Search Documents

By W Mackinnon

Coal mining operations require the expenditure of appreciable start up and working capital in order to produce saleable coal for domestic or export markets. The competitive nature of the coal business restricts margins, and so it is imperative that downside risks, in terms of production outcomes, are minimised. The major risks identified for a coal mining operation, aside from sales volumes and coal price, are generally thought to be confined to the geology of the deposit and the mining process. However, the impact of product quality and yield can be very significant. If product coal is inferior to projections, then it will need to be sold at a discounted price and this can dramatically impact on margins. Equally, if yield is five to ten per cent less than planned, then this will have a huge effect on profitability. This paper will look at issues relating to in situ moisture and density, resource quality evaluation, modelling of washability and dilution, and simulation techniques, and how best practice approaches can be incorporated into mine planning and feasibility studies. Risks are best modelled and understood by adopting a detailed approach that is fully documented and auditable. This is particularly needed for multi-seam and multi-product operations. Once a well defined systematic approach is established the potential risks can be evaluated by testing different scenarios, carrying out sensitivity analyses, variability modelling and examining extreme operating conditions. These have been discussed in the paper, along with some related issues such as the cost of quick fixes and the value of spending a little more in the coal preparation area.

Jan 1, 2003

By P Cameron

The Julius Kruttschnitt Mineral Research Centre (JKMRC) has recently commercialised a variety of new products for the mining industry through its commercial division (JKTech). Although the products cover a wide variety of niche applications, a common thread runs through the Research, Development and Commercialisation (RD and C) process: they have emerged from industry sponsored projects. The development history of JigScan (a control system for the mineral-processing jig) is a good example of how this RD and C process works in practice. It involves building mutually beneficial partnerships between the JKMRC and the mining industry through several incremental projects with one or more industry sponsors. All research projects have objectives to demonstrate but these projects also feature a degree of product development to actively encourage and support the longer-term vision for the mature commercial technology. The process to develop JigScan as a commercial product worked because each incremental project recovered costs, provided an immediate benefit for the sponsor and contributed to the longer-term development objectives of the JKMRC. Integrating development with research need not greatly increase the cost of research objectives generally provides a more robust research outcome for the sponsor and greatly reduces the overall development risk. Successful projects often feature industry mentors actively participating in the RD and C process. Additional funding from government appears to be easier to obtain when such close partnerships with industry are apparent. Finally, the business structure of the JKMRC within the University of Queensland ensures that commercial outcomes, developed within the contractual arrangements of the underlying RD and C projects, are used to benefit and support further RD and C with the mining industry. This paper tells the story of the development and commercialisation of JigScan, and draws conclusions about this kind of RD and C model.

Jan 1, 2000

By C Smith, D Lilly

The Lafarge Marblehead Plant in Marblehead, Ohio, USA produces 4.2 million tonnes of sized aggregate yearly. In 1997, a program was instituted to maximise primary crusher productivity through the optimisation of blasting variables and procedures. A proprietary blasting shot report database and the Lafarge production database was statistically analysed to provide guidance in the program. Blasting powder factor (kg/m3) was the main control variable utilised to increase crusher throughput. In 2005, the program was refined to increase the production of certain high margin aggregate sizes and the reduction of fines. The principal blasting component affecting the percentage of high margin size production appears to be pattern area (burden and spacing area). This can be coupled with powder factor to optimise the production rate of high margin aggregate sizes. The size optimisation program incorporates the blasting shot report database, Lafarge production database, statistical analysis and aggregate sampling. A preliminary indication is that the production of high margin sizes (12.7 mm X 4.8 mm, 24.4 mm X 12.7 mm, and 50 mm X 25.4 mm) has been increased seven to 12 per cent utilising these techniques. As an added benefit, blasting costs have been reduced linearly as burden û spacing pattern areas have increased and powder factors have decreased. The program is ongoing and will investigate other blasting procedures and variables including electronic blasting caps to further increase the production of high margin products. The statistical methods involved in the analysis are described in this article for use in other mines and situations. The methods described can be used to optimise crusher throughput, digging rates and product size.

Jan 1, 2007

Study on the Recovery of Zinc Minerals from the Tailing of a Lead and Zinc Mineral Processing Plant

Sep 13, 2010

By T C. Hunter

There are unique risk factors involved in the development of an Australian uranium project especially by a æjuniorÆ. These encompass a range of political, technical, environmental, regulatory, timing, native title, investor relations and financial issues. The Honeymoon Uranium Project in South Australia is being developed by Southern Cross Resources. The history and experience from a risk viewpoint is detailed and discussed. Particular emphasis is placed upon the practical experience and obstacles overcome to meet project milestones.

