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By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By S Kasaneva

TheSan Cristobal gold district is located 110 km east of the port of Antofagasta, Chile. It contains the San Cristobal gold mine, where Niugini Mining Ltd. commenced a heap leach operation, with initial reserves of 10.1 million tonnes grading 1.34 g/t Au, in December, 1990. The San Cristobal district occurs within an upper Cretaceous-lower Tertiary magmatic arc. The main mineralisation occurs within a northwest trending subvertical zone, 1km long and 70 - 100 m wide, which contains rhyolite porphyry and minor breccia, and is locally termed the 'subvolcanic complex'. At the San Cristobal mine, most gold mineralisation occurs in subvertical quartz-pyrite veins which were emplaced in dilational sections of an imbricate fault system. The bulk gold resource comprises four ore shoots which formed where the vein system intersects the subvolcanic complex. Gold-bearing quartz-pyrite veins also occur at separate prospects, the Three Sisters and Sol prospects, west and south of the San Cristobal mine.   Hydrothermal alteration consists of potassic and propylitic assemblages related to intrusion of the subvolcanic complex. This alteration is overprinted by a phyllic stage which is associated with the emplacement of the quartz-pyrite veins. The oxide zone is 180 m thick, and contains native gold, electrum, limonite, and manganocarbonates. The underlying hypogene zone contains pyrite with minor chalcopyrite, sphalerite, galena, covellite, bornite, chalcocite, and arsenopyrite. Fluid inclusion studies indicate that the deposit formed at approximately 270¦C, and the mean salinity of the fluid was 4% NaCl equivalent. These observations enable the San Cristobal deposit to be classed as a porphyry- related, mesothermal quartz-vein system of the low sulphidation type.

Jan 1, 1995

By I Özen, G Chitumbura

A paper identifying anticipated challenges in the extraction of the N3500 Orebody at Glencore Xstrata Copper’s Mount Isa Copper Operations was written in 2007. The paper identified the depth of the deposit, the anticipated high stresses, talc alteration and issues with ground support as factors that may affect production. A number of strategies were planned to cope with these issues. After six years of extraction those strategies are evaluated and additional measures taken are outlined. Strategies to cope with the limited mine life are presented, and methods to overcome additional challenges encountered during production are described.CITATION:Chitumbura, G, Matthews, D, Özen, I and Jackson, S, 2014. One mile underground – mining the N3500 orebody at Mount Isa Mines, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 265–282 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By P Mulvey

"Currently mine process studies and geochemical waste characterisation are considered as two interdependent studies, necessary for the development of the mine and inclusion in the environmental impact statement (EIS). Geochemical waste characterisation will utilise the simulated tailings produced by the mine process studies team to understand the behaviour of the tailings, but the two teams rarely integrate these to develop a coherent and agreed final design.Thorough mine waste geochemical assessments can develop processes to minimise environmental harm, resulting in substantial savings in the decommissioning, closure and rehabilitation phases, and may also be able to address changes in mineral processing methods that can result in substantial savings in process inputs, or even recovery of metal concentrates.Based on geochemical waste characterisation, the full cost of waste management can be calculated and incorporated into the costing of milling.  This allows for a more effective evaluation of the metallurgy.  A number of examples are presented in which substantial improvements have been made from the collaboration of both the metallurgical and geochemical teams during planning and the metallurgical team and environmental team during operations.*This paper is only available for individual download. It is not included in the conference proceedings*CITATION:Mulvey, P, 2013. Optimising metallurgy at the planning stage to minimise environmental impact - a feedback loop from geochemical waste characterisation, presented to MetPlant 2013 Conference (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 15, 2013

