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The objectives of this paper are two-fold. First, it will show what problems can arise when single estimated values are substituted for a distribution of values when evaluating an open pit mine project in the face of uncertainty. Secondly, it will show how the ability to deal with uncertainty and risk in mine project evaluation can have a significant impact on the ownersÆ and stakeholdersÆ investment decision-making. Here a new mine evaluation framework, the integrated valuation/ optimisation framework (named IVOF), is introduced as an alternative tool for mine project evaluation where uncertainty and risk are incorporated in the evaluation process.

Jan 1, 2009

By S Watson, L Martinez

Mine projects are complex opportunities that demand a constant assessment of uncertainty, ie risk and upside potential. This is because the value of a mine project is typically influenced by many underlying economic and physical uncertainties, such as metal/mineral prices, metal/mineral grades, costs, schedules, quantities, and environmental issues, amongst others, which are not known with much certainty at the beginning of the project. But, is uncertainty an enemy or an ally of the mine planner/analyst? To answer this question, this paper first assesses and elaborates upon the general concept of uncertainty. It then looks at the different sources of uncertainty in a mining project, such as the orebody, costs and product price uncertainties, and their effect on the final project value. Next, a general?review?of current mine evaluation techniques highlighting their limitations when dealing with uncertainty is made. Finally, an extended evaluation and risk management framework that addresses the existing uncertainty in the (greenfield/brownfield) mine evaluation process is proposed. One important characteristic of this framework is that it uses and manages uncertainty in order to generate additional value to the project; this is done through operational and managerial flexibility, which allow mine planners to minimise/maximise project risk/upside-potential giving a more realistic estimate of the projectÆs market value - this is shown in practical and simple examples occurring at different stages of a mine project, such as exploration and operation. Final conclusions are provided at the end.CITATION:Martinez, L and Watson, S, 2012. Uncertainty - An important source of (additional) value for mine projects, in Proceedings Project Evaluation 2012 , pp 131-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Owing to the increased consumption of sulphuric acid; Australian manufacturers have, from time to time, been seeking for a satisfactory source of sulphur that would make them independent of foreign supplies.Some years ago a considerable amount of acid was obtained from the roasting of Spanish pyrites. This ore, in 1913 or thereabouts, cost 16s. per ton f.o.b. Huelva, and freight to the eastern seaboard of Australia was about 20s. per ton. As the ore contained 48% to 50% of available sulphur, it was costing roughly 9d. or 10d. per unit, and, in addition, the cinder, after roasting, was a product of considerable value to smelters, containing as it did a high percentage of iron suitable for fluxing, and appreciable values in silver and gold.

Jan 1, 1925

The development and introduction of a preventive maintenance scheme in the coke ovens department, coal preparation section, of The Broken Hill Proprietary Co. Ltd., Newcastle steelworks, is described together with its operation and the results achieved during the first 12 months.'fhe scheme consists essentially of an engineering analysis of the plant to establish maintenance schedules, and to record the details on reference cards.Items are reviewed progressively and a weekly work schedule is prepared, from which work orders are passed on to the maintenance foremen. These foremen in turn originate action orders and issue inspection sheets as required. Results are then reported back to the maintenance planner and used to revise norms, practices, and cycles.INTRODUCTIONWhat is maintenance? Some people consider maintenance to be the work involved in putting things together again after they have fallen apart. The author regards it as the mechanical care and repair of plant machinery and equipment to keep it operating in sound mechanical condition, without undue interference with production processes.Maintenance may be organized or haphazard, and, too often, what has been fondly imagined to be nicely controlled and organized maintenance proves, under pressure, to be more correctly described as haphazard. Haphazard maintenance deals with breakdowns as they occur, and frequently finds itself confronted with more breakdowns than can be handled. Even organized maintenance, if not based on sound planning, can, at times, be found in a chaotic state, because of unexpected and unanticipated breakdown.Properly planned and scheduled maintenance permits an orderly and controlled approach to the problem of maintain...

