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The title of my address today is "Oil and Gas Valuations - A Simplistic View of Some Critical Issues". Alternatively I could have called this address "Pitfalls for investors' and corporates in accessing Independent Experts Reports" 'as in this brief 12 minute talk I will briefly comment on some common misconceptions with regard to the valuation of exploration areas and production interests, and comment on how the draft release guidelines address these issues.

Jan 1, 1989

The Kiirunavaara apatite-magnetite orebody is about 4 km long and approximately 100 m thick sheet-like body, which lies roughly in a north-south direction and dips from the horizontal plane along its entire length, in towards the town of Kiruna. The origin of this orebody has been a matter of controversy, with both magmatic and hydrothermal origins proposed. Traditionally and for practical purposes this rich apatite-magnetite ore has been divided into two main types: low phosphorous ore (B-ore) and high phosphorous ore (D-ore). Further the low phosphorous ore is divided into the low alkali (B1) and the high alkali (B2) ore.

Jan 1, 2006

By A Smith

Rock masses usually exhibit scale dependent mechanical properties primarily due to presence of discontinuities and their inhomogeneous nature. One of the essential preconditions for selection of appropriate strength and deformation parameters of a rock mass in relation to tunnel design is assessment of the scale of the joint network relative to the scale of excavation. In tunnel design practice, scale effects are estimated indirectly using small-scale unconfined compressive strength (UCS) tests and rock mass classification based empirical correlations. Large-scale UCS tests have the benefit of direct assessment of anisotropic and scale dependent properties of a rock mass.This paper presents results of a large-scale UCS test on a jointed siltstone. A 450 mm diameter sample with inclined bedding planes was cored and tested in uniaxial compression until failure with load and displacement measurements. The aim of the test is to determine strength and deformation parameters and correlate them with results of small-scale UCS tests of the same sample. The relationships between the small-scale and large-scale rock mass parameters were validated against published correlations from the literature.

Mar 8, 2011

The mining industry has expanded significantly in the Pacific Region over the past two decades through a mix of new developments and brownfields expansions of existing operations. Despite this overall success there are also a number of well publicised examples of less than successful minerals ventures. These problem developments highlight the fact that success cannot be taken for granted and that rigorous planning and attention to detail is essential. The dominant growth has come through expansion of existing businesses, notably alumina, iron ore and coal, achieved through both efficiency gains on existing plant and step change capacity additions such as new mines and/or expanded processing plant. This expansion has largely been linked to increased market opportunities. The major issues are the quality and extent of the host resource, achieving the market targets, and the efficiency of the expansion effort. There can be also a range of site specific issues which need to be addressed. The development of new greenfields operations is often more complex as it can bring a wide range of new issues. Depending on the nature of the development, and the companies involved, these can extend from initial financing through to obtaining a market position. Incorporating major new technology and/or establishing infrastructure and attracting staff to remote locations can also add significant challenges. This paper outlines many of the critical factors which need to be considered prior to proceeding with major expansions or greenfields developments. These will be linked to a number of developments in the region over the past decade.

Jan 1, 2004

By P Christen

The Ernest Henry Copper gold mine situated in North West Queensland, Australia, is owned and operated by Xstrata Copper. Currently the open pit produces 11 Mtpa of ore. With open pit mining ceasing in mid 2011 development has begun on an underground sublevel cave mine to extend the life of the operation by another 12 years. When completed the open pit will be 530 m deep and 1.5 km in diameter. The orebody dips at approximately 45° and has been outlined a further 450 m below the base of the pit. This provides some challenges for the Ernest Henry underground mine which is designed to initially truck development and production ore from the end of the pit until a hoisting shaft is commissioned in 2013. Production will then increase to 5.0 Mtpa on its way to an ultimate rate of 6.0 Mtpa in 2016.This paper will focus on the capital development and infrastructure requirements for the underground mine. Areas covered include mine accesses, ore handling system, accommodations for the dip of the orebody, primary ventilation design, dewatering systems and selection of an underground workshop over surface only maintenance.Discussions include the complications arising due to the mine being located directly below a large open pit and the combination of first principle cost analysis and risk assessment which has been used to safely optimise the feasibility study designs.

