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By J Chegwidden

Rare earths are a critical minor constituent of many advanced materials that are essential inputs to the manufacture of items such as mobile telephones, computers, televisions and autocatalysts. Although rare earths have a relatively high unit value, the impact of this cost has little, if any, impact on the selling price of the final item. Furthermore, as they are generally present in minute concentrations they are not recycled. It is for these reasons that rare earths are considered strategic materials. China dominates the market as it supplies over 85 per cent of world demand. It has recently taken steps to increase prices through the restriction of exports and support for minimum prices by an association of the major producers. This paper provides an overview of future opportunities for Australia in the context of the current dynamics of world supply and demand.

Jan 1, 2001

By J MacNeil, R Dimitrakopoulos

As open pit mining of a deposit deepens, the cost of extraction may increase up to a threshold where transitioning to mining through underground methods is more profitable. This paper provides an approach to identifying an optimal depth at which a mine should transition from open pit to underground mining. The value of a set of candidate transition depths is investigated by optimising the production schedules for each depth’s unique open pit and underground operations. By considering the sum of the open pit and underground mining portions’ value along with the cost of transitioning corresponding to each candidate transition depth, the optimal transition depth can be identified. The optimisation model presented is based on a stochastic integer program that integrates geological uncertainty. As an input, the stochastic integer program utilises a set of several stochastic simulations that represent equally probable scenarios of the mineral resource. This group of simulations describes the uncertainty in the deposit, while the optimiser aims to maximise value based on discounted profits of both the open pit and underground components of the deposit.CITATION:MacNeil, J and Dimitrakopoulos, R, 2014. A stochastic optimisation formulation for the transition from open pit to underground mining within the context of a mining complex, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 363–368 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By N Madani, S Abulkhair, N Morales

Conventional geostatistical algorithms cannot reproduce bivariate complexities such as inequality constraint, nonlinearity and heteroscedasticity. Poor reproduction of these features may decrease the accuracy and reliability of mine planning results. For example, it is not unusual to have an inequality constraint between primary and disturbing elements in a metalliferous deposit. Implementation of traditional methodologies for such complex data sets can lead to the incorrect reproduction of a bivariate relationship, which will affect the validity of NPV results. In this paper, an iron data set containing iron and silica grades with an inequality constraint between variables is introduced as a case study. This study proposes an algorithm based on a hierarchical sequential Gaussian cosimulation integrated with inverse transform sampling. The proposed methodology considers the linear inequation between two variables in the hierarchical cosimulation process to reproduce an inequality constraint. As a comparison, conventional sequential Gaussian cosimulation is also applied to the same data set to demonstrate the difference in bivariate relationships from both models. Unlike the proposed algorithm, the conventional cosimulation cannot reproduce an inequality constraint and slightly overestimates silica grades. The modelled realisations are then used to assess the uncertainty of a plan and generate a stochastic strategy that adapts the destination of the blocks depending on the scenario. Two-stage stochastic long-term production scheduling takes extraction decisions using average information (ie e-type model) and ore/waste destinations based on geostatistical realisations. As a result, the proposed strategy is closer to the upper bound, highest possible NPV for each realisation, than to the lower bound, deterministic strategy that does not manage the risk of sending extracted material to wrong destinations. Furthermore, Comparing production schedules resulting from proposed and conventional geostatistical methodologies shows the importance of inequality constraint reproduction and more accurate long-term mine planning.

