Portfolio selection for open-pit mining assets acquisition

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

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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 languageEnglish
Title of host publication2016 IEEE Congress on Evolutionary Computation (CEC)
PublisherIEEE
Pages1525-1532
Number of pages8
ISBN (Electronic)978-1-5090-0622-9
DOIs
Publication statusPublished - 14 Nov 2016
Event2016 IEEE Congress on Evolutionary Computation - Vancouver, Canada
Duration: 24 Jul 201629 Jul 2016

Congress

Congress2016 IEEE Congress on Evolutionary Computation
Abbreviated titleCEC 2016
CountryCanada
CityVancouver
Period24/07/1629/07/16

Bibliographical note

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  • Research Output

    • 3 Conference contribution

    A quadratic approximation-based local search operator for handling two equality constraints in continuous optimization problems

    Fonseca, C. H. & Wanner, E. F., 14 Nov 2016, 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, p. 4911-4917 7 p.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

  • Fundamentals of the C-DEEPSO algorithm and its application to the reactive power optimization of wind farms

    Marcelino, C. G., Almeida, P. E. M., Wanner, E. F., Carvalho, L. M. & Miranda, V., 14 Nov 2016, 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, p. 1547-1554 8 p.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

  • Multiobjective approach to the vehicle routing problem with demand responsive transport

    Mendes, R. S., Miranda, D. S., Wanner, E. F., Sarubbi, J. F. M. & Martins, F. V. C., 14 Nov 2016, 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, p. 3761-3768 8 p.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

  • Cite this

    Ferreira, L. S., Wanner, E. F., Lisboa, A. C., & Vieira, D. A. G. (2016). Portfolio selection for open-pit mining assets acquisition. In 2016 IEEE Congress on Evolutionary Computation (CEC) (pp. 1525-1532). IEEE. https://doi.org/10.1109/CEC.2016.7743970