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By J Foo, T Kleinschmidt, B Reynolds, K Kennewell

The consideration of complex supply chains often highlights multiple system bottlenecks that are localised and dynamic – they shift depending on what variability last influenced the system. Using the understanding of a dynamic system model, synergies between items that tackle localised bottlenecks can be understood to generate a suite of solutions. These can be simple solutions, such as a couple of new conveyors placed in series, or more complex ones, including buffer dynamics (capacity, location, behaviour, etc).Each solution in the suite will have an associated uplift in system performance and an associated cost of implementation. Dynamic simulations can address each situation in turn and estimate the projected improvement it would offer. However, these solutions will have different benefits when implemented together, and each solution will give different uplift depending on what other solutions have already been assumed. If the number of solutions is numerous, traditional dynamic simulation analysis becomes the bottleneck, limiting options analysis to the processing power available.This paper will illustrate the use of a new technique applied as part of a capital growth optimisation project with a major iron ore producer. Metamodelling is the creation of a model of a model; in this case study, the focus is on developing a response surface representing the suite of solutions. This can be achieved through a combination of dynamic modelling and an appropriate mathematical process called design of experiments. The result is an approximation surface of the outcomes of the dynamic model, encapsulating interactions between key elements of the value chain.This modelling approach provides a number of advantages compared to traditional dynamic modelling approaches, including but not limited to:early and rapid evaluation of a large range of potential solutionsaccommodation of multiple initial states of the value chainoptimisation of the overall suite of upgrades (down to route-level upgrades) based on business objectiveseasy re-evaluation of outcomes when key inputs such as costs change.CITATION:Kleinschmidt, T, Foo, J, Reynolds, B and Kennewell, K, 2015. Case study of iron ore value chain optimisation, in Proceedings Iron Ore 2015, pp 605–612 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By B J. Hutchison, S Gannon, J Chambers, D Oko-oboh

The Kanmantoo copper mine is located in the Adelaide Hills area of South Australia and is owned and operated by Hillgrove Resources (HGO). The mine is a drill and blast, truck and shovel operation mining sulfide (chalcopyrite) ore located in chloritised andalusite biotite schist. The initial Kanmantoo open pit operation occurred in the 1970s, before falling copper prices closed the mine. In 2010 the mine was reopened by HGO and the Kavanagh cutback of the Kanmantoo pit was undertaken. The Spitfire, Nugent and Emily Star satellite pits were also mined through to 2015 before the latest steep wall Giant pit design was developed to take mining out to 2019.There are no major fault structures and only two significant shear zone structures exposed in the open pit walls. The main Garnet Andalusite Biotite Schist (GABS) unit is quite competent so the pit designs have therefore mainly been controlled by four distinct joint sets. This paper is a case study on the influence of the joint regime on the wall stability of the main GABS unit and how a better understanding of the joint regime and the use of rock reinforcement has allowed the steep wall design to be adopted.The paper also describes the remote geotechnical mapping and slope monitoring techniques used to manage the rockfall risks associated with the steep walled slope design.CITATION:Hutchison, B J, Chambers, J, Gannon, S and Oko-oboh, D, 2017. Case study of joint structure and the design and performance of open pit walls at the Kanmantoo copper mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 355–364 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By M. A. Trevits, R. J. Matetic

Mining operations have long been accused of causing a disruption to local, domestic and agricultural water supplies. More recently, concern for water supplies has increased with the advent of high-extraction mining techniques, namely longwall mining. Theoretically, any water-bearing zone in the overburden above a high-extraction mining operation may be affected by mining. In some cases, a confining bed may be fractured causing a loss of water to a particular zone. In other cases, increased fracture permeability may enhance the ability of an aquifer to transmit and deliver water. Unfortunately, only a limited number of studies have been conducted that characterize hydrologic changes and also quantify the magnitude of mining-induced subsidence. The US Bureau of Mines (USBM) conducted such a study at a mine site in Greene County, PA. A total of eight water wells were drilled, and hydrologic parameters, such as specific capacity, transmissivity and well yield, were determined both before and after mining. Electronic water-level recorders were installed on each water well to provide continuous observations of water level fluctuations.

