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Decision-Making Using The Analytic Hierarchy Process in Mining Engineering
Decision-Making Using The Analytic Hierarchy Process in Mining Engineering
IN MINING ENGINEERING
V.N. KAZAKIDIS
School of Engineering, Laurentian University,
Sudbury, Ontario, P3E 2C6, Canada
Z. MAYER
School of Engineering, Laurentian University,
Sudbury, Ontario, P3E 2C6, Canada
M. SCOBLE
Department of Mining Engineering,
University of British Columbia, Vancouver, V6T 1Z4, Canada
Synopsis
Experience and intuition have traditionally been central to decision-making in mining because of the frequent lack of quantitative data.
Qualitative analysis is based primarily on the judgement, knowledge and experience of one or more experts. In cases where limited
information is available, then subjective probabilities, based on general professional experience, knowledge, and opinion of experts, can be
the basis for analysis. A methodology for qualitative decision-making using the Analytic Hierarchy Process (AHP) mathematics and
sensitivity analyses is presented herein. This paper presents a series of case studies in different mining scenarios to demonstrate the
application of AHP. These relate to: investment analysis of new technology; ground support design; tunnelling systems design; shaft
location selection; and, mine planning risk assessment. A review is given of the AHP methodology for qualitative decision-making based on
field applications.
1. Introduction
Mining engineering was often regarded in the past as “an art rather than a science”. Experience and intuition have
been central to decision-making because of the frequent lack of quantitative data including geology, grade
distribution and ground conditions, as well as environmental, social and economic factors. Uncertainty in data has
significantly impeded reliable decision-making, particularly over resource allocation and timing of activities. Mine
planning and design frequently needs to account for high operating risk. Mining processes relate to multi-functional,
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interrelated activities. Reliable qualitative or quantitative data analysis to evaluate risk as well as its impact in the
mining life cycle is both challenging as well as significant. The increasingly holistic nature of decision-making in
mining engineering, for example relating mining and mineral process design to environmental and social factors,
The decision-making process may be qualitative, quantitative or a combination of the two. The problem
structuring and analysis process is conceptualised in Figure 1. Qualitative analysis is based primarily on the
judgement, knowledge and experience of an expert (or team of experts).1 When experience and expertise is strong
within an analytical team then an emphasis can often be placed upon a qualitative analysis. However, in cases where
there is limited experience or high complexity, then a quantitative analysis may be more appropriate. In a
quantitative analysis the focus is on facts and data associated with a problem and a mathematical formulation that
encompasses the objectives, variables and constraints of the particular problem.2 Quantitative analysis has
traditionally been the subject of operations research and management science. In mining it has been closely
associated with discounted cash flow, risk, reliability and simulation analyses.3-6
According to Forman and Selly7 :“in many enterprises the decision process entails great time and effort in
gathering and analyzing information. Much less time and effort go into evaluating alternative courses of action.
The results of the analyses (there are often many, for example financial, marketing, operations, and so on) are
intuitively synthesized to reach a decision. Research has shown that although the vast majority of everyday
decisions made intuitively are adequate, intuition alone is not sufficient for making complex, crucial decisions”.
In an example of qualitative assessment, Gido and Clements8 relate how a contractor’s proposal evaluation can
be made using a scorecard approach. In a case study, the selection criteria include the company experience, the time
schedule and the overall approach, in addition to the quoted price. Each proposal is then ranked using the weighted
evaluation criteria, and a score from 1 (low) to 10 (high) is assigned for each of the criteria corresponding to the
particular proposal. At the end, the proposal that has scored the highest total mark is the optimum one based on the
Whether a qualitative or quantitative analysis is conducted, it is often the case that the probability of a certain
project parameter value needs to be estimated. Objective probabilities can be estimated when actual information is
available for the parameter concerned. Data may exist for parameters, such as the costs, grade, tonnage and
dimensions of a mineralized body, etc. This can be used to derive objective probability distributions. However, in
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cases where limited information is available, then subjective probabilities, based on general professional experience,
knowledge, and opinion of experts, can be the basis for analysis.9 Whether intuitively or analytically, an expert is
called to provide a best estimate of the anticipated parameter value, its variability (in some form) and its significance
to the particular analysis. These expert opinions can be then used for simple estimates of input parameters in
deterministic decision models, sensitivity or risk analyses. In essence, the required input information is obtained by
probing and questioning each of the experts involved. Referring to mine feasibility analysis, Bilodeau10 states that
“the estimation of subjective probabilities is the most important factor determining the realism and effectiveness of
This paper focuses on qualitative decision-making analysis in mining operations. The AHP approach enables
qualitative analysis using a combination of subjective and objective information/data.11 Although most often used
for decision-making on a corporate level, AHP has not been used extensively to model decisions pertaining to the
planning and design of mines. Available AHP software, such as Expert ChoiceTM represents a multi-attribute
decision-making tool that has been studied as a potential means for modelling mining processes. This paper reviews
the AHP approach and how these studies show its application for decision-making in a variety of mining scenarios.
