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4. Block Sequencing

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Claude babacar sambou
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7 views

4. Block Sequencing

Uploaded by

Claude babacar sambou
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Block Sequencing

Block sequencing
• Block sequencing is a decision making
problem and focuses on timing on extraction
of blocks under slope (access or precedence)
and capacity contraints

• Determination of extraction sequence of


blocks in a time base in such a way as to
maximize NPV of mining venture
Time value of money

• The idea that money available at the present


time is worth more than the same amount in
the future due to its potential earning
capacity.
Opportunity cost
• In calculation of time value of money, we use the
discount rate

• In most of time, interest rate is used as a


discount rate

• In fact, discount rate is opportunity cost of


capital
Opportunity cost

• Opportunity cost is the profit foregone by


taking one course of action when another
would have yielded a higher value.
Opportunity cost
• In mining investment decision, you would
have at least two options:
– Investing mining venture
– Investing risk-free instrument such as government
bonds
Accessibility

$19000 $22000 $17500

Which block will you select to extract first?


Precedence (access) constraint (Open pit)
Steps
1. Create a 3D block model
2. Using drill-hole data, estimate/simulate each block
3. Apply a cut-off and identify each block as ore or waste
4. Depending upon block identification (i.e. ore or waste),
calculate economic value of blocks
5. Use a block sequencing method, determine extraction
time of each block
Solution approaches to the sequencing
• There are three main solution approaches:
1. Heuristics
Moving (floating) cones and Korobov
2. Techniques based on graph theory/network
flows
Combination of ultimate pit algorithm algorithm (mostly
Lerchs and Grossmann)- nested pits - pushback design –
sequencing approach
3. Mixed integer programming
Block sequencing

1 2 3 4 3 2
4 1

A Discount rate is 10% B

Period Profit Discount PV ($) Period Profit Discount PV ($)


1 400 0.909 363.6 1 100 0.909 90.9
2 300 0.826 247.8 2 200 0.826 165.2
3 200 0.751 150.2 3 300 0.751 225.3
4 100 0.683 68.3 4 400 0.683 273.2
NPV 829.9 NPV 754.6
Techniques based on graph theory/network
flows
- Using an ultimate pit limit techniques (e.g. Lerchs and
Grosmann, maximum flow or moving cones), nested pits
are generated.
- In this process, price is usually parameterized.
- Nested pits cannot be used as production periods because
of gap problem.
- Since there are no capacity constraints in ultimate pit limits
problems, the size of nested pits cannot be controlled. The
size difference between nested pits is known as gap
problem.
- Therefore, nested pits are unified such that capacities and
the specified production periods are obeyed.
- However, ULP based approaches are used for block sequencing.
- Ore price is parameterized. In other words, price is slightly decreased
in such a way as to obtain smaller pit.
- When this process is repeated, nested pits are generated. These are
used for generate block sequence by adjusting/unifying pits.
Ultimate limit problem (ULP)
V

Maximize
2𝑥1 + 1𝑥2 +2𝑥3 −2𝑥4 +1𝑥5 + 3𝑥6 + 2𝑥7 − 2𝑥8 − 1𝑥9 − 3𝑥10+1𝑥11
−2𝑥12 + 6𝑥13 − 1𝑥14 + 2𝑥15

Subject to
𝑥6 ≥ 𝑥1 𝑎𝑛𝑑 𝑥6 ≥ 𝑥2
𝑥7 ≥ 𝑥1 𝑎𝑛𝑑 𝑥7 ≥ 𝑥2 and 𝑥7 ≥ 𝑥3
𝑥8 ≥ 𝑥2 𝑎𝑛𝑑 𝑥8 ≥ 𝑥3 and 𝑥8 ≥ 𝑥4
.
.
𝑥15 ≥ 𝑥9 𝑎𝑛𝑑 𝑥15 ≥ 𝑥10

𝑥1 = 0 𝑜𝑟 𝑥1 =1, 𝑥2 = 0 𝑜𝑟 𝑥2 =1, …, 𝑥15 = 0 𝑜𝑟 𝑥15 =1


Ultimate limit problem
• ULP itself is not a significant problem because
• Time values of blocks are ignored. Block economic values are instead of net
present value of blocks
• There is no control over capacities. Therefore, gap problem is experienced.
• When new drilling campaign is implemented over time, pit limits can be
expanded.
• As financial parameters fluctuate, pit limit cannot be fixed.
Nested pits

http://scialert.net/fulltext/?doi=jas.2008.4512.4522
Ultimate pit limit problem
Sevim and Lei, 1987
• Sevim, H., D. Lei. 1998. The problem of production planning in open
pit mines. Infor. Systems Oper. Res. (INFOR) J. 36(1–2) 1–12.
• Dowd, P.A. (1994) The optimal design of quarries. in Whateley, M.K.
and Harvey, P.K. (eds), Mineral Resource Evaluation II: methods and
case histories. Geological Society Special Publication No. 79, 139 –
153.

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