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A Multi-Stage Methodology for Long-Term Open-Pit Mine Production Planning under Ore Grade Uncertainty

Author

Listed:
  • Enrique Jelvez

    (Advanced Mining Technology Center, Delphos Mine Planning Laboratory & Department of Mining Engineering, Universidad de Chile, Santiago 8370448, Chile)

  • Julian Ortiz

    (The Robert M. Buchan Department of Mining, Queen’s University, Kingston, ON K7L 3N6, Canada)

  • Nelson Morales Varela

    (Département de Génies Civil, Géologique et des Mines, Polytechnique Montréal, Montréal, QC H3T 1J4, Canada)

  • Hooman Askari-Nasab

    (Department of Civil and Environmental Engineering, University of Alberta, Edmonton, AB T6G 1H9, Canada)

  • Gonzalo Nelis

    (Research and Innovation in Mining Group (RIMG), DIMM—Universidad Técnica Federico Santa María, Av. Vicuña Mackena 3939, San Joaquín, Santiago 8940897, Chile)

Abstract

The strategic planning of open pit operations defines the best strategy for extraction of the mineral deposit to maximize the net present value. The process of strategic planning must deal with several sources of uncertainty; therefore, many authors have proposed models to incorporate it at each of its stages: Computation of the ultimate pit, optimization of pushbacks, and production scheduling. However, most works address it at each level independently, with few aiming at the whole process. In this work, we propose a methodology based on new mathematical optimization models and the application of conditional simulation of the deposit for addressing the geological uncertainty at all stages. We test the method in a real case study and evaluate whether incorporating uncertainty increases the quality of the solutions. Moreover, we benefit from our integrated framework to evaluate the relative impact of uncertainty at each stage. This could be used by decision-makers as a guide for detecting risks and focusing efforts.

Suggested Citation

  • Enrique Jelvez & Julian Ortiz & Nelson Morales Varela & Hooman Askari-Nasab & Gonzalo Nelis, 2023. "A Multi-Stage Methodology for Long-Term Open-Pit Mine Production Planning under Ore Grade Uncertainty," Mathematics, MDPI, vol. 11(18), pages 1-19, September.
  • Handle: RePEc:gam:jmathe:v:11:y:2023:i:18:p:3907-:d:1239815
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    References listed on IDEAS

    as
    1. 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).
    2. Enrique Jelvez & Nelson Morales & Julian M. Ortiz, 2021. "Stochastic Final Pit Limits: An Efficient Frontier Analysis under Geological Uncertainty in the Open-Pit Mining Industry," Mathematics, MDPI, vol. 10(1), pages 1-16, December.
    3. Mai, Ngoc Luan & Topal, Erkan & Erten, Oktay & Sommerville, Bruce, 2019. "A new risk-based optimisation method for the iron ore production scheduling using stochastic integer programming," Resources Policy, Elsevier, vol. 62(C), pages 571-579.
    4. Zeng, Lanyan & Liu, Shi Qiang & Kozan, Erhan & Corry, Paul & Masoud, Mahmoud, 2021. "A comprehensive interdisciplinary review of mine supply chain management," Resources Policy, Elsevier, vol. 74(C).
    5. Daniel Espinoza & Marcos Goycoolea & Eduardo Moreno & Alexandra Newman, 2013. "MineLib: a library of open pit mining problems," Annals of Operations Research, Springer, vol. 206(1), pages 93-114, July.
    6. Lamghari, Amina & Dimitrakopoulos, Roussos, 2016. "Progressive hedging applied as a metaheuristic to schedule production in open-pit mines accounting for reserve uncertainty," European Journal of Operational Research, Elsevier, vol. 253(3), pages 843-855.
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