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By S Chatterjee

The production scheduling of an open pit mine determines the optimal extraction sequencing that significantly impacts a mine’s life as well as net present value. The optimisation of production scheduling of large open pit mines with geological uncertainty is a computationally very intensive process. In this paper, an approximation algorithm is proposed to schedule an open pit mine, where instead of solving the whole problem at once, the production schedule is generated by sequentially solving subproblems. The subgradient method is used to generate the upper bound solution of the Lagrangian relaxed subproblem. If the upper bound relaxed algorithm is not a feasible solution, a mixed integer programming is solved on the generated upper-bound solution. An application at a copper mine with an orebody represented by 16 532 mining blocks is presented using the proposed algorithm. Results show that all constraints are satisfied. The net present values are also calculated and results reveal an 11 per cent higher net present value (NPV) is generated when compared to the NPV generated when the same approach is applied to the deterministic model of the deposit where uncertainty is not accounted for.CITATION:Chatterjee, S, 2014. Stochastic production scheduling – solution through Langrangian relaxation with the branch-and-cut algorithm, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 323–328 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J P. Sykes, A Trench

"World-class mine projects are increasingly failing to become world-class mines. Non-technical, socio-political and environmental problems seem, in part, to be the cause. However, the intangible and qualitative nature of these problems means overcoming them will require a greater systemic understanding of how the various technical and non-technical factors interact. This is particularly important as the concept of sustainable development has changed the industry paradigm sufficiently that it is no longer clear what world-class means. Finally, this better systemic understanding of mine projects needs communicating back to the exploration sector to improve exploration targeting.However, a disconnect between the exploration and mining sectors and between geologists and mining’s other professional disciplines means this is currently not possible. The use of economic evaluation techniques to assess the risk and value presented by the various technical and non-technical factors can assist with this by giving the varied professions a common language and including inputs from all disciplines. This paper therefore suggests a theoretical framework for analysing the various technical and non-technical factors, particularly the most challenging intangible and qualitative ones, and incorporating them into the typical economic evaluation techniques used in the mining industry.Understanding the risk and value relating to both technical and non-technical risks, however, places a greater emphasis on mining geologists to be conversant with a wide range of disciplines. Mining geologists will have to develop three types of knowledge:focusedinter-disciplinarybroad. In addition, they will have to become systemic thinkers to connect these types of knowledge. This multidisciplinary approach will require the use of fundamental critical thinking skills, common sense, intuition, experience and quantitative modelling techniques, dependent on the situation. As a result, both companies and professional societies, such as the Australasian Institute of Mining and Metallurgy, will have to develop ways of improving mining geologists’ inter-disciplinary and broad knowledge.CITATION:Sykes, J P and Trench, A, 2014. Resources versus reserves – towards a systems-based understanding of exploration and mine project development and the role of the mining geologist, in Proceedings Ninth International Mining Geology Conference 2014 , pp 243–270 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

By I H. Wilson

After decades of turmoil, Rwanda launched its Vision 2020 in 2000 aimed at reconstructing government and addressing poverty. Implementation focused on the agricultural sector, infrastructure and education. Later economic development and poverty reduction strategies recognised that expansion of tantalum, tin and tungsten mining could potentially diversify Rwanda’s economy and improve the balance of trade. In 2005, comprehensive environmental legislation requiring environmental impact assessment for all new mines was introduced. Since 2006, government-operated mines have been privatised and illegal artisanal miners encouraged to form cooperatives. The government passed a new Mining and Quarry Exploitation Law in 2008 and approved a new Mining Policy in 2010. This policy was influenced by the Africa Mining Vision (AMV), which the African Union approved in 2009 to ensure African countries obtain reasonable benefits from exploitation of their mineral wealth. The Rwandan mining industry has grown significantly over the last five years and the second economic development and poverty reduction strategy, released in September 2013 forecasts a further three-fold increase in production in the next five years. The strategy prioritises the mining industry and proposes new legislation, better information, greater transparency, encouragement to investment and use of best environmental and technical practices. It also proposes that Rwanda develop a ‘green’ mining sector featuring a ‘model’ mine that is fully funded through green investment and incorporates renewable energy systems, water treatment systems, forestry schemes and local training. Many international development partners have contributed to the current legislative framework and are monitoring environmental and social performance of mining in Rwanda. Local communities have generally benefited from mining and the new mines show improved environmental performance. The major challenges are dealing with the legacy of past haphazard mining practices and establishing linkages between the mines and local industries to create broader economic development.CITATION:Wilson, I H, 2014. Rwanda and the Africa mining vision, in Proceedings Life-of-Mine 2014 , pp 427–438 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M Pepper, C R. Roche, G M. Mudd

