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A novel approach to validate size distributions obtained from bubble sizing techniques is introduced. The experimental rationale consists in verifying whether the output features the anticipated bi-modality when two uni-modal populations (ca. 0.5 and 5 mm) are mixed in a bubble column. The degree of deviation is quantified by comparing the calculated and real proportions on a volumetric basis. A sampling-followed-by-imaging technique was used to proof the concept. The results showed the anticipated bi-modality in which the real and calculated proportions corresponded with a deviation of less than 15 per cent, considered good given the severity of the test. However, the deviation was correlated to the superficial gas velocity (Jg) in the column and was consistently against smaller bubbles. Possible sources of bias are suggested.

Jan 1, 2005

A new approach to resource estimation at the exploration stage is emerging, based on the application of simple software techniques. The techniques combine the power of interactive graphics with proven database, analysis and estimation tools. With effective use of these tools the geologist now has maximum chance of deriving a reliable structural and grade model from the limited exploration data. Unlike cutoff-based polygonal methods, the resultant geological model can immediately be used to evaluate any economic scenario.These modelling techniques are embodied in MINEX-3D, an Australian software system. With the emergence of the 386-based PC and high resolution (VGA or better) graphics, MINEX-3D makes the power of this new 'desktop geological modelling' accessible to most exploration geologists.

Jan 1, 1990

By J I Stewart

The Copper Canyon deposits, occur in proximity to the regionally distinctive formational boundary between the Staveley Formation and Marimo Shale. The mineralisation here is associated with breccias, veins, and alteration zones near the base of the Marimo Shale unit and in the underlying evaporitic dolomite-dololutite dominant Staveley Formation. The Marimo Shale unit, in its basal 60 metres, is highly carbonaceous and hosts ubiquitous but minor diagenetic (?) copper-pyrite, and on occasion, extensive albite-microcline alteration centres, pyritic (cobaltiferous)-quartz veins, and microcline-quartz_+plagioclase veins or veinlet arrays. The most significant mineralisation, such as at the Greenrnount prospect, consists of a shallowly dipping package of alteration zones overprinted by multiple generations of pink-orange microcline-quartz-chalcopyrite-pyrite-(arsenopyrite) and albite-calcite- phlogopite veins. Accessory mineralogies in most of these mineralisation styles consist of tourmaline, monazite, rutile, and apatite. Chalcopyrite (and secondary chalcocite) and gold are associated with each generation of alteration but are best developed in the later stages of veining. In the underlying Staveley Formation, which is a conformable transition between the Corella Formation limestones and the Marimo Shale, chalcopyrite (cobaltiferous)-pyrite mineralisation occurs as disseminations in pre- and syntectonic breccias, and with disaggregated silica pseudomorphs (after thinly bedded evaporitic sulphate beds) and associated dolomitised limestone-calcilutite. Although this mineralisation may be partly diagenetic in origin the 200 in thick evaporitic packages are also host to a locally widespread (2 to 4 km long and 200 to >500 metres wide) and pervasive 'redrock' styled microcline-dolomite¦hematite alteration. Within this gross alteration package there also seems to be a consistent association with narrow (10 to 100 metres wide), linear (stratabound) semi-massive magnetite-hematite-microcline and quartz-chalcedony replacement zones. Like much of the nearby Corella Formation the Staveley Formation, under the Marimo Shale, has undergone dissolution, paleo-solution karsting (breccias) and tectonic brecciation such that the precursor lithological details have been progressively obliterated. The post-diagenetic to post-tectonic fluid pathway development and metasomatic alteration history of this important lithostructural package of rocks has been traced from preliminary studies only. The ability to do so is largely due to the absence of significant regional and contact metamorphic overprinting, and the local preservation of precursor sediment profiles. It is proposed that both the base of the Marimo Shale and parts of the underlying evaporitic-limestone-dololutite have acted as conformable fluid pathways for hydrothermal and (perhaps) diagenetically derived, Cu-Au-(¦Co ¦As) K-Na-Ti-REE bearing, fluids and brines.

