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Insights from our peer-reviewed journal | Compiled by Megan Skrip - 29 June 2026
How choosing processing over raw sales halves surface damage while doubling net value
Simulating open-pit design optimization prior to excavation is essential not only for planning operations but also for identifying important economic and environmental trade-offs, according to this research. The study compared expected ore volumes, profit and landscape impacts for a nickel laterite mine in Indonesia, considering whether to sell raw nickel ore or process it into ferronickel before sale.
While the pit design for selling raw nickel ore would yield more than twice the volume of ore, the study showed that processing the ore first would produce nearly double the net value and also require a deeper, rather than broader, optimized pit shell that prioritized high-grade ore and the removal of more overburden to reach it. The deeper, narrower pit would reduce surface disturbance but would also require additional considerations for managing slope instability and water flow.
“The main message of our paper is that in nickel mining, extracting more material does not always mean creating more value,” said lead author and Institut Teknologi Bandung doctoral student Muhammad Rizki Aflahul Muzhidin. “By comparing ore sales and ferronickel production, our study shows that early mine design decisions can help companies balance economic returns with more responsible use of mineral resources and environmental considerations.”
Study co-authors (from left) Muhammad Rizki Aflahul Muzhidin and Tri Karian. Courtesy of Muhammad Rizki
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