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By D Andrew, G Stanway, P Mahoney, C Griebel

The iron ore mining industry is currently going through an adjustment from high to more moderate growth as China’s economy transitions from capital-intensive investment to a more services-oriented economy. We are now witnessing a renewed focus on productivity improvements and cost savings as planned expansions are completed. Despite the scale and importance that the mining industry plays in the global economy, innovation literature is generally more targeted at faster-moving industries with shorter innovation timeframes and lower capital requirements. To fill this gap, VCI set out to understand the state of innovation in the mining industry in 2014. This State of Play report aims to give an objective appraisal of the strengths and weaknesses of innovation in mining. The report has three sections covering both the structure and delivery of innovation in mining:Ecosystem – focused on understanding how the iron ore mining innovation ecosystem system works, including the roles of large and small miners, service companies, researchers and governments. Our recommendations focus on what is required for the system to work well and improve the level and quality of innovation in the industry.Strategy – how do companies define their innovation strategy in relation to their corporate strategy? How are these related to prevailing global and industry trends? How do they communicate this with their business? How successful are they? These are among the questions that this section attempts to answer. Our recommendations are pitched at the executive leadership of iron ore mining and service companies.Delivery – focused on how companies develop and deliver innovation, looking at the success of different structural options, leadership and culture, partnerships and the best approaches to change. Recommendations are aimed at improving outcomes within the iron ore mining value chain, including the role that suppliers play.CITATION:Stanway, G, Mahoney, P, Andrew, D and Griebel, C, 2015. Understanding the state of innovation in the iron ore industry, in Proceedings Iron Ore 2015, pp 631–646 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By R. G. Jones

Many novel projects suffer delays, cost overruns or failure because of inadequately qualified technologies. A new qualification to measure the quality of innovation is discussed.

Jul 1, 2015

By M. Schwartz

Hosting copper, gold, oil and liquefied natural gas, the country is an interesting target for miners. However, remote locations in inhospitable, unusual and difficult terrain cause problems. The government has worked to create a Sovereign Wealth Fund to manage government surpluses from minerals and energy but PNG scores very low among many criteria, including land dispute resolution, as revealed by the 2014 Canadian Fraser Institute in its survey of senior mining personnel.

May 1, 2015

By J Ward, B Rohrlach, B Rosero, J Silva, O Poma

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Alpala copper-gold deposit is a recent, high-grade porphyry Cu-Au discovery located in the Imbabura Province of north-western Ecuador. The deposit lies along the crustal-scale Chimbo-Toachi Fault Zone within the Dagua-Piñon terrane, which is an oceanic plateau accreted to the South American convergent margin in the Late Cretaceous. The deposit is hosted by quartz diorite stocks that intrude andesitic volcanic breccias of the Oligocene to mid-Miocene San Juan de Lachas Formation. Miocene-age calc-alkaline plutonism is associated with porphyry Cu, Cu-Mo and Cu-Au deposits in southern and northern Ecuador. The Alpala deposit lies along a sector of the Miocene arc that has recently been underplated by the Carnegie Ridge seamount chain that induced shoaling of the subducted Nazca plate beneath northern Ecuador.Surface expressions of the deposit were recognised in May 2012 during follow-up of stream sediment anomalies, when outcropping sheeted and stockwork porphyry-related veins were discovered in Quebrada Alpala. The roots of a NW-trending, structurally-controlled lithocap were recognised over an area of 4.5 × 0.9 km. The remnant lithocap exhibits well-defined mineral zonation mapped by TerraSpecTM analyses on grid soil samples. Soil sampling, heliborne magnetic surveying and channel sampling defined initial drill targets.Seven diamond drill holes were completed in the year from September 2013. Drill hole CSD-13-005 intersected 672 m grading 0.93 per cent Cu and 0.91 g/t Au in high-temperature, inner propylitic and locally potassic-altered quartz diorite intrusions. Overlying hydrothermal clay alteration assemblages define the base of the lithocap. A NW–SE trending footwall structure defines the south-west margin of the deposit. Drill hole 5 intersected high-grade sheeted ‘B-type’ and ‘C-type’ veins (Gustafson and Hunt, 1975) that lie along the south-west margin of an 1100 × 500 m magnetic anomaly that is the focus of ongoing exploration.CITATION:Rohrlach, B, Poma, O, Rosero, B, Silva, J and Ward, J, 2015. High-grade porphyry copper-gold mineralisation in north-west Ecuador – The Alpala Cu-Au porphyry discovery , in Proceedings PACRIM 2015 Congress, pp 369–376 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By J-M Huizenga, Q Shu, Y Lai, J Hammerli

