Breakeven Extraction Factors For The Merensky Reef Using Stope Width And Market Price Simulation

The Merensky Reef zone, as developed on Impala Platinum?s Rustenburg Operations, displays a gradational mineralized zone, with grades decreasing from the Merensky Pegmatoid Unit into the footwall and hanging wall. A system of identifying a manageable method of defining the mining cut is introduced, termed the grade profile attenuation cut-off grade. Although horizontal grade selectivity is not applied in the mining of the Merensky Reef zone, low extraction of the orebody, due to manageable and non-manageable factors, can contribute to a reduction in revenue, even losses, due to fixed cost contributions in the mining and beneficiation of the ore. A model is proposed that integrates all variables affecting the revenue of the mining operation, including the grade profile attenuation cut-off grade, the extraction factors, commodity prices and exchange rates, utilizing numerical simulation techniques in a PC-based environment. A breakeven extraction factor for a specific cut-off grade is delivered for a range of market conditions. The breakeven extraction factor is a useful guide when designing mining layouts in structurally complex and low metal content areas. Incorporating distribution functions for individual commodity prices and exchange rates into the model provides mineral resource managers with a risk profile for individual mining areas. Shaft areas have varying grade profiles and each area should have individual models run, to prevent generalizations being made about acceptable risk levels on mining areas.