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By Mez W

the German ruining industry uses different residues for hackfilling and stowing. A hydraulic pipe conveying technology for these materials has shown advantages for the transportation into the mine. Pipeline conveying systems are able to bridge long distances, they save room within the underground workings and they save staff and costs. Absolutely necessary for successful use of the hydraulic conveying technology is the knowledge about the unusual non-Newtonian flow properties of solid/liquid mixtures like pastes and slurries. The flow resistance of these materials cannot be described easily by one viscosity. Owing to a yield point and a pseudo-plastic behaviour the viscosity changes with the shear rate and with the streaming velocity inside the pipe. Also these flow behaviours depend very sensitively on the liquid/solid-ratio, often so dramatically that gravimetric or volumetric dosing equipment is not in a position to control the production of backfill pastes. Quality changes of the solid raw materials (particle size distribution, density, mineralogical composition) lead to additional difficulties. The first experiences with hydraulic backfilling plants were troubled by plugged pipes. a bad backfill quality caused by unnecessarily high water content and high costs for chemical binders to solidify the backfill. The installation of viscosity controlled paste production leads to success with the hydraulic backfill technology. A development of the l)MT, a bypass pipe-viscometer, has been the key technology. The system is able to analyse on-line, difficult, sticky and abrasive substances and determine their non-Newtonian flow properties. Because the system measures real physical values it is in a position to pre-calculate process relevant parameters like the pressure drop of the backfilling paste in the conveying pipeline. Newer types of the viscometer system also measure the slurry density and calculate its composition. These systems have proven a success controlling backfill paste production plants. They offer it secure prevention of pipeline plugging and a production of high quality backfill pastes with a water content as low as possible.

Jan 1, 1998

By D MacKenzie

The Rise & Shine Shear Zone is a shallow-dipping Cretaceous late metamorphic shear zone formed in a compressional environment. The Shotover mineralised system is dominated by normal faults with well-defined vein systems that cut across Miocene schist folds and faults related to the inception of the Alpine Fault. Despite the geological differences between these mineralisation systems, they share many common features of hydrothermal alteration that have resulted in disseminated gold in altered sheared schist. The most distinctive feature of both systems is the abundant ankeritic carbonate that has formed from decomposition of metamorphic chlorite. Excess iron from this alteration reaction combined with hydrothermal sulphur to form sulphides that host the disseminated gold. The chlorite decomposition reaction was reversed in the latter stages of both mineralisation systems, and this was accompanied by further gold emplacement in the Rise & Shine system.   Both alteration systems involved initial decomposition of metamorphic albite, followed by deposition of albite as a vein mineral in the latter stages. The fluid flow that yielded the disseminated gold was controlled by microshears that pervade host schists, in strong contrast to many Otago Schist vein systems where host rock alteration is absent. The ankeritic alteration in the Shotover and Rise & Shine mineralised systems has increased the volume of mineralised rock, and may have made suitable targets for large-tonnage, low grade gold deposits.

Jan 1, 2007

By D Wei

Large tonnages of low-grade haematite ores need to be treated every day in China. One of the mineralogical characteristics of these haematite ores is that the grain size of haematite is smaller than that of quartz and is not uniform in the ores. Therefore, a flow sheet consisting of gravity concentration, low-intensity magnetic separation, high-intensity magnetic separation and reverse flotation is mainly used to separate haematite ores in China, to obtain acceptable beneficiation performance and reduce the operating costs. Nowadays, whether based on mineral processing practice or theoretical analysis, the results show that the application of the above-mentioned flow sheet is able to take full advantage of these mineral processing methods and achieves satisfactory benefi ciation of haematite ores. For example, when the iron grade of the haematite ore is about 29 per cent Fe, a concentrate assaying 68 per cent Fe can be obtained and the recovery of iron is over 80 per cent. In the future, research work on the beneficiation of haematite ores should focus on investigating the most feasible particle size for gravity concentration circuit feed so that the operating costs can be reduced and ultimately the separation performance can be improved.

