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By C Tapia Cortez, C Sammut, S Saydam, J Coulton

‘Like every other commodity, the value of the metals is subject to variation’ (Ricardo, 1817). Mineral commodity price uncertainties have always been a significant issue in mining business due to the close relation between global economic conditions and commodity prices, which commonly generates significant and unexpected price fluctuations. Price forecasts have been driven by economic theory, which states that in the long-run market will be balanced and that prices tend to the marginal cost of production. However, this theory has been misunderstood in the mining industry and future prices through time, in real terms, are assumed to be unchanged. This is unrealistic due to regardless of the cycling nature of economy and the omission of uncertainties. Furthermore, using historical data in traditional price forecast approaches does not guarantee realistic predictions as past events will not necessarily be repeated at the same intervals and with the same intensity. Mining, finance and economic sectors have made significant research efforts to predict prices and control uncertainties through classic linear, Gaussian and probabilistic simulation approaches. However, by definition, uncertainties cannot be measured or accurately modelled. Uncertainties can be identified to measure and manage the associated risks; therefore, uncertainties in mining projects have been historically misinterpreted, erroneously measured and poorly controlled. It is widely known that supply and demand functions drive market prices. While technological development noticeably influences supply, demand is strongly driven by psychological factors, mainly related to customer preferences and lifestyle expectations. Thus, human behaviour is one, or if not, the most important variable to determine commodity prices in a competitive market. During the last decades, alternative methodologies have been used to study uncertainties in human, environmental and market behaviours. Chaos theory, fractals, artificial intelligence and econophysics have been widely and successfully used to investigate complex dynamic systems to address uncertainties over time in the fields of neurosciences, meteorology, aviation and market trading. The application of these techniques in the market suggests a more realistic approach to the business environment. Through the combination of the methodologies above a novel long-run price uncertainties simulation approach that emphasise the differences between risks and uncertainties is proposed in this paper. CITATION:Tapia Cortez, C, Saydam, S, Coulton, J and Sammut, C, 2015. Copper price uncertainties – chaos theory to manage risks in mining projects, in Proceedings Third International Future Mining Conference, pp 261–272 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By G B. Smith, G M. Marshall, A Querzoli

The South Australian mining regulatory framework has adopted a performance based approach to the management of risk. This approach has been in place in South Australia for more than 10 years and is increasingly being implemented in mining jurisdictions in Australia and around the world. Performance based regulation focuses on setting appropriate environmental outcomes to be achieved based on an assessment of the potential impacts associated with the development, operation and closure of mining projects. Measurable compliance criteria, including completion criteria, are set to demonstrate achievement of the outcomes. It is the responsibility of the proponent to propose designs and strategies that will achieve the regulated environmental outcomes and to demonstrate the implementation of their designs and strategies will achieve the outcomes into the future. Tailings Storage Facilities (TSFs) are significant elements of many major mines and each is unique with site specific factors such a materials to be stored, design, size, location, climate, sensitive receptors, operating history of the facility (i.e. changes to design), site culture and company capability amongst a range of other factors. Consequently a fit-for purpose approach is a key principle of best practice regulation of tailings management as it takes the site specific factors into account in setting appropriate outcomes for mitigating the identified impacts associated with a proposed development. Achievement of those outcomes through fit-for purpose, well designed management strategies would ensure safe, stable and economic storage of tailings in a manner that complies with all legislative requirements and presents negligible public health and safety risks. Tailings storage must also have acceptably low social and environmental impacts, both on and off site, during operation and indefinitely post closure. Achievement of environmental outcomes during operations and at mine completion can then be demonstrated to the regulator and community through public reporting of compliance with measurement criteria which establish the appropriate level of impact for each individual operation. A number of new mining proposals including tailings storage facilities (TSF) have recently been assessed and approved in South Australia. The location, size, design, sensitive receptors, public interest and therefore risk profiles of these TSF’s have varied substantially between these new mining proposals. These considerations were reflected in the assessment of the TSFs and the resulting mining lease conditions of approval including the environmental outcomes to be achieved over the life of the facilities. This paper and the accompanying presentation will provide case studies of recently approved TSFs within South Australia and the regulatory framework for each case.CITATION:Smith, G B, Querzoli, A and Marshall, G M, 2018. Tailings regulation – a South Australian perspective, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 166–177 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

It is possible from simple gas behavioral theories to develop more complex relationships which allow prediction of transport phenomena such as diffusivity and viscosity of gas mixtures. Such physical data can be used in engineering calculations for both bulk gas movement and gaseous chemical species movement. Both of these are important in the solution of mines ventilation systems. There are specific limits of flammibili!'y of some common mines gases.