Jan 1, 1993

By R. J. Matetic

Mining operations have long been accused of causing a disruption to local, domestic and agricultural water supplies. More recently, concern for water supplies has increased with the advent of high-extraction mining techniques, namely longwall mining. Theoretically, any water bearing zone in the overburden above a high-extraction mining operation may be affected by mining. In some cases, a confining bed may be fractured causing a loss of water to a particular zone. In other cases, increased fracture permeability may enhance the ability of an aquifer to transmit and deliver water. Unfortunately, only a limited amount of studies have been conducted that characterize hydrologic changes and also quant1fythe magnitude of mining-induced subsidence. The U.S. Bureau of Mines conducted such a study at a mine site located in Greene County, PA. A total of 8 water wells were drilled and hydrologic parameters such as specific capacity, transmissivity and well yield were determined both before and after mining. Electronic water level recorders were installed on each water well to provide continuous observations of water level fluctuations.

Jan 1, 1990

By Warder A. Shaver

INTRODUCTION Mine No. 95 of the Consolidation Coal Co., a divi¬sion of Continental Oil Co., is located in Shinnston, WV. Mine No. 95 was opened in January 1967 and has been operating continuously since that time. The mine has 544 hourly and salaried employees. In 1974 this mine was the largest coal producer in West Virginia. Opera¬tions include two longwall sections and eight Marietta Borer continuous miners. Originally there were also two Jeffrey Heliminer continuous miners, but use of these was discontinued in June 1978. Production averages 12 727 t/d (14,000 stpd). Two portals now service the mine with a third portal proposed for 1978. GEOLOGY Mining takes place in the Pittsburgh coal seam which dips 0.04 rad (21h°) northwest. The working seam is steam coal with an average height of 2.2 m (86 in.). Immediately above the seam, the overburden is com¬posed of 6.1 m (20 ft) of shales followed by 6.1 m (20 ft) of weak sandstone and 51.8 (170 ft) of shaley limestone. The shale weathers when exposed to mois¬ture. Surface water has been a problem due to a fire¬clay floor which turns to paste when mixed with water. GENERAL DESCRIPTION The present mining plan for Consol's No. 95 mine has a proposed life of 35 to 40 years. One set of main headings has been driven in the north direction and one set in a western direction. These are the areas in which the majority of the virgin coal lies. The panels are driven off of the mains at 2134 to 3048-m (7,000 to 10,000-ft) intervals. The continuous mining sections are set up 133 x 610 m (600 x 2000 ft). Longwall sections are 259 x 1220 m (850 x 7000 ft). All of these mining sections are retreating uphill. Development is with continuous miners. A Marietta Borer miner is used for the main development work. These miners cut 4.1 m (13 ft 6 in.) wide and 2.1 m (7 ft) high, leaving an arch cut. Along with the arch, a 152.4-mm (6-in.) thick layer of roof coal is left in place to protect the roof from weathering. The combi¬nation of the self-supporting arch and the roof coal al¬lows the entries to be driven 30.5 m (100 ft) without bolting. Full bolting, however, is carried outby the last open crosscut. This bolting is done on 1.5 x 1.5-m (5 x 5-ft) centers using 1.5-m (5-ft) long roof bolts with tandem anchors and 152.4-mm (6-in.) steel washer plates. When needed, crib blocks with a 50.4-mm (2-in.) drill hole are used as supplemental supports. Three-hole steel channel with the ends curved down¬ward to conform to the borer arch may also be used. In the mining sections, a 14 BU loader is used be¬hind the Marietta miner to load two Torkar shuttle cars. These haul to Long-Airdox feeder breakers which load onto a 1.07-m (42-in.) wide conveyor belt. With the exception of the shuttle cars, which use 275-V d-c power, the face equipment operates on 550-V a-c power. The main power line is 7200 V ac. The same loading and hauling equipment is used with the Marietta Borer miner for driving both panel and development entries. In the retreat sections, the same equipment with the exception of the miner is utilized. Because of the advantage of a variable cutting hight, Jeffrey Heliminer ripper-type continuous miners were employed in these retreat sections. For longwall mining the first unit uses an Eickoff EDW 300-L double-drum ranging shearer. Drum di¬ameter is 1.69 m (66 in.) with a drum rotation speed of 45 rpm. The drum is equipped with 48 Carmet 34-L-1 bits. The 300-kW (400-hp) motor operates on 1000 V. Tramming of the shearer head is done through a hydraulically driven 26-mm wide chain. Maximum cutting speed is 7.93 m/min (26 fpm), and maximum tram speed is 12.8 m/min (42 fpm) with an average cutting speed of 3.66 m/min (12 fpm). Web cutting depth is 762 mm (30 in.) and the cutting height is 2.13 m (7 ft). The conveyor width is 686 mm (27 in.). It uses a single chain, 26 mm thick, with flights on 0.91-m (3-ft) spacing. The face conveyor speed is 64.3 m/min (211 fpm) when driven by two 112-kW (150-hp) 1000-V Louis Allis motors through torque convertors. The roof support used is Gullick Dobson chocks [6-legged 77.3 t (85 st) per leg, 463.6 t (510 st) total capacity] with double-acting leg jacks. The hydraulic pressure for the legs is 13.8 MPa (2000 psi), and the hydraulic pressure for rams is 6.8 MPa (1000 psi). The yield valves are set at 57.8 MPa (8500 psi). Each chock weighs 4.09 t (4.5 st). The stage loader is an Eickoff drive, with a 68-kW (90-hp), (00-V Reliance motor. A 26-mm thick single strand chain with flights on 0.6-m (2-ft) centers runs at 75.89 m/min (249 fpm). The stage loader is self-advancing and is connected to the belt tail piece with a special fifth wheel attachment so that the stage loader can advance and guide the tail piece. The hydraulic pressure for the roof support is supplied by two 45-kW (60-hp) Reliance motors op¬erating on 699 V, with 1.26 L/s (20 gpm) constant volume Gullick hydraulic pumps. Each pump services alternate chocks, with the two pressure lines connected at the tailgate by 25.4-mm (1-in.) hydraulic hoses, rated at 27.21 MPa (4000 psi). The 6.8 MPa (1000 psi) pressure rams advance is supplied by a 45-kW (60-hp), 600-V Reliance motor and a 1.26-L/s (20-gpm) con¬stant volume Gullick pump. Return lines are 35.5-mm (1.4-in.) diam hydraulic hoses with rated capacity of 27.21 MPa (4000 psi). The fluid used in the hydraulic system consists of 95% water and 5% Hy-chock fire resistant water soluble oil. Water is stored and mixed in a 6096-L (2000-gal) track-mounted tank and goes to a 655-L (180-gal) reservoir at the pump. The belt conveyor structure is 1.07 m (42 in.) wide with 0.47 rad (27°) idlers, bottom stands located on 3.05-m (10-ft) centers, top stands on 1.5-m (5-ft) centers, and is supported on a 19-mm (3/4-in.) diam

