Analysis of flexible mining systems

Flexible mining systems possess the ability to adapt to internal or external changes in operating conditions and maintain production expectations. This paper reviews the nature of the various types of mining flexibility and their controlling factors. Methods for assigning a value or figure of merit to flexibility are presented. Examples focus on the use of these methods at the mine level. Option pricing was found to be a useful approach for valuation of flexibility in a strategic, long-term context such as in mine design or major modification of mine operations. Computer simulation was found to be useful for tactical evaluation of flexible opportunities in mine production control.