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By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Bell I. F

In 1985, ZC Mines (now Pasminco South) had been unprofitable for some years due to a combination of high operating costs, low metal prices, low head grade and an aging and inadequate mining infrastructure. However, the resource of metal in the ground was still of world class, even after some 80 years of mining. A major study, which was to be of two years duration, was therefore commenced to establish a practical and profitable long term mining strategy and to cost the infrastructure options needed for its support and thus form the justification for a capital expenditure program to take the mine profitably into the 21st century and its second century of operation. This paper discusses the rationale behind the methodology adopted and the nature of the results achieved in one aspect of the study - the determination of the mineable resource and the relationship between the head grade/quantity of the economically mineable resource and the variables of cut-off grade, cost structure, annual production rate and metal prices/exchange rates. The basis of the study was the designing of some 5000 scopes to mine out the entire resource for a range of cut- off grades and the assembly of the detailed physical data thus obtained in a stope-by-stope data base for financial and other analysis. Those scopes which were shown to be economically mineable were then scheduled for two optimum annual production/cut-off grade/metal price combinations to provide life-of-mine cost and value of production cash flows.

Jan 1, 1992

By S C. Dominy

Gravity amenable gold ores are those that after comminution produce liberated particles, composites and/or carriers that can be recovered by gravity separation means. Recovery depends upon mineralisation type and the comminution and concentration method used. Any in situ ore with more than 20 per cent of gold greater than 100 µm in size is likely to have a strong gravity recoverable component. A less traditional approach is where the gold is sulfide-locked and the gold carrier plus any liberated gold is recovered via continuous gravity recovery following fine crushing. Specific tests are undertaken to determine the level of gravity amenable gold within a deposit. The principal methodology is the gravity recoverable gold (GRG) test, which consists of three sequential liberation and recovery stages. For continuous gravity recovery (CGR), the sample is fed over a laboratory Wilfley table to simulate continuous recovery of the gold. Tails from the feed can be progressively re-ground and re-tabled to develop a grade-recovery curve. Primary geology and gold particle size-distribution have a strong effect on the mass of sample required to provide representative results for both tests. Where low-grade ore contains very coarse gold, substantially larger sample masses are required. Experience has shown that GRG and CGR values can vary throughout an orebody, particularly within different geological-grade domains. A testing regime must consider sample frequency and support.

Sep 5, 2011

By B Tutmez

Determination of stress-strain behaviour of rocks plays a crucial role in understanding the response of rocks during loading. However, it is a tedious, expensive and a time-consuming process to obtain such characteristics both in the laboratory and in situ. On the other hand, non-destructive testing methods such as ultrasonic velocities can produce a reliable and fast solution to indentify state of strain and stress in rocks. The present paper aims to provide insight into the relations amongst ultrasonic wave velocities, amplitudes and deformability properties of porous siltstone under compressive loading. For this purpose, pulse (vP) and shear wave velocities (vS) along with amplitudes (AP - AS), and applied loads with resultant strain were measured simultaneously so that response of siltstone to compression can be evaluated. In addition, initial vP and vS were recorded at the beginning of each test to calculate dynamic elastic properties of the specimens. This provided a comparison between static and dynamic elasticity properties of siltstone. Crack damage associated with the onset of dilation was also investigated. The results showed that there is a non-linear logarithmic relation between velocities and stress-strain level for siltstones.

Sep 26, 2011

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By S Hall

Mining schools around the world, many unfortunately now closed, were often established to teach the techniques of narrow vein mining and associated processing to students studying part-time while working in the industry. This arrangement ensured graduates (or æassociatesÆ) had a mix of skills and knowledge invaluable to the industry.It is argued that there is still a need to educate students in these narrow vein techniques and that there will be a growing demand for such graduates with a high level appreciation of this type of mining. There is also a need for innovation in narrow vein mining and processing to develop specific technologies and allow the use of techniques applied in æbulk miningÆ to achieve improvements in productivity, safety and economic performance.This paper aims to review the situation with regard to education and innovation in narrow vein mining.CITATION:Hall, S, 2012. Narrow vein education - back to the future?, in Proceedings Narrow Vein Mining 2012 , pp 23-26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By L Neems

