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By B E. Hall, D B. Kahler

"'Optimisation' has become a catchcry among many mining companies looking to tell the market how mining businesses will be improved and shareholder value increased. Consequently, the term 'optimisation' has been adopted by many service providers as they look to assist mining companies in achieving their objectives. But the explosion of services and products being offered with the label 'optimisation' has created some confusion. Mining companies ask for help in 'optimising' and service providers offer their assistance because they have a product that has the word 'optimisation' in its title. This is of course an over-simplification, but not by much! The authors' discussions in recent years with both mining companies and service providers have uncovered a number of very different definitions of optimisation.This paper provides a framework for identifying the scope and approach of different mining optimisation products and services, particularly the distinction between optimisation of components of the operation and the business as a whole. The different types of business optimisation are discussed, highlighting the failings of the mining industry's typical approach of strategy selection (as opposed to strategy optimisation). Mining business optimisation is discussed as a wicked problem, with the implication of this on how strategy optimisation models should be used and what the objectives of a business optimisation study should be.Case studies are also included to illustrate how fully flexible strategy optimisation models have been applied to assist decision-makers understand the impacts of changes in one part of the operation on the whole mining and treatment process, from geological models to the sale of product to customers.CITATION:Kahler, D B and Hall, B E, 2016. Strategic decision-making in mining – business optimisation using flexible evaluation models, in Proceedings Project Evaluation 2016, pp 215–225 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J Player, R de Vries, E Villaescusa, R Hassell

Concerns regarding the uncertainty of stope dilution at MMG Dugald River Underground Mine led to a trial stoping program to acquire full-scale comprehensive geotechnical information and to test the validity of the geotechnical and mining parameters. Given that stope production drilling and blasting is a key parameter that influences dilution a detailed stope blast vibration project was implemented. The stoping trial consisted of 19 stopes, a combination of both sublevel open stoping and longitudinal and transverse stopes, of which five were monitored for blast vibrations.The blast vibration project utilised 20 triaxial geophones and five triaxial accelerometers installed in the hanging wall of five monitored stopes. For each stope fired, full blast waveforms were recorded along with detailed information of the blast design. Analysis of the blast vibrations used the Holmberg-Persson approach, with potential damage determined by the relative (Holmberg-Persson) K values.The project identified the benefit of parallel, breakthrough slot holes in reducing blast vibration damage. The results show that radial rings toeing or stabbing into the stope wall lead to higher vibrational energy yield which contributed to increased overbreak. Hanging wall overbreak, by comparison, with parallel, breakthrough blastholes with 1 m standoff, combined with lower density explosive charging (0.8 EP) and increased delays limited blast vibration damage. A number of ring burdens from 1.4 m to 2.5 m were monitored with no difference in terms of energy yield being identified. Changes to the stope drill and blast design are suggested to better control the large blast vibrations and recommendations from this project have been implemented into future mine design and planning.CITATION:Hassell, R, Villaescusa, E, de Vries, R and Player, J, 2015. Stope blast vibration analysis at Dugald River Underground Mine, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 221–232 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By C Tapia, B Hay

