Probabilistic practical optimization of production scheduling for multi-element deposits

Optimizing production scheduling in open pit mines is important for managing cash flows of mining operations. This paper describes a new, probabilistic, mixed integer programming (MIP) formulation which has been developed to minimize the risk of not achieving planned production targets, in terms of metal production and ore tonnage feed for the mill during production, while considering maximization of total discounted economic value. The new MIP model also recognizes that to minimize movement of excavators over long distances and accommodate equipment access, the blocks scheduled for mining within a period cannot be spread too widely. The model is applied to a laterite nickel-cobalt deposit, as an example of multi-element deposits that have complex ore quality constraints. The results show that the proposed model generates feasible schedules. When compared with traditional optimization techniques, the new model is superior in terms of minimizing the risk of not meeting production targets, especially at the early stages of production, and in terms of generating practical scheduling patterns.