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Over the past decade most, if not all participants in the resources sector have been involved in initiatives to improve margins, reduce costs and improve business profitability. In many cases the initiatives undertaken have fallen short of their stated objectives, and in some cases have resulted in the terminal decline of the underlying business. In reviewing why many such initiatives fail, a common theme of arbitrary cost reduction and a focus on minimising cost as opposed to maximising value and cashflow emerges. This paper proposes a structured process that allows mine owners and managers to develop an understanding of their cost structure and optimise production and cost outcomes from the business. The broad objective of cost optimisation is to create value by getting more out of existing and new assets by focussing on operational areas, particularly production and maintenance. The paper uses practical examples to highlight the application of cost driver trees as a mine improvement tool.

Jan 1, 2002

By Seshold P

The cost of capital is the rate at which a project's cash flow should be discounted to obtain the Net Present Value. The cost of capital is a weighted average of both debt and equity funds of a company, on an after tax basis. Two methods are described for calculating a company's cost of equity, the Dividend Valu- ation Model and, more importantly, the Capital Asset Pricing Model. A worked example is presented where the cost of capital was obtain- ed for two resource companies. The application of the cost of capital was illustrated by way of a mining equipment replacement problem. The paper outlines refinements and problems that may be encountered with the use of the cost of capital, and concludes that it is an integral part of any project evaluation.

Jan 1, 1983

By B Olsson, R Norman, M Volz

Australia has seen unprecedented demand for coal exports in the last ten years and this demand is set to expand further still according to many analysts. This rapid increase in demand has placed pressure on multi-user coal chains to guarantee the capability to meet the required demand, in terms of both current operations and capacity expansion.The projects required to deliver these forecast tonnages take place in an increasingly complex commercial and technical environment. These challenges include brownfield and greenfield projects, multiple rail and terminal service providers as well as a myriad of mine operators, all needing to operate in an increasingly integrated manner to get the most out of expensive shared assets.Increasing complexity and integration drives the need for more holistic and sophisticated analysis tools. The capacity of coal chain subsystems, such as mine, rail and port, can no longer be determined effectively in isolation. Understanding the nature of the interactions between these subsystems and the resultant capacity of the integrated system is the key to maximising value. TSG advocates the use of a total integrated system approach to understand the behaviour and performance of complex coal chains.Recently, TSG has worked in conjunction with the Integrated Logistics Company and a number of stakeholders in the Dalrymple Bay Coal Chain to deliver the first independent system master plan. This master plan has provided a quantitative and rational assessment of coal chain capacity in its current state and a prediction of its capacity once a pipeline of committed capacity improvements is in place. It is underpinned by a highly detailed discrete-event simulation model of the complete coal chain as an integrated system, including mine load-outs, rail, terminal and port operations.This paper provides an overview of the study and describes the differences between subsystem and total integrated system model performance.

Sep 26, 2011

By Wright JK, Turner RE, Batterham RJ, Morrison AL

Simulation can play an important role in the design, optimization and control of complete industrial processes, the most appropriate method depending on the particular application. Most commonly, process models or simulators are means of representing the process which are either purely mathematical or physical. Mathematical models, however, almost invariably need to be based to some extent on experimental data or require experimental verification before they can be used with confidence. Ways in which experimental and mathematical modelling techniques can be combined to best effect are discussed, with reference to the simulation of iron ore induration and direct reduction processes. A novel method is presented for the simulation of direct reduction shaft furnaces. Small scale apparatus has been developed in which ore or pellet samples are subjected to the changing environment of the industrial process. The time dependent conditions (solid temperature and gas compositions) are provided by a mathematical representation of heat transfer and the conservation of mass and energy in the process Simulated.

Jan 1, 1986

In November 1986 the Australian Minerals and Energy Council (AMEC) endorsed an "Australian Code for Reporting Identified Coal Resources and Reserves" for use by the Federal and all State Governments. Before this endorsement there were six different coal codes in use in Australia. The code is broad in nature to accommodate the wide range of coal deposits in terms of rank, quality and geological environment, that are present in Australia. In the code, Resources refer to all of the coal in situ which may have potential for use and the various categories indicate the level of confidence of the assessment. Reserves are those Resources which are planned to be mined and for which such planning has been undertaken. Only minimum guidelines are set by the code and the onus is on the estimator to state clearly the criteria used in any Assessment.

