As part of a new expansion effort, Stillwater Mining Company needed a tool
for analyzing development and production scenarios in a new area of an unde
rground platinum and palladium mine in Stillwater, Montana. We developed a
large mixed-integer programming model that takes as input the planned mine
layout, projected ore quality, and projected costs for basic mining activit
ies, and produces as output a near-optimal schedule of activities that maxi
mizes discounted ore revenue over a given planning horizon. We then used th
is model to evaluate various planning scenarios and make recommendations ab
out development and production in this new area.