Search Documents

By G Burton, S Fityus, J Li, S Vaughan, D Payne

Daunia and Caval Ridge coal mines, owned and operated by BHP, have been co-disposing rejects and dewatered tailings within spoil dumps from the beginning of their operations in 2013 and 2014, with the purpose of minimising environmental impact and geotechnical risk. Following the recent large failures of tailings dams around the world, BHP Coal, through its Coal Tailings Program, plans to transition other coal mines to deliver “dry” tailings and produce mixed plant rejects (MPR) for inpit co-disposal. This will materially reduce future tailings dam risk exposure. Previous laboratory shear strength testing was conducted on rejects with a maximum particles size of 20 mm, and some concerns were raised that this might not represent the mechanical properties of the actual full particle size distribution (PSD) rejects. BHP was also aware that using different technologies to dewater the tailings, such as belt press filters (BPF) and solid bowl centrifuge (SBC), could produce thickened tailings which could significantly modify the physical behaviours of the MPRs, particularly the bonding between particles. Therefore, laboratory testing on both coarse rejects and mixtures of the coarse rejects and dewatered tailings (MPRs), with full PSDs, was carried out. Testing was performed using the large direct shear machine developed by the Australian Coal Association Research Program (ACARP) project C20019 in 2017, as well as a 300 mm diameter triaxial apparatus at the University of Newcastle (UoN). This paper presents details of the laboratory testing program and results for the rejects from the first studied mine of the BHP Coal Tailings Program. It compares the shear strengths measured at full scale with those tested on modified (scalped or crushed) specimens in the past; and discusses the tailings dewatering technique selection from geotechnical aspects based on the testing results, and finally presents some dump and tip head stability analysis results using the testing results.

Jul 1, 2021

By M S. Henderson, R D. Alorro, L G. Dyer

An alternative leaching system for rare earth element recovery from monazite is under development. The initial stage utilises oxalic acid to convert the rare earth phosphate into an oxalate salt through dissolution and reprecipitation and it is the efficiency of this stage that governs the overall recovery achieved. It has previously been proposed that lixiviant consumption is the primary limitation in this process. This work further investigates a range of conditions in an attempt to further elucidate the factors influencing the achievable conversion in this stage. It has been shown that the pH may be governed by multiple reactions both consuming and producing acid (thus the mild change over time). The importance of proper mixing and potential to operate at lower temperature with only moderate impact on kinetics has also been demonstrated. Staged/sequential leaching is more effective in fresh solution as opposed to restoring the lixiviant concentration with subsequent reagent addition, suggesting some impact of solution composition. However, contrary to previous findings, subjecting the leach residue to fresh solution resulted in significant decline in leach rate and overall dissolution. This may be because a greater proportion of conversion was achieved in stage 1 in this work than in previous investigation. This may indicate that eventual passivation or the presence of some more refractory REE minerals limits dissolution. Iron dissolution was relatively consistent upon exposure to fresh solution, displaying the ability of the solution to continue to leach the goethite component of the concentrate.

Aug 24, 2022

By M I. Pownceby, M A. Rhamdhani, D M. Fellicia, S Palanisamy, R Z. Mukhlis

The trend of global copper production has prospectively increased over time. Based on typical mined ore grades, 1 t of copper ore generates approximately 6–10 kg of copper, which requires much energy, usually in the form of metallurgical coke. Copper production using carbon as a fuel and reductant contributes up to 0.3 per cent to global greenhouse gas (GHG) emissions. As a result, research into decarbonisation processes applicable to reducing low-grade copper sulfide ores, copper oxides, electronic wastes and other alternative complex Cu-rich materials has increased. Alternative fuels for reducing carbon-rich emissions in pyrometallurgical copper processing include methane, ammonia, biomass, solar and wind power, but in recent times increased focus has been on hydrogen as a potential fuel and reducing agent for materials such as oxidised copper scrap, Cu2O/CuO and Cu-rich slags/e-wastes. From a thermodynamic perspective, hydrogen exhibits a significantly more negative standard Gibbs free energy (ΔG°) than copper oxide making it a suitable reductant and the exothermic thermal effect from reaction between hydrogen and Cu2O/CuO may be used to control process parameters. These characteristics renders hydrogen an ideal gas for reducing copper oxides and copper-containing slags/e-wastes. This review article assesses previous research on utilising hydrogen for producing and refining copper from primary and secondary feed materials.

