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By D. J. Mourant

Day-to-day operations on the Broken Hill mine of the Black Mountain Mineral Development (BMMD) Company require a detailed knowledge of the distribution of the ore minerals within the orebody. The data are acquired by systematic underground diamond drilling of the orebody and subsequent geological and analytical borehole logging. These data are then captured onto a database, available for further analysis. Before mining commences in a mining block, copper, lead, zinc, silver and bismuth assay values, and the specific gravity of each sample, are extracted from the database. 3-dimensional variogram and kriging calculations are performed for each geological zone; for all the metals of interest. A computer representation of the mining block in the form of an ore model is then built using these kriged data. From these ore models information is extracted as required by the Geology Department on the mine, and used in numerous operations. These include: daily grade control to supply optimum feed grades to the treatment plant; the compilation of short, medium and long term production schedules; orebody outline definitions for the detailed planning of mining operations; ore resource calculations. The system has been modified and updated since its inception and provides timely information in a production environment.

Jan 1, 1987

By R. L. Robinson

An analytical framework is formulated to assist mining companies in assessing the relative merits of mineral exploration and acquisition strategies. The anticipated costs, risks, and returns of each strategy are conceptualised using decision trees. Economic criteria - expected net present value, expected return per unit of investment, and the probability of success - for each strategy are derived(from the appropriate decision tree network. Application of the analytical framework is illustrated using the example of a medium-size company in the Canadian base metal sector.

Jan 1, 1987

Material transfer in underground mines often relies on ore and waste pass systems. Over the years the authors have investigated the design and performance of orepass systems in several Canadian and South African mines. It has been recognized that while most mining operations have either implicitly or explicitly clearly defined objectives, in the design and successfully operate orepass systems there seems to be an absence of a strategy on how to best attain these goals. Consequently, it is not surprising that the majority of operations reviewed by the authors experience a number of problems of varying degrees of severity and economic consequences. This is illustrated by reference to both South African and Canadian operations. The second part of this paper focuses on a review of tactical interventions to rectify orepass problems or mitigate their impact. The paper closes with a framework for a flexible strategy for the design and operation of orepass systems. Keywords orepass; orepass design; orepass stability; orepass rehabilitation; orepass operation; orepass strategy.

Oct 1, 2013

By C. Kirmanli

The purpose of this paper is to develop an expert system for hydraulic excavator and truck selection in surface mining. Hydraulic excavators and trucks are finding increasing applications in mining operations. Hydraulic excavators are extensively used especially when bringing electricity to rural areas is difficult and for small-scale mining. This paper describes an expert system, which selects the optimum hydraulic excavator truck configuration such that unit production cost is minimized and technical constraints such as geological, geotechnical and mining constraints are satisfied. The system has four modules: user interface, rules and an methods, databases and output module. The expert system in this study is developed within KappaPC shell. It supports object-orientated technology for the MS Windows environment. The software provides a very useful tool to practitioners, saving time and cost. Equipment selection is a recurring and expensive problem of mine planning and often involves interdisciplinary experts from different fields. It is very difficult and expensive to bring together all these experts. The capabilities of the expert system developed are illustrated in the paper. The software overcomes the difficulties of selecting the proper equipment for surface mining operations, which is very important, and results in substantial savings. Equipment databases for hydraulic excavators with 15-59 yd3 capacities and trucks with 35-360 tons are constructed and these databases are used to select the proper configuration. A case study is carried out for Soma Surface Coal mines in Turkey. Keywords: surface mining, expert systems, equipment selection, hydraulic excavators, diggability

Jan 1, 2009

By R. V. Ramani

Managers need quality information for effective decision making. This demand, at the present time, is being fulfilled by the increased use of computers via information systems, decision support systems and management information systems. The idea of incorporating intelligence into computers to aid decision-makers has been evolving for over two decades. In recent years, significant progress is reported on applications to business and sciences. In engineering functions, the Artificial Intelligence approach that seems to have great potential is the application of Knowledge Based Systems. The primary objective of this paper is to identify domains in mining engineering where application of knowledge based systems could be beneficial. In- corporation of the expertise required during the analysis and interpretation stages of an engineering design problem through knowledge based systems is recognized as an area of significant benefit. To this end, the components of knowledge based systems for mine ventilation and strata control design are described. The potential applications and limitations of knowledge based systems are outlined.

