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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

By P Kappen, R N. Collins, K M. Spiers

X-ray absorption spectroscopy (XAS) is a synchrotron-only technique used to determine chemical speciation, providing a powerful alternative to most traditional ‘wet chemistry’ and lab-based speciation methods. XAS is an element specific method that can be used to address a variety of systems, ranging from heterogeneous to homogeneous, polycrystalline to amorphous, and solid to liquid. The strength of XAS in identifying and managing chemical species in tailings and mine waste is demonstrated, with the presentation of highly relevant studies into lead, uranium, chromium and arsenic speciation. In each example, waste samples are compared with known standards, allowing an assessment to be made of the quantity of particular chemical species in each.CITATION:Spiers, K M, Collins, R N and Kappen, P, 2015. ‘Forget the wet chemistry’ – how the Australian Synchrotron can help with tailings and mine waste management, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 145–148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By Stanojevic R, McGlinn PJ, Day RA, Levins DM

This paper reports the results of a number of studies that Ansto has carried out for mineral sands companies concerned about low-levels of naturally-occurring radioactivity in their products. Where measured levels of radioactivity have exceeded allowable levels, Ansto has used specialised techniques to identify the source and distribution of the radioactivity and investigated processing strategies to remove the Contamination.

Jan 1, 1993

The primary objective of designing, constructing, commissioning and operating a technically and economically viable processing plant cannot be achieved without a rigorous scientific understanding of the chemical principles underlying every facet of the total flowsheet, from feed preparation through to a final product. Having developed a thorough understanding of the chemistry involved, the next challenge is to match the innovative advances with the necessary engineering skills. In simple terms, there is little point in proposing a new processing route if it is not possible or practical to design, construct, commission and operate it. Thus to achieve our objective, it is necessary that processing facilities that are both smarter and cheaper be developed. This presentation highlights a number of the more significant research and development activities that are designed to facilitate the conversion of a smart idea into a real process. Following a brief discussion of several examples, the presentation concludes with the observation that a pro-active team approach is almost mandatory in order to achieve an acceptable outcome.

Jan 1, 2000

By Mine F. J, Woods P. H

Waste waters from mine sites may be screened for all constituents of significance as a first step in establishing water quality criteria for protection of aquatic ecosystems. Inductively-coupled plasma mass spectrometry (ICP-MS) offers the capability to screen water samples and digest solutions for virtually all elements in the periodic table. This technique is therefore able to identify elements whose concentrations are elevated in waste waters and may be rarely present in background surface or ground waters. Such elements may be present in waters at only a few ¦g/L. ICP-MS has sufficient sensitivity to detect sub-¦g/L or even ng/L levels of many elements. Waste waters from most mining activities in the Northern Territory have been examined by ICP-MS. The concentration data provide the basis of a contaminant data base. The data can show specific tracers in the ore or mineral itself, subsequently found in waste water. An example is the presence of rhenium in uranium ore. Such trace elements may be present in soluble or insoluble chemical forms and are more useful as indicators when soluble and exemplifying conservative chemical behaviour. The approach described, based on ICP-MS screening of mine site waste waters, together with general physico-chemical variables, provides the most comprehensive means yet available of selecting variables for monitoring programs and ensures that key elements and/or their chemical species are not excluded from monitoring programs.

Jan 1, 1994

By P J Savory

Ranger is a uranium mining operation located within one of the most environmentally sensitive regions of Australia. Geology has played an important role in mine planning, operations and rehabilitation since discovery of the deposits 25 years ago. The Ranger orebodies have a reserve total of 166 300 tonnes of U308 including 90 400 tonnes of U308 at North Ranger. At current milling rates these reserves give a mine life greater than 40 years. The uranium is hosted in Lower Proterozoic rocks of the Cahill I ormation and is associated with strong chlorite alteration. In pit grade control involves the use of calibrated probes and a radiometric truck discriminator allowing fast, accurate grade determination of material. Ore is defined at a cut-off grade of 0.2 per cent U308. Mineralised material is defined by the Uranium Mining (Environmental Control) Act 1979 (UMEC Act) at a grade of 0.02 per cent U30s. Natural water levels in the #1 Pit area vary as much as 7.5 metres between wet and dry seasons. Ground water inflow into the pit during the dry season is 600 m3/day. No significant slope failures have occurred in the pit. The environmental impact of mining operations is constantly monitored. Rehabilitation of non-mineralised stockpiles is ongoing. This paper discusses the interaction between geology, hydrogeology, rock mechanics and grade control with the present mining operation.

