Search Documents

By A. Moergeli, Philip Sander, John J. Reilly

"Estimating and managing the costs of complex infrastructure projects – in the planning/design and construction phases, for both owners and contractors – has been a challenge for decades. The more complex and technologically advanced the project, the greater the uncertainty, including potential risks that are important to owners and contractors, such as:• Cost risks to owners – meeting budget and schedule, maintaining public credibility.• Cost risks to contractors – profit, consequences of loss, impacts to reputation/future work.This concern has been addressed in various ways by the underground construction industry for some time (Reilly, 2001). In particular, while significant advances have been made in cost estimating for the planning and design phases (Reilly et al., 2004), that are important to agencies and political decision-makers, it is not apparent that these advances have been widely adopted for construction cost estimates. The reasons for this may relate to lowbid considerations – any method that tends to increase the contractor’s cost estimate, by including risk or likely costs, could lead to an erosion of the contractor’s competitive position – if others are not similarly required to include such costs.Different cost estimating methods produce different levels of information. Specifically, there is a large difference in the character and depth of information if a deterministic (quantities times price plus a contingency) and risk-based cost methods are used. It is this difference in character and depth of information that is the reason that risk-based cost estimating has potential value for owners and contractors. Figure 1 presents hypothetical cost results from deterministic and risk-based methods and illustrates some of these differences.In Fig. 1, the results for deterministic and risk-based cost estimates are given related to the potential profit or loss for a typical project. As is evident in this example, there is significant potential for costs to be realized that are higher than the proposal/bid value estimated using a deterministic approach, with a 15 percent probability of a loss. There is a 30 percent probability that the project will have a reduced profit. There is a 55 percent probability that the project will return a good profit. Using a risk-based approach, it is possible to better recognize this potential outcome in the bid phase and, as a consequence, develop a strategy to:"

Apr 1, 2016

By Julio Bonelli Arenas

"El presente artículo señala una metodología de caracterización de minerales de plata que busca separar las fases mineralógicas predominantes de una muestra e identificar las especies minerales en dichas subfases. Luego se necesita completar el balance y la distribución de plata para conocer su comportamiento cinético de respuesta, a diferentes sistemas lixiviantes, de forma que se puede obtener una respuesta integrada de la muestra original al sistema hidrometalúrgico. De otro lado, se comparan las tecnologías innovadas que constituyen el estado del arte en la recuperación de plata, a fin de beneficiar minerales refractarios, residuos de lixiviación y otros materiales mineros donde esté presente la plata metálica y otras especies mineralógicas de este mineral. "

Apr 1, 2016

By P. B. Moran, J. W. Rozelle, J. Forbort

"The Mount Todd gold mine is located approximately 50 km (31 miles) north of the town of Katherine in the Northern Territory (NT) of Australia just off the Stewart Highway, and was operated in the 1990s until 2000 (Fig. 1). After cessation of mining operations, meteoric precipitation and acid rock drainage (ARD) associated with surface water runoff continued to report to the retention ponds across the mine site. In 2000, the mine site entered receivership and the NT government became responsible for the care and maintenance program. In 2006, Vista Gold Corp. (as Vista Gold Australia) acquired the rights to resume exploration on the mine site without the financial responsibility of the environmental liability. In January 2007, Vista Gold assumed the care and maintenance activities on behalf of the NT government, with the environmental liability remaining with the NT government, with the goal of reinitiating mining operations. A critical path component of the planned upgrades to the existing mine/milling facilities and infrastructure was the development of a cost effective treatment and dewatering program for the approximately 11 GL (2,900 million gal) of ARD stored in the Batman Pit (RP3), which has a maximum capacity of approximately 12 GL (3,200 million gal). The Batman Pit must be dewatered in order for Vista Gold to restart mining activities. The Batman Pit Lake had reached a maximum water depth of 104 m (341 ft) when Vista Gold initiated water level monitoring. It is important to note that the ARD water in the Batman Pit has been pumped into it from 2000 to 2012 under an NT government-approved environmental control program.The Batman Pit has virtually no connection to the local ground water regime due to the intensive silicification that accompanied the mineralizing event. In October 2012, just prior to treatment, the pit lake profile was characterized by uniform acidic pH (approximately pH 3.2) and oxic conditions (dissolved oxygen greater than 7 mg/L with depth (Fig. 2). The temperature decreased by approximately 4 °C (39 °F) between the lake surface and approximately 20 m (66 ft) deep, and remained near constant with increasing depth. This temperature difference is believed to be associated with an existing shallow mine bench at approximately 20 m (66 ft) deep around the perimeter of the pit. Similarly, electrical conductivity, an estimate of total dissolved solids, decreased by about 85 microSiemens per centimeter (µS/cm) from 2,800 to 2,715 µS/cm between 10 and 20 m (33 and 66 ft)."

