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By F T. Suorineni, L Baird, A Papaioanou, D Hines

The Mathews et al (1981) stability graph was developed to provide guidance in the determination of stope sizes to control dilution in bulk mining of large orebodies. Longhole and sublevel open stoping (LHOS and SLOS) are the lower end in scale of underground mass mining with panel and block caving (PBC) at the higher end. Currently, the stability states of stopes in the stability graph are described qualitatively as stable, unstable or cave. The alternative quantitative option to the qualitative stability graph is the Equivalent Linear Overbreak Slough (ELOS) stability graph. The ELOS stability graph only applies to narrow vein orebodies. It is easy for the Mathews et al (1981) and the ELOS stability graphs to be applied outside the limits of their databases. What is currently referred to as ‘stable’ in the present stability graphs has diverse interpretations at different mines depending on their acceptable dilution values. In 2014, a research program was conceptually conceived at the UNSW Australia School of Mining Engineering to develop a quantitative dilution-based stability graph independent of orebody width to address some industry concerns on the use of the stability graphs. A dilution-based stability graph provides the mining engineer the flexibility to determine open stope sizes based on what dilution amounts are acceptable. The graph also unifies both the Mathews et al (1981) and ELOS stability graphs for wide and narrow vein orebodies, thus, eliminating their potential misapplications. To date, the concept is proven with case studies from metalliferous underground mining operations located across Australia. This paper presents the dilution-based stability graph concept, the initial results and future plans to account for other critical factors and increase confidence in its application with the addition of more data outside Australia.CITATION:Suorineni, F T, Papaioanou, A, Baird, L and Hines, D, 2016. A dilution-based stability graph for open stope design, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 511–522 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By B Mead, N D. Pascoe

The Grasberg block cave rail haulage system will be located in the Grasberg mining district on the island of Papua, Indonesia at an elevation of almost 3000 m above sea level. It will transport 160 000 t of ore per day from multiple chute galleries to the underground crushing systems. The design entails approximately 23 km of rail (ballasted and embedded track), over 120 ore chutes to deliver ore to the muck cars and three unloading stations to deliver ore to the crushers. The rail haulage system is a closed-loop system entirely within the underground mining complex.The GBC rail haulage project will be a substantial operation. Trains consist of 11–12 bottom-dump 20 m3 muck cars driven by a 40 t electric locomotive, about 400 t per trainload. Approximately 12 trains and one spare are required to maintain full production at 160 000 t/d. All rail installations will be 1435 mm (standard) gauge with AS60 steel.The rail system is designed to operate in full automated mode, including chute loading, hauling and dumping. The operation will be controlled from a surface control room.The rail haulage project has been divided into five stages, which will be brought online over the course of ten years. Current development and construction are focused on Stage 1 for initial production that will occur beginning in late 2017. This stage includes 24 chutes in three chute galleries, one unloading station, workshop areas and almost 7 km of track (3 km of embedded and 4 km of ballast).This paper describes the key components of the rail haulage system and reports on the current status of development and construction of the system. This paper also overviews the challenges, successes, issues and risks of this project in areas such as scheduling, development, construction and operation.CITATION:Pascoe, N D, Mead, B and Vega, H, 2016. Grasberg block cave haulage project – design and construction update, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 585–598 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By F N. Baez

This paper supplements a keynote address prepared for the MassMin 2016 conference on mass underground mining methods, including block, panel, inclined and sublevel caving. It advocates for a new cave mining paradigm that takes advantage of a number of new and disruptive technologies or innovations that have evolved over the last 15 years, some of which were initiated by major mining companies such as Codelco. The paper will address the challenges that the industry will be facing in the future as well as possible solutions. As background, the paper summarises the challenges that the industry has faced in the past and how such challenges were addressed. The author acknowledges that given his more than 30 years of experience with Codelco Chile (operations and corporate), aspects of his intelligent mining concept have no doubt been influenced and have matured during his invaluable time with Codelco also as the Head of Technology and Innovation. In the paper, he uses some of the innovations developed within Codelco and by the Chilean Government to illustrate the concept of ‘intelligent mining’.CITATION:Baez, F N, 2016. ‘Intelligent mining’ – the way of the future, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 3–8 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By V Barrera, A Brzovic, M Gaete, L Burgos, E Arancibia

