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By T Salles, G Duclaux, E R. Ramanaidou

In a continental environment, sediment mobilisation, dispersion and deposition are mainly controlled by mass gravity and streamflow processes. Alluvial sedimentary systems have an important economic value because of their capacity to host mineral resources. In the Hamersley Province, alluvial iron deposits (including the well-known detrital iron deposits and channel iron deposits) play an increasing role on the commodity market. Alluvial deposits exploration is challenging and generally involves geomorphologic and stratigraphic field studies, as well as expensive exploratory surface sampling and drilling. We applied a new surface processes modelling technique to investigate iron rich material, ie the erosion product of bedded iron formations -dispersion in the Hamersley Province. LECODE is a 3D-parallel surface processes forward modelling code designed to compute surface flow and solve erosion, transport and sedimentation on the geological time scale. The code offers new quantitative ways to better understand how sedimentary deposits develop in intra-continental and channel environments. Here we show that our integrated forward model is capable of opening a window to the construction of sedimentary architectures, including facies distribution, deposit thickness and development of heterogeneities such as mineral traps over the modelled domain. The model results represent 1 Ma of surface evolution and are validated through comparison to published paleovalleys map and known occurrences of iron ore deposits. This numerical modelling approach allows for the first time to track alluvial materials from source to sink through time, test existing geological models and faithfully reproduce the first order distribution of alluvial iron deposits in an area of interest. This work strongly suggests the presence of iron rich alluvial deposits reserves under cover, in unexplored detrital fans in the Fortescue Valley. This method, potentially coupled with sediment geochemistry and basin analyses studies, has the potential to maximise alluvial iron deposits exploration success, while reducing exploration cost and associated environmental impact.CITATION:Duclaux, G, Salles, T and Ramanaidou, E R, 2013. Alluvial iron deposits exploration using surface processes modelling - a case study in the Hamersley Province (Western Australia), in Proceedings Iron Ore 2013 , pp 75-80 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By P. Niessen, W. C. Winegard, C. J. Beingessner

DURING the last 10 years, several grain-growth studies have been made using zone-refined metals with controlled amounts of solute to elucidate the interaction of solute with moving boundaries. In all these studies, it was more or less implicitly assumed that the alloys used were, after recrystallization and grain growth, homogeneous within the grains with respect to solute and lattice defects. This note deals with observations made on microstructures originating from solidification of dilute alloys and from grain growth. Briefly, the experimental procedure used in these studies was the following: zone-refined cadmium and master alloys were melted and cast in Pyrex under vacuum to produce bars 14 mm in diam and about 150 mm long. These bars were cut into 8-mm-thick slices which were mechanically and chemically polished. The specimens were then deformed 30 pct in compression and given a 1-week anneal at 260°C in argon. After this anneal, a second deformation produced completely recrystallized samples 4 mm thick. The time-temperature controlled anneals were carried out in a bath of silicone oil. After the grain-growth anneal, the specimens were polished in Gil-man's' solution (33 g CrOs, 6 g NazSO, in 100 ml of water). Several etches were used depending on the alloy investigated, but mostly a mixture of concentrated HC1 and HNOj (98:2 vol) was employed. In all the alloys examined, the ease with which substructures could be revealed depended strongly on the crystallographic orientation of the surfaces of the grains. However, very frequently the microstructures to be discussed here etched up over broad areas comprising several grains. Fig. 1 is a micrograph of a Cd-0.05 at. pct Mg alloy annealed for 100 sec at 270°C. Different substructures are seen in this photograph. A denotes the now existing grain boundaries. The well-defined lines and points marked B are the remains of a solidification substructure. The lines are boundaries between cell colonies, and the points are nodes located on regular two-dimensional cells. This cellular structure has the same appearance as that found by weinberg2 for rapidly quenched Zn-Au alloys. The "ghost boundaries", marked C, are very similar in appearance to a grain boundary array in a polycrystalline sample. Repeated polishing and etching showed that all the substructures observed were three-dimensional. To date, the ghost boundaries have been clearly observed in all samples containing 0.005, 0.01, 0.05, and 1 at. pct Mg, and in samples containing 0.01 at. pct Zn. Attempts to outline these ghost boundaries in cadmium alloys containing 0.01 at. pct Ag and Au were only partially successful. In these alloys, parallel lines, having a resemblance to the ghost boundaries in the Cd-Mg and Cd-Zn alloys, were observed, but it was not possible to obtain complete arrays of ghost boundaries which extended over several grains. It is possible that a different etch than that presently employed would reveal the ghost boundaries in the Cd-Au and Cd-Ag alloys as clearly as in the Cd-Zn and Cd-Mg alloys. A close examination of the ghost structure showed that it consisted of linear etch-pit arrays, Fig. 2. The ghost boundaries were resolvable even in grains which showed over-all faceting due to the etching, as seen in the corner of Fig. 2. The general appearance of the ghost structure suggests that it originated during grain growth. This is supported by the observation that the mesh width in the ghost-boundary array generally increased with increasing final grain size. To test whether the ghost structure was formed during the long homogenizing anneal or during the grain-growth anneal, some as-cast samples were deformed and given a grain-growth anneal. This anneal was terminated by air cooling or

