Maintaining and Improving the Economics of Open Pit Mining

Maintaining and improving the economics of open pit mining in the future requires understanding of the characteristics of open pit mining that are different to other mining or business activities, designing mines in the first place to be less susceptible to changes in these important characteristics, and adopting strategies which yield reliable returns despite unforeseen change. Planning and production personnel require guidelines and performance standards that are based on sound economics not solely on production criteria. The guidelines adopted for long-term implementation must assume a declining price for mineral products along with declining real costs, with research efforts directed at development of both evolutionary and revolutionary ideas aimed at implementation. Decision-making must focus on risk and probability criteria rather than just simple return-on-investment criteria, and the approach for management of personnel must support the higher level of communication essential for fast decision-making in the new environment of continual change.