2. Production Planning in Metal Mines - Introduction

Metal production has traditionally been a cyclical industry. 1977 in the base metals industry has highlighted that fact with a steady decline in the market place for base metals. Corporate aggregate planning is based on good forecasting and when changing conditions make that forecasting inaccurate, alternate analysis of schedules must be accomplished quickly. The computer is the only medium powerful enough to answer management's questions within an acceptable time frame. Worldwide communications networks now make it possible for the many multinational mining companies to arrive at coordinated corporate production plans based on similar basic data from several producing divisions. The Ontario Div. of Inco Metals Co., a unit of Inco Ltd., encompassed during 1977 14 producing mines, 2 nonproducing mines, 1 nonproducing open pit, 5 flotation mills, I smelter, 2 nickel refineries, 1 copper refinery, and an iron ore recovery plant. Several new mines are under development. Mine production approximates 63 500 tpd (70,000 stpd) from some 1000 workplaces. The need for longrange mine planning and scheduling is obvious and until recently has been satisfied by manual methods. However, while manual methods are often quite practical for a small number of mines, or for mines with relatively short lives, or for mines with only one mining method, the situation in the Ontario Div. is too complex and long-term to allow effective, timely planning by such methods. In 1967, a year after the first computer was installed in the division, work was begun on the computerization of the more than 30,000 borehole logs kept in the mines exploration files with a view to speeding up the assessment of mineral resources. Also in 1967 one of the first substantial systems developed on the main business systems computer was the monthly scheduling of development and production for all mines. This system encompassed tons productions per workplace, feet development per workplace, auxiliary and service activities and the requisite labor for each of these. These two dates are mentioned to show that concurrently with the acquisition of computers in the division there was an early understanding of the importance of automating mine scheduling and planning and of the potential for effective and useful computerization of such activities. In 1970, a pilot program was developed in one of the mines containing a large number of workplaces (350) to schedule the production on a network basis. Varying degrees of interest were shown by the individual mine engineers based on the complexity of the production planning problem at each mine. In an evolutionary process, mines were added to the system as its value became obvious in terms of time saving, flexibility, and accuracy. In 1975, the central mine engineering department decided that the system should be extended to all mines so that a complete division-wide long-range scheduling system would be available upon which to base development and production planning. This system would use basic ore data, allow the addition of scheduling commands, and calculate a schedule for the life of the mine. Many reports could be produced for each mine and all-mine summaries would also be available. The significance of the system can be stated in one phrase-speed, accuracy, and flexibility. Whereas in the past a long-range all mines schedule might have been done once a year, taking from two to three months, now it can be done in a day. The chief mines engineer can incorporate changes in input data and external constraints and call for a "new look" at the long-range schedule to assist him and mines production management in their decision-making processes. Using previous manual methods this could not be done quickly enough to be useful.