Jan 1, 1961

By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By McNicol M. D

Petroleum exploration in onshore Gippsland was directed in the 1950s and 1960s towards plays in the basal Latrobe and Strzelecki Groups, but these became forgotten in the 1970s with the Latrobe play discoveries offshore. The principal explorationists of the time were Woodside Oil and Arco Ltd, who then departed the scene after drilling some 18 wells without major success. In the late-1980s successful hydrocarbon finds in equivalent age Otway Group sediments in the Otway Basin were made and in early 1990 Tyers Petroleum began investigations into Strzelecki Group prospects as applied to the onshore Gippsland Basin. Some 18 anticlines have been mapped, based on shallower coal exploration drilling in the Latrobe Group, which from seismic and gravity evidence are believed to unconformably overlie similar anticlinal structures in the underlying Strzelecki Group. Strzelecki targets of interest within drilling depth are the basal Tyers Conglomerate/Rintouls Creek Sandstone Formations which outcrop in the north of the Latrobe Valley and are analogous to the Pretty Hill Sandstone in the Otway Basin. In addition, intra-Strzelecki Group targets similar to Heathfield and Windermere Sandstone Members are also considered to be present. Good source rocks are abundant including coal seams and carbonaceous sediments of Neocomian and Jurassic age, which lie within the oil window. Seal is provided by the overlying Aptian-Albian aged volcanogenic sediments. The Tyers/Rintouls sandstones - a target in the Woodside/Arco wells, with two exceptions, were not reached. Encouraging intra-Strzelecki shows were reported in many of the wells. Basal and intra-Strzelecki porous quartzose sandstones remain one of the few untested plays left in the Gippsland Basin and, in the onshore, merit extra attention as they he within the oil window at economically drillable depths.

Jan 1, 1992

Plant-Based Trials of Monitoring of Coal Flotation Systems Using Electrical Impedance Spectrum Technique

Sep 13, 2010

In, one stage of the purification sequence of the zinc sulphate electrolyte used at Risdon, cobalt is, precipitated as cobalt nitroso-,B-naphtholate, which is separated from the solution by filtration. Owing to the method of conducting the purification the filter cake contains much gypsum, unconsumed calcium hydroxide, basic zinc sulphate, and entrained zinc sulphate solution, Small amounts of iron and copper that have escaped previous purification steps are also precipitated with the cobalt as nitroso-,B-naphtholate. Thisprecipitate, normally carrying about 18% cobalt, is the raw material for the production of cobalt oxide, cobalt sulphate and cobalt metal.COBALT OXIDEThe main problem in the preparation of a reasonable grade of cobalt oxide from the filter cake is the economic separation ,of the cobalt nitroso-,B-naphtholate from the gypsum. This was solved by the application of flotation. It was discovered that the cobalt nitroso-,B-naphtholate, under correct conditions, would float without any addition agent, giving a relatively high grade concentrate. A plant, was built and has been in operation since 1936. The filter cake is pulped with water and pumped to one of two mechanically agitated tanks, eath capable of holding one day's output. Sulphuric acid is added until the free acid concentration reaches about 3 gm. per litre. Basic zinc sulphate is dissolved and calcium hydroxide converted to gypsum. The pulp, carrying about 2t lb. of solids per gallon, is pumped at a suitable rate to the first of a series of 10 flotation, boxes.. Each box is 3 ft. by 2 ft. 9 in. by 5 ft. deep, and, all have a common, pulp level, since the...

Jan 1, 1949

By A Watson

We tend to overestimate the volume of water used to process ore and the evaporation from tailings and heap leach stockpiles. During mine operation, a significant portion of the water collected from onsite water management systems is consumed and recycled by ore processing and lesser portion discharged to the environment. When mining and processing cease, however, the mine site water balance is altered and the real effort and cost associated with managing and disposing of excess mine-influenced water becomes evident. As these flows can no longer be recycled and may not be suitable for discharge to the environment, the cost of dealing with them can comprise a significant portion of the post-mining liability. The problem of dealing with large volumes of mine affected water has the potential to become worse in the future due to the established trend of lower grades which require more water per unit of mineral processing. As a result, future mines may be expected to have greater water needs and problems than we experience today.This paper discusses various aspects about how water usage changes when a mine transitions from operation to closure based on observations and numerical simulations of made with site-wide water balance models. The intention is to provide general considerations for mine operations in planning for end of mine life and post-mining care and maintenance.

