Search Documents

By Landy Stinnett

"When performing a valuation of a mineral property, a developing mine or perhaps an ongoing operation, the appraiser is typically provided with a range of information prepared by the property owner. This information can include ownership records, geological interpretation, assay data, an estimate of the reserves or resources believed to be on site (tons and grade), mine plans, production forecasts, capital and operating cost projections, and so forth.The appraiser familiarizes himself with the data, analyzes the various reports and then prepares the appraisal. There is usually a site visit, and there may be some effort at comparison of the particular mineral deposit with others in the region or with those of similar depositional characteristics, but for the most part, the appraiser is relying on the corporate documents, tempered by his/her experience in the field. Time is usually of the essence, the cost for the assignment has been trimmed, and therefore independent verification of the various components comprising the underlying data base (legal review, redrilling portions of the deposit, collection of new samples, re-assaying, etc.) is unlikely in most situations.In the case of high-value commodities — gold, silver, diamonds, perhaps the platinum-group elements — there have been numerous examples of the property owners attempting to increase the value of their holdings by nefarious methods. Most of these involve salting the deposit in some fashion; i.e., introducing small amounts of the commodity into samples being sent to a laboratory for analysis so that the resultant assay shows a higher grade (Donaldson, 2002; Greeley, 2001; Lechler et al., 2008 and Meech, 2001). Other schemes to enhance the apparent worth of a property include the use of nonstandard assay procedures, incorrect handling or withholding of the underlying information, and false reporting."

Sep 1, 2016

"A commercially available through-the-earth (TTE) communications system was evaluated at an active underground longwall mine in West Virginia. This TTE system uses electricfield (E-field) sensing to send text-based communications through two separate antenna arrays connected in parallel. Each antenna array is composed of interconnected, grounded metallic rods or other such structures. Two-way communication between subsurface locations was investigated in this study using various antenna configurations. This field study was conducted as a part of a larger multisite evaluation of available TTE systems in an effort to determine their operational sensitivities. IntroductionWireless, through-the-earth (TTE) communication technology is designed to achieve point-to-point communication through solid strata using very low frequency (VLF) and ultra-low frequency (ULF) electromagnetic waves. Using this approach, communications are established without the need for intermediary communications infrastructure. As a result, TTE systems have the potential to provide reliable, robust communications between surface and underground personnel. Exploration into the use of TTE technology for this purpose dates back to the 1920s (Jakosky and Zellers, 1924; Pittman, Church and McLendon, 1985), but U.S. permissibility requirements slowed the development of TTE equipment for widespread implementation (Durkin 1980; Pittman, Church and McLendon, 1985). One of the primary challenges in producing wireless TTE communications is the counteraction of signal attenuation when propagating through solid strata (Barkand, Damiano and Shumaker, 2006; Wadley, 1949). The long wavelengths of TTE transmissions make them well-suited for reducing the rate of attenuation. However, even when operating within the VLF to ULF range, the performance of TTE systems is still affected by geologic and anthropogenic factors (Geyer, 1973; Geyer and Keller, 1976; Geyer, Keller and Ohya, 1974; Jakosky and Zellers, 1924; Large, Ball and Farstad, 1973). Although commercially developed TTE systems have demonstrated the ability to communicate in a variety of conditions, their range and performance have been highly varied (Barkand, Damiano and Shumaker, 2006; Geyer and Keller, 1976; Geyer, Keller and Ohya, 1974; Ilsley, Freeman and Zellers, 1928; Jakosky and Zellers, 1924; Yenchek et al., 2012)."

