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By S Doudle

The Iluka Resources Ltd Jacinth-Ambrosia heavy mineral sand mine (South Australia) is located in an undisturbed semi-arid landscape consisting of sparse trees, shrubs and grasses. The soil interspaces are covered with biocrusts, a living soil cover also found worldwide in arid regions. Biocrusts are composed of lichens, cyanobacteria, algae, mosses, liverworts, fungi and bacteria, and live on and within the first few millimetres of the soil surface. Biocrust organisms bind soil particles, sequester carbon and many fix atmospheric nitrogen making them important structural and functional components of ecosystems. Despite their important role in ecological processes, biocrusts are susceptible to disturbance; nevertheless they can recover provided sufficient inoculum is present. Cyanobacteria are the early colonisers and they capture atmospheric and landscape resources and establish conditions that subsequent successional seres can capitalise on. Research conducted in countries including China, Spain and South Africa has been focused on methods to either encourage rapid regeneration of cyanobacterial remnants or to introduce new material from cultured cyanobacteria. We have been investigating the extent and diversity of biocrusts across the 4500 ha mine lease and their potential to improve mining rehabilitation outcomes. Approximately 46 per cent of the soil surfaces are colonised with biocrusts and 33 taxa have been identified. Laboratory experiments were designed to mimic massive soil disturbance and treated with a range of water qualities. Within 22 days, treatments irrigated with fresh water were colonised by new cyanobacterial filaments with a mean surface coverage of 65 per cent. Secondary tests revealed that differences in the photosynthetic yield of the crust were dependent on the salinity levels of the irrigation water used. In 2011 this program is expanding from the laboratory into field scale trials designed to assess both the potential and practicalities of up scaling these techniques to provide crushed biocrusts and cyanobacterial bio-inoculum for use in mine rehabilitation.

Oct 5, 2011

By P Ramsaywok

The use of saline water for mineral beneficiation in arid regions is general practice and also the case with Exxaro Namakwa Sands, situated on the west coast of South Africa. Although it is ‘cost effective’ to use sea water for mineral beneficiation, downstream process separation efficiencies may be negatively affected. This is more specific to surface dependent separation techniques such as electrostatic and high tension (HT) separation. If minimal fresh water is available then, proper washing is often neglected. Salt crystals can form on particle surfaces during the drying process before electrostatic separation.This paper describes a study that has been conducted to determine the effect of upfront salt water processing on downstream electrostatic/HT separation. The study indicated that minor quantities of salt can cause the separation efficiency to decrease substantially.

Oct 5, 2011

By R Kjar

Globally, it is anticipated that the mineral sands industry will enter a period of short supply. Demand for both titanium dioxide and zircon is forecast to continue increasing, with new projects needed to come on-stream to fill the supply gap. Victoria is well placed under this scenario as a source due to the high quality of its mineral assemblage, its excellent resource grade and the globally significant size of its mineral sands resources.Australia’s mineral sands rich Murray Basin remains under-developed, especially at its extensive Victorian margins. Development to date has not progressed adequately for the reasons of technology difficulty, history of competition with other jurisdictions and the absence of a platform that requires development as a consideration for security of tenure. Victoria’s mineral sands potential is not just about the Murray Basin, in addition, there have been discoveries in the Gippsland Basin and prospective sites in the Gippsland Basin remain under-explored. Key problems included the lack of available ground for potential developers and the intellectual property of solutions to technological problems associated with the fine grained mineral deposits belonging to a previous developer (with patents now expired).As such, the timing is right to re-visit the potential of the Murray Basin as a site for long-term development with high returns based on current and predicted prices.In order to understand why Victoria’s earth resources in general, and mineral sands in particular, remain under-explored and undeveloped, the Department of Primary Industries initiated an internal review of its role in encouraging and supporting investment in the earth resources sector.As a result, the Victorian Government has committed to taking action to encourage effective ground turnover and acknowledges that a new focus on engagement with industry is needed to bring new investment to the State. The revision of the Mineral Resources (Sustainable Development) Act 1990 provides an opportunity for the government to better align its legislative processes with industry project lifecycles and facilitate access to valuable resources that currently remain undeveloped.Victoria has a track record in assisting projects reach development stage. Iluka currently has two operations in the State in addition to its mineral separation plant that is capable of processing HMC from its South Australian operations. Iluka is expected to ramp up its Murray Basin Stage 2 operations with the WRP mine scheduled to come on line in early 2012. Meanwhile, Astron is actively seeking partners for its Donald Mineral Sands project. The project is becoming increasingly attractive given the recent price hike in zircon; Astron has access to an estimated five to 6 Mt of zircon in its Donald WIM 250 deposit.Given its substantial and valuable mineral sands endowments, the State of Victoria should sensibly be the centre of future investment in project development. However, as previously mentioned this is currently not the case. The Government is therefore committed to implementing new measures that protect security of tenure but ensure that genuine companies can access endowments where they have a clear intent to work those resources.

