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By P J. Harper

Maximising shareholder value is a widely stated strategic goal of many mining companies. Mining projects can be capital intensive and achieving good returns is essential to encourage future investment in the industry. Despite the widely accepted importance of shareholder value, the minerals industry is often accused of providing relatively poor returns when compared to other industries. There are many recent and well publicised examples of minerals companies that have failed to deliver value to their shareholders. There are numerous business improvement initiatives employed within the mining industry to assist mine operators improve performance. Some are more effective at creating value than others. Benchmarking is one technique that is commonly used to identify performance gaps and target and prioritise opportunities for improvement. However to be effective, Benchmarking must be used appropriately and result in actions that lead to measurable operational improvement. When conducting a Benchmarking project it is important to remember that the aim should be to improve value. For this to be achieved, the strategic goals must be incorporated into the process. This paper details a structured and comprehensive approach to conducting a successful Benchmarking project. Focusing on Benchmarking as a technique for measuring and improving operational performance in underground mines, the underlying drivers of best practice in underground mining are identified.

Jan 1, 2005

Reverse circulation (R.C.) drilling or the dual tube method as it is quite commonly known, has a unique place in conventional mineral drilling. It can be classified half-way between open hole drilling at the lower end of the scale and diamond drilling at the upper end. The system basically consists of two tubes, one inside the other, with compressed air flowing between the inner and outer tubes. Sample cuttings return up the inner tube through the head of the rig and via a hose to a cyclone where the sample is collected. This system means that the cuttings are free of contamination as they are at no time in contact with the outside formation of the hole.Reverse circulation drilling is divided into two areas: R.C. Roller and Blade for softer formations; and R.C. Percussion for harder formations.

Jan 1, 1986

By Neville WE, Parkinson J

One of the earliest recorded risk management schemes was implemented by the boatmen of the Yangtze river some 4,000 years ago.. Between them they arranged for shipments to be split up in such a way that a load was divided five ways: if one was lost, then 80% of the shipment got through. Bottomry contracts were in vogue in Babylonian times with similar systems being used in India, in 60OBC and 4th century Greece. One of the first accepted mutual insurance ideas came in 1835 when a mill owner in America negotiated a lower insurance premium in return for installed fire safety measures. Approximately 20 years ago risk management as a philosophy was developed in the U.S.A., the philosophy followed to England and hence to Australia about 10 years ago. The business climate which induced the philosophy of risk management was that of "tight money". The definition of "assets" was then broadened to include earning capacity, skilled personnel and in a negative sense, a corporation's liabilities. In more affluent days losses were comfortably absorbed into the ongoing business expenses, the more prudent managers took out insurance which "covered everything" at a suitable premium. Statistics are available to indicate that a high percentage, (over 60%) of businesses which suffer massive plant damage due to fire, do not restart operations, or in the event of restarting have closed operations within the next 2 to 3 years - in spite of collecting an insurance payout.

Jan 1, 1986

By J Koppe, J F. Costa

A fundamental error of sampling occurs when a sample is extracted from a larger mass of ore or lot. The act of sampling requires that all particles belonging to the lot have an equal chance of being extracted. This type of sampling is called unbiased sampling. The sampling equipment (herein referred to as the sampler) should be constructed with some additional mechanical characteristics to guarantee that the samples will be unbiased. Samplers, extracting increments from a continuous flow, such as a conveyor belt, collect aliquots at regular time intervals. These time intervals relate to the number of aliquots extracted from a given mass of lot, whilst passing through the continuous flow. The frequency of extractions will influence the precision or the error of the sample (integration error). Further, the ore variability influences the amount collected from the continuous flow. Normally, the sampling protocol utilised is designed for the extractions obtained from the conveyor belt, omitting any error committed during this operation, ie the error of extracting from the continuous flow. This study aims to analyse the error of sampling a continuous flow by using a variogram with added on auxiliary functions. Each different piece of material passing through the flow will exhibit a distinct temporal variogram, which should influence the frequency of the samples being extracted for each chosen sampling error. The methodology used is presented in the form of a case study from a coal processing plant.

