Search Documents

By G A. Davis, D G. Laughton

The great variability of mineral and energy prices has motivated some governments to incorporate a windfall profits tax into their mineral taxation regimes. Windfall profits taxes are a means for governments to capture additional mineral revenue when mineral prices are considered higher than some historic level. Governments need to be aware of the effects of such contingent taxes on the exploration, development and operating decisions of mining companies. Mining companies need to be able to calculate the full impact of windfall profits taxes on the economics of their projects. This paper examines the valuation of a multi-phase copper-gold project in the presence of a windfall profits tax. Real options Monte Carlo simulation is used to characterise the different exposures of the mine owner and of the government to the risky cash flow streams that they receive from the project. The results highlight that Monte Carlo simulation paired with the real option valuation method is able to account appropriately for the differing risk exposures, while the traditional discounted cash flow valuation model is not. Our key conclusion for governments and mining companies is that the impact of contingent tax and royalty terms can and should be assessed using advanced valuation techniques, and the results used to improve contract designs under the constraint of actual and perceived fiscal system stability.

Jan 1, 2007

By Sanders GJ

Coals from the Southern Coalfield of New South Wales treated in the Port Kembla coal preparation plants of Australian Iron and Steel Pty Ltd differ substantially in their characteristics. Knowledge of, performance not only enables comparison and promotes better control, but also provides the means for predicting results. Evaluation of performance of cleaning equipment has been made in terms of probable error (Ep.) Results for Baum jigs, a Chance cone, heavy medium cyclones and water washing cyclones are examined. The efficiency factors derived from the probable error are applied to the float and sink analysis, mathematically simulating operating conditions. This method is applied to the Balgownie seam. The Balgownie seam lies between the Bulli and Wongawilli seams in the Coal measures of the South Coast and mining on a large scale began recently in the Bulli area. It is known locally as the Four Foot seam and exhibits er difficult washability characteristics, due to a comparatively high middlings content. These properties and the tively high inherent ash make careful selection of cleaning equipment essential for optimum recovery. The prediction technique is used to determine the possible results when this coal is cleaned in the Port Kembla plants. Predicted values are compared with results from full scale trial washings demonstrating the validity and accuracy of the technique. Applications of result forecasting are listed.

Jan 1, 1970

By G De Tomi, R Sousa, A Lapworth

One of the current challenges for iron ore producers is the ability to respond to changes in ROM stockpile specifications in a quick and cost-efficient manner. The decision-making process to respond to such changes is normally associated with grade-control and short-term mine planning activities, from where new operating instructions to the mine are provided. Mines are under increasing pressure from changes in the industry, such as a scarcity of skilled staff; a higher turnover of skilled employees and tighter product specifications. The quality of operational activities easily suffers as a result of these pressures. The technology that supports operational activities is often poorly implemented, which results in systems being unsustainable and poorly understood by the organisation. All successful technology implementations rely on the people, processes and technologies involved being well understood. Because of the complex nature of mining, the processes that underpin mine planning, scheduling and operational control are often not well defined. This results in activities undertaken by individual departments being poorly integrated. Datamine has developed a set of tools and methods for decomposing; capturing and documenting processes and ensuring those are embodied in implemented solutions. A case study of such a solution is the GEROS planning system, which has been successfully implemented at CVRDÆs Southern Iron Ore System, in Minas Gerais, Brazil.

Jan 1, 2005

On the face of it this is an easily answered question. Modern technology and life as we know it today would be impossible without industrial minerals and the responsible utilisation of mineral resources is essential for the economic wellbeing of the nation. The quarrying industry supplies a high percentage of the industrial minerals used in New Zealand and our role therefore, is to ensure a constant supply of high quality roading and concrete aggregates so that society and the community as a whole can develop. We must do this in a manner which causes the least possible disruption to members of the community, which efficiently utilises all the valuable resources, which causes as little pollution as possible and last but by no means least, creates realistic profit for the operator. It is only by achieving a reasonable profit that we are able to continue in business and therefore play our part in the development of the country. Unfortunately, quarries have a poor image and are not generally popular, as on the whole, they are noisy, dirty and dusty and attract large trucks which create traffic problems. Judging by the amount of restrictive legislation with which we have to comply today, not even government or the local authorities want quarries which presents the industry with some serious problems, some of which will be outlined in this paper.

