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By S Dirdjosuwondo, R Plaisance, L Thoma

PT Freeport Indonesia, a subsidiary of New Orleans-based Freeport McMoran Copper and Gold of New Orleans, operates a large mining complex on the Western half of the Island of New Guinea in Tembagapura, Irian Jaya, Indonesia. The IOZ (Intermediate Ore Zone) mine, one of the underground orebodies, is mined by block caving. The area affected by the cave collects a large quantity of rain and ground waters mixing with fine rock particles. The mixture, commonly called æwet muckÆ, sometimes spills into drawpoints and makes the working environment hazardous to the loader operators. Wet muck is observed in an increasing number of drawpoints in the IOZ mine and remote LHD (Load-Haul-Dump) technology has been implemented to handle the ore. The driving force for this automation project has been the safety of the loader operators. The system has been developed mainly in-house and incorporates state-of-the-art features. Up to eight remote loaders and nine rock breakers are controlled from an underground control room located approximately 400 metres from the active extraction panels. The two underground crushers and nine conveyor feeders are also operated remotely from an adjacent control room. The development of FreeportÆs remote system has taken time and considerable effort. Not only the success of the IOZ mine was at stake but also the fulfillment of environmental commitments pertaining to the mill tailings. Approximately eight per cent of the mill feed must come from underground skarn deposits to neutralise the acid-generating tailings generated by the huge Grasberg open pit ores.

Jan 1, 2000

By D Kavanagh, C Michaud

"A continuous improvement initiative was identified at Kalgoorlie Consolidated Gold Mine’s (KCGM) Fimiston open pit with the goal of reducing bench turnover time and increasing shovel digability by improving fragmentation around previously mined-out stopes. In the past, a higher number of blasts than normal would be required to get through a single excavation area where stopes were present. This is due to the limited reach capability of the drilling fleet from safe ground into restricted areas requiring the drilling of the shot to be done in a staged manner. In addition, the holes that were able to be drilled in the area did not remain open long enough to be loaded with explosives as a result of the poor ground conditions surrounding the stopes.Over the last 18 months, KCGM has trialled drill additives to improve blasthole stability, as well as introducing a remote drill rig allowing holes to be drilled in areas previously inaccessible by manned drill rigs. This has resulted in improved penetration rates in bad ground conditions, improved drill hole stability, better shovel digability, and an overall reduction in bench turnover of at least ten days on the benchmarked 126 days average per bench. KCGM is now in the final stages of the improvement project with the installation of a drill monitoring system on the fleet to allow live data transfer back to the office for analysis, as well as providing improved accuracy on drill holes in restricted areas.Citation:Michaud, C and Kavanagh, D, 2016. Reducing Bench Turnover Time and Improving Shovel Digability, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 19–27 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By D Kilkenny

Underground contractors in the mining industry must be prepared to take a position at the forefront of innovation of equipment and work methods in order to maintain a competitive advantage over in-house operations and remain relevant. Innovative concepts such as split-feed development jumbos, high capacity trucks and loader guidance systems were implemented by contractors to stay ahead of ‘the pack’. All of these are now common across the industry.The demands of regular participation in competitive tendering coupled with aggressive fleet depreciation, means contractors tend to have more communication and opportunities to work with equipment suppliers than mine owners. Therefore, they are more likely to influence equipment design and product directions. They also have a unique opportunity to assist in trialling new concepts and technologies across a wide variety of operating conditions rather than being restricted to one mine.In addition, as a ‘guest’ on a mine site, mining contractors do not have the luxury of creating the environment for their preferred systems, rather they must have the capacity to adapt their technology to suit the offered environment at a particular mine. This leads to a pursuit of adaptive technologies that can be implemented selectively and seamlessly without excessive disturbance rather than ‘all-of-mine’ systems. These incremental innovations then become available for use across the mining industry where they can add value as ‘bolt-on systems’ to existing operations.Mining contractors, therefore, act as the bellwether for industry practices and equipment. However, in order to maintain their position they must engage industry stakeholders to deliver practical, innovative and cost-effective technologies that add value and result in an improved bottom line for all. This paper uses case study material to illustrate how the Byrnecut Group has approached innovation and how the theory of Disruptive Technology applies to underground mining innovation.CITATION:Kilkenny, D, 2017. Innovation in mining – a contractor’s role, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 59–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By S Döpp