Jan 1, 2005

By S E. Box, J L. Mauk

The Middle Proterozoic metasedimentary rocks of the Belt Supergroup contain important metallic mineral deposits like the diagenetic sediment-hosted stratiform copper mineralization, including the Troy (Spar Lake) deposit and the epigenetic hydrothermal veins in the lower Belt and Ravalli Group in the Coeur d'Alene district. Magnetite (Fe3O4) is a common and widespread accessory mineral in these rocks and can have multiple origins including ore stage in deposits, mobilization stage in source rocks, metamorphism of red beds and alteration mineral in thin halos enveloping Ag-rich veins in the Coeur dÆAlene district. As shown in several classic studies, the composition of magnetite from igneous rocks varies significantly in response to controlling factors such as melt composition, temperature, silica activity, and oxygen and sulphur fugacity. Therefore, the distinctively different geologic settings within the Belt Supergroup strongly suggest that there may be differences in the magnetite compositions. However, initial microprobe analyses detected no variation in magnetite composition.   Three possibilities may give an adequate explanation for these initial results: 1.      the magnetite formed primarily as pure Fe3O4, 2.      one or more tectonothermal events led to regional scale re-equilibration that affected all rocks in the field area, and 3.      the variations in the composition are below the detection limit of the microprobe.

Jan 1, 2007

New knowledge has no economic value unless it can be applied, or æcapturedÆ, as the R&D jargon has it. Australia probably spends more than $500 m per year on mineral industry R&D, distributed amongst the mining companies (IR&D Board, 1997), CSIRO, the universities and others. The investors in this research (industry, and the community via government) will expect some sort of return from their investment. The return will be poor unless the know-how developed in R&D programs can be exploited. This paper explores some of the issues involved in capturing the outcomes of mineral industry R&D in a form which can be exploited for economic benefit, and suggests ways in which it might be done better. It is based on the experience of the JKMRC in conducting applied research in mining and mineral processing and delivering it to the industry. It may seem presumptuous for a research contractor to be telling its clients how to do their job. However, the process of developing, acquiring and implementing R&D outcomes has to be a partnership between provider and receiver, in order for this process to work efficiently. This applies whether the two parties operate within a single corporation (a corporate laboratory and a business unit, for example) or are two entirely independent organisations (eg a mining company and a university). Both partners have a role to play, and the best examples of realising the benefits of R&D almost always involve the open-hearted and skilful handling of this synergy.

Jan 1, 1998

Sampling systems are never perfect. They all have some bias and give variable sampling errors. The ways of thinking about bias and precision should be different before and after construction (or reconstruction) of a sampling system. Before a sampling system is constructed, the fundamental error variance can be estimated using GyÆs formula or by doing test work on the material to be sampled. The component of sampling variance which varies with the number of sample increments can be computed for the expected patterns of grade variation. The smallness of the bias can be checked using discrete element modelling, by checking that the proposed design complies with clauses in standards, or by copying an existing sampling system that performs well for similar material. After a system has been constructed, sampling precision can and should be monitored directly. Anyone claiming to take responsibility for a sampling system should know its precision. Bias could be checked by comparison to a more accurate sampling system, such as stopped-belt sampling, under conditions where bias seems most likely. However, it is more practical to conduct regular checks that the system is still operating as designed, that the design is still appropriate despite any changes to material flows, and that sample masses are consistent with the correct operation of the sampling system. If precision is not regularly assessed then it should be assumed to be very poor. If a sampling system is not regularly inspected then it should be assumed to be biased.

