Search Documents

By B Maybee

In underground mine planning, many potentially value-eroding decisions are made due to a lack of time and proper evaluation practices. The information required for mine planning decisions goes beyond external sources of uncertainty that are recognised by typical evaluation techniques used in the mining industry, to include technical factors (eg mine development layout) and the ability of a mineral extraction project to achieve its anticipated production levels. Due to the individual characteristics that define underground mining projects, each will exhibit a different risk profile, and thus advanced optimisation and evaluation techniques are required to capture this information.As underground mine planning tools become more sophisticated, mine planners have the capacity to investigate numerous mine sequencing options to identify the best strategy for a given project, creating higher value for shareholders. This paper describes a risk-based evaluation methodology (RbEM) that accounts for financial and technical risk in the evaluation of underground mining projects. While the use of the RbEM has been described in previous works, no benchmarking of the benefits that can be realised from a change in those decisions that are made early in the process has been undertaken. To show the benefits that can be achieved from using the RbEM, this paper updates a case study to which the RbEM was applied, and takes a retrospective look at whether additional value would have been gained by following the strategic recommendation of the RbEM versus a typical optimisation exercise that aims to maximise the net present value.CITATION:Maybee, B, 2012. Can a risk-based evaluation provide a more valuable mine design?, in Proceedings Project Evaluation 2012 , pp 53-58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

The mining. operations of Bougainville Copper Pty Limited are located at Panguna on the Island of Bougainville which is part of the Territory of Papua and New Guinea. Mineralisation in the Panguna area was first established by C.R.A. Exploration Pty Ltd in 1964. Exploration work since then has established ore reserves estimated to be 760,000,000 tons of.0.47% copper and 0.4 dwt./ton gold. An economic feasibility study completed in July of this year has enabled a decision to be made to proceed with a major mining operation. The ore will be mined by open cut methods and will be treated in a conventional concentrator with a nominal capacity of 90,000 short tons per day. The concentrate will be pumped as a slurry through a 15 mile long pipeline to a port established on the east coast where it will be filtered and dried ready for export. Other supporting facilities for the mine include two towns, a 135 megawatt steam power station, and access roads.

Jan 1, 1970

The Mt. Sisa Orebody on Misima Island, P.N.G., consists of gold-silver mineralization associated with massive carbonate and amor- phous iron-manganese oxides in fractures and breccia matrix. The orebody forms the north- ern extension of the Umuna deposit. The mineralization lies within the three kilometre strike length of a northwest trending, 300 metre wide, high angle fault zone. The fault zone structure is deeply oxidi- sed, with the manganiferous oxide material resulting from oxidation of carbonate. The wallrocks are metamorphosed basement psammopelites and basic volcanic rocks, exten- sively intruded by microgranodiorite. These are dominantly epidotized and sericitized. The precious metals are associated with anomalous Cu, Zn, Pb, Mn, As, Ba, Ga, Sb, and. Mo. Many of the features of the Mt.Sisa mineralization are characteristic of volcanic- hosted epithermal deposits of western North' America. Lithologic and textural gradation is ob- served between the carbonate hydrothermal breccia-fill at Mt. Sisa, and the quartz domi- nated dilational fracture-fill mineralization which forms most of the Umuna deposit to the south. This gradational relationship is ana- logous to that within the Amethyst-OH vein system at Creede, Colorado, where it is shown to be indicative of deposition from laterally migrating fluids.

Jan 1, 1987

By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

By G Newling

Zinifex Rosebery Mine is a lead-zinc underground mining operation located at the base of Mount Black, on the West Coast of Tasmania. Mining activities at the Rosebery Mine have been undertaken for over 100 years, and it has been operating in its current form for over 60 years. A large surface and underground exploration drilling program over the last 18 months has increased the mineÆs expected mine life from five to 12 years, with expectations that over the next 18 months as the program continues this will swell to 20 plus years. Zinifex Ltd secured Rosebery Mine in April 2004 and commissioned a detailed life-of-mine (LOM) study on all aspects of the operation. One of the most detailed sections of this report was on the state of the current ventilation system. It was identified in this report that for mining at the current depth of approximately 1100 m to continue a minimum 30 per cent increase in ventilation quantity was essential, as well as a likely requirement for a refrigerant cooling plant for each of the two deepest panels, the K and P lenses. It was identified that Zinifex did not have personnel with the expertise in underground refrigeration to manage and implement a project of this nature. A second report was commissioned with Bluhm Burton Engineering (BBE), a South African firm specialising in both surface and underground large-scale refrigeration plants. BBE concluded that two refrigeration plants were required to provide the necessary cooling power in the lower sections of the mine. In 2005, with BBE as technical consultants, Zinifex Rosebery Mine embarked on a project to commission two underground refrigeration units capable of lowering the wet bulb temperature at the decline face by four degrees centigrade. This paper is intended to give the reader an overview of: Rosebery Mine operations,Rosebery underground refrigeration project,technical difficulties associated with implementing an underground refrigeration system, andkey learnings to date.

