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    Mining Cutoff Grade Stra..

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    Mining Cutoff Grade Stra..

    Uploaded by

    Gus Chavez
    11 views7 pages
    jhjj

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    © © All Rights Reserved

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    jhjj

    Copyright:

    © All Rights Reserved
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    Download as pdf
    11 views7 pages

    Mining Cutoff Grade Stra..

    Uploaded by

    Gus Chavez
    jhjj

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Mining cutoff grade strategy to optimise NPV based on multiyear GRG iterative factor ‘A. Nieto** and A. Bascetin® (One ofthe most eiiclt problems in a mining operation is how to determine the optimum minable Couto grade over the Ifospan oho mine that wll maxmiso tho operation net prosent value (NPV), Maximising the NPV in a mining operation, subjoct to afiorent constants, 1s a non-inoar programming problem, Cuto grade optimisation is used to determine the operating mining Strategy that wll maximise the total prot value of the rine. Constrained by the production ‘capacity of the mil, end by sacrificing the mining ow grade material this approach enables the mil to process ore that delves an improved time discounted cashflow. The eutol grade policy Calculated ftom the algorthm inraduced inthis paper has a significant influence on the overall {econerics of the mining operation. This paper describes the process to dotornine the cutft ‘rade strategy used ina mining operation basod on Lanc's algorithm using an aptimisation factor “whichis teratvely calculated for every producton year which cyriamicaly adjust the remaining reserves ard thus the total Ifo ho mine to maximiso tho projoct NPV. The induced algorthm Is an adaptation from Lane's algorttrn tat incorporates an tetabve routine usod to calculate tho opiimisaton factor embedded in tie cutot grade equation. The algorthm was developed at Vigina Tech and runs using a windows visual basc program Inked to a spreadsheet interlace “The benefits ofthe methodology are demonstrated using a hypothetical case study. The authors have observed an improvement of the total NPV using the general reduced gradiont (GAG) ‘approach to iteratively calculate the optimisation facor for every production year Introduction Sit ines he eel soma of he Fora longish ‘opimam eo phon a MERE SON The deerme of COG ep vnesene smth eptveienet nie OAKa awn sence Ah Aa Neeser pera ZO Mri sl nie ‘tfversial coupe toatl mera over the wad. Inner timex the “oportnty co” covmsye has “mera stt nw sorte tn te defntion fsa frat wen’ matiniatin cae set ale {RPV bth obec. The type! vale sites ‘ih the cto rae (COG) destin are th chica ining poranters uch as esovery, toi, ard {een concn cero sash ket ies in tnd processing com Tew rach song Few on deetoping ne eptmsatontecghes sed Lan alge ‘ermine the COG pe" Cat gade option {Sol to deve a operating sate) tht amie tbe Proto mie This prot axmiation is sed on ‘Seg ow gre mara dra he st spe of be Wiig Tectoaay MNTESL 36, 20408 10829 Ei besine A Nhs Se ace ‘Sotto sass andthe grade tog ‘nto the apne! wo te ‘Si at cae eon COX tiling or fetaing Optimisation of COS Opising mine COGs ba og ton scared a he ‘mean tombe the NPV ef minigg prot. tn Feet ear eter behind ne COG optimisation fas aan etnded to encompass othe prs a the Senion. Femi, te. ivan opimsing. the Uoughpet and verve) ia the mal. Ail maybe opr at high throughput ras scriing vey. ep mesons smth teapteienet lM hOAKZ awn senace Ah Are NeeEReF pelea Mri esl nie ut achiving a higher ite of production of mina This equa to a hie operate a at abe weaken” COG, serfing seme of the ow grale sure to obtain higher cad fw. This alee gees tye tools deepest for deeming the ‘Shins sone fore ml cae mea al fee interdependent nat Feil to opambe The roe ty treating both indepen Cote? race epimation maxims the NPV of 1 pot sup fo sap cons ft mine, fall apd “es econome musket Thee are wll ore ae ann omit the ons min ‘Stain the psn: For cual optimisation Yo work corey cy comaante mat nr of Le has dela compreerive approach t9 sitrine te COUT ply What and” Wharton evened he approach luda the opp) cost ‘rate intotheeqution Ts concepts red to 38 ky ost alte change cost” Aad in cons sd {he dynamic mal pie an ox esation Jung mine Teor COG optirsaion™ Table T shows te teation (ed in Lane’ alin hit ape. Lane demonstrate that » COG esa er where gl) the milling COG. fs the aud eat F Bibs oportnay cot pet eof tea mile a eat {Piste rae) pa ut sod te sling pe fe commocity unt Zenit of ot) he ail eover “The opperenity cost determined as wey, un a » w Re oe 1 Neston apo : z ; SS L : Be & i ES = ; = 2 : Ea. Mig Tecoiaay MNTES 36, 26408 10848 someone, eon 1 cr omape stb a pt Nand th Cite totalling opty in J re ere the anna ad oss, Ta ths stds thelgoth based 0 Lae’ approach sss wn VISUAL BASIC aang a apex Tring sth wr ike renga ar Hendy ‘Snows inti. In adn. the ined a Then fs ten update wiht option far ‘sting and nthe Las equation The fptimbaton fatr ie ertey clea Py the fora ng GR ration As show ltrs hs fpr th ota NPV in th course of th mi i es fnproved wig this tet approach The sompuer [wows incorporates ihe otto fat wht Situs in the atmite COG equation whith orton ac indcncl equation ° ow ee where ix the opinion for. THis aro Fees mnie th tal NPV ofthe mine re Prony the mou pean rl of posh cakat he opin ft na rate Spposch updating i rerun resect he mine iit yearn ach tron dt onesie (he NPV te probe. Ths mow appowch ane Sera optimfaton fair in pear Py sear hak Sfrumteg the pre NPV nth hd on he ‘tr othe i (re Tab and Tip The CO, {Rt atic sed eg a erate prose ban Sn te poor reduced gradet (OR agin ‘he GR method pour conpot ago tid fo soWe RUBY and intl fo he poem foie oa aubrovtne ming win he apenas S35 thal The GRO sain mas ist developed fp tadwone af and toe ofthe chai tat fal ‘hin te ceed arden oF pad Feet ‘Stora wm nsthemats aad smut scone ‘Gioie now nae mal "The COG py ested, dats the guantiy 12 teins pone and eed a en ped ad ‘Eat COG Tete te san of he froin he dtr of opm COX, fra even etl wichita asia he shina nso sl ‘Agorthm procedure of COG optimisation fs sition ira show tian Decoy apenas Wet omin wrr; CO land he mses ‘Som

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