Simulation of production processes and associated costs in mining using the Monte-Carlo method
DOI:
https://doi.org/10.17159/Abstract
The application of the Monte-Carlo technique to production planning and every day economic decision making in mine management is demonstrated in this paper. The logic is detailed along the example of underground production with continuous miners and truck haulage. It is argued that most variables pertaining production may be well represented by binomial probability distributions. The probabilistic model is implemented in a standard spreadsheet application with Palisade’s @Risk add-on to facilitate simulations. Starting from model calibration against data obtained from a mine’s annual reports, some general interdependencies of availability, utilization, productivity, and costs of production processes are outlined. Finally, several possible options and their consequences to improve production are exploredDownloads
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Copyright (c) 2024 Markus Mathey
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