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By S Barrow, D Kent

Controlling the access of equipment, and people, has become more critical over the last few years for improving productivity and to meet safety responsibilities imposed by legislated obligations to have safety management systems. Hence Mine Site Technologies (MST) has spent the last three years completing the development of the tagging system to meet the mining industryÆs requirements, particularly streamlining access control. The basic tagging system tracks active Tags carried by personnel, or attached to vehicles and equipment, within underground zones. These Tags are detected (read) by Beacons placed strategically throughout the mine. As a Tag, or Tags, go past a Beacon they are read and the information transmitted back to the main database PC. This allows the current whereabouts of personnel and equipment to be known, as well as the history of their movements. The objectives of implementing the TRACKER Tagging System at Oaky No 1 Coal Mine were to: maintain a count of personnel inbye a particular point, and can alarm when a pre-set number is reached (eg the limit imposed by availability of SCSRÆs, etc); maintain a count of vehicles (and vehicle type) inbye a point, and can alarm if when a pre-set number is reached (eg when rated diesel units exceeds the limit for the ventilation present in that zone); manage the vehicle fleet, by keeping track of various vehicles underground better control and dispatch management of the equipment is achieved; keep track of equipment, knowing the location of equipment (such as forks, baskets, pumps, fans, etc) where last used or stored will minimise the risk of losing gear and assist in keeping inventory to a minimum; and locate personnel in emergency situations, by placing read Beacons throughout the mine the location of all personnel can be known in real time so that in the event of an emergency, their withdrawal can be monitored.

Jan 1, 2005

'Nothing happens until something is sold' This statement is not original - it is a necessary orientation for marketing industrial minerals. The most important single philosophy of marketing is that it recognises the consumer as the starting point. Production orientation is concerned with producing products that the customer might buy. Market orientation is concerned with finding the needs of the customer and how they can be satisfied. The difference between the two approaches can be recognised in company structures but the most tangible difference is in the approach by a company to selling and development. In other words, it is the market that decides what can be done with a mineral. The markets requirements dictate what mineral, what grade and what price will be paid. Therefore it follows that when pricing a product we should avoid taking the basic cost and arriving at a final selling price through a series of standard markups (unless government insists on it). We should start with the price the market can stand and work backwards to find out whether you have a profitable product or one that will fail because it is too dear. Naturally a thorough understanding of production costs is necessary particularly when marginal markets are concerned.

Jan 1, 1978

By M Araos, I Onederra

A novel explosive formulation that substitutes the use of ammonium nitrate (AN) with hydrogen peroxide (HP) as the main oxidising agent has been developed and tested as part of an Australian Coal Industry Research Program (ACARP) project. The main objective was to provide a step-change solution that has the potential to completely eliminate NOx fumes in blasting. The development of this HP/fuel-based explosive started with a comprehensive detonation characterisation program, consisting of unconfined velocity of detonation (VOD) measurements of samples at different diameters, densities and void sensitisation techniques. VOD results showed that the HP/fuel-based explosive mixtures behaved similarly to non-ideal commercial explosives; in that way mixtures could be tailored to achieve specific detonation performance targets. The next stage of testing in this development involved preliminary confined tests to evaluate the rock breakage potential of the HP/fuel-based explosive mixtures. Fully instrumented single-hole tests were conducted in a limestone quarry. Results from these preliminary trials confirmed the rock breakage performance of HP/fuel-based explosive mixtures. The confined VOD measured in one of the tests was 5100 m/s in a 102 mm diameter blasthole at a density of 0.96 g/ml. The corresponding borehole pressure measurement of this HP charge was 2.61 GPa with a detonation temperature of 2921°C. Based on near-field accelerations, both HP and ANFO charges displayed similar attenuation characteristics in the test conditions. Post-blast observations indicated that the breakage performance of the HP mixtures clearly reflected the in-hole detonation performance measurements obtained, confirming the ability of these explosive mixtures to both fragment and effectively displace the rock mass under evaluation. Further research work continues with the future commissioning of a prototype mixing and delivery unit, the successful completion and analysis of data from multiple-hole trials, and further characterisation work associated with product stability, reliability and performance under different geotechnical conditions.CITATION:Onederra, I and Araos, M, 2015. Detonation and breakage performance of a hydrogen peroxide-based explosive formulation, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 565–574 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By R R. J McAllister, K Moffat, S Heyenga

