Journal of Heuristics

, Volume 10, Issue 2, pp 153–167 | Cite as

An Iterative Construction Heuristic for the Ore Selection Problem

  • A.J. Richmond
  • J.E. Beasley

Abstract

The ore selection problem involves choosing a processing option for a number of mining blocks that maximises the expected payoff for a given level of financial risk. An innovative neighbourhood search heuristic is proposed for the ore selection problem. This iterative construction heuristic employs a stochastic demolition and reconstruction strategy. Computational experiments with this heuristic for two ore selection problem instances, one involving 2,500 blocks and the other involving 78,000 blocks, are given. These problem instances are made publicly available for use by future workers. Our computational experiments indicate that the proposed heuristic produces better quality solutions faster than a relay hybrid (constructive-simulated annealing) heuristic.

combinatorial optimisation portfolio theory downside risk ore selection problem 

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • A.J. Richmond
    • 1
  • J.E. Beasley
    • 2
  1. 1.Earth Science and Engineering DepartmentImperial CollegeLondonUK
  2. 2.The Management SchoolImperial CollegeLondonUK

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