Sep 1, 2016

By G R. Hancock, D Verdon-Kidd, M J. Saynor, J B. C Lowry, T J. Coulthard

The ability to simulate the stability of post-mining landscapes over time scales ranging from decades to millennia is a critical element in the assessment of closure designs for uranium mines. Landscape Evolution Modelling (LEM) technologies provide a means to simulate and assess the long-term geomorphic stability of a conceptual rehabilitated landform for periods of thousands of years. However, a major issue with simulations derived from long-term modelling are the limitations associated with the data inputs. Specifically, simulations which utilise historic rainfall data only represent the variability of rainfall events that have occurred over a relatively short period. Consequently, these simulations run the risk of not accounting for the full range of rainfall variability that might be expected over an extended period of up to 10 000 years. Therefore, for this study a probabilistic approach was adopted to generate a stochastic synthetic rainfall data set to produce a series of unique rainfall scenarios, each representing a simulated period of 100 years. Importantly, utilising such an approach allows uncertainty in predictions to be better accounted for and provides a range or probability of likely outcomes.In this study, the effect of ten individual rainfall scenarios are assessed in terms of their impact on the predicted erosion and denudations rates produced by the CAESAR-Lisflood LEM for a conceptual rehabilitated landform of the Ranger Uranium Mine (RUM) in the Northern Territory of Australia, focusing on the Corridor Creek catchment (Figure 1). While legislation requires this site to be erosionally stable for at least 10 000 years (Commonwealth of Australia, 1987), here the focus is on the first one hundred years of landscape evolution, as this is the period in which erosion is expected to be higher, with limited vegetation cover or pedogenic development in the initial decades after rehabilitation. It is also the period where the drainage pattern is set.CITATION:Lowry, J B C, Verdon-Kidd, D, Hancock, G R, Saynor, M J and Coulthard, T J, 2016. Application of synthetic rainfall data to long-term modelling of a rehabilitated landform, in Proceedings Life-of-Mine 2016 Conference , pp 75–79 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By K Brand, M J. Ind, M Rynhoud

Water management at a tailings storage facility (TSF) presents one of the major risks to the safe performance of the facility. International and domestic dam safety guidelines assess a dam’s hazard category based on the consequences of a dam failure and the subsequent downstream damage to the environment and communities.Often a rigorous risk assessment is undertaken during the design stages to identify and control hazards associated with water management through life-of-mine (LOM) phases. However, as experienced during the recent downturn in commodity prices, early closure of a mine can occur rapidly and unexpectedly. Although guidelines such as the Australian National Committee on Large Dams Incorporated (ANCOLD) recommend that one of the key objectives of integrated TSF planning is to ‘plan all phases of a tailing dam’s life to ensure adequate storage capacity including early closure ’ (Australian National Committee on Large Dams Incorporated (ANCOLD), 2012) this is often overlooked by owners who are focused on fulfilling the mine’s potential and early closure is not on their radar.CITATION:Ind, M J, Rynhoud, M and Brand, K, 2016. Life-of-mine spillway strategy – managing risk associated with surface water at a tailings storage facility, in Proceedings Life-of-Mine 2016 Conference, pp 209–211 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By P Swart, A Fletcher, P D. Erskine

Glencore Coal Assets Australia (GCAA) operates five coalmines in Queensland and has rehabilitated thousands of hectares of mined land across these sites. Accordingly, GCAA seeks to continually improve rehabilitation outcomes over time and work towards progressive rehabilitation sign-off. The ultimate test of rehabilitation success is the attainment of an agreed land-use target, whether for biodiversity conservation or some type of agricultural production, and the ability of the rehabilitated landscape to resist degradation and retain desired functions (eg biodiversity protection or grazing productivity). However, success must be based on documented evidence that can demonstrate adequate progress towards rehabilitation targets and is assessed at appropriate intervals. To assist this task, a stepwise decision guide for the GCAA monitoring program was developed to ensure consistent monitoring data is collected across the range of sites. This presentation will discuss some of the processes that were followed to allow GCAA to identify appropriate metrics to assess rehabilitation success efficiently over thousands of hectares.CITATION:Erskine, P, Fletcher, A and Swart, P, 2016. Preparing for progressive mine rehabilitation sign-off in Queensland, in Proceedings Life-of-Mine 2016 Conference, pp 148–150 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By J Heyes, G A. Maddocks, R J. Stewart, G D. Corder

