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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 R Cannings, J Wallace, M McCamley

The mining industry continues to have major disasters (Bingham Canyon, Pike River, Upper Big Branch, Mount Polley and Samarco), which often have a devastating effect on the enterprise, in terms of personnel deaths and injuries, environmental destruction, and financial and reputational loss. These disasters are not imposed from outside the business or organisation, they are almost always a function of loss of control of the management of the organisation’s critical assets and processes that they contain or to which they are exposed.Asset integrity is discussed as an effective response to business risks in order to mitigate, control and recover from loss scenarios that could expose a mining operation to significant property damage and business interruption, or even total loss. Vital to this process is the identification and control of risks to critical assets. Components of a critical asset assurance program are presented for discussion.Formal risk assessment has a longer history in industries other than mining, eg petrochemical, nuclear, military, aviation and space industries. Risk assessment is a structured, proactive approach to understanding and improving risks, as opposed to a reactive ‘fix-it-when-it-breaks’ mentality. Risk assessment techniques were triggered by major public disasters, such as the Flixborough chemical plant disaster (1973), Three Mile Island nuclear plant event (1979) and others.Today, most industries see risk assessment as an inherent part of their business, but do mining sites capture business risks that are related to major loss scenarios, which could have a significant impact on the operation?Does your risk assessment process:- involve a team having the right skill set so that the discussion is both stimulated and technically sound?- use generic assessment when a site-specific assessment is needed?- fail to consider all possible outcomes, including maximum foreseeable loss (MFL)?- fail to identify all hazards and controls associated with a particular activity?- fail to monitor controls effectively?This paper addresses the issues identified by these questions and provides some direction for developing a risk management process where business risk associated with critical asset integrity is integrated with other business and safety and health risk processes to provide a robust method for managing your business. Case studies and common findings from critical asset failures are used to support the need to include critical asset assessments as part of business risk management processes.CITATION:Wallace, J, McCamley, M and Cannings, R, 2016. How robust are your asset integrity management processes? In Proceedings International Mine Management Conference, pp 53-64 (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 N LaBranche, G Callinan

There has been a reduction in overall workforce in the mining industry during the current downturn; a corresponding reduction in fatalities and high potential incidents (HPIs) has not been observed. The same contributing factors can be seen in the vast majority of these incidents. These include inadequate supervision and lack of adequate risk assessment. How management structures, trains and leads an operation can have a great impact on eliminating these factors and reducing the risk of fatalities and HPIs.Contractors now account for 41 per cent of full-time equivalent employees in the Queensland mining workforce, and are disproportionately represented in the majority of fatalities and HPIs. Having a clear strategy for how contractors are integrated into the workforce is crucial. This talk will include a discussion of the data as collected in the Department of Mines and Natural Resources department database, and offer solutions based on this data.CITATION:LaBranche, N and Callinan, G, 2016. Organisational factors in fatalities and high potential incidents, in Proceedings International Mine Management Conference, pp 201-206 (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 L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Grigorescu, J H. Hodgkinson, M Khanal

The mining industry often needs to operate in remote or climatically harsh locations. The industry has recently been forced to deal with extreme conditions including floods, heatwaves and droughts. As these are becoming progressively frequent occurrences, mines typically build ‘downtime’ into production schedules and expect to incur costs to manage the various risks arising from climate extremes. Importantly, many environmental conditions are becoming more extreme and consequently, risk management based on past data can become increasingly ineffective. Market and shareholder demand for fewer interruptions are another pressure on mines to avoid prolonged or frequent downtime. Hence, adaptation to climate is becoming an important strategic move for many companies, many of whom are using future climate scenarios and alternative risk evaluations.We present here a method that uses commonly available mine site data to assist decision-making for reducing vulnerability to sudden flood. The method, ‘climate-related adaptation from terrain evaluation results’ (CRATER), identifies a mine’s flood ‘hot-spots’ and presents them as a ‘traffic lights’ warning map. The process then requires a failure analysis process such as fault-tree analysis to identify both the cause of possible failures and a range of possible failure-avoidance adaptations. In the final stage, management can assess the most suitable option for the mine, based on the availability of capital such as time, facilities, labour and money in addition to social acceptability of the options. CRATER has been tested in an open cut mine environment and is now being further developed to identify how subsidence over underground mines may impact on flooding and ponding over the mining life cycle (CRATER II). Further work is continuing to test larger and more complex mine landscapes to deliver a method to extract more knowledge from existing data.CITATION:Hodgkinson, J H, Grigorescu, M and Khanal, M, 2016. Reducing mine site extreme rainfall vulnerability using climate-related adaptation from terrain evaluation results, in Proceedings International Mine Management Conference, pp 187-200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By S P. Young, K R. Monro

