Introduction
MEC Case Study: Rebuilding a Copper-Molybdenum Mine Plan to Maximise Cashflow and NPV
Project Stream: Conceptual / Preliminary Works
Project Stage: Resource Development Plan
Type of Mine: Open Pit
Region: International
Commodity: Copper & Molybdenum
The Challenge
Our client was seeking to maximise value from a large copper-molybdenum asset containing 364 Mt of reserves.
The existing Life-of-Mine plan, pit staging strategy, and cutoff grade approach were not aligned to the deposit’s true economic potential. High-value ore was being accessed later than necessary, pit sequencing did not follow the optimal economic shell, and tailings constraints further restricted value generation.
Without intervention, the operation would continue to sacrifice early cashflow, reduce overall project value, and operate with inefficient waste movement and staging sequences.
The Approach
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Mine Plan Validation & Opportunity Assessment: MEC reviewed the existing block model, Life-of-Mine plan, and stage designs to identify misalignment between the current mining strategy and economically optimised outcomes.
- Strategic Pit Re-Optimisation: Using Vulcan and Maptek Evolution Strategy, our team rebuilt the optimisation framework from first principles, re-running pit optimisations and redefining stage layouts.
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Cutoff Grade & Schedule Optimisation: Multiple cutoff grade strategies and production schedules were tested to determine the most value-accretive approach while accounting for operational and processing constraints.
- Integrated Constraint Modelling: Tailings capacity, haulage requirements, dilution corrections, and operational limitations were incorporated into the optimisation process to ensure practical and implementable outcomes.
The Outcome
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Total project cashflow increased by 40% compared to the Base Case.
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NPV improved by 25%.
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Higher-value ore was brought forward in the mining sequence.
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Mine life was extended through improved staging and scheduling strategies.
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A practical, value-maximising mine plan was developed for future implementation.
Key Impact: The study demonstrated how strategic mine planning, staging optimisation, and economic cutoff grade management can unlock substantial value from existing assets without increasing resource inventory.
Next Steps
The optimisation study has been completed, with the client now progressing operational design updates to align with the new strategy. Future work includes updated stage designs, refined tailings dam sequencing, revised haulage estimates, and development of an updated Life-of-Mine plan.
Conclusion
Turning technical analysis into measurable project value through smarter mine planning and strategic optimisation.