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Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002

The use of econometric models to assess the effects of a Government's policy on an industry is gaining momentum. This is particularly so for the Mineral Industry and it is important that mineral industry management understands the techniques involved in developing econometric models. Models are usually constructed outside the industry by either government departments or their consultants and used by the policy makers to investigate artificially the implementation and ramifications of new policies. This paper discusses the application of econometric models in Governmental policy determination, highlights the use of various models in Australia and gives an overview of the techniques involved using Australian examples.

Jan 1, 1982

By T Brown

Australia is now committed to the most significant period of infrastructure investment since the 1960s and the current climate of project finance and public private partnership (PPP) model uncertainty means it is imperative that the affordability and certainty in delivery of infrastructure projects is maximised.In light of the current and forecast levels of infrastructure investment it is worth drawing comparison with a similar period of Australian expansion when the nation’s first railways were constructed. Similarly to over a century ago, we are following a trend in rapid development and are already reaping the inefficiencies that could be avoided with broader technical planning and improved client coordination.The original rail networks were developed by the individual states before they combined to form a Federation of states in 1901. As a result of the adoption of different gauges by 1917 a passenger wanting to travel by train from Brisbane to Perth had to change trains six times.Similarly in 2011, there is little parity between Australian states on the quality requirements (performance specifications) for road tunnels. Differences between states start most significantly with the size of the specified traffic envelopes, thus the size of tunnel required. Where ambiguity and differences exist in project documentation, performance specifi cations (PS) and broad technical requirements for road tunnel projects, any associated risk in interpretation ultimately ends up being incorporated in the bidder’s (constructor’s) final sell price.Whilst not nearly as inconvenient as having to change train at each state border, and largely unnoticed by the general tax paying motorist, this paper examines examples of apparent minor differences in Australia’s recently constructed road tunnels to highlight the differences in road tunnel specifications.The paper identifies how these small differences manifest themselves in major price penalties between projects and further, highlights the need for further specification review, refinement and standardisation across road tunnel jurisdictions to increase road tunnel affordability.

Mar 8, 2011

By P Lindsay

A numerical model has been developed to simulate the effectiveness and costs of a number of conceptual remedial measures aimed at reducing acidity and metal concentrations in the Ngakawau River and its tributaries near the Stockton Coal Mine, situated on the West Coast of New Zealand. The Stockton Coal Mine has been in operation over the past 100 years. During that time, seepage from waste rock dumps has contributed to elevated acidity and metal concentrations in the Ngakawau River and some of its tributaries. The yearly mean rainfall at the mine site is 6000 mm. The model, developed using GoldSim software, simulates rainfall, run-off and stream discharge for 26 tributaries. It then calculates acidity and metal concentrations in the mine impacted tributaries and the dilution downstream from the mine. The model has been calibrated to measured flow and acidity and metal concentrations in the Ngakawau River and some of its tributaries. Acidity and metal loads are removed from the system in accordance with specified efficiencies and capacities of the respective conceptual remedial measures. The user can compare specific remedial measures, or a combination of conceptual remedial measures. The model predicts the acidity and metal concentrations at a number of monitoring stations for any remedial strategy selected by the user. It also calculates the capital and operational costs for that particular remedial strategy. This paper presents the development of the numerical model and describes how the end-user can use it to compare the efficiency and costs of various remedial strategies by running different æwhat ifÆ scenarios.

Jan 1, 2006

Natural Gas has been available in New Zealand for twenty years. During that time the gas share of the energy market has grown and now natural gas forms a significant part of New Zealand's energy scene, helping consumers to achieve a higher standard of living, and reducing dependence upon imported oil.Natural gas is now used for petrochemical manufacture and power generation in addition to direct supply to consumers.As concern for the environment continues to build, natural gas will have an increasingly important role to fill in these markets. This paper sets out the background to the development of natural gas in New Zealand and identifies the current markets. It then looks at those matters which are likely to influence the role of natural gas in the 1990s.

