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"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By B Ellis

Brunswick Mine is one of the largest underground zinc/lead mines in Canada, producing 3.4 million tones of ore annually. As mining activities advance to deeper levels, ground pressure also becomes greater. To cope with the highly stressed ground, the mine has taken some strategic measures to ensure the targeted production level. Such measures include the implementation of a pastefill system and transferring the mining method from primary/secondary stoping to pillarless pyramid stoping. With the pillarless mining method, stope sizes become smaller and the number of active stopes is also less than before. In addition, mining sequence and cycle time have to be strictly followed according to production schedule. The blasting project described in this paper tackles one of the steps in the mining cycle aimed at shortening the blasting cycle time in a stope. Furthermore, this project was conducted and managed with the Six Sigma initiative in Noranda which was implemented in the fall of 1999. Like a typical process review, the blasting operation was examined by breaking it down into many steps that can be quantified and measured. Each activity was then correlated with different factors associated with blast design as well as blast operations underground. It was found that the utilisation of voids plays a key role in the blasting cycle time. With improved void utilisation ratio, blasting cycle time has been reduced from an average of 12 shifts to ten shifts per stope. This improvement translates into approximately 180 000 tonnes of ore being blasted without any increase in manpower. This paper presents the technical aspects of the study, as well as some operational issues and improvements made during the project.

Jan 1, 2001

By A D. Strand

The Coeur dÆAlene mining district in northern Idaho, USA is the second largest producer of silver in the world. The Proterozoic Revett Formation hosts most of the mesothermal Ag-Pb-Zn vein ore in the district; it consists of informally designated lower, middle, and upper members. All three members show up to an order of magnitude of southward thickening across the regionally significant Osburn fault. Changes in thickness of the Revett Formation across the Osburn fault reflect a major, down-to-the-south, crustal-scale fault that:was active during sedimentation, was periodically reactivated during the structural and metallogenic history of the district, and likely provided first-order control over regional fluid flow during mineralization events. Where vein structures intersect favourable strata, they produce rich ore; where vein structures cross unfavourable strata, they are poorly mineralised or barren. The most favourable host rock in the district is quartzite, which accounts for the large production from the quartzite-rich Revett Formation.The district has five main types of hydrothermal alteration:feldspar destruction, hydrothermal bleaching, carbonatisation, sulfidation, and silicification. Feldspar destruction is the most extensive and pervasive type of alteration, involving the district-wide absence of feldspar from Belt Supergroup rocks. Hydrothermal bleaching results from the destruction of hematite; it forms alteration envelopes that extend for tens to hundreds of metres into the wall rocks around many of the mineralised veins. Siderite alteration is most diagnostic of mineralisation, forming alteration envelopes that extend for tens to hundreds of metres into the wall rocks around all mineralised veins. Fine-grained arsenopyrite and/or fine-grained pyrite commonly form alteration zones adjacent to high-grade ore shoots that extend for metres to tens of metres into the wall rocks. Widespread silicification is most easily recognised by the presence of numerous quartz veins.

Jan 1, 2002

By G D. Richmond, J C. Chomley

Copper has been mined intermittently at Gunpowder, north of Mount Isa, since 1927. Most ventures have had some initial success but fluctuating copper prices, the small-scale of the operations and the remoteness of the site led to closures or sale. Processing routes have included direct sale of high grade ore, flotation of oxide and sulphide concentrate, and copper cement production from mine solutions. Copper cathode has been produced by heap and in-place leaching coupled with solvent extraction and electrowinning (SX/EW). Aberfoyle Limited recently purchased the Gunpowder operation and is expanding operations. An innovative high recovery tank leaching process, including a low temperature, low pressure autoclave, has been adopted. Copper cathode will be produced from an expanded solvent extraction/electrowinning plant at approximately 45 000 tonnes per year. The combination of expanded throughput and high metal recoveries will make Gunpowder a cost competitive producer.