There is a close relationship between the mining industry, economic growth, and technological and social development. Mining activities benefit all economic agents, but only during a timespan determined by available reserves, primarily driven by internal factors such as production rate, technology and costs, and external factors such as prices determined by the market and taxes and royalties controlled by governments (Gordon and Tilton, 2008; Henckens, 2021; Tapia Cortez et al, 2018). The intense use of Mineral Commodities (MC) needed to maintain the current lifestyle has placed ore depletion as one of the main threats to sustainable economic, social and technological development. However, ore depletion does not only arise due to the finite nature of MC, price fluctuations or technological challenges. It is also triggered by the ‘economic limits of extraction’, determined by the optimisation of financial factors and technical restrictions within the regulatory framework (Henckens, 2021). Most reporting standards – if not all – define ore reserves as ‘the economically mineable part of a Measured and/or Indicated Mineral Resources’ determined by the technical and economic viability of extracting, processing and commercialising MC having the NPV as the fundamental decision – making tool (JORC, 2012; Krzemień et al, 2016). However, is the NVP an ‘economically’ basis index able to capture the complexity of economic phenomena? No, it is not, and it is crucial to define what is economic and financial. Although related, they are different disciplines. Economics studies the behaviour of the different market agents, including human behaviour and policies and explains the factors involved in the scarcity (or surplus) of goods and services. Finance focuses on financial systems and managing funds considering the time, cash available, and risk. It involves banks, loans, investments, and savings and can be considered a small subset of economics (Simon, 1959; Tapia Cortez et al, 2018). Given the economic nature of ore Reserves, endorsed by governments (Figure 1), NPV is an incomplete tool to determine ore Reserves as it limits the problem to simply maximising cash flows instead of optimising the economic benefits for all economic agents. In addition, using the rigid scheme of controlling taxation – unable to adapt to new market or economic conditions and systematically increasing – within the NPV framework only increases the sub-optimisation of ore reserves, mainly due to the systematic taxation rise. Short-term benefits of higher taxes and royalties are unlikely to offset the impacts of reducing exploration and project development in the long-term, which not only boosts ore depletion concerns but also reduces competitiveness, threatening economic and social welfare (Fisher, Cootner and Baily, 1972; Gordon, Bertram and Graedel, 2007; Lilford, 2017; Mardones, Silva and Martínez, 1985; Radetzki, 2009; Rodrik, 1982; Tan, 1987; World Bank, 2000). Holistic methods and collaborative tools, able to dynamically simulate and assess how changes in the technical settings, regulatory framework (taxes and royalties), and financial factors affect the availability of ore reserves and the impact for all economic agents, should be incorporated into the evaluation process to fill the gap.

Aug 2, 2023

By X Li, J Wang, D Liu, Y Liu, K Hu

"Since the adoption of open-door policy 30 years ago, rapid economic growth has resulted in serious resource depletion and environmental destruction, especially in mining areas. As an urgent response to this situation, the central government and the Ministry of Land and Resources (MLR) have adjusted policies with concrete and realistic actions for halting this trend of non-sustainable mining activities in China. æGreen Mine CampaignÆ is one of the actions implemented. In 2010, MLR announced the æGreen Mine CampaignÆ, in which existing and new mines will be evaluated against the æGreen Mine Construction StandardsÆ and certified as æGreen MineÆ if complying with these standards. The standards cover five key aspects: the considerations of science-supported resource exploitation efficient resource utilisation standardised management environmental friendliness harmonious community relationship.Every year, MLR reviews ægreen minesÆ from all provinces. Thirty seven mines, including coal, metal, non-metal, gold, chemical industry and building materials mines, passed the review and were certified as green mines in 2010. In 2011, 187 out of 194 mines that participated in the review were certified as ægreen minesÆ. These mines are viewed as good examples of sustainable mining development in China.CITATION:Liu, Y, Hu, K, Li, X, Liu, Y, Liu, D and Wang, J, 2012. The green mine campaign and sustainable mining in China, in Proceedings Life-of-Mine 2012, pp 339-342 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 10, 2012

By M Jones, G Corder, A C. Keith

"Sustainable development has become an issue of ever increasing importance to the mining industry. The Ernst & Young (EY) mining industry risk radar regularly shows several sustainability elements in the top ten risks, with social license the number three risk in the 2014/15 survey. This is supported by the Fraser Institute survey results of 2013 showing that 36 per cent of responding companies indicated public opposition had affected their permitting and approvals process.Addressing these issues in a strategic way across a mining business that is then translatable to actions at operational level has remained an elusive goal in the industry. In addition the environment and community issues are commonly viewed as somewhat separate from financial and production issues and as a compliance cost rather than a value add. In their Harvard Business Review paper of 2011, ‘Creating Shared Value’, Porter and Kramer outline changes in thinking required for companies to improve their business sustainably through considering the societal issues impacted by their operations and products. Along the lines of ‘doing more with less’ companies’ value chains can be redefined to reduce energy, transport, water or other resource usage leaving additional resource for societal usage and/or reducing environmental impacts. This paper explores the linking of the holistic Five Capitals-based approach with the creating shared value (CSV) concept to help businesses unleash the benefits of innovation. Previous papers have demonstrated the potential for Five Capitals approach to create strategic value through sustainable development. Building on previous work, this paper provides an overview of the current status of holistic approaches to mine management and presents the application of the CSV concept on an African mine currently undertaking capitals-based strategic planning. The paper also demonstrates the value that has been created through utilising this approach and proposes improvements for changing the way the industry tackles and delivers benefits related to sustainability issues.CITATION:Keith, A C, Corder, G and Jones, M, 2016. Strategic sustainable development – creating shared value in the mining industry, in Proceedings International Mine Management Conference, pp 249-264 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By J Hartog, V Beehan, D Beeson

