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Production scheduling of open pit mining is a key area as it deals with the management of operating cash flows of mining companies. The efficiency of long-term schedules is usually assessed with economic criteria such as net present value (NPV), discounted cash flow rate of return (DCFROR) and payback period, which are not sufficient on their own for revealing the complex picture of the decision-making process.This paper offers a thorough analysis of the most important contemporary criteria of long-term production scheduling, as way to provide the mining practice with a new approach to the decision-making process. The list of criteria includes technological, economic and probabilistic ones. A detailed case study is provided aiming to illustrate the applicability of the criteria for comparing the scheduling approaches regarding the economic interests of a mineÆs owner and contractor. The results obtained can be used for revealing new trends in the current methodology of open-pit production scheduling optimisations.

Sep 26, 2011

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011

By A Melkumyan, F Ramos

This paper addresses the problem of prediction of grade variables over volumes (block estimation) for an autonomous mine. Resource estimation is usually concerned with the prediction of the quality of material over volumes (blocks in resource models). This problem is tackled by developing Bayesian block estimation with the Gaussian processes (GPs) framework. GPs are commonly used for nonparametric regression and classification and offer an elegant solution to deal with incomplete knowledge and information. A GP is defined by its mean and covariance function. The parameters of the covariance function can be learnt by maximising the marginal likelihood of the data. This offers a way of automating the covariance fitting process, while at the same time allowing for an assessment of how well the covariance function fits the data. Within the GP framework the calculation of the average grade over a volume can be performed using Bayesian quadrature, which treats an integral as a random variable. First, it is demonstrated that the block kriging equations in geostatistics are the same as Bayesian quadrature. Then, it is determined when closed form analytical solutions for the integrals are possible and quadrature approaches for approximations are briefly discussed.

Sep 26, 2011

By J Yamatomi, Y Tamanishi, S Miwa

The four-dimensional (4D) network relaxation method, originally developed by Akaike in 1999, uses Lagrange relaxation and is known for its ability to include the price change and possible better outputs, but the computation time is huge. However, the continuous advancement in computer technologies allows the use of higher-speed computers with more memory capacity. Therefore, in this paper the authors have tried to implement the method with adjustments and improvements in its algorithm to suit the current computing system. As a result, the computation time has been drastically reduced and more constraints can be included, which makes the scheduling a more realistic one. The case study of an open pit gold mine with 129 500 blocks can be solved considering the capacity constraints in 71 seconds. In previous case studies, the mined ore had to be processed or disposed of immediately. Now, stockpiling can be included as another option. Since the details of the algorithm are still being improved, the computation time is a little longer than the previous cases without the stockpiling option. However, it is found that scheduling with the stockpiling option is possible in a reasonable time. In conclusion, the 4D network relaxation method has become more useful with advances in computer technologies and provides better results.

Sep 26, 2011

Visual computing opens the design process to a wider audience and allows rapid communication of mine plans to all stakeholders. The integration of software and hardware technologies that take advantage of a graphical environment will continue to improve both long-term and short-term mine design (Figure 1). A good design must be adaptive to respond to decision changes as the mine develops and more information becomes available. The constraints on mine design predicate careful analysis in order to operate the mine as efficiently and safely as possible.Continuous improvement in mining is assured by developing innovative technologies that target mine survey, drill and blast, modelling, short-term design and pit and stope optimisers. The design life of a mine has to be sufficiently long to ensure the mine is commercially successful, justifying the high start-up capital costs. Being able to execute a plan so that it honours the design realises the rewards of computerised mine planning and the long-term investment in data acquisition.

