VALUE OF GEOLOGICAL INFORMATION IN EXPLOITATION MANAGEMENT: THE CASE OF EXPLOITATION UNITS OF THE POLKOWICE-SIEROSZOWICE MINE

Abstract

Abstract The application of mathematical techniques of management is particularly significant in managing mineral deposits as well as generally in the mining industry, in which the execution of geological-mining projects is usually time-consuming and expensive. Such projects are usually undertaken in conditions of uncertainty, and the incurred expenses do not always generate satisfactory revenues. Mineral deposit management requires close cooperation between the geologist providing necessary information about the deposit and the miner conducting exploitation work. A real decision-making problem was undertaken, in which three exploitation divisions of a certain area in the Polkowice-Sieroszowice mine, differing in ore quality, could be developed in an order which would guarantee maximisation of income. First, the ore price was calculated with the NSR formula; next, the decision-making problem was presented as a kind of game between the geologist (the mine) and states of Nature.