ABSTRACT
The strategic decisions to exploit a mineral deposit extending from the surface to great depth are essential to the financial and sustainability benefits of any mining project. Mining option strategies for resource extraction include: (a) independent open pit mining; (b) independent underground mining with crown pillar; (c) simultaneous open pit and underground mining with crown pillar; (d) sequential open pit and underground mining with crown pillar; and e) combinations of (c) and (d). This research investigates the extraction strategy that maximizes the Net Present Value (NPV) of a resource using a Mixed Integer Linear Programming (MILP) optimization framework. The MILP model determines the best extraction strategy for a given ore body and further determines the mining and processing schedule, positioning of the required crown pillar, and the schedule for underground capital and operational developments. The model is implemented for a synthetic copper case study.
