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By Stefan Mutz, Thomas Pretz, Jörg Julius, Frank Hilbk-Kortenbruck, Aachen, Hartmut Harbeck

"The annual global production of primary aluminium was about 22 million tons in the year 2000. This represents the second largest production rate in the world market after steel. Experts are predicting that the global demand for aluminium will rise in the near future.In contrast to other metals such as copper, the recycling of aluminium is considered relatively difficult. There are two main alloying groups, namely cast and wrought. In the case of aluminium it is important that the constituents within the scrap aluminium to be smelted are clearly identified. Within the secondary remelting process alloying does take place, but a removal of unwanted metal constituents is problematic. Therefore mixed aluminium scrap (not genuine in-house collected material) can only be used to produce cast aluminium. Thus, in other words a down-cycling of wrought (extrusions and rolled) products occurs. However, in spite of these difficulties there is an increasing trend to produce aluminium from secondary scrap (approx. 35% in Germany). Similar trends have been identified in the USA and other industrialised countries. This development is mainly caused by the high energy consumption for the production of aluminium from bauxite. Producing aluminium from scrap is saving about 95 % of the energy in comparison to the processing of primary raw materials.An improvement in sorting technology is necessary to separate wrought and cast alloys of aluminium as the absolute amount of recovery from old scrap is higher than the demand for cast.This contribution presents some alternative methods, utilizing automatic picking technologies, which will be used to separate secondary aluminium in the future. During the recent years, some major progresses have been made in automatic picking technologies for different applications in the processing of primary and secondary materials.For the sorting of aluminium scrap a special additional sensor will be necessary. The best detection will ultimately be based on online elemental analysis of single particles. First investigations in the field of laser based systems for these applications have already been performed several years ago. One of the laser based techniques is the laserinduced breakdown spectrometry (LIBS)."

Jan 1, 2003

By A Black, A de Jo, J Cavanagh, J Harding

Acidic and metal-rich waters have been discharging from Sullivan Mine, West Coast, New Zealand since the closure of the mine during the early- 1990s. This has resulted in a decrease in pH from a background of 4.5 to 2.8 and an increase in metallic elements in nearby Rapid Stream. In addition to the chemical effects on Rapid Stream, a study of freshwater macro-invertebrates revealed the absence of most biota downstream from the discharge. An attempt is being made to use the Sullivan Mine as a case study of problem and remediation analysis.