Nov 8, 2021

By S Love, M Anderson, M Boland

"The high rate of failure of new mine developments to meet feasibility study expectations has been the subject of many fine technical papers. Yet failure rates remain stubbornly high.Similarly, the common occurrence of disastrous acquisitions resulting from failed due diligence on projects is well known. Yet such mistakes continue to be made.The authors argue that project and due diligence failure are caused at least partly by cognitive biases. These biases pervade decision-making throughout project evaluations.A wider understanding of these biases (and their effects) is necessary. Only then can mitigating actions be taken.The opportunity for this wider understanding exists. A number of best-selling books have been published on the topic in recent years. With wider understanding of key concepts and terms, cognitive biases can be recognised and discussed. They can also be challenged and mitigated.The authors believe that these concepts should be entry-level, required knowledge for anyone evaluating, developing, reviewing or financing mining projects.Perhaps the most prevalent biases in project evaluation failure are the ‘over-optimism’ biases. In particular, the planning fallacy and confirmation bias.The anchoring effect is also pervasive. This bias propagates unrealistic assumptions from scoping and prefeasibility studies through to so-called definitive feasibility studies. Unrecognised anchoring biases also undermine the validity of many ‘independent’ due diligence reviews. They are also prevalent in corporate acquisitions.The availability heuristic refers to a mental shortcut that can lead to a number of biases. One of these is the narrative fallacy. The mind constructs coherent narratives and opinions, regardless of the amount and quality of the information that support them. Narrative fallacy commonly occurs in the evaluation of social and political risk. Another is disaster neglect, which is especially common in the failure to assess risks associated with tailings management.This paper outlines the relevance of these biases to mine project evaluations. It also provides examples where the authors have observed their effects.CITATION:Love, S, Boland, M and Anderson, M, 2016. Influence of cognitive biases on project evaluation, in Proceedings Project Evaluation 2016, pp 226–235 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By G N. Phillips

Global annual gold production has been remarkably constant over the last decade at ~2500 t/a3. The major producers today are China (annual production over 350 t and rising), Australia (250 t), USA (240 t), Russia (200 t) and South Africa (190 t and falling); these figures are representative of recent years but approximate. Demand from jewellery, investment, industrial and dental uses has been in excess of mine production for the last decade, by approximately 1000 t/a.Ongoing exploration is the life-blood for gold mining, and more so than for many other metals. Explorers consider sovereign risk, security, labour costs, commercial terms, land availability and inherent geologic prospectivity to determine where to focus their activities. Exploration success over the last decade has been shared by established major producers like Australia, Canada and USA, several countries in West Africa, and many parts of the Pacific margin. Although gold-only deposits have dominated world gold production historically, the gold-plus types, especially copper-gold, are becoming more important.Australia experienced a major period of exploration success from 1979 that has led to annual gold production rising from 17 t in 1979 to 250 - 300 t/a recently. Today, Australia has economic demonstrated resources of over 9000 t Au, which has risen progressively from 220 t in 1979. The majority of production has come from gold-only deposits in the Yilgarn craton in the southern half of Western Australia, but there are a few large Proterozoic deposits in central Australia including Olympic Dam, Telfer and Starra, which are mostly gold-plus types with copper and gold. Large goldfields in the younger host rocks of eastern Australia include the gold-only deposits of Victoria and North Queensland, and gold-plus deposits of New South Wales.CITATION:Phillips, G N, 2013. Australian and global setting for gold in 2013, in Proceedings World Gold 2013 , pp 15-22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

The Australian coal industry has undergone sevenfold growth over the last 30 years and since 1985 has been the world's largest coal exporter. Three quarters of Australia's coal production is exported so its future is dependent on it remaining internationally competitive with other energy sources and other coal exporting countries. Coal is likely to increase its share of the energy market during the nine- ties as oil prices increase, new coal-fired capacity is commissioned and some form of nuclear energy is developed which is of acceptable safety standards to the community for use in the 21st century. Gas may take a part of coal's anticipated market share by the Year 2000. While coal exports will increase from China, Colombia, Indonesia and Venezuela and satisfy some of this additional coal demand Australia will also expand its export production, due to its existing advantages. The United States, Canada, South Africa, Poland and USSR seem unlikely to enjoy the same degrees of expansion and some, particularly Poland and USSR, will decline. Australia will always find it difficult to compete in the more distant markets due to levels of ocean freight, although its high quality coals will tend to partly offset such disadvantage.

