Search Documents

Metallurgical accounting can be defined as the monitoring of the valuable metals from the time the ore is broken at the primary crusher until the time that we have the saleable products and residues. The overall purpose of metallurgical accounting is to provide management with up-to-date inform- ation that can be used to control mining and metallurgical oper- ations. The decisions that are taken on the basis of the information that the metall- urgical accounting system provides should result in improved control and, ultimately, increased revenue. The current state of accounting is a result of an extended evolutionary process and will continue as process plants bec- ome more sophisticated. Differences in mine æcall factorsÆ and grade control reconciliation can lead to frustration between the siteÆs geoscie- ntists and its metallurgists leading to a level of distrust in the mill grade. Metallurgical accounting is not included in sufficient detail in undergraduate courses and the acceptable industry standards have developed based on what is considered acceptable to industry personnel and consultants. There is now the AMIRA P754 Metal Accounting, Code of Practice and Guidelines Handbook or reference manual. Computer based databases and spreadsheets have transformed tedious bookkeeping into an important management tool. Over time these standards have improved with developments in analytical procedures, weighing technology and sampling. This paper provides anecdotal examples of problems and improvements observed over a number of years within the gold industry in Australia and overseas.

Jan 1, 2009

By Kane, M O&apos

The mineralised members of the Brockman Iron Formation mined at Mt Whaleback are overlain and underlain by shale horizons. To maximise resource recovery, waste movement within the life of mine plan will total approximately 3.3 billion tonnes. Approximately 15 per cent of waste materials contain zones with varying amounts of sulfides and carbon and are referred to as æreactive shaleÆ. Reactive shale has the potential to self-heat and can react with some explosives, resulting in spontaneous explosion. Sulfide rich zones also have the potential to generate acid rock drainage (ARD). Successful mining of reactive shale requires constant co-ordination between the geology, mine planning, mining and environment departments. Safe storage of reactive shale is the focus of ongoing research. Since the mid-1990s, a number of trials have been undertaken at Mt Whaleback in order to further the understanding of the physical and chemical properties of reactive shale. This paper summarises some of these trials, and discusses key learnings arising from interpretation of results. Ultimately, the learnings from this research will provide the guidelines for successful storage of reactive shale.

Jan 1, 2003

By W Pytel

A special model of vertically loaded pillar behaviour is introduced to the general, multi-plate based, floor-pillar-roof system interaction analogue. This permitted analysing room-and-pillar mine systems in any geological conditions, including the effect of pillar elastic-plastic behaviour with strain softening. In the model, pillar instability is one of the important phenomenon, which may be expected to occur, and which the operator has to be prepared for. Thus the entire systemÆs safety is determined mainly by strong roof strata behaviour and therefore they have to be examined in actual stress-strain conditions utilising the appropriate strength theories. It was assumed that the so-called safety margin, representing the relation between load intensity and material strength, might serve as the basic indicator of possible roof instability development. Therefore, the safety margin may be estimated by comparing the actually computed components of stress-strain tensor with ultimate values characteristic for a given material determined in laboratory. In order to illustrate the effect of technological pillar size on roof strata stability, two different mining systems (methods of mining) in one of the æPolkowice-SieroszowiceÆ Mine districts was modelled using the finite element method formulated in three dimensions, assuming different materials within different rock mass strata, as well as a number of horizontal planes of discontinuity within the model.

Jan 1, 2003

Early in 1930 William S. Robinson, Managing Director of Zinc Corporation Ltd., anticipated a rise in the price of gold and a devaluation of the Australian currency. 'WS', as Robinson was known, formed a.syndicate in London, which later became incor- porated as Gold Mines of Australia Limited (GMA) to invest in gold mining properties in Australia. GMA examined many prospects and subsequently undertook the development of several mines in eastern Australia. The syndicate also held a number of options and several large reservations for gold exploration in Western Australia over which it was proposed to carry out an aerial survey and thorough scien- tific assessment. To do this Western Mining Corporation Limited (WMC) was incorporated in Melbourne on the 2nd March 1933. The founding chairman of WMC and GMA was the highly respected `Collins House' figure, Sir Colin Fraser. The aerial survey was carried out, and a group of eminent geol- ogists from Harvard University examined many prospects and identified several which warranted development. To finance these activities `WS' formed Gold Exploration and Finance Co. of Aus- tralia Ltd. (GEFCA), in London in July 1934. GEFCA ultimately held 95% of WMC and 62% of GMA. The finance came mostly from London based South African mining companies which had been subscribers to his earlier syndicate plus some American inves- tors. (The Group Structure in 1936 is shown in Appendix `B").

