In this work, we consider a risk-averse ultimate pit problem where the grade of the mineral is uncertain. We propose a two-stage formulation of the problem and discuss which properties are desirable for a risk measure in this context. We show that the only risk measure that satisfies these properties is the entropic. We propose an efficient approximation scheme to solve the risk-averse version of the problem and show its viability in large-scale mines.
Unpublished, Universidad Adolfo Ibáñez, Diagonal Las Torres 2640, Santiago, Chile, August 2019.