Commencing with early experiences in iron ore beneficiation made at Beeshoek Mine, the paper follows through the process of extensive mineralogical and metallurgical investigations carried out during feasibility study. The paper will discuss the design process and logic followed over the last years, the challenges and decisions the design team faced in order to draw the conclusions that ultimately resulted in today’s value add approach at Assmang’s Khumani Operations.As integral part of the benefi ciation concept, a focus is set on the jigs, explaining the plant concepts, planned expansions and their contribution to the overall value add approach at the mine.The case study is intended to describe the outcomes of the design versus the actual achieved and the further value add projects to be implemented. As for future prospect, the incorporation of Wet High Intensity Magnetic Separation (WHIMS) demonstrates Assmang Khumani’s pursuit to maximise productivity and overall recovery.DMS was evaluated as an alternative to jigging within a comparative test work study, but in conclusion the option had to be excluded due to its inability to achieve the high density cut point required to achieve the sales specifi cations. In contrast, the investigation on producing an additional middlings fraction on the lumpy ore jigs prove to be an adequate option for further improvements of overall mass yield. With further liberation, a saleable product will be achieved by secondary beneficiation on Fines Jigs and WHIMS.Concluding, jigs are considered the most viable and cost effective benefi ciation process for off-grade ore +0.8 - 32 mm at Beeshoek as well as at Khumani, while WHIMS is the process under consideration for super fines recovery.

Jul 11, 2011

By I Lourel

In evaluating the installation of an in-pit crushing and conveying (IPCC) system for any mine, a number of options are available for each of the dig side, transport and dump side operations. Some of them are moreappropriate than others; given the pit arrangement, the material being handled and the rates at which it needs to be moved. This paper seeks to document the options that might be employed, and to rank them in terms of their applicability at any mine and their practicality overall, with a view to nominating those that would be most suitable for further study.

Jan 1, 2009

By C Harwood, EáWestman, K Luxbacher

Testing of in situ seals in underground coal mines is critical to determine seal integrity and to provide safe working conditions. In the wake of the 2006 Sago Mine explosion, the United States of America (USA) promulgated the Mine Improvement and New Emergency Response (MINER) Act (USDOL, 2006) which required mines to install 827 kPa (120 psi) rated seals or monitor and maintain the atmosphere behind existing 345 kPa (50 psi) seals. The purpose of developing the regulations was to prevent the breaching of seals in the event of an explosion in the sealed area.While seal design and construction is carefully regulated in practice, the construction of seals is difficult to monitor, as many are constructed under various mine conditions and the methods rely on prescribed placement of the seal material. Further examination of installed seals is limited to two-dimensional visual inspection and atmospheric and convergence measuring devices. These methods do not accurately reflect the integrity of the seal and cannot detect changes, deterioration, or defects within the seal.If detection of defects, deterioration and damage is not possible, unexpected communication between the active and sealed areas may result. Additionally, the ability of the seal to withstand explosions may be compromised. Non-destructive testing (NDT) of underground mine seals is necessary to investigate if the seal properties have been altered and if the seal remains functional as a barrier between active areas and sealed areas of the mine. This paper gives a preliminary assessment of proposed NDT methods for seal evaluation using radio frequency (RF) technologies and tracer gas methods.CITATION:Harwood, C, Luxbacher, K and Westman, E, 2013. Non-destructive testing of in situ underground mine seals - Initial technology assessment, in Proceedings The Australian Mine Ventilation Conference , pp 299-306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By P Trout, B Macaulay

Ridgeway Gold Mine (RGM) is an underground sublevel caving (SLC) operation that is owned and managed by Newcrest Mining Limited (NML). Production drill and blast practices are critical to the success of the SLC method at RGM. SLC production ring precharging was introduced in November 2001 to enhance these practices and deliver safety, productivity and cost improvements. Current precharging practices require up to two rings to be loaded ahead of the ring to be blasted in each drawpoint. The explosive may be required to remain in the up-holes for periods of four weeks or more prior to blasting. During this æsleepÆ time it is subjected to repeated shock from the blasting ofadjacent rings and from rings in adjacent drawpoints. The project described in this paper was designed to gain an understanding of the factors affecting explosive performance in the precharging environment and to develop explosive products and operating practices that would meet RGMÆs requirements in terms ofsaf ety, reliability and blast outcomes. Several months oflaboratory and field testing were required to characterise the explosive and quantify the effect of post-loading blasting shock. These results were used to determine the most appropriate loading and sleep time criteria for RGMÆs precharging practices. In addition, the information is being used to guide the development of the next generation of emulsion explosives for use in underground precharging operations.

