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This paper explains why the valuation of mining assets is often a very different exercise from the valuation of the shares in the mining company which owns those assets. The fundamental reason for this is that mining assets, and the shares of the company which owns those assets have different risks. In order to properly value mining securities it is essential to: ò ensure all the different risks and other factors which impact on the value of the mining assets and the value of the shares are taken into account; and determine the extent to which the different risks and other factors are addressed in the value of the mining assets and the value of the shares so as to avoid double counting or not counting at all. If the alternative, but far from consensus, view is accepted that the correct valuation methodology to apply to shares in mining companies should be based on option pricing theory then conventional valuation practice of both mining assets and shares in mining companies will need to be fundamentally reassessed.

Jan 1, 1994

By R Milton, D Hake, H Sprague

The North Western Sewer tunnel extends over 11.5 km in the North Western suburbs of Melbourne.The $253 million tunnel project provides a critical link in the Melbourne Sewer Network. The existing sewers fail to service the increasing demands of the growing population of the North West regions of Melbourne. This project will protect the environment and improve the standards of service of the existing system. This paper concentrates on Section three of this project, consisting of the final 4 km of the Contract, three access shafts and a cut and cover section of tunnel.Transfield Tunnelling as Head Contractor constructed the tunnel for Melbourne Water Corporation, with Enetech Streamline, formally Streamline Australia, a trading arm of Melbourne Water acting as Superintendent.Excavation of Section three of this project commenced in September 1994 and project completion is scheduled for October 1998. The tunnel passes below the residential suburb of Essendon, through some of the most challenging ground conditions ever attempted to be tunnelled in Australia.

Jan 1, 1999

By P Trotta

The paper provides a structured methodology to investigate metallurgical problems within the operating concentrators. The strategy uses classical metallurgical data analysis as well as pulp, solution and surface analysis to determine the reasons for particular behaviours. The approach applies equally to all mineral-processing operations. To demonstrate its effectiveness a case study, based on work conducted at Pasminco Rosebery Mine, is described. In this work, the classical metallurgical analysis indicated that a significant amount of sphalerite reporting to the lead concentrate occurred as liberated particles. A combination of pulp, solution and surface analysis supported the hypothesis that the liberated sphalerite was recovered by inadvertent activation by lead ions. Laboratory studies have indicated that the use of sodium carbonate, by itself and in combination with zinc sulphate and sodium cyanide, when added to the lead regrinding mill can depress sphalerite flotation, resulting in an improvement in the lead grade/recovery curve. When this approach was tested in the plant other more dominant issues masked any positive effect the addition of sodium carbonate may have had. The plant trial highlighted the real need for additional regrinding capacity.

Jan 1, 2002

IN carrying out experiments to determine the amount of metal taken away by fume or fine dust the apparatus used requires to be strong and compact, as it is generaIIy necessary to work on a staging fixed at considerable distance above the ground and against a smoke stack or flue. It is essential that the test be carried out at a part of the stack welI away from any bends, to prevent eddies. The method described below has been used for estimating the dust losses from Dwight & Lloyd sintering machines, antimony drossing furnaces, pot sintering trials, etc., and has been founc! satisfaetory. It is welI to bear in mind that the longer the period over which dust coIIection is extended, the more valuable the result is likely to be. The rateof aspiration of the gases through the apparatus is kept as regular as possible by changing the filter thimbles frequently, and the rate of flow should correspond closely with the rate of flow of the gases up the stack.The apparatus required for carrying out a test is as folIows :-{a) Thermometers : two are required, one for taking the temperature of the gas in the stack and one for giving the temperature of the gas in the aspirating drum. If the temperature in the stack is over 400° C., it is advisable to use a pyrometer such as the "Bristol" the couple being standardized before use at about the temperature of the stack.(b) Pilot Tube: The foIIowing sketch (Fig. 1) iIIustrates the principle of the pitot tube. The readings are to be taken in a straight flue, or stack, preferably 20 diam. away from any bend. A, which is open, faces the air current and...

