Incorporation of rehabilitation cost into the optimum cut-off grade determination - Synopsis

Determination of the optimum cut-off grades is one of the most important aspects of mine production planning. A cut-off is a grade below which we choose not to process material. This material is treated as waste and dumped. Dumping waste is accompanied by the rehabilitation cost which will affect the overall cost of final production and also the optimum cut-off grade. Rehabilitation cost is the cost per ton of rehabilitating material of a particular type of rock after it has been dumped as waste. One of the most popular algorithms for determination of the optimum cut-off grade is Lane?s method. Lane formulated the cut-off grade optimization, but he did not consider rehabilitation cost during the optimization process. This cost item should be evaluated first, and then considered during the cut-off grade optimization process. In this paper the rehabilitation cost is inserted directly into the cut-off grade optimization process using Lane?s theory. The cut-off grades obtained using the suggested method will be more realistic than ones using the original form of Lane?s formulations.