Fragmentation is one of the most relevant parameters in the design and operation of a mine using the caving mining method. Fragmentation affects all subsequent operations, including extraction, comminution processes, secondary blasting and transportation.There are a number of different models in the literature to estimate the size of the ore fragments that report to the drawpoints; however, there is still no industry consensus about which one to use. This paper proposes a new model for predicting the fragmentation reporting to the drawpoints that is based on the geotechnical unit characteristics, extraction height and column of primary ore. The model is developed from observations of fragmentation measurements in different mine sectors of Codelco’s El Teniente mine in Chile.This work focuses on the following three steps:collecting fragmentation and hang-up data from several mine sectorsdeveloping a geotechnical block model using oriented core placed within the main geotechnical unitsanalysing the data and modelling the fragmentation process.The proposed model is used to discuss the mechanisms and the influence of preconditioning on the size of the ore fragments that report to the drawpoints.CITATION:Brzovic, A, Vallejos, J, Arancibia, E, Burgos, L, Delonca, A, Gaete, M and Barrera, V, 2016. Analysis and modelling of the fragmentation process – case studies at El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 305–310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J Gresham, A Turichshev

Ore from Henderson’s 7700 Southwest panel cave is transported between the production and truck haulage levels through a series of orepasses. A typical orepass complex consolidates dump points from four production drifts into two long bored raises feeding into a single truckloading chute. The system typically covers a vertical extent of 200 m and a lateral extent of 90 m. In the process of commissioning several initial orepass complexes, challenges with preferential draw in the long bored raises were observed. Preferential draw occurs when one long orepass mobilises much sooner and/or flows significantly faster than the other orepass. This has negative implications for orepass availability in the production drifts. As future mining at Henderson relies on the construction and use of such orepass systems, the development of appropriate design criteria and practical solutions to existing flow problems was necessary.A series of PFC3D numerical models were developed to assist in identifying the factors influencing preferential draw and possible corrective measures. The models helped to identify two primary factors that caused the preferential effect: the relative elevation of the brow at the bottom of each long bored raise, and the location of the bin used to funnel fragmented rock from both raises into the chute. This paper covers the initial design of the orepass complexes at Henderson, results of the numerical models, mitigation work done to date on existing orepass complexes, and design criteria for future construction.CITATION:Gresham, J and Turichshev, A, 2016. Correcting preferential flow problems in long orepass systems at Henderson Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 549–554 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By I Thin, L Morizzi, C Seymour, G Mungur

Olympic Dam has been investigating mine design options for the South Mine Area (SMA), which will continue using the existing sublevel open stoping (SLOS) method. The SMA is an undeveloped mining area, located south of the existing underground mining areas currently in production at Olympic Dam. The SMA study reached the stage where geotechnical inputs were required for stope design, infrastructure location and ground support forecasts. A large database of geotechnical data was collected to inform open pit designs for the ODX (Olympic Dam expansion) project (resulting from 659 drill holes). This geotechnical data has since been reprocessed to align with design inputs required for the SLOS mining method. The result has been the construction of a preliminary three-dimensional mining rock mass model (MRMM) that has been incorporated into preliminary stope mine design and infrastructure layout assessments, which have taken into account the predicted prevailing ground conditions.As with any model, it is necessary to improve the confidence in its predictability; therefore the model must be calibrated. The preliminary SMA MRMM was no exception. First pass calibration was possible with results from underground geotechnical window mapping from exposed rock mass conditions in the lateral development and surface geotechnical holes for ventilation shafts.The SMA project continues to advance and has started a program of resource drilling. Selected holes have been identified that target data limited areas. This will ensure that the data gaps are infilled in order to maintain the required data density required to improve the model confidence. In addition, further underground window mapping in the SMA will provide ‘mine scale drill hole’ data that can be used to either update the MRMM or as part of planned future calibration. Stope performance data from stopes will provide further valuable data for calibration purposes.The proposed paper will present the process and findings that have been followed in order to establish a well calibrated geotechnical model that can be used with an acceptable level of confidence in the ongoing refinements of the mine design and planning process for the SMA.CITATION:Thin, I, Morizzi, L, Mungur, G and Seymour, C, 2016. Building and calibration of a geotechnical model for sublevel open stope design at Olympic Dam, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 523–532 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By E Rojas, C Pardo