Some 800 analyses for Cu, Zn, Pb, Ag, Fe, S, CaO, MgO, C02, Si02 and Al203 were used to examine the elemental constitution of the Mount Isa ores, and, for comparison, those of the Northern Leases area.Lead: zinc relations show little order from sample to sample, but means of large zones (Le. individual orebodies) show a highly linear inverse relationship. Lead: silver ratios are fairly constant from sample to sample, and means show a highly linear direct relationship.Sulphide sulphur appears to be related to carbonate and alumina abundance, sulphur decreasing systematically with increase in the ratio CO2:AI203. In all graphs involving members of the group CO2-A203-S the lead-zinc and copper ores conform to the same simple trends, confirming that the two ore types and their host rocks are genetically closely related. The earlier deduction of a volcanic-sedimentary origin for the sulphides of the Black Star orebodies appears compatible with present findings.On the basis of such an origin, the pattern of sulphide occurrence and mineralogy in the Mount Isa district is possibly related to the configuration f the upper surface of the "Eastern Creek Volcanics", the facies patterns of the overlying sedimentary rocks, and to the oldest faults affecting the two.INTRODUCTIONStanton (1962) described and interpreted the chemical constitution of the Black Star No. 2 lead-zinc and the 650750 copper orebodies at Mount Isa. The investigation has now been extended to the other principal orebodies of the area.The earlier study showed that the host rocks of the two adjacent Black Star orebodies were constitutionally closely related, and suggested that this was probably due to their original formation in contiguous zones of sedimentation. On this basis the silica-dolomite of the copper ore appeared to represent the slightly more shoreward, "limey" member, probably a fairly massive algal calcareous sediment laid...

Jan 1, 1963

By A G. Noble

Tunnelling for hydro-electric power projects can be a very challenging component of the overall development. In contrast to urban transportation tunnelling where the logistics for access and supply of power, water and other essentials are readily available, hydropower projects are usually in very remote locations and all necessary plant, equipment, spares and materials need to be brought in and the site must function as a self sufficient unit.For a large scheme the river diversion tunnel(s) are usually on the initial phase critical path in order to meet the non-negotiable deadline of river diversion before the onset of the wet season. A newly formed tunnelling crew, once mobilised to the site for the project, will face the first major learning curve of the project’s systems and logistics during this critical tunnelling activity.Power tunnels convey the water to the turbines in the powerhouse and are usually on the critical path for the main works, especially if the scheme comprises a powerhouse located within an underground cavern. A modern cavern arrangement requires a complex warren of various openings: access adits, ventilation/cable tunnels, shafts, surge tunnels, etc.Hydropower tunnel construction tends to be dominated by tunnel boring machine (TBMs) or drill-and-blast excavation techniques and each has its challenges in very remote locations. TBMs still have long lead times as for any type of project, but additionally require a thorough roads and bridges infrastructure assessment of the country from the port of entry to the site to ensure a problem-free delivery. In some cases the project also requires the establishment of a complete precast concrete segment production facility and the space for creation of laydown areas; there is no ‘just-in-time’ delivery mechanism applicable to typical remote hydropower sites.This paper highlights the technical and risk management considerations in the planning, design and construction of tunnels for hydropower projects. It contrasts the typical factors that govern the design of urban transportation tunnels with those for remote hydropower tunnels. The perspectives of stakeholders are provided including those of international lenders. With examples from large and small scale projects across the globe it provides an insight to all parties and in particular, those tunnellers that are working in the hydropower field for the first time.

Mar 8, 2011

Talvivaara deposits, Kuusilampi and Kolmisoppi, comprise one of the largest sulfide nickel resources in the world with 642 Mt in Measured and Indicated Resource categories. TalvivaaraÆs preferred extraction technology is bioheapleaching, which is already widely used for other metals, notably copper and gold. The company has demonstrated the viability of bioheapleaching technology for the extraction of nickel using the Talvivaara ore. The leaching process is heat generating and therefore suitable for the subarctic climatic conditions. The planned annual metal production is 33 000 t of nickel, 60 000 t of zinc, 10 000 t of copper and 1200 t of cobalt. Talvivaara deposits are well-suited for open pit mining due to a thin overburden, favourable resource geometry and a low waste to ore ratio. The ore is relatively low-grade, but well suited to bioheapleaching due to its high sulfide content. Bioheapleaching is a process whereby metals are leached from ore as a result of bacterial action. The bacteria used in the Talvivaara bioheapleaching process are endemic to the area and therefore well adjusted to the prevailing environmental conditions. The solution is collected at the bottom of the heaps and either re-circulated through the heap or fed to metal recovery. In metal recovery, nickel, copper, zinc and cobalt are precipitated from the pregnant leach solution and filtered to produce saleable metal products. After the metals are removed, the solution is further purified and returned to irrigate the heaps. Mining, bioheapleaching and metal recovery techniques for the Talvivaara mine have been tested in a 17 000 t on-site demonstration trial during 2005 and 2006. Subsequent construction of the mine started in 2007 and commercial production in the fourth quarter of 2008.

