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Over the last three decades, the mining industry has been moving towards more underground mechanized mining methods and the number of LHD vehicles utilised has increased. The growth of mechanization and automation has benefited both workers and the mining companies. However, due to the design of the LHD vehicle and the limitations of the operating environment, restrictions to operator visibility are inevitable. The inability of the equipment operator to see clearly (i.e. people, objects or hazards) around the machine has contributed to a number of accidents including fatal injuries. In order to identify vehicle design characteristics resulting in restricted and blocked sightlines, visibility assessments for existing machines are traditionally completed in the field using a light filament technique. Past researchers have used the light filament technique to collect obscuration zones around the equipment and to produce a 2D chart of this information. The 2D shadow diagrams have proved to be useful in highlighting potential equipment problems and have been performed repeatedly to show the potential of redesigning a part of the LHD for improving visibility. The light filament method involves manually collecting data and requires a level of judgment to be used. As a result the method is susceptible to errors and requires around three hours to complete. The objective of the current research is twofold; firstly to develop a rapid method for field visibility data collection using a laser scanner and secondly to compare results of repeat tests for both light filament and laser scanning methods. A MENSI GS100 laser scanner along with Pointscape and 3Dipsos software has been used to collect visibility information and process the data. The research aims to develop the laser scanner as a technique to rapidly evaluate the visibility profile of an LHD vehicle. Machine design changes can then be assessed quickly using these results.

May 1, 2004

By M. M. Wong

Beryllium possesses attractive properties for use in the nuclear and space fields. Since fused-salt electrorefining can be employed to produce this metal in high-purity form from low-grade or scrap metals, the Bureau of Mines investigated electrorefining of beryllium in electrolytes composed of a LiC1-KC1 eutectic mixture plus varying amounts of BeC12. Results showed a 99- percent or better reduction of oxygen and magnesium and a substantial reduction of other minor metallic impurities. Extremely pure beryllium metal was produced. Operating variables, including BeCl2 concentration in the bath (3.5 to 16.5 mole-percent), temperature of operation (450° to 550° C.), and cathode current density (45 to 770 a,/sq, ft.), were studied; their effects on the deposition of metal, working condition of the bath, and purity of the refined metal are discussed. The safety precautions used in handling beryllium in the laboratory are also described.

Jan 1, 1962

By L Baumgardner, A. V. Castelli

Barite In 1987, United States mine production of barite increased 15.870, consumption (sold or used by grinding plants) increased by 6.97, and imports are estimated to have fallen by 19.57. World mine production decreased by 137, according to the US Bureau of Mines. The value of US produced barite, fob mine, decreased 1.4%, according to the Bureau. The declared value for cif US port of all imported unground barite during the first 10 months of 1987 decreased from $39.02/t ($35.40 per st) to $37.16/t ($33.71 per st), the Bureau stated. Nevada continued to be the leading US producer of' barite with 637r of the total. It is followed by Georgia, Missouri, California, Tennessee, and Montana. The Bureau of Mines estimates 657 of the US mine production was used as a weighting agent in drilling fluids. The remaining 35°/r was used in barium chemicals, glass or as a filler. Most of the production from Missouri, Georgia, and Tennessee was used in the non-oilfield sector. This sector continued to increase. Of the total consumption (used by grinding plants and chemical manufacturers), it is estimated that 8070 was used in drilling fluids and 2017( in the non-oilfield sector - barium chemicals and fillers in paper, plastics, and glass. The tonnage consumed in the drilling fluids market increased slightly. But the average number of rotary rigs operating decreased from 964 in 1986 to 936 in 1987. This is the lowest number of operating rigs reported since 1949. The increase in consumption in this sector is due to an increase of rigs operating in the US Gulf and other higher consumption areas over 1986. Crude barite imports were estimated to be down by 19.5% in 1987. Still, they accounted for 637 of the barite consumed in the US. During the first 10 months, China continued to be the leading exporter to the US with 86.970, followed by Mexico with 10.997, and Morocco 2.107(. About 5Y of the imported ore was used in the nonoilfield sector. Ground barite imports dropped from 19.8 kt to 8.8 kt (21,800 st to 9800 st) in 1987. Of this amount, 1.4 kt (1598 st) was used in drilling muds and the remainder of the non-oilfield use. During 1987, a few more grinding plants that supplied the drilling fluid market were closed. Along the US Gulf Coast, there are 13 operating plants versus a high of 31 in 1981. Cameron Offshore reopened its grinding plant at Cameron, LA. New Riverside Ochre Co. of Cartersville, GA, purchased a jigging-washing plant in Missouri and plans to place it in operation this year on a new deposit near Cartersville, GA. Milpark purchased Hughes Drilling Fluid in 1987 and operates under Milpark. US mine production will probably stay about the same as 1987. Price increases in the 10 % range for imported ore are expected due to water freight and the weak dollar. Baker Hughes estimates the average number of operating rotary rigs at 1070. A slight increase is expected in the non-drilling fluid market (chemicals, glass, and filler). Bauxite and alumina L. Baumgardner, US Bureau of Mines Domestic bauxite production in 1987, expressed as dried equivalent, was 581 kt (640,400 st), a 14% increase over 1986. US mine production amounted to less than 170 of total world production. Virtually none of the domestic bauxite was consumed in the production of primary alumina metal. About 30% of the bauxite produced by US mines was calcined to produce 117 kt (128,970 st) for use in abrasives, catalysts, chemicals, proppants, and refractories. Most of the uncalcined bauxite was refined to specialty aluminum oxide (alumina) forms. Metallurgical grade bauxite was imported from 10 countries in 1987. Principal suppliers of the 9.8 Mt (10.8 million st) were Guinea (4270), Jamaica (3501,), Australia (127), and Brazil (57). The average value, delivered U.S. ports, cif, as reported to US Customs Service, was $29.50/t ($26.76 per st). Calcined refractory grade baux-

