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By M I. Pownceby, M A. Rhamdhani, S Palanisamy, D Fellicia, B Satritama, G A. Brooks, A Ang

Metal production have long been using carbon sources as both reducing agents and energy sources. Consequently, the global extractive metal sector contributes significantly to greenhouse gas emissions, accounting for approximately 9.5 per cent. Hydrogen gas offers as a promising ecofriendly alternative to carbon in metallurgical processes, serving as both a reductant and energy supplier with a by-product being only water vapour. However, the implementation of molecular hydrogen faces certain challenges related to the thermodynamics and kinetics of metal oxide reduction. In addressing these challenges, researchers have explored the application of hydrogen plasma, generated by subjecting molecular hydrogen to high energy to produce atomic, ionic and excited hydrogen species. Hydrogen plasma offers thermodynamic and kinetic advantages over molecular hydrogen and carbon-based reductants, exhibiting lower standard Gibbs free energy of reaction and activation energy. Therefore, hydrogen plasma can produce metal in fewer steps, process any oxide feed and feed size and even be used to refine metals. Despite these advantages, challenges exist in utilising hydrogen plasma in extractive metallurgy, including electricity costs, potential reverse reactions and industrial-scale implementation. This study provides a mini review of prior research on hydrogen plasma for metal oxides reduction, particularly iron oxide, as well as state-of-the-art techniques for its use in extractive metallurgy applications by mentioning several reactor types. Future prospects and scale-up possibilities of the hydrogen plasma in extractive metallurgy will also be presented.

Aug 21, 2024

By M K. Nahian, R G. Reddy

The thermodynamic model for species distribution in aluminium chloride (AlCl3) and 1-butyl-3- methylimidazolium chloride (BMIC) system was developed. The experimental thermodynamic data, considering a range of aluminium chloride species, such as AlCl4-, Al2Cl7-, Al3Cl10-, Al4Cl13-, and Al2Cl6 were used in developing the model. When the XAlCl3 was in the range of 0 to 0.50, only anion species Cl- and AlCl4- were existing in the solution. As the XAlCl3 value increased more than 0.50, the available anions were Al2Cl7-, Al3Cl10-, Al4Cl13-, and Al2Cl6. Specifically, the concentration of Al2Cl7- increased in the composition range from 0.50 to 0.67 XAlCl3, after which it decreased. This change in the concentration of Al2Cl7- was due to its reaction with excess AlCl3, leading to the formation of Al3Cl10-. The average cathode current density was determined by the electrochemical experiments varying XAlCl3 from 0.50 to 0.71 in the AlCl3:BMIC solutions. The average cathode current density increased as the XAlCl3 increased from 0.50 to 0.67. However, it decreased when the XAlCl3 > 0.67. This trend can be attributed to the electroactive species Al2Cl7-. The Al2Cl7- promotes the reduction rate at the cathode, resulting in an increase in the average cathode current density.

Aug 21, 2024

By Y Zhang, Z Zhao

The green production of the steelmaking process has urgent requirements for fluorine-free fluxes. In this article, a new solid waste-based slagging flux was applied in the external dephosphorisation test of low silicon hot metal to replace the traditional fluorite-lime dephosphorisation slag. The results showed that under laboratory conditions, the new flux was utilised for smelting low-silicon molten iron with a phosphorus content of 0.10~0.13 wt per cent, the temperature of the molten iron was 1350°C and the slag amount was controlled at 2 per cent. Within ten minutes of smelting, the dephosphorisation rate of the molten iron reached more than 50 per cent. When making slag with new flux, the slag melting time was about 40 seconds and the P2O5 content in the final slag was higher than 8 wt per cent. In the industrial test of a 150 t molten iron ladle, under the same molten iron conditions, an out-of-furnace dephosphorisation test was conducted in the Kambara Reactor (KR) process. The flux material consumption per ton of steel was 8~10 kg. Within 15 minutes of smelting, the dephosphorisation rate of the molten iron was about 30 per cent. During flux slag making, the slag melting time was about three minutes and the P2O5 content in the final slag was higher than 6 wt per cent. This new solid waste-based flux has significant cost advantages and outof- furnace dephosphorisation effects and is expected to become the benchmark for a new generation of fluorine-free steelmaking fluxes.