Jan 1, 1922

Criteria for the manipulation of commodity markets are discussed. Against the economic background of the past twenty five years actual attempts to manipulate markets are evaluated.

Jan 1, 1985

By J Ralston, W Skinner, D Fornasiero

The Wark has been conducting collaborative research through the AMIRA International P260 series of projects for over 20 years. This paper reviews specific outcomes of successful technology transfer to flotation plant practice over that time. Moreover, findings of an independent audit of industry users of the research outcomes of the P260 project are reviewed. The key to successful technology transfer is the active engagement of industry personnel at all phases of the technology transfer process. Other research outcomes include the novel application of new measurement tools and methodologies which include, for example, advanced surface analysis techniques. These new tools and methodologies have been pivotal to improving our understanding of factors that limit the flotation separation of minerals at plant scale. Future potential targets for technology transfer to improve flotation plant practice are discussed.

Jan 1, 2009

A simple method of designing effective fill drainage systems for slurry backfill is presented. By using the proposed method, it is easy to calculate and predict the expected fill drainage rates or to provide additional drainage systems to accelerate the fill drainage. The fundamentals of hydraulic fill and an efficient method to determine its permeability is also explained. The safety in hydraulic filling and bulkhead stability depends totally on achieving effective drainage regime for the fill. This paper provides the basis for creating such efficient drainage regimes. The recent fatal fill bulkhead failures in Australia were the result of poor drainage from the respective fill masses, and therefore it is more important to provide suitable drainage arrangements to continue using hydraulic fill to the benefit of the mining industry. At present there is no procedure available to mine operators to estimate the expected bulkhead pressures to design a satisfactory bulkhead. Some mines are constructing bulkheads after their initial investigations carried out years ago. Other mines have simply borrowed the ideas from the pioneer mines and using in their areas. It is high time that we develop a rational approach to estimate the expected bulkhead pressures for the design of bulkheads. We need a simple model that could be understood and used by the mine operators on a day-to-day basis. This paper also presents a model to predict the bulkhead pressures for designing safe bulkheads.

Jan 1, 2002

IF lead be heated with concentrated sulphuric acid two distinct actions will usually be observed. In the first, bubbles begin to be evolved more or less rapidly from the lead, and in the second, which occurs at a higher temperature than the first, hydrogen and sulphur dioxide are evolved, free sulphur is liberated, and leadsulphate is formed. The second action may be violent and usually continues till the lead is all consumed.Attempts have been made to apply these reactions, by means of a standard procedure, as a "Flash test" for the acid resisting qualities of chemical sheet lead. The purpose of this article is to comment on the best method of performing the test, on the various phenomena which may be observed during the course of it and on the interpretation of the results when obtained.PREVIOUS WORKIn 1919, Barr...

Jan 1, 1930

Discounted cash flow (DCF) methods are well suited and recommended as a primary valuation method for mineral assets for which there are at least indicated resources and some form of feasibility study containing engineering, production and capital and operating cost data. DCF methods are also applicable as a secondary or check valuation method for exploration properties for which no technical study has been prepared. For projects where little or no engineering, production and/or cost data is available, the process of formulating a project concept by specialists who do not possess experience and expertise in the relevant technical faculties is totally rejected as a basis for applying DCF techniques as a primary valuation method. Such an approach runs counter to The Australasian Institute of Mining and Metallurgy (AusIMM) requirement to apply relevant expertise to specific aspects of mineral valuation. Technical and commercial inputs to mineral valuation should be reviewed by specialists who have specific expertise in the relevant disciplines, and should be tempered by the quantity and quality of technical evaluation which has been undertaken and the development status of the asset.

