Abstract

A methodology is presented for deciding the location of a third ore crusher to be installed at Chile’s Chuquicamata copper mine. The proposed approach determines which location alternative exhibits the minimum capital and operating costs when equipment failure probability is considered. Two alternative location configurations are evaluated using the stationary probabilities of a Markov chain model, and the results are validated with a discrete-event simulation model. The Markov model generates insights into the relationships between the variables that a discrete-event simulation cannot provide, and does so without the latter’s greater costs and complexities of modelling, solving and calibration.