Jul 11, 2011

By S Thacker, M Noakes

The Newmont Tanami Operations (NTO), formerly the Granites Gold Mine, commenced operation in the mid-1980s with tailings deposition evolving over the past three decades as production has increased and the operation has expanded. Paddock-style tailings storage facilities (TSFs) and in-pit tailings deposition have fulfilled the tailings requirements for NTO over its lifetime with the technical specifications of these facilities improving over time in line with the positive development of standards, guidelines and best practice.This paper reviews the options for tailings storage facilities at NTO and the many considerations that have been analysed and deliberated upon before settling on specific TSF types and designs. It also explains the operating philosophies of the tailings deposition and how the facilities have always strongly maintained the optimum capture and retrieval of water. The current TSF design and criteria is presented, along with the introduction of dry tails harvesting for use in paste production as a backfill product for the underground mine. Tailings deposition and recovery remains a critical function of the Granites process to ensure long-term operation and gold production.CITATION:Thacker, S and Noakes, M, 2015. Newmont Tanami Operations – tailings storage facilities, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 305–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By C J. Carr

The Ernest Henry Mine (EHM) is owned and operated by Xstrata Copper and is located in North-West Queensland, Australia. The mine is currently undergoing a transition from an 11 Mtpa open pit mine to a large sublevel cave underground mine producing 6 Mtpa. Due to a number of factors, including geometry of the pit and crusher depth, the decision has been taken to develop a hoisting shaft rather than inclined conveyors.During the feasibility study the strip and line shaft sinking methodology was preferred over blind sinking due to scheduling opportunities and interactions with level development. Other methods of sinking considered included large-diameter raise boring, which was rejected due to concerns relating to centreline accuracy. The strip and line decision was reviewed during the tender process where better than anticipated blind sink advance rates and costs were presented. This in turn enabled the higher cost of the blind sinking method to be justified by a combination of reduced risks including schedule and ground water management. This paper discusses the pros and cons of both strip and line and blind sinking methodologies in the Ernest Henry context including sinking rates and total schedule impacts of the two methods, the key risks associated with each method, cost implications of blind sinking and safety implications of the work methods in general. The paper then concludes with the reasoning behind the decision to change to blind sinking for the EHM shaft.

Mar 21, 2011

The Gympie Goldfield was the sixth largest producer of gold in historic terms in Australia. The Joint Venture Agreement between BHP Gold Mines Limited and Devex Limited was signed in January 1987. Since that time, some $20 million have been spent on underground and surface exploration work in the southern portion of the goldfield. The project is of considerable interest as the dewatering, rehabilitation and equipping of an old rectangular timber-lined shaft has been undertaken. The project is located in Gympie, a city of 10,000 people. The issues of dealing with urbanisation and associated environmental aspects are vital to the success of the project. An outline of the project and the geology of the mineralised structures follows:

Jan 1, 1989

By J L. Kerr, J Beyer-Robson, S Vink

Driven by an increasing need for water conservation, coal mine operators in the upper Isaac River catchment have placed significant emphasis upon the reuse of water. This initiative led to an overall increase in the salinity of mine waters. The ionic composition of this water differs from local stream water in that concentrations of sulfate are higher than average stream concentrations by ten per cent, while concentrations of bicarbonate and calcium are lower. When this water is discharged into ephemeral streams in semi-arid environments there is potential for this increased salinity and altered ionic composition to impact upon the ecosystem processes mediated by micro-organisms in river sediments.We have measured nitrification, denitrification and methanogenesis rates in a series of lab experiments using sediments from Isaac River catchment streams and found that salinity affects these processes in different ways and to different degrees. Process rates were shown to differ seasonally between samples taken from the same location and habitat type and also between different habitat types at the same time and location. Both aerobic and anaerobic process rates were higher in surface sediments and it is likely that this activity is associated with surface biofilms. Furthermore, we have shown that the ecosystem processes we have measured are limited by the availability of carbon in the sediments.The management implications of these findings for mine releases into ephemeral streams will be discussed.CITATION:Kerr, J L, Vink, S and Beyer-Robson, J, 2013. The effects of increased salinity on microbially mediated ecosystem processes in ephemeral streams, in Proceedings Water in Mining 2013 , pp 121-134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By A E. Annels, G F. Johansen, B W. Cuffley

Nuggety gold-quartz reefs are characterised by localised, high-grades and in many cases coarse free-gold. Geometrical and grade complexities are often observed. The high-grade regions are generally erratic and have a low continuity; though may make the deposit economic. Viable grades are generally contained within discrete oreshoots, which are surrounded by barren/low-grade material. Drilling is an effective measure of geological continuity, however grade distribution can only be reliably obtained from underground development and bulk sampling. In general terms, only an inferred resource is likely to be estimated from surface drill data alone. Underground development, further drilling and probably bulk sampling will be required to delineate inferred and indicated resources. Closely spaced development with bulk sampling is likely to be the best way to determine a probable reserve. The resource evaluation process must driven by a clear geological model that should attempt to understand the controls to reef geometry and grade distribution. Geological interpretation has traditionally been undertaken in two-dimensions, though computer software is now being used to produce three-dimensional models. Grade interpolation has generally been undertaken using classical methods, typically weighted averages, zone of influence weighting and polygonal/sectional blocks. Tonnages can generally be calculated from diamond drill and development information with a reasonable degree of confidence. Grade is much more difficult to define with confidence because of its highly erratic and discontinuous nature. To account for variability it is recommended that a best estimate be reported within a grade range, as this more accurately reflects the uncertainties involved. Reporting should be undertaken within the framework of the JORC code, but should involve special consideration of grade reliability.

