Download or read book Dynamic Simultaneous Optimization of Mineral Value Chains Under Resource Uncertainty written by Maria Del Castillo Suarez and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "Mining complexes are mineral value chains where extracted material from different mines is transformed into sellable products through a set of processing streams. This value chain is governed by uncertainties at different levels, from the geological attributes of the orebody at the mine(s), to the different operational and processing components that lead the sellable products to the market. Stochastic simultaneous optimization formulations for industrial mining complexes have proven to be effective in generating reliable strategic plans that maximize net present value and, at the same time, manage and reduce risk. However, because of the uncertainties governing a mining complex, particularly the ones related to the geological attributes which define the supply of the system, it has become a priority to integrate flexibility mechanisms that allow a mining project to change and adapt as more information becomes available. Within this adaptability, optimizing the investment timing of high-magnitude capital expenditures throughout the life-of-mine is a priority, due to their high impact on the annual cash-flows and on their effects over the physical mining schedule. Additionally, to improve a mining complex's ability to meet production targets and overall performance, advanced mechanisms should be developed to ensure complex blending constraints are met, managing the geometallurgical variables of the deposit.This thesis presents a methodology to embed flexibility into mineral value chains, by allowing the strategic mine plan of a mining complex to dynamically consider possible options and alternatives for reacting and adapting to future changes. For this, first, a study on extraction capacity optimization is presented, followed by the development of a mechanism to deal with complex variables of the deposit to meet blending constraints and production targets. These two components are later integrated into a dynamic optimization model, which optimizes the mining complex's mine plan under geological uncertainty, integrating flexible investment alternatives, as well as operational modes.The dynamic model developed produces a unique initial extraction sequence, while keeping a viable flexible long-term plan for future investment decisions, as may be needed. The flexible long-term plan is obtained through a dynamic optimization which allows making transitioning plans upfront to facilitate change. This method introduces a new adapted multistage stochastic programming model which expands upon the two-stage framework by performing multiple recourse stages that are solved iteratively, allowing parallel designs to be generated in a scenario-tree structure. In this model, dynamic decisions over capital expenditures are made sequentially over time, based on information that becomes available over production time. The above model is subsequently extended to include alternatives over operating modes at different levels of the mineral value chain. More specifically, optimal operating modes are chosen per period, selecting blasting patterns at the mine, and processing relations of throughput and recovery at the plant. The practical implications of the proposed method are demonstrated through an application over a copper-gold mining complex, where the dynamic model presents a 10.5% increase in net present value compared to a traditional two-stage stochastic formulation.The dynamic mining complex formulation proposed is able to include flexibility into the optimization of the strategic plan of a mineral value chain. This enables possible developments within the feasible set of alternatives that can be taken, considering the mining complex's configuration, capacities, and constraints. The proposed model is able to generate feasible, operational schedules, while providing a wider view of the mining complex's performance, easing the transition to possible changes due to the periodic unveiling of uncertainty." --