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By J P. Sykes, A Trench

Mineral commodity prices are subject to volatility over both the short and longer run – driving fluctuating operating margins for mining companies over time. Such market dynamics influence mine operating decisions depending on the interplay of company-specific and mineral market factors. The company factors include corporate financial strength and price-risk management strategy, as well as mining practices and methods at the operation level. The critical mineral market factor is the price of the ex-mine product. This results from underlying microeconomic and macroeconomic root-causes pertaining to mineral supply and demand, in addition to the activities of financial participants within commodity markets.Significant changes in commodity prices of an extended duration, either up or down, remain the principal influence upon mine economics – and therefore on mining practices too. Accurate and precise forecasting of commodity prices (and of relevant exchange rates) continues to prove elusive both to mineral economists and market analysts. Thus, at any given point in time, there are often widely differing price forecasts available for both the relevant commodity and currency. Companies as a result are unclear how to respond in practical operating terms to such price-side uncertainty – other than to manage incremental capital and operating expenditure. Typical company – and industry financier – responses to the difficulty in predicting future mineral commodity prices are to take measures to manage uncertainties in mining project revenues and costs. These operating practices are prudent – yet come at an economic cost: that is, lost revenue and margin opportunity is inevitable in any such system not easily capable of responding to price volatility in the market. The mine of the future will seek to capture this lost economic opportunity. This paper presents a three-stage framework for analysing commodity price forecasts to aide understanding of the commodity price cycle and the periods of high-margin opportunity.CITATION:Trench, A and Sykes, J P, 2014. Perspectives on mineral commodity price cycles and their relevance to underground mining, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 19–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By Szymanski J

In the first part of this paper, the principal sources of dilution during underground evaluation and mining are discussed, then definitions of ore dilution currently in use are analysed. These definitions vary depending on the authors. Ten different analytical expressions of dilution percentage currently exist. It is demonstrated, with the help of a numerical example for a given mining condition, that dilution percentage results vary considerably and that they depend on the definition used. This situation makes it difficult to compare different results regarding the dilution problem, often because some of the terms used are contradictory. A new ore dilution evaluation methodology is proposed, replacing the ten different analytical expressions by only two: the planned dilution factor related to the stoping selectivity, done at the mine planning level, and the additional dilution factor related to the efficiency of the dilution control measures during stoping operations. The conclusion shows that the use of this methodology would be a definitive asset in planning, in stoping operations follow-up, and in future costs comparison studies between mining operations.

Jan 1, 1995

By D Lees

Safety is paramount in the underground mining environment. The mining industry has for many years focused on injury prevention in the workplace through procedures and training. In the area of control of major accident events that could result in single or multiple fatalities, and serious injuries, the mining industry approach has concentrated mainly on past experiences and lessons learnt. However, in the last 20 years, other high hazard industries, such as the chemical process industry and oil and gas industry have developed the Safety Case approach, using systems safety techniques and risk assessment as a means of identification and control of major accident events. The Safety Case approach is now being introduced into Australian underground mining. This paper describes the Safety Case approach and how this can be adapted to underground mining. This is a holistic approach and assists in ranking significant risk contributors and prioritising risk management efforts. The discussion includes how the Safety Management System interfaces with the Formal Safety Assessment in effectively controlling the hazards. It provides examples from actual case studies conducted by KBR, and suggests ways forward for the industry.

Jan 1, 2003

By Yaniuk DW

The sampling of non-ferrous concentrates from trucks and trains has long been carried out either manually or by automatic spears. Very little use has been made of conventional sampling systems for sampling concentrates at transfer points, or cross-belt samplers for sampling from the belt as the concentrate moves along the conveyor.Due to the high value of base metal concentrates and the often extremely heterogeneous nature of the material it is imperative that the sampling procedures adopted are accurate and precise. The basic principle that all particles in the stream have an equal opportunity to be included in the final sample is not fulfilled by accepted traditional concentrate sampling procedures such as the spearing of wagons, trucks or streams. This may lead to significant bias being introduced into the final sample.Consequently, the application of correct sampling procedures, either with conventional cross-stream samplers or the newer cross-belt samplers, is of prime importance.SGS Australia has recently installed a number of cross-belt samplers for the sampling of base metal concentrates both in Australia and overseas. The application of these samplers will be discussed with emphasis on the benefits of their use.

