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Simultaneous stochastic optimization of production sequence and dynamic cut-off grades in an open pit mining operation

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  • Paithankar, Amol
  • Chatterjee, Snehamoy
  • Goodfellow, Ryan
  • Asad, Mohammad Waqar Ali

Abstract

An open pit mining operation is a complex system that constitutes several components or processes. An optimal production sequence that defines timing of extraction and a dynamic cut-off grade policy that defines the supply of materials from sources to destinations within the system are crucial to the success of an operation. In current practice, separate sequencing and cut-off grade models achieve these important milestones as part of strategic planning. This paper presents a mathematical model that derives the optimal extraction sequence and cut-off grade policy simultaneously considering grade uncertainty and stockpiling. A framework of genetic, maximum flow and cut-off grade algorithms solves this complex non-linear problem. An application of the method at realistic copper and gold mining operations reveals the value (up to 29% increase in discounted value) of stockpiling as well as risk quantification under uncertainty.

Suggested Citation

  • Paithankar, Amol & Chatterjee, Snehamoy & Goodfellow, Ryan & Asad, Mohammad Waqar Ali, 2020. "Simultaneous stochastic optimization of production sequence and dynamic cut-off grades in an open pit mining operation," Resources Policy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s0301420719309559
    DOI: 10.1016/j.resourpol.2020.101634
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    2. Paithankar, Amol & Chatterjee, Snehamoy & Goodfellow, Ryan, 2021. "Open-pit mining complex optimization under uncertainty with integrated cut-off grade based destination policies," Resources Policy, Elsevier, vol. 70(C).
    3. Armstrong, Margaret & Lagos, Tomas & Emery, Xavier & Homem-de-Mello, Tito & Lagos, Guido & Sauré, Denis, 2021. "Adaptive open-pit mining planning under geological uncertainty," Resources Policy, Elsevier, vol. 72(C).
    4. Biswas, Pritam & Sinha, Rabindra Kumar & Sen, Phalguni, 2023. "A review of state-of-the-art techniques for the determination of the optimum cut-off grade of a metalliferous deposit with a bibliometric mapping in a surface mine planning context," Resources Policy, Elsevier, vol. 83(C).
    5. Khan, Asif & Asad, Mohammad Waqar Ali, 2021. "A mixed integer programming based cut-off grade model for open-pit mining of complex poly-metallic resources," Resources Policy, Elsevier, vol. 72(C).
    6. Kloeckner, Jonas & Alves, João Lucas O. & Silva, Flavio H.T. & Guimaraes, Octavio R.A. & Bassani, Marcel A.A. & Costa, Joao Felipe C.L., 2021. "Application of risk assessment to improve sustainability in bauxite mining," Resources Policy, Elsevier, vol. 74(C).

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