"The Australian mining industries approach to life-of-mine planning has improved considerably in recent decades. It now needs to be matched by, and embedded in, mining governance systems that utilise a comprehensive whole-of-mine-life approach within a jurisdictional, industry and regional regime rather than just focusing on specific impacts in isolation. The need for a more comprehensive approach is supported by the many mining legacies, from historic, recent and some operating mine sites around Australia. There are sites that are leaving enduring environmental, community and public health impacts that are yet to be accurately assessed. While a number of these sites in Australia are estimated to be more than 50 000, this is probably an underestimation, with a lack of data and different state-based approaches complicating attempts to quantify mining legacies as a national issue. Qualitative assessments about the extent and nature of mining legacy impacts on nature and communities across Australia are also required if we are to understand and avoid ongoing and future mining legacies.This paper commences with an exploration of mining legacies as an umbrella term for previously mined, abandoned, orphan, derelict or neglected sites. This is followed by a discussion of the current status of mining legacies as an Australia-wide issue, contrasting the Australian response with overseas examples. Common themes from past workshops are explored recognising that mining legacies are a growing public policy issue and identifying key ingredients for a successful response. Supporting this, and based on national data which re-enforces the need for action, is the changing scale and intensity of mining in Australia that, while lowering costs for mine operators, increases the liability that may eventually fall to the state if mine sites are not rehabilitated effectively. Though a national issue, mining is a state and territory responsibility, so the current approach to mining legacies is then examined state-by-state. Given the widespread application and recent changes to bonds and levies in Western Australia (WA) and the Northern Territory (NT) the merits of both are examined with reference to specific case studies. Despite the current division of responsibility and diversity of approaches, however, mining legacies remain a significant and growing problem with a recognised need and repeated call for cooperation and coordination at a national and international level. Future action is addressed in the final section with reference to liability, responsibility, industry reputation, regulation and leadership.CITATION:Pepper, M, Roche, C R and Mudd, G M, 2014. Mining legacies – understanding life-of-mine across time and space, in Proceedings Life-of-Mine 2014 , pp 449–466 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 16, 2014

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 H J. J Boshoff

Mine closure planning integrated into life-of-mine (LOM) planning during the operational phase consists of many subcategories. One of these subcategories that needs to be fully integrated into the LOM planning is that of water management planning. Issues arise when mine water management infrastructure, which is required post-mine closure, is only considered closer to the end of LOM. Once the mine is closed monitoring is focused on water quality as an indicator of closure performance, hence inadequate upfront post-mining water management planning or integration into operations will result in environmental harm. The lack of considering post-mining water management is not uncommon in LOM planning. Poor mine site water management and planning are a wide reaching problem for the mining industry. Numerous active mines have been issued with environmental notices and penalties for contaminated water discharge; including issues with abandoned mines now being cared for by governments all over the world.Mitigating sources of water contamination caused by existing and closed mine sites that are leaching pollutants might be impractical, due to inaccessibility to the contaminants or final landform topography. The opportunity to consider and introduce post-closure required mine water management infrastructure is lost once the waste facilities are constructed. Mitigating contamination is made more problematic with mines located in remote areas, serviced by dedicated roads, water supply, electrical supply, etc. It is expected that these services will be decommissioned or drastically reduced, once closure is reached making remedial work much harder. Inadequate planning, to ensure access and easily maintainable water management infrastructure, could lead to erosion and contamination going unnoticed. There are numerous examples of poor mine water management practices in Africa, Asia, Australia, South and North America. In the United States more than 23 000 km of streams are affected by pollution sourced from some 50 000 abandoned or mature mine sites (DeGraff, 2007).CITATION:Boshoff, H J J, ?2014. Inadequate water management planning resulting in long-term closure liabilities, in Proceedings Life-of-Mine 2014 , pp 233–246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By F I. Cox, D Peeler, T Bodisco