Jan 1, 1988

By T Goswami, G Brent

In response to concerns over greenhouse gas (GHG) emissions and an imposed cost in some jurisdictions, many mining houses have committed to reductions in their GHG emissions. However, mining faces particular challenges in this regard, notably from increasing strip ratios. Furthermore, mining activity around the globe is not expected to decrease in the foreseeable future as mineral demand is driven up by the aspirations of rapidly-developing nations. Novel approaches will thus be needed if any reductions in energy consumption and GHG emissions of mining are to be achieved.This paper presents some directions for the mining industry to pursue in reducing their GHG impact, focusing on the difference that blasting methods can make. Importantly, large productivity and revenue gains can also be realised from these methods.Key directions considered here include optimising resource recovery and quality through:reducing coal damage and loss from throw blastingrecovering thin coal seamsproducing cleaner coal with less dilution.Blast design can also significantly improve the productivity of surface mining by:improving muck pile shapingimproving mine equipment productivityimproving scheduling.We show how a particular blasting method can eliminate coal loss in overburden throw blasting and can lead to large increases in coalmine profitability. Thin seams that were previously wasted can also be recovered with this method. Furthermore, the method has been implemented to combine several separate drill and blast cycles into a single cycle, leading to productivity gains.An illustrative example is given to show how increased coal recovery can increase revenues and more than offset any potential GHG emissions liabilities. Overall mine energy and GHG emission intensities can thus be reduced.CITATION:Goswami, T and Brent, G, 2015. Blasting approaches to increase mine productivity and reduce greenhouse gas emissions in surface coal mining, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 635–644 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By N Lefebvre, M Jakeman, R Aseervatham

Semi-arid regions suffer from two afflictions; evaporation may exceed precipitation by multiples of two or more and variations in precipitation can be both extreme and difficult to predict. Many Australian mines are situated in semi-arid areas where communities are reliant upon locally sourced water or special purpose infrastructure is built as part of the mine construction. As the question of climate change looms, issues related to future water supply and sustainable water management become increasingly important. Across Australia several mining operations co-exist in a single surface water and/or groundwater catchment area. The management of water on a mine by mine or a community by community basis is illogical and must be reconsidered based on a single water catchment and a whole-of-community basis. Mine water should be considered on a full life cycle basis where the quality is assessed for specific mine site applications. This paper addresses technical challenges that include surface water and groundwater supply in semi-arid regions, operational water in the mining industry, beneficial uses of water, water economics and demand management. In much the same way as emissions trading evolved into a multi-stakeholder forum, mining regions offer scope for innovative thinking in water supply and reuse. In addition, this paper considers a number of initiatives taken by Australian mining companies that are entering a prefeasibility stage and contrasts these initiatives against the established success within a South African mining region. The challenges and potential solutions to this initiative are presented for future consideration.

Jan 1, 2006

By Bruington T, Perkins J, Hutton R

Natural resource developments are among the largest and most challenging projects taking place in the world. They involve capital intensive investment with long lead times and the management of geological, market, technical, operational and financial issues. A clear strategy is required to manage these projects and this strategy is underpinned by a development Philosophy.

