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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

Of late there have been various papers published on this subject by various authorities, in which certain definite factors influencing slime settlement have been brought forward. As the principles set forth by these writers are of great interest, and have, in most cases, been generally accepted, the author will review them in the hope that by discussion some more knowledge may be brought to bear on many points connected with the subject.The definition of slime at the present time is not a standard one, and varies according to different authorities, some defining slime as ore crushed to such a fineness that it will pass through a screen of standard size, say 150 or 200-mesh, in water (1, 2);others as that part of the finely-crushed material which is in the physical condition which causes it to remain in. suspension in water, and possesses pr?perties which render it almost unleachable (3). Authorities seem divided on this point, but of late American writers seem to prefer the former definition. On the contrary, B L Gardiner describes slime as a mixture of small particles of crushed ore of varying sizes which, when mixed with water, tend...

Jan 1, 1912

By R Simcock

Why Rehabilitate? Legislative Requirement Land rehabilitation is a condition of resource consents for mining. Clause 17 (1) of the Resource Management Act 1991 (duty to avoid, remedy, or mitigate adverse effects) provides the legislative basis for local authorities to impose resource consent conditions requiring land to be rehabilitated to approved uses during and after mining.

Jan 1, 1997

By Hindmarsh J. W, McCoy A. E R

Instantaneous outbursts of coal and gas have occurred at various times in several working districts of Metropolitan Colliery, N.S.W.They have occurred in headings only, under both hand and mechanised conditions, and with seam gas ranging from mainly methane to nearly pure carbon dioxide. A modification of inducer shotfiring using a shear cut was introduced in 1955, and in 1961 full face firing both to a machine cut shear and off the solid was introduced. The current series of outbursts -1961 to 1963 - has been induced under these systems with full control of the time of outburst, but without prediction, and with some disappointing production features.Various aspects of current conditions and practices at Metropolitan are considered singular, such as the coarse granulometry of outburst coal, the prevalence of floor heave, the absence of strong structures at outburst sites, the possibility of outburst at any stage in pillar formation up to the last few yards, the effect of rate of advance on outburst occurrence, and the mildness of many outbursts experienced.It is concluded that inducer shotfiring is a reliable control but it suffers by comparison with outburst-free conditions, and that control by preyention would be preferable.INTRODUCTIONThe phenomenon of instantaneous outbursts of coal and gas has been described in detail previously (Hargraves, 1958). Briefly, it is a combined gas and stress hazard of deep coal mining, usually occurring in virgin work and during active face advance, when coal and seam gas burst from the face into the workings.Instantaneous outbursts have occurred sporadically at Metropolitan Colliery, N.S.W., since 1895. Early outbursts were recorded as firedamp and recent outbursts are of blackdamp.Mining methods used have been conventional hand work, with progressive and relatively complete mechanisation over the past 25 years to substantially conventional...

Jan 1, 1964

Treatment of the Siirt-Madenk÷y Ores by Flotation

Sep 13, 2010

By K S. Smith

Mineral-deposit geology, geochemical processes, and biogeochemical processes are fundamental controls on the environmental conditions that exist naturally in mineralised areas prior to mining, and that result from mining and mineral processing. Input from economic geologists and geochemists is therefore crucial to effectively predict, assess, mitigate, and remediate the environmental effects of mineral-resource development. Recent open pit gold mining at Summitville, Colorado , has received intense public scrutiny for a variety of environmental problems, most important of which has been extreme acid drainage. Now a Superfund environmental cleanup site, Summitville exemplifies how economic geology and geochemistry principles: 1. could have been better utilized to first predict and minimise the environmental problems, and 2. can now be used to optimize the environmental cleanup.

Jan 1, 1995

The New South Wales coal industry is a highly mechanised well organised industry which has developed from an annual production of slightly less than 13 million tons in 1950 to over 33 million tons in 1969. Although continuous miners were not introduced into the mines until 1950, by Jillle 1969 the percentage of coal won by these units was 87.3. The paper describes mining conditions in the various coalfields of the State, their complexities and problems and how these have been dealt with. The introduction of fully mechanised long wall faces has presented a challenge which has been accepted and descriptions of systems in use are discussed. Major expansion of the industry is anticipated to meet the requirements of the growing Australian steel industry, for local power generation and to meet the increasing demands of overseas markets.