Jan 6, 1988

By Michelle Stokes, Alexandra Miller, Campbell McKenzie

"The ancestral Ringarooma River in northeast Tasmania has transported alluvial tin and other heavy minerals from their onshore source of stanniferous Devonian granites downstream into what is now Ringarooma Bay. Previous exploration work has demonstrated the presence of potentially economic tin mineralisation within the palaeochannels and terraces associated with the submerged river.The offshore tin resource lies directly on the seabed or with less than 2 m of overburden, and within 5 - 50 m water depths in the wider bay area. The main river channel continues offshore for at least 13 km, with high tin grades found within the palaeochannel but also dispersed across the sea floor as a sheet wash, a result of Quaternary sea level change reworking the placer deposits. This drowned portion of the coastal plain contains a continuation of rich tin leads as low gradient anastomosing channels, and has been delineated by marine seismic and drilling activity since the 1960s. Tin grades in the Tertiary and Quaternary alluvial profiles vary from 50 - 300 g/m3, with the highest concentrations in the coarser basal horizons. A previous offshore explorer estimated a resource of 194 Mm3 at 150 - 250 g/m3.Kenex Ltd created 3D models of the paleochannels and the mineralisation with the aim of better constraining the resource estimate and identifying additional depositional areas. The modelling was undertaken with the input of geophysical data, bathymetry and geochemical sampling of the seabed surface and from historic offshore drill holes. A prospectivity model covering Ringarooma Bay was produced to target tin-bearing gravels. Predictive maps were created to represent various features of the offshore mineral system, including assessing gradient changes in palaeochannels and their sinuosity. The model identifies areas with higher potential for alluvial tin mineralisation and will be used to focus the exploration programme over tenements currently held by Kenex Ltd."

Sep 1, 2014

By L. D. Keller

The application of hydraulic concentration to large scale operations has been effectively accomplished by the use of the SiphonSizer. Operation has been simple, automatic and essentially trouble free. The use of the primary desliming SiphonSizer on magnetic taconites has shown an improvement in grade of concentrate and an increase in recovery over conventional hydroseparators. Magnetic concentrates have been further deslimed and upgraded in SiphonSizers by floating a coarse middling product away from the heavier concentrate. The application of the Siphon-sizer to closed circuit grinding has met with only partial success to date. Hydraulic concentration of minerals has been practiced for a good many years. Until recently, however, the practice has been limited to equipment using a multiplicity of small pockets and relatively low tonnages and flows. The adaptation of the SiphonSizer to the concentration and classification of magnetite has changed this concept. Some fifty commercial units varying in size from a 16-ft diam circular unit to a 25x100-ft rectangular unit are currently in operation on magnetic taconites. Additional units up to 38 ft diam are under construction. Depending upon the application in the flowsheet, upgrading varies from 0.75% to 14% Fe in a single stage. To those not familiar with taconite processing, the importance of the struggle to remove economically as much silica as possible may not be fully appreciated. Perhaps some figures pertaining to transportation costs will underscore this important process. If the silica content of the concentrate from a 10,000,000 ton per year plant could be reduced by I%, a savings in boat freight, at $2.00 per ton, would amount to $200,000 annually! THE SlPHONSlZER The SiphonSizer, as illustrated in Figs. lA, 1B and 2, is a hydraulic classifier in which the hydraulic water is distributed uniformly across the bottom of the vessel by means of a system of headers (1 and 2), jet pipes (3), and nozzles (4). The depth of the teeter bed is automatically maintained by the siphon-float assembly. The feed is introduced through a feed well (5) and separated into two fractions by the effects of rising water and the density of the teetered bed. The magnetite fraction is discharged by the siphon (12) while the fine slime and light middling overflow a peripheral weir (9) to the overflow launder (6). The bed depth is controlled automatically by float valves (7), which are responsive to changes in the height of clear water supported in the superelevation tubes (8) by the density of the teetered bed. On top of the float (7) is a needle valve (10) which permits

