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By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

By Huleatt M, Perkin D, McLeod I, Mock C, Pratt R, Gourlay A, Timoney E, Knight N, Ward J

Generally speaking, Australia's reserves of its more important minerals (in terms of export earnings) are adequate to sustain forecast rates of production to the year 2000. The rate of forecast production increases of these commodities (aluminium - whether as bauxite, alumina or metal, black coal, iron ore and ferro-alloy minerals, base metals, tin, uranium, and mineral sands) reflects a well- ordered and sustained growth phase of Australia's mineral industry.

Jan 1, 1981

By P Dunn

Following civil war in Sierra Leone, London Mining Plc obtained the mining license in 2006 and commenced activity to redevelop the Marampa mining and processing operations. The Sierra Leone Marampa mine is a brownfield development effort, having been operated by a few companies since the 1930s until low iron ore prices forced closure. Peak production of the preceding operations was approximately 2.5 Mt/a in the 1960s. There are two virgin ore deposits of interest for development as well as a resource comprised of tailings accumulated from previous operations. The Marampa tailings operation (Phase 1a) is being implemented first with a 1.8 Mt/a plant producing 66 per cent Fe sinter feed, expandable to 3.6 Mt/a in a Phase 1b. The first phase is currently under construction with start-up expected in the third quarter of 2011. Further expansion (Phase 2) that includes the development of the virgin deposits is currently under prefeasibility study and targets a final 16 Mt/a concentrate production. Outotec partnered with London Mining to develop the magnetic separation flow sheet using SLon VPHGMS machines to process the Marampa tailings (haematite) material. The flow sheet development process started with sample characterisation and detailed parametric investigations to evaluate SLon performance. The final flow sheet configuration, including expected circuit recoveries and concentrate quality, demonstrates the performance of the SLon VPHGMS circuit for iron ore tailings.

Jul 11, 2011

By W Lunwongsa, S Meffre, S Nuanla-ong, K Zaw, R James, A Salam

Gold and silver mineralisation at the Chatree low sulfidation deposit is hosted in andesitic volcanic and volcaniclastic rocks and characterised by multiple hydrothermal alteration assemblages and quartz-carbonate (chlorite-adularia) replacements, veins and breccias. The ore-bearing veins are influenced by intersecting structures and host rock lithologies. Emplacement of the host succession occurred at 250 ¦ 6 Ma (dated with laser ablation ICP-MS U-Pb zircon techniques), which was closely followed by mineralisation at 250.9 ¦ 0.8 Ma based on the analysis of adularia from coarse-grained quartz-sulfide (chalcopyrite-pyrite- sphalerite) veins using laser ablation Ar-Ar methods. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By P Donecker

Like all chains, iron ore values chains are only as strong as their weakest link, which in ore processing is often the humble chute. While mechanically the simplest element in the iron ore flow sheet, chutes are often the most problematic and regularly the major cause of unscheduled downtime. Chute designs have remained static for decades, despite the extra demands being placed on them by grade reduction, which impacts chutes in three ways viz: 1. Higher volumetric rates as infeed increases to meet production targets. 2. Higher moisture content as mining goes below water table. 3. Stickier properties as the dilution phase is often clay based. While there is no shortage of ideas and the geometry options are infinite, the fact is that chute design has not kept pace with grade decline and has remained essentially unchanged. One reason cited for this lack of innovation is the difficulty evaluating and de-risking designs. While the power of computers running Discrete Element Method (DEM) models has advanced, the models themselves still need to be ‘calibrated’ with the dynamic properties of the ore. Flow properties commonly measured for bin design are useful for static situations only and were never intended to predict dynamic behaviour as in chutes, a critical qualification lost in the mists of time. So while they always produce a colourful and reassuring animation, DEM models informed by static ore properties often result in wildly inaccurate real world predictions. Responding to this low success rate, many operators are now utilising physical modelling to help reduce risk and avoid the consequences of having an underperforming chute in their value chain. Physical testing, in a dimensionless scale-down of the proposed system (bulk material and chute geometry), addresses the shortcoming of mathematical models designs and when used in combination with DEM is the best option. In the ideal world, the focus of chute modelling should be innovative design concepts aimed at addressing future needs, however in reality the focus is nearly always on modifications to installed chutes that are underperforming even today. This situation can be traced back to design procedures which if informed at all, are based static ore properties. As an industry, we need to break this cycle and become more proactive, which means addressing flaws in the current design process. In 30 years of providing modelling support to the industry, I have looking at hundreds of underperforming chutes in the iron ore industry. This practical experience has led to a unique and unbiased perspective on chute design and their performance in the real world. The knowledge presented in this paper can not only be used to help avoid baked-in problems now, but also help guide and evaluate designs so we can deal with the challenges of our low-grade future.

