The optimal sequence of decisions on rates of production and cutoff grades is obtained by a dynamic programming model. The main parameters are : 1. the size of the deposit, average grades and grade distributions, 2. the operating costs of mining and concentration, 3. the investments in mine and mill, 4. the smelter charge, 5. the price(s) of the metal, 6. the recovery and the grade of the concentrate, 7. the rate of interest, 8. the taxation formulae, 9. the upper limit to rate and the rate interval and 10. the upper and lower limits to cutoff and the cutoff interval. An amount of ore can be mined at various rates while applying various cutoff grades._x000D_
It is assumed that a decision to mine at a certain rate during a period conducts to a certain state regardless of the cutoff grade._x000D_
This assumption which is valid for several