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Baiyinnuo’er Zn-Pb deposit is a typical skarn deposit in NE China. Skarn and orebodies mainly occur between different units of the Lower Permian Huanggangliang Formation carbonates-sandstone-mudstone or within the contact between intrusions and marble. Skarn minerals are dominated by prograde garnet and clinopyroxene, and the main ore minerals are sphalerite and galena. We conducted single fluid inclusion compositional studies using laser ablation inductively coupled plasma mass spectrometry on clinopyroxene (pre-ore-stage mineral) and sphalerite and calcite (syn-ore-stage minerals). The results show that the Baiyinnuo’er fluids are distinctly different from basinal brine but similar to magmatic fluid, thereby indicating that the deposit has a dominantly magmatic origin. This interpretation has also been supported by the Cl/Br mole ratios, which remain stable (~500) in different fluid stages. The decreases for most of the elements in the fluid inclusions from pre-ore-stage clinopyroxene to syn-ore-stage sphalerite and calcite suggest that mixing with groundwater has occurred during mineralisation, with significant Zn, Pb and Ag deposition.CITATION:Shu, Q, Hammerli, J, Chang, Z, Lai, Y and Huizenga, J-M, 2015. Laser ablation inductively coupled plasma mass spectrometry study on fluid inclusions of the Baiyinnuo’er skarn Zn-Pb deposit, north-east China, in Proceedings PACRIM 2015 Congress, pp 451–456 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Mining and exploration properties have a unique set of technical risks. Privately-owned companies considering investing in the resources sector can optimise their investment decisions by adopting a systematic technical assessment of acquisition assets, similar to the approach commonly adopted by public financial institutions and publicly-listed companies.Technical due diligence provides a process to identify key geological, mining, geotechnical, metallurgical, environmental and social risks and opportunities and determine the most likely business case and valuation of assets. Technical due diligence is commonly carried out in parallel with legal, commercial and financial due diligence, often involving the acquirer, to maximise the understanding of the investment.There are significant advantages in investors conducting a comprehensive technical due diligence, which typically involves site visits and project assessment to international standards by an independent, multidisciplinary team of experts. The outcomes provide the opportunity for the investor to make early, informed decisions and to understand and manage risks.Technical due diligence may be carried out at several stages: when considering and weighing up a number of investment options, prior to and during a transaction or immediately post-transaction. In the first stage, the outcomes will inform the choice of investment and, more particularly, whether there are any fundamental flaws in the projects being considered. In the second stage, due diligence outcomes can inform the level of investment and approach to risk management and planning. In the third stage, risks and opportunities can be investigated in more detail, allowing the investor to consider the best options to reduce risk and maximise the benefit of the investment.This paper presents a summary of the technical due diligence assessment process, its benefits to investors, common risks in mining and exploration projects known to cause mining asset write-downs and principal technical due diligence approaches.CITATION:Keogh, A, Stoker, P and Thomas, M, 2015. Benefits of due diligence in private equity mining investments – maximising value and unearthing common risks , in Proceedings PACRIM 2015 Congress, pp 115–126 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By P Stephenson, G Mosher, M Berry, C Arnold, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Globally, private minerals companies considering the transition to a public company and entrepreneurs looking to create a new public company through, for example, an initial public offering or by a reverse takeover have many options. For companies with assets around the Pacific Rim, there are arguably five key stock/securities exchanges that actively promote international minerals company listings, and these are located in Australia, Canada, Hong Kong, Singapore and the United Kingdom.Listing on any of these exchanges requires a range of technical, commercial, financial and legal documentation. Each exchange has specific rules and requirements for technical documentation to support the listing process. Once listed, each exchange also has specific rules for technical information to meet ongoing compliance requirements. The nature and detail of this documentation differs for the five exchanges.This paper presents statistics on the minerals company listings on each exchange and provides an overview of the technical documentation required to prepare for an initial listing and ongoing compliance.CITATION:Berry, M, Stoker, P, Stephenson, P, Arnold, C and Mosher, G, 2015. Technical considerations of public listing and ongoing compliance for minerals companies , in Proceedings PACRIM 2015 Congress, pp 101–108 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Víctor Barrientos

