Search Documents

Kalgoorlie Consolidated Gold Mines Pty Ltd is currently developing the 'Super Pit' gold mine in the mining area known as the Golden Mile adjacent to the city of KalgoorlieBoulder, Western Australia. The presence of numerous abandoned mine workings and complex structural geology has required considerable geotechnical input into the determination of the optimum pit slope geometries for both interim and ultimate pit slopes. Slope design is based on detailed site investigation and stability analysis which is balanced with historical operational experience. This paper discusses the process of determining the optimum pit slope angles for each of the stages of the west wall of the 'Super Pit'. The risks associated with slope instability are discussed for each stage.

Jan 1, 1994

By Harper F

This paper outlines the authors' views of the methodologies which can be employed to value mineral properties at different stages of development for the purposes of project financing, mergers and public floats. This paper discusses the key issues in Discounted Cash Flow (DCF) analysis including the importance of data verification and the shortcomings in DCF analysis. Stockmarket valuation measures and valuation methodology for exploration and pre development projects are examined through examples and pitfalls are identified. The use of valuations in corporate transactions and their strategic value is also discussed.

Jan 1, 1994

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By Grano S. R, Ralston J

It is the perennial problem most metallurgists face when examining data collected from laboratory float tests and plant surveys - there are more numbers than we know what to do with! The objective of this paper is to analyse and interpret a set

Jan 1, 1994

By S. Espley, G. Tan

"Inco's Little Stobie Mine is a low-grade nickel operation producing approximately 4()()() tons per day. Backfill has never been an economical option at the mine; therefore, the only viable type of mining in the upper zones has been by sub-level cave. This mining method allows for the draw-down of a rock cover into the empty stopes to provide stability to the over-all rock mass. In the lower areas of the mine, bulk blasthole mining methods have taken place, without rock fill, resulting in extremely large open stopes. As the mine reaches its final stage of recovery, it is inevitable that the hangingwall of the large voids will undergo tensile failure via spoiling.This paper deals with the collaborating efforts of Inco's Rock Mechanics group and the Little Stobie mining operations toward the successful recovery of the ore zone remnants such that the inevitable failure, and time of failure, of the rock mass is ""controlled"". Within the mining scheme, several key requirements had to be met to satisfy the operations: (1) production rates; (2) good blast fragmentation; and (3) secure pulling-horizons. A full-scale rock mechanics study was carried out involving: numerical modelling studies; pulling ellipse analyses; blast design, monitoring and analyses; laser profiling; and time domain rej7ectometry (TDR) instrumentation. The final recovery scheme, employing a controlled failure, involves recommendations on: (1) blasting techniques; (2) support systems; (3) mining sequences and scenarios; and (4) monitoring systems."

Jan 1, 1994

By Jerry L. Smith

Industry on a whole has not been very receptive to government prodding to implement waste minimization programs. Waste minimization has the appearance of substantial benefits, however, there are underlying difficulties and suspicions that need to be addressed before industry will support pollution prevention initiatives. They can be summarized as follows: - Human behavior resists change, uncertainty, and unknowns. - New waste minimization techniques are difficult to find and research. - Calculating the true cost of present waste practices as well as new techniques being considered is difficult and time consuming. - Getting a consensus opinion of all the individuals affected on the course or technique to be employed in a pollution prevention program. New software products have addressed many of the problems associated with implementing pollution prevention programs: They contain research on a large number of pollution prevention techniques and case studies; they generally are accessed by EPA ID number, chemical name, or synonym; and some programs have the option to print a comprehensive written user-specific pollution prevention program.

Jan 1, 1994

By G Neely

COPING WITH COMPLEXITY In every industry, and mining is no exception, plant and processes increase in complexity over time and managers and operators need correspondingly more knowledge. The mine manager has to delegate details to operators, engineers, metallurgists, accountants, safety specialists, personnel officers and the rest. Is it reasonable then, to expect the Mines Inspector to be competent to judge the conduct of all these operations against the criterion of the regulations? Obviously not, but what are the alternatives? One is a superficial inspection where the inspector goes on a hazard hunt for broken steps and missing handrails. Another is one in which an army of specialist inspectors marches on a mine, sometimes outnumbering the staff. Each is competent to assess some part of the operation and if he or she can find an opposite number among the mine staff, they can discuss details. But what good does it achieve? The system acts to remedy present defects and to make recommendations which, if only they were followed, would prevent the same things happening again. Given that this process has been going on since the first Factory Act of about 1840, how is it that there are any more defects left to put right? The answer of course is that defects keep appearing, and new defects arise as fast as the old ones are found and corrected. Further progress can only be made by preventing defects at their source.