Mar 21, 2011

By H Kurth

Mining geologists utilise many technologies to map, sample, measure, model and plan before and during the mining process. Predicted ore quality rarely corresponds with feed quality determined by process operators. Objectively measuring conveyed material quality accurately in real time avoids disagreements over mined ore quality and generates opportunities to improve mill feed quality.This paper discusses the well proven PGNAA (prompt gamma neutron activation analysis) technology used in the GEOSCAN-M elemental analyser that is ideally suited to measuring composition of primary crushed conveyed material in real time. Representative, continuous, fully penetrative measurements are unaffected by particle size, belt speed, mineralogy, dust or layering on the conveyor. Material can be directed to processes or stockpiles by utilising measurement increments of typically one to five minutes and then activating diverters to direct increments to the correct location. Waste, low-grade or deleterious material can be rejected to waste dumps or stockpiled for later processing. Material meeting a product specification can bypass unnecessary processing. Paybacks in weeks have been achieved for such applications. Process operators are able to control the blend of ores fed into the mill to improve processing performance and use measurements for ore reconciliation and metal accounting. Utilising the technology to upgrade ore quality after mining and before processing is beneficial in improving plant economics.The technology has been successfully utilised in base metals, ferrous metals and industrial minerals. Mining geologists can determine ore quality being produced in real time and modify the ore quality prior to milling. Ore feed quality measurements are also used by process operators in optimising plant performance. The elemental content can help identify geometallurgical domains as well as other major changes in quality, which may affect processing. This paper outlines proven applications and case studies and proposes some innovative applications.CITATION:Kurth, H, 2017. Measuring ore quality using real-time on-belt elemental analysis – more than grade control, in Proceedings Tenth International Mining Geology Conference 2017, pp 213–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By A Castillo, K Wiese, L Panduro Robles

For decades, organisations worldwide have been working to overcome challenges associated with new technology adoption while keeping up with rapid growth, development, and globalisation. In minerals processing, the challenges in developing and implementing solutions that contribute to the mining value chain are unique from other markets, as mining operations expect that world-class suppliers provide them solutions to gain a competitive advantage in their operation, production, performance as a financial asset, and as a long-term partner as we move into the future of mining. A simple shift in mindset is proven key to successful technology implementation. Change leaders must no longer think of their expertise in the area of application as their only responsibility; they must make a mental shift and see themselves in dual roles that strive to integrate the perspectives and needs of both developers and users. Successful change leaders must: (1) collaborate, seeking user involvement to ensure fit between product and operational needs, (2) demonstrate commitment to receive new technology, and (3) communicate to achieve an eventual shift of ownership from supplier to users that is seamless. Additionally, this strategy contributes to the mining value chain, as it allows developers and implementers to evaluate how change contributes to the asset’s position both within the company and in the commodities market. This paper will explain the shift in perspective for new technology implementation in detail and provide recommendations that operations can emulate, using examples of real challenges and lessons learned during a commissioning of the CYCLONEtrac™ Particle Size Tracking (PST) system at Cerro Verde’s C2 Concentrator. This concentrator has led technological change for plant optimisation, witnessed improved Net Metal Production (NMP), among other benefits with PST, the only technology in the market capable of providing real-time, online, and direct particle size measurement at the individual hydrocyclone level

Aug 24, 2022

The borehole televiewer is a downhole geophysical logging device that produces continuous, oriented, 360¦ images of the drill hole wall. Two types of borehole images are currently being generated at the BHP Billiton Mount Whaleback deposit. The optical televiewer (OTV) tool captures a ærealÆ image of the borehole wall whereas an acoustic televiewer (ATV) generates an image through variations in physical borehole size, scattering the energy from an acoustic beam. Orientation of the resulting ævirtual coreÆ is derived through magnetometers and accelerometers, providing values within one degree for both inclination and azimuth. Downhole structures such as fractures, joints, foliations and bedding planes are selected directly off the borehole image, recorded and displayed in a 3D modelling package along side adjacent drill holes. Measurements are corrected from apparent to true dip and magnetic to true north. Strata-bound magnetic anomalies are identified and corresponding measurements excluded. The importance of borehole imaging increases substantially with its ability to integrate the OTV and/or ATV data with other forms of lithological and structural data. At Mount Whaleback, the borehole televiewer has been implemented to provide information for geotechnical exploration including structural analysis, lithological characterisation and rock-mass conditions. Within the large area in and around Mount Whaleback, drilling may intersect a number of different geological formations with various rock types and conditions. With the application of the borehole televiewer, reverse circulation drilling can provide information traditionally obtained by diamond drilling.

