Search

Optimizing final pit limits for stochastic models provides access to geologic and economic uncertainty in the pit-optimization stages of a mining project. This paper presents an approach for optimizing final pit limits concurrently over all realizations in a stochastic model and using a risk-management framework to manage the geologic and economic uncertainty. A heuristic pit optimizer is used to find multiple uncertaintyrated pit shells. These uncertainty-rated pit shells follow the mean-variance criterion to approximate the efficient frontier for final pit limits. Stochastic dominance rules are then used in a risk-management framework to further eliminate suboptimal solutions along the efficient frontier. This results in a smaller set of final pit shells that can be further analyzed for production scheduling. Additionally, the original solutions are analyzed for changes in the mining limits, and two regions are targeted as potential regions for further exploration. [ABSTRACT FROM AUTHOR]