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By D Hope, D K. Mukhopadhyay, J D. Harvey

South32 (S32), a globally diversified mining and metals company, is listed on securities exchanges around the world (ASX, JSE, LSE), with its primary listing being on the Australian Securities Exchange (ASX). Chapter 5 of the ASX Listing Rules (Australian Securities Exchange (ASX), 2019b) requires a mining entity to provide a summary of governance arrangements and internal controls with respect to its estimation processes, estimates and reporting of Mineral Resources and Ore Reserves annually. As a global company, it is also important to design and implement all governance processes and internal controls which can be used consistently across the organisation. The three lines model (previously known as the ‘three lines of defense’ model) is employed across South32 to manage risk where the first line (Practitioners) designs, implements and executes processes and controls to manage risk; the second line (Stewardship) identifies material gaps and improvement opportunities in the first line by monitoring conformance with the group requirements, legislative and regulatory obligations. Second line also assists with the development and improvement of core fundamentals based on industry good practise. The third line (Group Assurance) provides independent and objective assurance over the Group’s system of risk management and control. The estimation of resources and reserves for most of the operations within South32 is managed by the Planning function. The estimation process is part of the annual Life of Operation Plan (LoOP). The LoOP identifies and assesses the strategic alternatives for the development of an operation and recommends the preferred pathway based on value and risk. The LoOP starts with opportunity framing and the updated resources as an input and ends with the short-term plan and annual budget (the outputs). Ore Reserves estimates are one of the outputs from the LoOP. All the inputs and outputs follow internal standards and procedures which includes peer review and performance reconciliation. Stewardship (Second line) which is a centralised function has standards in place to ensure compliance to internal controls and external regulatory requirements. This includes assessment of the competence of Competent Persons, technical reviews, independent audits and training in the relevant chapters of the ASX Listing Rules, Guidance Notes and Appendices. Group Assurance (Third line) which reports to the Risk and Audit Committee of the Board of Directors ensures the design and operating effectiveness of the processes, standards and procedures associated with the estimation and reporting of resources and reserves. While the level of scrutiny has a different intent for each line in the three lines model, the overall purpose is to achieve a consistent outcome across the organisation

May 24, 2023

By A De, B Palmer, rade, P Stowasser, A Fanning

Mining and tunnelling share many commonalities (eg confined working environments, excavation equipment and processes), but of significance is an overarching commitment to provide safe work conditions and environments. This includes reducing exposure to hazardous airborne contaminants such as dust and fumes, in particular Respirable Crystalline Silica (RCS) and Diesel Particulate Matter (DPM), with methods that are environmentally sustainable. In mining, wet methods are common to suppress airborne contaminants, however these methods are reliant on water availability, can be less effective for respirable dust, can have implications for environmental water contamination and can increase maintenance on mining equipment. In contrast, the use of dust scrubbers that provide filtration of airborne contaminants are well established in the tunnelling industry and frequently used to provide spot extraction (dust control at the source) and act often as a complement to the main ventilation system. This paper sought to learn more about the advancements in tunnelling that could be readily applied to mining to improve health outcomes. The paper includes a review of literature and legislation related to health and sustainability and interviews with three respected, and experienced managers from the global tunnel construction industry. It is from these interviews that the focus of the paper turns to Sydney’s WestConnex underground tunnel network and the success of stage 3A M4-M5 construction link. The findings position dust scrubbers as integral to the overall project success as they enabled a Tunnel Production Line (TPL), where multiple stages of construction could take place simultaneously by controlling high volumes of dust at the source. The findings also suggest efficiencies of using mobile scrubbers, both track mounted and hydraulic stepping systems, to accompany road headers and other equipment throughout the excavation process. The findings have transferable applications to underground mining processes in which workers are exposed to high volumes of dust (eg drill and blast) or situations in which dust control at the source, mobility and flexibility offer value (eg room and pillar mining).

