Finding a Mine Within a Mine - The Mount Isa Lead/Zinc Case Study

Over the last 15 years the silver/lead/zinc ore treated at Mount Isa became increasingly complex and lower grade. Metal recoveries dropped dramatically, causing a serious decline in profitability. The ætraditionalÆ response of increasing tonnage to reduce unit cost was unsuccessful, since the additional tonnage was even lower quality ore. A major technical and capital program in the 1990s restored metallurgical performance, but business return was still too low and ore quality continued to decline. In 1996 a new, holistic approach integrated the steps of geology, mining, concentrating, smelting, and refining. Previous assumptions about æfixedÆ and æmarginalÆ costs in mining and processing were shown to be wrong. Detailed analysis showed that some ore sources were reducing profit. This led to a fundamental redesign and downsizing of both Mount Isa and Hilton mines. The result was dramatic increases in head grades, metallurgical performance and plant stability without any capital expenditure. The business is now smaller, but more profitable.