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By D Hume

During 2001 the Ridgeway Gold Mine, driven by company initiatives and recent NSW legislation (General Rule 2000), developed and implemented Major Hazard Management Plans to control significant hazards identified at the underground mine. The paper presents the objectives, issues, outcomes and process involved in the development and implementation of the plans at Ridgeway. The sharing of the experience gained and an overview of the intended way forward will offer a valuable insight for other mines considering embarking on a similar journey.

Jan 1, 2002

By H Jones

The paper outlines the adoption and evolution of ‘sustainable development’ as a concept in tailings management practices in the mining industry over the last 30 years. Over 500 lives have been lost in tailings facility accidents since World War 2. The paper outlines commonalities in many of these accidents, particularly the role of excess water. It considers the role effective tailings management can play in enhancing the social acceptability of mining in the future.Tailings management is a major operating cost at many mines while the cost of successfully closing tailings facilities is also very high. Current tailings management practices in the industry are outlined. The technical and engineering challenges of reducing potential risks associated with tailings by reducing water entrainment are described. The successful development of practical techniques to better manage tailings and reduce water consumption and wastage are described. For example, water removal in the alumina industry to produce a paste for dry stacking is now a reality.The future adoption of these new risk reducing techniques by the industry is discussed and the implications of the adoption or non-adoption of these techniques on the industry’s future ‘social licence’ is considered.

Nov 22, 2011

By G Harbort, V Lawson

Mount Isa Mines Limited operates one of the worldÆs largest underground mines in North West Queensland. ItÆs mining and smelting complex produces copper anode, crude lead bullion (containing silver), and zinc concentrate. Copper is recovered in the Copper Concentrator from chalcopyrite ore, converter smelter slag and rotary holding furnace (RHF) slag via grinding and flotation operations. During 2002 a project to optimise cleaner circuit capacity was commenced. Its aims were to minimise copper losses and minimise slag/chalcopyrite cross contamination by reconfiguring existing flotation equipment and the addition of new flotation capacity. To minimise cross contamination a Jameson Cell was installed and dedicated to cleaning of slag concentrates, which had formerly been conducted by three flotation columns operating in series. The flotation columns were re-configured to operate in parallel and dedicated to upgrading chalcopyrite concentrate. In addition a Jameson Cell was installed to reject entrained copper from a prefloat concentrate consisting of talc and carbonaceous pyrite. This paper discusses the logic behind the cleaner circuit expansion, recent test work relating to the Jameson Cell and the installation and commissioning phases. Difficulties relating to the commissioning are reviewed and the solutions to problems are highlighted. The benefits the reconfigured circuit has provided to Mount Isa Mines are also discussed.

Jan 1, 2003

By R Steven

"Surveying, and as a result, surveyors, have been around since the start of time, and it has been said that so has their methodology!The theodolite and tape have been the backbone of a time-tested practice that has led to ground breaking advancements such as electronic distance measurement (EDM), global positioning system (GPS) and positional laser scanning. However, it was the introduction of the unmanned aerial system (UAS) that has allowed mine sites such as St Ives to take the next step towards truly turning survey data into metadata.This paper will explain how the unmanned aerial vehicle (UAV) was adapted to meet the requirements of a mine site supporting a major open pit operation, and how the open pit mining team adjusted their planning and production processes to maximise use of the extra data and information available to them.The advantages of the system include point cloud surveys with corresponding large-scale up-to-date photography and computer generated high detail contouring of mined areas that are then incorporated into the mine plan. All the while, the use of the UAV must be tailored to each specific problem encountered and a solution then matched.Citation:Steven, R, 2016. Trials, Tribulations and Triumphs of Unmanned Aerial Vehicle Surveying at St Ives Gold Mine, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 170–184 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

