Sustainable Coal Mining Optimization with Mixed Integer Linear Programming

Mining businesses in Indonesia, especially in the coal sector, experience several obstacles related to fluctuations in the Reference Coal Price (HBA) due to government regulations with production and export restrictions. These conditions affect the sustainability of coal mining business actors. Efficiency and optimization of the mining process needs to be implemented so that losses can be anticipated with efficient coal production costs and effective operations. This research aims to optimize production scheduling at one of the coal minings so that production is optimal and production costs can be reduced to obtain better profits. This research accommodates several important parameters for the mining process that can influence sustainable operations. Coal mining production scheduling uses mixed integer linear programming (MILP) with a mathematical model that is adjusted to existing variables and parameters to maximise profits. The results of the research show that there are four variations of the model profits according to the implementation period which produce different profits with the highest profit at 55.38% and the lowest profit at 37.78%. From these results, production scheduling can be a guide for companies in their operational activities.