Jan 1, 2003

By M Cooksey, Z Zhu, N Langrené, W Chen, T Tarnopolskaya

"Dynamic decision-making can significantly increase the value of mining projects and deliver better sustainability outcomes under conditions of uncertainty. Despite its benefits, dynamic decision-making is rarely used by the mining industry, possibly because of the complexity of the algorithms used to make sequential decisions under uncertainty and difficulties in visualising the optimal strategies. To achieve better outcomes in practice, decision-makers in industry would benefit from a tool that would help them to understand and implement the results of the analysis.CSIRO is developing innovative dynamic decision support tools that include an intuitive graphical display of the boundaries between the regions of different optimal decisions, which would significantly assist optimal sequential decision-making under uncertainty. The dynamic decision support tool is based on novel stochastic optimal control methodologies that can be used to optimise decisions in situations with multiple uncertain variables and decisions (Tarnopolskaya, Chen and Bao, 2015; Chen et al, 2015; Langrené et al, 2015). The types of market uncertainties that can be considered include commodity prices, interest rates and exchange rate, while the key orebody uncertainties include the reserves, boundaries between ore types and even geometallurgical parameters.The dynamic decision support tools have a number of benefits and can be used to:construct optimal operational strategies and to optimally manage resources projectsgain insight into optimal strategies under different market conditions and project settings compare expected project values under different project settings and to select the setting that provides best sustainability outcomes.This extended abstract demonstrates the use and benefits of the dynamic decision support tools using a synthetic case study of a gold mine.CITATION:Chen, W, Langrené, N, Tarnopolskaya, T, Zhu, Z and Cooksey, M, 2016. Dynamic decisions under uncertainty – a case study on a gold mine, in Proceedings Life-of-Mine 2016 Conference, pp 20–23 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 28, 2016

During the 1998/99 Asian crisis Solid Energy's export revenues collapsed from over US$70M to under US$40M. Simultaneously, domestic market uncertainty led to decreases in volumes and prices. A major new underground mine was not technically viable, and was closed, and several other mines were marginal. Less than two years later, Solid Energy and its JV partner closed a second new underground mine. The company was in financial crisis, and reported an $86M loss for 1998/99. After refinancing with stringent workout conditions it still had minimal returns due to low prices, unaffordable transportation costs and huge unrealised FX losses as the NZ dollar fell 40 per cent in value. The obvious scenario was to æcash upÆ û complete extraction at remaining mines, sell off any viable parts of the business, pay off debt and wind the company down.In 2002 Solid Energy has completed its recovery. Although margins remain slim and volatile in both export and domestic markets, it is achieving record volumes and revenues. It has paid off its shareholder loan, has minimal remaining FX losses, and cashflow is allowing further mine and infrastructure development. The key to the turnaround has been implementation of rigorous planning, analysis and decision-making in all aspects of the business. The company has a comprehensive, rolling 20-year plan used annually to update rolling five year and annual business plans. Solid Energy augments strong line management operations with rigorous standards and processes for mine planning and development, operational decision-making, and functional support. Detailed, quantitative risk analysis is used in all aspects of the business and allows comprehensive integration of opportunity and risk management across all activities in the company.Coal mining is widely perceived as an æold-economyÆ industry. But, like other successful æold economyÆ companies, the information systems and management processes used by Solid Energy are as leading edge as any in the high-tech sector. They are the key to managing to add and sustain maximum value for a company that has access to coal resources sufficient for hundreds of years.

Jan 1, 2002

By W F. Bawden, J T. Paynter

This investigation involves laboratory testing and stability analysis of paste fill at the Golden Giant Mine. Site-cast samples are tested in unconfined, confined, and consolidated-undrained triaxial compression. Pore pressures during shear and consolidation characteristics are measured to determine both drained and undrained shear strength parameters and assess the potential for undrained loading. Liquefaction potential is also considered. A limit equilibrium solution is used to obtain factors of safety against failure of the fill during mining of adjacent stopes.

Jan 1, 1998

Stawell Gold Mines Pty Ltd operates two underground decline mines within the township of Stawell. An active exploration program and commitment by owners to improving the ore reserves has led to an improved mine life and reduced operating costs since the purchase of the operation by Mining Project Investors and Pittston Mineral Ventures in late-1992. Over the past six years of operation a cumulative 1 150 000 ounces of gold have been added to the mineral inventory. An improved geological understanding of the orebody has evolved over time increasing the ore reserves and allowing the development of long-term plans for the mines future. This has enabled important capital decisions to be made providing the impetus for improved productivity and thereby reduced operating costs. Co-operative mine planning and mine geology utilising best practice geological systems have enabled the effective extraction of a structurally complex and mineralogically varied deposit within a rural Victorian township. Detailed metallurgical research has improved the function of an aged and poorly designed circuit to boost the mill capacity whilst also improving the metallurgical recovery. The combination of metallurgical expertise and an understanding of the geological setting enable an effective control of metallurgical recovery.

