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"Cash flow modelling during project evaluation is enhanced when probabilistic methods are applied to the inputs. One of the important inputs is the quarterly production profile. Typically, the steady-state production profile provided to project evaluation practitioners is deterministic, with each quarter the same as every other quarter. This is unrealistic as actual production profiles from existing mines exhibit a range or quarter-on-quarter variance. Monte Carlo stochastic simulation of the production profile can be used to provide a range of possible outcomes, but how are these ranges selected? This paper describes the use of quarterly production variance from a large database of mines worldwide as a benchmark to inform the appropriate selection of ranges. The coefficient of variation is used to rank the production from mines, with quartile analysis applied to indicate industry best, median and worst variation. Due diligence of existing mines and evaluation of future production performance can be quantitatively assessed using this approach. Examples of the effect on value are provided.CITATION:Stewart, C A, 2016. Production variance benchmarks and their use in project evaluation and due diligence, in Proceedings Project Evaluation 2016, pp 201–213 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By S Hughes

The smelting of concentrates and secondary materials has been subject to increasing challenges in recent years due to declining grades of feed materials, increasing impurity levels and ever more stringent environmental regulations. In addition there has been a growing focus on maximising the efficiency of energy usage and recovery of values. New opportunities have been created with rising metals prices and improved systems for the collection of secondary materials, giving rise to a need for more flexible process solutions.This paper focuses on a number of specific cases where a process solution has been developed using the Outotec« Ausmelt Process to meet particular feed material challenges and overcome limitations inherent when employing traditional pyrometallurgical processes.The first case involves the development and commercial implementation of a smelting process to recover values from zinc smelting residues typically deposited into dams as a waste product. The second case describes the application of the Ausmelt process for the smelting and converting of secondary copper feed materials, including e-waste. These materials contain a wide range of metals and plastics and need to be processed appropriately to maximise the recovery of values whilst avoiding environmental problems. The third case study covers the smelting of nickel concentrates containing elevated magnesia levels as well as nickel bearing catalysts with high alumina content, neither of which can be readily processed when employing traditional pyrometallurgical technologies. CITATION:Hughes, S, 2013. Pyrometallurgical process solutions for complex raw materials, in Proceedings MetPlant 2013 , pp 519-530 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By M Akop, G Phillips, L Elliott

An estimation geologist has many tools in their kit and using the correct one for the job is vital for creating a useful model. Reconciliation is a key step to monitor the performance of a resource model and to ensure the correct tools have been selected and appropriate parameters are set. This paper presents an example of refining the estimation methodology for a Channel Iron Deposit (CID), resulting in an improved model. Rio Tinto Iron Ore (RTIO) CIDs are unique iron ore deposits located in the Pilbara region of Western Australia and contribute a significant volume to the world’s seaborne iron ore market. A problematic feature of these deposits is the irregular dispersion of clay pods that cannot be delineated with confidence within the resolution of the exploration drilling. Resource to grade control reconciliation showed an over-prediction of high-grade material in the resource model. A fresh approach was required to improve grade and tonnage predictions. Historically, clay pods were delineated using traditional wireframing techniques and estimated using ordinary kriging with hard boundaries. The new method utilised indicator kriging to estimate the probability of clay. Probabilities generated from the indicator kriging estimate were used as an additional weighting following the ordinary kriging of grades. Results showed indicator kriging improved global high-grade tonnes reconciliation, however, as expected, it did not improve the spatial prediction of clay. Based on improved reconciliation results indicator kriging has now been adopted as a suitable alternative for analogous CIDs at RTIO. These improvements benefit the mine planning process, but do not replace grade control models.

Mar 22, 2022

It is proposed to deal with those raw materials which are produced in South Australia to meet the needs of the country's steel industry. They are chiefly, iron ore, limestone and quartz.Iron ore and limestone are fed to the blast furnaces of Newcastle and Port Kembla together with coke to produce the hot metal charge for the open hearth steel furnaces.They are also qsed in the raw state in the steel furnaces to assist in the conversion of the hot metal to steel. The iron ore is quarried from' Iron Knob and shipped from Whyalla to Newcastle and Port Kembla, whilst the limestone is supplied from the deposits at Rapid Bay and shipped in the same manner.Quartz is used in the manufacture of ferro-silicon, an alloy which is added to the ladles of molten metal tapped from the open hearth furnace in the case of almost every grade of steel. It is obtained from a quarry situated between Iron Knob and Whyalla, and shipped to Newcastle.IRON OREWith the exception of several small quarries situated at Breadalbane, Cadia, Cowra, Crookwell, Michelago, Jerrawa and lerraama in New South Wales, the iron ore requirements of Australia's steel industry to date have been met from Iron Knob and the Middleback Range in South Australia.Several of the small deposits in New South Wales were worked during the war years of 1941-44 during the shipping emergency and produced 1,355,417 tons, compared with an output of approximately 43,000,000 tons from Iron Knob between 1901 and 1949.

