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By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Revegetation at Perseverance Mining's Nagambie Gold Project is an excellent example of cost effective revegetation in the Central Victorian Goldfields. Work has centred on waste rock dumps, vegetative screens, amenity planting and revegetation trials on cyanide heap leach pads. A wetland is under construction and in consultation with farmers, waste heaps were planted with perennial pasture species.The area treated to date is 18 hectares comprising: 16 hectares of pasture and two hectares of trees/understory. Direct seeding and tubestock planting has cost $16,464. Cost effective revegetation demands careful planning from the EES stage onwards. The Government agreed rehabilitation plan should be comprehensive, realistic and above all flexible. This document must be kept in mind during the mining operation.

Jan 1, 1992

By C J. Greet

Oil can enter a flotation circuit from a number of sources (for example, from mining equipment, oil leaks from the grinding equipment and coatings on the grinding media, but to name a few). Folklore generally states that any oil that contaminates the ore entering the flotation circuit is considered to have a negative impact on flotation. That is, a loss in concentrate grade and recovery.This represents a dilemma for some grinding media suppliers, who use a variety of quenching medium (air, polymer, oil or water) to achieve the desired physical properties of the ball. In the case of high chrome grinding media it is necessary, in some instances, to quench in oil to give the ball the right degree of toughness, which invariably leads to these balls having a thin film of oil on their surface. Once the grinding media arrives on site and site personnel recognise that the balls are “covered” in oil, they generally insist that the oil will have a deleterious impact on flotation performance.Obviously, any supplier “worth their salt” would take remedial action at the point of manufacture to minimise this problem. However, does quenching oil actually present a significant “threat” to the flotation process? This paper provides both laboratory and plant data describing the effect quenching oil has on the flotation of copper sulphide ore, with surprising results!

Aug 8, 2011

By J M. Nel

Richards Bay Minerals (RBM) has recently undertaken an exercise to improve orebody basal definition. Older mineralisation bases (pre-2005) were highly erratic using old protocol reverse circulation (RC) (also known as Air Core) drilling and interpretation. The erratic nature of this estimation tool, resulted in impractical modelling towards the end of mineralisation (EOM), difficult mine design and unrealistic reconciliation. New protocol drilling, which includes high definition SONIC drilling data, has provided more data to be available for more accurate interpretation. Recent advances in drilling methodology has allowed for better penetration depths for SONIC drilling, which was previously restricted to approximately 80 m (pre-2005). This improved data set allows more emphasis on geological interpretation with factors such as lithology, slime content, and mineral species distribution. These factors when in unique combination enable more accurate and realistic EOM data points. These points are modelled into surfaces using conditional simulation techniques and result in a vastly smoother surface and consequently, a more representative resource.

Oct 5, 2011

MR. L. C. BALL, chief government geologist, Queensland, wrote: This paper is intended as a severely mechanical exposition of the means adopted to deal with tremendous inflows of water concurrently with development and exploitation; but incidentally it serves as a splendid exposition of close co-operation maintained between the geological and engineering branches of this large organization.I have been impressed by the completeness of the mine plans of 'Mount Isa Mines Ltd.; but only such a paper as this has brought fully to my understanding the difficulty and complexity of the solid geometry involved in the detection and plotting of the orebodies and their stratigraphic control, including faults and large-scale brecciations, and the managerial foresight that set going the initial investigations.The company's geological branch of course must be given full credit for the results attained, but it gives me pleasure that the Geological Survey of Queensland has been closely associated in much of the study.It is noted that complete drainage was affected, but it would be interesting to learn whether the brecciated zone will again become waterlogged and whether from above or from below, and whether there has been any change in the dissolved mineral content of the water as the work progressed.

