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By B Cooper

During the design of a new production facility for a greenfields or significant brownfields expansion many design decisions are made driven by an unquestioning objective to achieve 'lowest cash-cost' production costs. In many cases this translates to a design and operating philosophy based on largest-available, single-line equipment. Although acknowledged as an approach that is efficient from an operating cost perspective does this approach always maximise shareholder value? There is an increasing awareness in the mining industry of the value of project flexibility, robustness and value options. The design of a new production facility creates a window of opportunity which should be structured to ensure that project value options and robustness are understood and exploited. This requires the use of emerging valuation methodologies, such as Value-at-Risk and Real Options, as well as tried and trusted NPV/IRR approaches. The paper provides an overview of the basis and application of these less well known techniques in the context of metallurgical plant design. Design guidelines that demonstrate how value options and flexibility can be quantified from both a risk and value perspective are presented. Issues such as use of single versus multiple line equipment, optimum cut-off grade and improved exploitation of the inherent variability of the orebody are also examined. Finally the management issues and approaches to achieving this will be briefly discussed; for example it is common during project development to drive towards increasing certainty as rapidly as possible to facilitate 'accurate' estimation of costs. Understanding and exploiting value options requires a project culture that tolerates, and revels in, ambiguity and uncertainty û something that would make many project teams uncomfortable!

Jan 1, 2008

Australian wheat belt agriculture is causing a decline of its natural resource base. The major problem, salinity, arises from a small reduction in water consumption by agricultural crops compared to what prevailed under the prior native vegetation. This causes groundwater accumulation which, in the low relief landscapes of the wheat belt, is leading to extensive surface saturation in low landscape positions and dramatic, destructive change in the hydrological behaviour and habitat of streams and rivers. The ability of agriculture to invest in salinity control is severely limited by its long-term decline in its terms of trade. Extensive planting of perennial vegetation has the potential to increase water use and arrest the salinisation process. If these perennials were also commercially attractive, the cost of salinity treatment could be minimised. Given the difficult commercial position of food commodities, it is logical to develop ænon-foodÆ perennial crops, in particular woody crops suitable for industrial products. This paper looks at the example of Sweden, where there has been a generation of investment in developing forest harvest residue recovery, and short cycle woody crops for bioenergy, but with only limited success. In contrast, secondary residues (processing wastes) from forestry industry are readily saleable for low value uses like bioenergy. This suggests that the model woody crop must have a higher value fraction to facilitate delivery and commercial use of its lower value fractions. This model is being emulated in the development of native mallee eucalypts as short cycle woody crops in Western Australia. Some $50 million has been expended on mallee development in the past decade and this has culminated in an engineering demonstration of integrated processing. The putative high value products are activated carbon and eucalyptus oil and the residue (plus waste heat) will be converted to electricity. The potential scale on which crops of this type would be required to achieve salinity control means that many more high value and residue products will have to be developed. Metallurgical charcoal appears to be a promising product option.

Jan 1, 2006

By B Roberts

The Department of Industry and Resources (DoIR) is responsible for several sets of legislation, which, among other things, regulate the storage, handling and transport of dangerous goods as well as every aspect of the life cycle of explosives in order to prevent explosions, fires and spillages. The legislation with particular relevance to explosives includes: The Explosives and Dangerous Goods Act 1961; the act deals with the storage, manufacture, sale, import, authorisation and use of explosives. It is primarily framed for use of explosives and fireworks in the general community but also has relevance for storage on mine sites. The Dangerous Goods (Transport) Act 1998; this act regulates the transport of explosives on public roads, but not on mine sites. The Mines Safety and Inspection Act 1994 (MSI Act); this act and supporting regulations deal with the full spectrum of occupational health and safety in the mining industry. There is a substantial section in the regulations dealing with the use of explosives at a mine site.DoIR has identified the need for security upgrades of the Government Explosives Reserves, the need to tighten security measures at mine sites, the need for improved security checking for licensed shotfirers and the need to restrict the availability of explosives to authorised people who have had appropriate security checks. It is also clear that we need restrictions on the sale and use of ammonium nitrate (AN). A number of additional security measures are being proposed and all proposals are being refined by ongoing industry consultations. These will be adopted into new explosives regulations in association with the new Dangerous Goods Safety Act 2002 (DGS Act). Government finalised the act in June 2004. The act remains dormant until new explosives and dangerous goods regulations have been prepared. When the DGS Act and a suite of regulations are proclaimed as a package, sometime between December 2004 and April 2005, the old legislation consisting of the current two acts, will be automatically repealed. It is also proposed that all explosive regulation, including those under the MSI Act will be consolidated in one place under the DGS Act for user friendliness.

