Excavation and loading are primary operations in the surface mine production chain, constituting a significant component of production costs. This makes excavation and loading important cost centers that need to be improved to lower production costs. Optimizing the design and use of excavators will improve energy efficiency in earthmoving operations, and this requires a thorough understanding of the soil-tool interaction process. Modeling the interaction process accurately is the key to this optimization. Experimental and analytical methods have provided limited information on the behavior of soils during excavation. Finite element (FE) analysis of soil-cutting blade interaction produces some advantages over experimental and analytical methods. However, the soil constitutive equations used in most of the available FE analyses fail to adequately model the plastic behavior of the soil. This work uses FE modeling to study the behavior of formation-cutting blade interactions in dozer excavation. The formation is modeled as a nonlinear elastoplastic material using the modified cam-clay (MCC) model. The model accounts for soil-tool interface friction, and progressive and continuous cutting at the blade tip. The results provide soil forces, a progressive developed failure zone and soil displacement fields. The sensitivity analysis of changes in blade angle on cutting force shows that the cutting force increases with increasing blade angle. The cutting depth of the blade had a similar effect on blade cutting force. Increasing the depth of cut increases the required cutting force. Increasing the coefficient of friction at the soil blade interface increases the blade cutting force. Reducing the coefficient of friction at the soil blade interface from 0.3 to 0.05 reduces the cutting force by 22.3%. The percentage represents the maximum potential savings in blade cutting force. This research initiative advances the frontiers of soil-tool interactions during excavations to expand the limited knowledge in this critical area.