Portfolio selection for open-pit mining assets acquisition

Lucas S. Ferreira; Elizabeth Fialho Wanner; Adriano C. Lisboa; Douglas A.G. Vieira

doi:10.1109/CEC.2016.7743970

Portfolio selection for open-pit mining assets acquisition

Lucas S. Ferreira, Elizabeth Fialho Wanner, Adriano C. Lisboa, Douglas A.G. Vieira

College of Engineering and Physical Sciences

Research output: Chapter in Book/Published conference output › Conference publication

Abstract

The problem of choosing an open-pit mining investment portfolio can be stated as, given a budget, picking among the possible projects the combination that will incur in the best increase for the mine's productivity when applied. Due to interaction between projects even a seemingly cheap and effective project may not be the most appropriate choice as, in the complete portfolio, it may interact badly with other projects. The objective of this paper is to produce an algorithm capable of finding an adequate solution to this kind of problem in a viable time frame. The proposed heuristic modifies an initial solution through a series of permutation operations with the objective of finding a better solution. Using data and projects from a real Brazilian mine, the algorithm is compared with the current adopted solutions. The algorithm is also used to solve problems of similar classes and its complexity order is estimated. For a collection of 15 projects applied to a medium port mining station, the algorithm is able to find the optimal solution with 93 evaluations of the objective function (in a 3-hour time frame) for the studied instance of the problem. The algorithm also indicates a linear complexity regarding to the number of projects.

Original language	English
Title of host publication	2016 IEEE Congress on Evolutionary Computation (CEC)
Publisher	IEEE
Pages	1525-1532
Number of pages	8
ISBN (Electronic)	978-1-5090-0622-9
DOIs	https://doi.org/10.1109/CEC.2016.7743970
Publication status	Published - 14 Nov 2016
Event	2016 IEEE Congress on Evolutionary Computation - Vancouver, Canada Duration: 24 Jul 2016 → 29 Jul 2016

Congress

Congress	2016 IEEE Congress on Evolutionary Computation
Abbreviated title	CEC 2016
Country/Territory	Canada
City	Vancouver
Period	24/07/16 → 29/07/16

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10.1109/CEC.2016.7743970

Cite this

@inproceedings{df79a13c2b4b452f8f1ab7099e79c317,

title = "Portfolio selection for open-pit mining assets acquisition",

abstract = "The problem of choosing an open-pit mining investment portfolio can be stated as, given a budget, picking among the possible projects the combination that will incur in the best increase for the mine's productivity when applied. Due to interaction between projects even a seemingly cheap and effective project may not be the most appropriate choice as, in the complete portfolio, it may interact badly with other projects. The objective of this paper is to produce an algorithm capable of finding an adequate solution to this kind of problem in a viable time frame. The proposed heuristic modifies an initial solution through a series of permutation operations with the objective of finding a better solution. Using data and projects from a real Brazilian mine, the algorithm is compared with the current adopted solutions. The algorithm is also used to solve problems of similar classes and its complexity order is estimated. For a collection of 15 projects applied to a medium port mining station, the algorithm is able to find the optimal solution with 93 evaluations of the objective function (in a 3-hour time frame) for the studied instance of the problem. The algorithm also indicates a linear complexity regarding to the number of projects.",

author = "Ferreira, {Lucas S.} and Wanner, {Elizabeth Fialho} and Lisboa, {Adriano C.} and Vieira, {Douglas A.G.}",

note = "-; 2016 IEEE Congress on Evolutionary Computation, CEC 2016 ; Conference date: 24-07-2016 Through 29-07-2016",

year = "2016",

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doi = "10.1109/CEC.2016.7743970",

language = "English",

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booktitle = "2016 IEEE Congress on Evolutionary Computation (CEC)",

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TY - GEN

T1 - Portfolio selection for open-pit mining assets acquisition

AU - Ferreira, Lucas S.

AU - Wanner, Elizabeth Fialho

AU - Lisboa, Adriano C.

AU - Vieira, Douglas A.G.

N1 - -

PY - 2016/11/14

Y1 - 2016/11/14

N2 - The problem of choosing an open-pit mining investment portfolio can be stated as, given a budget, picking among the possible projects the combination that will incur in the best increase for the mine's productivity when applied. Due to interaction between projects even a seemingly cheap and effective project may not be the most appropriate choice as, in the complete portfolio, it may interact badly with other projects. The objective of this paper is to produce an algorithm capable of finding an adequate solution to this kind of problem in a viable time frame. The proposed heuristic modifies an initial solution through a series of permutation operations with the objective of finding a better solution. Using data and projects from a real Brazilian mine, the algorithm is compared with the current adopted solutions. The algorithm is also used to solve problems of similar classes and its complexity order is estimated. For a collection of 15 projects applied to a medium port mining station, the algorithm is able to find the optimal solution with 93 evaluations of the objective function (in a 3-hour time frame) for the studied instance of the problem. The algorithm also indicates a linear complexity regarding to the number of projects.

AB - The problem of choosing an open-pit mining investment portfolio can be stated as, given a budget, picking among the possible projects the combination that will incur in the best increase for the mine's productivity when applied. Due to interaction between projects even a seemingly cheap and effective project may not be the most appropriate choice as, in the complete portfolio, it may interact badly with other projects. The objective of this paper is to produce an algorithm capable of finding an adequate solution to this kind of problem in a viable time frame. The proposed heuristic modifies an initial solution through a series of permutation operations with the objective of finding a better solution. Using data and projects from a real Brazilian mine, the algorithm is compared with the current adopted solutions. The algorithm is also used to solve problems of similar classes and its complexity order is estimated. For a collection of 15 projects applied to a medium port mining station, the algorithm is able to find the optimal solution with 93 evaluations of the objective function (in a 3-hour time frame) for the studied instance of the problem. The algorithm also indicates a linear complexity regarding to the number of projects.

UR - http://ieeexplore.ieee.org/document/7743970/

UR - http://www.scopus.com/inward/record.url?scp=85008255157&partnerID=8YFLogxK

U2 - 10.1109/CEC.2016.7743970

DO - 10.1109/CEC.2016.7743970

M3 - Conference publication

AN - SCOPUS:85008255157

SP - 1525

EP - 1532

BT - 2016 IEEE Congress on Evolutionary Computation (CEC)

PB - IEEE

T2 - 2016 IEEE Congress on Evolutionary Computation

Y2 - 24 July 2016 through 29 July 2016

ER -

Portfolio selection for open-pit mining assets acquisition

Abstract

Congress

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