Quantified Value-created Process (QVP) – A value-based process for mine design and operating decisions

This paper introduces the Quantified Value-created Process (QVP), a decision-making process for use in mine design and operation. The implementation of the QVP is founded on a ten-step rock engineering design process and a ten-step strategic planning process. The potential of this approach is demonstrated by examples of value created as a result of good research, design, and planning. The QVP is divided into two parts, namely, a ‘planning the process’ section and an ‘implementing the process’ section, and can be considered to be an extension of the risk approach. All costs, direct and indirect, associated with a significant mining decision (design, operational, investment) must be quantified in advance of committing to that decision, to determine the value that will be created in the short, medium, and long terms. Ethical values, associated with health, safety, the environment, public perception, and social aspects, may be difficult to quantify in economic terms, but must nevertheless also be considered. In contrast with a traditional risk approach, the QVP will identify the upside, and allow executives to make more informed strategic decisions. In this context it is essential to actively engage upper management in the decision process.