Incorporating geo-metallurgical information into mine production scheduling

Abstract

Economic characterization of mining parcels depends upon geo-metallurgical properties, which vary throughout orebody. Mine production scheduling should aim to obtain maximum utility from orebody in such a way as to ensure mine–mill reconciliation. As heterogeneity of geo-metallurgical variables increases, the scheduling will be a very complicated task. Geo-metallurgical and financial data used in the mine production scheduling are based on simulation and/or estimation generated from sparse drilling and unknown future events. Therefore, the scheduling process involves a significant degree of uncertainty. In order to deal with the uncertainty stemmed from geo-metallurgical and financial variables, two approaches are recommended in this paper. Firstly, mine production scheduling is formulated as a problem of stochastic programming with recourse. The extraction periods of mining blocks are treated as the first-stage variables and the block destinations represents a recourse vector. It is observed that the solution is implicitly robust. Secondly, the scheduling is expressed as a maximin problem to extract more uniform metal quantity in periods to coincide with mill requirements instead of maximization of net present value because the blending constraint in the traditional approach forces more uniform production. In the case where there is correlation between grade and geo-metallurgical variables, this model generates reasonably good results.