1. Long Range Mine Planning Using Mathematical Programming Terry C. Jackson Maiden Creek Consulting, LLC

3. Allows you to optimize an objective function such as

4. Maximize profit

5. Minimize cash flow

6. …while satisfying several types of constraints such as

7. Meeting quality parameters

8. Meeting demand requirements

11. The objective function selected is to minimize the Net Present Value of the total mining cost over the 20 year period, while assuring that the tons required based on demand are met and that the property total reserve is not exceeded.

13. Long Range Mine Planning Using Mathematical Programming The cash flow is discounted 10% each year, effectively forcing the mining of the cheaper properties as early as feasible. (Blue cell is minimized)

14. Long Range Mine Planning Using Mathematical Programming Importantly, the average annual quality specifications are met in each year:

18. The objective function could be to minimize the variation of quality parameters from a target value (multiple qualities are given weights and an overall quality function is used)

19. If cost leveling over the period is desired, you can minimize the variation in the year-to-year cost from the average value.

20. The impact of potential changes in the specifications on reserve usage can be studied.

21. Each property could be expanded into multiple cuts or pits allowing optimized selection of areas within a property to meet overall demand.