Optimising Cut-Offs Over Time

This paper describes a new computer program which can significantly increase the Net Present Value of either an open cut or underground mine by optimising the cut-offs used during the operating life of the mine. It was developed over a period of about three years by Whittle Programming Pty Ltd of Melbourne, Australia. Several authors have contributed to the theory behind this work, but the ideas were further developed, consolidated, and clearly explained by Lane (1988). It was this book that triggered the development of the new program. The paper starts with an explanation of the theory behind this type of optimisation, and then goes on to describe the computer methods used to optimise the different parts of the problem.