A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams
Cutoff grade specifies the available supply of metallic ore from an open pit mine to the multiple processing streams of an open pit mining complex. An optimal cutoff grade strategy maximizes the net present value (NPV) of an open pit mining operation subject to the mining, processing, and marketing/...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Pergamon
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/4253 |
| _version_ | 1848744463641346048 |
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| author | Asad, Mohammad Waqar Dimitrakopoulos, R. |
| author_facet | Asad, Mohammad Waqar Dimitrakopoulos, R. |
| author_sort | Asad, Mohammad Waqar |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Cutoff grade specifies the available supply of metallic ore from an open pit mine to the multiple processing streams of an open pit mining complex. An optimal cutoff grade strategy maximizes the net present value (NPV) of an open pit mining operation subject to the mining, processing, and marketing/refining capacity constraints. Even though, the quantities of material flowing from the mine to the market are influenced by the expected variation in the available metal content or inherent uncertainty in the supply of ore, the majority of cutoff grade optimization models not only disregard this aspect and may lead to unrealistic cash flows, but also they are limited in application to an open pit mining operation with single processing facility. The model proposed herein determines the optimal cutoff grade policy based on a stochastic framework that accounts for uncertainty in supply of ore to the multiple ore processing streams. An application on a large-scale open pit mining operation develops a unique cutoff grade policy along with a portfolio of mining, processing, and marketing/refining rates. Owing to the geological uncertainty, the approach addresses risk by showing a difference of 14% between the minimum and maximum production rates, cash flows and NPV. |
| first_indexed | 2025-11-14T06:01:52Z |
| format | Journal Article |
| id | curtin-20.500.11937-4253 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:01:52Z |
| publishDate | 2013 |
| publisher | Pergamon |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-42532017-09-13T14:39:15Z A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams Asad, Mohammad Waqar Dimitrakopoulos, R. Open pit mine planning Heuristic algorithms Stochastic optimization Cutoff grade Cutoff grade specifies the available supply of metallic ore from an open pit mine to the multiple processing streams of an open pit mining complex. An optimal cutoff grade strategy maximizes the net present value (NPV) of an open pit mining operation subject to the mining, processing, and marketing/refining capacity constraints. Even though, the quantities of material flowing from the mine to the market are influenced by the expected variation in the available metal content or inherent uncertainty in the supply of ore, the majority of cutoff grade optimization models not only disregard this aspect and may lead to unrealistic cash flows, but also they are limited in application to an open pit mining operation with single processing facility. The model proposed herein determines the optimal cutoff grade policy based on a stochastic framework that accounts for uncertainty in supply of ore to the multiple ore processing streams. An application on a large-scale open pit mining operation develops a unique cutoff grade policy along with a portfolio of mining, processing, and marketing/refining rates. Owing to the geological uncertainty, the approach addresses risk by showing a difference of 14% between the minimum and maximum production rates, cash flows and NPV. 2013 Journal Article http://hdl.handle.net/20.500.11937/4253 10.1016/j.resourpol.2013.09.008 Pergamon restricted |
| spellingShingle | Open pit mine planning Heuristic algorithms Stochastic optimization Cutoff grade Asad, Mohammad Waqar Dimitrakopoulos, R. A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title | A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title_full | A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title_fullStr | A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title_full_unstemmed | A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title_short | A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| title_sort | heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams |
| topic | Open pit mine planning Heuristic algorithms Stochastic optimization Cutoff grade |
| url | http://hdl.handle.net/20.500.11937/4253 |