Aug 21, 2024

By S N. Donaldson, B L. Hollis, K Wynn, L Potts, M Evans

A real-time load-haul-dump (LHD) dispatch optimisation tool has been deployed at Panel Cave 1 and Panel Cave 2 at Newcrest’s Cadia Valley Operations. The tool, known as ORB, is the first known successful implementation of an optimisation-based, autonomous, real-time dispatch tool, custombuilt for underground mining operations. ORB can co-ordinate the optimal dispatch of LHD’s in a block cave to achieve a range of objectives while adhering to draw compliance and geotechnical constraints. It is an example of highly automated short-term interval control. This paper starts by outlining the pre-existing business planning process, detailing the simple logic that produced the daily draw order. Next, the motivations for a real-time dispatch tool are presented, drawing comparison to the limitations in existing planning processes and how these can be overcome through an optimisation-based, autonomous, real-time dispatch tool. Subsequently, the paper details the Ratio Bogging Draw Strategy, through which tonnes targets are expressed continuously on draw bells or draw points as a ratio of total cumulative cave draw. This signifies artificial planning boundaries are removed and that draw targets are linked within a cave; such that tonnes are unlocked by bogging other parts of the cave, instead of as a function of time. This creates incentive within the target mechanism for fixing and bogging struggling draw areas whilst allowing uncapped progress if all draw targets are progressing within compliance. Furthermore, the optimisation tool developed is outlined, including the data it uses and the objectives it optimises. Finally, detail on the improvements to operations the implementation of this tool has brought, and the business process change it has facilitated are presented using Newcrest’s Cadia Valley Operations as a case study.

Mar 15, 2021

By R Ballantyne, M Adams

Time Usage Models, used as a basis for calculating performance indicators for mobile mining equipment, have developed from very simple to very sophisticated models. This development has paralleled the increased collection and analysis of production data that itself has been enabled by the evolution of underground voice and data communications along with the relevant information systems. A Time Usage Model divides the hours that equipment is (or is not) used into standard components, by a hierarchical breakdown, so that measures of productivity can be used to compare performance of both people and equipment. The calculation of equipment availability, and thus the underlying Time Usage Model, has always been an extremely emotive topic as different groups use time usage information for different purposes. The direct link between measuring performance Key Performance Indicators (KPI) calculated from these models and employee rewards impacts upon the workforce. This paper discusses the conflict in use by various stakeholders and proposes ways to address some of the more contentious issues each supported by case studies. The simple status code functionality used by early systems has proven inadequate, leading to the evolution of “work-arounds”. These workarounds have become the norm and unfortunately have become embedded in the next generation of models and the information systems that incorporate them. This paper contends that the industry should stop building Time Usage Models to accommodate shortcomings in proprietary systems, but rather collaborate with suppliers to develop innovative methods to deal with the fundamental requirements. There are many points of differentiation that are not clear-cut. Pitfalls are discussed as well as threats to success. A framework of rules is developed as guidelines for how a Time Usage Model should be developed and applied. This will hopefully stimulate the on-going discussion as to how Equipment Availability and other components of the model should be calculated.

Mar 15, 2021

By Y Mita, T Iwama, R Inoue, S Ueda

In the iron and steel manufacturing industries, efforts are being made to achieve carbon neutrality by 2050, and the transition from a coal-based steelmaking process to that utilising renewable energy is being pursued. An alternative process in which directly hydrogen-reduced iron is melted in an electric furnace is being investigated. It is known that foaming slag reduces heat loss from the steel bath in electric arc furnace, but iron loss due to the suspension of steel particles in the slag is indispensable. To improve the separation of steel particles from the slag, the control of the slag viscosity is important. Although the slag viscosity has been extensively studied, in those studies the slag was considered to be a simple liquid. However, in actual operations, slag is a multiphase fluid consisting of solid, gas and liquid phases. Therefore, in this study, by measuring the sedimentation velocity of titanium, stainless steel and glass spheres in an aqueous glycerin solution containing bubbles generated by the reaction between NaHCO3 and C2H2O4, the apparent viscosity of the gas-liquid fluid was evaluated based on Stoke’s law. It was found that the apparent viscosity of the gas-liquid fluid is larger than the viscosity of liquid phase and depends on both the bubble volume ratio in solution and the density of the falling solid sphere, and the apparent viscosity was different from that previously obtained by the rotation method. The apparent viscosity derived from the sedimentation velocity of solid spheres changed depending on the specific gravity of the ball. This is because the apparent viscosity is derived from the velocity of a ball falling in a static bubble in this method, whereas that is derived from the force applied by a stationary flow in the rotational method.