Jan 1, 2008

By D C. S M, J Skudder, R F. Sandenbergh

Metallic sulfide minerals present in most gold ores, Morila gold ore included, often decompose under typical gold leaching conditions. The reactions and their products consume oxygen and sodium cyanide, consequently competing for oxygen and cyanide used in gold dissolution. The resultant effect is to reduce both the kinetics of gold dissolution and overall extraction efficiencies. The present paper discusses results obtained from plant data analysis and laboratory work investigating the problem of higher than expected consumption of sodium cyanide at Morila Mine Gold Plant. Cyanide consumption at the Morila Mine Gold Plant had been consistently running at 46 per cent higher than the expected value without any corresponding increase in gold recovery. In fact, plant data analysis showed an inverse relationship between cyanide consumption and grind, as well as cyanide consumption and gold recovery. Experimental and plant data analysis indicated that better control of the [CN-]/[O2] ratio is necessary for the efficient use of reagents and achievement of higher gold recoveries. Careful control of this ratio at a minimum of eight enabled the reduction of sodium cyanide consumption by 200 g/t, that is, from 650 g/t to 450 g/t. Coupling these experimental conditions with the addition of lead nitrate at 100 g/t improved the overall gold recovery to 93 per cent compared to the average plant recovery of 90.2 per cent over a six-month period. This improvement was also reflected in the leaching kinetics where 70 per cent gold extraction was achieved after four hours, as compared to 59 per cent in the absence of lead nitrate addition. Also of great importance is the fact that the combination of hydrogen peroxide and oxygen gave inferior performance relative to either of the two reagents used separately. This scenario presents an opportunity for excluding hydrogen peroxide, an expensive reagent, and focusing on improving the oxygen addition system to boost dissolved oxygen concentration in the plant.

Jan 1, 2007

By Hare S. M, Lumsdaine I, O&apos

Converter slag assaying 3.7 per cent Cu is produced by Mount Isa copper smelter at a rate of up to 180 000 tonnes per annum.Priority is given to the processing of ore, however concentrator capacity periodically exceeds that of the mine and the opportunity is taken to treat converter slag. It is processed in batch campaigns, typically through the Copper Concentrator, but the Hilton Concentrator has also been used. Slag and ore are kept as separate as possible, since each has an adverse effect on the flotation performance of the other.

Jan 1, 1993

Currently, mining in Australia underpins the economic vitality of the nation, generating massive revenue from commodity exports and providing substantial infrastructure and employment. In addition, it is predicted that mining related services will in the future develop a global market of their own that could eventually grow to rival, in value, the export trade in mineral commodities. There is however little room for complacency. In the short- to medium-term, escalating, vigorous competition can be expected from many previously underdeveloped countries that are reforming their own mining and mineral export industries. In addition, most mining companies are facing a modem-day renaissance in terms of new expectations, changing social norms, evolving employee relations and statutory obligations. Thus, along with whatever promise the future might hold, the mining industry is currently being subjected to a growing number of largely unprecedented problems and pressures, both economic and social, that are both highly complex and demanding. In particular, it remains a matter of on-going concern that relations between mining companies and their employees still, in spite of recent reforms, continue to constrain productivity, perpetuate inefficiencies, affect quality of work life and retard progress towards mutually beneficial goals and achievements. If mining in Australia is to attain and hold on to a commanding position on the global scene, then further changes will clearly need to be made. Realisation of this appears to be growing, with most mining companies having attempted in recent years to improve workplace culture. Based on a wide ranging study, this paper presents an overview of what has been learned to-date with regard to the `people factor' when it comes to implementing and progressing positive change and reform in mining. From this, a number of practical suggestions, arising from hard won lessons and experiences in the field, are offered. Attention to the nine `key principles' given should help to ensure that many of the common problems encountered to-date with change and reform in the mining industry are in future avoided or at least minimised.