Jan 1, 1967

By K. C. Garner

The visit reported was made with support from the 1997 J.C. Boyle travelling scholarship. The management and control of hazardous gases released into the underground environment are an integral part of coal mining. The power-generations stations at Appin and Tower collieries, with a combined electrical output of 94 MW, have been operating for some time and have demonstrated a technology that is able to exploit the available gas fully. Contributory factors have been the development and introduction of directional drilling techniques, pre- and post-drainage of coal, relatively high seam permeability, a high gas content of the worked seam, high production rates and a willingness to embrace new ideas and technology

Jun 21, 1905

The treatment plant at Martha Mine was upgraded from a nominal throughput of 110tph (O.93mtpa) to 150tph (1.25mtpa) late 1999. Post-upgrade performance did not meet expectations when treating either the competent primary ore or the clay-rich oxide ore.   ò Plant throughput is constrained by milling capacity when treating the competent primary ore. This is not an issue at present as current plant feed is oxide ore from the top of the open-pit, but will become so in future years as the pit deepens. To counter this future threat, ball mill power has been restored to 1100kW through modifications to the drive train. The addition of a crushing circuit may also be necessary.   ò Plant throughput was originally constrained by thickener and leach/adsorption tank issues when treating the oxide are. Changes to plant equipment and operations has seen the removal of these constraints and throughput on this material is no longer a problem.   The most significant issue facing plant staff at present is the high silver grade and its impact on gold recovery. These high grades impact upon recovery through losses caused by insufficient leach and adsorption capacity. To counter this, the geology, mining, and milling teams are working together to blend the high grade silver zones with lower grade ores - this is seen to be the quickest and most cost effective way to deal with the issue. The plant design has also been evaluated with a view to modifying it to cope with the higher silver grades. The viability of these modifications will depend on cost and time (that is, the length of time to implement any modifications versus the length of time to mine out the high silver zones).

Jan 1, 2001

By Leonard Weixler, Peter Halbach, Michael Jarowinsky, Johannes Post

Germany as an industrial nation is highly dependent on the import of mineral or metal resources. Sources which have not been considered until now are the marine mineral resources (MMR), which in recent times are enjoying more and more increasing interests and which might provide in the future a considerable contribution to the supply security on metal resources not only for the industrial countries. Backed up by the German government’s "National Masterplan Maritime Technologies" (NMMT) and corresponding industrial R&D-activities, the idea and the advantages of deep-sea mining is gaining more and more interests and supporters with respect to industrial and political considerations on strategic raw material resources as well as on the development of deep-sea mining technologies. The NMMT aims to initiate growth and increase the competitiveness of the German maritime industry on international markets and covers about 10 different marine and ocean technology sectors including deep-sea mining.

