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This paper explains why the valuation of mining assets is often a very different exercise from the valuation of the shares in the mining company which owns those assets. The fundamental reason for this is that mining assets, and the shares of the company which owns those assets have different risks. In order to properly value mining securities it is essential to: ò ensure all the different risks and other factors which impact on the value of the mining assets and the value of the shares are taken into account; and determine the extent to which the different risks and other factors are addressed in the value of the mining assets and the value of the shares so as to avoid double counting or not counting at all. If the alternative, but far from consensus, view is accepted that the correct valuation methodology to apply to shares in mining companies should be based on option pricing theory then conventional valuation practice of both mining assets and shares in mining companies will need to be fundamentally reassessed.

Jan 1, 1994

The nickel refinery at Yabulu consumes an average of 118,000 kg/h of low pressure steam in stripping operations to-recover ammonia and carbon dioxide from product liquor and ore tailings streams. The steam used in the stripping operations is produced from the 25 MW power generation plant at the refinery. The back pressure on the non condensing steam turbines is maintained at 60 kPa.Studies have been carried out to determine the optimum amount of steam required to be generated for stripping operations. When steam production is increased, the product liquor flow from thewashing thickeners can be increased. This results in improved washing efficiency of the thickeners and therefore improves the plant nickel recovery. A computer thickener wash model was used to predict nickel recoveries at varying steam consumption rates.The studies have shown that in most plant situations, it is not economical to-generate more steam than that already available from existing power production.The studies also highlighted the necessity to use all steam generated from power production at all times to maintain maximum nickel recovery.

Jan 1, 1985

By Borgelt B. V, Perry A. J, Wellington H. K

There has been little change in the lead smelting practice at Mount Isa since 1939 when the metallurgy and general practice were outline by Raney and Blott.The purpose of this paper is to descriqe some of the operational details that have influenced the overall production. The slag fall hns been increased by the lowering of the lead content of the concentrate. Further, as it is the practice to include iron on the furnace charge and carry a higher lime content in the slag, both factors have produced notable results in furnace operations.All blast furnace gases are filtered in a baghouse and this unit is. being further extended to take all smelter gases, thus eliminating the existing Cottrell plant handling Dwight-Lloyd gases.The lead smelter was closed down from April 1943, to May 1946, during which time blister copper was produced.The report is subdivided as follows:-1. Filtering and Mixinga. Effect of calcium sulphate on cloth.b. Dwight-Lloyd charge composition.c. Main mixer.d. Return sintel sizing.2. Blast Furnace Operationsa. Introduction.b. Use of orehearth.

Jan 1, 1953

During 1979 the writer had the privilege of interviewing about 50 people with varying degrees of involvement in the industrial arena and all of them in one way and another, had a part to play in the huge and intricate saga of Australian employee relations. They fell into the following' categories Industrial Relations Officers/Managers Academics Politicians Union Officials Representatives of Employer Associations Senior Industrialists Commission Members (State and Federal) Sundry (Journalists, Government Officials). This paper seeks to give an account of their views on various aspects of industrial relations. The interviews conducted were all on a personal and confidential basis so it can be expected that sources will not be identified. Suffice it to say that this account represents, albeit in "potted" form, the opinions of some of the most experienced individuals in the country. It will be seen that in most of the vital areas there is a remarkable lack of consensus. It should be noted that this lack of consensus existed within each of the groups mentioned.

Jan 1, 1980

Blasting effectiveness must be gauged by total production costs. ANFO charges made up in polythene "sausages" are not as profitable as is indicated by the price of ANFO. All-slurry charges are warranted only where blastholes cannot be dewatered effectively, or where drilling costs are very high. An increase in blasthole diameter leads to coarser fragmentation. This effect is most pronounced in tough and massive or blocky strata, or in ground which consists of unfissured boulders in a softer matrix. When ANFO and some slurry-type charges of small diameter are used in plastic-acting ground, charges may fail to detonate through precompression by charges fired on an earlier delay. The optimum blasthole length is rarely less than four times the burden distance. For best results, blastholes should be inclined to the vertical and parallel to the face. Nominal burdens and spacings are often altered radically by the initiation sequence. For best fragmentation, all blastholes must have good effective faces, and should be effectively stagg- ered with an actual spacing:burden ratio in the approximate range 2.0-5.0.

