The Opportunity Cost of Homogenising Concentrator Feed

Recently published extensions to the mill-dump cutoff grade theory for joint open pit-concentrator operations lead to equations that must be simultaneously satisfied as a necessary condition for an optimal operating policy. These equations are parametrically dependent upon ore quality parameters, other than grade, relating to the ease of recovery of the disseminated mineral in the concentrator. Since it is not possible to treat quantities of ore corresponding to the size of selective mining units separately in the concentrator some mixing is inevitable and often deemed desirable in the interest of homogeneity of mill feed. This renders the calculation of cutoff grades for individual mining units futile; mining units must be grouped to form larger parcels that can be dealt with separately. In doing so an opportunity cost may be incurred; the loss of potential benefit that would result from such separate treatment. This matter is considered from a theoretical, qualitative, point of view. A numerical example then shows that a significant variability in the quality parameters can be tolerated without incurring such opportunity cost, provided sufficient knowledge is available concerning the distribution and effect of these variables to enable the use of effective mean values of these parameters in the cutoff grade calculation. Lack of such knowledge can have major consequences for the economics of the operation.