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By H-S Yang, H Park, S-J Kim, Y-H Ko, H-S Kim, S-H Cho, J-K Kim

An investigation was undertaken to devise a new method for reducing dust spread during blasting demolition utilising water tube and detonating cord. Modelling of smooth particle hydrodynamics (SPH) with AUTODYN software was initially completed to determine the expected diffusing behaviour of the water tube. The actual behaviour was then captured with high speed videos during each experiment, and each result analysed in detail. Water mist diffusion was generated and analysed by changing three key variables. In sequence, these included changing the location of detonating cord in the tube, the charge quantity and the tube diameter.As a result of experiments and simulation, optimum design for ideal diffusion behaviour was suggested and each behaviour of water mist was classified by diffusing shape of water tube as the design criteria.CITATION:Ko, Y-H, Kim, J-K, Kim, S-J, Park, H, Kim, H-S, Cho, S-H and Yang, H-S, 2015. Mist diffusion experiment and evaluation of water tube for blasting demolition dust control, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 809–814 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Li

Cannington Mine has been developing through paste backfilled stopes since the year 2000. These paste drives have been used as either production drill accesses or long-term bypasses. Prior to this study, the ground support requirements for each paste development cut were: an initial 50 mm layer of fibrecrete, weld mesh bolted with 2.4 m split sets, followed by a second coat of 50 mm fibrecrete. Both layers of fibrecrete and the layer of mesh were to be installed before the next cut could be bored and fired. This support regime proved successful at Cannington, however, the total cycle time for each cut was lengthy due to the installation and curing times associated with each layer of surface support. In an effort to reduce the cycle time a study was carried out, with the aid of RocScience’s Phase2 numerical modelling software. The modelling reviewed all of the parameters controlling the stability of a newly excavated development cut. The parameters studied included the early strength of fibrecrete, the ground support load capacity, and the strength of the paste fill masses which varies depending on the cement content. As a result of the study, the ground support standard was revised. The revision has significantly decreased the cycle time as well as fibrecrete consumption, all the while maintaining the safety of personnel and equipment.

Mar 21, 2011

By J Northfield, L Neesham

The GRE46 Underground Project lies beneath the environmentally unique and culturally endowed shore of Lake Cowal. The ore body is open both along strike and at depth and is currently defined to a strike length of 1.5km and depth of 800m. The Warraga exploration decline commenced in March 2019 and represents the first stage of the Project, which is expected to underpin production at Cowal Gold Operations (CGO) for a period exceeding 10 years. Mining operations at Cowal commenced in 2005, following a period of over 20 years of exploration and permitting. In 2015 Evolution Mining (Cowal) Pty Limited (Evolution) acquired the operation from Barrick Gold Ltd (“Barrick”). Barrick had a life of mine plan that anticipated a cessation of operations in 2024 at a processing rate not exceeding 7.5 Mtpa. Evolution have grown the regional endowment considerably and have a currently approved mine life out to 2032 with a currently approved maximum processing rate of 9.8 Mtpa. This paper examines the history, current status and future path of one part of that plan, the GRE-46 Underground Project. Topics for discussion include discovery, Mineral Resource growth under different ownership philosophies, planning, permitting and commissioning of an exploration decline and bulk sampling project, and integration with the possible future mine. Environmental sensitivities affecting regulatory approvals, timeframes, technical challenges, opportunities and solutions are discussed, along with the path required to fast-track production from the existing 14Mt, 1.4Moz Mineral Resource while complying with the requirements of modern, responsible project development stewardship.

Mar 15, 2021

The constructionhunnelling industry in Hong Kong has taken an upturn during the last few years due to the commencement of works to relocate the International Airport to Chek Lap Kok Island. The Airport Core Program consists of ten individual projects including roads, landfill, bridges and tunnels to build the airport and link it to the mainland of Hong Kong. Part of one of these projects is Cheung Ching Tunnel located on Tsing Yi Island. The proposed tunnel consists of a 1.6 km twin tube road tunnel through the island's central ridge, taking three lanes of traffic each way. Each tunnel is 16 m wide - (the widest road tunnel in Hong Kong) and are 10 m high. ICI Explosives (China) saw an opportunity to supply bulk explosives to the Cheung Ching tunnel and contacted ICI Australia to determine availability of a bulk system for tunnel blasting, and assist in its introduction. This paper discusses the methodology behind developing that bulk system to suit a large tunnel drill and blast operation. It also looks at the problems encountered along the way, from the development of the product to the application of the system in the tunnel and the eventual success of introducing a bulk system into a large tunnelling project.

