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By S E. Thornett, P L. Kitto, R S. Longley

"The Mbalam Iron Ore Project covers mineralisation in two areas of metamorphosed hematitic banded iron formation (itabirite) in the north-west Congo Craton; namely at Mbarga in south-east Cameroon and at Nabeba in north-west Republic of Congo. The site locations are shown in Figures 1 and 2.The Mbalam Project history is an example of a compressed, yet highly successful, exploration timetable. Due to the thick inaccessible equatorial forest location, the first access was by helicopter in February 2007 at the Mbarga Deposit. Drilling commenced four months later in June 2007. A maiden JORC Code compliant æhigh-grade hematiteÆ inferred mineral resource (190 Mt at 60 per cent Fe) was defined in May 2008, followed by a maiden æitabirite hematiteÆ inferred resource in July 2008 (1.2 Bt at 37 per cent Fe). Subsequently, road access to Nabeba was established in January 2010, with a maiden high-grade hematite inferred mineral resource (200 Mt at 63 per cent Fe) identified only five months later in June 2010. A maiden itabirite hematite inferred resource at Nabeba was announced in June 2012 (1.4 Bt at 34 per cent Fe). The success of the exploration programs has been due to two main factors: Establishment of high-quality camps and facilities at Mbarga and later at Nabeba in Republic of Congo. Exploration support included satellite links for site servers and communications, field logging computers, data acquisition software, an on-site sample preparation laboratory, portable hand-held X-ray fluorescence (XRF) and company-owned drill rigs from 2009. An experienced and dynamic technical support group based in Perth to provide database facilities, data evaluation, internal auditing and software support, resulting in expedited resource estimation and economic evaluation with state-of-the-art mining software. In June 2012, Sundance Resources Ltd announced the current mineral resources for the project of 775.4 Mt at 57.2 per cent Fe of high-grade hematite and 4.047 Bt at 36.3 per cent Fe of itabirite hematite. In December 2012, high-grade hematite ore reserves of 436.3 Mt at 62.6 per cent Fe were announced. These world-class resources and reserves have been delineated and evaluated in a very rapid time frame. This would be considered extraordinary in any environment, let alone in the remote equatorial forest of central Africa.CITATION:Longley, R S, Kitto, P L and Thornett, S E, 2013. Exploration history of the Mbalam Iron Ore Project, in Proceedings Iron Ore 2013 , pp 107-116 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

By P Commander

Western Australia is a major exporter of minerals, which places significant economic and environmental responsibility on Government and the stateÆs mining industry. Moving into the 21st century, mineral production in Western Australia is $14 billion accounting for 50 per cent of the stateÆs export income. There are over 60 large-scale mining operations distributed throughout the arid regions of the state (less than 300 mm/year rainfall). There are four key mineral provinces in arid Western Australia including the Pilbara (iron ore), Murchison (gold), Northern and Southern Goldfields (gold and nickel). These provinces have significant differences, particularly in respect to groundwater demand from mining and mineral processing, aquifer systems that are utilised, and approaches to groundwater management. The arid nature of the stateÆs interior and subsequent lack of surface water resources has required substantial groundwater resource development by the mining industry. A variety of aquifers have been explored and utilised ranging from shallow alluvium and calcrete, discrete fractured zones in bedrock, concealed palaeochannels and inland sedimentary basins. Groundwater usage by the mining industry is about 150 GL/year with most abstraction related to mine dewatering, mineral processing and dust suppression. Groundwater abstraction in Western Australia is regulated by the Water and Rivers Commission. In the Goldfields, the depletion of brackish (>2000 mg/L) and saline groundwater from storage is permissible, as mining is considered the beneficial use for groundwater which may be as much as 200 000 mg/L. In contrast, the low salinity groundwater of the Murchison and Pilbara is allocated on a sustainable basis. The role of monitoring and ongoing aquifer reassessment is crucial in water management, in evaluating the condition and performance of stressed aquifer systems. Mining operations face a variety of water resource issues ranging from insufficient availability for processing to excessive mine dewatering. These issues also change as a mine operation proceeds through its development, commonly starting with a deficiency and moving into surplus as deeper pits require more dewatering. Operating mines have to contend with three main issues: water supply, wastewater disposal and contamination of local water resources. In contrast, post closure issues are related to aquifer recovery or re-establishment of groundwater equilibrium, development of pit lakes in mine voids and isolation of waste products and associated seepage or run-off.