"Diesel particulate matter (DPM), in particular, has been likened in a somewhat inflammatory manner to be the ‘next asbestos’.From the business change perspective, there are three areas holding the industry back from fully engaging with the issue:There is no real feedback loop in any operational sense to assess the impact of investment or application of controls to manage diesel emissions.DPM are getting ever smaller and more numerous, but there is no practical way of measuring them to regulate them in the field. Mass, the current basis of regulation, is becoming less and less relevant.Diesel emissions management is generally wholly viewed as a cost, yet there are significant areas of benefit available from good management.This paper discusses a feedback approach to address these three areas to move the industry forward. The six main areas of benefit from providing a feedback loop by continuously monitoring diesel emissions have been identified: Condition-based maintenance. Emissions change instantaneously if engine condition changes. Operator performance. An operator can use a lot more fuel for little incremental work output through poor technique or discipline. Vehicle utilisation. Operating hours achieved and ratios of idling to under power affect the proportion of emissions produced with no economic value. Fuel efficiency. This allows visibility into other contributing configuration and environmental factors for the vehicle. Emission rates. This allows scope to directly address the required ratio of ventilation to diesel emissions. Total carbon emissions. For National Greenhouse Emissions Reporting (NGER)-type reporting requirements, calculating the emissions individually from each vehicle rather than just reporting on fuel delivered to a site.CITATION:Cox, F I, Bodisco, T and Peeler, D, 2014. Continuous remote emissions monitoring – the lynchpin for air quality management, in Proceedings 12th AusIMM Underground Operators’ Conference 2014, pp 137–142 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 24, 2014

By C Jones

When the Paulsens operation was poised to be placed on care and maintenance, Bill Beament and the rest of the Northern Star Resources (NSR) team capitalised on the opportunity to send the Ashburton region’s only operating gold mine into the record books.A three-stage strategy was devised by NSR to pay off the acquisition and maximise the return from the operation. The first stage was to mine the 55 000 oz mine plan and pay off the cost of the acquisition, then maintain profitable production beyond the seven months and re-establish a mine life. The second stage involved an early commitment to a 220 m long diamond drill drive being placed in the hanging wall of the orebody from which the extensions of the orebody could be further explored, allowing the second stage of the plan to come into effect and extend the mine life by converting Inferred Resources into the mine plan. The third stage of the initial plan was to utilise this drill drive and continue to drill deeper holes beyond the current limit of drilling in the ore zones to extend the orebody and increase the mine’s life.With an ever growing desire to further expand, the young company took on the bold move of establishing its own mining services division. A critical element to the success of this was ensuring that the right people were recruited with the appropriate specialised skill sets.Aligning common goals amongst all NSR team members, from the board and senior management to the work force on site, was critical to integrate the new and driven direction that Paulsens had adopted. It was essential to change the focus and a shift in all employees’ attitudes and values from a mine that was all but down and out, to a site that wanted to be kicking some serious goals.Teaming together a passionate and driven leader with a strong allied workforce was always going to put NSR in the best position possible to make Paulsens the success story that it now is. But without the calculated risks and enthusiastic attitude, the little known mine site in the Pilbara might have remained just that.CITATION:Jones, C, 2014. The Paulsens transformation – a shining light under a northern star, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 191–196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By Heather Wright

Shovel operators are one step closer to having a better tool to operate and monitor their equipment. The development of a unified shovel interface is proceeding into phase three, focused on producing a standard application programming interface (API) for connecting onboard devices. This solution will positively impact safety, performance and productivity, and is the result of collaborative work driven by the Global Mining Standards and Guidelines Group (GMSG). Proof of concept revealed During the spring of 2013, Peck Tech Consulting was engaged to develop the working proof of concept (POC) software implementation, which integrates multiple vendors? systems into a single interface using one-to-two displays. As a result, the GMSG developed a functioning, manipulatable, unified shovel interface proof of concept and unveiled it at the World Mining Conference in August in Montreal. The proof of concept effectively provides a unified operator interface that pulls together the many divergent systems onboard large shovels.

Mar 1, 2014

By O. J. R. Baena

Mining activity in the Segovia region in NE Colombia is the main source of employment in the local economy. This has created major problems of illegality and informality mining associated with a high social and environmental impact, as inefficient technologies are used and high consumption of toxic substances required in the process of gold recovery by amalgamation and cyanidation. In this work is presented mineralogical characterization of six local mills and studied beneficiation processes developed in them. With the results presented a proposed plant design that eliminates the use of mercury by replacing gravity concentration processes taking advantage of the characteristics of the treated material. Significant results were obtained regarding the recovery of precious metals and present a methodology that can be replicated in other mineral beneficiation plants that use gold amalgamation processes. This implies a significant reduction in mercury use and decreased risk of human contamination associated with this.