The exploitation of primary ores using cave mining caused new challenges at the El Teniente mine that required changes to a number of conventional cave mining practices. For example, in the 1970s and 1980s, panel caving was introduced to manage certain geotechnical and operational conditions. Today, El Teniente mine is facing new challenges associated with deep cave mining and establishing its New Mine Level (NML) project, which is located 240 m below the Esmeralda operating cave.The engineering and development phases for this new project have been largely based on experience and lessons learned throughout the history of primary ore exploitation at El Teniente mine, particularly knowledge about seismicity control, the management of collapses and operational practices. For example, previous experience demonstrated that seismicity could be managed by preconditioning using large-scale hydraulic fracturing (HF). HF has been systematically applied in the column of ore above the undercut planned for the NML project and below the production or extraction level, where the main ventilation and haulage infrastructure are to be located.This paper discusses how this has been achieved and is based on previous experience of preconditioning using HF, which has been applied in the selection and management of exploitation techniques and associated planning strategies and design parameters for the NML project.CITATION:Pardo, C and Rojas, E, 2016. Selection of exploitation method based on the experience of hydraulic fracture techniques at the El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 97–104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By A Priatna, H Rumbino, T Casten

This paper discusses the progress of the Deep Mill Level Zone (DMLZ) mine from the pre-feasibility study completed in 2005, through commencement of development access in 2008, completion of the feasibility in 2010 and cave initiation in late 2015. This fourth lift of caving in the East Ertsberg Skarn System (EESS) is located 500 m below the currently producing Deep Ore Zone (DOZ) mine and represents approximately half a billion tonnes of ore and around 1900 planned drawpoints, scheduled to be mined at a peak of 80 000 t/d.The paper reviews the mine design, access requirements, planned footprint sequence and major fixed facility installations such as ventilation, oreflow and shops. A discussion of the preproduction development and construction activities and some of the critical technical challenges overcome during this time frame are addressed, as well as the cave initiation process undertaken in late 2015 and the ramp-up of production and progression of caving.CITATION:Casten, T, Priatna, A and Rumbino, H, 2016. Deep Mill Level Zone – from feasibility to production, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 635–644 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G Baiden

The removal of rock blockages in mining operations has long been a risky undertaking, especially in high overhead conditions. Moreover, the assessment of where to put charges and the placement of them has been difficult due to the lack of visibility and safe access to the area. Traditionally, wedging long poles with explosives on them to keep the operator at a relatively safe distance has been the tried and true method of attempting to remove the blockages. Unfortunately, this is not a perfect system as it usually takes several attempts to remove the blockage. Each successive attempt results in even more dangerous conditions for workers and/or damage to the mine due to the successively larger amounts of explosives used until the hang-up finally comes down.Over the years, different ideas have been proposed to improve this process and reduce the inherent safety risks. Some of the technologies that have been trialled include projectiles fired at the hang-up; large, cumbersome arms; and massive amounts of explosives, each of which come with their own inherent safety risks that result in dangerous situations for miners and the mine.After gaining a thorough understanding of the process, Penguin Automated Systems Inc has developed a robotic system that is capable of working in a rock blockage safely. The idea combines the latest in telerobotics technology with 3D scanning and underground geospatial positioning. The hang-up removal is performed by scanning the inside of the hang-up to rapidly develop a geospatially placed 3D model for the operator to use. The 3D model is detailed enough that the operator can attempt to pick the ‘keystone’. A blasting engineer or the operator can then determine the exact position where the explosive charge should be placed in the 3D model and thus at the actual hang-up. The operator, controlling the robotic arm, uses the 3D virtual reality model of the robot system and the actual drawpoint information model to display the location information, the arm can then reach into the hang-up to position the charge using the kinematic model of the robot system. The 3D model is used to provide views inside the hang-up so that the operator can move the arm safely and precisely. This process allows the operator to place the charge (using the 3D representation of the drawpoint) from a long distance away. As the process continues, the end of the arm drills the rock and precisely loads the explosives. The robot then returns the blasting cable to the command station, which is located in a truck at a safe distance from the blockage.This paper will review the development of the system and present the results to date.CITATION:Baiden, G, 2016. Robotic hang-up assessment and removal of rock blockages in mining operations using virtual reality for safety, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 745–754 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By P Duplancic and C R Lilley, R Hudson, D Beck