Jan 1, 1988

Mining projects draw together stakeholders with various degrees of experience in managing and assessing financial risk. When this risk is not fully appreciated or quantified, the potential for making decisions not suited to investor requirements is significantly increased. A feasibility study provides key information on project development potential, requiring detailed technical investigations with thorough financial analysis. Centaur Mining and Exploration (CME) owned and operated Cawse Nickel Operations (CNO), one of three Australian projects to develop and process vast amounts of near surface nickel resources. A technical ædue-diligenceÆ and æbankable feasibility studyÆ confirmed the large resource base, newly applied yet tested technology and relatively low unit costs would produce nickel in the lower half of industry operating costs. A number of production variables including capital requirements, delayed start-up, nickel grade, processing, maintenance and product output were outside the feasibility estimate. This was combined with exchange rate fluctuations and lower Ni prices. The inability to generate adequate cash flow and service debt repayments ultimately led to receivership and liquidation of all assets. Following the sale of CentaurÆs gold and nickel divisions, $A 784 million remained outstanding to creditors. This paper aims to define key issues leading to CNOÆs collapse by reviewing feasibility parameters, valuation methodology and project development. Some methods of assessing project viability are discussed with the aim of increasing stakeholder risk awareness.

Jan 1, 2003

By R Willis, D Cooke, G J. Davidson

Mine-groundwater interaction at the Pasminco Rosebery Mine (PRM), western Tasmania, deserves special attention due to the unique climate and mining environment present. High rainfall and low evapotranspiration result in an excess of water, an uncommon problem at Australian sulfide bearing mines. Research is being undertaken to delineate current subsurface fluid flows and predict future fluid flows in order to improve management after mine closure. Acid mine drainage generation is well developed in abandoned mines throughout the area. If acid mine drainage is not controlled after mine closure, significant environmental degradation could occur in the receiving waters of the Pieman River system. The study area encompasses the heavily forested Mount Black, and underlying PRM workings. Groundwater flows beneath Mount Black through a crystalline fractured rock aquifer with faults and underground mine workings observed to act as the major hydraulic conduits. Recharge is controlled by local precipitation, and the ultimate discharge is thought to be the Pieman River system, which forms the topographic low in the area. Slug tests have been used in conjunction with the mineÆs extensive geotechnical database to spatially evaluate variation in hydraulic conductivity. In fractured rock terrain associated with mining, rock quality designation data can be a useful tool in delineating areas of similar hydraulic conductivity when combined with conventional hydrogeological methods. A GIS, mine planning software, an environmental and a geological database are linked to form the input for groundwater modelling.

Jan 1, 2003

By M Castle, D Mendelawitz

The Marra Mamba iron ore in FortescueÆs Chichester Range project area occurs as a very flat dipping series of waste shale and iron ore beddings. These beddings vary from millimetre thickness to several metres. The ore material generally exhibits a moderate degree of competence when subjected to ultimate compressive strength (UCS) tests, normally failing at up to 60 Mpa. However, the strength of the beddings is markedly less when subjected to the tensile forces imposed by the cutting action of the surface miner. Two surface miners of differing age and sizes were tested over a period of almost three months. These machines produced a product that had not been subjected to dilution by blasting and of such a size that primary crushing is not required. The machines were able to cut all ferrous material presented to them with varying degrees of success. Material containing higher quantities of manganese were broken but caused catastrophic wearing of the picks. During the trial the volume of material produced by the two machines in various strength materials very closely matched the manufacturerÆs estimates. The major impact on costs per tonne related to the wear on bits, which in turn varied with the bit design and composition. Bit design and composition testing is continuing.