Jan 1, 1971

The paper considers Aboriginal responses to large-scale mining, including Indigenous attitudes towards land access for exploration and project development. The core question, in which I have been interested for some time (Trigger 1997a; 2000; 2001), is: what are the significant factors affecting responses among Indigenous communities to mining exploration and development project proposals?

Jan 1, 2002

By M Simpson

Greywackes of the greater Auckland Region (Brynderwyn Hills to Hamilton), when considered on a regional scale, have characteristic ranges of physical, mineralogical and other properties. Some properties (eg density, porosity, crushing resistance, clay index) generally cluster and correlate with the basement greywacke facies, regions and terranes recognised by geologists, and their diagenetic/metamorphic level. Other local factors, particularly variations in mineralogical composition, nature of matrix cement, grain size, and degree of weathering may produce aberrant properties. Some of these local variations, when extreme, have the potential to affect the aggregateÆs performance in roading or the concrete industries.   Smectite and the zeolite laumontite are the major deleterious minerals occurring in fresh greywacke rocks of the Auckland region, although weathered rocks may contain halloysite, an expanding member of the kaolin clay mineral group. These minerals, when found in abnormally high levels in greywackes cause expansion effects in the aggregate. Currently there are inconsistencies in the detailed correlation of shrinkage, clay index, clay mineral content and intrinsic expansion data that need further research to resolve them.  

Jan 1, 2007

By Moorrees C, Everson P

A detailed examination of carbonic acid leaching of crude iron-containing magnesia derived from Savage River magnesite shows that the rate and extent of magnesium and iron dissolution are affected by the slake time, leaching temperature, carbon dioxide pressure, pulp density and rate of agitation. In order to produce high-purity magnesia from the leachate by precipitation and calcination, the optimum leaching conditions, which are those that yield maximum magnesium and minimum iron dissolution, have to be a compromise in terms of the above parameters. For example, iron dissolution can be limited by leaching at an elevated temperature (-45°C), but because the maximum concentration of magnesium biearbonate decreases rapidly with an increase in temperature, it is necessary to use a low pulp density (-2 per cent solids) in order to achieve an acceptable degree of magnesium dissolution.Evidence is obtained that iron dissolution involves the formation of a soluble ferric bicarbonate complex that decomposes at elevated temperatures. The extent of iron dissolution is much higher than might be expected and it is probably because the original magnesite contains siderite in solid solution with the magnesite; on calcination, the hematite whieh is formed is in a very finely divided condition and hence more reactive.

Jan 1, 1983

By W T. Yen

Pyrrhotite crystallises as either a hexagonal or monoclinic structure, both of which can occur in ore deposits. In general, pyrrhotite is not considered as a valuable mineral unless it contains considerable amounts of other metals like nickel or copper. In fact it causes numerous problems in flotation including intensive oxygen consumption, which results in poor selectivity among sulphide minerals in the processing of complex sulphide ores. Also, because of its high sulphur content, pyrrhotite is a major contributor to environmentally detrimental sulphur dioxide (SO2) emissions from smelters. Pyrrhotite also interacts galvanically with grinding media via electrolyte species present in the flotation pulp, resulting in media corrosion. The most effective way to reject pyrrhotite is through a separation stage, which may be difficult when both types of pyrrhotite are present in the ore. In this regard depression of pyrrhotite through a flotation stage may be applied. Pyrrhotite depression by either intensive oxidation or by using sodium cyanide has been practiced. Results present in this work show that NaCN can depress pyrrhotite effectively when combined with an alkaline environment and low collector concentrations.

Jan 1, 2002

By D J. Corp

The Halmahera Contract of Work is a sixth generation contract held 82.5 per cent by Newcrest Mining Limited and 17.5 per cent by PT Aneka Tambang and takes in the Gosowong Project area. In 1991 Newcrest Mining Limited established a small exploration office in Jakarta and proceeded to seek exploration opportunities. The Halmahera area was identified as a substantial prospective ground position in a relatively unexplored area. In late-1991 Newcrest Mining Limited and PT Aneka Tambang agreed to explore in Halmahera. Initial field work commenced in July 1992. A vigorous ground reconnaissance programme led to the discovery of the Gosowong deposit a little over 12 months later in September 1993. In April 1997 the Contract of Work was approved covering much of the island of Halmahera. Between September 1997 and November 1998 activities were directed principally towards obtaining the necessary permits required to commence construction activities. Some particularly ambitious targets were set for achieving this outcome. An aggressive construction programme commenced in late-1998. Construction took place during a period of unseasonally high rainfall, which in itself presented additional challenges to the construction team. A key milestone for the project was achieved on 1 July 1999 when wet commissioning of the process plant commenced. Construction of the Gosowong Mine was achieved on time and within budget. A period of some six years elapsed from the initial discovery of the Gosowong deposit to the time of the first gold pour. Much of the permitting, construction and commissioning activity took place between September 1997 and July 1999. This coincided with a period of significant social, economic and political upheaval in Indonesia. During the construction period a high level of importance was placed on the structured recruitment and training of local people, as well as fostering appropriate community and local business development programmes in the communities nearby the project. Emphasis was also placed on environmental management with detailed long-term planning and progressive rehabilitation commencing during the construction phase. The permitting and subsequent development of the Gosowong Project has demonstrated that even during the difficult times, with commitment, it is possible for mining and exploration companies to conduct business in Indonesia.