Jan 1, 1994

By G J. Harbort, V Lawson, L Reemeyer

The Jameson Cell is a high intensity flotation device, which utilises induced air from the atmosphere. It was developed jointly by Mount Isa Mines and Professor Graeme Jameson of the University of Newcastle in the 1980s. It is proven to generate fine bubbles, in the order of 300 to 500 ¦m, in a high intensity, high shear and compact zone contained in the downcomer. This aerated mixture exits the downcomer into the pulp zone, which is the quiescent mineral and gangue separation zone. A number of Australian base metal flotation circuits feature a reverse flotation stage at the head of the circuit. Testwork and plant operating data has shown that the use of a Jameson Cell in the prefloat cleaner application has further improved prefloat gangue recovery and selectivity. Operation of a Jameson Cell in a carbonaceous/pyrite prefloat cleaner duty at the Mt Isa copper concentrator increased copper recovery and reduced pyrite in the copper concentrate. Testwork at Zinifex Century Zinc Mine showed a decrease in zinc losses by the utilisation of Jameson Cell prefloat cleaner. Appraisal of a Jameson Cell in a scalping role within the Mt Isa Copper Concentrator indicated significant benefits could be achieved.

Jan 1, 2005

By J O. Watson, V S. Vutukuri

This paper presents results of an investigation on acoustic emission characteristics of granite, sandstone and rock-like material in the unconfined compression and tensile tests. Both the acoustic emission signature and stress-stain curve are analysed in the experiments.The experimental results show that different acoustic emission characteristics are observed at different stress and deformation stages in unconfined compression and tensile testing. Extensive and unstable acoustic emission changes may be interpreted as indicating failure of the rock.

Jan 1, 1999

By S Bluhm, R Funnell

Creative mine-designs are constantly being applied in the deep platinum mining industry in South Africa. Recently, this has resulted in deep hot mine-designs including room and pillar, bord and pillar or stall and pillar layouts and the use of in-stope trackless mechanisation. In these mines, the ventilation systems use refrigerated air and high fan pressures and as a result ventilation leakage can have a huge impact. Leakage is a serious impediment to cost-effective operation and potential leakage in future projects is a major factor in judging project viability. This paper describes certain mine layouts and quantifies the extent of the leakage. Based on typical field data, a range of seals from ævery poorÆ to ævery goodÆ was defined and used to estimate overall leakage. Within these mine networks the ventilation pressure, temperature and density all vary significantly and with the multiplicity of leakage paths it was necessary to make use of the VUMA-network simulation package. For the examples examined, the leakage was found to be up to 85 per cent for æpoorÆ category seals and up to 50 per cent for ægoodÆ category seals. The total air flow (and refrigeration) requirements grow exponentially with strike distance due to the compounding effects of higher pressure and more leakage paths. It is shown that beyond certain depths and strike distances the leakage will become so great that it will be impossible to operate cost-effectively û even with ægoodÆ seals. Indeed, in these examples the projects were not considered viable in their original format because of the high ventilation-cooling costs and the mine-designs were modified to include footwall drive systems û the cost of which was justified by the reduced strategic risk to operating ineffectiveness due to leakage.