Jan 1, 1994

By Glen Robertson, Jeff McLaughlin

"The Clarabelle Mill rock tailings have the potential to generate sulphuric acid through chemical and biological oxidation of sulphide minerals. Current rock tailings assay between 0.80 -1.40 %S, with sulphur occurring principally as coarse pyrrhotite. Acid generation within the tailings area can be substantially reduced by segregating pyrrhotite rich tailings in a submerged storage area and by depositing only low sulphur rock tailings in exposed areas. Laboratory tests confirmed that low sulphur tailings could be produced by flotation at reduced pH with a small xanthate addition. A plant test was conducted to evaluate the production of low sulphur tailings in conjunction with INCO's continuing commitment to environmental protection and progressive decommissioning of the metallurgical site.During the plant evaluation, approximately 5% of the mill rock tailings were reprocessed in a line of 100 tt3 Denver flotation cells. Tailing grades below 0.40% S were easily achieved through operation at pH 6 -7, with xanthate addition (dosages up to 0.02 lb/ton) and 10 -15 minutes of nominal retention time. Froth depths between 1 -3 inches combined with relatively liberal amounts of frother were required to pull the lightly mineralized froth into the concentrate which averaged 11% sulphur and less than 5% mass recovery. In addition, three field lysimeters were each filled with two hundred.ton bulk samples of low sulphur tails (0.35% S), standard rock tailings (0.98% S), and mill total tailings (2.30% S) for long term monitoring. The implications for full scale plant design, tailings area decommissioning, the possibility of increased nickel recovery and preliminary field lysimeter data are discussed."

Jan 1, 1994

By John C. Brulia

The IME member companies, the ISEE along with its chapter organizations, the Federal, state and municipal regulatory agencies, and the industry consultants and suppliers have developed safety equipment, provided safety guidelines, promulgated safety-oriented regulations, and conducted safety training for blasting personnel in an effort to reduce explosives-related accidents.

Jan 1, 1994

By J. S. Wozek

In metallurgical applications, coal fulfills dual roles as a chemical feed stock and as a fuel source. These applications range from cokemaking, ironrnaking (including pulverized coal injection), foundry, basic oxygen furnace / electric arc furnace coal additions, direct ironrnaking, Corex, and the futuristic direct steelmaking. In all steelmaking related processes, chemical reactions are simultaneously temperature and chemical dependent. Therefore, coals used in these processes must consistently comply with specific quality parameters in order to promote efficient operations. This paper limits discussion of Metallurgical Coal Quality to cokemaking and ironmaking applications. Its purpose is to present the customer's perspective on the control of critical coal and coke properties.

Jan 1, 1994

Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994

By Phil A. Keele

"IntroductionGeneralThe Genesee Coal Mine is a joint venture of Fording Coal Limited and the city of Edmonton. The mine supplies thermal coal to the Genesee Generating Station operated by Edmonton Power and is located approximately 75 km southwest of Edmonton (Fig. I).Under the terms of the joint venture agreement, Fording Coal Limited has designed and developed the Genesee Coal Mine. Fording also operates the mine which has a minimum economic life of thirty-five years. Mine development started in the spring of 1987 with the construction of the dragline erection pad and mine service complex. Major development of mining areas was carried out in 1988 with the construction of haul roads, powerlines, topsoil recovery, etc. Mining officially commenced on December 14,1988.The mine produces 1.6 million tonnes of coal per year and employs 65 people. MiningGround conditions have turned out to be very poor, as expected with the majority of the overburden in the first few years a soft lacustrine clay with minor amounts of fine-grained glacial till. To compound matters, what was expected to be a relatively uniform coal subcrop turned out to be a very irregular erosional contact.The coal mined at Genesee is a sub-bituminous Class B thermal coal with approximately 16070 ash, 21% moisture, 8300 Btu/lb and 0.27% sulphur on an as-mined basis.The primary piece of mining equipment used at the Genesee Coal Mine is a M8200 walking dragline. It has an effective operating radius of 100.6 m, a 50.5 m3 bucket, and weighs approximately 3860 tonnes yielding a ground pressure of III KN/m2•Figure 2 illustrates schematically the single pass mining sequence presently employed at the Genesee Coal Mine. The M8200 is used to lift all coal out of the cut, the coal being placed in stockpiles on the prepared pad .This method maximizes coal recovery under the conditions where spoil failures due to poor material would otherwise put men and equipment at risk. The coal is subsequently loaded by the coal shovel operating on the same bench as the M8200 dragline and delivered to the plant as required.All mined areas, as required under Alberta Legislation, are to be returned to an agricultural land capability equal to or better than that which existed prior to mining. Reclamation activities, as a result, are an important and integral part of the mining process. A complete list of the primary mining equipment deployed at the Genesee Operations appears in Table I."