Jan 1, 1951

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

Current models for the origin of banded iron-formation (BIF) derived in situ iron ore deposits assume that the typical chert and iron oxide banded BIF is the primary rock from which enriched iron ore deposits arise by the selective leaching of quartz and the residual accumulation of the iron oxides. Weathering extends to the base of all the hematite deposits of the Hamersley Province, which lie within the saprolitic weathering zone, as shown by the preservation of the primary textures, and are overlain by a hydrated goethite zone representing the solum. Since groundwater typically contains dissolved silica, derived from the hydrolysis of silicate minerals, greatly in excess of the saturation solubility of quartz, it is incapable of removing quartz from below the watertable, and quartz is preserved in all saprolites derived from quartz bearing rocks. Quartz may be dissolved in the solum due to the influx of meteoric water having little or no dissolved silica, but soil-forming processes that dissolve quartz likewise alter the oxides by hydration and transposition with consequent destruction of primary textures, and there is no suggestion of soil-forming processes having produced the deposits, which typically extend to considerable depths below the water-table. A characteristic feature of the typical hematite orebodies is the unaltered nature of the iron oxides in the ore compared to those in the adjacent cherty BIF. Although the solubility of ferric iron at >10 ppb is much less than quartz, any process capable of dissolving the huge volume of quartz must also affect the iron oxides, but evidence of this is completely lacking in most ore deposits. Hydrothermal alteration at Koolyanobbing in the Southern Cross Province affects both cherty BIF and ore, and clearly shows equal mobilisation and recrystallisation of hematite within quartz/hematite veins and in the surrounding cherty BIF, which shows no evidence for the selective leaching of quartz. Similarly, any metamorphic process capable of removing all quartz from BIF would leave characteristic evidence in the remaining oxides. However, a hydrothermal process may account for at least portions of certain ore deposits, in which the chert bands have been replaced by carbonates at comparatively low temperatures, to produce a quartz-free magnetite/ carbonate rock that is readily upgraded to high-grade ore by supergene dissolution of the carbonates. This process is interpreted to have formed high grade ore at Mt Gibson, Koolyanobbing æAÆ Deposit and Mt Tom Price North Deposit. In addition to carbonate replaced cherty BIF at Mt Gibson in the Murchison Province, there are extensive sequences of magnetite BIF without chert bands, and this chert-free facies of BIF is interpreted as the precursor to the majority of in situ hematite ore deposits, through oxidation and weathering of magnetite and iron silicate and carbonate minerals. The world-class martite/microplaty-hematite deposits of the Hamersley Province are a special case of BIF-derived iron ore deposits that were initiated during the Proterozoic era. Evidence from overlying Wyloo Group conglomeratic horizons containing clasts of Hamersley Group BIF indicates that microplaty-hematite formed within the clasts before deposition, and that Proterozoic subaerial oxidation and weathering of uplifted Hamersley Group formations produced the microplaty-hematite in both chert-free and cherty BIF.

Jan 1, 2002

The New Guinea Mobile Belt is the northern zone of the Melanesian Orogeny (Dow and Sukamto, 1984), which consists of a complex zone ofupthrusted and accreted, regionally metamorphosed geosynclinal sediments and volcanics of Mesozoic to Eocene age and the overlying sediments. On the northern margin of this accreted terrane, formed an Eocene to Middle Miocene island arc. The North New Guinea Basin formed during the Upper Oligocene on the accreted margin. The depositional history of this basin is complicated by major crustal movements during the Upper Miocene to Holocene. During the Middle to Upper Miocene two magmatic arcs were emplaced. The northern magmatic arc is in part, spatically and genetically related to the Eocene to Middle Miocene island arc. The Maramuni-Utawa Magmatic Arc (southern) is a result of the Oligocene accretion and regional metamorphism. Coincident witt these magmatic arcs are belts of mineralization containing porphyry Cu-Au, epithermal/hydrothermal Au, Ag + Cu-Pb-Zn, exhalative Cu-Pb-Zn + Ag-Au, lateritic Ni-Cr-Co + PGE and alluvial Au, PGE, Cr occurrences and deposits. An intergrated tectonic model is presented for these and other data for the northern zone of the Melanesian Orogeny.

