Using MIP for strategic life-of-mine planning of the lead/zinc stream at Mount Isa Mines

Lead-zinc production at MIM, Mount Isa includes three mines, a lead concentrator, zinc filter plant and lead refinery. Lead production is vertically integrated with lead-silver bullion shipped from Australia to London for refining. Zinc is sold as a concentrate. All three mines have reached varying states of maturity mining a multitude of orebodies having significant variation in grades and metallurgical recovery for three metals. Based on current levels of measured resources, the remaining project life is at least ten years. The objective is to schedule production over the life of all three mines so as to maximize the present value of the complex. Additional scheduling complexity arises out of the implementation of long-term schedules, capital expansion projects for both mining and processing, the presence of substantial inferred reserves and interactions with MIM copper production. A large-scale, time-dynamic, life-of-complex Mixed Integer Program (MIP) production schedule was formulated to optimize lead/zinc cash flow based on a detailed life of project production scheduling study. The requirements for such a study are detailed herein. The operational feasibility of the MIP solution is compared against a non-optimal approach to strategic life-of-mine scheduling. The strategic planning emphasis placed on the MIP is compared to the implementation of a life-of-mine schedules at Mount Isa using spreadsheets and other popular commercial mine schedulers.