Jan 1, 2000

By M W. A Asad, E Topal, D S. S Sandanayake

Underground mine planning requires an optimal stope layout as a prerequisite for the definition of an optimal production schedule. The procedure to generate an optimal stope layout considers an orebody model and economic parameters as inputs. It evaluates all possible combinations of mining blocks and creates a set of stopes by satisfying the physical mining and geotechnical constraints. Thus, the procedure is computationally complex, and generating a solution to the problem is a challenge. This paper presents an implementation of a new heuristic algorithm that solves the stope layout problem. In two case studies, the algorithm achieves 11.2 per cent and 22.5 per cent superior solutions to the industrially available maximum value neighbourhood approach.CITATION:Sandanayake, D S S, Topal, E and Asad, M W A, 2014. Implementing a new heuristic approach to the underground mine stope layout problem, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 243–248 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J P. Barkas

World demand for iron ore is far from peaking, and the substantial price decline that has captivated commentators since early 2014 is not the result of widespread misreading by producers of the prospects for global market growth. Recent price movements provide little useful insight into the industry’s longer-term fortunes, apart from reminding mining companies that their businesses need to be robust against the volatility and inescapable cyclicality of mineral commodity markets. It is timely to take a strategic view of the history and longer-term prospects for the iron ore industry and of Australia’s place in it.CITATION:Barkas, J P, 2015. Perspectives on the long-term outlook for iron ore, in Proceedings Iron Ore 2015, pp 3–6 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Y Xie, L O’Connor, S C. Dominy

"Sheeted vein gold deposits are characterised by multiple subparallel veins and free milling gold. In situ heterogeneity of mineralisation results in grade and process parameter variability, which will increase project risk. Measured variability is often enhanced by poorly designed sampling and test work protocols. Protocols that are optimised within the framework of the theory of sampling to suit the ore type, together with quality assurance/quality control systems, will reduce variability and provide fit-for-purpose results. The geometallurgical approach requires spatially distributed samples within a deposit to support variability modelling. Diverse attributes from core logging, mineralogical/textural determination and small-scale tests are used to measure variability. This contribution emphasises early stage geometallurgical intervention during project development. It presents a discussion of representative sampling in the context of the theory of sampling. A case study presents a protocol that exemplifies how data can be gained from a well-designed and planned program to support a resource estimate and prefeasibility study.CITATION:Dominy, S C, O’Connor, L and Xie, Y, 2016. Sampling and Test Work Protocol Development for Geometallurgical Characterisation of a Sheeted Vein Gold Deposit, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 97–112 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By P Hayes, D Fadhlurrahman

Molten slags, fluxes and salts play key roles in a wide range of the high temperature industrial process applications, including metals production, refining and recycling, metal manufacturing processes, electrochemical metal production cells, batteries, and efficient heat transfer media. Recognising the importance and significance of fundamental scientific knowledge of these systems, the International MOLTEN Conference series was established to provide a forum to bring together leading academic researchers and industrial engineers to present and discuss the latest scientific ideas and findings, and their application in their respective fields. This article presents an analysis of the research carried out in this field over time in terms of the number of journal articles, fields and slag systems studied and geographical origin of the research.

Jun 19, 2024

By Vestre J, Kure K, Bergqvist I

Existing practical laboratory tests for comparative strength determination of commercial explosives consist of the lead block test, the ballistic mortar test, the bubble test etc. These tests are carried out in material with quite different properties compared to rock. The theoretical performance potentials of commercial explosives are traditionally described by weight-strength (WS). Some explosive producers use the Langefors formula for weight-strength calculation, where also the gas volume is considered. Neither the theoretical nor the practical methods for determination of explosive performance such as the above, give good enough prediction of fragmentation and heave in rock blasting. For these reasons a project was started for the purpose of finding a small scale test method which predicts how different explosive parameters affect fragmentation and heave. Small scale tests were carried out by using 50 cm cubical blocks, mainly of concrete, but a few also of rock. All blocks were blasted in a steel cylinder with a diameter of 1.2 meters. The velocity of detonation was monitored, and the velocity of fragments was derived from their time of arrival at the steel wall, which was registered by accelerometers. After blasting all fragments were screened. The charge diameter was 22 mm and the amount of explosive 78 grammes, resulting in a specific charge of 0.62 kg/m3. Explosive properties such as energy, gas, VOD and density were systematically changed.The results presented in this paper show how fragmentation and heave systematically change when the explosive properties like energy, gas, VOD and density are systematically changed. The results from the small scale tests are compared to full scale tests carried out in tunnel blasting, and during summer 1990 also in bench blasting.