Jan 1, 1997

The major technological advances of the last 30 years have profoundly reshaped mining practices. Machines keep getting bigger while productivity continues to increase and manning levels drop. These trends will continue and the introduction of breakthrough technologies will continue to accelerate, driven by a continued focus on lowering the cost of production, improving the productivity of workers and machines, and ensuring safer working environments. At the same time, global consolidation of mining companies has impacted on technology development in a range of ways. There are many potential technologies being proposed, some already operating in Australian mines. The automation of underground load-haul-dump (LHD) trucks for example, continues the process of removing workers from the most dangerous operating environments. Global positioning systems fitted to draglines, fibre optic communication channels, and 400 tonne trucks are only some examples of what lies ahead. However, where we need to return focus is to the technology of management û which is also one of the two key interrelated themes of this keynote address. Have we, as an industry, adequately been able to keep up with technological advances? Are our management systems as competent as the machinery we employ? The other key theme is the processes of globalisation and consolidation. What are the impacts on our industry? What are the implications of these processes, particularly for the ways in which we manage our people? My paper is divided into several components:some comments on the coal industry and the dramatic restructuring we have seen in recent years; in the context of this restructuring, an overview of my company and its evolution; my views on the role of contractors; some comments on the consolidation also occurring in the mining machinery and equipment, technology and services sectors; some observations on two major areas of technology û drill and blast; and trucks, shovels and excavators; the implications of consolidation and new technology for our employees and management; and finally some comments on research programs.

Jan 1, 2001

By E Lima, D Gregory, C Faria, A Lapworth

Open pit mine enterprises are complex systems that depend on multiple parameters such as mineral grade distribution, geotechnical characteristics, economic conditions and engineering requirements, all of which vary in time and space with a different degree of uncertainty. The unpredictable nature of these inputs imposes a risk to mine owners and shareholders which in the worst case can lead to highly undesirable financial outcomes.Desktop studies commonly examine a set of scenarios based on adjusting variables such as commodity prices, mining costs, processing costs, and metal recoveries to understand their relative impact on the economics of a project. It is less common to systematically explore and simulate hundreds of alternative physical designs to understand and compare the financial risk associated with one or more mining projects.This paper presents a risk assessment tool set and methodology that uses web based cloud computing to enable multiple simulations of mine designs to be rapidly and efficiently executed. The methodology includes generating random sets of prices and costs values within their respective probability distributions. Pit designs are then created to maximise the profit for each set of input variables. Various approaches to analysing the results are discussed. Use of the same high performance computing environment for understanding the financial risk associated with the variability of the underlying geological resource model is also discussed, with provided examples using case studies from two of the major mineral producers.CITATION:Lima, E, Gregory, D, Lapworth, A and Faria, C, 2014. Simulating extraction shapes to understand financial risk using high performance computing, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 351–360 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D P. Murphy, R F. Dewhirst

Traditionally closure has been seen by the Resource sector solely as a green or an environmental issue, focused primarily on the requirement to rehabilitate the site following cessation of production activities. In addition to operational, maintenance and production aspects of processing plant design, future design teams will need to take a more holistic view and consider an increasing number of sustainability issues including safety in design and cleaner production as well as closure itself. Sustainability principles being adopted by industry such as the Minerals Council of AustraliaÆs Enduring Value Framework are now broadening our understanding of closure. While issues around the closure of tailings dams and associated infrastructure have been widely studied, few investigations have looked closely at the implications of closure on the design of minerals processing plants. It is likely that design teams may be able to make a significant contribution to meeting industry objectives by adopting innovative designs which, in addition to meeting production objectives, deliver sustainable and cost effective plant closure outcomes. This presentation explores the opportunity for innovative design of mineral processing plants through the assessment of alternative closure objectives. This assessment specifically looks at current industry standards and statutory requirements, as well as potential risks and opportunities associated with each objective. Alternative design strategies to meet these objectives are discussed.

Jan 1, 2006

Societal expectations about how the industry operates and treats its people will be a key driver in the development of the Australian mining industry over the next 20 - 30 years (Moffat, Mason and Littleboy, 2009). Understanding these expectations will be critical in maintaining what much of the minerals industry calls its 'social licence to operate', or its public acceptance or approval. Yet what constitutes this social licence is poorly articulated, with little published research exploring the concept at a local operational level or at the national level in Australia or internationally. This research aimed to explore the societal expectations of the mining industry in Australia and test a participatory methodology to articulate them. Three workshops were conducted with a sample of 24 members of the 'Australian voting public' to explore community objectives for the onshore exploration and mining industry, and the underlying expectations for how the industry should operate in the future. Qualitative analysis of this data revealed three overarching objectives for the onshore mining industry held by participants. They thought that the industry should: advance Australia's national interests (including social well-being); minimise environmental impact, and; act in a socially responsible manner. Within each of these three key themes, or objectives, a number of tensions were evident in the views of participants regarding the trade-offs they are willing to make to secure economic benefit from mining, as well as the basic conditions for socially acceptable mining. These data provide an insight into the conditions for a national social licence in Australia for the mining industry, and the means for its realisation.

