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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

Biologically-mediated phenomena are involved in many of the natural processes by which mineral deposits are formed and ore bodies transformed and degraded. They may facilitate the environmentally-damaging effects of mining and mineral-processing operat- ions. Under contrived and controlled conditions, however, these phenomena can form the basis for economically- attractive processes for the recovery of metals from low-grade deposits by dump, heap or in situ leaching. They have application also in processes for the regeneration of leaching reagents and some potential for'-the recovery of metals from dilute solution. The micro- organisms concerned are potential sources for the production of novel flotation and solvent-extraction reag- ents. Perhaps the greatest opportunity for biotechnological processes in min- ing and metallurgy lies in the possib- ility of the evolving of novel proced- ures for the substantially complete recovery of metals from process tail- ings by the unlocking of recalcitrant and complex mineral assemblages, and for the beneficiation of some mineral materi,hls.

Jan 1, 1982

Weinberg, born and educated in Germany, worked in'the American West for 10 years as a mining engineer and metallurgist. He was the first head of the Queensland Smelting Co. and from 1889 through 1915 was a prominent mining figure in Queensland. He was a competent manager at Aldershot, Dapto, and Chillagoe, but always lacked huge ore deposits for his smelters.

Jan 1, 1985

By P H. Warton

It is proposed to construct a gold extraction plant at Matatoki, near Thanes. Ore to be processed at the mill will come from reopened and enlarged underground mines north of Thanes. The project has been described in some detail in environmental impact reports (Worley Consultants Ltd 1984, 1987), and is now at an advanced stage in terms of obtaining the required statutory approvals.

Jan 1, 1987

In the future, Illawarra Coal, the primary metallurgical coal producer in the southern coal fields of New South Wales, will face many unique challenges not found in other coal or minerals production areas. To manage these challenges and determine the best strategy for the business, Illawarra Coal has adopted a systematic strategic planning process, which starts from the broadest possible options analysis and culminates in a ægo-forwardÆ operating case that individual mine sites use as the basis for short-term planning. This paper will discuss two major topics. Firstly an overview of the Illawarra Coal and BHP Billiton strategic planning processes. This will demonstrate the range of variables and inputs that are required for the planning process, and the system which is followed to evaluate different alternatives for the extraction of the resource. Secondly, having discussed the primary external and internal factors that must be accounted for in the planning process, and the main issues affecting the viability and likelihood of each alternative, the paper will discuss the particular challenges that Illawarra Coal will face in the coming decades. These challenges include: market and price uncertainty; managing impact on surface features, infrastructure and environment; community interaction; transport and logistics constraints; unknown mining environments; lack of geological knowledge; limited surface access for new mining domains; changing attitudes to longwall mining in the Illawarra; ageing workforce; and cost and overhead management. The paper intends to discuss how these issues impact the business currently and how they are incorporated into Life of Asset plans and overall corporate strategy for Illawarra Coal.

Jan 1, 2007

By E McLean, J Fleay, M Davis

Performance testing is often used by project owners and financiers to provide protection from, or assessment of, technical aspects of project design, procurement, construction and commissioning. The performance tests can range from comprehensive performance warranties relating to process performance and production in the case of lump sum turn key (LSTK) projects to less onerous demonstration tests for cost reimbursable contracts. This paper will discuss performance testing from both the contractorÆs and ownerÆs perspectives and focuses on: when performance tests are required, what type of performance test/warranty is optimum for each type of project, and how project performance should be evaluated. The requirement for performance testing can be driven by the project financiers, particularly in the case of smaller resource development companies. In such cases, differentiation between ownerÆs risk and contractorÆs risk can become contentious. At the other end of the spectrum, larger mining houses may choose to heavily influence the engineering and design process with the contractor supplying services on a reimbursable basis. In that case, the performance testing process is often limited to demonstration tests that validate performance for the ownerÆs corporate governance requirements. This paper was prepared due to the lack of published benchmarking of performance testing and the resultant differences in expectations between a contractor and a project owner that often surface late in the contract negotiation process. The paper provides a checklist of requirements for both the owner and the contractor that may be used to provide æcommon purposeÆ early in the contract negotiation process.