Jan 1, 1987

The Floatability Characterisation Test Rig (FCTR) is a self-contained, highly instrumented, mobile pilot plant. It was developed as part of the AMIRA P9 project, primarily to determine ore floatability characteristics and to develop and validate flotation plant modelling, scale-up and simulation methodologies. This paper describes the use of the FCTR in validating the AMIRA P9 flotation model and modelling methodology. In 2001 the FCTR was installed and operated in parallel with WMC's (now BHP Billiton's) Kambalda Nickel Operation. The FCTR was operated using four different circuit configurations of increasing complexity. Metallurgical surveys, cell characterisation measurements and batch flotation tests were performed around each circuit. This allowed the calibration of a number of flotation models using a combination of data from one, two, three or four circuit configurations. The calibrated flotation models were then validated using predictive validation. To do this, data around a further five FCTR circuit configurations were collected (three of which are presented in this paper). The performance of each of the five circuit configurations was predicted using JKSimFloat V6.1 and the parameters from the various calibrated flotation models. The predicted performance was compared to the experimentally determined performance of each circuit. The validation of the AMIRA P9 model was shown to be largely successful except in the case where the reagent addition (depressant) to the validation circuit was different to that in the calibration circuits. The results also provided information regarding the required complexity of the calibration circuit and how many calibration circuits are required to obtain an accurate prediction of circuit performance. These results have increased the confidence in the AMIRA P9 flotation modelling methodology and have provided important information on what data must be collected to allow the accurate prediction of plant performance using the floatability component modelling approach.

Jan 1, 2007

By O. S. Tinkler, K. C. Sole

"Although the first large-scale application of copper recovery by solvent extraction took place in Zambia in the early 1970s, it is only in the last decade that this technology has become widely employed in this part of the world and is now a mainstay unit operation in copper hydrometallurgical flow sheets. The mineralogy of the ores of the African Copperbelt, and hence the characteristics of African leach liquors, differs significantly from those in Chile and the southwestern USA, where copper solvent extraction has had a long and successful history. These differences provide operators, metallurgists, reagent vendors, and engineers with many challenges: new approaches are needed to adapt solvent-extraction technology for successful implementation in this region. This paper examines typical operating practice in the African Copperbelt, discusses differences compared with other parts of the world, and looks at some of the challenges and opportunities presented by these flow sheets. IntroductionFollowing the success of the Rancher’s Bluebird and Bagdad solvent extraction and electrowinning (SX–EW) operations in Arizona in the late 1960s, the Tailings Leach Plant at Chingola, Zambia, became the first large-scale copper SX plant in the world, commissioned in 1974. Despite the equipment design now being outdated, this plant still continues to operate successfully, indicating the versatility and adaptability of this technology. Today, there are some 75 copper SX operations worldwide with cathode production above 10 kt/a. The top ten producers currently account for about 40% of the global 4.3 Mt/a SX–EW copper production. South America (predominantly Chile and Peru) is the largest copper cathodeproducing region, with annual production of some 2 Mt. The Central African Copperbelt (Zambia and the Democratic Republic of Congo (DRC)) is second, with cathode production of 1.2 Mt/a, and North America (USA and Mexico) third, producing close to 0.8 Mt/a Cu (Solvay Cytec data, 2014). The remaining 0.35 Mt/a comes from all other regions combined (referred to as ‘Rest-of-World’)."

Jan 1, 2016

By G. L. Gomes-Sebastiao, W. W. de Graaf

"Gomes Sand is a quarry operation that produces sand and aggregate for the construction industry. The quarry is experiencing inconsistencies in the fragmentation and poor pit conditions as a result of poor drilling and blasting practices. This results in excessive downtime in the load and haul and crushing processes.A benchmarking exercise of the blasting practices was conducted to evaluate the effect of the inconsistency on the mining cycle. After changes in the blasting practices the downtime was reduced, which improved the crushing plant utilization by 4.9%. The improved blasting practices and more consistent fragmentation decreased the average number of loads lost each month due to jaw crusher blockages from 9.2% to 3.9% of plant throughput. The change in blasting practices also improved pit conditions. IntroductionGomes Sand is a quarry operation that has been in operation since 2009, producing sand and stone for the construction industry. The quarry was experiencing unacceptable blasting results. The repercussions included uneven pit floors, large amounts of oversize rock (>500 mm), and inconsistent fragmentation.The blast results affected the load and haul operations as well as the efficiency of the crusher. This resulted in downtime in the daily operations, and consequent production and revenue losses.The crusher product should have a top size of 50 mm. A blast fragmentation of <50 mm would improve the downstream operations and the crusher throughput.An investigation into the blasting practices was carried out to assess whether the downstream delays can be eliminated by improving the blast results. The exercise included:* Assessing if the designed blast layout is adhered to on the bench* Observing the quality and control of drilling* Observing the charging procedure of the blast-holes* Benchmarking the fragmentation consistency of the blasted rock using current blast design and practices* Analysing the throughput of the crushing plant* Investigating the power consumption of the crushing plant and determine if a change in blasting practices will affect this* Evaluating the hours spent by the hydraulic hammer on secondary breaking."

