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Many aspects of best practice resource evaluation do not create value, but poor practice can certainly destroy value. Generally companies prefer to present how their good practice adds value and for this reason few publications exist on examples of how poor practice can destroy value. However in big and small companies there are many previous and current examples of poor practice destroying value. The incremental expenditure required to move from poor practice towards best practice can be looked upon as insurance against destroying shareholder value. Examples of how poor practice in geology has destroyed value are presented as well as the improvement model used by BHP Billiton to add value and insure against destroying value.

Jan 1, 2002

By Gabriella Mendez

Worthy of note in Miss Bailey's paper are her comments on the attitudes of mining companies and their managers where women were employed, she says, "..another possible pitfall is reverse discrimination where in an effort to avoid being branded as having shown a person favouritism, supervisors end up treating the person in a manner much less than they deserve. This is manifested in denying an employee such things as challenging work, educational opportunities, promotions, or in the case of staff, fair merit increases." and further she says, "It has been observed that the treatment of women in non-traditional roles such as mining is different than for men in the same environment. There are people who treat women worse and some who treat them better simply because they are of the other sex." These statements may sound unjustified to today's audience, and whilst we need to credit pioneering women with having tolerated, understood and worked towards improving the mining culture, the move towards total inclusion of women in the workplace is still growing.

Jan 1, 1995

By R MacGillivray

The Golden Cross mine was an open-pit and underground gold and silver operation from December 1991 to April 1998. Closure of the mine has been based on an approach agreed among stakeholders. The initial phase was the release of a closure plan which was regarded as the blueprint for the following phases and the closure works required to implement the plan. The second phase involved lodgment of consent applications and their granting for the final water management configuration. The final phase is monitoring, confirmation that the site is performing as required by the closure plan and consents and settlement of final ownership, management and surety arrangements. Industry best practice modelling techniques have been used to finalise closure design and have been shown to be good predictors of site water management and discharge performance. Site discharges are in compliance with toxicology based water quality criteria for the protection of aquatic life and most discharges from the site, including those from the closed cyanide-tailings facility, can now be discharged without further active intervention or treatment.

Jan 1, 2002

By Q-c Li, G-l Gao

Cyanided tailings produced by gold processing operations may cause environmental problems, because they contain pollutants such as arsenic, sulfur and cyanide compounds. Moreover, tailings containing economic metals such as Au, Ag, Cu, Pb and Zn, are potentially valuable resources. In this article, cyanided tailings are catalytically oxidised by nitric acid in the presence of air or oxygen. The resulting solids may be leached to recover Au and Ag. The solution can be used to prepare ferric sulfate or iron pigment. Gases released in the reactions were recycled and reused by oxidation and absorption. All of these greatly improve metal recovery and the reuse prospects of cyanided tailings. Under the following conditions where the initial temperature of oxidation is 80¦C; initial concentration of nitric acid is 30 per cent (by weight); feed proportion (nitric acid to cyanide tailings mass ratio) is 3:1 and reaction time is two hours, the conversion ratio of cyanided tailings is 90.06 per cent. At the same time pyrite in the cyanided tailings is oxidised effectively, gold recovery is as high as 92.3 per cent and nitric acid loss per cycle is only five per cent because of NOx recovery.

Jan 1, 2007

The Argyle AK1 Pit has been operating and producing over 25 per cent of the worldÆs diamonds by volume for over 20 years. The mining boom in Western Australia is creating upward cost pressures to ArgyleÆs mining operation while the price received for its product remains flat in comparison to many other Western Australian commodities. This incongruity, which when combined with other circumstances such as the pit being close to the end of its mine life, a decline in head grades and a tightening in operational constraints caused by the pitÆs maturity, is causing the leadership team at the mine to utilise innovative strategies in order to ensure that the open pit continues to perform economically until its final closure in late 2010. The strategies that will be discussed in this paper are step change business improvement methods, localisation of the workforce, employment of Aboriginal people and the use of a clear and concise consultation process in order to provide certainty to a workforce working in a pit during boom times where pit closure is imminent.