Sep 26, 2011

By E Rubio, N Morales

A common practice in the mining industry is to decompose the planning process into different tasks, so the overall process and specific schedules can be constructed easily. Nevertheless, currently there are some adverse effects, such as not capturing the real value of a project by not taking into account the construction of several underground drifts and general infrastructure. Then the common practice is to compute mining sequence and cut-off grade profiles over the life of the mine without constitutively integrating the development schedule as a means to measure the constructability of a given mine design and sequence. Thus, the investigation summarised in this paper shows a novel, integrative way of treating an underground mine sequence and production schedule while considering drift development scheduling. Moreover, it is thought that, because of this original model, the whole underground production scheduling exercise must concentrate on combining the development and the production scheduling to compute a robust and a feasible production schedule.In order to quantify the effect of the conventional way of viewing the planning, the concept of the building information model (BIM) needs to be used, which was postulated by Charles Eastman and has been used extensively since the late 1970s. BIM takes other aspects of a project into account, considering at the same time the spatial relationships, quantities and properties of building components, but especially some kind of model visualisation, which is the advantage to be incorporated. This paper presents the basis for an optimisation model that allows for defining the sequence of the mining development so that the production plan can be achieved. For this, the model considers the space dimensions, time, pattern or strategy, cost or benefit, precedence and resources available. Tests were performed considering a block caving and sublevel open stoping method. Finally these tests showed the main conclusion, that production sequence changes when the building capacity is considered.

Sep 26, 2011

By B Tutmez

Determination of stress-strain behaviour of rocks plays a crucial role in understanding the response of rocks during loading. However, it is a tedious, expensive and a time-consuming process to obtain such characteristics both in the laboratory and in situ. On the other hand, non-destructive testing methods such as ultrasonic velocities can produce a reliable and fast solution to indentify state of strain and stress in rocks. The present paper aims to provide insight into the relations amongst ultrasonic wave velocities, amplitudes and deformability properties of porous siltstone under compressive loading. For this purpose, pulse (vP) and shear wave velocities (vS) along with amplitudes (AP - AS), and applied loads with resultant strain were measured simultaneously so that response of siltstone to compression can be evaluated. In addition, initial vP and vS were recorded at the beginning of each test to calculate dynamic elastic properties of the specimens. This provided a comparison between static and dynamic elasticity properties of siltstone. Crack damage associated with the onset of dilation was also investigated. The results showed that there is a non-linear logarithmic relation between velocities and stress-strain level for siltstones.

Sep 26, 2011

By F Grobler

Many projects fail because project performance in unfavourable economic conditions was not anticipated at the investment decision stage. This type of failure may have been avoided through the selection of a strategy that enables the project to perform well under a range of possible future economic conditions (a ærobustÆ strategy); rather than an æoptimalÆ strategy for expected future conditions that will never eventuate. This paper describes a method of rapidly generating mine plans for a number of project strategies, and then evaluating it against a representative range of equally likely economic conditions. The key performance indicators derived for each strategy are the mean value and the distribution of values (variance). A prudent investor will identify prospective strategies not only on the merit of highest mean values (as a proxy for economic reward), but also on the probability of not meeting specified investment hurdles (a proxy for risk). A robust strategy will achieve its financial objective even under adverse economic variations. This paper focuses on the effect of commodity price uncertainty; particularly around the choice of mining and processing capacity levels. Results from enumerating 2000 prices scenarios against 63 strategy combinations show how processing and mining capacity can be manipulated to manage the risk-reward trade-off.

Sep 26, 2011

By B Olsson, R Norman, M Volz

Australia has seen unprecedented demand for coal exports in the last ten years and this demand is set to expand further still according to many analysts. This rapid increase in demand has placed pressure on multi-user coal chains to guarantee the capability to meet the required demand, in terms of both current operations and capacity expansion.The projects required to deliver these forecast tonnages take place in an increasingly complex commercial and technical environment. These challenges include brownfield and greenfield projects, multiple rail and terminal service providers as well as a myriad of mine operators, all needing to operate in an increasingly integrated manner to get the most out of expensive shared assets.Increasing complexity and integration drives the need for more holistic and sophisticated analysis tools. The capacity of coal chain subsystems, such as mine, rail and port, can no longer be determined effectively in isolation. Understanding the nature of the interactions between these subsystems and the resultant capacity of the integrated system is the key to maximising value. TSG advocates the use of a total integrated system approach to understand the behaviour and performance of complex coal chains.Recently, TSG has worked in conjunction with the Integrated Logistics Company and a number of stakeholders in the Dalrymple Bay Coal Chain to deliver the first independent system master plan. This master plan has provided a quantitative and rational assessment of coal chain capacity in its current state and a prediction of its capacity once a pipeline of committed capacity improvements is in place. It is underpinned by a highly detailed discrete-event simulation model of the complete coal chain as an integrated system, including mine load-outs, rail, terminal and port operations.This paper provides an overview of the study and describes the differences between subsystem and total integrated system model performance.