Jan 1, 1999

A unique sluicing process for recovering tailing impounded in a valley was developed by Electrolytic Zinc Company of Australasia Ltd., West Coast Mines, Rosebery, Tasmania.Earthmoving equipment could not be used as most of the material to be recovered was semi-fluid. A conventional sluking method was also impracticable as there was no suitable working face from which the process could be commenced.Operations started from a flat surface, using special techniques for sinking through the tailing and establishing producing working faces as the sinking process continued.After about 2 years the bottom of the dam was reached and conventional sluicing methods could be used.

Jan 1, 1973

Study on Flotation of the Low-Grade Magnesite Ore

Sep 13, 2010

FROM time to time articles have appeared in the technical press on the interesting subject of surface combustion. The theoretical part of the problem has, for practical purposes, received ample consideration in those articles, but the number of practical applications of surface combustion referred to has generally been very small.It is the writer's object to review some recent developments in surface combustion, and also to try to arrive at an estimate of its advantages and possibilities. It is not necessary for this purpose to dilate upon the phenomenon of surface combustion itself. Many interesting things have been said on the subject by Pro£. W. A. Bone, of Leeds, to whose researches the recent developments are largely due. A few illustrations may make clear what is meant by surface combustion.Prof. Bone, in an experiment, took a platinum crucible, which he heated in the flame of a Meker-burner. Then he turned the gas off for a second, and, opening the stop-cock again, allowed the combustible mixture to impinge upon the crucible, thetemperature of which was still well below the ignition temperature of the gas. Although no flame was visible at this stage, it was soon clear that, nevertheless, the gas and air had continued to combine, as the crucible would attain a red heat after a few seconds.Another instance of surface combustion was shown by a Mr. Fletcher, in 1882. He placed an iron ball, weighing 3 lb., on a slab of fireclay, heated it for a few seconds with a blow-pipe, and blew the flame out, leaving the gas-mixture still...

Jan 1, 1915

A recent Evening Post Headline read 'Officialdoms Inertia Risking Millions in Growth Strategy'. The article beneath that headline outlined the difficulties encountered by the Government's growth strategy projects and included the paragraph 'public efforts by Government to brush up communication of the widespread nature of its growth strategy is believed to have been matched by efforts in private by some ministers to overcome their frustration at the constant delay while reports and paper work are moved between departments and through the system'. The article went on to point out that these delays could cost New Zealand millions of dollars in lost overseas exchange savings. We as responsible citizens should be appalled or at least concerned that such costly delays should or even could occur. But those on the outside of the system who spend much of their working life prodding, reminding, pleading, cajoling, even begging, the bureaucracy should be excused a smirk or a smile or even a good belly laugh. The Minister is usually a part of the bureaucracy passing judgment on someone else's proposals. This time the Government has plans of its own. Plans which it wishes to see implemented as rapidly as possible and even with the assistance of the precautionary National Development Act with its 'fast track' provisions those plans have got bogged down in the bureaucratic machine which this Government has done as much as any other to create. In the circumstances, the thought of Her Majesty's Ministers frustrated at the constant delay while reports and paper work are moved between departments and through the system is not unpleasing.

Jan 1, 1982

By S F. Simmons

The Ohaaki Rhyolite and the Rautiwiri Breccia are two volcanic units occurring in the shallow and deep parts of the Broadlands-Ohaaki geothermal system. Alteration of these units by chloride waters results in distinct mineral assemblages that also have distinct whole rock compositions. The Ohaaki rhyolite is altered to an assemblage dominated by quartz, adularia, illite and pyrite as a consequence of silica, potassium and sulfur metasomatism. Locally, these rocks contain up to 0.5 ppm Au. The Rautiwiri Breccia by contrast is altered to an assemblage dominated by albite, adularia, quartz, illite, chlorite and pyrite in association with modest sodium metasomatism. Whole rock oxygen isotope compositions of altered rocks range between 3.3 and 7.5 ë, and are generally lower compared to their fresh rock equivalents having values of 9.5 to 10.6 ë; the result is broad pattern of lower values with increasing alteration intensity.

