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By J Evans-Wheeler

"The mandate of the 2005 VALMIN Code to provide ‘(all) reliable, thorough, understandable material information required by investors and their advisers when making investment decisions’ requires that due diligence for tenure be full and thorough. Yet a published due diligence would often appear to be simply a list of tenures allegedly held without any commitment as to the standing of the tenure as safe and secure or otherwise.The value of due diligence for tenure, as mandated in the 2012 JORC Code and the 2005 VALMIN Code, must focus on compliance rather than simply on ‘vital statistics’. Enforcement in every jurisdiction in Australia focuses on penalties (some more harsh than others) for non-compliance, which, in turn and most importantly, reflects directly on security of tenure. Some 22 Acts (on average) impinge on security of tenure and fundamentally underpin the security of any mineral asset.This paper will outline regulatory processes to demonstrate how tenure compliance is achieved and argue that the rigorous application of good practices in tenure evaluation will lead to more of this information being made available on a regular basis.The paper will then focus on further practical examples of tenure compliance failures, the application of these to the requirements of the JORC and VALMIN Codes and due diligence that failed to fulfil the mandate. Examples will be given that alerted other professionals using the JORC Code to complex geological and mining situations of which they were unaware in their valuations.Finally, the author will make a personal plea for tenure to be considered at the commencement of any reporting process.CITATION:Evans-Wheeler, J, 2016. The VALMIN code and tenure compliance – not just a list, in Proceedings Project Evaluation 2016, pp 112–121 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By D Brereton, C J. Moran

In this era of rising focus on the social and environmental costs and benefits of mining operations, the valuation methodologies used to assess such impacts become increasingly important. Within an industry dominated by an engineering culture that places emphasis on net present value (NPV) calculations using high discount rates, difficulties often arise when attempting to justify projects with longer-term, harder to quantify benefits. This is particularly so when these benefits fall in the social and environmental domains and involve other stakeholders. In this paper, we summarise the results of a recent literature review on this subject, which focused on the valuation of æBeyond ComplianceÆ initiatives in the mining sector. We discuss a range of approaches including the quantification of hidden internal costs, financial methods of incorporating risk into calculations, the integration of quantitative and qualitative information, and also the valuation of æexternalitiesÆ or costs and benefits borne by others. We then use a series of examples relating to the management of water in the minerals industry to illustrate how some of these approaches could be applied. There are high-level commitments from both individual companies and groups such as the ICMM to incorporate sustainable development criteria into decision-making processes within the industry. We conclude the paper by arguing that, to meet these commitments, there is a need for the industry to adopt a broader range of valuation methodologies than appears to be the case at present.

Jan 1, 2006

By J Loimi, P Minkkinen, T Korpela

The head loss caused by metallurgical sampling for slurry streams can be reduced by metallurgical sampler design. When the process volumetric flow rate is reduced by vertical static cutters before the sampling by an equal number of moving cutters to the static cutters, the installation requires less installation head space than other sampling arrangements and is easy to accommodate at suitable locations in the process. Low head loss reduces building costs for the processing plant and operational costs during the lifetime of the plant.The presence of a possible systematic bias in the particle size distribution, solids density and elemental composition between an Outotec MSA 2/50 metallurgical slurry sampler sample and MSA 2/50 manually sampled reject have been studied by a customer. The paired samples were taken as simultaneously as possible. The customer evaluated the possible bias using a paired t-test and provided the assay results to Outotec for further evaluation.The results of the paired t-test showed no systematic bias in particle size distribution, solid density or assayed analytes, except in one analyte with low content and a high relative error. The high relative error in one analyte may have been caused by the same calibration model used in a X-ray fluorescence analyser for both high elemental-content concentrate and very low elemental-content tailings samples. The sampled stream is the tailings of a previous process stage.The results of the t-test were studied further using analysis of variance to reveal the error sources in samples. The results showed no bias between the samples collected from the MSA 2/50 reject and composite samples collected of the MSA 2/50 sample stream. The courier online analyser data was also available for evaluation of representativeness to the process stream.The analysis results of the courier online analysis reveals no bias between the MSA 2/50 reject samples, MSA 2/50 sample stream composite samples and online analysis results during the comparative sample collection period.CITATION:Loimi, J, Minkkinen, P and Korpela, T, 2017. Comparative evaluation of manual sampling and Outotec MSA 2/50 metallurgical slurry sampler, in Proceedings Eighth World Conference on Sampling and Blending , pp 167–172 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