Apr 1, 2016

"From April 22 to 28, the eyes of the tunneling and underground construction world will be on San Francisco, CA, as the world’s most influential underground construction industry leaders gather at the Moscone Center for the 2016 World Tunnel Congress.Recognized as the most important international annual meeting for the industry, the 2016 version comes to the United States for the first time in 20 years and will be hosted by the Underground Construction Association of SME (UCA of SME). The conference will be held in lieu of the UCA’s biennial North American Tunneling Conference and will bring the strengths and resources of the UCA of SME and the International Tunnelling and Underground Space Association (ITA). The result will be a conference with unmatched technical programming and a showcase of more than 200 exhibiting companies.A program committee led by Randy Essex of Mott MacDonald, Lonnie Jacobs of Frontier Kemper Constructors, Michael Mooney, of the Colorado School of Mines, Priscilla Nelson, of the Colorado School of Mines and Amanda Elioff of Parsons Brinkerhoff formed the program committee and worked for more than two years to build the program. The result is four technical sessions with five tracks in each session and 185 oral presentations.“One challenge was the sheer size of the group that would be assembled, perhaps 2,500 attendees or more, and the large number of abstracts we were likely to receive,” said Essex. “ We investigated extending the conference a fourth day, but that was not workable with the Moscone Center. We settled on having five concurrent technical tracks – something that has not been attempted in past NAT or RETC conferences to my knowledge. The next step was to develop suggested session titles that would span the breadth of subjects that would interest conference attendees as well as serve the conference theme.”"

Apr 1, 2016

By Howard Lum, Sergio Valles, John Bednarski, Gordon Enas, Jay Arabshahi

"Water drawn from the Sacramento-San Joaquin Delta provides water supply to 66 percent of California’s population and supports the state’s agriculture industry. The existing through-Delta water system is outdated and unreliable with environmental risk to some fish and wildlife species. The Bay-Delta Conservation Plan (BDCP) has been established to environmentally retrofit and modernize California’s water delivery system through the Delta by restoring habitats, constructing new diversion points in the north Delta and providing a means to transport water supplies under the Delta, rather than through sensitive natural channels.Under BDCP, the Delta Habitat Conservation and Conveyance Program (DHCCP) has developed several alternatives to convey water from the Sacramento River in the north to the existing pumping facilities in the south Delta through an isolated conveyance system. The new conveyance system would become an integral part of the State Water Project (SWP) and the federal Central Valley Project (CVP) by transporting water to the export pumping plants for each of these projects. The DHCCP is managed by the California Department of Water Resources (DWR), while state and federal water contractors provide technical support to the program.The initial conceptual study efforts on the overall program commenced in 2007 and examined various options for the proposed conveyance system. Several conveyance alternatives were analyzed at that time. The Conceptual Engineering Report published on Oct. 1, 2013 identified the modified pipeline/tunnel option (MPTO) as the preferred alternative to be included in the BDCP environmental documents. MPTO includes three river intakes and pump stations along the Sacramento River, various sizes of pipelines and tunnels, junction structures and two forebays that are capable of delivering up to 4 million gpm (9,000 cfs) from the Sacramento River to the SWP and CVP. The river intakes are located near Hood in Sacramento County approximately 64 km (40 miles) from Clifton Court Forebay (CCF) in Contra Costa County. This route would cross portions of Sacramento, San Joaquin and Contra Costa counties. Figure 1 depicts the configuration of the MPTO alternative."