Aug 21, 2024

By H S. Pescini

A material aim when feeding ore blends into a processing facility is to reduce the variability of the properties of the feed material and to maximise the output, or throughput. At the Mining Geology conference of 2019, we presented a paper on optimal blending of coking coal given geological variability. The paper introduced integer-programming techniques to both maximise value and minimise feed or product variability. We discussed an application where the geological uncertainty is characterised using a normal distribution and exact solutions are readily obtainable using second order conic constraints in the mathematical model. Geological uncertainty is not always normally distributed, many properties will be characterised as log normal or some other skewed distribution. For example, copper can be some form of lognormal and Fe in Iron ore has a left skewed distribution. In this paper, we discuss some distribution free techniques to optimise the blends of plant feed or output given a quantified geological uncertainty. We discuss the sample average approximation method and how to set-up and apply the method to an ore blending problem. Evaluating a case study demonstrates that the explicit use of non-normally distributed geological uncertainty can better optimise feed into an ore processing facility and potentially add significant value. The approach is equally applicable to all mining and processing operations that blend material into a processing facility or directly into a saleable product.

Mar 22, 2022

By R J. Goldie

The Monty Copper Gold Deposit is an ultra-high grade mine in Sandfire Resource’s Doolgunna region which was completely drilled out and developed within two years of commencing mine development. During this period, a total of 986 grade control diamond drill holes were completed, assayed, and validated, 15 levels developed, and 3136 faces mapped. The aggressive schedule meant a high flow of geological data was produced, validated, and incorporated into regular geological model updates. To process this data at a rate which allowed for timely use, more robust data processing methodologies needed to be generated. A new validation system was implemented which required two levels of validation being applied to any diamond drilling update. Step one was the validation of initial physical data including survey pick-ups and logging. This was done prior to new drill data being added to the geological model. Step two was the validation of assay data which was required prior to resource estimation. The implementation of Seequent’s Leapfrog Geo modelling software also allowed for a more seamless and efficient modelling workflow. The use of the Leapfrog Geo vein systems allowed for more rapid generation of geological models which then afforded more time for stringent assessment of the mineralisation system. An example of this was the introduction of cross-shift peer reviews in which opposing rosters of geologists would rigorously evaluate the previous rosters work prior to reporting. This additional level of validation resulted in more robust geological models and the identification of new ore trends. This presentation will detail the evolution of the Monty Geological model from a simple tabular indicated resource into a complex highly refined measured resource. Themes will include how the model was produced using workflows developed and optimised to meet key deliverables.

Mar 22, 2022

By K L. Avarmaa, M A. Rhamdhani, A D. P Putera, H T. B M Petrus, G A. Brooks

Multistage slag treatment was carried out to investigate boron removal from metallurgical grade silicon. Boron is known to be one of the most difficult elements to remove from silicon. Depending on boron initial concentration, boron can be removed from silicon into certain level; most previous studies have attained final 50–100 ppmw (parts per million weight) boron in the silicon using slag treatment. The term ‘multistage’ refers to a process where the resulting silicon from the initial slag treatment is further refined multiple times using a new slag. In this study, an initial slag composition of 45CaO-45SiO2-10Al2O3 (wt per cent) was utilised. Using this technique, boron level in the silicon was expected to be gradually lowered because the new slag will always have more capacity to reach the equilibrium distribution coefficient (LB = (ppmwB)slag/(ppmwB)Si). The current study was carried out through combined thermodynamic calculations (using FactSage™ ver 8.2, by Thermfact Ltd, thermochemical package) and high-temperature experimentation. The thermodynamic calculations were carried out for reactions at 1500, 1550, and 1600°C for three different scenarios: 1. Single stage refining with varied slag to Si ratio. 2. Multistage refining with slag to Si ratio of 1:1. 3. Multistage refining with slag to Si ratio of 2:1. The multistage experimental work was carried out at 1550°C under inert gas atmosphere each time for 2 hrs, with slag to Si ratio of 2:1. The simulation results indicate that the boron distribution coefficient stay essentially constant with varying slag to Si ratio and temperature, around 1.8 to 2, and the experimental results measured LB in the same range, between 1.5 and 2.5. By harnessing this feature, the simulation showed that boron can be removed by approximately 78 per cent in each stage. The experimental result confirmed that the boron concentration in the silicon was reduced by a total of 97.8 per cent from its initial value using four stages of slag treatment, from initial 270 ppmw down to 6 ppmw.

