Consideration for Multiobjective Metaheuristic Optimisation of Large Iron Ore and Coal Supply Chains, from Resource to Market

Dynamic market and operating conditions, coupled with an environment in which multiple objectives and trade-offs are common, pose major challenges for planners and schedulers working in any mining entity. Many mining companies recognise the need to shift from a siloed mining-focused push model to an integrated value chain, demand-driven approach, but there are still fundamental barriers in business process and the supporting technology preventing a consideration of end-to-end optimality.This paper presents some elements of experiences working with companies to adopt such advanced approaches. In addition to algorithmic elements, an approach to phased and gradual deployment of progressively more sophisticated optimisation models is described. From a practical software adoption perspective, it is believed that this last concern is also of primary importance. Next generation approaches to the optimisation of complex bulk commodity demand chains, namely iron ore and coal are presented, with case studies in the world’s largest integrated operations in Western Australia and Queensland from the raw material mined through to market. Utilising accurate simulation models supported by metaheuristic optimisation techniques, a range of ways to engineer a dynamic decision support framework that can adapt and change with the inevitable changes in commodity markets is explored. Objectives such as total revenue, margin, cost, NPV, throughput, asset utilisation, contractual penalties and bonuses, and energy consumption can be managed simultaneously across the mine, plant, logistics network, port operation, shipping and sales domains.CITATION:Balzary, J and Mohais, A, 2014. Consideration for multiobjective metaheuristic optimisation of large iron ore and coal supply chains, from resource to market, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 213–222 (The Australasian Institute of Mining and Metallurgy: Melbourne).