Jan 1, 2009

In the latter half of 1973 a contract was given to Roberts-Holland Joint Venture for the stripping of the southern exhaust airway.The contract was carried out efficiently and relatively cheaply. It was completed 2 months ahead of schedule.The sinking stage and in particular the drilling jumbo proved to be a success and helped produce an above schedule stripping rate.No major problems were encountered with ground conditions or ventilation. A survey of the shaft showed the diameter to be within the set limits of 5·49 m ± 0·15 m.

Jan 1, 1974

By I M. Turnbull

QMAP (the Quarter Million Mapping Programme, 1:250 000 scale) is a geological mapping programme which will build a digital geological database of the whole country and publish maps and books to document it. The programme was established in 1993, following a recommendation by a review panel appointed by the Ministry of Research, Science & Technology, and is funded by the government, from the Public Good Science Fund. The relevance and fundamental value of QMAP lies in the greatly improved geological knowledge it will provide for researchers and other end-users of geological information.   QMAP research involves assessment of previous work, field and laboratory investigations in key areas, and data storage, manipulation and publication using Geographic Information Systems (GIS) computer technology. The QMAP digital database of New Zealand geology will be completed by 2006, as will the series of 21 full colour printed geological maps and accompanying explanatory texts. Two are already completed and published (Kaitaia and Dunedin), and six other projects are well advanced.   QMAP information will also be available in digital form. Next year we hope to expand the scope of the programme to cover the reconciling and linking of many other earth science databases to QMAP, because we believe this will create a powerful research tool. The intention is to develop internet access to the databases, to make the information publicly available.

Jan 1, 1997

By P Staples, G Lane, S Morrell

The design of semi-autogenous grinding (SAG) mill based comminution circuits for the treatment of competent ores, similar to those at Geita and Boddington, involves the same process of sample selection, test work, data analysis and data modelling/interpretation as that used for 'average' competency ores. However, over the past couple of years a number of issues have arisen that are common to the design of circuits for the comminution of 'highly' competent ores. The impact of these issues on project viability is generally more pronounced when treating hard ores than average to soft ores due to the greater impact on capital and operating costs. The issues encountered have included: standard test procedures have been modified; test equipment has worn or been damaged; different procedures yield different data and varying interpretation; and modelling and empirical calculations have been based on poor benchmarks, or used incorrectly in the case of JKSimMet, yielding misleading outcomes. The purpose of this paper is to present, discuss and clarify some of the issues associated with conducting test work and designing comminution circuits for the treatment of 'highly' competent ores in order to reduce thelevel of conflict arising from interpretation and application of test work data. Specifically, the issues associated with the bond crushing (impact) and rod work indices measurement, the various SAG mill specific energy tests, and the interpretation of the resulting data will be discussed in the context of case studies.

Jan 1, 2009

When the Mining Bill came before the Victorian Legislature not so many months ago, the question arose whether mining managers required education, and to what extent. Some members of the House expressed themselves in a way which appeared to leave the impression that mining managers would be all the better if they were not brought up in a scientific school.To try and prove what we owe to science I will give a short history of colonial mining from the earlier period to the present time and compare results.I believe I am right in saying that South Australia is the pioneer colony in mining and to her belongs the credit of not dnly being the first mining colony, but also that her beginning turned out so successful, as the history of the Burra Burra copper mine will testify. At about the same time a little galena mining was carried on nearer to Adelaide, but as this did not prove a success and was only worked by tributing parties, little notice was taken of it.

To the industrial geologist, as wen as to the general or historic geologist, the possession of a reliable key to the true order or sequence of the stratigraphy or position of the various upper rocky envelopes of the earth's crust, is, equally, a desideratum of the utmost importance. Of similar value to the two groups of students is the possession of facts which throw light upon the relationships which subsist between the puccessive rock formation of different countries, especially between countries lying close to each other, or within the same great geographical division.But there is necessarily a fundamental distinction which marks the respective limits of the field of observations of the industrial geologist, and the purely historic interest of the general geologist. The former has a more definite though less extensive scope. The scope of the latter is wide and indeterminate. In short, the observations of the industrial geologist are, 'from a commercial or economic point of view, of a more practical character, and are, therefore, intentionally restricted to the study of all geological questions which throw light upon the rocks which yield products of economic value and only include the study of the character and history of other rocks, in so far, as they afford aid to the more perfect comprehension of the best manner in which materials of economic value are likely to be sought, and the best means whereby these products may be secured for the material advantage of the community. The motive of the general geologist-in most cases-is a love of the study of some particular branch or province of the geological field, and the fascination of opening a new volume in nature's library, and the hope of extending the realm of knowledge, however slight, are often sufficient, as a motive, to enlist the energy and life's devotion of the true brethren of the hammer, irrespective of considerations regarding the commercial utility of the pursuit.

