Using Mathematics To Maximize The Value Of Open-Pit Mines

Grant number: LP0348907

Abstract

Mineral resources are one of Australia's greatest assets. Their effective management will bring substantial long-term benefits to the Australian economy. Planning the exploitation of a mineral resource is a highly complex task. Current methods are approximate, and do not fully consider two critical issues: (1) ore mined at different times must be blended to achieve saleable product and (2) resource markets may not evolve as predicted. In this project we shall develop creative mathematical solutions to maximise the expected net present value of mines with far greater accuracy, taking into account blending and the uncertain nature of future demand.