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By Q Shu, T Deng, B Yan, B Song, D Wang

In view of the lack of phase equilibria data of vanadium-bearing oxide system and the desirability of them for design or optimisation of vanadium extraction process, the phase equilibria relationships of V2O3-FeO-SiO2-CaO(15 mass per cent) system were determined experimentally and then an isothermal section phase diagram of this system was constructed. Totally, 81 samples of different composition were equilibrated at 1623 K for 48 hours in iron crucible under Ar atmosphere. The equilibrated samples were quenched quickly in cold water, and then the phase constituents of all the samples were identified by X-ray diffraction (XRD) combined with electron probe microanalysis (EPMA) measurements.

Aug 21, 2024

By J H. Zietsman

The transition to more sustainable metal production is receiving much attention at present, and the iron and steel industry is at the centre of the conversation. New, more environmentally friendly production technologies, such as direct reduced iron (DRI) smelting furnaces, need to be developed in a short period of time. This necessitates increased use of computational modelling that incorporates more accurate material descriptions. The combination of large-scale multiphysics models of high-temperature processes with CALPHAD material descriptions leads to infeasible computation times. This can be resolved with the previously reported RapidThermo framework, which has been demonstrated to make equilibrium calculations orders of magnitude faster, within controllable limits of accuracy. In this paper, we explain how further material properties, which are important to modelling hightemperature reactors, can be added to the RapidThermo framework. This can improve the accuracy and usefulness of process and multiphysics models in the development of new technologies, which can significantly accelerate development cycles.

Aug 21, 2024

By Robinson T

The paper describes a spreadsheet system that enables selection of projects and companies that meet the user's corporate exploration and/or acquisition philosophy. A regularly maintained commercially available database has been used as the basis for this system. It provides an easily accessible efficient com- prehensive search method. The technique enables ranking by various criteria, both technical and financial, to provide groups of projects/companies that are of interest. Initially, target size parameters such as reserves, production and mine life are applied together with geological criteria such as age and deposit type; the significance of the targets in the context of the Australian gold industry is addressed.

Jan 1, 1988

By A Manfrino

The Iron Bridge magnetite mine and infrastructure project is currently in development as a joint venture between Fortescue Metals Group, Formosa and Baosteel. It is supported by an extensive database of reverse circulation drill hole samples analysed by X-ray fluorescence (XRF), with a large subset tested for concentrate mass recovery, concentrate and tail grades by Davis tube recovery (DTR) testing. A limited number of rock physical testing results, including unconfined/uniaxial compressive strength and crushing work index, completes the database.By combining all available information – assays, DTR results, geology, stratigraphy, mineralogy and rock physical results – and using multivariate statistical analysis techniques, the impact of the critical factors that control concentrate quality, mass recovery and grindability characteristics have been outlined. A set of geochemical groups was created by using a cluster analysis technique from the combined XRF-DTR data. These groups allow optimal separation of material with consistently high concentrate Fe grades and mass recovery. This approach is superior to domaining based on stratigraphic logging or mass recovery as it is commonly used in standard magnetite estimation models. Using the results of a normative mineralogy study, the main geochemical groups were given a mineralogical profile fitting their geochemical characteristics. These findings further refined the understanding of the link between the process characteristics of the samples and their geochemical signature and mineralogy.The geochemical grouping defined on head grades and DTR concentrate mass recovery was generalised into a ‘geomet’ code based solely on the routinely assayed head grades, thus bypassing the need for systematic DTR testing. The geomet code identifies spatial domains with homogeneous geochemistry, mineralogy and process characteristics in both oxide and fresh material that form the basis of the current Iron Bridge resource model. The allocation of geometallurgical characteristics in terms of concentration amenability and concentrate characteristics on a block-by-block basis over the whole project allows for an optimum mine schedule and plant feed. This ensures that the desired concentrate characteristics and mass recovery can be better predicted over the life-of-mine, thereby improving the mine’s economics and stability by derisking the mine schedule and optimising the performance of the concentrators. A key benefit of the geomet code devised for the Iron Bridge mine is that it can be attributed in an automated manner to all samples analysed for a routine XRF analytical suite, from exploration to blasthole drilling. This allows each sample to be allocated to a geometallurgical material type with predictable process response in terms of concentrate mass recovery and concentrate quality without the need to complete systematic DTR testing.A standard multivariate analysis coupled with a cluster analysis has allowed the linking of interdisciplinary results between geology, mineralogy, geochemistry, process and metallurgy to better understand, predict and ultimately mine and process the Iron Bridge deposits. This allows plant operations and product quality to be optimised through each stage thanks to the predictable ore characteristics embedded in the mining model.CITATION:Manfrino, A, 2015. Unravelling the factors impacting on concentrate quality by geometallurgical data analysis at Fortescue Metals Group’s Iron Bridge magnetite mine, in Proceedings Iron Ore 2015, pp 567–578 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By R Markoski, P Grealish