Jan 1, 1983

By D Akis, A Clark

The Lihir gold operation, located in the New Ireland Province of Papua New Guinea (PNG), approximately 900 km north of Port Moresby, was commissioned in 1997 under the management of the Lihir Management Company, a subsidiary of Rio Tinto. This management period ended in 2005 with Lihir Gold Limited (LGL) becoming self-managed. LGL is now the largest listed company in PNG and a top tier mining company in Australia. The focus of the operation since 2005 has been to take advantage of strong market conditions to increase cash flow while driving operating costs into the lowest quartile of gold producers. During this period production has increased through capital expansions, most notably with the addition of a flotation circuit, and through culture change and efficiency improvements. The next step forward for the Lihir operation is a major plant upgrade to increase production to an average of around one million ounces per annum by matching the ore processing rate to the ore mining rate. The key benefits of this project will be the addition of approximately 240 000 ounces per annum of gold production, the access to an additional one million ounces of gold and the ability to meet all stockpiling requirements. The Lihir operation has come out of the boom period in a strong position, is undertaking a major upgrade at a time when prices are low and labour is available, and will be positioned to take advantage of future opportunities as they arise.

Jan 1, 2009

By S F. Cox

The development of low displacement, moderate to high-angle reverse faults during the formation of the Argo gold deposit within a tholeiitic gabbro host-rock involved a four stage evolution of deformation and associated hydrothermal alteration. Fault zone evolution and Au mineralisation were associated with high fluid flux, fault-valve behaviour in a severely misoriented fault zone. The far-field maximum principal stress was approximately east-west and horizontal, and the far-field minimum principal stress was subvertical. The fault system developed at approximately 400¦C in a transitional brittle-ductile regime. Initial Stage 1 deformation involved ductile shear and the development of potassic (biotite-rich) alteration assemblages and associated reaction-weakening in shear zones; minor quartz extension veins were formed. Stage 2 is marked by the onset of predominantly brittle shear failure, the widespread development ofmatrix-supported breccias in fault zones and a change to sodic (albite-carbonate-quartz) alteration styles. Extension veins have limited development. Stage 3 is also dominated by brittle shear failure and characterised by a change to quartz-carbonate assemblages in fault-fill veins and breccias. However, large arrays of extension veins are also well-developed adjacent to faults. In Stage 4, widespread subhorizontal quartz-carbonate-biotite extension veins were developed, but shear failure was limited. This is an ABSTRACT only. A full-length paper was not prepared for this presentation.

Jan 1, 2008

It is no longer adequate when starting a new mine to simply select the best equipment. Today's competitive international commodity markets demand superior efficiency which requires systematic involvement of people in continual improvement of production and commercial processes. True Total Quality of Management (True TQM) principles provide an operating philosophy for maximising productivity and minimising unit costs of output. The presentation will show the practical and successful use of these principles. This paper will introduce the case study and provide background material on True TQM.

Jan 1, 1995

By M Lovitt, T Hewitt

The extraction of drawbells in Lift #2 at Northparkes Mines E26 orebody was achieved by single shot blasting, enabled through the use of electronic detonators. This paper discusses the designs considered at the time of the feasibility study and the various changes made to these designs prior to and during the construction phase of the Lift #2 block cave. Operational issues encountered are highlighted, as are ways in which these were overcome. The amount of personnel utilised to mine the drawbells is also covered. Lists of design and operational considerations to be used for drawbell extractions have been included.

Jan 1, 2005

By Campain RA, Horner NJ, Limerick JM

The review covers the different concepts of automation which are appropriate to non-ferrous smelting and the degree to which the smelter, and the furnace in particular, is amenable to total automation. Due to the problems peculiar to a smelter, it is unlikely that a fully closed loop system could ever be achieved and that the smelter will continue to depend upon extended manual control supported by computer based information sorting and optimisation.Generally, loop control is performed using Taylor's Mod III process control system. For distinct plant systems involving a combination of process loops, sequencing, and data acquisition, the company has developed its own microprocessor based systems. Process optimisation using computer based analysis of operating data is well established. Utilising this data, computer modelling provides manual set point supervision for the furnace process control system.The impact of automation on the workforce and on operating costs is also examined. Predictions on future developments in the field of automation, optimisation and sequencing are propounded and related to the non-ferrous industry at large.

