Coal - Maximizing the Profit of a Coal Preparation Plant by Linear Programming

Production of a coal preparation plant is governed by many restrictions, such as the tonnage of different products and blends that can be sold within a given period, capacities and output proportions of the cleaning and sizing units, blending proportions, quality specifications, and costs and prices for the various products. Determination of the tonnage of each product and blend that should be made in order to obtain the maximum profit can be difficult unless a systematic method such as linear programming is used. In this paper the basic method of linear programming is described briefly. The Old Ben No. 9 preparation plant is used as an example to illustrate in detail how eqwations can be written to form a linear programming model of a coal preparation plant. Three sample problems, each requiring 56 or more equations and 63 structural variables, were solved with an IBM 650 computer. Linear programming is one of several mathematical tools used for operations research. It has been applied to many fields and has been used by a number of industries either to maximize the profits of certain operations or to minimize costs. P. B. Nalle and L. W. weeks' have described the use of the method by the Riverside Cement Co. to minimize the cost of blending raw materials to make portland cement. Their problem is to obtain at minimum cost a mix with certain specifications from a number of possible materials which have various costs and various amounts of CaO, SiO2, Fe2O3, and other constituents. In a paper on the use of linear programming by the National Coal Board in England, K. B. Williams and K. B. Halley2 describe how the transportation method, a variation of linear programming, is used to minimize the cost of sending 37 grades of coal from 28 mines to seven central washing plants which produce coal for furnace coke and foundry coke. The various coals have different percentages of volatile matter, moisture, sulfur, ash, and phosphorous, so there is considerable choice in how they can be blended to meet the specifications of the two products. The purpose of this paper is to show how linear programming can be used to maximize the profits of a coal washing plant which produces individual final products as well as blends. The Old Ben Corp. furnished assumed sample data from their Old Ben Mine No. 9 preparation plant for this investigation. However, the data that have been used are entirely the author's responsibility. METHOD OF LINEAR PROGRAMMING Numerous articles and books have been written on the theory and applications of linear programming.3-5 However, since the method has not been widely applied by the mining industry, a brief, nontheo-retical discussion of its basic method seems to be in order. Linear programming (Table I) is used to determine the best possible solution to a number of interdependent activities. It is essentially a method for making systematic selections from a number of possible solutions to determine positively the optimum solution. There may be other equally good solutions but no better ones. Each activity must have linear coefficients and there must be a criterion to judge how good the solution actually is. Linear programming is different from the solution