Jan 1, 2003

By W. Lin, H. Endo, M. Kwasniewski, A. Kamei, M. Takahashi

Uniaxial tension tests were conducted on specimens of eleven granitic rocks which came from eastern Japan, and included a granite, four granodiorites, four tonalites and two gabbros. The axial and transversal deformability of these rocks was determined based on strain measurements using wire strain gauges. The experimental test results revealed that deformational properties of the rocks investigated varied depending on their petrographic features. However, the axial strain and the lateral strain characteristics showed a similar trend for all the rocks, i.e. the stress-strain curves were non-linear throughout the whole stress range from the initial point of loading to the point of ultimate failure. Moreover, the tangent Young's modulus and the ratio of the lateral strain to the axial strain decreased monotonously with the increasing of the axial stress. Still, the deformational properties were different for individual rocks in a quantitative sense. In particular, the difference in the lateral strains among different rocks was more distinct than that in the axial strains. For example, the Poisson's ratio at a stress level equal to 50% of the ultimate strength of a granodiorite was very low, close to zero. Furthermore, the Poisson's ratio of a tonalite was lower than that of a granodiorite, and assumed a negative value. This effect occurred because the lateral strain became positive as it changed from contraction at the initial stage of loading to extension at higher stress levels. There is no ready explanation for this phenomenon; it is believed, however, that it occurs due to microcracks pre-existing in rock materials and/or weak bonds between the adjacent mineral grains. Les essais de traction directe ont été conduits sur les échantillons de onze roches granitiques provenant de la région Est du Japon: un granit, quatre granodiorites, quatre tonalites et deux gabbros. Déformabilité axiale et transversale de ces roches s’était déterminée en utilisant des jauges extensométriques à fil. Les résultats obtenus à partir des essais montrent que la déformabilité des roches examinées varie selon leurs propriétés pétrographiques. Cependant, à partir des essais, une tendance semblable était observée dans les paramètres de la déformation axiale et la déformation latérale de toutes les roches; c'est-à-dire chaque courbe de contrainte-déformation était non-linéaire dans tout l'intervalle de contraintes à partir de l’état initial jusqu’à l’état d’une rupture finale au cours du chargement. De plus, le module tangent de Young et le rapport de la déformation latérale sur la déformation axiale a diminué de manière monotone avec l'augmentation de la contrainte axiale. Cependant, les différences quantitatives de propriétés de déformation sous traction étaient observées entre des roches individuelles. Particulièrement, la différence de déformations latérales était plus notable que celle-là de déformations axiales entre des roches différentes. Par exemple, le coéfficient de Poisson à un niveau de contrainte égal à 50 % de la résistance d'un granodiorite était très bas, près du zéro. En outre, le coéfficient de Poisson de la tonalite était inférieur que celui du granodiorite et a assumé une valeur négative. Cet effet est apporté parce que la déformation latérale est devenue positive en passant de la contraction dans l'étape de chargement initiale à l'extension sous les contraines plus hautes. Il n'y a aucune explication prête de ce phénomène; on prétend, cependant, qu'il est induit par des microfissures préexistantes dans des matériaux rocheux et/ou des joints faibles entre les grains minéraux adjacents. Einaxiale Zugversuche wurden auf Probestuecke von elf frischen, in Ostjapan vorkommenden, granitartigen Gesteinen durchgefuehrt, welche einen Granit, vier Granodiorite, vier Tonalite und zwei Gabbros umfassten. Die axiale und transversale Verformbarkeit von diesen Gesteinen wurde durch Verformungsmessungen mit Drahtdehnungsmessstreifen geklaert. Die experimentellen Versuchsergebnisse offenbarten, dass Verformbarkeitseigenschaften des untersuchten Gesteins in Abhaengigkeit von ihren petrographischen Eigenschaften variierten. Jedoch zeigten die axialen und die lateralen Spannungsdehnungslinien eine aehnliche Tendenz bei allen Gesteinen, d.h. die Verformungskurven waren nicht linear im ganzen Bereich vom Ausgangspunkt des Belastens bis zum Punkt des entgueltigen Bruchs. Ausserdem verringerten sich das tangentiale Elastizitaetsmodul und das Verhaeltnis der lateralen Verformung zur axialen Verformung monoton mit der Erhoehung der axialen Spannung. Dennoch waren die Verformbarkeitseigenschaften der einzelnen Gesteine in der quantitativen Wahrnehmung unterschiedlich. Insbesondere war der Unterschied bezueglich der lateralen Verformungen zwischen verschiedenen Gesteinen eindeutiger, als der in den axialen Verformungen. Z.B. war die Querkontraktionszahl auf einem Spannungsniveau, das 50% der Zugfestigkeit eines Granodiorits entspricht, sehr niedrig und nah an Null. Ausserdem war die Querkontraktionszahl eines Tonalits negativ und deshalb niedriger als die eines Granodiorits. Dieser Effekt trat auf, weil die laterale Verformung, als sie sich von der Kontraktion am Ausgangsstadium des Belastens bis hin zur Ausdehnung auf den hoeheren Spannungsniveaus aenderte, positiv wurde. Es gibt keine fertige Erklaerung fuer dieses Phaenomen; es wird jedoch angenommen, dass es wegen der Mikrorisse auftritt, die vorher im Gesteinsmaterial und/oder in den schwachen Bindungen zwischen den angrenzenden Mineralkoernern existieren.

Jan 1, 2003

By Nickolas J. Themelis

Nearly thirty two million tons of municipal solid wastes (MSW) are combusted annually in over one hundred U.S. Waste-to-Energy (WTE) power plants, thus reducing the use of fuel oil by about 1.6 billion gallons of fuel oil. One of the advanced WTE processes is the 0.9-million ton/y SEMASS facility at Rochester. Mass. Most of the combustion in the three giant combustion chambers occurs while the injected shredded wastes are in suspension, i.e .? in flash combustion mode. The velocity. temperature, and concentration profiles in the SEMASS combustion chamber were simulated by representing the combustible fraction of MSW by the simplified formula C6HIO04 and using the CFD program Fluent to solve the turbulent energy and mass transport equations. After validation against plant data. this model will be used to examine options for increasing the productivity of WTE combustion chambers, such as optimum distribution of primary and secondary air and oxygen enrichment.