Jan 1, 1998

By M Nehring, M Kizil, P Knights

Mining and beneficiation can be described as sequential processes of separation of valuable minerals from waste. There is a great deal of interest in how the industry can be more effective – and efficient – with these processes. In particular, many mining companies are looking towards digital technologies to improve precision mining practices; that is, the targeted identification and separation of valuable ore from waste during the mining process. Greater precision will help unlock the value in many complex orebodies that are currently considered Tier 2 or 3 deposits. CITATION: Knights, P, Kizil, M and Nehring, M, 2018. Selection of precision surface mining methods for complex metalliferous orebodies, in Proceedings Complex Orebodies Conference 2018, pp 31–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By M Haest, O Dominguez, D Mittrup

With the current focus in the mining industry on reducing costs, while simultaneously improving ore quality, infrared spectroscopy is a tool that can potentially assist companies to meet both challenges. Changes in the nature of infrared spectra are strongly influenced by changes in mineralogy, which is a key input variable for exploration (geology and orebody modelling and ore characterisation) and mining (pit design, mine scheduling and processing plant design/management).Infrared spectroscopic logging of drill holes has been embedded as a standard tool in BHP Billiton Iron Ore exploration, with a process set up to automatically deliver mineralogy and associated imagery to the end users (typically exploration geologists). The availability of consistent and automated mineralogy drill hole logs across a project is improving the output quality and reducing re-work.BHP Billiton Iron Ore is now looking into using the same infrared spectroscopic data for other applications, including improving predictions of geometallurgical and geotechnical parameters. Trials show that addition of infrared spectroscopic data to conventional data sets (element analysis and depth information) is significantly improving the accuracy of regression models to predict the lump-fine ratio.Further initiatives around infrared spectroscopic data in BHP Billiton Iron Ore include the installation of infrared spectroscopic sensors over conveyor belts, infrared spectroscopic mine face scanning and infrared spectroscopic blasthole logging. The ultimate vision is to have consistent, seamless mineralogical data from infrared spectroscopic sensing available throughout the mineral value chain (exploration/mining/processing). This seamless infrared spectroscopic data ‘bridge’ will allow the transfer of knowledge between the different sections of the value chain (exploration, mining and processing). For example, ore handle-ability could be predicted on exploration samples using regression models built from processing plant observations. In the opposite direction, information gathered about the buried stratigraphy by infrared spectroscopy utilised during exploration, could be used to predict the stratigraphy encountered during mining. This collaboration across BHP Billiton Iron Ore is expected to deliver significant savings, while improving the quality of the final product, thus helping to drive efficiency over the next decade.CITATION:Haest, M, Mittrup, D and Dominguez, O, 2015. Reaping the first fruits – infrared spectroscopy: the new standard tool in BHP Billiton Iron Ore Exploration, in Proceedings Iron Ore 2015, pp 277–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By N R. Johnson

The overland conveyor at the Los Pelambres mine in Chile is designed to move 8700 t/h of material over 12 km at a speed of 6 m/s while descending 1400 m. The conveyor, which is divided into three segments, is equipped with a braking system that must bring it to rest without producing excessive stresses in the conveyor belt. Retardation and gently stopping a mass of 250 t requires retardation times in the order of 60 seconds. Brakes that can provide this performance require sophisticated controls as well as very high heat absorption capacity. This paper describes the thermal analysis of the braking system, which required the use of novel materials to meet the arduous duties imposed on the callipers and discs.

Jan 1, 2005

By J Nantel

Planning of modern mines entails considerable challenges in the areas of ground control, materials handling, safety, environment, equipment and personnel. Many orebodies are not economical unless efficient mining systems are used to win the ore. Relentless pressures are placed on mine operators to force them to become more productive and to make mines more competitive in modern economies. This has generated an intense drive to adopt technologies that rely on a greater degree of mechanisation, automation and computerisation. There is no turning back; high technology in mines is here to stay: computer controls and monitoring, computer aided mine design, information management systems, etc. During the past 20 years significant advances have been made in the areas of mine design, mine equipment and geomechanics. One could rhetorically ask if the advances in mine backfill technologies have kept pace with developments in other sectors of the mining industry. This paper will look at a few key mining technology sectors and will compare the relative progress of backfill technology to these sectors.