Jan 1, 1985

By Stewart R

Potential acid rock drainage from the destruction of metalliferous sulph-ides is recognised as a critical factor in the design and economics of any mining venture. While this realisation is relatively new, mining companies have embraced the issue with the aim of scientifically quantifying the magnit-ude of the problem, specific to indiv-idual properties.Coinciding with the development of the open pit mine at Porgera, a comprehensive assessment of the potent-ial for the formation of acid rock drainage was initiated in 1991. Detail-ed study of the mineralogical charact-eristics of all rock types, along with extensive test work to determine the maximum potential of rocks to generate and consume acid (known as acid base accounting or ABA), has been conducted. Correlating this with the known and interpreted geology of the open pit has indicated a strong relationship between rock type, sulphur content and the acid base character. This relationship is used daily as a simple, cost effective means for classification and management of the variety of material types produced from the minincx operation.

Jan 1, 1994

By Mould GR

Gas drainage has been practiced for many years mainly for safety reasons in various countries in Europe, in the U.S.A., the U.K. and Japan. Legislation has been developed to control the production, transport- ation and utilisation of methane and associated gases. Gas drainage is now being carried out at some Australian Collieries, but as this is a new venture little specific legislation is available. This paper briefly describes the drainage methods and legislation applied overseas, gives a brief history of gas drainage in N.S.W. and indicates the deficiencies of the present legislation. It outlines the approach to new legislation which will deal comprehensively with gas drainage operations and utilisation in New South Wales.

Jan 1, 1982

Capital expenditure on sampling and blending is often very difficult to justify. The costs are easy to estimate but the benefits likely to be obtained by constructing good sampling and blending facilities are generally difficult to estimate. For instance, improving blending of the ore feed to a smelter would improve throughput, yield and controllability ... but by how much? Similarly, better sampling would allow processing conditions to be dynamically adjusted and would improve extraction ... but by how much? Predicting benefits often requires the use of simulation models which carefully distinguish between true grades, predicted grades and observed grades. The parameters of these simulation models must often be estimated from rather inadequate information. These difficulties are illustrated using three scenarios.

Jan 1, 2005

Joint ventures exist as a means of sharing risks and obeying regulations. An unincorporated joint venture allows a company to take a share only of a project yet allows that company to treat such share as though it were an integral part of the company. The nature of the risks inherent in many ventures is described and comparisons made with alternative corporate vehicles. Different procedures for managing joint ventures are also reviewed and the types of problem encountered in establishing and operating joint ventures are discussed. The basic characteristics of successful joint ventures, in Australia, are listed and a conclusion reached that, despite its difficulties, the joint venture will continue to proliferate as a corporate vehicle for project development.

Jan 1, 1983

The current boom conditions in the Gold Mining Industry, open cut low grade gold mines have become the initial cash flow source for most companies. To achieve the required cash flow the head grade needs to be maintained at the required level. The methods of grade control to achieve .the planned head grade have evolved various systems, one of which is the Ditch Witch Trencher. The application of this machine has revolutionised open cut grade control and Geology and this paper records the various methodologies developed in the Eastern Goldfields of Western Australia.

Jan 1, 1987

By B Wiggins, M Russell

Off-gas handling systems are a critical component of modern metallurgical furnaces and typically represent as much as 50 per cent of the total installed smelter capital cost. Inadequate off-gas system performance, due to insufficient exhaust flow or excess maintenance downtime, can present a serious process bottleneck and limit smelter production rate. Therefore, it is essential that the relevant performance issues are fully understood and considered in the design of these systems, particularly when combustibles produced within the furnace must be combusted or handled in the off-gas system. This paper examines the requirements, design issues, and conceptual design process for state-of-the-art postcombustion off-gas systems. The relevant design considerations of safety, environment, energy consumption, and maintenance are presented, and the relative importance of these key issues are compared and discussed. The benefits of using computational fluid dynamic (CFD) modeling in the design process at the conceptual design stage are also demonstrated. Finally, the design basis and performance of a recent Hatch-engineered system currently in operation is evaluated.

Jan 1, 2002

The karst water system in Han-Xing District is charaterised by heterogeneity in karstification and permeability of the limestone aquifer, unsteady flowing of the groundwater along karst runoff zone system, periodic recharge related with the periodic precipitation, and concentrative discharge of the groundwater in the form of karstic spring groups. The basic law is that the quantity of the water is very large during waterflood period and rather small in dry period, which has brought about difficulties and contradictions in mining and water supply. The measure to bring the karst water under control must be based on the principle of comprehensive ways and on the systems engineering method. Macroscopiclly, it is the reasonable countermeasure to retain surface water in the upstream section of the karst water system and to strengthen infiltration in the midstream section and to combine exploitation and utilization of the groundwater with water protection and mine dewatering in the area in which mines are distributed.