Jan 1, 2003

By Lenny Winkel

With the aim to develop a solar-driven process for the extraction of copper from sulfide concentrates research on the decomposition of copper sulfides under inert atmospheres has been initiated. Thermogravimetric measurements on chalcocite (CuzS) revealed that copper is formed already at 1823 K. Chalcopyrite (CuFeS2) also disintegrates at this temperature, although at a lower rate. Copper and iron have been identified in the solid residue. The results confirm the feasibility of copper extraction by direct decomposition of sulfides under atmospheric pressure. The decomposition under inert atmosphere prevents generation of SO2, it also alters the behavior of volatile impurities during decomposition of copper sulfide concentrates. Chemical eqUilibrium calculations for chalcopyrite contaminated with enargite (Cu3AsS4) have shown that the absence of an oxidic slag allows for a complete evaporation of arsenic and subsequent separation from intermediate sulfides. The need to better assess the potential of direct sulfide decomposition has prompted the development of an experimental setup for studying the decomposition reactions. The experiment has been devised such that data on the decomposition kinetics and on impurity removal can be obtained at temperatures up to 2500 K.

Jan 1, 2003

By Maija-Leena Metsärinta

The behaviour of copper and lead in zinc roasting has been studied in laboratory scale roasting experiments as well as in large scale trials in an industrial fluidized bed, with the background of Outokumpu Kokkola Zinc smelter. Commercial zinc concentrates with a low and high ( up to 3 wt % ) copper content and with a low and high (up to 3.5 wt % ) lead content were oxidized to various desulphurisation degrees in the fluidized bed to establish the reaction mechanisms and the paths for copper and lead oxidation in the roasting. Influences of the agglomerate size on the roasting kinetics and micro-scale phenomena were also determined. Optical microscopy was used on the calcine and the findings are presented as numerous photographs of the polished cross sections. SEMIEDS techniques were used for analyzing chemically the phases and particle morphologies present in the samples. Computational thermodynamics was applied to the complex phase equilibria occurring during roasting in the agglomerating calcine. A complete oxidation of zinc concentrate with a high copper and lead content requires a careful control of oxygen coefficient in the roasting in order to maintain a stable operation of the fluidized bed. Oxygen coefficient thus seems to have a significant impact on the hydrodynamic stability of the fluidized bed with fine raw materials.

Jan 1, 2003

By Noel A. Warner

Modern steelmaking is based on direct use of oxygen in high intensity batch reactors. A totally new approach is proposed in this paper, based on the view that pursuit of high intensity is unlikely to lead to successful coal-based continuous steelmaking. By substituting carbon dioxide and water vapor as the oxidants rather than using oxygen directly, the intensity is greatly reduced. Accordingly. subsurface formation of carbon monoxide bubbles can be avoided by careful manipulation of the three participating rate processes, gaseous diffusion, interfacial chemical kinetics and liquid phase mass transfer. Steelmaking can then be carried out without explosive ejection of molten droplets and the generation of micro-spray but rather in a controlled and fumeless fashion. The vital component is the introduction of generic melt circulation technology. Three melt circulation loops in series are envisaged. Starting with a composite feed of iron ore fines, pulverized coal and lime flux, a metallized solid raft floating on molten iron is propelled out of the ironmaking loop onto the first of two downstream steelmaking loops. In the first, a liquid slag is formed, primary decarburization is undertaken not with oxygen but rather with CO2 and H2O and the melt is desulfurized. The semi-product stream enters the third melt circulation loop, where open-channel decarburization is effected along with dephosphorization to yield a low carbon steel product. Alternatively, the melt leaves the last loop to irrigate a packed tower countercurrent to argon at around 100 mbar to continuously produce ultra-low carbon (ULC) steel.

