Schedule Optimisation

Runs
Introduction to Process
Alexey Tsoy
Agenda

• Traditional approaches to optimisation and scheduling

• Proposed approach
• Input parameters

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How do we optimise

• Block model, processing parameters, cost parameters are subjected to Lerchs

Grossman algorithm

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Source: The Canadian Mining and Metallurgical Bulletin for January, 1965, Montreal
Lerchs-Grossman

Source: The Canadian Mining and Metallurgical Bulletin for January, 1965, Montreal
Scheduling

Let’s add pushbacks (using revenue factor approach)

Period 1 2 3 4
Profit $ 56.00 $ 36.00 $ 12.00 $ 4.00
NPV (10%) $ 92.41
Blocks mined 6 10 9 11
-4 -4 -4 -4 8 12 12 0 -4 -4 -4 -4 -4 -4 -4
-4 -4 -4 -4 0 12 12 8 -4 -4 -4 -4 -4 -4 -4
-4 -4 -4 -4 -4 8 12 12 0 -4 -4 -4 -4 -4 -4
-4 -4 -4 -4 -4 0 12 12 8 -4 -4 -4 -4 -4 -4
-4 -4 -4 -4 -4 -4 8 12 12 0 -4 -4 -4 -4 -4
-4 -4 -4 -4 -4 -4 0 12 12 8 -4 -4 -4 -4 -4
-4 -4 -4 -4 -4 -4 -4 8 12 12 0 -4 -4 -4 -4
-4 -4 -4 -4 -4 -4 -4 0 12 12 8 -4 -4 -4 -4
Source: The Canadian Mining and Metallurgical Bulletin for January, 1965, Montreal

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 Drawbacks

• Ultimate pit and push-backs do not take into account throughput limitations
and time to process, and other constraints as well as time value of money
• Partially solved by follow on short and medium term scheduling
• But in real life examples number of schedule scenarios is huge (may exceed 100
million)
• Time consuming so scenario analysis is limited
• Throughput for different parts is calculated in different units. For example,
mining is in tons while comminution is in energy units
• Complex constraints are usually not taken into account in optimisation
process (for example, when there’re limits on oxide and sulphide feeds that
need to be obeyed simultaneously)
• This is being addressed in short term scheduling process but is not done strategic
schedule level
Proposed approach

• Use specialised software to run strategic schedule optimisation with focus on NPV
maximisation
• Available information is assigned in the block model for each block
• Ore properties
• Processing parameters
• Geotechnical parameters
• Mining and processing economics
• The software allows to setup several limiting parameters based on the counters in block
model
• We can set periods to years (by default), but potentially to smaller increments (not
recommended)
• Parameters will be coded into the block model as either economic values or
constraint counts
• Then the model will be used to run scheduling in order to achieve maximum NPV
Result

Mining schedule focused on maximising NPV that takes into account

- Several processing streams
- Examples: Separate streams for oxide and sulphide Cu, or for free and refractory gold
- Change in cost structure for the processing circuit
- Example: Introduction over time of different/additional crushing facility
- Change in cost of transportation in time
- Example: Introduction of a conveyor belt over time to some parts of the operation
- Limitations on crushing capacity of the plant.
- Example: BWI can be factored in into the model and limits set on this parameter
- Limitation on oxide material to the plant feed
- Examples:
- For Au – limiting (In some cases oxide material improves performance of the plant until
a certain threshold after which its impact becomes detrimental to the processing
efficiency)
- For Cu – limiting oxidation of feed to flotation
- Historic stockpiles as a source for blending material
- Other constraints and cost and revenue factors
Examples (Cu with 2 separate processes)

Right pit returns NPV that is 50% higher

• Each block was assigned with

• The pit shell was created
using Lerchs Grossman
algorithm
• Scheduling was done using
push backs with different
revenue factors
economic parameters based on
mining, comminution and enrichment
details
• Pit optimisation and scheduling were
done simultaneously using constraints
in each process
• Result is a schedule with mining
sequence optimised for maximum NPV
Limitations of the approach

• The schedule generated is a long term strategic schedule

• The schedule is a guideline for better mining and processing
sequencing to achieve maximum NPV
• Resulting schedule requires further validation and design
work in conventional mining software packages
• For detailed planning
• For public reporting
• NPV numbers in the software are estimations only and
do not include fixed costs and do not take into account
some practical mining constraints
What will be required

• Regularised block model with waste blocks.

• Given the task of optimising the schedule for 3 deposits they should be in the same block
model but should have a marking field so that costs can be assigned respectively
• Geothech parameters coded into the model
• Mining cost and depth factor
• Maximum rate of vertical advance
• Stockpile rehandling cost
• Processing recoveries – preferably detailed formulas
• Processing costs
• BWI
• Constraints – mining, processing, geotechnical (including limiting surfaces)