Jan 1, 1994

By G Danckert

The key technical theme of ‘orebody knowledge’ has been applied by Rio Tinto in the Pilbara iron ore precinct from 1966, when operations first started there. It forms the basis of present day application, as well as planning for the future.This paper will review how the early towns and mines commenced and how they formed the basis of Rio Tinto’s early operations, on which the Pilbara precinct has been based. A profile of the last decade of Pilbara growth will be highlighted, together with the current integrated network of mines, rail and ports and the next generation of expansions.The paper will specifically describe the Rio Tinto process of significant resource evaluation, including comprehensive drilling programs and the conversion from resource to reserves. It will also describe the overall mine planning process, both from the strategic view, as well as for short-term mine plans.The ability to innovate in resource development will be discussed. This will include not only the technical dimension of changing cut off grades, use of low-grade ores and managing low-grade stockpiling and beneficiation, but also the broader application of new technology and innovation in the iron ore business.

Jul 11, 2011

By J Stipcevich, N Patel, J Faithful5, S Narendranathan, L Tatnell4

ENGIE, the current owner and operator of the Hazelwood Open Cut coalmine, are in the process of rehabilitating the mine site in preparation for mine closure. Bucket wheel excavators (dredgers) used during coal mining operations are in the process of being demolished, which involves the controlled felling of dredger components using explosives. With the mine located in close proximity to the Morwell township and other critical public infrastructure, it is crucial that the use of explosives and the possible implications for mine stability is well understood. The felling of Large Mining Equipment (LME) will apply an impact load immediately to the underlying coal benches with the adjacent coal batters potentially at risk also of adverse slope stability impacts. This paper presents the 3D stability modelling methods employed to successfully assess the potentially adverse stability implications associated with LME collapse.

Jun 21, 2022

By N Gupta, R Trivedi, S Bhandari

Managing blasting operations in four mines surrounded by villages is a challenging task. This study aims to compare the blast-induced flyrock as observed in opencast mines by predicting flyrock distance using a soft computing approach known as an adaptive neuro-fuzzy inference system (ANFIS) and Flyrock Predictor software based on empirical studies. Blast design and geotechnical variables such as linear charge concentration, burden, stemming length, specific charge, unconfined compressive strength and rock quality designation were selected as independent variables, while flyrock distance was used as a dependent variable. Out of 120 blasts, data from 100 blasts was used to train and test the ANFIS model. Flyrock distance for the remaining 20 blasts was used to evaluate the model. Flyrock distance has also been predicted using Flyrock Predictor software based on an empirical approach using the same data sets as those used for ANFIS. Performance indices like root mean square error (RMSE), mean absolute error and coefficient of determination (R2) were evaluated to compare the reliability of ANFIS and Flyrock Predictor quantitatively. ANFIS was found to be a better predictive tool, with 1.75 m RMSE and 0.966 R2 compared to Flyrock Predictor, which returned RMSE and R2 values of 2.48 m and 0.932 respectively.CITATION:Trivedi, R, Singh, T N, Gupta, N and Bhandari, S, 2015. Soft computing approach to predict blast-induced flyrock, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 455–462 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Light

Since 2019, the mine planning team at Olympic Dam has been establishing and maturing a shift from deterministic to probabilistic scheduling techniques. This paper outlines this journey undertaken by the mine planning team, key learnings from implementation and further work required to increase the level of planning maturity. Olympic Dam (OD) is a highly variable, polymetallic orebody with a vertically integrated value chain from operations to final product. The processing plant has a tight set of quality constraints which are managed through timing of stopes from varying parts of the orebody. Value is eroded for the operation when forecasted quality of the mine feed encounters disruptions from unplanned changes to the timing of stope starts. As production has moved from the historic Northern Mining Area into the more geologically complex Southern Mining Area, average stope size has reduced, resulting in increased mining fronts required to meet production targets. This has created a problem of increased schedule complexity and difficulties in identifying and communicating resource priorities within a large set of individual stope critical paths. The problem was approached by considering each stope as an individual project constructed by teams working across multiple projects at any one time. The operation could then be considered a multi-project environment with shared resources and enables the application of Critical Chain Project Management (CCPM) to the mine plan. Key to CCPM is the addition of time buffers to protect the critical path of a project form upstream or downstream processes. Implementation of time buffers protects the stope start date against compliance to plan variance. The monitoring of each time buffer consumption, as a proportion of total construction activities completed enables proactive prioritisation of resources. This resulted in an increase in the number of stopes starting in accordance with the mine plan, simplified communication of priorities to all levels of the operation, increased compliance to plan and a clear measure of schedule risk during planning routines.