Aug 21, 2024

By M Akop, G Phillips, L Elliott

An estimation geologist has many tools in their kit and using the correct one for the job is vital for creating a useful model. Reconciliation is a key step to monitor the performance of a resource model and to ensure the correct tools have been selected and appropriate parameters are set. This paper presents an example of refining the estimation methodology for a Channel Iron Deposit (CID), resulting in an improved model. Rio Tinto Iron Ore (RTIO) CIDs are unique iron ore deposits located in the Pilbara region of Western Australia and contribute a significant volume to the world’s seaborne iron ore market. A problematic feature of these deposits is the irregular dispersion of clay pods that cannot be delineated with confidence within the resolution of the exploration drilling. Resource to grade control reconciliation showed an over-prediction of high-grade material in the resource model. A fresh approach was required to improve grade and tonnage predictions. Historically, clay pods were delineated using traditional wireframing techniques and estimated using ordinary kriging with hard boundaries. The new method utilised indicator kriging to estimate the probability of clay. Probabilities generated from the indicator kriging estimate were used as an additional weighting following the ordinary kriging of grades. Results showed indicator kriging improved global high-grade tonnes reconciliation, however, as expected, it did not improve the spatial prediction of clay. Based on improved reconciliation results indicator kriging has now been adopted as a suitable alternative for analogous CIDs at RTIO. These improvements benefit the mine planning process, but do not replace grade control models.

Mar 22, 2022

By P Chapman, B Moosapoor

The objective of this paper is to present the potential applications of geostatistical analyses in planning CPTu investigations, as well as interpolation of CPTu data. The paper presents a case study of a geostatistical analysis of CPTu data undertaken between 2004 and 2017 for an upstreamraised TSF located in the Goldfields region of Western Australia. An initial model is developed using the 2004, 2009 and 2017 CPTu data. The model is used to predict in situ cone tip resistance (qc) measurements, as the interested primary variable, at the selected locations where 2019 CPTu were undertaken, and the results of the prediction and the actual data are compared.

Jul 1, 2021

By C W. Davis

Every diesel engine emits approximately 100 million nano diesel particles (nDP) per cubic centimetre of raw exhaust. Each nDP has a diameter of between 50 and 70 nano metres or 1/100th the size of red blood cells (diameter of between 6 and 8 microns). When inhaled, some nDP pass through the lungs and penetrate all body tissue [1]. Europe and North America have recognised and are addressing the long term health problems posed by nano diesel particulate matter (nDPM) across their societies [2.3]. Australia has been slow to recognise the issue, at both a societal and mining industry level. There are chronic health effects for every underground miner and serious legal issues for mining companies with increasingly stringent Occupational Health and Safety legislation being implemented at a state level across Australia. This paper will review progress within Australian society and more particularly the underground hard rock mining industry, particularly in Western Australia (WA).

Mar 15, 2021

By W Patton, I Minniakhmetov, H Talebi, U Mueller

The sustainability of mining projects is linked to informed investment decisions based on public reporting of exploration and mineral resource estimation results. In Australia, public reporting guidelines are established by the Joint Ore Reserves Committee reporting code through the JORC Code (2012). Although the assessment of uncertainty in the results reported is a requirement, this is often communicated qualitatively and evaluated subjectively. This can become a liability particularly in the early stages of mining projects when spatial domains of geological interpretation and mineralisation envelopes inform resource estimations’ reliability. A recent review of JORC reports found no reports used quantitative assessments of the geological interpretation or mineral resource estimation envelopes, and 27 per cent of reports did not address the question of quality of geological interpretation. Reports that did address the quality used 19 different terms to communicate quality. This work presents methodologies for quantitative uncertainty assessment and communication and explores how they could be applied in public reporting practice. Quantitative uncertainty reporting would benefit mine planning and financial modelling as they normally assume the geology is 100 per cent right (since no error is reported or only a single deterministic model is provided). The complexity, cost, and additional work of doing a quantitative assessment could hinder a straightforward implementation. This could be overcome if mining companies budget for quantitative uncertainty assessment and associated professional development. A compulsory requirement for the inclusion of uncertainty assessments in public reporting or adopting standardised subjective language would improve industry practice.