Apr 1, 2016

By William Gleason

"Despite the difficult economic climate for the mining industry, more than 6,300 people joined SME for its 2016 Annual Conference & Expo in Phoenix, AZ, Feb. 21-24.Nearly every commodity has been bruised and battered during the past year, leading to one of the more difficult cycles for the industry in the past decade. Coal has taken some of the hardest hits and other commodities, such as copper and iron ore, have felt the sting of a slower growth in China and an oversupply on the market.The difficult conditions could not be ignored, but they did not deter SME from offering a forum for the industry to share knowledge, network with peers and learn about the best products and practices while visiting the sold-out exhibit hall (844 booths and 627 vendors) or while attending any of the 121 technical sessions that were offered.The current state of the industry was one of the overriding themes of the conference and during the challenging times there are often cutbacks as operations look to become leaner and more efficient, however, there is one area that cannot be cut – health and safety.The conference kicked off with a fascinating presentation from Colonel Mike Mullane, a former NASA astronaut who, in 1978, was selected as a Mission Specialist Astronaut in the first group of space shuttle astronauts. He completed three space missions and logged 356 hours in space aboard the shuttles Discovery and Atlantis before retiring from NASA and the U.S. Air Force in 1990.In his speech to a packed audience, he warned of the dangers of cutting corners to get the job done more quickly by guarding against the “normalization of deviance.”Normalization of deviance is a long-term phenomenon in which individuals or teams repeatedly accept a lower standard of performance until that lower standard becomes the norm. Usually, the acceptance of the lower standard occurs because the individual or team is under pressure (budget, schedule, etc.) and perceives it will be too difficult to adhere to the original higher standard. Their intention may be to revert back to the higher standard when this period of pressure passes. However, by getting away with the deviation from the higher standard, it is likely they will do the same thing when the same stressful circumstances arise again. Over time, the individual/team fails to see their actions as deviant."

Apr 1, 2016

"A commercially available through-the-earth (TTE) communications system was evaluated at an underground coal mine in eastern Kentucky. This field study was conducted as part of a larger multisite evaluation of available TTE systems. The mine detailed in this paper was idled at the time of the study, which provided the nearest practical representation of a postevent mine shutdown environment. For this study, surface-to-underground and undergroundto- surface communications were tested. Standard deployments of the TTE system using the manufacturer’s recommended procedures were able to achieve clear communications between underground and surface locations. Other arrangements of the units yielded mixed results. Future experimentation is planned to further examine the phenomena observed at this mine IntroductionThe ability to establish effective communication between surface and underground personnel after a mine event is essential for both evacuation and rescue efforts. Current wireless underground communication technologies are reliant on intermediary physical infrastructure, such as antennas and repeaters, to enable underground communications. As such, communications are easily disabled during a mine event because of the inherent vulnerabilities to physical damage (Damiano, 2012; National Academy of Engineers, 1970; Yenchek et al., 2011). A true emergency communications system would function regardless of a mine’s physical state. Through-the-earth (TTE) wireless communication technology only requires the use of a single transmitter and a single receiver to achieve point-to-point communication through solid strata. With this capability, TTE systems have the potential to serve as a true emergency communications platform."