Jan 1, 1994

By P Navarra, R Kuhne

Dynamic simulation (discrete event simulation) is the preferred methodology to evaluate the impact of dynamic aspects of processing plants on the overall plant capacity. This tool can be used to: identify bottlenecks in the plant,justify upgrade and expansion projects by evaluating their impact, oroptimise maintenance and operating practices without disrupting the operation. Iron Ore Company of Canada's (IOC) pelletising plant is a complex operation because of multiple products, varying equipment capacity and shifting bottlenecks. Furthermore, with extensive capital requirements for projects and long lead times, a high level of confidence in project outcome is required. Therefore, a model of IOC's pelletising plant in Labrador City was constructed in 2007 by a joint IOC and Hatch team. The model includes both operational and metallurgical aspects in order to better capture the complexity of IOC operation. In this paper, the justification, boundaries, and functionality of the model are described. A comparison of simulation results to historical plant operation is given. It is observed that projects have interactions and that the benefits of combined projects are not equal to the combined benefits of the individual projects. Projects can have synergies that result in greater benefits when combined or can have overlapping benefits that result in lower benefits when combined. The power of the proposed modeling exercise lies in the ability to assess the impact of projects on overall performance.

Jan 1, 2009

By M Hourn, G Anderson, V Lawson, P Voigt, D Mallah

As mine head grades decline and orebodies become more complex, traditional mineral processing techniques and flow sheets to achieve saleable concentrate become more difficult to design and construct. Mines with lower quality concentrates or concentrates with penalty elements are particularly under threat. The economics of such operations are far more susceptible to metal price fluctuations, concentrate treatment terms and the availability of other, cleaner concentrates. Additional value may be realised for these orebodies through improved recovery by producing a low grade middling concentrate for further processing, in conjunction with a saleable concentrate.The most economic effective way to reduce impurity levels is to do so as early as possible in the mining value chain. Technologies such as fine grinding and fine particle flotation are well established as effective methods for impurity rejection in mineral processing. What is often overlooked is how a hydrometallurgical process could also be integrated in the overall flow sheet to achieve higher overall recovery at the mill. In the base metals environment, this is probably because hydrometallurgical processes are associated with production of metal, or require the use of expensive and toxic precipitating agents once the minerals of interest are in solution. These processes can be very expensive, particularly with rising power costs and poor economies of scale in capital costs associated with low production rates from middling streams. Glencore Technology (GT) has recent experience in the treatment of middling and low grade concentrate streams and also tailings streams to complement a concentrator flow sheet in a refractory gold and base metals setting. The value proposition is the isolation of a low grade middling concentrate from the primary circuit or the tailings stream for upgrading to an intermediate product with an equal or higher grade than the primary concentrate to allow blending for sale. This allows the plant to operate on a more favourable part of the grade-recovery curve while avoiding the expense of metal production. For existing operations this is particularly attractive since it can be added to the flow sheet with no process interruptions. Two case studies are examined showing flow sheets and costings to arrive at the value proposition of the GT low grade treatment flow sheet.CITATION:Voigt, P, Hourn, M, Lawson, V, Anderson, G and Mallah, D, 2017. Economic recovery and upgrade of metals from middling and tailing streams, in Proceedings MetPlant 2017, pp 289–297 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By R R. J McAllister, K Moffat, S Heyenga

This paper examines the statistical relationship between quality of life indicators and the gross value of mineral production from Australian regions. We used quality of life indicators, aggregated for 673 local government areas, of household income, housing affordability, access to communication services, educational attainment, life expectancy and unemployment. We find no evidence of systematic negative associations between quality of life and the gross value of minerals production. Instead, mining activity has a positive impact on incomes, housing affordability and communication access across regional and remote Australia. Whilst we do not establish causality between mining activity and quality of life, our analysis prompts a rethink of the æresource curseÆ as it applies within a single country. Nevertheless, our findings are tempered by extensive anecdotal and empirical evidence of the negative social impacts of mining on specific demographic sectors, localities, families of fly-in, fly-out mining operations and individuals. This contrast may be a scale issue, with the regional benefits of mineral wealth masking highly-localised inequalities and disadvantage. We suggest that there is a need to better understand these impacts and, more importantly, the types of policy mechanisms government and industry can adopt to mitigate or avoid them.