Last September, when I was asked to prepare this paper, I was told the subject was "mining," a broad subject indeed! Rather than choose one of the many important technical and economic details which characterize mining today, I turned to a subject which fas- cinates me: mining's image. If we are to survive and prosper into the twenty-first century, and if industry and society are to continue enjoying the material benefits which flow from mining, we must address the melancholy fact that the general public at best does not understand mining, and at worst does not believe it is needed or deserves to continue. While my point of view is largely that of an American mining executive, I would hasten to point out that Homestake has participated in Australian mining for over three decades, and our subsidiary, Homestake Gold of Australia Limited, is now a major producer in this "lucky country." Does society need a viable minerals and metals industry? The answer is obviously "yes," so the challenge is to change some minds: not just those of the amorphous "public," but on a focussed basis targeting journalists, educators, TV commentators, politicians and opinion makers of all stripes (I thought of using "rifle shot" instead of focussed but thought that might be misconstrued). Along the way we miners must also look deeply into ourselves, our attitudes towards the society in which we function, and our willing- ness to change as well as to seek change in others. How did we become such bad guys? More than a century ago mining was not just accepted, it was even romanticised. In America, we had altered the time-honored concept of "Crown" lands into public lands made easily available to settlers pushing back the frontier. Miners even preceded the farmers and stockmen in what was perceived as nation-building, although by the 1890s there was a growing interest in conservation, especially the protection and management of forests and national parks. Even though emphasis was shifting toward government stewardship and away from trans- fer of public lands to private ownership, homesteading and mining were clearly recognised as valid uses requiring not just access, but security of tenure. Indeed, conservation as it was then understood implied management of the public domain as well as its protection. Initially this was no great problem to the U.S. mining industry, but as the nation grew and competing land uses became more important, conflicts began to appear, first over water rights and later over air quality and destructive mining practices. But these were local disputes rather than national issues, and two World Wars, the Great Depression and post-war reconstruction lulled our industry into thinking that nothing had really changed. After the storm began to break in the 1960s, the mining industry found itself confronted by a growing maze of complex and costly laws and regulations. It took us longer than it should have to realise that, in facing this challenge, we seemed to have lost the understanding and support of many of our legislators and a majority of the general public. For over 20 years now, since the first Earth Day in 1970, the U.S. Mining

Jan 1, 1991

By I Brandes de Roos

Water has played a key role in the Pilbara’s 60-year history of iron ore operations. In contrast to many of the current-day mining environments, iron ore mining was initially hosted by geological formations that were typically above the water table. Such mining operations required no dewatering or dewatering at rates that were less than mine and mining township requirements. The challenge for these operations was not pit dewatering but water supply for mining operations and municipal supply for nascent mining towns.The current industry sees new deposit styles being increasingly targeted, including channel iron and Marra Mamba Formation deposits. These deposits are often lower in the landscape and can require extensive dewatering. Furthermore, increased water demand for ore beneficiation has resulted in major programs of water-supply borefield development. Added to this is the emergence of magnetite projects and their significant levels of water use in ore beneficiation.The large volumes of water that are being extracted to support Pilbara iron ore mining is attracting attention. The Western Australian Department of Water has recently commissioned a study to assess the potential use of surplus mine water as a medium- to long-term supply for irrigated agriculture.This paper outlines the changing landscape of water management in Pilbara iron ore operations and explores strategies for maximising mining productivity. Water management is presented as an enabler for productivity improvements that can potentially provide long-lasting benefits post-closure.CITATION:Brandes de Roos, I, 2015. Shifting waters in the Pilbara’s iron ore industry, in Proceedings Iron Ore 2015, pp 507–510 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By M Jahani, M Taji

For suitable production planning in an open pit mine, and also to carry out the optimisation process during the mining production cycle, prediction of fragment size distribution is required prior to carrying out the blasting operation. For this purpose, many prediction models, such as empirical models, were presented. The proficiency of these models differs in various conditions and mines. Therefore, in this paper the most important models, including SveDeFo, Kuz-Ram, CZM, Modified Kuz-Ram in 2005, Kuznestsov-Cunningham-Ouchterlony (KCO) and also Gheibie et al, were examined by the information of 20 blasts in Gol-Gohar iron ore mine. Fourteen images were taken on average for each blast. For image processing analysis Split-Desktop software was used. After examination, it was understood that none of the available empirical fragmentation models had presented acceptable performance, except the Kuz-Ram model for magnetite ore, which had somewhat acceptable results. However, this model for blasting patterns in hematite presented unsuitable results. Examination and comparison of two important distribution functions, Rosin-Rammler and Swebrec, were carried out and it was observed that the performance of Swebrec for fines was far better than Rosin-Rammler. This result for the upper part of fragment size distribution curve, coarse, is the reverse.CITATION:Jahani, M and Taji, M, 2015. Comparison of empirical fragmentation models at the Gol-Gohar iron ore mine, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 707–714 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Morgan

