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Adaptation of an Open Pit Optimiser

for Underground Strategic Planning
B Roberts1 and M Bloss2

ABSTRACT
BHP Billiton Olympic Dam required a well-tested software product suitable for strategic
optimisation and scheduling of options for a potential underground mining project. The company
has a standard software package called Blasor® that is used for open pit optimisation of complex
deposits such as iron ore, copper-gold-uranium and silver-lead-zinc. It applies a mixed integer
programming formulation (MIP) to produce conceptual pushback designs and an optimised
pushback sequence. Schedules can then be run on the resulting mine designs. Existing pushback
designs can also be imported into the model and an optimum schedule generated. One of the key
advantages of Blasor is that multiple strategic mine schedules can be quickly generated according
to the various scenarios, options and constraints that are being investigated.
It was realised that Blasor, if carefully configured, could be adapted for use in underground
planning. The concept of using Blasor as an optimiser for underground strategic scenarios is to
represent the underground stope and development data in the form and structure of an open pit
mine. In simple terms, underground stoping areas are modelled in the form of pushbacks (phases)
with vertical walls. The phase dependency tools in Blasor are used to link mine blocks and their
access development drives. These underground phases are imported into the optimiser. Artificial
block models are constructed using stope design tonnage and grade data at various fixed cut-offs.
A variable cut-off grade model has also been developed using a method of parcels to represent
each cut-off grade increment.
So far, this approach has been successfully used to investigate the optimum stope design cut-
off for various strategic options, the economic potential of a series of mining and processing
configurations and to provide guidance on the optimum sequence for developing and mining the
various stoping blocks in the resource. Examination of the results has highlighted the most suitable
development paths for more detailed study.

INTRODUCTION
In modern mine planning systems it is now widespread
practice to apply some form of optimisation to the mine
extraction limits and production schedule. A number of
open pit optimisation software packages are commercially
available, such as Whittle (GEOVIA, 2014), Minemax
Planner (Minemax, 2014) and COMET (King, 2004;
Wooller, 2004) but the authors are aware of no comparable
underground product in common use. Underground
optimisation tools have been developed, examples being
the ‘hill of value’ system (Hall and Stewart, 2004), Snowden
Evaluator (Elkington, Durham and Myers, 2009) and LOBOS
(Smith, 2007) but they are propriety products operated by
consultants on the client’s behalf. Underground scheduling
packages can be purchased, such as Runge XPAC and
Geovia MineSched, but they are single-period rather than
multiperiod life-of-asset optimisers.
BHP Billiton Olympic Dam mines a very large and complex
orebody for copper, uranium, gold and silver. The asset is
conducting a study into a potential underground expansion
project and required a tool for strategic optimisation and
scheduling of various scenarios and options. With insufficient
time in the project timeline to investigate, test and acquire a
suitable purpose-built underground optimiser there was an
opportunity to apply an open pit software package. BHP
Billiton has a standard software package called Blasor®
(Stone et al, 2004) that is used for open pit optimisation. It
applies mixed integer programming to carry optimisation
of pit limits and pushbacks (also termed phases or stages).
The resulting conceptual mine designs are then applied to
generate optimised schedules. Existing pushback designs can
also be imported into the model. One of the key advantages of
Blasor is that multiple strategic mine schedules can be quickly
generated according to the various scenarios, options and
constraints that are being investigated. It was realised that
Blasor could be adapted for use in underground planning by
modelling the underground stope and development data in
the form and structure of an open pit mine. This idea could
be implemented immediately and, after experimentation with
two preliminary versions, a suitable system was developed.

1. MAusIMM(CP), Superintendent Mine Optimisation, Olympic Dam, BHP Billiton, Level 2, 55 Grenfell Street, Adelaide SA 5000. Email: brian.roberts2@bhpbilliton.com
2. MAusIMM(CP), Director Mining Studies and Technology, Olympic Dam, BHP Billiton, Level 2, 55 Grenfell Street, Adelaide SA 5000. Email: martyn.l.bloss@bhpbilliton.com

OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014 249
B ROBERTS AND M BLOSS
MODELLING OF THE UNDERGROUND
OPERATION
Mining block and stope modelling
The concept of using Blasor as an optimiser for underground
strategic scenarios is to represent the underground stope
and development data in the structure of an open pit mine.
In simple terms, underground mine areas are modelled
in the form of pit phases with vertical walls and the phase
dependency tools in Blasor are used to link mine blocks and
their access development drives.
Using the current mineable resource model, stope shapes
at six different cut-off grades are generated using the
Datamine Mineable Reserves Optimiser (MRO). This tool
generates an envelope around sets of blocks in the resource
model that correspond to the specified design COG. Stope
shapes are then automatically generated according to given
maximum and minimum dimensions. Each set of designs is
then classified into the three main mining areas. Areas are
further divided into separate ‘stope blocks’. Each stope block
is modelled as illustrated by Figure 1. Tonnage and grades
for each stope are represented by a cell in a artificial block
model. Data for each mine block is divided into grade ranges
according to the copper equivalent value for each stope and
these ranges are modelled in turn as separate ‘phases’ within
the Blasor model structure. Within each phase, stope blocks
are stacked vertically by order of copper equivalent grade,
highest to lowest. Block development is also represented by
Blasor phases.
Figure 1 shows how a ‘variable cut-off grade’ model is
structured. Each block (stope) is divided into a number
of tonnage and grade parcels. The first parcel represents
the tonnes and grade for the highest design cut-off grade,
(4.1 CuEq in Figure 1). The incremental tonnes and grade for
each reduction in design COG are represented by subsequent
parcels. The Blasor model chooses the COG at which each
FIG 1 – Blasor modelling of each mine block.
250 OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014
stope is mined by selecting the appropriate parcels to be
directed to the process stream. Other parcels are sent to the
waste stream at no mining cost, which represents that part of
the stope remaining in the ground. Mining costs include in-
stope development, ground support, raise bores, production
drilling and blasting, loading, haulage by truck and/or rail
and backfilling. For processed parcels the mining cost is
included in the ore processing cost.
Fixed COG Blasor models are also generated. These models
are similar to the variable COG model with the exception that
there is no parcelling. Note that fixed COG Blasor models may
include stockpiles but variable COG models cannot because
parcels not sent to the plant in a particular period could be
stockpiled and processed later. Coordinates in the artificial
block model approximate the spatial location of each mine
block. (See Figure 2, which also gives the phase number for
each set of stopes and development.)
Development and mining dependencies
Figure 2 shows the dependencies within each mining block.
Development phases are at a higher elevation than the stope
phases. To start mining a block the block access phase must
be mined out, followed by the internal block development
phase. Stope phases are all then available for mining.
Dependencies between mining blocks are modelled in a
similar way (Figure 2). For example, to start mining stopes in
H2, both development phases 1 and 2 must be mined. To start
mining in H3, the block access development for H2 (phase1)
must be mined, then the block access development for H3
(phase 10). After phase 10, internal development for H3 can
start (phase 11) and when this is complete the stope blocks
are available. The arrows indicate the dependencies between
mine blocks.
Development tonnages and sequence
Mine development tonnages, metres, rate and sequence are
supplied from development planning and scheduling that
 ADAPTATION OF AN OPEN PIT OPTIMISER FOR UNDERGROUND STRATEGIC PLANNING

FIG 2 – Blasor modelling of the underground mine.

has been carried out with Mine2–4D (MineRP, 2014). The
development layout is therefore predefined but the sequence
and timings can be determined by the optimisation model. If
required, the Blasor model can be used to impose constraints
on mine development by either annual metres or annual
tonnage.
Stoping rates
The structure of the Blasor UG model may allow the optimiser
to mine all the high-grade stopes first if no other constraints
were imposed. To make the scenario more realistic, maximum
mining limits are imposed on each mine block and each stope
4,000,000
phase within the blocks. These constraints are proportional to
the tonnage within each unit (Figure 3). This relationship has
been derived from schedules produced by an underground
version of the Runge XPAC product, which closely simulates
the way in which the stopes can actually be mined. For
example it takes into account the time lag between mining a
particular stope and being able to start the mining of adjacent
stopes. It also incorporates stope ramp-up and ramp-down
extraction rates. Figure 3 shows the chart for the average XPAC
mining rate. To test the effect of a higher ‘mining intensity’ a
maximum XPAC mining rate can be applied instead.

3,500,000
y = 0.0381x + 250000
Av Block Stoping rate Mtpa

3,000,000
R² = 0.9232

2,500,000

2,000,000

1,500,000

1,000,000

500,000

Stope Block Tonnage

FIG 3 – Relationship for stope mining constraints.

OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014 251
B ROBERTS AND M BLOSS
PROCESS
For any particular project study, a set process has been
established. Circumstances that initiate a new study include:
release of a new resource model, escalation of the project to a
new level, eg from project identification phase to prefeasibility
phase and availability of cost estimates at a higher level of
confidence.
For each cut-off grade the conceptual stope designs are
fixed, as Blasor cannot optimise the stope shapes. Artificial
block models for each fixed COG and a variable COG model
are then produced by means of the process described earlier.
Access development sequence, tonnages, metres and mining
rates are supplied by the underground mine planning team
and included in the block models. Maximum mining rates for
each stope block and phase are calculated using data from
existing XPAC schedules. Finally, financial data is assembled
(commodity process, metal recoveries, variable costs, fixed
costs, etc) and processed to create the optimiser economic
model. With all inputs gathered and processed into suitable
form, the Blasor underground optimisation model can be
built.
At this stage, the planning team will have drawn up a
matrix of scenarios, options and constraints that are to be
investigated. The full set of cases can easily total over one
hundred. Blasor ‘projects’ for each case are run with the
results being saved and recorded. Blasor output data in
the form of schedule physicals are entered into a valuation
model to generate a realistic net discounted cash flow for each
case. The most favourable alternatives are then selected for
more detailed planning studies, including XPAC schedules.
Analysis of the Blasor schedules such as COG results, stope
block timing and ore processing constraints is used to guide
this further planning work.
USES FOR THE OPTIMISATION MODEL
Project value, scale and cut-off grade
A major role in the user of the optimiser is in the assessment
of project value (NPV) for various possible mining and
processing configurations and investigation of the optimum
global COG for each of these alternatives. Figure 4 illustrates
the results from running a series of fixed COG models and
a variable COG model for a range of large-scale mining and
process capacity expansions. Uniform expansion increments
in excess of 1 Mt/a each are numbered 1 to 8 in order of
increasing scale. In this set of runs we are fixing project scale
and stope design cut-off then allowing the model to optimise
9,000
8,000
7,000
6,000
Project Value
5,000
4,000
3,000
2,000
1,000
0
0 1
-1,000
3.1COG
FIG 4 – Incremental value versus process capacity for five cut-off grade policies.
252 OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014
the mining sequence and schedule. The variable COG model
is also optimising design COG by stope block and time. Note
that the curves do not follow a smooth line as the estimated
capital cost increases for certain expansion options are not
linear. It is important to note here that the NPVs generated
for various options are heavily dependent on the investment
capital assumptions for mining, processing and infrastructure.
As cost estimates at higher levels of confidence are obtained
by the project team, further iterations of the optimisation
process will be required to either confirm or modify the initial
findings.
Of the fixed COGs, the lower COG gives the best value
for this range of mine expansion options. A larger resource
and the higher mining rates from the increase inventory of
stope blocks means that process capacity can be filled more
consistently. At the high COG, value drops after the third
expansion option as the higher-cost larger mill capacities
cannot be filled. Values rise fairly steeply up until the first
expansion option then display a general trend to level off.
This result indicates that under a capital-constrained business
environment Expansion scale 4 would be the preferred option.
A variable COG policy gives the best value up to Expansion 4
as higher cut-off and consequently higher feed grades can be
mined initially. At higher capacities, values between variable
and fixed 3.1 COG tend to coincide, as the variable COG
model is effectively mining at 3.1COG from the start. There
is some variation at the two largest capacities, mainly because
the fixed COG model has the facility for stockpiling. Figure 5
shows a comparison in cumulative values between Expansion
scale 1 and Expansion scale 4. For this mining method and
processing alternative, the higher capital cost of the larger
expansion is offset by higher revenues over the project life.
Timing and cut-off grade for each block
Output from the model can be used to identify the most
favourable sequence for developing and commencing mining
in each stoping block (one of the policies that have been
optimised). It is not possible with this tool to optimise the
development network, so the access development design is
fixed. However, the optimiser can select when to start mining
each development section and can bypass a stoping block
if there is one later in the sequence that presents a greater
contribution to value. Excel pivot tables can be used to sort the
raw optimiser output so that the user can see the production
from each block in each period. Figure 6 shows part of such
a pivot table; each stope block is represented as a different
colour and the access developments are shaded grey. Arrows
indicate the development dependencies.
2 3 4 5 6 7 8 9
Expansion Option (Scale)
3.3COG 3.5COG 3.7COG VariableCOG
 ADAPTATION OF AN OPEN PIT OPTIMISER FOR UNDERGROUND STRATEGIC PLANNING

18,000

16,000

14,000

12,000

Cumulative Value
10,000

8,000

6,000

4,000

2,000

0
2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075
-2,000

-4,000
Time
-6,000

Expansion Scale 1 Expansion Scale 4

FIG 5 – Cumulative value for two expansion options.

FIG 6 – Output for optimised mining sequence. Values in each cell indicate annual production in kilotonnes.

The variable COG model can also be used to examine
selected COG for each stope block over time. Each parcel
within a cell is coded according to the COG increment it
represents. Analysis of the output, although quite time
consuming, allows the user to determine the COG at which
each stope block is being mined during each period. Figure 7
gives an example of data derived from part of an output pivot
table. The lower COGs for the blocks that commence mining
first correspond to a mine access ramp-up time when the
cut-off across a smaller number of blocks must be dropped
in order to fill the mill. Cut-offs are then raised as all blocks
come into production, then drop over time as the best material
is exhausted.
Mine development rates and process
configurations
One set of development options involves development into
the new resource zone but with a small-scale ore processing
expansion. In addition to estimating the value of the plant
improvements, it was necessary to assess the influence of
mine development rates on project value. Figure 8 shows a

OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014 253
B ROBERTS AND M BLOSS

FIG 7 – Output for optimised cut-off grade with time. Values in each cell indicate cut-off as CuEq per cent.