Oct 5, 2011

By B Hou

The Eucla Basin in southern Australia is emerging as an important global source of zircon from heavy mineral sands. Understanding the geological evolution of the basin and movement of heavy minerals down peripheral paleovalleys and along paleocoastlines is essential to effectively refine exploration strategies for heavy minerals in the basin. Integration of geoscientific datasets in a Geographic Information System (GIS) environment has proved to be effective in reconstructing depositional environments along the Cenozoic basin margin and in tracing the buried paleorivers that once drained broad areas of the Archean-Paleoproterozoic Yilgarn and Gawler cratons, the dominantly Mesoproterozoic Musgrave and Albany-Fraser Provinces, and the Neoproterozoic-Early Paleozoic Officer Basin. Sea level highstands during the late Middle Eocene (39 - 36 Ma) are associated with formation of the Ooldea coastal barrier complex and the zircon-rich heavy mineral deposits at Jacinth, Ambrosia and Tripitaka. More extensive transgression during the Late Eocene (36 - 34 Ma) built the complex Barton shorelines that host the Cyclone deposit and the extensive ilmenite-dominated occurrences of the Barton West prospect. Multi-generation reworking of the source sands is indicated by the high proportion of deposits that are zircon-rich relative to titanium minerals. The age distribution of zircon grains in heavy mineral concentrates from the Ooldea and Barton barrier systems points to the Musgrave Province as the predominant ultimate zircon source. Paleorivers discharging along the northern basin margin presumably carried a sediment load that was then redistributed by easterly longshore drift to build the extensive coastal sand deposits along the northern and eastern basin margin. The south-eastern extension of these deposits was reworked during Miocene-Pliocene (15 - 2 Ma) times into a series of regressive strandlines that show angular discordance with the Eocene coastlines. This discordance is consistent with evidence for long-wavelength tilting of the Australian continent from Middle Miocene times, as the continent drifted toward a dynamic topographic low induced by convective mantle processes associated with the South East Asia subduction systems. The Dromedary and Gulliver’s deposits probably formed at this time. Ongoing research is focused on the geological features of the basin that influence heavy mineral transport, concentration and preservation, and the processes leading to deposits with high zircon content.

Oct 5, 2011

By M I. Pownceby

High temperature roasting studies on chrome-spinel contaminated ilmenite concentrates showed that sulfur, introduced through a sulfidising roast treatment, selectively reacted with the chromium in the spinels. The roast treatments were carried out in a laboratory scale rotating drum kiln using a standard Becher-style heating profile (10 h, 1075ºC), char as the reductant, and variable amounts of added elemental sulfur (0 - 3 wt per cent).After roasting, bronze-coloured grains were visible representing chrome-spinels that had undergone selective sulfidisation. SEM imaging of the products showed that sulfur was preferentially concentrated in ~5 - 15 µm thick rims fully enclosing the chrome-spinel grains. The sulfur-rich rims became a sink for manganese (Mn) from the ilmenite resulting in the rims being rich in Cr-Mn-Fe-sulfides. Quantitative electron probe microanalysis of phases present within the rims identified two sulfide phases. The first sulfur-phase (S-phase) was low in Mn (1 - 3 wt per cent) and high in Fe, Cr and S, while the second S-phase was considerably higher in Mn (30 - 35 wt per cent Mn) and lower in Fe and Cr. The dramatic change in the composition of the chrome spinels after sulfidisation is likely to significantly alter their physical properties (eg hydrophobicity, conductivity, etc). This should make their physical separation from the ilmenite potentially easier than roasting/magnetic separation methods.