Jan 1, 2007

Dust emissions from mining, material processing and ship loading operations (fugitive dust sources) are an environmental issue of increasing concern to both government regulators and the community. The main concerns relate to potential amenity, health and environmental impacts from the emissions. Therefore it is imperative that mining/ processing operations, as part of their overall environmental management, reduce fugitive particulate emissions to as low a level as is practicably possible. This technical paper outlines the mechanisms that lead to fugitive particulate emissions, the importance of understanding the exact cause of fugitive emissions, monitoring methods that can be used to quantify the emissions from specific sources, the use of atmospheric dispersion modelling in dust management and innovative dust management strategies including predictive meteorology and proactive management.

Jan 1, 2009

By Garg R. K

Himalayan ranges on the northern border of India are source of many perennial rivers and suitable sites for large dams have been located therein. However, Himalayas are young mountains and comprise of comparatively weaker rocks having adverse geological features like shear seams, thrust zones, minor and major faults and intense jointing. Tehri dam project under construction, is located in lower Himalayas. It envisages construction of a 260.5 m high earth and rock fill dam and an underground power station of 2000 MW (Eight machines of 250 MW each, four of which will be reversible) installed capacity. This dam will be the highest and the underground complex will be the largest to be constructed in India in the Himalayas. The under- ground complex comprises of 25 km of tunnels varying in diameter from 6 m to 11 m and seven large cavities of various sizes, the biggest being 22 m in width, 194 m in length and 65 m in height. Rock formation in the power house complex belong to phyllites having various joint sets spaced from 0.5 m to 3 m. Due to the poor geological conditions and closely spaced net work of large cavities, the planning, analysis and design of the cavities is a challenging job. Many aspects have to be considered in determining the sizes, locations and orientations of the various cavities taking into account the properties and jointing pattern of rock mass, functional requirements and economics. Correct evaluation of loads and forces is necessary for economical design of supporting system for the various cavities. Rock loads on the roof of cavities and their supporting system will be assessed with the help of the latest methods. The stability of the rock mass around the cavity will be evaluated by elasto- plastic method using finite or boundary element techniques. A scheme of field investigations, laboratory tests and instrumentation for deter- mining rock properties in preconstruction stage and for monitoring behaviour of the underground cavities during and after construction is envisaged.

Jan 1, 1987

By J E. Wajon

This paper discusses the background, requirements, need and content of plans for management of drinking water self-supplied to mining-related operations, including construction camps, especially in remote areas of Western Australia. The paper discusses the importance of cooperation between regulators, the mine site operator and the consultant in preparing a plan fully compliant with the Australian Drinking Water Guidelines to protect the quality and safety of drinking water supplied to mine sites. The paper outlines some of the issues that need to be addressed in preparing a drinking water quality management plan, such as hazard identification, risk assessment, the multiple-barrier approach and the concept of critical control points. Data requirements, monitoring, incident management, training and reporting are also covered.CITATION:Wajon, J E, 2013. Drinking water quality management for mining operations in Western Australia, in Proceedings Water in Mining 2013 , pp 321-328 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By G McKay, M Erskine, S Macklin

The City of Sydney is currently investing in a number of infrastructure projects that require tunnel excavations within the Triassic Hawkesbury Sandstone. It is generally accepted that this formation has high residual stresses of ‘tectonic’ origin, so much so that these stresses have been implicated in a number of well-known failures and problems for tunnelling. These include failure of ‘roof beams’ comprising discrete beds in the crown of tunnel excavations; stress-induced spalling and ‘slabbing’ of tunnel walls; shear displacement between beds causing the failure of rock bolts; strain in adjacent infrastructure and, the necessity for re-grouting of high conductivity fractures due to stress relief dilation after excavation. Whilst there is an extensive published database of in situ stress measurements comprising ‘hydrofrac’, ‘over-coring’ and ‘slotter’ stress measurements, these data indicate a considerable spread of results. The traditional approach to interpreting this data has been to attempt to fit linear correlations to stress versus depth data, based on personal experience and ‘back-analysis’ of monitoring data during construction. However, there are a number of such correlations in the literature and there is divergence of opinion regarding the assessment of ‘background’ in situ stress and appropriate upper and lower bound values for design. This paper provides a brief review of the published data; suggestions on an alternative ‘risk-based approach’ to assigning in situ stresses for design; and, proposals on how in situ stress tests may be conducted in future to improve the quality of the database available to designers.CITATION:Macklin, S, McKay, G and Erskine, M, 2014. A review of the in situ stress database for tunnel design in the Hawkesbury Sandstone, Sydney, New South Wales, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 171–178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By D Eschebach, D Mathewson