Sep 18, 2023

By Y Wu, F-J Ping

Today, coal production accounts for about 65 per cent of the nationÆs gross energy in China. By the year 2010, the output of coal is planned to increase to 1.65 billion tonnes and by the year 2020 to 1.9 - 2.0 billion tonnes. To meet these energy needs the Chinese coal industry is developing underground coal production on a massive scale. The new drive introduced by using direct torque control (DTC) is now proven technology for mine shaft hoisting. The drive offers unequalled speed and torque control performance as well as a low impact on the supply network by controlling the power factor to unity with a minimum of harmonics distortion.

Jan 1, 2005

Near Kangiara in south eastern New South Wales, Australia, a number of polymetallic (copper, lead and zinc, with minor silver and gold) mineral deposits occur within a relatively broad volcanic rock belt, intercalated with limestones, sandstones and shales, of Silurian age. The Kangiara deposit was the most significant for the region.Adjacent to the Kangiara deposit, the unaltered country rocks are more rhyolitic than elsewhere in the volcanic rock belt, and the mineralization is accompanied by silicification, chloritization, sericitization and argillization. The host rocks typically contain a higher K20:Na2O ratio than the volcanic rocks not associated with mineralization.In the Kangiara deposit the mineralization consist of massive (in part banded), fragmental, disseminated and vein-type copper-lead-zinc ores, with the massive and fragmental types divisible into pyrite-rich, chalcopyrite-rich and sphalerite-galena-rich varieties. With respect to this mineralogy, the ore textures and sulphur isotope compositions the deposit can be compared to the stratiform mineralization associated with Silurian acid volcanic rocks at Woodlawn, Captains Flat and elsewhere in the Lachlan Fold Belt, as well as the Tertiary Kuroko deposits of Japan.

Jan 1, 1990

TasmaniaÆs mineral endowment has resulted in 600 abandoned mines. Commonly occurring sulfide minerals such as pyrite and pyrrhotite can generate acid drainage and also mobilise heavy metals. Due to the StateÆs steep topography and high rainfall the risk to water quality in the receiving environments is significant. Surface waters impacted by abandoned mine sites typically showed high sulfate and metal distribution at pH range of 2.0 to 5.0. The impacted waters generally showed metal distribution in the high acid/extreme metal to low acid/low metal range. A similar trend was shown by sulfate distribution. Elevated levels of metals and sulfate downstream from several abandoned mine sites indicated that active sulfide oxidation is occurring and these sites may be potential point sources of metal pollution in the receiving environment. High correlation between metal and sulfate distribution suggests that sulfate distribution in surface waters may be used as a cost-effective investigation tool for preliminary assessment of acid drainage.

Jan 1, 2003

By L H. G McClean

Environmental, social and governance (ESG) factors have always been important to the minerals industry and is now considered one of our most important opportunities (and risks). Getting it right from the beginning is critical for the minerals industry, and that starts with mineral exploration. Exploration, or the process of investigation of an economic mineral deposit, is generally low impact and short-term. Exploration operations vary in size and scale and often shift priority, focus and location relatively quickly. Australia is a highly regulated jurisdiction with different regulatory systems and requirements in every state and territory. Most mineral exploration is undertaken by junior exploration companies or ‘explorers’. Exploration companies are lean operations with limited staffing and resources, traditionally with no income apart from funds raised or work through partnerships. Funds are tight and administrative investment is minimised so that investment into activity on the ground is maximised. All these variables mean that understanding and implementation of ESG frameworks for an exploration company can be challenging. ESG is a fast-moving sector with currently multiple frameworks and reporting standards. Interest from community and government stakeholders as well as investors and off-take partners has been growing, with mandatory reporting soon to be implemented. The upcoming changes to the JORC Code will ensure that ESG considerations will be a key component of all public reporting. Resources have been developed to support explorers implement, manage and report on ESG considerations. Due to their scale, agility and direct importance of land access and social licence, many explorers are not the ‘cowboys’ (or ‘cowpersons’) of the industry, but industry leaders in ESG. Strong interest and leadership have led to innovative practices and strongly embedded vertical frameworks that directly contribute to social licence to operate.