Sep 1, 2014

By F. Burat

Large reserves of feldspar ore exist in the Aegean region of Turkey. The main colored impurities in these ores are iron- and titanium-bearing minerals such as anatase, rutile, sphene and ilmenite. In this study, a potassium feldspar ore containing mainly quartz and coloring impurities was subjected to beneficiation tests involving magnetic separation and flotation, which were applied either separately or in combination. Bench-scale flotation experiments using cationic collectors G-TAP and Flotigam V-4343 and using HF and H2SO4 as modifiers were employed to separate feldspar from quartz and to remove part of the titanium impurities. The best results were achieved with a combination of high-intensity wet magnetic separation and flotation. A feldspar concentrate containing 16.28% Al2O3, 10.75% K2O, 2.84% Na2O, 69.97% SiO2 and 0.16% Fe2O3 was produced. A quartz concentrate containing 2.30% Al2O3, 0.48% K2O, 0.42% Na2O, 0.07% Fe2O3 and 96.20% SiO2 was also obtained

Jan 1, 2007

By M. van Schoor

Coal remains South Africa?s most abundant and cheapest source of energy, and there is an ever-increasing necessity for optimal and safe extraction of the remaining reserves. Increasing focus on cost-effective mining and zero harm to the environment and miners has resulted in a shift in attitude towards the application of geophysics in local coal mining and exploration. Furthermore, technological advances have contributed to geophysics being embraced more readily by the coal mining industry, compared to a decade or two ago. Predictably, the growing interest in geophysical technologies has also created a need for education and training in the basic principles and application of geophysical methods, as local coal mining companies generally do not have in-house geophysicists. Consequently, the Coaltech Research Organisation?s Geology and Geophysics working group forum compiled a textbook aimed at addressing this need: to produce a guide for applying geophysics to coal mining problems in South Africa. The target audience for such a book would be coal geologists, mine surveyors, mine planners, and other mining staff with limited or no geophysics background. This paper provides a very brief overview of the book by summarizing key sections and selected examples. In doing so, the value of geophysics to solving a range of coal mining and exploration problems is highlighted.

Jan 1, 2014

By Reeves M

A review of the literature available in English on kriging and geostatistics is given with the references cross-classified by their subject matter for convenience and ease of use.

Jan 1, 1979

Six simulations by the Mpnte Carlo method employing both classical and geostatistical techniques are presented for the determination of the probability distribution of the in situ value of a coal seam. To avoid the problem of qualitative estimation of parameter variability in the calculation of an arbitrary seam value, only data values from borehole information were used to quantify the variation in four coai seam parameters.The method which is suggested as being the most appropriate is a particular geostatistical approach that employs the best linear unbiased estimate and the error of estimation for a number of two dimensional blocks. The results indicate that the variance of the coal seam unit value may be much higher than that indicated by the classical approach because of the spatial variability that is properly incorporated in the geostatistical approach.The model used in the Monte Carlo simulation to determine the economic value of a coal seam can be extended to incorporate all those parameters which are necessary for a true estimation of the probability distribution of the coal seam value. A time value concept for discounting can also be incorporated to optimize the economic return of a coal mining project.

Jan 1, 1983

By R. G. Votteler, A. C. Brent

"The business performance of mining corporations in South Africa is adversely affected by the constantly increasing electricity costs. The most commonly used power sources are the national utility supplier via a grid connection, and on-site diesel generators. Previous research has identified the renewable sources of solar photovoltaic (PV), onshore wind, and geothermal energy in hybrid versions with current sources as possible opportunities to counteract rising electricity costs. To provide a clear understanding of the new, developing market of renewable energy sources, this research is divided into two papers. This first paper investigates the internal business structure of mining corporations in order to evaluate electricity generating sources. The multi-criteria decision analysis (MCDA) method is selected as the most suitable approach for this. The paper identifies the criteria used by mining corporations to evaluate possible electricity generation sources for self-generation by means of the corporations’ own investment. Four mining corporations with several mining locations were interviewed. The interviews revealed both new and identical evaluation criteria when the findings were compared to earlier MCDA adaptations analysed in the literature review. The second paper (Part 2) combines current knowledge about the external macroeconomic environment with the findings about the internal environment described here. MCDA is adapted in Part 2 and implemented to analyse and compare current to hybrid renewable sources from the perspective of mines. IntroductionMining corporations in South Africa are currently adversely affected by increasing electricity prices. Electricity is supplied mainly by Eskom1 and, especially in remote locations, by on-site diesel generators (Boyse et al., 2014). Electricity price increases, emanating from diesel price hikes and Eskom, have escalated the total operational expenditure on electricity by the largest mining corporations from 8% to 20% of total operating costs in the past seven years (EIUG, 2015). The reliability of electricity supplied by Eskom has decreased drastically (Govender, 2008), and the prices will increase annually by at least 13% until 2018 (Numbi et al., 2014; Eskom, 2015b). In addition, the South African government plans to introduce a carbon tax on greenhouse gas emissions (Alton et al., 2014)."

