Search Documents

Taxation is a major factor in evaluating mining project developments. The availability or otherwise of effective tax relief for project expenditures can have a crucial bearing on the decision to proceed with a project. The special position of the mining industry is recognised within the Income Tax Assessment Act (the "Tax Act") by special legislation, namely Divisions 10, 1OAAA and 10AA. The legislation both extends the scope of items which are eligible for deduction and affects the timing of deductions. Generally, the legislation separates expenditure into 3 categories: 1. Expenditure on exploration 2. Capital expenditure on the development and the running of the mine; and 3. Facilities used in the transport of minerals. Companies evaluating a project should carefully analyse their proposed expenditures, allocating them between these categories so as to identify potentially non-deductible expenditures and to determine the period over which tax relief will be Obtained.

Jan 1, 1983

By S Sullivan

The key skills for a competent geologist are observation, documentation, analytical thought and the ability to communicate. These attributes have served the geological world for the past two centuries since the field of geology was separated out from natural philosophy. The understanding of the structural setting, lithologies, alteration and 3D distribution of the target mineral species are essential precursors to resource evaluation and potential economic extraction. The advent of artificial intelligence and machine learning has matured to the point where observation by dedicated sensors and analysis by customised AI algorithms can replace manual processes and deliver credible results. In combination with analytical data such as assays, various sensors now collect physical properties of rocks which are used as proxies for mineral identification and rock mass classification. These sensors include X-ray and infra-red spectra, magnetic susceptibility, gravity/density, EH/pH measurements, conductivity, colourimetric readings, porosity, fracturing and fracture intensity. Analysis using machine learning techniques trained using known data sets can determine rock type classification, rock density, quantification of grade/quality attributes, mineral alteration, weathering and geotechnical attributes such as rock quality. This type of data relies on calibration and quality control of a variety of different types of electronic hardware. The resulting data is non-additive, has error ranges and will be suitable for consumption by fast AI methods providing probabilistic analysis. A second stage could include geometallurgical constraints to provide an ‘extractability index’, which is of more interest to miners than pure geotyping. Using resultant interpreted geological criteria, 3D domain models with spatial attributes will be built.

Sep 1, 2024

By R Hao

Uncertainties in large open pit geotechnical modelling has been a major concern for slope stability analysis. The level of confidence in the in-put assumptions, such as structural and rock mass model, dictates the modelling results to some extent. This article is to detail a case study of Kalgoorlie Consolidated Gold Mines (KCGM) regarding a predicted inter-ramp failure on an as-built pit walls by a 3D numerical modelling. Significant concerns were raised across site and multiple preventive plans were considered. After intense data collection work, it was confirmed that the risk of failure had been overestimated. The case study has improved the understanding of geotechnical data in-put and has enhanced the process of creating and updating geotechnical structural models at KCGM.

Jun 22, 2022

By L S. Barbour, M K. Meiers

Soil covers for mine waste are subject to changes in structure as a result of root development, and wet/dry or freeze/thaw cycling. The purpose of this study was to evaluate the changes in the hydraulic conductivity of three non-compacted clay covers over time. The covers are located on a sodic/saline overburden fill (30-Dump) at the Syncrude oilsands mine in Fort MacMurray, Alberta, Canada. Monitoring of these covers for temperature, matric suction, and water content by the University of Saskatchewan has been ongoing for more than three years. The three covers (D1, D2, and D3) were constructed in 1999 and are 50 cm, 35 cm, and 100 cm thick. The covers are comprised of a surface layer of reclaimed peat/mineral mix over a secondary reclaimed mineral soil (glacial till or glaciolacustrine clay), placed over a sloping shale surface. Field measurements of hydraulic conductivity within the secondary layer were obtained using a Guelph Permeameter during the 2000, 2001, and 2002 summer field seasons. Repeated measurements were made within the D1, D2, and D3 covers at depths of approximately 40 cm, 30 cm, and 60 cm, respectively. The values of hydraulic conductivity for the covers were similar to each other during each of the field study seasons. The mean hydraulic conductivity of the secondary layer increased every year: 2.5 + 10-6 cm/sec to 2.1 + 10-4 cm/sec to 4.3 + 10-4 cm/sec from 2000 to 2001 to 2002. Soil temperature data shows that one freeze/thaw cycle occurred each year at the measurement depths.

