DEMIN - Departamento de Engenharia de Minas

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Optimum mine production rate based on price uncertainty.
(2019) Souza, Felipe Ribeiro; Câmara, Taís Renata; Torres, Vidal Félix Navarro; Nader, Beck; Galery, Roberto
The production rate of a mining operation has an important effect on the opera- tional cycle and gross profit, which are often evaluated based on engineering practices. Assessment of the economic performance of mine operations in mining engineering is of great importance because an incorrect production rate can result in significant financial losses. The production rate is composed of two bases: the cost estimation and the price scenario. Bureau of Mines studies performed on American mines indicated that processing costs can be estimated through the production rate. This article pro- poses to connect the model presented by the Bureau of Mines and queuing theory to describe the operational costs, which are used to develop a production optimization methodology. The proposed cost composition describes a production system to verify the law of diminishing returns and the economy of scale. Between these regions of the production curve, the optimum point was determined with mathematical precision.