Mar 29, 2023

By Kruse JW, Kjar AR

Recently there has been increased recognition o'f the cost savings that can be achieved by the greater use of offsite preassembly for the construction of industrial plants. Preassembly is a method of construction which involves considerable offsite assembly of complete sections of an industrial plant in established fabrication shops. The preassemblies are transported to the plant site, often by large and oversize transport systems where they are set on prepared foundations, finished and interconnected to other sections of the plant as required. The concept of preassembly is not new, but widespread interest has been shown because site construction costs in all parts of the world have increased rapidly and often at a greater rate than in established fabrication areas. Particular interest has be focused on remote, isolated and inhospitable plant site locations. These areas require the import of skilled labour, the payment of high labour rate premiums and the development of infrastructure to support the workforce for the duration of the construction period.

Jan 1, 1983

By C Linklater, J Chapman, A Watson

Closure options under consideration at some sites include backfilling mined-out pits with waste rock. Backfill may include mineralised and non-mineralised waste rock. Following groundwater rebound, flow-through conditions may develop in the pit post-closure. The backfill located in the saturated zone below the water table may release solutes under such conditions. It is therefore important to understand the potential impacts that backfilled pits could have on postclosure groundwater quality.Geochemical characterisation programs are the foundation for assessing the potential chemistry of water that has contacted mined wastes. Such programs must be designed to obtain data relevant to the closure options under consideration. To complement standard testing techniques, SRK utilises saturated column testing designed to generate data on leaching rates under anoxic conditions that could be encountered within submerged backfill.This paper presents the findings of saturated column test work carried out on waste rock samples from an iron ore mine in the Pilbara.CITATION:Watson, A, Linklater, C and Chapman, J, 2016. Backfilled pits – laboratory-scale tests for assessing impacts on groundwater quality, in Proceedings Life-of-Mine 2016 Conference , pp 110–114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By A Hughes, S G. Rosin

This paper presents the design and construction approach adopted for the widening and stabilisation of the existing decline tunnel forming part of the Scenic Railway Upgrade project at Katoomba in the Blue Mountains of New South Wales (NSW), Australia. The overall upgrade project included new trains and track, rebuilding of the top and bottom station and installation of a new winch and control system. All the works were undertaken over an eight-month period between August 2012 and April 2013 as part of a $30 M upgrade of the railway.The railway is the steepest cable-driven line in the world at a maximum of 52° extending over 350 m and descending from the escarpment into the Jamison Valley. The track was built in the 1880s for coal haulage and is recognised as a remarkable engineering achievement for its time. The tunnel section extends for about 120 m at the start of the decline and is about 3.5 m wide and 3.5 m high. The tunnel was excavated principally within medium to high strength Banks Wall sandstone and given that the widening only involved about 200 mm of trimming of the crown and sidewall this aspect of the work was not a critical support issue, except at the upslope portal. The tunnel crown however is entirely intersected by a major near vertical shear zone which presented significant challenges for the tunnel stabilisation works.Three-dimensional laser survey scanning was used for definition of the tunnel clearance envelope for the widening, and also to subdivide the tunnel into various geotechnical sections to assist in support design. Specifically oriented rock bolts extending beyond the shear zone into stable rock were used together with mesh, shotcrete and extensive strip drains and flushing points for drainage of the shear zone.Unique aspects of this project were included into the specifications and work methods. This included construction of a mobile working platform for tunnel works, the use of dry shotcrete application, difficult access for rock bolting and limiting vibration during the tunnel trimming works due to the risks associated with crown instability. The works also took into consideration particular safety constraints/work exclusion areas to address the risk of detachment of rock which could mobilise downslope to the track area below. This was required because other works were in progress such as micro-piling and bottom platform works which were being undertaken concurrently with the tunnel work.CITATION:Rosin, S G and Hughes, A, 2014. Scenic Railway Tunnel upgrade in the Blue Mountains, New South Wales – an approach to design and construction, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 607–618 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

The output of Dexin Pit Copper is up to 33 million tonnes a year and the final depth is more than 500 m. As a cost reduction measure, the in-pit crushing and conveying system has was introduced to deliver ore from the pit to mills. This paper describes the in-pit crushing and conveying system, and highlights the optimum level where the shovel-truck haulage system transfers into In-pit Crushing and Conveying system, relocation of an in-pit crushing system, and includes the impact of the transferring point when the costs change.