Treating an ore blend from five different deposits at Newgold’s Peak Gold Mine (PGM) has always been a challenge due to the inherent variability between each of the orebodies.Operating the processing plant at PGM with a ‘normal’ level of process control and a good operations and metallurgical team has allowed the processing plant to achieve above the name plate design at 102 t/h and recoveries in the order of 92.8 per cent for gold and 88.4 per cent for copper.With a company value and culture of striving for continuous improvement, PGM implemented the Manta Cube® system, an advanced process control system, for the semi-autogenous grinding (SAG) mill, gold leach circuit and tailings thickener over a 12-month period throughout 2012 and 2013.The overall benefits of implementing the Manta Cube® system has led to an increase in mill throughput of at least two per cent, improved SAG mill liner life, a ten per cent decrease in cyanide consumption and a reduction in flocculant of at least 30 per cent with no detriment to the gold and copper recoveries.The entire project had a payback period of less than two months, and the combined benefits resulted in an overall increase in revenue of at least $5 million per annum. This is quite significant for a processing plant the size of PGM.This paper describes the methodology, overall results and economic benefit of applying the Manta Cube® system on-site at Newgold’s PGM.CITATION:Hartog, J, Beehan, V, Karageorgos, J and Beeson, D, 2014. Optimisation of the Peak Gold Mine’s processing plant through advanced process control, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 335–344 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By I Ritchie, G Lane, C Morley, D Yataco

Marcobre SAC (Marcobre) is developing the Mina Justa project in Peru. The project has a lower grade oxide orebody overlaying the higher grade sulfide orebody. The oxide ore is treated by acid leaching; consumption of acid is high and is managed by vat leaching rather than the more conventional heap leaching process.The leaching process uses ore crushed to 100% passing 8 mm to optimise copper recovery. Acid consumption generally increases with a higher proportion of fines. Marcobre is investigating a three-stage crushing circuit with high pressure grinding rolls (HPGR) in the third stage, instead of the more conventional four-stage cone crushing circuit. The use of HPGR can result in higher fines production due to the higher compression forces in the crushing zone. This paper reports on the outcomes of the test work completed by Marcobre in 2016 and 2017 to manage fines production and compare the use of HPGR with conventional crushing on a high acid consuming ore.At moderate pressing forces, a HPGR crushing circuit appeared to produce similar size distributions to cone crushing. On average, both the copper recovery and the acid consumption in subsequent vat leaching were higher with HPGR crushing than with cone crushing.CITATION:Lane, G, Morley, C, Yataco, D and Ritchie, I, 2017. Are there differences in size distribution when comparing conventional crushing and HPGR?, in Proceedings MetPlant 2017, pp 60–72 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By S Liu, N M. Rana, A Take, N Ghahramani, D Clohan, S McDougall, S G. Evans, H J. Chen

Tailings dam breaches have caused significant life loss, social, economic and environmental damage in recent years. The term "tailings-flow" refers to various forms of tailings outflow movement resulting from the breach of a tailings dam. These flows, comprising a mixture of tailings, water and dam materials, can take different forms, ranging from a debris flood to a flowslide, and can travel long distances and impact large areas. The inundation extents depend on the failure mechanism, tailings dam height, total released volume, sediment concentration (associated with the rheological behaviour of the flow) and downstream conditions (including topography, land cover and presence of a water body). Numerical runout modelling of tailings dam breaches is important for predicting the dynamics and extent of tailings-flows, which are crucial steps in tailings dam consequence analysis and risk management. This paper presents a comparison of numerical simulations of the 1994 Merriespruit tailings dam breach using three numerical models: DAN3D, FLO-2D and MADflow3D. Using compiled site condition information and data from the literature and public domain, model performance was evaluated primarily based on comparisons between the observed and simulated inundation extents. The main purpose of this preliminary model benchmarking exercise was to help us evaluate the capabilities and limitations of each model, and to identify opportunities for future model improvements as part of a broader research initiative known as CanBreach. This exercise also highlights the inherent complexity of tailings-flows and the importance of using judgement to interpret model input and results.

