Challenges in Mine (Re-)Planning

Mine plans guide safe, efficient, profitable extraction of mineral resources. Mine engineers are taught methods to create an optimum mine plan which will maximize the value created over the life of the mine. In theory, the resulting mine plan should provide stable instructions to guide mining and processing operations. In practice, mine engineers are frequently re-planning to respond to changing conditions and changing management directions. In class, students are given a complete set of assumptions and asked to create a mine plan and report results. In practice, engineers will only be given a partial set of assumptions which may or may not be correct, and management may already have an idea of what results are acceptable. Too often, an engineer will proudly present a mine plan only to be told by management, “not good enough, try again.” Steve will share examples of mines that needed re-planning due to differences between planned and actual results or between planned results and management expectations. Mine planning processes will be discussed that can create more realistic mine plans and increase management acceptance. The talk will also highlight some mine planning lessons learned from industry leaders, including several inductees to the National Mining Hall of Fame.
Steven Hoerger, Ph.D., has been owner and Principal of Peak View Mine Planning since retiring in 2020 as Group Executive, Operations and Project Planning for Newmont Corporation. In 31 years with Newmont, the common theme of Steve’s positions in finance, operations management, mine engineering, geostatistics and mining software development has been to provide more accurate and more valuable mine plans. He holds B.S. and M.S. degrees in mining engineering, and a Ph.D. in engineering, all from Michigan Technological University. He also serves as a director of the National Mining Hall of Fame and Museum in Leadville, Colorado, whose mission is to “convey the story of mining and its people to highlight the industry’s contributions and importance to our world and the future”. At many mines and boardrooms, Steve has given and received the feedback of “not good enough, try again” and identified solutions to create improved plans