The Analytic Hierarchy Process (AHP) represents a potentially powerful and flexible decision-making process to
help set priorities and make the best decision when both qualitative and quantitative aspects of a decision need to be
considered. By reducing complex decisions to a series of one-on-one comparisons, then synthesizing the results,
AHP not only helps decision makers arrive at the best decision, but also provides a clear rationale in doing so.
Designed to reflect the way people actually think, AHP was developed more than 20 years ago by Thomas Saaty and
1. Model the decision problem and list the hierarchy of interrelated decision elements: decision criteria and
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4. Determine the priority ranking of the decision elements.
Both quantitative and qualitative criteria can be compared using informed judgments to derive weights and
priorities. In this way, the relative importance of one criterion over another can be expressed. The information is
then synthesized to determine the relative ranking of the alternative criteria. AHP works by arranging the necessary
information into a hierarchal tree (pairwise matrix) of criteria and alternatives.13,14 The ranking of the priorities
within this matrix is obtained by finding the eigenvector solution of the matrix. The AHP method determines the
ranking by raising the pairwise matrix to powers that are successively squared each time. The row sums are then
calculated and normalized, and this process is iterated until the eigenvector does not change from its previous
iteration, or until the difference between the row sums is smaller than a prescribed value. The resulting eigenvector
gives the relative ranking of the rating criteria. Pairwise comparisons are then used to determine the preference of
each alternative over another for each of the rating criteria. Computing the eigenvector then determines the relative
ranking of the alternatives under each criterion. In summary, the AHP method provides a logical framework to
determine the benefits of each alternative. Figure 2 demonstrates the mathematical principles underlying the
process.
Expert Choice is an example of commercially available AHP software that uses AHP to prioritize possible
decisions (Figure 3). It automates the AHP process, saves and iterates all of the results, performs various sensitivity
• allocating resources;
• selecting alternatives;
• comparing cost/benefits ;
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• determining site selection;
4. Rate the criteria and alternatives against each other using pairwise comparisons by inputting subjective
5. Synthesize objective and subjective inputs to obtain a prioritized list of the alternatives.
Consider a simplified example based on the process of equipment selection, for example, the selection of
scooptrams for a mine. First, the decision criteria and objectives need to be defined. In this case, three decision
criteria might be chosen: performance, reliability and price. Suppose that the mine has narrowed the choice to three
scooptram models (A, B and C). The hierarchical representation of this decision problem is demonstrated in Figure
• Models A, B, C
The second step in performing an AHP analysis is to “rate” each criterion and alternative against each other.
The weights are numerical, and should increase as the relative importance of each criterion increases. Figure 5
shows an example of how the criteria are weighted. It demonstrates how the price has been assigned 50% of the
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importance, whereas performance carries only 35% and reliability only 15%. Next, the alternatives must be rated
against each other for these criteria. For simplicity, each rating has been valued on a scale from 1 to 10 (1 represents
poor, while 10 is outstanding), see Figure 6. In this case, Model B has the best Performance rating, with an 8, then
Model C with 7, followed by Model A with the poorest performance rated at 5. It is important to note that such
values would likely be subjective and obtained by a professional in the field, whereas under the Price criterion,
actual cost values have been used. The final weight matrix will be:
5 / 20 8 / 17 9 / 19 0.350 0.395
[ final ] =
options objectives normalized
x weightings = 8 / 20 3 / 17 4 / 19 x 0.150 = 0.725 →
weightings 3 x 3 3 x1 7 / 20 6 / 17 9 / 19 0.500 0.620
Please note that to create the options matrix, the value assigned to each objective is divided by the sum of the
column. Figure 7 identifies the final selection, showing the criteria and the alternatives, as well as their respective
overall rankings. Model B is indicated in the same Figure to be the best choice, with a ranking of 41.7%, followed
by C and then A with only 22.7%. Figure 8 demonstrates how to undertake dynamic sensitivity analysis. This is
used to dynamically change the priorities of the criteria to determine how such changes can affect the priorities of
the alternatives. By comparing the two diagrams, it can be seen that by giving Reliability a greater importance, and
by lowering the significance of Price, then the overall rankings of the scooptram models change, with Model A
4. Mining Scenarios
The following mining decision-making scenarios were considered in order to evaluate the range of application of the
AHP methodology. A description of the goal, rating criteria and alternatives used in each AHP analysis is presented.