By M A. Mongillo

Most geophysical and geochemical data collected during regional exploration programmes are in vector form (location, value), and have traditionally been presented and interpreted in a profile or contour map format. However, the human vision system can interpret data presented in image format much more easily and new information is often revealed by the judicious application of powerful interactive computer image enhancement techniques. This paper describes a practical demonstration of the application of such tools to gravity and resistivity datasets from the Central Volcanic Region of theNorth Island.   Filtering, contrast enhancement, relief shading, pseudo-colouring and then overlaying of the gridded datasets in image format has helped identify inter-relationships such as the association between many low resistivity anomalies (epithermal deposits or geothermal resources) and the edges of large gravity anomalies (calderas or grabens). Similar revelations should result from the application of these tools to the integration of other mapped datasets from geophysical, geochemical and geological disciplines.

Jan 1, 1992

By S McKinley, S Juras, E Uludag

More and more, today’s mining geologists are asked to identify and create 3D value domains for multidisciplinary usage: grade definition, geometallurgical performance and geotechnical characteristics, to name a few. Often, that domain shape is the result of an assumed or conjectured value as a surrogate to a set of conditions (eg kaolinite-rich, sericite alteration). Would it not be instead better to create the respective domain through identification of a consistent quantifiable geologically-based pattern as its basis?Critical to the identification of patterns is the transformation of 3D point data into a model by a method that uses few, if any, preselected thresholds. Too often we complicate the reviews of the modelled data by prejudging the value range of interest. And when we do revert to 2D views (ie sections and plans), we tend to only examine numbers or line traces. These hinder and obscure identification of geological patterns particularly in deposits of complex geology. Instead, these data should be looked at with minimal prejudgment and interrogated in 2D space by one of the best and most eye-catching display types: filled contour plots.Here we present two different processes that transform data with minimal preselection into formats that allow for pattern recognition by filled contour plots. These are: probability assisted constrained kriging (PACK) and multiple interval interpolant formation (Aranz Geo’s Leapfrog® software). The former creates a 3D model of probabilities on a threshold value; the latter creates numerous (=10), regularly-binned 3D interval interpolants. The results of each method are examined as filled contours over numerous sections or plans. Any distinct patterns are quickly discerned thereby readily identifying the best value to base the creation of a domain. These processes therefore provide a way to marry recent advances in software tools with what is supposed a geologist’s core skill: pattern recognition.CITATION:Juras, S, McKinley, S and Uludag, E, 2017. Pattern recognition in transformed data – the search for domain shapes in mine geology data, in Proceedings Tenth International Mining Geology Conference 2017, pp 37–42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

The first mention of gold in Western Australia was in 1848 when some specimens of copper ore, which are believed to have come from the Murchison district, were sent to Adelaide for assay. Gold was present in these specimens, but no particular interest seemed to be attached to this fact as the search at that time was mainly concentrated on base metals and coal. Interest appeared to be shown in gold in 1852 when several parties moved out eastwards from York looking for goldbearing country. Though these parties inmany cases were very near to what is now known as the Yilgarn Goldfield, nothing was found.The next record of gold was reported in some specimens which were brought in from Cardup, some 25 miles from Fremantle. Though this area was investigated, it would appear that all the gold had been contained in the specimens and nothing further was found, though the report had been the cause of a small rush of people interested in gold.From time to time specimens had been brought in by various people from the district east of Northam, and in 1861 a reward emanating from private sources was offered for the finding of gold within a radius of 150 miles from Perth. The Government at this stage took an interest in exploration for gold and in the same year supplemented this privately offered reward on a £ for £ basis. The Government also, about this time, commissioned a practical miner, with prospecting experience in the Eastern States, to examine the country between Albany and Northam with a view to the possible existence of goldbearing veins in that area. His report, however, was entirely unfavourable and nothing further was done. In 1873 a quartz lode was discovered near Albany arid a company was formed to work...