Mining is an international business and vital contributor to national and global economies. It depends on the trust and confidence of investors and stakeholders for its financial and operational well-being (Committee for Mineral Reserves International Reporting Standards (CRIRSCO), 2016). The Social Licence to Operate (SLTO) is an increasingly multifaceted and multistakeholder risk that can impact investment decisions. Community challenges to broader political and economic decisions have given rise to protest delaying or stopping projects or closing mines and has led to loss of life (Ernst and Young, 2016). Some governments are now giving greater powers to stakeholders to make the final decision on approving mining and metals activities (EY, 2016). With billions of dollars in project investment at stake, ongoing engagement, collaboration and effective communication with stakeholders is crucial and mutually beneficial solutions are increasingly expected (EY, 2016). It is therefore essential that the industry communicates the risks (and opportunities) associated with investment effectively and transparently in order to earn the necessary level of trust with investors and stakeholders to underpin its activities (CRIRSCO, 2016). Despite this need, investor and stakeholder trust in the sector has eroded in recent years.CITATION:Maddocks, G A, Corder, G D, Heyes, J and Stewart, R J, 2016. The social licence to operate and drivers for change – resource reporting and mine material characterisation, in Proceedings Life-of-Mine 2016 Conference, pp 183–187 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By R Grogan

Nautilus Minerals Inc is a sea floor resource exploration and development company focused on developing the Solwara 1 Project, a copper-gold sea floor massive sulfide deposit in the territorial waters of Papua New Guinea, for which it holds a mining lease and associated environment permit.Economies depend upon four key types of capital: built, natural, financial and human. Natural capital consists of the ‘minerals, energy, plants, animals, ecosystems (climatic processes, nutrient cycles and other natural structures and systems) found on Earth that provide a flow of natural goods and services’ (Daly and Farley, 2004). Many ecosystem goods such as fish, fruit and water are already valued and sold in markets; however, some ecosystem services are not amenable to markets and have remained unvalued in traditional accounting methods, even though they provide significant value (such as flood protection, climate stability etc; Batker and Schmidt, 2015).There are now economic methods available to quantify and value natural capital and many non-market ecosystem services. When valued in dollars, these services can be incorporated into a number of economic tools, including benefit-cost analysis, accounting, environmental impact statements, asset management plans and rate of return on investment calculations. Their inclusion ultimately strengthens decision-making. When natural capital assets and ecosystem services are not considered in economic analysis, they are effectively valued at zero. This omission can lead to poor decisions, inefficient capital investments, higher incurred costs and losses due to unexpected events (Batker and Schmidt, 2015).In 2015 Earth Economics was commissioned by Nautilus Minerals Inc to conduct an independent, objective environmental and social benchmarking analysis of the proposed deep seabed Solwara 1 mine with terrestrial copper mines (referred to as ‘the report’). The report represents the first ever natural capital accounting and ecosystem goods and services framework for seabed mining.The report compares the proposed Solwara 1 mine with three terrestrial mines: Bingham Canyon (Utah, USA), Prominent Hill (South Australia, Australia), and Intag (a proposed mine in Intag Province, Ecuador), and provides a natural capital accounting assessment for all four operations.CITATION:Grogan, R, 2016. Natural capital accounting – a sea floor mining application, in Proceedings Life-of-Mine 2016 Conference, pp 2–4 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By S Szylkarski, D N. Graham

In mining, water management is an operational necessity, requiring planning and detailed engineering, as well as risk assessment. Yet, the hydrology of streams and aquifers typically extends well beyond the boundaries of mine operations and intersect with environmental and social values. Mine managers often plan, design and assess the impact of water management activities (such as dewatering, excess water disposal and flood management) with a mine site or process specific focus. The challenge is that the impacts are spatial, long-term and complex – and may be cumulative across multiple mine sites. Further, there is usually little consideration of the feedbacks and interactions between surface water, groundwater and catchment hydrology. Failure to understand these processes can lead to poor decisions and increased costs. This presentation outlines an approach to simulating integrated hydrology in mining catchments that addresses the shortcomings of traditional modelling techniques.CITATION:Graham, D N and Szylkarski, S, 2016. Simulating integrated hydrology in mining catchments from planning to closure, in Proceedings Life-of-Mine 2016 Conference, pp 101–105 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By J A. Braithwaite

