Optimisation of Cut-Off Grade at Mount Isa Mines Limited Æs Enterprise Mine

The practical application of LaneÆs theory on optimum cut-off grade policy has to date proved difficult for selective stoping in large-scale underground mining. The key to determining an optimum cut-off grade is the ability to rapidly perform complex mine layout designs combined with rapid output of multiple potential schedules. This paper describes aspects of the detailed investigation into estimating a practical static cut-off grade for the two main orebodies in Mount Isa MineÆs Enterprise Mine. Rule based automated scheduling software was used to evaluate thirteen different stoping layouts (including design infrastructure and capital development) of the Enterprise MineÆs two main orebodies, with over 200 schedules generated. The investigation illustrates the application of commercially available software to solve the problems of generating multiple cut-off grade stope designs and achieving the otherwise insurmountable task of rapidly generating and valuing multiple scenarios for each stoping layout. Each scenario was evaluated using modelled net cash flows of the mining, concentrating and smelting operations of the company and calculating NPV. The cut-off grade for each orebody was selected based on the cut-off grade that achieved maximum NPV û with an appropriate production rate. Underground mine scheduling is a complex task involving the adherence to a number of simple scheduling rules and the balancing of several competing drivers. The study also found that: while each scheduling rule itself is simple, the compounding complexities of their interaction preclude manual scheduling from being a realistic option. there is a maximum sustainable rate of production possible for any given stoping layout, and that the actual maximum production rate is also a function of the required number of years of sustainable production. the optimal cut-off grade was different for each orebody û a recognition of the impact of the different characteristics of each orebody.