Reducing metal prices have forced mining operations to become more efficient and innovate in order to do more with the existing base. Much of this effort has focused on improving the efficiency of load and haul operations. The key to this is to understand and quantify where delays and missed opportunities exist. Metrics such as utilisation of availability, efficiency utilisation and asset availability are helpful indicators of performance; however, uptime-based time usage models and performance analysis tools using productive operating time models help to identify additional improvement opportunities.Phu Kham is a copper-gold mine operated in the Lao People’s Democratic Republic (Laos) since 2008 by PanAust Limited. The mine is a single large open pit of 450 m depth, running a fleet of 51 100 t class rigid dump trucks and 300 t and 200 t shovels controlled with the aid of a fleet management system in order to achieve ex-pit material movements of 56 Mt/a.Commencing in late 2014, a range of initiatives were implemented in order to improve the efficiency of the mine haulage fleet. These include hot seating of all operator changeouts via changeout ramps, split shifting of crews to minimise queuing delays, maximising blast volumes and minimising blast event days to reduce blast exclusion delay events including opportune refuelling of equipment during blasting events, inspections of trucks during refuelling events, implementation of a dedicated haul road services team to help reduce wet weather related delays and infrastructure development for haul path efficiency improvements.These and other initiatives have allowed the mine haulage fleet utilisation of availability (UofA) to be sustainably increased from 85 per cent to 97 per cent (see Figure 1), efficiency utilisation to increase from 85 per cent to 90 per cent, and productive operating time (POT) to increase from 73 per cent to 84 per cent. The corresponding increases in efficiency of the haulage fleet has allowed an equivalent reduction of eight haul trucks from the fleet to meet continuing life-of-mine production requirements.CITATION:Monro, K R and Young, S P, 2016. Truck haulage improvements at the Phu Kham mine – the journey to 97 per cent utilisation of availability, in Proceedings International Mine Management Conference, pp 339-346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J P. Sykes, C Gemell, A Trench

The perceived and actual impact of government mineral policy upon the government share from gold mining revenues is assessed for ten key countries in which the gold sector is of relevance in advancing economic growth. Five African and five South American jurisdictions are considered, namely Burkina Faso, Ghana, Mali, South Africa and Tanzania from Africa; and Brazil, Chile, Colombia, Guyana and Peru in South America.Both the headline corporate income tax rate and royalty level are identified as poor indicators for the total government share. In addition, significant differences between industry perception and actual government tax levels are identified by this study. The quantitative financial analysis shows that there is no clear relationship between individual taxation rates, taken in isolation, and the overall average effective tax rate (AETR) paid by the project over its life. Neither companies nor governments should use individual taxation rates, or industry perceptions, in isolation to assess the overall competitiveness or equity of a country’s minerals taxation regime – such analysis can be very misleading.In this study, the perceived impact is determined from the well-established Fraser Institute survey published each year, and in 2014 compared 122 minerals jurisdictions globally. The actual impact is determined from quantitative modelling of the financial performance of a hypothetical gold mining project in each country. The technical parameters of the project are held constant; instead the differing mineral policies in each jurisdiction are applied to determine the resultant impact upon the relative share of the economic rents delivered to both private and public sectors. In the quantitative analysis, the total government share varies from 36.3 per cent in South Africa to 66.5 per cent in Ghana.CITATION:Gemell, C, Sykes, J P and Trench, A, 2016. Is perception reality? Evaluating the fiscal attractiveness of international jurisdictions for gold mining investment, in Proceedings International Mine Management Conference, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Missen, P Currie, J Bohan, D Clark

