Operations Research - A Practical Production Scheduling Model for the Taconite Industry

Production planning techniques, particularly a production scheduling model are proposed for use in taconite mining in Minnesota. Applications of the scheduling model, on a two-year mine plan, which evaluates the equipment involved, are detailed. Data and tables are included. INTRODUCTION Fifty years ago Walter Swart, a mining engineer investigating the Minnesota taconites for the Jackling interests, made this report: "There is no doubt in my mind that this taconite mining is a game worth playing and that it can be played to a successful finish. It seems now only a question of men, money, methods and details."' The prosperous industry envisioned by Swart and other taconite pioneers is today a reality. Its growth has been spurred by technological advances in mining and beneficiation, depletion of natural ore reserves, and improvement of the economic climate. However, the massive problems that were solved to make this development possible are only a foreshadowing of the questions of "men, money, methods and details" that will be encountered in the future. The increasing demands for higher quality taconite pellets have already forced producers to examine better methods of quality control for their operations. THE NEED FOR PRODUCTION SCHEDULING The maintenance of fairly constant crude ore characteristics is of major importance to mill quality control. Through careful mixing of ore from storage bins, the concentrator staff can partially reduce the deviations of the feed analysis from the analysis desired. However, the limited effectiveness of bin mixing systems has caused some mining companies to utilize large capacity blending piles to reduce grade variations. Although the analysis of material being reclaimed from such a pile is relatively uniform, raw materials still must be scheduled from the mine into the pile in such a manner that the average analysis of all material is close to the feed analysis prescribed by the mill. PRODUCTION SCHEDULING MODEL Minnesota taconite mining companies have used three analyses to estimate how a certain ore will react to concentration. These factors are the crude magnetic iron content of the ore, the iron content of the plant concentrate produced from the ore at a standard grind, and the grindability index of the ore. The actual laboratory tests used to determine these factors have been described by Apuli.2 These data are obtained from analysis of diamond drill cores, and are the established criteria used by mine planning engineers to formulate taconite production schedules. Variations in the grade of mine output should be controlled by any production scheduling system. However, to be truly practical, production scheduling methods must also consider many of the less tangible variables that affect mine operation. These include pit layout, available equipment, and ownership of ore leases. The number and scope of the variables inherent in this type of mine planning suggested that a computer simulation could be used to solve the problem. The preparation of information for use with a computer simulation program was the initial phase of this project. Meaningful data was developed from logs of diamond drill cores. Analyses were related to their respective areas of influence by means of mine maps, Fig. 1. The three assay variables and tonnages for each area were punched on cards. In addition to these values, a location code number was punched in the first eight columns of the cards. This code is explained as follows: Column 1 Bench number Column 2 Quadrant location as determined by mine reference lines Columns 3-5 East-west coordinate Columns 6-8 North-south coordinate The heart of any simulation techniques is a well engineered mathematical model. To develop a model for taconite production scheduling, the relationship between the three assay variables had to be established. Because changes in each analysis factor affect the mill circuits in different manners, a weighting system was used to determine the relative im-