Jan 1, 2003

By B Waldon, M Valastro

A coal dust explosion is one of the most significant risks in the harsh and complex environment of an Underground Coal Mine (UCM). Reviewing literature, regulations and existing systems surrounding explosive dust management shows that there have been few advancements in managing this risk over the past 90 years. Legislation has remained relatively stagnant and minimal systems are implemented in the real world that can simplify, standardise and improve the effectiveness of UCM explosive dust management. To help bridge this gap, Corehesion, in collaboration with an UCM has designed, developed and implement an Explosive Dust Risk Mitigation System (EDRMS) utilising components of Business Intelligence (BI) that is capable of real-world use in industry. To do this the existing explosive dust management process at the associated research mine was evaluated to form high-level and detailed design requirements, focusing on digitally simplifying the procedure, not replicating it. The system was then iteratively and incrementally developed and implemented at the research mine to commence real-world use. The developed BI platform is compared with the existing process to highlight the advancements in performance transparency, efficiency and optimisation of UCM explosion mitigation. This comparison and evaluation of the real-world system implementation at the research mine demonstrate its success in automating procedure steps, providing a readily accessible source of data and enabling a proactive approach to planning and managing explosion risk mitigation. In addition to improvements just for the research mine, this EDRMS created directly address many Queensland regulatory audit findings. By finalising the total system and making the highlighted changes for standardisation, this BI system will have the adaptable capabilities for implementation across the UCM industry. As accurate data availability improves at UCMs, further work can be done to improve the systems’ optimisation techniques and integration of other risks.

Apr 16, 2024

By K T. Mandisodza, T J. Cartledge

The principal objective of Geotechnical Engineers supporting operating mines is to provide safe working conditions and ensure that pit designs are geotechnically optimised to site conditions and pre-defined stability requirements. Pit slope designs are delivered in advance of pit excavations. Making changes to these designs is usually slow to enact and involves a layered sign-off before implementation, leading to unwanted delays in their adoption and subsequently increased production pressures. When unexpected ground conditions are encountered during the mining process, or short-term mining schedule requirements demand it, changes to these designs may not be easily feasible in certain situations. It is when these scenarios arise that Geotechnical Engineers need to be proactive and consider unconventional options to deliver safe operating conditions while satisfying short-term requirements to the mine schedule. Essentially, the geotechnical short-term strategic designs double-pronged approach supports the mine schedule while providing safe conditions and minimising geotechnical risks for people and equipment. Common short-term strategic geotechnical designs include; slope buttressing, over-steepening cut slopes to increase reserve recovery through unplanned or emergency cutbacks, and accepting risk threat and operating under unstable slopes. When implementing strategic design options, the Geotechnical Engineer must consider the broader implications for such designs. They must think of the plan’s long-term effects on the mine schedule and pit wall stability. Initiating aggressive designs to recover additional reserves to satisfy a short-term scheduling demand could result in-pit wall instability or suboptimal pit layout. Before and during the implementation phase, the Geotechnical Engineer must communicate and engage with relevant stakeholders to ensure that the plan is executed accordingly and geotechnical risks are effectively managed. Proactiveness to ground response and implementation of risk management strategies will improve safety performance and optimise mining schedules.