Jun 1, 2010

By T G. Neville, G Terrey, J Burns

This paper explores recent industry training programs and lessons for supervisors. The Belbin Team Role model was used to increase participants’ awareness of behaviour and its application. The application of the Belbin model to underground, open cut mine and quarry supervisors is discussed.The key to team success may rest with the expertise and experience of its members, but increasingly effectiveness depends on how team members understand, acknowledge and support each other’s behavioural strengths. Discovering strengths is a challenge, both for their measurement and for the encouragement of team members to use the knowledge of themselves and others in the team. Using behavioural models provides a constructive approach and a language for supervisors as they build personal motivation and engagement.Prima facie, the mineral industry’s work may be too vigorous for teams and their managers could be more prone to use ‘solo’ or traditional management styles. Managers and supervisors must know when work allocated to a team is appropriate or where individual effort should be applauded and rewarded. For practical people with well-developed technical skills, improving the soft skills necessary for a supervisor requires some reflection and effort. The Belbin behavioural model can be an effective tool for recognising characteristics that can assist teams to be more productive.Experiencing the Belbin Team Role model as part of an industry qualification is important for supervisors studying to refine their team leadership skills. Data are available for participants to assess the nature of their teams and to confront the appropriateness of the behavioural mix for the work of the team and its individual members.So what are the next steps? All team development must have a place in the strategic thinking and plans of the enterprise. This needs a visible presence of senior managers and supervisors in managing a team culture with practical links to workplace priorities and professional development with continuous improvement.CITATION:Burns, J, Terrey, G and Neville, T G, 2016. Supervisors and teams at work, in Proceedings International Mine Management Conference, pp 125-138 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

A combination of the needs of business, employee desires and safety and health considerations is stimulating increasing attention to the time spent by people at work and the timing of that work. Particularly we are seeing: - innovative work schedules for 24-hour mining businesses; and - response from industry to accommodate the needs, even the desires, of employees in return for systems which are more productive and more capital efficient. There appears to be an evolutionary trend for business management to become more sophisticated and responsive to the need for achieving close to best cost work schedules to sustain continuous improvement. The underlying motivating forces driving this trend for improved techniques in organising attendance at, and time spent at work, is the seemingly inseparable combination of technological advance and ever-increasing accumulation of capital. The mining industry has not remained untouched by this thrust for ever-increasing need for best use of labour, to adopt advances in technology and to provide attractive opportunities for putting accumulated capital to work. An essential component of this on-going thrust is a substantial effort by the mining industry to improve the performance of labour by providing most-productive work schedules.

Jan 1, 1996

By S Robertson, I Buitrago

Mine life cycle planning and enduring value are taking centre stage to meet corporate goals and deliver socio-economic outcomes for communities over the life of a mine. There is a general agreement in the literature about mining-induced effects on locals adjacent to mining operations and subsequent closure. In response, international regulatory bodies, through the implementation of global agendas, encourage exploration and mining companies to embrace the concept of corporate social responsibility. This concept is designed to provide sustainable outcomes and maintain a social license to operate over the life of a mine. This paper proposes a practical application of the sustainable livelihood approach as a tool for international planning. With this approach as the governing framework, this paper proposes an innovative tool for mine life cycle planning. Based on the findings, this paper discusses the socio-economic impacts of mining and mine closure. It also argues that transferring some of the benefits from mining to create lasting value for communities needs to be considered at the initial stages of planning for the mine and the community. Findings also indicate that conditions such as a strong local government, good governance arrangements, relevant capacity-building for sustainable livelihoods and a diversified economy are important to transferring some of the benefits from mining to create lasting value for communities. The paper is based on a mixed research technique for data analysis and a case study methodology. The case studies were conducted in Australia and Colombia.CITATION:Buitrago, I and Robertson, S, ?2014. Mine life cycle planning – creating lasting value for communities, in Proceedings Life-of-Mine 2014 , pp 301–312 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By J Cronin