The Research on Refined Gold Bullions Surface Upgrading

Sep 13, 2010

A simple process for making filter aids from coal by controlled carbonization at 800-1200·C is described.Several possible variations in reactor design have been used experimentally, involving fluidized beds of carbon or inert material, reaction of the particles while entrained in air, and a combination of entrainment and fluidization.Product yields depend upon the composition of the parent coal but are always less than the sum of the ash and fixed carbon values determined by the proximate analysis. The product yield also depends on the air-to-coal ratio, which affects the amount of coal substance burned and the temperature attained. Particle residence time and reactor temperature affect the degree of devolatilization of the product and hence its wettability. The filtration behaviour of carbonaceous filter aids is greatly influenced by the size distribution, shape and physical properties of the particles-parameters which are largely determined by fue type and particle sizing of the coal used.Carbonaceous filter aids are distinctly different from other types commonly used and extensive industrial applications are anticipated in a wide range of industries ranging from food to mineral processing.

Jan 1, 1970

Using Positron Emission Particle Tracking (PEPT) to Investigate Industrial Systems

Sep 13, 2010

By K M. Brodie, D I. K McLeod, J Ruddock

Environmental incidents involving mine tailings and waste rock inevitably become highly publicised and serve to damage the credibility of the entire industry. The recent serious incident involving a spill from a Romanian mine, was blamed for triggering æone of the worst environmental catastrophes in Eastern EuropeÆ. It is important to clearly demonstrate to the general public that these incidents are not representative of the industry as a whole. Where such incidents have occurred, the causes are generally related to poor design and/or construction, inadequate supervision and/or monitoring and maintenance, lack of independent expertise, inadequate risk identification and treatment and no provision to ensure that rehabilitation and long term management of the site occurs. Many people are unaware that these issues have been considered and provided for at the Martha Mine. Despite the fact that the first tailings storage facility has performed very well over fifteen years of operation, the long term safety and security of the tailings storage facilities continues to be questioned and debated by the public. The best way to address this is to provide quality information to enable a better understanding amongst the general public.

Jan 1, 2002

The mineral processing industry is in boom times. The focus on mill availability and therefore profitability has never been greater, as grinding mill maintenance often dictates the entire plant shut down duration. Advances in mill systemsÆ quality and reliability and the faster, safer relining afforded by RMEÆs Mill Relining Systems have significantly enhanced grinding plant availability and utilisation. Yet relining performance is still affected by the design and planning by a team of stakeholders long before the maintenance team set foot in the mill. For a greenfield grinding plant project, these team players include: 1. project owner, 2. project manager, 3. mill supplier, 4. liner supplier, 5. plant operating personnel, 6. plant maintenance personnel, 7. mill relining crew, and  8. mill reline system supplier (RME). The complex and sometimes competing design demands of mill construction and operation together with the pressure of tight timelines can result in even simple maintenance requirements being overlooked let alone optimising plant design and planning for maintenance. This paper identifies all the involved stakeholders in an effective mill relining 'team' and gives principles and considerations for each to more effectively achieve the goals within their vital roles. This paper is aimed to be a practical guide for grinding mill designers and planners to more fully exploit the advances in Mill Relining Systems and improve their mill profitability.