Regular monitoring of surface deformation over mine sites is important for providing updated information to managers regarding geotechnical risks related to ground instabilities. This is particularly true in cases where unexpected or accelerating movement patterns are observed, as these trends may have implications related to worker safety within active mining environments, as well as continuity of ongoing operations. InSAR is an active remote sensing technique that uses radar satellite imagery to precisely measure ground movement. This technology has started to become a standard tool for monitoring surface stability in many different sectors, including underground and open pit/cut mining applications. In recent years the launch of satellites that collect radar imagery on a more frequent basis, coupled with advances in InSAR processing techniques, has improved both the extent to which movement patterns typical of mining operations can be characterized and the temporal scale on which results can be reported to geotechnical departments. As a result of these developments, InSAR monitoring can now better meet the operational needs of mine sites. An overview of the more recently launched satellites that have a particular relevance to the monitoring of mines is provided, along with an explanation of the InSAR tools that are the most valuable to mine managers and geotechnical engineers. First, broad differences between high resolution X-band imagery and low resolution (but freely available) Sentinel imagery are discussed. Second, the various InSAR tools and their particular applications for different types of mine sites and operations are covered, which include fast delivery deformation maps for short-term reporting, multi-interferometric algorithms for longer-term analyses and rapid movement tracking (RMT) for emergency monitoring or high-risk situations. The ability of the technology to resolve 2D and 3D movement is also touched upon. Practical examples of InSAR application over a variety of mine sites will be presented, as well as surrounding hazards including landslides, to illustrate how InSAR can help provide geotechnical engineers with a picture of surface stability over the full mine site and surrounding areas to help manage risk. CITATION:Morgan, J, 2018. Wide area mapping of ground instabilities from space: InSAR for geotechnical risk assessment and hazard monitoring, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 375–382 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By N J. Goodman

The HIsmelt technology was developed and proven in Western Australia (WA) after more than 30 years and several billion dollars of research and development. The HIsmelt technology was transferred to China and is now successfully operating at the Molong plant in Shandong Province, China using WA iron ore fines as the major feedstock. Several more plants are under construction in China, and the technology has been approved by the Chinese Government as an environmentally acceptable alternative to the blast furnace. The unique flexibility of the HIsmelt process offers multiple pathways to decarbonise the production of steel in the near future. These pathways include:  Use of sustainably grown biomass converted to Biochar to replace coal as the reductant.  Pre-reduction of iron ore fines using hydrogen or biomass to direct reduced iron (DRI) powder.  Capture of carbon dioxide from the HIsmelt off gas and geo-sequestration underground. These pathways are highly suitable for the Australian iron ore industry as they utilise:  The large areas of land and long growing season available in Australia for the production of large tonnages of sustainably grown biomass.  Coarse iron ore fines directly without the need for fine grinding and pelletising.  Existing oil, gas and other underground gas reservoirs to store carbon dioxide. The HIsmelt technology will allow Australia to transition from ‘Asia’s quarry’ to Asia’s supplier of low cost, low carbon and high quality metallics that are required to produce ‘green’ steel with net zero carbon dioxide emissions. In addition, HIsmelt pig iron can be converted locally into steel via electricarc or basic-oxygen steelmaking furnaces to supply all of Australia’s demand for green steel.

