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Production schedule optimization using linear programming concept in Minesight 3D for a multi-pit coal mine in Indonesia
Aristien, Hafidha Dwi Putri
Aristien, Hafidha Dwi Putri
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2022
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2023-09-30
Abstract
Mine planning and production scheduling is the foundation from which optimal solutions are generated for the extraction of material while satisfying various constraints. The main purpose of this paper is to maximize the net present value (NPV) of an open-pit coal mine project.
The entire modeling and simulation process of this study uses commercial mine planning software MineSight 3D from Hexagon Mining. In an open-pit coal mine, instead of modeling the deposit using a gridded seam file which provides irregular vertical block sizes, this paper generates a 3D block model with the required regularly sized block in all directions, allowing implementation of the ultimate pit optimization concept.
Compared to the mineral deposit model, which classifies whole blocks as waste or ore based on cut-off grades, coal deposit can have both waste and coal within blocks at the coal-rock interfaces; therefore, ORE% item representing portion of coal is assigned into each block as the critical item to calculate block economy. The ultimate pits developed represent which block to extract, followed by selecting pushbacks produced by varying coal prices to get sufficient increment volumes between phases.
After that, this paper presents a generated production schedule that follows a linear program algorithm to maximize NPV. It also will comply with operational constraints such as coal production capacity, level and phase precedence, reserve constraints and waste volume constraints to balance production volumes between years.
A case study will also be presented involving a currently operating open-pit coal mine in Indonesia; it concluded the mine plan optimization with a better NPV than current operational scenarios, producing a 64% higher coal reserve than current operation for all mining areas. It also results in an increase of US$571 million net present value (NPV) for the whole project, and an 17.5% incremental rate of return (IRR).
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