Jan 1, 2004

By W Stange

Assessing the risks in a mining project is a key aspect of project evaluation. This is an exacting and demanding task because of the complexity due to the need to deal with uncertainty over long time periods. The way risks are assessed and managed is critical to the long-term success of the projects and the business. Discounted cash flow (DCF) analysis is commonly used for project and risk evaluation. A discount rate is selected that accounts for uncertainties in the cash flows. However, it is difficult to determine an appropriate discount rate due to the large number of factors that need to be considered and the complex relationships between risk sources. Using a proven framework, ævalue at riskÆ (VaR), this paper proposes to rigorously model and quantify ærisk at sourceÆ. The approach was first employed to assess financial market risks and is now widely used in the banking sector for risk assessment. In project evaluation, all risk sources are identified and estimated separately to ensure the overall project risk is quantified accurately. A bottom-up approach has been proposed. Estimates are first carried out for risk factors at the bottom of the project structure. The assessment is then applied at increasingly higher levels until the overall project risk is estimated. Value at risk is a versatile methodology and can be used in a local or integrated manner. The final value is objective and the calculation steps can be easily justified and followed. Four case studies have been included to illustrate how the proposed approach can assist management in decision-making.

Jan 1, 2009

Techno-Economic Evaluation of a New Early Removal Process to Treat High-Arsenic Copper Ores

Sep 13, 2010

The coking coal produced by Utah Development Company in the Bowen Basin is processed by a dual system of dense media cyclones for the 30mm x 0.5mm feed and flotation for 0.5 x 0mm material. The basic metallurgy of these processes will be presented with emphasis on the operational characteristics which are peculiar to coal. Potential areas for process improvement by the application of more sophisticated control systems will also be discussed.

Jan 1, 1978

Twenty years of effort in developing the use of computers in the design and control of mineral treatment circuits has resulted in a sound base for future widespread application of the techniques.. The intent of this paper is to speculate to some extent about future applications of computer related techniques in the mineral extraction industries. The use of simulation methods for the analysis and design of circuits is discussed. In the area of process control, computers have been largely devoted to process monitoring and reporting tasks. The application of computers for the total control and optimization of complete plants is considered. Finally, the role of computer based modelling studies for definitions of optimum treatment flowsheets is suggested.

Jan 1, 1985

In recent years stricter requirements imposed variously by the Companies Acts, auditors and the Stock Exchanges have resulted in annual financial statements of mining companies becoming more detailed, informative and useful. Standards of reporting on ore reserves have not kept pace with the improvements in financial information disclosure, despite the fact that ore reserves are usually the most important asset of a mining company. The ore reserve reporting practices of fifteen leading Australian mining companies are analysed against important specific criteria. In terms of detailed and meaningful disclosure, there is scope for major improve- ments in annual ore reserve reporting Practices.

Jan 1, 1981

The treatment of steels with acid solutions for the removal of oxide products represents possibly the largest outlet for chemicals in steel processing. Organic pickling inhibitors are required to prevent base metal attack by these acids otherwis

Jan 1, 1980

Palaeostress analyses of the northeast-dipping Koki Fault Zone demonstrates in the hanging wall an east-west compressive stress and sinistral reverse-slip. Data from the footwall region are more uncertain and may relate to rotation of the stress field during fault motion. The fault-plane solution of the 1979 Port Moresby earthquake (Modified Mercalli Intensity 5-7 at epicentre 70 km east of Port Moresby) shows east-west compression and a stress field identi