Jan 1, 1998

By C Killip

Working in Australia’s harsh climate can have a significant impact on the health, safety and productivity of our teams, but is our working environment expected to be more prone to heat stress in the future? Climate modelling suggests that we are likely to encounter more frequent heatwaves and higher apparent temperature. Does this mean that our teams will be at greater risk of heat stress, and are we prepared to deal with the changes in our future climate and the potential impacts on our working population? This paper will review the recent research on climate and projected changes to all meteorological parameters that are important in understanding the likelihood of heat stress. The paper will also describe the challenges encountered in the management of heat stress in a workforce, and then outline a systematic approach to heat stress management that will allow you to assess your own risk and manage your day-to-day operations into the future.CITATION:Killip, C, 2015. Future climate – is heat stress a real risk for the future and how can we better manage it?, in Proceedings Third International Future Mining Conference, pp 181–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

In early 1985, Bougainville Copper Limited commissioned an automatic truck despatch system to control its fleet of 44 trucks and 9 shovels. Productivity gains in the past have been the result of increasing equipment size then improving availabilities. The emphasis now is on improving the use of that availability and in particular for trucks, in reducing non-productive truck movement. A batch allocation computer based truck control system had been in operation since 1978, so to achieve the desired improvements it was necessary to move to an automatic dynamic control system. A description of the system installed is given, together with a review of how the project was engineered, the problems encountered and the results achieved to Date.

Jan 1, 1986

By G Balog, T Ormerod, D Cox

This paper discusses the methods utilised by the technical team to identify and quantify the SLC risk factors, the modifications to mine design and scheduling, and the changes to the planned risk management practices. The paper also describes the future work currently planned by the OZ Minerals technical team to quantify the various risk factors in terms of space, time and magnitude. This may better inform the future mining practices within not only the Carrapateena province but also the wider Gawler Craton.

Mar 15, 2021

By N J. Grigg

Gekko Systems has developed an underground pre-concentration plant (Python) to reduce mine operating costs. Many ores liberate favourably using either high pressure grinding rolls (HPGR) or vertical shaft impactors (VSI). Using these comminution circuits for mineral liberation; rather than for the final recovery process and by utilising a high mass pull, high recovery process route (gravity/flotation), a narrow, low head, compact processing plant was developed that can sensibly be operated underground. The Python underground processing plant can provide a number of advantages for narrow vein mines including lower haulage costs, improved mine call factor and lower operating costs. The focus on fine crushing reduces the power requirement of the plant to approximately 8 kWh/tonne. The Python underground processing plant has been designed to be towed down the decline or lowered down a shaft, and is capable of being installed in sloping, non-linear drives for placement close to the working face. The overall benefit to mining companies of this concept has been estimated to be a saving in mining costs and a significantly smaller environmental footprint.

Jan 1, 2008

An enhanced gravity concentrator was installed in conjunction with an intensive leach reactor at the Sadiola plant in Mali last year and commissioned in December 2007. There has been much debate over the years as to the effect of gravity concentration on overall plant performance. The late Dr Laplante suggested that for every ten per cent of gold recovered by gravity, there was a corresponding 0.1 per cent to one per cent additional overall plant recovery. The results at Sadiola are consistent with this hypothesis with an overall four per cent gain in plant recovery. With total gold recovery of 12 per cent in the gravity section, grades are increased from 3.54 g/t in the gravity feed to an average of 2 600 g/t in the concentrator feed to the inline reactor. The recovery of gold in the inline reactor is in excess of 98.5 per cent. This paper discusses the background to the project, the laboratory test work prior to the equipment selection, the operational results of the system, as well as the benefi ts of the future application of high mass yield centrifugal concentrators in base metals, sulfides and industrial minerals. Bench scale, pilot scale and plant practice examples are also presented.