Jan 1, 1978

By Ren T. X, Jozefowicz R

In many branches of engineering, there has to be an understanding of the motion of fluids in order to solve problems. Many safety and health problems in the mining industry are typical examples that involve the understanding and analysis of fluid flow, such as explosions, the spread of fires, dispersion of gas and dust, and ventilation patterns. Computational Fluid Dynamics (CFD) is concerned with the use of computers to produce information about the ways in which fluids flow in given situations. Until recently CFD has been widely applied to a variety of industrial sectors and increasingly to problems in the health and safety areas. With the arrival of more powerful computers and CFD packages, CFD techniques are no longer practised solely in a research environment, but can be used by engineers in many industrial fields. This paper introduces the basic concepts and general procedures involved in the use of CFD technology. A comparison is given as a guide to the major features of a number of widely used commercial CFD codes. Areas of potential CFD applications are identified in a range of safety and health problems in mining industry. An example is presented to illustrate the use of this technology. It is believed that the exploitation of these areas using CFD approach will contribute significantly to the solution of today's many mine health and safety problems.

Jan 1, 1995

The geographical region of South East Asia is variously defined, but generally agreed to include the Asean group - Philippines, Malaysia, Thailand, Singapore and Indonesia. Other regional countries, such as Vietnam, Laos, Burma, Kampuchea etc. are of course geographically part of the region, however in economic terms, they play a minor role. It is the Asean group that dominates present economic activity and provides the overwhelming opportunity for commercial development. My experience in South East Asia has been gleaned over 15 years of regular travel in the region. More recently, we have established company offices in Malaysia, Singapore and Indonesia to extend and deepen contacts with major customers. This progressive development is an integral part of a planned growth pattern and will be discussed in more detail shortly. South East Asia is a rapidly developing economic growth centre, a fact which is clearly recognised and accepted by most commentators. An important question is then to be asked: Why has the region been relatively neglected by Australian, U.S. and European industrial supply companies? I will attempt to address this question in the context of industrial minerals and propose some ideas as to how effective sales programs could be developed. Firstly, let's consider the market potential provided by countries within the region. It is reasonable to suggest that industrial growth in S.E. Asia over the past 20 years has been generally steady and in some cases, explosive. Until recently, this growth has predominantly been driven by development of internal (regional) demand. Population growth and rising living standards have ensured that basic industries have enjoyed a solid uptrend in sales and production. The industries which most benefitted from regional economic development over this period were, interestingly, those which we understand to be major users of industrial minerals - glass, ceramics, paper, surface coatings, cement, refractories, rubber and plastics. Each of these industrial sectors has been influenced by different growth stimulii over a 20 year period. Nevertheless, they also enjoy a common feature which ensured an above average performance. All sectors are fundamental to an environment enjoying rising living standards and rapid growth in general prosperity. More recently, internal growth factors have been overtaken by a recognition that manufactured products from the region are competitive in export markets. This comparatively recent development provides the most interesting possibilities for higher value industrial mineral raw materials. Let me explain: For 20 years, industrial growth in South Asia has essentially been focused on satisfying domestic demand. Finished quality of manufactured items was orientated to a developing market more interested in cost than aesthetics or long life. This was reflected in raw material specifications, which often did not exist and at the best were undemanding.

Jan 1, 1989

By J Hadjigeorgiou

The stability of open stopes in underground hard rock mines is influenced by several factors including the shape and size of the excavation, surrounding stresses as well as the degree of jointing. This paper presents a design methodology for stope analysis in jointed rock masses. The proposed approach relies on geological structural data to construct realistic three-dimensional joint network models. The stability of an open stope is determined based on a limit equilibrium analysis.

Jan 1, 2000

By R Brake

The Enterprise Mine Project (EMP) is being developed by Mount IsaMines Limited as the future source of copper ore at the Mt Isa miningand processing complex. Environmental engineering is one of the majortechnical challenges facing the project because of the depth of theorebodies, high virgin rock temperatures and hot ambient surfacetemperatures in summer. This paper discusses the engineering principles adopted by EMP to manage the risks associated with working in these adverse thermal conditions.