Jan 1, 1994

By M Maulen, K van Olden, T Elkington

A large open pit is planned at the site of an existing underground mine. Strategic planning work has been undertaken to investigate the project value associated with an expansion of underground operations in conjunction with the proposed pit. Previous analysis determined that any depletion of the available pit resource that changes the optimum pushback sequence has a significant negative impact on overall project value. Therefore, to investigate the viability of an underground expansion requires a system to identify the stope resource that would add value to a combined operation if mined ahead of the pit. The key solution to this problem was to generate a resource model variable that defines the blocks, which have greater discounted value if mined by stoping rather than by the open pit. A key assumption was that the open pit is the main driver of overall project value. From the identified potential underground resource, series of mineable stope shells were generated at a range of cut-offs. This stope reserve data formed the input to a mixed integer program based software tool that was developed and used to optimise the underground mining plan, at conceptual level, for various project configurations. A dynamic programming tool was then applied to evaluate the optimum value of a combined open pit and underground operation. The overall objective of this project was to determine the strategic plan that yields the optimum value for a combined undergroundûopen pit operation. The results provided a clear focus and direction for more detailed design and planning.

Jan 1, 2009

By M Bezzina

In 1995 Standards Australia International Limited æSAIÆ published a risk management standard titled AS/NZS 4360 Risk Management. It was the first such standard published by a recognised formal standards body anywhere in the world and it put Australia at the leading edge of the risk management discipline. Many Australian and international organisations have utilised the risk management standard and it is one of SAIÆs most important and popular standards. Since its publication in 1995, the risk management standard has gone through a major revision in 1999 and is currently undergoing another such review, which is due for completion in 2004. This paper will chart the application of the standard within certain key organisations since its inception in 1995. A brief overview of the methodology behind AS/NZS 4360 will be presented as well as an overview of supporting and related standards. It is prudent to base risk management and other management system issues on existing and tested standards rather than creating new proprietary approaches. Examples of areas in which the risk management standard might be applied in the mining industry are given, subject to the specific operations of each company: technical, commercial, environmental, informational, and safety and regulatory.

Jan 1, 2003

The impact on metallurgical operations of the hydrocarbon energy price hike can be greatly alleviated by recourse to alternative fuels. Information is provided on fuels such as coal, coke, coal-oil mixtures, manufactured gas, wood and charcoal; techniques such as direct and indirect combustion, pulverised fuel injection, slurry burning, fluid bed combustion and various gasification processes. Actual examples of metallurgical operations are used.

Jan 1, 1981

By A Ruotsalainen

Mining industry sees a comprehensive future in optimisation and process control. High resource utilisation is a starting platform when lower operational costs with higher rate of return are the target. Simulation is quickly penetrating the mining industry as a planning tool. A discrete event simulation helps to visualise the reality of a mine and the various mining processes, which typically include a fair degree of complexity. What-if scenarios can help to determine the impact of occurring changes to production. Understanding of critical points in the layout and resource allocation at an early stage can help to optimise the material flow. The obtained information may then be used as proposal or confirmation of the system applicability and economy. Simulation is a way to fine-tune and optimise the resources within. It helps to predict system sensitivity to various aspects. Although simulation today is used typically in a feasibility stage, there is an opportunity to continue using simulation for further process enhancement. In the future simulation will without doubt be used increasingly as a dynamic simulation and continuous improvement tool. This paper discusses the use of OptimineÖ simulation tool in resource optimisation. Some examples describe the way the tool operates and how it helps to view the technology, mine layout and operational data.

Jan 1, 2003

This paper examines the interplay between longwall support design/geometry features, operational controls and geological features on ground response. Experience from several investigations is used to demonstrate the influence of factors such as longwall support capacity and geometry, setting pressure, coal seam strength and stiffness, tip-to-face distance and hydraulic supply and control system parameters on longwall ground response. These factors are then used to outline the requirements on key controls such as retreat rate and cutting height and their influence on allowable roof convergence. The ground response curve concept as a means to provide graphical representation of longwall support and strata interaction processes is presented. The approach was developed to address the requirement for a practical longwall support evaluation and selection tool that can take account of support load influences such as changes in roof geology or cover depth. An example of the comparison between single pass longwall and top coal caving in a thick seam environment is given to demonstrate the influence of the various factors discussed.

