Cutoff Grades & Life of Mine (LOM)
Overview
DETERMINE OPTIMAL CUTOFF GRADES TO MAXIMIZE MINE REVENUE AND PRODUCTIVITY
Cutoff grades determine the minimum grade or quality of ore that must be extracted and processed to make a mining operation economically viable. By setting the cutoff grade appropriately, mining companies can ensure that they are extracting and processing ore at an attractive margin and leveraging the net present value of the site. In some cases, portions of the ore body may be left behind until market conditions or productivity gains make that extraction viable.
Setting the right cutoff grade allows mining operators to optimize the use of their finite mineral resources. Managing this effectively requires close communication and flexibility between mine planning and mine operations. As processes become more efficient, mining costs are reduced and ore previously left behind may be unlocked.
However, due to constant market fluctuations in the value for metals and minerals, as well as unpredictable geological conditions, the economic viability of mining operations and the determination of cutoff grades is a constantly moving target which requires world class mining systems and disciplines.
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Optimizing cutoff grades in life of mine planning presents opportunities for mining companies to enhance profitability, resource utilization, and sustainability. When considering the entire lifecycle of the mine, including closure and reclamation costs, determining cutoff grades is an important step, potentially extending the life of the mine and ensuring profitability of the operation even after closeout.
However, it is important to regularly review and update cutoff grades as new information becomes available, including changing market conditions or technological advances. A dynamic with ongoing optimization can give mining companies the competitive edge they need to balance cutoff grades with net present values of mines for maximum productivity.
Our experts at Unison Mining can work with your teams to adopt and fully utilize existing and new data and analytics tools to determine optimal cutoff grades, incorporating real-time monitoring and automation for accuracy and opportunities to maximize profitability. By enhancing your existing processes, systems, KPIs and controls, we work with your teams to incentivize the behavior changes that can drive full adoption of these solutions and encourage full employee buy-in for lasting, sustainable change.
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Why Unison Mining
Experience
Our mining experts have experienced first-hand the day-to-day complexities and issues that arise at the mining face, giving them a higher level of understanding and insight to meet your challenges.
Practical Solutions
By implementing level-appropriate transformation tools, our behavioral and cultural change methodologies, data management, and analytics, our goal is to create a sustainable and positive impact on your mining operations.
Results-driven
We go beyond strategy to offer a direct and measurable approach to success. Our commitment extends to delivering real business outcomes and helping your team sustain those changes for the long haul.