Jan 1, 1987

By Singleton T

Increasing world competition puts pressure on sales volumes and prices. This in turn reduces potential profit margins. This in turn increases the focus on costs.Increasing demands on quality and service puts pressure on delivery performance - the right product at the right time. This in turn reduces the scope for errors and delays - and this in turn increases focus on equipment reliability. In the mining industry, both costs and equipment reliability have one significant thing in common - they are driven substantially by maintenance.

Jan 1, 1998

By M Allen

By its nature, the mining industry is energy and emissions intensive. In the future, the world will still require the outputs of mining but the industry will need to adapt to the low emissions economy. Understanding the risks of climate change to a particular site or at a company level is key to managing this transition.CITATION:Allen, M, 2018. Assessment of climate risk in the Australian mining industry, in Proceedings Life-of-Mine 2018, pp 13–16 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By Gigmai W

Ok Tedi Mine is a high production open pit porphyry copper mine located high in the Star mountains of Papua New Guinea. The mine produces an average of 160 000 tonnes of ore and waste daily at a 1:1 strip ratio. Full scale drilling and blasting began in 1988, prior to which time all material was ripped and dozed.Drilling and blasting procedures at Ok Tedi underwent a major review commencing mid-1989. As a result of a mutual commitment by management at Ok Tedi and the mines explosives supplier ICI, significant reductions in overall blasting costs have been realised. These cost savings are primarily the result of the introduction of air bags, expanded patterns and better field execution.

Jan 1, 1992

By F Clark, J T. Carswell

Ore definition for final stope planning is often a challenging prospect in underground (UG) gold mines which exhibit high geological and grade variability. Unlike the grade control (GC) scenario in an open pit (OP), the ability for the mining geologist to plan a sampling campaign which effectively characterises the underlying mineralisation is fraught with difficulty. UG sampling patterns are strongly clustered and typically not dense enough to characterise the spatial and statistical properties. Very commonly, sample volumes are not large enough to provide a reliable grade estimate of the surrounding rock. These factors critically affect our ability to accurately map out ore positions and estimate metal quantities.At Sunrise Dam, traditional UG sampling and modelling techniques have proven to be an unreliable strategy for successful stope planning and extraction. The problem was first observed during the final cut-back in the open pit for which the mineral resource model was constructed from UG diamond drilling. Open Pit grade control reconciliations were strongly positive for both tonnage and grade compared to the resource model. Underground workings missed significant quantities of ore which was laterally defined by open pit reverse circulation (RC) GC drilling. Upon examination it was realised that the cause of the problem was one of inadequate sample density and sample support, the implications of which potentially affected the entire UG mine.As part of a broader study into underground grade control procedures, detailed reconciliation of initial stope production from the GQ domain also pointed to inadequate sampling as a major constraint to effective grade control and reserve conversion.To overcome this deficiency, dense 115 mm wet RC grade control drilling and conditional simulation modelling has been successfully implemented with the intent to replicate the grade control process in the open pit. The increase in sample density and sample volume has proven to be a very effective tool for mapping out highly complex mineralisation. A marked improvement in stope definition, reserve conversion and Mine to Mill reconciliations has been demonstrated on the back of an innovative approach to UG grade control.CITATION:Clark, F and Carswell, J T, 2014. Using reverse circulation drilling to improve sampling in a complex underground gold operation – an innovative approach to underground grade control at the Sunrise Dam Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 143–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

MIM Holdings Limited has acquired a reputation for the successful application of R&D to develop break-through technologies for the mining industry. The Isa Process tank-house technology has been licensed to copper refineries throughout the world, and almost 40 per cent of the worldÆs copper is refined using this technology. Isasmelt copper and lead smelting technology is either in use, or is currently being installed, by eight companies in eight countries around the world. Jameson Cell technology is widely used in the coal mining industry and increasingly in the base-metal industry. The IsaMills developed at Mount Isa and McArthur River made it possible to develop the McArthur River and George Fisher orebodies. This paper will address the need for innovation and then discuss the development of the IsaMill and Isasmelt technologies. It will conclude with some comments about why MIM has been so successful in developing such technologies.