Jan 1, 1939

By R Mann, R Prasad, S Vink, V Nanjappa

The level of salinity that various aquatic organisms can tolerate without incurring any adverse effects is dependent on several environmental and evolutionary factors. These factors include the relative concentrations of different types of dissolved salts in the water that makes up their habitat, the regimes to which organisms are exposed to waters of differing salinity levels (including naturally derived variations), the degree to which an organismÆs life history stages have adapted to salinity, an organismÆs ability or behaviour to avoid adverse levels of salinity and an organismÆs capacity for osmoregulation.Release of saline water into rivers of the Fitzroy catchment has created concern about the impact on aquatic organisms. Not only is salinity itself a stressor on organisms but different ionic compositions will moderate the effects. Ecotoxicology experiments were conducted using artificial saline water based on mine water chemistry using sensitive macroinvertebrates collected from the catchment, as well as a range of laboratory organisms in accordance with the ANZECC and ARMCANZ (2000) guidelines. The 95 per cent ecosystem protection value calculated from species sensitivity distribution derived from the commercial tests was estimated to be ~2.0 mS/cm. For the protection of 99 per cent of the species the salinity has to be reduced by more than 50 per cent to 0.91 mS/cm. The electrical conductivity (EC) values, derived by commercial testing and species sensitivity distribution in this study suggests that salinity contaminant trigger values previously developed using a referential approach for protection of aquatic ecosystems from saline mine water releases in the Fitzroy may be conservative.CITATION:Vink, S, Mann, R, Nanjappa, V and Prasad, R, 2013. Determining the impacts of salinity on freshwater organisms, in Proceedings Water in Mining 2013 , pp 149-154 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

A review of the most widely used global extraction sequences in sublevel is undertaken. The review includes techniques used to extract massive as well as single or multiple steeply dipping tabular orebodies. The paper also deals with thick flat lying orebodies suitable for open stoping. Techniques used to minimise the effect of stress redistributions on a global scale are discussed for all the extraction sequences analysed.

Jan 1, 2003

By L Mikhael Gurieff, D Baas

The Phu Kham Copper-Gold Operation (Phu Kham Operation) is located in the Lao People's Democratic Republic and is owned and operated by the Lao-registered company, Phu Bia Mining Limited (PBM). Australian-headquartered copper and gold producer, PanAust Limited holds a 90 per cent interest in PBM; the Government of Laos owns the remaining 10 per cent. The Phu Kham Operation was commissioned in 2008 with an initial concentrator nameplate throughput of 12 million tonnes per annum (Mt/a). Subsequent improvement projects, including the Phu Kham Upgrade Project (PKU), completed in 2012, and the Phu Kham Increased Recovery Project (IRP), completed in 2013, increased the design throughput to 18 Mt/yr. In 2016, the actual mill throughput exceeded 19 Mt/a, this throughput is budgeted to be maintained until the end of 2020.The concentrator flotation circuit upgrade, completed during the IRP, called for a non-selective bulk sulphide concentrate to be generated from the rougher circuit. This in turn caused the mechanical flotation cells in the cleaner circuit, particularly those in the second cleaner bank, to become volumetrically overload. The overload reduced the cleaner circuit performance to approximately 92 per cent copper recovery at a 23 per cent copper concentrate grade, below the expected 95 per cent recovery. This bottleneck restricted copper units entering the plant to approximately 14.5 tonnes per hour (t/h) due to uncontrolled recirculating load build-up in the mechanical cleaning circuit.Maintaining the operating methodologies would have led to a copper production shortfall beyond 2016, to address this shortfall the Phu Kham Operation looked to optimise the Jameson Cell and mechanical cleaner circuit performance. The work included fundamental application of flotation practice and modelling, mineralogical analysis, bubble size analysis, plant surveys and test work. The results were used to develop and implement an innovative automated control system strategy incorporating flotation theory and operating strategies. The automation has the ability to quickly adapt to disturbances in the circuit and maintain optimised performance with little or no intervention by flotation operators.Upon completion, cleaner recovery increased to 95 per cent at a final concentrate grade of 23 per cent copper, and copper units entering the plant increased to 17.5 t/h.CITATION:Baas, D and Mikhael Gurieff, L, 2018. Developing flotation circuit control and automation for the Phu Kham Copper-Gold Operation concentrator, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 37–58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By Royle A. G

The paper describes a geostatistical structural analysis of an 80 square mile lease of the Athabasca tar sands. Each step of the analysis is presented with the ultimate objective of condensing the principal structural characteristics of the chosen regionalised variables into the opera- tional form of the variogram model. The variogram model is then used to form kriged local and global estimates, with the corresponding estimation errors.

Jan 1, 1977

The sulphide ores of the Kalgoorlie goldfield have long been looked upon as' refractory, involving special metallurgical treatment. For many years two kinds of treatment have been practised-(l) wet treatment, including fine grinding, amalgamation or concentration of the free gold, concentration of the sulphide minerals with subsequent roasting and cyanidation, and cyanidation or bromo-cyanidation of the residue from the concentrating operation; (2) dry-crushing of the ore and roasting the whole of thecrushed ore, amalgamation of the gold in the calcine during fine grading, followed by cyanidation. The wet treatment was advanced a stage further when, in 1929, the Lake View and Star Ltd. adopted large scale flotation. As a consequence, however, further metallurgical problems were introduced. This paper covers the investigation, ,of one of the most prominent of these problems.Flotation preceded by strakes was satisfactory to a point.The flotation concentrate consisted largely of auriferous pyrite and tellurides, and the gangue minerals in the concentrate were practically barren.Several sources of loss of gold values were, however, found to be associated with this circuit, viz.-(a) There was the loss of gold in the flotation tailing.(b) Loss by dusting during roasting of the flotation concentrate.(c) Loss of gold in the cyanided residue.

