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Examining system configuration in an open pit mine design

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  • Groeneveld, Benjamin
  • Topal, Erkan
  • Leenders, Bob

Abstract

Current industry practice aims to develop mine designs with a fixed system configuration for a single set of inputs; without regard for uncertainty. Uncertainty is a key element of mining which causes variability in the inputs to the decision making process. Various sources of uncertainty exist in mining projects which may stem from volatility in commodity prices, unknown geological conditions, variable costs or unpredictable productivities. Design approaches that attempt to leverage this uncertainty are proposed and compared in this paper; namely, flexible, robust and operational designs. An analysis of these system configurations reveal that a flexible system configuration generates more value than a robust system configuration, which in turn generates more value than a fixed system configuration. However, a flexible system configuration cannot be practically implemented due to constant change. A robust configuration provides a solution where change can be handled and the analysis of the flexible system configuration provides an optimal frontier (value potential) to compare alternatives. An operational system configuration can be generated by analysing the system configurations generated by flexible and robust design. This paper uses a case study to develop and compare these modelling methodologies and proposes an operational system configuration; as a best fit.

Suggested Citation

  • Groeneveld, Benjamin & Topal, Erkan & Leenders, Bob, 2019. "Examining system configuration in an open pit mine design," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    • Handle: RePEc:eee:jrpoli:v:63:y:2019:i:c:s030142071830504x
    DOI: 10.1016/j.resourpol.2019.101438
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    Citations

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    Cited by:

    1. Das, Ranajit & Topal, Erkan & Mardaneh, Elham, 2023. "A review of open pit mine and waste dump schedule planning," Resources Policy, Elsevier, vol. 85(PA).
    2. Yıldız, Taşkın Deniz, 2022. "Considering the recent increase in license fees in Turkey, how can the negative effect of the fees on the mining operating costs be reduced?," Resources Policy, Elsevier, vol. 77(C).
    3. Manoj Kumar Mohanty & Padma Charan Mishra & Alaka Samantaray, 2023. "The Relationship of Critical Success Factors of the Mineral Industry: A Study on India," Vision, , vol. 27(1), pages 119-134, February.
    4. Yıldız, Taşkın Deniz, 2022. "Supervisor fund expectation for the guarantee of salaries in the presence of the effect of permanent supervisor salaries on mining operating costs in Turkey," Resources Policy, Elsevier, vol. 77(C).
    5. Yıldız, Taşkın Deniz, 2023. "Changes in the salaries of mining engineers as they obtain managerial and OHS specialist positions in Turkey: By what criteria can salaries be increased?," Resources Policy, Elsevier, vol. 84(C).

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