Jan 1, 2008

Traditional methods for monitoring, and hence controlling, pyrometallurgical processes rely heavily upon the skill and experience of operators. A skilled operator will usually achieve consistent, though often conservative, results, whilst an un-skilled operator will require considerable time and training to achieve the same results. Semtech Metallurgy AB have demonstrated that continuous and precise control of pyrometallurgical processes can be achieved through on-line analysis of pyrometallurgical flame off-gas using optical spectroscopy. The feasibility of the technology has been demonstrated on a large number of full-scale tests at production plants and by several commercial installations. Evidence suggests that installation of this technology, called Semtech Optical Production Control (OPC), has resulted in considerable economic benefits to the plant efficiency and asset life. These economic benefits are believed to be a direct result of improved objective on-line control. Technically the following benefits have been demonstrated: improved metal grade control, reduced metal losses, reduced processing time, and improved personnel safety. SemtechÆs OPC is a non-intrusive technology which relies on the fact that the composition of the vapour phase above a high temperature melt is closely related to the instantaneous status of the melt. This enables on-line real-time analysis of the furnace melt to accurately determine melt status and in particular reaction endpoints. Originally developed for on-line monitoring of copper converting in a Pierce-Smith vessel the field of applications for the technology is steadily growing. This paper introduces the Semtech OPC technology; discusses various applications and outlines the demonstrated benefits.

Jan 1, 2002

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

For the purpose of this paper the Otago Region is that covered by the Otago Regional Council. This area, like other South Island Regions, has a river system starting in the Mountains and are all gravel bed rivers. The gravel from these rivers has been the major source of aggregate in the region since the development of the province began. The majority of the aggregate is a mix of greywacke, schist and quartz, which will be referred to later with its production problems. The region has been broken down into various areas.

Jan 1, 1992

By James D

Fletcher Challenge Limited through its subsidiary Grampian Mining Co Ltd has carried out an ore evaluation of one of New Zealand's largest known deposits of ilmenite located at Barrytown on the west coast of the -South Island, New Zealand.The ilmenite is located in a beach sand environment which has previously been mined for gold. Two analytical techniques were developed to quantify the resource. Considerable difficulty was experienced in this phase of the evaluation due to the presence of major inclusions within the ilmenite grains. Wet and dry concentration circuits, utilizing spiral, wet magnet, high tension and plate electrostatic separators have been G47designed to produce ilmenite from the ore. Studies to utilize the titanium content of the Barrytown ilmenite have been made. Recent work has been directed towards a titanium dioxide pigment process.

Jan 1, 1986

There is very little in Australian mining law that sets out the rights of mining tenement and exploration licence holders as against other parties who wish to carry out ground or aerial surveillance over those areas.There have already been several legal actions arising out of this lack, and more can be expected as the public places more rigorous constraints on corporate and individual behaviour. Field personnel, who are mainly fairly junior and less experienced, are entitled to some guidance from the minerals industry, guidance which up to now appears to have been either lacking or covering such a wide range of standards from corporation to corporation as to be virtually useless.Because each State writes its own laws there is no consistency, and the laws generally are lagging behind developments in the industry. In particular, the practice of granting mining tenements for sporadic exploration, a practice that is a leftover from much earlier mining law, has dotted the Australian continent with unattended and unmarked or poorly marked tenements that are difficult to find but confer on the holder prior rights to the minerals under them. Entry onto those areas in most jurisdictions is an offence and their existence compromises the efforts of regional explorers.This clearly unsatisfactory situation requires remedying, which is the purpose of these proposals. A more systematic approach to the granting of reconnaissance, regional and detailed exploration, mining, and retention rights will eliminate much of the problem. For the rest, a code of practice needs to be adopted as soon as possible.

Jan 1, 1996

Managing project exposure and risk has numerous viewpoints, including those of engineers, owners, bankers and insurers. Fewer stakeholders are involved in early stages, though with wider risk management techniques and tools available. The costs and sometimes benefits of the occurrence of risk and uncertainty have different contingent outcomes for different stakeholders. For some, the impact of risk outcomes can be mitigated or managed. Some sectors and stakeholders can manage resources project risks more completely, by choice or by externally imposed forces, opportunities and constraints. The core to resources project risk management lies in the identification and analysis of project risks, the examination of project management risk options and alternatives, and the determination of which risks are able to be controlled, managed or laid off to third parties. Without prior risk identification and knowledge, the wildcard of previously unidentified or unconsidered project risk impact has the potential for fatal impact to one or more stakeholders. A range of case studies is reviewed, from exploration projects to development and operating projects, with relevant learning experiences, from the risk management lessons available from the oil and gas sector as well as the mining sector. For many cases, the emphasis focuses on the risk analysis modus operandi and on risk management and risk mitigation techniques that can be and in some cases have recently been implemented for resources project and related debt, capital markets and equity project fundings.