Jan 1, 1982

By W M. Tekano, T S. Coulter, N M. Hutt

The Vancouver Island Highway Project (VIHP) was a $CAD 1.2 billion expenditure by the Province of British Columbia to improve travel safety and relieve traffic congestion between Victoria and Campbell River on Vancouver Island. In the section of highway between the Tsolum River and Oyster River, on the Inland Island Highway portion of the VIHP, over half of the rock to be cut and filled was found to be net acid generating. The Tsolum River has been impacted by metal leaching and acid rock drainage (ML/ARD) for decades from an upstream closed minesite. Geochemical testwork indicated: over half of the rock along this section of highway was potentially net acid generating based on a site-specific SNPR (=NP/SAP) criterion of 1.5; some core samples were already acidic; pyrite occurred in disseminated framboidal and gel forms; the rate of acid generation was not high; measured neutralisation potential (NP) provided some lag time for the onset of net acidity; and non-carbonate neutralising minerals prevented low pH (These predictions led to ML/ARD controls involving: realignment of the highway; elevation control to minimise the volume of disturbed rock; encapsulation of blasted-rock fills within the highway, surrounded by low-permeability till and covered with asphalt; and diversion of water away from cut faces. Internal pipes drained any water reaching the fills into external ditches and ponds, where the water could be monitored and, if necessary, treated. Water from the cuts was also captured in ditches and carried to monitored ponds. Elevated aqueous sulfate concentrations in several ponds confirmed that sulfide minerals were oxidising, but the lack of both acidic pH and increasing trends in concentrations demonstrated that ML/ARD was controlled. Contingency plans for any pond that may become acidic include water treatment, which predictive testwork has shown would not require substantial amounts of limestone or lime.