Jan 1, 1990

The Lennard Shelf is an Upper Devonian carbonate reef complex striking northwest for 350 km along the northeast margin of the Canning Basin. Numerous small Mississippi Valley type (MVT) Pb-Zn prospects occur within this belt, including the Wagon Pass prospect, located 105 km east of Derby in the Napier Range. At Wagon Pass, the base of the Upper Devonian sequence is a cobbly, dolomitic sandstone, the Van Emmerick Conglomerate. This is conformably overlain by the Frasnian to Famennian Pillara cycle Lower Napier Formation fore-reef deposits. These are characterized by red algal wackestones and terrigenous stylo- bedded packstones, with common dolomitization. The conformably overlying Famennian Nullara cycle contains a classic reefal assemblage, consisting of flat lying Nullara Limestone back-reef, fore-stepping massive Windjana Reef, and steep basinward dipping Upper Napier Formation marginal slope. The Nullara cycle is not dolomitized. The Wagon Pass mineralization is hosted by Lower Napier Formation dolomite. Mineral- ization consists of complex intergrowths and semi-massive assemblages of sphalerite and galena, with subordinate pyrite, marcasite, chalcopyrite, bornite, digenite, covellite and bravoite. Ore textures include granular and colloform. Gangue minerals are dolomite and very fine grained green chloritic clay. Although mineralization commonly occurs as reticulate fracture fillings, its overall distribution is stratabound. Ore paragenesis involved early "diagenetic" dolomitization, followed by breccia formation with chloritic and granular dolomite matrices. Main stage galena-sphalerite mineralization then occurred, accompanied by pervasive chloritization of silty units. Ore genesis was probably related to basin-derived "oil field" brines, with open space textures in the mineralization quite comparable to textures seen in Canning Basin dolomitic hydrocarbon reservoirs. Fluid inclusions in the host dolomite have typical MVT homogenization temperatures of 70-1150 C, and contain minor organic phases. The Van Emmerick Conglomerate, with its high porosity, dolomitization and weak Pb-Zn anomalism, was probably the aquifer for the mineralizing brines. Access of ore solutions to the Wagon

Jan 1, 1986

Utah Development Company operates a mine at Blackwater with a present annual production of 4 000 000 tonnes of coking coal. Mineable seams outcropping on the company's lease are part of the Permian Mammoth Rangal Coal Measures. Current operations are based pre- dominantly on the Main Lower seam. Coal quality variations occur along the seam strike, in the direction of seam dip, within the seam plies and in isolated anomalous areas. Raw coal of non-specification quality is washed to reduce ash and sulphur and to improve the free swelling index. Raw coal meeting specification quality is sent directly to product, by-passing the washplant. Careful attention to mining, coal preparation and product blending is necessary to ensure that the combined product meets specifications.

Jan 1, 1974

By Hall C. E, Chrisholm J. M

Resource calculations for shear hosted deposits of any type are difficult regardless of which calculation technique is used. One of the main problems is the determination of the geometry of the mineralisation. Once this has been elucidated then the appropriate resource calculation methodology can be employed with a search distance and orientation that is relevant.

Jan 1, 1993

Environmental impact and rehabilitation on completion are primary considerations in obtaining approval for mine projects from government authorities.This paper focuses on the planning and commencement of rehabilitation during the mining of an open cut mine (Hedges Gold Mine) in an environmentally sensitive area in the southwest of Western Australia.

Jan 1, 1992

By D Genge, E Martin, T Goswami, M Rothery

Rio Tinto’s Hunter Valley Operations is a large open pit coalmine situated in the heart of the Hunter Valley in Australia. The Riverview West Pit has faced increasing production challenges in recent times due to decreasing dragline strike lengths and increasing environmental constraints on vibration, overpressure and fume generation. Conventional mining techniques would involve five to six production blasts per strip to recover multiple coal seams. Each blast event carries the risk of exceeding the strict environmental requirements. By working collaboratively with Orica, it was realised that the blasting method known as Stratablast™, in conjunction with advanced computer modelling techniques, could provide productivity gains whilst simultaneously providing more control over the environmental effects and the impact on nearby infrastructure.As a result of this change, the number of blasts per strip was reduced to one, with the implication that a great deal of care and forethought was needed to manage the increased challenge posed by multiple constraints in the proposed mining area. This innovative approach of combining throw and stand-up blasts allowed the extraction of all major coal seams in a single pass blast event. The blasts were initially designed with a large factor of safety to stay within environmental limits as they were over 1.1 km in strike length, with more than 800 holes and with a total charge weight of about 1000 t of bulk explosives. Furthermore, there were conflicting priorities around the desired blast outcomes. So far, 11 such blasts have been designed and successfully fired. After each blast, innovative design changes have been iteratively implemented to provide further control over environmental impacts, whilst continuing to improve productivity. As a result of these changes, blasts have progressively increased in complexity with the inclusion of features such as damage zones, mid-splitting, time gaps and different directions of firing. The consequence of this complexity is that the blast duration can be as long as 28 seconds to accommodate all components of the blast.This project has increased the productivity of the Riverview West Pit through blast design improvements and allowed the environmental impacts to be managed with far more control and predictability than would have been possible under a conventional blasting regime. There still remains room for further optimisation of mine productivity and this is being addressed through a process of continuous improvement.CITATION:Goswami, T, Martin, E, Rothery, M and Genge, D, 2015. A holistic approach to managing blast outcomes, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 645–654 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The Olympic Dam Mining Operation involves the supply of some 2.2 million tonnes per annum of ore feed for the metallurgical plant. To achieve this approximately 9 km of tunnels are developed per year to gain access to the long hole open stopes that supply the majority of the production tonnes.Vast amounts of data are produced in the mining activity from the geology, mine design, scheduling, surveying, shift reporting through to the statistical reporting and analysis of the performance of the mine activities. Care must be taken when obtaining the data to maximise the usefulness of the data to other users so not to impose constraints or additional processes on future users.

