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

Fingerprint

Open pit mining
Portfolio Selection
Mining
Linear Complexity
Productivity
Permutation
Objective function
Optimal Solution
Acquisition
Heuristics
Series
Evaluation
Interaction

Bibliographical note

-

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
Ferreira, Lucas S. ; Wanner, Elizabeth Fialho ; Lisboa, Adriano C. ; Vieira, Douglas A.G. / Portfolio selection for open-pit mining assets acquisition. 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, 2016. pp. 1525-1532
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Ferreira, LS, Wanner, EF, Lisboa, AC & Vieira, DAG 2016, Portfolio selection for open-pit mining assets acquisition. in 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, pp. 1525-1532, 2016 IEEE Congress on Evolutionary Computation, Vancouver, Canada, 24/07/16. https://doi.org/10.1109/CEC.2016.7743970

Portfolio selection for open-pit mining assets acquisition. / Ferreira, Lucas S.; Wanner, Elizabeth Fialho; Lisboa, Adriano C.; Vieira, Douglas A.G.

2016 IEEE Congress on Evolutionary Computation (CEC). IEEE, 2016. p. 1525-1532.

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

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Ferreira LS, Wanner EF, Lisboa AC, Vieira DAG. Portfolio selection for open-pit mining assets acquisition. In 2016 IEEE Congress on Evolutionary Computation (CEC). IEEE. 2016. p. 1525-1532 https://doi.org/10.1109/CEC.2016.7743970