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A unique approach to maximizing NPV

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Updated on November 18, 2024

Bottleneck Analysis

Estimated reading: 2 minutes 671 views

Bottleneck Analysis involves generating scenarios to conduct extensive searches for solutions with fewer violations while preserving NPV, keeping geometries, optimizing mining operations, and reducing risks. This allows for the discovery of more efficient and sustainable solutions that meet specific constraints and needs of the mine.

In Bottleneck Analysis, after analyzing a desirable scenario it is possible to identify the constraint/s with demanding requirements that directly impact the optimization results and cause significant violation issues. Then, scenarios should be created by relaxing these demanding parameters, enabling users to make decisions to mitigate risks and ensure project viability.

Example

Dataset: Preinstalled Marvin deposit. It can also be downloaded here.

Consider the base scenario overview and the respective report on the dump production. Note how the first period has violated the 30Mt constraint.

A Bottleneck Analysis can help us identifying the constraint/s with demanding requirements that directly impact the optimization results and cause the violation in the dump production. Four different scenarios are built using a decision tree to analyze different values for dump production limits, minimum average of CU and vertical rate of advance.

Note: To decide which parameters need to be changed, you can consider the contraint priority order that MiningMath employs in order to always deliver a solution. However, adjustments usually depend on the unique characteristics of each project and the flexibility available to modify its requirements.

Base scenario for Bottleneck Analysis using the Marvin dataset
Decision Tree for Bottleneck Analysis using the Marvin dataset

The graphs below depict a comparative analysis of the results for the scenarios in the decision tree.

Cumulative NPV for Bottleneck Analysis using the Marvin dataset
Production dump for Bottleneck Analysis using the Marvin dataset
Production process for Bottleneck Analysis using the Marvin dataset

This analysis shows that the minimum average constraint of CU, production dump and vertical rate of advance are all restricting the base scenario. When relaxing these parameters, there is an increase of approximately 5% in the cumulative NPV, while the dump productions are kept within their limits and the process productions are closer to the target for some scenarios.

Workflow - Previous NPV Enhancement Next - Workflow Multivariate Sensitivity Analysis

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