Sep 1, 2024

By F I. Cox, D Peeler, T Bodisco

"Diesel particulate matter (DPM), in particular, has been likened in a somewhat inflammatory manner to be the ‘next asbestos’.From the business change perspective, there are three areas holding the industry back from fully engaging with the issue:There is no real feedback loop in any operational sense to assess the impact of investment or application of controls to manage diesel emissions.DPM are getting ever smaller and more numerous, but there is no practical way of measuring them to regulate them in the field. Mass, the current basis of regulation, is becoming less and less relevant.Diesel emissions management is generally wholly viewed as a cost, yet there are significant areas of benefit available from good management.This paper discusses a feedback approach to address these three areas to move the industry forward. The six main areas of benefit from providing a feedback loop by continuously monitoring diesel emissions have been identified: Condition-based maintenance. Emissions change instantaneously if engine condition changes. Operator performance. An operator can use a lot more fuel for little incremental work output through poor technique or discipline. Vehicle utilisation. Operating hours achieved and ratios of idling to under power affect the proportion of emissions produced with no economic value. Fuel efficiency. This allows visibility into other contributing configuration and environmental factors for the vehicle. Emission rates. This allows scope to directly address the required ratio of ventilation to diesel emissions. Total carbon emissions. For National Greenhouse Emissions Reporting (NGER)-type reporting requirements, calculating the emissions individually from each vehicle rather than just reporting on fuel delivered to a site.CITATION:Cox, F I, Bodisco, T and Peeler, D, 2014. Continuous remote emissions monitoring – the lynchpin for air quality management, in Proceedings 12th AusIMM Underground Operators’ Conference 2014, pp 137–142 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 24, 2014

By Cocks T

The 15-year long debate between the industry, Government and Aboriginal people about the rights and wrongs of Land Rights, the right of Aboriginal people to control development on their land and the relationship between the parties, has been long and often bitter. It has so far been a war of words and often the truth has been the first casualty. This paper looks at the debate and presents the perspective of Aboriginal people, as well as looking at how the industry and Aboriginal people can work together for everyone's benefit. It addresses such matters as: ò why Aboriginal people believe they have the right to control development on their land; ò the perception that Aboriginal people are anti-development; ò the perception that Aboriginal land is 'locked-up'; and ò how companies can negotiate with Aboriginal people.

Jan 1, 1994

By I Gray

While in some cases it is vitally important to measure the virgin stress in rock prior to tunnelling there are a number of cases where such stress measurement is really not required. The concept of having to have a number to put in a numerical model representing a continuum is often quite inappropriate. This paper discusses the cases when virgin stress measurement is required and the most appropriate means to measure it. The techniques discussed cover all of the overcoring systems, hydrofracture and borehole breakout measurements. It also covers the use of rock surface stress measurement, which is easy to perform and should be used to check for changing stress conditions. Unfortunately this technique has been ignored in recent times because engineers are addicted to numerical models requiring far field stresses rather than measuring the real values that exist where they matter – at the tunnel wall. A case is presented in which the measurement of surface stress in a tunnel boring machine tunnel enabled the far field stress to be determined in what must be the world’s largest overcore.CITATION:Gray, I, 2014. The measurement of rock stress for tunnelling, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 153–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Bof J, Lowe S

BHP's newest colliery on the Southern Coalfield Is Tower Colliery. It is situated near Wilton some 60 kms south west from Sydney. It commenced its operations in 1978 and since that time has experienced considerable roof problems. In its eight years of operations, production has been 936 687 tonnes to December 1985. To a certain extent this is a reflection of the ground control r,,b1cros present in the colliery. paper out Iines the signif mt g,, logical features that are known to exist in the colliery and their influence on roadway development. Faulting has hindered the mine's development and an igneous intrusion has had outhursting associated with it. The prevailing roof rock has also had an impact on the roadway conditions. The paper will look at intersection deformation in present workings. Extensometers have been installed in these areas and provide measurements to verify visual observations. The results show a significant increase in roof movement as the roadway is developed from a single heading, to a T-intersection and then Into a four-way intersection.

