Strategi cut-off grade

Aldin Ardian

Phd candidate, Mining engineering, McGill University

Dosen, Teknik Pertambangan, UPN “Veteran” Yogyakarta
 Ruiseco, J. R., Williams, J., & Kumral, M. (2016).

Definisi
• Cut-off grade (CoG) adalah batas penentuan
apakah sebuah block merupakan ore atau
waste.
• CoG juga disebut ore-waste discrimination.
• Block destination:
a. Waste dump
b. Sub-grade pile
c. Marginal grade pile
d. Low-grade processing
e. High-grade processing
f. High grade stockpile

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 2

Mining model based on Lane Algortihm

ROM Max capacity Unit cost

(run of mine)
Material

Mine M m

Ore

Processing plant or
C c
Concentrator
Concentrate

Refinery R r

Product

Market

Fixed costs, prices, and recovery

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 3

Contoh kasus Grades Quantity
(lb/tonne) (tonne)
• Costs: 0.0 – 0.1 100
• Mining cost (m) = $1/tonne 0.1 – 0.2 100
• Concentrator cost (c) = $2/tonne 0.2 – 0.3 100
• Refining cost (r) = $5/lb 0.3 – 0.4 100
• Fixed cost (f) = $300/tahun 0.4 – 0.5 100
0.5 – 0.6 100
0.6 – 0.7 100
• Capacities:
0.7 – 0.8 100
• Mining (M) = 100 tonne/tahun
0.8 – 0.9 100
• Concentrator (C)= 50 tonne/tahun
0.9 – 1.0 100
• Smelter (R) = 40 lbs/tahun
Total 1,000
Assumptions:
• Mining recovery (y) is 100%. • Commodity price (s) = $25/lb.
• CoG concentrator is 0.5 lb/tonne • No initial investment.

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 4

Karane mining capacity 100 tonnes (Qm) per tahun. Dengan total cadangan yang akan
ditambang 1,000 tonnes. Maka umur tambang 10 tahun.
1. Menghitung average grade dan jumlah bijih yang akan dikirim ke concentrator (Qc).
CoG concentrator 0.5 lb/tonne. Kemudian, bijih dengan grade > 0.5 lb/tonne yang ditambang,
artinya hanya 50 tonnes bijih yang akan diproses (Qc).
Grades Quantity
(100 ∗ 0.55) + (100 ∗ 0.65) + (100 ∗ 0.75) + (100 ∗ 0.85) + (100 ∗ 0.95) (lb/tonne) (tonne)
5
𝑔̅ = 0.0 – 0.1 100
100 + 100 + 100 + 100 + 100
0.1 – 0.2 100
5
= 0.75 lb/tonne 0.2 – 0.3 100
0.3 – 0.4 100
2. Menghitung produk refinery (Qr)
0.4 – 0.5 100
𝑙𝑏 𝑡𝑜𝑛𝑛𝑒
𝑄9 = 𝑔̅ ×𝑄; ×𝑦 = 0.75 ×50 ×1 = 37.5 lb/year 0.5 – 0.6 100
𝑡𝑜𝑛𝑛𝑒 𝑦𝑒𝑎𝑟
0.6 – 0.7 100
3. Dengan kombinasi di atas (100 tonne/th bijih, 50 tonne/th processing plant feed, 37.5 lb/th 0.7 – 0.8 100