Jan 1, 2007

I have chosen this topic for my address with the intention of preserving a rather extraordinary record of recurrent additions of capital in the financing of one of the world's important silver-lead-zinc mines. The recitation of the trials and tribulations which fore-shadowed the rise of Mount Isa Mines to a position of relative prominence in the realm of non-ferrous mineral production may, I hope, be of assistance to some of the younger members of the Institute who may be called upon during their careers to meet similardevelopmental and financial problems.Mount Isa Mines Limited was incorporated in New South Wales in 1924 with an Authorised Capital of 40,000 shares of £20 each.In November 1925 the Company acquired the leases and water rights of the Mount Isa Proprietary Silver-Lead Limited for 6,250 fully paid £20 shares. Shortly thereafter, but in the same year, the £20 shares were split up into £1 shares, thus bringing the Authorised Capital to £800,000.The leases purchased consolidated and brought under one management the principal ore bodies of the Mount Isa area.Transportation facilities were indispensable to the economic future of the field, so the construction of a railway extending the Government line from Duchess, 54 ,miles to Mo.unt Isa, was assured by the passage of a bill in October 1925 by the Queensland Parliament. Under the provisions of the so-called Mount Isa Railway Act the Company was required to idemnify the Government against national loss on this branch line for a period of 10 years.

Jan 1, 1953

During October 1947 an Authority to Prospect was granted by the Minister of Mines to lVIount Isa Mines Limited over an area of approximately 75 sq. miles to the north of Mount Isa.Application for the Authority to Prospect had been made after Zinc Corporation Limited had been granted prospecting rights over two areas, one of 1,265 acres immediately to the north of the Mount Isa Mines leases and the other of 1,960 acres adjoining the south end of Mount Isa Mines leases.METHODSAs a means of providing a cheap map of sufficient accuracy on which to plot geological features, both Mount Isa Mines Limited and Zinc Corporation Limited agreed upon aerial photographs and the two companies shared the cost of an aerial photographic survey by Adastra Airways of 130 sq. miles which covered the prospecting areas held by both companies.The photographs were on a scale of 800 ft. to I in. with 60% overlap on the north-south runs and 25% overlap east-west. A set of alternate prints enlarged to 400 ft. to 1 \in. were obtained for field work. The 400 ft. to 1 in. scale unglossed photographs (size 18 in. x 18 in.) were taken On to the field and rock outcrops, and uncorrelated structures were plotted directly on to them in red crayon pencil. The geological observations were then transferred in the office to a tracing on which accuracy of azimuth and scale was controlled by use of a photo mosaic and ground surveys.

Jan 1, 1953

During the 1998/99 Asian crisis Solid Energy's export revenues collapsed from over US$70M to under US$40M. Simultaneously, domestic market uncertainty led to decreases in volumes and prices. A major new underground mine was not technically viable, and was closed, and several other mines were marginal. Less than two years later, Solid Energy and its JV partner closed a second new underground mine. The company was in financial crisis, and reported an $86M loss for 1998/99. After refinancing with stringent workout conditions it still had minimal returns due to low prices, unaffordable transportation costs and huge unrealised FX losses as the NZ dollar fell 40 per cent in value. The obvious scenario was to æcash upÆ û complete extraction at remaining mines, sell off any viable parts of the business, pay off debt and wind the company down.In 2002 Solid Energy has completed its recovery. Although margins remain slim and volatile in both export and domestic markets, it is achieving record volumes and revenues. It has paid off its shareholder loan, has minimal remaining FX losses, and cashflow is allowing further mine and infrastructure development. The key to the turnaround has been implementation of rigorous planning, analysis and decision-making in all aspects of the business. The company has a comprehensive, rolling 20-year plan used annually to update rolling five year and annual business plans. Solid Energy augments strong line management operations with rigorous standards and processes for mine planning and development, operational decision-making, and functional support. Detailed, quantitative risk analysis is used in all aspects of the business and allows comprehensive integration of opportunity and risk management across all activities in the company.Coal mining is widely perceived as an æold-economyÆ industry. But, like other successful æold economyÆ companies, the information systems and management processes used by Solid Energy are as leading edge as any in the high-tech sector. They are the key to managing to add and sustain maximum value for a company that has access to coal resources sufficient for hundreds of years.