Social licence to operate is not a new concept for the mining industry, referring to stakeholder approval or acceptance for the activities and impacts of a project, company or industry. It is intangible, dynamic and non-permanent, hence it needs to be earned and then maintained (Thomson and Boutilier, 2014). It has also been argued that social licence extends beyond building approval or acceptance, into engagement for long-term development (Owen and Kemp, 2012).There are many examples where stakeholder opposition – or withdrawal of social licence – have increased capital and operating costs, extended schedules and impacted reputation. At its extreme, the withdrawal of social licence to operate can also contribute to or be the catalyst for mine closure.The key benefit of obtaining a social licence is a reduction of risk. Stakeholder support and advocacy, as well as the implementation of social performance programs that contribute to social licence, can be beneficial in terms of schedule, costs and other benefits.While decisions to close a mine are generally driven by resource availability or economic conditions, the social, economic and environmental legacy remaining post-closure is of importance to many stakeholders. With a number of significant mines now approaching closure within Australia, we are seeing heightened community concern about the economic and social impact of mine closure and the success of land rehabilitation. So how does the concept of social licence to operate extend into the closure phase of the mining life cycle?CITATION:Braithwaite, J A, 2016. Social licence to close?, in Proceedings Life-of-Mine 2016 Conference, pp 176–179 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By T W. C Stambolie

Coalmines, like any other mine, generally involve the classic three-staged approach to mining studies; namely concept, pre-feasibility study (PFS) and feasibility studies (Cusworth, 2012). Subsequent to these studies, and in instances parallel to these studies, the commitment to an environmental impact statement (EIS) is made in order to secure both state and federal development consent. In recent times, the sentiment to both mining and coal is changing whereby the traditional approaches to mine planning and economic evaluation is complicated by evolving environmental legislation, expectations and time frames. It is all too common to take shortcuts in the development of projects in order to create the perception of cost savings and expediting the delivery timeline. Atkins (2016) points out that: boards of so many small to mid-tier mining companies, and a few majors, focus on relentless project delivery too early in the project process, with so little time and effort applied to risk analysis and option development. Unforeseen risks can cost any timeline or budget far more than the effort required assessing and mitigating these. The ultimate risk to any feasible coal project is that of environmental approval and achieving development consent.CITATION:Stambolie, T W C, 2016. A black canvas – planning a greenfield coalmine in New South Wales, in Proceedings Life-of-Mine 2016 Conference , pp 31–35 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By J Theiler, B Beamish

The presence of reactive metal sulfide minerals in waste rock contributes to the hazard of spontaneous combustion in dumps, as these minerals react with air and water entering the dump at ambient temperatures to form various mineral products and significant heat. This reaction series can also be an initiator of self-heating of carbonaceous material present in the waste rocks if sufficiently high temperatures are reached. Characterisation of these reactive minerals has primarily been to assess the risk of acid mine drainage, which is not necessarily an indicator of spontaneous combustion risk. No systematic testing procedure has been adopted by industry to assess the spontaneous combustion propensity of the waste rock. As a consequence, the principal management strategy for spontaneous combustion has been a reactive approach of dealing with events as they arise.Recent advances in adiabatic oven-testing have enabled more definitive assessment of the spontaneous combustion propensity of coals, including the quantification of the accelerating influence of reactive pyrite (Beamish and Beamish, 2011, 2012; Beamish, Lin and Beamish, 2012). This same test procedure has been used to assess the self-heating performance of metal concentrates and is therefore amenable to assessing the metal sulfide oxidation process from low ambient temperatures. The data obtained from such testing can be used to quantify the more prone waste rock sequences of a mineral deposit in advance of mining. This enables appropriate management planning for emplacement and long-term storage of waste rock in dumps.CITATION:Beamish, B and Theiler, J, 2016. Characterising the spontaneous combustion propensity of waste rock, in Proceedings Life-of-Mine 2016 Conference , pp 93–96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By M Slight, H Lacy