Mar 22, 2022

By H Yuan, H Tian, Y Zhang, Z Wang, C Wang

Submerged arc welding (SAW) is one of the significant metal-joining processes for manufacturing marine vessels, steel pipes, and offshore structures with high deposition rate and engineering reliability. Welding flux serves several essential functions, including atmospheric shielding, arc stabilisation, bead morphology control and weld metal (WM) refinement. Therefore, from a thermodynamic point of view, the focus for flux design and WM compositional/microstructural modification has been placed to elucidating the transfer pathways and mechanisms of major alloying elements, such as Si, Mn, Ti and O during welding. To this end, a thermodynamic model has been established to predict alloying element contents in the WM. Such functions are enabled by the physicochemical properties of the fluxes, which are inherently rooted in the nature of the fluxes. A unique yet systematical investigation, including physicochemical property changes and structural evolution behaviours, has been conducted over the wide range of fluxes applied to actual welding of EH36 shipbuilding steels. Combined with spectroscopic methods, structural behaviours of network formers such as SiO2, Al2O3 and TiO2 and network modifiers such as MgO, MnO and CaO have been illustrated. Viscosity and ionic conductivity have been found to be positively associated with the degree of polymerisation.

Aug 21, 2024

By S Kakara, A Kamaraj, S S. Varanasi, B V. R Mandalika, M B. Shaik

The properties of top slags play a very important role in secondary steelmaking. Fluxes should be chosen based on the ladle furnace (LF) slag requirements like viscosity, melting temperature, sulfide capacity, etc. CaF2 and CaO-Al2O3-based synthetic slags are the most used fluxes in secondary steelmaking to improve slag fluidity and interfacial chemical reactions. CaF2 is obsolete due to fluorine pollution and CaO-Al2O3 based slags have 40–50 wt per cent Al2O3 and 30–40 per cent CaO which is not beneficial for desulfurisation. Yet another drawback is that LF slag disintegrates into fine powder during cooling due to phase transformation C2S (2CaO.SiO2). Hence, there is a need for the development of low melting fluxes with high CaO content and the capability to prevent slag disintegration. The current work studied the effect of 0–9 wt per cent B2O3 on physico-chemical properties and characterisation of LF slags. X-ray diffraction (XRD) analyses were carried out to identify mineralogical phases present in slag and Fourier-transform infrared spectroscopy (FT-IR) analysis was done to understand the changes in bonds of B2O3 added LF slag. The characteristic temperature of slag was determined by a hemispherical method using high-temperature microscopy. Empirical models were used to calculate viscosity, break temperature, and sulfide capacity. FactSage™, ver 8.2 (by GTT-Technologies) simulations were carried out to find the equilibrium phase fractions and percentage of liquid slag at different temperatures. New phases such as Ca11B2Si4O22 and Ca2B3O5 were formed in LF slag with B2O3 addition. Based on the results, 0.5–1.0 wt per cent B2O3 was found to be sufficient to prevent C2S-driven disintegration of LF slag. Also, the melting temperature and viscosity of LF slag were reduced by adding 3–8 wt per cent B2O3 due to the formation of BO3 planar triangular structure and low melting eutectics in slag. Liquid slag started forming at a temperature as low as 800°C when B2O3 is >6 wt per cent. It was found that the sulfide capacity, viscosity, and break temperature of the slag decreased with increasing wt per cent B2O3. Based on the analysis carried out, B2O3 can be a promising fluxing material in secondary steelmaking, for improving the desulfurisation kinetics and valourisation potential of LF slag.