El presente texto analiza el tiempo adecuado de reemplazo para dos flotas de camiones con ocho años de operación a través de la metodología de costo anual equivalente (CAE) donde se analiza los costos futuros y permite comparar entre proyectos de distintos costos de inversión, operación, mantención (O&M) y vidas útiles. En ese sentido, se utilizó el cálculo de los costos de ineficiencia, operación y mantención, incluyendo el efecto de la inflación.

Mar 1, 2015

By Schwartz M.

Respect for mining in Botswana is long-standing. This article looks at Africa's most transparent mining regime and some of its ambitious plans. Botswana's mining industry value is forecast to average 5.2% growth from 2014-2018 with solid growth for the diamond sector and acceleration of coal production. Respect for the country's mining regime is maintained in the Fraser Institute 2014 annual survey where Botswana occupies the 26th position of 122 administrations. Botswana's transparency is illustrated by Mupane gold mine near Francistown, Ghaghoo diamond mine in the Gope area and the Morupule coal mine

Mar 1, 2015

By Schwartz M.

Madagascar's democratic election has led to a return to its position as a preferred trade partner with the USA and a priority market with Canada. Michael Schwartz takes a look at two key mining projects in this recently reinvigorated country

Feb 1, 2015

By J. Gibson

"INTRODUCTION As one of the most pressing and important political debates of this century, climate change has captured global attention and is forcing governments to take action towards decreasing GHG and carbon emission levels below what was previously thought to be necessary. With the ever-increasing price of diesel fuel accompanied by the popular topic of carbon taxes and greenhouse gas emissions, the mining industry is looking to industry specialists for assistance. The benefits of a no-idle policy reach far beyond carbon reduction and fuel savings, ranging from decreased maintenance to increased engine life. With products like battery powered A/C systems and diesel-fired heaters, going no-idle is easier today than ever before. With both systems being manufactured to withstand the harsh environments of the mining industry, the end user will see a seamless change from conventional, inefficient belt-driven systems to future, stand-alone mobile equipment HVAC. THE HISTORY OF GHGS AND CLIMATE CHANGE In 1896 Svante Arrhenius first claimed that the combustion of fossil fuels may eventually result in enhanced global warming, but not until 1955 did Gilbert Plass draw global attention to global warming by summarizing that adding carbon dioxide to the atmosphere would intercept infrared radiation and thus warm the earth. Then in the early 1960’s Charles Keeling developed modern technology to produce concentration curves for atmospheric CO2 (Figure 1). In 1988 the Intergovernmental Panel on Climate Change (IPCC) was founded by the United Nations after acknowledgement of a rising global annual temperature. The IPCC consists of over 2500 scientific and technical experts from more than 60 countries, and because climate change could not be solved by a single country, the Kyoto Protocol was negotiated in 1998 requiring all participating countries to reduce their GHG emissions by at least 5% from the 1990 levels. The Protocol was signed by 186 countries in 2001 (since then several countries have retreated from the agreement, including the United States)."