Jun 22, 2022

By S Dunham

For decades we’ve been focusing on reconciliation as a tool to validate mineral resource estimates. And for decades we’ve been misleading ourselves. The concept of reconciliation is simple. Predict, measure, compare and assess the quality of the prediction. This four-step process reflects the ideas of statistical process control and the plan-do-check-act cycle of Shewhart and Deming fame and our intuitive understanding of using system feedback to improve performance. In an ideal world where data is robust and dense this type of feedback loop can be useful. In the mining industry however, there are some fundamental flaws with the conceptual framework. At almost every stage of the process from pre-estimation through to final production the mining system is plagued by material challenges with data and measurement quality and quantity, system delays, and losses from a supposedly closed system. These issues can and do impact on the benefits sought from reconciliation. Instead of providing feedback leading to improved estimation, reconciliation can result in poor decisions, distracting investigations, and exacerbate the noise in an already noisy system. Before we can rely on reconciliation as a management tool, we need to address the multiple challenges present in our everyday practices. Some of the most critical issues are addressed in this paper.

May 24, 2023

By D J. Robinson, L L. Kuhar

In-situ recovery (ISR) is accepted and applied across many geographies, and approximately 50% of the world’s uranium is currently extracted by using an ISR method (World Nuclear Association, 2014). The low environmental impact, the elimination of risk for mine workers and the fact that all of the lowest-cost producers of uranium use an ISR approach should raise interest from traditional miners (IAEA, 2014). However, the broader application of ISR to other commodities and mineral systems remains limited. A number of demonstration (experimental) copper projects have been undertaken (Sinclair and Thompson, 2015) with a few copper projects in Arizona being close to demonstration (Florence, 2018 and Gunnison, 2018). Evidence of very few economically operating ISR copper projects can be found (for example, the Russian, Uralgidromed OAO, built by the Russian Copper Company in 2005 and operated as an ISR facility from the Gumeshevskoye deposit (Russia Mining, 2018). A number of gold deposits, particularly paleochannel deposits, have also been considered for ISR, but, to the best of our knowledge, only limited demonstration and no commercial operations have been established, yet (Kuhar et al, 2018 and references therein).CITATION:Robinson, D J and Kuhar, L L, 2018. Extending mine life through application of an in situ recovery approach, in Proceedings Life-of-Mine 2018, pp 56–57 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By J Kwak

Driving sustainability concepts and practices into the heart of the design process is the key to achieving a successful, sustainable plant design. Engineering design practices, tools, systems and methodologies should be prepared around true eco-efficiency parameters, adopt wholesystems-thinking and consider life-cycle impacts for the design task. Experience dictates that the application of sustainable plant design practices is most likely to succeed if: The principles are well documented and explained. All stakeholders agree on what sustainability means. Sustainable plant design is treated as a core process. The principals of sustainable plant design are equally applicable in brownfield and Greenfield environments. Although brownfield situations provide the designer with less latitude for change, these types of projects do allow easier measurement and demonstration of relative impacts. This paper further develops the above points by drawing on case studies from HatchÆs repertoire.

Jan 1, 2004

By B W. Atkinson, J Docherty

An Australian Working Group has been compiling a guide for operators to use in order to improve the efficacy of their routine and non-routine sampling tasks within their coal preparation process. The guide focuses on unit operations within the process, and not conveyor belts or transfer stations that are adequately covered by the existing Standard ISO 13909.Representative sampling of unit operations is generally an after-thought following plant construction, whether that be a result of oversight, or more commonly, capital cost minimisation during initial construction. Minimising capital cost by avoiding adequate sampling systems is generally a poor decision, since the result is a process that cannot be adequately measured, meaning that it cannot be adequately managed and optimised.The use of the term ‘guide’ rather than ‘standard’ is intentional. Practical means of sampling unit operations within existing plants generally relies on a compromise between sample representativity (minimisation of bias) and sampling feasibility. The guide does not endorse poor sampling practice, but instead offers practical guidance to overcome, to the extent reasonably possible, real-life limitations.When it comes to sampling any particular process, it is almost always necessary to make a professional judgement as to whether or not the proposed samples are likely to be sufficiently representative such that the sampling will be worthwhile. Such judgement needs to be exercised by personnel who understand the principles of sampling, as they apply to the stream being sampled. There are many circumstances where available methods for sampling of a particular stream will be meaningless, and in such circumstances analytical data from that sampling will only serve to propagate poor decision-making.This paper outlines the approach for the guide, the areas it covers and the approaches adopted for different types of unit operations and associated equipment configurations.CITATION:Atkinson, B W and Docherty, J, 2017. A practical guide to sampling in coal preparation plants, in Proceedings Eighth World Conference on Sampling and Blending , pp 241–246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