Feb 23, 2014

By M. Rotz

In the minerals industry today, the ?low hanging fruit? that once existed to debottleneck production and improve recovery, while meeting market needs for quality in mineral processing operations, are more and more difficult to find. Systematic methods for establishing plant mass flow, recovery, operational efficiency and control strategy in context with customer specifications provides the necessary insight and confidence for plant operators to prioritize improvement projects in order to maximize return on investment (ROI) for the site. The evaluation of aggregate and industrial mineral processing plants requires the following steps when projecting cost saving opportunities: collecting background data, conducting a base-line evaluation, analyzing specific unit-operation performance, defining investment options, prioritizing the selected improvement opportunities and the implementing process changes. The following paper describes the approach and challenges of developing an improvement plan for a dry and wet mineral processing operation.

Feb 23, 2014

By K. Zhang

Real option value (ROV) method is considered to be more practical and advanced compared to net present value (NPV) method in evaluating a mining project, in particularly when there is substantial uncertainty in the commodity market as well as possible operational flexibility embedded in the project. Usually, it may take months or even years for the commodity product to be available in the market after the mining activation decision is made. The impacts of postponing the delivery of commodity product on the mine?s ROV and NPV are assessed based on the proposed real option method. Postponing the delivery of the products leads to declined NPV and ROV compared to the non-postponing scenario and extended postpone results in higher lost values in NPV and ROV. For a mine with lower mining cost, by postponing the delivery, the exercising threshold of commodity price is lower because the mine owner anticipates that commodity price may rise during the time of postponing. A mine with higher mining cost requires a higher exercising price threshold to ?lock up? the profit when there is ambiguity of market situation due to the postponing of the delivery.

Feb 23, 2014

By M. A. Bartkoski

Today?s surviving companies are being pushed to a heightened level of excellence due to market changes. Therefore, new business strategies must be explored. This paper offers a sequenced plan to retool, empower, and organize the entire team for a common goal. Integrity Process is an operating system that is very comprehensive and is integrated in every part of the business. It relies on a detailed prevention concept intertwined with accountability that produces individual efficiencies and team effectiveness. Integrity Process focuses on the importance between working from commitment motives versus compliance fears. The results are balanced in priority and truly yield a win-win for the owners, management, workforce, and the community. Integrity Process can and is being used in any industry that is challenged to optimize the relationship between people and process.

Feb 23, 2014

By F. Habashi

The peninsula that lies between the Black and Mediterranean seas, called Asia Minor by the Romans and Anatolia by the Greeks, was one of the crossroads of ancient civilizations. The fall of Constantinople in 1453 was a turning point in the history of mankind. Visits to Istanbul, Ankara, Eskisehir, Cappadocia, and Trabzon will be given together with the history of the country. Mineral resources of the country will also be briefly outlined.

Feb 23, 2014

By Luttrell. G.

The profitability of coal mining operations is highly dependent on the performance of the coal blending and processing facilities. Many companies have recognized this fact and have instituted optimization programs that require large amounts of coal characterization data, extensive operational information and complex costing models. Unfortunately, this brute force approach to optimization is often overwhelming in terms of time and cost and is generally too inaccurate to be of value in day-to-day field operations. A simpler and more practical approach involves the use of ?micro-price? optimization throughout the coal supply chain. This fundamental concept assigns unit values to each type product (particle or groups of particles) passing through the production units. True optimization occurs whenever all particles with positive worth are recovered and passed to market, while all particles with negative worth are rejected. This paper describes the fundamental workings of the micro-price concept as applied to coal blending and processing operations. Several examples are also included to demonstrate the economic gains that can be realized via the application of this concept.

Feb 23, 2014

By R. Armstrong

Due to limited available level ground, Nkomati Nickel Mine cut a weathered rock slope at the base of a mountain spur in order to create a platform for construction of the primary crusher plant and run-of-mine stockpiles. As space is limited around the mining area, ore processing at Nkomati is based on a high reliability of flow of material through the crusher plant, with minimal usage of other and larger designed stockpiles. Evidently, any crusher plant shutdown will render the mine as a whole unproductive and put excessive strain on the medium- to long-term large ore stockpiles, the deposition rates for which are restricted by founding material consolidation requirements. At the onset of the 2012 rainy season, movement was identified on the slope monitoring system and cracks developed on the slope. After a minor failure on the crusher slope an assessment of the slope stability was conducted and a slope management plan recommended, which included deployment of real-time monitoring. An evaluation of the conditions leading to instability was conducted and the likely causes for the failure identified. A full evaluation of the slope monitoring, rainfall, and mining conditions was undertaken and movement triggers were determined. This paper describes the events leading to the development of the failure and the evaluation of the monitoring data to determine a management plan for the failure that allowed for minimal shutdowns of the primary crusher.