Jun 19, 2024

By R Stimpson, B Johnson, B Hesse

During a period of twelve months between FY18-19, a series of trials were conducted to compare production drilling accuracy using two different methodologies, and the subsequent impact this had on stope performance (dilution and recovery). Testing was conducted at a series of underground mines in Australia. The drill rig’s existing alignment processes were compared to a new technology system, with the following observations: • The new technology was proven to limit rig alignment error, thereby reducing average blasthole deviation, resulting in an increase in the number of holes drilled within tolerance by up to 160%. • The increased accuracy reduced stope dilution significantly by reducing over-break of subgrade ore, whilst also increasing drilled meters (faster stope-cycle time), reducing the bridged tonnes ratio, and facilitating the capture of previously uneconomical stopes. A cost-benefit analysis extrapolated from each of the trials showed the extent to which the new technology, when applied to production data, reduced average dilution, increased ore recovery as well as general drill and blast productivity. In one such trial, the new technology was proven to have reduced average dilution by net 45.4%, which if applied to a full year’s production data, would result in AUD8.2M additional ore recovered, with AUD4.5M less spent on wasted cost of haulage and processing of diluted ore. As a result, return per tonne would increase 22%, from AUD87 to AUD106. This improvement was maintained over the following 12 months – reducing average dilution from 22% in FY17 to 12.1% in FY19.

Mar 15, 2021

By J Say, M Hawtin, L Carlon, P Cann

Historically, production from sublevels of the Ernest Henry Mine (EHM) started from blind uphole rises at the end of slot drives. Where previous investigations considered removing these slot drives and starting production with independent ore drives, any development savings were consumed when drives were extended to minimise ore loss. Since 2017, EHM and Orica have been investigating opportunities to optimise drill and blast practices by implementing Orica’s Wireless Electronic Blasting System (WEBS). To reduce ore drive development metres, a novel design was proposed utilising the WebGen™ 100 system to combine a rise with pre-charged widening firings. Initially these new rise and widening firings achieved results similar to previous EHM designs, achieving on average 81 per cent of design height and width. Due to poor performance of the fourth trial a significant re-design was required. Modifications included drill hole re-positioning, in-hole primer relocation and initiation delay adjustments. Since the re-design a step change in rise performance has been observed with rise and pre-charged widening shots averaging 95 per cent of design height and width. With rise and widening performance exceeding expectations, the removal of slot drives has allowed a substantial reduction in lateral development. Development savings of 165 m and 169 m from the RL1325 and RL1300 levels have been achieved. Primary draw and ore recovery has also increased due to the later addition of pre charged forward stripping rings. Level design changes have also significantly improved the mining cycle by allowing for a reduction in required ground support, improved secondary ventilation, a reduction of critical path development, simpler production scheduling and less wear and tear on machinery. Future mine level designs now incorporate key learnings and are proving beneficial to a variety of scenarios including changing orebody boundaries at depth.