The current economic climate and demand for iron ore has resulted in mine operators being prepared to accept aggressive slope designs and associated failures provided that they can be quantified (ie volume of failure and clean up costs, etc) and incorporated into the mining costs, at a feasibility study level. This has numerous implications for pit slope design/geomechanics. Typically when geotechnical engineers conduct slope stability modelling a single value, usually the average or mean value for model input parameters (ie structural orientations, material properties and hydrological conditions) are chosen. The implications resulting from using a single value for model input parameters will vary depending on how the modeller has chosen the value, ie should the modeller choose a mean value from a log-normal distribution of material strengths an optimistic representation of the stability may eventuate, consequently if the designer decides to conservatively downgrade the values by a nominal factor, a pessimistic representation of slope angles may occur, which would result in excessive stripping and mine development costs. A more realistic and representative way to model the inherent variability of geological/geotechnical conditions would be to do so probabilistically. Whereby the modeller can assess the variability of the geological structure as observed/recorded during the core logging process and a similar approach for the material strength properties. The final model output would be a distribution of factors of safety in relation to overall slope angles, ie probabilities of failure for individual slope angles could be determined. This output (graph) could be modified by the mining engineer to incorporate mining costs as well as clean up costs for the respective slope angles and associated failure volumes, ie probabilities of failure. The author intends to provide a detailed overview of the processes involved in deriving a geotechnical design, ie; starting from the data collection phase (core logging/face mapping), through to the data interpretation and formulation of slope parameters; determining the variability and uncertainties associated with each of the process; ensuring that it is adequately captured in the model input parameters; and how the mining engineer could utilise this information to derive final feasibility study mining costs.

Jan 1, 2009

Problems caused by water discharge from surface mine ventilation shafts can be significant and are usually unforseen. The discharged water is often hyper-saline or acidic and can cause environmental degradation over a wide radius. It can also lead to recurring power pole fires and primary fan breakdowns. A range of solutions to the water discharge problem has been implemented in many Australian mines. In most cases the solutions have been ad hoc, with the overall cost and effectiveness varying tremendously. This paper reviews and contrasts the practicality and effectiveness of the various available remedial options.

Jan 1, 2002

By J C. de Vries

When times are tough in the mineral industry û as they have been for some time û typical responses by mining companies are to cut costs and/ or increase production. The latter is seen to spread fixed costs, thereby also reducing unit costs per tonne mined. However, most mineral deposits respond to increased production rates by lowering ore grades, so the reduction in cost per tonne of ore does not necessarily result in a reduced cost per unit of metal produced. The authorsÆ experience is that this process often leads to a mine plan that is a long way from optimal. Producing to the point where marginal cost equals marginal revenue may work well in a manufacturing operation, but it is not necessarily the best strategy for a mining company with a depleting resource. Variations in tonnage and grade with depth, ore reserve optimism and a variety of other factors conspire to produce variations in production rates and grade that often result in suboptimal outcomes and potential mine failure. Added to this is the focus of industry analysts and senior corporate management on such measures as unit costs and ounces in reserves. This is perceived to have the perverse effect of driving the share price down when strategies are adopted that actually improve the value of the mining operation, and vice versa! Many mine failures can be prevented by a close examination of the tonnage grade curve and an understanding of how margins, net cash flows and resulting business risk change with cut-off grades and rates of production. A few relatively simple analyses early in the evaluation of a project can demonstrate the tradeoffs between the main decision parameters, leading to right-sizing of the operation. Once major commitments to major capital items have been made, and reserves have been publicly reported, optimisation of the operation becomes much more difficult than if it had been done earlier. Such investigations can also identify the upside potential and downside risks associated with factors outside the companyÆs control. Many strategies that may enhance value in the good times significantly increase the downside risk in the bad times. What is often called risk analysis typically looks at superficial issues, and does not evaluate the major factors leading to the potential for financial disaster. This paper illustrates some of these major risks, and demonstrates how they may be fully evaluated so that corporate decision makers can make fully informed decisions that take account of the real risks.