Jan 1, 2003

By H. Cay, J. Zachwieja, T. Esplin, R. Ravenelle, T. Olsen-Tank

Barrick Goldstrike mine utilizes a carbon-in-leach (CIL) circuit to simultaneously leach gold into solution with cyanide and adsorb the gold-cyanide complex onto activated carbon for further refinement. If the gold bearing ore contains a significant amount of native carbonaceous material, gold cyanide can be adsorbed at these sites instead of onto the desired activated carbon and the gold is effectively lost to tailings in a detrimental process known as "preg-robbing." The preg-rob effect is considerably reduced by treating the ore with a surfactant, which is hypothesized to adsorb to and passivate the native carbon surfaces. Past laboratory and pilot studies have consistently demonstrated significant gains in gold recovery after treating carbonaceous ore with surfactant. With success in bench and pilot scale testing, a plant trial was conducted at Barrick Goldstrike to evaluate the feasibility of using an alkoxylated fatty amine surfactant (Ethomeen T/12) to aid in the leaching of high preg-robbing ores. This paper analyzes the performance of the surfactant during the plant trial in addition to the problems that occurred during the trial period. Suggestions for improvement are also discussed.

Jan 1, 2014

By David Hill

Over the last decade, Beltana No.1 Mine has generally been Australia?s most productive longwall operation, with a ROM output of 7.2 Mt in YEJ2007. Characteristically favorable roof conditions and low depths of cover resulted in typically high rates of development drivage and longwall retreat. As a consequence of these high rates of development and extraction, there was a continuing focus on recovering and relocating the longwall face as efficiently as possible to minimize associated production delays and operational costs. This paper presents a comprehensive case study of the conventional longwall recoveries (?take-offs?) at the mine, from Longwall 1 to 14. By examining the take-off monitoring data collected over the life of the mine, the key geotechnical issues are demonstrated, including their relationship to the ground behavior experienced and the issues overcome.

Jan 1, 2011

By S. F. Smith

Following a roof beam collapse on a major production district at the British Steel Corporation's Dragonby Iron Ore Mine, Scunthorpe, South Humberside, UK, rock mechanics investigations were undertaken in this room and pillar operation to assess the stability of workings throughout all the underground mine area. Over a four year period room convergence and roof sag were monitored in different mining areas and various junction configurations in order to assess and compare the relative movement of the strata resulting from mining activities, where varying rock bolt lengths and patterns have been utilised. The paper, after shortly describing geological aspects and mining methods, presents the research procedure adopted together with the instrumentation employed and discusses the results obtained during these investigations.

Jan 1, 1995

By Fernando O. L. Xavier

"The Barro Branco coal mine was located in the southern region of Brazil, in the state of Santa Catarina. In 2002, an incident occurred at the mine, leading to a violent, massive pillar failure, resulting in almost 100 failed pillars in less than 3 hours, totaling nearly 700 collapsed pillars after a period of 6 weeks. The paper outlines the geological and operational conditions before the accident and analyzes the primary factors leading up to the event. This paper also discusses and examines the unusual characteristic of violent, uncontrolled pillar bursts that occur over a longer timespan, in comparison to other equally violent but rapid events, such as those that occurred at the Crandall Canyon Mine, at a Book Cliffs District mine, and at the Solvay Mine. INTRODUCTION The southern region of Brazil holds 100% of the coal reserves for the country, and half of it is located within the state of Santa Catarina. Almost the entire Brazil’s coal production, around 8 million tonnes/year, is consumed for electricity generation. Most of the coal mines in Santa Catarina are underground room-and-pillar mines, and most are shallow mines, with depths of cover ranging from 20 to 400 m. The Barro Branco mine, near the city of Criciuma, experienced a violent mine collapse at the end of March 2003, which was analyzed and discussed by Zingano, Koppe, and Costa (2004). The event consisted of violent failure of 100 pillars in less than 3 hours, and a subsequent failure of approximately 700 additional pillars over the next 6 weeks. After the panel collapsed, the mine was closed due to unsafe conditions as a consequence of the seismic event. A map of the collapsed area is shown in Figure 1. GEOLOGY AND MINING METHOD There are two coal seams mined at Barro Branco mine. The first is the 1.5 m to 2.3 m thick Barro Branco Seam, under about 75 m of cover. The second is the Bonito Seam, where the collapse occurred. The Bonito Seam is 2.5 to 5.5 m thick located at a depth of approximately 80 m, with an average dip of 0° to 15°. Various major faults and inherent joints are present in the area."

