A mixed integer programming based cut-off grade model for open-pit mining of complex poly-metallic resources

Asif Khan and Mohammad Waqar Ali Asad

Resources Policy, 2021, vol. 72, issue C

Abstract: The mineral supply chain in an ideal open-pit mining operation constitutes a set of sequential stages including a surface mine or an open-pit, a processing plant and a refinery or market. Cut-off grade defines the flow of materials from the mine to subsequent stages within this mineral supply chain. This underlines the significance of cut-off grades in establishing the economic viability of an operation. However, only heuristic methods are available for defining the cut-off grade policy for complex mineral resources (orebodies) that constitute multiple economic minerals. This article proposes a new mixed integer programming based mathematical model that generates an optimal cut-off grade policy for open-pit mining operations that mine, process and refine or market multiple metal products. An implementation of the new method in three separate case studies reflects better performance (i.e., 24%, 36% and 27% higher net present value) against available heuristics.

Keywords: OR in natural resources; Mineral resources; Open-pit mining; Optimization; Cut-off grade; Scheduling (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721000908

DOI: 10.1016/j.resourpol.2021.102076

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