In recent times, with the global mining industry’s focus on sustainable development there has been a significant focus on mine closure and rehabilitation performance and reporting through the development of the International Council on Mining Metals (ICMM), the Global Reporting Initiative and the Equator Principles. In addition, financial reporting obligations under International Financial Reporting Standards and the Sarbanes Oxley Act (2002) have also led to better understanding and improvements with industry closure performance, liability management and reporting.Under these sustainable development principles and financial reporting obligations, mining companies are required to consider mine closure planning and associated cost estimates across all life cycle phases of the mine. Internal processes have been developed within mining companies to better understand their closure liabilities and obligations and likely costs and cost estimating processes are generally developed for long-term life-of-mine (asset) planning and budgeting, financial reporting for corporate balance sheet provisioning purposes, and regulator reporting for environmental bonding and financial assurances.These days mining companies need to plan for, prepare and actually mine for closure right from the start of a project. This means that their closure and rehabilitation liabilities throughout each stage of the mine life cycle phases must be understood, planned for, managed and controlled.So how is the industry performing? Understanding of closure liabilities is improving and reflected in liability cost estimations that are recognising the likely issues to be faced at closure, but there is a way to go to ensure that the industry doesn’t add to the increasing legacy liabilities being passed onto the wider community.CITATION:Slight, M and Lacy, H, 2016. Closure liabilities – where are we at?, in Proceedings Life-of-Mine 2016 Conference , pp 28–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By J P. Sykes, A Trench

"The common-held view of the future of copper mining is one of declining quality of mineral resources and increasingly limited long-term development options. This decline, in turn, is viewed as inevitably leading to increasing economic, socio-political and environmental costs. As a result, new technologies and innovations will be required to mitigate cost escalation. The future is therefore typically summarised as a battle of a ‘below-ground’ declining quality asset base pushing costs upward versus ‘above-ground’ technology and innovation driving costs downward. The role that high quality new mineral discoveries could play in mitigating industry cost pressures is typically understated, if considered at all. New high quality discoveries can be mined at lower cost than existing assets and potentially if discovered in the right locations within a more amenable contemporary environmental and socio-political setting. Such deposits, once discovered, would improve the overall quality of the industry asset base, as well as benefitting their owners substantially through higher margins. However, to target new high quality deposits explorers need some understanding of the nature of high quality copper mines in the long-term future. Conventional scientific and economic techniques for analysing the future of copper supply, generally by studying the project pipeline, ignore as yet undiscovered resources and also struggle to fully incorporate the multiple internal and external factors that could impact upon copper mining practices in the future.Scenario analysis is specifically designed to consider multiple factors interacting in the future, and is thus more creative than simply looking at the visible project pipeline. The use of scenarios is therefore potentially capable of providing insight into aspects of the future of copper mining about which little is currently known or that remains considerably uncertain. In this study, the Oxford University Scenarios methodology was employed to analyse different plausible futures for copper mining and the consequent implications for exploration targeting strategies. The scenario analysis highlights two key dimensions or axes that serve to map out potential industry futures: firstly the technical and economic optimisation of the existing industry; and secondly the generation of new prospects or ‘search space’ for the copper industry. These two axes in turn frame four different scenarios for the future of the copper mining industry. These copper mining scenarios are then compared to the 20 largest existing copper mines and projects, and their owners, to determine if any represent an appropriately robust exploration targeting proxy: none do. The paper therefore concludes that efforts by industry are required to generate mine concepts that would be viable across all scenarios, and thus act also as exploration targeting proxies. In the interim, companies will have to seek to build portfolios that create an overall robust asset base, out of individually less robust assets. Failure to do this implies that consequential, irreversible strategic decisions lie ahead for the copper mining industry, which may be a threat to both incumbents and the very industry itself. This situation makes strategic exploration targeting in the copper industry very difficult.CITATION:Sykes, J P and Trench, A, 2016. Using scenarios to investigate the long-term future of copper mining and guide exploration targeting strategies, in Proceedings International Mine Management Conference, pp 265-290 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By S Jeffrey, S Mundell, F Arboleda