Jan 1, 1986

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J Rutter, D Francois-Bongarcon, M Federov, N Odiar, M Scott

There are two fundamental methods for metalliferous sensing of primary crushed ore available for deployment at operations. These methods can be classed as surface measurement techniques (including XRF, LIBS, NIR, SWIR) or penetrative/semi-penetrative measurement techniques (including PGNAA, PFTNA, GAA, MR). While the individual sensing technologies exploit different physical phenomena to measure metal content, penetrative sensor measurements of grade are often regarded to be superior to surface measurement techniques due to the much larger sampling volume penetrative techniques provide. Surface sensing techniques often utilise simpler, established technologies that have considerable benefits in the speed of analysis, capital costs, ease of deployment, social license to operate and operational safety. This paper investigates whether surface sensing techniques achieve adequate sampling representativity of primary crushed rock mass to provide economic benefit over penetrative sensing technologies for bulk ore sorting applications. The paper details the methodology used to assess whether surface XRF measurements change throughout various stages of comminution, and increased surface exposure, from primary crushed ore (top size of -175mm) to finely crushed product for assay (top size -2mm). The methodology was applied to 2 ore mineralisation styles, across variable metals and grades, to identify any associated opportunities and limitations to surface sensing techniques. The results assist in developing a method to determine if surface sensing and measuring via XRF is an adequate representation of the rock mass for bulk ore sorting applications and identify any associated limitations in particle size distribution, mineralisation or natural deportment strength to guide suitable application of surface sensing techniques.

Nov 10, 2020

The title of my presentation is `Nursing One's Resources', words that fit a young organisation like Ross Mining and words we had to apply to reach our current level as a company. To get to where we are, we had to nurse, foster and treat carefully all our available resources in the widest sense of the word, namely: ò a stock or supply that can be drawn upon (funds, mineral resources, human resources); ò the means available to achieve an end; ò skills in devising expedients; and ò practical ingenuity. I do not claim that Ross Mining is now the perfect mining company. However, we have become a profitable, dividend- paying, gold mining and exploration company which is to our knowledge, currently the cheapest gold producer on the Australian continent. Nursing our resources got us where we are and will guide us in our future development. The words `nursing one's resources' are I feel particularly applicable to mining-as I like to argue that the extractive mining industry has a social responsibility to optimise the metal output and value from each orebody which is being exploited, and preferably leave no metal behind. Likewise, a modem company cannot survive into the future without maximising and optimising its human resource potential. In this presentation I would like to present a number of actual examples of nursing one's physical and human resources. Before I do that, I will give a brief background to Ross Mining. Ross Mining NL is a young Queensland-based company that gained its stock exchange listing in September 1987 and that poured its first gold in 1989 from its own developed Belyando Mine, located in Central Queensland. We have now reached the stage of a medium-size gold producer, producing approximately 70 000 ounces of gold per year, mainly from the Yandan Gold Mine, also in Central Queensland. Our production is set to increase to over 100 000 ounces in the near future. Recent increases in our resource base have secured us a future of ten to 15 years. As a young, newly listed company, we faced all the dangers that most new small floats do as a new entrant into an established industry. However, one advantage of being young and perhaps naive, is summed up by the following Zen Buddist saying: In the beginner's mind there are many possibilities, in the expert's mind there are few. A mining company's main assets are the sum of its resource base and the skills and talents of its people. Attempting to optimise both the physical and human resources within the company has been to-date the key to our success. The first example I would like to present is linked to the exploitation of the Belyando Gold Mine in Central Queensland.

