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Incorporating environmental issues into optimum cut-off grades modeling at porphyry copper deposits


  • Osanloo, M.
  • Rashidinejad, F.
  • Rezai, B.


Cut-off grade is defined as the grade which discriminates between ore and waste within a given orebody. Determination of a complete optimum cut-off grade policy is a very important function during mine life. Using the modified optimum cut-off grade model presented in this paper not only the net present value of a porphyry copper mining project is maximized, but also the adverse environmental impacts of the project are minimized simultaneously. This methodology is more effective in long-range planning. For showing the effectiveness of the model, two scenarios are considered in a hypothetical deposit and the results show that incorporating the modified optimum cut-off grade policy, the net present value will be increased by 3.6% in comparison with the Base Case.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jrpoli:v:33:y:2008:i:4:p:222-229

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    Cited by:

    1. Azimi, Yousuf & Osanloo, Morteza & Esfahanipour, Akbar, 2013. "An uncertainty based multi-criteria ranking system for open pit mining cut-off grade strategy selection," Resources Policy, Elsevier, vol. 38(2), pages 212-223.
    2. Zhang, Kuangyuan & Kleit, Andrew N., 2016. "Mining rate optimization considering the stockpiling: A theoretical economics and real option model," Resources Policy, Elsevier, vol. 47(C), pages 87-94.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.


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