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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

This paper will provide an overview of the coal mining industry operating in the Wollongong area, covering: the history and heritage of mining in the Illawarra region;unique features affecting mining in the region û opportunities and threats;current mining operations in the area;challenges facing coal mining in the region, including managing environmental impacts and seeking community support for mining approvals; andthe future for coal mining in the region. The paper aims to showcase the size and history of the coal mining industry around Wollongong and to emphasise the specific benefits and challenges that are faced by companies operating coal mines in such close proximity to urban and environmentally sensitive areas.

Jan 1, 2008

By Jardine G, Woodall C

The Henty Gold Mine, located in Western lasiuania use, uuiusatise solutions to effectively manage a mining operation in an environmentally sensitive setting and has been presented with several environmental awards. Fill is required as part of the mining method to provide passive ground support, minimise rock exposure and ensure maximum recovery of the small but high-grade orebody. The use of the whole portion of leach residue in the backfill reduces the surface tailing disposal requirements. Therefore, High Density Paste Fill (HDPF) has been selected as the most appropriate fill method to meet these objectives. Additional benefits include the minimisation of excess water from fill and the subsequent need for the collection and treatment of water and slimes. There are minimal equipment requirements during placement, thereby optimising mine resources for production. The initial paste fill design was based on the Bad Grund and Ranunelsberg Mines paste fill systems of Preussag in Germany and comprised pumping filtered tailings paste some 1.2 kin uphill from the mill to the mine portal, where cement was to be added before being distributed underground. The system was designed following initial testwork that was undertaken on a bulk sample of ore mined from the scar surface Sill Zone. Subsequently, during the mining of the Zone 96 orehody, it was found that there were significant mineralogical variations in the composition of the ore mined. Following processing, the resultant Icach residue caused significant changes in the paste rheology and therefore the pump and flow characteristics. An alternative solution was implemented that involved the use of agitator trucks to transport the cemented paste to the portal. This required modifications to the fill preparation system and also the underground distribution system. Laboratory strength tests of the HDPF using actual gold plant leach residue showed low early strengths were attained with HDPF containing only filtered leach residue. Therefore, high binder addition rates or an increase in the fill cycle time would be required to allow the fill to gain sufficient strength. A considerable amount of potentially acid generating waste rock also requires underground disposal. By blending the waste rock with the HDPF, the strengths were improved and the required cement addition rate reduced by about one-half. The potentially acid funning waste rock is encapsulated in the highly alkaline cemented paste, minimising the potential for acid generation.

Jan 1, 1998

The paper is introduced by some general comments on the Electrolytic Zinc Company West Coast Mines operations. An outline of the geology of the Rosebery Mine orebodies preced- es a resume of the mining methods used prior to the current mechanization programme. The reasons for the introduction of longhole stoping techniques are given together with a brief explanation of both sublevel longhole and longhole stoping methods. The application of remotely controlled loaders within these stoping methods is discussed. A description of the remote control mechanisms, used on Atlas Copco 310 and 511 Cavo loaders, is followed by comments on these mechanisms from both a maintenance and production viewpoint. A summary of perform- ance statistics and operator safety records vindicate the selection of remotely controlled loaders for the longhole stoping areas at Rosebery Mine.

Jan 1, 1977

Samples weighing 0·5 g are fused with potassium hydrogen sulphate, leached with 4 ml. of 4 M nitric acid and diluted to 10 ml. with water. An aliquot of the clear solution is treated with EDTA, adjusted with ammonia to give a pH value between 5 and 6 treated with cyanide, ammonia, and sodium diethyldithiocarbamate then bismuth diethyldithiocarbamate is extracted with chloroform and the yellow colour is compared visually with a standard series. Alternatively, the bismuth complex may be filtered on a "Millipore" filter and subjected to x-ray fluorescence spectrometry.

Jan 1, 1971

Indigenous brown coals, which provide a readily available primary energy source, have played a significant part in the industrial development of Victoria. The deposits located in the Latrobe Valley compare in extent with other major deposits of brown coal in the world. Smaller but valuable deposits occur at Stradbroke, Gelliondale, Anglesea and Bacchus Marsh. Extensive drilling, aided by geophysical surveys, and detailed analyses of coal samples, have enabled the extent and quality of these Tertiary deposits to be Defined.