Jan 1, 2007

(Quality can be defined as that which is acceptable to the market and can be supplied with a predictable degree of uniformity and dependability at a low cost. The market for any mining product is downstream processing, whether it be an alumina refinery, a gold processing plant or a flotation plant. The cost of that downstream process is partly dependent on uniformity of its feed material both in physical and chemical terms. With more operations adopting procedures which require quality assurances in line with International Standards, from their raw material suppliers, miners must look to their grade control processes to provide uniformity and predicability.This is not a new concept. The mining industry has constantly been working with ahighly variable raw material supplied by Mother Nature, from whom we cannot demand quality assurances. Through the processes of exploration, resource and reserve definition, long and short term mine planning and day to day grade control an end product has been supplied which consistently meets our customers requirements, in an economic fashion. When any of these processes fail, then penalties are incurred which can range from increased mineral processing costs to loss of markets and in the ultimate case, failure of a mining operation.

Jan 1, 1992

As an Inspector of Mines in Queensland, my main responsibilities include the enforcement of the Mining Act 1968 - 1986, the Mines Regulation Act 1964 - 1983 and the Metalliferous Mining regulations 1985 to promote the safe and responsible exploitation of the States' mineral wealth. An important adjunct to this task is the offering of an advisory service to the mining industry. However, in the pursuit of my duties to this regard, I have sadly observed in some cases, numerous wrong doings and negative activities by miners which have led to their ultimate demise, not to mention that of others. Despite what I consider corrective advice, I have witnessed, again in some cases, disregard and blind pursuit for the wrong end. This then is a novel approach to get the message home in the form of a light hearted cartoon presentation relating the saga of an average Aussie battler entering the mining game unprepared, making the wrong decisions due to his own ignorance and the cleverness of others, leading finally to his and possibly others' downfall. It is not intended to insult any particular profession or group of individuals and only endeavours to impart to readers and listeners, the message of being prepared and alert when entering the gold mining industry. Even though the presentation focuses on the woes of a rookie alluvial gold miner, a similar analogy could be drawn with his hard rock counterpart since the basic issues that I have attempted to address are common. By no means is there a saga complete because there are many more traps a miner can inadvertently fall into and only time has prevented me from referencing them.

Jan 1, 1989

In a previous paper in these Proceedings(l) it was shown from a study of the bore'logs and analyses then available, that the brown coal seams of the Latrobe Valley areas show progressive changes in composition with increase of stratigraphic depth, equivalent to a rise in rank: These changes appear as:(i) An increase in ultimate carbon and hydrogen, calculated on a dry, ash-free basis, and(ii) An increase in calorific value, calculated on the, same basis, each of the order of 1% per 100 ft. of depth, and(iii) A decrease in moisture content of the order of 0.5% to 1.0% per 100 ft. of depth. The decrease in moisture content was found to be less regular than the other changes. In some bores the moisture content remained more or less constant throughout a single seam, or fluctuated slightly, decreasing stepwise on passage to the seam below.It was noted that individual analyses within a bore showed irregular fluctuations, tending to mask the general trend in composition change. This was particularly so for the moisture content, which had been determined for 10 ft. lengths of core, whereas the other components were determined for 50 ft. lengths of core. Averaging of the moisture contents over 50 ft. lengths reduced the masking effects of these irregularities. The suggestion was made that these irregularities arose from variations in the relative proportions of pollen, resin, wood (lignite) and woody attritus composing the core. Such variation in the coal seams has since been established in some detail for the...

