Technical Note: Optimizing Location Of Mining Facilities

Over the past four years, the Coal Research Bureau of West Virginia University has presented a number of papers on operations research in the coal industry before various AIME meetings and meetings of other societies. These papers have been followed up by further presentations in the technical press. The emphasis of all of these papers has been to demonstrate applications of operations research to the solution of numerous types of coal industry problems. In each case, effort has been made to demonstrate that operations research does not require extensive knowledge of computer science or use of sophisticated higher mathematics. In fact, for most applications, satisfactory results can be obtained by a single individual in a minimum of time with no aids other than a pencil and paper and a knowledge of basic arithmetic. The most recent efforts by the Coal Research Bureau have been directed toward the continuing industry problem of optimizing the location of mining facilities. Preliminary work in this area was presented before the Central Appalachian Section of AIME and subsequently published in the May, 1972, issue of Coal Age. This initial presentation illustrated techniques for determining optimum locations of facilities based upon material transport effort under the assumption of constant cost per ton mile of haulage effort. The present paper will expand upon this earlier work and introduce economic factors. In the design of a mine or mining system, careful consideration must be given to the sites selected for each element of the system. Optimum placement of facilities is vital to minimize capital and operating cost. Thus, barring unfavorable geological conditions or other exceptional factors, facilities should be located at those points which represent the minimum cumulative cost over the life of the property. Most cost factors are independent, or essentially independent of the location of fixed facilities. Thus, for example, regardless of the location of the shaft, the direct cost to mine any given ton of coal is essentially constant. The major 1