For deep block and panel caving mines, undercut or extraction level instability can have as much impact on overall recovery as underbreak or the premature ingress of waste. If the area of the mine affected by excessive convergence is small, recovery is usually possible. However, there are several examples of entire blocks that were abandoned prematurely due to footprint collapse. Clearly, such global instability has a major impact on recovery and must be avoided – this is one of the essential tasks for the design team.The design problem is complex. The planning engineer must ensure that the footprint has sufficient capacity to withstand the maturing loads in the cave, accounting for the effects of stress path, geological structures and the rock mass conditions. These are often uncertain and only sometimes quantified.The demand on the footprint will also be influenced by decisions and actions taken during production, especially related to draw, which can worsen a developing problem. Perhaps most importantly, the design decisions that favour stability and lead to lower deformation also negatively impact on idealised cave flow. Many engineers aim to minimise the size of extraction level pillars, to improve theoretical future resource recovery but in fact this can reduce recovery if widespread deformation ensues due to the undersized pillars.In 2014, PT Freeport Indonesia undertook detailed numerical analysis to quantify the effects of variability in rock mass conditions and geological structure on overall footprint performance. The analysis accounted for a range of stress paths and maturing cave loading scenarios sourced from a calibrated whole-of-cave deformation-flow model. The intent was to replicate some of the diversity and distribution of pillar deformation outcomes that may be seen in practice at Freeport.The discontinuum finite element analysis was able to replicate damage localisation around persistent structures, a realistic distribution of drive deformation and show how small areas of instability can evolve into major problems if poorly managed. The limits of pillar size and ground support as solutions to a number of different instability problems was also investigated, showing that pillar size alone was not a sufficient remedy for all adverse circumstances.In this paper, we describe the workflow for numerical analysis of footprint deformation. We discuss the compromises and considerations for balancing the sometimes competing needs for efficient extraction levels pillars, ground support and prudent draw strategy.CITATION:Beck, D, Hudson, R, Wilson, A D, Duplancic, P and Lilley, C R, 2016. An investigation of factors affecting the long-term reliability of extraction level pillars in deep block and panel caves, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 295–304 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By F Farías, D Villa

Codelco’s Salvador Project has been operating a block/panel caving mine for more than 50 years. This underground mining method dynamically mixes the ore and dilution. As a result, forecasting grades is difficult and achieving 100 per cent extraction of the reserves is practically impossible. A substantial volume of the ore mixed with dilution becomes remnant ore and remains to be subsequently extracted.A potential open pit mine is under evaluation at Codelco’s Salvador Project, which includes the extraction of remnant ore post-block caving extraction. An effective methodology has been implemented to estimate what is left behind once the underground mine has closed. A new mixing method using the Cellular Automata (Alfaro and Saavedra, 2004) approach has been used to allow estimation of the remnant ore with a sufficient level of confidence to be included as part of the open pit reserve.A remnant block model is created using elements such as in situ block model, drawpoint layouts, historical production records and the drawpoint extraction. Using this information, simulations of the extraction of the mine by month from 1959 to 2019 were completed, using different mixing scenarios and trying to replicate the tonnage and grade extracted.Finally, the remnant block model is categorised using a score card with four inputs to assess the risk of the estimation of this material into a category class (measured, indicated and inferred).CITATION:Villa, D and Farías, F, 2016. Remnant ore model generation and categorisation post-block caving extraction at Salvador Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 461–470 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J Samosir, L Snyman