Apr 1, 2016

"During his presentation at the 2016 George A. Fox Conference about the history of public-private-partnerships (PPP) in the tunneling and underground construction industries in New York, Vincent Tirolo, Jr., told a story about how, as a young engineer in the late 1960s, he and others pooled money to purchase a calculator for $75 that had the ability to perform sine and cosine functions. That was a big deal in those days and would make their job much easier. Oh how far things have come. Tunnel and underground construction engineers can now virtually map out and plan entire projects before the first shovel ever breaks ground. And the machines that are used to build the tunnels have advanced in ways that could not have been imagined 50 years ago.The calculator is just one example of innovation in the industry and on Jan. 26, more than 400 industry professionals attended the George A. Fox Conference at the Graduate Center of New York (CUNY) to learn more about the next innovations, new tunneling technologies and what the future might hold for the industry. The conference included sessions on contracting models, rescue and fire life safety and new technological developments as well as an international project spotlight presentation from Nasri Munfah about the Eurasia Tunnel, connecting the European and Asian sides of Istanbul, Turkey.The project, also known as the Istanbul Strait Road Tube Crossing project, was named the 2015 Major Tunneling Project of the Year by the International Tunneling and Underground Space Association.The tunnel boring work for the 3,344-m (11,000 ft) long tunnel under the Istanbul Bosphorus Strait was completed in August, heralding a new era in tunneling.Tunnel boring work was launched in April 2014 with a ceremony with then Prime Minister Recep Tayyip Erdogan in attendance. The work was completed on Aug. 22, 2015 with Prime Minister Ahmet Davutoglu participating in the ceremony."

Apr 1, 2016

By Todd Schrauf, James Scott, Mark Smith

"Cyanide heap leaching of gold ores in areas with extremely low winter temperatures requires special considerations to prevent freezing of the leach solution. Factors that impact the solution temperature include ore temperature at the time of stacking and during operation, burial of drip irrigation lines, use of geomembrane covers and heating of the leach solution. Thermodynamic modeling was performed to simulate expected ore and solution temperatures under different operating strategies for Kaminak Gold’s Coffee gold project in the Yukon Territory. Mean monthly temperatures at the site ranged from a low of -22.5 °C (-8.5 °F) to a high of 13.6 °C (56.4 °F), while in situ ore temperatures ranged from -0.5° to about -1.5 °C (31 ° to 29 °F). The modeling results were used to optimize the operational parameters and indicated that a combination of drip line burial and heating of the leach solution during the winter months was required to maintain solution temperatures above freezing during the initial years of stacking, although as the size of the heap increased, heating was no longer necessary.Modeling objectivesThe successful operation of a cyanide heap leach under extremely cold winter temperatures requires the implementation of operational strategies to prevent freezing of the leach solution and the ore within the heap. Thermodynamic modeling of the heap provides the means to quantify the effectiveness of these different operational parameters on maintaining the required operating temperatures to avoid freezing within the heap. The operational parameters that were evaluated with the model included:"

Apr 1, 2016

By E.C. Jong

Resumen ¦ Un sistema de comunicaciones “a través del suelo” (TTE) comercial y disponible fue evaluado en una mina de carbón subterránea en la zona Este del Estado de Kentucky. Este estudio de campo fue realizado como parte de una evaluación multisitio mayor de sistemas TTE disponibles. La mina detallada en este estudio se encontraba paralizada al momento de la evaluación, lo que proporcionó la representación más cercana a la realidad del medio ambiente en una mina luego de una operación de cierre. Para este estudio se probaron las comunicaciones superficie a subterráneo y subterráneo a superficie. El despliegue estándar del sistema TTE usando los procedimientos recomendados por el fabricante logró obtener comunicaciones claras y nítidas entre el socavón y la superficie. Otras disposiciones de las unidades arrojaron resultados mixtos. Existen planes para examinar más los fenómenos observados en esta mina.