Jan 1, 2002

By H Fletcher

Iron Ore Holdings Ltd (IOH) is an emerging junior iron ore company that is actively developing projects in the Central and Western Pilbara region of Western Australia. IOH commissioned URS Australia Pty Ltd (URS) in mid-2008 to prepare environmental assessment documents for the Phil’s Creek Project, which was rapidly moving into the development phase. This project comprised a small open cut iron ore mine that was expected to deliver approximately seven million tonnes over a five year mine life.IOH faced several challenges in the environmental assessment process for the Phil’s Creek Project. Although the Phil’s Creek Project attained approval but has now been placed on hold, it is a useful case study to discuss these challenges and how IOH addressed them. Several important lessons were learned through this process that can assist other proponents in addressing environmental challenges in a constructive and proactive manner.One major challenge faced by IOH related to the endangered northern quoll (Dasyurus hallucatus). Another challenge was the unusually high species richness of troglofauna recorded within the project area, with several species initially known only from within the proposed pit footprint.Meeting and overcoming these challenges has provided IOH with an increased understanding of the level of input required for consultation with government departments regarding environmental assessments, and this should stand the company in good stead for developing future tenements. Challenges in regards to the environmental assessment process may be faced during future developments, but IOH’s experiences to date and the lessons learned from the Phil’s Creek Project, will help pave the way for successfully overcoming them.

Jul 11, 2011

By G Cao, Y R. Cui, J X. Zhao, H P. Gui, G H. Wang, Z M. Wang, M M. Ren, B Li

Pyro-metallurgy is still the main process for lead production and a lot of lead direct smelting processes have been developed in recent years. All the processes will experience two steps in common. The first is the oxidisation of PbS to PbO and then reduction from PbO to Pb, furthermore, from ZnO to Zn. So, the composition of melts, especially the slag composition at reduction step change continuously. Up to now, there are few systematic results on the slag physical-chemical properties with its composition change. In this work, the typical lead direct smelting processes were analysed from theoretical and practical standpoints. The full-period slag composition and slag melting point change were compared. Especially, to the PbO and ZnO reduction steps, based on the full-period slag composition change, the slag properties were predicted. Based on dust composition and test results, the mechanism of Pb compound evaporation and its effect on practice and measurement of high PbO bearing slag physical-chemical property is discussed. It is suggested that to restrain the evaporation in practice and to obtain more accurate measurement results of physicochemical properties of smelting slag are the key problem not only to set high efficiency, energy saving process, but also to environmental pollution control.

Aug 21, 2024

By B Crompton, A Berghorst, G Knox

Laboratory-based dynamic testing provides an invaluable tool in the development of rock bolts for use in highly stressed, burst prone rock masses. While in most cases the laboratory-based test method is not a direct comparison to an in-situ installation due to the purely axial loading and variations in boundary conditions, it does provide an indication of the performance of the tendon system under dynamic loading. The aim of the research described in this paper is to provide an understanding of the effect of the impact velocity of the impact mass during a laboratory-based dynamic test. Understanding the effect of boundary conditions of laboratory testing will improve Geotechnical Engineers understanding of the performance in an in-situ installation. In addition, due to the limited number of dynamic test facilities, an understanding of the effects of the boundary conditions will aid in the comparison of test results for different products from different test facilities. The research was conducted using an impact tester, whereby a known mass is raised to a known height defining the kinetic energy and velocity of the mass at the point of impact with the test sample after release. The impact velocity was varied between 2.7 m/s and 5.4 m/s, while the kinetic energy of the mass was maintained at 11.5 kJ. While a correlation between the impact velocity and strain rate of the system tested was established, due to the properties of the system tested, the range of impact velocity on which dynamic tests were conducted was insufficient to result in a considerable change in the average impact load, the cumulative proximal displacement and the cumulative maximum energy absorbed over multiple impulse. However, due to the reduction in the momentum of the impact mass the impact duration and displacement during each impulse in the series of impulses reduced. CITATION:Knox, G, Berghorst, A and Crompton, B, 2018. The relationship between the magnitude of impact velocity per impulse and cumulative absorbed energy capacity of a rock bolt, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 160–169 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By B Dodd