Northparkes was the first mine in Australia to use block cave mining method which relies on gravity and natural rock stresses to fragment and recover the ore. It was also the first hard rock mine to use hydraulic fracturing, in conjunction with CSIRO, to promote caving of E26 Lift 1. The technique was later used on E26 Lift 2 wedge and E48 prior to undercutting.Northparkes production is currently sourced from the E48 Lift 1 block cave mine and E26SLC. The E48 block cave contains economic ore to the north and south of the current cave footprint. To recover this ore the footprint has been extended on the north and south with two extraction drives and one extraction drive, respectively. Modelling of cavability above the additional drives indicated that the cave would not readily propagate to a sufficient height of draw to mobilise the ore and tended to arch over into the existing cave. To address the modelling results and to reduce the risk of the project, rock mass preconditioning was adopted.This fracturing campaign was performed from surface drill holes adjacent the subsidence zone angled to intersect the higher grade and higher elevation ore zones.Optical televiewer surveys, run prior to fracturing, picked intervals and fault zones to be avoided. Holes were resurveyed post-fracturing to detect newly created fractures and as a measure of success of the program.During fracturing operations water and gel fractures were run at varying depths and pumping pressure was logged for each fracture. The mine seismic system monitored significant events and dye in the fluids utilised for tracking water inflow locations during underground inspections.Towards the end of the project, guar fibres from gel were detected within the mill circuit and required treatment to resume optimum processing.CITATION:Webster, S, Snyman, L and Samosir, J, 2016. Preconditioning E48 cave extension adjacent to an active cave, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 471–478 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By A Kurniawan, A Sjadat and M Akhasyah

PT Freeport Indonesia’s Deep Ore Zone (DOZ) is a block cave mining operation that has been in production for 15 years. DOZ is located approximately 900 m below surface and has an average production rate of more than 5000 t/d. The footprint of the extraction level will ultimately be 900 m long and average more than 200 m wide. The undercut level is located 20 m above the extraction level.While developing Panel 1K on the northern portion of the extraction level, a major geotechnical problem was encountered when there was a change in lithology and an associated fault intersection. A large collapse of the hanging wall of the extraction level drifts occurred in the area of the fault intersection between February and March 2011. This was followed by a collapse of one of the undercut level drifts directly above the extraction level in May 2011.It was suggested that the best approach to mitigate risk during rehabilitation was to systematically open up the failed area under the protection of a steel set support system. To achieve this, approximately 60 t of grout was injected from the undercut level to fill the voids created when the rock mass between the two levels failed. A ground penetrating radar system was used to survey the condition of the rock mass between the two levels before and after the injection of grout. After the grout injection phase was completed to a satisfactory level of confidence, rehabilitation activities started on the extraction level by taking out the now consolidated material from inside the drift in 2 m advances from under steel sets initially constructed in secured ground.Controlled blasting was the key aspect to the success of the initiative to open up just enough of the drift to systematically support the rock mass before the next set was installed. The systematic support consisted of in-cycle shotcrete sprayed over mesh pinned to the exposed rock, as effectively as possible, with splitsets before spiling the next advance’s protection canopy with rebar. Once secure, a combination of steel set and pumped concrete was installed as the final support. This final support provided a safe platform to repeat the process until the failed zone was safely traversed.CITATION:Kurniawan, A, Sjadat, A and Akhasyah, M, 2016. Rehabilitation of the collapsed panel 1K north in the Deep Ore Zone block cave mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 763–768 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

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

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

May 9, 2016

By K A. Bunker, A D. Campbell, E Ah Mu, A R. Penney

The Ernest Henry mine is a transverse sublevel cave (SLC), which is relatively unique due to the 45 degree inclination of the orebody. To economically recover ore, each sublevel is horizontally offset from the previous level by around 25 m, depending on the orebody geometry. Mine development, slotting and initial production within this zone occurs in a high stress abutment that increases in magnitude at depth. These areas are seismically active and close to the hanging wall where cave propagation is yet to initiate. High stress conditions and the close proximity to the cave seismogenic zone results in challenging geotechnical conditions in the step out zone of each level and requires management of hazards including stress driven rockfalls, rock bursts and pillar failure.This paper outlines how these hazards were forecast using numerical modelling and geotechnical monitoring. Risk management techniques included dynamic ground support design, development of a new mine layout and extraction sequence as well as delayed re-entry into seismically active areas. Ongoing monitoring, instrumentation measurements and field observations were used to track the effectiveness of the controls.Future production levels are forecast to experience increasing stress and seismicity, which will increase demand on excavations and installed ground support. Ensuring the techniques and controls for monitoring, measuring and mitigating stress and seismic hazards are enforced is essential for continued safe production.CITATION:Campbell, A D, Bunker, K A, Ah Mu, E and Penney, A R, 2016. Managing stress and seismicity in an inclined sublevel cave, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 319–328 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By E Ah Mu and C R Lilley, A D. Campbell