Jan 1, 1948

By K McNabb, M H. Turner, P A. Jenkin

Mining of the Agnew nickel deposit commenced in 1970 using a variety of underground mining methods, though with mixed success due to the difficult ground conditions. WMC Resources Ltd acquired the operation in 1989, and commenced nickel production with an open pit. In 1995 all production reverted to the rejuvenated underground mine, using exclusively SLC (sublevel caving) methods. Currently the mine produces 1.4 Mt per annum, at an average grade of 1.74 per cent Ni. Underground mining of the Perseverance orebody has always presented significant challenges due to the difficult ground conditions in the weak and altered ultramafic rocks. The range of problems include areas of swelling minerals, intense and extremely weak shear zones, relatively high in situ stress, and in other areas very brittle rocks. Under these conditions rock mechanics input has been and remains a critical element of the mining strategy. Severe ground behaviour difficulties down to a depth of 500 m below surface prompted a review of the mining strategy for the large disseminated nickel orebody, including evaluation of alternative mining methods. However, sublevel caving was ultimately selected as the preferred method, and a re-design of the SLC cross-cut layout followed. A selection of rock mechanics investigations of interest are described, including complex virgin stress measurements, detailed ground behaviour monitoring, and the use of non-linear stress analyses to re-design the mine layout. Subsequent ground behaviour, support design and production scheduling are also described.

Jan 1, 2000

By I Gipps

The mining industry has come through a period of major change in community expectations regarding safety and environmental impact and these changes can be expected to continue in the future. These changes are ultimately reflected in Government regulations and industry safety standards and form the basis of the ælicense to operateÆ. Equally, advances in technology have made possible new equipment and processes either available now, or close to completion, that will allow mines to meet these more stringent expectations if properly introduced. Changes in technology provide opportunities for mine management to introduce new systems that will remove people from hazardous areas and lead to improvements in the ætriple bottom lineÆ. In a longer time frame of five to ten years, novel and advanced technologies that are currently being developed will deliver new mining methods and conversion of presently uneconomic resources to ore. This is consistent with the time frame required to develop a new mine from discovery. Strategic decisions can be taken now by mine designers to enable the introduction of these major technology changes. Examples of both practical and strategic opportunities are drawn from the integration of rock cutting/blasting, automation, electronic communications and new mining methods. This paper discusses emerging industry trends, changes to legislative framework and some practical choices for existing and imminent technology.

Jan 1, 2003

Accident prevention in industry is a task as important to the ultimate result of an undertaking as efficient machines, good tools or trained operatives. In fact, like many qther phases of industry today, "Accident Prevention" or "Safety Organisation" has developed in this century, to a degree that is now acknowledged as an integral part of industrial thought and planning. This has not always been the case, as the following snap-shot picture of the past illustrates.The Broken Hill Proprietary Company recently celebrated at Whyalla the Jubilee of the opening of the Iron Knob Tramway. On that occasion a dinner was tendered to the pioneers, and in talking to the Writer of the early days one of the old gentlemen present could not refrain from recounting some of the accidents he had seen or experienced.Several such incidents were recounted at length, after each, the old fellow would say, "An' there weren't no safety officers or compensation in them days".The Broken Hill Proprietary Company Limited was a pioneer of safety in Australian industry and considerable success has followed its activity in this connection; the accident rate of the steel industry now compares satisfactorily with that of any other industrial undertaking. A measure of 'the success of the safety organisation, is, that in recent years, despite extensive construction programmes at various centres, and despite a heavy labour turnover, a decreasing accident rate has been maintained. This success, in the Writer's opinion, arises from the fact that by its early attention to plant protection, the introduction of safety standards and further through the interest and energy of departmental superintendents and foremen, the...

Jan 1, 1951

By J S. Moema, R Paton, J Zimba

Today, most organisations are familiar with the pressure to increase their effectiveness and efficiency, regardless of the nature of their business. Cost cutting and increased productivity are the main themes of many initiatives to ensure the profitability of operations and, ultimately, shareholder satisfaction. It is well known that the cost of comminution to liberate minerals such as gold from their respective ores is a major expense for mines. Comminution costs consist predominantly of grinding balls and electricity. However, there are no national or international standard specifications for grinding balls û on which a single mine may spend several million dollars per month. In addition, in the past mines generally did not specify the minimum requirements when purchasing grinding balls from suppliers. The result is that every supplier has its own grinding ball recipe (regarding chemistry and heat treatment), and is under no pressure to implement a quality assurance plan to ensure that a consistent product is delivered. The resulting variation in the quality of grinding balls leads to increased steel consumption rates and hence increased milling costs. A more stringent quality plan will generally not be welcomed by suppliers since this may entail further investments and/or reduce the production rate. In a sense, suppliers benefit from poor quality grinding balls as this leads to increased sales. Perhaps the main problem is a lack of understanding of the factors that influence grinding ball performance. This paper will describe the factors that influence the wear rate of grinding balls from both a microstructural perspective and a mill perspective. In addition, some insights are provided on the different grinding balls available and ways that users can verify their quality.