AGL is one of Australia’s leading integrated energy companies and the largest ASX listed owner, operator and developer of renewable energy and thermal generation in the country. AGL owns and operates the 2210 MW Loy Yang A power station and adjacent 30 Mt/a brown coalmine in the Latrobe Valley, Victoria. It also supplies coal to the nearby 1050 MW Loy Yang B power station owned by the GDF Suez (Engie)/Mitsui partnership. The mine is currently nearly 5 km long, more than 2 km wide at the operating face and up to 200 m deep. AGL employs a large workforce at Loy Yang and a substantial amount of services are performed on-site by contractors and consultants.GHD provides mine planning, earth sciences, civil/geotechnical engineering, dam surveillance, plant engineering and environmental services to AGL Loy Yang through an alliance framework. GHD is one of the world’s leading professional services companies operating in the global markets of water; energy and resources; environment; property and buildings; and transportation. In addition to GHD’s global footprint, the company also has a significant Victorian presence, including a permanent, well-resourced regional office in Traralgon, approximately 10 km from Loy Yang, as well as a permanent site office.A joint paper on the Loy Yang mine professional services alliance model was written for the AusIMM International Mine Management Conference in 2006 by Woods and Wood. Now ten years on, this paper provides an overview of the present relationship and arrangements, including the continued transformation of the alliance model and maturing of the relationship contract.These are challenging times, with increasing cost and regulatory pressure driving change in the broader energy and resources industry, and locally including both the mining and power sectors at Loy Yang. Flexible models to achieve a balance between internal personnel and access to key external skills, whilst achieving value for money and transparency, is increasingly critical. The right drivers and performance measures are essential, particularly when confronted with potential major technical and environmental risks (considering significant ground failure and fire events that have occurred elsewhere within the Latrobe Valley over the last decade) within a sector that is reducing costs and optimising production.This case study discusses the alliance status and changes, reasons behind adjustments and what the future is likely to hold. The paper also explores the validity of the original objectives and the extent to which they have been achieved. The philosophy of the alliance is to continue closely aligning the objectives of the two companies in the best interests of the Loy Yang site and immediate surrounds/stakeholders. Quality of service, costs, timeliness, health and safety (H&S) and some operational activities (aquifer depressurisation) remain important aspects and are reflected in key indicators for which performance is measured.CITATION:Clark, D, Bohan, J, Currie, P and Missen, J, 2016. AGL energy, Loy Yang and GHD – a further case study in alliancing: ten years on, in Proceedings International Mine Management Conference, pp 321-330 (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

By M Andrew, H Reynolds, R Mills

As the global mining industry continues to grapple with ‘black swans’ (high consequence / low frequency events) for health, safety and environmental losses, the focus is shifting from risk assessment of these events to risk management using selected purposeful controls that reduce the risk.Fundamental to critical control management (CCM) is a soundly based rationale for selecting the right controls for each and every risk. The approach should be based on a thorough understanding of the dynamics of the event: What causes it? How frequently will it occur? How likely is the consequence to be realised? This is typically done through a bowtie and methodical numerical risk analysis. Core to this step, then, is the structure and content of the bowtie; specifically, the analytic architecture that is used to construct the bowtie. Different architectures yield different constructions, and bowties are no different.Although bowties for operational health and safety (OHS) hazards appear to have a common architecture, they are not generic. It is important to stress that they contain site specific information, are prepared by site based operational teams, and vary from site to site to reflect each site’s operational conditions. They are often a product of the knowledge and understanding of the operational teams involved, may be prone to human error, and potentially miss latent hazards that may have been embedded early in the planning, design or construction phase of a mine or facility, or within the mining equipment. Overcoming these deficiencies through constant re-evaluation of the risks, and challenging the content on the bowtie will help to minimise the chance that something will be missed.This paper will cover key themes in bowtie architecture, introduce the concept of barrier models for high consequence event (HCE) bowties and present a relevant case study to illustrate the issues that determine quality in bowtie construction and critical control (barrier) selection and management.CITATION:Mills, R, Andrew, M and Reynolds, H, 2016. Can we stop a black swan breeding? Advances in bowties and critical control management, in Proceedings International Mine Management Conference, pp 105-114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M E. Webb