This paper details how the Australian Securities and Investments Commission (ASIC), as a disclosure and conduct regulator, approaches regulation of continuous disclosure, capital raising and control transactions in the mining and resources sector, and the reasons for the approach. In examining this topic the paper considers the Joint Ore Reserves Committee (JORC) Code (JORC, 2004), the VALMIN Code (VALMIN Committee, 2005), the relevant ASX Listing Rules and the relevant provisions of the Corporations Act 2001 (Corporations Act). This paper discusses ASICÆs approach to expert reports and disclosure with reference to Regulatory Guides 111 Content of expert reports and 170 Prospective financial information.CITATION:Dodd, B, 2012. Issues in capital raisings and disclosure, in Proceedings International Mine Management 2012, pp 3-14 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

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 D Lozada, A Salazar

Geometallurgy is a tool that, for more than a century, has been present in the implicit operations of mineral beneficiation. There’s a need to understand the characteristics of the material to be processed. This has led metallurgists to ask geologists what type of rock and mineralogy is entering the Beneficiation Plant and vice versa. The geologist needs to understand the beneficiation process in order to be able to carry out the production programming. The paradigm is whether geometallurgy can be applied to small-scale mining or if it is only aimed at large companies that invest millions of dollars to conduct studies. With this work, we provide an example of how geometallurgy can help improve the processes of a small mining company located in Ecuador (South America). We performed characterizations of geological and mineralogical and metallurgical tests in universities and the National Research Institute of Geological Metallurgical Mining. The origin of the theme is based on the fact that gold has been detected in the final tailings. The flotation concentrates meet the standards in terms of the content of economically profitable metals, but this isn’t the case with regards to the percentage of arsenic, which has hindered sales. The hypothesis is: conducting technical and scientific research will optimize the metallurgical process for the recovery of gold and concentrates. The referential framework is the mining geology of the Bella Rica District, current status of the Beneficiation Plant. In the theoretical framework there are parameters of the veins, comminution operations, gravimetric concentration, flotation, and cyanidation. The methodological framework contemplates the characterization of the gold ore, the chemical, mineralogical, textural, metallurgical analysis and the interpretation of the results. Thus, the design of a geometallurgy model of the deposit, with its main characteristics, is a conclusion that serves as a basis for the proposal of the optimization of the metallurgical process.CITATION:Lozada, D and Salazar, A, 2018. Geometallurgy applied to small-scale mining: a case study, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 153–162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By X Zhang, Y Zhu, P E. Ngoepe, P P. Mkhonto, W Xiong, L Han, L Lu

The triazine molecules have not been given much attention and they are potential collectors that may positively impact the mineral processing industry. The adsorption of triazine as collectors such as sodium 2,6-dithio-4-butylamino-1,3,5-triazine (SDTBAT) on pyrite form a basis in design of flotation collectors that may be applicable in a wide range of sulfide minerals. The SDTBAT collector was compared with the sodium normal butyl xanthate (SNBX) and sodium normal butyl dithiocarbamate (SNBDTC). All collectors were adsorbed in their neutral form containing sodium on the pyrite (100) surface. The computational calculations found that the adsorption energies followed the order: SDTBAT (-300.35 kJ/mol) > SNBX (-186.10 kJ/mol) > SNBDTC (-163.78 kJ/mol). It was observed that the SNBX and SNBDTC adsorbed through the S atoms, while the SDTBAT adsorbed through the S atoms and N atoms onto Fe atoms. It is clear that the SDTBAT had a strong binding energy which is attributed to the presence of the triazine group that is electron depositing to the active S atoms compared to the SNBX which possessed the oxygen that is electron withdrawing. Moreover, the SDTBAT collector was found to bind stronger than the xanthate. This was complimented by microflotation tests that showed fast floating and higher recoveries of pyrite when using the SDTBAT collector than the xanthate and DTC. This clearly demonstrated that the SDTBAT is a potential collector to replace the xanthate collector due to its high selectivity and flotation power.