Jan 1, 2017

By Mark A. Krall

The Conda Partnership's Dry Valley Phosphate mine is a thinly bedded, multiple seam, open pit mining operation where selective mining techniques are used to recover phosphatic shales. The mining methods used are truck/shovel and scraper/ dozer operations. The ore that is mined is shipped 32 km (20 miles) by rail to a beneficiation facility which upgrades the ore via washing and calcining. The mine and beneficiation complexes are owned by the Conda Partnership. The Conda Partnership is a joint venture between Beker Industries Corp. of Greenwich, Connecticut, and Western Co-Operative Fertilizers (U.S.) Inc. of Alberta, Canada. The Conda Partnership operates as a separate entity from the two partners.

Jan 1, 1984

By Chris T. Franke

The Waste Isolation Pilot Plant is a deep underground facility mined in bedded salt interspersed with persistent clay inter- beds. The clay seams delineate beams of salt above and below the excavations which strongly influence excavation performance. This paper reviews available rock mechanics information relevant to improving drift stability by removing the roof beam. Conceptual deformation mechanisms, relevant field data, and numerical analyses were used to investigate the effects of mining the roof of the excavations along a clay seam. Finally, a case study that applies the results of this investigation is presented.

Jan 1, 1997

By R. Hart

In this paper, problems that have been experienced with the rockpass system at Kloof Mine No. 3 Shaft are described. Actions that have been taken to overcome the problems are also described. These include the use of slugshots to remove hang-ups, the abandonment and waste filling of passes, and design criteria adopted for an alternative pass system.

Jan 1, 2006

By Jérôme Girard, Shiu Kam, Sue Longo

"Historically, tailings management in a northern climate has involved the deposition of tailings into the Tailings Management Area (TMA) as conventional slurry. This type of system is obviously viable but presents challenges that are difficult to manage as circumstances change over the life of mine. These issues can include:? Increases in mill throughput, and? Life of the TMA for the life of mine.This case study will present how thickened, high-density, non-segregating tailings are used as an alternative to conventional slurry disposal to achieve greater storage capacity and enhanced environmental performance for a gold tailings facility in a northern climate. This paper will focus on how this change in deposition strategy accommodated the increased throughput of the mill and the increased life of mine. Specifically, the paper will discuss the addition and integration of new processes to the exiting mill system to accommodate the tailings management issues. It will highlight the challenges from laboratory testing to pre-feasibility to the engineered design of the thickened tailings system implemented at Musselwhite Mine.BACKGROUNDGoldcorp Canada’s Musselwhite Mine, in Northwestern Ontario (120 km north of Pickle Lake), is an underground gold mining operation that began production in 1997. The current mill throughput is about 4000 tpd (1.4 Mtpa). Gold extraction is based on a CIP process with cyanide destruction.The existing tailings management area (TMA) is located about 2 km southwest of the mill complex. The TMA is contained by high ground to the north and to the west and flanged by a moraine ridge along the south side. A number of dams have been constructed along this ridge. The dams were first built in 1996 and subsequently raised in 2000 and again in 2005. Excess tailings pond water is discharged to a polishing pond then released to the environment via a wetland.The TMA was originally designed to contain 13.7 Mt of tailings under a ponded surface for closure. The water cover was to inhibit adverse long-term environmental effects because the tailings contain pyrrhotite and other sulphide-bearing minerals that are potentially acid generating. The design was modified during Stage 3 Construction in 2005 to expand the storage capacity to 17.3 Mt (Golder, 2005). As of end of 2009, over 16 Mt of tailings had been deposited in the TMA. The slurried tailings were historically deposited at 50% solids."

Jan 1, 2011

By Chris A. Bennett, Glenn S. Dobby, David A. Bulled

Establishing reagent dosing strategies for new ore bodies has traditionally involved a combination of experience and empirical experimentation using standard laboratory tests. The grade and recovery data resulting from these lab tests have historically been used as direct indicators of plant performance despite the obvious differences between the flotation environments. A reagent scheme selected in this way would subsequently be employed to generate the grade and recovery information for the geometallurgical model which in turn was used for metal production and cash flow forecasts. If the reagent scheme was sub-optimal then so too would be the forecasts and the resulting cash flow.

