This work was presented at the INFORMS Annual Meeting 2017 in Houston, TX.
You can download the presentation Informs2017_talk.
An Efficient Frontier Analysis to Determinate Final Pit under Geological Uncertainty
Enrique Jélvez (Delphos Mine Planning Lab – AMTC – Department of Mining Engineering, University of Chile), Nelson Morales (Delphos Mine Planning Lab – AMTC – Department of Mining Engineering, University of Chile), Julián Ortiz (The Robert M. Buchan Department of Mining, Queen’s University)
The final pit problem consists of finding the set of blocks that maximizes the undiscounted value of exploitation subject to precedence constraints. Although there exist efficient algorithms to compute it in a deterministic setting, the information on which this decision is made is subject to uncertainty. In this work, we present a comparison of several options to calculate final pit, including geological uncertainty given by a number of conditional simulations. In particular, we develop a model that allows us to generate the efficient frontier of final pit alternatives in the expected return-risk context, when the risk is measured in terms of Conditional Value at Risk.