Jan 1, 2007

A co-operative research project, combining Commonwealth Scientific and Industrial Research Organisation (CSIRO) research scientists findings and company iron ore geologists' expertise, resulted in new concepts about the origins, distribution and complexitie of iron ores and their parent rocks (banded iron-formation or BIF) in the Hamersley Iron Province of Western Australia. Understanding these problems was important to the efficiency of exploration, development and ultimate mining of iron ores. This genetic model, based on a detailed mineralogic background, was modified by Mt Newman geologists to obtain a user oriented classification for practical application in the field.The proposed Pilbara Iron Ore Classification (PIOC) gives iron ore geologists a basis from which to understand, identify and record the various mineralogic and physical characteristics of the many genetically different ore types occurring within and between orebodies in the Pilbara. More definitive quality control over ore products can be achieved based on the detailed understanding of ore types which the PIOC allows, compared to current classifications which deal only with the physical nature of ores. Of equal importance, the classification remains sufficiently simple to enable owners, operators and buyers to achieve a basic appreciation of ore type variations.With little modification, it is believed the classification has applications beyond the Pilbara, to iron ore worldwide.

Jan 1, 1984

By R W. Wilson, A R. Branch

For hot mines, the use of mechanical refrigeration machines has become an essential feature of ventilation and cooling systems. Over the last 30 years, considerable effort has been made in developing refrigeration strategies and equipment to provide cooling that is cost-effective, reliable and energy efficient. In addition to these general design requirements it is necessary to take into account project specific factors such as long term mine cooling needs, operating strategy and installation time. This paper examines a number of actual mine cooling installations which illustrate how these features have influenced the design and installations. For many mines, it is known how the cooling requirements will increase as the mine develops, based on the life of mine plan. The design of the cooling installation must cater for both short- and long-term needs. The initial installation (to meet short-term requirements) must form an integral part of the ultimate cooling installation and as additional equipment and refrigeration machines are installed, it is necessary to ensure that the system remains cost-effective, reliable and energy efficient at all stages. For many mines, refrigeration machines are installed on surface and either operated near-continuously, or for the summer months only. Different maintenance strategies and policies with regard to standby equipment are highlighted for three mine installations. In spite of developments in cooling strategy, the cost of providing refrigeration remains expensive and many mines delay the introduction of refrigeration, as long as possible. When it is finally accepted that refrigeration is absolutely necessary, it is frequently necessary to æfast trackÆ the installation. To minimise site erection time and meet installation deadlines, factory pre-assembly and standardised modular equipment are widely used.

Jan 1, 2005

An investigation was performed to determine the sequence of events which caused the 1987 surface subsidence and related damage to several homes in Walker County, Alabama, USA (see Figure 1). Surface affects compared to mine maps indicated the subsidence to be mine related. However, two coal seams had been worked under this area. The upper seam, the American seam ranged from 250 to 280 feet beneath the surface in the area in question. It was mined-out before 1955 by room-and-pillar method leaving in place narrow-long pillars to support the overburden strata, and abandoned in 1955. The lower seam, the Mary Lee seam, ranged from 650 to 700 feet beneath the surface. The Mary Lee seam had been abandoned in 1966 and subsequently became flooded. The dewatering of the Mary Lee seam workings in 1986 caused the submerged pillars to be exposed to the atmosphere. Due to multiple seam mining and the fact that workings had been inundated then dewatered, a subsurface investigation ensued to determine the sequence and ultimate cause of surface subsidence. Core sample tests with fracture analysis in conjunction with "down-the-hole" TV camera inspections provided necessary information to determine that the subsidence started in the lower seam and progressed through the upper coal seam to the surface. Evidence from the investigation program established that dewatering of the lower seam workings caused the marginally stable support pillars and the roof to collapse. This failure triggered additional subsidence in the upper seam which broadened the area of the influence at the surface.

