International Journal of Industrial Engineering & Production Research

Cutoff grade is a grade used to assign a destination label to a parcel of material. The optimal cutoff grades depend on all the salient technological features of mining, such as the capacity of extraction and of milling, the geometry and geology of the orebody, and the optimal grade of concentrate to send to the smelter. The main objective of each optimization of mining operation is to maximize the net present value of the whole mining project, but this approach without consideration of environmental issues during planning is not really an optimum design. Lane formulation among the all presented algorithms is the most commonly used method for optimization of cutoff grades. All presented models for optimum cutoff grades are ore-oriented and in none of them the costs related to waste materials which must to be minimized during the mine life are considered. In this paper, after comparison of traditional and modern approaches for cutoff grade optimization in open pit mines, a real case study is presented and discussed to ensure optimality of the cutoff grades optimization process.