Jan 1, 2015

By P. L. Crouse

"SynopsisFluorine – in the form of hydrofluoric acid, anhydrous hydrogen fluoride, elemental gaseous fluorine, fluoropolymers, volatile inorganic fluorides, and more – has played, and still plays, a major role in the nuclear industry. In order to enrich uranium, the metal has to be in the gaseous state. While more exotic methods are known, the standard and most cost-competitive way of achieving this is by means of uranium hexafluoride (UF6). This compound sublimates at low temperatures, and the vapour is enriched using centrifugal processes. The industrial preparation of uranium hexafluoride requires both elemental fluorine gas and anhydrous hydrogen fluoride (HF). HF is prepared by the reaction of sulphuric acid with fluorspar (CaF2). Fluorine gas in turn is prepared by the electrolysis of HF. Yellowcake is first converted to uranium tetrafluoride (UF4), using HF, after which the compound is treated with fluorine to yield UF6. After enrichment, the UF6 is reduced to UO2 for use in fuel elements in pellet form.South Africa has the largest reserves of fluorspar internationally, and is the third largest producer after Mexico and China. Fluorine technology has many associated difficulties, because of the reactivity of fluorine and the toxicity of HF. The main barriers to entry into the fluorochemical industry are thus the abilities to produce both HF and F2. Both these substances are produced locally, at the industrial scale, at Pelchem SOC Ltd. Should South Africa contemplate developing its own nuclear fuel cycle as part of the awaited new-build nuclear project, it will be imperative to leverage the existing skills with respect to fluorine technology, resident at both Pelchem and Necsa, for this purpose. This paper summarizes the fluorochemical skills developed locally over the past several decades, and suggests strategies for maintaining the technology base and developing it for the next generation of scientists and engineers.IntroductionFluorine chemistry has always had a very close relationship with the nuclear industry. Although the first mention of fluorspar was recorded in the sixteenth century, and the fundamentals had been well-developed by the Second World War, it was only during the Manhattan Project (Banks et al., 1994), when almost unlimited funds were made available for the large-scale industrialization of fluorine and related compounds, that the technology took off. Expertise in both the chemistry and the engineering aspects of fluorine is essential for the design and running of several of the unit processes in the nuclear fuel cycle."

Jan 1, 2015

By P. Eger, D. Green

"The Soudan Mine was Minnesota’s first iron mine, operating from 1882 to 1962. The mine was donated to the State of Minnesota in 1963 and became a state park in 1965. The mine discharge contains elevated copper and cobalt concentrations and has been treated with an ion-exchange-resin-based system since 2009. The system includes flow equalization tanks, bag and cartridge filters, a carbon tank and two commercial ion exchange tanks. Although effective, the system’s high cost, inefficient removal of suspended material and substantial maintenance have been ongoing and troublesome issues.In November 2012, we initiated a pilot test using a peat-based sorption media. This media is produced from raw reed-sedge peat through a patented, low-temperature carbonization process that produces a hardened granular sorption material. The granules are uniform, have high hydraulic conductivity and maintain the high metal affinity of natural peat.Mine water was pumped through the peat-based sorption media without any pretreatment. Copper input concentrations typically ranged from 30 to 60 µg/L but increased to a high of 364 µg/L in the summer of 2013. Since startup, more than 60 million L (16 million gal or 32,000 bed volumes) have been treated, with average removal rates of 75 percent for particulate copper and 60 percent for dissolved copper. Backwash is required at about 4,000 bed volumes, but with a combination of air sparging and high-flow backwash, the suspended material is removedfrom the media.One tank of the peat-based sorption media was found to remove copper similarly to the first four components of the existing system. By reducing size and complexity, reductions in operation and maintenance costs are possible. A comparison of the estimated costs indicate that replacing the four initial components with the single media tank has the potential to reduce annual operating costs by more than half from around $163,000 to $70,000."

