Dilution has a significant negative impact on mine profitability by lowering the ore grade delivered to the processing plant. This reduction in grade means less metal is recovered per ton of material, directly decreasing revenue while simultaneously increasing operating costs (Groundhog Apps, n.d.).
When waste is unintentionally mined with ore, the economic performance of the operation is compromised in several key ways:
- Decreased Revenue: Lower grades in the mill feed result in reduced metal output, directly cutting into revenue. In some cases, previously viable ore blocks may become entirely uneconomic to process (Groundhog Apps, n.d.).
- Higher Operating Costs: Processing additional waste material consumes more energy, reagents, and time raising the cost per ton of material handled.
- Lower Metal Yield & Recovery: Diluted ore often leads to less efficient processing and increased metal losses due to the lower concentration of valuable minerals.
- Reduced Recoverable Reserve: Excessive dilution can render certain ore zones uneconomical to mine, effectively reducing the recoverable reserve base and shortening the mine’s life.
- Impact on Cut-off Grade: Greater dilution may require the operational cut-off grade to be raised, resulting in potentially profitable lower-grade material being left behind.
For a mining project to succeed, every tonne counts. Understanding how dilution affects mine profitability is key to strategic planning. What’s one critical metric or practice you use to immediately quantify and mitigate the financial risk of dilution?
References:
Groundhog Apps. (n.d.). Unlocking Efficiency: Ore Dilution and Quality Control in Open-Pit Mines. Retrieved from https://groundhogapps.com/unlocking-efficiency-ore-dilution-and-quality-control-in-open-pit-mines/