Sep 26, 2011

By C Niemann-Delius

The problem of long-term open pit mine planning is a large combinatorial problem, which canÆt be solved easily by mathematical programming models because of the large problem size. In this paper a new metaheuristic algorithm, which has been developed based on the ant colony optimisation (ACO) and its efficiency, have been discussed. To apply the ACO process to a mine planning problem, a series of variables is considered for each block as the pheromone trails that represent the desirability of the block for being the deepest point of the mine in that column for the given mining period. During implementation several mine schedules are constructed in each iteration. Then the pheromone values of all blocks are reduced to a certain percentage and additionally the pheromone value of those blocks that are used in defining the constructed schedules are increased according to the quality of the generated solutions. By repeated iterations, the pheromone values of those blocks that define the shape of the optimum solution are increased, whereas those of the others have been significantly evaporated. By using this algorithm a high degree of complexities could be considered in objective function and constraints of optimisation model. In addition it can improve the value of the initial mining schedule up to 34 per cent for some cases in a reasonable computational time.

Sep 26, 2011

By P Moarefvand, M Osanloo

The anticipated economic life of the mine, which defines the rate of mine production, is dictated initially by the design capacity of the mill/concentrator and the production capacity of the mine relative to the grade and tonnage of ore that can be encompassed by the pit design. A small pit will result in smaller investment and cash flow; in contrast, a larger size of pit will increase capital investment and annual revenue. Since open pit mine design and long-term production sequencing are essentially based on three-dimensional block models, changes in block dimensions leads to different mine sizes, and therefore changes in the mine life. The physical characteristics of the deposit, such as reserve tonnage and ore grade, affect the expected future revenues from the mining project, and consequently they affect the life of the mine. Large blocks will increase the recoverable ore reserves and production rates and hence increase the mine life. This paper discusses the effects of the block dimension on the commercial ore reserve, grade-tonnage curve and its effect on the production rate, ultimate pit size, mining cost and consequently the mine life. The result shows that block height is the most effective parameter governing the economical life of the mine.

Sep 26, 2011

Real-time data collection and plant historians are becoming common place in mining and processing plants. This vast quantity of data must be turned into easily accessible and actionable information for all levels of the organisation.Queensland Nickel use a combination of Microsoft and SAP business intelligence tools to collect, cleanse, aggregate and present plant information to the appropriate people for supporting decision making in the business. SAP Business Objects, for visualisation, and SAP MII, for integration, allows complex and accurate metrics to be delivered as real-time dashboards. Designing a rigid data management architecture to segregate the data collection, integration and logic and visualisation into distinct logical layers, allows for rapid report development and greatly assists with IT maintenance, while also minimising the complexity of any customised programming. This type of architecture ensures a common data source for all business reports, ensuring one version of the truth. The past few years at Queensland Nickel have seen process and maintenance engineers spending considerably less time collecting and integrating data and spending more time analysing what is happening in the plant. Real-time reports and dashboards have been developed around the business needs rather than around the data. Two years ago Queensland Nickel introduced an employee bonus scheme based upon meeting monthly performance targets; an easy to use dashboard that allows everyone, from operators through to management, to monitor these metrics day-to-day.

Sep 26, 2011

By P Lukic

The definition of the working sections that will be used in a mine is usually initially made in the field by the geologist supervising the drilling program. These initial definitions are often made on the basis of rules of thumb such as æcoal less than 30 cm thick cannot be mined separatelyÆ; æpartings more than 30 cm thick will be mined separatelyÆ; and æif a coal seam is less than 50 cm thick and the parting above or below is thicker than the coal, the coal will be wastedÆ. These decisions are also often made based on the requirement for a minimum sample mass for analysis, and the desire to collect data at the minimum resolution to conserve the exploration budget.In many cases the geological models based on this data are produced at a resolution that is inadequate to allow the mining engineer to produce a mine plan that will maximise project value. This problem is generally unrecognised.Where data is collected to a higher level of resolution the subsequent processes employed in the production of geological models and mine plans often discards the inherent value that is hidden in this data. Again this problem is generally unrecognised.This paper highlights this problem and then presents a methodology that ensures that the optimal working section is selected and compares the outcomes of applying this methodology versus adherence to the usual rules of thumb.