Jan 1, 2002

The Porgera gold project is now in its seventh year of operation as one of the world's prime gold mining projects in one of the most underdeveloped and remote regions of the world. The unique gold deposit was development in stages to its present size of operation with an underground mine of 2000tpd, an open pit operation moving 210,000tpd and a complex metallurgical plant treating an average of 16,500tpd of ore. During the past years the operation had to address an array of issues relating to the "development" of the region and this is still ongoing. Development means different things to different people and though the parties that signed the different agreements relating to the Mining Development Contract were aware of this, none has real- ised the extent to which this is true. The developing company (a joint venture between Placer Pacific as the Manager, Goldfields Porgera, Highlands Gold and the Government of PNG), provided funds for risky exploration and the capital for development of the project. Its shareholders ex- pect an economic and viable mine operation from the deposit to ensure them returns on their investment. The local people gave up their land, their isolated way of living and accepted to be out of their comfort zone for some time in anticipation of a better lifestyle and economic benefits in support of that lifestyle. The PNG Government has a leg in both camps and expects both outcomes at the same time. The Government is also the regulator and expects compliance on top of that. If development in general is to be successful, all parties must substantially satisfy all expectations. It is evident that the outcome of some elements of development are reasonably defined (i.e. develop a viable mine to exploit the deposit), whilst other elements are moving targets (i.e. a better lifestyle). The seeds for conflict are thus abundantly present and to resolve them requires the will of all parties in all areas to come to a solution. This path to problem solving is many times torturous as each party comes from a different culture and background and has a different understanding of the parameters in the equation.

Jan 1, 1997

By Sale M, Clarke R, Parker M

The Mount Gibson goidmine is located at the southern end of the Retaliation greenstone belt within the Murchison Province, approximately 300 km northeast of Perth, Western Australia. Economic gold mineralization occurs in the upper part of a Tertiary lateritic surface; its ultimate source presumably being Archaean greenstones. Gold is present in the laterite profile over a distance of 4 km in four separate prospects, from north to south, Mount Gibson Well, Midway, Orion and Tobias Find, the two last constituting the Mount Gibson mine. The area has'low relief. A low ridge to the west of the mineralized zone is formed mainly of rubble with minor outcrops of mafic volcanic and intrusive rocks. The terrain slopes gently to the northeast, and the maximum relief, in the vicinity of the mineralization, is about 20 m. The weathering profile comprises, from the surface: (i) soil, windblown sand or colluvium (thin), (ii) laterite; hardcap (including ferricrete and lesser silcrete and calcrete) is overlain by loose nodules and pisolites, and passes downwards into a mottled zone of variably ferruginized clay, (iii) clay; mainly pale brown, cream or yellow in colour, but in places contains relic quartz veins or dark ferruginous zones, (iv) clay with fragments of altered rock; normally grey to pale green in colour but sometimes includes an oxidized iron-rich horizon just above the weathered/fresh rock interface, (v) bedrock. The complete profile varies from 10-100 m thick, averaging 20 m. Zone (ii) is commonly 3-5 m thick. Loose pisolites of this zone fill cavities in the massive ironstone left by former tree roots, and cover irregular depressions which may represent former stream courses. Samples, representing 3 m intervals down the holes, have been collected from cuttings taken from rotary drill-holes along each of four traverses; one traverse at each-of the northern prospects and two traverses in the Orion part of the mine area. These samples have been submitted for X-ray diffraction analysis and for chemical analysis for a wide range of elements. Bedrock lithologies have been determined from microscope studies of bottom-of-hole chips.