Jul 1, 2021

By D Corley, J Moore, M Grant, A, W R

Resource estimates are the corner stone of technical and investment decision-making. Prior to mining, resource estimation uncertainty has the greatest potential to lead to poor investment decisions, despite a significant component of resource estimation uncertainty being unknowable at this critical stage in the mining cycle. This presents a conundrum to the resource geologist in terms of risk evaluation and resource classification. Ahead of mining, there is normally considerable focus on drill hole spacing analysis to determine the ‘optimal’ drill hole spacing, taking grade and geological continuity into account; cost-benefit analyses balance improved resource definition against cost; the law of diminishing returns and the exponential cost increases acting together as spacing is reduced. Typically, a lower limit to the drill hole spacing is identified. After completing the resource drilling to an agreed spacing, resource estimation is then undertaken. At this point it is common to attempt to bracket the resource estimation uncertainty. In many cases conditional simulation is used, based on a modelled, but largely assumed, variogram model. It is also assumed that the histogram of the available drill hole sample data is representative of the in-ground mineralisation. The purpose of this paper is not to diminish the importance of drill hole spacing and simulation studies, but rather to illuminate an important aspect of estimation uncertainty that, although previously recognised, is typically overlooked – the question of how representative the available data set is in characterising the true (but unknown) distribution of mineralisation. To do this, we lift the lid on one of OceanaGold’s former operations, the mined-out Globe Progress Mine, by resurrecting a high quality, close-spaced, reverse circulation (RC) grade control data set. The Globe Progress Mine is within the West Coast Region of New Zealand, it was closed and transitioned to rehabilitation in 2016 and is now known as the Reefton Restoration Project. The exhaustive Globe Progress grade control data was used to repeatedly ‘redrill’ the deposit by extracting 35 m × 35 m spaced subsets from the original 5 m × 5 m spaced grade control data. Utilising closely spaced grade control data removed the need for assumptions regarding short range continuity, which are necessary with forward-looking analyses that are based upon broader spaced resource drilling. The extraction process used a nearest neighbourhood algorithm, repeatedly moving the origin in 5 mE, or 5 mN increments. Individual resource estimates were then completed for each of the extracted drill hole data sets (49 in total) as well as a grade control estimate based upon the exhaustive data set. Whilst the data unpinning each of the 49 estimates changed, the geological assumptions, variography, and modelling parameters remained constant. This approach was taken to isolate the impact of changing the input data. The 49 estimates were then compared against each other and the grade control estimate. The mean of all 49 sensitivity estimates was close to that of the grade control estimate in terms of contained gold, tonnes and grade. Whilst it is acknowledged that the grade control estimate itself is subject to some degree of estimation uncertainty, the close match between the average of the 49 estimates and the grade control estimate suggests that the resource estimation methodology is reasonable and appropriate. Whilst this comparison is important, the focus of this study is on the component of estimation uncertainty related to the underlying data, and this is reflected in the spread across the estimates. The spread across the 49 global estimates (highest to lowest) for this particular Mineral Resource Estimation Conference 2023 | Perth, Australia | 24–25 May 2023 142 case study was found to be significant (approximately 20 per cent in grade and metal) and that is attributable solely to the underlying data. This exercise quantifies a component of the estimation uncertainty that is inherent to all drill hole data and is distinct from the uncertainties associated with modelling methodology choices, sample and subsample quality and drill hole spacing-related interpolation uncertainty. Importantly, this uncertainty is unknowable prior to mining; we can only directly compare the resource drill hole data against grade control data after mining has taken place. For the case study, approximately 65 per cent of the estimates fell within 5 per cent of the grade control estimate for contained-gold, suggesting that for many projects the histogram of drill hole data is unlikely to differ noticeably from that of the in-ground resource. However, about 15 per cent of the estimates in this study differed by more than 7.5 per cent, suggesting that a not-insignificant proportion of estimates will be materially compromised. Whether or not the available drill hole data is representative comes down to the ‘luck of the draw’ and cannot be known at the time of resource estimation. Given the challenge of attempting to evaluate forward-looking estimation uncertainty, a component of which that can only be quantified retrospectively, what should we do as resource geologists? What are the implications for risk evaluation, resource classification and reconciliation? Furthermore, without rigorous post-mining data checks, resource geologists may conflate suboptimal modelling with the shortcomings of the underlying data. An example of this problem is discussed in the following section.