Nov 8, 2021

By D Sibthorpe

The employment of a tunnel boring machine (TBM) is the default delivery method for the realisation of traffic, utility and primary resource underground space worldwide, with hundreds of kilometres completed safely each year. This is not yet the case for the mining sector in Australia, specifically underground coal mining. The safety advantages of TBM delivery when compared to New Austrian Tunnelling Method (NATM) delivery, or that of drill and blast, remains unrealised.With coal access drifts ranging between 1000?m and 3000?m in length, the construction of these facilities using TBMs could be done in a fraction of the time when compared to current practice. TBM world records currently stand at 435?m/week or 1600?m/month for the 7.0?m to 10.0?m range. Resource owners and developers should embrace the opportunity to deliver access to their orebodies in only a few months, excluding machine assembly and disassembly time.There are challenges in utilising TBMs for construction of Coal access drifts, such as; TBMs generally being bespoke design, maximising capital efficiency for drift development, and geotechnical variances between projects. This paper explores safer and more cost-effective options. This paper also provides detail of how the configuration within a completed drift could be optimised to ensure all site specific needs are met with regard to future use of the drift. The paper also includes descriptions of the engineering solutions that are available for physical and atmospheric challenges specific to coal drift applications and how the TBM manufactures are adapting to the regulatory requirements are also covered.Due to downward pressure on high cost bases and ever increasing safety requirements the popularity of TBMs in the Australian mining sector can be expected to increase and eventually become the default delivery method for coal drift construction, building them cheaper, faster and?safer.CITATION:Sibthorpe, D, 2014. Coal drift construction by tunnel boring machine, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 671–682 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Haines P. W, Sweet I. P, Rawlings D. J, Page R. W, Plumb K. A

Current regional geoscientific studies across the McArthur Basin as part of the National Geoscience Mapping Accord by the Northern Territory Geological Survey and Australian Geological Survey Organisation have provided a significant amount of new data which has enabled revision of the stratigraphic and chronologic framework of the basin. This paper provides an overview of these results, with particular emphasis on new results from Arnhem Land.

Jan 1, 1994

By P Oikkonen

Sprayed concrete has played an integral role in underground rock support for nearly a century. However, concrete is also considered to be one of the biggest environmental problems in construction and mining, largely because of the high carbon footprint of cement and aggregates production. This is driving the industry to find ways to cut concrete usage where possible. Improving sustainability by cutting concrete material consumption also reduces application time and costs. Improving concrete properties can make it possible to design thinner linings, but as awareness of safety and longer design lifetimes are driving developments in the opposite direction, it is not realistic to see this as a major factor in cutting concrete consumption. More accessible solutions are focusing on layer thickness control and minimising rebound and wastage. Digital technology and innovation offer excellent tools for improving sustainability while optimising other aspects of the spraying process at the same time. A digital layer thickness control system gives near-real-time information to the sprayer operator with full coverage of the sprayed surface. This enables the operator to achieve consistent layer thickness on the first pass, in comparison to the traditional methods of overspraying with the aim of achieving sufficient layer thickness, probe drilling after the concrete has set, and respraying at a later stage if needed. Operator competence is the single biggest variable in a successful sprayed concrete process, affecting rebound and wastage levels. Unfortunately, the learning curve to become a master sprayer is quite steep and training on a real sprayer and real concrete requires a significant amount of time and money. Training in a virtual reality (VR) environment enables operator training to be carried out in a low-risk environment and provides a way of measuring performance and assessing and certifying the operators. After the VR training period, a novice nozzle operator has the basic understanding to start working on a real sprayer, and an experienced nozzle operator can benefit from the possibility of assessing their performance.

Mar 29, 2023

By J L. Merritt

The mining industry seeks to engage with and respond to stakeholders through open consultation processes during the various phases of a mining project (Department of Industry, Tourism and Resources, 2006). Two Australian Coal Association Research Program (ACARP) funded projects conducted in the Bowen Basin coalfields in Central Queensland investigated the use of a stakeholder panel for the evaluation of mine site rehabilitation. The panel members were drawn from the local and regional area, and represented neighbouring landholders, traditional owners, AgForce, local government, conservation groups and non-governmental organisations (NGOs) such as Greening Australia and the Fitzroy Basin Association. The approach of utilising stakeholders to establish rehabilitation criteria was proposed as an alternative to the established practice of assessing rehabilitated areas against a suite of quantitative completion criteria; eg >70 per cent vegetative ground cover or <5 t/ha/a soil loss. The basis of this approach recognises the reality that the definition of completion criteria has proved problematic over the last 40 years with no broad consensus reached on the suite, let alone the metrics; eg the exact cover level that will benchmark acceptance of the mine site rehabilitation.CITATION:Merritt, J L, 2016. Zooming out – learning to see rehabilitation through stakeholders’ eyes, in Proceedings Life-of-Mine 2016 Conference, pp 163–165 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By M Sykes

Gold was initially discovered at Ballarat in 1851. After initial alluvial mining, underground quartz mining commenced in 1853, continuing until 1918. The historic miners were considered to be capable of mining anywhere in the world after overcoming the difficult conditions within the Ballarat goldfields. Whilst mining has changed dramatically since the early 1900s the challenges with underground mining at Ballarat have not. Modern pumping systems cope with the moderate water inflows. However, modern machinery and efficient mining methods influence opening sizes and extraction techniques. In some cases modern techniques have accentuated the challenging ground conditions and complex orebodies that were faced by the historic miners. As the Ballarat East project has progressed towards production, technical challenges relating to geomechanics and mine planning are being resolved resourcefully.