refinery feed), kita dapat menghitung profit. 0.8 – 0.9 100

𝑃 = 𝑠 − 𝑟 𝑄9 − 𝑚𝑄M − 𝑐𝑄; − 𝑓𝑇 0.9 – 1.0 100

𝑃 = $25 − $5 ×37.5 − $1×100 − $2×50 − $300×1 Total 1,000

𝑃 = $250/𝑦𝑒𝑎𝑟
4. Calculate NPV (𝑃𝑉 − 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡), discount rate 15%
X
1 + 0.15 Z[ − 1
1+𝑖 −1 𝑁𝑃𝑉 = 250× = $1,254.69
𝑃𝑉 = 𝐴× 0.15 1 + 0.15 Z[
𝑖 1+𝑖 X Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 5
Pembatasan total capacity (mine capacity)
(Hustrulid, 2013)
• Ingat kembali rumus profit: 𝑃 = 𝑠 − 𝑟 𝑄9 − 𝑚𝑄M − 𝑐𝑄; − 𝑓𝑇
• Jika mining capacity (M) dibatasi, maka umur tambang menjadi:
𝑄M
𝑇M =
𝑀
• Dan rumus profit menjadi:
𝑓
𝑃 = 𝑠 − 𝑟 𝑄9 − 𝑐𝑄; − 𝑚 + 𝑄
𝑀 M
• Kemudian untuk menghitung average grade di mana profit dimaksimalkan menjadi (turunan terhadap 𝑔):
𝑑𝑃 𝑑𝑄9 𝑑𝑄; 𝑓 𝑑𝑄M
= 𝑠−𝑟 −𝑐 − 𝑚+
𝑑𝑔 𝑑𝑔 𝑑𝑔 𝑀 𝑑𝑔
• Karena jumlah bijih yang ditambang (Qm) independen terhadap grade, maka:
𝑑𝑄M
=0
𝑑𝑔
• Produk processing plant (Qr) sebagai berikut.
Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 6
Constraining with total capacity (mine capacity)
• Turunan dari:
𝑑𝑄9 𝑄;
= 𝑔̅ 𝑦
𝑑𝑔 𝑑𝑔
• Substitusikan persamaan diatas dengan rumus profit.
𝑑𝑃 𝑑𝑄;
= 𝑠 − 𝑟 𝑔̅ 𝑦 − 𝑐
𝑑𝑔 𝑑𝑔
`a
• CoG adalah di mana profit = 0. = 0
`b
𝑐
𝑠 − 𝑟 𝑔̅ 𝑦 − 𝑐 = 0 𝑔M = 𝑔c =
𝑦 𝑠−𝑟

Untuk kapasitas terbatas lainnya (concentrator dan refinery)

𝑓 𝑐
𝑐+ 𝑔9 =
𝑔; = 𝑐 𝑓
𝑦 𝑠−𝑟−
𝑦 𝑠−𝑟 𝑅

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 7

The calculation with previous dataset
1. Hitung CoG untuk tiap batasan (constrain) dan average gradenya.
𝑐 2
𝑔M = = = 0.10 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒 𝑔̅M = 0.55 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒
𝑦 𝑠−𝑟 1 25 − 5
𝑓 300 𝑔̅; = 0.7 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒
𝑐+ 2+
𝑔; = 𝑐 = 50 = 0.40 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒 𝑔̅9 = 0.58 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒
𝑦 𝑠−𝑟 1 25 − 5
𝑐 2
𝑔9 = = = 0.16 𝑙𝑏/𝑡𝑜𝑛𝑛𝑒
𝑓 300
𝑦 𝑠−𝑟− 1 25 − 5 −
𝑅 40

2. Hitung material yang dikirim ke concentrator, umur tambang, dan material yang dikirim ke refinary.
𝑄M 1,000
𝑄; = 900 𝑡𝑜𝑛𝑛𝑒𝑠 (CoG 0.1) 𝑄9 = 𝑄; ×𝑔̅M ×𝑦 = 900×0.55×1 = 495 𝑙𝑏𝑠 𝑇M = = = 10 𝑡𝑎ℎ𝑢𝑛
𝑀 100 𝑡𝑜𝑛𝑛𝑒/𝑡ℎ
𝑄; = 600 𝑡𝑜𝑛𝑛𝑒𝑠 (CoG 0.4) 𝑄9 = 𝑄; ×𝑔̅; ×𝑦 = 600×0.70×1 = 420 𝑙𝑏𝑠 𝑄; 600
𝑇; = = = 12 𝑡𝑎ℎ𝑢𝑛
𝑄; = 840 𝑡𝑜𝑛𝑛𝑒𝑠 (CoG 0.16) 𝑄9 = 𝑄; ×𝑔̅9 ×𝑦 = 840×0.58×1 = 487.2 𝑙𝑏𝑠 𝐶 50 𝑡𝑜𝑛𝑛𝑒/𝑡ℎ
𝑄9 487.2
𝑇9 = = = 12.18 𝑡𝑎ℎ𝑢𝑛
𝑅 40 𝑡𝑜𝑛𝑛𝑒/𝑡ℎ