Jan 1, 2003

Any project carries a number of challenges and risks. Inappropriate design, poor project management, time, industrial disputation and capital over runs are all areas which can impact on a project cash flows and return on investment. In the resource Industry you have the added complexity and risk of geology which is difficult to predict and sometimes unforgiving. The Dartbrook Mine was designed and constructed as a high output longwall mine and has overcome a number of hurdles to produce over 2.3 million tonnes for the first year of operation. A number of problems were encountered during construction which resulted in the inseam development being delayed for six months. Dartbrook people have demonstrated they can manage adversity and produce world class results. The mine has been through a very steep learning curve during 1997 and with this experience behind the mine is now producing at an annualised rate of 3.4 MTPA.

Jan 1, 1998

Autocompression and virgin rock tempera ture have a marked influence on the ventilation of the lower levels at North Broken Hill Limited N.S.W. To maintain comfortable working temp- eratures without penalty to working hours, increase in airflow or the cooling of the work area is necessary. The use of refrigerated air cooling is discussed. Ventilation of underground mining opera tions at North Broken Hill Limited is accomplished by downcasting air through No.3 shaft, the main operating shaft, 1581 m deep, with additional air through No.1 shaft (542 m) 2 and No.2 shaft (978 m), both no longer opera- tional shafts. Air is upcasted through No.3 ventilation shaft which is 4.9 m diameter and concrete lined, from the No.28 level (1140 m) to the surface. On the surface level of this shaft is a horizontally mounted Richardson 4800 mm diameter single stage axial flow fan with adjustable pitch rotor blades.

Jan 1, 1977

By K Thompson

The Diavik Diamond Mine is a world-class operation located in an extreme environment 220 km south of the Arctic Circle in CanadaÆs Northwest Territories. The mine has a number of distinctive characteristics û such as limited winter access via an ice road, mine infrastructure being located on an island, with mining taking place behind dykes holding back a lake, temperatures at the mine that get down to -45¦C in winter, and the presence of bears, wolves, foxes and wolverines! One thing that Diavik does have in common with other mines around the world is the need for reconciliation. In late 2005 Diavik implemented SnowdenÆs Reconcilor software system to facilitate the process of reconciling geological models, mine plans, production data and plant results. This paper provides a case study of the reconciliation system implementation. It outlines the migration of Diavik away from a comprehensive and effective spreadsheet-based reconciliation process to a commercial grade, automated and web-based information management system. This paper documents the reasons for moving away from the spreadsheet system, the key parameters used for reconciliation, and the benefits gained by closing the loop between reconciliation and ongoing process improvement.

Jan 1, 2006

By C Young

The identification of Critical Risks, their associated Critical Controls, and the implementation of processes to ensure their ongoing management can be difficult and resource intensive. Answering the following Critical Risk Management related questions can be challenging: • What is a Critical Risk? • What is a Bow-tie Analysis and when should it be used? • What is Critical Control? • How is the effectiveness of a Critical Control assured, and how is this measured? • Who is responsible for managing Critical Controls? • What are the implications if a Critical Control is not effective? It appears that in the mining industry’s efforts to implement the Critical Control Management Process outlined by the International Council on Mining and Metals (ICMM), instead of embedding an integrated, well understood, value adding process, we have instead created a resource hungry monster that is poorly understood by numerous layers of the organisation.

May 5, 2022

By P Alspach, R Buxton, C Morgan, C Ross

Mining companies worldwide have an increasing interest in restoring indigenous ecosystems following mining. Low levels of plant nutrients and organic matter, pH extremes, heavy metals, physically challenging media, and difficult climatic conditions all hinder revegetation of steep rockdump slopes. Our techniques use colonising pioneer plants to accelerate natural soil development and plant succession processes on minesites that are difficult to revegetate with locally sourced plants by traditional techniques. Suitable treatments and pioneer species must first be identified for each rocktype. Field trials at the Stockton Coal Mine in Buller have shown that successful acceleration of moss and pioneer plant establishment is possible. Best plots showed a mean of 15 per cent moss cover and 3.3 per cent vascular cover after 12 months compared with 0.1 per cent and nil respectively for controls. Techniques have been extended to field-scale trials, using hydroseeders and dryblowers. These techniques show potential for practical land rehabilitation, whilst conserving local biodiversity.