Jan 1, 2003

By Maija-Leena Metsiirinta

The behaviour of copper and lead in zinc roasting has been studied in laboratory scale roasting experiments as well as in large scale trials in an industrial fluidized bed, with the background of Outokumpu Kokkola Zinc smelter. Commercial zinc concentrates with a low and high ( up to 3 wt % ) copper content and with a low and high ( up to 3.5 wt % ) lead content were oxidized to various desulphurisation degrees in the fluidized bed to establish the reaction mechanisms and the paths for copper and lead oxidation in the roasting. Influences of the agglomerate size on the roasting kinetics and micro- scale phenomena were also determined. Optical microscopy was used on the calcine and the findings are presented as numerous photographs of the polished cross sections. SEM/EDS techniques were used for analyzing chemically the phases and particle morphologies present in the samples. Computational thermodynamics was applied to the complex phase equilibria occurring during roasting in the agglomerating calcine. A complete oxidation of zinc concentrate with a high copper and lead content requires a careful control of oxygen coefficient in the roasting in order to maintain a stable operation of the fluidized bed. Oxygen coefficient thus seems to have a significant impact on the hydrodynamic stability of the fluidized bed with fine raw materials.

Jan 1, 2003

By R. C. W. Webber

Mining up to depths of 5 000 m would be a world first and, accordingly, no previous experience in the determination of acceptable heat stress limits, criteria or indices is wholly applicable. However, some South African gold mines are already operating at depths beyond 3000 m and much of the knowledge gained in reaching and working at such depths will be helpful in making adequate provision for acceptable environmental control at the greater depths being contemplated. Accordingly, it is necessary to take cognisance of the industry?s experience in deep-level mining and of standards and regulations already established in South Africa and elsewhere in order to ensure acceptable working conditions and control standards, that compare favourably and defensibly with those in other mining industries. The local and international use of heat stress limits, criteria and indices were investigated as it was necessary to determine to what extent any other indices, limits or criteria would be applicable to South African deep mine conditions. In addition, it was necessary to establish whether there was a single heat stress index that could be used for South African ultra deep mining conditions. It was found that an appropriate combination of heat stress indices would be required in planning for and ultimately controlling thermal conditions in ultra-deep mining. The depths being contemplated and the concomitant potential heat hazard present too great a risk for reliance on a single environmental component of heat stress, such as wet-bulb temperature at present in common use locally. The study recommends that a heat stress index, preferably Air Cooling Power (ACP), be used to design an ultra deep mine?s ventilation system and that wet-bulb temperature be used to monitor and control the system once it is implemented.

Jan 1, 2003

By S. Kelebek, A. Khan, J. Caceres, Beckett. D.

"Pyrrhotite in nickel-copper sulphide ores is nickeliferrous and intimately associated with pentlandite. Due to its low nickel content, pyrrhotite rejection is an important step in processing of these ores. In our laboratory, various reagents were investigated for their effect on pyrrhotite depression. Among these, a combined use of triethylenetetramine and sodium metabisulphite was found highly promising.The work described in this paper has two parts. The firs part is a summary of results obtained on process samples from the pyrrhotite rejection circuit at Falconbridge’s Strathcona Mill. The second part involves simulation of the circuit performance based on the reagent conditions used in the experimental work and the concept of split factors.Two sets of reagent conditions were evaluated. The first one involved baseline conditions, simulating the current reagent performance. The second one simulated the impact these new reagents can have on the circuit performance.The simulation results obtained under baseline conditions indicated a good agreement with the current circuit performance. The simulation results suggest that at practically the same pentlandite recovery and tailing grades, the circuit concentrate nickel grade can be doubled through effective pyrrhotite rejection by these new reagents."

Jan 1, 2003

By H Kundapen, J J, C Rumble, S Miller

This paper describes measures taken by Ok Tedi Mining Limited (OTML) to minimise the risk of acid rock drainage (ARD) resulting from mining operations at its Mt Fubilan porphyry copper-gold mine in the remote Star Mountains of Papua New Guinea. The risk of acid generation and metal leaching as a result of oxidation of these sulfidic deposits has long been recognised by OTML. In 1998, OTML instigated the ARD Management Program to fully evaluate these risks and to formulate, if necessary, trial and implement appropriate management strategies. In implementing the ARD Management Program, OTML has adopted a risk management approach consisting of five stages: risk identification, risk analysis, risk assessment, risk treatment, and review and monitor. Significant progress has been made in relation to risk identification, analysis and assessment. The work currently underway to put in place a comprehensive risk treatment and review process will ultimately determine the success or otherwise of this approach.