This paper examines the statistical relationship between quality of life indicators and the gross value of mineral production from Australian regions. We used quality of life indicators, aggregated for 673 local government areas, of household income, housing affordability, access to communication services, educational attainment, life expectancy and unemployment. We find no evidence of systematic negative associations between quality of life and the gross value of minerals production. Instead, mining activity has a positive impact on incomes, housing affordability and communication access across regional and remote Australia. Whilst we do not establish causality between mining activity and quality of life, our analysis prompts a rethink of the æresource curseÆ as it applies within a single country. Nevertheless, our findings are tempered by extensive anecdotal and empirical evidence of the negative social impacts of mining on specific demographic sectors, localities, families of fly-in, fly-out mining operations and individuals. This contrast may be a scale issue, with the regional benefits of mineral wealth masking highly-localised inequalities and disadvantage. We suggest that there is a need to better understand these impacts and, more importantly, the types of policy mechanisms government and industry can adopt to mitigate or avoid them.

Jan 1, 2009

Effect of Anionic Surfactant on Silica Particle Attachment at the Oil-Water Interface Controlling particle attachment is crucial where powdered solids come into contact with oil and water. Particles are trapped in a deep energy well at the oil-water interface, stabilising emulsions. Here it is shown that adding anionic surfactant causes dramatic changes to the bulk and interfacial structure of silica particle-stabilised oil-in-water emulsions. Exposing particle-stabilised drops to surfactant concentrations above the critical micelle concentration enhances the rate and extent of creaming and flocculation. Mixing particle-stabilised emulsions with surfactant solutions causes drop fragmentation. As the surfactant concentration increases, the average drop size decreases and particles are displaced from the interface during the mixing process.

Sep 13, 2010

By D J. Corp

The Halmahera Contract of Work is a sixth generation contract held 82.5 per cent by Newcrest Mining Limited and 17.5 per cent by PT Aneka Tambang and takes in the Gosowong Project area. In 1991 Newcrest Mining Limited established a small exploration office in Jakarta and proceeded to seek exploration opportunities. The Halmahera area was identified as a substantial prospective ground position in a relatively unexplored area. In late-1991 Newcrest Mining Limited and PT Aneka Tambang agreed to explore in Halmahera. Initial field work commenced in July 1992. A vigorous ground reconnaissance programme led to the discovery of the Gosowong deposit a little over 12 months later in September 1993. In April 1997 the Contract of Work was approved covering much of the island of Halmahera. Between September 1997 and November 1998 activities were directed principally towards obtaining the necessary permits required to commence construction activities. Some particularly ambitious targets were set for achieving this outcome. An aggressive construction programme commenced in late-1998. Construction took place during a period of unseasonally high rainfall, which in itself presented additional challenges to the construction team. A key milestone for the project was achieved on 1 July 1999 when wet commissioning of the process plant commenced. Construction of the Gosowong Mine was achieved on time and within budget. A period of some six years elapsed from the initial discovery of the Gosowong deposit to the time of the first gold pour. Much of the permitting, construction and commissioning activity took place between September 1997 and July 1999. This coincided with a period of significant social, economic and political upheaval in Indonesia. During the construction period a high level of importance was placed on the structured recruitment and training of local people, as well as fostering appropriate community and local business development programmes in the communities nearby the project. Emphasis was also placed on environmental management with detailed long-term planning and progressive rehabilitation commencing during the construction phase. The permitting and subsequent development of the Gosowong Project has demonstrated that even during the difficult times, with commitment, it is possible for mining and exploration companies to conduct business in Indonesia.