May 24, 2023

By J Player, R de Vries, J F. Carswell, R Hassell

"The feasibility of Dugald River mine was highly sensitive to mining and geotechnical design assumptions, particularly stope dilution and strike length. Following the start of initial mine development in 2012 the project was suspended in 2013 due to concerns over the complex ground conditions and resulting dilution, stope sizes and general mineability. A technical risk mitigation program was undertaken with a key aim to increase the level of confidence in predicting stope dilution.A stope sizing and dilution model was developed that provided a range of stope sizes based on geotechnical conditions and acceptable dilution. The original feasibility used a standard stope size of 25 m height by 25 m span. The new model was used as the foundation for the subsequent updated development plan for Dugald River that reduced much of the previous technical risk through greater confidence in the geotechnical and mining parameters.Several methods to predict stope hanging wall dilution and appropriate stope size have been used at Dugald River that relied on the modified stability graph method. Improvements to the method were identified as more rock mass and mining data became available through the completion of a trial stoping program, increased underground development and a large geotechnical core logging campaign. These improvements not only focused on the technical aspects of the model, but also on creating an easy to use and sustainable process that could be used at multiple stages of mine planning from life-of-mine (LOM) through to final stope design.Several of the main improvements are: understanding stope failure mechanisms and collecting only geological information that is most relevant detailed modelling restricted to the rock mass that could be expected to influence stope behaviour accounting for different stope failure mechanisms with the stability chart method assigning a geotechnical confidence factor to the data making it useful as a mine planning tool with integration into the mine planning process using performance of completed stopes to update and calibrate the model.The model provides recommended hydraulic radius and associated dilution estimates across the ore body. Providing the hydraulic radius allows planning engineers the option to consider single, double and triple lift stoping options suitable to mine scheduling. While the model has been calibrated for conditions at Dugald River the process used to create the model is not site specific and is applicable to other steeply dipping tabular orebodies.CITATION:Hassell, R, de Vries, R, Player, J and Carswell, J F, 2017. Improving the prediction of stope hanging wall dilution – a critical factor to the success of Dugald River, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 71–78 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 16, 2017

By P Craig, I Canbulat, J Naylor, J Emery, A Sykes

Longwall mining is by far the most common method of underground coal extraction in Australia. Industry trends and expectations are placing increasing emphasis on the reliability and productivity of these operations. Longwalls are becoming wider and longer while retreat rates are continuously increasing due to significant improvements achieved in longwall equipment reliability and automation. This increased longwall productivity is placing significant emphasis on the reliability of longwall panel development.Although there have been significant improvements in the reliability of continuous miners and hydraulic drill rigs, the traditional resin-encapsulated bolt installation is still the principal method used in all major coal producing countries around the world. Anglo American realised that an opportunity existed to introduce an alternative roof bolt installation technique called ‘spin-to-stall’ (STS) into Australia. STS was first introduced by Anglo American Coal in South Africa, where it has been successfully used for over a decade, though implementation of South African STS resin in Australia has proven to be near impossible. Therefore, a new STS development project was initiated between Anglo American Coal and Jennmar Australia. This paper summarises the journey of this project, the results achieved and the successful implementation of STS at Grasstree mine.CITATION:Emery, J, Canbulat, I, Craig, P, Naylor, J and Sykes, A, 2014. Development and implementation of spin-to-stall resin at Anglo American’s Australian Underground Coal Operations, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 287–294 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By S A. Ravishankar