Oct 5, 2011

By E J. B van Etten

Pit lakes may form when open cut mining leaves a pit void that then fills with ground and surface waters. This often replaces terrestrial ecosystems that existed prior to mining with an aquatic ecosystem, affording an opportunity to improve regional aquatic biodiversity values through targeted aquatic restoration (McCullough and van Etten, 2011). Restoration theory provides guidance when restoring disturbed systems towards landscapes that are of regional value and relevance. But how do we identify a restoration target for a novel aquatic habitat that only exists in the new post-mining landscape? This paper presents a process of first identifying and then surveying local representative aquatic systems, to provide a direction for pit lake restoration efforts and achievement criteria for pit lake relinquishment, using a case study from a sand mining operation amongst wetlands in south-western Australia.The company mines silica sands following mechanical removal of topsoil and then extraction of the ore from below the watertable by dredging. Assessment of wetland and riparian vegetation was achieved through the establishment and measurement of temporary monitoring transects across five natural wetlands in the Kemerton area. Several more regional wetlands were also visited and observations made to supplement and validate these data.Distinct vegetation zonation was found across each wetland, although typically wetland basins were unvegetated or filled with younger woody plants with patchy distributions. Fringing riparian vegetation consisted of few species (commonly the paperbark Melaleuca rhaphiophylla and the sedge Lepidosperma longitudinale), but community composition and structure were variable between wetlands. The pattern of vegetation seen across natural wetlands was best explained by topography and soil chemistry, with low lying wetland areas more likely to experience regular flooding and accumulate organic matter and nutrients.In conclusion, where they are available, regional natural waterbodies may constitute the best valid restoration goal. Nevertheless, the goal may need to consist of a range of closure design opportunities, rather than a single target.

Oct 5, 2011

By M C. Ackland

The Grande Côte Mineral Sands Deposit (GCMSP) is located on a coastal mobile dune system in Senegal on the west coast of Africa. Senegal is a stable, democratic republic, having gained its independence from France in 1960. It has a population of about 12.5 million people. The dunes begin about 25 km north-east of Dakar, the capital city of Senegal, and extend northwards for more than 140 km. The mineralised dune system averages about 2 km wide with some areas extending to up to 4.5 km wide.Mineral Deposits limited (MDL), a Melbourne-based company with over 60 years operational experience in mineral sand mining in Australia, holds, through its Senegalese subsidiary MDL Senegal SARL (MDLS), a 25-year Mining Concession covering the deposits. The main heavy mineral (HM) areas identified to date are, from south to north, Mboro, Fass Boye, Diogo and Lompoul. Within the Mining Concession there is potential to identify additional resources beyond the limits of present drilling. The dunes are mobile or semi fixed, pale yellow in colour and overlie older white marine sands. The dunes range between 5 m and 30 m in height and the mineralised zones, which are essentially flat-lying, average around 15 m in thickness. The mineralisation consists, principally of ilmenite with accessory zircon, rutile and leucoxene. Zircon and ilmenite are the main commodities of interest.Independent consultants AMC estimated mineral resources for the four main deposits in 2006 of 1330 Mt of sand averaging 2.0 per cent HM at a cut-off grade of 1.5 per cent HM. At a cut-off grade of one per cent the resources were 3200 Mt averaging 1.5 per cent HM. All of the estimate was classified as Inferred Resources under the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2004).Subsequent completion of infill drilling, sampling and assaying of the initial mining area, centred at Diogo, was completed in 2008, enabling a final dredge path to be designed and ore reserves estimated, based on a JORC compliant Measured and Indicated Mineral Resource. Infill drilling is continuing in the Lompoul and the results of this campaign will be included in the JORC compliant data base by AMC in April 2010 to enable the 15 per cent year dredge path and mine plan to be finalised.Development studies have shown that the project can be optimised as a dredging operation, with mineralised sand being treated in a conventional floating spiral preconcentrator, wet concentrator and dry mineral separation plant. Engineering work now substantially completed by Ausenco Limited (Ausenco) has developed the combination of some existing plant from MDL’s past operations, and new plant for the complete process from dredging to final product separation and grading. Testwork on a series of bulk samples has determined that the project can yield a high quality zircon product and an ilmenite product along with minor rutile and leucoxene.Work to date indicates a likely output of around 80 000 t of zircon in various quality streams (Primary, Secondary, Standard and Foundry Grades), around 550 000 t of ilmenite plus around 15000 t of rutile and around 12 000 t of leucoxene/secondary ilmenite. Planned zircon output would represent around 7per cent of the total world production, which would make the GCZ&IP a significant producer on a world scale.The studies have indicated capital costs to be in the range of US$400 M total operating cost (after completion of ramp-up) of around US$50 M - $55 M/a. Revenue is expected to be in the range $127 M - $157 M/a.