Jan 1, 1976

By N Javati, G D. Carman, D Kikiha, B Likia, K Dala, J McPhie, R Johnstone, D R. Cooke, J L. Blackwell

The 40 Moz Ladolam gold deposit on Lihir Island, Papua New Guinea is the worldÆs largest, low-sulfidation, epithermal gold deposit, in terms of contained gold. The deposit has average grades of 2.42 g/t Au (LGL Resources Reserves Update, 2008) and gold is hosted primarily in refractory pyrite. Lihir Island is part of the 150 km long, Tabar-Lihir-Tanga-Feni, alkalic, volcanic island chain located in the New Ireland basin. Five volcanic blocks comprise Lihir; Plio-Pliestocene Huniho, Kinami and Luise volcanic edifices are built on top of remnant Pleistocene Wurtol Wedge and Londolovit Block (Wallace et al, 1983). The Ladolam gold deposit is located in the central portion of the dissected Luise volcanic edifice and is composed of four main orebodies: 1. Minifie, 2. Lienetz, 3. Coastal, and 4. Kapit. An active geothermal system is overprinted on the ore deposit, localised along north-trending lineaments, and is expressed as hot mud pools and fumaroles. The focus of open pit mapping and drill core logging, as part of ongoing PhD research, has been in the Minifie and Lienetz orebodies. The deposit geology is grouped into four main phases: 1. volcano-sedimentary host rocks, 2. porphyry-style biotite alteration and related hydrothermal breccias and veins, 3. epithermal-style breccias and veins, and 4. modern geothermal alteration. Gold is associated with epithermal-style alteration and mineralisation. Ongoing observations of the Minifie and Lienetz orebodies are highlighting differences in the geology and paragenetic histories. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By Mckenzie CK, Leach KR, Bateman KW

Modelling of industrial coal flotation based on data collected in several Central Queensland flotation plants and supplemented by laboratory data is discussed. The model is kinetic in form and provides the basis of an automatic control system. The important features of the model are, 1. a distribution of flotation rates for each species of particles corresponding to the range of particle sizes, 2. a physical restriction on the removal rate of solids in cells where froth 'overloading' occurs. In this condition the removal rate of solids is proportional to the removal rate of water, 3. enhanced particle floatability due to increasing collector addition where froth overloading does not occur, 4. a second mechanism of recovery of all particles by mechanical associ- ation with water. This mechanism is particularly important in the recovery of fine high-ash species.

Jan 1, 1978

By Wilson R. G

Mining conditions imposed by a coal seam roof can be analysed according to natural causes, before consideration of strata control. All types of roof behaviour can be explained by considering only three independent variables. They are roof rock types, rock stresses and discontinuities. Roof rock types encountered in the Sc.ithern Coalfield of New South Wales (NSW) are sandstone, shale, mudstone, laminite and coal. Each rock has its own mode of failure. Lithological stability of the sediments varies from one type to another. Regional stresses upon a coal seam roof will vary in magnitude according to the proportion of gravitational stress, which is related to depth of cover, and residual stress, which is related to the maximum depth of burial and may be gauged by coal rank. Local stresses will vary according to tectonic deformation, related to irregularities in seam structure.

Jan 1, 1976

Structural geological information is widely used at the Mt Whaleback Mine, Newman, WA. Recent improvements in the structural understanding of Mt Whaleback are providing a very cost-effective way of reducing geological risk, improving the economics of mining, optimising pit design and addressing safety problems. The structure of the Mt Whaleback orebody is highly complex and has a significant influence not only on iron ore genesis but also on pit wall stability. A team approach between the Structural Geology and Geomechanics Groups has been providing excellent results to reduce geological risk at Mt Whaleback.

Jan 1, 1994

Elastomeric compression gaskets for segmental tunnel liners are capable of fulfilling all sealing requirements for one pass constructed tunnels.Once the segments are mounted and the gaskets are compressed the watertightness of the tunnel is guaranteed at once and for the whole technical life time.The only prerequisite for effective sealing is that tolerances in the tunnel segments be kept within reasonable limits.

Jan 1, 1993

The equity market is now very much within a global village environ- ment, with various exchanges acting as agencies for the big casino. In this predicament, mining companies, who provide the most extensive, but relevant risk assessment information, will be best placed for favoured treatment by potential international investors: But what risk assessment information in summary form can be provided to support a resource/reserve statement? Even more importantly, does "objective" data exist, whose trends will support a resource/reserve state- ment? A prime need of the informed mining investor is to determine whether or not the resource/reserve statement is believable? But more importantly will it be realised? While the implications within the text of the majority of reports on resource/reserves suggests that the estimates are conservative, the record indicates that very few estimates are. In fact, to date, reports claiming to be conservative in respect of the overall grade estimate at a specfic cutoff have not reflected the realised grade at the stated cutoff; it has been more common for the realised grade to be lower than implied by the resource/reserve statement. Further, it is not uncommon for penalty elements to be understated and these components are rarely incorporated within resource/reserve statements.