Mar 15, 2021

By D Hope, D K. Mukhopadhyay, J D. Harvey

South32 (S32), a globally diversified mining and metals company, is listed on securities exchanges around the world (ASX, JSE, LSE), with its primary listing being on the Australian Securities Exchange (ASX). Chapter 5 of the ASX Listing Rules (Australian Securities Exchange (ASX), 2019b) requires a mining entity to provide a summary of governance arrangements and internal controls with respect to its estimation processes, estimates and reporting of Mineral Resources and Ore Reserves annually. As a global company, it is also important to design and implement all governance processes and internal controls which can be used consistently across the organisation. The three lines model (previously known as the ‘three lines of defense’ model) is employed across South32 to manage risk where the first line (Practitioners) designs, implements and executes processes and controls to manage risk; the second line (Stewardship) identifies material gaps and improvement opportunities in the first line by monitoring conformance with the group requirements, legislative and regulatory obligations. Second line also assists with the development and improvement of core fundamentals based on industry good practise. The third line (Group Assurance) provides independent and objective assurance over the Group’s system of risk management and control. The estimation of resources and reserves for most of the operations within South32 is managed by the Planning function. The estimation process is part of the annual Life of Operation Plan (LoOP). The LoOP identifies and assesses the strategic alternatives for the development of an operation and recommends the preferred pathway based on value and risk. The LoOP starts with opportunity framing and the updated resources as an input and ends with the short-term plan and annual budget (the outputs). Ore Reserves estimates are one of the outputs from the LoOP. All the inputs and outputs follow internal standards and procedures which includes peer review and performance reconciliation. Stewardship (Second line) which is a centralised function has standards in place to ensure compliance to internal controls and external regulatory requirements. This includes assessment of the competence of Competent Persons, technical reviews, independent audits and training in the relevant chapters of the ASX Listing Rules, Guidance Notes and Appendices. Group Assurance (Third line) which reports to the Risk and Audit Committee of the Board of Directors ensures the design and operating effectiveness of the processes, standards and procedures associated with the estimation and reporting of resources and reserves. While the level of scrutiny has a different intent for each line in the three lines model, the overall purpose is to achieve a consistent outcome across the organisation

May 24, 2023

By D David

Amongst those whose task it is to design tumbling mills and other comminution machines there is an almost religious divide between devotees of the Bond method and devotees of other methods developed in more recent times. For a decade or so the issue was between the Bond power-based methods and the JKMRC (JK) simulation based approach. The newest method to challenge the status quo is power-based and was developed by Steve Morrell. As the title suggests, this paper will take some liberty at concluding that Fred Bond and Steve Morrell may be separated by history, but not by their approaches to their individual contributions to the science of comminution. Another driver for the paper is that although it is good to have diversity of thought, the existing divisions are problematic for those of us signing public disclosure documents. If alternative design methods produce materially different outcomes for the mill duty, then at least one of them is wrong or being used incorrectly. At some point the unsustainable argument may need to be put in a court of law that we metallurgists have two or more materially different design methods, each of which is correct! Therefore, perhaps a resolution is needed before this occurs?The works of both Fred Bond and Steve Morrell are each directly related to their contemporary grinding mill design and operational environments. Both their approaches are empirical, borne of observing and measuring real world situations. Both worked with theories that preceded them, gathered their own data and then each saw shortfalls in the status quo.Fred Bond was an escapee from revolution, a victim of The Great Depression, and had several near death experiences during his early site-based career. Perhaps he was fortuitously rescued from himself when asked by Allis Chalmers (A-C) to set up its rock testing laboratory in Milwaukie in 1930. Fred’s testing led him to conclude that neither the Kick nor the Von Rittinger theories explained his measurements. His writings on the failings of these old theories caused a divide between devotees of the old and new methods at that time. After many years, and much thought and plotting of data (the old way!), he came up with his now-famous equations (and his Third Theory) which have stood the test of time, certainly in the world of Bond-era machines.Coming from England via several African diamond mines, Steve Morrell immersed himself into the comminution world of the JK in Brisbane about a decade after Fred passed on. The JK had developed its semi-autogenous grinding (SAG) simulation framework using its own pendulum breakage tester, itself a derivative of the twin pendulum impact device invented by Bond decades earlier. At the JK Steve developed his authoritative Tumbling Mill Power equations and was involved in real world analysis of comminution problems on the global stage. Steve’s JK experience coincided with the demise of the rod mill, the rise of autogenous grinding (AG) and SAG milling and a rapid expansion in concentrator capacity.Morrell left the JK to pursue his own interests, which included ongoing consulting work, now demanded by the comminution world. He then turned to investigating a growing list of discrepancies between the opinions of designers and theoreticians, and the factual outcomes. The Morrell Method of design arose from this re-examination of ore testing, real world operating data and these glaring and expensive discrepancies between design and outcome. The elements necessary for a relook at the world of rock breakage were in place!CITATION:David, D, 2017. Steve and Fred would have been mates – a comminution design evolution story, in Proceedings MetPlant 2017, pp 2–11 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By A J. Ryan