Oct 5, 2011

By J M. Shekiro

In the chloride process to manufacture TiO2 pigment, feedstocks containing higher TiO2 contents (high-grade ores or HGOs) are favoured in order to minimise production of undesirable by-products. Most of today’s HGOs are produced through the smelting or reduction and leaching of ilmenite, processes which consume significant energy and/or produce large volumes of non-titanium materials that may have to be landfilled. In order to improve the economic and environmental sustainability of its TiO2 business, the DuPont Company, working with Kobe Steel Ltd, has developed an innovative process called TiRON for making HGO. Using a rotary hearth furnace, the process reduces ilmenite to a high TiO2 slag and metallic iron granules. The TiO2 slag is suitable for TiO2 pigment manufacture, and the iron is suitable for steel making. TiRON can process sand or rock ilmenite of varying compositions and particle sizes. Fossil fuel instead of electricity supplies the energy for the reduction. Dusts and off-spec materials are recycled. These process attributes, together with capital requirements estimated to be significantly lower, give TiRON substantial economic, environmental, and process flexibility advantages over conventional ilmenite upgrading processes. TiRON has been demonstrated at the semi-works scale, and preparations are being made to bring it to the pilot scale.

Oct 5, 2011

By J D. Grobler

In the heavy minerals industry wet high intensity magnetic separators (WHIMS) are widely applied for primary magnetic separation of magnetic minerals and non-magnetic minerals. This piece of equipment is well known for its robustness to handle a wide range of feed conditions and still produce stable product qualities and yields. A heavy mineral production plant aimed to increase production through their WHIMS plant containing 11 duties and 26 units. Instead of adding new units an alternative approach was followed to firstly maximise the efficiency of the current circuit and secondly to consider possible reconfiguration of the circuit to produce additional product tons for minimal capital investment. In order to characterise the current circuit’s efficiency, identify pockets of excellence and determine the areas for improvement the whole circuit was surveyed several times and mineral mass balances were drawn up.This paper aims to: discuss the modelling process of the WHIMS circuit,explain the calibration and validation process followed to ensure the accuracy, anddemonstrate the sensitivity analysis performed on the different options. From this analysis an efficiency criteria was developed to compare different circuit configurations that enabled the production plant personnel to make an informed decision on the way forward.

