Optimization of Cut-off Grades for Molybdenum and Tungsten Open-pit Mines

"The cut-off grade is one of the important parameters of mining production. Different material cut-off grade is directed to different destinations. Based on reasonable and optimal cut-off grade, long term mining plan and investment decision analysis can be made for mining managers. In view of multiple-metals open-pit, the paper has proposed that multiple-metals cut-off grade optimization model is set using the objective function to maximize net present value (NPV). The method of equivalent coefficient calculation is proposed to convert multi-metals cut-off grade optimization to a single metal cut-off grade optimization. Then the optimization model is applied in a molybdenum and tungsten large open-pit mine in china. The parameters of concentrate price are calculated by PRT in the model and the curve of grade-recovery rate is analyzed and studied according to actual production data. Based on 3D metal deposit model, the distribution of grade-tonnage is analyzed. At final step, an optimal cut-off grade is proposed to guarantee to maximize NPV. The example shows that the model of multiple-metals cut-off grade optimization can provide reasonable analysis for optimal multi-metals cut-off grade and develop optimal production strategies. Introduction Cut-off grade is one of the most important parameters in metal ore mining because of its influence on the overall economic profit of mining production. Along with the development of the mining production, dynamic optimization of cut-off grade is necessary through the analysis of technical economy. It is better to manage the mining production according to the variation of market. The cut-off grade plays an important role in mining production."