In conjunction with Orica Explosives, Worsley Alumina have managed a program of continuous improvement to their cap rock blasting over the last two years. Blasting conditions are challenging because of the hard and shallow nature of the material. Blasting costs must be controlled and the environmental consideration of noise and dust is critical. Worsley have sought to determine the optimum balance between drilling and blasting costs and fragmentation. As the cap rock has few inherent weaknesses, loader productivity is strongly controlled by the degree of fragmentation from blasting. The optimum blasting solution is also constrained by maintaining airblast levels at the surrounding residences below 115 dBL . The major blast design parameters optimised during the program were stemming type, stemming length, powder factor and blasthole diameter. A series of carefully managed trial blasts were fired during 1997 and 1998 to quantify the effect of these parameters. Fragmentation was digitally measured using OricaÆs Powerseive G technique. Shovel productivity, airblast levels and blasting costs were also quantified. As a result of the project, Worsley now have an increased knowledge of the key parameters driving blast performance, and their consequent impact on downstream processes, the environment and total mining cost.

Jan 1, 1999

By Falbo A, Barbaro M, Esposito MA, Passariello B

Acidic reductive leaching is one of the best known and most widely employed chemical processes for beneficiating minerals of industrial interest. Conventional acidic leaching with sodium dithionite (Na2S2O4), employed to bleach industrial minerals used in the production of ceramics, glassware, paper etc, does not always allow products of high quality to be obtained. In the work reported here two reducing agents, ascorbic acid and oxalic acid, have been employed in a medium acidified by means of sulphuric acid. Continuous systematic tests have been performed on a kaolin sample containing 0.8 per cent Fe2O3, adopting various operating parameters such as, leaching time, temperature and reagent concentration. In each case the total quantity of bi- and trivalent iron dissolved was ascertained. Removal of 80 per cent and 100 per cent of iron with ascorbic and oxalic acid respectively was obtained, while less than one per cent of iron was dissolved in the presence of sulphuric acid only. Products having a very good degree of whiteness (92 - 94 per cent) were obtained, whereas with sodium dithionite the degree of whiteness was in the 85 to 88 per cent range. The best conditions identified were applied to a sample of quartz for the removal of ferric impurities.

Jan 1, 1993

By H Fletcher

Iron Ore Holdings Ltd (IOH) is an emerging junior iron ore company that is actively developing projects in the Central and Western Pilbara region of Western Australia. IOH commissioned URS Australia Pty Ltd (URS) in mid-2008 to prepare environmental assessment documents for the Phil’s Creek Project, which was rapidly moving into the development phase. This project comprised a small open cut iron ore mine that was expected to deliver approximately seven million tonnes over a five year mine life.IOH faced several challenges in the environmental assessment process for the Phil’s Creek Project. Although the Phil’s Creek Project attained approval but has now been placed on hold, it is a useful case study to discuss these challenges and how IOH addressed them. Several important lessons were learned through this process that can assist other proponents in addressing environmental challenges in a constructive and proactive manner.One major challenge faced by IOH related to the endangered northern quoll (Dasyurus hallucatus). Another challenge was the unusually high species richness of troglofauna recorded within the project area, with several species initially known only from within the proposed pit footprint.Meeting and overcoming these challenges has provided IOH with an increased understanding of the level of input required for consultation with government departments regarding environmental assessments, and this should stand the company in good stead for developing future tenements. Challenges in regards to the environmental assessment process may be faced during future developments, but IOH’s experiences to date and the lessons learned from the Phil’s Creek Project, will help pave the way for successfully overcoming them.

Jul 11, 2011

Until recently, nickel laterite projects have been largely ignored, due to their supposedly higher treatment costs compared with sulphides, and to their perceived processing difficulties. A number of laterite projects in the 1970s were abandoned because of high capital and operating costs, while others experienced severe technical difficulties. Conventional wisdom had it that laterites would not be exploited until most of the sulphide orebodies had been depleted. Why then, have Australian mining and exploration companies started a resurgence of interest in the treatment of nickel laterites? It all began with the Bulong project, which has been under study since 1987, while more recently two further projects, Murrin Murrin and Cawse, have been initiated and are being fast-tracked to take advantage of the current high nickel and cobalt prices. A further project in NSW, Syerston, has also been investigated at bench-scale, but no further development has yet been announced. All these projects have the following advantages: 1. Good location near a major mining centre and,reasonably close to power, water, roads, accommodation and a developed service industry. 2. Straightforward, low cost mining. 3. Low cost of acid or sulphur. 4. Good to very good cobalt credits. In addition, there have been significant technological developments in the design and operation of high pressure autoclaves and high rate thickeners, as well as solvent extraction and electrowinning technology. This has helped to decrease capital costs and technical risks, and has allowed the development of alternative flowsheets to the existing laterite operations (Taylor, 1996).

