Break-even is broken, an article co-written by AMC’s Brian Hall, was number one on the list of The AusIMM Bulletin’s top ten most-read articles in 2016. Given The Bulletin’s prominence and reach in the industry, this is a considerable achievement for the authors.
The article explores why the use of the break-even cut-off grade is flawed, and how it poses a fundamental problem for the mining industry. It was published in both The AusIMM Bulletin’s website and AMC’s quarterly newsletter Digging Deeper.
This is a quote from the article:
“The authors suggest that mining with a properly engineered mine plan at the grade that delivers the company’s goals is ‘right grading’. Typical plans are therefore sub-grading, which should be just as pejorative a term as high grading. To a sub-grader, right grading will look like high grading. But what right grading has eliminated from the sub-grader’s mine plan is material that is actually destroying value, which should not have been in the plan in the first place. Sterilising value-adding material is not destroying value, which is the feared outcome of high grading.
Mining is a business, and a business does no one any favours by setting itself up for failure.”
About AMC Consultants
AMC Consultants is a leading mining consultancy serving the exploration, mining, and financial sectors. We work with our clients to plan new mines or improve the operations of existing mines, with a focus on achieving optimum output and return.
Since establishment in 1983, AMC has completed more than 8,000 assignments in more than 100 countries. Our extensive experience has enabled us to develop innovative tools and a unique resource of global mining data with which to assist our clients. Collectively, we have more than 3,000 years of combined consultancy and operational experience to bring to our clients’ projects.
About Brian Hall
Brian Hall (FAusIMM CP(Min) CEng MIMMM RPEQ) is an internationally-recognized expert in optimization of mine plans and strategies for underground and surface mines. This is built upon his expertise in planning for underground metalliferous mining operations, including detailed mine designs, technical assessments, feasibility studies, and strategic planning. During the past 15 years, Brian has specialized in the optimization of cut-off grades and strategic mine plans.