Jan 1, 2017

By Srinivasulu Tadisetty

The productivity and safety of Indian longwall operations are insignificant because of complex geomechanical conditions. Therefore, the continuous monitoring and forecasting of abnormalities is imperative. Authors developed an innovative real time system and implemented in one of the Indian longwall mines. The real time system was successfully acquired data from underground chock shields and classified the behaviour in real time as per the standard norms. Furthermore, it forecasted the abnormal behaviour of chock shields promptly. The management was implemented appropriate precautionary measures based on real time forecast. Subsequently, the longwall operations were successfully completed with enhanced productivity and safety. This paper discuss the impact of the innovative system on productivity of experimental longwall mine.

Jan 1, 2006

By G Tripp, G Lorusso

The Velvet gold orebody (153 Koz Au) is located near the Kanowna Belle gold deposit in the Boorara Domain of the Kalgoorlie Terrane, a subdivision of the Archaean Eastern Goldfields Superterrane (Swager et al, 1990). Gold mineralisation at Velvet is hosted within an intrusion of intermediate composition that broadly follows a sub vertical hanging wall splay of the Fitzroy Shear Zone.Velvet was discovered in 2003 during an underground exploration drilling program targeting potential strike extensions to the Kanowna Belle deposit. Diamond drill hole KDU1595 returned a downhole intercept of 36 m grading 4.6 ppm Au approximately 500 m west of the deposit and at a vertical depth of 700 m below surface in the immediate hanging wall of the primary Kanowna Belle host structure, the Fitzroy Shear Zone. Subsequent drilling completed following the initial discovery, from both surface and underground collar positions, failed to replicate this result.In 2014, KDU1595 was resurveyed gyroscopically and the mineralised intercept correctly located. Additional drilling was undertaken to follow-up the repositioned discovery hole. Challenges included poor drilling angles through the Fitzroy Shear Zone, excessive deviation during drilling and the unknown geometry of the target. Navigational drilling helped to successfully penetrate the Fitzroy Shear Zone and in April 2015, drill hole KDU3234 returned a significant downhole intercept of 45 m grading 5.6 ppm Au.Additional drilling success resulted in a decision to develop a 600 m drive to serve as a dual-purpose access for further exploration and mining. This was a potential risk considering that the orebody geometry was unknown and all significant drilling results were clustered within a 50 m × 50 m panel. Development commenced in June 2015 and the first ore cut taken in April 2016. Geological mapping and structural interpretation, together with multi-element and spectral analysis of drill samples has enabled several other target areas to be identified for exploration. The Velvet mining area is critical to continued production at Kanowna Belle. Geological understanding must advance as mining progresses to ensure continued resource growth and optimal extraction of reserves.CITATION:Lorusso, G, Rogers, J and Tripp, G, 2017. Velvet underground exhumed – discovery and development of a new mining front at the Kanowna Belle gold mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 169–174 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By F. N. Voskoboyev

The suggested new method for control of geomechanical state of undermined rock mass ensures, as a safety measure for the earth surface protection, the decrease of deformations by 2,5 - 10 times in mining the single seam, and by 1,5 - 5 times - in mining bed series, i. e. approximately within the seam ranges as in the application of full packing with various compressive properties or partial extraction of resources over the area with different coefficients of extraction. It should be noted that this new method has the following advantages o\w rhr. conventional methods: a) the decrease of the packing area and packing works volume by 2 - 4 fold including the operating and productive expenses; b) the elimination of mineral losses due to the increase of extraction coefficient up to 100 5%; c) rock utilization from workings drivage by its placing in the mined - out space. Perspective field of application of this method: disconservation of mineral resources in the left protective pillars of various designation.