Aug 1, 2010

By G R. Hancock, J F. Martín Duque

Post-mining landscapes are required to geomorphologically and ecologically integrate with their surrounds (Martín Duque et al., 2015). Designing and constructing an erosionally stable landform is the first and arguably most important part of the rehabilitation process. Without an erosionally stable landform topsoil and nutrients are lost, shallow groundwater is depleted as well as when excessive erosion occurs, expose suboptimal materials. Here we examine the ideas of geomorphic design and rehabilitation and how the landform can be tested and enhanced using computer based design and landscape evolution models. Specifically we evaluate the complementary capabilities of landscape modelling (SIBERIA) (Hancock and Willgoose, 2017) and geomorphic design software (Natural Regrade with GeoFluv) (Bugosh et al., 2016), in order to maximise erosional stability on post-mining landscapes (Zapico et al., 2018). CITATION:Hancock, G R and Martín Duque, J F, 2018. Geomorphic design and landscape evolution modelling for best practice mine rehabilitation, in Proceedings Life-of-Mine 2018, pp 119–121 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By S C. Dominy

The Minerals Education Australia program is offering a tertiary learning environment for the global mining industry. The Minerals Council of Australia has instigated this initiative, which is run by the Minerals Tertiary Education Council. The program is a pioneering partnership between the Australian minerals industry, Australian governments and key Australian universities. It is designed to deliver key undergraduate and postgraduate courses for tomorrowÆs minerals industry professionals in the fields of geoscience, mining and minerals engineering and metallurgy. The flagship course for geoscience professionals is the G3 Masters program. This is a coursework-based degree supported by the Minerals Tertiary Education Council, and a partnership between James Cook University, the University of Tasmania and the University of Western Australia. These partners represent the leading-edge providers of minerals geoscience education and R&D in Australia. The G3 program provides the full spectrum of post-graduate training skills in exploration, mining and economic geology topics.

Jan 1, 2003

By J R. Kyle

The Deep Mill Level Zone (DMLZ) skarn Cu-Au deposit is the deepest explored part of the Ertsberg East Skarn System extending from the surface at 4200 m elevation to the DMLZ at 2900 to 2600 m. The DMLZ is hosted in an upper Cretaceous to lower Tertiary siliciclastic and carbonate succession adjacent to the 3 Ma Ertsberg pluton. Much of the DMLZ ore is hosted by mixed assemblages of siliciclastic and dolomitised carbonate strata that have been altered to Mg-rich skarn assemblages. Unaltered equivalent strata from a 300 m cored interval in the Yellow Valley Syncline were characterised petrographically and representative samples were analysed for major element compositions. These stratigraphic and chemical units are interpreted to be responsible for the varying skarn lithologies within the DMLZ. The dominant prograde skarn assemblages are controlled by protolith composition, notably the relative abundance of quartz, dolomite, and calcite within the protolith. Models based on isochemical metamorphism of mixed assemblages of quartz and dolomite suggest that the formation of the forsterite-diopside dominant skarn assemblages resulted in the greatest amount of pore space increase. DMLZ Cu-Au concentrations were locally controlled by host lithology, with structural features providing fluid pathways that focused the mineralising fluids. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By G R. Ballantyne, G Lane

Dry milling circuits that include high pressure grinding rolls (HPGR) or vertical roller mills (VRM) and air classification have replaced dry ball milling in cement production, but how do they compare to wet milling and classification circuits in mineral processing plants? Two case studies are presented that compare the energy efficiency, wear, liberation and capital cost of dry and wet milling circuits. In both case studies the VRM and HPGR consume half the energy of a wet tumbling mill for the same duty. However, the dry classification system tends to significantly erode the energy benefits. A number of improvement opportunities are presented that have the potential to improve the energy and capital efficiency of dry milling circuits. These improvement opportunities focus on the dry classification system that consumes significant energy in heating and fan power requirements and requires a large proportion of the footprint.