Jan 1, 2003

By X Sun, L B. Zhou, H Yi, X Tang, P Ning

The rapid industrialisation in China has consumed large amounts of various industrial raw materials, which has left behind large quantities of industrial solid wastes produced from the processes of mining, mineral processing and smelting. The storage of huge quantities of industrial solid wastes is an obvious risk to the environment and human well-being. As the first step to fully appreciate the scale of this risk, it is necessary to carry out research for developing a pollution source environmental risk assessment system (PSERAS), especially for the typical staple industrial solid waste (TSISW). This paper aims to discuss the frame of the PSERAS for TSISW for large scale production. This system consists of two aspects: predicted factors and accidental ones, which involve physical, chemical and biological risk assessments, on-site and during transportation process. Two analysis methods, the analytic hierarchy process (AHP) and fuzzy logic assessment (FLA) were used to handle the complexity of environment and non-quantitative data. The risk assessment system for such a complex objective is difficult and the assessment of relative factors is problematic through the usual quantitative analysis. With the proposed PSERAS, it is possible to define the risk class of pollution sources. Furthermore, the risk assessment results will be helpful to the decision-maker, especially when facing unknown risks in the environmental management of industrial solid wastes. In addition, by means of the PSERAS, risk factors can be ranked against their contributions to environmental risk, in order to calculate their relative priorities in decision-making.CITATION:Sun, X, Ning, P, Tang, X, Yi, H and Zhou, L B, 2012. Environmental risk assessment system for typical staple industrial solid wastes, in Proceedings Life-of-Mine 2012 , pp 301-304 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By W Dodson

Major ions, d18O and d2H and Carbon-13 concentrations in groundwater from 30 bores near an open pit iron ore mine were used to better understand the chemical evolution of groundwater in the aquifer. The relatively depleted d18O and d2H isotopes of groundwater from various depths suggest that groundwater is recharged from intense rainfall events, with little evaporative effect. The 300 to 500 mg/L increase of major ions relative to that of rainfall is due to evapotranspiration of rainfall during recharge. Geochemical mass balance modelling suggests that the evapotranspiration of rainfall during infiltration through the unsaturated zone varies over six fold from 20 to 130. This coupled with the dissolution of CO2 from the unsaturated zone and partial dissolution of carbonates and gypsum from Tertiary sediments and carbonates from the Wittenoom Formation accounts for the current major ion, d18O and d2H distribution in groundwater. Despite the relatively dissected morphology and steep hydraulic gradient the results of this study highlight the dominance of vertical flow relative to horizontal flow. The study also shows the dominance of rapid recharge by significant rainfall events as an important component of the water budget for east Pilbara aquifers.

Jan 1, 2009

By A Purvee, M F. Lee, L J. Mollison

Oyu Tolgoi is a large Cu-Au porphyry deposit in the south Gobi desert, Mongolia. The first of several deep, large-diameter, concrete-lined shafts, Shaft 1, is nearing completion. It will have a finished depth of 1380 m at a diameter of 6.7 m. These shafts will provide access to and hoisting capacity for block caving of deep underground ore. Geotechnical site investigations, and associated predictions of stability and ground support requirements, are compared against actual construction performance. Routine mapping is essential, along with checks against predictions and informing the contractor of ground conditions and variances.Advance rates are compared against predicted rock mass quality. A reasonable correlation exists between Qwall and advance rate. Overbreak and concrete liner thickness is related to the blockiness quotient, RQD/Jn.A ætool-bagÆ of just a few support elements (chain-link mesh, fibrecrete and 2.4 m long friction anchors and resin grouted re-bar bolts) was able to cope with the ground conditions encountered. QA/QC procedures are essential from the factory, through site storage to installation.