Jan 1, 2007

The first thing to be aware of is that the warming effect of carbon dioxide is strongly logarithmic. Of the 3¦ that carbon dioxide contributes to the greenhouse effect, the first 20 ppm has a greater effect than the following 400 ppm. By the time we get to the current level of 384 ppm, each 100 ppm increment will produce only about 0.1¦ of warming. With atmospheric carbon dioxide rising at about 2 ppm per annum, temperature will rise at 0.1¦ every 50 years for the next couple of hundred years before the effect becomes minuscule. The warming of the 20th century, as the Earth came out of the Little Ice Age, was a consequence of short, high-amplitude solar cycles. A number of solar physicists have predicted that the next solar cycle, Solar Cycle 24, will be quite weak. Based on the correlation between solar activity and the EarthÆs climate, a temperature decline of 2¦C is predicted for the mid-latitude regions over the coming decade, equating to the experience of the Dalton Minimum. Anthropogenic warming due to carbon dioxide will not ameliorate this temperature decline. Increased atmospheric carbon dioxide is wholly beneficial due to itÆs fertilisation effect. Efforts to inhibit Australian carbon dioxide emissions are exactly wrong in science.

Jan 1, 2009

By B J. van Loggerenberg

The capital cost of major items of mining equipment is very high. The operating cost of such equipment is also high. It is therefore important that such expensive equipment is used productively. To this end mine management uses production data systems and management accounting systems to monitor events and provide data for analysis to enable management to make operating and business optimisation decisions. This could be done better if there was an understanding of productivity in terms of its utilisation and efficiency components. What has been missing has been a methodology to properly account for the productivity of equipment in terms of its contribution in dollars to the costs and profit of the mine. An explanation of the Productivity Accounting methodology will be given. It will then be shown that productivity has two components, that of capacity utilisation and efficiency. These are defined and the dollar contribution of each to costs and profit shown. The efficiency component tracks the effect of proportional changes in input cost quantities used in the mining process as mining production changes. The capacity utilisation component tracks the effect of step changes in the input cost quantities used in the mining process as mining production changes.

Jan 1, 2003

The End of the Line for Roadway Development By Michael Kelly, CSIRO Exploration & Mining Michael Kelly highlighted that roadway development performance remains one of the threats to expansion of Australia underground coal exports to the growing Asian market. In a recent industry study, automation was highlighted as one of seven strategies for roadway development improvement. Growing Asian markets The expansion of the Asian coal market is a long term driver for expansion of the underground coal industry in Australia - if significant productivity improvements are made. Imports of steaming coal by Asian APEC members are predicted to rise by from 150 MT to 190 MT. Australia is one of the few countries which has a potential capacity larger than predicted internal needs. Predictions are for exports of black steaming coal from Australia to increase from 50.3 MT in 1992 to 106.3 MT in 2010. To meet this prediction, an investment of $10.7 billion (in 1992 dollars) will have to be made in mining and transport facilities. This is equivalent to the opening of a major new mine each year until 2010. Many of these mines will be underground operations. However, much of Australia's capacity to respond to increased Asian demand will depend on its ability to develop underground technologies and improve productivity. The inability to make sustained improvements in roadway development rates has to date been one of the main reasons why new underground projects have failed to deliver the expected returns.

Jan 1, 1997

By T Nixon

A common problem for many mines is insufficient total primary airflow or insufficient airflow in the correct places as the mine changes over its life. This has a number of impacts on the business operation and may result in the need for a major and unexpected capital upgrade of the system, cancellation of a planned production increase, reduction in production targets, increased operating costs, failure to provide contracted metals to customers or acceptance of substandard conditions in the workplace. In some cases, it can even result in premature closure of the mine. In recent times, higher metal prices have given an expected economic boost to many mines, potentially prolonging their life but simultaneously requiring the mine to develop to deeper depths or requiring assets such as shafts and fans to have their service life extended. Insufficient primary airflow is a particular problem in deeper mines as the ventilation circuits become longer, more convoluted, have higher shock losses and the actual airflow requirements increase due to a combination of leakage, dispersion of the workings and the problems of managing the additional heat loads due to higher virgin rock temperatures and autocompression. This paper discusses the reasons why mines experience unexpected shortfalls in primary ventilation capacity with its associated impacts on metal targets, profits and frequently on the health, safety and morale of the workforce, as well as its productivity.

Jan 1, 2008

This short paper outlines the authorÆs views regarding the progress we have made as an industry in managing mining assets over the past 500 years. It represents a personal view û but one founded in fact-based observations of mining companies and of the mining industry in general. There is no doubt that AgricolaÆs views as expressed in De Re Metallica (1556) were visionary. There is also little doubt regarding another issue û that whilst a great deal has been learnt about the management of mines since AgricolaÆs time, observations suggest that best practice management is the exception rather than the rule across our industry. Although insights regarding the successful management of mines have become apparent, we still witness unnecessary errors in our industry that lead to the loss of shareholdersÆ funds. By highlighting some aspects of current best practice, particularly in the arena of operations management, it is hoped that this short paper contributes a small step along the next 500-year-long learning curve. The paper concludes with a brief description of the progress and impact of continuous improvement initiatives at Kalgoorlie Consolidated Gold Mines (KCGM). Located in the Kalgoorlie Goldfields, KCGM is currently AustraliaÆs largest gold mine producing over 800 000 ounces of gold per annum. Improvement initiatives at KCGM look set to deliver some $100 million in value over life-of-mine.