In the current cycle of low commodity prices and rising costs, mine managers continue to focus on optimising mine performance and productivity. A critical component of strengthening performance and productivity is ensuring material is routed correctly and efficiently through the core mine production activities of drilling, blasting and grade control.By the time a blast is planned, an enormous amount of intellectual property has been invested in the exploration, resource development, feasibility studies and mine planning activities. The value of that knowledge is either realised or diminished during mine production. Efficient execution of the process is critical and is reflected by the quality and timeliness of the information produced.Multiple teams are involved in the mining extraction process. These teams are all under time pressure to keep the mine equipment operating. One of the root causes of this pressure is the dependency between the teams. They do not operate in isolation, but are a link in a chain depending on the outcomes of each activity. It is essential communication is efficient so tasks can be completed according to the production schedule. Unfortunately, communication fails when unintegrated systems are used because of:- different teams seeing different data, hence there is not an overall, up-to-date view of progress and priorities- lack of cross-functional visibility of data leading to failure to identify errors in time to address or correct issues- teams tending to be siloed and focusing on their part of the process rather than the overall objective.With different systems used for the parts of a common goal, supervisors and managers lack visibility of the process. This makes it difficult to identify process improvement opportunities.Streamlined communications help consolidate all data and activities resulting in improved cooperation between mine production teams. This outcome increases the confidence and efficiency of material routing decisions. It also reduces potential impact to mine performance from errors in early stage tasks like drilling and grade control. Having everyone collaborating off the same trusted data, helps teams identify with common goals and find business improvement opportunities as they appear.CITATION:Arboleda, F, Mundell, S and Jeffrey, S, 2016. Driving mine performance through communication, in Proceedings International Mine Management Conference, pp 117-124 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By B McCarthy

Mining has been typified of late as a boom and bust, cyclical industry operating against a steady decline in the size and quality of mineral deposits. Decreasing deposit grades and increasing costs of traditional mining techniques, all in the face of another commodity downturn, are forcing mining companies more than ever before to seek out new and innovative ways to operate. New technologies are emerging to model, control and track resources through the mining value chain, to move material about mines more efficiently, and to identify and separate ore from gangue early in the extraction process.Discovering such technologies however is only the first challenge for mining companies. Actually implementing technological change successfully has proved to be an even bigger challenge. Like for many industries, fulfilling the promised benefits for the expense and timing envisioned, has not been easy when innovative technologies are introduced.Citing the author’s insights and experiences in a number of emerging technologies, this paper explores barriers to implementing technological change in the mining context. Key elements of a change management framework, first developed for implementing mine management systems, are described to give mining executives insight into how they and their organisations can succeed through technology-driven change.CITATION:McCarthy, B, 2016. Successfully implementing technology-driven change in the mining environment, in Proceedings International Mine Management Conference, pp 89-104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Boon, M Franklin

This paper outlines the journey of cultural maturation and management system development at the Mt Rawdon (MRO) gold mine from its acquisition by Evolution Mining Limited (Evolution) in late 2011 to 2016.Evolution embarked upon a series of projects that aimed to improve the operational consistency and implementation of change on-site, while leveraging off the existing strengths of the operation. This document describes the gaps that were identified, the processes used to close them, and the resulting cultural change and production outcomes, with a specific focus on how to optimise the culture at any mining operation.MRO had a history of four owners in less than three years when it became a key asset of Evolution. The site leadership team (SLT) decided to influence the culture at MRO by reviewing and upgrading the existing management processes.The first priority was to improve transparency and collaboration at the SLT level, followed by improving competency in project management. The next phase was to strengthen the internal communication using a deliberately designed network of meetings, communication screens and other initiatives. Once there was some traction, the focus moved toward increasing production volume and decreasing cost per unit by improving short-term planning and execution capability. Together with other initiatives, this resulted in improved collaboration between all functions, which in turn netted over 37 per cent mining production uplift.Following solid success, a process of prioritisation and alignment management was implemented. This supported the ‘Mine to Mill one operation’ ideal and allowed the SLT to decide month-by-month what actions were to be prioritised. These priorities incorporated production realities and longer term imperatives of the balanced business plan.Much of this work was completed during a period of declining gold prices and a relentlessly strong Australian dollar, making it difficult to justify spending money on improvement projects. This work proved critical for the operation’s long-term survival.CITATION:Boon, M and Franklin, M, 2016. Improving consistency of delivery at Mt Rawdon Operation, in Proceedings International Mine Management Conference, pp 305-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Crosbie, M Lord, R Bitencourt, P Defferrard