Jan 1, 1990

The Green Parrot and Reward stratabound silver-lead (copper-zinc) deposits are located in the eastern part of the Arunta Block. At Green Parrot, mineralisation is contained within a north-south striking lode horizon comprised of elongate lenses of massive garnet or calcsilicate-carbonate "lode rocks" with intercalated sericite-biotite schist and laminated biotite-feldspar schist. The "lode rocks" are increasingly calcareous to the west. The mineralisation is broadly zoned with an increase in lead content and decreases in copper and silver contents from east to west. The principal sulphide minerals are galena, sphalerite and bornite. The Reward deposit lies adjacent to a lens of massive garnet "lode rock" which is contained within garnetiferous sericite-quartz schist. Primary mineralisation consists of galena, chalcopyrite, sphalerite and pyrite. Both deposits are associated with a substantial thickening of the lode horizon which is narrow and discontinuous along strike from the Green Parrot and Reward deposits.

Jan 1, 1984

Criteria for the manipulation of commodity markets are discussed. Against the economic background of the past twenty five years actual attempts to manipulate markets are evaluated.

Jan 1, 1985

In the early 1950's, it was forecast that there would be, worldwide, a need for approximately sixty computers! Included in that estimate was provision for a considerable amount of geoscience modelling. Since 1950, the role and concept of the computer has changed. With that change has come alteration and adaptation within industry in order to better utilise the services and tools that computers can provide. For example the science of statistics prior to the computer was regarded as an intractible speciality. Computers have allowed the exploitation and further generation of statistical theory. In turn, as the science of statistics has become practical and relevant, the mineral geologist has moved from being essentially "a-numeric" to "non-numeric" to highly skilled in the application and use of very sophisticated statistical concepts. The modern computer provides the opportunity to perform many of the old practices more conveniently and/or economically and, perhaps more importantly, for exploration it provides- an enormous range of activities which previously would have been impossible. Such new activities allow for imaginative and creative application and extension of basic theory into practical situations, which when used by well trained, able people can open up new avenues of exploration. However, the use of such tools by poorly trained or incompetent people can lead to errors potentially as great as any success derived from the same tools. This paper reviews some applications of the computer to exploration, and attempts to discuss likely future developments.

Jan 1, 1987

The accepting of the geologist as part of the mining industry team has only become a reality in the last fifty years in Australia. Commencing in the 1920's it received a check in its progress during World War II. Since then it has had its highs and lows to extremes not hitherto experienced. The recent mining boom and the succeeding slump have provided opportunity to examine more critically and positively the role of the geologist in the mining industry. The future is examined, not in crystal ball fashion, but in terms of selected specific aspects. Suggestions are offered concerning these aspects.

Jan 1, 1976

By S Khosrowshahi, A Weeks, W J. Shaw

"To provide an indication of expected performance of the mine and mill, feasibility studies should include an assessment of the expected day-to-day variability in process plant feed. Attempts to do this based on conventional resource models will be flawed as such studies fail to consider and account for the in-built smoothing (averaging) of input data.This can lead to one of two situations: an expensive, over-engineered process plant that can cope with every possible situation, or operational strategies that fail to manage the natural variability within the orebody and the impact of day-to-day operational decision-making.In both cases the value of the project diminishes through excessive capital costs or reduced throughput or recovery during operations.Unlike conventional estimation techniques, the geostatistical method of conditional simulation can reproduce the inherent variability of the deposit. Once a valid model has been developed, it is possible to analyse the model using a transfer function that simulates the proposed mining processes and provides a representation of the likely variation of mill feed characteristics at any time scale.The case study demonstrates how the proposed mining strategy would result in mill feed being considerably more variable than expected, resulting in poor recovery, low throughput and potential breaches of environmental conditions. Mitigation measures included budgeting for additional mining equipment to enable greater flexibility during mining and revised stockpiling and crusher feed strategies.Awareness of the benefits of modelling the variability of geometallurgical parameters will increase the use of this approach in producing more realistic financial models of expected mine performance at the design stage.CITATION:Shaw, W J, Khosrowshahi, S and Weeks, A, 2013. Modelling geometallurgical variability - a case study in managing risk, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013, pp 247-252 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 29, 2013