Apr 1, 2016

By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P McCarthy

"This paper is based on 30 years of involvement in feasibility studies as a participant, study manager and the leader of a firm that provides study components and overall study management. The following topics are discussed:the purpose of feasibility studiesaligning the goals of the study team with those of the ownerthe difference between optimisation and designhow the types and levels of studies affect the organisation of the studythe relative merits of various management structures and contractual arrangementssetting scopes of work and tendering the work outthe selection of a study manager and the study management teamcommunications within the study team and externallythe project management trianglemanaging scope changes and maintaining flexibility to respond to study findingsprogress paymentsmanaging a study crisisinnovation, risk aversion and bankabilityreporting the resultsthe dangers and benefits of value engineering.CITATION:McCarthy, P, 2016. Making studies work – organisation, communication and management, in Proceedings Project Evaluation 2016, pp 20–30 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By A A. Roberts, R F. Dewhirst

"Extensive literature surveys, research in the project environment and personal experiences both within and consulting to project teams have revealed some consistent ‘people factors’ that contribute most to ultimate project success. Outside of purely technical and business case issues, there are a small number of leadership characteristics – probably only ten – that if correctly applied can positively leverage a team’s impact on project success.Of the top seven project success characteristics that were consistently highly rated in a recent study, five of them were around leadership. The authors have focused on this topic, noting that good leaders need to display the following traits:passionate commitment to deliveryconsistent modelling and reinforcement of correct values and behaviourfocus on managing relationships well and energising teams and individualscarefully clarifying project vision from front-end loading stages onwardseffective decision making.Not every project manager can and does practise these behaviours all of the time, but being aware of them and receiving training or facilitation in improving their application of these skills can equip project managers with the essential tools to markedly improve their own performance and that of their teams.This paper draws upon experiences in the field and provides lessons – both good and bad – to illustrate. As well as examining leadership traits, the way in which a leader can establish, organise, motivate his or her team and ultimately lead them to success is examined. The paper shares methodologies that have been successfully used to track status within a team and generate appropriate recovery plans where required.In particular, the paper will examine a case study based on an amalgamation of real project issues in some challenging situations using virtual teams (ie physically distant teams located in different centres) to illustrate the importance of strong and positive leadership in achieving success across geographies, time zones and languages.CITATION:Roberts, A A and Dewhirst, R F, 2016. Leadership in projects – a recipe for success, in Proceedings Project Evaluation 2016, pp 49–58 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By B E. Hall, D B. Kahler

"'Optimisation' has become a catchcry among many mining companies looking to tell the market how mining businesses will be improved and shareholder value increased. Consequently, the term 'optimisation' has been adopted by many service providers as they look to assist mining companies in achieving their objectives. But the explosion of services and products being offered with the label 'optimisation' has created some confusion. Mining companies ask for help in 'optimising' and service providers offer their assistance because they have a product that has the word 'optimisation' in its title. This is of course an over-simplification, but not by much! The authors' discussions in recent years with both mining companies and service providers have uncovered a number of very different definitions of optimisation.This paper provides a framework for identifying the scope and approach of different mining optimisation products and services, particularly the distinction between optimisation of components of the operation and the business as a whole. The different types of business optimisation are discussed, highlighting the failings of the mining industry's typical approach of strategy selection (as opposed to strategy optimisation). Mining business optimisation is discussed as a wicked problem, with the implication of this on how strategy optimisation models should be used and what the objectives of a business optimisation study should be.Case studies are also included to illustrate how fully flexible strategy optimisation models have been applied to assist decision-makers understand the impacts of changes in one part of the operation on the whole mining and treatment process, from geological models to the sale of product to customers.CITATION:Kahler, D B and Hall, B E, 2016. Strategic decision-making in mining – business optimisation using flexible evaluation models, in Proceedings Project Evaluation 2016, pp 215–225 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P J. Fairfield

"This paper reflects on the author’s experiences in undertaking mining studies and reviewing mining projects and technical reports, particularly over the past five years, and the impact of recent changes in reporting standards and listing requirements pertaining to mining-related evaluation and valuation exercises. It also discusses contemporary changes in the expectations of the investment community and the implications for the role of the technical specialist in providing advice to such stakeholders.Not for the first time in history, the resources industry has experienced a significant downturn after a period of strong, sustained growth in line with the traditional view of the cyclical nature of commodity markets. The resource industry is currently faced with capital austerity in the wake of projects ‘failing’ (not delivering to expectations). In response, the industry has experienced changes in investment behaviour (slowing of investment) and an increasing regulatory burden as stakeholders seek a greater understanding of mining project risks.This paper discusses this response and uses case studies to highlight the key learnings (perhaps re-learnt) by the industry. It also discusses the challenges faced by technical specialists in communicating the results of technical and valuation studies to the investment community.As investors seek to take advantage of the current stage in the investment cycle, the key challenge of the technical specialist is to effectively communicate the uncertainty in technical assumptions, risks and opportunities that drive project value.CITATION:Fairfield, P J, 2016. Managing expectations – from buyer beware to buyer be aware, in Proceedings Project Evaluation 2016, pp 66–74 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D J. Logan, J Jackson