Jan 1, 1997

By J S. Kuszmaul, T O. Aspinall

The applicability of environmental geotechnics for erosion management is increasing in importance worldwide. The environmental impact of mining and evolving environmental legislation has been receiving increased attention worldwide in the last two decades (Bradfield, Shultz and Stone, 1996). The potential impacts associated with unstable spoil dumps from mine operations is the focus of concern both by the mining industry, environmental legislative agencies and members of the public. This is because of the need to increase the reliability of erosion prediction and in the minimisation of costs for spoil dump design. Engineered slopes of mine spoils may be stable at the end of construction, but they can deteriorate over time. Engineering design of mine spoil dumps seeks to reduce the potential for such erosion damage through correct selection of an initial stable landform scheme (Goh, 1997). The design of mine spoil dumps must also conform to the specifications of evolving legislation. The Queensland Environmental Management Overview Strategy (EMOS) states that, for minimised degradation of the surface area due to erosion during the development of a project, the erosion rates should be between 12 - 40 tonnes/hectare/year and that the depths of rills and gullies be limited to less than 30 cm (QDPI, 1988). The aim of engineering design is to ensure the long-term stability of the spoil dumps. The implementation of effective planning and operating procedures through recontouring and grading assists in the reshaping of spoil dumps to a safe, stable and non-erodible environment.

Jan 1, 1998

By Kandemir H, Stafford G

The Croydon Gold Mine is located in northwest Queensland and is a joint venture between Central Coast Exploration N.L. and Pancontinental Mining Ltd. The mining operation commenced in 1987 and consists of satellite open pit mines feeding a central Carbon-In-Pulp gold Treatment Plant. The gold mineralisation is hosted by quartz veins within the Croydon Volcanic Group and the Esmeralda Granite, a cogenetic igneous suite of Middle Proterozoic age. The mineralisation comprises gold and silver with associated basemetals. The gold and silver electrum occurs as extremely fine free grains. The gold distribution is heterogenous occuring across the full vein width, or restricted to the footwall or hangingwall. The average mineral resource grade is 3.5 g/t. The deposits are all hard rock and mining is carried out by drill and blast technique. All mining activity is carried out by a mining contractor. Mining is by a selective mining method which entails the drilling, blasting and extraction of the hangingwall waste prior to orebody extraction.

Jan 1, 1989

By O N. Antzutkin, W Forsling, K J. Pike an

The adsorption mechanism of three different O,OÆ-di-alkyl-dithiophosphate (dtp) collectors, K[S2P(OR)2] with R = Et, i-Bu and i-Amyl, on the surface of synthetic chalcocite (Cu2S) was studied by means of solid-state 31P CP/MAS NMR spectroscopy. The morphology changes on the conditioned Cu2S surfaces, in the collector concentration range 0.1 - 10 mM, were also monitored with scanning electron microscope (SEM). In order to assign Cu(I)-dtp species on the surface of Cu2S, the corresponding bulk Cu(I)-dtp compounds, which are clusters of the monovalent copper containing either Cu6(antiprismatic) or Cu8(cubic) cores, were synthesised, and characterised by means of solid-state 31P CP/MAS and static 65Cu NMR. Further investigations on the crystal habits of the bulk systems were carried out by powder x-ray diffraction and SEM. A comparative analysis of the 31P chemical shift and chemical shift anisotropy (CSA) data estimated from the experimental NMR spectra of the polycrystalline bulk Cu(I) dialkyldithiophosphate complexes was used for assigning the 31P resonance lines in the NMR spectra of the collector treated Cu2S powder samples. The species formed on the synthetic Cu2S surfaces were assigned to polycrystalline phases of: Cu6L6 with L = Et2dtpû, Cu6L6 and Cu8L6(S) with L = i-Bu2dtpû, and Cu8L6(S) with L = i-Amyl2dtpû. A heterophase autocatalytic step process of both formation and growth of solid CuxLy (L = R2dtp, x = 6 or 8 and y = 6) complexes on the collector treated Cu2S surface is proposed. A possible role of the oxidised form of dithiophosphate collectors, bis[di-alkyl-thiophosphoryl]-disulfane (disulfide), is discussed in terms of a specific self-redox reaction. The second order quadrupolar lineshapes in 65Cu NMR spectra were simulated and the interaction parameters, CQ and hQ, for the bulk dialkyldithiophosphato-copper(I) complexes were obtained.