Oct 5, 2011

By J Ledgerwood

Namakwa Sands is a mineral processing company based on the West Coast of South Africa and is solely owned by Exxaro Resources Limited. Mineral ore is mined and processed, concentrated and both chemical and mechanically upgraded before being sent for electrostatic and magnetic separation units. The final high value mineral products report as Zircon, Rutile and Ilmenite.The recovery of non-magnetic material is largely dependent upon a number of factors, including but not limited to dew point, ambient temperature, feed rate, mineral size distribution, specific gravity and mineral content in head feed. One important limiting factor to recovery in typical dry mill operations is the particle size distribution of the feed. Variance in the particle size has catastrophic consequences for recovery. This is the reason for this study. Until recently large variances in non-magnetic production were viewed to be a function of machine operation. This view was later rejected with the feed size distribution determined as the major driver of low recoveries, for Namakwa Sands orebody 50 per cent variance in particle size distribution can be noticed within one day. This is because of the successive mining blending techniques employed.The predicament is that the two modes were so closely placed together that recovery of a single mode is almost impossible without the consequence of greatly reducing recovery. The second mode was found at 125 µm while the first was at 90 µm. Interestingly, for the mentioned feed type a cumulative size distribution of a unimodal feed type is almost exactly the same as for a bimodal size distribution. Thus a plot of cumulative size distribution will show no difference due to the modes being so close together. This is the reason why this phenomenon was not noticed before.The study also found that, using an high tension roll (HTR) or rare earth roll, a fine stream with a single mode at 90 µm versus a coarse stream with a single mode at 150 µm would yield completely different results interms of yields. Larger conductive particles are thrown from the roll while small particles loose charge faster (entrainment). Results in terms of the bimodal size distribution show that even though 25 per cent of the feed type is greater than 150 µm the yields followed a similar pattern to that of the coarse particles rather than that of the majority (75 per cent) fine particles. This confirms what was published by M Ziemski and P N Holtham in 2005 on charge decay rates; they mentioned that particle bed effects played a major role in recovery.

Oct 5, 2011

By Mohammad Mehdi Salarirad

Fouling of activated carbon by different organic species is a great concern in carbon in pulp and carbon in leach circuits. The rate of gold adsorption onto activated carbon from synthetic gold solutions which contained different amounts of potassium ethyl xanthate (PEX), potassium isobutyl xanthate (PIBX), and methyl isobutyl carbinol (MIBC) were evaluated through batch adsorption tests. The results of these experiments showed that the gold sorption rate rapidly decreases by increasing the concentration of collectors including PIBX and PEX up to 20 mg/L and at higher concentrations, the kinetic rate constant (i.e., k value) gradually leveled off to 53 h-1 for PIBX, which is 46% lower than the 99 h-1 for PEX. At low concentrations of up to 15 mg/L of MIBC, a gradual decrease of the rate constant was observed, while at higher concentrations, the decrease was found to be more pronounced. The gold loading capacity and the rate of gold adsorption onto activated carbon from a gold cyanidation pulp in the presence of flotation reagents were also evaluated. The results of these experiments showed that the flotation reagents have no significant effect on the gold loading capacity of activated carbon at prolong adsorption period, meanwhile the rate of gold adsorption continuously decreases by increasing the concentration of flotation reagents in the leaching solution.

Oct 1, 2011

By H Waterer, L Zheng, T Kalinowski

The Hunter Valley Coal Chain (HVCC) consists of mining companies, rail operators, rail track owners and terminal operators, together forming the worldÆs largest coal exporting facility. In 2008, the throughput of HVCC was about 92 million tonnes, or more than ten per cent of the worldÆs total trade in coal for that year. The coal export operation generates around $15 billion in annual export income for Australia. As demand has increased significantly in recent years, and is expected to increase further in the future, efficient supply chain management is crucial. The Hunter Valley Coal Chain Coordinator Limited (HVCCC) was founded to enable integrated planning and coordination of the interests of all parties, thus improving the efficiency of the system as a whole. One of the many planning challenges faced by the HVCCC is that of annual maintenance planning. Different supply chain elements, such as trains, railway track, terminal equipment and load points, must undergo regular preventive and corrective maintenance, leading to significant reductions in system capacity (up to 15 per cent). However good alignment of the maintenance tasks can reduce their impact, and the HVCCC undertakes an annual process to ensure the impact of maintenance on the supply chain capacity is as small as possible. This is achieved in an iterative negotiation process between HVCCC and individual service providers. In the past, maintenance schedule optimisation was largely manual, which for the more than 1000 tasks involved is quite labour-intensive.In this paper the authors describe an approach developed at the University of Newcastle in partnership with the HVCCC to automate this schedule optimisation process. We will discuss our experience in applying exact (mixed integer programming) and heuristic techniques from mathematics and computer science to address the problem. This work is anticipated to lead to new decision-support tools for the HVCCCÆs capacity planning team.