The Ernest Henry copper-gold Mineral Resource is the major asset heldby Ernest Henry Mining Pty Ltd, comprising A$6.4 billion of containedmetal. The case history presented below describing the evolution andevaluation of this resource generally observes best industry practice and is a good example of effective due diligence in the resource delineation and estimation process. Early reconciliation data from mine production confirms the accuracy and validity of the resource estimate, providing valuable assurance to the mine owners.

Jan 1, 1998

By A Black, A de Jo, J Cavanagh, J Harding

Acidic and metal-rich waters have been discharging from Sullivan Mine, West Coast, New Zealand since the closure of the mine during the early- 1990s. This has resulted in a decrease in pH from a background of 4.5 to 2.8 and an increase in metallic elements in nearby Rapid Stream. In addition to the chemical effects on Rapid Stream, a study of freshwater macro-invertebrates revealed the absence of most biota downstream from the discharge. An attempt is being made to use the Sullivan Mine as a case study of problem and remediation analysis.

Jan 1, 2003

By I Gray

This paper examines the practical limitations that affect the measurement of stress in rock. As most rock stress measurement is conducted through the invasive process of drilling a hole in a rock mass, the nature of the rock and its response to being drilled form the basis of the stress measurement process. The prime techniques to measure stress down a borehole are to conduct hydraulic fracturing and its variant hydrojacking, overcoring, and the examination of the borehole wall for breakout or tensile fracture. It is also possible in some circumstances to use the sonic velocity within the rock mass as an indicator of the stress situation. Other structural indicators of stress such as joints, faulting and intrusions are useful but may not reflect the current stress situation within the rock mass. The variability of stress within the rock mass also needs to be considered as it is quite unusual to have a monotonic stress situation throughout any rock mass. The outdated concept of measuring the far field stress in a few measurement for use in a numerical model is quite dangerous. It is essential to make multiple measurements and to generate an understanding of its distribution in some form of model before stress can sensibly be incorporated into underground design. CITATION:Gray, I, 2018. The practicalities of effective stress measurement in rock, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 360–374 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By B Chapman, R Nievergelt, J Hill

A major component of Sydney’s new South West Rail Link project is the Hume Highway Underpass (HHU), an 80 m long twin track mined tunnel excavated at a depth of just 5 m below the pavement of the Hume Highway; one of Australia’s busiest road corridors.In order to ensure a safe and efficient construction of the underpass without disruption to the Hume Highway traffic, design of the HHU required specific focus on the prediction and control of ground movements. This paper describes the design and construction solutions adopted in response to these challenging constraints. The paper also provides discussion on the observed behaviour of the underpass during construction and the results of a back analysis that was undertaken during construction.CITATION:Hill, J, Nievergelt, R and Chapman, B, 2014. Design and construction of Sydney’s South West Rail Link Hume Highway Underpass, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 375–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By J Crosbie, M Lord, R Bitencourt, P Defferrard

The MMG Century mine, which is the largest zinc/lead mine in Australia, began operating in 1999 and ceased mining from the open pit in July 2015, with processing completed in early 2016. Closure plans were developed from 2006, and detailed planning for closure commenced in early 2011 with the appointment of a dedicated closure planning resource. The site will continue to be managed during the active and passive closure phases to complete rehabilitation commitments and demonstrate that closure completion criteria have been achieved.Completion of the mining/processing phase of the project provides an opportunity to reflect on successes, missed opportunities and lessons learnt with respect to planning and execution of mine closure. This paper highlights examples of success at Century and also identifies key learnings and areas for improvement in progressive closure outcomes. Specific examples examine mine planning and execution involving bulk movement of waste rock and construction of permanent waste encapsulation landforms. The paper also provides recommendations for other sites that are planning for closure.Decisions made during the operational phase of the project life can result in a significant increase in closure liability and reduce the likelihood of achieving lease relinquishment. Likewise, it is of paramount importance to assess the consequences and thoroughly understand the risks associated with changes or deferral of closure plans, progressive rehabilitation targets and closure related key performance indicators.CITATION:Lord, M, Bitencourt, R, Crosbie, J and Defferrard, P, 2016. Closure planning lessons Learnt from the Century mine, in Proceedings International Mine Management Conference, pp 207-216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By X Li, W McKeague, M S. Powell