Jan 1, 1937

Valuers will often intuitively express the probability that property value will exceed a certain amount . . . 'I think the chances that the value will exceed $50 million are excellent. The chances that they will exceed $80 million are poor'. This paper shows how it is possible to combine the uncertainties of the value of several key items to provide an estimate of the probability of a certain overall value being achieved. The valuation of a large copper/gold deposit was naturally influenced by uncertainties in the base assumptions of costs and metal prices. Potential acquisition of the property through share purchase raised the issue of what was a reasonable intrinsic value for the shares. Market considerations could be used to appropriately adjust the intrinsic value. After a range of possible metal prices and operating costs were determined, estimates were made of their probable distributions. By combining these probabilities in a random selection, a range of property values was calculated. Each value had its respective probability of occurrence. This allowed a most likely value of shares to be calculated. This paper demonstrates how the valuer's intuition is complemented by numerical analysis.

Jan 1, 1994

By Kobe HW, Balance PF, Black PM, Sporli KB, Smith IEM, Locke CA

The Hauraki Goldfield consists of a large number of volcanic-associated epithermal gold deposits within the Coromandel Volcanic Zone (CVZ), North Island , New Zealand; it is the most accessible and most studied of the Southwest Pacific gold regions. The deposits occur generally as steeply dipping quartz veins and breccia sheets in faults and fractures.From a tectonic perspective, the CVZ is generally considered a Neogene convergent volcanic arc constructed under an extensional tectonic regime; the common tectonic setting for epithermal mineralisation. The gold deposits are mostly hosted in subaerial andesitic arc-type volcanic rocks. Temporally, however, mineralisation is associated with rhyolitic rocks of a bimodal volcanic suite that may represent a back-arc environment. Rifting and calderas may be important components of the latter regime, but this is not yet clear; the general structural framework controlling the location of CVZ gold deposits remains poorly understood. Geophysics, particularly aeromagnetics, has a role in mapping regional fault patterns in the CVZ

Jan 1, 1990

By Y Peng, B Guo

In gold processing plants, the water from the cyanidation stages is treated to detoxify cyanide species and this recycle water becomes the main part of the process water. Despite the low concentration of free and weak acid dissociable (WAD) cyanides in process water, the recoveries of gold and silver is still affected during flotation, especially when gold and silver are associated with iron sulfide minerals. This is a case at the Hidden Valley (HV) Mine. In this study, the effect of free and WAD cyanides on gold and silver recoveries by flotation from the HV Mine was considered.WAD cyanide (WAD CN) was prepared by mixing sodium cyanide and copper sulfate at a cyanide to copper ratio of 3:1 dosed at different cyanide concentrations. It was found that both free and WAD CN depressed gold and silver and particularly iron sulfides in flotation. The depressed gold and silver recoveries were closely associated with the depressed recovery of iron sulfide minerals, suggesting that free and WAD CN may not depress the flotation of liberated gold and silver minerals significantly. It was also found that 10 ppm free cyanide completely depressed the flotation of iron sulfide minerals and WAD CN depression is probably through the WAD dissociation to free cyanide species (mainly aqueous HCN) during the grinding process, resulting from a decrease in pH. Thermodynamic calculation showed that 5.5 ppm free cyanide was released in the end of grinding at an initial WAD CN concentration of 50 ppm. This research provides a guideline to counteract the negative effect of WAD CN in the flotation of gold and silver minerals.CITATION:Guo, B, Peng, Y and Espinosa-Gomez, R, 2013. The effect of weak acid dissociable cyanide on gold and silver flotation in Hidden Valley Mine, in Proceedings World Gold 2013 , pp 341-346 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Brinkmann J. R

In the narrow stopes of South African gold mines, rockbreaking is carried out by drilling and blasting with safety fuse and igniter cord being used as the initiation system. The fuse/gniter cord system is used primarily because of its low cost, however several limitations of this method include: inaccurate delay time, unreliable firing, inflexible application to varied configurations, and the absence of dynamic interaction between holes. Alternative initiation systems that incorporate millisecond timing are being developed to overcome the limitations of fuse(tgniter cord systems. Current investigations by the Stoping Technology Division of the Chamber of Mines Research Organization (COMRO) into the effects of millisecond initiation are being conducted at a deep test site. Experimental blasts using various millisecond delays and the independent firing of holes with fuse/igniter cord are being studied in order to quantify the influence of delay time on the blasting process and to identify the best methods of applying millisecond initiation systems. The effect of design variables such as delay time, hole firing pattern, stemming, and panel layout are discussed. Blast results including throw distance and direction, muckpile profile and rock cleaning times are used in the discussion of different combinations of blasting variables.

