Open-pit copper mine at dusk with an AI block-model overlay
A&M Perspective for Discussion

Accelerating value creation with AI-enabled integrated mine planning

Compressing months of scenario analysis into days — so Freeport can test more options, decide faster, and capture more value across its operations.

Prepared for Freeport-McMoRan In partnership with AiMinr Alvarez & Marsal · I&CP
A word from our Engagement Lead

Introduction from David Reese

A short introduction to this perspective and how AI-enabled integrated planning can create value at Freeport.

David Reese
Video intro · coming soon David Reese Managing Director · Engagement Lead · Toronto

A personal video introduction from David will be embedded here shortly.

Executive Summary

The planning challenge — and our recommendation

  • Freeport is facing increasing operational planning challenges. The company is producing more copper through leaching, and its large operations at Grasberg (Indonesia) and Morenci (Arizona) are becoming more complex.
  • Today, analysing a new operating scenario or the effect of a change to the mine plan can take a specialist team months. That slows decisions and limits how many options can be tested — reducing potential value creation.
  • Freeport would like to know how AI-supported planning could shorten that time and lead to better decisions, and has asked A&M for our view.
  • A&M often partners with leading-edge firms to deliver better technology solutions. Such firms rely on A&M to drive client change and adoption — not just technical implementation — and to ensure the outcomes and value are realised.
  • AiMinr offers strong AI-supported planning and scenario analysis. They are an A&M solution partner and are already in discussions with Freeport staff.
Our recommendation

Bring the conversations together — and pilot

We recommend bringing the existing AiMinr–Freeport conversations together and, as a next step:

  1. Convene A&M, AiMinr and Freeport around one shared view.
  2. Select a real Freeport mine-planning challenge.
  3. Run a focused pilot — proving speed, rigour and value on live data.
Why partner, not build

Partnering with selected leading technology and AI companies gives our clients better solutions, faster

Better technology, faster

Specialists invest continuously, so clients get the leading edge now.

Independence

We recommend what fits the problem — not what we built.

Pace of AI change

We adopt advances as they mature, with no ageing in-house tools.

Focus on our strengths

Our teams apply judgment and resources where it counts — delivering outcomes.

How we partner

Best-in-class toolsMatched to the need.
Faster time to valueAnd lower delivery risk.
Client-outcome drivenTechnology choices follow the outcome.
Stays currentA team that evolves as AI evolves.
Integrated Mine Planning Blueprint

A well-defined integrated planning process breaks down silos and drives value — but can be complex and time-consuming

AiMinr enhances value creation across most planning elements and accelerates the feedback loops between Execution and Planning. Hover any element below; strength of fit is colour-coded.

Strong fit Moderate fit Limited fit Source: AiMinr; A&M analysis
How AiMinr works

A block model becomes a complete, documented mine study in under an hour — and reruns whenever anything changes

One connected project model: block model, geotechnical, engineering constraints, resources, cost and market assumptions. Change one or many parameters anywhere, and everything else updates.

AiMinr turns a block model into a complete, documented mine study: INPUTS (block model, geotech) feeding six connected workflow modules — Mine Plan, Schedule, Estimate, Financial, Processing, Project Docs — on one connected project model
Engineers set the strategy and sign off; AiMinr does all the rework.  Example: copper price falls 10% → minable shapes update → a new design and schedule are generated → estimate, financials and processing update → final documents are rewritten.
AI-driven planningAI orchestrates the workflow and searches scenarios.
Deterministic engineeringPit shells, stopes and schedules come from proven algorithms — not generative AI.
Engineer supervisedTechnical teams set strategy, review and sign off every study.
< 55 minOne scenario = one complete project study, end to end.
Hundreds of scenariosNot the two or three a manual study allows.
NPV-maximising grade & rateRead straight off one value surface.
Every scenario a full studyEngineered, consistent and documented.
Value & velocity

Closing planning loops with velocity: complex re-planning in days or hours, not months

Today
  • Loops run on quarterly or annual budget cycles.
  • Complex scenarios can take months to model and analyse.
  • Re-plans are costly and manual, so plans drift between cycles.
  • Tactical planning produces a single case for sign-off.
With AiMinr
  • One connected model from block model to plan, cost and value.
  • Re-plans are event-triggered and completed in days or hours.
  • Several modelled / costed scenarios are compared before committing.
  • Schedule Review & Commitment becomes a real decision gate.
01

Rolling tactical re-plans

Monthly or event-triggered re-plans replace waiting for the budget cycle — triggered by reconciliation variance, a geotechnical event, a productivity shift or a price/cost move.

