An application of simultaneous stochastic optimisation on an open-pit copper mining complex with supply, recovery, and market uncertainties

Abstract

A mining complex is an integrated value chain that consists of multiple mines, stockpiles, processors, waste dumps, and tailing facilities, and where the in-situ materials mined are transformed into products sold to customers. Simultaneous stochastic optimisation provides a strategic mine planning framework that incorporates all components of a mining complex into a single mathematical representation, capitalising on the synergies between components while considering uncertainty. An application of this optimisation framework at a coper mining complex demonstrates that the incorporation of material supply, market demand, and processing recovery uncertainties into the modelling leads to production schedules that yield a higher NPV and metal recovery.