Jan 1, 1999

By D Hill

In the Ngakuru area zeolite deposits occur in late Quaternary lacustrine vitric tuffs of the Ngakuru Formation and two of the deposits are being mined. The Ngakuru Formation overlies the Ohakuri Ignimbrite dated at c. 240 ka, and is overlain by younger alluvial sands and gravels. Individual zeolite deposits contain 50 - 80 per cent zeolite over a thickness of up to 45 m in thinly stratified vitric tuffs and are localised along NE-trending normal faults. Glass shards in the tuffs are replaced by the silica-rich zeolites mordenite and clinoptilolite. Amorphous silica (opal A), opal-CT, Kfeldspar and smectite are also present. The zeolites and other minerals are very fine grained (<10 8m), with open meshes of crystals that result in high porosities (52 - 70 per cent) in mordenite-rich tuffs. Zeolitic tuff samples typically have cation exchange capacities of 80 to 110 meq/100 g and internal surface areas of 25 - 58 m2/g, which combine to give high liquid and odour absorption capacities. The first zeolite deposit (Mangatete) was found in 1992, and this and the Twist Road deposit are worked by quarry benching into the side of hills. The zeolitic tuffs are dried and crushed to produce a variety of products including adsorbents for soaking up oil/chemical spills and animal wastes, animal feed supplements, water treatment, and sports turf and slow release fertiliser. The Ngakuru zeolite deposits formed at shallow depth (<100 m) along fault zones from reaction of glass-rich tuff beds with groundwater-diluted geothermal water during the late Quaternary, and are as young as 8500 yr BP from 14C dating of plant material in sinter associated with the Mangatete deposit.

Jan 1, 2005

Platinum-group minerals (PGM) are recorded from a number of localities along theWaiau River, western Southland, and the south coast of the South Island, New Zealand. At each locality, small amounts of PGMs were recovered as by-products of historical gold mining operations. During the period 1890-1950 an estimated 1000-2000 oz. of æplatinumÆ were recovered from the region, the only area within New Zealand where PGM have been commercially exploited. The PGM suite of southern New Zealand consists of Pt-Fe alloys, IPGE (iridium subgroup, platinum-group elements) alloys, sperrylite (PtAs2), cooperite (PtS) and braggite ((Pt,Pd)S). The composition of Pt-Fe alloy exhibits considerable variation and two compositional populations are recognised. Some Pt-Fe alloy grains are chemically zoned. Iridium is the most abundant IPGE alloy phase and often contains considerable Pt, in contrast to osmium and ruthenium alloys. Cooperite and braggite grains are characterised by extremely low concentrations of Ni.   Exsolution of osmium and iridium from Pt-Fe alloy and Pt-Fe alloy from iridium is observed Several PGM host mineral inclusions which vary from single to poly-phase, display rounded to equant outlines and range in diameter from greater than 100 ¦m to less than 5 ¦m. Olivine and Ni-sulphide inclusions are only present within IPGE alloys. Pt-Fe alloy, cooperite, braggite and sperrylite host Cu-Fe sulphides, a wide variety of PGM, clinopyroxene, amphibole, magnetite and plagioclase within inclusions. Sperrylite also hosts Pd bismuthiotellurides, gold and several potassium-rich silicate phases. Similarities in inclusion phases and mineral chemistry from several localities suggest that the PGM are derived from a single (as yet unidentified), probably calc-alkaline magmatic source. This source is situated somewhere along the margins of the western Southland sedimentary basin where PGM liberated by erosion are transported down the Waiau River and dispersed eastwards along the coast by strong longshore currents.