Jan 1, 1995

By McAuley T. J

Computer software is an integral part of mining operations today with many sites using six or more software packages on a daily basis. However, the use of these different programs generates the need for substantial staff training. The current trend toward large integrated packages to solve this problem is counter-productive because the relatively small companies producing specialised mining software do not have the resources to develop quality software with all the required features. Software standards are being proposed by various parties but recent history indicates these will be unsuccessful. An alternative approach is suggested using the various standards which have been developed for the Windows operating system.

Jan 1, 1995

By D Price

Mining at the Tuckabianna Mining Centre in the Murchison district of Western Australia ceased in 1997, after the production of 550 000 ounces of gold at an average grade of 2.5 g/t from 22 separate open pits (Tectonic Resources, 2006). Like many historic mining camps in WA, Tuckabianna was considered exhausted of gold, such that an economic project could not be sustained on the existing resources. Since 1997, three separate companies have owned the Tuckabianna leases. Each of these companies completed minor exploration and some form of mining study to determine if mining could be sustained. All three companies concluded that the remaining resources were insufficient to support an economic project. Silver Lake Resources acquired the adjacent Tuckabianna, Comet and Moyagee projects in 2007 with a combined resource base of 693 000 ounces of gold in 11 separate deposits. In September 2009, Silver Lake commenced exploration in the Murchison targeting extensions to the main resources at the three project centres and completing targeted regional exploration across the lease holding. At the same time, a detailed evaluation of all historic drill data was completed and all resources re-estimated. This has culminated in the resource base increasing to 1.5 million ounces of gold in 20 separate deposits, with two new discoveries being made. In August 2010, a mining feasibility study was commissioned. Preliminary results from the study indicate that an economic stand alone project can be sustained for a minimum of five years. The ability to bring the remaining resource from a once unloved project into production is due to a number of factors: historically high gold price, combining adjacent projects into a single operation, evaluation of all resources regardless of size and grade, and well funded exploration directed to both resource extensions and new discoveries. Using the Tuckabianna Project as an example, this paper attempts to outline the strategy Silver Lake used to define the resources to justify the capital expenditure required for production, and give a summary of some of the successes and failures made as the projects progress towards mining. Examples of where being too rigid and over exuberant have resulted in less than optimal use of expenditure are used to high-light the difficulties in exploring in mature terrains. Evaluation of the success of a company’s exploration strategy at all scales from project acquisition to target selection is critical to the success of future project development. This paper has been part of that process for Silver Lake with some interesting discussions and insights being made. It is hoped that some of the points discussed can be applied to other projects to help achieve the best outcome from the assets available to a company.

Aug 22, 2011

By Hughes CA

The need to recover metals from low grade deposits, old tailings, etc., combined with improvements in equipment design and the development of new extractants, has resulted in solvent extraction (SX) metal recovery reaching new importance (Webster & Ferron, 1993). The basic principle of solvent extraction is the use of an equilibrium system in which a metal ion is transferred from an aqueous phase into an organic phase, (Equation 1), (Ritcey, 1984). M + E ME . (1) The organic extractant (E) is usually specific for a certain metal ion (M) and forms a metal complex in the organic phase, leaving the impurities behind in the aqueous phase. To recover the metal, the equilibrium is reversed and the metal ion is transferred back from the organic to another aqueous phase in a process called stripping. The metal is then recovered from the aqueous strip solution, usually by electrowinning.

Jan 1, 1990

By D Bradshaw, E Forbes, M Edraki, M Tayebi-Khorami, E Manlapig

There is an increasing trend in the extraction and development of copper resources from complex deposits. These deposits pose mineral processing challenges, as they often contain low grade disseminated copper ore with high levels of impurities particularly arsenic. Although arsenic is a naturally occurring element, the concentrations of arsenic can be magnified by mining and mineral processing activities. Therefore, while arsenic has no significant market value, its presence in the ore deposit will have production, environmental and human health implications. The mining industry’s approach to life-of-mine planning has improved significantly in recent decades and managing arsenic is not an exception.CITATION:Tayebi-Khorami, M, Edraki, M, Manlapig, E, Forbes, E and Bradshaw, D, 2018. Arsenic pathways in copper mining – sustainability issues and potential solutions, in Proceedings Life-of-Mine 2018, pp 60–63 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018