Jan 1, 2003

By R H. Knight

Production mine geology must be accurate and efficient in order to reduce risk and ensure that ore value and mining operation revenue are maximised. Present grade control practices are commonly based on outmoded and inaccurate 2D geological mapping techniques where spatial relationships are estimated by eye, sketched by hand and projected to arbitrary reference planes. The 3D mapping approach outlined in this paper integrates 3D photogrammetric imagery with implicit modelling techniques to enable more accurate grade control and reconciliation in underground mines. High-resolution stereo photographs are taken of daily ore development headings. Ore contacts are traced directly on a 2D face photo using a stylus and rugged tablet. Area-weighted face grades are estimated and calculated on mapped 2D face planes. In the office, a 3D photorealistic mesh is processed and georeferenced. 2D face mapping data is transformed into its actual 3D location and true 3D mine mapping is performed by digitising oriented 3D polylines representing ore contacts and other geological features directly onto the image surface. Three-dimensional spatial relationships are fixed, eliminating the projection error of traditional 2D methods. Ore envelope and waste solids are modelled within the closed, drift-round mesh. Volume-weighted ore envelope and round grades, as well as round volume and tonnage, are calculated. Ore/waste classifications, grade, tonnage and per cent dilution are quantified per round, visually assessed in 3D and reconciled with short- and long-term models on a daily basis. Updated geological continuity models provide geological guidance in development headings under geological control and accurate 3D structural and form-line mapping improves definition drilling and stope planning. Three-dimensional imagery provides a permanent detailed survey and geological record of mine workings that can be revisited virtually to reinterpret geological ore controls in light of new observations and insights. In addition images can be used to monitor daily production performance, create training scenarios for miners, engineers and geologists and prepare management presentations. This approach adds value to underground mines by improving the accuracy and efficiency of mine geology practices. The method is particularly effective in mines with visually distinct and geometrically complex orebodies, such as those in the Balmat zinc mine located in New York State, USA, which are used to illustrate the method.CITATION:Knight, R H, 2017. 3D mine mapping – improving grade control and reconciliation in underground mines using photogrammetric imagery and implicit modelling techniques, in Proceedings Tenth International Mining Geology Conference 2017, pp 203–212 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By J Heyes

Historically mining engineers haven't spent enough time planning waste dumps, but waste movement costs often outweigh ore haulage costs. There is a real incentive to plan waste dumps right the first time to minimise rehandle and final closure costs. At BHP Billiton Iron Ore there has been an increasing sophistication in waste dump design and they are becoming as important as the pit design. Closure landforms are now included in mining studies. Closure is embedded in the business planning cycle. The results from the recent life of mine study at Whaleback is a case in point where a base case of the shortest hauls with no closure constraints was compared against a closure case. A properly planned and executed waste plan revealed that no rehandle was required and haulage costs were eight per cent less if closure design implementation was carried out concurrent with mining. At cessation of mining the landforms were such that decommissioning of critical acid rock drainage dams and coverage of exposed pyrite areas could occur straight away, without the need for additional rehandle.  The paper also covers design and scheduling elements of waste design both in-pit and ex-pit, management of potentially acid forming material (PAF) and trends in PAF management and designing for final landform closure. This paper illustrates that there is value in terms of costs savings, sustainable outcomes and reputation if the mine planners are involved in the closure planning process.

Jan 1, 2009

By R Hartner

Digital optical microscopy (DOM) and automated SEM-based (ASEM) mineralogy systems (MLA, QEMSCAN) have experienced significant developments within the last decade. However these developments have been independent from each other and the two mineralogical techniques have so far not yet been integrated to combine the strengths and technical benefits of both analytical platforms. This detailed comprehensive mineralogical information is critical support for geometallurgy.Major hardware and software advances in DOM in the last few years have provided important new capabilities with potential applications to automated mineralogy. These technological advances have been largely driven by sectors outside mining (eg medical pathology) and have not yet been widely adopted within the minerals industry. The advent of DOM offers significantly more automated mineralogy capabilities than traditional expert-mineralogist driven optical microscopy. This is based on advances in automated image acquisition, high resolution cameras for digital imaging, imaging of large areas through mosaic options, integration of multiple layers and application of advanced image analysis techniques.Ongoing research involves combining the outputs of DOM and ASEM-based microscopy to create new capabilities for integrated microscopy based on development of advanced cross-platform image fusion and data integration between DOM and ASEM (exploiting the benefits of both analytical platforms). This requires non-linear image registration and transfer of mineralogical identification from ASEM to DOM systems using sophisticated image manipulation and data analysis software.Examples will be given of image fusion and data registration for a range of different ore types. Image fusion techniques are demonstrated using a porphyry copper deposit sample where sulfides and precious metals are classified using the MLA and gangue mineralogy obtained from DOM images. Data integration enables creation of a library containing optical property variability information for minerals identified by the MLA; thus reducing the reliance on skilled mineral identification by supplementing human interpretation