The MMG Century mine, which is the largest zinc/lead mine in Australia, began operating in 1999 and ceased mining from the open pit in July 2015, with processing completed in early 2016. Closure plans were developed from 2006, and detailed planning for closure commenced in early 2011 with the appointment of a dedicated closure planning resource. The site will continue to be managed during the active and passive closure phases to complete rehabilitation commitments and demonstrate that closure completion criteria have been achieved.Completion of the mining/processing phase of the project provides an opportunity to reflect on successes, missed opportunities and lessons learnt with respect to planning and execution of mine closure. This paper highlights examples of success at Century and also identifies key learnings and areas for improvement in progressive closure outcomes. Specific examples examine mine planning and execution involving bulk movement of waste rock and construction of permanent waste encapsulation landforms. The paper also provides recommendations for other sites that are planning for closure.Decisions made during the operational phase of the project life can result in a significant increase in closure liability and reduce the likelihood of achieving lease relinquishment. Likewise, it is of paramount importance to assess the consequences and thoroughly understand the risks associated with changes or deferral of closure plans, progressive rehabilitation targets and closure related key performance indicators.CITATION:Lord, M, Bitencourt, R, Crosbie, J and Defferrard, P, 2016. Closure planning lessons Learnt from the Century mine, in Proceedings International Mine Management Conference, pp 207-216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By R M. Lonsdale, M D. Goodz

"With an ever-increasing dynamic business environment, successful stakeholder engagement is becoming more fundamental to achieving desired outcomes in today’s mineral resource industries. It is imperative to be proactive in correctly identifying all stakeholders and initiating early contact. This builds trust relationships, which are essential to ensure future decision-making processes are streamlined.Often neglected is a company’s obligation to select the correct team to represent its values and mission. The company requires representation that demonstrates an understanding and commitment to its operations and people, the safety and health of the community and environment, and most importantly, represents the decision makers. Stakeholders need to believe that the engagement process is genuine and that the company representatives are aligned towards targeted outcomes that will benefit all stakeholders in some way.Among others, stakeholders include shareholders, staff, families, community, service and supply providers, regulators, land managers and the political/financial framework. Depending upon the mineral product, stakeholders may include ports, international offtake clients and those along the route. New stakeholders continually evolve during mine life, and the engagement process requires an investor–community–public relations (IR/CR/PR) team to anticipate change and actively scan perception and chatter.Successful communication is more than delivering a message; it is about engaging stakeholders and confirming the feedback loop to ensure the correct message is communicated and the relationship is strengthened.The nature of the mining company’s branding and the public’s perception of company intentions will dictate whether there is willingness to allow the company to follow its desired path. This in turn controls the company’s most scarce resource – time. Timing is fundamental to achieving targeted outcomes with minimal cost and delays, marketing in a peak cycle and acquiring critical capital for development and growth.Branding and stakeholder engagement effectively controls and extends to the company its social licence to operate.CITATION:Goodz, M D and Lonsdale, R M, 2016. Stakeholder engagement – who are you, what do you stand for and why? In Proceedings International Mine Management Conference, pp 239-248 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By M I. Roberts

Corporate and workplace culture, as many owners, directors, executives and managers know, is by far the most powerful determinant of productivity. It’s much more significant than buildings and equipment. Yet although no one today would build a building or machine without a plan, few leaders have a plan for building and sustaining a safer and more productive culture.Using practical ways, culture can be planned and shaped as desired. Success requires implementing a project plan for changing the systems that drive behaviours that in turn shape attitudes. The combination of behaviour and attitude together with leadership largely shape culture.To improve performance, leaders need to:1. improve the organisational systems that drive behaviour2. action a project plan for improving specific performance metrics 3. demonstrate leadership that is conscious, disciplined, committed and passionate for purposeful use of human energy.This paper explains all three factors in practical ways with operational and corporate examples. It details understanding and applying the power of fundamental statistical analysis tools to recalibrate, focus and drive proactive leadership that takes responsibility for process improvement, supporting people and ensuring accountability.Experience and practical understanding of human and organisational behaviour confirm that the Measurement ? Analysis ? Reporting system combined with conscious leadership is by far the most powerful driver of behaviour. This wisdom produces profound changes in leadership style and behaviour. It develops outstanding leadership to create and sustain a safe and highly productive culture reliably producing consistently high quality products. It is the key to developing accountability, employee retention and a sustained competitive advantage.CITATION:Roberts, M I, 2016. Building safe, productive cultures and leadership, in Proceedings International Mine Management Conference, pp 163-178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016