Cave propagation is a complex process due to interacting variables such as mine geometry, rock mass heterogeneity and complex structural networks and stress fields. The Ernest Henry sublevel cave (SLC) is directly below an open pit, which provided an opportunity to observe and measure rock mass failure as the cave initiated and propagated through the pit wall. This paper describes interaction between the open pit and SLC as well as rock mass failure mechanisms observed from the start of the SLC to surface breakthrough.Cave propagation and slope failure mechanisms were found to be governed by intermediate structures, while the cave shape was largely controlled by cave-scale faults. The open pit, production-level geometry and production draw strategy were also important factors for cave and subsidence growth. Cave propagation was episodic and asymmetric in shape due to the orientation and relative position of geological structures, combined with the effects of the increasing SLC geometry and drawdown from the underlying production levels. The precursors and failure mechanism of a 2.5 Mt wall collapse are also reviewed in detail.Cave growth was simulated using a 3D, non-linear, discontinuum finite element model coupled with Newtonian Cellular Automata. Model results are compared to field observations and monitoring data to determine the accuracy of forecasts and compared models versus actual rock mass response during cave propagation.CITATION:Campbell, A D, Ah Mu, E and Lilley, C R, 2016. Cave propagation and open pit interaction at the Ernest Henry Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 311–318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By B Mobilio, M Secheny, J Rachocki, G B. Sharrock, A Jäger, J L. Lett, I Brunton, G W. Capes

Establishment of the Cadia East Panel Cave Stage One (PC1S1) commenced with the firing of the first bell in early 2011. Production began with the completion of the undercut in May 2014. PC1S1 used a post-undercut composed of 114 drawbells covering a footprint area of 73 438 m². The extraction level is located at a depth of 1200 m below the surface and is based on a 32 × 20 m El Teniente layout. Cave establishment required the construction of multiple conveyor drifts, a large-capacity jaw-gyratory crusher and ancillary ventilation and pumping infrastructure. Preconditioning via hydraulic fracturing and blasting was implemented at various locations of the cave block height. This paper presents an overview of the key learnings from the commencement of undercutting to surface breakthrough, including rock mass classification and modelling, stress measurements, preconditioning, numerical modelling and cave monitoring.CITATION:Lett, J L, Brunton, I, Capes, G W, Jäger, A, Mobilio, B, Rachocki, J, Sharrock, G B and Secheny, M, 2016. Undercutting to surface breakthrough – Cadia East panel cave (stage 1), in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 65–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By L Olivier, R J. Lowther, J L. Lett, I Brunton

Hydraulic fracturing to precondition the orebody to enhance rock mass cavability is gaining acceptance in underground cave mining applications. Assisting cavability is becoming important as an increasing number of cave mines are being implemented in hard, deep and competent rock masses where clamping stresses are higher and cave column heights may be in excess of 1000 m. Propagating large caves to surface in such conditions can be challenging as risks such as slowed propagation and air gaps can develop during the process.Underground-based hydraulic fracturing is routinely used at Cadia East as a means of preconditioning the orebody to assist in cave propagation, fragmentation and seismicity reduction. This paper presents a summary of a surface-based hydraulic fracture program that was successfully implemented to assist in the propagation of the Cadia East Panel Cave 1 (CE-PC1) cave to surface through competent overlying rock masses. In this case study, the propagation of the CE-PC1 cave slowed as the cave grew past 750 m in height, initiating a Trigger Action Response Plan regarding the cave propagation rate. Surface-based hydraulic fracturing was subsequently used to stimulate the cave to propagate through the final 450 m to surface. The paper details the equipment, strategy, implementation and risk management involved in the program as well as the key learnings.CITATION:Lowther, R J, Olivier, L, Lett, J L and Brunton, I, 2016. Implementation of a surface-based hydraulic fracturing program to successfully propagate a large cave through hard, competent near-surface rock masses to achieve breakthrough, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 83–96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016