Jan 1, 1979

By J E. Everett, M L. James

When iron ore is crushed and split into lump and fines components, there are systematic differences between the lump and fines grades. Generally the lump product is richer in iron and lower in the other minerals, compared to the fines product. The grade differences between lump and fines, together with the lump percentage, are referred to as the ælump algorithmÆ. Mine estimates of grade, based on exploration or blasthole drilling, relate to head grade. The ælump algorithmÆ predicts lump and fines product grades from the head grade. This knowledge is important when developing mine plans. Different ore types can be expected to have systematically different lump algorithms. Previously, lump algorithms for specific ore types have been estimated by running the crusher with a single ore type over a sample period. This method is costly, interferes with production, and yields results of limited statistical power. It has been found that weighted-least-squares (WLS) multiple regression can be used to ascribe lump algorithms to different ore types, provided sample periods have sufficiently varied ore type mixes. This study discusses the method and its application to the analysis of Mining Area C crusher production records to estimate the separate lump algorithms, which could be applied to the different ore types. The analysis has enabled the set up of lump algorithms in the production system, to improve the grade control of lump and fines product. Some other relevant applications of the WLS multiple regression approach are also considered.

Jan 1, 2005

By M K. Singh

Mining is nothing but an art - besides being a science - of extracting valuable minerals from the womb of the mother earth. In this gigantic task, a large number of machinery and equipment are employed judiciously. Wire ropes play a vital role in lifting or hoisting men and materials under hostile/adverse working conditions and constitute a major item of investment on machinery/equipment. The economy of using a wire rope is a concern for engineers, users and the planners. The economic use of wire ropes for mining purposes largely depends on the following factors;Mechanical design considerations - which include tensile strength of wires, elasticity, resistance to abrasion and crushing, fatigue values, static and dynamic loads on wire ropes, factor of safety, fleet angle, etc. Metallurgical consideration - Composition and heat treatment of wire materials, defects like inclusions and voids, surface quality factor, lubrications, micro structural parameters. Operational consideration - Seizing and cutting of rope, storage, care and maintenance, cutting back, etc. Environmental consideration - Temperature and humidity, pit condition, dust, corrosive atmosphere, etc. In the present paper, an attempt will be made to suggest steps for achieving optimum economy while using the wire ropes for extraction of precious minerals and coal keeping in view the points noted earlier. Once technical viability is established, economy is the ultimate consideration for an industry for safe hoisting of men and material.

Jan 1, 2000

THE slide-rule, as a quick and convenient instrument for performing approximate calculations, is steadily growing more and more into favour with the engineer, and results obtained by it are considered close enough to enable him to satisfactorily dealwith a considerable portion of his work. To the surveyor, however, whose ordinary computations must be as precise as his measurements, the present makes of rule are insufficient, except for a very narrow margin of the scales and for rough work. Few will carry the rule when they can clearly see that it is unreliable for general routine, and the careful surveyor is inclined to look askance at those who do use it, recognizing the temptation there undtmbtedly must be to push it into work that the log book should be called upon to treat. From the fact that a surveyor's duties take him on the surface in all weathers, and underground in many wet and uncomfortable places, where the manipulation of a book of mathematical tables becomes both awkward and patience-trying, an efficient slide-rule must offer the mbst transparent advantages. Again, a surveyor being specially trained to read divided scales quickly and accurately, the slide-rule must commend itself as an apt addition to his outfit.

Jan 1, 1912

Drill and blast operations account for 12 - 15 per cent of total mining costs. This paper looks at a comparison between electronic detonators and non-electric detonators, focusing on the cost benefits associated with the high precision of the timing sequences of electronic detonators. An analysis of the total mining costs was made on two main case studies; one on a quarry in South Australia (Martin, 2007) and the other on a project undertaken at Sunrise Dam (Vaughan et al, 2007). The criteria used in the analysis included; the resulting fragmentation, a vibration analysis, crusher throughput and productivity analysis such as excavator cycle times, dig rates of the excavator and bucket fill factor. The results indicate that there were consistent production improvements and hence reductions in total mining costs attributed to the use of electric detonators. An increase in the degree of fragmentation gives lower crushing costs as more material passes through as undersize. This reduces truck delay time at the crusher, which in turn gives higher truck and shovels productivity as well as higher dig rates for the excavators.

Jan 1, 2008

By C Bartle

In many operations the use of less electrochemically reactive grinding media in the first grinding stage (for example, rod milling and high aspect ratio SAG milling) is rarely considered. Therefore, in reality a plant may inadvertently be using a 'mixed' media charge. That is, whilst employing inert grinding media during secondary grinding, electrochemically active forged steel grinding media may be used in the primary grinding stage. This paper discusses the impact of such a circuit on the pulp chemistry and flotation response of a refractory gold ore. The Wiluna concentrator has two grinding circuits operating in parallel. Line 1 operates a single ball mill in closed circuit with cyclones, and utilises high chrome grinding media, while the second circuit (Line 2) consists of a rod mill (with forged steel rods) in series with a ball mill, which also utilises high chrome grinding media. The cyclone overflows from both circuits are combined to feed a sulfide flotation circuit. Pulp chemistry surveys were completed around both grinding circuits, and laboratory flotation tests were conducted on the cyclone overflows. The results demonstrate clearly that the rod mill/ball mill circuit operated at significantly lower Eh and dissolved oxygen values, while the percentage EDTA extractable iron was considerably higher, when compared to the single stage ball milling circuit. These variations in pulp chemistry had a marked negative impact on the laboratory rougher flotation response, and suggests that plant performance may be affected.