In heavy minerals separation, the titanium and iron oxide phases are separated from silicates in the coarser particle size range (80 - 150 mm) using magnetic and electrostatic separators. With the ongoing challenge of heavy mineral ore deposits getting increasingly finer in particle size, conventional separation equipment suffers from the ability to process this material at the same throughput rate as coarser particles. A variety of magnetic separation technologies were developed to perform at a much finer particle size range, down to 2 mm in the clay industries mainly to remove titaniferrous oxide particles. Complementing the developments made on the physical aspects of magnetic separation, Cytec Industries has recently developed a ‘bolt-on’ chemical enhancement technology for magnetic separation (CEMS). This is to enable separation of finer particles, and weakly paramagnetic titanium phases from diamagnetic silicates that are not amenable to magnetic separation. This paper will provide an outline of the technology, illustrate its ability to process a wide variety of ores, and also discuss plant limitations. The major advantages of chemical enhancement technology to magnetic separation includes: simple dosing equipment extension to existing magnetic separation technology; ability to produce product of comparable quality with improved cost effectiveness, when compared to incumbent flotation; removal of impurity minerals over wider size range; enhanced removal of non-magnetic impurities; and improving the process robustness. Furthermore, chemical enhancement technology for magnetic separation has also emerged as a platform for removing impurities at lower levels in other mineral systems as well.

Oct 5, 2011

By P M. Hetherington, F A. Pym, M P. Murphy, K E. Crook

Consultants in the mining industry have the opportunity to visit interesting deposits all over the world. Each deposit has its own set of challenges to face when it comes to defining and understanding the deposit geology and the economics to make it viable for extraction. Some of the challenges can include appropriate data capture, sampling techniques, structural characteristics, geochemistry, geophysics, lithology definition, and economic boundaries. It is essential that the practices used at each deposit (eg drilling, sampling, geological modelling, resource estimation etc) are documented and the results obtained are robust and defensible. The Competent Person is not always aware of instances where their resource estimation practices have not been substantiated. ‘You don’t know what you don’t know’ is a phrase frequently used during a mineral resource audit. Technical work to substantiate drilling, sampling, density, assaying, geological modelling and estimation processes is not always completed. Audited Competent Persons often comment: • ‘I was unaware that this was required.’ • ‘I have not had training in this area and do not know how to complete the checks required.’ • ‘This is how we’ve always done it.’ Examples of audits where it was found that geological practices were not substantiated are examined here. A discussion is included on why substantiation of these practices is important, and potential reasons as to why there are instances of unsubstantiated processes and practices are discussed.

Mar 22, 2022

By M Field

Kimberlite pipes, as opposed to dykes, sill and secondary deposits, are the primary target for diamond exploration companies because they have simple geometries and can contain large volumes of potentially diamond-bearing ore. Once discovered, important decisions have to be made regarding the sampling of these geological entities to establish the total volume of ore present, and to define the internal geology, which can be complex in nature and controls the distribution of diamond grade. It is essential that as part of this process the uncertainty in constructed geological models are assessed. In this paper the Orapa AK1 kimberlite pipe in Botswana is used as a case study to explore a potential methodology for defining this uncertainty. The uncertainty of the rock volumes of different types can be characterised by a geostatistical approach. Geostatistical simulations, based upon a plausible representation of the geological bodies, provide different possible images of the orebody that can be considered as different realities. By testing different borehole layouts and drilling the orebody virtually on the computer, many different, but equi-probable realisations of the pipes can be produced. It is then possible to estimate the rocksÆ volumes and compare them with the actual ones. A statistical analysis of the relationship between estimation error and the number of boreholes can then be used to optimise the next sampling campaign. The rock volumes are obtained from a two-step simulation process. Firstly, the pipe geometry is simulated by means of introducing variations around the geological block model, by an original method called centre point simulation (CPS), which has been developed for this purpose. Secondly, the internal geology is then simulated within the pipe. The methodology for simulating the internal geological zones has to be adapted to the level of information and to the geological structure itself. The upper portion at Orapa AK1 is filled with sedimentary crater facies. Here plurigaussian simulation techniques can be applied that are adapted to the simulation of sedimentary facies. The central zones of the pipe are typically subvertically-oriented massive volcaniclastic deposits and breccias and the lower regions comprise a complex root zone. CPS is appropriate for these zones.