Jan 1, 1998

By Kurzeme M, Willoughby D. R

The current approach to the design of fill, as a structural component in a mining system, is based on traditional usage, previous experience, empirical rules and preconceived ideas. This approach does not permit the relative economicsof the various possibilities to be evaluated, retards introduction of new materials or processes, and results in fragmented fill research effort.A rational approach to the design of fill is proposed as a means of overcoming these disadvantages.This is based on five components:(a) statement of functions of fill,(b) definition of modes of fill response,(c) criteria of satisfactory performance,(d) analysis of fill response,(e) specification of required fill properties and methods of obtaining them.An assessment of each component indicates that the adoption of this rational design approach will require research effort in categorising modes of fill response and in defining criteria of satisfactory performance.

Jan 1, 1973

Mackenzie (1968, p. 167) inferred that amphibolitelayers grade into and may be correlated with footwall Potosi gneiss where it is thin under the thickest development of the "lead lode" in the New Broken Hill Consolidated mine, Broken Hill. This gradation from amphibolite to Potosi gneiss is tacitly assumed in many of the constructed crosssections of the southern end of the orebody, where amphibolite and Potosi gneiss, defined in hand specimen, are correlated in adjacent drill holes. The basis for such correlations is the observation that some amphibolites in drill core lighten in colour from black to grey along the core and grade into an unlayered rock containing conspicuous pink garnets, which resembles Potosi gneiss (for descriptions of Potosi gneiss see Andrews, 1922; Gustafson, BurreIl and Garretty, 1950; Carruthers and Pratten, 1961;\Ternon, 1969).Average chemical compositions of "footwall" Potosi gneiss and "upper" amphibolite (Hawkins...

Jan 1, 1972

A philosophy is presented that new graduates in mining and metallurgy should be equipped to use computers during their under- graduate courses, should be aware of the capabilities and costs of a wide range of computing equipment, and should receive sufficient stimulus to become involved in applying computers for the benefit of the mineral industry. A program is presented in which computer applications and "hands on" involvement with computers are integrated into the progressive stages of the undergraduate courses in Mining and Metallurgy. In this respect, the role of the computer is to assist the student by performing time consuming tasks, to demonstrate the industrial applications of computing, to extend the scope and complexity of the tutorial, assignment and project work which can be undertaken by the student, and to provide the essential first stepping stones toward continued useful involvement with computers during the graduate's working life.

Jan 1, 1977

EARLY HISTORYIt is 91 years since the epic discovery of gold at the eastern end of Kalgoorlie's main street appropriately named Hannan's Street after the prospector who found the first gold here on17 June, 1893.The Spirit that motivated the early prospectors in their search for gold in this thirsty sun-burned land, unmapped, uncompromising and difficult is characteristic of gold prospectors the world over. Conditions have changed since then substituting comparative comfort for previous austerity and privation, but the quest-ing spirit, the everlasting optimism, the perseverance in the face of frustration .and disappointment still exists.It exists with the prospector who more often than not is a company geologist; it exists with the shareholder enjoying through his investment a vicarious participation in this wonderful, exciting industry and not the least with those people who have chosen the goldmining industry as their career.

Jan 1, 1984

The series of events leading to the adoption of more complex flotation circuits for coal have been reviewed. In essence, it has been concluded that ac- ceptable overall flotation recovery will only be obtained when efficient distri- bution of collector over all the component feed size fractions is ensured. The achievement of this goal is most likely to be obtained by feed classification and separate flotation of appropriate size fractions. The adoption of such a phil- osophy, however, imposes a number of process problems of both a chemical and an engineering nature. Some of these problems have been identified and possible solutions discussed. A case is emerging for the development of a new generation of flotation cells designed specifically for the flotation of classified coal and for the development of a series of novel re- agents which have the propensity to float middling particles.

Jan 1, 1984

An understanding of the importance of the different components that comprise a rock bolt unit is necessary to ensure the proper use of rock bolts as a means of roof support. The various anchors, bolts and plates in use in Australia have been designed and adapted for Australian con- ditions. As mining conditions change, so will the types of bolts in use. This is apparent in the development of chemical anchors and other recent innovations.