The requirement for rapid vertical development for underground ventilation is often a factor when dealing with dynamic mine plans, with short vertical developments being used to optimise ventilation systems. In an effort to increase the safety and efficiency of the constructions, a simple and effective sinking methodology is required that is both adaptable and repeatable. A modified shaft construction methodology is proposed that attempts to minimise risk to the personnel as well as be cost-effective. Readily available equipment is used to ensure adaptability to the various environments and shaft parameters.One of the greatest risks of shaft sinking is having personnel working suspended over open cavities or underneath suspended loads. Removing this risk, by ensuring all construction is done from solid ground, allows for safer sinking operations. As the process is repeatable, familiarity and confidence in its construction sequence will increase with each successive sink.A trial sink is performed with a 3.6 m diameter, 20 m deep shaft. The shaft was excavated using a conventional strip-and-line philosophy, with the shaft then being lined from the collar via the use of large diameter corrugated steel culverts. The annulus between the steel culverts and shaft excavation is then filled with a concrete mixture to secure it in position.The new process was successful, with no personnel at any time during the process being suspended above an open excavation. The installation had relatively low capital and operational costs and was completed faster than an equivalent, conventional concrete-lined shaft construction. Therefore when compared to conventional shaft-sinking methods, this process can be considered safer, more efficient and relatively cost-effective.Further research is required to determine whether this method can be expanded to larger vertical developments.CITATION:Markoski, R and Grealish, P, 2014. A new method for rapid vertical development of underground ventilation shafts, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 603–606 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By K McSweeney, A Marton

This paper discusses the development of a strategy for ensuring long-term geotechnical stability of final pit walls at AngloGold AustraliaÆs Sunrise Dam Gold Mine. The strategy makes use of improved blasting techniques, changes to the mining sequence and other geotechnical techniques. Only the blasting techniques will be discussed in this paper. These were developed from numerous trials over a period of several months from May 2003 through to November 2003. The focus was to reduce crest loss damage and thereby improve final wall integrity, maintain designed safe berm widths, and ensure long-term stability. Crest loss mechanisms are now understood and are explained in this paper. The preferred solution is outlined; which is a combination of improved blasting and changes in the mining sequence to cater for pre-existing ground conditions. These ground conditions include dynamic hyper saline water with sometimes intersecting steeply dipping discrete structures. Project requirements were defined as mitigating or eliminating crest loss using 127 mm diameter pre-splitting and targeting minimal production blasting vibration levels against the walls. Blast results were measured by post blast visual inspections and video. Blast design input utilised the predictive algorithms built into simulation software when attempting to minimise vibration levels against the walls. Protection of the already fired pre-split line is now achieved using small charges against the wall and timing sequences which form a mask for the later firing main charges. The pre-split spacing is now modified to suit the geology. There eight blast domains identified around the perimeter of the pit, each having varying joint orientation. In addition, blasting the bench adjacent to the berm crest has particular considerations not required by the middle and lower benches. The preferred solution was to purposefully translate this damaged top section of the pre-split bench into a planned subsequent dig zone. The design of this top æweightÆ is a direct response to the nature of the crest loss mechanism.