Jan 1, 2008

By N Guresin, A Cooper, L Lorenzen, H Muller, S C. Dominy

Sampling and metallurgical test work during various phases of engineering?studies?is of?paramount importance for a robust processing plant design. When developing a process flow sheet, risks in achieving desirable financial outcomes are minimised by ensuring appropriate sampling and adequate metallurgical test work supports the engineering and cost estimation at each phase of project development.The quality and type of samples used for metallurgical test work are just as important as the metallurgical test work itself. The key characteristic required of any sample is that it represents some defined portion of a mineral deposit. Representivity should take into account the spatial orientation, lithology, alteration, degree of oxidation, mineralogy and competency of the ore such as hardness and abrasiveness. Statistically representative sampling procedures and an appropriate metallurgical test work program should be designed to bring metallurgical understanding up to feasibility study standard and to give a basis for process plant design.Snowden has observed that the quality of sampling and quantity of metallurgical test work carried out during the various phases of engineering studies are often insufficient to truly support a robust plant design. Some designs are often the result of the plant design based on benchmarks of apparently similar orebodies or buoyant metal prices supporting cash flows until rectifications can be implemented.The paper will discuss important aspects of sampling and test work required for engineering studies in designing process plants based on industrial case studies.CITATION:Guresin, N, Lorenzen, L, Dominy, S C, Muller, H and Cooper, A, 2012. Importance of effective sampling and test work protocols for process plant design, in Proceedings Sampling 2012 , pp 95-108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By C J. Moran

The Gladstone region, as one of the most industrially intense regions in Australia, uses significant quantities of fresh water. Awoonga Dam, situated on the Boyne River, is the only major source of water in the region. The current typical annual usage is 53 GL (Porteous, 2006) and approximately 80 per cent of the water is used by heavy industry (Gladstone Area Water Board, 2004). Until relatively recently, there has been ready and easy access to raw water for industrial use. The recent drought, which resulted in severe water restrictions in 2002 and 2003, emphasised the importance of water for a dominant industrial region like Gladstone. Although now in the process of changing, the typical contractual arrangements in the past have provided little financial incentive for efficient water use. From research undertaken on potential water reuse opportunities, several key questions have emerged related to water management in an industrial region such as Gladstone. This paper highlights these key questions, presents findings from recent regional strategies and assesses the potential for water reuse. Even though there is no clear-cut financial incentive for reusing water, there could be stronger regional and risk mitigation drivers for doing so. Initiatives to incorporate adaptive capacity through collaborative industrial synergies would allow for robustness and resilience in water security, leading to long-term sustainable water management across the Gladstone region.

Jan 1, 2006

The title of this address was selected before I had an opportunity to consider in detail the matters that I would like to discuss. Accordingly, I chose a very broad subject-so broad indeed that it would be foolhardy for me to attempt to deal with more than a few aspects of it. I do not propose to touch. at all on the developments to date of our mining and metallurgical enterprises, beyond paying a sincere tribute'to the skill and enterprise of those who have established an international reputation for Australian mining and metallurgy. I would rather look ahead and discuss certain factors that will play a decisive part in the future development of our mineral resources. I do this in no dogmatic spirit, and I hope that my remarks may lead to discussions which will stimulate action where it is needed.In recent years my colleagues and I have been forced by circumstances to give consideration to problems in the fields of mining and geology, and in process metallurgy, which lie outside the scope of our own research work. People come to us with metallurgical problems because they know of no more appropriate place to go, and it is distressing to have to inform them that it is nobody's job to offer them advice and assistance. I want to suggest to your Institute that it should press strongly for the provision of properresearch facilities for the mining and metallurgical industries, such as aready exist in most enlightened countries. In such countries, those connected with the development of mineral resources are able to obtain information and advice from Geological Surveys, Mines Departments or Bureaux of Mines, which offer far more comprehensive services than are available in this country.Before discussing specific technical problems of the mining and minerals industries, I shall enunciate certain general principles that I believe should be followed in respect to the technical side of the development of all Australian industries. The problem can, I suggest, be considered in three parts-technical education production, and research. I shall confine my remarks mostly to the research aspect, for it is with this that I am most familiar.For the efficient development of any industry in Australia, it is essential firstly that We should learn what is going on abroad, and secondly that we should simultaneously conduct independent research. In the latter sphere the Governmeht'departments and the private companies' or groups of companies should have complementary functions, the former concentrating on problems common to a number of companies or industries, and the latter on their oWn individual problems. It is essential to the continued existence of Australian industry that both company and govern...