Jan 1, 1971

A test model is presented for the simulation of dewatering by gas injection of a porous aquifer above longwall workings. A finite difference model used in the oil industry was modified to match the underground mining conditions. The model is suitable to cope with the problem of dewatering reservoirs of low transmissivity. After comparing more versions, it has been concluded, that the investigated dewatering method can be proposed under special hydrogeological conditions only.

Jan 1, 1988

By J Vann

The key functions of project evaluation are to assess potential profitability and to develop an effective operational design. For mining projects, design aspects include mining methodology, ore treatment methodology and production rates. All of these characteristics impact on project economics and overall value. Resource models, which form the ultimate basis of project evaluation, typically consist of tonnes above cut-off, grade above cut-off and the spatial distribution (connectivity) of tonnes/grade above cut-off, for one or more variables. Dilution, ore loss and metallurgical recovery are all modifying factors applied to the resource model during evaluation and determination of profitability. A key issue is: how is the value determined? In addition to traditional combination of in situ tonnes/grade, the following merit serious consideration: the concentration of deleterious elements, throughput rates, mining/processing costs and û importantly û metallurgical recovery. Geometallurgy is an emerging field targeted at integrating these issues by identifying either direct measures or proxies for throughput (hardness, grindability), recovery (liberation, mineral shape/texture, etc) and concentrate quality from easily collected macro-, meso- and microscopic data. These ægeometallurgical variablesÆ drive project costs and revenues in a fundamental way. For geometallurgical characterisation to have a real impact on business design, it must enable improved mine planning. When creating spatial estimates for such variables, it is preferable to find proxies that can be measured as close to the intact rock mass as possible. However, spatial estimation of proxies for geometallurgical properties and responses is complex and requires special consideration. Unlike grades, both proxies and absolute measures of geometallurgical variables are not necessarily linear or additive and therefore require very careful geostatistical consideration. In some cases, models must predict extreme values of geometallurgical attributes rather than averages. Incorrect characterisation of metallurgical recovery/throughput can (and has) led to misspecification of the scale of projects, and thus can be seriously value destructive. Aspects of geometallurgy have long been important in iron, bauxite, manganese and coal deposits and are increasingly on the radar for base and precious metal miners. However, as more metallurgically complex deposits are developed and mining of large-scale, low-grade deposits becomes more commonplace, the importance of characterising the metallurgical response in order to generate properly optimised projects will rapidly increase. It is possible that in many ætraditionalÆ (ie grades and tonnes) reserve models, the variables that drive the project are missing!

Jan 1, 2007

By Atkinson D

This paper briefly outlines the develop ment of the froth flotation plant at Coal Cliff Colliery. The plant was superimposed onto the original flow sheet in which fines were merely thickened and filtered. Test work leading up to the installation is described and the final layout is discussed. Details of the concentrate and tailings systems are given. Preliminary results of a further extension involving the use of a Davcra flotation machine are also given.

Jan 1, 1974

It is argued that the capture of par- ticles by bubbles is primarily caused by hydrophobic ("structural") attraction forces. Neither dispersion forces nor double-layer forces can account for hydro- phobicity, though the latter are known to influence the kinetics of capture. The recent experiments of Israelachvili and Pashley (Nature, 300: 341-342, 1982) with hydrophobic mica plates provide the first measurements of the range and magni- tude of hydrophobic interaction forces.

Jan 1, 1984

Successful management is ultimately measured by return on shareholders' funds. This is the inescapable and inexorable discipline that ultimately rules every investment. Shareholders today are predominantly, and increasingly, the superannuation funds and insurance funds of almost all of us. We have already reached the situation in Australian investment history in which the best interests of employees can be very directly identified with the best interests of the owners of the capital invested.

Jan 1, 1992

While international coal trading operations often involve relatively small contract quantities, delivered over short periods or even in single shipments, most coal is supplied under long term arrangements. In entering into these arrangements the customer needs to be assured that coal of suitable and consistent quality can be supplied for their duration in the volume required. A detailed knowledge of the mine and transport system is required and must be presented from the customer's perspective.

Jan 1, 1983