Finding The Mining Sequence And Cutoff-Grade Schedule That Maximizes Net Present Value

A dynamic programming algorithm is presented that takes a series of nested phases, a fixed mining-rate schedule and a fixed plant-production-capacity schedule, and, from these, finds the mining and cutoff grade sequence that maximizes the net present value. This tool allows the mining engineer to quickly look at project sensitivity to various production capacities, commodity prices and costs. A description of the algorithm is given along with examples of how it has been used at Newmont Gold.