Jan 1, 2005

It is possible to closely simulate the product sizing distribution from an industrial rod mill by the correct choice of parameters in laboratory batch milling. For laboratory batch rod milling, changes in per cent critical speed and per cent rod volume cause the product sizing distributions to move in parallel at a constant slope. For ball milling, larger sized media in batch milling grind more coarse material giving a closer simulation to the industrial rod mill product. Changing the feed size distribution by removal of coarse particles or addition of fine particles changes the product sizing distribution, but would not normally be practiced in laboratory testing. These data should be applicable to many instances where laboratory simulation of an industrial product size distribution is required.

Jan 1, 1998

By MáAndrusiewicz, M M. Hilden, M S. Powell, P D. Kay, B Foggiatto

Circuits with unconventional and potentially more complex designs are predicted to become more common in the future as plant designers and operators look to process ores more efficiently. Ideas have been presented on how circuit design may be changed to utilise todayÆs technology to address tomorrowÆs challenges (Powell and Bye, 2009; Powell, Benzer and Mainza, 2011a). High pressure grinding roll (HPGR) installations in various configurations; application of preconcentration plants eg sorting, magnetic or gravity separation; and preweakening devices eg microwave processing; are all examples of technologies having the potential to deliver a significant reduction in comminution energy for ores amenable to these processes. Not only will future novel circuits contain equipment for which models are not as well developed (if at all), many will likely require the ability to respond to variations in feed, and interact with geometallurgical models requiring process adjustments when the ore characteristics change.In order to confidently simulate more complex circuits and accommodate variations in feed type, a significant advancement in modelling and simulation capability is required. This includes dealing with multiple components in the feed, accommodating different competencies of ore, utilising physical separation opportunities and tracking the grade reporting along the different potential processing routes. Developing the means to simulate complex circuits has been a key priority of a collaborative group of comminution researchers working to solve these challenges.Simulations are presented utilising a new configurable simulation interface called the model developers kit (MDK). The MDK is designed to accommodate multi-components and incorporate new models under development. These will be used to demonstrate the potential of flexible circuit design, based on measured ore properties and equipment performance.CITATION:Foggiatto, B, Hilden, M M, Powell, M S, Kay, P D and Andrusiewicz, M, 2012. Simulation of flexible circuits, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 291-298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By S L. Barbour

Measurement of the net percolation from the base of a cover system into the underlying waste material is a key component of a cover system monitoring program. The units of measure (ie a percentage of precipitation or rainfall) are simple to understand for all stakeholders, which increases the importance of obtaining representative net percolation values. In general, lysimeters are used to measure net percolation across the cover material-waste material interface; however, the design of lysimeters for cover system monitoring programs in the mining industry have typically not considered fundamental aspects of lysimeter design. Lysimeter design is typically thought of as being conceptually simple, when in reality the design, installation, and operation of lysimeters is often counter-intuitive, due to the complexities of flow through unsaturated soil systems. This paper puts forward a methodology for lysimeter design while also presenting the fundamental design variables that should be considered. Lysimeter design for differing climates, cover materials, and waste materials is discussed. Finally, the performance of lysimeter designs previously installed in the field at sites in Australia, Canada, and the United States are subjected to numerical modelling to determine whether net percolation is being measured properly.

