Evaluation of the impact of commodity price change on mine plan of underground mining

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dc.contributor.authorSalama, Abubakary Juma
dc.contributor.authorNehring, Micah
dc.contributor.authorGreberg, Jenny
dc.date.accessioned2016-04-01T16:38:55Z
dc.date.available2016-04-01T16:38:55Z
dc.date.issued2015-04-15
dc.descriptionpaper published on International Journal of Mining Science and Technologyen_US
dc.descriptionFull text can be accessed at the following link http://www.sciencedirect.com/science/article/pii/S2095268615000506
dc.description.abstractFluctuations in commodity prices should influence mining operations to continually update and adjust their mine plans in order to capture additional value under new market conditions. One of the adjustments is the change in production sequencing. This paper seeks to present a method for quantifying the net present value (NPV) that may be directly attributed to the change in commodity prices. The evaluation is conducted across ten copper price scenarios. Discrete event simulation combined with mixed integer programming was used to attain a viable production strategy and to generate optimal mine plans. The analysis indicates that an increase in prices results in an increased in the NPV from $96.57M to $755.65M. In an environment where mining operations must be striving to gain as much value as possible from the rights to exploit a finite resource, it is not appropriate to keep operating under the same mine plan if commodity prices alter during the course of operations.en_US
dc.description.sponsorshipI2Mine project within the EU 7th framework programmeen_US
dc.identifier.doihttp://dx.doi.org/10.1016/j.ijmst.2015.03.008
dc.identifier.urihttp://hdl.handle.net/123456789/1410
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofseries;25
dc.subjectMine planning,Underground mining,Commodity price, Discrete event simulation,Mixed integer programmingen_US
dc.titleEvaluation of the impact of commodity price change on mine plan of underground miningen_US
dc.typeJournal Articleen_US
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