Sep 5, 2011

By G Booth

Whilst communications systems in the mining industry have evolved over the years, the premise remains consistent that reliable communication is vital for safety and operational efficiency. TodayÆs open pit mines are benefiting from advanced developmental efforts based on mesh networking hardware and software technology. This paper highlights Rajant CorporationÆs adaptation of technology, originally developed for the defence and first responder industries, to provide wireless network connectivity in open pit mining applications. Featured is the large-scale deployment of over 300 mobile, meshing access points in the Bingham Canyon Copper mine near Salt Lake City, Utah, the worldÆs largest open pit copper mine. Many companies have positioned themselves, their technology and their product line in the arena of rugged outdoor wireless broadband mesh networking infrastructure. However, Rajant Corporation has combined specialised command and control software and portable networks which offer network extensibility and redundancy that are not available in any other networking solution. Rajant CorporationÆs BreadCrumb« offers unique traits in portability and non-line-of-site networking nodes which intelligently route and broadcast in standard 802.11 protocol. The advantage of RajantÆs solution is especially valuable for users needing equipment moved easily and rapidly into and out of the theatre of operations with uninterrupted network availability. The main differentiators that set the BreadCrumb« network apart from the competitors are mobility (continuous availability), simplicity, ability to properly load balance and power options. In 2007, RajantÆs BreadCrumb« wireless mesh system was selected by the Kennecott Utah Copper Corporation (KUCC), a wholly owned subsidiary of Rio Tinto, as its primary communications platform for operations within the Bingham Canyon Copper mine, the worldÆs largest open pit copper mine. The Rajant BreadCrumb« technology enables KUCC to gain additional operational efficiencies by tracking, monitoring and managing its copper mining operations. The primary goal of using the BreadCrumb« wireless mesh system Kennecott was to streamline its complex mining operations. KUCC required a high number of moving wireless nodes for improving mine monitoring and control. The Rajant InstaMesh« software running on the wireless BreadCrumb« units connects hundreds of devices to each other while rapidly transporting critical operational data. Kennecott has successfully implemented a large number of BreadCrumb« radios in an interconnected network that allows loader trucks, shovels, pumps, laptops and other production equipment to communicate with each other in real-time. These systems are a mix of secure access nodes that enable data and voice communications across a meshed, self-healing network for fleet dispatch, health monitoring and other critical mining applications. Many of the devices that require wireless communications are moving at all times throughout the wireless mining infrastructure. The BreadCrumb« nodes rapidly adapt to any changes in the network topology, assuring that IP traffic uptime and bandwidth are maximised. The installation layout and data network specifics, as well as maps and data network efficiencies will be detailed in the paper.

Jan 1, 2008

By A Kleinitz, J Halilovic, K Trappitt

Mine operators use grade control to determine the destination of each block of material in the mine. In polymetallic mines, grades are best expressed in dollars: the Net Smelter Return, NSR, per tonne. To estimate NSRs, geologists working on grade control develop models for each geometallurgical domain in the mine. These models may incorporate observations on the mineralogy and grain sizes of the material being examined. The site’s mill operators contribute to the models by providing geologists with statistical analyses that relate assay results and mineralogical compositions to metallurgical parameters, such as the rates of recovery of each economic metal to each of the concentrates produced, and the compositions of those concentrates. The team responsible for sales and marketing of the site’s products contributes to the NSR models by providing details of the costs of shipping concentrates to smelters and refineries; and by providing figures that are specified in the smelter contracts, such as the payability of the metals in each concentrate and the fees charged by the smelter. The mill operators also provide, for the NSR models, equations to estimate the rates of recovery of deleterious materials to each concentrate. Deleterious materials comprise mostly halogens and amphoteric elements, both of which reduce the efficiency of smelters. Furthermore, deleterious materials such as antimony and arsenic may be poisonous to people and to the environment. The sales and marketing team provide specifics of the penalties that smelters impose upon deleterious materials. These penalties may reduce NSRs by tens of percent, possibly to levels below the cut-off grade. Thus, in the blocks that are subject to grade control, mine geologists monitor not only the concentrations of economic metals, but also the presence and abundance of deleterious materials. The preparation and maintenance of models, to estimate NSRs and to assess changes in the levels of potentially toxic materials to be mined, requires close and continuing consultation between corporate departments. There must be strong communication of mine geologists with the mill operators; with the people who market the mine’s concentrates; and, should there be a risk of encountering toxic levels of deleterious materials, with the mine’s health, safety and environmental officers. This co-operation could require radical changes in the structure of many organisations. However, experience suggests that such changes can significantly improve the profitability of a mine.