Jan 1, 2015

By V. S. S. Yadavalli, J. Hager, R. Webber-Youngman

"This article investigates the complex problem of a budgeting process for a large mining operation. Strict adherence to budget infers that financial results align with goals. In reality, the budget is not a predetermined entity but emerges as the sum of the enterprise’s operational plans. These are highly interdependent, being influenced by unforeseeable events and operational decision-making.Limitations of stochastic simulations, normally applied in the project environment but not in budgeting, are examined and a model enabling their application is proposed. A better understanding of budget failure in large mines emerges, showing that the budget should be viewed as a probability distribution rather than a single deterministic value.The strength of the model application lies with the combining of stochastic simulation, probability theory, financial budgeting, and practical scheduling to predict budget achievement, reflected as a probability distribution. The principal finding is the interpretation of the risk associated with, and constraints pertaining to, the budget.The model utilizes a four-dimensional (space and time) schedule, linking key drivers through activity-based costing to the budget. It offers a highly expressive account of deduction regarding fund application for budget achievement, emphasizing that ’it is better to be approximately right than precisely wrong’."

Jan 1, 2015

By M. Hermanus, N. Coulson, N. Pillay

"SynopsisThis paper assesses the effectiveness of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH) and its potential to improve mine health and safety in South African mines. Developed by the Chamber of Mines, which represents the majority of the country's large scale mining employers, MOSH was devised to accelerate progress towards achieving health and safety milestones, which were set by tripartite agreement in 2003. The paper documents and builds on the findings of a study conducted by the Centre for Sustainability in Mining and Industry (CSMI) in 2011 that evaluated MOSH strategy, structures, and process of implementation.The study found that MOSH operated across the mining sector, was directed and dominated by experts and, despite best efforts to include other stakeholders, was led by employers. Statutory worker health and safety representatives and structures were not integrated into the complex change process developed by MOSH. The Mine Health and Safety Inspectorate (MHSI) and organized labour were ambivalent about direct involvement in MOSH and preferred regulatory measures to enforce the participation of mines. MOSH interventions were not targeted at mines with a poor health and safety record, and MOSH lacked a baseline from which to track impacts on sector-wide health and safety performance. The leading practices most widely adopted by mines were designed to improve, rather than fundamentally alter, existing practice. Although the depth of engagement with MOSH among stakeholders and on mine sites varied, mining companies, labour representatives, and the Mine Health and Safety Inspectorate (MHSI) saw the programme as significant.IntroductionIn 2011, the Chamber of Mines commissioned the Centre for Sustainability in Mining and Industry (CSMI) to evaluate the progress and effectiveness of the rollout of the Mine Occupational Health and Safety Leading Practice Adoption System (MOSH). CSMI, based in the School of Mining Engineering at the University of the Witwatersrand, is an independent research centre conducting health and safety research relevant to all major stakeholders in the mining sector. The purpose of the evaluation was to identify the factors that enabled or hampered the adoption of new technologies or practices. The timing of the evaluation, two years before the deadline for the 2013 safety and health milestones, allowed time for adjustments to be made. This paper summarizes the results of the evaluation and includes further analysis and discussion of the nature of the programme and the conditions that act to advance it or it hold back."

Jan 1, 2015

By Tracey Bodnarchuk, Philipp Mirzoev

Sulfate balance control is a common problem for zinc plants. Roast-leach-electrowin plants are mostly concerned with the over-generation of sulfates while for the HudBay direct leach plant both extremes are possible including potential necessity to buy sulfuric acid to replenish a sulfate-depleted circuit, which makes the problem doubly important. Quantitative methods were applied at the HudBay plant to analyze sulfate generation/depletion based on a local sulfur balance and sulfate extraction calculation in the leach circuit, using a Pb-tie method. Main factors were established influencing sulfate generation/depletion, including the critical role of Pb and pyrite. Regression analysis proved to be effective and allowed the quantitative prediction of Pb concentrations necessary to reach the equilibrium for the sulfate balance. This in turn provided a firm basis for a sulfate-control strategy realized through concentrate blend correction, which allowed the plant to fine-tune sulfate generation/depletion effectively reducing economic consequences of excessive/deficient sulfate generation.

Jan 1, 2015

By Rob Boom, Yasuyuki Tozaki, Greg Traquair

The objectives of the business case are to examine a proposed metallurgical project and answer fundamental questions about project feasibility, risks, opportunities, and value. A business case fulfills these basic functions: estimates economic value; helps to understand competitiveness; serves as a risk management tool; and serves as a communication tool. A business case evolves with the project life cycle, and supports the gate reviews at the end of each phase of engineering, through to project construction and operations. A business case must be holistic, including all elements of scope that can impinge on project risk and value.

