This is the first of four posts in a series on Strategic Mine Planning at Newmont.
It takes a team to realize the full value of mineral resources. “Success means more than software solutions,” says Marcelo Godoy, Newmont’s VP of Resource Evaluation and Mine Planning. “It means cross-functional engagement with a variety of experts – from exploration and geology to sustainability and external relations.”
Marcelo characterizes strategic mine planning as the process where mining activities are integrated and aligned with the company’s business strategy. It requires continuous adjustments to changes in the business environment.
Regional Operations Planning Director Alyson Boye knows firsthand the value of collaborative teamwork at Newmont Africa. Each day, she spends time talking with colleagues to better understand planning challenges and opportunities – and to find shareable solutions. “Working closely with other departments helps us quantify and evaluate operational value drivers,” she explains. “That allows us to make informed business and planning decisions.” Such cross-functional engagement also supports value drivers across the business: since 2013, it has helped Newmont achieve over $1.5 billion net present value (NPV) improvements.1
“Newmont’s strategic mine planning works best when site and project teams are involved with the inputs as well as how we run and evaluate the plans.”
– Alyson Boye, Director, Regional Operations Planning, Newmont Africa
Marcelo points out that among the most important decisions is planning when and at what rate a resource should be mined and processed. Choosing this “spatial sequence” requires consideration of all aspects of the mine lifecycle. With the help of industry- leading proprietary optimization technologies, Newmont’s engineers can make such complex, non-linear decisions in the most informed way possible – safely, profitably and sustainably.
- Non-GAAP operating performance measure used by management to assess the value of innovation. (Using the same rigorous approach we apply to Full Potential, NPV is calculated before and after the improvement with the same economic assumptions.)