Apr 16, 2024

By H W. Wu, T Harvey

An overview is given of two new developments in mine atmospheric monitoring. A new personal dust monitor (PDM) that gives real-time respirable dust readings is discussed. The unit is mounted within the minerÆs cap lamp battery and internally measures the true particle mass of dust collected on its filter. Samples are available for later mineralogical analysis and results do not exhibit the same sensitivity to water spray as optically-based measurement approaches. The technique achieves microgram-level mass resolution even in the hostile mine environment and reports dust loading data on a continuous basis. The monitor has been evaluated under an Australian Coal Association Research Program (ACARP) grant and is being adopted for statutory mine respirable dust determinations in the United States (US). The monitor has particular application for determining location of high dust sources. It can evaluate the efficiency of engineering means of suppression and other approaches to reducing dust levels. It has been recognised that the PDMÆs unique measurement approach has application to allow real-time atmospheric diesel particulate matter (DPM) monitoring. The industry has no real-time atmospheric DPM monitor at present. Recent surveys in New South Wales and Queensland show significant numbers of miners continue to face full shift DPM exposures in excess of internationally accepted levels. Real-time DPM monitoring will allow the industry to pinpoint high exposure zones where a number of trucks and other vehicles work in areas of poor ventilation. Knowledge of high DPM concentration zones allows efficient modification of work practices to reduce underground minersÆ exposure. Approaches to uses of the DPM form of the monitor and the design of tag boards are discussed. Some outcomes from mine tests with both these new instruments are given.

Jan 1, 2008

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

The paper presents the development of an integrated computer aided design and planning of open cast mining, with the use of object-oriented modelling and geoinformation technologies, on the example of interaction of the subsystems on planning optimisation and freight traffics.

Dec 6, 2010

By S Arai

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Podiform chromitites are commonly found in the Moho transition zone to the mantle section of ophiolites, but have been very rarely found from the current ocean floor, even though some ophiolites are considered as a slice of oceanic lithosphere. One of the factors controlling podiform chromitite formation is the chemistry of host mantle peridotite; an intermediately refractory harzburgite is the optimum host for chromitites. This harzburgite represents the most common lithology of the oceanic lithosphere, where the peridotite-melt reaction, which is another condition, is possibly common there. The oceanic lithosphere mantle is thus a good host for podiform chromitites. The apparent rarity of documented oceanic chromitites is solely due to under-sampling of mantle materials from the fast-spreading ridge and the segment centre of slow-spreading ridges. Some ophiolitic chromitites formed not from genuine mid-ocean-ridge basalt (MORB) but from wet MORB due to the situation of typical ophiolites, which formed not at ordinary mid-ocean ridges but at supra-subduction zone spreading centres.CITATION:Arai, S, 2015. Podiform chromitites do form beneath mid-ocean ridges , in Proceedings PACRIM 2015 Congress, pp 465–468 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

During a mineral exploration program in an environmentally sensitive area nearMount Painter in South Australia, a helicopter was used to position, construct and service drilling rigs in order to avoid the need to create new access tracks. The drilling program was designed to optimise the advantages of natural landforms in order to minimise the environmental impact of site construction and drilling activities. This minimisation of land disturbance reduced the required amount of rehabilitation measures to the extent where all impacts of the helicopter-supported programme had disappeared within 12 months of completion of work.

Jan 1, 1995

The Australian mining industry faces skills shortages across a broad spectrum of disciplines and levels, as it enters another major growth phase. Critical amongst the areas of most significant shortage in the professional sphere is the discipline of geotechnical professionals. More mines, deeper mines, ageing workforces are all contributing to this chronic shortage. But the shortage is not just at the operating sites, it is across a range of employment fields including sites, head offices, consultants, researchers and educators. This paper reviews the status of a number of these fields and explores some of the issues being faced. The different roles of a site geotechnical professional and a specialist geotechnical consultant are explored, together with some of the trends in terms of how such people are operating, and the skills they are expected to have to fulfill their job requirements. The paper also considers the move towards possible mandatory statutory geotechnical positions at mine sites and some of the implications if this were to come into force. Finally, the paper considers the current provider programs for mining geotechnical education, and how additional offerings are going to be needed in order to address the current shortages and the inconsistencies in terms of job expectations for people assigned to geotechnical roles without adequate education and training.

