Dynamic Control Of An Operating Mine

This paper describes a model of operating policies in an underground metal mine. The purpose of the model is partly that the problem of controlling a mining operation in the face of shocks from its economic environment is interesting in its own right, and also as an input to a larger research project on policy-making in mining companies. The model includes, mining, development and milling sectors together with cash flow and finances. In particular, it shows how the policies used to control the various sectors in the face of environmental shocks from metal prices and changing state of the system are connected by feedback loops. The use of feedback theory differentiates the model from 'ordinary' simulation and assists in the design of 'robust' policies which always achieve effective control. This model is the first stage of a major project and approximations have been made, simply to get the model going. The purpose of this paper is to show the kind of output this type of model produces, to lay our explicitly what is in the model and above all, to invite contributions from mining people on what the model should show and what should be put into it. We claim no virtues for this model. It is just a research tool so that later models will be more worthwhile and useable in practice.