By M W Kearns

The ERA - Ranger Mine ore processing operation consists of a sulphuric acid leach followed by counter current decantation and solvent extraction circuits. The most expensive unit processing operation at Ranger is the sulphuric acid leach. In 1992 and 1993 changes were made to the operation of the leach circuit. These changes have reduced power and reagent consumption in leach by 30 per cent and 20 per cent respectively with minimal effect on extraction efficiency. The first change was to operate the leach circuits at higher pHs than previously attempted. In addition a cap was placed on the amount of acid added to the leach circuit. Secondly, an on-line pH measurement system was installed and has reduced the variation with time of the leach circuit pHs. Finally, the number of leach vessels used was reduced from ten to seven. This action was undertaken after an examination of the uranium profile and the residence time in the leach circuit from previous years. This paper examines the above changes and assesses their effectiveness on plant performance and costs.

Jan 1, 1994

Details are given of the excellent performance, outside Australia, of steel slag in road pavement surfacing. Laboratory tests and plant trials have shown Port Kembla BOF steel slag to be a material with properties suitable for producing asphaltic concrete which will maintain a high skid resistance in service under heavy traffic. The high density of steel slag is a factor which will result in a cartage cost penalty likely to restrict usage to close to its source.

Jan 1, 1979

A unique set of circumstances has devel oped in the Mt. Newman Mining Co. Pty. Limited's project in the Pilbara because the mining town of Newman was built almost entirely by the Company whereas residential areas built by the Company at Port Hedland were developed as an adjunct to an existing town. The following discussion points out the different problems which have been developed in the two areas, even though basically the stand- ard of housing and general amenities is the same, and the means taken to overcome these Problems.

Jan 1, 1973

By W Newton, J Price

This paper outlines the design, justification and performance of a gravity circuit upgrade at the Marvel Loch treatment plant. The design of the upgrade was simple but effective. The key components of the upgrade were the addition of a sluice and a second Knelson Concentrator. The sluice was installed as a pre-concentration step. The upgrade also included the purchase of a Mineral Cone to treat the increased quantity of gravity concentrate. The cost was low because of the use of mostly second-hand equipment. The result was that for a cost of $75 000 the gravity recovery doubled and the overall recovery increased by over one per cent. This paper shows that you do not need to spend millions of dollars to be innovative and successful.

Jan 1, 2000

Investment decisions in the Australian mining industry are often made without awareness of the impact of risk on project outcomes. A fundamental change in thinking is required to move away from the traditional attitude of æcushioning the blowÆ towards a measured approach to project risk. Such an approach involves quantifying and understanding project uncertainty so that investments may be shielded from downside risk while at the same time exposed to upside potential. Communication and collaboration between study teams and corporate financial managers must be improved before the industry can improve its project investment record. Monte-Carlo simulation provides a way to quantify and understand investment risk, but its accuracy depends on how well the variability of input parameters is estimated. Research in this area is currently centred on quantifying uncertainty in mineral resource estimation using new conditional simulation techniques, but a less-rigorous method can be applied in practice to begin the education process and develop the required awareness at board level.

Jan 1, 2003

By P Swart, A Fletcher, P D. Erskine

Glencore Coal Assets Australia (GCAA) operates five coalmines in Queensland and has rehabilitated thousands of hectares of mined land across these sites. Accordingly, GCAA seeks to continually improve rehabilitation outcomes over time and work towards progressive rehabilitation sign-off. The ultimate test of rehabilitation success is the attainment of an agreed land-use target, whether for biodiversity conservation or some type of agricultural production, and the ability of the rehabilitated landscape to resist degradation and retain desired functions (eg biodiversity protection or grazing productivity). However, success must be based on documented evidence that can demonstrate adequate progress towards rehabilitation targets and is assessed at appropriate intervals. To assist this task, a stepwise decision guide for the GCAA monitoring program was developed to ensure consistent monitoring data is collected across the range of sites. This presentation will discuss some of the processes that were followed to allow GCAA to identify appropriate metrics to assess rehabilitation success efficiently over thousands of hectares.CITATION:Erskine, P, Fletcher, A and Swart, P, 2016. Preparing for progressive mine rehabilitation sign-off in Queensland, in Proceedings Life-of-Mine 2016 Conference, pp 148–150 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By G B. Smith