Safety is a key value in most leading mining companies. Despite years of effort, and significant expense in ‘programs’, operating sites seem to have been left with no real improvement in either the elimination of fatalities or sustained reduction in injuries.Safety systems and processes have grown and evolved, often to the point where they have become overly complicated and marginally useful.MMG Limited, following the consolidation of its Australian operations under a single management structure, undertook a program to effect real and sustained change in its approach to managing safety. The program aimed at improving safety by better engaging its workforce and by making safety processes simple, useful and effective. It defined the role of the supervisor in creating safe work, the role of the people doing work and the role of safe work methods.A safety diagnostic tool was developed to assess site against safety-critical mindsets, behaviours, cultures and systems. The outcome of the diagnostic is considered by the organisation to be the true lead indicator of safety performance.While still a work-in-progress, the program at the Australian Operations of MMG Limited shows that challenging common paradigms in safety management can create real change in safety performance.CITATION:Webb, M E, 2016. Making safety simple, useful and effective, in Proceedings International Mine Management Conference, pp 217-223 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By R M. S Watsford, M Davis

In 2015, MMG Limited commenced further action to improve operating margins and establish a blueprint for future growth in the Australian environment. This action was taken in the context of weakening metal prices and high input costs that arose during the Australian minerals boom.MMG was formed in June 2009 following the purchase of the majority of assets of OZ Minerals Limited by China Minmetals Corporation (CMC) through its subsidiary China Minmetals Non-ferrous Metals Co Ltd (CMN).Since formation MMG has been implementing a business model to deliver a standard way of operating. The overarching purpose of the business model is to enable fast integration of acquired assets to realise improved productivity and performance. CMN established MMG as a vehicle to reach their growth targets through further development or acquisition of mineral assets in jurisdictions external to mainland China.The business model is underpinned by the MMG operating model. The operating model defines how MMG is arranged to deliver the company strategy.This paper describes the application of the operating model to the formation of the Australian operations into a single business unit from multiple stand-alone operating sites. The development and impact of the business model on MMG’s performance is also presented.The extension of the operating model to the Australian operations has led to improvement in safety performance, direct costs and productivity. These improvements have been achieved through reducing duplication, simplification of systems and rapid deployment of improvement initiatives.The successful implementation of the operating model to Australian operations strengthens the platform for further growth. Hence, delivering on the aim of the business model.CITATION:Watsford, R M S and Davis, M, 2016. MMG’s Australian operating model – the implementation, successes and learning, in Proceedings International Mine Management Conference, pp 291-302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Jones, G Corder, A C. Keith

"Sustainable development has become an issue of ever increasing importance to the mining industry. The Ernst & Young (EY) mining industry risk radar regularly shows several sustainability elements in the top ten risks, with social license the number three risk in the 2014/15 survey. This is supported by the Fraser Institute survey results of 2013 showing that 36 per cent of responding companies indicated public opposition had affected their permitting and approvals process.Addressing these issues in a strategic way across a mining business that is then translatable to actions at operational level has remained an elusive goal in the industry. In addition the environment and community issues are commonly viewed as somewhat separate from financial and production issues and as a compliance cost rather than a value add. In their Harvard Business Review paper of 2011, ‘Creating Shared Value’, Porter and Kramer outline changes in thinking required for companies to improve their business sustainably through considering the societal issues impacted by their operations and products. Along the lines of ‘doing more with less’ companies’ value chains can be redefined to reduce energy, transport, water or other resource usage leaving additional resource for societal usage and/or reducing environmental impacts. This paper explores the linking of the holistic Five Capitals-based approach with the creating shared value (CSV) concept to help businesses unleash the benefits of innovation. Previous papers have demonstrated the potential for Five Capitals approach to create strategic value through sustainable development. Building on previous work, this paper provides an overview of the current status of holistic approaches to mine management and presents the application of the CSV concept on an African mine currently undertaking capitals-based strategic planning. The paper also demonstrates the value that has been created through utilising this approach and proposes improvements for changing the way the industry tackles and delivers benefits related to sustainability issues.CITATION:Keith, A C, Corder, G and Jones, M, 2016. Strategic sustainable development – creating shared value in the mining industry, in Proceedings International Mine Management Conference, pp 249-264 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By P J. Fairfield

