Optimal extraction sequence modeling for open pit mining operation considering the dynamic cutoff grade

Abstract

The cutoff grade problem is an important research challenge and vital optimization task in the yearly operational planning of open pit mines due to its combinatorial nature. Because of it's influenced by the economic parameters, the capacities of stages in the mining operation, mining sequence, and grade distribution of the deposit. Essentially, it asserts that the dynamic cutoff grade at any given period is a function of the ore availability and the needs of the mill at that period. Consequently, cutoff grades strategy and extraction sequence should be considered, simultaneously. Due to its goal, various attempts have been made to develop a computerized procedure for the extraction sequence of open pit mine. None of the resulting approaches appear to enjoy wide acceptance because of it's the numerous associated variables. A new model is proposed to overcome this shortcoming. This model solves the problem in the three steps: 1) the actual economic loss associated with each type of processing for each block, 2) the probabilities distribution and average grade for each type processing is computed from independent realization, and 3) each block with its expected economic loss is developed as a binary integer programming model. Using this model, the optimum extraction sequences in each period are identified based on the optimum processing decisions. A case study is presented to illustrate the applicability of the model developed. Results showed that the extraction sequences obtained using the suggested model will be realistic and practical. This model allows for the solution of very large problem in reasonable time with very high solution quality in terms of optimal net present value.