Jan 1, 2003

The construction of mine headframes of reinforced concrete is not a new departure as many structures have been built of this, material particularly in Canada and South Africa. This type of construction has been satisfactorily tested in service and is now accepted by the mining fraternity.The two headframes at New Broken Hill Consolidated Limited are the first structures of this type to be built in Australia, and provide an interesting application of reinforced concrete design and construction.Reasons for Adoption of ConcreteDuring 1947 the writer visited D.S.A. and Canada and inspected three headframes, of reinforced concrete construction.Leading details are as follows:(i) Hollinger Gold Mines. (Timmins, Ontario) : Height of sheaves 110 ft. Shaft has provision for 4 skips each of 12,000 lb. capacity. Structure incorporates surface crushing plant.(ii) International Nickel Corporation-Murray Shaft (Sudbury): Height to sheaves 153 ft. 6 in. Shaft provides for 2-12 ton skips and 2 cages. Surface crushing plant built integrally with frame.(iii) Asbestos-Johns Manviae (Quebec): Height of sheaves 116 ft. Shaft provides for 2 skips 200 cu. ft.

Jan 1, 1956

By A Litwinowicz, M Laxman, A Fourie, A L. Li

This paper presents a design approach and analytical methods that were used for assessing the potential of static liquefaction and developing the mitigation measures for a tailings dams. The rigour of the design and analysis approach represented leading practise in the industry to address static liquefaction, which contributed to a robust design with high confidence and certainty. The salient features of our approach to static liquefaction included geotechnical investigation and tailings characterisation, static liquefaction screening assessment, static liquefaction triggering analysis, limit equilibrium analyses and numerical modelling of static liquefaction using the NorSand model, which was amongst the first tailings dam projects involving numerical modelling of static liquefaction using these methods.

Jul 1, 2021

By L H. G McClean

Diversity, equity and inclusion are often cited as ‘important priorities’ by mining companies and industry organisations in their public presentations and reports, but is the minerals industry really making strides forward? The mining industry is the least gender diverse industry in Australia (WEGA, 2023). Women make up just 22 per cent of the mining workforce and mining has a gender pay gap of 15.1 per cent (WEGA, 2024a). Only 8 per cent of the CEO roles are female and 20 per cent of boards have no female members (WEGA, 2023, 2024a). Gender diversity, equity and inclusion is a highly topical issue with the recent release of the Respect@Work report, Western Australia Parliamentary Inquiry as well as the publication of company specific workplace culture reports and the national legislative changes to implement a positive duty for organisations to prevent sexual harassment in the workplace. This comes at a time of a skills and labour shortage in the minerals industry as well as declining geoscience study and participation. This is a perfect storm for our future workforce. Governments, industry associations, networks and companies are developing and supporting initiatives to make strides towards equity and inclusion, with some shining examples on both an industry and company level, but the dial is only moving slowly and, in some ways, going backwards. Every company is unique, but every company can review and support gender diversity, equity and inclusion. Actions to progress gender parity could include establishing a clear company position; ensuring that this position is cascaded throughout the company with appropriate training; reporting and reviewing gender participation as well as supporting positive workforce initiatives and a positive culture with a people-centric issues reporting process. At the industry level, there are clear gaps in the support for gender diversity and inclusion including a national voice and ‘one-stop-shop’ to support women in the industry and provide resources. Recommendations include improved co-ordination and collaboration of support for women as well as improved promotion of the suitability (and safety) of the industry for women. The new independent organisation, Women in Mining and Resources Australia (WIMARA) has the objective to address the challenges of gender diversity and inclusion as well as foster co-ordination, co-operation and collaboration between the different stakeholders and state or territory groups and amplify reach. To deliver the future workforce that the minerals industry needs, the time is now for the industry to make some giant leaps for womankind.