Jan 1, 1988

Iron and steelmaking slags have been utilised for a century. All dumps are now exhausted. Because of constraints in establishing new stock yards, all slags have to be utilised immediately. At present, this is being achieved. Only in a situation where there is an increase in pig iron and crude steel production, together with the impact of new residual materials competing from other industries can marketing problems be anticipated.

Jan 1, 1979

By C Rogers

"The Coal Seam Gas (CSG) industry has seen a rapid increase in activity over a 30-year periodfrom the early 1990s within Australia. Despite public concerns over environmental issues, theCSG industry has increased in Queensland to the point where more than 90 per cent of naturalgas consumed in Queensland is CSG. The New South Wales (NSW) CSG industry has been slowerto respond for many reasons. Ninety-five per cent of natural gas consumed in NSW comes frominterstate. However, CSG activity in New South Wales is increasing notwithstanding publicconcerns. The CSG potential of three Petroleum Exploration Licenses (PELs) are being assessedwithin the Southern Sydney Basin that provides a unique opportunity to develop resourcesstrategically around many abandoned coal mines. The question has been asked - what do theseabandoned coal mines mean to the project? Are they good or bad? Are they friend or foe? Thispaper att empts to answer these questions and in doing so describes the coal mine ventilation andgas management philosophies and practices used to assess gas production potential. The coalmining philosophies not only have the potential to assist in the construction of a highly successfulCSG project, but they also potentially add signifi cant pre production value by re defi ning how theresources and reserves are assessed and therefore valued. The behaviour of abandoned coal minesand the goaves within the PELs are not well understood by the petroleum industry. However, in the Illawarra region there is an abundance of coal mining knowledge and expertise that if properly focused can greatly increase the chances of project success."

Jun 1, 2012

By N C. Steenkamp

The Northern Cape Province of South Africa is host to the Kalahari Manganese Field (KMF). The northern portion of the KMF hosts high-grade manganese referred to as Wessels’ type ore and is mined mostly from underground operations. WorleyParsons TWP is currently involved with the development of a ventilation shaft for one of these mines. The main challenge is to develop through the unconsolidated Kalahari material and weathered portion of the Karoo formation. These formations are preserved very erratically over short distances. A lack of understanding of the unique challenges presented for developing shafts in this area has resulted in the failed development of a shaft on an adjacent property and over-expended budgets on others.The renowned red sand of the Kalahari forms the top several tens of metres and overlies a horizon of gravels and calcrete that pose seasonally variable water ingress problems. A very stiff red clay horizon is then intersected. The Red Clay is prone to swellling during excavation and has been the main stumbling block on previous constructions. The standard approach has been to develop non-stop through this layer. The red clay is underlain by another horizon of calcrete, gravel and conglomerate that marks the bottom of the formation. The top of the Dwyka Tillite (Karoo Formation) is usually highly weathered and has a distinctive yellow colour. The weathered tillite is highly susceptible to drying and becomes friable. At reef-intersection, the combination of subhorizontal bedding and joints with the dominant subvertical faulting results in potential wedge failures in the manganese and ironstone units.This paper describes the geotechnical issues identified during the planning of the ventilation shaft and the risks associated with development through the Kalahari and weathered Karoo Formations. A new approach to developing ventilation shafts in overcoming these challenges is recommended.CITATION:Steenkamp, N C, 2014. Challenges of developing a ventilation shaft in Kalahari and Karoo formations, Northern Cape, South Africa, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 81–88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By G Johnson, G W. Wilson

The settlement and drainage behaviour of co-mix, or mixtures of waste rock and tailings, are examined in a column study. Three co-mix profiles were observed for settlement, drainage, and pore water pressure response. A fourth profile with waste rock and no tailings was also observed for settlement. Co-mix consolidated faster than predictions for tailings alone, and maintained a saturated void space relative to waste rock alone. Practical benefits of co-mix as a waste disposal technology may include faster time to consolidation than tailings, a reduction in total settlement of placed material compared to tailings alone, and a reduction in acid drainage by limiting the flow of water and oxygen through maintenance of a saturated void space.

Jan 1, 2003

From a personal view that encompasses both research and assessment of major projects the author outlines the two competitive pressures that will force more rather than less metallurgy viz the increasing difficulty in purchasing the latest overseas developments and environmental concerns. This paper then goes on to argue that Australian metallurgy or more precisely process engineering may be in a unique position to deliver the required results.

Jan 1, 1993