Jan 1, 2000

This paper summarises the current status of the mining sector in Poland in terms of vertical transport system safety. Selected results of research programs conducted at the AGH-UST relating to mine hoist system safety are reviewed. The conclusions support the notion that the costs of vertical transport systems can be reduced, while at the same time maintaining the required safety and reliability levels. Novel solutions: movable fender beams HWR, linings modar« and the integrated shock absorbers PHH for conveyance guiding systems fully confirm this hypothesis.

Jan 1, 2005

It is usually the case that the short-term plannerÆs role is occupied by the younger site mining engineer. ThatÆs because mine scheduling is generally seen as a mundane and thankless task. But, short-term planners play an extremely important role in maximising the value of the mining resource, generally the companyÆs biggest asset. A look at any mining operation today will expose the competing drivers behind the operational and strategic plans. Operations are too often faced with pushing short-term constraints. It is the responsibility of the short-term engineer to answer the question of æWhere to next?Æ. In answering this question the young mining engineer is in an environment overflowing with urgency and constraints. Hasty decisions made at this time may have significant adverse consequences to the long-term value of the resource. Long-term strategy must address a broad and expanding number of issues that are generally overlooked by the short-term planner. It takes a holistic, rather than the prescriptive approach of short-term planning to determine the best strategic direction for the operation. To better understand the consequences of decisions made at the operational level short-term planners need better vision of the whole business. The key to improving the mining business is a planning process that integrates the short-term planners role with the overall mining strategy. Future developments in the mine planning process will focus on bridging this ædisconnectÆ between the operational objectives and the long-term goals. Improvements will come from the tools which planning engineerÆs use, and the planning methodology surrounding them. There will be significant hardware improvements to improve the speed with which a short-term planner can evaluate plausible options. Software that maximises the use of the improved hardware will be developed. Complimenting these technological improvements, conceptual methodologies of mine planning will improve to allow strategic planning to be brought within the focus of the short-term planning engineer. In todayÆs mining industry the young mining engineer is embarking on a career where business processes are paramount. This paper discusses the ædisconnectÆ that occurs today between the operational planning and long-term strategy and how this is driving developments in mine planning today.

Jan 1, 2003

By B R. Olsson, N Marinopoulos

To establish the design and the capacity of the Stanwell Magnesium Plant, Australian Magnesium Corporation Ltd (AMC) with Fluor Australia has modelled the operation of the magnesium plant using ARENA Simulation Modelling. The reliability model has been used to evaluate: surge capacities required between different sections of the plant; critical equipment requiring standby capacity; the number of trains required for different sections of the plant; and potential capital cost reduction options. The reliability model was established using the detailed Process Flow Diagrams, reliability information from literature and maintenance, operation and start-up experience from the Demonstration Plant. The model was run with different plant configurations to assist AMC in determining the most effective configuration to provide the production capacity at the lowest capital cost. The model was not only able to confirm the plant capacity to the independent technical expert but was able to minimise quantitative risk by minimising the quantities of hazardous materials on site. Fluor Australia provided the ARENA simulation expertise and has used this software for optimising new plant design and to establish improvements in operating plants. Reliability modelling is a normal feature of chemical plant design but is rarely used in the resource industry. The experience gained by AMC in the modelling system has indicated that metallurgical plant design can be improved by the application of reliability modelling.

Jan 1, 2002

By G De Tomi, R Sousa, A Lapworth

One of the current challenges for iron ore producers is the ability to respond to changes in ROM stockpile specifications in a quick and cost-efficient manner. The decision-making process to respond to such changes is normally associated with grade-control and short-term mine planning activities, from where new operating instructions to the mine are provided. Mines are under increasing pressure from changes in the industry, such as a scarcity of skilled staff; a higher turnover of skilled employees and tighter product specifications. The quality of operational activities easily suffers as a result of these pressures. The technology that supports operational activities is often poorly implemented, which results in systems being unsustainable and poorly understood by the organisation. All successful technology implementations rely on the people, processes and technologies involved being well understood. Because of the complex nature of mining, the processes that underpin mine planning, scheduling and operational control are often not well defined. This results in activities undertaken by individual departments being poorly integrated. Datamine has developed a set of tools and methods for decomposing; capturing and documenting processes and ensuring those are embodied in implemented solutions. A case study of such a solution is the GEROS planning system, which has been successfully implemented at CVRDÆs Southern Iron Ore System, in Minas Gerais, Brazil.