This paper explores the importance of operators in the overall efficiency of mineral processing plants. With the potential of future control configurations becoming more remote, it is time to review the implementation of control and utilisation of operators. This paper is based on a preliminary review of operators and control room operations and clearly shows that, in the minerals industry, operations are typically run in a reactive mode (with a focus on ensuring equipment operation), rather than in a proactive mode (with a focus on optimising the process performance). The primary reason for this misguided approach is the short sighted thinking applied to the challenges of designing technology and organisational tools capable of addressing the essential operational needs: an approach which inevitably results in a disconnect between people and technology. Contrary to the popular approach of replacing operators with expert systems, the thesis of this paper is that the shift to more complex circuits, with higher demands on processing capability and control, will require the actual upskilling of operators. Experience in mineral processing and other industries indicates that expert systems cope well with small changes but are typically unable to respond to major changes in feed material and this is where the expert operator becomes crucial. Providing operators with ongoing high level training in process understanding, and restructuring how they interact with the plant and interface with the control system is the approach being proposed here - an approach surprisingly underutilised and often absent in the minerals industry today.CITATION:Li, X, Powell, M S and McKeague, W, 2012. Unlocking processing potential by empowering our operators, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 333-340 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By D J. Logan, J Jackson

"As of 1 December 2014, the 2012 edition of the JORC Code requires Ore Reserves to be defined by studies at the pre-feasibility or feasibility level. This paper examines how the pathway for most mining developments is determined in the Pre-Feasibility Study and how a trade-off must be made between the need to make the best decision, the constraints of limited time and resources, and the level of the project’s accuracy and uncertainty in terms of value. Issues considered include framing the scope of the study, planning for robust decision-making and ensuring effective communication between the diverse disciplines within the team.An inherent conflict exists between the immediate value added to a mining business from an increase in ore reserves resulting from a ‘quick’ Pre-Feasibility Study and the long-term value of pursuing a development strategy based on proper investigation and evaluation of the options. Recognition and resolution of this conflict is necessary if a project is to progress into future development stages, both in a timely manner and with the optimal development alternative and strategy.The challenge for project developers and those conducting the Pre-Feasibility Study is to understand what the key deliverables are (ie an Ore Reserve statement, option selection, business evaluation, forward work plan or risks) and how to follow good practice to ensure that these deliver value.CITATION:Logan, D J and Jackson, J, 2016. The pre-feasibility study – big choices, little time, in Proceedings Project Evaluation 2016, pp 122–132 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By B Besa

Australia is a world leader in the design and operation of mines accessed by the decline method. Literature indicates that a number of metalliferous underground mines using the decline system are also increasing steadily. This increase has generated a great deal of interest in underground haulage systems in future due to the huge costs involved in the development of declines. Studies have also shown that the current method of accessing orebodies by the conventional decline method has proved to be expensive, especially for narrow vein deposits. This is because decline development costs are influenced by mine planning and design parameters as well as available haulage systems that the mining engineer can choose from. The current access method suggests that more waste material is being extracted because of the size of decline openings adopted (5.5 mW and 5.5 mH). Also the conventional 1:7 decline gradient and turning radius of 20 m makes decline lengths, as well as the duration of development, excessively longer. This paper discusses results of a mine design case study with monorail technology as a method of accessing and developing the decline. The proposed system is economical, has high advance rates and offers a significant reduction in capital expenditure. The study compares costs, development metres and the duration of decline development using the monorail system with the conventional (truck haulage) access method. Results obtained indicate that the monorail technology has the potential to reduce the decline length by over 62.6 per cent and decline costs by 63 per cent for the case study. The monorail system also reduces the total capital development costs by 22 per cent for the same case study. Due to rapid development resulting from increased advance rates and the shorter decline length coupled with smaller decline openings, the time to access the deposit reduced by 71.8 per cent. This case study demonstrates that the economics of narrow vein deposits can be improved significantly by using the monorail system of decline development.