Jan 1, 2017

By O. Y. Ntrama

Lebowa Platinum Mines has been in operation since the late 1960s and is a relatively small producer compared to Anglo Platinum?s other operations. The mine has never had substantial capital investment to expand its production scale even though its resource base is estimated in excess of 100 years at current mining rates. It is forecast that the mine will become unprofitable after 2008 due to the workings of the ageing infrastructure, the Merensky Reef operations being further from the shafts, decrease in productivity and increase in operating costs. In order to reverse the forecast decline in operational inefficiencies and profitability the replacement of the Merensky Reef operations at Vertical and UM2 shafts with the development of a 120 Ktpm Brakfontein Merensky Reef Mines is in progress. This paper covers the operational readiness framework developed from the control budget estimate and outlines an integrated business process adopted to ensure that the requirements of the investment proposal are met. The operational readiness framework, which addresses the transition process, will ensure that at operational start-up, all appropriate operating systems, procedures, information and legal requirements are in place, whereas the business integration process will aim to develop and sustain an organization with the appropriate infrastructure and workforce equipped with the necessary skills to meet Brakfontein?s requirement, and where possible embark on an optimized accelerated production initiative to ensure that the objectives of the investment proposal are sustained. Keywords: operational readiness, business integration, optimized accelerated production initiative, organizational development.

Jan 1, 2006

By F. M. Russell

Scheduling the extraction and rates of production for an underground mining operation is a common task carried out during the life of a mine, from the initial feasibility study through to the final production phase. The scheduling process can be complex when several requirements have to be satisfied, for example, match mill capacity and maximize net present value while constrained by mining sequence and availability of resources. Many mines have computer programs relevant to their operation but because they are site-specific they need considerable reprogramming to be adapted to other operations. Other methods currently in use also suffer drawbacks: manual spreadsheets are laborious, computerized spreadsheets cannot handle sufficient constraints, and operations research techniques require a complex mathematical model to be set up. The use of network analysis techniques has been proposed previously but the unavailability, until recently, of easily used computer programs has not allowed this approach to be developed. There are now many programs which can be used; however, the particular program which has been adapted to mine scheduling is Metier&apos;s &apos;Artemis-PC&apos; running on IBM-XT or compatible machine. The use of network analysis offers many advantages, including the use of a logical mining sequence; activities can be as detailed as required; related activities can be readily incorporated, and costs can be easily extracted. A heuristic approach is necessary to optimize the schedule, but the ease and speed of program execution enables this to be readily achieved, while leaving the mining engineer in full control. The paper discusses the problems encountered in mine scheduling and current solutions. It then details the use of network analysis techniques and the application of the Artemis-PC program to solve mine scheduling problems.

Jan 1, 1987

By J. Gholamnejad

Determination of the optimum cut-off grades is one of the most important aspects of mine production planning. A cut-off is a grade below which we choose not to process material. This material is treated as waste and dumped. Dumping waste is accompanied by the rehabilitation cost which will affect the overall cost of final production and also the optimum cut-off grade. Rehabilitation cost is the cost per ton of rehabilitating material of a particular type of rock after it has been dumped as waste. One of the most popular algorithms for determination of the optimum cut-off grade is Lane?s method. Lane formulated the cut-off grade optimization, but he did not consider rehabilitation cost during the optimization process. This cost item should be evaluated first, and then considered during the cut-off grade optimization process. In this paper the rehabilitation cost is inserted directly into the cut-off grade optimization process using Lane?s theory. The cut-off grades obtained using the suggested method will be more realistic than ones using the original form of Lane?s formulations.

