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

Article originally appeared in the Canadian Mining Journal.  Read the June 2025 issue 

This article is authored by :

Kabelo Leeka, EY Canada Metals & Mining Business Consulting Operations Excellence Practice Leader
Theresa Sapara, EY Americas Metals & Mining Centre of Excellence Lead
Daniel Morales, Consulting Manager, EY Americas Metals & Mining Centre of Excellence

Open-pit operations must align short-term wins with long-term strategy to boost value, efficiency and ESG performance.

In brief

• Open-pit operations benefit from shifting siloed efforts to cross-functional integrated planning that aligns short-term actions with long-term value creation.
• Start at the operational level to create visible wins, build internal momentum and lay the foundation for broader strategic initiatives. Employ value driver trees (VDTs) to align disciplines and enable decision-making by linking improvement opportunities to financial outcomes.
• At the strategic level, simultaneous stochastic optimization tools provide greater impact on NPV by capitalizing on the orchestration of decisions under supply and demand uncertainties.

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.