Jan 1, 2008

By I Canbulat, G Si, Y Duan, X Luo

The presence of unfavourable geological structures such as faults and dykes often can contribute to coal burst risk. Seismic events associated with rock fractures tend to cluster around these structures and it is important to understand the characteristics of seismicity for coal burst risk management. In an Australian underground longwall coalmine, two clusters of seismic activities close to the longwall face and within a section of the maingate roadway which was intersected by a major dyke were respectively identified. The induced seismicity in the dyke-roadway area was closely related to the longwall mining. These seismic events were located and the distribution of seismic events shows that more fractures were distributed on the inbye side of the dyke. The spatial-temporal changes of the seismic event locations delineate the fracture propagation as the longwall mined through the dyke. The frequency-magnitude relationship of seismicity was analysed and it was found that it changed significantly when the longwall was mining towards, through and past the dyke. The monitoring results demonstrate that because of the stiff dyke, the seismicity was intensified in the roadway section. It proves that the dyke promoted stress re-distribution and seismicity in its vicinity. More fractures were induced in the hanging wall of the dyke, whereas less strain energy was accumulated and released in the footwall of the dyke.

Nov 29, 2022

By P Hatherly, A Melkumyan, D Wyman

Chemical species distributions in rock sequences can be modelled using Gaussian processes (GPs) to predict the weight percentage between known data points. This method can be improved by dividing the modelled area into regions of different mineralogy. In the context of many iron ore deposits, marker shales give the initial guidance of where these regions may lie. These shales give rise to distinctive peaks in the natural gamma downhole logs, which are conventionally identified by hand. A GP method has been developed to automate this task.Once the appropriate boundary has been located on the basis of shale occurrences, chemical assays from exploration drill holes are used to find the exact boundaries of interest. These boundaries divide the drill hole stratigraphy into regions of different mineralogy, each of which display their own distinct correlations between the main elements and oxides (Fe, SiO2 and Al2O3). Iron ore shows a negative correlation between Fe and Al2O3, but in banded iron formation (BIF) there is a positive correlation between these species. Similarly, SiO2 and Al2O3 have a positive correlation in the shales and ore but a negative correlation in the BIF. Correlations obtained within ore-, BIF- and shale-dominated regions are therefore better than those obtained using the entire log and can be used to improve the results obtained when modelling.

Sep 26, 2011

By C Switzer, R Logan, S Konopa, P Stoker, R Lewis

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Misima gold mine, located on Misima Island within the Milne Bay Province of Papua New Guinea, was operated by Misima Mines Pty Ltd, a subsidiary of Placer Dome Asia Pacific Limited (Placer), between 1988 and 2004. During this period, the mine produced 3.7 Moz of gold and 22.2 Moz of silver. In June 2012, the Special Mining Lease for the property was surrendered and incorporated into an Exploration Licence (EL). WCB Resources Ltd (WCB) entered into an exploration farm-in agreement with Pan Pacific Copper covering this EL.In June 2013, WCB published a new mineral resource of the Umuna deposit at Misima. All the drill hole data used for estimation was historical data collected by the previous owners of the Misima mine between 1977 and 2001. No new drilling was carried out by WCB. Confidence that the data could be relied on was provided by detailed interrogation of the existing data, reconciliation of the new resource model against production data and significant input from individuals who had previously been involved with the data collection, resource estimation and production activities of the Misima mine during its operation.This extended abstract will consider the challenges associated with locating, retrieving and validating historical data to use as inputs to produce an updated Mineral Resource estimate and comment on the material value of appropriate data storage, documentation and record keeping through the life of a project. It will also comment on the value of WCB obtaining access to the intellectual knowledge of many professionals that were former employees of Placer. This knowledge ensured that all the historical data that should have been available was sought out and accessed.CITATION:Konopa, S, Lewis, R, Logan, R, Switzer, C and Stoker, P, 2015. Misima gold mine – a case study in the use of historical data for an updated mineral resource estimate, in Proceedings PACRIM 2015 Congress, pp 579–586 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By J Heyes