Jan 1, 2003

By Jelenich L, Murray J. Rantanen J

The experience gained in the development of an Operator Guidance System (OGS) for on-line process control and fault diagnosis in a commercial scale sintering process will be discussed in this paper. The OGS development started with the specification of feasible control and support tasks, eg ratio control scheme, mass balance calculations. Next, minimum requirements for fault diagnosis and process control were defined and the adequacy of existing instrumentation was assessed. The OGS knowledge base consists of both quantitative and qualitative diagnosis methods. Quantitative models based on fundamental engineering principle are used first and any gaps in such quantitative knowledge are then filled with heuristic rules. The diagnostic rules for the knowledge base was developed based on the knowledge acquired from experienced operators and operations engineers and validated with plant data. A real time reasoning program was written using C language and data base software. The OGS has a human-computer interface which is the primary means of interaction between the OGS and process operator. The OGS development has been successful in assisting operators in decision-making in their routine tasks. Further enhancement to the existing system is currently underway.

Jan 1, 1995

The amount of land subjected to coal surface mining in the United States has been reported at 1, 302, 000 acres (1). Latest National Coal Association estimates (1968) show that about 65, 000 acres are affected annually in the production of 186, 000, 000 tons of coal. Peabody Coal Company affects approximately 9500 acres annually in the ten States in which we are presently operating. Surface mining at Moura, Australia was begun in February 1961. In Marcy 1963, the Marion 7900 dragline with 35 cubic yard bucket went into operation and in 1967 the Marion 8900 dragline with a bucket capacity of 130 cubic yards was put into operation. In addition a third dragline, a 480W was added in 1969. It carries a 15 cubic yard bucket and is used to work areas that are too small to justify movement of the larger machines, In 1969 the Moura surface mine produced 3, 002, 774 short tons, and in 1970 3, 418, 933 short tons.

Jan 1, 1971

The nickel ores mined in New Caledonia for one century are mainly silicate ores. These ores are nickel enriched saprolites, formed by partial weathering of peridotites (predominantly harzburgites and some dunites), serpentinised to varying degrees. Saprolites constitute the lower horizon of lateritic soils, sometimes up to 100 metres thick, developed on peneplains now greatly modified by erosion. Saprolites are generally overlain by laterites, a more weathered horizon, where the main components are iron oxy-hydroxides with a low nickel grade. The structure of saprolites depends essentially on the serpentine content of peridotites and, on the other hand, serpentine minerals may have a high nickel content and, so, represent important nickel bearing minerals in silicate ores. Two types of serpentines can be found in nickel ores from New Caledonia: ò primary serpentines, formed by hydration of olivine at temperatures below 400¦C, during overthrusting of peridotites in late-Eocene (Paris, Andreieff and Coudray, 1979), are generally very abundant; ò secondary nickeliferous serpentines, associated with other sheet silicates in garnierites, are now relatively scarce but garnierites were selectively mined one century ago, because of their high nickel grade.

Jan 1, 1996

By Y K. Leong

Iron ore tailings typically containing 40 to 50 per cent Fe can be beneficiated to iron ore products containing 54 to 60 per cent Fe. The impurities are comprised of clay, quartz, cristabolite and TiO2. Goethite and hematite are also present. At high concentrations of 55–60 wt% solids, the tailings displayed high yield stress and viscosity and cannot be pumped over long distances. Composite additives comprising of NaOH, phosphate-based additives and sodium metasilicate are found to reduce the viscosity and yield stress very significantly by a few orders of magnitude. The yield stress of 100 Pa can be reduced to almost zero. At this state, dilution of the tailings with its process water to 40 per cent solids causes the coarse and high-density iron ore particles to separate from the colloidal fractions located in the supernatant after a few minutes of sedimentation. Separation by decantation produces a sediment with an Fe content of 54 per cent from tailings with 47 per cent Fe. Another tailings sample with 48 per cent Fe was beneficiated to greater than 57 per cent Fe using NaOH-metasilicate-polyphosphate additives and employing an additional washing step. The use of other composite additives, NaOH and polyphosphates, increased beneficiated product Fe content to greater than 60 per cent from the same tailings. With the current iron ore spot price of more than US$180 per tonne, the cost of this treatment process even including a desalination step, if necessary, is relatively insignificant. This study has given tailings an economic value that should be exploited as soon as possible.