Jan 1, 2008

By R C. Morris

Two major types of economic secondary iron ores occur in the banded iron formation (BIF)-rich Hamersley Province of the Pilbara, Western Australia:dominant BIF-hosted bedded iron deposits (BID)detrital ore deposits (DID sensu lato), which are mainly hosted in the three province-wide Cenozoic sequences that include coeval non-ore sediments and comprise:a. the major Miocene, fluvial channel iron deposits (CID)b. the lesser Eocene and Pliocene detrital iron deposits (DID sensu stricto).Striking differences exist between the massive CID resources and the much smaller underlying and overlying DID. CID are essentially riverine alluvial ooidal rocks with abundant small fossil wood fragments and variable iron peloids, but with only extremely rare recognisable lithic remnants. The original matrix is typically ramifying layered goethite. Eocene DID are mainly alluvial with minor pisoids, whereas Pliocene–Quaternary DID are dominantly coarse colluvial gravels, both derived from and largely retaining the original textures of BID, hard cap or variably ferruginised surface BIF. The colluvial DID matrix is typically ferroan-aluminous soil, resulting in canga where replaced by goethite, which may be dehydrated to hematite by exposure. The Cenozoic deposits occur in two dominant geomorphological environments: the southern Marra Mamba to Brockman Iron Formation strike valleys containing all three Cenozoic sequences and the much later northern Brockman Iron Formation plateau valleys that include only the Miocene and Pliocene sequences. The Cenozoic detritals formed in different climatic regimes, with an extended dry period forming a prominent province-wide dehydrated carapace on the Eocene DID. The Miocene ‘optimum’ followed with its thick scrub-covered deep regolith that produced the fossil wood-rich CID and was succeeded by the arid cool period of the Oakover limestone/calcrete. A major renewal of exposure and erosion in the Pliocene resulted in the extensive iron gravels of the Pliocene–Quaternary.CITATION:Morris, R C, 2015. The Cenozoic detrital iron deposits of the Hamersley Province of Western Australia – a tribute to Mal Kneeshaw, in Proceedings Iron Ore 2015, pp 319–326 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

The importance of the accurate determination and interpretation of the bulk density and porosity of a given iron ore deposit is very often disregarded or neglected. Large amounts of time and money are spent on delineating and testing orebodies, and yet one of the most important factors in resource evaluation is sometimes estimated or, at best, determined from existing data from similar deposits. The Thabazimbi and Sishen South iron ore deposits are two well-known economical occurrences of high-grade iron ore in South Africa. Both these deposits formed as secondary enrichment of banded iron formation lithologies. Ongoing density studies on both these deposits are underway and results thus far proved very effective and necessary. Small-scale methods are used to determine average values for different ore types on both deposits. These values are used in resource estimation and geophysical interpretation.

