Abstract
A two-stage stochastic mixed integer non-linear program is formulated for a mining complex to optimize strategic and tactical plans. The objective is to find the near optimal decisions for a mineral supply chain in the context with uncertainties in both ore supply and the commodity market (price and demand). The endogenous spot price in the commodity market and long-term sales contracts are considered in the formulation of the mining complex’s optimization model and an ad hoc heuristic is developed to deal with the throughput- and head-grade-dependent recovery rate in processing plants. Numerical results indicate that the proposed heuristic is effective and efficient in numerical tests. Based on the proposed model and heuristic, a long-term contract design strategy is proposed for making decisions on the contract price and strategic investments. A shadow price based method is also proposed to evaluate the existing mining schedule.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