Jan 1, 2004

By B Leyland

The media in Australia is currently rife with articles and pronouncements on global warming as the most significant crisis of our time, which may æthreaten the future of civilisation as we know itÆ. This has been recently reinforced by release of Al GoreÆs film æAn Inconvenient TruthÆ, and one would be led to believe that the science of global warming is settled. And yet there is a strong body of literature disputing this apparent consensus which suggests that care should be exercised in introducing radical policies to solve a crisis which may not be real. Such policies would have a major impact on those in professions such as engineering (project approvals and design to minimise greenhouse gas emissions), accounting (carbon tax issues) and the law (corporate disputes on greenhouse gas issues are already in train in the USA). This paper addresses the hysteria apparent in the climate change debate by presenting factual evidence relating to climate change and the current phase of mild global warming. Some of the more extreme statements on future impacts are repudiated with published data, and alternatives to the purported role of fossil fuels in temperature change are offered. The potential impact of political decisions on professional activity is discussed, as are the implications of a possible future reversal of the scientific consensus, as has occurred in the past. The paper concludes with a call for the professions to exercise their Learned Society role to ensure that a rational and public debate is held on the broad issue of climate change.

Jan 1, 2007

Downstream value-adding is a strategic issue for a country like Australia, which has a resources-driven sector of a scale that has significant impact on the national economy. The question of why producers are not doing more to ævalue-addÆ is often asked. In Australia this debate takes place within the context of: an era of unprecedented growth in demand for resources driven by the rapid urbanisation of China, India and others;impending legislation and uncertainty around carbon pricing;rapidly rising energy costs;significant supply-side shortages including infrastructure, skills and manufacturing capacity; andsignificant industry consolidation of primary resource producers with commensurate improvements in market power.There are several examples of resource-based industries which have developed their business along the complete value-chain; for example large oil and gas producers successfully span upstream and downstream operations including refining and petro-chemicals as well as retail distribution of fuel and other products. Relevant frameworks that provide insight and understanding into the strategic issues around value-adding are reviewed and examples of the application of these frameworks to companies and industries which have successfully adopted a strategy of integrating along the value-chain, as well as those players who have focused on parts of the value-chain are presented. The issues around value-adding in Australia are then reviewed with reference to these frameworks and it is concluded that the issue is a conflict between the objective companies who wish to maximise financial value versus the desire of governments to increase economic benefits. An approach to aligning these objectives is proposed.

Jan 1, 2008

By M Kuruppu

The paper explores the sustainability of the Australian mining industry, and the potential for application of a substitute fuel into existing mining operations. This alternative fuel biodiesel is produced from biological oils and not from refined hydrocarbons like the transport fuel diesel (petrodiesel). The fuel is compatible with all current diesel equipment with little to no modification and has many superior properties. As biodiesel is derived from biological sources it is æcarbon neutralÆ meaning there is no net carbon addition to the atmosphere when the fuel is burned. The current fuel, petrodiesel releases long stored carbon dioxide (CO2) and is of concern to Australian government targets which seek to reduce these emissions. The mining industryÆs unique reliance on petrodiesel is of particular interest when assessing the substitution of biodiesel into underground and open cut operations. The underground benefits of biodiesel see a reduction in the noxious emissions of carbon monoxide and diesel particulate matter, both contaminants which require extensive diluting ventilation to ensure safe levels. As biodiesel is both safer to store due to its higher flash point and produces less exhaust emissions, its occupational health and safety benefits in underground mines is clear. The use of biodiesel in open cut mines benefits the environmental sustainability aspects of the project. The formulation of national targets relating to carbon dioxide emission reductions promotes any measure to reduce CO2 within the mining environment. As the diesel engine is one of the least emission efficient (kWh/tonne CO2) energy sources on-site, its potential for reduction in CO2 at minimal cost is the greatest. By substituting the fuel, significant quantities of site emissions are reduced, thereby achieving the goals of improved site sustainability and the governmentÆs targets to reduce emissions. This aspect of gauging mutually beneficial relationship regarding government interests and mining industry profitability is the underlying outcome for this paper.

