Simulation and optimization approach for uncertainty-based short-term planning in open pit mines

Accuracy in predictions leads to better planning with a minimum of opportunity lost. In open pit mining, the complexity of operations, coupled with a highly uncertain and dynamic production environment, limit the accuracy of predictions and force a reactive planning approach to mitigate deviations from original plans. A simulation optimization framework/tool is presented in this paper to account for uncertainties in mining operations for robust short-term production planning and proactive decision making. This framework/tool uses a discrete event simulation model of mine operations, which interacts with a goal-programming based mine operational optimization tool to develop an uncertainty based short-term schedule. Using scenario analysis, this framework allows the planner to make proactive decisions to achieve the mine’s operational and long-term objectives. This paper details the development of simulation and optimization models and presents the implementation of the framework on an iron ore mine case study for verification through scenario analysis. Keywords: Scheduling, Simulation optimization, Short-term planning, Mine operational planning, Truck-shovel allocatio