Jan 1, 2005

Concepts of facies are of proven worth in sedimentology, but have hitherto received little attention from volcanologists. The time is now ripe to develop facies schemes for volcanic products. This paper discusses possible facies applicable specifically to lava flows and ignimbrites, the intention being to explore possible approaches to the problem of recogniz- ing volcanic facies rather than attempting to develop a comprehensive facies scheme

Jan 1, 1987

The weathering of different types of base metal deposits in the semi-arid environment of the Lachlan Fold Belt of western New South Wales affects the geochemistry of outcropping ironstones (gossans) and derived soils. W eathering of the pyrite- and pyrrhotite-rich mineralisation at the Elura Zn-Pb-Ag deposit leads to highly acidic conditions and strong depletion of Cd and Zn throughout the profile. There are local attainments of high concentrations of Ag, As, Ba, Cu, Hg, Pb, Sb and Sn in the profile and As, Ba, Pb and Sb are still highly anomalous in surficial material (ironstone and soil). However, at Parkers Hill, in the Mineral Hill Field, the primary Zn-Pb mineralisation is pyrite-poor and so weathering is not as acidic as at Elura. Thus, although Ag, As, Cd, Cu, Sb and Zn may be concentrated at various levels in the Parkers Hill weathering profile, Cu and Zn (as well as As, Pb and Sb) are retained in surficial ironstones in essentially the same abundances as in primary mineralisation. Thus, variations in the suite of geochemical indicators present in ironstones and residual soils are likely to reflect differences in the original mineralogy and the degree of acidity produced during the weathering of base metal mineralisation. Hence, an understanding of weathering processes is necessary to fully interpret exploration geochemical data.

Jan 1, 2004

By M Nehring, M Kizil, P Knights

Mining and beneficiation can be described as sequential processes of separation of valuable minerals from waste. There is a great deal of interest in how the industry can be more effective – and efficient – with these processes. In particular, many mining companies are looking towards digital technologies to improve precision mining practices; that is, the targeted identification and separation of valuable ore from waste during the mining process. Greater precision will help unlock the value in many complex orebodies that are currently considered Tier 2 or 3 deposits. CITATION: Knights, P, Kizil, M and Nehring, M, 2018. Selection of precision surface mining methods for complex metalliferous orebodies, in Proceedings Complex Orebodies Conference 2018, pp 31–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

At Bulong, the mineralised (>0.8 per cent nickel) ore exists within numerous lithologies, which can and do occur coincidently. It is very important to discriminate between the different host units for estimation purposes, stockpiling and scheduling. This allocation of host unit has relied upon visual interpretation by the geologist recording the information, which can be very subjective by its nature. By using quantified constraints, such as assayed magnesium oxide and iron, the subjectivity of describing the host material of nickel laterite ore is reduced. The constraints permit consistent identification of the various host units, which improves the confidence in the overall estimation and scheduling of the ore.

Jan 1, 2000

By T Iwadachi, T Fujisawa an, G R. Alvear

A large amount of Be2C and BeO is formed during the Cu-Be alloy production process, because beryllium is a highly reactive element. Carbide and oxide formation impairs the production yield and the quality of the Cu-Be alloy products, and therefore should be minimised. As a first step for solving these problems in the process, the following thermodynamic properties of the Cu-Be-C-O system were investigated. Based on the results, the equilibrium relations of the Cu-Be-C-O system were clarified and the operational conditions of the current Cu-Be alloy production process were also examined and discussed.

Jan 1, 2000

By S Jahanshahi, T Norgate

In single stage copper making appreciable amounts of copper report to the slag phase. Various strategies are available to minimise copper losses to the slag. However a slag treatment stage is likely to be required in an economically viable process. A number of slag treatment process options are available and include: flotation, leaching and thermal reduction. In the design of an industrial process some type of economic as well as technical analysis of these options will be required. In this paper an outline of the techno-economic analysis procedure used to design a single stage copper making process is presented. The calculated operating and capital costs of industrial copper making processes are compared and used to determine the optimum single stage copper making flowsheet. The most economic slag treatment options is flotation of slags containing low amounts of copper.

Jan 1, 2000

By G C. Kiel, G J. Nicholson

Corporate governance has never been more topical. A glance at any major newspaper or business publication will reveal a litany of corporate failures based upon the governance of the organisations involved (eg Byrne, 2002; Hayes, 2002; The Economist, 2002). The increased compliance requirements and speculative nature of our industry means that corporate governance systems are, if anything, more important than in the general business community (Arthur, 2001). Rather than focus exclusively on the contribution of governance to corporate failure within the mining industry, however, our objective in this paper is to examine how boards can add value to the corporations that they govern. In order to highlight how a board can add value to a company, we commence by outlining the role of the board in the modern corporation in general and the mining industry in particular. We then introduce the concept of shareholder value and identify the steps on which a board needs to focus to enhance shareholder value through value tracking processes. Our discussion pays particular attention to the importance of organisational culture to the companyÆs activities and utilises three case studies from the mining industry. We conclude with an overview of what mining boards can do to enhance their culture and drive performance changes for the benefit of the companies they govern.

Jan 1, 2002