Nov 8, 2021

By Trevits MA

The United States Steel Corp. in cooperation with the United States Government is conducting a large-scale methane drainage field demonstration using stimulated vertical boreholes drilled in advance of mining. A grid pattern of 23 boreholes, isolating approximately 1.5 km2 of coalbed area, has been drilled to the lower bench of the Mary Lee coalbed, Jefferson County, Alabama. Upon completion of drilling operations, various hydraulic stimulation treatments utilizing nitrogen-generated foam, water, and gelled fluid were performed to enhance the rate of methane gas removal. Production from the grid pattern began in September 1977 and continued as the last borehole was placed on production during October 1980. To date, in excess of 33,800,000 m3 of methane gas has been drained as a result of this effort. Underground mining operations were approximately 3.2 km from the grid pattern when production began and have currently progressed to within 1.6 km. Underground interception of the grid is expected in 1986.

Jan 1, 1982

By L Hussey

Mt Keith concentrator treats low grade disseminated nickel sulfide ore supplied from the adjoining open pit mine. It is a traditional crushing, two-staged closed circuit grinding circuit (SAG & Ball Mills), followed by a complex split-size rougher, scavenger and cleaner flotation circuit. In 2016, 10.5 Mt was milled, at an average head grade of 0.54% Ni, yielding 35 000 nickel metal tonnes in concentrate.Historical analysis of the plant data indicated that of all the nickel lost in the fines rougher circuit tails stream, 25.6% was recoverable in an eight minute laboratory scale flotation test. These results implied that this fine nickel was readily available for recovery in the plant, either through operational improvements or additional flotation capacity. With operation optimisation ongoing, and capital within the business focused elsewhere, plant personnel were challenged to think differently about improving recovery.In 2012, a separate project to improve plant recovery when treating high talc ore was completed. Amongst other vessels, this project saw the installation of two 150 m3 Outotec Cells to the scavenger section of the fines rougher, middlings and scavengers (RMS 1) circuit. Since installation, the operation of these cells resulted in difficulties immediately upstream with instability in the scavenger cells. It was therefore decided that these cells would be better suited to treating the fines rougher circuit tails.The alterations required to divert these flows were minimal, with the capital project totalling $220 000.In the two years since installation, the fines rougher tailings nickel grade has dropped by 9.9%. The scavenger circuit has also seen a 2.8% reduction in tailings nickel grade, and instability issues were immediately resolved. This project serves as a lesson in how existing plant infrastructure may be better utilised to maximise recovery. Although this is especially applicable when capital constrained, such re-appropriation can be considered at any point to maximise return on existing assets. CITATION:Hussey, L, 2017. Repurposing flotation capacity at Mt Keith nickel concentrator, in Proceedings MetPlant 2017, pp 254–258 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By R Grogan

Nautilus Minerals Inc is a sea floor resource exploration and development company focused on developing the Solwara 1 Project, a copper-gold sea floor massive sulfide deposit in the territorial waters of Papua New Guinea, for which it holds a mining lease and associated environment permit.Economies depend upon four key types of capital: built, natural, financial and human. Natural capital consists of the ‘minerals, energy, plants, animals, ecosystems (climatic processes, nutrient cycles and other natural structures and systems) found on Earth that provide a flow of natural goods and services’ (Daly and Farley, 2004). Many ecosystem goods such as fish, fruit and water are already valued and sold in markets; however, some ecosystem services are not amenable to markets and have remained unvalued in traditional accounting methods, even though they provide significant value (such as flood protection, climate stability etc; Batker and Schmidt, 2015).There are now economic methods available to quantify and value natural capital and many non-market ecosystem services. When valued in dollars, these services can be incorporated into a number of economic tools, including benefit-cost analysis, accounting, environmental impact statements, asset management plans and rate of return on investment calculations. Their inclusion ultimately strengthens decision-making. When natural capital assets and ecosystem services are not considered in economic analysis, they are effectively valued at zero. This omission can lead to poor decisions, inefficient capital investments, higher incurred costs and losses due to unexpected events (Batker and Schmidt, 2015).In 2015 Earth Economics was commissioned by Nautilus Minerals Inc to conduct an independent, objective environmental and social benchmarking analysis of the proposed deep seabed Solwara 1 mine with terrestrial copper mines (referred to as ‘the report’). The report represents the first ever natural capital accounting and ecosystem goods and services framework for seabed mining.The report compares the proposed Solwara 1 mine with three terrestrial mines: Bingham Canyon (Utah, USA), Prominent Hill (South Australia, Australia), and Intag (a proposed mine in Intag Province, Ecuador), and provides a natural capital accounting assessment for all four operations.CITATION:Grogan, R, 2016. Natural capital accounting – a sea floor mining application, in Proceedings Life-of-Mine 2016 Conference, pp 2–4 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By P J. Fairfield