Jan 1, 1995

By M Berry

Consider these four questions:What is the definition of life-of-mine?When should life-of-mine planning seriously commence?When can life-of-mine planning seriously commence?What is the key input to effective life-of-mine planning?Whilst there is likely to be general consensus on the answers to the first three questions, the answer to the fourth question is open to debate. This author argues that understanding and managing risks and opportunities associated with geological uncertainty is the key input to effective life-of-mine planning, at all stages in the life cycle of a mining project.CITATION:Berry, M, ?2014. Effective life-of-mine planning by understanding and managing risks and opportunities associated with geological uncertainty, in Proceedings Life-of-Mine 2014 , pp 183–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

Results of flotation tests on lead-zinc ore from Broken Hill, N.S.W., confirmed that flotation at pH 9 in the presence of cement gave poorer metallurgical results than flotation at pH 7. Additions of 2 kg/tonne wood raspings [e.g. blackbutt (Eucalyptus pilularis), blue gum (E. saligna), brushbox (Tristania conferta), or turpentine gum (Syncarpia laurifolia)l had little effect at pH 7 but greatly accentuated the deleterious effect of cement at pH 9. This was shown to be caused by e:xtractives (e.g. polyphenols and carbohydrate materials) derived from woods at pH 9. The proportion of extractives, as shown by DV absorbance spectra, increased with increase of pH and was affected by various salts.Additions of 1 kg/tonne Al2(S04)3.16H20 when cement or cement and wood were present showed that metallurgical results obtained by flotation were then very simHar to those in the absence of cement or wood or both. This was ascribed to lower pH values in the presence of aluminium sulphate and possibly to specific chemical effects.Additions of aluminium sulphate appear to offer an economic solution to the problem of treatment of ores contaminated with cemented fill at Broken Hill.

Jan 1, 1974

By M Thompson, N Vines, Z Hearne, S Lam, G A. Gomes-Sebastiaõ, D van der Spuy

Construction and commissioning of the Nova Copper-Nickel project of Independence Group was completed in late 2016. The plant is in the Fraser Range of Western Australia, about 120km east of Norseman and produces separate Copper and Nickel concentrates. Since the early feasibility phases of the project, the importance of automation and control was recognised and planned for to ensure the plant performance meets the design expectations. The site is well equipped with common as well as advanced instrumentation. It currently boasts the largest number of Blue Cube MQi (mineral quantifier inline) slurry grade analysers on a single plant worldwide. It was also decided that 25 Blue Cube TempoTracks would be installed on the flotation cells. The TempoTracks provide information on froth height and velocity, hence giving continuous, quantitative measurements of the froth that is pulled off each cell, rather than relying on infrequent, subjective visual inspections.The Nova concentrator consists of a differential flotation circuit whereby copper bearing mineral are selectively floated prior to nickel flotation. It is imperative that losses of copper to the nickel circuit, and vice versa, are minimised. The plant metallurgical team and Process IQ collaborated to develop and implement the advanced control strategy for the plant. This paper focusses on the optimisation of the copper concentrate that is pulled off the copper rougher and scavengers. This strategy was made possible by the additional measurements listed above. The control optimisation of the copper rougher and copper rougher scavenger circuit was implemented during August 2017 on the StarCSTM advanced control platform. It continuously optimises the level and air setpoints. The control philosophy incorporates several notable techniques which include: a variable mass pull target that is a function of the quantity and grade of material entering the circuit, integrated compensation to prevent inventory build-up in cells, balancing of the froth velocity over the lip of each cell to adaptive, modular system usage and advanced error handling. CITATION:Gomes-Sebastiaõ, G A, Hearne, Z, Lam, S, van der Spuy, D, Thompson, M and Vines, N, 2018. Nova copper-nickel project optimisation of the copper rougher-scavenger circuit through advanced measurement and control, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 77–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

From time to time failures occur in structures made of lead, and the failure may be due to corrosion involving a definite thinning of the lead sheet, or it may be of such a nature that cracks develop and the lead appears to disintegrate. The idea of lead cracking will at once suggest something abnormal, for common experience shows that this metal is very ductile and will withstand considerable bending without showing any sign of fracture. Cracking, on the other hand, is usually associated with brittleness.Fig. 1 is a natural-size photograph of a cracked sheet of lead. Prior to photographing, the sheet was etched byimmersion in a solution of ammonium molybdate. Several characteristics of this crack will be evident. First of all it is distinctly a zigzag crack, and secondly it passes between, rather than through, certain well-defined areas which appear bright in the photograph. This is particularly noticeable at the lower end where the crack appears to terminate.