Jan 1, 2005

The AJ Parker Cooperative Research Centre for Hydrometallurgy is the focus of a world-class effort in providing technical solutions to the minerals industry. The 85 FTE staff are drawn from the CentreÆs five joint venture research partners comprising universities (Curtin, Murdoch and Qld) and government research agencies (CSIRO and WA Dept of Industry and Resources). There are also 12 industry partners, representing most of the leading mining companies in the world. Around 45 postgraduate students, mainly PhDs, make a significant contribution to the research effort. Total annual expenditure on R&D is around $17 million.Hydrometallurgy activities encompass both fundamental and applied research across the alumina, gold and base metal sectors. The Centre is now growing its client base into overseas markets, particularly North America, South Africa and Europe. Quality, strategic R&D by the Parker Centre is seen by the industry as an attractive investment. A recent survey of the industry revealed an estimated ten-fold return based on direct costs of research to the client. In addition, the Parker Centre has a strong commitment to education of postgraduate students wishing to enter the mining industry as well as providing specialist courses for those technical professionals already employed in the industry. The wide range of employment opportunities in the mining industry is reflected in the diversity of the disciplines amongst the CentreÆs research team, eg extractive metallurgy, chemistry, biotechnology, physics, engineering, molecular modelling, microscopy, geology and computational fluid dynamics. How does an atomic force microscope and molecular modelling improve our ability to control gypsum scaling or understand crystallisation of alumina in a Bayer plant? Can a biologist contribute to the problem of the slow leaching of copper from chalcopyrite? Why are computational fluid dynamics and lasers the basis of understanding how to make thickeners work more efficiently. Can you combine a PhD or Honours degree with industry experience? What is crud and why is nickel stressed? These are typical examples of the CentreÆs research activities and demonstrate the contributions of its multi-disciplinary teams which keep the Australian mining industry at the cutting edge of advanced global technology.

Jan 1, 2003

Mining epitomises the challenge of sustainable development, because few sectors have such a direct impact on the natural environment, yet few are more important to the economic and social health of almost every region in the globe. In a global industry, with increasing competition for exploration and mining investment dollars, sustainable development must also be resolved within an international competitiveness framework. In formulating a response to the challenge of sustainable development, the State and Federal Governments do not fully appreciate the extent to which technology drives the solution on a range of issues. In some cases` a dangerous fatalism about the state of science has led to an unhealthy æstop productionÆ attitude that puts our industry and economy at risk. As a technical institute representing the professionals in the minerals sector, The Australasian Institute of Mining and Metallurgy (The AusIMM) sees one of its roles as being to highlight the way in which industry innovation can facilitate solutions. The AusIMM is currently evolving a greenhouse gas emissions policy. As a case study it throws into sharp relief the way in which irresponsible ælimits to growthÆ policies could have a negative impact on the sustainability of the sector, as well as the importance of a technology- based solution. With 80 per cent of greenhouse gas emissions in the next twenty years projected to come from developing economies, such as India and China, major reductions will only be achieved if cost-effective, low emissions energy technologies are deployed in developing countries, and more energy efficient processes of producing key commodities for them are brought online. As a supplier of the key energy resources and materials that will be in high demand to feed developing economies, and with knowledge intensive industries with excellent R&D links across mining and manufacturing, Australia is well positioned to contribute to develop key low emissions technologies. However, we will only be able to take advantage of this position if the Federal Government commits to a holistic greenhouse emissions policy that does not penalise industry. We need effective æpushÆ polices aimed at leveraging investment in low emissions R&D that are closely linked in to æpullÆ policies aimed at stimulating technology uptake.

Jan 1, 2006

Politicians and economists talk glibly about the so-called knowledge revolution. The reality is that knowledge is fundamental to economic progress. Consequently there have been many technological revolutions. The global impacts of the invention of the steam engine and the development of the frozen meat industry are well known. Another less publicised technological advance occurred in Central Otago late in the nineteenth century. This was the adaptation of the bucketladder dredge to the mining of placer deposits. A product of over 30 years experimentation and innovation, New Zealand dredging technology was taken to the Risdon Iron and Locomotive Works, San Francisco by R H Postlethwaite, a Dunedin based mining engineer. New Zealand-style dredges built by Risdon operated successfully in California, Alaska and the Yukon. Californian engineers assimilated the best features of the New Zealand dredges with American (Bucyrus) designs to produce a standard for the worldwide placer mining industry.