Aug 24, 2022

By M I. Pownceby, M A. Rhamdhani, S Palanisamy, D Fellicia, B Satritama, G A. Brooks, A Ang

Metal production have long been using carbon sources as both reducing agents and energy sources. Consequently, the global extractive metal sector contributes significantly to greenhouse gas emissions, accounting for approximately 9.5 per cent. Hydrogen gas offers as a promising ecofriendly alternative to carbon in metallurgical processes, serving as both a reductant and energy supplier with a by-product being only water vapour. However, the implementation of molecular hydrogen faces certain challenges related to the thermodynamics and kinetics of metal oxide reduction. In addressing these challenges, researchers have explored the application of hydrogen plasma, generated by subjecting molecular hydrogen to high energy to produce atomic, ionic and excited hydrogen species. Hydrogen plasma offers thermodynamic and kinetic advantages over molecular hydrogen and carbon-based reductants, exhibiting lower standard Gibbs free energy of reaction and activation energy. Therefore, hydrogen plasma can produce metal in fewer steps, process any oxide feed and feed size and even be used to refine metals. Despite these advantages, challenges exist in utilising hydrogen plasma in extractive metallurgy, including electricity costs, potential reverse reactions and industrial-scale implementation. This study provides a mini review of prior research on hydrogen plasma for metal oxides reduction, particularly iron oxide, as well as state-of-the-art techniques for its use in extractive metallurgy applications by mentioning several reactor types. Future prospects and scale-up possibilities of the hydrogen plasma in extractive metallurgy will also be presented.

Aug 21, 2024

By R Memary

The environmental and economic impacts of a significant dependence on fossil fuels are affecting the future of sectors such as of mining. These impacts are prompting the Australian Government to seek solutions for reducing its dependence on fossil fuels more generally, such developing clean energy and improving energy efficiency. However, limited research has been undertaken to assess the potential synergies between clean energy and mining in an uncertain global future. This paper analyses current energy use by mining in Australia and reviews the drivers and opportunities for energy efficiency and cleaner energy technologies to be coupled to mining under three future scenarios. Linkages between mining and clean energy are investigated for three global scenarios for mining and metals to 2030, developed by the World Economic Forum (WEF), namely Green Trade Alliance, Rebased Globalism and Resource Security. These scenarios are applied to assess how they could change the barriers, opportunities and trade-offs required for the development of a more sustainable energy sources by the minerals industry in Australia.

Nov 22, 2011

By M Lak, R Amiri, A Haratian, M Asghari, S Haji

In recent years, due to advances in designing of various magnet assemblies, a wide range of magnetic materials with different properties can be concentrated. Jalal Abad iron ore beneficiation plant, which is located in Iran, Kerman province, is currently producing iron ore concentrate with the capacity of 0.8 Mt/a by having medium intensity magnetic separators (MIMS) with rougher and cleaner stages that finally leads to the production of an iron concentrate with the Fe grade of about 65 per cent. In this plant, the rougher tailings directly goes to the thickener as the final tailings and cleaner tailings feeds to the ball mill for regrinding. Since some hematite particles with weak magnetic properties cannot be recovered from only these two stages of magnetic separation, the obtained tailings from this concentration plant has approximately an iron grade of 25 per cent to 27 per cent. Accordingly, laboratory processing tests were conducted on the obtained representative sample of the final tailings. Based on the experimental results performed on final tailings, a new magnetic drum separator with a specific magnetic assembly was designed that could finally lead to product with iron grade range of 58 per cent to 60 per cent with relative and total weight per cent of 8.6 per cent and 3.86 per cent. Finally, it could be concluded that feeding of magnetite particles to the existing drum separators, due to their high magnetic field intensity, cannot efficiently lead to improvement of the grade of concentrate. Therefore, pilot magnetic separation tests were done on the final concentrate for evaluation of product upgrading probability. Consequently, by increasing another stage of cleaning and by decreasing the magnetic field intensity, the final product grade could be enhanced from 65 per cent to 67 per cent.

Nov 8, 2021