Simulation-based decision-making system for optimal mine production plan selection

Price uncertainty is one of the major uncertainties in the life of mine (LOM) planning process which can have a decisive effect on the overall profitability. Today’s mine planning software tools provide block-sequencing optimisation for a given static price assumption that is then used as a basis of managerial decision-making process. This paper proposes a complementary approach to this by introducing a simulation-based decision-making tool that, with the help of simulation, seeks for the optimal mine plan when a managerially estimated price development with minimum and maximum boundaries is used as a data input for the given period. To demonstrate the approach, a realistic gold mine case study is presented with five alternative and technically feasible mine plans calculated in a static optimiser from a commercial mine planning software package. These mine planning scenarios are then subjected to price uncertainty in simulation with and without a price trend assumption to highlight the effect of price on the mine’s expected performance. Based on the results, we derive and demonstrate a simulation-based system that automates the matching of optimal mine plan with the managerial insight of long-term price development.

The obstacles and challenges of transition towards a renewable and sustainable energy system in Azerbaijan and Poland

The aims of the paper are to identify and assess the determinants of transition to renewable and sustainable energy development in Azerbaijan and Poland. Both countries have a clear target to increase the share of renewable energy sources (RES) in the gross final energy consumption, i.e. Poland in the National Energy and Climate Plan for the years 2021–2030 declares that it wishes to achieve 21–23% by 2030 (total consumption in electricity, heating and cooling as well as for transport purposes). But there are currently significant producers and consumers of conventional energy carriers, respectively coal and oil, and these fuels ensure an appropriate level of energy security and production stability. Moreover, in Poland, the mining sector plays a very important social role, whereas the oil industry in Azerbaijan creates significant budget revenue. Therefore, even with stronger EU and worldwide climate policy and a decreasing cost of cleaner forms of energy, there are many challenges and obstacles for such countries in increasing energy from RES associated with energy security, efficiency, existing infrastructure, competitiveness and social aspects. In order to identify best practices for the transition to decarbonisation, the availability of energy resources, energy market structures, national strategies and policies were compared using PESTEL analysis.

Mining and indigenous rights in Sweden: what is at stake and the role for legislation

Mining and the permitting process for mineral projects in Sweden has been criticised as inadequately safeguarding the rights of Indigenous reindeer herding Sámi, who hold usufruct rights to more than half the country’s territory. There have been calls for Sweden to ratify the Indigenous and Tribal Peoples Convention (ILO 169) and to change its Mineral Law. This paper evaluates the extent of protection of Sámi rights — and not only those engaged in reindeer herding — in Sweden’s minerals permitting process. It also considers the implications if changes were made to align this process with the Indigenous-rights framework. The paper demonstrates that reindeer herding Sámi are, broadly, treated similar to landowners in the mineral projects permitting process. However, there is discrimination when it comes to being able to have a share in the benefits of a project: impacted reindeer herders have no such option whereas landowners do. Also, the permitting processes do not consider social and cultural impacts, nor are there obligations for the state to be sufficiently involved in consultation processes. Addressing the identified shortcomings would require only small changes to the Mineral Law and/or to its application and would be possible with only limited impacts on mining because the sector is not a significant user of land whilst it creates large economic values. However, extending those changes (to give parity between landowners and Sámi rights holders) in other important economic sectors which use more extensive land areas, would entail a considerable transfer of resources and associated power. Furthermore, changing the Mineral Law specifically would mean little in terms of safeguarding the rights of the majority of Sami who do not engage in reindeer herding. This suggests that calls for changes to mineral-related legislation to resolve indigenous land right issues are mis-directed or at least insufficient, and that other type of legislative change is required, fundamentally including resolving how extensive and strong the Sámi’s rights to land should be.