Abstract

BREED, M.F.  and  VAN HEERDEN, D.. Post-pit optimization strategic alignment. J. S. Afr. Inst. Min. Metall. [online]. 2016, vol.116, n.2, pp.109-114. ISSN 2411-9717.  http://dx.doi.org/10.17159/2411-9717/2016/v116n2a1.

Successful development of projects or life-of-mine strategies requires an understanding of the relative sensitivity of value drivers such as grade, tonnage, energy costs, direct operational costs, and recoveries. For example, the results could vary significantly depending on the grade strategy, given a specific orebody amenable to open pitting. Pit optimization is a very powerful tool widely used in the industry to determine the pit shell with the most attractive value potential. Based on the input parameters utilized, the pit optimization process determines the stripping ratio, mineable reserves, and pit shape, and effectively calculates a cut-off grade, assumed to be the optimal cut-off grade. Once the initial pit optimization process is completed, the need may arise to align the optimization results with the company strategy by further optimizing other criteria, such as maximizing short-term cash flow. This paper describes and discusses the selection of an alternative cut off grade as a strategic intervention. It involves changing the cut-off grade, effectively increasing the head grade to gain a strategic advantage aligned with the company strategy, with a clear understanding of the financial value impact. With this knowledge, it is clear that pit optimization establishes the basis for future analysis and refinement.

Keywords : post-pit optimization; cut-off grade; optimal pit; ultimate pit; pit optimization.

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