Historically mining engineers haven't spent enough time planning waste dumps, but waste movement costs often outweigh ore haulage costs. There is a real incentive to plan waste dumps right the first time to minimise rehandle and final closure costs. At BHP Billiton Iron Ore there has been an increasing sophistication in waste dump design and they are becoming as important as the pit design. Closure landforms are now included in mining studies. Closure is embedded in the business planning cycle. The results from the recent life of mine study at Whaleback is a case in point where a base case of the shortest hauls with no closure constraints was compared against a closure case. A properly planned and executed waste plan revealed that no rehandle was required and haulage costs were eight per cent less if closure design implementation was carried out concurrent with mining. At cessation of mining the landforms were such that decommissioning of critical acid rock drainage dams and coverage of exposed pyrite areas could occur straight away, without the need for additional rehandle.  The paper also covers design and scheduling elements of waste design both in-pit and ex-pit, management of potentially acid forming material (PAF) and trends in PAF management and designing for final landform closure. This paper illustrates that there is value in terms of costs savings, sustainable outcomes and reputation if the mine planners are involved in the closure planning process.

Jan 1, 2009

By C Tonkin, S D. Howell, P V. Johnson, J Moriarty, P W. Duck

This paper presents the scientific framework underpinning the resource valuation and optimisation model (RVOM). The RVOM is a partial differential equation based real options software package, which helps mine owners optimally plan their operations, understand their project risks, and make defensible valuations. This is achieved in the presence of both financial and physical uncertainty, as well as processing capacity constraints. The RVOM can be applied to any multi-ore mine, open pit or otherwise, where the block-order of extraction has already been planned using existing software tools such as the Gemcom WhittleÖ strategic mine planning package. The RVOM can also take account of multiple commodities within a single mine, and multiple forms of price behaviour. The three key outputs from the RVOM are: valuation, optimal decision and probability of decision. A decision takes account of upfront costs, and can include an unlimited number of transitions between: normal operation, expanded operation, care and maintenance and abandonment (and variants thereof). The RVOM then employs stochastic process theory to determine the probability of reaching these decisions. This gives the mine operators clear indications as to where their risks lie, aiding their mine planning. A clear example of the RVOMs usage to a case-study gold mine is presented, demonstrating its broad applicability, the added value it can create and how users can easily make use of the RVOMÆs state-of-the-art algorithmic engine.

Sep 26, 2011

By P Trotta

The majority of water to the Olympic Dam mine and the nearby townships of Roxby Downs and Andamooka is supplied from the Great Artesian Basin (GAB). There are no permanent local water sources available to Olympic Dam. The use of water from the Great Artesian Basin by Olympic Dam receives considerable attention by BHP Billiton and is extensively regulated by the Government of South Australia. Olympic Dam has robust business management systems in place to ensure the sustainable use of water from the GAB including ISO9001 and ISO14001 systems to deliver the targeted outcomes and obligations of the Olympic Dam Environmental Management and Monitoring Program. The management systems ensure that Olympic Dam retains accountability for its water demand from the GAB over the life of the mine. This accountability has delivered continuous improvement in water use efficiency driven by operating discipline, implementation of water saving projects, using water on a fit for purpose basis including substitution from non-GAB sources, and risk management to prevent and mitigate water supply disruptions to Olympic Dam and Roxby Downs. Since the establishment of Olympic Dam, BHP Billiton has funded a reduction in GAB water flow from bores, previously going to waste, that is greater than the annual average flow used by Olympic Dam.

Jan 1, 2009