Jan 1, 2003

By W. Standifird

"Cohesive fracture is a mechanical model widely used for modeling quasi-brittle fracture in rocklike materials. This work discusses use of this model to simulate quasi-brittle fractures generated by injection stimulation during the process of cuttings reinjection in West Africa. Cuttings reinjection is an engineering practice used for disposal of drilling waste. During this process, hydraulic fractures are created at the target formation and milled cuttings are injected with fluid. In practice, this process must remain in compliance with environmental regulations and zero-discharge policies. The purpose of this study is to determine the following factors of injection design for a field in West Africa: (1) pumping pressure capacity required to successfully perform the injection and (2) the injection rate for injection performance and the value of fracture width under injection.A simplified three-dimensional (3D) finite element model (FEM) was built. A poroelastic plastic damage model was used for simulation of the cohesive crack prorogation within the target formation. For simplicity, fracture development in both horizontal and vertical directions was simulated separately. In this way, the computational burden for one calculation was reduced to a reasonably low level, without losing accuracy of the model. Loads of the model include fluid injection and gravity, which balances the initial geostress field. Various values of injection rate were used in these calculations to determine the most reasonable value of injection pressure. The capacity of pressure of a pumping device was determined using this optimized value of injection pressure.Results in values of width and length of fractures created by the injection are presented. Injection pressures at bottom-hole (BHP) corresponding to each value of injection rate are also given. Numerical results for fracture generation and propagation in a horizontal direction were visualized. The pumping pressure capacity required to fulfill the cuttings reinjection work was determined based on the numerical results of optimized injection rates and pressure. The fracture width was determined using the given pumping pressure. The length and height of the fractures was determined using pumping pressure along with the required volume of cuttings waste to be disposed of into the formation.This work presents a case study of 3D finite element modeling of hydraulic fracturing generated by cuttings reinjection. The results of the optimized injection rate and pressure provide a best practice and a useful reference for cuttings reinjection analyses in this region."

Jan 1, 2015

By John Newby, Mahmood Khwaja, Bernard Theron, Janice McGovern, Bernard Catalano, Michael S. Schultz

Launching a full-size pressurized-face Tunnel Boring Machine (TBM) in difficult ground conditions is always challenging. Recently, few projects have innovated the process by scaling the trenchless method of pipe jacking, and modified steel bell approach, to facilitate the launching of a full-size TBM without the need for large and deep trenches, starter/tail tunnels, or for incrementally installing supporting gear as the machine advances. This paper presents three such projects; evaluates the post-bid contractor proposed modifications; details the innovative use of pre-cast pipe segments to facilitate machine launch; and, provides an overall assessment of the benefits, challenges and lessons learned related to the modified approach.

Jun 13, 2021

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for the expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated ?risk? via the discount rate and other assumption contingencies around gold price expectations, operating parameters etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Carbon Modelling Technology and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. 44 percent chance of project finance loss.

Jan 1, 2012

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for an expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated 'risk' via the discount rate and other assumption contingencies around gold price expectations, operating parameters, etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Cyest Carbon Modelling Technology platform, and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. a 44 percent chance of project finance loss.

Jan 1, 2013

By John Mastoris, Kostis Dragasakis, Kostas Kouklidis, Shkurtë Gashi, Halil Berisha, Jenuz Bulica

Titan Group’s environmental policy and Sharrcem’s Corporate Social Responsibility (CSR) are the driving forces behind the development and implementation of a comprehensive Rehabilitation Plan at Dimce Quarry, which is the main raw material source for Sharrcem Cement Plant since the 1970’s, located in the municipality of Hani i Elezit in Kosovo. Based on an Environmental Impact Assessment Study and the approved Mining Plan and also on the principles prescribed in the Guidelines on Quarry Rehabilitation, released by the Cement Sustainability Initiative of the World Business Council for Sustainable Development (WBCSD-CSI), Sharrcem has adopted a quarry operation and rehabilitation process in line with the best practices in the mining and cement sector. This paper discusses the background for the development of the rehabilitation plan and the results of rehabilitation activities, as have been implemented over the last few years. The main objective of the progressive rehabilitation plan at Dimce Quarry is to restore the depleted pit and return it back to the original land owners for resettlement. To date approx. 3,4Ha of former mining area has been restored by backfilling and levelling of the depleted closed pit and returned back to owners, who have built their houses and turned it into a living area again. This Quarry has turned out to be a real composition and practical example of preserving and returning back the natural resources in a state compatible with the surrounding environment and with respect to the needs of the local stakeholders. The motivation for business to engage in rehabilitation activities in the first place lies in the belief that the development and implementation of a progressive and practical Quarry rehabilitation plan and restitution of the land will deliver significant environmental and social benefits that outweigh the long-term rehabilitation costs, while maintaining the company’s reputation.

Jan 1, 2017