Jan 1, 2009

IN the underground department of a mine, we may fairly say that "good management is based upon three elementals: first, sound engineering; second, proper coordination and efficiency of every human unit; third, economy in the purchase and consumption: of supplies.This paper is practically an analysis of the second element; which stands out prominently as the most important in the winning of successful results. The human units are divided into officers and men. The officers intermesh. One man takes responsibility where another throws it down; incessantly new conditions are arising where they may be doubtful of their powers; and always, on account of the three shifts, varying methods of work are coming into conflict. This very often results in disorganization. What is most necessary to guard against this is an esprit de corps, which would influence officers to stifle personal feelings for the general welfare of the department, To secure co-operation and loyalty of the staff, the writer recommends for the mines of the field a system of profit-sharing. Distributed on a salary basis, together with liberal holidays (not less than three weeks in each year) on full pay...

Jan 1, 1912

After a five year period representing the strongest resource and commodity rally ever experienced, we are now faced with a subdued recovery following the global financial crisis. This renewed economic growth will be steady but eventually attain levels that reignite export demand out of China and other emerging nations, which are now reliant on increasing domestic demand to support their economies. This backdrop of weaker share prices and less available investment capital creates a greater imperative for company management to ensure that its share price is fully valued. The mining geologist plays an important role in achieving this outcome through direct estimation of asset value (resources) but also in strongly communicating the æupsideÆ value opportunity in both mine site and adjacent brownfields exploration and an efficient and technically sound mining operation. The contribution of mining geologists to assist in conducting analyst site visits should not be underestimated, particularly with reduced analyst coverage of the resources sector and some simplification in company analysis through ranking companies on Reserve and Resource positions.

Jan 1, 2009

By W J. Rankin

Metals are well suited to sustainable development goals. They are not biodegradable and have virtually an unlimited lifespan and the potential for unlimited recyclability. Thus metals can be considered as renewable materials. However mineral resources, the source of primary metals, are ænon-renewableÆ as their supply is finite, but this does not necessarily mean scarcity. In this paper the results from a series of Life Cycle Assessments of primary metal production processes for copper, nickel, lead, zinc, aluminium and steel have been used to examine how metals may contribute to societyÆs transition to sustainable development. Particular issues considered include:current metal reserves and how these may change in the future; some of the environmental impacts (Total Energy, Global Warming Potential and Acidification Potential) associated with primary metal production and how they will be exacerbated by declining ore grades; new processing technologies with lower energy consumptions and improved metal extraction efficiencies that will reduce reserve depletion and environmental impacts; increasing the utilisation of æmetals in useÆ by recycling, with particular reference to aluminium; and the potential impact of a carbon tax on metal prices and how this may influence the ways in which metals are used in the future.

Jan 1, 2002

By M Colwell

The Coal Mine Roof Rating (CMRR) is a rock (roof) mass classification (RMC) system/index that was originally developed by the United States Bureau of Mines (USBM) for aspects of underground coalmine geotechnical design and was first introduced to Australia as a part of the original Analysis of Longwall Tailgate Serviceability (ALTS) project conducted in 1997/1998. In subsequent years further refinement to its calculation was undertaken, such that the CMRR is now an industry standard for quantifying the structural competence of the primary bolted roadway roof interval and has been routinely/widely used by Australian collieries over the last 25 years with great success for roof support/chain pillar design. There have been many publications discussing the use and calculation of RMC systems and this paper also provides an important update and recommendations in how best to calculate the CMRR. However, it is rare to find an explanation as to why and how a RMC system/index satisfactorily takes account of the mechanics and rock mass behavioural issues associated with ground reinforcement. This paper provides such an explanation and insight with respect to the CMRR so it is: 1) better understood, 2) to allay any concerns, and therefore 3) will continue to be confidently used by and for the collieries’ benefit.

