models from other programs to define slope regions? Yes, there are data source drivers for a wide range of DTM data sources and file formats.
Pushbacks

What is the logic behind pushback generation? The logic is as follows: Obtain a progression of pits that when mined bench by bench will maximize the NPV subject to the following practical requirements:
  1. Each pit, with the possible exception of the last one, is not smaller than a specified size (it may be larger).
  2. Each pit contains spatially connected blocks; that is, it cannot consist of disjoint holes in the ground.
  3. An access to each pit must be guaranteed. This is defined as follows. A given pit in a sequence of push-backs can be an extension of an earlier pit, or it can be located in a different sector of the mine sharing no common areas with the earlier pits. If the pit is an extension of an earlier one, then the boundaries of the two pits must coincide wherever they are identical with the final pit limits; anywhere else, the boundaries must be separated by a distance that is not less than the value of the Access Space Parameter.

The Pushback Generator takes the blocks from the extraction sequence and builds spatially connected pits until one of them reaches the minimum required size. Next, the pit is checked for NPV optimality and access requirement. This may result in adding additional blocks to the pit. For example, ore blocks that are accessible for mining may be added because otherwise they would be mined much later thus decreasing the NPV. The access space requirement may increase the pit size considerably. Thus, the pushbacks are unequal in size to improve NPV and ensure access. If the sizes vary too much, they can be adjusted using the Adjust tool.

Can I still control the sequence of mining or is that completely automated? Automated pushback generation is great but it needs to be coupled with interactive user controls so the user is able to satisfy external design criteria. In NPV Scheduler, the user retains full control over the position, extent and depth of every pushback.
Can I import my own ultimate pit surface instead of using the one created by the program? Yes, any number of user defined mining surfaces can be read from the imported block model, or by importing the surfaces as DTMs using the data source drivers.
Can I create pushbacks and schedules from multiple pits? How can I control the sequence in which the individual pits and their pushbacks are extracted in the schedule? You can import multiple pits, use these pits to create an extraction sequence, and use the sequence to generate pushbacks. The scheduler extracts the pushbacks in the order defined by Pushback Generator. You can, however, change the pushback order by using the Adjust tool and running Pushback Generator again.
Scheduling

How are scheduling targets defined and how many targets can be used at the same time? Targets may be defined by either a Rate or Ratio formula:

where x, y, z, … are attributes and A, B, C, … are constants. With these formulae it is possible to construct targets for stripping ratio, ore blending, machine hours, consumptions, mill feed grades, tonnes produced, waste movement, cashflow and so on.

Targets are defined with a target value and an upper and lower bound which may be varied by period through the schedule.
I use product qualities e.g. A, B and C, not grade, in my block model. Can I use the scheduler to blend these at specified ratios? Yes, you need to import A, B, and C as attributes. Probably, you will also need to import externally calculated block values because the NPV Scheduler (Maxipit) block value calculations are based on grades or product mass.
Can I specify maximum bench lags or elevation differences between mining faces? Yes.
What if the scheduler can't satisfy the targets? Does the program tell me where the bottle-necks are? The scheduler will progressively relax the constraints if it is unable to satisfy all the targets in all periods. If any targets are relaxed, the period in which they were relaxed is reported. In this way the scheduler is normally able to produce an answer, it is then up to the user to determine how useful the results are.
After generating a multi-target schedule, there are multiple spreadsheets created. Which one am I supposed to use? Which is the optimal schedule? All schedules are optimal with respect to different criteria. NPV-Sch maximizes NPV. The remaining schedules best track the ideal values of specific target variables. For more details see the NPV Scheduler Tutorial.
Can I import my own pit shells for scheduling instead of using the pushbacks generated by the program? Yes, any number of user defined mining surfaces can be read from the imported block model, or as DTM surfaces from your CAD or mine design program.
Stockpiles

We don't use stockpiles. What use is this to me? The Stockpile Optimization component then gives us the ability to vary economic parameters, such as product prices, mining costs, processing costs and discount rates, over time - even if no actual stockpiles are being used - and all still within the overall objective of NPV maximization.
What does optimizing stockpiles really mean? Stockpiling refines the results of scheduling by allowing for time dependent economic parameters (prices and costs) and determines an optimal long-term scheduling strategy. The stockpiling algorithm is based on linear programming and allows for a wide range of constraints, including blending.
COG optimization

How do I run the MineFlow Optimizer? MFO is fully integrated with NPV Scheduler – which means that when you instal MFO into NPV Scheduler you get extra tabs on some of the dialogs. It is this full integration which ensures that your cut-off grade optimization is an integral part of the Scheduling and Optimization. This is a unique feature of MFO.
Why is integrating NPVS and MFO so important? No file transfer so no messy reading and writing files, and no chance for the MFO results to get out of step with the NPV results. A second advantage is in ease of use. You just get new options in your program. But the biggest reason for the integration is that it is impossible to isolate a solution of the problem of cut-off grade optimization from a that of a long term schedule built according to long term objectives, and integration ensures that the two are always dealt with simultaneously.