Simultaneous stochastic optimization of mining complexes - mineral value chains: an overview of concepts, examples and comparisons

Abstract

This paper overviews the simultaneous stochastic optimisation of mining complexes or mineral value chains where raw materials mined from mineral deposits in an area are transformed into a set of sellable products. The supply of materials extracted from available mines represents a major source of uncertainty and technical risk that needs to be managed, along with market demand. An overview of the main concepts, case studies and comparisons show how the approach manages risk and capitalises on synergies between the components of the mining complex and major differences from conventional methods. Results lead to strategic plans with larger amounts of metal produced from the same mineral resources, a substantially improved ability for operations to meet production forecasts, and a significantly higher net present value.