Jan 1, 2005

By N Steenkamp, L Furstenberg, W Cele, M Richter

Managing productivity and improving efficiency for a healthy return on capital employed have become key mining industry strategies under prevailing tough global market conditions. However, achieving this in a multisystem environment such as a mining operation can be daunting. The field of discrete event simulation offers some relief, giving engineering teams insight into multivariable systems and stochastic processes. It allows for integrated system thinking and domain expertise to be woven into project thinking fibre. Directed system optimisation and therefore improved efficiency becomes possible. Furthermore, capital discipline accrues from optimal upgrade investments. This paper illustrates the practical application of this approach by reviewing a typical case study for a direct shipping iron ore operation. Dynamic simulation was used to establish maximum processing plant capacity under varying material characteristics and identify capital-efficient upgrades for increasing production.The study started with descriptive statistical analysis of existing data. Discrete equipment and system capacities were defined, followed by static plant mass balance calculations to establish bottlenecks and overall static capacity. Equipment ‘uptime’ and ‘downtime’ analyses established system and overall plant availability and utilisation. From this information, a dynamic simulation model could then be developed and initially calibrated against actual plant performance to verify its robustness. Once confirmed to accurately represent existing plant dynamics, system capacity response to variable changes could be tested to ultimately determine maximum plant capacity. Additionally, plant optimisation was incorporated to arrive at optimal upgrade points. Maximum capacity and necessary upgrades were established as a function primarily of feed size distribution. Additionally, the interfacing effects of rehandling feed material to the final product grade and potentially to life-of-mine were established as important outcomes. The results of the study illustrate the value of using dynamic simulation models to realistically and cost-effectively increase throughput.CITATION:Cele, W, Furstenberg, L, Richter, M and Steenkamp, N, 2015. Capacity evaluation of iron ore processing facilities utilising dynamic simulations, in Proceedings Iron Ore 2015, pp 597–604 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

The old Trekelano mining area is situated in the Cloncurry Gold and Mineral Field 14 km east-south-east of Duchess. It connected with the main Cloncurry-Dajarra railway line by a private line from Juenburra, a distance of 10 km. The distance by rail from Townsville is 561 km. The area was first mentioned circa 1902 - 1903 when a very short report said, that a Tony Allis had taken a parcel of copper ore out of a mine which, he called æThe InheritedÆ. After that report, nothing further was printed until about 1906, when traces of copper were noticed on a wagon track going to Kiama Well. The Trekelano deposit did not outcrop, with the cap covered by about two metres of soil. The deposit was named after an early pastoral holding. The early prospectors were however disappointed by TrekelanoÆs low copper grades, approximately five per cent Cu. This is understandable when, in those days, about 25 per cent was the cut-off grade for mines in the district. Meanwhile, The Hampden Mining and Smelting Company were constructing a smelter to treat their sulphide ores at Kuradala that was replacing their high grade oxides ore. By about 1910, the Hampden Mining and Smelting Company was experiencing smelting problems, and needed suitable oxidised copper ore to blend with the Kuradala pyritic ore. Someone must have remembered the Trekelano low-grade oxides, resulting in agreement to mine and cart the ore to Duchess, from where it was railed to Hampden, as Kuradala was known at that time.

Jan 1, 1998

By C Hall, K Williams, B Keogh, S Wong

Cannington mine is a silver lead zinc operation located in north west Queensland. The operation has been in production since 1997. Ore is primarily moved through an underground material handling system comprising of a crusher, conveyor and hoist. The underground crusher and conveyor system were sited in lower grade ore when the mine was first commissioned. As Cannington is now a mature operation, this ore is considered run of mine and stoping progressed into the crusher exclusion zone. As the stoping fronts advanced there was increased damage on the crusher chamber and infrastructure. In response to monitoring data, the crusher monitoring system was significantly upgraded in 2016. The monitoring system included rock mass and infrastructure instrumentation. It improved the understanding of stress impacts and mechanisms driving the damage within the chamber. It allowed the site geotechnical team to respond to changes utilising ground support, mining sequences and increased levels of monitoring. As stoping and damage to the rock mass continued, so did the process of responding to monitoring data. Ultimately, the monitoring system enabled a safe and controlled closure of the chamber. CITATION:Williams, K, Keogh, B, Hall, C and Wong, S, 2018. Monitoring as an input to support and sequence design, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 446–452 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By G N. Musafer, M H. Thompson, R C. Wolff, E Kozan