Jan 1, 1990

By S Q. Liu, E Kozan

This paper proposes a new multiresource multistage scheduling problem for optimising the open pit drilling, blasting and excavating operations under equipment capacity constraints. The flow process is analysed based on the real-life data from an Australian iron ore mine site. The objective of the model is to maximise the throughput and minimise the total idle times of equipment at each stage. The following comprehensive mining attributes and constraints have been considered: types of equipment; operating capacities of equipment; ready times of equipment; speeds of equipment; block-sequence-dependent movement times of equipment; equipment-assignment-dependent operation times of blocks; distances between each pair of blocks; due windows of blocks; material properties of blocks; swell factors of blocks; and slope requirements of blocks. It is formulated by mixed integer programming and solved by ILOG-CPLEX optimiser. The proposed model is validated with extensive computational experiments to improve mine production efficiency at the operational level. The model also provides an intelligent decision support tool to account for the availability and usage of equipment units for drilling, blasting and excavating stages.CITATION:Kozan, E and Liu, S Q, 2014. An Open pit multistage mine production scheduling model for drilling, blasting and excavating operations, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 329–334 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By S J. Tear, L D. Queen

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Frieda River Project is located in the north-west of Papua New Guinea. The target commodities for a bulk mining operation are copper and gold associated with a large felsic porphyry system. The project comprises a series of deposits, with the Horse-Ivaal-Trukai (HIT) being the largest. It also includes the adjacent smaller Koki and Ekwai deposits.Previous resource estimates for the HIT were made using 14 separate mineralised domains based on structure, copper grades, lithology and alteration. H&S Consultants (H&SC) has revisited the deposit and concluded that a simpler methodology could be used for resource estimation without using wireframes as hard domain boundaries. This conclusion is based on reviewing all the available geological data combined with geological and resource experience of porphyry deposits.It is generally acknowledged that porphyry deposits form by diffusion of mineralising fluids through the host lithologies, meaning that sharp boundaries are unlikely unless these fluids encounter specific physical or chemical boundaries. It is important to prepare a comprehensive geological model prior to attempting resource estimation as it forms the framework for the estimates; however, not all geological features may be relevant to the distribution of mineralisation and there can be a tendency to overcomplicate the estimation process by using too many domains. Unless a hard boundary can be identified consistently and unequivocally, it is generally better not to use a boundary in that location.H&SC completed unconstrained models with no top-cutting using both a simple flat search ellipse and a steep search ellipse to generate global resource estimates reported within a predetermined pit shell at a 0.2 per cent copper cut-off. Both outcomes are within 10 per cent for the tonnes, contained copper tonnes and gold ounces compared to the constrained resource estimate. The slight differences are most likely due to the different search strategies, but also indicate the robustness of the unconstrained modelling approach.CITATION:Queen, L D and Tear, S J, 2015. The Frieda kiss – keeping it simple , in Proceedings PACRIM 2015 Congress, pp 361–368 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By R Markoski, P Grealish

The requirement for rapid vertical development for underground ventilation is often a factor when dealing with dynamic mine plans, with short vertical developments being used to optimise ventilation systems. In an effort to increase the safety and efficiency of the constructions, a simple and effective sinking methodology is required that is both adaptable and repeatable. A modified shaft construction methodology is proposed that attempts to minimise risk to the personnel as well as be cost-effective. Readily available equipment is used to ensure adaptability to the various environments and shaft parameters.One of the greatest risks of shaft sinking is having personnel working suspended over open cavities or underneath suspended loads. Removing this risk, by ensuring all construction is done from solid ground, allows for safer sinking operations. As the process is repeatable, familiarity and confidence in its construction sequence will increase with each successive sink.A trial sink is performed with a 3.6 m diameter, 20 m deep shaft. The shaft was excavated using a conventional strip-and-line philosophy, with the shaft then being lined from the collar via the use of large diameter corrugated steel culverts. The annulus between the steel culverts and shaft excavation is then filled with a concrete mixture to secure it in position.The new process was successful, with no personnel at any time during the process being suspended above an open excavation. The installation had relatively low capital and operational costs and was completed faster than an equivalent, conventional concrete-lined shaft construction. Therefore when compared to conventional shaft-sinking methods, this process can be considered safer, more efficient and relatively cost-effective.Further research is required to determine whether this method can be expanded to larger vertical developments.CITATION:Markoski, R and Grealish, P, 2014. A new method for rapid vertical development of underground ventilation shafts, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 603–606 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By V Yadi