Sep 26, 2011

The paper provides an overview of the development and content of APCOM symposia since their inception in 1961. This development is set within the context of the academic environment in which much of the research published at APCOM symposia is conducted. This environment includes rigorous external assessment of research quality at national levels and against international benchmarks, which carries significant consequences for funding and for the continued existence of the academic minerals industry disciplines. Adverse consequences that undermine the academic provision of mining and resource engineering will impact negatively on the minerals industry by reducing the level of research and education resources available to it.The traditional reductionist approach to research is contrasted with the inter-disciplinary approach that is required to address the complex systems problems that the minerals industry will have to address to ensure its technical, economical and environmental sustainability. Such an approach offers a means of raising research profiles, of establishing mutually beneficial academic-industry engagement and provides an opportunity for APCOM to take a lead role in identifying the research and development agenda for the future

Sep 26, 2011

By Q Wang

Net present value (NPV) has been the main criterion in mining project evaluation and production plan optimisation. It is a common practice in NPV calculations to take into account only the tangible cost items in the corporate accounting system. The costs incurred due to damage to the local ecosystem and environment are left out and treated as externalities. Such practice on the one hand underestimates the total cost of a mining operation and, on the other hand, ignores the difference in ecological/environmental impacts between different mine plan alternatives. This paper attempts to measure the ecological costs of mining and to incorporate such costs into the evaluation scheme in mining project evaluation and mine planning. The ecological costs of mining are estimated based on the areas and types of land (eg forest land, grazing land, crop land) damaged by mining activities and the carbon emission from fossil fuel consumption. For the land areas (and their associated ecosystems) directly damaged by mining activities, the ecological costs are measured by the prevention and restoration costs, the lost values of eco-services of the damaged land, including bio-product production, soil erosion control, water run-off control, oxygen release, air pollutant absorption and formation of soil nutrients. The ecological cost of carbon emission from the energy consumption of a mining operation is measured by the cost of cultivating the equivalent forest land required to uptake the emitted carbon. A case study on a large-scale open pit mining project is presented to demonstrate the influence of ecological costs on the mine planning outcome.

Sep 26, 2011

By D Cai, E Baafi

Various enabling technologies and systems have recently been introduced in the mining industry. Such systems include miner-bolters with concurrent cutting and bolting, employment of two shuttle cars, adoption of self drilling bolts and utilisation of continuous haulage or monorail systems. The paper discusses how Flexsim discrete event simulation models were used to assess how these proposed mining systems can best be used to achieve and sustain high roadway development rates of 10 m per operating hour for 20 h/day.

Sep 26, 2011

By Robert G. Ditchburn

Msjflkcisokng During the past sixteen years, GNS Science has developed a number of radiometric methods for dating massive sulfide samples from submarine arc and back-arc volcanoes. This has improved our understanding of the formation of these hydrothermal systems, the frequency and duration of their activity, and assisted marine mineral exploration companies in assessing the economic potential of these deposits that can be rich in copper, zinc and gold (up to 90 ppm Au in some chimneys). The radiometric dating methods that we employ utilize radium isotopes that are extracted from the host rocks without their parent thorium isotopes, by ascending, hot, acidic hydrothermal fluids. When the hydrothermal fluid discharges into cold seawater, chemically similar barium and radium co-precipitate as barite, a common mineral contained within the black smoker chimneys that grow upwards from the seafloor. From the onset of mineralization, the isotopes 228Ra and 226Ra (with half-lives of 5.75 yrs and 1600 yrs, respectively) begin to decay, so that the 228Ra/226Ra and 226Ra/Ba values decrease with time. Thus, samples can be dated using these ratios once the initial values, i.e., the values at the onset of mineralization, have been established, ideally from active chimneys. 228Ra decays to 228Th (half-life 1.91 yrs) and from the 228Th/228Ra values, the growth-rate of individual chimneys can be estimated. The isotope 210Pb (half-life 22.3 yrs) is occasionally used for dating the mineralization, although several samples from a chimney are needed to determine an age from the 210Pb grown from 226Ra, using the isochron technique.

