A Management System for Mine Reconciliation

Mine reconciliation is the art and science of comparing predictions and real-world outcomes with the intent of revealing the true quality of performance of models, planning, mining, and mineral processing. When mine reconciliation is conducted in a systematic, transparent and sustainable way it can play a central role in the governance of Mineral Resource and Mineral Reserve (MRMR) estimation and reporting. The core processes of modelling, planning, mining, and processing need to be transparent to be able to demonstrate that MRMR are reliable predictors of mine performance and value. Transparency is also necessary for mine technical staff to generate meaningful analyses, conclusions, and business improvement actions that demonstrably maximise value for all stakeholders. Most mines have some form of mine reconciliation practice, however because there is no agreed industry standard, and because mine reconciliation is difficult for a variety of reasons, it is often unsustained and/or ineffective at delivering the required transparency of performance. To deliver true governance of MRMR and business value, mine reconciliation must be sustainable. There are two categories of issues that combine to make mine reconciliation extremely difficult to sustain, these are technical, and people related. Technical issues include defining standard terms, accurately tracking material flows, data availability/adequacy/quality, calculation of key performance indicators and tolerance limits, analysis, and interpretation of results, understanding limitations of modelling techniques, and defining appropriate actions that can deliver value. These technical challenges are non-trivial, however compounding these are a range of people issues that include personal agendas, scepticism, lack of knowledge and experience, poor teamwork, absent leadership, toxic workplace culture, staff turnover, ineffective communication, siloed organisational structure, and lack of deliberate change management. All these problems can be solved with clarity of purpose, definition of the process of mine reconciliation, discipline in following the process, appropriate resourcing, and commitment to success across the entire organisation. Outlined in this paper is a management system that delivers sustainable mine reconciliation by addressing both the technical and people issues described above. This approach can deliver significant value for a mine and adds a robust, defensible governance over MRMR estimation and reporting.