The Application of Stochastic Mine Production Scheduling in the Presence of Geological Uncertainty

The scheduling of open-pit mine production is a large-scale, mixed-integer linear programming problem that is computationally expensive. The purpose of this study is to create a computationally efficient algorithm for solving open-pit production scheduling problems with uncertain geological parameters. To demonstrate the effectiveness of the proposed research, a case study of an Indian iron ore mine is presented. Multiple realizations of the resource models were developed and integrated within the stochastic production scheduling framework to capture uncertainty and incorporate it into the mine plan. In this case study, two hybrid methods were developed to evaluate their performance. Model 1 is a combined branch and cut with the longest path, whereas Model 2 is a sequential parametric maximum flow and branch and cut. The results show that both methods produce similar materials, ore, metal, and risk profiles; however, Model 2 generates slightly more (4 percent) discounted cash flow from this study mine than Model 1. The results also show that Model 2's computational time is 46.64 percent less than that of Model 1.