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• Drilling Technology Investment Analysis;
For each scenario, different aspects of the AHP approach and software features will be demonstrated through
various types of sensitivity analysis. The framework for each model is different, as well as the methodology used in
its creationg the models. Consultation with industry experts was required to determine the weighting and importance
This model was created from an example introduced by Dessureault and Scoble.12 The hierarchical representation is
shown in Figure 9. Here, the objective of the model is to appraise the impact of new blasthole drilling technology by
determining which of three options is preferable: purchase new drill technology, retrain the drill operators, or
Figure 10 summarizes the rating criteria and alternatives, as well as their respective overall weightings. The six
criteria on the left side of the Figure are those that the mine had determined to be the most important factors
involved in making the particular decision. It can be seen that Cost is the most important criterion in making this
decision, accounting for a 41% weighting, as compared to say Culture, which is considered to be least important
with only 3% weighting. From the top right corner of Figure 10, it can be seen that Purchase Drill Technology was
determined to be the best alternative in meeting the goals. Figure 11 depicts another aspect of the sensitivity
The “head-to-head” sensitivity allows direct comparison of two alternatives, with reference to each specific
criterion. It can be seen that Purchase Drill Technology is clearly best in terms of Fragmentation, Design, Safety,
Blending and Culture, although sometimes only marginally. In considering Cost, however, Retrain Drill Workers is
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the best. This attention to sensitivity is useful in cases where the margin between two alternatives is small. It
provides a clear picture of what criteria each alternative excels or lacks in, as well as by how much. In this way, it is
possible to identify where a specific alternative under consideration is lacking the most, and where improvements
can be made.
The selection of the type of rockbolt support system is used here to demonstrate another perspective of the AHP
approach. The various types of bolt support systems used in mines have been discussed, for example, by Hoek,17
Stillborg,18 and Charette and Hadjigeorgiou.19 The goal in this study was to create a model in which the user could
determine the appropriate rockbolt system for use in given conditions. This model allows the selection and rating of
• ease of installation;
• cost of installation;
• maintenance costs;
The model also provides flexibility in choosing between manual or automated bolt installation in conjunction
with screen or shotcrete, since these affect the ease of installation as well as the overall cost. Once complete, then
the model evaluates the bolt system for the selected ground conditions and performance requirements. It is
important to note that in this model the outcome is dependent on the subjectivity of the input parameters. The input
of experienced ground control personnel would be critical in establishing the input parameters. A model such as this
can be useful in evaluating the bolt alternatives that are best for given ground conditions or a required lifespan of an
opening at a pre-feasibility or feasibility stage. It can also be used, for example, to select the best bolt system while
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keeping cost considerations or restrictions in mind, as well as to perform sensitivity analyses on several “what if”
scenarios.
(4) Consultation with industry ground control experts regarding the model;
Figure 12 depicts a screen capture of the selected goal, rating criteria and bolt systems selected to be chosen to
be used in this model based on the input of a senior ground control specialist. The software allows for the addition
of diagrams or pictures into the information document section of the model. Figure 13 depicts a screen capture of the
input parameters used in rating the various bolt system alternatives. A scale of 1 to 10 was again used for each
criterion.
This model proved to lend itself well to a “what-if” analysis, for example, considering how a specific bolt system
would rate if the ground suddenly becomes High Stressed and Shearing. Figure 14 shows a sensitivity analysis for
determining how the bolt system ratings are affected by changing the anticipated ground conditions. Simply
dragging the required bars back and forth will visually depict if the variation in the bolt system’s performance.
This AHP application examined how technological and operational options could be modeled in an attempt to
radically increase tunneling advance rates, e.g. towards 15 m/day, through systems innovation in methods, materials,
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• Initial brainstorming workshop;
• Sensitivity analysis.
The rapid tunnelling options were characterized according to the following development cycle components:
1. Drilling
2. Loading
3. Blasting
4. Mucking
5. Transportation
6. Scaling
7. Support
8. Services / Infrastructure
9. Organization
Figure 15 depicts the various rating criteria, in this case for alternatives dealing with transportation suggestions.
The trade names of the technological/operating transportation alternatives considered are not shown in order to
respect confidentiality. From Figure 15 it can be seen that Alternative 5 is the best decision, followed closely by the
others.
Eleven models were created, each serving a different analytical purpose. From these models, several lists were
generated, each outlining the best alternatives available. Figure 16 depicts an example of a sensitivity analysis
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showing how the weighting of each alternative changes by increasing the importance of the impact of the alternative
on advance rate. In this case, alternatives 2 and 3 now become the preferred decisions.
