The value of drilling - A chance-constrained optimization approach

The challenge of managing geological uncertainty in mine planning is central to optimizing resource extraction while minimizing risks and costs. This paper introduces a novel approach to coal mine planning by integrating chance-constrained programming to address the uncertainty inherent in mining operations. The main takeaway from this work is the demonstration that focusing on reducing the variance of high-quality coal blocks, rather than low-quality ones, can lead to better blending outcomes, higher profitability and more efficient resource utilization. The study presents a case study of a coal mining operation, using chance-constrained programming to manage the uncertainty surrounding coal property predictions, specifically the predicted coke strength after reaction (CSR).