Sep 26, 2011

By E Ben-Awuah

Mine planning is the backbone of all mining enterprises and determines the profitability or otherwise of any mining investment. Providing high quality ore and tailings containment at the right time are the main drivers in oil sands mining. Recent environmental and regulatory requirements also makes waste management an integral part of mine planning in the oil sands industry (Directive 074). Due to the limitation of lease area, the pit phase advancement in oil sands mining is carried out simultaneously with the construction of tailings dykes in the mined out areas of the pit. These in-pit dykes are constructed to hold tailings that are produced during the processing of the oil sands ore after an initial external tailings facility. Most of the materials used in constructing these in-pit and ex-pit dykes come from the oil sands mining operation, making it necessary to have a plan for supplying the dyke material. The research problem here is categorised as: determining the order of extraction of ore, dyke material and waste to be removed from a predefined ultimate pit limit over the mine life that maximises the net present value of the operation û a strategic schedule; anddetermining the destination of dyke material that minimises construction cost depending on the construction requirements of the various dykes as per their designs û an operational schedule. There has been developed, implemented and verified a theoretical optimisation framework based on mixed integer goal programming (MIGP) to address the oil sands long-term production scheduling and waste management problem. The research introduced the development of multiple material types and multiple destination optimisation techniques using MIGP in the context of mine planning. This study presents an integration of mixed integer programming and goal programming in solving large-scale mine planning optimisation problems using clustering and pushback techniques.

Sep 26, 2011

Reconciliation involves the collection of tonnage, grade (quality) and contained metal (product) data from disparate and hopefully independent sources. Examples are exploration data, production sampling data from blastholes or drawpoints, and process plant data. These data may be compared by means of ratios (factors). The F1 factor usually relates short-term (ore control) model tonnages, grades and metal content to ore reserves depleted. The F2 factor usually relates received-at-mill tonnages, grades and metal content to delivered-to-mill = production tonnages, grade and metal content. The F3 factor is F1 × F2 and enables a comparison of a mineÆs ability to recover the tonnage, grade and metal content estimated in ore reserves. The F1 factor measures the accuracy of orebody knowledge in the ore reserves to the demarcation of ore and waste by ore control (short-term model). The F1 factor may be used to check and calibrate the selectivity of mineral resource models and/or planned dilution assumed in transfer from mineral resources to ore reserves. The F2 factor enables a check on unplanned dilution entering the ore stream between ore control and the mill. Using the factors it is possible to calculate a monetary value on improvements in the accuracy of orebody knowledge, selectivity and the effects of dilution and ore loss. Reconciliation should be an implicit part of the mining process, and reconciliation targets should be a key performance indicator for well-run mines.

Sep 26, 2011

The Rio Tinto Iron Ore group currently estimates grade attributes for mineral resources using ordinary kriging (OK). OK produces a smoothed globally unbiased estimate, but does not capture local variability, which can have significant impact on mine planning and scheduling. The dimensions and the multivariate nature of iron ore deposits make point simulations of whole deposits impractical. With a direct block simulation method the size and speed limitations of point simulations can potentially be overcome, resulting in a viable method for capturing local variability and for providing risk measures into the mine plan and schedules. Some iron ore deposits are highly folded (post mineralisation) and require preprocessing using an unfolding algorithm to properly define the continuity parameters and directions of anisotropy before simulation can proceed. Block co-simulation proceeds in unfolded space and since mine planning require a block-model with regular block-sizes; a regular block-model is unfolded first. This paper discusses a block co-simulation approach that can be used to simulate the irregular blocks resulting from the unfolding process. A section of an iron ore deposit is used for testing the block co-simulation algorithm and the simulation results are compared against the Isatis direct block simulation method. Available blasthole data is also used to validate the behaviour of the block co-simulation algorithm.