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 8

3. Hitung profit:
𝑃 = 𝑠 − 𝑟 𝑄9 − 𝑚𝑄M − 𝑐𝑄; − 𝑓𝑇

𝑃M = $25 − $5 495 − $1×1,000 − $2×900 − $300×10 = $4100

𝑃; = $25 − $5 420 − $1×1,000 − $2×600 − $300×12 = $2600
𝑃9 = $25 − $5 487.2 − $1×1,000 − $2×840 − $300×12.18 = $3410

Note:
• Jumlah material yang dikirim ke concentrator, refinery, dan umur tambang, berbeda.
• Namun, the material yang ditambang sama, 1,000 tonnes.
• Kita belum menghitung NPV

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 9

Pembatasan (constraining) with two situations
Mine and concentrator capacity constrain: Concentrator and refinery capacity constrain:
𝑄M = 100 𝑡𝑜𝑛𝑛𝑒𝑠 and 𝑄; = 50 𝑡𝑜𝑛𝑛𝑒𝑠 𝑄; = 50 𝑡𝑜𝑛𝑛𝑒𝑠 and 𝑄9 = 40 𝑙𝑏

Dari tabel terlihat bahwa gc = 0.5lb/tonne, 𝑔;9 = 0.6 lb/tonne

yaitu kapasitas maksimum concentrator.
Qc gc Agc Qr
(tonne) (lb/tonne) (lb/tonne) (lb)
Qm gc Qc
(tonne) (lb/tonne) (tonne) 𝑔M; = 0.5 lb/tonne 50 0.0 0.50 25
100 0.0 100 50 0.1 0.55 27.5
100 0.1 90 50 0.2 0.60 30
100 0.2 80 50 0.3 0.65 32.5
100 0.3 70 50 0.4 0.70 35
100 0.4 60 50 0.5 0.75 37.5
100 0.5 50 50 0.6 0.80 40
100 0.6 40 50 0.7 0.85 42.5
100 0.7 30 50 0.8 0.90 45
100 0.8 20 50 0.9 0.95 47.5
100 0.9 10
Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 10
Constraining with two situations
Mine and refinery capacity constrain: Qm gm Qr
(tonne) (lb/tonne) (lb)
𝑄M = 100 𝑡𝑜𝑛𝑛𝑒𝑠 and 𝑄9 = 40 𝑙𝑏
100 0.0 50.0
100 0.1 49.5
Asumsi:
100 0.2 48.0
• CoG 0.4 menghasilkan 42 lbs. 100 0.3 45.5
• CoG 0.5 menghasilkan 37.5 lbs. 100 0.4 42.0
100 0.5 37.5
Maka, 40 lbs (refinery capacity) berada di antara 100 0.6 32.0
0.4 dan 0.5. Menggunakan interpolasi, gmr 100 0.7 25.5
didapat: 100 0.8 18.0
𝑔M9 ≅ 0.456 lb/tonne 100 0.9 9.5

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 Optimum CoG
Pm Pr Pc gm gc g Pm Pc Pr
gm = 0.1
gr gmr gmc gcr 0.0 4,000 1,000 3,250
5,000 gc = 0.4
0.1 4,100 1,700 3,386 gr = 0.16
4,000 0.16 4,064 2,024 3,410