Jan 1, 1975

In underground ore mining of copper ore, lead-zinc ore, tin ore and fluorspare in German Democratic Republic geological situation is characterized by ore deposits of small thickness and great variability of ore grades and mining conditions. For long range mining strategy and short-term planning of production a model was developed fitting to make optimal economic mining decisions. Starting point of the model is a cost function representing all direct costs per unit recoverable metal in concentrate for each stoping unit (ore reserve block). In the costs function the results of regression analysis of ore grade and metal recovery in concentration plant were considered. All stoping units (ore reserve blocks) of a mine were arranged to growing direct costs. The relationships of recoverable metal, ore tonnages and corresponding costs were plotted in a diagram. The data processed by- computer and the graphic representation of the results make possible 1. economic evaluation of stopes and ore reserve blocks, 2. estimation of cut off grade, 3. optimization of works planning.

Jan 1, 1977

Bauxite Resources Limited is grade drilling in its Western Australian Darling Range tenements to firm up resource definition and to develop mine plans. The Darling Range bauxite is generally in shallow deposits with minimum overburden. In the northern tenements, the ore is characterised by a higher silica layer which may extend from 0.5 to 1.5 m below, which high grade bauxite is found to a depth of four to 7 m. When grade drilling samples are taken, every 0.5 m and the recovered sample is weighed, logged and bagged. To eliminate splitting errors, the whole sample over the short interval is pulverised. Twinning holes variations are observed when using various drill rigs. Diamond core has been shown to give close to 100 per cent recovery and grades have been verified by digging bulk samples. As such, diamond core is used as the reference. It is intended to include sonic drilling as an alternative to diamond cores. This presentation details and attempts to explain the reasons for the observed variations in the various drilling methods used by Bauxite Resources Limited. This is an ABSTRACT ONLY no paper was prepared for this presentation.

Mar 1, 2010

By H Simpson, C Gimber

The financial evaluation of mining projects drives a whole range of decision-making regarding project viability, project design, operating models and closure philosophy. Net Present Value is a financial assessment approach that is pervasive across the industry and has been widely criticised for driving short-term thinking and leading to poor long-term outcomes and future unfunded closure liabilities. But are there alternative models and what are the impediments to their implementation? This paper aims to outline current and past mine closure practices in the mining industry and questions these outcomes given the changing shareholder investment requirement for alignment with sustainable Environmental, Social and Governance (ESG) goals. Examples are presented of closure programs planned and executed in the later stage of the life-of-mine and explores the benefits that could have been realised by integrating these into concurrent production operations. Examples of simultaneous mine development and closure execution and their benefits are presented, and their relevance to corporate investor branding. This paper also discusses the concept of investor project ownership through to sustainable closure and outlines alternative approaches to responsible, sustainable mine closure. We explore the current mining industry divestment practices to remove closure liability from the balance sheet. These underlying financial practices and Net Present Value approach to Mine Closure and alternative approaches are discussed.

Aug 2, 2023

Information obtained from a reconciliation system provides fundamental indicators to an operations performance and is often neglected as a key performance indicator when developing a business plan or mining schedule. The cycle of exploration, ore definition, mining and processing within a company is constantly scrutinised both internally and externally as to the safety, environmental and financial performance of these activities with the operators judged on their performance on a periodic basis. However, it is not unusual for the reconciliation process to be given scant attention until a serious issue (usually a shortfall) occurs, at which point short-term solutions may be implemented which only serve to compound the original problem. A robust reconciliation system takes time to develop and implement initially and must continue to evolve with time. The best systems are those where all the stakeholders in the ultimate outcome are involved in the design and accept responsibility for the validity of their component inputs. Output from the reconciliation process can be utilised to fine-tune all aspects of an operation once the underlying issues leading to a particular result are understood.

