A Cut-off Grade Optimization Model in Multi Product Open Pit Mining Considering Reclamation and Valuable Waste Materials

Abstract

The common problem found in the mining company is how to determine the cut-off grade for the classification of ore and waste. The cut-off grade will greatly affect the revenues and costs of the mining companies. In this study, we develop cut-off grade optimization model by considering multi product and environmental factor such as reclamation and revaluing of waste materials. Multi product was chosen because most of the mining industry not only produce one type of mineral products. The main goal of this study is to develop a cut-off grade model to maximize the net present value (NPV). To illustrate the application of the model, the numerical example is given for mining case using the available data of Golgohar Iron Mine in Iran which produced three types of iron products, such as concentrated, sizing, and pellet.