Jan 1, 1996

By Ghassan Skybey

Australian coal mines uses state of the art technology in coal rib reinforcement. This paper highlights the development over the past 15 years in coal rib support technology, along with the advantages and disadvantages of each system. It also outlines the current trend in using coal rib reinforcement in speeding up the dowels installation to improve the current low drivage rate. An innovative cuttable dowel is discussed which improves the drivage rate. This new dowel is self anchoring it uses no resin anchor it has a 5 tonnes (5.51 tons) anchor capacity and can be fully installed in approximately 10 seconds.

Jan 1, 1995

By S. Jennings

The Red Dog zinc-lead-silver deposit is located in the DeLong Mountains of the western Brooks Range in northwest Alaska. The region is located 145 km(90 miles) north of the village of Kotzebue (Fig. 1).Red Dog’s current resource base is 143 Mt (157 million st) averaging 16.1% zinc, 4.3% lead and 83g/t (2.4 oz/st) silver. It is contained in four structurally separate deposits— the Hilltop, Main Deposit, Aqqaluk and the newly discovered Paalaaq deposit. Recent exploration for the Aqqaluk and the Paalaaq deposits has contributed to Cominco American’s understanding of the detailed structural geology of the district and its role in the placement of individual ore bodies.

Jan 1, 1999

By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By Dan Brown

Two drilled shaft foundations were subjected to axial load tests in order to measure the influence of drilling fluid on performance. Other than the differing drilling fluids, the shafts were constructed with great care to ensure identical conditions. The results indicate superior performance in both side shear and base resistance of the shaft constructed using a polymer over that of the shaft constructed using bentonite drilling slurry.

Jan 1, 2002

By A. Roca, G. Ríos, I. Ruíz, M. Cruells

Flash Smelting Furnace (FSF) hot dust-laden is cooled in a waste heat boiler (WHB) and then dedusted in electrostatic precipitators (ESP’s) before being treated, together with the Peirce Smith Converters off-gases, in the sulfuric acid plants for SO2 removal. FSF dust is sulfated by SO2 and O2 in the WHB. Typically, 70% of the dust from the FSF drops in the WHB while the remainder is caught in the ESPs. The collected dust is recycled to the FSF for Cu recovery. Some smelters have developed hydrometallurgical treatments to recover Cu from the dust; impurities, such as As and Bi, are bled as leach plant residues. This paper presents a study (laboratory scale), of leaching the FSF dust, generated in Atlantic Copper Smelter using the weak acid bleed from the gas scrubbing/cooling section (GSCS) of sulfuric acid plants. Leaching was performed with 0.5 mol L-1 sulfuric acid concentration, 60ºC, and a solid/liquid ratio 1/3. After leaching, H2O2 was used for arsenic and iron oxidation. pH was adjusted for precipitation of arsenic and iron as scorodite or as scorodite and arsenical jarosite. The precipitation was carried out at 95ºC during 3-6 h. Liquids after precipitation are suitable for subsequent treatments of electrolysis. INTRODUCTION The copper smelter dusts are usually recirculated totally or partially to the flash furnace. This practice increases the amount of impurities feeding the furnace. Some authors have developed processes for treatment of these materials for copper and zinc recovery and for arsenic, antimony and bismuth inertization. The processes for the treatment of copper smelter dusts can be pyrometallurgical (Yu, 1987; Carter, Vance, Aldridge, Zaw, & Khoe, 1994; Fu, Jiang &Wang, 2000), hydrometallurgical, or mixed processes (Yin et al, 1992; Mulale, Mwema, & Mashala, 1999; Gorai, Jana, & Khan, 2002). Hydrometallurgical processes have been extensively studied and, in some cases, applied to an industrial scale. The most important chemical reagent proposed for leaching the dusts has been sulfuric acid (Roman-Moguel, Plascencia, Pérez, & Garcia, 1995; Gabb, & Evans, 1997; Larouche, 2001; Morales, Cruells, Roca, & Bergó, 2010; Cáceres, Cruells, Morales, & Roca, 2012; Ecometales, 2013; Yang, Fu, Liu, Chen, & Zhang, 2017). Processes developed in alkaline media, and in some cases with the presence of sulfide, have also been carried out (Gabler, & Jones, 1988; Morales, Hevia, & Cifuentes, 2009; Alguacil, Garcia-Diaz, Lopez, Rodriguez, & Alonso, 2013), as well as by using a bioleaching process (Massinaie, Oliazadeh, & Seyed Bagheri, 2006; Bakhtiari, Atashi, Zivdar, Seyedbagheri, & Fazaelipoor, 2011).