Jan 1, 1996

By P Moser, R Ivanova, F Ouchterlony

This paper describes model-scale bench blasts on mortar blocks with distorted drill hole patterns, done in 2013–2014 at the Montanuniversitaet Leoben. The main aim of the project is to see if the fragmentation from and the crack development behind blasts with and without drill hole deviations differ significantly.The dimensions of the test blocks were 660 × 280 × 210 mm (L × W × H). They were mounted inside a yoke that allows the blast waves to escape (see Figure 1). Three rows in each block were shot row by row with a nominal pattern of B × S = 70 × 95 mm. The same nominal delay 73 µs (ie 1 ms per m burden) between holes was used throughout. Blocks with holes of stochastic collar position errors (variations in burden or in burden and spacing but constant row volume) and systematically shifted collar positions (blasts with staggered pattern) were shot. The results were compared to reference blocks without collar deviations.Apart from the sieving analysis, the remaining bench faces were measured with a stereo-photogrammetric method and horizontal roughness profiles for each row were constructed. Sawing slabs from block remains after the third row and use of dye penetrant allowed the study of internal blast damage.The analysis showed that none of the changes in borehole collaring had a significant effect on the sieving curve (median). The sieving results confirm earlier findings though that the fragmentation gets finer with the number of rows shot, implying that blast damage from earlier rows has an influence on the blasting results. The tests demonstrated that the nequiv (equivalent n-value) has increased ten per cent by shooting staggered pattern and decreased by seven per cent by pattern with burden and spacing errors. For the rest of the patterns, the nequiv was roughly the same.The surface roughness investigation showed that a smooth surface was achieved by the staggered pattern. The other deviations patterns did not show a clear trend.The internal blast damage, which was measured in the remaining part of blocks, showed that out of eleven, four crack families seemed to be most affected by blasting. The comparison of the reference and distorted patterns showed that less cracks were apparent for the staggered pattern, ie less damage was introduced.CITATION:Ivanova, R, Ouchterlony, F and Moser, P, 2015. Influence of distorted blasthole patterns on fragmentation as well as roughness of, and blast damage behind, remaining bench face in model-scale blasting, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 693–706 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By S R. Pecover

AustraliaÆs opal and sapphire mining industry has fallen from its peak in the 1980s and 1990s into a significant low today. This is not due to exhaustion of the resource, but instead an over-reliance of the Australian miner on achieving a fair price for the gemstone product from offshore middlemen dealers. Gemstone and geological research is also at a low as Federal higher education expenditure has fallen with research institutions relying increasingly on private funding in an environment of restricted autonomy and flexibility for researchers. What little remaining research skills the universities have is being bled into the private sector as a result of the mining boom and encouraged by lower than average academic salaries. Nevertheless, some highly innovative research has been taking place, often by self-funded individuals and retired academics simply with a desire to advance the understanding of the particular branch of science in which they are interested. New models for the formation of sapphire and opal are now beginning to be applied to the exploration for these gemstone commodities. This research, together with well thought out plans for managing the gemstone product through its value-adding steps to the jewellery retail level, has the potential to bring about a resurgence in the Australian gemstone industry.

Jan 1, 2008

By L Dyer, A Keith, G D. Corder

As mining activity moves to remote and less developed locations globally, a holistic approach to mine development is fundamental for achieving a balance between strong financial returns and corporate social responsibility and transparency. Key inter-related fundamentals such as social licence to operate, life-of-mine operational planning, minimising environmental impacts and, most importantly, attractive investment returns for the mining company all contribute to the viability of any new mining project.However, the typical practice in the mining industry is often to treat environmental and social/community aspects as separate compliance issues that are dealt with at minimum cost and disruption to the project and resulting operation. This often results in less than optimum environmental and social outcomes, and presents considerable liabilities at the time of closure when rehabilitation programs continue to require funding when all revenue has ceased.The five capitals model seeks to identify each of the key contributors to sustainable development as financial, manufactured/physical, social, human and natural to formulate a type of triple bottom line approach balancing these often competing project factors. The SUSOP® sustainability risks and opportunities framework, developed by the mining industry, bases its approach on the five capitals model and proposes an approach that breaks down enterprise silos to identify innovative solutions for life-of-mine sustainability. This framework has been developed with the nature of mining projects in mind in order to produce approaches and outcomes relevant throughout the life cycle from the planning phases, through project design and construction into operation and closure.This paper argues the need for a more holistic approach to the development and operation of mining projects, and presents case studies where a holistic approach has been applied, in whole or part, and discusses the lessons learned from these case studies.CITATION:Corder, G D, Keith, A and Dyer, L, 2014. A capitals based approach – leading innovation in planning for life-of-mine sustainability, in Proceedings Life-of-Mine 2014, pp 499–512 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

Delivery of effective plant shutdowns is primary to the business success of mining and processing plant operations. This paper sets out a methodology that starts with understanding the business objectives of the shutdown and promotes rigorous detailed planning, effective communication, appropriate governance and effective participation of plant operations personnel. The result is delivery of business effective outcomes.