Jan 1, 1988

The design of mine ventilation systems for the BHP Steel Division Collieries is based on the acquisition of ventilation survey data for the establishment of a realistic computer net- work model. The branches which form the net- work for the computer models are calculated from a range of resistance factors incorporat- ing both a frictional and shock loss component. Since shock losses can account for up to 30 per cent of the total energy losses in mine airways the use of friction factors alone without accounting for shock losses will result in the choosing of an insufficiently performing fan. Published tables of friction factors have in- variably been taken from metalliferous or single entry studies and consequently are not reliable for Australia's mining conditions where multiple entries with regularly spaced cut-throughs are the normal practice. Typical resistance factors for roadways of rectangular cross-section 5.5 m x 2.0 m, with coal sides, have been found to vary from 0.11 Ns2/m8/km where no timber supports are used, to 0.98 Ns2/m8/km where double centre legging together with wooden chocks is used. In addition to the range of resistance factors due to varying support methods, the nature of use for a roadway is very significant because of the condition of repair and upkeep maintained.

Jan 1, 1983

By Braaksma M, Dudley K

The Girilambone Copper Mine is located in central New South Wales and has been operational since May 1993. Girilambone is operated by the Girilambone Copper Company (GCC) which is a joint venture between Straits Resources (60 per cent) and Nord Resources (40 per cent). The mine complex consists of an open cut pit, ore crushing and stacking, heap leaching, solvent extraction (SX) and electrowinning (EW) allowing for the recovery of 14 600 tpa of LME grade A cathode copper. The leaching and SX-EW plant have been described previously by Rear, Taylor and Busby (1994) and Miller (1994).

Jan 1, 1996

By Hossaini SMF

After reviewing the various approach es,namely, empirical,analytical.observational and numerical, a logical systematic approach is proposed for the estimation of compressive strength of coal pillars. In this approach first,uniaxial compressive strength of coal in pillars is estimated,taking into account the size effect and the effect of discontinuities. Next,the compressive strength of coal pillars is estimated by determining the stress distribution in the pillar and the Bieniawski strength criterion. The results appear to be compatible to the ones obtained by Wilson's method. The traditional pillar design equations give improper answers for deep workings.

Jan 1, 1991

By Mitchell M. A

The steeply dipping Mammoth orebody is mined by Gunpowder Copper Limited using a sub- level uphole bench stoping method at a mining rate of 350 000 tonnes per year. of three per cent copper ore. Access to the mine, is provided by 1 in 9 decline which spirals in the footwall connect-, ing all the sublevels, thus maximising mobility and accessibility of trackless mining equipment Sublevels are driven in ore off cross- cuts from the decline every 15 metres vertic- ally. Sublevel drives are stripped out to widths up to 18 metres before cutoff slots are mined at each end. A two boom fan drilling jumbo is used to drill inclined rows of holes to the floor of the sublevel above. Two or three rows are fired at a time which allows broken ore and remnants from the level above to be mucked out by rubber tyred LHD equipment to the brow. Ore widths of up to 80 metres are en- countered at lower levels where ring drilling from longitudinal drill drives will break ore to a draw point system below. Development is carried out with three boom rubber tyred jumbos. All haulage from the mine is in 20 and 35 tonne rear dump trucks. All aspects of the mining operation are discussed including ventilation, pumping and drainage, services and future planning.

Jan 1, 1974

The underground mining of a narrow vein hard rock orebody is a capital and labour intensive method of extraction. Due to the nature of underground mining it is difficult for higher level managers to physically see the efficiencies and inefficiencies of a particular method. Extraction methods and sequencing often need to be altered from the original planned methods as a result of mine developent, providing more in depth information as it progresses. As a result of these issues contract mining of these orebodies is common practice. There are several types of contract structures for the purpose of underground contract mining with many complex permutations of them that reflect the different needs of each individual company and orebody. The different contracts are arranged dependent on the mining companyÆs desire to transfer or, alternatively, embrace risk. This presentation gives a brief overview on these different methods and their various advantages and limitations with regard to small scale and narrow vein underground mining. With respect to these different contracting methods, the presenter reviews the mutual growth benefits of emerging partnering opportunities, specifically with regard to smaller explorers exploring and developing prospective mining tenements. The specific advantages to small explorers include the resource flexibility and speed of project development that private mining contractors can provide. Given the contracting methods that are available, there is potential for small private mining companies to gain minor stakes in major projects and major stakes in medium sized projects by employing innovative contracting solutions to provide mutual benefits to the parties. Some potential scenarios to this effect are suggested in the presentation. This paper is available as a PowerPoint presentation only.

