Uncertainty Representation Method for Open Pit Optimization Results Due to Variation in Mineral Prices

This study proposes a new method to quantitatively represent the uncertainty existing in open pit optimization results due to variations in mineral prices. After generating multiple mineral prices using Monte Carlo simulation with data on past mineral prices, a probability model that represents the...

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Bibliographic Details
Published in:Minerals (Basel) 2016-02, Vol.6 (1), p.17
Main Authors: Baek, Jieun, Choi, Yosoon, Park, Han-su
Format: Article
Language:English
Subjects:
Monte Carlo simulation
open pit optimization
ore reserve estimation
revenue factor
uncertainty
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Summary:This study proposes a new method to quantitatively represent the uncertainty existing in open pit optimization results due to variations in mineral prices. After generating multiple mineral prices using Monte Carlo simulation with data on past mineral prices, a probability model that represents the uncertainty was developed by integrating multiple open pit optimization results derived from the mineral prices. The results of applying the proposed method to the copper-zinc deposits showed that significant uncertainty exists in open pit optimization results due to the variation in copper prices. It was also found that the method has a potential as a tool for classifying the estimation results of ore reserve based on confidence level.
ISSN:2075-163X
2075-163X
DOI:10.3390/min6010017