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The Optimisation Problem

A mine wanted to investigate whether changes to ROM stockpile capacities would allow for a higher margin for their operation. Often the operation was forced to sell products that exceeded quality requirements thereby destroying value. There were limited options to change the mining schedule creating other challenges known only to the client.

Site technical services believed that some stockpiling of selected materials might alleviate the issue. They wanted to understand:

• how large the stockpile capacity needed to be, and

• whether benefits could be achieved from changes in stockpile definitions

The decision to stockpile ROM was to be balanced against rehandle costs. Additionally, some materials could not be stockpiled for long periods due to rapid negative changes in material attributes (oxidation and maximum fluidity).


BlendOpt was used to run a range of scenarios evaluating different supply chain conditions.

The Value Unlocked for our Client

BlendOpt can function as a versatile coal management software application, and as a result of BlendOpt actionable insights, the client implemented a moderate change in stock capacity along with several changes in stockpile definitions and improved 12 month forecast revenue by $24M per year.