10,000

9,500

9,000

8,500
Project value

8,000

7,500

7,000

6,500

6,000
25 50 75 100 125 150 175
Mining Development Rate - % of Base Rate

No Smelter expansion Smelter expansion 1 Smelter expansion 2

FIG 8 – Value of smelter expansion and mine development rate with fixed mill capacity.

plot of the results for a fixed mill capacity with curves for no
smelter expansion and two smelter capacity increase options.
The horizontal axis gives development rates as a percentage
of a ‘base rate’ that corresponds to the current planned rate.
Results indicated to the planning team that the smaller of
the two smelter expansions was the most promising option.
Accelerated development rates show a minor improvement
in value but it should also be noted that the optimisation did
not take into account the associated higher contract rates and
fixed costs due to more complex operational arrangements.
Slower development rates, however, showed a significant
reduction in value as production from the new high-grade
stope blocks is delayed.
Impact of plant feed constraints
Within Blasor, a series of Products and Attributes can be
calculated from the input data and used to model various
process plant constraints such as feed copper-sulfur ratios,
sulfur tonnes, and concentrate throughput. The current plant
has a minimum copper:sulfur limit that heavily influences
the mining schedule. By comparing different options, the
economic value of engineering an expanded plant with
relaxed feed constraints can be estimated (Figure 9).
Effect on the schedule of valuation criteria
The most usual business strategy of mining companies is to
maximise NPV (King, 2009), but there are other measures
such as reporting the largest ore reserve, or achieving some
aspiration production target such as 1 Moz per year. To
investigate the impact on the schedule of aiming to achieve
the highest internal rate of return (IRR) or the shortest
payback period, the optimiser can be run at higher discount
rates. Figure 10 shows the impact on the early years of a
schedule, where the COG is raised to produce a higher head
grade. This strategy, however, can reduce the NPV for the life
of the project.
Obtain estimate of feed grades and product
quantities for different cases
The simplest type of report available is an estimate of feed
grade profiles and product quantities over time (Figure 11).
For any particular mining and processing configuration the
operation will be running at different points on the grade-
tonnage curve. Because Blasor can run many cases in a
relatively short time, this data can be obtained for a range of
stope design cut-off grades, mining capacities and processing
capacities.
CONCLUSIONS
The in-house adaptation of an open pit optimiser provided
a readily-available tool for generating a large number of
strategic mine planning solutions within a short time frame.
The method has been successfully used to investigate the

254 OREBODY MODELLING AND STRATEGIC MINE PLANNING SYMPOSIUM 2014 / PERTH, WA, 24–26 NOVEMBER 2014
 6,000 ADAPTATION OF AN OPEN PIT OPTIMISER FOR UNDERGROUND STRATEGIC PLANNING

5,000
Plant1 and Plant2 min
CuS=1.5
4,000

Project value
Plant1 min CuS=1.5,
Plant2 CuS unconstrained
3,000
Plant1 and Plant2 CuS
unconstrained
2,000
Plant1 and Plant2 CuS
constrained by sulphur
1,000 capacity

0
3.1 COG 3.3 COG Variable COG

FIG 9 – Impact of plant feed sulfur constraints on project value.

2.8%

2.6%
Copper feed grade

2.4%

2.2%

2.0%

1.8%

1.6%

1.4%
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9

Year
Low Discount Rate High Discount Rate

FIG 10 – Copper feed grade with low and high discount rates.
2.60%

2.40%

2.20%
Copper feed grade 

2.00%

1.80%

1.60%

1.40%
2015 2025 2035 2045 2055 2065 2075
Year
Expansion1 Expansion2 Expansion3 Expansion4

FIG 11 – Copper feed grade by expansion capacity.

optimum stope design cut-off for various strategic options,
the economic potential of a series of mining and processing
configurations and to provide guidance on the optimum
sequence for developing and mining the various stoping blocks
in the resource. Examination of the results has highlighted the
most suitable development paths for more detailed study,
thereby reducing the required number of detailed planning
exercises and reducing the impact of scheduling studies on
the overall study project calendar.
By re-configuring the input data in a similar way, it may
be possible to adapt other pit optimisation packages for use
in high-level underground strategic planning. COMET, for
example, can be readily applied to this work (Wooller, 2004).
It is not being suggested that such models could replace
a custom-built underground optimiser for more detailed
studies but the results and insights that they create can be
used as part of a business case for further planning studies.
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