Jan 1, 1988

Equity finance provides the most suitable and frequently the only access to capital during the exploration and evaluation stages of resource projects when project risk is at its highest. Investors are prepared to provide equity funds in the knowledge that they are compensated for the higher risk they take on with higher potential returns or sufficient upside potential to justify the higher risk. The context of resource projects which determines the role of equity finance has changed considerably. Prior to the resurgence of the gold price and the development of new mining technology many resource projects were selectively mining orebodies by underground methods frequently with limited reserves proved up in advance of mining. The limited proved ore reserves base and the volatility of the gold price all contributed to a higher risk and higher return investment environment in which the use of equity finance was more appropriate and frequently the only option for capital raising. The financial risk of a resources project can be transferred to an underwriter who makes the commitment to distribute the financial risk between a number of investors. There is also the opportunity for financiers to use a mix of equity and debt finance to allow a company to proceed with the development stage where without such a mix the resource project would not proceed. By using a level of equity finance the project becomes robust enough in its ability to service the debt finance facility and the project proceeds with the equity participants receiving a suitable risk reward return. The liquidity from the establishment of a market for the company's securities enhances further capital raising and generally enables the company to satisfy its financial requirements on more favourable terms particularly during bull markets. The role of equity finance in the management of the financial risk during the exploration, evaluation, development and mining stages of resource projects is summarised in Table 1. In more detail the principal roles of equity finance and the ways in which equity finance impact on the risk management of resource projects will be considered in turn.

Jan 1, 1994

Thank you and good morning. I am delighted to be here and to see so many of my colleagues and competitors. The general topic of this week's conference - World's Best Practice in Mining and Processing - suggests a focus on mining and processing. I am somewhat of a `jack of all trades and a master of none'. But I'm not even a jack when it comes to mining and processing technology and practices, and so I will leave those topics to speakers better 'qualified than I. Instead, what I would like to do is give you my thoughts on the best management practices of mining. You see, the times are changing for the mining business. There is great uncertainty in our industry. Anyone who received their education in an English-speaking school probably remembers the famous poem `Invictus' by William Ernest Henley. The two most famous lines from that poem are, if you remember, `I am the master of my fate; I am the captain of my soul'. The fact of the matter is that the metals industry, including the copper industry, is not the master of its fate. To a great extent we're at the mercy of forces over which we have little control, such as the world economy or political situations in individual countries. The copper industry is like a surfer at Manly - we can't influence where the wave is going; all we can do is stay in front of the curl and on our board. Historically, discovering, developing and processing ore reserves were the primary facets of our capital intensive business. To stay competitive today, we must invest equally in intellectual capital - our employees - in order to succeed in the face of economic, regulatory and political challenges and global competition (Schonberger, 1986). Everyone seems to have a different theory about being competitive. A lot of people use sports analogies when talking about competition. Others, like American businessman and former US presidential wanna-be Ross Perot, take a more interesting approach. In Mr Perot's hypothetical corporation, competition is a lot like having a snake in a factory. If someone sees a snake, the first thing they do is create a committee on snakes. Then, the committee on snakes meets and discusses the problem for a couple of years. The most likely course of action is nothing. Everyone figures that the snake hasn't bitten anyone yet, so they just let him crawl around the factory floor. Perhaps a vice president of serpentine affairs is appointed to continue watching the snake - making sure it doesn't grow. Ross Perot sees it a little differently. In his corporate world, business needs to build an environment where the first guy who sees the snake kills it. Of course in our industry, we better make sure the snake isn't on an Endangered Species List before we go after it! I am not going to talk about competition and competitive forces in terms of sports or snakes, but I would like to share some thoughts with you about how the mining industry can better utilise competitive thinking to get ahead and stay there. You may be wondering how an executive from a 160-year-old company could know much about competitive spirit, but the founding ancestors of Phelps Dodge were wizards at identifying

Jan 1, 1995

By M A. Ohsberg, A C. Robertson

Quarrying in Australia accounts for a total annual production of around 200 Mt/a of sand, aggregate and materials used in construction. This material has an annual value of the order of $2 billion and, combined with transport costs of a further $1 billion, the annual value of quarry products are in excess of $3 billion. Currently all of the production of construction materials in Australia is from open cut quarrying or dredging. This paper focuses on the extraction of material by underground mining methods, termed æunderground quarryingÆ. The paper considers a case study for future underground development expansion of the existing open cut Mt Coot-tha quarry, located 5 km from the centre of Brisbane, Queensland.

