Energy and natural resources
Strip ratio
Tonnes of waste rock removed for each tonne of ore in an open-pit mine.
Facts checked against sources onWhat does Strip ratio mean?
The strip ratio is the amount of waste rock (overburden) an open-pit mine must dig and move to reach each tonne of ore. Example: a strip ratio of 3 to 1 means moving 4 tonnes of material in total for every tonne of ore. If moving a tonne costs 2, mining costs 8 per tonne of ore; at a strip ratio of 5 to 1 it becomes 12. Strip ratios usually rise as a pit gets deeper, and a rising strip ratio can make an open pit uneconomic, pushing a miner to go underground or close.
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Related terms
- Ore gradeHow much metal a tonne of ore contains.
- C1 cash costA mine's direct cash cost to produce one unit of metal, after by-product credits.
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- Lifting costThe cost of producing oil or gas from wells that already exist, per barrel.
- Full-cycle breakevenThe oil price a project needs to cover all its costs, including building it, and earn its required return.
- Fiscal breakeven oil priceThe oil price a government needs to balance its budget.
- Crack spread (refining margin)The gap between the price of crude oil and the prices of the fuels made from it.
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