Sep 1, 2024

By J-T Zhu, Q-Y Tu, S-L Kong, L Wang, Y-P Cheng, H-Y Liu, Q-L Yang

China is the largest coal-producing country in the world, while the geological conditions of deep coal mining are extremely complicated with high ground stress, high gas pressure and low permeability, which results in the difficulty of gas drainage and aggravation of gas explosion and coal and gas outburst disasters. Co-extraction of coal and gas is an effective method to eliminate coalmine gas disasters and realise the safe exploitation of coal and efficient gas drainage at the same time. This concept is widely accepted by the main coal-producing countries around the world, while the concrete definition of co-extraction is vague and not unified, and there is little accurate theoretical support for co-extraction of coal and gas, which makes it hard to determine efficient gas drainage methods correspondingly according to the features of coal seams in a comprehensive and systematic way. Based on theoretical analysis, laboratory test and field observations, basic thoughts and specific definition of co-extraction of coal and gas were put forward after analysing the occurrence characteristics of coal seams in China. We obtained the mechanism of mining-enhanced permeability and established the corresponding theoretical model, which is the process of fracture network formation through opening recovery of the original fractures and new fractures produced by unloading damage. Based on the core idea of ‘mining-enhanced permeability’, engineering approaches of ‘unloading by boreholes drilling’ for the single coal seam and ‘unloading by protective seam mining’ for the coal seam group were proposed to realise safe and efficient co-extraction of coal and gas. Meanwhile, combined with engineering practice, we put forward the construction principle of coal exploitation and gas drainage system in different coal seam occurrence conditions. The above methods were applied successfully in the Tunlan coalmine in Shanxi Province and the Panyi coalmine in Anhui Province, which had established the ‘underground-surface united’ spatial gas drainage modes, and could ensure safe and efficient co-extraction of coal and gas in the outburst coalmines.CITATION:Cheng, Y-P, Wang, L, Liu, H-Y, Kong, S-L, Yang, Q-L, Zhu, J-T and Tu, Q-Y, 2015. Theory of safe and efficient co-extraction of coal and gas and its applications, in Proceedings The Australian Mine Ventilation Conference, pp 79–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By X Zhang, B McFadzean, P E. Ngoepe, B Nemutudi, P P. Mkhonto, S Pikinini

There is still a huge challenge in efficiently recovering the arsenides minerals that are largely concentrated in the Platreef Bushveld Complex which constitutes about 21 per cent of the platinum group minerals (PGMs). Therefore new collectors are required to improve the recovery separation of hard to float minerals, in particular sperrylite. The triazine modifications are promising reagents for mineral flotation and have not been given much attention in minerals processing. The adsorption of sodium 2,6-dithio-4-butylamino-1,3,5-triazine (SDTBAT), sodium 2,6- ditrithiocarbonate-4-butylamino-1,3,5-triazine (SDTTCBAT) and sodium normal butyl xanthate (SNBX) on sperrylite (100) surface were performed to identify a well performing collector molecule. We observed that the triazine collectors preferred to bridge on surface As and Pt atoms through the S atoms. We found that the adsorption energies were in the order: SDTTCBAT > SDTBAT > SNBX, indicating that the SDTTCBAT had strong exothermic adsorption on sperrylite and pyrite. These results showed that the ditrithiocarbamate had a great influence in the adsorption strength on the sperrylite surface. Importantly it was found that the triazine collector had stronger adsorption than the xanthate, which portrayed a promising replacement of xanthate collector. These results paved a way for design of novel collector for sperrylite and other chalcogenide minerals to improve their recovery.

Aug 24, 2022

By P Voulgaris

The Osborne Mine commenced production from an open pit in December 1994 with the first ore being hauled from underground one year later. Currently all ore is hauled up a decline by trucks until the shaft system is commissioned in early-1998. The mine is hosted within a multiply deformed and complex sequence of metamorphic, igneous and metasomatic rocks of mid Proterozoic age that are concealed beneath 20-40 metres of Mesozoic sedimentary cover. Epigenetic and largely hypogene copper - gold mineralisation occurs in a close spatial relationship with quartz - magnetite ironstones and is an important example of a significant mineralisation style in the Mt Isa inlier. Life of mine concentrator production, to year end 1997, totals 3.2 Mt of ore at 3.40 per cent Cu and 1.13 g/t Au. Total metal produced was 97 000 tonnes of copper and 2900 Kg of gold (95 600 oz) from some 348 000 tonnes of dry concentrates averaging 28.01 per cent Cu and 6.99 g/t Au. At the start of 1998 OsborneÆs total measured and indicated resource was stated at 11.38 Mt at 3.24 per cent Cu and 1.21 g/t Au with an ore reserve of 11.42 Mt at 2.90 per cent Cu and 1.09 g/t Au. Exploration efforts in and around the mine have been increased since 1996 and have resulted in an early success, with a 28 per cent increase in ore reserves since mine start-up, and the establishment of a 1.5 Mt inferred resource open to depth. During 1997 the performance of the concentrator has exceeded expectations with throughput having been increased to 1.45 Mt per annum. The Mining Cycle at Osborne has proceeded from discovery through feasibility and is currently seen to be in the latter part of the development stage and/or the early part of an expansion stage. This paper will describe the role of geology and exploration within these stages and will highlight how a number of key interpretations and decisions based on geology have both favourably and unfavourably affected the project.