Nov 25, 2010

By P Holtham, K Duffy, W Valery, A Jankovic

In the face of increasing energy costs, limited water resources, more stringent legislation, and lower feed grades, the mining industry is searching for more sustainable technologies and practices. Metso Process Technology and Innovation (PTI) is undertaking a research project, ‘improving the resource and eco-efficiency of mining operations’, to help the industry meet these challenges. The project is investigating alternatives in mining and processing that reduce energy and water consumption, minimise emissions and waste, and maximise the value recovered from the deposit. The targets are to reduce energy usage by more than 30 per cent and greenhouse gas emissions by more than 50 per cent compared to current practice.Key areas of interest were identified across mining and processing operations. These were grouped into the following interrelated work areas for investigation: high intensity selective blasting, in-pit crushing and conveying, preconcentration, energy efficient comminution circuits and technologies, coarse particle flotation, and water recovery optimisation. Investigations have included reviews of industrial data, modelling, simulation, and laboratory and pilot scale trials. In some areas industrial scale trials will commence shortly. This paper discusses the investigations and key findings from the project so far; highlighting the possibilities for reducing energy consumption, water usage and carbon emissions. A particular mining process may incorporate any combination of the alternatives identified and requires tailored solutions based on a detailed understanding of the ore deposit, the process and local conditions. The focus is on improving resource efficiency; creating more value with less impact and consequently a better economic return from the available resource. Technologies exist today that can transform mining into a more efficient industry for tomorrow.CITATION:Duffy, K, Valery, W, Jankovic, A and Holtham, P, 2015. Resource efficient mining processes of tomorrow, in Proceedings Third International Future Mining Conference, pp 227–238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

During the middle of this century, exploration and mining reached a low ebb in New Zealand. Tas McKee did his utmost to rejuvenate the mining industry, using the latest technology and an understanding of the environment far ahead of his time. Today, advances in the geosciences enable sophisticated exploration to proceed to the drilling stage before any significant environmental disturbance is created. Thereafter developments are now carried out with integrated management of the environment and rehabilitation so that disturbed land can be used for other purposes once mining is finished. Thus, we now have environmental engineers and scientists taking their place as professionals in our Institute.

Jan 1, 1987

By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By E Westthorp, J Phillips

The detection of ethylene in mined-out ‘goaf’ areas of underground coalmines is an industry standard indicator of accelerated oxidation where the coal temperature has exceeded 100°C. If uncontrolled, this naturally occurring process can lead to spontaneous combustion and catastrophic mine explosions, such as the Moura No 2 mine explosion. Spontaneous combustion trigger action response plans (TARPs) typically use the detection of ethylene as a trigger for definite change requiring immediate reaction, which can include the withdrawal of coalmine workers.Following the completion of sealing of longwall goaves at Crinum North Mine, ethylene was often detected in trace quantities. These trace quantities were below 1 ppm and detected via the bag sampling regime, with the use of a gas chromatograph. Any ethylene detected in these instances was not associated with increased quantities of carbon monoxide to conclusively indicate a heating within the sealed area.Ethylene was only detected in a newly sealed goaf and would not remain present for a period following the sealing. As part of the longwall recovery process, the predominant roof support mechanism during the recovery was the use of timber cribs. It was decided to investigate the possibility of this timber generating ethylene.Preliminary tests were completed by placing timber specimens from several species of Australian native hardwoods in gas bags in air. Over time, some of the samples showed significant levels of ethylene within the bags.CITATION:Westthorp, E and Phillips, J, 2017. Findings from preliminary testing to determine alternative sources of ethylene within sealed areas of underground coalmines, in Proceedings Australian Mine Vent Conference 2017, pp 203–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By W J. Rankin, D R. Swinbourne