Jan 1, 2005

By J C. de Vries

When times are tough in the mineral industry û as they have been for some time û typical responses by mining companies are to cut costs and/ or increase production. The latter is seen to spread fixed costs, thereby also reducing unit costs per tonne mined. However, most mineral deposits respond to increased production rates by lowering ore grades, so the reduction in cost per tonne of ore does not necessarily result in a reduced cost per unit of metal produced. The authorsÆ experience is that this process often leads to a mine plan that is a long way from optimal. Producing to the point where marginal cost equals marginal revenue may work well in a manufacturing operation, but it is not necessarily the best strategy for a mining company with a depleting resource. Variations in tonnage and grade with depth, ore reserve optimism and a variety of other factors conspire to produce variations in production rates and grade that often result in suboptimal outcomes and potential mine failure. Added to this is the focus of industry analysts and senior corporate management on such measures as unit costs and ounces in reserves. This is perceived to have the perverse effect of driving the share price down when strategies are adopted that actually improve the value of the mining operation, and vice versa! Many mine failures can be prevented by a close examination of the tonnage grade curve and an understanding of how margins, net cash flows and resulting business risk change with cut-off grades and rates of production. A few relatively simple analyses early in the evaluation of a project can demonstrate the tradeoffs between the main decision parameters, leading to right-sizing of the operation. Once major commitments to major capital items have been made, and reserves have been publicly reported, optimisation of the operation becomes much more difficult than if it had been done earlier. Such investigations can also identify the upside potential and downside risks associated with factors outside the companyÆs control. Many strategies that may enhance value in the good times significantly increase the downside risk in the bad times. What is often called risk analysis typically looks at superficial issues, and does not evaluate the major factors leading to the potential for financial disaster. This paper illustrates some of these major risks, and demonstrates how they may be fully evaluated so that corporate decision makers can make fully informed decisions that take account of the real risks.

Jan 1, 2003

There has been a significant increase in exploration and development of mineral wealth in South East Asia over the past five years. This paper describes the foreign investment laws in the region as they relate to the mining industry.

Jan 1, 1993

By Fraser RJ

A Robbins Raise Drill Model 61R was used to provide one 7' diameter shaft 1050' deep in Clutha Development's exploratory mine at Blackwater in Central Queensland and two 7' diameter shafts 1450' deep at their South Clifton mine on the Illawarra Coast of New South Wales.

Jan 1, 1972

This paper describes some research attempts to isolate factors associated with lost time accidents and attitudes to safety. Some results of these investigations are presented and their implications discussed. Proposed future research is outlined. Error analysis and the importance of organisational variables are briefly mentioned.

Jan 1, 1975

By Canterford JH

Current and future methods of data acquisition in hydrometallurgy are reviewed. Hydrometallurgical operations involve a wide range of chemical and physical processes for the recovery of metals and other products from ores and concentrates. Control of such operations requires information on the different liquid/solid and liquid/liquid mixtures being processed. Continuous. data acqui-sition for the liquid phases uses procedures already commercially exploited in other types of chemical plant. The major problem is the lack of robustness of measuring probes. Continuous analysis of the solid phases is much more difficult to-achieve because of the sampling and analytical techniques involved.

Jan 1, 1985

By Michot LJ, Kongolo M, De Donato PH

Diffuse Reflectance Infrared Fourier Transform Spectroscopy (DRIFTS), Hallimond tube flotation tests and microelectrophoresis measurements have been used to investigate the reactions involved in the adsorption-ion of K-amyl xanthate on finely ground pyrite. Pure pyrite was finely wet ground, at different pH values, in specially built laboratory stainless steel or iron rod mills. Amyl dixanthogen was the only product identified on the surface of pyrite when stainless steel rods were used. When iron rods were utilised, ferric xanthate and physically adsorbed xanthate ions were observed in the superficial phase. The use of iron media was found to depress slightly the floatability of the mineral.

Jan 1, 1993