Decision support for fleet allocation and contract renegotiation in contracted open-pit mine blasting operations

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2 Scopus citations

Abstract

In the current copper mining scenario, where prices are decreasing and pits are larger, there is a pressing need for increasing operational productivity. This is particularly important for mining contractors, who are constantly facing the additional pressure of obsolescence if they are not able to provide cost-savings for mine owners. In this paper, we deal with operational efficiency for blasting operations in open-pit mine sites, and propose a framework for minimizing truck allocation costs with hazardous materials based on mathematical programming. Apart from reducing operational costs, the proposed research allows contractors to re-negotiate contracts with mine owners. An integrated model for blasting operation is proposed, taking into account multiple owners with various open pits, each one of them having multiple blasting grids. The main methodological contribution is the inclusion of specially tailored constraints for modelling the blending requirements for the on-delivery production of the explosives, an important aspect given the hazardous nature of the chemical compounds that are transported. The proposed framework was implemented by a Chilean contractor, leading to savings up to 15% of the total operational costs and allowing better tactical decisions, as contract renegotiation or fleet design.

Original languageEnglish
Pages (from-to)59-69
Number of pages11
JournalInternational Journal of Production Economics
Volume204
DOIs
StatePublished - Oct 2018

Bibliographical note

Funding Information:
The authors would like to thank the students Romina Lavarello, María Teresa Iriarte, and Matías Rivera for their valuable work on this project, and Javier Durán from ENAEX for providing the necessary information for this research. The first author was supported by CONICYT-Chile , FONDECYT-Chile project 11160320 , while the second was supported by CONICYT-Chile , FONDECYT-Chile project 1160738 . This research was partially funded by the Complex Engineering Systems Institute, ISCI ( ICM-FIC: P05-004-F , CONICYT-Chile: FB0816 ).

Funding Information:
The authors would like to thank the students Romina Lavarello, María Teresa Iriarte, and Matías Rivera for their valuable work on this project, and Javier Durán from ENAEX for providing the necessary information for this research. The first author was supported by CONICYT-Chile, FONDECYT-Chile project 11160320, while the second was supported by CONICYT-Chile, FONDECYT-Chile project 1160738. This research was partially funded by the Complex Engineering Systems Institute, ISCI (ICM-FIC: P05-004-F, CONICYT-Chile: FB0816).

Publisher Copyright:
© 2018

Keywords

  • Explosives transportation
  • Fleet allocation
  • Hazardous material
  • Open-pit mining

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