Download or read book A Study of Simultaneous Stochastic Optimization of Open Pit Mining Complexes written by Ziad Saliba and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "Over the last several years advances in the field of mine planning have led to the development of cutting-edge simultaneous stochastic optimization frameworks for mining complexes. The latest methods consider mining operations as a resource-to-market integrated mineral value that transforms raw in-situ materials into sellable products, a mining complex. Simultaneous stochastic optimization frameworks make use of a paradigm shift that considers the value of the sellable products, as opposed to economic block values, to drive the optimization process and capitalize on the synergies between the central, interrelated components of a mining complex. These methods maximize the value of mining operations and manage technical risk by incorporating uncertainty directly into unified optimization formulations. This thesis studies the simultaneous stochastic optimization framework through two real-world case studies, applying the methods and assessing their characteristics and limitations. The second chapter of this thesis presents an application of a stochastic framework that simultaneously optimizes mining, destination and processing decisions for a multi-pit, multi-processor gold mining complex with challenging geochemical processing constraints. The framework accounts for supply and market uncertainty via stochastic orebody and commodity price simulations as inputs to a unified optimization model. The case study notably assesses the impacts of integrating market uncertainty as input that influences all components of the production schedule. Additionally, cut-off grade decisions are determined by the simultaneous optimization process, considering material variability and operating constraints while reducing the number of a-priori decisions to be made. This approach generates solutions that capitalize on the synergies between extraction sequencing, cut-off grade optimization, blending and processing while managing and quantifying risk in strategic plans. Which ultimately leads to more metal production and higher NPVs than traditional methods. The third chapter applies an extension of the generalized simultaneous stochastic optimization formulation that considers capital expenditure (CapEx) options as part of the life-of-asset planning process. Enabling the case study to consider environmental issues relating to tailings management and model a tailings facility expansion. The application at a multi-element open pit mining complex simultaneously optimizes the extraction sequence, cut-off grades, and downstream decisions from two open-pits with a set of stockpiling options, an autoclave and a tailings storage facility. The project bottleneck is the tailings facility volume because it stores both process tails, and potentially acid-generating waste rock from the mines. Results show that, when given the option, the optimizer chooses to make a significant CapEx investment to expand the tailings storage facility 25% by volume. This expansion allows for a meaningful expansion of both pit limits, 40% by mass, resulting in an extended metal production and revenue generation horizon that yields 14% more gold ounces and a 4% improvement in NPV for the mining complex. The framework provides decision makers with a realistic evaluation of the investment's impact on the mining complex." --