Jan 1, 1997

Mining is claimed to be unique among industries owing to its dependence on exploration for its existence, the need to operate in remote, inhospitable areas, the vast capital sums required for development, the need to pay royalties regardless of profitabil- ity, the wide swings in prices for many of its products, the finite life of each-mineral deposit, its susceptibility to criticism by environmentalists, its dependence on export markets and sensitivity to' cost and exchange rate fluctuations, the uncertainties inherent in most mining legislation, pressures to grant mineral rights to aboriginal communities and the burden of having to finance its own infrastructure. The special problems of the industry have been recognised in the income tax laws which, generally speaking, allow for the deduction of all capital expenditure before tax is payable. Notable exceptions to this rule are the absence of special deductions for mineral processing facilities and the absence of any deductions for a large part of the expenditure on ports and port towns. The scope and extent of infrastructure expenditure is discussed. The consequences of the burden imposed on the industry include tax inequity, higher capital and operating costs, "high grading" and

Jan 1, 1974

The cost of constantly extending a decline tunnel that plays a part in the actual extractive process is a revenue cost. The characteristics of such a decline tunnel are that it is dug in a series of relatively small excavations. It follows the ore body and is dug as close to the ore body as practicable. In addition, the decline allows for the extraction of ore in the immediate vicinity, with the ore being extracted in a relatively short period of time.

Jan 1, 1990

By Sturgul J. R

A major electricity generating authority have a proposal to construct a Power Station. An understanding of the operation of the bunker system is of importance to the designers and a computer simulation model of the operation was constructed. The computer language used was GPSS/PC which is a recent form of the language designed for the per- sonal computer. The model simulated trains arriving at the power sta- tion and unloading onto conveyors which carry coal to the power station bunker. Coal was drawn from the bunker at a specified feed rate to the power station. Numerous restrictions were placed on the model, if the bunker level got too high dozers would pull coal out of the bunker onto the stockpile, and if the level got too low the dozers would push coal back into the bunker. The conveyors and dozers were unavailable due to breakdown'at various times and trains would arrive randomly about a mean interarrival time. The system was simulated for 30 years of oper- ation and the model used a basic time unit of 30 minutes so that the system was updated 525,600 times during the simulation. The results of the simu- lation gave the designers a greater understanding of the critical factors in the operation, which may now be engineered to minimise adverse Effects.

Jan 1, 1988

While sampling techniques used by the mineral industry continue to improve, sampling is still an area which is often neglected. It is often left to personnel who do not fully appreciate the significance and importance of sampling. Yet sampling and sample processing are of vital importance. There is little point in making major capital investments in the latest analytical equipment and spending considerable time obtaining the best analytical precision, if the sample provided for analysis is seriously biased in the first place.

Jan 1, 1976

Australia is a significant exporter of uranium for use as fuel in nuclear generating plants around the world. Although Australia does not have any nuclear power plants the Australian Atomic Energy Commission has a research program on methods for the safe disposal of wastes produced by such plants.

Jan 1, 1986

My message to you today is simple. The mining industry in Australia has a proud record of successful research and innovation. If it is to continue to provide this country with its major exports that records must continue. I will endeavour to show that

Jan 1, 1994

By Mills J. C

Concentration ranges are presented for 15 trace elements not previously reported in Australian bituminous coals. The results were obtained by instrumental neutron activation analysis, which has sufficiently high sensitivity to enable determination of many elements directly in coal at concentrations less than a few µg/g. The ranges found in Australian coal are similar to the ranges reported in North American bituminous coals.

Jan 1, 1983

The subject `access to land' is often seen as an item high on the list of matters of concern to mining interests not only in New South Wales but throughout the whole of Australia and other countries. Just what are the problems/issues of access to lands today? What is being done about them? What can be achieved? What is practical to achieve? And where does New South Wales sit in relation to all this? These and a range of other issues are addressed in this paper.

Jan 1, 1995

The Century zinc deposit is located in Queensland approximately 250 kilometres north north-west of the provincial city of Mount Isa, on Lawn Hill Station and within 150 kilometres of the Gulf of Carpentaria.ThefirstMining Lease in this area was pegged in 1887. The Silver King vein is the largestvein deposit in the area and has produced lead and zinc, in addition to 74,000 ounces of silver during its history.A total of forty three veins containing silver, lead and zinc are now known, all of which were discovered by prospectors within 10 years of the first vein being recognized.

Jan 1, 1993

New Zealand's obligations under Kyoto protocol New Zealand's economic and emissions profile Use of energy and electricity generation in New Zealand World energy supply Coal's rule in the world today Coal and New Zealand Future energy needs in New Zealand Clean coal technologies

Jan 1, 2002