Nov 29, 2022

Solvent extraction has recently been introduced into Australian hydrometallurgical practice for the production of a high grade uranium concentrate from El Sherana ore by a sulphuric acid leach and solvent extraction process. The solvent is a 5 per cent solution of tri(iso-octyl)amine in kerosene modified with 4 per cent of a long chain alcohol. The stripping reagent is a molar solution of sodium chloride.Preliminary testing for the development of the process showed that the leach liquor was quite amenable to the solvent extraction process and that the equilibrium and rate considerations of both the extraction and stripping steps were very favourable.The industrial plant contains four stages of extraction, three stages of chloride stripping and one stage of secondary carbonate stripping. An internal type of mixer-settler is used for the stagewise contact, the design being based on tests with model equipment.The performance and control of the industrial plant is satisfactory; 99·7 per cent of the uranium is recovered for a loss of 0·3 gallons of kerosene and 0· 4 pounds of amine per 1,000 gallons of liquor treated.INTRODUCTIONThe processing of El Sherana uranium ore from the South Alligator River valley commenced in April, 1959, and thereby introduced into Australian hydrometallurgical practice the unit operation of solvent extraction on an industrial scale. Although there are now some twelve mineral processing plants in the United States and Canada using solvent extraction, its application to the field of primary hydrometallurgy is quite new. Prior to 1956 none of these twelve plants was operating and hydrometallurgical application waslimited to the refining of comparatively high grade uranium compounds and fission products from nitrate and nitric acid solutions.

Jan 1, 1961

By C J. Moran

All mines face water management challenges. Adopting leading practice water management strategies can help reduce both operational and strategic risks. While many of the water issues faced by underground mines are the same as other operations, underground mining presents some unique water management challenges. In this paper we review trends in underground mining, water use and associated water issues. We then compile a structured set of strategic and operational risks that are pertinent to underground operations. The causes, threats, opportunities and measures for controlling or mitigating the risks are summarised. The risk compilation could provide an addendum for underground operations to the Australian governments leading practice water management handbook.

Mar 21, 2011

By D Kent, R Paine

"Automated mining systems are increasingly being seen as a key requirement for a productive mining operation in the future. The importance of an integrated communication network infrastructure to support such systems is growing.This paper outlines the introduction of automated mining systems in large conventional mines as well as their growing role in block cave mines currently operating or being developed. The paper will then focus on a case study of how the communication infrastructure is fundamental to the operation of such systems and explain why the resultant communication networks require much more than just increased bandwidth (data capacity) to properly support the automation system within the overall mine operation.Mining operations already embarking down this road are discovering that the required network must be based on a true enterprise level architecture to not only enable the mine’s current plans for remote and automated mining, but also provide a scalable and integrated platform for future developments and requirements. The emerging issues for the communication network to truly support automation systems include: increased complexities of operating and maintaining multiple networks integration issues with disparate systems problems with reporting particularly as demands for corporate reporting and compatibility with enterprise systems become the norm ongoing management challenges, which will only increase with the proliferation of new technologies.The paper will explore how certain mining operations are addressing this by adopting a long-term strategy for automation deployment, which includes laying the necessary foundation architecture to meet their current requirements, while supporting their future visions for the fully automated mine.CITATION:Paine, R and Kent, D, 2014. Developing the foundation communication infrastructure to support remote and automated mining initiatives in underground mines, in Proceedings 12th AusIMM Underground Operators’ Conference 2014, pp 151–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 24, 2014

By M Neurohr, B Wacker, D Mensing, C Murphy, W Kitz

Mining operations have large power requirements. The biggest consumers of energy are the drives for the mills located in the concentrators. Assuming that the decision is made on how many mills are needed and how big these mills will be, it can be determined how these mills should be driven. The decision as to which drive should be applied depends on design limits for different mechanical or electrical drives, anticipated operation modes, capital expenditure optimisation and lifecycle cost optimisation.The task for the engineer specifying the drive equipment is to select a drive solution that can debottleneck the operation, avoid interruption of production and enhance the reliability of the process. At the same time, the engineer must choose a design that enables cost optimisation either in a single investment or in relation to the total cost of ownership (TCO).This paper outlines different mechatronic or electric drive alternatives for tube or horizontal mills applied in the mining industry, along with their advantages and disadvantages. The paper covers a wide range of applicable drive systems and provides a background to the benefit of applying integrated drive systems.CITATION:Wacker, B, Kitz, W, Murphy, C, Neurohr, M and Mensing, D, 2015. Application of different drive systems for horizontal mills, in Proceedings Iron Ore 2015, pp 205–216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