"This paper reflects on the author’s experiences in undertaking mining studies and reviewing mining projects and technical reports, particularly over the past five years, and the impact of recent changes in reporting standards and listing requirements pertaining to mining-related evaluation and valuation exercises. It also discusses contemporary changes in the expectations of the investment community and the implications for the role of the technical specialist in providing advice to such stakeholders.Not for the first time in history, the resources industry has experienced a significant downturn after a period of strong, sustained growth in line with the traditional view of the cyclical nature of commodity markets. The resource industry is currently faced with capital austerity in the wake of projects ‘failing’ (not delivering to expectations). In response, the industry has experienced changes in investment behaviour (slowing of investment) and an increasing regulatory burden as stakeholders seek a greater understanding of mining project risks.This paper discusses this response and uses case studies to highlight the key learnings (perhaps re-learnt) by the industry. It also discusses the challenges faced by technical specialists in communicating the results of technical and valuation studies to the investment community.As investors seek to take advantage of the current stage in the investment cycle, the key challenge of the technical specialist is to effectively communicate the uncertainty in technical assumptions, risks and opportunities that drive project value.CITATION:Fairfield, P J, 2016. Managing expectations – from buyer beware to buyer be aware, in Proceedings Project Evaluation 2016, pp 66–74 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By McDonald K. J, Flann R. C

A liquid phase sintering (LPS) process for preparing basket anodes from nickel powder has been scaled-up and the innuence of compact green density and sulphur content, as well as sintering conditions (period and syngas now.rate) on the perfonnance of anodes has been evaluated. The product anodes have been tested in an industrial electroplating tank. It is concluded that if anode residues are to be minimised, then with a sintering temperature of 960"C, compact green density needs to be as high as economically achievable (85 - 87 per cent density of solid nickel) and the sintering period approximately 40 minutes. With these constraints, if residual sulphur contents of anodes are to be kept as low as those of commercial anodes, then the sulphur content of the green compacts would need to be less than 1670 ppm. At the same time, it is also found that residual sulphur concentrations as high as 2000 ppm are beneficial to anode pcrfonnancc and not detrimental to the quality of the electroplate. The ability of the LPS process to produce marketable nickel anodes for the electroplating industry is clearly demonstrated.

Jan 1, 1993

By X T. Nguyen

Western AustraliaÆs Mining Act 1978 was amended in 2010 to provide for the requirement of a mine closure plan to be submitted to the Department of Mines and Petroleum (DMP) for approval, as part of a mining proposal application. The mine closure plan must be prepared in accordance with approved guidelines. Guidelines for mine closure plans were developed to assist the mining industry in Western Australia to plan and implement effective closure of mines. The guidelines focus on the application of integrated mine closure principles and industry best practice information on mine closure. This, includes stakeholder consultation, risk based approach, data collection and monitoring, development of completion criteria and financial provision.Due to the potential high level of public interest in the guidelines, extensive consultation with stakeholders was conducted. The purpose of this paper is to share experiences from the consultation process.CITATION:Nguyen, X T, 2012. Mine closure guidelines for Western Australia and consultation process, in Proceedings Life-of-Mine 2012 , pp 43-46 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By R Dimitrakopoulos, C Paduraru

The optimisation of mine complexes and related value chains is a challenging problem due to the simultaneous presence of a highly-dimensional decision space, integer decision variables, non-linear constraints and recovery functions, as well as geological and market uncertainty. In addition, if the uncertainty is revealed progressively, then decisions need to continuously adapt to new information, which poses additional challenges. Stochastic dynamic programming is a well-known class of methods for addressing problems where a decision-maker reacts to new information. While simplistic applications of dynamic programming using exact representations would be intractable for any realistic mine planning problem, new dynamic programming methods using approximate value function representations have been successfully implemented in the past to address problems of similar complexity. This work formulates the problem of mine complex optimisation as an approximate dynamic program and presents an application of the resulting method to a gold-copper deposit.CITATION:Paduraru, C and Dimitrakopoulos, R, 2014. Mineral supply chain optimisation under uncertainty using approximate dynamic programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 415–422 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014