Jan 1, 1963

By T. M. Ruff, W. G. McCoy, M. J. Beus, S. Iverson, W. Hasz

Technology to enhance safety during mine hoisting has been developed by researchers at the Spokane Research Laboratory of the National Institute for Occupational Safety and Health. Assessment of current hoisting technology suggests that monitoring conveyance position and load directly from the skip or cage top offers several significant safety advantages. Wireless data transmission schemes and a package consisting of sensors, batteries, and a charger mounted on the wire rope and skip have been developed. A state-of-the-art automated hoisting test facility was constructed to test the concept in a controlled laboratory setting. Field tests in a fill-size shaft are underway.

By H. Appiah

Small scale mining (SSM) has been going on for a long time in Ghana. SSM was legalized by the PNDC Law 218, 1989. Since then there have been numerous gains from the SSM industry. The SSM is organized locally by the concession owner who engages people to work for the gold which he buys. Small scale miners (SSMs) use crudely made sluices in Ghana and, therefore, their production falls below what is expected. The SSMs work in groups and not as cooperatives, as they do in Brazil and other Latin American countries. Legalization of SSM has curbed gold smuggling considerably because a gold marketing entity is available. SSM poses certain environmental problems like pollution of water bodies and soils by mercury and indiscriminate digging of pits.

Jan 1, 1998

By John J. Henn

An economic evaluation was made of the Bureau of Mines incinerator residue separation process to update the one published in 1971 to a mid-1.974 cost basis. This evaluation includes a modification of the glass-recovery operation used In the original plant design as well as a unit to bale the ferrous scrap product before shipment. Products from the plant are ferrous metal, aluminum and copper-zinc scrap, and a mixed-color glass cullet. The estimated capital and operating costs for four plant sizes are as follows : [ ] The operating costs do not include credits for recovered metals and glass.

Jan 1, 1975

By R. S. Montgomery

Laboratory experiments simulating rock drilling were conducted on a number of commercial grades of tungsten carbide in order to determine their wear rates when they are used as inserts in percussive rock drill bits. The test rock was Barre granite and tests were made at conditions similar to those of the carbide buttons near the periphery of a large, down-hole, button bit. In addition, some wear rate measurements were made at a low blow energy. Wear rates of these carbide buttons were an extremely sensitive function of their cobalt contents and hardnesses and were proportional to e-°.57Hup to a hardness of about 91 RA. The point of minimum wear rate, which occurs at about 92 RA, corresponds to the point of maximum compressive strength. Modern percussive rock drill bits have inserts of cemented tungsten carbide on their wear faces. These inserts have drastically reduced bit wear in comparison to that of earlier all steel bits. The most common cemented carbide grade used in percussive rock drill bits contains about ten weight percent cobalt, although grades containing more or less cobalt are also used. Contrary to the case with carbide in metal-cutting tools, alloying materials are rarely used in mining grades. There are a number of designs of rock bits in current use. The most common form is an X bit which has four chisel-form radial wings. The button bit is another important design and one which has been recently developed. This design uses a flat steel face studded with relatively small hemispherically tipped carbide buttons. These types are illustrated in Fig. 1. Studies have been made of the sliding wear of cemented tungsten carbide on rock 1-4 and multiple-impact fracture', 5-6, b~t there has been comparatively little published on the percussive wear of this material although the wear of the impact face is the most important. There is some available data on the rate of dulling of rock bit inserts in actual drilling 7 but no laboratory studies. Sliding wear studies are useful for understanding the wear of coal and mineral cutting tools and gauge wear of percussive drill bits. but the