Aug 21, 2024

By C Laming, P M. Hetherington, F A. Pym, M P. Murphy, K E. Crook

Reconciliation is a powerful tool used by mining operations to compare the mass and grade of ore produced with what was estimated before mining. The primary objective of reconciliation is to verify that the estimated planned metal production is achieved during processing, allowing issues to be identified for which adjustments can be made throughout the mining value chain to improve recovery and maximise efficiency. Traditionally, the mine plan is based on estimated mine grades using sampled exploration drill hole or blasthole grades. Reconciliation discrepancies between the mine plan and mill are common due to such factors as insufficient or non-representative sampling, poorly conceived models, or unrecognised blast movement. MineSense Technologies Limited® (MTL) has developed an X-ray fluorescence (XRF) sensor-based ore classification system that is installed on mining equipment to provide real-time grade estimates of run-of-mine material at bucket, truck, or belt-scale. Bucket level grade estimates provide insights into grade variations at the mine face that were never before available. This data set eliminates some of the leading causes of reconciliation discrepancies and enables tracking of tonnages and grades from the mine face to the processing plant at bucket resolution with confidence. Bucket-by-bucket grades at the mine face enable dynamic optimisation of the mine plan to stabilise the mill feed grade through blending of mine and stockpile loads. Beyond stabilising feed grade, Mine to Mill reconciliation combined with the full XRF spectrum response can generate proxy relationships to ore characteristics like hardness and recovery. These properties can then be predicted at the mine face, enabling further optimisation of the downstream mill feed, not only for grade, but also for power and water consumption, reagent addition, and recovery. This paper presents the benefits of MTL technology for grade reconciliation and mill performance optimisation at a Cu Mine in BC (Canada).

Mar 22, 2022

By D Stephenson, N R. Steward

“TerraFlowingTM” is a dewatering process that addresses both the value proposition of Tailings as a Resource™, and the safe storage of tailings. “TerraFlowingTM” incorporates two stages of cyclone dewatering followed by centrifugation of the final dilute tailings stream. In this process three dewatered tailings streams are produced; a primary cyclone underflow, a secondary cyclone underflow and a centrifuge pulp. These three streams can be combined, or used, in various configurations to achieve different outcomes. The ability to vary the cyclone and centrifuge operations and configuration enables this process to deal with tailings feed variations in particle size distribution and mineralogy and deliver consistency, or design variations, in particle size distribution, tailings solids concentrations and recoveries. Water recovery can be up to 85% of the total water in the tailings with a stackable final tailings product achieved if the three tailings streams are combined in the maximum solids concentration configuration. The primary cyclone can be operated to deliver a particle size distribution suitable for tailings storage facility embankment construction or alternatives such as concrete structures or shotcrete for support. The secondary cyclone underflow and centrifuge pulp is suitable for beaching deposition within the tailings storage facility.

Jul 1, 2021

By N Anderson

With traditional grade control processes, geological models are created by geologists at the completion of the data collection stage and wireframe construction is closed off at a set date to allow for time to complete the estimation process. Any issues identified at earlier stages or the addition of new data requires the estimation process to be started again. Alternative interpretations are explored only if time allows and often in a limited fashion. An alternative workflow has been developed at the Waihi Underground Gold Mine utilising Leapfrog Edge and Seequent Central. Geological and grade control models are created, dynamically linked, and saved as separate branches. A project geologist is able to work on the grade control model and a mine geologist on the geological model simultaneously. This allows for a non-linear modelling workflow with continual review and feedback. The introduction of new data can occur right up to the model due date, with data collection, validation, alternate interpretation, and review happening incrementally. Models are categorised and stored in Seequent Central according to project status. An approved version of the geological model and grade control estimate are uploaded at the time of release and transparently capture all data used at a point in time, as well as the review process. Dynamically updating models for grade control has reduced turnaround time while increasing accuracy and quality. Estimates of individual domains are vastly improved from being able to rapidly evaluate the effects of model parameter changes in real time and 3D. Development and stope design directly benefit from these streamlined processes, with higher quality, timely production occurring as a result.

Mar 22, 2022

By P Ring, B Cooper, C Carr, G Laing

The Nova Ni-Cu-Co Operation, located in the Fraser Range of Western Australia, commenced commercial production in July 2017 only five years after discovery. Owned by Independence Group NL (IGO), the operation has successfully ramped up over an accelerated schedule and currently deploying leading technologies. This paper begins with a description of the Nova Operation, and its journey to achieve full production in such a short time frame. It includes discussions on development and production design, selection of fixed plant infrastructure, and the features challenges of running a low-pressure primary ventilation circuit. The paper also discusses key technologies that have improved overall safety for the underground workforce, and improved operational efficiencies. Investigations continue into the implementation of further technological applications for safety and productivity enhancements. This paper also discusses the findings from a study into transitioning from a diesel to an all-electric underground mining fleet, based on a review of Nova if it were to be developed today with the current EV offerings. The study indicates compelling savings will be available to future mines when considering development design, project schedule, capital outlay and operational savings, and the ‘next Nova’ is expected to be all electric.

Mar 15, 2021

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022