Jan 1, 2002

I wish that in addition to being a Pro- fessional Engineer I was also a communications expert. My principal task this morning, and yours after this meeting, is to convince a wide variety of individuals that steel industry slags are a high quality material that can be used for many purposes; and that their use can significantly alleviate some of the problems facing engineers, public officials, and the general public in our countries. By actual in- place performance over a long period of time steel industry blast furnace slags have proven that they are as good as the best natural aggregates, and better than some, for any type of construction or purpose for which natural aggregates are used. Steel furnace slags have many unique favorable characteristics and prop- erties when compared to other types of aggre- gate even though they cannot be used for all types of construction. We have the facts, all we have to do is present them to the right people in the proper manner.

Jan 1, 1979

The most critical step in the development of any mining project is the completion of a feasibility study. The feasibility study has one primary goal; to demonstrate that the project is economically viable if it is designed, constructed and operated in accordance with the concepts set forth in the study. Starting from a mineral resource data base, the feasibility study will define the ore reserves, the mining methods, the mineral processing concepts and the scale of the project. The disciplined activity of developing a feasibility study leads the proponent to examine every aspect of the project, many of which might otherwise be ignored. All technical concepts will be established and the corporate philosophy with respect to organisational structure, social and environmental responsibility, infrastructure contributions and financing will be determined. All the major decisions about how the project will be developed are made during the feasibility study. The success of the project will then depend upon the assumptions and decisions in the feasibility study and the ability and empowerment of the development team.

Jan 1, 1997

The mill area of PT Freeport Indonesia is located in a valley surrounded by steep natural slope, characterised by extreme topography with mountains rising to above 4500 m within 100 km from the seashore. The valleys are deeply embedded into the mountainous terrain and bordered by steep natural slopes. Vertical or overhanging lime walls are interrupted by steep vegetated screen sections containing accumulated loose material from weathering processes and ancient rock falls and/or debris flows/avalanches. The climate can be best described as alpine subtropical with an accumulated rainfall of more than 5000 mm per year. Occasional snowfalls and superficial freezing above 4000 m elevation leads to heavy weathering of the superficial rock layers and along open joints and fractures. The mill area is a crucial and strategic infrastructure for the entire mining operation which is best characterised as a high density industrial area with facilities including water tanks, power generators, crusher, and concentrating facilities including office buildings and workshops as well as access tracks to the underground mining blocks. Considering the local topography, the restricted space conditions and the number of technical installations, the facilities are likely to be affected and highly vulnerable to rock fall from the surrounding slopes. In order to minimise the rock fall hazard three rock fence barriers area were constructed at the mill area. The 7.5 rock fence barriers were designed with the maximum capacity of 5000 kJ. These are the largest capacity of rock fall barriers ever constructed in Indonesia. The total length of the barriers for the three locations was 126 m. The biggest challenge of this project was the construction of the barrier at West Gulley, which was constructed at 300 m above ground level. For this site, construction access was undertaken using helicopter. This presentation discusses the design of the mitigation structures as well as the construction approach and stages of the barriers. Please note: This paper is abstract only.

Nov 25, 2010

Mining of copper ore is still the most important business in Chile. In order to mine ore with a copper content of less than one percent at Minera Los Pelambres in an economical way, opencast mining is mandatory. Due to the prevalence of avalanches at the mine, the concentrator was located in a stable area, some distance from the mine. As a consequence, the material has to be transported between mine and concentrator by conveyor. A downhill conveyor system has been implemented for more than ten years as the most suitable and most economical ore transport alternative. Due to the length (12.6 km) and inclination (1300 m drop) of the conveyor system, the stresses in the steel cord belt are the dominant design criterion, resulting in a belt quality of ST 7800. Additional dynamic belt stresses during transient operating conditions are avoided by the installation of high capacity adjustable frequency drives. The rating of a single drive unit is 2500 kW. During ten years of operation, several capacity increases have been implemented, from an initial 5800 t/h up to the current capacity of 9900 t/h. This presentation describes the engineering challenges of the implementation of the world's strongest belt conveyor system. Capacity increase measures like the development of new control and breaking strategy, proved by dynamic simulation of belt forces and belt speed scenarios are explained. During this long-term partnership of RWE Power International, the former Rheinbraun Engineering, with Minera Los Pelambres, RWE has been engaged continuously for development work, safety checks, expert opinions and maintenance audits, and giving new impulse to conveyor technology.

