The Application Of An MIP Model To The Optimal Siting And Production Scheduling For A Centralized Coal Preparation Plant

This paper presents an application of a Mixed Integer Programming (MIP) model to the problem of locating a centralized coal preparation plant and determining the production schedule for the mines. The system used for illustrating model application is hypothetical but realistic. It consists of three mines, two potential preparation plant sites, heavy media processing plant, and one market. The goal is to maximize the total profit of the system while satisfying the coal delivery schedule over a three year period meeting both quantity and quality requirements (ash, sulfur, and heat content). In addition to the base case, four different scenarios are analyzed. These four modifications are: (1) removing the flotation circuit from the preparation plant and sending all of the fines directly to the clean coal, (2) lowering the quality of coal from one of the mines, (3) applying discounts to the unselected site to improve its competitive position, and (4) adding a new mine. A detailed discussion of the base case and the effect of these four alternatives is presented.