Jan 1, 2014

"Chairman: Professor E. P. PFLEIDER Rapporteur: Mr P. R. JANISCHPapers:Optimum design of an open pit by D. A. PhillipsAn open pit design system for stratiform ore bodies by L. A. J. Pronk van Hoogeveen, J. R. Cutland and M. WeirAn open pit design model by R. H. Robinson and N. B. PrennThe Chairman in opening the session highlighted the current situation in the United States of America where some 85 to 90 per cent of all mining (except for coal) is done by open pit methods, and where some 40 per cent of the coal is mined by open pit. The South African industry is, of course, dominated by the deeper level underground gold mines; however, with the aid of an extensive open-pit technology developed in other countries, South African companies arc continuing to explore possibilities of open-pit exploitation of base mineral, coal and diamond deposits. Several successful ventures are already in operation at Phalabora, Optimum Colliery, Kimberley and elsewhere, and South Africa is undoubtedly benefitting in this regard by drawing on the experience of others.The papers of this session were therefore particularly pertinent, particularly when viewed in conjunction with those presented at an earlier South African conference devoted specifically to open pit mining.Two themes dominated the discussion which followed presentation of the three papers at this session. The first related to the practicability of using the reported techniques as a tool for management, and their acceptability as such to mine management. This was, of course, not peculiar to this particular session, but rather the major point of debate over the entire conference.The second theme concerned the reliability of the initial drill hole data on which any open-pit design must necessarily be based. This gave added emphasis to the problem of practicability, for no management is likely to accept an elaborate pit design unless confidence can be placed in the ore reserve assessment.In noting these two features of the discussion, it should be remembered that all the three papers dealt largely with design and pre-planning; there was an unfortunate lack of papers or discussion on the subject of controlling the day-to-day mining of open pits, and this is an area where the potential impact which can be made by the computer is even greater.In introducing his paper, Mr D. A. Phillips pointed out that it was concerned only with optimization, and that it therefore assumed, firstly, an adequate subdivision of the orebody into ore blocks characterized by grade, rock type, structure, etc., and, secondly, an acceptable forecast of costs and mineral prices in order to generate a suitable profit matrix. However, programs dealing with these problems for both massive, disseminated and stratiform ore bodies are available to Roan Consolidated Mines. The method of optimization which he had described had been used on a region split into 28 000 blocks, for which the program used three hours of C.P.U. time on an IBM 360/40 computer. The computer design had provided a three per cent improve¬ment on a normal design of the same area."

Jan 1, 2014

By Jean Michel Marino, Jean-Pierre Slama

"The computer methods used by the French Commissariat a l'Energie Atomique, which are applicable to any type of ore deposits, are:(i) Ore reserve estimation. The data are either the core analyses or gamma leggings. To determine the spatial distribution of the ore, three different methods of interpolation are used. Two of these are based on the least-squares theory and the third one is an application of the regionalized variable theory. The interpretations of the orebody by the geologists are introduced in the computer program as often as possible.(ii) Optimal open pit design. From the spatial distribution of ore, the three-dimensional outlines of the optimal pit are determined by a geometrical algorithm which allows different slopes varying with the azimuth.Finally, the optimization of annual successive plans arc discussed."

Jan 1, 2014

By L. Chunpongtong

ABSTRACT The mining limit in oil sands is regulated by the ratio of total mining volume (ore, interburden, and overburden) one has to mine per volume of bitumen in place (TV/BIP). This paper presents a mathematical solution for creating the most economical pit outline where the TV/BIP ratio upper limit is 12, by combining mining economic theory and the Lerchs-Grossmann (LG) algorithm.

Jan 1, 2014

By H. S. Sichel

"The valuation of diamond ferous deposits depends on (i) the density distribution, (ii) the size distribution of stones and (iii) the selling price structure prevailing at a particular time.In the density distribution the stochastic variable is defined as the Dumber of individual stones found per sample unit irrespective of the stone size. The density distribution is discrete and allows for barren sample units.As diamonds often occur in clusters, a Poisson mixture distribution is derived which is entirely new, as existing discrete distributions cannot represent the stone number frequencies found in nature.For the sizes of diamonds, which are measured by weight, a new compound logarithmic normal distribution is developed.Combination of (i), (H) and (iii) leads to a meaningful appraisal of diamond ferous ground expressed in monetary value per production unit of mining.Finally, confidence limits are calculated which allow for inference from sampling to recovery."

Jan 1, 2014