Jan 1, 2009

By B Roberts

The Department of Industry and Resources (DoIR) is responsible for several sets of legislation, which, among other things, regulate the storage, handling and transport of dangerous goods as well as every aspect of the life cycle of explosives in order to prevent explosions, fires and spillages. The legislation with particular relevance to explosives includes: The Explosives and Dangerous Goods Act 1961; the act deals with the storage, manufacture, sale, import, authorisation and use of explosives. It is primarily framed for use of explosives and fireworks in the general community but also has relevance for storage on mine sites. The Dangerous Goods (Transport) Act 1998; this act regulates the transport of explosives on public roads, but not on mine sites. The Mines Safety and Inspection Act 1994 (MSI Act); this act and supporting regulations deal with the full spectrum of occupational health and safety in the mining industry. There is a substantial section in the regulations dealing with the use of explosives at a mine site.DoIR has identified the need for security upgrades of the Government Explosives Reserves, the need to tighten security measures at mine sites, the need for improved security checking for licensed shotfirers and the need to restrict the availability of explosives to authorised people who have had appropriate security checks. It is also clear that we need restrictions on the sale and use of ammonium nitrate (AN). A number of additional security measures are being proposed and all proposals are being refined by ongoing industry consultations. These will be adopted into new explosives regulations in association with the new Dangerous Goods Safety Act 2002 (DGS Act). Government finalised the act in June 2004. The act remains dormant until new explosives and dangerous goods regulations have been prepared. When the DGS Act and a suite of regulations are proclaimed as a package, sometime between December 2004 and April 2005, the old legislation consisting of the current two acts, will be automatically repealed. It is also proposed that all explosive regulation, including those under the MSI Act will be consolidated in one place under the DGS Act for user friendliness.

Jan 1, 2004

This paper passes on some personal insights into what helps to make a well-executed feasibility study. Lessons learned are illustrated with examples from the authorÆs experience. Lessons include the place of the preliminary feasibility study, credibility, ore reserves, the use of expert consultants, responsibilities and challenges for the ownerÆs representative, technical tools for the study manager, the human side of project organisation and dealing with technical auditors.

Jan 1, 1998

Two continuous computer controlled, remote air analysis (RAA) systems operate at The Zinc Corporation, Limited (ZC) to give early warning in case of an underground fire at ZC or New Broken Hill Consolidated Limited (NBHC) mines. Air drawn from underground sampling points via a tube bundle system is analysed for carbon monoxide and carbon dioxide. An alarm is sounded if the concentrations of these gases exceed bench mark figures.

Jan 1, 1983

As the awareness and concerns on subsidence issues increase, there are clear, challenging and credible community expectations for responsible mining, public safety, optimal resource recovery and effective land use and environmental management, coinciding with a changing and strengthening regulatory environment being implemented by the NSW Government. This paper discusses a number of areas where cultural changes in the mining industry will assist with improved subsidence management to meet the enhanced standard.

Jan 1, 2003

Rocks of all geological ages are present on the Australian continent. As a result of its geological heritage, Australia is richly endowed with mineral and energy resources. Due in part to its enormous mineral wealth, the nation is in the position of being a wealthy country surrounded by less developed countries of the Asian and Pacific region. Over many years Australia has developed and gained valuable experience in the exploration, mining and processing of a wide range of mineral and energy resources. In an interdependent world community, it is obviously in Australia's interest to cooperate and provide assistance in geoscience education and training to developing countries of the region.

Jan 1, 1986

By E P. Leite, L A. Magalhpes

The Amazon Craton is one of the largest cratonic areas and comprises one of the est-endowed metallogenic provinces in the world. It hosts a number of different ore deposit types for which a variety of mineral exploration data are presently available at various scales and formats. These data, however, are not properly organised nor integrated by means of advanced spatial analysis tools. In this view, here we present a suite of neural network methods that were applied to these data, providing unprecedented mineral potential scenarios for several precious and base metals in the region. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

During the period May to July 2003, East Mine overcored and recovered from goaf edges a total of 55 1.8 metre CVX grade bolts to analyse installation quality. Some 95 per cent of the pneumatically (hand-held Gophers) installed bolts show gloving, with 75 per cent showing gloving of at least one-third of the effective bolt length. Hydraulically installed (continuous miner-mounted bolting rigs) bolts show in some areas less gloving but do have significant unencapsulation lengths. Trials of newly developed bolt end profiles show considerable improvements in eliminating gloving but do show variable and unacceptable variations of unencapsulation.

Jan 1, 2003