Jan 1, 2003

DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

Coal slurry pumping was introduced into the U.K. in 1973. Gateside packs were prepared in areas of containment using R.O.M. coal and a special fast setting cement. The packs restricted roadway convergence and moderated spontaneous combustion risks, but costs were high and alternptives were sought. A similar system using OPC and an accelerator had limited success. Much more successful was the Aquapack process which used dilute slurries of a special OPC based cement and an accelerator based on sodium carbonate and bentonite pumped simultaneously into la fabric packbag. The Tekpak system using HAC and a much modified calcium sulphate mixture superceded Aquapack on the grounds of improved cement pumping life lower alkalinity and lower costs. A further modification of this system gave a cement with a 24 hour pumping life thus obviating flushing out pipe ranges except at the week-ends, improved packbags also increased the efficiency of the process. The hazard of spontaneous combustion can be inhibited if air supply channels across the waste can be located and plugged. Using gas samples from pack pipes to locate the heating and injecting a special grout, formulated from bentonite, sodium silicate and thixotroping agents. into the waste on the intake road has proved a successful method of controlling heatings. Mine' roadway and face cavities are being safely and successfully filled with cementitious foams produced in a novel placer machine. The foams are based on fast setting cements with specialised foaming agents. Up to 13 cu. metres per hour of fast setting thixotropic foams can be produced and their use is now widespread throughout U.K. coal mines.

Jan 1, 1986

A combination of the needs of business, employee desires and safety and health considerations is stimulating increasing attention to the time spent by people at work and the timing of that work. Particularly we are seeing: - innovative work schedules for 24-hour mining businesses; and - response from industry to accommodate the needs, even the desires, of employees in return for systems which are more productive and more capital efficient. There appears to be an evolutionary trend for business management to become more sophisticated and responsive to the need for achieving close to best cost work schedules to sustain continuous improvement. The underlying motivating forces driving this trend for improved techniques in organising attendance at, and time spent at work, is the seemingly inseparable combination of technological advance and ever-increasing accumulation of capital. The mining industry has not remained untouched by this thrust for ever-increasing need for best use of labour, to adopt advances in technology and to provide attractive opportunities for putting accumulated capital to work. An essential component of this on-going thrust is a substantial effort by the mining industry to improve the performance of labour by providing most-productive work schedules.

Jan 1, 1996

By Laas JJ, Spearing AJS

Considering the capital outlay, running costs and inherent difficulties of backfilling operations at depth the benefits need to be clearly established, quantified and then exploited. Expansion of Vaal Reefs Exploration and Mining Company towards even deeper, highly faulted ground, and the process of establishing codes of practice for the management of rockfalls and rockbursts, required that a sound support strategy be formulated. This paper describes the derivation of an overall backfilling strategy on Vaal Reefs. Use was made of experience gained over some 12 years with backfilling. Numerical modelling was used to estimate potential benefits of backfilling the deepest mining areas still to be extracted. In exploiting a probably unique opportunity, two contiguous mining areas bounded by the same major geological structures, were compared. One was extensively backfilled and the other not at all. Shaft sinking through a backfilled stope added another dimension to the database. Backfilling was introduced in 1985 and several potential spin-offs were expected. These included improved local strata control for fall of ground and rockburst conditions, regional benefits in rock mass stability and mine ventilation optimisation.

Jan 1, 1998

By Jackson GS

Since 1983 Cobar Mines Pty Ltd has madea concerted effort to improve the performance of its long hole open stopes, especially in the areas of dilution and fragmentation.This has resulted in modifications to stope design, drilling and blasting practice.

Jan 1, 1985

Early in 1950 a new laboratory was set up to deal with problems in mineragraphy, petrology and metallography. This paper describes the equipment, the organisation and association of the laboratory with the various departments of the company, the work that has been done and future plans.At Mount Isa it was soon realised that the microscope would play a most important role in mineral dressing problems and aiding geological research.As early as 1928, R. J. Colony submitted a petrographic report on Black Star ore for Consolidated Limited; much later, in 1934-5 Dr. Grondijs published for Mount Isa Mines Limited a preliminary study of the Mount Isa orebody, followed by a mineragraphicinvestigation of mill products, and in 1937 a Study of Mount Isa Ores by H. GrondIjs and C. Schouten appeared in Economic Geology, for June-July. Other papers dealing with the petrology and mineragraphy of Mount Isa ores are appended at the end of the paper.The mill research metallurgical staff has endeavoured to incorporate mineragraphy in solving milling problems and determining the effectiveness of laboratory as well as examining minerals sent in by the geological department.For many years the amount of equipment available was limited and much of it was locally made or improvised. An improvised briquetting machine, and grinding and polishing lap gave moderate results in conjunction with an old, but serviceable, Leitz microscope. However, for more detailed and accurate work not possible with improvised equipment, many mineragraphic problems were sent to specialist in.

Jan 1, 1953