Situated in the San Juan Province, at the heart of the Andes, Veladero mine is Argentina’s largest open-pit gold and silver mining operation. Positioned at elevations ranging from 4,000 to 4,850 m above sea level, it is also one of the world’s highest situated gold mines. The mine operates under a 50/50 joint venture between Barrick and Shandong Gold. Micromine recently outlined the benefits the mine has seen from the introduction of Micromine Alastri to boost value from its mine planning.
The operation mining rate ranges around 70 to 83 Mt/y, forecasting a gold yield production of 450,000 oz per year. Material from the open pit is either sent to the crushing plant, longer term stockpiles for later processing or to a designated dump location. The crushed ore is then hauled by trucks to the leach valley located some 6.5 km south of the mine. This activity utilises approximately one third of Veladero’s fleet.
Production is achieved with a fleet of five shovels, two loaders and 52 trucks, each with a 230 t payload target. While haulage capacity was sufficient to meet production targets, any bottlenecks in the haulage network that changed cycle times had a significant impact on the overall efficiency of the operation. As a result, Veladero needed a mine planning system that could replicate their haulage network with accuracy, assess truck cycle times, forecast fuel burn, and also be integrated with their short and medium term mine plans.
Working in the remote Argentinian Andes also poses several challenges in developing a robust mine planning system. The company required a mine planning solution that could be implemented quickly, cater to the complex decision processes at the operation, and be user-friendly without demanding extensive training.
“Some of the problems that we faced at Veladero in relation to mine planning was the quality of data we had to work with, problems in effectively communicating the plan, and standardization of the plan between planners,” said Carlos Meza, Mine Planning Superintendent.
“A robust planning system needed to be developed: not just the platform, but everything that makes up the plan. Everything from how to collect, enter and check the input data, how to check the block model, and whether the maintenance plan is correct. In other words, it was important that the entire ecosystem of planning itself was optimal.”
“We also needed to overcome the challenge of training local staff in the implementation and operation of the planning system. We had two different levels of professionals at site: experienced staff, and young professionals just out of college. We wanted a system that didn’t require a doctorate to operate it. The plans should be easy to replicate, and the system should be auditable and easy to maintain.”
Meza and his team evaluated a variety of planning solutions and eventually settled on Micromine Alastri, which is designed specifically to model the intricate open pit hard rock mines operating today and those being designed for the future.
Veladero had six criteria for their mine planning tool: modularity; a well-defined workflow; accurate algorithms that had optionality; a user-friendly user interface; the ability to extend functionality if needed; and importantly, vendor relationship and support. While Micromine Alastri met all six criteria, Micromine says another major factor that influenced the decision was the lower business risk compared with other solutions, where the initial model development was performed by the vendor, resulting in additional implementation costs.
“Most competing providers charge for model building and testing – and once the prototype has been developed you pay hourly for a consulting service for tuning the models,” said Meza. In contrast, Micromine worked in partnership with Veladero to build the original model at zero cost. In this way, both Veladero and Micromine had a shared incentive to get the model up and running quickly. “With Micromine we had zero risk because we were able to build the model, and if the initial model didn’t work, it would have cost nothing but the time used.”
Data security was also a factor: “The Micromine Alastri product does not require that the vendor has access to the data, unless the user wants to share it,” said Meza. “In some products, data goes to a central repository and results come back. With Micromine Alastri, the user is in full control of the data.”
The initial implementation of Micromine Alastri at Veladero took four months. Data collection for the model ran from late September to mid-October, and the prototype model was built by mid-November. “The data collection involved debugging and checking that the information was correct, that it covered the extension of the model, that at least the topography covered the extension of the block model, and that the block model had the correct variables that we wanted to model,” said Meza. “We also had to make some decisions regarding the operation of the model, that is, the flow of materials (if it leaves the pit, where does it go), planned destination of multiple ore types and waste, physical restrictions and the structure of the plan itself.” Testing and refinement of the model were done in parallel and was completed the following January.
“Once we were happy the prototype was representing and solving our questions, we started the training phase,” said Meza. “Training took about one month. In my experience, within about two to three rotations it is possible to have a good understanding of what the tool is. After three rotations, we have a degree of autonomy in using it without knowing everything. I recommend on-the-job training first and then formal training to increase understanding.”
Project rollout was delivered in the first half of February. The speed of implementation and staff training enabled the Veladero mine to begin autonomously and productively applying the software to their operation quickly. The project set a new benchmark for software implementation at the site.
Reflecting on the implementation journey, Meza believes the integrated nature of the Micromine Alastri tools, and their guided workflows were key aspects that helped his team produce results quickly. “The modularity of the system results in significant time saving. We can replicate, for example haulage models, and re-use them in various planning horizons, all automatically updated with new or changed data. Short-term information can be used to infer longer-term results, which was especially useful in the early stages of mine planning.”
When developing plans, users are also held to a consistent workflow, eliminating planning errors. “Micromine Alastri forces users to work in an orderly manner: it’s not possible to proceed to the next step until the previous step has been validated. Failures are reported with error messages, and it’s possible to click on the error and find the cause: error detection and resolution are much more dynamic than in other packages.”
Intuitive workflows also enhance productivity from the planning teams at a greater speed. “We do not need to know the entire menu from the beginning, and we’re not going to do steps out of order that will cause the model to fail. Having a workflow allows you to work in a standardised way and quickly resolve problems when they arise.”
The user interface of Micromine Alastri also contributes to both efficiency and rapid onboarding. The software uses a graphical interface similar to a game,” said Meza. “The 3D view allows users to see decisions that are being made in real time. For example, a user can simulate the haulage route selected between source and destination and over time calculate whether the route achieves the desired goal. We can also visually audit what is happening inside the software, and understand whether rules and calculations are correct.”
Haulage represents a major operating cost for most open pit mines. Given the distances between the mine, crushing plant and leach valley, the team at Veladero needed a robust approach to model haulage cycles and assess them over time. Haul Infinity allows mine planners to accurately model the mine’s haulage network in the form of a digital twin. The model is then integrated within Micromine Alastri’s Production and Tactical Schedulers, which manage short and tactical mine plans respectively. Users can then assess specific scenarios for their haulage mix and incorporate the best results within their mine plans.
The team at Veladero approached this in a systematic way to ensure the results reflected the real-world dynamics of their haulage network. This involved replicating their haulage network in Haul Infinity, calibrating haulage cycle and travel times before integrating this within their mine plans and reconciling results with data from their fleet management system. All of this was done while developing the skills of the planning team and upskilling them with the tool.
Carlos Meza and his team at the Veladero mine were able to rapidly integrate a new mine planning system into their operation in just four months, revolutionising their planning processes and team efficiency. “We had both senior and junior engineers who were trained and proficient using the tool in just four months. We also managed to cut 40% off the time we used to generate a plan,” said Meza.
The implementation methodology, consistent and enforced workflows, modularity of the Micromine Alastri products and the approach to haulage integration were all key components of this success. According to Meza, this has all culminated in time savings that allow his team to design more comprehensive mine plans and work on other important projects. “By freeing up the engineers’ time it allows them to dedicate themselves to other activities – such as designs, reviews, calibration and visible leadership in the field – rather than spending too much time at a computer doing the planning.”
