Ep 120: How Final is Your Final Pit?

In this episode of Fresh Thinking by Snowden Optiro, host Tarrant Elkington (Snowden Optiro General Manager) chats with Pedro Ladiera (Senior Consultant Mining) about one of mine planning's most critical (and misunderstood) decisions - the final pit. They explore the technical and economic logic behind pit optimisation, from the use of Lerchs-Grossmann and Pseudoflow algorithms to the importance of discounting by depth, and why your first five years of mining might matter more than the final pit itself. Pedro also introduces Direct Block Scheduling as a powerful alternative for blending and sequencing - and they both reflect on how sensitive infrastructure placement is to assumptions that may change over time. Key Points & Timestamps: 0:16 – What is a final pit, and why does it matter? 2:00 – The role of the final pit in mine design, scheduling, and infrastructure layout 3:09 – Pit optimisation methods: Lerchs-Grossmann & Pseudoflow algorithms 5:30 – Revenue factors and nested pit shells explained 6:38 – Why the "optimal" shell may not maximise NPV 9:01 – Using depth discounting to choose better shells 10:01 – Introduction to Direct Block Scheduling 13:45 – Infrastructure regret: what happens when pits grow beyond expectation 15:00 – Why several pit options may yield similar value — and how that shapes decision-making 16:42 – Final pit vs. starter pit: where planners should really focus 17:54 – When to lean toward revenue factor 1, and when to consider strategic alternatives You can find our Fresh Thinking by Snowden Optiro podcasts on YouTube, Spotify, Apple Podcasts and most other podcast platforms. 👍 Like, comment and subscribe for more insights from the team at Snowden Optiro. If you would like to contact Tarrant or Pedro: contact(at)snowdenoptiro.com WHO WE ARE: Snowden Optiro is a resources consulting and advisory group that provides independent advice, consulting and training to mining and exploration companies, their advisors and investors. We help mine developers to advance their projects, mining companies to improve their operations and their professionals, and investors to de-risk their investments by the provision of quality advice, training and software in the field of Mineral Resources and Mineral/Ore Reserves. For training or consulting enquiries: training(at)snowdenoptiro.com contact(at)snowdenoptiro.com https://snowdenoptiro.com/ #MiningPodcast #MinePlanning #FinalPit #PitOptimisation #NPV #LerchsGrossmann #DirectBlockScheduling #SnowdenOptiro #FreshThinking #Geology #MiningEngineering