Loop closed: Execution → Tactical Planning
02

Tactical planning as a decision process

Planners bring scenarios and trade-offs (e.g. three sequencing options and their value impact). Leadership commits to the best option.

Loop closed: Tactical → Business Planning
03

Value lens in operational reviews

Execution variances — positive and negative — are translated into LoA and NPV impact, linking site performance directly to the value-creation plan.

Loop closed: Execution → Strategy

AI-supported integrated planning is about massively compressing cycle time, enhancing value, and improving connectivity across the organisation and planning horizons — while scaling from a single asset to the whole portfolio on one consistent set of assumptions.

One portfolio, one basis: every asset re-ranks when the price deck changes

Change the price deck once and every asset re-runs its full study on the new assumptions — so growth, sustaining and expansion projects compete on the same engineered basis, not on who built the best spreadsheet.

NPV by asset under three price decks ($M, illustrative). Source: AiMinr; A&M analysis.

Change Management & Adoption

Technical implementation builds the capability — adoption converts it into value

Our approach to change is built on simple, proven elements from decades of operational transformation execution.

1

Change Management & Adoption

Engage the whole organisation with a compelling vision and purpose, building momentum.

2

Rapid, Visible Value Creation

Drive value — safety, risk, production, cost, sustainability — to prove the new operating model.

3

Highly Structured Learning Journeys

Embed new mindsets, capabilities and routines in frontline leaders and employees.

4

Systems Design & Effectiveness

Enhanced systems that drive accountability, urgency and focus on what matters.

5

Changing Mindsets

Influence culture and mindsets by changing underlying beliefs.

6

Executive & Management Coaching

Strengthen leadership skills and alignment with frontline programmes.

Implementation

Builds the technical capability for change

Technology, tools, business processes and architecture to make the operating model operational — on-time, on-budget delivery with processes functioning as designed.

Ownership: central team / PMO / TMO, senior sponsors.

Adoption

Converts technical potential into business results — where ROI is realised

People, behaviours, capabilities and cultural readiness to embed the solution into daily operations — sustained usage, capability uplift and realised benefits.

Ownership: line organisation — leaders at all levels.

Selected Case Studies

Proof from the field

A&M engagements across the mining value chain — the kind of value AI-enabled planning is built to unlock faster.

Life-of-operation NPV

Optimising LoOP NPV for an existing operation

A large multi-pit and underground operation faced rising costs and evolving constraints eroding margins. We built a rigorous base case, identified the shifting bottleneck over time, released constraints and stress-tested scenarios to secure the preferred capital plan.
+US$360MProjected LoOP NPV uplift
+US$123MFurther opportunities identified
Integrated planning & scenarios

Metallurgical coal — integrated LoOP update

A diversified group's underground met-coal business re-baselined to actuals, embedded a new ventilation standard (~30 km added development + a shaft), co-created nine scenarios and evaluated them with leadership through structured voting.
US$1.6BRisk-adjusted NPV established
8 of 9Recommendations endorsed
Short-term planning & execution

From static plans to live plan compliance

A large open-pit operation with ~40% plan compliance and no feedback loops. We installed a cascading Management Operating System — LOM through 12-week, 10-day and daily/shift plans — with weekly and daily meetings, frontline tools and improved drill & blast accuracy.
+35 ptsPlan compliance (~40%→~75%)
99%Mine call factor
-40%Strip ratio from peak
Portfolio cost & throughput

Multi-site cost & throughput diagnostic

A rapid, multi-site diagnostic across assets on several continents — mining & maintenance, process & engineering, SG&A & sustaining capex, and the cost management operating system — to improve AISC and site-level cost ownership.
+US$1.1BTotal value opportunity
~US$253MDirect opex reduction
~US$733MProduction uplift / fixed-cost dilution
Project value optimisation

US$3 billion capex reduction and 7.5× NPV uplift for a large ore deposit

A prefeasibility study showed only marginal returns at ~US$9bn capex. We rigorously identified and verified trade-offs across the value chain — optimised mining ramp-up and ore mix, right-sized the project, shifted the end product from concentrate to higher-grade pellets, and cut logistics cost and risk.
7.5×NPV increase (65% IRR increase)
-US$3bnCapex reduction (>30%)
-25%Opex reduction
Lower riskSmaller initial mine, faster to market
The Team

Deep operational expertise — click any profile

A&M's Infrastructure & Capital Projects leaders, alongside our AiMinr solution partners. Select a card to view full background and relevant experience.

Alvarez & Marsal
Solution Partners — AiMinr
Next step

Let's explore a pilot on a real Freeport planning challenge

Bring the A&M, AiMinr and Freeport conversations together, select a live mine-planning problem, and prove the speed, rigour and value on your own data.