Sep 14, 2011

By Jorge MRS Relvas

Recent research both on active and fossil systems has demonstrated that shallow subseafloor replacement processes are not only viable depositional mechanisms for massive sulfide mineralization, but likely contributed as a major component of the mineralization occurring in large VHMS deposits and in many present-day seafloor hydrothermal systems. In the giant Neves Corvo deposit, as in many others VHMS deposits of the Iberian Pyrite Belt, there is overwhelming evidence for silicate-sulfide replacement processes being largely responsible for the efficiency of the ore-forming systems and huge size of the deposits. Textural evidences at all scales, coupled with a well-constrained mass-balance geochemical analysis, indicate that extensive replacement in the lavadominated volcanic rocks of the footwall sequence, and disseminated replacement mineralization in the volcaniclastic and/or sedimentary units were major mechanisms of ore formation in the Neves Corvo deposit. Shallow metal deposition prior to fluid discharge on the seafloor is likely to play a major role in seafloor massive sulfide mineralization. This premise should be envisaged as critical in evaluating the economic potential of seafloor resources, and should certainly be part of the equation when plans for seafloor mineral exploration missions are drawn.

Sep 14, 2011

By Darryl Thorburn

The Cook Islands are 15 islands located in the Southwest Pacific (between 8-23°S latitude and 156-167°W longitude). The total land area is about 200 km2. However, because its islands are widely scattered, the EEZ of the Cooks encompass an area about 2 million km2. The Cook Islands government exercises sovereignty and jurisdiction over its EEZ according to international law and convention as a member state under UNCLOS1. Accordingly, the Cook Islands government exercises full control over resources in its EEZ, including minerals on the seabed. Decision making on allocating licences for exploration and ultimate mineral recovery is by the Cook Islands government and will be set out in relevant statutes. Seabed minerals investigations within the EEZ of the Cook Islands and adjacent waters were first carried out by, USSR, US, and New Zealand research vessels in the late 1960 early 1970?s and indicated the presence of high concentrations of manganese nodules. This early work was followed by a number of Government funded surveys in and adjacent to the Cook Islands EEZ These surveys have identified a world class resource of manganese nodules within the Cook Islands EEZ (CI EEZ), containing significant

Sep 14, 2011

By L Keeney

Geometallurgy is not a mechanism designed to replace current geological and metallurgical deposit characterisation but an added component required to understand orebody variability. Current geological characterisation approaches focus on understanding deposit genesis aimed at identifying new mineralised regions and metallurgical characterisation determines parameters required for engineering design of processing plants. Geometallurgical integration has the task of drawing on aspects of each stream to enable spatial mapping of performance indices across a deposit. It is a complimentary activity to current practice and adds a new dimension to orebody knowledge. Although the notion of conducting an integrated geological and metallurgical analysis is not a new concept, limited publications exist in the field proposing integrated methods, with several technical issues existing in current geometallurgical integration approaches. An iterative method drawing on existing geological and metallurgical characterisation and new measurement tools and inputs is proposed. The integrated method comprises of discrete components dynamically linked together through iterative feedback loops with each component having a specific purpose achieved by applying a range of data acquisition technologies and statistical tests. The key outcomes of the method are:overcoming the lack of optimised geometallurgical domains relevant to processing performance,development of a rigorous approach to identifying parameters controlling processability,improved protocols for relevant metallurgical test data and sample selection, andability to generate greater data support to enable rigorous geostatistical modelling of geometallurgical attributes. This paper outlines the integrated mapping and modelling method developed and draws on multiple data acquisition technologies applied within the AMIRA P843 GeMIII Project.

Sep 5, 2011