Jan 1, 1970

By Anton Gronningsater

AS we know, Sir Henry Bessemer introduced Bessemer converting in the steel industry about 1855. It was not until twenty years later that the principles were adopted by non-ferrous metallurgists. In 1880, Manés first produced blister copper from matte in a converter, a very important forward step in copper metallurgy. For thirty years, up to about 1910, bessemerizing of copper matte was carried out in the acid-lined converter. It is not necessary here to enumerate all the shortcomings of that operation, one of which was that it strictly limited the grade of matte that could be treated; a 35 per cent matte was low in those days. From the early days of copper converting, many and repeated attempts were made to use a basic converter lining, and the older metallurgists will remember the numerous reports and discussions in connection with such experiments. These make interesting reading. I quote from a book published in 1900: ?'The siliceous lining is as much a part of the process of copper converting as magnesia lining is in the basic bessemer treatment of phosphoric iron, and it is suicidal to attempt any other kind of lining, either water-jacketed or basic.' "Even if the silica could be introduced in this way (through the tuyeres), it would still produce another trouble in the converter. The small particles of silica, being cold, would combine very imperfectly with the iron oxide and produce granulated and pasty slags, which could not be skimmed or poured out of the vessel".

Jan 1, 1942

By S Jahanshahi, D R. Swinbourne

The classical metal-slag-gas equilibrium technique was used to study the thermodynamic activity of cobalt, iron and their oxides in iron silicate based slags containing under controlled oxygen potential (3.70 x 10-8 to 2.95 x 10-7 atm) at 1573 K. The measured activity of cobalt oxide in FeOx-25 wt per cent SiO2 slags showed positive deviation from ideal behaviour for melts with up to ten wt per cent CoO. At higher silica contents, the behaviour became closer to ideal and in accord with previous studies on silica saturated slags. The activity coefficient of FeO in these slags had virtually no dependence on the CoO content. Partial substitution of silica by lime resulted in an increase of the activities and activity coefficients of CoO, FeO, Fe2O3 and Fe3O4. The results indicate that saturation of the slag with a magnetite phase occurs at CaO contents of five wt per cent and higher. Phase equilibria studies SiO2-FeO-Fe2O3-CaO slags containing cobalt were also carried out using the drop-quench technique. Results from these experiments confirmed the formation of a magnetite solid solution containing about three wt per cent CoO at lime contents of five wt per cent and higher at 1573 K and 2.9 x 10-7 atm of oxygen.

Jan 1, 2000

By R. E. Brewer

A critical review of the numerous test methods that have been devised for measuring the "plastic" and "swelling" properties of bituminous coking coals and the practical evaluation of the data obtained has long been needed. The author appreciates fully, first, the arduous problem of doing justice to the merits and limitations of the many original test methods and their manifold modifications and, second, the more difficult task of interpreting the test data obtained in their practical applications to the important problems involved in the coking process. It has been the constant aim of the author to point out the broader significance of the test principles employed in the different classes of test methods and the usefulness of the test data obtained in relation to the problem of coking bituminous coals, rather than to stimulate unduly a controversial criticism of the merits and limitations of any particular class of test methods or of individual test methods devised by different workers. The task has been quite difficult because of the almost total lack of accepted test standards and specifications.

Jan 1, 1942

By B Murphy

Traditionally comminution optimisation has been focused on energy minimisation, whereas flotation optimisation has been focused on recovery improvement. One of the largest, if not the largest, operating cost over the life of a flotation circuit is electrical energy. With increasing pressure on operators to lower production costs and the cost of energy increasing, reducing the energy consumption of the flotation circuit can be beneficial to site economics. This paper reviews the use of energy by mechanically agitated flotation machines and discusses the measurement and benchmarking of energy consumption in modern flotation concentrators. Opportunities for improving flotation energy efficiency are also identified.CITATION:Murphy, B, 2013. Flotation energy consumption and opportunities for improvement, in Proceedings MetPlant 2013 , pp 399-412 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By Kristen E. Coose