Jan 1, 2009

By M. Pelser, J. Hagemann

"The Anglo American Platinum Rustenburg Base Metals Refiners (RBMR) is the largest producer of nickel cathode in South Africa. It treats slow-cooled matte to recover a platinum group metal-containing magnetic fraction for downstream processing and a nonmagnetic fraction to produce nickel and copper cathode, cobalt sulphate, and sodium sulphate. The refinery was recently expanded from 21 to 33 kt/a nickel. During the ramp-up phase, the sulphur removal section was found to be a constraint to throughput. Nickel hydroxide is precipitated from nickel spent electrolyte by addition of sodium hydroxide, and filtration of the nickel precipitate allows sulphur to be removed from the circuit as aqueous sodium sulphate in the filtrate. The filtration fluxes were found to be limiting the circuit’s capacity. An obvious solution would have been to install additional filtration capacity at significant capital cost and long lead times. RBMR chose rather to first initiate a collaborative project with Anglo American Technical Solutions to better understand the impact of process conditions on filtration characteristics and to evaluate whether the filtration flux could be increased by improving the quality of the nickel precipitate.A deeper understanding of nickel hydroxide precipitation chemistry and kinetics in the context of high nickel and sodium hydroxide concentrations was developed, guided by precipitation theory and confirmed by laboratory tests and plant observations. It was found that the filtration rate could be significantly improved by modifying the precipitate characteristics. A new precipitation process was engineered and retrofitted into the existing plant. Since start-up of the new precipitation system, the available capacity of the sulphur removal section has more than doubled, and control of the process has improved with the better agitation. This paper describes the theory and results used to design the new agitation system, as well as the impact of the change on capital investment, operability, and process efficiency."

Jan 1, 2016

By S. L. Miller

The development of a pilot gold geostatistical ore reserve system proved that geostatistical methods worked well for the routine production of annual ore reserves on gold mines of the Gold Fields of South Africa (GFSA) group, and that the techniques could also be practically implemented, understood and accepted by Survey Department personnel. Many side benefits of the pilot system became apparent, and a variety of useful management information was provided by manipulating the data values that were already captured. It was decided that it was a priority computing project to develop a standard production system (GORS) for routine use by all the GFSA gold mines. Experience with the pilot system enabled detailed functional specifications for GORS to be laid down. These, together with group computing policy determined the terms of reference and constraints for the GORS development. System design could not be finalized until new and appropriate mainframe database software and graphics workstation equipment and software had been found. With these in place the basic system was structured to take best ad- vantage of the interactive features of the workstation, the number-crunching power of the mainframe and the flexibility offered by a relational database and associated 4GL tools. Application sub-systems were developed for data capture, statistical applications, geostatistical calculations, contour plotting and graphical queries. GORS is being introduced to the mines in a phased manner with suitable documentation, training and support structures to enable it to be routinely and effectively used on a day-to-day basis by all group gold mines.

Jan 1, 1987

By L. A. Cramer

There are a couple of dozen junior platinum mining companies coming into existence in Southern African and most intend to mine, concentrate the PGM?s in a flotation product and sell the concentrate to one of the major producers in South Africa. The price they will receive for their product and hence the return they achieve for their investment will depend upon the large number of factors that influence the market for such a product. Unfortunately the number of buyers is severely limited as it is dominated by the two major local producers, Impala Platinum and Anglo Platinum. Furthermore the current smelting technology has limited capacity for UG2 concentrates and high nickel concentrates will quickly fill any available base metal refining capacity. Few if any overseas buyers can compete for the bulky flotation concentrate produced. This paper will explore those factors such as metal recoveries, metal prices, operating costs, capacity constraints, deleterious elements, transport issues, metal premiums and discounts that are in play, types of flotation concentrates, processing capital costs, PGM grades, etc and their impact up on what smelters and refiners might be prepared to pay for such PGM concentrates. Ultimately simple graphs and equations can be developed for probably payment terms for such concentrates. Those who negotiate well will move to the higher return section of the envelope and those who use the concentrator facilities to produce the most saleable combination of flotation concentrates will enhance their returns. A deep and firm understanding of the issues surrounding this market is necessary in order to negotiate the best possible price for the seller.