Jan 1, 2009

By M Scoble, C Hughes, M Roberts

At 14 per cent, the representation of women working in the mining industry is the lowest among primary industry categories in Canada. Despite an increase in research and industry commitment to advance and retain women in the mining industry, the gender gap in mining organisations persists.This paper is based upon a recent Canadian survey of 163 highly qualified women (HQW) working in the mining sector. For the purpose of this research, HQW were defined as women with a BachelorÆs degree or higher. This research sought to identify career progression and retention patterns of women who in theory have the educational qualifications to advance into positions of leadership in mining operations. We considered why womenÆs advancement in mining organisations has stalled; examined the career development pathways of HQW; and investigated the interactions of mining workplace culture on HQWÆs career development and retention within the Canadian mining industry. Results?indicated two distinct career pathway trends for HQW. æThe specialistÆ; a career characterised by multiple professional scientific and technical positions, and æthe corporateÆ; a career characterised by professional administrative roles and roles in mid-level management. It was found that neither æcorporatesÆ nor æspecialistsÆ systematically progressed into senior management and executive roles. These findings suggest that HQWÆs careers in mining are stalled, despite a strong indication by respondents of interest in their professional career advancement. With regards to?workplace?culture, respondents indicated that blatant forms of gender discrim-ination have been reduced in mining workplaces; however, exclusion from informal networks, implicit bias and subtler forms of workplace discrimination persist. Consistent with previous mining sector research, improving work-life balance, work flexibility and mentorship were found as key drivers for HQW to advance and remain in the industry.CITATION:Hughes, C, Scoble, M and Roberts, M, 2012. Where are the women? Highly qualified women in the mining industry, in Proceedings International Mine Management 2012, pp 23-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

Education for the Mineral Industry in Australia developed in an uncoordinated but effective fashion till the mid 1960's, with recognised quality in graduates, with output matching demand, and with industry needs being fulfilled. Then in the space of a further 20 years, as company structures expanded, as the number, complexity, and costs of mineral projects escalated, as educational facilities, costs and politics increased, as community perceptions and aspirations changed, as government control of minerals and education increased, and as mineral sales cycles and markets fluctuated widely, the very fabric of Australian Mineral Education fell in tatters. Extractive Metallurgy Education suffered most in this collapse, and no compre- hensive remedies have been initiated. We are all the losers. In the 1990's, the extraction of Australian minerals and metals will increase in international significance, and the education of Extractive Metallurgists must meet this need. After examining the current situation, a series of management strategies are proposed to enable Extractive Metallurgical Education to survive and prosper in the next two decades and beyond. These strategic proposals involve industry, the government, the educational bodies, and individuals, in a range of short and long term objectives, policies, and actions.

