Print Page Print
Add to my calendar iCalGoogle Calendar

Mining Eng Seminar: Analysis of Open Pit Mine Production Scheduling under Commodity Price Uncertainty

2017-09-06 4:00pm

Commodity price uncertainty is one of the largest risk factors when considering a mining project. The unpredictable     revenue streams resultant from price uncertainty may result in a fatal outcome for a project or a highly favorable one. To mitigate the high level of risk and attempting to capitalize on the upside potential associated with developing a project in these conditions; the quantification of risk with respect to commodity price uncertainty has been approached through multiple methods each of which, however, approximates a fundamental detail. Conventional methods for the incorporation of price uncertainty consider a fixed price throughout the life of mine to generate mine plans. Without changing the initial plan, multiple NPVs are generated based on stochastic price forecasts.   However, the mine plan is a function of commodity price; therefore the price change per year needs to be included in the optimization process. The proposed study aims to examine the effects on project economics of generating the mine plan for each price realization and to   illuminate the differences compared to the conventional approach.

Presented by: Marko Visnjic

Wednesday, September 6th

4 pm - 5 pm

Brown Building 125