The pressure of low commodity prices forced the design process for the second lift of Northparkes E26 Mine to adopt a continuous improvement philosophy. The emphasis was to minimise capital expenditure while still maintaining the excellent low operating costs achieved on Lift 1. Although the first block cave lift at Northparkes is the most productive underground mine in the world and is held up as a benchmark for the use of technology in mining, areas for improvement were identified. Every area was critically assessed and investigated for the possible application of new techniques and technologies. Key learnings from the construction and production phases of Lift 1 were captured, documented and used as the starting point for the Lift 2 design. This paper shows how and why the design parameters initially used onLift 1 were changed to become the current E26 Lift 2 developmentproposal. The main differences between the two block caves arehighlighted. The alternative techniques and equipment that wereconsidered are also discussed. * Originally published in the Proceedings of MassMin 2000,published by The AusIMM.

Jan 1, 2001

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By G S. C Murray

Major mining projects are developed with the assistance of lending institutions who provide hundreds of millions of dollars in funding over several years, and of course expect those funds to be returned with interest. Two Australian banks have adopted the Equator Principles, an emerging financial industry benchmark for assessing and managing environmental and social risk in project financing. Project financiers have encountered environmental and social issues that are both complex and challenging, particularly with respect to projects in the emerging markets of Asia-Pacific and elsewhere. There are many recent and historical examples of failures by resource companies to effectively manage their environmental, social, safety and security risks, some of which have caused the project to fail completely, and some of which have caused the temporary cessation of production. These events put the financial institutionsÆ funds at risk through inadequate management capacity and non-compliance adversely affecting the ability of the borrowers to repay the loans. They can also reflect adversely on the reputation of the lending institutions. In assessing these risks, lenders are increasingly looking at the track record of the borrower in its country of origin and in other countries where it operates. Lenders are wary of companies that have one standard for operations in a developed country, where the regulatory environment may tightly control what they do, and another standard for operations in countries where the regulatory regime is perhaps less stringent. Lenders may require environmental and social reviews or audits to be conducted on their behalf by competent third parties prior to a loan being approved, and annually over the life of the relationship. The mining industryÆs concept of the unwritten æsocial licence to operateÆ is highly relevant in relation to the delivery of community benefits that are sustainable post-mine closure. This paper provides examples of recent practices that support financial viability and sustainable development, as well as examples of some failures that have put lenders at risk.

Jan 1, 2007

Classification within the Inferred Resource category is based on geological judgement and the balance of extrapolation versus interpolation that the Competent Person is prepared to accept. These resources are typically drilled at spacings well in excess of the geostatistical range and at a density that is non-uniform. In many cases, a substantial proportion of the available data will be historical, and should be considered with more recent data sources. The provision of a robust geological model will increase the confidence in any resource estimate, and should be viewed as a critical component. The definition of Inferred Resources is of great importance to vein gold projects, since Indicated and Measured Resources generally require costly underground development for delineation. Indeed, many gold vein operations possess substantial quantities of Inferred Resources (>75 per cent) in their resource inventory both at project start-up and during production. This contribution explores a number of the key issues when using the Inferred Resource category and presents four recent case studies.

Jan 1, 2006

Real-time data collection and plant historians are becoming common place in mining and processing plants. This vast quantity of data must be turned into easily accessible and actionable information for all levels of the organisation.Queensland Nickel use a combination of Microsoft and SAP business intelligence tools to collect, cleanse, aggregate and present plant information to the appropriate people for supporting decision making in the business. SAP Business Objects, for visualisation, and SAP MII, for integration, allows complex and accurate metrics to be delivered as real-time dashboards. Designing a rigid data management architecture to segregate the data collection, integration and logic and visualisation into distinct logical layers, allows for rapid report development and greatly assists with IT maintenance, while also minimising the complexity of any customised programming. This type of architecture ensures a common data source for all business reports, ensuring one version of the truth. The past few years at Queensland Nickel have seen process and maintenance engineers spending considerably less time collecting and integrating data and spending more time analysing what is happening in the plant. Real-time reports and dashboards have been developed around the business needs rather than around the data. Two years ago Queensland Nickel introduced an employee bonus scheme based upon meeting monthly performance targets; an easy to use dashboard that allows everyone, from operators through to management, to monitor these metrics day-to-day.

Sep 26, 2011