Production Scheduling Optimisation in a Nickel Laterite Deposit:MIP and LP Applications and Infeasibility in the Presence of Orebody Variability

Optimisation and mathematical formulations for open pit design and long-term production scheduling have been available since the 1960s. There are two main concerns in the application of existing mixed integer programming (MIP) models in open pit mines: a. the feasibility of generating both optimal solutions and practically mineable scheduling patterns and b. the inability to deal with in situ variability in orebodies and account for uncertainty. In dealing with these issues, a general open pit production scheduling method for multi-element deposits is presented and subsequently used to optimise the long-term production schedule in a nickel laterite deposit. The application shows the weaknesses of MIP formulations in terms of generating optimal solutions as well as practically feasible mining patterns. The application of the same formulation in the presence of in situ orebody variability and uncertainty uncovers a major reason for deviations of scheduled production from actual production, and outlines additional limits of traditional optimisation formulations as well as future needs.