Jan 1, 2008

By B Yang, S M. Aminossadati

Transporting coal by means of conveyor belts is very common in Australian underground coal mines. Major conveyor belt-related mining incidents are now relatively infrequent as a result of recent improvements in engineering standards and use of fire-resistance materials. However, conveyor belts have the potential for incidents capable of causing either personal or structural damage. In addition, any unexpected break down of rolling components or failure of belts creates a significant interruption to the production that is a major concern for operators whose responsibility is to achieve the optimum mining production.Currently, underground coal conveyor belts are examined for the presence of any overheating, smouldering or unsafe conditions likely to cause a fire. Periodic inspection of operating conveyor belts is carried out with the aim of detecting any local heat sources in an early stage. This includes temperature measurements of the driving head, idlers and rollers using hand-held temperature sensors such as infrared cameras or laser temperature sensors. The disadvantages of current conveyor belt temperature monitoring systems include high labour and equipment costs, safety risk to personnel who are in close proximity to moving conveyors, the ability to take line of site measurements only and potential for missed overheated idlers. Some of the conveyor idlers in underground coal operations cannot be accessed for traditional temperature measurements. This introduces a significant risk to the operation of critical infrastructure.A distributed temperature sensing (DTS) system can be used to develop an advanced conveyor belt temperature monitoring system that provides real-time, accurate and continuous temperature measurements along a conveyor belt particularly at the rolling components. The DTS system comprises of fibre optic detection cable, DTS controller and interfacing module. The advantages of the system include the accuracy, low-cost, easy installation, robustness, safety, immunity to radio frequency and electromagnetic interference, real-time data collection, and secure data transmission. This paper presents a scoping study on the development and utilisation of a fibre optic-based DTS system for underground coal conveyor belts. The mechanism of heat generation, the operation temperature range and the installation issues of fibre optic cable along the conveyor belt particularly in close proximity to each end of the spindle on every idler will be discussed.CITATION:Aminossadati, S M and Yang, B, 2013. A scoping study on fibre optic-based temperature monitoring of underground coal conveyor belts, in Proceedings The Australian Mine Ventilation Conference , pp 35-42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By Nye P. B, Fisher N. H

At the second Empire Mining and Metallurgical Congress held in 1927, the Empire Council of Mining and Metallurgical Institutions was formed and it was proposed that the Council take steps to prepare a "Review of the Mineral Resources and Industries of the Empire." At the third congress in 1930, it was resolved that the proposal to institute the review should be submitted to the Imperial Conference held in 1930. This was done, and the Minerals Committee, of the Imperial Economic Committee compiled, an interimreport which was based on statistics of imports and exports, and did not consider resources and consumption.In 1942 the Institution of Mining and Metallurgy, London, wrote to the Empire Council and stated that it was desirable that the Council should be in a position to take part in decisions affecting the future of the mining and metallurgical industries. The Council communicated with the constituent Institutions regarding the nominations of two members then in England. Subsequently the Mining, Geological and Metallurgical ,Institute of India prepared a review of the mineral resources and industries of India and their post-war development, and the Empire Council forwarded a copy to the Australasian Institute of Mining and Metallurgy and asked if that Institute would submit a review on simjIar lines for Australia. The Australasian Institute arranged that the Australian review should be prepared by...

Jan 1, 1946

By J Wallis

The stability of a raise bore is often assessed using the rock mass classification system published by McCracken and Stacey as a modification of the Q system. Often the assessment is done using a spreadsheet to manipulate geotechnical log(s) of boreholes. This paper discusses the inherent difficulties with this approach. Recent work by others to provide guidelines to the classification system is discussed. A recent example of the design and raise bore performance at Macraes Gold Mine, New Zealand is presented. A key issue is that a visual assessment of the drill core and/or core photographs is necessary to æground-truthÆ the classification.