Jan 1, 1990

By D J. Williams, S Islam

Worldwide production of black coal amounts to about 8 billion tonnes. Perhaps 20% of this annual production is washed to improve its quality, generating perhaps 250 million tonnes of coal tailings annually, generally in the form of a slurry. The coal tailings slurry is typically thickened to about 25% solids by mass prior to disposal to a tailings storage facility (TSF), and hence comprise mostly water (about 85% by volume), plus sand, silt and clay-sized mineral particles and carbonaceous material. While the tailings settle and consolidate on deposition in the storage facility, their high moisture content makes them prone to run-out should the tailings dam fail, and makes rehabilitation of the tailings difficult. Hence, it is important to understand the consolidation and shear strength of coal tailings. Laboratory consolidation testing of coal tailings from a slurry to a soil-like state has been carried out in a purpose-built, large-scale, slurry consolidometer, instrumented with load cells and pore water pressure (PWP) transducers. Laboratory vane shear testing of coal tailings produced at different gravimetric moisture contents has also been carried out. The test results have allowed a regression model to be developed relating the peak vane shear strength of the coal tailings to their gravimetric moisture content.CITATION:Islam, S and Williams, D J, 2018. Consolidation and shear strength of coal tailings slurries, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 62–71 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By D Eschebach, D Mathewson

A belt press filter (BPF) handbook containing practical information for the reference of plant designers and operators has been created as part of Australian Coal Association Research Program project C23040. The handbook combines research and experience with newer generations of equipment and circuitry. BPFs are increasingly finding application in the dewatering of thickener underflow tailings slurries due to changing environmental regulations, difficulty obtaining tailings storage facility approvals and limited water availability. Sources of BPF inefficiency and low availability stem from a lack of understanding of the key operational parameters that affect their performance. This lack of understanding typically leads to increased operational expenditure due to suboptimal reagent dose rates and increased maintenance costs, or decreases in plant availability due to excessively high filter product water contents and equipment failure. It is essential for the continued economically competitive operation of Australian coal handling and preparation plants that complex factors affecting BPF operational performance are clearly defined and understood. Installation and operation handbooks are often provided to sites with new installations, but these manuals are manufacturer- or even model-specific and are often focused on mechanical maintenance. The handbook identifies industry ‘best practice’ and improvements developed by other sites, such as extra spray bars, air system bleed valves, guarding designs, feed and filtrate protection screens and roller tensioning systems. Equations to predict optimum operating conditions – such as free moisture, belt tension and reagent dose rates, with simple feed-specific variable inputs – have been developed from site-specific test work. The correlations developed provide a benchmark for plants to attempt to achieve. This provides operators and process engineers with a tool to explain BPFs and assist them in optimising the performance of BPF dewatering plants of both contemporary and less modern design.CITATION:Mathewson, D and Eschebach, D, 2015. ACARP belt press filter design, operation and maintenance handbook, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 73–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By K E. Mudzanani, T A. M Msagati, D T. Maiga, T T. Phadi, M R. Letsoal, B M. Chabalala, S W. Limani