Jan 1, 2008

By C Mark

Coal bursts involve the sudden, violent ejection of coal or rock into the mine workings. They are a particular hazard because they typically occur without warning. During the past two years, three US coal miners were killed in two coal bursts, following a six-year period during which there were zero burst fatalities.This paper puts the US experience in the context of worldwide research into coal bursts. It focuses on two major longwall mining coalfields that have struggled with bursts for decades. The Utah experience displays many of the ‘classic’ burst characteristics, including deep cover, strong roof and floor rock, and a direct association between bursts and mining activity. In Colorado, the longwalls of the North Fork Valley (NFV) also work at great depth, but their roof and floor strengths are moderate, and most bursts have occurred during entry development or in headgates, bleeders or other outbye locations. The NFV bursts also are more likely to be associated with geologic structures and large magnitude seismic events. The paper closes with a brief discussion of how US longwalls have managed the burst risk.CITATION:Mark, C, 2014. Coal bursts in the deep longwall mines of the United States, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 33–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By E J. Sellers, A Cocker

Movement of the fragmented rock mass is an inevitable consequence of open cut blasting. Uncontrolled, unaccounted movement from blasting commonly causes ore loss and dilution from waste mixing. Therefore, the prediction of the post-blast location of both ore and waste is vital in grade control and of direct interest to mining geologists. Direct measurement techniques have matured significantly over the past decade, but their use remains expensive and labour intensive. Access and safety issues are further disincentives to regular movement monitoring. What is needed is a combination of direct measurement to establish baselines and reliable predictive modelling.The W H Bryan Mining and Geology Centre of the University of Queensland has pioneered 3D blast movement modelling using ‘physics engines’ to handle in-flight collisions and predict the final resting place of blasted material. Open cut metalliferous mines are a demanding environment for this style of modelling as they can involve complex geometries and variable buffering, which leads to inconsistent confinement. A version of the model designed to deal with these complexities is under development. A well-controlled field trial was needed to validate this new version.A validation trial was completed at a gold mine in South-East Asia. The aim was to increase throughput by increasing the blast powder factor without losing grade through dilution and mixing with waste. Four blocks were blasted to identify the effect of bench height and face confinement on ore movement, fragmentation and process throughput. The powder factor and blast timing were kept constant. Movement of the broken rock was measured by placing blast movement monitors at known positions in the block and then locating them after the blast. The majority of sensors were recovered, providing a unique insight into blast movement dynamics and generating a substantial data set for model validation.The model (called ‘MetaMove ‘) was calibrated for one blast and applied to investigate the extent of grade loss and possible mitigation strategies. Conventional mining techniques that involved firing across the strike of the orebody, and no post-blast boundary adjustment of the ore/waste boundaries prior to digging, were found to cause up to 44 per cent loss of high-grade ore, depending on the grade distributions. Post-blast adjustment of the ore/waste boundaries can negate this loss. The model indicates that altering timing and ensuring that the block boundaries are well confined can further constrain the movement of ore/waste boundaries. Thus, the model can be successfully applied to minimise grade dilution and limit misclassification of ore as waste whilst using higher powder factors to increase mill throughput. Application of a calibrated model to move ore/waste boundaries prior to digging will enable the production geology team to add significant value to the mining operation.CITATION:Cocker, A and Sellers, E J, 2014. Modelling blast movement for grade control at an open cut gold mine, in Proceedings Ninth International Mining Geology Conference 2014 , pp 377–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By J Deraisme, P Epinoux, O Bertoli