The most important aspect of modelling a geological variable, such as metal grade, is the spatial correlation. Spatial correlation describes the relationship between realisations of a geological variable sampled at different locations. Any method for spatially modelling such a variable should be capable of accurately estimating the true spatial correlation. Conventional kriged models are the most commonly used in mining for estimating grade or other variables at unsampled locations, and these models use the variogram or covariance function to model the spatial correlations in the process of estimation. However, this usage assumes the relationships of the observations of the variable of interest at nearby locations are only influenced by the vector distance between the locations. This means that these models assume linear spatial correlation of grade. In reality, the relationship with an observation of grade at a nearby location may be influenced by both distance between the locations and the value of the observations (ie non-linear spatial correlation, such as may exist for variables of interest in geometallurgy). Hence this may lead to inaccurate estimation of the ore reserve if a kriged model is used for estimating grade of unsampled locations when non-linear spatial correlation is present. Copula-based methods, which are widely used in financial and actuarial modelling to quantify the non-linear dependence structures, may offer a solution. This method was introduced by Bßrdossy and Li (2008) to geostatistical modelling to quantify the non-linear spatial dependence structure in a groundwater quality measurement network. Their copula-based spatial modelling is applied in this research paper to estimate the grade of 3D blocks. Furthermore, real-world mining data is used to validate this model. These copula-based grade estimates are compared with the results of conventional ordinary and lognormal kriging to present the reliability of this method.CITATION:Musafer, G N, Thompson, M H, Kozan, E and Wolff, R C, 2013. Copula-based spatial modelling of geometallurgical variables, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 239-246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

Electronic Detonators have made significant strides over the last few years, both in quality of product and performance in different blast applications. The precision and flexibility of the SMARTDET units provides the mines with a powerful means of controlling blast results, giving both cost and productivity improvements. The SMARTDET Electronic Detonator System, robust and easy to use, has been successfully deployed over the last 18 months in improving mine productivity and creating safer working conditions in both quarrying and long-hole stoping. The key to the improvements has been the precision and flexibility of the electronic timing, and the ability of the mine personnel to grasp the concept quickly and use it effectively.

Jan 1, 1999

Mining the Carpathia orebody at the Ardlethan tin mine in the late 1970s involved an innovative approach to underground mining which stretched the limits of drilling and blasting techniques. Holes of up to 95 m in length were drilled and blasted from the surface to extract an orebody which extended from 45 m to approximately 95 m below surface. This approach resulted in the elimination of an underground drilling sublevel, thus minimising the costs and hazards associated with underground drilling and blasting. Now, almost 30 years on, this method would probably still be the most appropriate choice.

Jan 1, 2008

In the mid-1990s, after a long period of antipathy between the company and its detractors, Rio Tinto embarked upon an ambitious cultural change program that sought to transform the fundamental basis of its relationship with global, national and local stakeholders. This has evolved into a broader pursuit of positive cultural change within Rio Tinto as part of the mining industryÆs Sustainable Development initiative. Initially driven from the top down, the communities component of this program comprises an architecture of policies, value statements, social research and verification systems. The commitment to better community relationships is best exemplified in Australia by the scope and scale of the GroupÆs Aboriginal land access agreements, community development programs and the work of the Rio Tinto Aboriginal Foundation. While collectively these form the core elements of an evolving set of internal social competencies, development of second-tier competencies is required to organically embed a culture of sustainable relationships with local and regional communities. Second-tier competencies will include appreciation of social dynamics, social science and diversity at middle management level; rigorous social research that properly informs development options for companies and host communities; career paths and recognition within the mining industry for young professionals both generally and from stakeholder communities; proper community-needs assessments, research into such things as purchasing power and other economics data, and inventories of public goods such as land-carrying capacity and water availability. Without this information it is difficult to gain an appreciation of and to alert people to the consequences of change brought on by a mine. The next decade will see second-tier social competencies promoted within successful mining companies. Measures to achieve this include a range of Human Resource (HR) incentives such as recruitment and career advancement based on broad competencies rather than narrow technical proficiency, humanities training for mining professionals and performance rewards that recognise social competence. A sustainable future for mining in a globally connected social landscape requires selection of people who can listen, relate and act in an open social system. The challenge for the mining industry, its professional organisations and educational institutions is to acknowledge this and develop these new aspects of mining industry professionalism. This cannot be left to individual companies if the industry is to have a sustainable future.