Jan 1, 1984

By G Caddy, M Middleton, S Kerec, R Keil, J Tsalapatis

Arrium’s OneSteel Whyalla Steelworks in South Australia is a fully integrated plant which operates a single blast furnace. The key operational objective has been to maintain high process availability and stability while maximising the process efficiency and the produced hot metal quality. All ferrous raw material input feeds are sourced exclusively from company iron ore deposits in the nearby Middleback Ranges. The Whyalla blast furnace has mostly operated using a combination of a high percentage of pellet feed, produced in Whyalla, together with screened lump ore.The unique ironmaking challenge has always been to extract the maximum value from the ferrous burden feed available locally. In earlier times, high-grade hematite lump ore was available for both screened lump ore and pellet production. Blast furnace trials from acid to fluxed pellet feed commenced in 1977. The furnace pellet feed has been wholly fluxed since 1981. Many pellet/lump ore feed mixes and significant pellet chemistry composition design changes have been made over the years. These changes have been aimed at best balancing the ferrous burden availability/cost and the optimum reducibility/high temperature melting behaviour of the charged ferrous feed within the blast furnace. In more recent times since 2007, the Whyalla blast furnace operation has transitioned from a hematite based pellet feed to a magnetite based pellet feed while there is an ongoing contest dealing with diminishing absolute quality/increased variability raw material feed inputs.The paper will detail key elements of the Whyalla blast furnace operational philosophy with regards to ferrous feed use and process optimisation. The blast furnace ferrous feed design considerations will be discussed, together with the test work performed, the operational and slag design transition strategies employed and the process results achieved.CITATION:Tsalapatis, J, Middleton, M, Keil, R, Kerec, S and Caddy, G, 2015. The use and optimisation of ferrous feed at the Whyalla Blast Furnace, in Proceedings Iron Ore 2015, pp 377–384 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Harada M, Katsuta S

In order to shorten the time taken to com- plete shield tunnel excavation work, reduce labor costs and to improve safety, an automatic assembly robot system for the segments used has been developed. It was developed in the three years from 1982 until 1984. An experimental assembly system for concrete segments (outer diameter:.3.55m) has been thoroughly tested to confirm that these segments can be fed and assembled automatically (Fig. 1, 2). This report outlines the robot which will be put into practical use in the near future. The robot senses the position of already assem- bled segments by means of position sensors, controls the position and the attitude of the segment to be assembled to allow bolt hole positioning, and completes the automatic assembly of a se;nent by automatically tighten- ing bolts. The six segments which make up one ring can be automatically assembled in about 25 minutes.

Jan 1, 1987

By C J. Greet

Oil can enter a flotation circuit from a number of sources (for example, from mining equipment, oil leaks from the grinding equipment and coatings on the grinding media, but to name a few). Folklore generally states that any oil that contaminates the ore entering the flotation circuit is considered to have a negative impact on flotation. That is, a loss in concentrate grade and recovery.This represents a dilemma for some grinding media suppliers, who use a variety of quenching medium (air, polymer, oil or water) to achieve the desired physical properties of the ball. In the case of high chrome grinding media it is necessary, in some instances, to quench in oil to give the ball the right degree of toughness, which invariably leads to these balls having a thin film of oil on their surface. Once the grinding media arrives on site and site personnel recognise that the balls are “covered” in oil, they generally insist that the oil will have a deleterious impact on flotation performance.Obviously, any supplier “worth their salt” would take remedial action at the point of manufacture to minimise this problem. However, does quenching oil actually present a significant “threat” to the flotation process? This paper provides both laboratory and plant data describing the effect quenching oil has on the flotation of copper sulphide ore, with surprising results!

Aug 8, 2011

By Massacci P

A review has been made of the studies focusing on methods for the description of grain -size distribution after breakage and, separa- tely, of the degree of liberation of the miner- al species making up the various grain-size classes of comminution products. The purpose of the study has been to de- velop an overall model of the phenomenon which, owing to the very effect of comminution, leads to the formation of grains that are generally of mixed composition. A calculation procedure has thus been de- veloped for the liberation function taken as the assessment of the distribution of mix com- ponents in the products obtained after a commi- nution process. The aim is to identify a func- tion which may, to a certain extent, simulate the variation of the grade-recovery function of an ore in relation to its degree of comminu- tion. The numerical model thus obtained has been tested out on results obtained experimentally.