Jan 1, 2003

By J W. Glatthaar, M Mavotoi

The occurrence of fluorine in the copper/gold concentrates produced by Ok Tedi Mining Limited has provided a series of challenges to metallurgists since 1988. Although fluorine is distributed throughout the gangue minerals contained within Ok Tedi ores, itsÆ presence in talc and phlogopite (naturally floating fluorosilicates) has proven to be the predominate sources of fluorine in the final concentrate. Initial treatment for the fluorosilicates consisted of the use of a carboxy-methyl cellulose depressant added to the flotation cleaners. This was superceded in 1998 with the installation of a fluorine reverse flotation process for the removal of naturally floating fluorosilicates from the final concentrate when the fluorine content of the final concentrate exceeds smelter-defined trigger points. The fluorine reverse process is similar to by-product molybdenite concentrate production in that sodium hydrosulfide is used to depress copper/gold flotation whilst allowing the fluorosilicates to float. The process was installed in two parallel modules (to match the existing grinding/flotation modules at Ok Tedi), each consisting of a closed rougher/cleaner circuit configuration. Both rougher and cleaner cells are Jameson Cells from MIM Process Technologies, with the selection based on both processing characteristics and available construction space. This paper discusses both the nature of fluorine in-, and its removal from-, Ok Tedi copper/gold concentrates.

Jan 1, 2003

By G. Fehr, B. B. Panda, R. Bansberg, K. Arnold, T. Freiman

To evaluate the potential for process solutions to contaminate groundwater outside of the area of the Oxide Pit, it is necessary to predict the ultimate maximum pit lake elevation once pit-related mining activities have ceased. A water balance model was developed based on the existing pit geometry, the groundwater flow equation, and assumed hydrologic input parameters. The model assumed that at any point in time, total inflow into the system (i.e., direct precipitation, surface water and groundwater) minus outflow from the system (evaporation from the lake surface) was equal to the change in the pit water volume. The pit lake depth over time was predicted by assuming a succession of steady- state water balance conditions over short time increments. An analytical method using a spreadsheet and computer model was employed in this study to model the filling of the lake in the Oxide Pit. A sensitivity analysis was performed to evaluate uncertainty associated with the input parameters in the model. The sensitivity analysis indicated that the model was most sensitive to values of precipitation and evaporation and to the static water table.

Jan 1, 2003

By R. Peroni, J. Kopp

Mine planning and scheduling is based on using a geological model for the deposit. Blocks are used to discretize the deposit into mineable volumes where grade values are assigned. Traditional estimation techniques such as kriging or inverse distance weighting are frequently used for this task where an interpolated value is calculated within a discrete volume. This group of block grades is the input for sequence optimizers, which base their decision on the economical value of a given block. Ultimately, the economical value of a block depends on its grade, making mine sequencing sensitive to all estimated values. If one looks to a block not as a single grade but as a set of equally possible grades, its economical value will change as different grades can be assigned to it. Stochastic simulation is known to provide the tools to assess grade variability, which makes it possible to generate equally probable values in a block. Different grade block models can thus be built and multiple sequencing alternatives are observed by running the optimizer for these distinct inputs. The results demonstrate that the methodology is adequate for risk assessment and proves to be useful for mining project sensitivity analyses. Differences in the project net present value showed that there is little difference between the two simulation methodologies (sequential Gaussian simulation and sequential indicator simulation) applied. The process is demonstrated using a Brazilian kaolin deposit. Keywords: geostatistical simulation, mine planning, sequencing, risk assessment, open pit optimization.

Jan 1, 2003

By Jochen Petersen, David G. Dixon

"Although heap leaching may be perceived as a somewhat low-tech route for the extraction of low-grade minerals, the underlying physical, chemical and biological processes are in fact extremely complex. There has been increased interest in heap leaching of sulphide minerals in recent years with the advent of controlled bio-heap leaching, and the need to mine more marginal ore deposits.A detailed investigation into the dynamics of heap leach processes has provided much insight into the underlying complexities, and has led to the development of a sophisticated modelling tool. Some of the features include mineral kinetics, particle level effects, bacterial growth, oxidation and adsorption, gas adsorption, pore diffusion, bulk advection, gas balance and heat conservation.Two case studies are presented which illustrate specific features of the model for different applications and how these have helped to identify key areas of concern. In each case the model has proved as an invaluable tool either for the improvement of existing heap leach practice or for the development and assessment of novel applications."