May 1, 2010

By W Zhu, J H. Zhao, H Ma

The permeability coefficient is an essential parameter for the study of seepage flow in fractured rock mass. This paper discusses the feasibility and application value of using readily available RQD (rock quality index) data to estimate mine water inflow and grouting quantity. Firstly, the influence of different fracture frequencies on permeability in a unit area was explored by combining numerical simulation and experiment, and the relationship between fracture frequencies and pressure and flow velocity at the monitoring point in fractured rock mass was obtained. Then, the stochastic function generation program was used to establish the flow analysis model in fractured rock mass to explore the relationship between flow velocity, pressure and analyse the universal law between fracture frequency and permeability. The concepts of fracture width and connectivity are introduced to modify the permeability calculation formula and grouting formula. Finally, based on the on-site grouting water control case study, the rock mass quality index is used to estimate the mine water inflow and the grouting quantity. The results show that it is feasible to estimate the fracture frequency and then calculate the permeability coefficient by RQD. The relationship between fracture frequency and RQD and the relationship between structure surface frequency and permeability follow an exponential function. The calculation results are in good agreement with the field monitoring results, which verifies the rationality of the calculation method. The relationship between the rock mass RQD index and the rock mass permeability established in this paper can be used to invert the mechanical parameters of the rock mass or to evaluate the permeability and safety of the rock mass, which is of great significance to the prediction of mine water inflow and the safety evaluation of water inrush disaster management.

Nov 29, 2022

By M Hedley

Tracking plant and personnel in underground environments provides multiple potential benefits for a mine including increasing safety, better monitoring of production, traffic control, and in the future monitoring and control of autonomous vehicles. The main techniques for wireless tracking are to use radio frequency identification (RFID), signal strength based techniques, and time of arrival (TOA) based techniques. RFID does not provide continuous tracking and signal strength techniques have poor accuracy in the complex radio propagation environment present in mines. TOA based techniques are potentially the most accurate, but most current equipment does not realise the potential of the technique. CSIRO has been developing the wireless ad-hoc system for positioning (WASP) system for wireless tracking in a range of challenging environments including underground mines. WASP has been licensed for sporting applications and has delivered encouraging results in early trials for a surface and an underground mining application. The system utilises a number of ‘anchor nodes’ that are placed at surveyed fixed locations within the mine, and tags attached to plant or personnel to be tracked. The system provides an ad hoc data communication network, thus wired data connections are not required to the anchor nodes. WASP uses transmissions in the 5.8 GHz ISM (instrumentation, scientific and medical) frequency spectrum to perform highly accurate ranging between nodes, hence tracking of tags. The localisation performance of the system depends upon the radio propagation environment, ranging from 0.1 m in low multipath conditions. In this paper we describe the WASP system and provide results of initial testing in an underground mine that shows that the system achieves high ranging accuracy, hence localisation accuracy.

Mar 21, 2011

By J Rola

This paper outlines a laboratory-based design method, founded in critical state soil mechanics, for identification of an appropriate compaction specification to ensure dilative conditions prevail across the design TSF stress range. The method makes use of the critical state line (CSL) and consolidation tests prepared at varying compactive efforts. The CSL and consolidation curves are plotted together in e-log p’ space, with the compaction curves transformed from vertical effective stress to mean effective stress using the coefficient of earth pressure at rest (K0). Consideration is given to the sensitivity of K0 as it is generally not available during the design phase. An example of the design method is illustrated with laboratory data.