"As of 1 December 2014, the 2012 edition of the JORC Code requires Ore Reserves to be defined by studies at the pre-feasibility or feasibility level. This paper examines how the pathway for most mining developments is determined in the Pre-Feasibility Study and how a trade-off must be made between the need to make the best decision, the constraints of limited time and resources, and the level of the project’s accuracy and uncertainty in terms of value. Issues considered include framing the scope of the study, planning for robust decision-making and ensuring effective communication between the diverse disciplines within the team.An inherent conflict exists between the immediate value added to a mining business from an increase in ore reserves resulting from a ‘quick’ Pre-Feasibility Study and the long-term value of pursuing a development strategy based on proper investigation and evaluation of the options. Recognition and resolution of this conflict is necessary if a project is to progress into future development stages, both in a timely manner and with the optimal development alternative and strategy.The challenge for project developers and those conducting the Pre-Feasibility Study is to understand what the key deliverables are (ie an Ore Reserve statement, option selection, business evaluation, forward work plan or risks) and how to follow good practice to ensure that these deliver value.CITATION:Logan, D J and Jackson, J, 2016. The pre-feasibility study – big choices, little time, in Proceedings Project Evaluation 2016, pp 122–132 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By A M. Ebbels

"Underground mine scheduling decision-making has been based on production requirements, equipment productivities and the mine planner’s instincts on the best scheduling strategy for the mine to optimise the net present value (NPV) of a project.In the last few years, innovative software has been developed to optimise underground schedules based on NPV. The schedule optimisation tool (SOT) allows the user to set up scenarios based on grade, metal content, capital and operating costs.This paper discusses the results of two case studies undertaken using the SOT software to optimise the NPV of the projects.In each case study, the SOT software has been applied in two ways:using the original mine planner’s scenario and determining whether the NPV could be improved by changing resource capacitieschanging the scheduling goals to determine whether a different mining strategy would have a better NPV outcome.The outcomes of the case studies demonstrate that the mine layout and design were contributing factors to the overall improvement of the NPV and that SOT has a more noticeable impact on the NPV of projects where less sequence constraints are required, such as geotechnical sequencing and access development.CITATION:Ebbels, A M, 2016. Optimising underground mining strategies, in Proceedings Project Evaluation 2016, pp 60–65 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M A. Noppé

"Investors and other stakeholders assessing the risk, opportunity and relative value associated with a resource project need to appreciate the project in its correct context. Errors, omissions, biased reporting or conflicting information in project reporting may lead to a misinterpretation of technical and financial results, resulting in biased estimates or assumptions on project value.This paper provides a simple ‘Resource Project Framework’ for presenting a project’s status that may be readily benchmarked against other similar projects and to illustrate the stages required to advance the project outcomes to higher levels of certainty. The framework draws on definitions and guidelines readily available in various resource industry reporting codes and public company reporting requirements.The framework assesses three key areas for placing a resource project in its correct relative context, namely:the project development stagethe confidence in the Exploration Results, Mineral Resources and/or Ore Reservesthe level of accuracy, precision and confidence in the technical and economic studies supporting the reported results or options for the project.The application of the Resource Project Framework is illustrated using two project examples, one from publicly reported company project releases and the other for two development projects.CITATION:Noppé, M A, 2016. A framework for presenting and benchmarking resource projects, in Proceedings Project Evaluation 2016, pp 260–274 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016