The component option breaks the priority bar down into individual groupings, to show how each criterion affects
the overall ranking of the alternatives. Several other sensitivity analyses were performed on this model, generating
in-depth results as to which alternatives were the preferable ones for achieving high advance rates underground.
This scenario examines the process to decide upon mine shaft location. Figure 17 depicts the layout of the model.
Each location had been thoroughly investigated, and a significant amount of data was available for each location.
It can be seen that five major decision criteria were used in selecting the final shaft location:
• vulnerability;
• location control;
• relationship to orebody;
• surface location.
In this case, the weighting of each of these criteria and their respective sub-criteria could be determined by input
from a team of professionals with experience in shaft location selection. From Figure 17, it can be seen that location
Figure 18 demonstrates yet another type of sensitivity analysis available with the software, the performance
sensitivity analysis. This is used to show how the alternatives are prioritized relative to other alternatives with
respect to each criterion, as well as overall. This shows why location A is superior with reference to each criterion.
Each of the vertical bars of Figure 18 corresponds to a decision criterion. The software enables it to be dragged
either larger or smaller to examine how the overall result is affected. From Figure 18, it can be seen that location A
is the optimum with regards to Vulnerability, Location Control and Relationship to Orebody. It ranks poorly,
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4.5 Mine Planning Risk Assessment
A more strategic level model was created to assess comparative risk in eight underground mining operations, based
on the nature and extent of likely ground-related problems. A methodology was adopted to capture the experience
and expertise of ground control specialists in structuring a decision-making model. When referring to the term
• life-threatening injuries;
• Formation of a team with the expertise and experience to provide expert input through a questionnaire survey;
In this study, four criteria were considered to influence ground-related problems in the mining operations under
consideration:
• ground conditions;
• workforce;
Each of these criteria comprises a set of detailed sub-categories. These were used to rate the risk to mine
production performance. The results for the mining operations considered are shown in Figure 19.
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Figure 20 shows the “two-dimensional” sensitivity analysis. This was used to examine two criteria at a time, in
this case ground conditions and workforce. The most favorable ratings in terms of ground conditions and workforce
Figure 21 summarizes a “head-to-head” sensitivity, in this case comparing the results of Mine B to Mine C. The
model provides a general risk analysis and indicates which aspects of mine planning warrant further examination in
5. Discussion
AHP experience in various mining scenarios indicates that constructing and refining a legitimate model layout and
structuring an appropriate questionnaire are critical to obtaining sensible and reliable results. It is important to
review and refine the decision model, so as to be certain that all key criteria and alternatives are included.
Consultation with available experts can optimize the structure of a model, and assure its completeness. Experienced
experts can also provide insight into the ranking or weights assigned to each of the criteria selected. Figure 22
shows a page from the rapid tunnelling model questionnaire, where the tunnelling alternatives were rated, based on
seven criteria. The results from these questionnaires were converted to a scale of 1 through 5 (1 being poorest (very
Figure 23 provides an example from the questionnaire that was created for the strategic mine design risk
assessment model. These questionnaires were used to capture the knowledge and experience of people with
expertise in the particular field. Experience from these studies prompts the following recommendations with respect
Questionnaire structure:
• discuss and review the questionnaire with participants prior to each being filled out;
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• long, repetitive questionnaires can cause fatigue and lack of focus for participants;
• a team approach where consensus is reached by the team in answering each question may be appropriate;
• confine the survey only to those who are considered experts in the relevant objective criteria being
considered;
• it is imperative that each participant is able to evaluate on a relative scale each alternative presented;
• for diverse questionnaires (e.g., technical, social, economic aspects) consider engaging different teams for
• the relationship between the criteria and the alternatives should be fully understood.
Ranking scale:
• structure the ranking consistently (e.g., good to bad) for all of the questions;
• it should be clarified that the ranking for each alternative is on a relative scale;
• in complex questionnaires that use both subjective and objective criteria that require different ranking scales
Weighting process:
• the weighting factors can be determined by the person(s) directly involved in the decision-making process
(e.g. management) who fully comprehend the significance of each of the criteria of a model;
• in certain cases, a consensus-building process among the input participants for the weighting factors should
be considered as an alternative;
• sensitivity analyses should be conducted in terms of the weighting factors prior to reaching a decision.
