Multiple-Criteria Cut-Off Grade Optimization Utilizing Excel Solver

The multiple-criteria decision analysis is a technique that helps to find an optimal solution by evaluating conflicting criteria. In this study, an approach to perform multiple-criteria decision analysis for cut-off grade optimization, which considers the diverse stakeholder groups prevalent in the mining industry, is presented. The optimization model developed in this approach links the resource block model to the financial model, enabling the process to either maximize profit, net present value, revenue to the State, or extend the mine's life. To identify the optimal cut-off grade in each case, the Excel Solver function is utilized. Although it has limitations, the Solver function can still be modified to handle models with thousands of block values for determining input variables based on the target value. Following stakeholder engagement and dialogue, a single weighted average cut-off grade can then be determined. This approach is demonstrated for nine South African Witwatersrand gold mines.