Mar 22, 2022

By N Lewis

Recent major urban trunk sewer infrastructure projects in Melbourne have involved construction of nearly 10 km of tunnel boring machine (TBM) driven tunnels in a range of geological conditions varying from soft alluvial soils to hard volcanic rock. To provide both construction and permanent access to the new trunk sewer network, a total of 17 shafts between 5 m and 13 m in diameter, and up to 64 m in depth have been constructed. This paper describes the design and construction of the temporary shaft support systems for the shafts.The range and variability of geological conditions at each shaft site required the adoption of the following shaft support systems across the projects – jet grouting, sheet piles, diaphragm wall, secant pile, contiguous pile, reinforced shotcrete rings and rock bolts.Groundwater control, settlement, TBM launch and reception chambers at the shaft base, chambers and TBM launches at mid-depth of shafts, connection shafts between new and existing sewers and bypass pumping shafts are among the challenges that have been met.This paper reports on the some of the challenges involved and experience gained in developing design and construction solutions for large diameter shafts that are excavated within varying geology in Melbourne over the past three years.

Mar 8, 2011

By R Hargreaves, T Elkington, W J. Shaw, G W. Booth

Every day, around the world, thousands of tons of ore are loaded onto ships completing the miningproduction process and starting a multimillion-dollar economic transactions process. These transactions are based on the supply of tons of a commodity with certain specifications of assays of the main element (or physical properties) and concentration of contaminants, which are finally verified and evaluated by buyers, and also are considered ‘as true’ during Reconciliation process. On Sample Stations, this ‘true’ is based on a few kilograms of sample, often representing thousands of tons, that are sent to laboratories for further sample preparation and chemical analysis, where finally assay information is obtained from a few grams of pulverised sample, and are used for further production, planning, operational and financial-marketing decisions. Different International Standards (depending on the commodity) are used to establish the methodology to be followed, to set-up and obtain samples from the Sample Stations, and the specifications are visually inspected to give an estimation on the performance of the sampling point. This paper seeks to highlight with examples, the importance of the implementation of a continuously monitored Quality Program (QAQC and QM) on Sample Stations, focused on the parameters that directly affect the quality and representativeness of the samples. By this implementation, a proactive approach and better-informed decisions can be taken for mining companies to: a) quantify/improve production and reconciliation results, and b) to supply the right specifications of shipped ore, increasing the value of the Resources. Finally, laboratory results are normally used as an indication of the quality of the information applied for the economic transaction, but it should be considered, clarified and highlighted that the laboratory will only process and analyse a sample obtained from a Sample Station, and potential problems on bias or precision may occur in stages prior to the laboratory reception. Hence the importance of the implementation of a quality assurance program that protects multi-million dollar decisions.

Mar 22, 2022

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By T Purvis

Xstrata Copper is extending the Ernest Henry Mine with a 6 Mtpa sub-level cave (SLC) mine being constructed under the pit. The SLC mine will maintain the EHM operation until 2024 after the pit is completed in August 2011. In February 2008, the first cut of the new underground mine at EHM was fired with the start of an exploration decline. Since then Xstrata Copper has continued the development and construction of a SLC mine. During this process a number of challenges arose, some of which had not been anticipated in the planning stages, that in turn has been addressed to ensure the development continued. The challenges have been many and varied and range from setting up the portal area and commencing the exploration decline development in an active large open pit, to management of underground water. Further challenges were presented by the effects of the GFC on investment recommendations, with the scale of the mine varying from a shaft mine to a smaller scale trucking only mine in mid-2009 and back to the full shaft mine in late 2009. The effect was the parallel development of two separate mining scenarios, with the challenge of maintaining commonality for as long as possible to keep both options alive until the final board approval was obtained. In 2010 the RSPT caused further impacts. This paper will describe the current progress of mine development as well as how the various challenges have been met and some key lessons learnt from these experiences.

Mar 21, 2011