Jul 1, 2021

By K Sommerville

BHP Billiton’s Area C iron ore operation has been in production since 2003. During 2010, below water table mining in the Marra Mamba formation commenced and dewatered ore has been successfully processed through the plant.The ability to mine below water table material increases reserves. Pits can be dewatered using a combination of ex-pit and in-pit bores. Critically it is important to allow suffi cient lead time to dewater. For Area C, in-pit bores yield the most water which presents challenges in every day operations when mining around bores. Operationally there are steep learning curves in obtaining equipment, training personnel and setting up infrastructure. Core risks include lifting, refuelling and maintaining gensets. The pipework, extraction and re-establishment work can be very manual.The challenges include blasting, mining, stockpiling, processing, water balance and disposal. Maximising up time on bores whilst minimising impacts to blast practices have evolved. Blast practices now align bores to the edge of patterns. Protecting bores have evolved from stemming bores with rock and re-drilling to using gas bags which require no drills. Based on moisture and material properties, mining of dewatered material can be categorised into three groups:1. normal,2. sheeting, and3. sheeting and top loading.Ore can go straight to the plant ore to drying pads where it takes between one and three months to drain.Stock management of these piles is important to ensure efficiency of the plant. Rules have been established for blending wet material to maintain feed capacity and some modifications to plants have been made. Dewatering of pits poses a challenge for water use. Initially turkey’s nests were established to capture water and use for dust suppression. As water abstraction has increased methods of management include using exhausted pits for storage and evaporators. Managed Aquifer recharge and use in potable water are being considered. An over arching coordination of the capacity and use are required.Important elements in dewatering include:• capacity models,• capital,• long to short planning,• day to day coordination, and • water level monitoring and balances. Success in dewatering requires a cross function team working towards a common goal. *This is an abstract only. No paper was provided for this abstract.*

Jul 11, 2011

By B P. Banerjee, S Raval

In the recent past there have been dramatic advancements in the development of remote sensing platforms (satellite, aircraft and unmanned aerial vehicles – UAVs) as well as sensor systems (multispectral, hyperspectral, thermal, light detection and ranging (LiDAR) and radar). However, selection of the appropriate remote sensing technique for a mining application is complex and requires scrutiny on multiple scales including spatial, temporal and imaging capabilities. This presentation highlights various conventional and emerging remote sensing approaches over a mine’s life.CITATION:Banerjee, B P and Raval, S, 2016. Applications of advanced remote sensing systems during a mine life, in Proceedings Life-of-Mine 2016 Conference , pp 116–120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By T van Niel, M Trefry, B Baker, I Rea, A Hawdon, D McJannet, D Boadle, R Fandrich, A Littleboy

Many open cut mines extend to depths well below the natural water table level with constant dewatering required to maintain operations. When mining activities cease the groundwater starts to fill the void and pit lakes form. The resultant pit lake is directly connected to the surrounding water table and understanding the hydrological and chemical evolution of these lakes is important for minimising environmental impacts. In Western Australia alone there are currently 1800 mine voids and more than 150 mines operating below the water table (Johnson and Wright, 2003). In conjunction with BHP Billiton Iron Ore, CSIRO has been undertaking research to measure and model rates of evaporation from pit lakes in the Pilbara region of Western Australia. Extreme high temperatures and low humidity ensures that this region experiences the highest evaporation rates in Australia.CITATION:McJannet, D, Hawdon, A, Boadle, D, Baker, B, van Neil, T, Littleboy, A, Trefry, M, Rea, I and Fandrich, R, 2016. Measurements and modelling of evaporation from abandoned mine pit lakes, in Proceedings Life-of-Mine 2016 Conference, pp 106–109 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By G J. Zhang

The shape and particle size distribution of caved ore mass in sublevel caving were investigated in this study. The paper first reviews the main factors affecting the shape and characteristic of caved ore mass in sublevel caving and then through the experimental blast testing with cement-sand concrete models, the shape and particle size distribution of caved ore mass were found out. The experimental results indicated that the shape and particle size distribution of caved ore mass was similar to that of the drawn loose body. This finding presented a new perspective for the future study on the ore drawing theory and on the optimisation of structural parameters of sublevel caving. The structural parameters must meet the principle that the shape of the drawn body is in consistency to the shape of caved ore mass.

Jul 11, 2011