There are large tonnages of low-grade manganese ores in India fromwhich it is uneconomic to produce ferroalloys by conventionalsubmerged arc furnace smelting. A possible way to utilise these ores is to smelt them with carbon to produce pig iron and a manganese-rich slag, then to metallothermically reduce the molten slag to silicomanganese. Thermodynamic modelling of the metallothermic reduction stage using aluminium, silicon or aluminium-silicon alloy as the reductant at 1450¦C showed that an acceptable grade of silicomanganese could be produced. Manganese recoveries were predicted to be about 80 per cent. Heat balances indicated that silicothermic reduction may not produce enough heat to maintain reaction temperature. Small-scale laboratory experiments showed that the manganese grade of the alloys, and the manganese recoveries, were close to those predicted, but those for silicon were muchlower. Aluminothermic reduction produced the highest grade manganesealloy. The slag-metal equilibrium involving manganese, silicon and their oxides was investigated and it was found that equilibrium was not attained in any of the experiments, due probably to the very low rate of reactions involving silicon. This could be used to advantage in practice to achieve higher manganese levels in the alloys.

Jan 1, 1998

Within ten months of the first significant intersection on the Vera deposit, approval was given to proceed with a $28.3 M underground development of the Vera-Nancy gold mine. Contrary to what the timeframe suggests, the development of the underground mine was planned in a logical and methodical manner which enabled confirmation of the resource, evaluation of the orebody for mining and sufficient production to recommence milling operations at the Pajingo treatment plant. This paper describes the underlying factors on which the project was planned and developed. The approach has successfully enabled the mine to be in production 18 months after discovery without compromising any future production or potential expansion

Jan 1, 1998

By J Lea, P Hatherly, J L. Edwards

Coal exploration has traditionally involved the acquisition of data to enable a resource to be quantified and qualified to the extent that its economic potential can be determined. This process commonly relied on: drilling to determine the depth and thickness of coal seams, broad characterisation of the overburden and interburden, and to provide cores for coal quality analyses; basic wireline logging to cross-check the depth and thickness of coal seams and provide some indication of rock mass strength; and basic surface geophysics and remote sensing to identify major geological structures. In recent years, the adoption of the JORC Code as a basis for the reporting of resources and reserves has placed a greater emphasis on the need for detailed, reproducible data sets that not only satisfy the traditional requirements of mine planners, but also satisfy the governance requirements of corporate and financial institutions. Similarly, the development of sophisticated numerical modelling techniques for use in both open cut and underground mine design, has seen a greater demand for precise geotechnical data, in situ stress characterisation and hydrological information as routine input to the design process. These requirements, coupled with the prevailing trend toward high capital, relatively inflexible mining techniques less tolerant of geological surprises, and the need for consideration of environmental issues such as groundwater impacts and surface subsidence, requires that modern exploration programs be multifaceted, and designed to commence capturing data relevant to ædownstream issuesÆ even during the initial phases of exploration planning.

Jan 1, 2009

Maghemite - A Source of Heavy Medium for Coal Washeries Use of magnetite as heavy medium in coal preparation plants has been increasing steadily in recent years. It might be in short supply in some areas or excessively costly in certain times. In Turkey, the cost of heavy medium magnetite has almost tripled since 2003. As a result, alternative sources of heavy medium material have been evaluated. A maghemite ore from Elbistan-Kahramanmaras was found to be an interesting source. Tests showed that the maghemite ore can be enriched via magnetic separation at 1556 gauss to obtain a heavy medium material with 4.93 g/cm3 density and 97.22 per cent magnetic recovery. Further tests were conducted to determine the optimum field strength for magnetic separation, friability and regeneration recovery.

Sep 13, 2010

By M Dalm

More and more mining companies are becoming aware of the potential benefits of sensor-based ore sorting and process optimisation. This is reflected by a growing number of analysers that are available for drill hole logging, conveyor belt scanning, ore sorting, slurry analysis, etc. These tools all rely on a specific sensor technology that can be used to detect a material property such as colour, density, mineralogy, or chemical elements. However, all sensors have restrictions on the minerals and/or elements that can be detected or inferred. This is caused by the physical mechanisms behind the technology and depends on mineral concentration and compositional heterogeneity of the ore. Since nearly every ore deposit is unique in composition and characterised by different geological features that drive heterogeneity, no one-size-fits-all sensor solution is available. This makes it difficult for mining professionals to find suitable sensing technologies that can help them solve problems and improve processes for their specific ore types.

