Simulation Modeling of an Iron Ore Operation to Enable Informed Planning

An iron ore mining company, operating in Western Australia, trucks ore from three geographi¬cally isolated sources to a crusher, where it is blended before and during crushing. The company prides itself on its key performance indicator: the relatively low inter-shipment grade variability of its products. The company has been considering alternative production process designs for all stages from mining to ship loading to improve efficiency and reduce costs. Currently product grade variability is well controlled and it is important not to jeopardize the companyʹs reputation for grade reliability. However, the company needs to identify potential efficiencies, reduced costs, and alternative product control systems for potential future expansions. Many process design op¬tions from mine face to ship loading must be compared and evaluated, with emphasis on main¬taining or improving on current grade variability in final shipments. Pilot studies are infeasible, while complex interactions, competing goals, and numerous system configurations make theoreti¬cal analysis unmanageable. Real system trials require strong prior probability of success, particu¬larly where product variability to customers is concerned