Jan 1, 1992

A review is presented of techniques cur- rently in use, or being developed, to enable the determination of virgin rock stress at consid- erable depth (> 1000 m) from small diameter sur- face drill holes (

Jan 1, 1975

The mostly submerged New Zealand sub-continent has a complex geological history and an active oceanographic regime that provides opportunities and challenges for offshore mineral exploration. Known deposits include polymetallic Fe-Mn nodules and crusts, polymetallic massive sulfides, phosphatic nodules, titanomagnetitie ironsands and placer gold deposits. Currently exploration interest is high with some 3.5 per cent of the EEZ under prospecting permit or application.   Article 76 of the UNCLOS convention allows coastal states to have sovereign rights over areas of the seafloor that are natural prolongations of the landmass that constitute submerged parts of the continental margin as extended continental shelf. New Zealand has substantial areas of elevated ridges and plateaux beyond the 200 M EEZ that form extended continental shelf. New Zealand has nearly completed a ten year, $44.4 M programme to define its outer extended continental shelf. New Zealand will lodge its outer limits of the extended continental shelf with the UN-appointed Commission on the Limits of the Continental Shelf in 2006, which if accepted, will enclose ~1.8 million km2 beyond the existing EEZ. Ocean Survey 20/20 is a follow-on marine mapping programme to underpin resource exploration and environmental management of the EEZ and extended continental shelf.

Jan 1, 2005

By G Chitombo, M Ruest

In surface mining, studies of the kinematics of blasted rocks using high speed film/video image analysis have allowed the estimation of the starting time, direction and magnitude of visible movement of fixed sections of the free face. Horizontal displacement versus time plots from discrete targets at the face generally report changes in slope over very small time intervals. These changes indicate step increases in velocity due to the action of explosive gases. In practice, the onset of rock mass movement, different to localised spalling, has been associated with a response time which exceeds the combined times of detonation, propagation and reflection of stress waves. This time is referred to as minimum response or burden movement time. As an engineering index, burden movement time has been used to provide guidelines for the selection of inter-hole and inter-row delay sequences in production blasting. With respect to improving breakage and fragmentation, it has been demonstrated that the delay interval between adjacent explosive charges should be less than the expected burden movement time. Similarly to reduce confinement between rows, delay intervals should exceed the expected burden movement time. The Hybrid Stress Blasting Model (HSBM) is a modelling framework that dynamically links an ideal and non-ideal explosives detonation code to a geomechanical rock model. This blast simulation tool is aimed at analysing the role played by different explosive formulations in fragmenting and/or damaging various rock types under different degrees of confinement. In the current framework, the rock behaviour under extremely high pressures and loading rates is calibrated from shock tests and the role of the explosive in fracture growth is accounted for and assumes a compressible fluid flowing through the explicit fracture network. The model is being developed as part of an international collaborative research project funded by a consortium of companies comprised of explosive and equipment suppliers and major mining houses. As part of the development and validation of the HSBM project, data from literature addressing the kinematics of the rock mass (ie burden displacement, face velocities and response times) has been collated and used to evaluate the current version of the code. A series of numerical experiments have been conducted with the view to: evaluate the response of the rock mass to changes in burden distance given by the impact of both stress waves and radial gas flow pressure;compare the modelling outcomes in terms of displacement, response time and face velocities to documented field observations; andcompare stress induced and stress/gas induced modes in terms of burden displacement outcomes. Results from these experiments have shown that in its current form the model is able to capture the trends observed and measured in practice. This is with respect to the simulation of burden displacement, response time and average face velocities for different geometries and charging conditions. The experiments have served as consistency checks which form part of an ongoing and comprehensive evaluation and validation of the HSBM code also aimed at addressing some of its current limitations.