Aug 24, 2022

LOCATIONThe property of the Mount Isa Mines Ltd. is situated in Western Queensland, 603 miles by rail west of Townsville, the nearest seaport. All supplies and the bullion are railed between Mt. Isa and Townsville. The climate is semiarid, and operations are conducted throughout the year without difficulty.WATER SUPPLYThe mill make-up water is obtained from the mine, and also from Rifle Creek reservoir, which is situated 20 miles from Mount Isa. The domestic supply of water is obtained from a series of bores on the company's leases.POWER SUPPLYElectric power at 3300 volts, 3-phase, 50 cycles, is supplied from the company's steam power plant, consisting of two units, each unit comprising one Babcock & Wilcox boiler, supplying steam at 300 lb. pressure per sq: in. to one 5000 kW. turbo-alternator. Pulverized coal is used as fuel, and power is being generated at a cost of 0.45d. per kilowatt hour. The coal used is supplied from the State Coal Mine, Bowen, costing 42/- per ton delivered at Mt. Isa.

Jan 1, 1933

By T Huynh, V Matanitobua, J Zheng, B N. Noller, J C. Ng, H H. Harris

A risk assessment was undertaken of the aquatic ecosystem and bioaccumulation of metals and metalloids in fish at the Leichhardt River, Mount Isa, Queensland. Residual contamination of metals and metalloids in Leichhardt River sediment was assessed and arose from mine practices using river discharge in the 1940s. The ecological risk assessment of sediments involved comparison of the concentrations of heavy metals and arsenic with those of the ANZECC/ARMCANZ (2000) Interim Sediment Quality Guidelines (ISQG). Results indicated that all sites including the background site exceeded one or both the ISQG-high and ISQG-low trigger values based on total concentrations. A lesser number of sites exceeded the ISQG-low trigger values following the 1 M hydrochloric acid extract step, which was used as an indication of bioavailability. An additional risk from particulate matter in river sediment is that acute human toxicity from the consumption of fish contaminated with metals and metalloids is unlikely. The potential risk was assessed by comparing with the maximum levels set by FSANZ (2010) for fish consumption by children and adults. In general, the liver of the fish have higher heavy metal and metalloid concentrations compared to the muscle. Frequent or regular consumption of fish from the Leichhardt River that exceed maximum levels (ML) of heavy metals and metalloids is not recommended. Risk analysis showed that an adult can consume up to 5 kg of fish fillets every day from fish caught at the man-made Lake Moondarra downstream on Leichhardt River and still be within safe consumption levels whilst a child can eat up to 1 kg daily.CITATION:Noller, B N, Ng, J C, Matanitobua, V, Harris, H H, Zheng, J and Huynh, T, ?2014. Assessment of ecotoxicology and health risk from bioaccumulation in fish of heavy metals and metalloids from historical mine practices in the Leichhardt River, Queensland, Australia, in Proceedings Life-of-Mine 2014 , pp 337–348 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

Addressing community concerns in relation to an economic activity, particularly when it causes significant community impacts, is especially important for the development of extractive industry projects. Pipelines comprise an integral part of many hydrocarbon developments, which may cause different effects on local economic development, communities and the environment compared with open cast mines. This paper explores community impacts associated with a case study of the oil pipeline æEastern Siberia-Pacific OceanÆ in the Republic of Sakha (Yakutia), Russia. Based on semi-structured interviews, conducted in 2006 - 2008 in Russia, the paper investigates claims of local communities about potential impacts of the pipeline development of their environments and economic activities as well as community claims for greater involvement in sharing the benefits from this major infrastructure project. A community of Indigenous people, Evenk, is likely to be most profoundly affected by the development due to impacts on their traditional activities such as hunting and reindeer herding. The paper examines in detail the regional economic, social, environmental and Indigenous peoples concerns over the construction of the oil pipeline and investigates actions and methods adopted by community organisations to voice their concerns about the pipeline development. Finally, the paper assesses the process of interaction between the pipeline developers and regional stakeholders.

Jan 1, 2009