Unlocking open-pit value through holistic approach from operations to life-of-mine (LOM) planning

Surface (open-pit) mining is constantly under increasing pressure of cost efficiency owing to deeper mines, increased waste handling, and related strip ratios. Broader challenges such as declining ore grades, rising operational costs, and heightened stakeholder expectations are forcing operators to rethink how to maximize value from their assets.

And while both local optimization of parts (including drill and blast, loading, hauling and processing in the short-term) and sequential optimization (cutoff grade optimization, ultimate pit limit, and sequencing) remain sine qua non to any successful open-pit endeavour, truly moving the needle in this area means recognizing the value in simultaneous optimization at both operational and strategic levels.

However, achieving this goes beyond localized and siloed optimizations, instead requiring a holistic approach to open-pit mining that connects tactical execution with long-term planning to achieve sustainable outcomes. To maximize value, mining companies must critically consider, identify, and solve for a complex array of operational imperatives while implementing sustainable solutions derived from a life-of-mine (LOM) planning lens.

Waste management as a strategic challenge within operations

Firstly, effective waste management remains a critical issue for open-pit mining. As mines move more material to access ore, they face the dual challenge of balancing higher material movement with technical and operational constraints, alongside financial pressures.

An increased environmental, social, and governance (ESG) focus is also elevating waste management beyond a simple operational task. A survey by EY found that 44% of mining executives believe waste management will represent the most scrutinized ESG element from investors in the mining and metals sector in 2025, emphasizing the importance of transparent reporting on waste generation and management efforts. By proactively addressing these operational realities, mining companies can mitigate risks, reduce liabilities, and enhance their reputation in an increasingly competitive landscape.

More than ever, operational efficiencies in waste management are emerging as measurable proof points to underscore cost efficiency and the strengthening of brand reputation among stakeholders. It can also serve as a reflection of an organization’s sustained commitment to environmental obligations.

At the operational level:
Unlocking immediate value through operational discipline

To unlock near-term value, some miners are using tools like value driver trees (VDTs) to identify which operational levers offer the highest impact. These typically include areas such as drill and blast, loading, and hauling. By mapping out value pathways, VDTs help site teams focus efforts on where they matter most.

In addition to performing traditional analyses like reconciliation and compliance, there is an increasingly sophisticated pool of tools at a miner’s disposal to visualize the impact of the VDT and simulate different scenarios, quantifying trade-offs, and supporting decision-making. These tools connect operational performance with financial outcome, making improvement opportunities clearer and more actionable.

Starting at the operational level creates visible wins, builds internal momentum, and lays the groundwork for broader strategic initiatives. It helps teams provide the value of change with real results on the ground.

At the strategic level: Simultaneous optimization

The incorporation of advanced simultaneous optimization tools into LOM planning offers another compelling avenue for open-pit activities, providing opportunities to enhance operational efficiency and maximize asset value. Certain software solutions currently available in the market look to leverage stochastic modeling to generate optimized production schedules that align with evolving market conditions and resource availability. By leveraging the simultaneous optimization of when, where, and how to process material, these tools enable operators to make informed decisions that significantly increase the net present value (NPV) of their assets.

Not to be forgotten and equally important is the strategic allocation of capital which also plays a determining role in open-pit mining, ensuring investments are directed toward high-impact initiatives that drive both short-term gains and long-term sustainability. Miners can even avail themselves to tools that specifically facilitate the optimization of capital decisions like capacity increases through equipment acquisition or the honouring of ESG key performance indicators (KPIs) like decarbonization.

Future-proofing mining operations through
innovation and strategic alignment

The current economic landscape is exacerbating many of the challenges inherent in open-pit projects. That is why the industry must proactively address the challenges of productivity, cost efficiency, and waste management to remain competitive. By adopting a systems-level approach that harmonizes technical performance with financial outcomes, mining companies can unlock new value in their operations.

Moreover, the integration of advanced diagnostic tools can further enhance operational efficiency and support long-term sustainability goals. These modern digital platforms provide insightful dashboards focused on KPIs, enabling data-driven decision-making that enhances productivity and reduces costs. These tools are specifically designed to help companies identify operational bottlenecks, optimize resource allocation, and simulate operational scenarios to forecast outcomes, ensuring that every decision is backed by robust data to maximize open-pit productivity.

By embracing a comprehensive suite of operational and strategic tools, mining companies can navigate their open-pit operations, ensuring they are well-equipped to meet future demands while maximizing their value proposition. Ultimately, proactive management of these issues will enable miners to thrive in a competitive market, allowing for growth. 

Kabelo Leeka, Daniel Morales, and Theresa Sapara support the Americas Metals & Mining Centre of Excellence at EY.

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