Jan 1, 2004

By S M. Stewart

Industry, especially extractive industry, must now give serious attention to the impact its operations have on the natural environment and on the economic, social, and cultural context within which it operates.   While this obligation is statutorily managed, there has been a recent shift towards a culture of self responsibility. Industry is now talking about earning its ôsocial licence to operateö and the importance of maintaining the ôtriple bottom lineö, thus adding environmental and social performance to the usual financial criteria used to measure organisational performance. The social context within which companies operate has also become more sensitive with industry responding to a growing public expectation that it conduct itself in a way that strives for sustainability by operating and developing in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs.   There are glowing accounts of industries engaging and collaborating with the communities within which they are based. In amongst these are also some disasters which result from cultural assumptions, industry created dependencies and the failure to attain community buy-in despite significant investment by the industry involved.   There are also remarkable stories of communities, and action groups within communities, being a significant catalyst for positive change of their natural, cultural and social environment. In amongst these stories there are also accounts of long and drawn out battles; adversarial situations where no one wins; a litany of mistrust, tricks and tactics, with the better resourced party ultimately achieving its primary objectives at the cost of the other (and at the cost of any potential fruitful, mutual relationships).   So what makes the difference in achieving the positive rather than negative outcomes? The answer lies in the way the outcomes are achieved. Building relationships based on good communication, respect for divergent views, mutual understanding, and the development of trust and empathy, makes it possible to identify shared goals and objectives that best meet the needs of all parties.   Research indicates the mining industry is making good progress in developing policy and commitment to community development and engagement but that, ætranslating commitments into improved practices at the site level remains one of the industryÆs toughest challengesÆ. (Australian Government - Community Engagement and Development Handbook October 2006 @ page 49.)   This paper considers the merits of a process of community collaboration and what it has to offer in terms of meeting that challenge.

Jan 1, 2007

By Z Terzic, M Schult, D Chu, S Macklin

The East West Link road tunnels are proposed to provide a connection between the CityLink toll road and the Eastern Freeway north of the Melbourne CBD. The alignment passes from Moonee Ponds valley beneath the Upfield Line railway cutting, Royal Park, the historic Melbourne Cemetery and beneath Alexander Parade rising to an eastern portal at Hoddle Street. The western (Royal Park) part of the alignment passes through the folded and faulted Silurian Melbourne Formation, which has been subjected to deep weathering since the Triassic.The Melbourne Formation in the Royal Park area is mainly characterised by interbedded sequences of siltstone and fine-grained sandstone. The beds are often graded and a clear boundary between the siltstone and fine-grained sandstone rock can be difficult to distinguish. Variation in lithology and the presence of structural geological features such as folds and faults have resulted in an irregular weathering profile within the Silurian rock; nonetheless the formation typically becomes less weathered with depth.Due to difficulties in obtaining reliable laboratory strength and stiffness relationships with weathering grade, in situ testing methods such as downhole shear wave velocity and high-quality pressuremeter testing are a useful aid to assessing appropriate geotechnical parameters for design.This paper presents an analysis of the variation in shear modulus of the Melbourne Formation, determined at small-strain (from downhole seismic data) and at ‘engineering scale’ strain (from pressuremeter tests) for extremely weathered (XW), highly weathered (HW) and moderately weathered (MW) rock. Estimates of small strain shear modulus (Go) obtained a range between 400 to 3400 MPa for these weathering grades. By comparison against the pressuremeter test data, reduction factors to be applied to these Go values to estimate shear moduli at engineering strain levels typically range between 0.10 and 0.35.The downhole geophysics undertaken in the Royal Park boreholes also suggests that there is an inversion in velocity between approximately 15 and 27?m depth below the top of the formation. This is thought to be related to the effects deep Plio-Pleistocene weathering, iron cementation of joints and increasing frequency of ‘non-healed’ joints in the transition from MW to slightly weathered (SW) rock.CITATION:Macklin, S, Schult, M, Terzic, Z and Chu, D, 2014. Strain-dependent stiffness of the weathered Melbourne Formation, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 179–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Historically the insurance industryÆs involvement in any project has been relatively late in the process. Often it was a case of the last item to be ticked off the checklist has been to ensure that the insurance is in place. However, in more recent times insurers have imposed more restrictions on the cover they are prepared to provide, which has in some cases necessitated a change in the contracting structure to accommodate the insurance policy(ies). In addition, changing contractual practices have changed the allocation of risk between the various parties involved. This calls for a more proactive approach to the design and implementation of an insurance program for both the construction and operational phases of any resource project. This paper explores how a risk managed approach to the design and implementation of an insurance program for a resource project can align itself with current management approaches to project development. From the authorsÆ experience, this approach is best adopted early on in the project (often in conjunction with the bankable feasibility study) and follows AZ/NZS4360 to objectively examine and compare a wide range of risk exposures of the project in a time-effective manner across the following areas: personnel; environment; general management; compliance û legislation, systems, protocols; asset management; change management; financial impacts to the organisation; products/services; service delivery; and technology. Having identified and then analysed the risk exposures according to common consequence and likelihood ratings the next step is to develop a risk map of all considered exposures. The true value of this approach lies in the development and implementation of a risk treatment plan for identified exposures where the exposure is unacceptable. The plans will lead to the optimal solution to the appropriate risk prevention, risk mitigation and risk transfer options available. This paper also examines other benefits to the project that may arise from adopting a risk managed approach in addition to the ability to design an insurance program which recognises the exposures and the ability of the organisation (and other project parties) to retain risk.