Jan 1, 1994

By L. Drisdelle, S. Gendron

"Survival in today's business climate requires participation of all employees in a Total Quality Management Program encompassing everything - ""safety, quality of products, quality ofet1ch and every job done, and of course production "". We all know what needs to be accomplished, but struggle with how to do it, especially in an industry which has not always experienced management/union cooperation, and mistrust is still present.This paper describes a process to improve team work and employee involvement in Inco's nickel carbonyl refinery at Copper Cliff The process involves facilitatorship training for all employees, and a system for reinforcing and accomplishing the required behavioural change. The system is described in detail and a number of examples are presented. At the refinery, the staff is starting to understand as Max DePree recently wrote ""Without Quality Behaviour, you cannot have Quality Product"". IntroductionThe Copper Cliff Nickel Refinery (CCNR) is Inco's largest and most modern nickel refinery, which celebrated its twentieth year of successful operation in April 1993.The heart of the refinery is the Inco pressure carbonyl (IPq plant which produces high purity nickel pellets and specialty powders by refining an approximate 80% nickel granule feed. The carbonyl plant is a modem chemical plant with very special and demanding requirements for safety and environmental protection due to the toxic nature of the refining gas.Since 1987, there has been an emphasis at CCNR on a comprehensive Total Quality Improvement (TQI) Program which was designed based on recognizing customers' needs for improved systems for quality management. This program is customer oriented and comprises such elements as team organizational concepts, customer audits, process assessment and internal quality auditing.A detailed review of progress was made in early 1991 and it became apparent that the ""ownership"" of the TQI program was not broad based. In fact, the program was very much a staff driven effort and fell far short of total employee involvement and relentless continuous improvement that are now considered essential to remain competitive and stay in business.Inco staff has now come to regard that early phase of our TQI program as ""the technical aspects of total quality improvement"".The safety experience was also puzzling. Even though the safety statistics were good with an average lost time frequency of 1.6 for the last five years, the perfonnance improvement had plateaued and remained pretty much the same. Clearly a new approach was required if significant progress and continuous improvement was to be made."

Jan 1, 1994

By Kelly D, Moore C

The Golden Mile, which has been mined continuously for the past 100 years by both underground and more recently open pit methods, occupies an area of 1.2 km by 4 km adjacent to the city of Kalgoorlie Boulder in Western Australia (Figure 1). Large-scale open pit mining at the Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston operations is currently extracting 7.8 million tonnes of oxide and sulphide ore for a total production of 522 000 oz per annum. The effectiveness of grade estimation techniques at KCGM has been examined with reference to existing 10 m bench sample data from all operating areas within the Eastern Lode System of the Main and North pits. The aim of the study was to recommend practical parameters for grade control estimation. The review included comprehensive variography and comparison of nonparametric estimation methods (Joumel, 1983) such as indicator kriging and probability kriging with ordinary kriging, leading to the development of improved grade control parameters and procedures for both daily quality control and short term mine planning. This paper reviews the geological, statistical, geostatistical, mining and modelling features studied in order to present KCGM's Mining Department with recommendations for improving grade control.

Jan 1, 1994

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By R. G. Church

Belle Ayr Mine was established in 1972 as the first large surface coal mine in the Powder River Basin of Wyoming. During the mid-1980s, it was eventually out-distanced in productivity by newer mines, and management recognized that the mine must recapitalize its major mining equipment and enhance its workforce flexibility in order to be competitive in the deteriorating market situation. Therefore, state-of-the-art haulage and loading equipment was placed into service, and a 12-hour rotating shift and a technician-based workforce was implemented. Belle Ayr Mine is located 29 km (18 miles) southeast of Gillette, Wyoming, in Campbell County (Figure 1). The mine is a part of AMAX Coal West, Inc., and with its sister mine, Eagle Butte, located 8 km (5 miles) north of Gillette, is a major contributor to the overall coal production of AMAX Coal Industries, Inc., headquartered in Houston, Texas. This paper addresses mine planning, recapitalization initiatives, and innovative workforce changes which propelled this large, surface coal mine to the forefront of productivity in the ever tightening low sulphur coal market.

Jan 1, 1994

By L. A. Panek

A new pillar strength formula is presented, incorporating a function P of size and shape, which takes into account the size-shape interaction effect as well as the enhanced strength exhibited by wide pillars. Existing pillar formulas, lacking these capabilities, are not suitable for extrapolating small-specimen test results to mine-pillar sizes and shapes. Interpreting compressive-strength test results as function of P clearly reveals wide-pillar behavior in much old test data. Model relationships are discussed, along with their scaling implications.

Jan 1, 1994

By P. Favreau

This paper describes the progress accomplished at the Noranda Technology Centre in the field of three-dimensional computer-aided underground blast design. Traditional methods of laying out underground blasts are reviewed, and the new computer-aided approach is described. Time savings achieved through the use of BLASTCAD can be advantageously used to better engineer blasts, using models and blast vibration analysis. Future work involving the attachment of blast models directly to the system is also addressed.

Feb 1, 1993

By P. R. Ineson, D. W. James

For a criterion to be useful it must either demonstrate directly the role of exhalative processes in the formation of a deposit or describe a unique attribute of exhalative deposits. Few of those employed in previous investigations entirely satisfy either condition. The limitations of three of the most frequently employed criteria are illustrated by studies of the geology of the King Island Scheelite deposit in Tasmania.

Jan 12, 1993

By G. H. Blackwell

Sequences in open pit mining must be planned and regularly revised to incorporate changes in the variables which affect profitability. Interactive computer planning with colour graphic facilities is an effective tool for this purpose in the short and medium term. An interactive computer planning system for medium-size, low grade porphyry copper-molybdenum open pits is described. The planning system proved especially valuable during the critical stages of pushback mining when deep, inner pit ore was nearly depleted and the erratic grades of the next pushback provided ore and marginal material at a time of depressed metal prices.

Jan 8, 1993