Jan 1, 2002

By E Yurakov, D J. Ashelford, M I. Slate

The push for increasing coal production rates continues to place increasing demands on mine management to safely and effectively control seam gas. Gas drainage strategies applied vary in both effectiveness and form. Methods employed are a function of assessed risk, gas reservoir characteristics, surface and underground access, budgetary constraints and gas utilisation potential. With the aim of establishing and optimising the effectiveness and efficiency of gas drainage systems, Australian coal miners in cooperation with gas management specialists are embracing the use of gas reservoir simulators and gas emission models. This paper discusses the evolution of gas drainage practices in Australian underground coal mines and the role of gas reservoir assessment methods in optimising gas drainage systems and gas production forecasts.

Jan 1, 2005

By Jiaxin Zhou

Acid mine drainage is a serious and chronic environmental problem of mining. This paper discusses the factors affecting the rate of acid generation by mine rocks and illustrates the relevance of these factors to the mines of the Northern Territory, Australia. The factors may be divided into two groups: internal factors and external factors. The first group covers characteristics of ores, mine waste rocks, tailings, etc and the second group covers surrounding conditions. The latter is further divided into four sub-groups, viz surrounding temperature and pressure, chemical conditions (ferrous/ferric adsorption ratio, total iron concentration, oxygen concentration and pH), surrounding biological conditions and mechanical conditions. Special attention is given to the surrounding P-T conditions, especially water partial pressure, and its relevance to the Northern Territory mines.

Jan 1, 1994

By S K. Michelic, N Preisser

For certain applications, steels have to feature a very distinct and well-defined level of cleanness in terms of the number and composition of non-metallic inclusions. Therefore, one crucial aspect of steelmaking is removing and controlling said non-metallic inclusions during the process. Particle removal during ladle refining comprises three stages, namely: 1. Flotation 2. Transport through the steel/slag interface 3. Dissolution of the particle in the slag. Only if all three stages are completed the particle can be considered as fully removed from the steel melt which, in turn, leads to the slag being one of the most influential parameters for inclusion removal and control. Depending on the composition of the particles and the slag, the dissolution can be controlled by different mechanisms. This study focuses on the diffusion-controlled dissolution of solid oxidic particles in slags. For this, a model of particle dissolution has been developed. For modelling diffusion, either the differential equation following Fick’s second law can be solved, or an analytical solution to this equation valid for stationary interfaces can be used. Both approaches allow for calculations of concentration profiles of the dissolving species in surrounding slag. From this, the mass flux can be derived, which finally leads to calculating the boundary layer velocity due to considerations of mass balance. In this work, both methods as well as results of dissolution experiments using High Temperature Confocal Scanning Laser Microscopy are compared. This research aims to provide a framework for diffusion-based dissolution modelling in further expanding the understanding of particle dissolution in secondary metallurgy.

Aug 21, 2024

By M Simanjuntak, A M. Supomo

PT Freeport IndonesiaÆs copper/gold operation disposes of approximately 222 000 dry metric tonnes of tailings per day via two thickeners. Reduction of the flocculant dosage rates in each of the tailing thickeners has been achieved with the installation of Clarometers«, modifications to the existing operating DCS control strategy and a change in plant flocculant. This has reduced the flocculant consumption rate in the last twelve months by approximately 20 per cent. It has also highlighted the disparity in the settling rates of the two thickeners. Collaborative efforts between Cytec technical site engineers and Freeport operational personnel have made possible the overall gains achieved in the tailings thickener optimisation.

Jan 1, 2003