"Société le Nickel exploits the Dôme lateritic nickel orebody at its Tiébaghi operations in New Caledonia. The site geology has an obvious bearing on recovery and metallurgical performance, with controls that are extremely complex at all scales, including lithology, oxydo-reduction conditions, mineralogy and multivariate geochemistry. In this context, establishing an adapted recoverable resource estimation method that is efficient and transparent proves an interesting challenge. The method must address the key notions of: support effect – the exploration data set can only warrant the estimation of large panels of 20 × 20 × 3 m3 that are much larger than the selective mining units (SMUs) of 5 × 5 × 3 m3 information effect – the selection at the production stage uses estimates based on information that is much denser than that available for mine planning.The problem is rendered more complex in this type of deposit by the fact that the additive variables used for the estimation (metal accumulation and ore tonnage) are not the ones used to establish the selection at the mining stage (ie the nickel grade of SMUs, which is the ratio of accumulation on tonnage). Eventually, the selection criteria not only involve Ni grades, but also other elements such as Al2O3, Fe2O3, MgO and SiO2.The solution presented in this paper is to construct an SMU multivariate simulation in the saprolitic horizon and construct an efficient post-processing aimed at producing multivariate recoverable resource estimates. The efficiency constraints imposed by the number of blocks to be simulated (1.5 million) lead to resorting to direct block simulations. The underlying multivariate discrete Gaussian model, which had its validity tested beforehand, is put to good use to mimic the selection process that happens at the mining stage by offering the ability to simulate a composite value located at random within each block.The paper also presents the application of a scenario reduction algorithm to pick a representative subset of a few simulations to help appraise the risk attached to the downstream (reserve optimisation and mine sequencing) phases of the project. The original version of the paper (see Deraisme, Bertoli and Epinoux, 2014) used an early version of the scenario reduction plug-in (named S2RM) built in Isatis® software, where measuring the distance between the initial set of scenarios and the reduced set was based on Ni only. The implementation presented here is for the second generation of S2RM, where measuring the distance between the initial and the reduced set of realisations is based on all study variables. The benefits of the measure adapted to the true multivariate nature of the problem are highlighted in this updated version of the paper.CITATION:Bertoli, O, Deraisme, J and Epinoux, P, 2014. Multivariate block simulations of a lateritic-type nickel deposit and post-processing of a representative subset, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 99–108 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By R Pozo, F Reyes

Codelco Chile is currently developing the El Teniente û New Mine Level Project (NMLP) in order to increase ore production by seeking to mine the ore deposit located under the current operational orebody. Reserves of 2000 million tonnes (Mt) have been quantified, which will be extracted as from the year 2017 by using the panel caving and progressive sinking method. Codelco and SKM Minmetal (SKM) jointly developed the project prefeasibility stage (PFS), closing these studies in March 2008. The first part of the project approach is to replace mine production currently feeding the Colon concentrator facilities with 137 000 tonnes per day (t/d), focusing attention on a production increase from the year 2026 up to 180 000 t/d. Project efforts have also been centred on maximising the contribution of new technologies for both construction and operational phases of the New Mine Level, together with selecting the best mine infrastructure to keep El Teniente operations going on for the next 50 years. Implicit in this is the inherent improvement of a variety of current Mina El Teniente process and management practices. The plan is to reduce actual mine operational risks and take advantage of new opportunities afforded by the project, which is in effect a greenfield project with respect to the implementation of fundamental changes in the labour and business environment. In addition, issues related to human resources, maintenance and management, materials handling, establishing centralised operations and accesses, automation and remote operations control and power efficiency could also be addressed. The project, beyond the New Mine Level exploitation, considers the mineÆs future potential, with a second deeper exploration in prospect named Deep Level. Finally, the project identifies features that would add value to the mine operations, in an initiative named æSpace for Future TechnologiesÆ. This will allow the eventual implementation of new electrical equipment and the application of mechanised technologies and other process improvements for the mine development.

Jan 1, 2008