Jan 1, 1932

By E Garbarino, P Molina, V Badino

Given the ever increasing quantity of construction and demolition waste (C&DW), one of the most challenging issues presently facing policymakers and public administrators in Italy concerns how to organise and manage collection and recycling and to understand whether and to what extent recycled aggregate can complement natural building aggregates in a sustainable supply mix (SSM). The paper presents the results of a research aimed at analysing energy and environmental implications of the C&DW recycling chain in the administrative territory of Provincia di Torino in northern Italy. In respect of a population of about 2.25 million inhabitants, the annual production of C&DW in the area under study is 1.8 Mt. A combined geographical information system (GIS) and Life Cycle Assessment (LCA) model was developed, paying attention to the geographical location, land use, transportation network and avoided landfill: crucial issues for sustainable planning and management. Around 90 recycling plants were classified according to the size, typology (stationary, semi-mobile and mobile) and physical- mechanical characteristics of the recycled aggregate. Under different assumptions relevant to the delivery distance, and considering the typology and grade of recycled aggregate, as well as local availability of natural aggregates, it was possible to evaluate the geographical coverage of aggregates demand and to use LCA in order to identify and quantify energy and environmental indicators.

Jan 1, 2009

By R Miller

The enrichment of magnetite to haematite and haematite-goethite leads to a coincident magnetic low and gravity high within the banded iron formation. Palaeochannel deposits of pisolitic limonite can be expected to provide a relative magnetic high and gravity low in a sinuous geometry. Detrital iron deposits of conglomerate, scree or ‘canga’ might have indistinct magnetic response but will usually have a relative gravity high.These signatures provide clear discriminators detectable by a joint gravity and magnetic survey.The combination of airborne gravity gradiometry and magnetometry is particularly powerful in detecting and discriminating targets, as well as mapping lithologies and structure, across a wide variety of iron ore deposit styles. It provides detection capabilities in a platform capable of rapid, complete coverage with minimal access issues. This approach has been used in FALCON™ airborne surveys for iron ore exploration in the Great Lakes, USA; the Middleback Ranges, South Australia; and the Hamersley Basin, Western Australia.The complex magnetic properties of iron formations (particularly remanence, anisotropy and depth of weathering) prevent this approach from being simple. The use of vector residual magnetic intensity (VRMI), calculated from the measured total magnetic intensity (TMI), assists by reducing the complexity due to the different directions of the remanent and induced magnetic fields.Estimations of the density to magnetisation ratio via the pseudo-lithology calculated from the VRMI and gravity gradients provide a useful method of capturing the discriminatory power of joint magnetic and gravity gradient data.

Jul 11, 2011

By R Thompson, J Miedecke, D Handel, E Tomicek, D Tulloch

"The Mine Haul Road Optimisation Alliance (HROA) is a unique Australian industry–academia collaboration that has been developed to support mine haul road operators. The alliance integrates industry, end-user service providers and academic research expertise in mine haul road design, construction and operation to identify, quantify, implement and monitor the various equipment, materials and road management strategies and solutions required to drive haulage productivity improvements.Initially, a broad overview of the university–industry collaborative landscape is presented, following which the current situation in the Australian mining sector is reviewed both nationally, and on a country-wide basis internationally. This insight places into context the opportunity that strategic collaborations present, to drive productivity and efficiency in mining, while also delivering innovative technology solutions.Following an overview of the HROA collaborative structure, aims and objectives, it is shown how academia and industry collaborations can deliver a more robust and needs-driven solution to mine haul road design, performance and management, especially where integrated solutions are needed. Critically in this approach, implementation and monitoring data provided by industry and service providers alike form the foundation on which to develop research knowledge and innovation that is more responsive to the end-user requirements, typically represented by ‘early goals’ and practical, implementable solutions.The paper concludes with examples of how the alliance collaborations work in practice to deliver focused mine haul road research outcomes, together with the mechanisms used to ensure industry needs are met through end-user driven research solutions for enhanced operational performance.Citation:Handel, D, Miedecke, J, Thompson, R, Tomicek, E and Tulloch, D, 2016. Driving Haulage Productivity Improvements through Industry–Academia Collaboration, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 243–252 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By D McClelland, R Whittering