Jan 1, 1999

By Parsons AE, Lewis IE

Selenium is a minor constituent of the raw materials processed by the Cockle Creek smelter of Sulphide Corporation Pty. Limited. Certain proposed raw materials contain higher levels of selenium, and these will create a problem with regard to the composition of liquid effluent discharged from the smelter. A method has been developed for removing selenium from the smelter circuit by the sulphation of the fume collected in the Acid Plant electrostatic-precipitators. It is planned that by treating 10-20% of the total dust arisings there will be a substantial reduction in the levels of selenium reporting in effluents when treating selenium-bearing raw materials. The selenium is recovered in elemental form.

Jan 1, 1978

The complicated mining-geological conditions in the Kuzbass have led to some difficult mining situations in the past. Now, with historical data, supplemented by geomechanical information and measurements, together with an appropriate kinematic theory, a more reliable basis exists for prediction and control of the geomechanical state during extraction, with caving and with backfilling. Continued progress and improving reliability comes from data banks and computations, and now prediction of geomechanical situations is upgraded by more routing measurements and monitoring. Not only in the Kuzbass, but throughout the USSR, 14 dedicated groups are ready to solve various specific problems of prediction an control of geomechanic situations with assured increase in the quality of mining.

Jan 1, 1991

By J Lane, D J. Barker, B Pei

Queensland Alumina Limited (QAL) is the worldÆs largest producer of smelter grade alumina, located in Gladstone, Queensland, Australia. The plant employs evaporative cooling towers for waste heat rejection. Process water requirements include red mud residue disposal, steam venting to the atmosphere and Calcination feed moisture. Raw (untreated) water consumption in 2001 was 37 700 m3/d or 3.8 m3 per tonne of production. The Gladstone region experienced a water shortage in the period 2001 to 2003, resulting in progressive water restrictions. Industry operated under a ten per cent restriction from April 2002 and in November 2002 a 25 per cent restriction came in force. The maximum restriction level of 50 per cent was anticipated for the middle of 2003. Water restrictions of these magnitudes have the potential to result in significant production limitations, which would have major economic consequences for QALÆs owners, customers, suppliers and employees. Therefore it was imperative that measures be found to mitigate the impact of these restrictions. Furthermore, as one of the largest water users in the Gladstone region, QAL had an obligation to the community to minimise water usage as much as possible. A thorough analysis of water usage on site was conducted, focussing on all water streams leaving the plant. The philosophy used was that by minimising water outputs, the inputs would follow suit. Where possible, preference was given to solutions that provided lasting water savings. This occurs when the value of the water saving justifies the project cost, irrespective of water restrictions. By June 2002 an average water saving of 19 per cent was achieved, almost double the required saving. By end November 2002 further projects had increased the total water saving to 29 per cent, mainly through the re-use of GladstoneÆs municipal treated effluent as wash water. Further measures to reach the target of 50 per cent reduction were investigated. The evaporative cooling system was to be replaced with seawater cooling, using cooling towers to minimise the seawater pumping cost. Another benefit of this concept was the ability to dispose of the cooling tower bleed stream with the existing system for neutralised red mud disposal. This would avoid the need for an additional environmental outfall from the plant. In February 2003 the Gladstone region received over 500 mm of rain, which boosted water reserves to five years supply at forecast usage rates. This led to the lifting of all water restriction. As most of the implemented water savings measures are economically viable in the absence of water restrictions, raw water usage at QAL is still less than 75 per cent of pre-2002 levels.

