Example of an Abstract

Comparative analysis on the effect of major mining parameters on cut-off grade optimisation

J. Githiria1,*, A. River2, K. Lewis3

1Taita Taveta University, School of Mines and Engineering

(*Corresponding author: j.muchiri07@ttu.ac.ke )

2 Taita Taveta University, School of Mines and Engineering

3Mining Company A

ABSTRACT

Mineable material is defined using cut-off grade by either as geological or economic cut-off grade. Both geological and economic cut-off grade affects the output generated in a mining operation. It distinguishes the amount of ore sent to the mill for processing and waste to the dump. This consequently affects the overall profits generated from the operation hence the need for cut-off grade optimisation. There are several mining parameters that are considered in a typical cut-off grade model. They include economic, geological and operational parameters. They have significant effect to influence the cut-off grade selected in mining operation at any given period. Some of the parameters are stochastic in nature by having a random probability distribution that may not be predicted precisely. Using a stochastic computer-aided application (NPVMining), selected stochastic parameters are considered in this exercise to show the effect on the output (net present value). The selected parameters (price, operating costs, discount rate, grade-tonnage, recovery and capacity) are varied by ± 10%. This paper analyses the effect of each of the mining parameters on cut-off grade to show the significance of monitoring their variance.

Keywords: cut-off grade optimization, price, operating cost, recovery, grade-tonnage, net present value