This paper reflects on the author’s experience working in site-based technical and management roles over a 29 year period, and the past 12 years in internal and external consulting roles. It discusses the author’s experiences and observations of operations management, and the significant value of the technical specialist’s role in providing management with information on what to base tactical decisions, which may or may not be part of a defined strategy.The landscape of mine management changes with the cyclical nature of commodity prices driving operating and capital prudence, as operations change their focus from expansion and growth to staying in the game. The role of the mine manager and management team in navigating through these changing times, attitudes and stages of the project life can influence the success or otherwise of many projects.Technical knowledge is one of the key drivers in realising or destroying the value of a project or operation. As managers focus on people management, management systems and processes, recognising and understanding value in underlying technical knowledge, and getting back to the fundamentals/basics, can be overlooked. In reaction to the fluctuating commodity cycle, managers implement changes through optimisation, fast tracking or parallel streaming, expansion projects and changes in the application of technology. These responses occur against the background of changes in the appetite for risk, acceptance of project uncertainty and changes in personnel which result in a loss of knowledge and experience – often at critical times.This paper shares the author’s experiences and lessons learnt in dealing with and observing these issues. The author questions whether we really understand our projects and are valuing the most important asset, our people and, in particular, the technical specialist and their experience and knowledge.CITATION:Fairfield, P J, 2016. Staying in the game – the importance of engineering-based decisions, in Proceedings International Mine Management Conference, pp 67-74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By G I. Lumley

‘Every mine is a pilot’ is an attitude which encourages the mining paradox of optimistic mine plans and equipment under performance; propped up by an environment lacking accountability. The premise that ‘every mine is a pilot’, appears to underlie the development and operating approach to most mines. It is the hypothesis of this paper that many mining companies, development teams and their managers largely ignore what is done elsewhere. Anecdotally, most planners don’t know whether the selected rates are high or low (rates based on theoretical models tend to be high – certainly higher than what most companies can achieve). Mines then consistently operate the equipment at rates well below targets; often more than 20 per cent below. Further to this paradox, mine performance data demonstrates the average mine is currently operating their equipment at levels of output not much more than half the output of those in the top ten per cent. On the whole mines don’t know the potential of their equipment and therefore don’t put appropriate plans in place to do better. After all, when ‘every mine is a pilot’ there is little reason to look to one’s peers for an indication of potential. This paper will outline why every mine is not a pilot and how mines do value some knowledge, but not as much as they should. This paper proposes a two-pronged approach to address this issue in the area of equipment performance. This approach is to:1. engage in better forecasting of equipment rates and better subsequent performance through benchmarking against industry standards2. provide conditions for more accountability.These parameters are linked and proper implementation of them will address the losses which many shareholders and financiers have incurred when investing in companies with unrealistic mining plans.CITATION:Lumley, G I, 2016. Is every mine a pilot? In Proceedings International Mine Management Conference, pp 75-88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By A G. L Pratt

The record for autonomous haulage systems in underground mining over the past 15 years is patchy, marked by many trials and attempts, with few examples of sustained operation until relatively recently. The drivers for the introduction of this technology are variously listed as the occupational health and safety of people working in underground mines, reductions in direct operating costs and increases in productivity.This paper reviews the trends for operation of semi-autonomous and autonomous haulage achieved by underground mines and the defining features of the technology currently available. The inclusion of autonomous haulage as part of mining studies and the fundamental conditions for its successful application is discussed in the paper. The components required for an autonomous underground haulage system are outlined and the key aspects that need to support its effective implementation are examined together with their associated opportunities and risks. Special note is made of the critical role people, including executive leadership, have in ensuring the successful introduction of this technology.The paper draws on published case study material, equipment supplier information and research findings. The aim is to offer a high-level insight into what is required for the application of autonomous haulage technology and its successful implementation in underground mines.CITATION:Pratt, A G L, 2016. Autonomous haulage systems in underground mining – what is required for success? In Proceedings International Mine Management Conferenc, pp 35-52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016