MiningMath

MiningMath

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Get the NPV upper bound better than the Best Case scenario!

Best Case

Author: Mima 409 views

Super Best Case: Get The NPV Upper Bound

In the search for the upside potential for the NPV of a given project, this setup explores the whole solution space without any other constraints but processing capacities, in a global multi-period optimization fully focused on maximizing the project’s discounted cashflow.

As MiningMath optimizes all periods simultaneously, without the need for revenue factors, it has the potential to find higher NPVs than traditional procedures based on LG/Pseudoflow nested pits, which do not account for processing capacities (gap problems), cutoff policy optimization and discount rate. Traditionally, these, and many other, real-life aspects are only accounted for later, through a stepwise process, limiting the potentials of the project.

This setup serves as a reference to challenge the Best Case obtained by other means, including more recent academic/commercial DBS technologies available. The block periods and destinations optimized by MiningMath could be imported back into your preferred mining package, for comparison, pushback design or scheduling purposes. This is all available for free!

Example:

  • Processing capacity: 10 Mt per year.

  • Stockpiling parameters on.

  • Timeframe: Years (1).

Figure 3: Production constraints

Advanced experience and refinements

It is important to mention that if you have multiple destinations, extra processing, or dump routes, it could be added for proper cutoff optimization. Besides that, the surfaces obtained here could be used in further steps or imported back into any mining package for pushback design and scheduling.

A refinement of the best case could be done by adding more constraints, preferably one at the time to evaluate each impact in “reserves”, potential conflicts between them, and so on. You can try to follow the suggestions below for this improvement:

  • All blending constraints

  • All restrict mining aspects due to forbidden areas

  • Extra processing or dump routes for proper cutoff optimization

  • Sum variables (with caution), just in case some aspect must be controlled for the whole LOM at once.

  • In case more efficiency is needed, the resulting surface obtained in the Constraints Validation step could be used as restrict mining for the runs here.

These scenarios might take longer and the main recommendation is to use powerful machine to run it, in parallel, while other optimizations are performed.

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