An Application of Simultaneous Optimisation – Improving the Payback Period of a Zinc-Copper Open Cut Project

Project financing challenges caused by declining commodity prices have heightened the need to improve project metrics such as minimising capital payback and maximising net present value (NPV). Khnaiguiyah Mining Company (KMC) recognised the need to improve early cash flows at their Khnaiguiyah zinc-copper project after initial studies showed the project could not provide the desired financial outcomes necessary to compete for investment dollars in the current market.A significant improvement to the project cash flow in early years was realised through simultaneous optimisation of cut-off grade, mining sequence and strategic stockpiling. This improvement was achieved by accelerating mining in the pits, stockpiling lower value material and feeding higher value material directly to the plant. The schedule required higher mining and stockpile capacities than the sequential mine plan although minimal change occurred in the definition of ore and waste as measured by tonnes and grade. The practicality of the strategic schedule was demonstrated by implementation in the production plan with excellent conformance.CITATION:Thobaven, D J, 2014. An application of simultaneous optimisation – improving the payback period of a zinc-copper open cut project, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).