Jan 1, 2008

By M C. Evans

"Mine decommissioning is the final phase in a mining project. Planning for decommissioning must commence for a proposed mine even before the government approves it. Queensland mining approvals require proponents to commit to completion (or closure) criteria defining successful rehabilitation. Queensland mining project statutory environmental authorities must also specify how progressive rehabilitation is to occur throughout the mining project. Final landforms with graded banks together with creek and run-off diversions are often required and constructed early in the life of a mining project. At closure, mining projects must demonstrate that future medium-term risks are not significant, or failing this, a residual risk financial payment must be made to the state. CSIRO climate change projections indicate that Queensland is likely to become warmer this century with less rainfall in parts and with extreme rainfall events likely to occur more frequently. This project was undertaken to?determine: if current rehabilitation planning tools assist in determining the environmental risks from mining closure not adequately addressing climate change if these risks are addressed by current rehabilitation outcomes.The north-west Queensland mining region and the central Queensland coalfields were represented in this project by five study sites. Local data sets for temperature, rainfall and rainfall intensity were produced using conservative greenhouse gas emission scenarios representing likely future atmospheres, and using the SimCLIM climate model, Evaporation data sets were also derived from available climate parameters. These projected climate variables supported equations and models used in Queensland to determine mining project rehabilitation completion criteria. Storm intensities and return intervals were directly applied to assess the likelihood of failure of engineered structures such as stormwater diversions and banks. Plant cover change determined by an existing growth model together with rainfall intensity and changes in the R and C factors of the universal soil loss equation (USLE) erosion model enabled estimates of long-term erosion rates. Flood estimates were undertaken using regional rated catchments.The study found that stormwater diversions and banks on recontoured rehabilitated landforms, if constructed to currently accepted completion criteria, would likely fail within 30 years and with the likelihood of failure steadily increasing thereafter. The change in likelihood of failure was able to be estimated and could be applied to the determination of residual environmental risk for approval of a surrender application involving rehabilitation. The USLE model showed that long-term erosion rates increased as a consequence of climate change from north to south across the Queensland mining precincts. Because the growth model did not consider carbon dioxide fertilisation affects, results would likely be worse-case.Likely climate change outcomes have consequential residual environmental risks of mining project rehabilitation failure. This increased risk may result in increased payments to the state from mining projects where high consequences exist. The liability to the state and risk to the environment can be avoided if today’s completion criteria address tomorrow’s climate change impacts.CITATION:Evans, M C, 2014. Queensland mines should consider climate change impacts for decommissioning, in Proceedings Life-of-Mine 2014, pp 535–562 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 16, 2014

Optimum selection of explosives by means of monitoring explosive performance can lead to increased profitability through the control of fragmentation, a reduction in hangingwall and footwall damage and overall drill and blast costs. Studies conducted at the Mount Lyell Mining and Railway Company underground copper mine evaluated in situ the performance of four explosive types. Measurements included monitoring the levels of induced shock energy and the attenuation thereof with distance. The velocity of detonation (VOD) of these explosives was also measured using in-hole techniques. Assessment of these results, together with a knowledge of the rock mass strength, facilitated the selection of an explosive that was best suited to the given rock mass conditions.

Jan 1, 1995

Sustainable development places a heavy burden upon everyone involved in the public policy debate, about how to balance economic growth and environmental protection. We must treat that responsibility very seriously indeed. The mining industry especially cannot dodge the responsibility, even if it wished to.

Jan 1, 1992

BlIP Minerals is a large, diversified, international mineral producer. This paper describes the company's operating strategy, and identifies the role of mineral processing in this strategy through three examples: the column flotation installation at Escondida in Chile, the leach-SX-electrowinning plant, proposed for Escondida, and the whole-ore roasting process being constructed for the Syama gold operation in Mali. It is concluded that the application of appropriate and sometimes novel mineral processing technologies can achieve significant benefits in reduced operating cost, improved product quality, and in some cases the exploitation of previously uneconomic deposits, thereby providing strategic advantages to the company.

Jan 1, 1993

By Schulz R. S, Staunton W. P, McGuire J

The increased activity in the Australian gold industry over the last decade has resulted in a concomitant increase in the use of sodium cyanide, with a projected consumption of 80,000 tonnes per annum by 1991. Growing environmental awareness by government, industry and the public has generated increased interest in the fate of cyanide near gold mine tailings dams and has highlighted the lack of basic knowledge in this area, particularly for Australian conditions.

Jan 1, 1991

Scheduling mine development and underground construction has been the bane of most mine managersÆ lives at one time or another. Even though scheduling software has developed significantly over the last 20 years, mining projects continue to take far longer than expected to complete. It would appear that possession of a gleaming 1000 activity bar chart generated by the latest project management software and plotted in multiple colours offers no guarantee at all that any of those 1000 activities will be completed on time, let alone the project as a whole. The author has earned his æmasters in disastersÆ with more than one project running over time and budget. This paper describes some of his experiences in scheduling major mine development and construction projects and the lessons he has learnt along the way. In particular, the paper examines a range of key issues that mine schedulers must take into account when planning mining projects. The paper also examines the development of scheduling software and particular advance rates used in scheduling mine development projects in Australia.

Jan 1, 2000