Sep 1, 2024

By D Craw, N Newman

Previously published stream quality data and AMD (acid mine drainage) analyses have been collated into a database (DAME û Database for Assessment of Mine Environments) and additional samples including NMD (neutral mine drainage) have been collected from coal mine drainages on the West Coast. Variations in the chemistry of mine drainage samples can be related to four factors: 1.       regional geology (Brunner Coal Measures or Paparoa Coal Measures) 2.       mine type (open cast or underground) 3.       hydrogeology 4.       local geology   In general mines hosted in Paparoa Coal Measures produce NMD whereas mines hosted in Brunner Coal Measures produce AMD with highly variable chemistry. Differences in coal mine drainage chemistry between mines hosted in Brunner and Paparoa Coal Measure sequences can be measured with acid-base accounting geochemistry. Correlation of ANC (acid neutralising capacity) and MPA (maximum potential acidity) analysis of rocks with mine drainage samples is substantially better than correlation of NAG (net acid generation) analysis with mine drainage chemistry.   It is likely that NAG analysis over estimates acid generation potential of some samples due to release of organic acids that are not released under environmental conditions. In general, differences in mine drainage chemistry between Brunner and Paparoa hosted mines are attributed to the effect depositional environment and diagenesis on coal measure composition. Exceptions to generalisations relating mine drainage to Paparoa or Brunner host rocks are likely where local geological conditions cause increased deposition of pyrite in Paparoa rocks and additional analyses are required to confirm interpretations.   Based on the interpretation of these results a mine drainage chemistry hazard model has been constructed. The hazard model predicts likely variations in mine drainage chemistry based on the four factors listed above. The hazard model has implications for mine related water quality risks. For example, ecotoxicity, human health affects and selection of remediation techniques are all sensitive to mine drainage chemistry.

Jan 1, 2006

Bacteria can play a key role in the processing of 'difficult' ores. Bioleaching opens the way to potentially extract copper from vast amounts of otherwise hard to process refractory low-grade chalcopyrite. In my talk I will outline our research philosophy to develop bioleaching as a Precision Processing unit process step. In our view, Precision Processing is a sophisticated approach to mineral processing where the ultimate goal is to measure and characterise the ore body in-ground and in real time during mining, allowing the down-stream unit processes (bioleaching, in this case) to be continuously tailored and tuned via feedback and feed-forward controls to obtain the highest possible recoveries at the lowest possible cost and environmental impact. I will describe some of the work that we are undertaking to better understand the interfacial phenomena underlying the fundamental bioleaching process with the aim of coming to a Precision Processing approach. We use techniques such as interfacial electrochemistry (scanning electrochemical microscopy, SECM), AFM, zeta potential measurement, and synchrotron science to elucidate the parameters that drive bacterial selectivity and adhesion, bacterial metabolism, and dissolution and precipitation processes for model systems and real chalcopyrite ores. As examples of our research, I will discuss in some detail our method to produce and characterise micro-patterned CuxS - silica thin films as model substrates for electrochemical and bacterial adhesion work and our approach to the interfacial chemical characterisation of extracellular polymeric substances of bio-active bacterial cells. I will also cover some of our recent findings relating to measurement and interpretation of bacterial adhesion on sulfidic substrates and its implications for bacterial adhesion and substrate selectivity. After having identified and discussed crucial leaching parameters, such as pH, Eh, T, [Cu2+], and [O2], the talk will go on addressing some of the early achievements and challenges encountered in our work to design and prepare low-cost, rugged sensing devices that allow the in-situ (in this case, in-dump or in-heap) localised measurement of these parameters. I will conclude my talk by painting the picture of how the work of our group might contribute to realising the dream of transforming bioleaching into genuine high-tech Precision Processing of minerals. This is an ABSTRACT ONLY. A full-length paper was not prepared for this presentation.

Sep 13, 2010

By R Garzon

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analystsÆ inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted æfloorÆ value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007