This paper addresses critical environmental, health, regulatory and scientific concerns related to gold mining activities in the specific area of Barberton, Mpumalanga, South Africa. The paper thus calls for informed decisions to be made by the authorities to safeguard both the environment and people’s health. The novelty of this study is based on its comprehensive nature of the simultaneous assessment of both cyanide and potential toxic elements (PTEs) in tailings, while taking into account their composition variability over time. By combining these aspects, it is then possible to provide a holistic understanding of the contamination risks associated with mining tailings and thus justify the need for regular monitoring and supervision to ensure compliance against regulatory limits. Additionally, this paper considered investigating the dynamic nature of tailings, which are subject to changes in their chemical composition due to exposure to weathering by various agents. In this study, the determination of weak acid dissociable (WAD) and free cyanide in tailings was performed using a validated method employing the South African Council for Mineral Technology (MINTEK) Laboratory Cynoprobe. The PTEs in tailings were determined by an inductively coupled plasma optical emission spectrometer (ICP-OES). The results revealed that the tailings contained primarily substantial amounts of PTEs, including Fe (87 566 to 37 800 mg/L), Cu (271 to 110 mg/L), Mn (2100 to 680 mg/L), Ni (400 to 390 mg/L), Zn (180 to 68 mg/L), Cr (645 to 510 mg/L), As (450 to 128 mg/L), and Pb (up to 35 mg/L). The cyanide concentrations in tailings varied between 0.20 mg/L and 0.26 mg/L for free CN (with a mean of 0.23 mg/L in water leaching), 0.23 mg/L to 0.28 mg/L for free CN (with a mean of 0.25 mg/L in alkali leaching), 0.24 mg/L to 0.35 mg/L for WAD CN (with a mean of 0.28 mg/L in water leaching), and 0.31 mg/L to 0.39 mg/L for WAD CN (with a mean of 0.35 mg/L in alkali leaching). The measured concentration of cyanide and the PTEs was compared to the minimum permissible levels enforced by the South African Department of Water and Sanitation (DWS) and the Water Research Commission (WRC) regulations that govern the disposal of hazardous constituents into the environment. Additionally, it was observed that the concentrations of contaminants in the tailings exceeded the acceptable minimum limits for hazardous waste exposure, posing risks to the environment and human health.

Apr 16, 2024

This paper presents an overview of a program PC-BC developed for application to the design and evaluation of block cave operations. Conventional mine planning software tools are not well suited to the evaluation of this type of deposit. The paper looks at the modelling approach as applied to a block cave mining project. The following steps are described:Initial preparation of data including block models, draw point footprint geometry and draw cone geometry. Computation of individual draw point reserves. Procedure for modelling of vertical mixing of material within each draw point and subsequent determination of the best height of draw for each draw point based upon an economic cut-off value. Smoothing of draw heights amongst neighbouring draw points to produce a realistic draw envelope. Mineable reserves within the envelope are then computed. Tools for preparation and evaluation of various production schedules. This includes definition of draw rates, and rates for commissioning new draw points. In an operating mine, the capture and analysis of daily draw tonnages is important. How PC-BC accommodates this is described as well as the processes for depleting the draw column reserves. In the 12 years since the program was first developed, it has been used on a number of projects for feasibility studies and operating mines. Some practical examples of the use of the program in these projects are presented. Finally, some commentary on the sensitivity of various parameters is presented. Particular emphasis is placed on the overall footprint design.

Jan 1, 2000

By Brumley J

The development of the SECV brown coal open cut at Loy Yang will require depressurisation of aquifers both within and below the coal seam sequence in order to maintain open cut stability. Prediction of future open cut dewatering requirements at Loy Yang Open Cut and evaluation of the regional consequences of dewatering has required development of a detailed hydrogeological model of the Loy Yang area. The complex stratigraphy of the coal seam and aquifer/aquitard sequences at Loy Yang have been analysed and integrated with the hydrogeological concepts developed from regional groundwater studies to formulate a realistic hydrogeological model as a basis for finite-element flow modelling.

Jan 1, 1988

By R Pinksen

The Iron Ore Company (IOC) of Canada Mining and Operations Departments expressed an interest in reducing the amount of oversize material (>1 m × 1 m × 1 m) being produced and its subsequent downstream effects including in-pit sorting and reduction, damage to mobile equipment, and significant delays in the loading pockets and the primary crushers. To achieve this goal an oversize reduction project was undertaken by the mine and to date has significantly improved upon baseline measures.One key approach used to reduce the amount of oversize was the implementation of thicker emulsion. The introduction of a thicker emulsion into the blastholes provided more resistance to the forces created by dynamic water and reduced the infi ltration of the emulsion into the cracks and fissures of the rock mass. Blast results showed reduced amounts of oversize and more consistent fragmentation throughout the muck piles. Additionally, a significant reduction in nitrates leached into the mine water discharge has been realised.To determine the effectiveness of the oversize reduction project, IOC used shovel based camera technology to assess fragmentation presented to the shovel at the digging face. A digital vision system (DVS) was installed on one of the shovels to capture images that were stamped with global positioning system (GPS) locations. A large population of digital images was analysed to produce a robust fragmentation distribution baseline that was used as one of the mine key performance indicators (KPI). Changes to blasting practice were subsequently measured against the baseline KPI to assess effectiveness.

Jul 11, 2011