Jan 1, 1956

By S Thomson, M Lovitt, T Purvis, C te Kloot, T Nguyen, Z Liu

Ernest Henry Mine (EHM), located in north-western Queensland, is an underground copper/gold sublevel caving operation currently producing over 6 Mt/a of ore. The mass mining method of sublevel caving (SLC) used at EHM involves systematically blasting a series of uphole rings in parallel ore drives and drawing the broken ore using a top-down approach. Each ore drive contains multiple precharged rings to prevent having to charge in close proximity to the brow of the previously fired ring; however, the current initiation system still involves ‘hooking up’ all detonator lead cords of the first precharged ring. The unstable nature of a rill and working close to a brow presents hazards to personnel completing the hook-up process. There is also a business risk of ore loss when damaged ground support completely prevents access to the next precharged ring. If the hook-up step could be eliminated, the risk to personnel and the business would be significantly reduced.EHM engaged Orica Mining Services in 2016 to trial their WebGenTM 100 – wireless electronic blasting system (WEBSTM) for the first time in an underground mining environment. Having successfully signal-tested the equipment, two test holes were initiated, followed by a single production ring and then multiple production rings. In total, 30 production rings were successfully fired underground at EHM in 2017. To do this, WEBSTM was successfully integrated into EHM’s current charging and firing process, resulting in no business delays or loss to production. None of the 30 rings required hooking up and all were initiated from the surface with no personnel underground. A high level of ownership from all personnel involved ensured the trial was a success, and provided scope for wireless detonators to be used successfully on a large scale – both at EHM and other sublevel caving operations. WEBSTM is now a proven example of technology that can be used to improve safety in the mining industry, through eliminating the need for personnel to work in hazardous areas.CITATION:te Kloot, C, Liu, Z, Purvis, T, Thomson, S, Lovitt, M and Nguyen, T, 2017. Improving safety through technology – Orica wireless electronic blasting system trials at Ernest Henry Mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 39–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

A pilot steel ladle injection facility designed to assist in the production of high quality steels suitable for use in pipelines has been built and commissioned at the Basic Oxygen Steelmaking (BOS) plant at Port Kembla Works.The plant design and the injection procedure are described.The performance of the unit and some metallurgical results are discussed in terms of the addition to the steel ladle of various quantities of calcium silicide and a lime based material. The effects of these additions on sulphur content and inclusion morphology and hence on steel ductility are also presented. The influence of ladle lining on desulphurisation is illustrated.On the basis of the experience gathered in the pilot plant a permanent and more sophisticated injection facility has been designed.

Jan 1, 1983

Agglomeration for Copper Heap Leaching Agglomeration of ore is a method which can be used to eliminate the migration of fine grained particles throughout a leach heap. Without agglomeration, fine ore particles are able to migration within the heap, clogging flow channels and producing large areas where access of the solution is poor. In order to gain the benefits of agglomeration and improve agglomerate strength even further in copper heap leaching, an economical, acid-resistant binder is needed. However, most binders have been used without any systematic reasoning. A set of novel testing methods were developed, including a soak test, percolation flooded columns, and larger long-term leach columns. The soak test compares the degree of breakdown when agglomerates are subjected to an acidic environment. While the percolation flooded columns and larger long-term leach columns evaluate the flow of leach solution throughout the ore bed. Systematic studies have been completed on a wide range of binders using these novel testing procedures. It was found that for a low grade chalcocite ore, which was rich in silica, from a southwest US mine, polyacrylamides reduced the fines migration the best in the novel soak test. The non-ionic binder, in particular, was found to reduce fines migration as much as 93 per cent. Several of the binders tested were shown to increase the hydraulic conductivities of the agglomerated ore up to 2.5 mm/sec, compared to a hydraulic conductivity of only 0.25 mm/sec when no binder was used. These binders also prevented 'slumping' of the ore, which indicates a decrease in breakdown of the agglomerates. The use of a binder also showed no interference with leaching reactions in long-term leaching experiments.

Sep 13, 2010