A belt press filter (BPF) handbook containing practical information for the reference of plant designers and operators has been created as part of Australian Coal Association Research Program project C23040. The handbook combines research and experience with newer generations of equipment and circuitry. BPFs are increasingly finding application in the dewatering of thickener underflow tailings slurries due to changing environmental regulations, difficulty obtaining tailings storage facility approvals and limited water availability. Sources of BPF inefficiency and low availability stem from a lack of understanding of the key operational parameters that affect their performance. This lack of understanding typically leads to increased operational expenditure due to suboptimal reagent dose rates and increased maintenance costs, or decreases in plant availability due to excessively high filter product water contents and equipment failure. It is essential for the continued economically competitive operation of Australian coal handling and preparation plants that complex factors affecting BPF operational performance are clearly defined and understood. Installation and operation handbooks are often provided to sites with new installations, but these manuals are manufacturer- or even model-specific and are often focused on mechanical maintenance. The handbook identifies industry ‘best practice’ and improvements developed by other sites, such as extra spray bars, air system bleed valves, guarding designs, feed and filtrate protection screens and roller tensioning systems. Equations to predict optimum operating conditions – such as free moisture, belt tension and reagent dose rates, with simple feed-specific variable inputs – have been developed from site-specific test work. The correlations developed provide a benchmark for plants to attempt to achieve. This provides operators and process engineers with a tool to explain BPFs and assist them in optimising the performance of BPF dewatering plants of both contemporary and less modern design.CITATION:Mathewson, D and Eschebach, D, 2015. ACARP belt press filter design, operation and maintenance handbook, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 73–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

Accurate geometric models of orebodies establish the framework for reliable mineral resource estimates that provide a basis for further exploration and mine planning, as well as for financial models that ultimately determine the economic viability of a deposit. Traditional, explicit geometric modelling techniques that are utilised for resource modelling by the general mining software packages, such as MineSight«, involve manually digitising interpreted ore outlines that must be carefully linked to create valid geometric solid models. An alternative, implicit modelling method, employed by LeapfrogTM software relies on a fast method of global interpolation, which offers several advantages over traditional modelling techniques. Although previous case studies have documented the relative efficiencies of the two approaches, the accuracy of the two methods has not been previously quantified and compared. This study quantifies the accuracy of solid models created using explicit and implicit methods, and compares the differences between the models. Solid models of the Doris Hinge vein gold deposit (located in the Hope Bay district, Nunavut, Canada) are constructed from preliminary and follow-up drilling data using both modelling techniques. The accuracies of the solid models generated using preliminary drilling data are determined by measuring the 3D distance between the surface of the models and the actual contact location defined by the follow-up drilling data. Additional comparisons based on volume, cross-sectional area and surface differences were made between both phase 1 solid models and solid models constructed from phase 2 drilling information. The overall results of this study find that the MineSight« and LeapfrogTM solid model accuracies are virtually the same, and that their volume, cross-sectional area, and surface differences are comparable. This study concludes that the implicit modelling technique generates accurate solid models that can be used in place of explicit models as ore shells for resource estimation in certain circumstances.

Jan 1, 2006

By D H. Laubscher

The in situ rock mass rating system û IRMR - leading to the mining rock mass rating system - MRMR - for jointed rock masses has been used (and abused) in mining operations around the world for the past 27 years. Despite the recent development of elaborate design procedures and computer-aided design packages, MRMR remains one of the most versatile and practical mine design systems available. It is important to realise that the rock mass classification system should not be replaced but rather complemented by more sophisticated and detailed design procedures. The classification system is not only the æcrudeÆ method used for initial assessment (as described in some geotechnical literature) but also in many respects a very effective and practical engineering tool. MRMR could, and should be used during the entire stage of mine life as an integral part of the design process. The objectives of this paper are to illustrate using practical case histories from the past decade, some of the pitfalls of the MRMR classification system, to clarify certain misconceptions in its application and update its mining application.