Jan 1, 2008

By Piotr M. Kapias

Keywords: extraction, lead refining, Pb-Tl solutions, PbCl2-TlCl solutions. The theoretical part of the paper presents an analysis of the conditions of Tl extraction from Pb using different extractants and determines the activity coefficients in liquid solutions of Pb-Tl and PbCl2-TlCl. The dependence of the solution activity coefficients upon the composition and temperature is presented in the form of Krupkowski and Krupkowski-Fitzner equations. An analysis and evaluation were made of the influence of the methods of PbCl2 introduction into a Pb-Tl solution upon the efficiency of the Tl extraction process under thermodynamic equilibrium conditions. The analysis made it possible to formulate relevant equations describing the dynamics of the process of Tl extraction from Pb under stirring conditions as well as under the extractant injection into the liquid Pb-Tl solution conditions. In the part concerning experimental work, results are given for tests on the Tl extraction process from Pb-Tl liquid solutions of initial Tl content of approximately 0.05% mass using PbCl2 or, alternatively, Cl2(g) conducted in laboratorial scale. The tests made it possible to establish the influence of time, temperature, mass and the method of introducing the extractants into the liquid upon the level of Tl extraction from a Pb-Tl solution. Labels used in the text. WT1m - TI content in metallic phase, % mass WT1s - TI content in chloride phase, % mass wpTlm - TI content in metallic phase in initial state, % mass W°Tlm - TI content in metallic phase in equilibrium conditions, % mass m°m - initial mass in metallic phase mm - mass in metallic phase mPbC12 - lead chloride mass fed to the system MPbC12-TIC1 - mass in chloride phase MPb - lead atomic mass, g/mole MT1 - thallium atomic mass, g/mole K - Nernst distribution coefficient Xi - mole friction of solution component X°PbC12 - mole friction of PbC12 in saturated solution X°T1C1 - mole friction of T1C1 in saturated solution T - temperature, K R - gas constant, J/(mole K) k - kinetic equation constant, 1/(%-min.) ?i - solution component activity coefficient e - extraction rate, %

Jan 1, 2008

By H. A. D. Kirsten

The skills differential between manpower supply and demand is due to deeply rooted socio- and politico-educational misconceptions that can be remedied only by a concerted cooperative effort on the part of the general public, the State, organized industry, organized engineering, and engineering education. This will require the general public to recognize that the reasons for the shortages in engineering manpower should be regarded as critical. Public perceptions of engineering, of the vocational and educational prospects in engineering, and of the skills required are poor. The spectrum of engineering vocations, the corresponding function profiles, the interaction between the vocations and the relative proportions of the vocations in the engineering team are in general not adequately appreciated. The recruitment and training of students and teaching staff, teaching facilities, educational curricula, practical training, qualifications, professional registration, and financing are aspects of engineering education that should be brought to the attention of all concerned. . In addition, the educational curricula for the various vocations need to be specified clearly and definitively if the overall mission of engineering education is to be properly appreciated. The uncertainties between university and technikon education and the pursuant vocations need to be resolved. This can be done only by defining the respective curricula in terms of the mental skills and scientific techniques required. The remedial actions with regard to the rationalization of engineering education comprise informing of the public; establishment of an active political lobby; revision of existing education policy; rationalization of existing educational infrastructure; promotion, development, and guidance of engineering student intake; financing of engineering education; accelerated creation of new employment opportunities; and monitoring of the supply and demand of high-level manpower. The parties required to nitiate these remedial actions are various State departments and corporations involved in engineering and industry, various departments of education, the Directorate of Technology of the Department of Trade and Industry, organized engineering education, organized engineering, organized industry, and the Human Sciences Research Council. Only if these interest groups actively initiate the various actions under the coordinated guidance of organized engineering wil the required results be achieved. The South African Engineering Association has proposed a comprehensive programme as strategy to solving the problem, and has obtained broad consensus from various State departments, organized engineering education and research, and the private sector. A joint venture between the Foundation for Research Development, the South African Engineering Association, and organized industry has been charged by the State President with the task of launching the programme.

Jan 1, 1991

By C. Botha

The South African democratically-elected government instituted policies and legislation that are intended to bring about change and transformation in the country and have drastically affected different industries, among others, the mining industry. The Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and the Broad-based Socio-economic Empowerment Charter (Mining Charter) were introduced in order to redress previous inequalities and to promote women&apos;s employment in the mining industry. This research evaluates the practical implementation of the MPRDA and the Mining Charter with specific reference to women in underground mining. A quantitative research paradigm was used. Data were collected through a process of a face-to-face interview surveys utilizing a structured questionnaire. The research setting was limited to the platinum-mining industry in the area of Rustenburg in the North West Province. The study population consisted of 195 available women working undergound at the mine. It is clear from the findings that mining companies are facing major challenges in their attempt to incorporate women in underground mining activities. Company policies regarding these issues must be firmly in place; however, the challenge lies in the translation of these policies into practice. In this regard, managers will have to play a leading role in the successful phasing in of women into the underground mining arena.