Jan 1, 2003

By L Lorenzen, C Aldrich

In this paper, a neurofuzzy model is proposed for the development of an explanatory model of an industrial gold leach circuit based on historic plant data. A regression tree was used to partition the data in the predictor variable space and the structure of the tree was used as a basis for the derivation of fuzzy rules that could be integrated into a fuzzy expert system useful for operator decision support or process control. The position and shape of the membership functions were optimised with a backpropagation algorithm in a neural network framework. The approach yielded a significantly better explanatory model of the gold losses in the plant than comparable linear models. Although a regression tree could perform somewhat better in accounting for the variance of the dissolved gold losses, the tree was less robust than the fuzzy model.

Jan 1, 2007

The Musselwhite mine, located in northwestern Ontario, Canada, has been an underground narrow-vein gold producer since the spring of 1997. As an exploration project at the feasibility stage, much effort was undertaken to generate a geostatistical resource model that would integrate the orebodyÆs geological features, as well as the controls on mineralisation. Today as an operating mine producing over 200 000 ounces of gold per year, reconciliation studies of the tonnes and grades treated at the mill, with the feasibility model, for longer time periods, and with the grade control models, for shorter time periods, show results that are in good agreement. It was clearly demonstrated with the reconciliation to production, that the key to good reconciliation remains in the proper selection and application of the geological resource estimation method. The application of a grade interpolation technique capable of capturing threedimensionally pertinent geological features, as well as accounting for spatial grade continuity, proved to be successful in the predictability of tonnage and grade at the Musselwhite mine. Along with good mine practices, this approach, which was carried through to the operation, has produced excellent reconciliation results. The ongoing reconciliation studies at Musselwhite allow for a constant revision of the grade estimation strategy. In return, this optimisation process adds value by raising the accuracy level of production expectations. As this is an evolving practice at the mine site, further implementation developments are recommended to integrate these reconciliation procedures on a more regular basis.

Jan 1, 2002

In the mining and minerals industry, development, introduction and construction of new plant designs, to meet sustainability objectives, face a series of major hurdles. Typical are the long investment cycle times, the designer does not normally control the spending (the owner does), and the industry is inherently technologically conservative or risk adverse while accepting the often more significant geological, market and political risks.æSustainable Plant DesignÆ is an approach to plant and facility design that drives the necessary culture change and acceptance by minimising technical risk and maximising potential returns. The approach forces consideration of sustainability objectives and risks early in the project, where cost saving and efficiency improving opportunities can be maximised.In Hatch, we are using three proven tools under the ærisk managementÆ umbrella to drive sustainable development principles into our projects:Sustainable Plant Design, FutureWatchTM Reviews, and Clean Plant DesignTM . These proactive practical, not theoretical, techniques for driving change from within and reducing whole of life cycle costs will be discussed and illustrated with case studies.

Jan 1, 2004

By A I. M Ritchie, G P. Timms

Monitoring of water infiltration into WhiteÆs waste rock dump at the Rum Jungle mine site in the Northern Territory, Australia, started in 1983, and has since produced a unique and long-running data set. Following closure of the uranium mining operations at the site, a soil cover was constructed on the dump in 1984 primarily to reduce water infiltration into, and the quantity of low quality effluent out of, the waste material. The performance of the cover in reducing water infiltration has been monitored using ten lysimeters installed across the dump prior to construction of the cover. Over the past eight years or so, the average infiltration rate as measured by the ten lysimeters appears to have risen compared to the early years of monitoring. The significance of this apparent increase is discussed given the variability observed in the data from individual lysimeters, and the variability in the rainfall. Estimates of the infiltration rate as measured by each of the lysimeters are examined using statistical tools. It is concluded that the infiltration rate has increased with time and with increasing rainfall. The increase with time is a stronger factor than the increase with rainfall. It is further surmised that the cover system at the locations of the lysimeters is less effective now at reducing infiltration into the dump than it was when newly installed.