Jan 1, 2019

By R. F. Balazik

By March 2001, shrinking global markets, reduced consumer spending and declines in domestic manufacturing and industrial output ended the longest economic expansion in US history and pushed the nation’s economy into its first recession in a decade. Aggravated by the terrorist attacks of Sept. 11, the recession led to large reductions in the domestic production of processed mineral materials. Some of the most significant production declines in the US metals industry were registered by aluminum, copper and steel producers. They faced strong foreign competition, higher energy costs and lower prices for their products. However, homebuilding and other domestic construction sectors — major users of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above previous year levels. A strong US dollar continued to weaken the competitive stance of US metal and nonmetallic mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2002

By Will Jansen

When Enron rocked the United States with its Titanic-sized financial accounting scandal, miners and metallurgists were probably too busy on the mine sites in remote locations to wonder about its ripple effect. But then Enron sank, Arthur Andersen tanked and the list of scandals, costing billions of dollars, continued to ripple. Followed by the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley), the recent credit crunch and weak economy, the currents from Enron?s collapse eventually washed right into the mine and the mill. These events placed intense scrutiny on metals production accounting processes as traditional semi-qualitative metal accounting practices provided insufficient credibility and transparency. ?There is growing intolerance of organizations that are unsure about the location of thousands of tonnes of ore, which will typically lose 10 to 15% of their notional value on the way to the concentrator,? Rob Morrison wrote in the opening chapter to An Introduction to Metal Accounting and Balancing. ?If the measurement and forecasts also contain qualitative (fudge) factors, a very real suspicion might emerge about just how much metal might disappear (by theft or misplacement) before detection becomes likely.? Metallurgical accounting, put simply, is the tracking and reporting of the quantity and quality (tonnage and grade, usually) of materials entering or leaving each stage from source to product for a specified accounting period. Lacking an accounting standard, metals accounting in precious metal operations has been performed in an ad-hoc, informal manner, leading to numerous errors and unidentified potentially significant inefficiencies and financial losses. As a result, mining companies are beginning to examine the quality of their metals accounting systems since they form the basis of mining company?s financial accounts and reports. As part of an effort to create that accounting standard in the mineral industry, University of Queensland?s Julius Kruttschnitt Mineral Research Centre published the textbook An Introduction to Metal Accounting and Balancing in 2009. While development of a textbook and standard are significant steps forward, the challenge in the precious metals industry is in the application of some of these suggested practices. Though improving process transparency and precious metals accounting reporting accuracy is a key driver for change from the financial side, perhaps even more important is the potential benefit to operational performance that comes with better measurement, accounting and reconciliation systems. Loss of precious metals, processing of waste and inefficient mining and processing systems are all problems that are faced in an operation on a daily basis that can help be resolved through improvements in metal accounting and reconciliation. The financial consequences of such operational inefficiencies and bad decisions based on poor information are arguably greater than consequences of fraudulent accounting. Large discrepancies between mine and mill measurement systems that measure the quantity and quality of valuable material currently exist. Some of these are expected because of statistical variation, but inherent random measurement variation is sometimes an insufficient explanation. Though the mill can usually make much better production estimates through their measurement systems (that is, less variation), this knowledge rarely benefits the mine. 3 Moreover, even if the mine does a reasonably good job of estimating expected production at the grade control level (in situ), issues such as blast movement, poor mining practice and inefficient ore/waste classification make for a disconnect between the in situ estimates of the mine and the estimates from the concentrator. This inhibits effective evaluation of the reserve and grade control models using concentrator estimates. Linking the two ends, mining and concentration, is a neglected area sorely in need of an overhaul. Hence the need for improved mine to mill reconciliation ? the area of comparing, balancing and adjusting production estimates between mine and mill for consistency in reporting.

Jan 1, 2009