Conference Proceedings
Orebody Modelling and Strategic Mine Planning SMP 2014
Conference Proceedings
Orebody Modelling and Strategic Mine Planning SMP 2014
Life of Asset Planning, Uncertainty and Value Optimisation of the Iron Ore Business - From Exploration, to Market, to Closure
Long-term strategic planning at BHP Billiton's Western Australia Iron Ore business aims for sustainable value maximisation of its large, long-life, low-cost, expandable mineral inventory and supply chain infrastructure. While mine plans are key components of this value equation, this objective requires a whole-of-business approach through comprehensive consideration and optimisation of the full value chain. Only through a system view do we believe that the value proposition of a set of plans is truly optimised.The fundamental considerations include: mineral inventory information, given its intrinsic uncertainty and risk/knowledge horizon a marketing view of future quality premium/discount based on overall market quality load whole of supply chain optimisation on a throughput accounting basis alternative sequences of capital decisions closure costs with significant magnitude of total movement requiring optimisation as part of the plan._x000D_
In addition, the plan provides a view of acceptable uncertainty levels at different times in the future.BHP Billiton Iron Ore uses a structured Life of Asset planning process that supports the business with the optimisation of its maximum value proposition through a non-deterministic scenario-based optimisation approach on an annual basis. This is a key input to each year's medium-term plans and budgets, including activities identified through a value of information approach that resolve the key uncertainties and steadily improve confidence in the plan.CITATION:McCluskey, J and Barros, N, 2014. Life of asset planning, uncertainty and value optimisation of the iron ore business - from exploration, to market, to closure, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 33-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).
In addition, the plan provides a view of acceptable uncertainty levels at different times in the future.BHP Billiton Iron Ore uses a structured Life of Asset planning process that supports the business with the optimisation of its maximum value proposition through a non-deterministic scenario-based optimisation approach on an annual basis. This is a key input to each year's medium-term plans and budgets, including activities identified through a value of information approach that resolve the key uncertainties and steadily improve confidence in the plan.CITATION:McCluskey, J and Barros, N, 2014. Life of asset planning, uncertainty and value optimisation of the iron ore business - from exploration, to market, to closure, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 33-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).
Contributor(s):
J McCluskey, N Barros
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- Published: 2014
- PDF Size: 3.697 Mb.
- Unique ID: P201413005