Barrick (Australia Pacific) Limited initiated a trial of Caterpillar’s Minegem autonomous loader technology in 2009 at the Kanowna Belle mine in Kalgoorlie. Autonomous loader technology offers the potential to improve loader productivity, reduce operating costs and improve safety through removing personnel from the mine operating environment. This paper discusses the implementation of the technology at the mine site, the data collected during the trial and quantifies the benefits of using automated loader technology in comparison with teleremote loader operation. The lessons learned from the trial and work planned for the future in respect of this technology is also discussed.

Mar 21, 2011

By Roberts I. R

The movement of materials is normally associated with a number of problems, some more easily overcome than others. Orebodies are frequently located in remote areas to which transport lines have to be opened. In the case of Mount Isa Mines Limited, the geographical isolation from the major consumer areas necess- itates long lines of transport and communica- tion. The problems associated with transport of metals and minerals vary from time to time because of the changing industrial environment. The increased size of vessels, changes in handling methods, and the economic pressures brought on by increased costs of transport without any guarantee of aligned increase in metal prices all contribute to difficulties which have to be faced by the mining companies in their effort to reach the markets with their products.

Jan 1, 1974

By I B. Miller

Magnesium International Limited (MIL) has broken new ground in their desire to integrate their mineral development activities in the Southern Flinders Ranges of South Australia in to the communities of the region, despite there being no statutory requirement to do so. In their efforts to define a magnesite resource adjacent to the proposed site for a magnesium metal processing facility, MIL opened their exploration program up for public consultation. In conjunction with the Port Pirie Regional Development Board (PPRDB), a community group was formed to review the impact of exploration and mining on the ecologically sensitive Southern Flinders region. This voluntary move towards full community consultation for mineral exploration was a first in South Australia and probably in Australia. The Community Focus Group (CFG) worked closely with MIL, Primary Industries and Resources of South Australia (PIRSA) and the Department for Environment and Heritage (DEH) in the development of an exploration program and Declaration of Environmental Factors (DEF) acceptable to all stakeholders. Collaboratively, the community concerns were discussed and addressed, with the community gaining a very comprehensive understanding of the exploration process and possible future mine development. A balance of social, environmental and economic factors was developed that was accepted by all parties and encapsulated in the final DEF for approval by the regulatory authority. The consultation process was a new experience for all of the stakeholders, each of them effectively exploring new ground in addressing information dissemination, risk management and the social versus economic equation. MIL developed not only a viable and acceptable exploration program but also substantially reinforced its position as a responsible corporate citizen with the Southern Flinders communities.

Jan 1, 2004

By C Sennersten, A Hellicar, C Lindley

Traditional methods of resource modelling and mine planning rely upon geostatistical methods applied to exploration drill core data to derive a three dimensional model of the distribution of metal grades, quantised into rectangular prisms or blocks. The resulting block model is a primary input into short, medium and long term mine planning. However, block attributes are averaged or interpolated over a complete block, meaning that information at smaller scales is lost to the mine planning process. Grade engineering for new mining methods, such as the development of more accurately controlled blast designs, continuous miners for hard rock and sensors for rock properties that can be distributed along the operations process and value chain, allows excavation to be much more selective than traditional blasting, and provides data for driving earlier separation of waste from ore. This selectivity can be optimised if the resolution of resource models can match or exceed the spatial resolution of selective mining technologies. Opportunities for selective mining increase as a deposit becomes more heterogeneous. This leads to an interest in methods for estimating the distribution and characteristics of mineral heterogeneity within the ore-body. The objective of this work is to present some definitions of mineral heterogeneity, and to explore how heterogeneity as defined can be measured and inferred within ore-bodies.CITATION: Hellicar, A, Sennersten, C, Lindley, C and Evans, B, 2018. Heterogeneity assessment for grade engineering in complex ore bodies, in Proceedings Complex Orebodies Conference 2018, pp 11–13 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018