Jan 1, 2004

By C D. Strickland

Western Australia (WA) has been a significant world producer of titanium minerals (rutile, ilmenite and leucoxene) and zircon for over 55 years. In 2010, despite global difficulties, WA accounted for 12 per cent of world production for zircon, ten per cent for ilmenite, and eight per cent for rutile. With downstream processing, titanium minerals (ilmenite, rutile, leucoxene) and zircon exports for 2010 were valued at $511 M (Department of Mines and Petroleum, 2010).Production is dominated by two areas of the Perth Basin, namely the Eneabba and the Bunbury-Capel regions, which are located 240 km north and 200 km south of Perth respectively. Mineralisation is within Cenozoic beach or near shore dune deposits at three broad altitudes related to the present coastline, and two older higher sea-level still-stands. The titanium-zircon minerals presumably were derived from the underlying Mesozoic sediments of the Perth Basin. Contrary to expectations, age dating suggests that the ultimate source of most of this mineralisation was not the adjacent Yilgarn Craton. With the cooperation of industry, the Geological Survey of Western Australia has mapped all known significant titanium-zircon mineralisation within the Perth Basin. This mapping has identified ‘strategic mineral resource protection areas’ that should be set aside for future mining, ‘sterilised’ and ‘mined’ areas that generally do not restrict land use options, and ‘possible strategic resource areas’ which have exploration potential for hosting titanium-zircon mineral deposits.The Perth Basin is currently undergoing rapid residential and industrial development. By informing all stakeholders of the locations of potential mining areas, the titanium-zircon mapping has the ability to reduce future land use conflicts, and facilitate sequential land use planning. Appropriate planning measures are being implemented to ensure that the Western Australia’s titanium-zircon minerals industry remains strong and viable in the future.

Oct 5, 2011

By A Whaanga, W Vigor-Brown

IGO Ltd’s (IGO’s) Nova-Bollinger Deposit (Nova-Bollinger) is a magmatic nickel-copper-cobalt (NiCu-Co) sulfide deposit found 160 km east-north-east of the town of Norseman in Western Australia (WA). The deposit is hosted by the Mesoproterozoic rocks of the Fraser Zone, which is part of the Albany Fraser Orogen (AFO). Since mining commenced in 2016, IGO’s Nova Operation (Nova) has mined and processed to 31 December 2020, 5.63 Mt of ore grading 2.04 per cent Ni, 0.86 per cent Cu and 0.07 per cent Co. Nova’s mine geology team (MGT) has used commercially available implicit modelling (IM) and general-purpose resource modelling (RM) industry software systems, to prepare the 31 December 2020 (CY20) update of Nova-Bollinger’s JORC Code reportable Mineral Resource estimate (MRE). This CY20 MRE update was predominantly based on ~386 km of diamond core drilling, with the drill holes having a nominal grid spacing of 12.5 by 12.5 m throughout the mineralised zones of the deposit. Using IM tools, Nova’s MGT interpreted and modelled 22 separate domains from the drill hole logging, assaying results, and the MGT’s underground mapping. These IM closed volumes were then used to control the estimation of MRE variables into conventional industry digital block models using RM and other ancillary software systems. During 2021, a commercial machine learning (ML) software was trialled by Nova’s MGT for preparing block models of Nova-Bollinger’s MRE domains. The motivation for the trial was that the ML process could expedite modelling through the direct creation of a domain coded block model from the drill hole logging. Compared to the industry standard approaches of wireframing or IM, where the modeller usually makes many subjective choices to produce the domain model, ML offers a more objective ‘hands-off’ process for determining the connectivity of domains defined in drill holes. Additionally, the ML process provides a quantitative confidence metric associated with its output that may have utility in mine production and resource classification. In this paper, the results of the Nova-Bollinger ML modelling trial are compared to the MGT’s current workflow for MRE work. The MGT’s conclusions as to the advantages and disadvantages of the IM and ML methods for preparation of MRE domains are discussed. The ML software was also tested as a method of rapidly interpreting geology outside the principal zones of MRE interest. These testing results are also presented in this paper.

Mar 22, 2022

By D Pienaar, B McFadzean, C T. O’Connor

Collector and frother molecules in sulfide mineral flotation are thought to have separate roles in the flotation process, where the collector selectively hydrophobizes the mineral surface and the frother adsorbs onto the bubble surface, inhibiting bubble coalescence. Molecular interactions have been observed between these molecules which allow them to co-adsorb at each of the respective interfaces, improving pulp phase recovery. This study investigated the molecular interactions between sodium diethyl dithiophosphate (SDEDTP) and hexanol, and the mechanism by which these interactions improve the recovery of galena. In this study each of the respective interfaces were investigated for the adsorption of SDEDTP. The adsorption of SDEDTP on galena was measured by UV-Vis spectrophotometry and isothermal titration calorimetry. At the air-water interface foam stability and pulp bubble coalescence was used to quantitatively discern if there are interactions between SDEDTP and hexanol. Microflotation and induction time experiments were performed to determine the effect of SDEDTP, hexanol and their mixtures on mineral recovery and bubble-particle attachment. The results of all these tests were collated to determine if SDEDTP-hexanol mixtures synergistically improve sulfide mineral recovery. It was found that SDEDTP reduced bubble coalescence in the pulp demonstrating activity at the airwater interface. Together SDEDTP and hexanol synergistically enhanced foam stability. This indicated that there are attractive molecular interactions between these reagents. Even though DTP did not adsorb onto galena, DTP-frother mixtures synergistically improved the recovery and attachment probability of this mineral. Adsorption studies with aeration showed that DTP in the presence of a frother transfers from the air-water interface to the galena mineral-water interface during bubble-particle collision. It was proposed that the transfer of hexanol through the thin film enhanced the kinetics of film thinning between the bubble and the particle by destabilising the thin film thus improving pulp phase mineral recovery.