Jan 1, 2015

By G. M. Scamans

In the past ten years there has been considerable penetration of aluminum automotive body sheet (ABS) into automotive structures. The exponential increase in demand is resulting in major investments in heat treatment and finishing capacity across the globe. Line speed and tonnage throughput is limited by the continuous heat treatment (CHT) floater furnace rather than the cleaning and pretreatment section where electrolytic treatments that offer higher line speeds should come into favour and roll coating of pretreatment should predominate. The capacity limiting surface texturing pass will either be eliminated or moved to the finishing line or a dedicated mill. The key to making aluminum both embedded carbon and cost competitive with steel for more and more affordable classes of vehicles lies in recycling of both prompt scrap and, in the longer term, end of life vehicle scrap. For the first time scrap separation technology is available that can compete effectively with hand sorting and can sort aluminum shredded vehicle scrap into wrought and cast alloys and then into individual alloy groups. The challenge is to use more end of life scrap in alloy formulation whilst at the same time extending the property range in terms of both strength and formability.

Jan 1, 2015

By E. Pardo-Igúzquiza, R. A. Olea

The bootstrap is a computer-intensive resampling method for estimating the uncertainty of complex statistical models. We expand on an application of the bootstrap for inferring semivariogram parameters and their uncertainty. The model fitted to the median of the bootstrap distribution of the experimental semivariogram is proposed as an estimator of the semivariogram. The proposed application is not restricted to normal data and the estimator is resistant to outliers. Improvements are more significant for data-sets with less than 100 observations, which are those for which semivariogram model inference is the most difficult. The application is illustrated by using it to characterize a synthetic random field for which the true semivariogram type and parameters are known.

Jan 1, 2015

By M. Javier

"The impact of mine closure is perceived through a veil of compliance to human laws and regulations rather than the laws and equilibrium of nature. This perception motivates present research. Understanding the causes and effects of mine closure defines levels of responsibility. This understanding evolves from mine closure's legacy. Mine closure is characterized in perpetuity by three aspects: Future liabilities; level of technologies for extraction and, usage of mineral resources. These aspects must be updated to a rationally appropriate level. This paper will address the following questions: Will the minerals remaining in the process of mine closure ever be recovered? Will the mine closure inhibit the availability of minerals for the next generation? How many mines are designed to perform a successful mine closure? Do we close the mines or do we close nature? Is it responsible to continue mine closures as we do them today? Is mine closure a complement of mine operations or a contradiction of mining? Do we need to perform mine closures, yet? This paper reviews mine closure practices and principles with the level of responsibility to nature and for the next generation.PREFACE The planet has irreversible issues to deal with regarding the depletion of mineral resources and contamination occurring from human activities. The population increased exponentially to more than seven billion, this high population with its lifestyles, demands a higher supply of minerals. In spite of these conditions, mining is a vital industry to keep ""civilization"" in society. This is evidenced by what we see around us, in that everything ""made"" in society is directly or indirectly due to mining. Hence, mining cannot be avoided or ignored. Society misunderstands the importance of mining in relation to other activities. At this time, mining is fragmented and economically oriented to supply cheap minerals to a market with peculiar characteristics regarding products that could be designed for recycling and stimulate nature’s equilibrium. These issues add important “variable factors” to the equation, when they are considered as parameters for the next generation. It also raises many questions regarding principles and attitudes about morals and ethics exercised in all anthropogenic activities. The industry's practices have many flourishing paradigms which are subject to a variety of criticisms and observations. Some of these observations will be described in this paper. It is important to clarify in advance a ""normal disclaimer"" about the ""apparent contradiction"" that could take place in the writer's comprehension when we abruptly ""jump to conclusions"". We must remember that we are profiling the future in an arena that demands a better understanding of solutions to problems created by actual mining."

Jan 1, 2015