Jan 1, 2006

By D Hope, D K. Mukhopadhyay, J D. Harvey

South32 (S32), a globally diversified mining and metals company, is listed on securities exchanges around the world (ASX, JSE, LSE), with its primary listing being on the Australian Securities Exchange (ASX). Chapter 5 of the ASX Listing Rules (Australian Securities Exchange (ASX), 2019b) requires a mining entity to provide a summary of governance arrangements and internal controls with respect to its estimation processes, estimates and reporting of Mineral Resources and Ore Reserves annually. As a global company, it is also important to design and implement all governance processes and internal controls which can be used consistently across the organisation. The three lines model (previously known as the ‘three lines of defense’ model) is employed across South32 to manage risk where the first line (Practitioners) designs, implements and executes processes and controls to manage risk; the second line (Stewardship) identifies material gaps and improvement opportunities in the first line by monitoring conformance with the group requirements, legislative and regulatory obligations. Second line also assists with the development and improvement of core fundamentals based on industry good practise. The third line (Group Assurance) provides independent and objective assurance over the Group’s system of risk management and control. The estimation of resources and reserves for most of the operations within South32 is managed by the Planning function. The estimation process is part of the annual Life of Operation Plan (LoOP). The LoOP identifies and assesses the strategic alternatives for the development of an operation and recommends the preferred pathway based on value and risk. The LoOP starts with opportunity framing and the updated resources as an input and ends with the short-term plan and annual budget (the outputs). Ore Reserves estimates are one of the outputs from the LoOP. All the inputs and outputs follow internal standards and procedures which includes peer review and performance reconciliation. Stewardship (Second line) which is a centralised function has standards in place to ensure compliance to internal controls and external regulatory requirements. This includes assessment of the competence of Competent Persons, technical reviews, independent audits and training in the relevant chapters of the ASX Listing Rules, Guidance Notes and Appendices. Group Assurance (Third line) which reports to the Risk and Audit Committee of the Board of Directors ensures the design and operating effectiveness of the processes, standards and procedures associated with the estimation and reporting of resources and reserves. While the level of scrutiny has a different intent for each line in the three lines model, the overall purpose is to achieve a consistent outcome across the organisation

May 24, 2023

By K Sanematsu

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Ore deposits of rare earth elements (REE) in South-East Asia are classified into four types: carbonatite, allanite, ion-adsorption and placer. Occurrences of the carbonatite deposits are confined almost exclusively to the Red River Fault Zone of northern Vietnam. Since the carbonatites contain dominantly REE fluorocarbonates (eg bastnasite) and lesser amounts of monazite, they are rich in light REE but poor in heavy REE. The ion-adsorption type deposits and prospects were found in Myanmar, Vietnam and Thailand. The ion-adsorption ores generally show lower REE grades than those of the carbonatite type and placer deposits; however, they could be enriched in HREE, which are more precious and scarce commodities than LREE. The ores consist of weathered granites with a significant amount of ion-exchangeable REE, which are extracted by using a dilute electrolyte solution. The ion-exchangeable REE are likely to be sourced from REE fluorocarbonates, allanite and titanite because these minerals are relatively susceptible to weathering and release REE3+ ions into soil water. In contrast, monazite and xenotime are resistant to chemical weathering and could form placer ores. Placer monazite and xenotime have been processed as by-products of placer Sn, Zr or Ti in Malaysia, Thailand and Indonesia, although the current production is small.CITATION:Sanematsu, K, 2015. Rare earth element deposits and prospective areas in South-East Asia, in Proceedings PACRIM 2015 Congress, pp 671–678 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By P Christen, D R. Ashley, G R. Power

The Ernest Henry Mine is currently a copper-gold open pit operation situated in north-west Queensland, Australia. It is owned and operated by Xstrata Copper with a current throughput of 11 million tonnes per annum; however, open pit operations are scheduled to cease in late 2011. The deposit dips at approximately 45¦ and extends for at least another 400 vertical metres below the final 530 m deep pit design. Resource drilling from 2002 until mid 2008 has enabled an Indicated Mineral Resource to be established to 1000 m below surface. Scoping and prefeasibility studies (PFS) have been completed toward determining if this resource is suitable for underground mining and a feasibility study is currently progressing with a sublevel caving (SLC) concept. This paper briefly describes the process by which the SLC method was selected, conclusions regarding the non-selected methods, and then discusses the optimisation process used to derive the mining plan. The key optimisation parameters include the production drive spacing, level spacing, draw strategy, cut-off grade and production rate. Key risks will then be assessed and economic sensitivities studied. Final sensitivities will use Monte Carlo simulations to improve the transparency of the projectÆs risk profile. The feasibility study (FS) began in March 2008 and this paper describes the main optimisation steps at the time of writing and outlines the plan for study completion through to March 2009.