Jan 1, 1944

By E Rubio, N Morales

A common practice in the mining industry is to decompose the planning process into different tasks, so the overall process and specific schedules can be constructed easily. Nevertheless, currently there are some adverse effects, such as not capturing the real value of a project by not taking into account the construction of several underground drifts and general infrastructure. Then the common practice is to compute mining sequence and cut-off grade profiles over the life of the mine without constitutively integrating the development schedule as a means to measure the constructability of a given mine design and sequence. Thus, the investigation summarised in this paper shows a novel, integrative way of treating an underground mine sequence and production schedule while considering drift development scheduling. Moreover, it is thought that, because of this original model, the whole underground production scheduling exercise must concentrate on combining the development and the production scheduling to compute a robust and a feasible production schedule.In order to quantify the effect of the conventional way of viewing the planning, the concept of the building information model (BIM) needs to be used, which was postulated by Charles Eastman and has been used extensively since the late 1970s. BIM takes other aspects of a project into account, considering at the same time the spatial relationships, quantities and properties of building components, but especially some kind of model visualisation, which is the advantage to be incorporated. This paper presents the basis for an optimisation model that allows for defining the sequence of the mining development so that the production plan can be achieved. For this, the model considers the space dimensions, time, pattern or strategy, cost or benefit, precedence and resources available. Tests were performed considering a block caving and sublevel open stoping method. Finally these tests showed the main conclusion, that production sequence changes when the building capacity is considered.

Sep 26, 2011

The objectives of this paper are two-fold. First, it will show what problems can arise when single estimated values are substituted for a distribution of values when evaluating an open pit mine project in the face of uncertainty. Secondly, it will show how the ability to deal with uncertainty and risk in mine project evaluation can have a significant impact on the ownersÆ and stakeholdersÆ investment decision-making. Here a new mine evaluation framework, the integrated valuation/ optimisation framework (named IVOF), is introduced as an alternative tool for mine project evaluation where uncertainty and risk are incorporated in the evaluation process.

Jan 1, 2009

Sufficient time has elapsed since the enactment of the amendments to the mining legislation in 1981 to enable an examination to be made of the way in which the licensing system operates in practice. One of the most important decisions in resource management in New Zealand is whether or not rights of access to the resource should be conferred by the Crown upon an appropriate private sector participant. The licensing system is the means for allocating these rights of access. The manner in which the licensing system is administered, therefore, is crucial to natural resource management in New Zealand. What is the mining licensing system in New Zealand designed to achieve? This simple question admits of no easy answer. Is it the identification and development of the mineral resources of New Zealand? Are these objectives tempered by issues of resource conservation and environmental protection? Is a balance to be achieved among these competing factors? Does the legislation contain any priorities? Does the system respond in an ad hoc manner to particular facts and circumstances or does it operate within a more predictable framework? To what extent are decisions made on access to minerals with reference to the development or conservation of other resources? These questions may be summarised in the title to this paper which poses the question whether mining licences are instruments for resource management.

Jan 1, 1988

By P Gunn, M Watts

The general goal of passive acid mine drainage (AMD) treatment is to reduce levels of acidity and metals to acceptable levels. Most treatment systems use either an oxidising or a reducing strategy. In oxidising systems, alkalinity is added along with dissolved oxygen; in reducing systems, dissolved oxygen is removed (if present) and then alkalinity is added. It is recommended that small-scale field trials be conducted as part of the methodology of selecting the best remediation strategy at AMD sites. Following successful field trials at the Sullivan Mine AMD, the Pike River Coal Company (PRCC) has shown foresight by using the same system to treat AMD generated as a result of taking a bulk sample of coal at the Pike River coal field. The system reduced acidity by 100 per cent, iron by 99 per cent, aluminium by 96 per cent, nickel by 95 per cent, manganese by 51 per cent and zinc by 99 per cent. The success of this field trial suggests that a system using a reducing strategy may be appropriate for the Pike River Adit AMD site.

Jan 1, 2005

ALTHOUGH great progress has been made in flotation of the Broken Hill silver-lead-zinc ores, no paper dealing with this subject has been presented to the members of the Institute since James Hebbard's valuable contribution in 1913. Almost every discovery or development in the history of flotation has formed the basis 6f a patent, and but few experimentalists have overlooked the fact that their investigations might lead to the establishment of a patentable process. This, together with the aftermath of patent litigation, naturally resulted in secrecy being maintained in matters appertaining to the art, and the industry as a whole has consequently suffered considerably. Much valuable time has been wasted through numbers ofmen repeating work along certain lines, which, unknown to them, had already been thoroughly exhausted by others, whereas a lot of this would have been avoided by a freer interchange of information amongst those directly concerned. Owing to differences in the ore treated and the various applications of flotation concentration in relation to gravity methods, the flotation problems of the various mines differ considerably. This, together with the secrecy previously referred to, hasresulted in the development of numerous systems and machines, most of which would appear, to the casual observer, to comprise separate and distinct processes. The author has endeavoured to show how much these processes have in common with one another, and, at the same time, has tried to convey some general ideas on flotation to those members of the Institute who are not directly associated with this branch of concentration.