Jan 1, 2002

By M Wilson, D Whiteman, P Kuiper, S Talu, G Watt, A van As

Once the draw process has begun in a block cave, it is very difficult to identify which regions of the cave have successfully propagated, where the caved material is flowing from and where it is flowing to. The uncertainty around cave flow increases as the cave is drawn and can be further compounded by poor draw control practices. These uncertainties make it difficult to plan effective draw strategies to control dilution, as flow model predictions tend to gradually diverge from the actual state of the cave. There have been documented occasions where observed caving phenomena, such as muck pile surface rilling, could not be reproduced with the cave flow models of the time. The ultimate consequence of cave flow uncertainty is generally manifest as higher dilution and lower grades.In order to measure the real-time flow of caved material within an active block cave, CRC Mining and Elexon have developed, together with Rio Tinto, a cave flow monitoring system called Cave Tracker, which is being trialled at Argyle Diamond Mine (ADM) in Western Australia. The Cave Tracker system at ADM comprises electronic ‘beacons’ that have been installed down long HQ diameter drill holes located above the extraction level. As the cave-back propagates and the rock mass fragments, beacons are released into the muck pile and flow along with the caved material to the drawpoints below. At Argyle, the beacons are configured to emit a signal every three days. These signals are picked up by detectors installed on the extraction and undercut levels, allowing the positions of the beacons to be determined.By examining the real-time material flow in different regions of the cave, flow mechanisms can be better defined. Draw control strategies can then be actively tailored to manage the current state of the cave. Thus, previously undetectable indications of excessive rilling, rapid cave propagation, cave stall, air gaps and dilution entry can now be identified early and assessed continuously as the cave progresses. For the first time it is possible to amend draw strategies based on measurements from inside and outside of the fractured zones, allowing caves to be managed more effectively.CITATION:Whiteman, D, Talu, S, Wilson, M, Watt, G, Van As, A and Kuiper, P, 2016. Cave Tracker flow monitoring system installation at Argyle Diamond Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 479–488 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

The authors describe two stratiform intrusions within a two miles thick ophiolite belt, one of the many ophiolite (serpentine) belts of the eugeosynclinal sequences of the Kalgoorlie System (metamorphic age c.2700 million years). Unusually good evidence of gravitational differentiation involving cumulates for an Alpine type peridotite-gabbro intrusion has been obtained, in spite of modifications of the original igneous rocks imposed by regional metamorphism. Unmetamorphosed relics of cumulate rocks are a surprising feature of this occurIfence.'fhe differentiation process reflected in the layered sequences is compared to that of the Stillwater Intrusion, Montana. Phase, cryptic and rhythmic layering are recognized. The economic significance of this study lies not only in the possibility of nickel mineralization in this ophiolite belt, but also in that much detailed information on the nature of these belts, which is difficult to obtain in the case of the more altered and sheared rocks of the belts carrying gold and nickel ore deposits nearby, is gathered from the Yilmia occurrences.

Jan 1, 1969

Fine Gravity Separation in the Reflux Classifier, Exploiting a High Shear Rate, Laminar Flow Mechanism The Reflux Classifier is used in the gravity separation of particles over a broad range of particle sizes. The device consists of a fluidised bed zone, with a system of parallel inclined channels above. The inclined channels provide a significant hydraulic advantage over conventional fluidised beds via the so-called Boycott Effect (Boycott, 1920). This paper describes a new advance in fine gravity separation based on the high shear rate and laminar flow profile that arises when closely spaced inclined channels are deployed. As reported recently (Galvin et al, 2009a), a powerful density based separation mechanism develops from this arrangement, suppressing the effects of particle size. In this paper we focus on two areas, firstly the application of the separator in the laboratory for batch fractionation of particles of varying size and density to determine the grade recovery curve and hence the liberation, and secondly the step change in separation performance achieved on a continuous steady state basis when closely spaced inclined channels are used. The variation in the separation density with particle size decreases significantly, and the Ecarte Probable Error (Ep) remains at low levels over a broad size range.

Sep 13, 2010