Jan 1, 2003

By G D. Price

The Golden Blocks Goldfield is located in the Slaty Creek area,North West Nelson, about 20 km west of Collingwood. Alluvial gold was discovered in Slaty Creek in 1861. Gold was mined from quartz veins up to 1.5 m thick at nine mines from the 1890s until the closure of the Aorangi Mine in 1911. Total production from the Golden Blocks Goldfield is estimated at 46 000 ounces of gold. The Aorangi Mine was the largest mine, with a recorded production of 27 978 ounces of gold at an average grade of 36 g/t. Quartz veins containing gold and sparse sulphide mineralisation occur in a slightly metamorphosed, complexly deformed over-turned sequence of Lower Ordovician sandstones and shales. Primary gold mineralisation is associated with intensely deformed zones that occur near or at carbonaceous shale and sandstone contacts. Some eighty-five percent of all gold production (39 000 ounces) came from four mines confined to the stratigraphically lowest, most widespread shale unit. The quartz veins exhibit textures consistent with a hydraulic fracturing mode of vein formation with fissure infill vein types predominating over replacement textures. Stylolites of carbonaceous material and recrystallization features within the veins suggest multiple phases of deformation. The lack of wall rock alteration, and low primary fluid inclusion temperatures of 200¦ - 265¦ indicate that the ore fluids were associated with a low temperature epithermal system. A model consistent with similar mineralisation styles observed in Ordovician sediments from Pacific Rim occurrences is presented. The high grades (up to 100 g/t) mined from the upper levels of several mines suggests supergene enrichment processes associated with the Upper Cretaceous weathering surface. The Golden Blocks Goldfield has had no modern exploration. The most recent exploration was undertaken in the early 1980s. There are known acid intrusives in the area, with potential for the application of new models of intrusive-related gold mineralisation.

Jan 1, 2004

Before I begin this paper, I thought that it would be important to start with a brief background on myself. This will give some insight into where I am coming from with some of the ideas presented in the body of the paper. I studied mining engineering at the University of New South Wales, graduating with Honours in 1999. When I finished university I was offered a job with PricewaterhouseCoopers in Sydney, working in the Energy and Mining Group of the Audit practice; which I accepted. I have been working at PricewaterhouseCoopers now since January 1999, completing an accounting conversion course at the University of Technology Sydney along the way. I am currently beginning my Professional Year for Chartered Accountant qualification. During my later years at university, continuing on through the start of my working career, I have been involved with the Sydney Branch of The AusIMM; firstly, as a student representative and, now, as the Young Professional Representative. Therefore, you can probably see that I will have very different young professional experiences than some of my peers who have been working on mining sites. The purpose of this paper is to examine the challenges that face graduates who are entering the industry and what solutions are used to ensure that this entrance is as smooth as possible. A challenge has then been made to the industry and The Institute in the form of further observations on ways that this entrance may be improved and the development of graduates to be more effective. In preparing this paper I have discussed various graduate experiences with some of my colleagues in order to see what some of the challenges they, themselves, face now and, also, going forward. I also discussed with them what they see as solutions to these challenges, drawing on some of my own experiences in a different company environment.

Jan 1, 2000

By C Smith, D Lilly

The Lafarge Marblehead Plant in Marblehead, Ohio, USA produces 4.2 million tonnes of sized aggregate yearly. In 1997, a program was instituted to maximise primary crusher productivity through the optimisation of blasting variables and procedures. A proprietary blasting shot report database and the Lafarge production database was statistically analysed to provide guidance in the program. Blasting powder factor (kg/m3) was the main control variable utilised to increase crusher throughput. In 2005, the program was refined to increase the production of certain high margin aggregate sizes and the reduction of fines. The principal blasting component affecting the percentage of high margin size production appears to be pattern area (burden and spacing area). This can be coupled with powder factor to optimise the production rate of high margin aggregate sizes. The size optimisation program incorporates the blasting shot report database, Lafarge production database, statistical analysis and aggregate sampling. A preliminary indication is that the production of high margin sizes (12.7 mm X 4.8 mm, 24.4 mm X 12.7 mm, and 50 mm X 25.4 mm) has been increased seven to 12 per cent utilising these techniques. As an added benefit, blasting costs have been reduced linearly as burden û spacing pattern areas have increased and powder factors have decreased. The program is ongoing and will investigate other blasting procedures and variables including electronic blasting caps to further increase the production of high margin products. The statistical methods involved in the analysis are described in this article for use in other mines and situations. The methods described can be used to optimise crusher throughput, digging rates and product size.

Jan 1, 2007