Cut-off grades and optimising the strategic mine plan / Бортовые содержания и оптимизация стратегического плана добычи полезных ископаемых

Cut-off grade is perhaps the least understood driver of value for a mining operation. Many believe that it is determined relatively easily by knowing the mining and extraction costs, metallurgical recovery and an estimate of the price for the metal/s under consideration. Determining the values for these parameters may not necessarily be easy but, having determined them, calculating the cut-off as a break-even is straightforward. For others, the cut-off is what it is because that’s what it has always been. Nothing could be further from the truth. Unfortunately, it would seem that many of the key executives and decision-makers in the industry are unaware of this, as are many of the industry analysts who commentate on the actions and decisions of company executives. The result would appear to be that strategies and policies that maximise returns for stakeholders and reduce risk are given the thumbs down, while those that are guaranteed to minimise value and increase the risk of the operation are applauded. <...>