Jan 1, 2007

The conventional approach to the disposal of fine coal mine tailings, which involves piping the tailings as an aqueous slurry to a storage where they remain in the form of a permanent wet deposit, is becoming unacceptable. This approach is a legacy of a "contain and forget" mentality, which has economic advantages only in the short term. In the longer term, wet tailings deposits occupy large areas of land and present extreme rehabilitation difficulties. Alternative tailings disposal systems, which are sustainable and which facilitate rehabilitation, are required. The possible alternatives include the mechanical dewatering of fine tailings prior to disposal in combination with coarse reject, tailings disposal into spoil pile valleys, and the combined pumping to disposal of tailings and coarse reject. The most appropriate choice of fine tailings disposal strategy will vary from mine site to mine site. The chosen strategy should be optimised to meet increasingly stringent environmental requirements, within the constraints imposed by each mine. The alternative approaches represent significant departures from past practices, and require considerable industry driven research and development before they can be adopted with confidence. All three alternatives involve mixing of the fine tailings and coarse waste streams, aimed at creating a mixture of reasonable engineering properties. Understanding the engineering behaviour of such mixtures is central to the success of these alternative disposal strategies.

Jan 1, 1991

Mining had a very considerable effect on the country's development. The visual evidence remaining is an integral part of New Zealand history. Early mining for manganese and copper in the 1840s was succeeded by alluvial gold rushes. These gave way to hard rock extraction, hydraulic elevation and dredging. Coal mining dating from the 1850s was fairly widespread. Other minerals were obtained on a small scale. Manufacture of mining' machinery stimulated industrial engineering enterprises. Schools of mines played a significant part in advancing technical skills and several remain as museums. Surviving mine structures and site relics are part of the industrial heritage signifying the technological and economic development of a small isolated nation. Some of these are described. Identification, recording and preservation where practicable is advocated.

Jan 1, 1990

The purpose of this paper is to present a detailed account of the development of the Blasthole Diamond Drilling method of stoping now used at the property of Big Bell Mines Limited, in Western Australia.The ore body is one of the large low grade gold deposits of this State, being a continuous lens 1,850 ft. long and ranging in width from 15 ft. at the ends to 120 ft. at the widest part, the average width being 59 ft. It was first worked in 1913 by a local syndicate, and up to 1924, when operations ceased, 64,448 tons of 3.4 dwt. ore were mined from a shallow open cut. Between 1928 and 1932, 15 deep diamond drill holes were put down to test the ore body at vertical depths ranging from 100 to 700 ft. On the information gained from these drill holes, Premier Gold Mining Co. Ltd. began underground explQration. A level was driven at a depth of 253 ft. and crosscuts put out to the full width of the, orebody at intervals of 100 ft. along the strike, all ore broken being put through a sampling plant. On completion of this sampling,' Big Bell Mines Limited was formed as the operating company, and a plant with a capacity of 1,000 long tons per day was erected and mining and milling operations were commenced in 1937. Ore was first mined from glory hole stopes, 65 ft. long, separated by 35 ft. pillars, by benching using conventional steel with changes up to 20 ft., all broken ore being hauled to the main shaft on the...

Jan 1, 1948

By V K. Singh, G Sural

The problem of spontaneous heating/fire is very common in coal mines all over the world. The coal industry faces many problems day by day due to the occurrence of spontaneous heating in the open pit coal mines. Presently, about 70 per cent of total coal production in Indian mines is being carried out by open pit mining. Fire in coal, particularly in open pit mines not only causes irreparable loss of natural wealth but also damages the surface structures and pollutes the environment. It is well known that 75 per cent of the fires occur due to the spontaneous combustion of coal. Spontaneous heating is a very common occurrence in coal mines and is a major factor contributing to mine fire. The liability of coal to spontaneous heating causes many serious problems before, during and after mining. In opencast mines, coal immediately oxidises and catches fire due to the intrinsic characteristics of coal, such as low rank, high moisture, high volatile matter, presence of sulfur in the form of pyrites, low crossing point temperature (CPT) and ignition point temperature (IPT) value and less incubation period. In opencast mines, when the coal benches are left idle for a longer time, heat accumulation takes place in favourable conditions and sometimes leads to fire. The purpose of this paper is to present the different successful case studies regarding the safety management of open pit coal mines from occurrences of spontaneous heating/fire.

Jan 1, 2007