Jan 1, 1919

By J P. Sykes, T C. McCuaig, M Jessell, A Trench

The election of Donald Trump and the Brexit referendum herald a shift towards a tighter definition of economic value, at the expense of the broader value concept of sustainable development; as well as a rise of protectionism, reversing a long-term trend of globalisation. However, the situation is complex, especially over the longer term in which mine project development and exploration operates. The minerals sector should proceed with caution. A greater focus on the local impacts of mining may be strategically beneficial, not only to mitigate against a potential protectionist future, but also because sustainable development has become more ‘localist’ via the concept of ‘social licence to operate’, whilst globalisation also seems to provoke increased ‘localist’ sentiments (known as ‘glocalism’). Localist strategies, therefore, seem a good hedge against multiple political futures. By contrast, moving away from sustainable development appears strategically riskier. Not only are ‘unsustainable’ activities, such as pollution and civil rights infringements harder to reverse, but a movement towards a more sustainable global economy may already be predetermined, even if the journey there may seem oblique. It appears that the increased economic development that is coveted globally is intrinsically linked to a rise in environmental and social consciousness.CITATION:Sykes, J P, Trench, A, McCuaig, T C and Jessell, M, 2017. Charles Dickens on the (potentially) changing role of globalisation and sustainability in the long-term future of mining and exploration, in Proceedings Tenth International Mining Geology Conference 2017, pp 239–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

It is the purpose of this paper to produce some evidence on the accuracy to be expected from normal assay procedure using the usual first class equipment, and to examine the effect that many assaying inaccuracies have on reported metallurgical recoveries.Generally speaking, the evaluation of the gold content of a mineral ore sample by the fire assay method is a relatively simple process.A weighed quantity of finely ground ore is fused with suitable fiuxes including litharge and a reducing agent to give a button of lead and a quantity of slag. The shower of lead produced by the reduction of the added litharge collects the gold and silver present in the ore, concentrating the values into the lead button.The button of lead, after separation from the slag, is, on heating in an absorbent cupel in a current of air, reoxidised to litharge and absorbed into the cupel leaving a gold and silver bead in the cupel. This bead' is heated in a solution of nitric acid to dissolve the silver, leaving the gold undissolved to be dried and weighed. Knowing the original weight of the ore and the weight of the gold prill the value of the ore is easily calculated.Summarising1. Fusion Process.-Ore plus fiuxes give a slag plus lead button.2. Cupellation Process.-Lead button is re-oxidised to litharge leaving a gold and silver bead.

Jan 1, 1952

This paper presents a resume of the likely profitable mining areas in New Zealand. It covers the main 'minerals' û gold, coal, oil and gas, ironsands, silica sands, clays, lump silica, perlite, sulphur and limestone. The potential mining projects are depicted on a map of New Zealand together with the associated works involved in hydro-electric and geothermal power development requirement for industries such as aluminium, nickel ferro-silicon or silicon carbide production. The political need for mining development to relieve unemployment and reverse emigration is stressed. A case is made for exploration and development assistance by government in labour re-training, energy supply and transportation, if the tremendous losses through lack of use of human and industrial resources are to be rapidly reduced. These losses are currently estimated at $10 000 000 000 per year. The need for protection of the sanctity of contract and security of tenure of all mining operations is touched on briefly as is the need for a reasonably balanced view on conservation. However, as both of these are more properly covered in papers on the legal and environmental aspects of the mining climate, they are presented here only as they affect the economy of the mining operation. Finally, there is a brief comment on the mining climate in New Zealand relative to Australia and South Pacific mining operations.

Jan 1, 1990