Jan 1, 1998

By D J. D'Astoli, M D. Goodz

In 1993 a detailed review of drill sample yuuluy was rouxluard through twin and triplet drill holes using open hole, crossover suhreverse circulation (RC) and diamond drill methods. Advances in face-sampling RC methods demanded a further review of the validity and reproducibility of drill sample data. A program was undertaken to drill three RC holes using the latest technology (new face- sampling bits, dust suppressers, cyclones and compressors). Volumetric and mass studies were undertaken to review sample recoveries. Modal analyses on indicator minerals were logged to interpret the relative degree of mineralisation. Ambiguities in the results were immediately apparent and the consensus was for follow-up twin diamond holes using HQ3 coring tubes. The most mineralised RC hole was selected for the first twin diamond hole. This RC hole (MS 313) encountered one intersection of >0.47 g/t; in contrast the diamond hole (MS 342) had nine intersections at > I g/t. Results at hand show definitively that face-sampling RC drilling is not acceptable as a method of exploration for gold deposits of the Woods Point type. Furthermore it is demonstrated that RC drilling should not be used for any type of exploration of high-grade gold vein deposits related to highly fractured or porous hostrock, or areas of previous mining activity. Methods are proposed for reviewing of rates of sample recovery, distribution and cross-contamination. Comparisons also show that in limited metreage reconnaissance drill programs, diamond drilling is more similar to percussion in per metre costs, than it is credited with, and always provides more bang for the Buck.

Jan 1, 1997

It is proposed to consider a new access, mining and hoisting system for underground deposits, as an alternative to the commonly used decline or vertical shaft access. The proposed system offers fundamental improvements in gathering of exploration data, reduction of capital expenditure and significant savings in mine operating costs. The cost reductions are achieved through:superior orebody definition by Supersucker winzing on ore prior to the commencement of capital development; considerable reduction of capital development in waste; full capitalisation on all benefits of a raisebored excavation; introduction of rubber tyred skip and rubber tyred Mine Rapid Response Vehicle; introduction of simplified ore handling system and reduction of underground mobile diesel fleet; and introduction of minimum maintenance shaft concept. The system is applicable to deposits ranging from shallow, low dip angle, narrow vein, high-grade to bigger, massive type vertical mineralisations accessed from the surface, preferably from the bottom of an open pit; it is also suitable as a down dip extension of an existing underground mine. The system is highly conducive to mine automation and emerging trend aimed to increase the ratio of mined metal/mineral to mined waste. It offers substantial reduction in diesel exhaust gas emissions to the mine atmosphere.

Jan 1, 2000

By A Valero, G M. Mudd

There is active debate and research around the most suitable indicators to assess the sustainability of mining. The most common approach is to report a range of data for a given mine site (or less preferably, a company total), such as inputs, outputs, benefits and potential costs. The most popular protocol in use (and growing rapidly) is the Global Reporting Initiative (GRI). However, these measures are numerous and still do not allow a single over-arching indicator to be developed. Other measures, such as known mineral resources over time, do not account for critical challenges such as declining ore grades, increasing wastes and poorer quality ores or more difficult mineralogy. By adopting a thermodynamic approach to sustainability, through the concept of æexergyÆ, it is possible to incorporate into a single measure the effective quality of mineral resources. Exergy involves the assessment of the minimum energy costs involved in producing a mineral resource with a specific chemical composition and concentration from common materials in the environment. The exergy of a mineral resource is evaluated from mineralogic composition, concentration (or ore grade) and, of course, quantity, by multiplying the unit exergies with the tonnes of the resource produced (or consumed). Since exergy is a thermodynamic quantity (ie energy or joules), it is additive across different minerals, such as iron ore to gold to copper or even oil and gas or coal û making it an ideal indicator to assess mineral resource sustainability at the industry scale rather than the individual mine scale. This paper briefly outlines the theoretical basis for exergy, and then presents a range of commodity case studies showing the application of exergy to the Australian mining industry. Overall, the usefulness of exergy is clearly demonstrated for use as a broad indicator of the sustainability of mineral resources at the national or even global scale.

Jan 1, 2009

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