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Optimizing mining complexes with multiple processing and transportation alternatives: An uncertainty-based approach

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  • Montiel, Luis
  • Dimitrakopoulos, Roussos

Abstract

Mining complexes contain multiple sequential activities that are strongly interrelated. Extracting the material from different sources may be seen as the first main activity, and any change in the sequence of extraction of the mining blocks modify the activities downstream, including blending, processing and transporting the processed material to final stocks or ports. Similarly, modifying the conditions of operation at a given processing path or the transportation systems implemented may affect the suitability of using a mining sequence previously optimized. This paper presents a method to generate mining, processing and transportation schedules that account for the previously mentioned activities (or stages) associated with the mining complex simultaneously. The method uses an initial solution generated using conventional optimizers and improves it by mean of perturbations associated to three different levels of decision: block based perturbations, operating alternative based perturbations and transportation system based perturbation. The method accounts for geological uncertainty of several deposits by considering scenarios originated from combinations of their respective stochastic orebody simulations. The implementation of the method in a multipit copper operation shows its ability to reduce deviations from capacity and blending targets while improving the expected NPV (cumulative discounted cash flows), which highlight the importance of stochastic optimizers given their ability to generate more value with less risk.

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  • Montiel, Luis & Dimitrakopoulos, Roussos, 2015. "Optimizing mining complexes with multiple processing and transportation alternatives: An uncertainty-based approach," European Journal of Operational Research, Elsevier, vol. 247(1), pages 166-178.
    • Handle: RePEc:eee:ejores:v:247:y:2015:i:1:p:166-178
    DOI: 10.1016/j.ejor.2015.05.002
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    1. Ulrich Faigle & Walter Kern, 1994. "Computational Complexity of Some Maximum Average Weight Problems with Precedence Constraints," Operations Research, INFORMS, vol. 42(4), pages 688-693, August.
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    Cited by:

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    11. Lorenzo Reus & Mathias Belbèze & Hans Feddersen & Enrique Rubio, 2018. "Extraction Planning Under Capacity Uncertainty at the Chuquicamata Underground Mine," Interfaces, INFORMS, vol. 48(6), pages 543-555, November.
    12. Savolainen, Jyrki, 2016. "Real options in metal mining project valuation: Review of literature," Resources Policy, Elsevier, vol. 50(C), pages 49-65.
    13. Moreno, Eduardo & Rezakhah, Mojtaba & Newman, Alexandra & Ferreira, Felipe, 2017. "Linear models for stockpiling in open-pit mine production scheduling problems," European Journal of Operational Research, Elsevier, vol. 260(1), pages 212-221.
    14. Zhang, Jian & Dimitrakopoulos, Roussos G., 2017. "A dynamic-material-value-based decomposition method for optimizing a mineral value chain with uncertainty," European Journal of Operational Research, Elsevier, vol. 258(2), pages 617-625.
    15. Cinna Seifi & Marco Schulze & Jürgen Zimmermann, 2021. "Solution procedures for block selection and sequencing in flat-bedded potash underground mines," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(2), pages 409-440, June.
    16. Chaowasakoo, Patarawan & Seppälä, Heikki & Koivo, Heikki & Zhou, Quan, 2017. "Improving fleet management in mines: The benefit of heterogeneous match factor," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1052-1065.
    17. Del Castillo, M. Fernanda & Dimitrakopoulos, Roussos, 2019. "Dynamically optimizing the strategic plan of mining complexes under supply uncertainty," Resources Policy, Elsevier, vol. 60(C), pages 83-93.
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    19. Yingyu Gu & Guoqing Li & Jie Hou & Chunchao Fan & Xingbang Qiang & Bin Bai & Yongfang Zhang, 2023. "Production Strategy Optimization of Integrated Exploitation for Multiple Deposits Considering Carbon Quota," Sustainability, MDPI, vol. 15(4), pages 1-17, February.

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