# Financially Efficient Ore Selections Incorporating Grade Uncertainty

@article{Richmond2003FinanciallyEO, title={Financially Efficient Ore Selections Incorporating Grade Uncertainty}, author={A. J. Richmond}, journal={Mathematical Geology}, year={2003}, volume={35}, pages={195-215} }

Traditional mining selection methods focus on local estimates or loss functions that do not take into account the potential diversification benefits of financial risk that is unique to each location. A constrained efficient set model with a downside risk function is formulated as a solution. Estimates of this nonlinear mixed-integer combinatorial optimization problem are provided by a simulated annealing heuristic. A utility framework that is congruent with the proposed efficiency model is then…

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