For the last decade, we have read about the great technical innovation that is coming to the mining industry that will increase safety and productivity. There is consensus that it will be a technical innovation that will produce a step change in mining costs and outputs (as opposed to bigger machines or less people); however, this innovation (while freely available) has not taken hold in the industry. While there are a few mines that have embraced technology, the majority of underground mines simply do not have the expertise or technical capability to implement innovation and automation.With unexploited mineral deposits becoming deeper and more remote, and thus more hazardous to mine, telepresence offers the ability to remotely execute production tasks while separating personnel from hazards. As the technologies required to deliver telepresence mature, the potential for there to be no personnel underground during production activities is becoming a reality (the ‘dark factory’). So significant is the capacity of telepresence to mitigate risk, it is proposed that it be included as a separate entry in the hierarchy of hazard mitigation controls.Technical innovation such as the optimised short-term interval control of the production process and the automation of underground mobile fleets offer significant increases in production along with lower operating costs. This paper explores the most critical components for the successful implementation of technology in underground mining; redundant, robust and high-bandwidth communications networks to carry data from distributed networks of smart sensors and to convey teleoperation commands; and high-definition video to provide operators with detailed, real-time data. The days of analogue ‘leaky feeder’ as a base case for communications are over. The human resources required to support the expected wave of innovation are significant and will be difficult to maintain in remote areas as the same skills and expertise are in demand in other industries.The paper highlights barriers to innovation in the mining industry, and a lack of technical and scientific expertise within the industry to be able to identify, implement and manage technologies that can increase safety and productivity. As well, an over-reliance on basic net present value (NPV) financial analysis that is used in the industry punishes investment in technology (capital expenditure; CAPEX) and accepts higher operating expenditure (OPEX) due to the discounting of future savings in operating costs.CITATION:Cronin, J, 2017. Telepresence – the application of remote control and automation technologies for increased safety and productivity, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 213–224 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By N M. Player, R P. Varden, E Jones

"An effective geotechnical design provides an accurate and appropriate assessment, balanced with a mining company’s risk profile. Justifying the cost of slope assessment requires an understanding of the input sensitivities, and resultant risk, to achieve a slope of a required functionality. As a project progresses from Scoping to Feasibility, the geotechnical risk becomes better resolved through increased expenditure on drilling, testing, analysis and modelling as long as the input data is appropriately spatially distributed. Providing accurate and appropriate geotechnical assessments in the early stages provides confidence in all following stages, especially where initial analysis indicates difficult geotechnical conditions. It is also in the early stages of project definition that there is most opportunity to maximise the value of the deposit through investigations into optimal mining methods.This paper examines the advantages of geotechnical engineering input through a project study period. Early geotechnical involvement allows the Scoping and Pre-Feasibility Studies to be more effective. Operational risks can then be better understood and dealt within the Feasibility Study phase, also ensuring that the correct risks and management controls are put in place.With commodity price pressure and cost of resource recovery in a downturned industry, reducing the risk to cash flow, resource recovery and safety should be a primary goal for all mining companies. Reduced risk can be effectively achieved through geotechnical design of slopes to achieve a required performance as part of an integrated study to the Reserve definition and mine design.Citation:Varden, R P, Player, J R, Player, N M and Jones, E, 2016. Justifying Slope Design Risks and Costs, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 185–201 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016