Long Range Planning at Chuquicamata Mine

INTRODUCTION Chuquicamata mine is a large copper open pit located in the north of Chile. It has been in production for more than 80 years and now is in the later stages of its life with declining grades and increasing haul distances. As any old mine with long established organizations and procedures, it has faced one of the most difficult managerial problems: to conduct changes. Since 1994, the new management team has been devoted to a modernization pro- gram focused mainly in restructuring business operations. downsizing the labor force and introducing a mine planning pro- cess consistent with the company's goal. The explicit identification of the latter issue has been made because of the management’s conviction about the importance of it in the profitability of the business. The mine planning process at Chuquicamata mine has evolved from an old manual technique towards a modern computarized system, however the fundamental aspects and the procedures involved in this process have been the same. For in- stance, the cutoff grades policy has not changed during the last said 20 years, regardless of the changes to grade distribution, commodity prices, plant capacities, etc. To review and rethink this process, the strategy was to work with a small group of inside engineers and the management in order to interact with several mining consulting firms. The idea was to open a discussion about the fundamental principles used in the mine planning activities and, at the same time, to explore new ideas to improve the operating practices that have been followed for a long time. Thus, the goal of this paper is to present the mine planning approach that was the result of this work and the improvements that were obtained. THE CHUQUICAMATA MINE The Chuquicamata division is one of the five operations of Codelco and is currently devoted to operating the Chuquicamata mine; a copper open pit, concentrator, smelting and refining complex. It also operates Mina Sur which consists of an open pit mine, a leaching-solvent extraction and electrowinning process. There is also a dump leaching and a Sx-Ew plant for treating the low grade suifide ore (under the cutoff grade) from the Chuquicamata mine. Prior to reviewing the mine planning process, capacities for the Chuquicamata sulfide line were 640 000 tpd of run of mine material, 160 000 tpd of ore and 4 200 tpd of concentrate. This meant a total annual movement of around 230 Mt in the mine and a treatment of 57 Mt in the concentrator with a stripping ratio of approximately 3: 1. The old exploitation strategy consisted of an "open scheme", which means that all benches must have a berm with enough space to allow the traffic of large haulage trucks. This fact implied working with a great flexibility, but the consequences were flat slope angles. One of the reasons for using this operating practice in short term planning was that the grade consistency from the pit has always been a controversial variable. Schedules were designed to meet grade targets accurately and they were modified immediately when deviations become apparent. This reality led to working with a great deal of independent pushbacks and it required flexibility in the traffic system. The cutoff grade policy has been the same for a long time and the figure was 0.5 %CUT either for sulfide or oxide ore. This was the reason why a balance was produced between the mine and the concentrator. The mine is operated principally with benches of 26 m but in the upper part of the pit there are benches of 24 and 30 m. The main production equipment is shovels of 28 and 34 yd3 along with trucks of 200 and 240 st. Regarding the crushing facilities, there are two main systems located inside the pit and an old one in the periphery, close to a stockpile and near the concentrator. In the north part of the pit there is a crusher for waste material and in the north-east area is located the ore crusher facility. Both restrict a significant area of the pit and the mine sequence is considering to move the ore crusher again to the south-east sector where it used to be located. Relating to the waste crusher, the idea is to move it up to a bench near the surface in order to use the same conveyor belt and, at the same time, liberate an important sector. THE MINE PLANNING PROCESS The objective of the mine planning process is to develop a mine plan for the life of the deposit, in harmony and consistent with the company's goal. It includes the origin and destiny of tonnages and grades from the mine(s), along with the necessary resources to carry out this plan such as: fleet requirement, consumable goods, manpower, etc. From the financial point of view, it means to establish the cash flow for each time period of the mine life. That is. the revenue, capital investment and operating cost associated with each period of the plan. The fundamental principles involved in the mine planning pro- cess have been a controversial issue for a long time. One of the reasons for these divergent views could be produced by the difficulty of modeling a complete extraction policy for a geological re- source. This particular problem has to deal with several decision variables that are time dependent. So far, there is no mathematical formulation for managing such a problem, and the approach to solve it is based on a circular analysis combined with certain heuristic tools. So, a global model rather than a formula, requires a clear understanding of mine operations as well as economic theory and its application to a non-renewable resource. In order to manage this complex problem, the mine planning process can be conveniently split off in three stages which are conceptual, feasibility and operational planning. The characteristics of each stage are basically the timeliness in which they are developed and the kind and number of variables involved. Thus, conceptual planning is devoted to the definition of key variables like: the size of the operation, mining method, extraction se-