Jan 1, 2007

By D Carroll

Mining of the zinc, lead and silver deposit at the Broken Hill Southern Operations site has been occurring for over 100 years. As a result of this, a significant amount of high-grade ore is now taken from narrow remnant pillars left between old stopes and zones of previously mined ground. Stopes have been filled with either hydraulic fill (also known as ‘sandfill’), cemented hydraulic fill (cemented sandfill), waste rock backfill or a mixture of these fill types.In the last ten years, there has been considerable success mining through narrow pillars where sandfill is exposed in the development face and/or walls using a ‘shell’ support regime, wherein a layer of bolted mesh is sandwiched between two layers of sprayed fibrecrete (25 mm fibrecrete, then mesh and bolt, followed by a final 50 mm layer of fibrecrete). Shell support is also used in very poor, broken, relaxed ground conditions and in areas filled with cemented fill (sandfill with a minimum four per cent cement content).The next stage of innovation has been to develop a technique for mining through old stope voids filled with uncemented sandfill, known locally as ‘contours’ (old cut-and-fill working), an activity where unconsolidated sandfill can run at the face and from the backs. The challenge is to prevent exposed sandfill in the face and the backs from failing before it can be supported.To achieve this, the Southern Operations mine has implemented a technique in which 6 m long spiling bars are used to strengthen and stabilise the sandfill in front of the face. The hollow steel bars are driven in around the heading perimeter in a closely spaced pattern then pumped full of grout. The bars and the grout stabilise the sandfill in front of the face, preventing it from failing into the drive during excavation and prior to further support being installed.A final support system consisting of shotcrete, mesh, bolts and steel girders is installed as excavation progresses. Both the initial and final support systems are essentially passive support systems designed for a low-stress environment (as the stress originates mostly from the mass of unconsolidated sandfill).This process is slow and labour intensive. Fifteen separate cycles of people/machinery are needed to progress one equivalent heading cut (compared to six for a standard fibrecrete- and bolt pattern-supported rock face heading). This slow pace introduces scheduling challenges, but the process opens up parts of the orebody that were previously uneconomical to mine.CITATION:Carroll, D, 2014. Mining through sandfill using spiling bars, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 95–100 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By A S. Derrington

This paper describes a hybrid ventilation system, which uses secondary fans that also act as de-facto primary fans to extract fresh airflow from the mine intake raise system. Also discussed are the associated problems such as uncontrolled recirculation, inadequate decline airflow, fire safety issues, prolonged blast fume clearance times, high air temperatures in main access routes, neutralisation of mine air cooling by heat from secondary distribution fans, increased ventilation system complexity, reduced flexibility and high pressure differentials (which cause safety issues with personnel access and reduce secondary ventilation system performance).Practical suggestions are provided on options to avoid these problems listed.CITATION:Derrington, A S, 2013. A critique of the push-pull hybrid ventilation system, in Proceedings The Australian Mine Ventilation Conference , pp 73-78 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By W Y. Kim, Y B. Kang, Y J. Park

The phase equilibria in the Al2O3–TiOx system were investigated in wide ranges of temperature and oxygen partial pressure: 1300~1600°C and 10-16.6~10-8 atm, respectively. The equilibrium phases and their compositions were identified using X-ray diffraction (XRD) and electron probe microanalysis (EPMA), respectively. Most noticeably, a wide range of pseudobrookite solid solution was found in equilibrium with almost pure alumina. At each temperature, the cationic ratio expressed as RTi = nTi/(nAl + nTi)) of the pseudobrookite solid solution showed a noteworthy dependency on the oxygen partial pressure. This resulted in the formation of a broad range of pseudobrookite solid solutions, ranging from Al2TiO5 (RTi = 1/3) to Ti3O5 (RTi = 1.0). Complete miscibility within the pseudobrookite solid solution was observed at 1600°C, with only a minor miscibility gap becoming evident below 1500°C. Based on the results obtained in the present study, the behaviours of Al2TiO5 pseudobrookite have implications in two key domains: (1) understanding changes in the physical properties of the materials, and (2) elucidating the evolution of Al–Ti complex oxide inclusions in liquid steel which can deteriorate the steel cleanliness.

Aug 21, 2024

By D Connelly

As the resources sector becomes tougher with rising costs and cyclical metal prices, mining companies need to continue to reduce their costs and do more with less. Many new resource projects fail to come in under or on budget based on Feasibility Studies. Particularly, capital expenditure (CAPEX) proves difficult to achieve for resource projects. A number of resource projects have failed because of aggressive plant CAPEX cost cutting resulting in projects with no surge capacity and are unable to achieve design throughput. In addition, the plants are not operable because of the omissions. In recent times many businesses have also experienced the "costs" of simply implementing aggressive operating "cost cutting” measures as a strategy for solving business performance problems. This paper looks at technology driven, employment related, luxury cuts, department cuts and restructuring cuts. In the past companies used an incremental approach based on the use of past budget information as an integral part of the budget construction process going forward. The use of performance reports and Management Information Systems (MIS) is examined along with the role of continuous improvement in achieving sensible cost cutting.

Aug 8, 2011