Aug 24, 2022

By E Nunes, R Mendes, D Jacobson, G Cota, T Machado, E Santos, J Almeida, E Pereira9, B Raso

Grinding circuits are known to be the highest consumer of energy used in the ore comminution process, with high operational costs and sensitivity to ore conditions. The mining industry is being encouraged to look for more energy efficient processes while increasing the mass and metallurgical recovery; a specific example is projects with lower iron ore grades, which demands a higher level of liberation and resulting higher energy consumption. This has led to increased usage of high-pressure grinding roll (HPGR) technology as an alternative design within the comminution circuit. A growing use of the HRC™ HPGR technology has been used to generate concentrate through a more sustainable process. In the Brazilian state of Minas Gerais, the readaptation of iron ore beneficiation circuits has been initiated, replacing the traditional crushing-to-grinding flow sheet with circuits using crushing-to-HPGR flow sheets, with the main driver being reduced energy consumption. Utilising results from sampling campaigns and analysis of experimental data collected in an industrial plant, the work herein presents a case study from the JMN Mineração operating plant, where the HRC™ HPGR was used as an alternative to traditional grinding using horizontal mills. The results show that the HRC™ HPGR performance in this iron ore processing plant showed benefits in terms of reduced energy consumption as compared to the projected performance with a traditional grinding circuit.

Sep 18, 2023

By L Galisson, E Audigé, D Sowers

Establishing a robust geotechnical instrumentation and construction monitoring plan is one of the keys to the successful delivery of the world’s largest soft-ground bored tunnel in Seattle, Washington. The paper describes and provides a return of experience on current and best practice for monitoring tunnelling projects in urban areas. The owner’s contractual approach is discussed to highlight the flexibility of the design-built contract in achieving equal or better solutions by allowing for the use of innovative technics. Special attention is given to the management and involvement of third parties (building owners, utility owners), including the public, to overcome all challenges faced during the installation of the monitoring system in downtown Seattle for over 1000 instruments. Finally, the authors present the strategies implemented for managing the monitoring data and communicating with the owner, contractor and stakeholders.CITATION:Sowers, D, Galisson, L and Audigé, E, 2014. Current and best practice for monitoring tunnelling projects in urban areas – Alaskan Way bored tunnel, Seattle, Washington, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 441–450 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Underground mine ventilation is now com monly simulated on a digital computer. Such a programme, incorporating natural ventilation has been modified by others to account for methane emission and elevated local tempera- tures. At Wollongong University, the pro- gramme was further developed and extensive interactive graphics incorporated such that any view of the three dimensional mine could be viewed, and superimposed upon that view are areas where a nominated parameter has exceeded a particular value - generally at a nominated time after a particular event and usually a fire/explosion of one type or another. A further programme was developed such that up to 20 'times' could be examined at a particu- lar location after say, a fuel rich fire at some other place in the mine. The output from this programme includes a plot of methane 1, smoke 1, temperature, pressure and air flow versus time - a most useful graphic to observe the limits of safe attendance in a particular Airway.

Jan 1, 1983

By R Berry, J Hunt, T Kojovic

Geometallurgy aids the understanding of orebody variability through the integration of geological and processing information, thereby enabling spatial mapping of processing (eg comminution or separation) performance across a deposit. In order to do this, estimates of quantitative geometallurgical attributes are needed so that continuous downhole profiles can be generated for each attribute, providing vital data for the development of processing domains through geostatistical modelling. However, as traditional comminution tests are high cost and/or require large samples, current practice typically results in insufficient data density and distribution of comminution indices making it difficult to model and map deposit scale variability. The aim of this work was to find a method to estimate comminution indices based on data that is widely available at mine sites. This data includes mineralogy and chemistry of drill core samples, plus logging information such as lithology and alteration. Work to date indicates that comminution parameters such as semi-autogenous grinding (SAG) Power Index (SPI), Bond Work Index (BWI) and A*b (Julius Kruttschnitt Mineral Research Centre (JKMRC) drop weight test (DWT) Index) can be modelled using chemical and/or mineralogical data. The estimated hardness indices can then be propagated into the mine site database and used in the definition of processing domains that map inherent variability across a deposit. The estimates can thus provide geometallurgical inputs for spatial modelling, mine planning and optimisation initiatives.CITATION:Hunt, J, Kojovic, T and Berry, R, 2013. Estimating comminution indices from ore mineralogy, chemistry and drill core logging, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 173-176 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