Sep 26, 2011

By A T. Bernardes

Using the cellular automata computational technique it was possible to simulate the generation and discharge of an iron ore pellet pile inside a direct iron reduction oven, as well as to calculate the reduction degree of the pellets as they leave the oven. It allows simulation of the variation of operational parameters and verify the results of those variations in the pellet reduction degree. The simulated data was validated in two instances: for the dynamics of the pellet flow inside the oven it was used in an acrylic bi-dimensional silo; and data from direct reduction iron literature was used for validation of the pellet reduction. The simulated results were considered acceptable to describe the movement of the iron pellet inside the direct reduction iron oven and to describe the iron pellet reduction direct in the oven.

Sep 26, 2011

By M Reisi, H Waterer, M Savelsbergh, F Engineer

The Hunter Valley Coal Chain Coordinator (HVCCC) Limited is the primary planning organisation responsible for the export of coal through the Port of Newcastle, Australia. HVCCC stakeholders include producers (mining companies), rail track owners, above rail operators, and terminal operators. The HVCCC is tasked with coordinating the activities of all the corresponding parts of the coal export supply chain so as to maximise the system efficiency. The HVCCC also has a forward looking planning role: with demand for coal expected to double in the next decade, strategic capacity planning is a core activity for the HVCCC. Optimisation and simulation models are key aids in such activity. They are used to suggest and evaluate infrastructure expansions and operating policy changes. These models require input data in the form of shipping stems, which are arrival streams of ships at the port, together with their cargo types and composition, and date and time of arrival.Although everyone is familiar with the expression ægarbage in equals garbage outÆ, relatively little research is dedicated to the issues surrounding input data generation. In this research we seek to redress this, and have developed a method for generating high quality shipping data. Shipping stems used as input should be realistic, reflecting key characteristics of historical patterns. They should accurately represent future demand scenarios. Yet they should also have controllable parameters that can be used to test what-if scenarios, such as are required by the HVCCC to answer questions about future infrastructure or operational plans.Here we review our process for achieving this, and give a case study analysing the effects of different shipping stems on the performance of the coal chain, as measured by a capacity assessment tool. The latter is an optimisation model that takes shipping stem and infrastructure data as input, and calculates key supply chain performance metrics. The potential benefits of alternative demand management strategies are analysed by measuring the performance of the coal chain given different shipping stems obtained via the stem generatorÆs controllable parameters.

Sep 26, 2011

By B J. Wilde

Evaluating the resources and reserves in a mineral deposit requires many interdependent subjective decisions. The decision of stationarity is arguably the most important. This decision includes: the choice of domains that subset the entire deposit, modelling the boundaries of each domain, and understanding and considering the nature of the contacts between domains. Reasonable choices are made in consideration of the geological context, the available data, the goals of the study and the available resources for the study. This paper reviews aspects of the decision of stationarity in modern resource assessment with a focus on quantifying uncertainty and using numerical/statistical tools to help the geomodeller. The use of volume/distance functions to quantify uncertainty in domain limits is particularly important and is presented in detail. The use of contact plots provides help with the continuity of grades across domain boundaries. Realisations are not assembled as a branching combinatorial of all possibilities, but as a set of realisations that provide a measure of uncertainty. This paper amounts to a definition of stationarity for modern resource assessment.

Sep 26, 2011

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

This paper describes modern long-term mine scheduling and gives an example of its application. It then discusses the obstacles to the implementation of such schedules.

Sep 26, 2011