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

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  • Khan, Asif
  • Asad, Mohammad Waqar Ali

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.

Suggested Citation

  • Khan, Asif & Asad, Mohammad Waqar Ali, 2021. "A mixed integer programming based cut-off grade model for open-pit mining of complex poly-metallic resources," Resources Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721000908
    DOI: 10.1016/j.resourpol.2021.102076
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    References listed on IDEAS

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    1. Asad, Mohammad Waqar Ali & Qureshi, Muhammad Asim & Jang, Hyongdoo, 2016. "A review of cut-off grade policy models for open pit mining operations," Resources Policy, Elsevier, vol. 49(C), pages 142-152.
    2. Rahimi, Esmaeil & Akbari, Afshin, 2016. "Application of KKT in determining the final destination of mined material in multi-processing mines," Resources Policy, Elsevier, vol. 50(C), pages 10-18.
    3. Ahmadi, Mohammad Reza & Bazzazi, Abbas Aghajani, 2019. "Cutoff grades optimization in open pit mines using meta-heuristic algorithms," Resources Policy, Elsevier, vol. 60(C), pages 72-82.
    4. Osanloo, M. & Rashidinejad, F. & Rezai, B., 2008. "Incorporating environmental issues into optimum cut-off grades modeling at porphyry copper deposits," Resources Policy, Elsevier, vol. 33(4), pages 222-229, December.
    5. Paithankar, Amol & Chatterjee, Snehamoy & Goodfellow, Ryan & Asad, Mohammad Waqar Ali, 2020. "Simultaneous stochastic optimization of production sequence and dynamic cut-off grades in an open pit mining operation," Resources Policy, Elsevier, vol. 66(C).
    6. Rahimi, Esmaeil & Ghasemzadeh, Hasan, 2015. "A new algorithm to determine optimum cut-off grades considering technical, economical, environmental and social aspects," Resources Policy, Elsevier, vol. 46(P1), pages 51-63.
    7. Ahmadi, Mohammad Reza & Shahabi, Reza Shakoor, 2018. "Cutoff grade optimization in open pit mines using genetic algorithm," Resources Policy, Elsevier, vol. 55(C), pages 184-191.
    8. Mohammadi, Sadjad & Kakaie, Reza & Ataei, Mohammad & Pourzamani, Eshagh, 2017. "Determination of the optimum cut-off grades and production scheduling in multi-product open pit mines using imperialist competitive algorithm (ICA)," Resources Policy, Elsevier, vol. 51(C), pages 39-48.
    9. Waqar Ali Asad, Mohammad & Dimitrakopoulos, Roussos, 2012. "Optimal production scale of open pit mining operations with uncertain metal supply and long-term stockpiles," Resources Policy, Elsevier, vol. 37(1), pages 81-89.
    10. Biswas, Pritam & Sinha, Rabindra Kumar & Sen, Phalguni & Rajpurohit, Sohan Singh, 2020. "Determination of optimum cut-off grade of an open-pit metalliferous deposit under various limiting conditions using a linearly advancing algorithm derived from dynamic programming," Resources Policy, Elsevier, vol. 66(C).
    11. Asad, Mohammad Waqar Ali & Dimitrakopoulos, Roussos, 2013. "A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams," Resources Policy, Elsevier, vol. 38(4), pages 591-597.
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    Cited by:

    1. Zeng, Lanyan & Liu, Shi Qiang & Kozan, Erhan & Corry, Paul & Masoud, Mahmoud, 2021. "A comprehensive interdisciplinary review of mine supply chain management," Resources Policy, Elsevier, vol. 74(C).
    2. Biswas, Pritam & Sinha, Rabindra Kumar & Sen, Phalguni, 2023. "A review of state-of-the-art techniques for the determination of the optimum cut-off grade of a metalliferous deposit with a bibliometric mapping in a surface mine planning context," Resources Policy, Elsevier, vol. 83(C).
    3. Guo, Jianxin & Tan, Xianchun & Zhu, Kaiwei & Cheng, Yonglong, 2024. "Integrated management of abatement technology investment and resource extraction," Resources Policy, Elsevier, vol. 92(C).

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