Whether you are an employee, contractor or consultant working in the mineral industry, there are pressures to deliver the best possible performance. Technical professionals are usually driven by an internal desire to perform to a high standard because of personal pride in their profession, but there are an increasing number of external requirements to demonstrate that the actions taken were based upon reasonable grounds and that the work conformed to current best practice. People expect these best practice procedures to be followed and governments are now requiring those tendering for contracts to be registered in some way and to be participants in quality assurance schemes. One is not immune to these pressures just because you are working in a less legislatively sophisticated developing country in the circum-Pacific rim (Pacrim) region.

Jan 1, 1995

By T Isaksson, J Anderson

The procurement process for underground construction contracts, in particular those contacts involving tunnel boring machines (TBMs), is subject to many complex and inter-related variables, including national and local politics, public policy, community involvement and media attention û as well as strict environmental and legal requirements. Other restrictions include the time available to adequately investigate geotechnical conditions and viable technical options to determine the best construction methodologies û including selection of tunnel boring machine characteristics and, those construction means and methods suitable for the specific geotechnical and environmental conditions. The latter are, most often, quite imperfectly understood. æGetting it rightÆ implies that an optimal configuration û of machine type, characteristics and associated methodologies û can be found and successfully implemented for a particular project. æFrom the beginningÆ implies that the lack of time issue can be successfully resolved. Within an international context this paper highlights a number of issues of concern which relate to tunnel procurement systems and the ways in which certain key processes are managed during planning, design and construction. The authors argue that there is considerable room for improvement in the way tunnelling projects are undertaken and an approach is discussed which has the potential for substantial gains in cost and schedule and reduction of risk. Savings, however, may only be fully realised if the new methods can be fully implemented by all parties involved. This, we believe, will require the rejection of ætraditionalÆ forms of management and procurement with associated changes in the roles and responsibilities of owner, engineer and contractor. Additionally, risk identification, assessment and mitigation are essential cost and schedule control process which have, to this point, been underutilised by the underground construction industry.

Jan 1, 1999

By A J. Gunson

The Norman B Keevil Institute of Mining Engineering, or the Department of Mining Engineering (the Department), at CanadaÆs University of British Columbia (UBC) is addressing the integration of sustainable development concepts into mining education and research on behalf of industry and society. Over the past decade, the DepartmentÆs education and research model has been evolving to incorporate collaborative and multidisciplinary strategies, where sustainability initiatives are taught in classes, supported in research and discussed in a voluntary collective of mostly graduate students û the Sustainability Working Group (SWG). The SWG has brought together a diverse array of disciplines from academia, industry, government, non-governmental organisations (NGOs) and mining communities. The operational mechanisms and structure of the SWG have enabled momentum to be gained through several multidisciplinary educational and research networking initiatives. It acts to attract new students with diverse backgrounds, foster innovative research, develop relationships and networks, and create the space to discuss progressive ideas and projects. The original cohort of SWG graduate students laid the foundation for sustainable research initiatives within the Department at UBC. Novel research has incorporated topics such as: community resilience, artisanal small-scale mining, sustainability indicators and corporate social responsibility, environmental assessment and impact benefit agreements and the recycling of waste. Propelled by the support of the Department and inspired by the works completed, a host of new graduate students have embarked on their research quests to integrate sustainability principles into their projects. Such projects include: social impacts and benefits of mining, artisanal small-scale mining, community health, the production and transport of mine pollutants, mine waste management, mineral process plant design and the evolution of community education and mine policy. This paper reports on the departmentÆs continuing research and development towards an understanding and evaluations of the ongoing contributions of mining to sustainable development.