Minerals and Metals Group (MMG) subsidiary Lane Xang Minerals Ltd operates a single site copper and gold mine near Sepon in Lao PDR. Gold production commenced in 2002 and first cathode copper production was in March 2006. Plant throughputs for gold and copper are currently 2.5 Mt/yr and 1.4 Mt/yr respectively; use of a second tailings dam has commenced accordingly. Although the increased catchment area creates opportunities for more storage to reduce demand on other water sources, especially during the dry season, it also creates greater requirements for water treatment capacity.The water balance for mining operations in a tropical monsoon environment with dry winters presents on going management challenges. A successful mining operation depends on a careful balance of water inputs and outputs. The challenge prior to every wet season is having enough storage capacity to absorb potential rainfall. Plant operation in the dry season benefits from water captured and stored from the wet season which reduces the dependence on river water. Release of excess water to the environment is necessary to cope with the overall positive water balance and depends on suitable and effective treatment of water in accordance with the environmental guidelines.Ausenco has recently built and commissioned a second water treatment plant at the Sepon Copper Plant to process tailings decant water.  The objective of the second Sepon water treatment facility is to increase the site water discharge capacity to maintain the water balance and reduce the dependence on river water.  Decant water treatment is required to precipitate the contained heavy metals prior to discharging to surrounding wetlands.  The main metal that needs to be removed from the site water to meet discharge water quality requirements is manganese, as heavy metals are already precipitated to required levels in neutralisation before the tailings are sent to the storage facilities. A site layout provision for removal of manganese to produce a saleable carbonate precipitate is incorporated in the polishing plant design (future installation).

Jan 1, 2009

By D Giles, A C. Bailey

In the first 20 years of the 21st century, just over 20 per cent of Australian mineral exploration expenditure was dedicated to iron ore, totalling >A$8 billion and >30 million metres of drilling (Australian Bureau of Statistics, 2021). Improvements in the cost, efficiency, safety, reliability and data quality of drilling have the potential to deliver significant productivity improvements, increasing the probability of discovery and reducing the time from discovery to mining. Currently in its third year of research, Mineral Exploration Cooperative Research Centre (MinEx CRC) is focused on a new set of exploration tools and new ways to deploy those tools which recognise the fundamental importance of collecting quantity and quality data from the subsurface, to enable exploration success for all minerals, including iron ore. MinEx CRC is focused on developing more productive, safer and environmentally friendly drilling methods to discover and drill-out deposits. This includes pioneering work on Coil Tube (CT) drilling technology and innovations in Diamond and Reverse Circulation (RC) drilling techniques aimed at improved drilling optimisation and automation. In parallel, MinEx is developing new technologies for collecting data whilst drilling. This is being undertaken in four separate industry-led projects utilising geophysical, seismic, downhole analytical and 3-dimensional (3D) modelling improvements. A National Drilling Initiative (NDI) is also underway, with two drilling programs completed in 2020. The NDI is a world-first collaboration of Geological Surveys, researchers and industry, which undertakes drilling in under-explored areas of potential mineral wealth in Australia and provides a test-bed for new mineral exploration technologies.

Nov 8, 2021

By M Warnken

Major cities are not only the focal point for AustralianÆs work, leisure and homes, they also are the focal point for the flow of resources into the built environment, motor cars and transportation and urban consumables. The steady increases in æstockÆ and waste generation, in line with GDP growth, means that cities will become the mine sites of the future if the inherent value is recovered from these materials at end of life. The urban waste stream can be characterised as containing approximately nine per cent hydrocarbon-based materials; 57 per cent biomass-based material; 28 per cent fully mineralised materials that are inert, five per cent metals and less than one per cent of problematic materials that are potentially hazardous and toxic. In order to convert these wastes into value added inputs into the economy, a number of technological interventions are required. These æurban waste mining techniquesÆ revolve around source separation and material streaming. One issue that needs to be overcome when determining which mining technique to implement, is identifying the option that will deliver optimal value, both from a financial and a sustainability perspective. The difference between embodied energy and calorific value is a case in point. Highest net resource value (HNRV) is a concept that can assist in choosing between different resource recovery options. The assessment can be done at a strategic level, or can be used to work out material specific issues. For example, used tyres can be recovered for their energy content at an approximate cost of $120 per tonne, whereas mechanical processing of used tyres can deliver a net benefit of $192.