Geostatistics has been widely used for more than four decades as a powerful tool in ore resource/reserve estimates and grade control. This method has gradually replaced the conventional method such as polygon and cross-section for grade estimation by more mathematical techniques such as kriging. The advances in geostatistical understanding and the availability of appropriate software packages have given much more contribution in speed and high accuracy during production. However, in many cases, these techniques are sometime applied without support with a good thorough understanding of the geological controls on metal distribution. To produce the result close to actual, the geological control in interpretation and appropriate geostatistical task is a must. Geological logging was described in the core must be consistent with the level plan produced by commercial modelling software used as a guide for grade control during production. Experience gained through evaluation of the Central I deposit resulted that the most effective systems continue to be based on geostatistical methods of resource estimation. Computer applications modelling software packages are necessarily as the core of an efficient in undertaking these assignments. They contribute to make a valued to data management and are becoming increasingly effective during processing. The latter role is particularly important to check the actual versus estimated values where will significantly to improve personnel to have a confident with their knowledge combined with experience and complete their jobs satisfy.

Aug 22, 2011

By C M. Zammit, N Cook, F Reith, C L. Ciobanu, J Brugger

The role of biological agents in the gold mining industry is currently limited to the use of microorganisms in bioleaching and bioremediation. However, there is a variety of possibilities in which biotechnology could aid the mining industry in the future. In this article we discuss the potential for the development of these novel biotechnologies and the role they can play in the exploration for new gold deposits, the processing of ores and the post-mining remediation of sites. The development of these biotechnologies has been enabled by rapid advances in our molecular-level understanding of the role microorganisms play in the solubilisation, dispersion and precipitation of gold. An understanding of the distribution of microbial species in soils overlying mineralisation can be utilised to develop bioindicator systems that assist with gold exploration. An in-depth knowledge of how microorganisms interact with gold complexes is being used to develop in-field biosensors, supporting exploration. Processing technologies may be improved based on advances in our understanding of the interactions between microorganisms, ore minerals, cyanide and gold. For instance, cyanide-producing microorganisms are being investigated for use in in situ leaching of gold. In turn, the use of cyanide-utilising microorganisms for the degradation of cyanide is being explored. Combined, the implementation of these biotechnologies in the gold mining sector may revolutionise the industry, leading to greener, more efficient exploration for and extraction of gold.CITATION:Zammit, C M, Cook, N, Ciobanu, C L, Brugger, J and Reith, F, 2013. Possible future applications of biotechnologies in the gold industry - a prospective approach, in Proceedings World Gold 2013 , pp 233-244 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By D Craw, P V. Angus

Gold mineralisation at Macraes occurs as late quartz-carbonate veins within a body of sheared and hydrothermally altered Otago Schist, the Intrashear Schist. The alteration is characterised by the presence of rutile and the absence of epidote and titanite, indicative of an alteration fluid containing >10 mol per cent CO2. In areas of high strain, a fabric of black microshears develops, gradational to mylonitic cataclasite in the high strain zone adjacent to the hanging wall of the duplex shear zone. The microshears contain hydrothermal graphite, inferred to have been deposited from a methane-rich fluid. The mylonitic cataclasite is characterised by abundant pyrite, the absence of albite and extreme grain size reduction. Gold recovery in the CIL processing plant at Macraes can drop to 50 per cent or lower for some unfavourable ore types. Preg-robbing by a component in the ore, possibly graphite, was suspected as the cause. Mylonitic cataclasite was identified as the lithology responsible for the poor recoveries, with the capacity to bind about 30 ppm of gold in the leach tanks. A program of detailed geochemistry and quantitative grain-size measurement using Coulter analysis was undertaken to identify specific mineralogical factors associated with preg-robbing. The results indicate that pyrite, graphite, and extreme grain-size reduction are the factors associated with highly preg-robbing ores at Macraes. The evolution of the mylonitic cataclasite is accompanied by strong potassium enrichment, as muscovite, and depletion in sodium as albite is removed. This suggests that a simple powder XRD ratio of the albite to illite peaks would suffice to distinguish the preg-robbing ore for grade-control purposes.

Jan 1, 1999

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011