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 Elzbieta Mielczarski, Jerzy Mielczarski, Jan Drzymala, Yann Duvalm

Polyethylene glycol monoalkyl ethers (CnEm) render quartz hydrophobic while feldspar remains hydrophilic. As a result quartz can be separated from feldspar in small frothless flotation devices such as the Hallimond tube. The separation can be accomplished at room temperature at pH < 7 and C16E33 concentrations between 10-5 and 10-4 M for quartz particles smaller than 0.4 mm. No separation is observed when feldspar ore containing about 60 % of feldspar and 40% of quartz is subjected to flotation in a laboratory flotation machine. The reason for the lack of separation is a low hydrophobicity of quartz in the presence of polyethylene glycol monoalkyl ethers and high intensity of mixing in the flotation machine. The flotometric tests showed that the contact angle of quartz in monoalkyl ethers of polyethylene glycol solutions is less than about 18 degrees and depends on the structure and concentration of the ether and the pH of the system.

Jan 1, 2003

Standards in the public reporting of resources and reserves in Australia have dramatically improved since the implementation of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code) in 1989. Whilst the JORC Code states clearly that Mineral Resources and Ore Reserves are imprecise calculations and should be treated as estimates, there is strong evidence that many people regard them as fact, including some accountants, directors, auditors and investors. Mineral Resources and Ore Reserves are key inputs in the valuation of a mining company and the determination of financial performance. Geological knowledge is the foundation upon which Mineral Resources, Ore Reserves and investment decisions are made, however this information carries with it substantial uncertainty. Case studies and company reports have established that errors derived from inadequate geological inputs have led to reduced profitability in operating mines and in extreme cases the premature closure of mine operations. Whilst there are many causes of mine closure and reduced profitability, including commodity prices and exchange rates, the cumulative effect of all geological uncertainty contributes significantly to the erosion of the credibility of mining within the investment community. There are a number of methods used to characterise and model uncertainty in Mineral Resource and Ore Reserve estimation. Empirical mining indexes, sensitivity analyses, Monte Carlo simulations and Conditional simulations are used to identify and estimate geological uncertainty, notably the quantification of uncertainty in grade and tonnage estimates. These techniques have not generally been applied to estimating geological uncertainty associated with key Ore Reserve inputs such as appropriate mining technique, equipment selection, production rate, mining dilution, stability requirements, materials handling, metallurgical processing, product quality and waste storage. New software tools are needed to model the entire mining process with all its geological and other interdependencies, enabling all uncertainties to be separately identified and estimated. By its very nature, mining involves the assumption of significant technical, financial, political, environmental and social risk. Success comes by understanding and managing these risks and consequently the mining industry will never choose to reduce the level of geological uncertainty to nil. The ultimate aim of improved identification and estimation of geological uncertainty is to quantify inputs into the Ore Reserve process, allowing a company to assess the risks and manage these accordingly. This approach is relevant to feasibility studies for new projects as well as life-of-mine planning through to the weekly schedule at existing mines.

Jan 1, 2003

By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003

By R Neivandt, Kane, M O&apos, D Browne

Newmont Australia is the operator of the Mt Leyshon mine near Charters Towers, Queensland. Mt Leyshon is an open cut gold mine, which processed on average 5.0 Mt of ore and produced up to 250 000 ounces of gold per year. Mining was completed in early-2001, followed by treatment of low-grade ore stockpiles for a further 12 months. Approximately 250 ha of waste rock dumps have been rehabilitated. Rehabilitation of two of the three tailings storage facilities (TSF) has been completed and the third is in progress. A field performance monitoring system that includes an automated meteorological station, large-scale lysimeters (measurement of net percolation), and in situ moisture content sensors (measurement of moisture storage changes in the cover material) were installed to monitoring performance of the cover systems placed on the waste storage facilities. This paper focuses on the installation and calibration of the in situ moisture monitoring system. The moisture monitoring system provides automated detailed in situ volumetric water content data above and within the large-scale lysimeters. A portable unit that provides spatial in situ moisture content measurements at additional locations on the cover system is also utilised. The paper will focus on installation and calibration of the in situ water content monitoring instrument in the waste rock, coarse cover material, and fine textured cover materials of the tailings facility and waste rock dump cover systems.

Jan 1, 2003