Jan 1, 2006

By Hunter GW

This paper gives an account of the filling system at Mount Isa from surface fill production to stope discharge underground. A brief explanation of the surface facility and reticulation is given prior to the discussion on aspects of underground reticulation. These include fill hole types, pipe and breastplate installation, wear characteristics, etc. The different types of fill and their respective applications is mentioned as a prelude to a general overview of the mining considerations associated with fill placement and its role in the long term planning strategy at Isa Mine. Some practical aspects of stope preparation and filling procedures are outlined for the various stoping methods. Finally a brief outline of future fill developments is given.

Jan 1, 1982

From the ventilation aspect, there is a basic difference between advancing and ezreating longwall layouts. Particular rroblems with retreating, using differing mining methods and layouts include high gas emissions, spontaneous combustion and -radients. There is an acceptable method of crntrolling the environment at the return end a retreating longwall face without the use a multiple heading system. Incorporated in the design is the facility to practice xtensive methane drainage, thus ensuring a ntrol of the rate of methane emission into the main roadways. Case studies highlight varying mining editions under which the proposed system of Ctised.

Jan 1, 1982

By R Rodriguez, S Gumo

The Lihir Gold Mine, in Papua New Guinea, is a large open pit operation within an active geothermal system inside a collapsed volcanic crater. This unique setting has a big impact on the mine operation because of the occurrence of geothermal hazards. The system for managing geothermal hazards that has been developed by Lihir Gold Mine is a pioneering effort that can be applied to future mine discoveries in a similar environment. The controls are integral to the mining operations and allow mining to proceed whereas without them mining could not be considered. Truck and shovel productivities in conventional open pit operations are constrained by diggability, equipment availabilities and utilisation. At Lihir, additional constraints are in the form of 100 m exclusion zones around working shovels and 50 m exclusion zones around working drills. Given that the mine has seven large digging units and six drills, this amounts to a lot of area that excludes the presence of people on the ground. So how are the necessary work like grade control, survey, blasthole loading, and in-pit maintenance performed safely to achieve production targets? The answer is in the highly specialised procedures that have been developed that utilise geological, geothermal and geotechnical knowledge to predict problem areas and also deal with the organisation of movement in the pit for people and mining equipment. This paper will detail how scheduled material movement can be maintained despite the challenging conditions faced at Lihir Gold Mine.

Jan 1, 2007

By Ahmed M, Leung L

A program of microseismic noise monitor ing for gas outbursts, in conjunction with other mining engineering measurements and observations, is being undertaken at Leichhardt colliery in Queensland. Headings are developed at present by shotfiring. The equipment being used in this study includes piezoelectric accelerometer assemblies to detect microseismic noise which is then transmitted to a surface base station by cable. Data are recorded on an analogue magnetic tape recorder and are also analysed on-line using a commercially-available acoustic emission pulse analyser. It is proposed to re-interpret recorded data using various modes of analysis and to interface a desktop computer to the existing system to permit continuous monitoring on the mine site. No outbursts have been recorded or analysed and only a limited number of develop- ment shots, and the resultant microseismic activity, have been recorded to date.

Jan 1, 1980

By Hermann J. A

Over the last few years enormous dapooits of high-grade bauxite have been discovered in Australia, ;_ d an alum .nium smelting industry based on them is rapidly being developed,, This industry requires large amounts of carbon, as about 60 pounds of carbon anodes are consumed for every 100 pounds of aiumin.'.'-n produced. Tie anodes are usually made by mixing finely ground petroleum coke with coal tar or petroleum pitch, forming the mix into shapes under pressure, and baking them at around ?.200¦C0 Petroleum coke is ussd uecause its high density gives good strength and conductav_ty to the finished electrode, and its purity ensures that contamination. of the alumin- ium by extraneous i,iorganic material from tho carbon is low,

Jan 1, 1969