Concrete is a mixture of a fine aggregate (sand), a coarse aggregate (gravel), cement, and water. Cement itself is the most expensive of the ingredients but generally amounts to only about 10% of the concrete mixture. Cement raw materials include calcium, alumina, iron oxide, silica, and gypsum. They are heated and chemically changed into clinker "minerals," which are then ground and shipped as cement. Each of the four main clinker minerals-tricalcium silicate, dicalcium silicate, tricalcium aluminate, and tetracalcium aluminoferrite-impart specific strength and compositional properties to the final concrete product. During hydration of the cement, chemical changes produce new minerals that include calcium silicate hydrate gel (C-S-H, the main constituent of hydrated cement paste), calcium hydroxide, and calcium, sodium, potassium, and sulfate ions, among others. Two main reactions can occur that may be deleterious to concrete. Normal cement pore solutions, in a hydrated cement, contain sodium hydroxide and potassium hydroxide. If these alkali concentrations are too high, they can react with the siliceous aggregate (alkali-silica reaction, or ASR) to form an alkali-rich calcium silicate hydrate gel (C-N+K-S-H), which, upon prolonged contact with water, can expand to crack the concrete. The other deleterious reaction occurs when the mineral ettringite (Ca6A12(S04)3OH12. 26H20) forms after the concrete is hardened (delayed ettringite formation) and cracks the concrete. Many of the concrete bridges and structures built in New Mexico in the past 20 years are in need of replacement due to deterioration. Many others constructed very early on in the century are still sound. By collecting and analyzing samples of both old and new concrete and good and bad concrete, we compared their differences on both a microscopic and macroscopic scale. Samples taken from concrete sidewalks, parking lots, drainage canals, spillways, and a railroad-trestle foundation have construction dates that range from 1923 to 1997. They were analyzed by electron microprobe and by petrographic microscopy. Cracks, air voids, and aggregate alteration were primary locations for investigation and analysis. Using the electron microprobe, ettringite was found in voids of most of the samples, both in good and bad concrete. This leads us to believe that ettringite formation is not causing distress in the concrete. There was one exception in which ettringite was found lining a crack. In this instance, ettringite may have the ability to further the cracking and cause distress. No alkali-silica gel was identified with the microprobe. Using the petrographic microscope in cross-polarized light, a light-brown material was observed that lined some of the air voids and cracks; however, exact mineralogic identifications were not made. Although many instances of chalcedony and other deleterious quartz phases were found, no clear evidence of ASR-gel deterioration was present in our samples using these methods. However, positive identification of the ASR gel was made on an in-place concrete near one of our sample sites and in several sample cores using a newly developed chemical test for the soluble potassium ions associated with the gel. The chemical used in this test is sodium cobaltinitrite, Na3Co(NO2)6.

Jan 1, 1999

By Donald B. Lindsay

A new concept was proposed for a personal warning device for use by miners who may be exposed to health hazards from inhalation of alpha-emitting radionuclides, especially radon-222 and its short-lived daughters. Two successive prototype models of the proposed instrument were designed, fabricated and tested. The Personal Alpha Alarm, in its final form, weighs less than 90 g (3 ounces), and can easily he mounted on a miner's safety cap. It is powered r, by electricity drawn from the cap-lamp battery, and consumes less than 100 n A at 4VDC. It is entirely passive and has no moving parts. Alpha-radiation originating in the air around it is detected by a 5 cm2-area semiconductor-type sensor that was developed especially for this purpose. The presence of alpharadiation in the air is communicated to the wearer by means of a small flashing light-a light-emitting diode-clipped to the brim of the safety cap. When the intensity of alpha-radiation exceeds a predetermined threshold, the flashing mode changes to a continuous illumination, thus providing an alarm signal to the wearer. Because the detector senses all alpha-emitters in the air, including 222Rn, it is not able to measure Working Levels accurately. For its intended purpose, however, which is to give a timely warning of excessive levels (several times the normal control level) of radon and/or radon daughters in an individual's air environment, the Personal Alpha Alarm is expected to be a useful instrument.

Jan 1, 1978

After a stagnant performance in 1982, gross national product (GNP), industrial production, and employment increased during 1983 in nearly all industrial nations, with the U.S. performance generally leading the uneven worldwide recovery. Real U.S. GNP increased 3.3 percent in 1983 (table I). Although investment in nonresidential structures declined, total nonresidential fixed investment in the United States was up 1.5 percent following a 1982 decrease. The increase in worldwide industrial activity and demand in 1983 put greater pressure on prices in many countries. Prices increased from less than 3 percent in the Federal Republic of Germany, Japan, the Nether-lands, and Switzerland to as much as 10 percent in nearly all the other Organization for Economic Cooperation and Development nations. The annual inflation rate in the United States was 4.3 percent (based on the GNP fixed-weight price index).

