Direct block scheduling technology: Analysis of Avidity

Souza, Felipe Ribeiro; Burgarelli, Hudson Rodrigues; Nader, Alizeibek Saleimen; Ortiz, Carlos A.; Chaves, Leonardo Soares; Carvalho, Luiz Alberto; Torres, Vidal; Câmara, Taís Renata; Galéry, Roberto

doi:10.1590/0370-44672017710129

Cited by 8 publications

(5 citation statements)

References 4 publications

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“…Finally, a block model was used for an iron ore deposit, where the mineral reserve present was calculated. The proposed economic evaluation involves the final pit design by the Lerchs & Grossmann [20] method to determine the size of the reserve and mining sequencing using the data presented in Table 1.…”

Section: Financial Impact and Mine Planningmentioning

confidence: 99%

A model for quantification of environmental risk in mining ventures

Souza,

Mozart,

Silva

et al. 2024

Cad. Pedagógico

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The premature termination of industrial projects, often triggered by insufficient revenue generation to cover liabilities, poses a significant challenge in project evaluation. Although the conventional discounted cash flow (DCF) method remains widely used, its inability to account for project failure probabilities can lead to resource misallocation. This study aims to address this limitation by applying real options theory to assess the risk of premature abandonment within the context of a mineral extraction project. In this proposed system, fluctuations in environmental remediation costs are modelled by considering the cumulative probabilities of cost increases or decreases at each time step. The simulated project value reflects the cumulative activities required for mine closure, where each ton of extracted ore generates an environmental liability demanding remediation. Through the application of this system, the study demonstrates its effectiveness in identifying an escalating probability of project closure over time. Particularly, the findings reveal the existence of a critical threshold date. Beyond this date, any operational suspension exceeding one year renders project closure the economically optimal choice. This closure encompasses all necessary environmental restoration activities. By integrating real options theory into project evaluation, this study offers a more comprehensive approach to assessing the risk of premature project abandonment in mineral extraction projects. Through the consideration of fluctuating environmental remediation costs and the cumulative probabilities of project closure, it provides valuable insights for decision-making in project management and resource allocation. The trigger curve generated allowed for the identification of the viability threshold of the venture. Identifying the threshold to initiate the mining closure project.

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Section: Financial Impact and Mine Planningmentioning

confidence: 99%

A model for quantification of environmental risk in mining ventures

Souza,

Mozart,

Silva

et al. 2024

Cad. Pedagógico

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“…Torres et al [15] performed a review and comparison between classical, deterministic, and stochastic mining planning models, emphasizing the applicability, advantages, and disadvantages of each methodology. Souza et al [16] carried out studies on the property of block avidity, e.g., the effect of searching and mixing in advance the most profitable blocks to maximize the NPV. Comparative simulations were performed between the DBS and LG approaches.…”

Section: Improvements and Innovations In Integrated Optimization Appr...mentioning

confidence: 99%

A Case Study of Incorporating Variable Recovery and Specific Energy in Long-Term Open Pit Mining

Mata

Nader

Mazzinghy

2023

Mining

Self Cite

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Integrated Optimization can find optimized solutions for a project to define open pit and mine scheduling with greater reliability. This work aims to demonstrate how the insertion of geometallurgical variables can significantly change the financial return of a project. Two geometallurgical variables are considered in mine planning simulations. Specific energy corresponds to the energy consumed in the comminution of the ore, and process recovery measures the percentage of metal incorporated into the product. Three scenarios were developed considering an iron ore deposit. In the Base Case (BC) scenario, the recovery was fixed, and the specific energy of comminution was not considered. GeoMet1 considers the variable recovery varying for each block. GeoMet2 considered both recovery and specific energy as variables varying for each block. GeoMet1 and GeoMet2 presented Net Present Value (NPV), respectively, as 3.68% and 13.57% lower than the BC. This overestimation of the BC results can be viewed as an optimistic case of mine planning that is very common in the mining industry. These results show that the use of specific energy and recovery variables is fundamental to obtaining more reliable mine planning.

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“…Based on the system of the LG methodology, blocks are divided to achieve the proposed ore production; however, DBS is more reliable because it aims to extract the complete block only at a certain time. With its ability to put high-quality blocks into production first, DBS can predict the waste involved in accessing blocks with a higher economic value [24]. In summary, it shapes the pit by trying to reach the maximum nPV value for each period in the optimization.…”

Section: Assigning Economic Value To Blocksmentioning

confidence: 99%

Archives of Mining Sciences

2022

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Given that a source is located underground and detected by sounds that cannot be completely known or predicted, every stage of the operation from grade changes to product sales exhibits uncertainties. Parameters and constraints used in mining optimizations (sales price, costs, efficiency, etc.) comprise uncertainties. In this research, chrome open-pit resource optimization activities were performed in the province of Adana, Turkey. Metallurgical recovery, which is considered a constant as an optimization parameter in mining software, has been optimized as a variable based on fixed and variable values related to the waste material grade of processing. Based on scenario number 7, which yields the highest net present value in both optimizations, this difference corresponds with an additional $1.4 million, i.e., 7% minimum. When the number of products sold were compared, a difference of 25,977 tons of concentrate production was noted (Optimization II produces less than Optimization I). In summary, concentrated efficiency and economic findings show that using variable metallurgical recovery parameters in nPV estimation improves optimization success by reducing the level of uncertainty.

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Direct block scheduling technology: Analysis of Avidity

Cited by 8 publications

References 4 publications

A model for quantification of environmental risk in mining ventures

A model for quantification of environmental risk in mining ventures

A Case Study of Incorporating Variable Recovery and Specific Energy in Long-Term Open Pit Mining

Archives of Mining Sciences

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