Jan 1, 2012

By K. Tobór-Osadnik, M. Wyganowska, A. Manowska

"The behaviour of employees is an essential issue in the field of occupational health and safety. Safe behaviour is to a large extent determined by, apart from motivation and preventive actions, an employee’s attitude towards hazard. Thus, attention should be given to defining employees’ attitudes, and following that, to the possibility of correcting and shaping these attitudes in relation to hazard and obeying occupational health and safety regulations. The authors have focused on the analysis of employee attitudes to health and safety regulations in Polish coal mining companies, taking into consideration earlier research on the behaviour of selected employees. The paper presents the methods used to identify Z-type (passive) behaviour. Next, this behaviour is analysed to identify differences between a Z-type employee (enslaved) and other employees. To conclude, the paper presents a list of possible motivational tools that may be used to encourage occupational health and safety in Z-type employees. IntroductionThe technical state of equipment and conditions in the workplace greatly influence occupational safety. However, the deciding factor influencing the rate of accidents in the workplace is the frequency with which employees practise risky behaviour. Factors such as the social conditioning of conduct and motivation for organizing safe work conditions have been included in the notion of creating a positive culture of work safety. This notion has been approved as one of the main goals in management (Studenski, 1996).Safe behaviour is to a large extent, apart from motivation and preventive actions, determined by an employee’s attitude towards hazard. All actions undertaken in the field of occupational health and safety, including training, motivational systems, or imitation of behaviour resulting from a high culture of occupational safety in a given work environment, will not bring about the desire effects if workers have an inappropriate attitude towards occupational health and safety regulations."

Jan 1, 2017

By R. H. Matjie, J. R. Bunt, C. A. Strydom

"A number of conventional and advanced analytical techniques (proximate and ultimate analysis, low-temperature oxygen-plasma ashing, X-ray diffraction, X-ray fluorescence spectrometry, coal petrography, and lightelement electron microprobe analysis) have been integrated and crosschecked to provide detailed characterization of coals from the Highveld coalfield in South Africa, as a basis for better understanding of the mineralogical and chemical properties of the individual coal sources that are blended as feedstocks for combustion and carbon conversion processes. The techniques included methods to quantify the abundance and composition of the mineral matter (minerals and non-mineral inorganic elements), and also the abundance and chemical composition of the individual macerals in the individual coals concerned.Kaolinite is the most abundant of the minerals in the coals studied, with lesser but still significant proportions of quartz, mica and/or illite, dolomite, calcite, and pyrite. Small but variable proportions of anatase, goyazite, and siderite are present in some coal samples. Electron microprobe analysis, based on a special configuration for light-element study, shows that the vitrinite contains less carbon and more oxygen, and has significantly higher concentrations of nitrogen and organic sulphur, than the inertinite macerals in the same samples. Minor proportions of organically-associated inorganic elements, including titanium, were also identified in some of the maceral components.A comprehensive knowledge of the minerals and non-mineral inorganic elements in the coals used for feedstock preparation, obtained by integration of data from these advanced analytical techniques with more conventional analyses, may be of benefit in understanding the processes that take place during coal utilization, and also in avoiding or ameliorating some of the operational and environmental problems that may occur in different sectors of the coal utilization industry."

Jan 1, 2016

By J. Githiria, C. Musingwini

"Cut-off grade is a decision-making criterion often used for determining the quantities of material (ore and waste) to be mined, ore processed, and saleable product. It therefore directly affects the cash flows from a mining operation and the net present value (NPV) of a mining project. A series of different cut-off grades that are applied over the life of mine (LOM) of an operation defines a cut-off grade policy. Due to the complexity of the calculation process, previous work on cut-off grade calculation has mostly focused on deterministic approaches. However, deterministic approaches fail to capture the uncertainty inherent in input parameters such as commodity price and grade-tonnage distribution. This paper presents a stochastic cut-off grade optimization model that extends Lane’s deterministic theory for calculating optimal cut-off grades over the LOM. The model, code-named ‘NPVMining’, uses realistic grade-tonnage realizations and commodity price distribution to account for uncertainty. NPVMining was applied to a gold mine case study and produced an NPV ranging between 7% and 186% higher than NPVs from deterministic approaches, thus demonstrating improved project value from using stochastic optimization approaches. Background on cut-off grade calculation and optimizationCut-off grade is a decision-making criterion that is generally used in mining to distinguish ore from waste material. Consequently, it is used to determine the quantities of material (ore and waste) to be mined, ore processed, and saleable product. A series of different cutoff grades that are applied over the life-ofmine (LOM) of a mining operation defines the cut-off grade policy for that particular operation. The cut-off grade therefore directly affects the cash flows to be produced and the net present value (NPV) of a project at the mine planning or feasibility study stage."

Mar 1, 2019