Jan 1, 1986

By R J. Soriano, S Ciutina

The Masbate gold deposits are situated on the island of Masbate, 350 km south of Manila. A new plant was commissioned in April 2009. The grinding circuit consists of one semi-autogenous (SAG) mill Ø9.75 m × 4.27 m, two ball mills Ø5.6 m × 7.1 m and a pebble crushing circuit, which is usually called a SAG-ball mill-crusher configuration. The SAG mill was originally equipped with radial pulp lifters. The mill runs at fixed speed of 10.9 rev/min, which is approximately 80 per cent of critical speed (per cent CS). Due to the high speed of the mill the original radial design pulp lifters presented a high volume of recirculating load inside the chamber and consequently heavy wear on the outer circle (bottom pan).In order to address the high wear on the pulp lifters a number of avenues were considered in early 2011. The chosen solution was to change the geometry of pulp lifters from radial to curved design. The pre-existing drilling pattern on the discharge end of the mill was a major constraint. A number of designs were considered. The selection of the most suitable option was to be made based on 3D discrete element modelling (DEM) and smoothed particle hydrodynamic (SPH) simulations.The original radial design and two potential solutions for curved pulp lifters were simulated with 3D DEM and SPH software. The main three objectives were predicting the charge dynamics, the expected wear patterns and discharge efficiency. One of the solutions was chosen and implemented during 2012.Observations carried on after installation of the curved pulp lifters have confirmed, as expected, a reduction in wear intensity on the outer pulp lifters. In addition to this, at early stages of operation with curved pulp lifters, the mill operator noticed a reduction in energy consumed by the mill with no detrimental effect on mill performance.This paper is intended to further study the effect of curved pulp lifters on mill energy consumption.CITATION:Ciutina, S and Soriano, R J, 2014. Curved pulp lifters – can they save energy?, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 109–116 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By M N. Mian

The Cayeli volcanogenic massive sulphide deposit is located in Black Sea region of Turkey. Cayeli Bakir Isletmeleri (CBI) was formed as a joint venture between Inmet (Canada) and Eti Holding (Turkey). CBI is processing complex copper/zinc sulphide ores. The Cayeli concentrator was commissioned in 1994, with a design capacity of 600 000 tonnes/year. The grinding circuit was a classical rod mill/ball mill combination. The rod mill was converted to a primary ball mill in May 1997. The reasons for conversion were to use mill power more efficiently and eliminate feed interruptions during rod charging. The grinding circuit now has a primary ball mill in open circuit, and a secondary ball mill in closed circuit with hydrocyclones. Classification was originally done in two stages with hydrocyclones. Both mill discharges were combined and pumped to a primary cyclopack having two, 500 mm diameter cyclones. Primary cyclone overflow was pumped to a secondary cyclopack for further classification. The secondary cyclopack had ten, 200 mm cyclones. Both unit underflows were fed to a secondary ball mill by gravity. The secondary cyclone overflow, typically 62-64 per cent passing 36 ¦m, at around 42 per cent solids (w/w) was fed to flotation circuit. In order to increase circuit capacity to 1 000 000 tonnes/year and to improve control over the grinding circuit, it was decided to convert the classification circuit from two stage to one stage. For this purpose, six Warman Cavex cyclones having 400 mm diameter were installed. Now, the combined primary and secondary ball mill discharge was classified in single stage with the Warman cyclones in closed circuit with the secondary ball mill. The cyclone overflow goes directly to the copper rougher circuit as flotation feed. The grinding circuit is producing a flotation feed of 70 per cent passing 36 ¦m. The change over to single stage classification at Cayeli was successful. A mill throughput of 1 000 000 tonne/year is being achieved with better control over classification, and improved grind size. Results and comparison between the two classification circuits are presented in the paper.

Jan 1, 2003

Separating Particles by Horizontal Deflection in a Paramagnetic Fluid This paper describes the horizontal deflection behavior of particles in paramagnetic fluids under a high-gradient superconducting magnetic field. Movements of single particle were observed experimentally and indicated that they could be deflected to different positions. Based on these results, the behavior of groups of particles from ore samples was examined in the superconducting magnetic. It was found that these particles could be deflected and settled at a certain position due to the combination of gravity and magneto-Archimedes forces as well as a lateral buoyancy (displacement) force. Mineral particles with different susceptibilities and/or densities could be deflected to different positions, thus producing groupings of similar types of particles. The work described here, although in its infancy, could form the basis of new approach to separating particles based on a combination of susceptibility and density.  