4,000 2,200 3,400

gmc = 0.5
0.2
3,000 gcr = 0.6
0.3 3,700 2,500 3,287.5 gmr =~ 0.456
2,000 0.4 3,200 2,600 3,050
Profit ($)

0.5 2,500 2,500 2,687.5

1,000
0.6 1,600 2,200 2,200
0 500 1,700 1,587.5
0.7
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
-1,000 0.8 -800 1,000 850

0.9 -2,300 100 -12.50

-2,000 -3,125 -425 -511.25
Grades (lb/tonne) 0.95

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 12

Grade-tonnage relationship
Sebuah tambang tembaga sulfida menggunakan metode tambang bawah tanah dengan
model sebagai berikut:
• Total tonnage of mineralisation: 18,6 juta ton
• Grade distribution: Lognormal
• Average grade: 3,4 % Cu
• Block model size: 5x5x5 metres
• Standard deviation of block grades: 2,5 % Cu
1. Gambarkan hubungan grade dan tonnage. Tunjukkan hasilnya dalam tabel dan grafik.
2. Asumsikan mine recovery 100% dan dilusi 0. Menggunakan informasi poin pertama,
mill recovery 94%, copper price $3,85/lb, NSR (fob) 70%, dan mining/processing cost
$95/ton. Gambarkan grafik CoG-profit dan intepretasikan.
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Jawaban 1
1. Transformation dengan menghitung logarithmic standard deviation (𝛽),
logarithmic variance (𝛽l ), and logarithmic mean (𝛼).
𝜎l
𝛽= ln l + 1 Tonnage Average grade
𝜇 20 16
l
𝛽 14
𝛼 = ln 𝜇 −

AVERAGE GRADE (% Cu)

2
15 12

TONNAGE (mil.)
2. Hitung Z-score 10
𝑥
ln 10 8
𝜇 𝛽
𝑧= ±
𝛽 2 6

5 4
3. Hitung 1 – CDF
2
1 𝑧l
=1− 𝑒𝑥𝑝 − 0 0
2𝜋 2
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
CUTOFF GRADE (% Cu)
4. Hitung tonnage dan grade
𝑡𝑜𝑛𝑛𝑎𝑔𝑒 𝑜𝑟 𝑔𝑟𝑎𝑑𝑒 = 1 − 𝐶𝐷𝐹 ×𝑑𝑒𝑝𝑜𝑠𝑖𝑡 𝑜𝑟 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑔𝑟𝑎𝑑𝑒
Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 14
Jawaban 2
1. Hitung copper yang diproduksi (Metal quantity) 2000
𝑀𝑒𝑡𝑎𝑙 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 = 𝑂𝑇×𝐴𝐺×𝑟𝑒𝑐 1800
1600
2. Hitung revenue

PROFIT (mil. $)
1400
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑚𝑒𝑡𝑎𝑙 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦×𝑁𝑆𝑅×𝑝𝑟𝑖𝑐𝑒
1200
1000
(Don’t forget unit conversion)
800
600
3. Hitung cost
400
𝐶𝑜𝑠𝑡 = 𝑂𝑇×𝑀𝐶/𝑃𝐶 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
CUTOFF GRADE (% Cu)
4. Hitung profits
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡

Kesimpulan, Profit maksimal ($1,884) menunjukkan cut off grade optimal (1.7%).

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Daftar pustaka
• Hustrulid, W. A., Kuchta, M., & Martin, R. K. (2013). Open Pit Mine
Planning and Design (3rd ed. Vol. 1 – Fundamentals). Boca Raton,
Florida: CRC Press.
• Kumral, M. (2020). Cut-off grade strategy.

Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 16

 Terima kasih
atas perhatian
dan
partisipasinya

Questions
Aldin Ardian - Strategi cut-off grade - aldin.ardian@upnyk.ac.id 17