Jan 1, 2006

A Sun SPARCstation based computer network is utilised to store and process mining data at the Macraes Gold Mine. Techbase and Medsystem software running on the SunOS unix platform is used to generate all data plans, sections and other design data required on a daily basis to run the mining operation. The Macraes site is regarded as a fully integrated site where all geological, grade control, exploration, orebody modelling, resource estimation, pit optimisation and mine design is undertaken on site by MacraesÆ professional staff. The methodologies employed are regarded as æstate-of-the-artÆ where computerisation allows the rapid and efficient evaluation of large quantities of mining data by a handful of professional personnel. Ore reserves are estimated using an indicator kriging method and roving cone pit optimisation, a complex process that would not have been achievable in pre-computing days.

Jan 1, 1992

By L Barrere, J P. Sykes, A Trench, R S. Davies

Western Australia (WA), alongside Brazil, has remained at the forefront of the global seaborne traded iron ore market for over 40 years. Despite this apparent stability and strong market position, WA continues to face strong external international supply-side competition, mainly from Brazil, but also periodically from often marginal, non-traditional sources of iron ore. Additionally, WA iron ore supply has undergone significant decadal change internally, both of an evolutionary (brownfields expansion) and revolutionary nature (major new greenfields projects). Since 2006, a new generation of WA-focused iron ore explorers, developers and producers have emerged.The majors, BHP Billiton and Rio Tinto, have expanded mine production to record levels and the Roy Hill project is now approaching nameplate capacity. Fortescue Metals Group (FMG) is, however, the largest new market entrant of the last decade, delivering upon their vision of becoming the ‘new force in iron ore’. Unlike most of the other new WA market entrants, FMG’s operations are substantive. Most of the other smaller, new WA iron ore miners have struggled during the period of falling prices, though it is worth noting that collectively they have made a material supply-side impact during the price boom – typical of marginal supply. Finally there have been some contributions from new magnetite projects, however, the delivery and economics of these projects have not met expectations.In this paper, we touch briefly upon the key global market changes of the last decade, namely China-driven demand growth and the changes to the pricing mechanisms for iron ores – before reviewing the rise in WA iron ore supply in response to these markets. We finish by focusing on the most significant WA-focused supply-side development of the last decade, the rise of FMG as a major new supplier and the strategic situation that facilitated its rise. The unprecedented China-led rise in iron ore prices felled many traditional barriers to market entry into an oligopolistic industry, allowing many new market entrants (in WA and around the world). However, the downturn in iron ore prices resurrected these barriers to entry, with only FMG (thus far) breaking the entry barrier with significant scale. Difficult corporate decisions have been forced upon the smaller WA iron ore miners who, in some cases, will now struggle to further expand, or indeed continue to operate in the longer run.The changes that have taken place over the last decade of WA iron ore production hold insights for other emergent mineral commodity exports from the state. Successful market entry, even when industry barriers are high, does not always require an immediate low-cost production assumption alongside a strong balance sheet. FMG could see a new market, within an established commodity market, target an appropriate and new product at it, overcome temporarily-felled barriers to entry in infrastructure and finance, then innovate and aggressively cut costs ensuring it was behind the barriers to entry when they rose again after the price boom.CITATION:Barrere, L, Trench, A, Sykes, J P and Davies, R S, 2017. New generation Western Australian iron ore – strategic insights far beyond the Pilbara?, in Proceedings Iron Ore 2017, pp 375–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017