Jan 1, 2009

By A Keogh, P Allen, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Private equity (PE) firms are comparatively free of mandatory requirements for the level and scope of due diligence applied prior to making investment decisions in minerals projects when compared to listed entities, sovereign funds or financial institutions adopting the Equator Principles (Equator Principles Association, 2013). While this freedom allows for flexibility, agility and innovation in making investment decisions, it can also expose PE firms to material risks that may impact their ability to successfully list the projects or attract later financing.Financial institutions and investors with mandatory due diligence and disclosure standards may refrain from investment in or acquisition of a project if it fails to meet various performance requirements. There are many high-profile projects that have suffered significant write-downs on book value after acquisition because specific non-mining issues were not adequately assessed. Thus, a PE firm may be left with an asset that is difficult to divest and incapable of securing development finance.PE firms can manage this risk by being aware of the growth trend in the adoption of ‘international standards’ in addition to host nation standards and legislative requirements. This paper outlines key issues for PE firms to address to maximise the chances of obtaining funding or successfully taking an exploration or mining project through to listing or divestment. Two steps are required: identification of gaps in performance and priority matters of interest to financial institutions and development of action plans to ensure that the priority requirements are met or capable of being met.A PE firm can set its project for success by understanding the social and environmental performance requirements of international standard financiers and by setting the project on the right path to meeting these requirements, and thus making it an attractive investment.CITATION:Allen, P, Stoker, P and Keogh, A, 2015. Setting for success – private equity exploration and mining project buy-in to listing and divestment , in Proceedings PACRIM 2015 Congress, pp 93–100 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By G Lane

This paper discusses the factors that contribute to the cost effective design of a concentrator. Concentrator design and layout outcomes are functions of the team (engineer’s and owner’s) participating in each particular project. The benchmark for relatively modest projects was set in the 1980s and 1990s during the ‘gold boom’ when numerous cost effective plants were designed and constructed on a lump sum basis in a very competitive market. A number of factors contribute to lack of transference of the lessons learnt in gold plant design to concentrator design including established paradigms in the design and layout of concentrators, lack of experience in cost effective design, operator’s preferences for flowsheet and layout and simple lack of appreciation of the impact of plant footprint on materials quantities and resultant capital costs.Experiences with recent copper concentrator projects (both small and large) are used as case studies.

Aug 8, 2011

By M Allen

Energetics has been in the business of climate change for more than twenty years. This experience has only served to cement the understanding that decisions taken during design define the environmental and economic performance of any project. The 80-20 rule definitely applies, with 80% of a project’s performance being set through the first 20% of design decisions. This in depth knowledge is used for determining energy price forecasts, future carbon markets and carbon costs, current and future energy technologies, as well as giving a thorough understanding of the processes and technologies in place in the mining industry to work out what the most carbon and energy sensitive decisions during design are. Project selection and design is a gated process where decisions are taken in line with the information available at that point in the evolution of the project. Design decisions are, by their nature, dominated by uncertainty. In order to ensure that robust decisions are taken, it is necessary to ensure that the correct information is brought to bear at the correct decision point. This then defines and supplies the necessary carbon and energy information for design decisions to be correctly made. One of the most significant risks facing design engineers and decision makers in the mining industry is the future cost of energy. Part of this risk is associated with a future cost of carbon, however, a significant part of this risk is the cost, and variability in this cost, of the energy itself. This paper investigates the information required to support good decision taking during the design process.Project Managers and MetPlant Operators accept poor quality evaluations because they are generally unaware of what they should expect.The 2010 draft AusIMM ‘Guidelines for Techno-Economic Evaluations’ were collated by a subcommittee of practitioners and are regarded as best practice.They apply directly to projects and metallurgical plant evaluations, including those with a heavy technical basis. They can be applied to technical problem solving where there are no monetary computations.Project Managers and MetPlant Operators should demand that economic models and evaluations follow the six principles. They should become working tools which are easy to understand, fit for purpose, consistent, rigorous, record sources of input data, have key graphs and are rapid to audit.

Aug 8, 2011