Stochastic Production Scheduling – Solution through Langrangian Relaxation with the Branch-and-cut Algorithm

The production scheduling of an open pit mine determines the optimal extraction sequencing that significantly impacts a mine’s life as well as net present value. The optimisation of production scheduling of large open pit mines with geological uncertainty is a computationally very intensive process. In this paper, an approximation algorithm is proposed to schedule an open pit mine, where instead of solving the whole problem at once, the production schedule is generated by sequentially solving subproblems. The subgradient method is used to generate the upper bound solution of the Lagrangian relaxed subproblem. If the upper bound relaxed algorithm is not a feasible solution, a mixed integer programming is solved on the generated upper-bound solution. An application at a copper mine with an orebody represented by 16 532 mining blocks is presented using the proposed algorithm. Results show that all constraints are satisfied. The net present values are also calculated and results reveal an 11 per cent higher net present value (NPV) is generated when compared to the NPV generated when the same approach is applied to the deterministic model of the deposit where uncertainty is not accounted for.CITATION:Chatterjee, S, 2014. Stochastic production scheduling – solution through Langrangian relaxation with the branch-and-cut algorithm, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 323–328 (The Australasian Institute of Mining and Metallurgy: Melbourne).