6. Conclusion
The AHP method proved to be an effective tool in modelling a wide range of mining scenarios, including selecting
alternatives, appraising the impact of a decision, performing project risk analysis, determining site selection and
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examining “what if” scenarios through sensitivity analyses. It enabled the capture of the experience and opinions of
Acknowledgements
The financial support provided through the Laurentian University Research Fund, INCO Ltd., Falconbridge Ltd. and
NSERC are gratefully acknowledged. The authors would also like to express their sincere gratitude to Mr. Edward
References
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225
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63-79
7. Forman, E.H., and Selly, M.A., (2001), Decision by Objective – How to Convince Others That You Are right, World
8. Gido, J. and J.P. Clements, (1999), Successful Project Management, South-Western College Publishing, pp. 50-54
9. Kazakidis, V.N. (2001), Operating Risk: Planning for Flexible Mining Systems, Ph.D. Thesis, University of British
10. Bilodeau, M.L., (1998), Mineral Project Evaluation Techniques and Applications, Professional Development Course Notes,
12. Dessureault, S. and M. Scoble, (2000), Capital Investment Appraisals for the Integration of New Technology into Mining
Systems, Transactions of the Inst. of Mining and Metallurgy, London, Vol 109, Jan-Apr. p A30-A40.
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13. Saaty, T. L., (1994), Fundamentals of Decision-making and Priority Theory with the Analytic Hierarchy Process, Vol. VI,
14. Saaty, T. L. and Vargas, L. G., (1994), Decision-making in Economics, Political and Social Technological Environments
15. Saaty, T. L., (1996), Decision-making for Leaders Volume II, AHP Series, RWS Publications, 315 p.
16. Ugo, J., (2002), Expert Choice 2000 Decision-making Process Software Overview, Expert Choice Inc., Pittsburg, PA.
17. Hoek, E., (2000), Practical Rock Engineering, Chapter 14 – Rockbolts and Cables,
www.rockscience.com/roc/Hoek/Hoeknotes2000.htm
18. Stillborg, B., (1986), Professional Users Handbook for Rock Bolting, Series on Rock and Soil Mechanics, Vol. 15, Trans
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Quebec, 120 p.
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List of Figures (in order they appear in text – 23 in total)
Fig. 4. Principles of an AHP decision problem for the selection of scooptram model type
Fig. 9. Hierarchical representation of the decision problem with six criteria and three alternatives12
Fig. 13. Input parameters used for the rockbolt system model
Fig. 16. Dynamic sensitivity analysis (with component option) on the transportation alternatives
Fig. 19. Rating criteria and scores for each mining operation
Fig. 20. Two-Dimensional sensitivity analysis examining ground conditions and workforce
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Problem Structuring Qualitative Problem Analysis
analysis
Define Identify Determine Make
the the the Evaluation the
problem alternatives criteria Decision
Quantitative
analysis
2
Fig. 1. Qualitative and quantitative analysis
12,13
Fig. 2. The mathematical process underlying AHP
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Unity: The AHP provides a single, easily understood, flexible
model for a wide range of unstructured problems
AHP
Tradeoffs: The AHP takes into Hierarchic Structuring: The AHP
consideration the relative priorities of reflects the natural tendency of the mind
factors in a system and enables people to sort elements of a system into
to select the best alternative based on different levels and to group like
their goals elements in each level
Synthesis: The AHP leads to an Measurement: The AHP provides a scale for
overall estimate to the desirability of measuring intangibles and a method for
each alternative establishing priorities
DECISION
CRITERIA
ALTERNATIVES
Fig. 4. Principles of an AHP decision problem for the selection of scooptram model type
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Fig. 5. Weighting of the decision criteria
Fig. 6. Weighting of the rating criteria and total scores (not normalized) for each of the three alternatives
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Fig. 7. Scores of the various scooptram alternatives
21
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Fig. 9. Hierarchical representation of the decision problem with six criteria and three alternatives
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Purchase Drill Technology <> Retrain Drill Workers
Fragmentation
Design
Safety
Blending
Cost
Culture
Weighted head to head between Purchase Drill Technology and Retrain Drill Workers
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Fig. 13. Input parameters used for the rockbolt system model
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Fig. 15. Rating criteria used to rate transportation alternatives
Fig. 16. Dynamic sensitivity analysis (with component option) on the transportation alternatives
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Fig. 17. Criteria and alternatives in the shaft location model
Location A
Location C
Location B
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Fig. 19. Rating criteria and scores for each mining operation
1: Mine B
2: Mine H
3: Mine C
4: Mine F
5: Mine E
6: Mine A
7: Mine G
8: Mine D
Fig. 20. Two-Dimensional sensitivity analysis examining ground conditions and workforce
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Mine B Mine C
DRILLING Suggestion 1:
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Fig. 23. Mine planning risk assessment questionnaire example
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