Jan 1, 2009

North Eastern Russia encompasses the northern part of the Circum Pacific. The region comprises various tectonostratigraphic terranes, including cratonic blocks, fragments of volcanic arcs, accretionary wedge terranes, oceanic crust and passive continental margins. The terranes have been accreted to the eastern margin of the Siberian Craton in the Late Mesozoic. The prominent structures of the region are extended zones of the Mesozoic flysch and turbidites. Another important structure is the 3000 km long Okhotsk-Chukotka volcanic arc which marks the Cretaceous active continental margin of northern Eurasia. The youngest structure of the region is the 2000 km long Late Cainozoic Kamchatka-Kuril island arc system. North Eastern Russia is the main gold producing region of the Russian Federation. Since the beginning of recorded gold production in 1932 until 1995 the region has produced 2575 t (83M oz) of gold. Most of it, 2439.5 t, has been produced from placers. Owing to depletion of alluvial gold resources, exploration and mining emphasis is currently switching to the development of the lode deposits. At least five distinct types of the gold mineralisation are reported in North Eastern Russia - mesothermal gold mineralisation in the Mesozoic fold belts, Paleozoic epithermal gold mineralisation occurring within Omolon block, epithermal gold mineralisation related to the Mesozoic volcanics, Cainozoic epithermal gold mineralisation, gold-bearing Cu-porphyry deposits. The current paper introduces the metallogeny of lode-gold deposits of North Eastern Russia. It provides the review of the regional geology, the selected gold provinces and representative deposits with an emphasis on the mineralisation styles and distribution control.

Jan 1, 1999

By B N. Noller, J C. Ng, S L. Bruce

Mining activities can result in the transfer of harmful elements, including arsenic and lead, into the environment. In Australia, one of the potential future uses of rehabilitated mine land is to stock grazing animals. Elemental uptake is dependent on bioavailable fraction for adsorption upon exposure. Bioavailability data are generally lacking in order to provide realistic health risk assessments relating to harmful elements from mine tailings in Australian conditions. Another key component of risk assessment is the ability to estimate a realistic exposure, or dose rate, of the tailings to the grazing cattle over a set period of time. Hence, we aimed to conduct grazing trials directly on rehabilitated tailings facilities in order to provide valuable in situ information on heavy metal dose rates and associated accumulation. For the laboratory-based evaluation of comparative bioavailability, groups of cattle were fed five days a week on a normal diet spiked with mine tailings or soluble pure salts of target elements (eg sodium arsenate, sodium arsenite and lead acetate) for about eight months. For the field validation, cattle were allowed to graze directly on rehabilitated tailings facilities over a similar length of time. Blood and a biopsy of the muscle and liver were periodically collected to monitor arsenic accumulation. At necropsy, blood, muscle, liver, kidney and other saleable tissues were measured for arsenic concentrations. Although this study was focused on arsenic, lead and other metals were also measured. Predictive models for arsenic and other metals have been established to calculate the maximum grazing duration without the risk of exceeding specific food safety guidelines. The outcome of this study is a predictive model for maximum beneficial use of certain rehabilitated tailings for cattle grazing where grazing activities do not impact on the integrity of the tailings dams.CITATION:Ng, J C, Noller, B N and Bruce, S L, 2014. A predictive model for beneficial use of rehabilitated mine tailings for grazing cattle after mine closure, in Proceedings Life-of-Mine 2014 , pp 563–572 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

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

The knowledge in the field has been reviewed by literature studies, and using experience from personal research in sublevel caving. There is a lot of material regarding gravity flow of fine grained materials in bins, but the theory of flow for these materials are normally not applicable for coarse blasted rock. This study was therefore concentrated towards coarse rock fragments created after blasting in orebodies. The goal for this study was to make a report of known knowledge, and identify what we have to learn more about. The Bergmark-Roos theory, which was a paradigm shift in the science of gravity flow, is today the best mathematical theory for calculation of the drawbody for a homogenous material or when we wish to simulate the mean drawbody for a large number of draws. The Bergmark-Roos theory must however be improved, so it can take into account the flow pipe effect. When this is done it will be possible to construct a 3D computer model for calculation of ore extraction versus amount of loaded ore and waste. It is also necessary to find the 3D shape of the flow cone to be able to calculate the 3D ore rest that normally develops on footwalls. Calculations should be done for the draw on several sublevels including determination of the ore losses and temporary ore rests. First when this computer model is developed optimisation of ore recovery and waste rock dilution can start for a given orebody. The author points out the importance for international co-operation and standardisation of methods for determination of material properties. More field tests and model blasting tests should also be done. When enough knowledge is gathered, a handbook of the optimisation of sublevel and block caving should be written.

Jan 1, 2000