Jan 1, 2007

Mr GEPP said: "He proposed at the outset to draw attention to figures dealing with the population of the countries adjacent to Australia for the purpose of comparison with the population of the Commonwealth. He would deal more particularly with the areas of land surrounding the Pacific and Indian Oceans. Korea and Japan had a population of 18,000,000 ; China, 437,000,000 ; Persia, 9,000,000 ; Arabia, 5,000,000; South Africa, 129,000,000; Madagascar, 3,500,000 ; India, 251,000,000; Siam, Indo-China, and so forth, 16,225,000; Federated Malay States, 3,225,000; and, very significantly, Java, only four and three quarter days from Fremantle, over 50,000,000. From the map displayed an idea of the comparative areas of the countries mentioned and Australia could be gained. It was rather amazing that Australia, with its great potentialities, had only about 5,150,000 people. New Guinea had over 750,000 people; Hawaii, a mere speck, 250,000; New Zealand, 1,300,000; North America, 130,000,000; Central America, over 15,500,000; and South America, over 65,000,000. Colombo was only six days from Fremantle, and it was only nine days from Capetown to Albany, and eight days from Albany to Hobart. Proceeding, Mr. Gepp said "It was in 1911 and 1912 that I had the good fortune to spend nearly twelve months in Europe, and during the course of my work in England and Germany to have the oppprtunity of studying both the economical and political systems in some detail... I was in Berlin at the time of the visit of Lord Haldane, when an effort was made by the British Government to arrive at some under...

Jan 1, 1923

By Hookings H. J

UNDER a contract relating to the sale of a Broken Hill concentrate, the differentiation between granular and slime concentrate is determined by the proportion of the material which will pass a 200-mesh (I.M.M. standard) screen, and this has led to considerable attention being devoted to the question of laboratory sizing tests with screens of this order.It was found that many of the screens turned out by the makers during the war, and also since its termination, did not conform with the I.M.M. specifications as closely as some supplied in pre-war days. A perfect screen is hardly to be expected, but when the above contract was framed the parties anticipated that, by special care being taken during manufacture, a screen at least as good as the best pre-war screens would be available. This, however, has not proved to be the case, and the large irregularities in screens recently supplied render them useless for sizing determinations under the contract. The makers were approached through the Institution of Mining and Metallurgy, London, with the view of obtaining a few screens conforming as closely as possible to the 200-mesh I.M.M. standard, and in response to a request twelve pieces of screen were...

Jan 1, 1922

By A B. Christie

Space-based synthetic aperture radar (SAR) data is becoming available over much of the world, includingNew Zealand. Radar imagery has a number of very advantageous features, including all-weather capability; it also has artifacts, such as layover, which require processing before these data may be used to best effect.   This paper gives an outline of SAR, details the image processing required, and discusses the use of the first New Zealand Japan Earth Resources-1 SAR data to aid geological mapping on the Coromandel Peninsula.

Jan 1, 1994