Optimization of Cut-off Grades for Molybdenum and Tungsten Open-pit Mines

Abstract

The cut-off grade is one of the important parameters of mining production. Different material cut-off grade is directed to different destinations. Based on reasonable and optimal cut-off grade, long term mining plan and investment decision analysis can be made for mining managers. In view of multiple-metals open-pit, the paper has proposed that multiple-metals cut-off grade optimization model is set using the objective function to maximize net present value (NPV). The method of equivalent coefficient calculation is proposed to convert multi-metals cut-off grade optimization to a single metal cut-off grade optimization. Then the optimization model is applied in a molybdenum and tungsten large open-pit mine in china. The parameters of concentrate price are calculated by PRT in the model and the curve of grade-recovery rate is analyzed and studied according to actual production data. Based on 3D metal deposit model, the distribution of grade-tonnage is analyzed. At final step, an optimal cut-off grade is proposed to guarantee to maximize NPV. The example shows that the model of multiple-metals cut-off grade optimization can provide reasonable analysis for optimal multi-metals cut-off grade and develop optimal production strategies.