Jan 1, 1984

By A T. Yuniar, C A. Brannon, N D. Pascoe, H H. Firdausi

This paper describes the key components of the Grasberg Block Cave (GBC) mine design and the development and construction status of the mine. Drawpoint production from GBC will be initiated in 2018 following the closure of the Grasberg open pit. Full production of 160 000 t/d is planned for 2024, which will make it a 20-year time period between initial access development in 2004 and full production.Diluted ore reserves are about 1 Bt at a grade of 1.0 per cent Cu and 0.78 g/t Au. The mine plans some 2400 drawpoints on a 20 m × 30 m drawbell spacing in a 700 000 m2 footprint using the El Teniente layout. The drawpoint opening sequence includes five production blocks, the first two of which are scheduled to be undercut simultaneously in 2018. Ore is transported using diesel-powered load-haul-dumps to a series of orepasses and then delivered via loading chutes to a rail haulage system, which delivers the ore to a three gyratory crusher complex. Crushed ore is transported to the mill stockpiles via dual inclined conveyors.Development and construction of the substantial fixed facilities are now well underway. Primary access for personnel and materials is via the 6 km Ali Boediardjo (AB) adits. A service shaft will hoist personnel and materials from the AB adits level to the various operating levels. Shaft commissioning is scheduled for late 2015. The rail haulage system installation and construction is in progress and is due to be commissioned in 2017, which is timed to coincide with the commissioning of the ore handling system. Ventilation is provided through a series of large intake and exhaust drifts, and two of the four main fans have been commissioned. A 1600 L/s pumping system will manage drainage from the mine.Other key facilities include separate shops for rail and rubber-tired equipment, warehousing, a powder magazine, a main control centre and an underground concrete batch plant.CITATION:Brannon, C A, Firdausi, H H, Pascoe, N D and Yuniar, A T, 2016. Development and construction update of the Grasberg block cave mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 625–634 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By John H. Gasper

The success of steep slope (>20°) contour mining depends on many factors. Most important is the selection of the mining method that best suits the premining site conditions environmentally and economically. These conditions can be divided into three categories: • Geometric conditions - machine limitations, slope stability restrictions, erosion capacity; • Physical conditions - material properties, rock strengths, ability to dig, driving surfaces; and • Chemical conditions - acid-base relationships, blending or selective placement of overburden. This article incorporates these conditions by conceptually modeling compliance-oriented contour mining methods, particularly haulback methods, using the combined front-end loader (FEL)/ truck, tractor/scraper, and FEL-truck and scraper. Engineering analyses, including machine selection, sequencing, ease of varying production rates, slope requirements (for stability and running surfaces) and drainage requirements can be performed after the geometric constraints dictated by in situ conditions and regulatory requirements have been conceptualized. Once all generalized geometries have been established, reduction to idealized, three-dimensional views is achieved. These are then reduced to two-dimensional symbolic models, mainly plan views but also elevations and sections. Equipment activities and operations are then conveniently overlayed. Without this simple, two-dimensional reduction, technology transfer remains awkward and non-analytical.

Jan 1, 1991

By Paul Wellman

A computer program is presented that may be used to calculate the bare equipment cost of the major processing units for any hot potassium carbonate gas purification system. The program is designed such that, with only minor modifications, it could be used with a variety of computer systems.

Jan 1, 1968

By M Armstrong, S J. Coward, A Galli

Mine management is often expected to make rapid evaluation decisions at different stages of projects based on limited and uncertain data. The challenge is exacerbated by having to distil technical complexity into a financial model that is usually designed to produce only one or two key indicators, eg net present value (NPV), internal rate of return (IRR). Mining is a complex environment with many sources of uncertainty ranging from sampling to economics. In order to optimise investment decision-making, an appropriately structured evaluation framework must be utilised. An evaluation framework should be designed to encapsulate and integrate the complexity across the evaluation cycle, ie sampling, resource estimation, mine planning and treatment, and financial and economic modelling. This complexity is diverse and ranges from sampling support, scale effects to understanding the impact of variability, uncertainty and flexibility on operational efficiency and economic viability. These complexities, combined with time and capital constraints, usually do not allow all facets of evaluation to be integrated into the model. The model must strike a balance between simplified estimation techniques and sufficient incorporation of aspects of the project that will make a material difference to the investment decision. This paper demonstrates the impact of the scale of measurement on the valuation of a mineral project. Comparisons are made between global estimation averages using a top-down approach and local estimates using a bottom-up approach. Three sampling campaigns were conducted on a virtual orebody to compare the relative NPV accuracies. Stochastic forward models were run on foreign exchange rates and are compared with the results from a fixed foreign exchange rate model.

Jan 1, 2006