Jan 1, 2003

By R P. Langford, T A. Moore

Over the last 15 years Indonesia has experienced a surge in coalexploration, which has led to the development of a major export industry. This coal exploration has improved the understanding of the geology of the Indonesian coal deposits. The main economic coal deposits are of Eocene and Miocene to Pliocene age, which mainly occur in Kalimantan and Sumatra and were formed from peat deposits in an equatorial paleoclimate similar to that prevailing today. Some of these peats were domed peats, which grew above the normal water tables, under a climate of year-round rainfall; these peats grew above the level at which waterborne mineral matter can enter the system, resulting in low ash and sulphur, and locally very thick coal. It is believed that such peats have formed the unusually thick, low ash, and low sulphur Miocene coals of Indonesia. Coal deposits of Eocene age are typically characterised by thinner seams, with relatively higher contents of ash and sulphur. The Miocene coals and Eocene coals both appear to have formed in lacustrine, coastal plain or deltaic depositional environments, similar to the modern peat-forming environments of eastern Sumatra and parts of Kalimantan. The Eocene coals formed mainly in extensional tectonic settings. Miocene - Pliocene coal deposits formed in a range of tectonic settings.

Jan 1, 1999

Timely disclosure of information germane to the taking of investment decisions makes an essential contribution to ensuring the growth, efficiency and integrity of our capital markets. It is a core contributor to the maintenance of fair, orderly and transparent markets. Australia has a strategic need to protect and enhance market integrity. Australia is ranked tenth in the Morgan Stanley Capital International (MSCI) World Index, yet represents only 1.59 per cent of that Index. In order to survive and grow in this globally competitive environment, Australian capital markets û the drivers for economic activity in Australia û need to attract foreign investment and engage retail capital. The communication of relevant and comprehensible information to the investor plays a vital part in fostering investor confidence, thereby building depth and liquidity in our market. We have had a rewarding partnership with the mining industry to develop and recognise reporting standards which could allow ready comparability and investor understanding of the mining investment vehicle. Our mining market has been successful because of the high standards of professionalism and the intellectual capital that has been built up among the participants û the mining professionals, brokers, analysts, mining investors, professional advisers and the market operator. The balance of knowledge and understanding among these participants combined with the competition for capital, contributes to the standards for our mining market in a way that the market operator simply cannot replicate by market rules alone.

Jan 1, 2002

By A Crawford, P Manton

Telfer is a gold/copper operation, currently operating one open pit mine and one underground mine. The ore processing plant consists of two parallel trains involving semi-autogenous mill, ball mill and crusher (SABC) grinding, flotation and leaching. Due to receiving relatively high grade underground ore for over half of its total feed, Train 1 frequently experienced cleaning circuit overloading during high production periods. This resulted in losses in recovery and ineffective concentrate upgrade. As a quick and simple solution, the Train 1 copper flotation circuit was reconfigured to send concentrate from the first two rougher cells directly to the final concentrate and return the cleaner scavenger tailings to the third rougher cell. These modifications have resulted in a 1.4 per cent increase in plant copper recovery with no change in final concentrate grade. Preliminary results also indicate gold recovery has increased by more than 1 per cent since the circuit reconfiguration. Other benefits include less spillage, more friendly circuit to operate and a more consistent metallurgical performance. Focus for the next phase of optimisation is on concentrate upgrade. A number of opportunities have been identified and are currently being investigated, including staged reagent addition, single stage cleaning of the first two copper rougher concentrates, regrinding of the remaining copper rougher concentrate prior to cleaning and process control based on a machine vision system.

Jan 1, 2009