Sep 13, 2010

By N S. Weerasekara, S Town, E Lessing, J A. De Torres

Philsaga Mining Corporation (Philsaga) had three main aims in converting their lining system from steel to metal cap. They wanted to increase mill availability, minimise localised high wear and optimise particle breakage to deliver increased efficiency within the milling circuit. Combining Discrete Element Method (DEM) modelling and empirical interpretation of liner wear resulted in a rigorous approach to understanding the impact of mill liners on overall mill performance. This new understanding was subsequently used to not only derive a new lining design to optimise performance and thereby improve overall plant economics, but also to guide further lining development.In this work, detailed DEM modelling, developed from actual plant data, together with optimising liner design for wear paved the way towards the installation of a Metal Cap lining system at Philsaga’s Ø6100 mm SAG Mill. The results were a reported increase in SAG mill throughput of 16 – 20 per cent due to improved breakage through more efficient use of installed power, a reduction in localised high liner wear with overall increase in liner life and reduction in liner replacement time. Site also reported an increased gold recovery of 2 per cent which the improved breakage might have contributed to. This paper will present the design challenges and compare the Metal Cap lining systems performance against Steel lining system. CITATION:Weerasekara, N S, Lessing, E, Town, S and De Torres, J A, 2018. Metal cap versus steel lining system at Philsaga Mining Corporation’s Ø6100 mm SAG mill, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 653–664 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By E Lima, D Gregory, C Faria, A Lapworth

Open pit mine enterprises are complex systems that depend on multiple parameters such as mineral grade distribution, geotechnical characteristics, economic conditions and engineering requirements, all of which vary in time and space with a different degree of uncertainty. The unpredictable nature of these inputs imposes a risk to mine owners and shareholders which in the worst case can lead to highly undesirable financial outcomes.Desktop studies commonly examine a set of scenarios based on adjusting variables such as commodity prices, mining costs, processing costs, and metal recoveries to understand their relative impact on the economics of a project. It is less common to systematically explore and simulate hundreds of alternative physical designs to understand and compare the financial risk associated with one or more mining projects.This paper presents a risk assessment tool set and methodology that uses web based cloud computing to enable multiple simulations of mine designs to be rapidly and efficiently executed. The methodology includes generating random sets of prices and costs values within their respective probability distributions. Pit designs are then created to maximise the profit for each set of input variables. Various approaches to analysing the results are discussed. Use of the same high performance computing environment for understanding the financial risk associated with the variability of the underlying geological resource model is also discussed, with provided examples using case studies from two of the major mineral producers.CITATION:Lima, E, Gregory, D, Lapworth, A and Faria, C, 2014. Simulating extraction shapes to understand financial risk using high performance computing, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 351–360 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By L Ventura, M Almond

The Pueblo Viejo project in the Dominican Republic installed an innovative sample system on its reverse circulation (RC) drilling rig during commissioning and subsequent commencement of operations. As knowledge of the orebody increased with mining and plant production, cost pressures became apparent that raised questions concerning the continued use of RC drilling versus blasthole sampling for ore control.To justify the continued use of RC drilling for grade control, an in-depth study was undertaken to determine the quality of the sample and prove its value-add to the operation.To investigate the differences in sample quality, a complete bench trial was initiated across both ore pits to compare RC drill results with blasthole assays on a side-by-side basis. The results indicated that based on ore block comparison between RC and blasthole sampling, RC identified an additional 20 per cent of high-grade (+ 4.5 g/t Au) ounces.Previous work indicated that Au, Ag and Cu were all elevated in the drill fines at Pueblo Viejo (Goers and Almond, 2012). This previous test work did not consider the quantity of fines in an RC sample therefore new test work was undertaken to include particle size distribution analyses. This study would determine if the inclusion of fines in the sample was occurring and compare the quantity of fines in the sample against other sample systems and blasthole samples.Comparisons between RC samples and blasthole samples indicate that for the RC samples a range of 30–35 per cent of the sample passed 300 mesh as compared to blastholes where the range of the sample passing 300 mesh was 15–30 per cent.This paper includes a case study on the importance of accurate samples and how they have impacted throughput through the pressure oxidation process plant at Pueblo Viejo. The accurate samples provided by RC allow for improved stockpile and blending strategies, showing the importance of accurate samples to manage risk and create value, against the perception that savings can be made at the risk of poor sampling performance.CITATION:Almond, M and Ventura, L, 2017. Adding value with reverse circulation drilling at Pueblo Viejo, in Proceedings Tenth International Mining Geology Conference 2017, pp 277–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

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