A System Dynamics Approach to Mine Modelling and Cut-Off Grade Management

We discuss the concept of optimal cut-off grade policies and their advantages in terms of maximisation of net present value of mining operations. There are indications, however, that such optimal policies are not widely used in the mining industry. In order to explore why this is the case we identify a number of stakeholders who may have diverging interests in the operating policies of a given mine. These various interests are mapped and a number of important relationships are explored in a large qualitative systems dyanmics model.