Jan 1, 1992

With the post-war expansion of mmmg activities on its Western group of mines, the management of Lake View and Star Limited has commenced a project for the improvement of underground ventilation.The major part of this project is to provide adequate return airways for the ventilation of the deep levels. To this end, the Ivanhoe South Extended shaft is being enlarged, and ultimately an exhaust fan with a capacity of 180,000 cu. ft. of air per minute will be installed at the shaft collar.Prior to 1932, the shaft was used exclusively for baling water from the 800 and 2,000 ft. levels. These two levels are the only ones connected to workings from the Horseshoe lease. After the installation of pumping plant at the Horseshoe Main Shaft, baling was discontinued, and the water was graVitated from dams to the pumps on the 1,000 and 2,000 ft. levels.Water makes into the shaft, through a series of fault planes, between the 600 and 1,500 ft. horizons. The total flow is 16 gal. per minute, of which approximately 7 gal. per minute graVitates to the 800 ft. level. As a big proportion of the water dropped uncontrolled through the shaft, a downcast current of air approximating 20,000 c.f.m. was induced. This air ventilated a limited area of workings in the Horseshoe lease, between the 2,000 and 2,360 ft. levels.In 1938, it was decided to reverse the direction of the airflow in the shaft. Work was carried out to pipe the...

Jan 1, 1948

The development of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves is a significan step towards informing the financial community and the public about the future profitability and risks of investing in resource companies. The Code is also important from the accountants' point of view because it provides them with a well-defined bash for assigning costs or attributing value to the assets of resource companies and hence improving their financial reports. Although reporting to the public is ultimately the responsibility of management, accountants, like geologists, are frequently required to provide information for inclusion in these reports. Jr the last ten years, there has been a considerable refinement in the reporting of mineral resources which can be attributed mainly tc the progress made towards developing the Code. It seems tha the classification and terminology that the geologists have developed are widely used in the annual reports. However, little progress has been made by accountants in improving the financia information. The purpose of this paper is twofold: (a) to outline briefl) some of the major problems in accounting and reporting fo; mining companies and; (b) to examine the potential contribution of the Code in solving those problems.

Jan 1, 1990

By E Ahern

In exchange for issuing minerals rights from the Crown Mineral Estate to explorers and miners, the Crown expects a æfair returnÆ on this investment, ultimately for the benefit of all New Zealanders. In the case of mining permits, this return is in the form of a tangible asset û royalties from mining activities. But for exploration activity, the return sought by the Crown is an intangible asset û information. The information obtained serves three purposes û in helping Crown Minerals to set work programme conditions during permit allocation, for monitoring the performance of permit holders in accordance with permit conditions, and for archiving and making available for future interested explorers and other parties. Difficulties can arise during the allocation and monitoring process when either party has more information than the other that is not shared. To date not enough emphasis has been placed on the intrinsic value and content of the information generated by explorers and the importance this information can have in the exploration process leading to new mineral discoveries. For attracting exploration investment, the quality and availability of such information, combined with other geoscientific data, is a fundamental determinant for potential explorers when choosing to explore in a global market, and strongly defines the mineral prospectivity for a country. This is something the Australian States and other jurisdictions seeking mineral investment learnt long ago, and who now provide substantial amounts of cheaply or freely available packaged geoscientific datasets, increasingly over the Internet. To have a vibrant mineral exploration industry so that the benefits from the mineral estate can be realised for all New Zealanders, a shift in emphasis to the value of its mineral information base itself is required. Such an approach is befitting of a true Knowledge Economy, and would enable the Crown to make better-informed decisions regarding utilisation of its natural resources.

Jan 1, 2002