Jan 1, 2000

By H Benzer, N A. Aydogan

It is well known that the high pressure grinding rolls (HPGR) can only be operated efficiently under choke feeding conditions in which a material bed is built up between the rollers to ensure interparticle breakage. By increasing the fines amount in the material bed up to a specific level with the recycling load, a uniform material bed is created and higher pressure gradient along the roller width is obtained which results in compact flakes including more fines. Extensive test work has been carried out with an industrial HPGR unit grinding cement clinker in a cement plant in Turkey. During the test work the recycling load of the circuit was changed to achieve different ratios to the fresh feed rate in order to identify the effect of the recycling load on the circuit performance. Six different tests were performed with the circuit at steady state. For each test, samples were collected from HPGR fresh feed and discharge, and total feed, then the particle size distributions of the samples were determined and mass balances around the circuit were calculated. The conclusion was that the reduction ratio of the HPGR increased with increase in recycling load. The flake densities showed the same trend with more compacted flakes being produced for higher recycling loads.

Jan 1, 2009

By S Bhandari

A model for predicting dust plume dispersion from blasting operations using the Eulerian mathematical algorithm has been developed. This model considers atmospheric stability, and wind velocity and direction for computing dust concentrations at different distances from the blast. Software has been developed which simulates the movement of a dust plume at a given horizontal distance from the blast location and time elapsed after the blast. The concentration of dust is also given in vertical planes. It takes into account ground profile and atmospheric conditions such as temperature, pressure, humidity, wind velocity, wind direction and shear. Experiments were carried out in two limestone mines to calibrate the accuracy of the predictions made by such model. High volume dust samplers were used to collect dust samples. Difficulties encountered in satisfactory dust sampling and quantification of results have been described.

Nov 8, 2011

By T M. Campos, H A. Petit, L M. Tavares, R Olympio

Much practical experience has been gathered in the last 30 years of application of high-pressure grinding rolls (HPGR) integrated with ball milling in size reduction of fine iron ore concentrates. The company Vale S.A, in Complexo de Tubarão (Brazil), was one of the pioneers applying the technology prior to pelletisation with an outstanding size reduction energy efficiency in the circuit and a significant increment in the specific surface area of the product. Recent studies by the authors demonstrated benefits of modelling and simulation to improve the performance of HPGRs in this particular application, with the model being able to describe HPGR performance under different operating conditions and under variations of feed size distribution. Despite these important advances, this modelling approach has only been used offline and under steady-state conditions. The present work applies the modified Torres and Casali model proposed by the authors in pseudodynamic simulations. The ability of the model to predict the characteristics of the product in real-time is evaluated using data available online for the pellet feed preparation circuit. Results demonstrated the model capabilities to map the physical operation and give a realistic representation of the process. Additionally, the model is demonstrated to be able to support the pellet feed production by providing extended real-time information of the process, making it a useful tool for improvement of the operational strategies and process stability.

Aug 24, 2022

By F C. D Michelin

Blast fumes are a significant health risk to underground workers, containing several dangerous gases such as carbon monoxide (CO), nitrogen oxides (NOx) and ammonia. To ensure safe working conditions, workers are not normally allowed to re-enter a mine until the gases are cleared. To predict if gases can be cleared efficiently, simulations can be performed to estimate the gas levels following a blast. For accurate modelling, a calibrated airflow simulation is required in addition to blast-specific parameters such as the yield rate (representing the amount of gas released per kg of explosive) and the dispersion factor (representing how quickly the gases can enter the air stream from the explosive site). Those parameters are not easily determined, as they will vary from blast to blast. Many post-blast gas recordings on mine sites were studied and the correct parameters were determined to ensure an accurate gas simulation. The variability of the results was then analysed and correlation to known parameters is suggested. Finally, recommendations on how to determine the correct parameter are presented.

Oct 12, 2022

By D Lalor, N Goodman

The increasing demand for batteries is resulting in the development of large-scale projects for the production of key battery metals such as nickel and vanadium. Several of these projects plan to extract the battery metals from the ore via chemical roasting, leaving large volumes of waste iron oxides after fuming and/or leaching of the battery metals. These iron oxide wastes can be smelted in a HIsmelt furnace using biochar as the reductant, to produce clean, green pig iron with net zero carbon emissions. This green pig iron can then be added to basic oxygen or electric arc steelmaking furnaces to produce green, net zero carbon, steel. This paper describes the flow sheets and the economics for potential projects producing green pig iron via HIsmelt using waste iron oxides from nickel and vanadium production plants.

Sep 18, 2023