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By P Dowd, R Jeuken, C Xu

In Australian coalmines there are a number of coal quality parameters that are measured by analysing samples from boreholes. The data points are used to generate spatial models of these parameters, typically using inverse distance as an interpolation method. Numerous additional boreholes are drilled which have geophysical logs measured downhole but from which no coal quality samples are taken. Full suites of coal quality analyses are expensive and time consuming to drill and sample. If geophysical proxies for coal quality could be used, this would greatly improve the accuracy of the resource estimation without additional cost.This paper examines two of the most important coal quality parameters – ash and volatile matter – and assesses the results of a number of geostatistical interpolation methods. The aim is to improve the accuracy of the interpolated models. Auxiliary variables from geophysical logs are also trialled to improve the estimation.A multivariate analysis of ash, volatile matter and several auxiliary variables of a selected coal seam was undertaken in a spatial context, using variography. This was used to construct a model of co-regionalisation that relates all of the variables as manifestations of an underlying geological theme.The traditional inverse distance interpolation approach was compared to ordinary kriging, universal kriging, co-kriging, regression kriging and kriging with external drift approaches. The relative merits of the six interpolation methods were compared by removing all points, one at a time and estimating at the thus known location. The mean error and the root mean square error were evaluated as a measure of bias and precision.This paper demonstrates that there is significant opportunity to improve the estimations of coal quality when using kriging with external drift. For example, the results show that when using the depth of a sample as an external drift variable there is a significant improvement in the accuracy of estimation for volatile matter. Furthermore, when using borehole wireline density logs as an auxiliary variable for ash content, there is improvement in the estimation of the in situ ash. The underpinning reasons for this are discussed in the context of the underlying geology and the physical properties of the coal. These findings hold promise for utilising cheaper proxies for coal quality parameters to dramatically improve data density and the quality of estimations.CITATION:Jeuken, R, Xu, C and Dowd, P, 2017. Improving coal quality estimations using geostatistics and auxiliary variables, in Proceedings Tenth International Mining Geology Conference 2017, pp 157–168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

Mineral flotation is effective over a relatively narrow particle size range of approximately 10 µm to 150 µm. If the upper particle size limit can be increased, however, a run-of-mine ore may be coarse ground, and only the middlings are ground further to achieve required grades. This will result in significant energy savings and increased throughput. In this communication, methods of increasing the upper particle size limit will be discussed on the basis of a flotation model that can predict flotation from both hydrodynamic and surface chemical parameters. An example of increasing flotation recovery by control of a chemistry parameter is given.

Jan 1, 2014

By H. Do, R. Yoon

Mineral flotation is effective over a relatively narrow particle size range of approximately 10 to 100 µm. If the upper particle size limit can be increased, however, a run-of-mine ore may be coarse ground, and only the middlings are ground further to achieve required grades. This will result in significant energy savings and increased throughput. In this communication, methods of increasing the upper particle size limit will be discussed on the basis of a flotation model that can predict flotation from both hydrodynamic and surface chemical parameters. An example of increasing flotation recovery by control of a chemistry parameter is given.

Jan 1, 2007

By R A. Pakhomov, L V. Krupnov, P V. Malakhov, I M. Dymov

The article presents results of thermodynamic calculations and laboratory studies, focusing on the cobalt behaviour during oxidative smelting of copper-nickel mattes. The compositions of the studied solutions are related to the products formed during the second stage of the converting process of copper-nickel matte at the Nadezhdinsky Metallurgical Plant (NMP) of MMC Norilsk Nickel company. These sulfide products typically contain from 1.5 to 12 wt per cent of iron. The obtained experimental results and thermodynamic calculations indicate that adjusting the CaO ratio to increase the proportion of CaO or complete replacement of SiO2 with fluxes containing CaO leads to a significant increase in cobalt recovery rates in the matte phase (with an iron concentration of 2.5 wt per cent) raising them from 30 per cent to 45 per cent. Meanwhile, the recovery rates of copper and nickel remain constant.

Aug 21, 2024

By Jose R. Hernandez-Aguilar, Jeet Basi

"The study evaluated the impact on overall circuit metallurgy of improving the performance of the two flotation columns that make up the final Mo cleaning stage in the Cu/Mo separation circuit at Highland Valley Copper mine. The results showed that a key factor to improve the overall circuit metallurgy was to control the size of the bubbles generated in the columns. When a large proportion of small (< 1 mm) bubbles were generated, the production rate of solids-in-concentrate increased by a factor of 4-5 compared to typical production figures without compromising concentrate quality. This increase in concentrate production rate reduced the circulating load in the circuit causing a significant increase of Mo recovery. A statistical analysis of historical production data showed a strong relationship between final concentrate production rate and overall Mo recovery. This relationship along with the results from this study indicated an opportunity to increase the recovery of Mo from 90% (typical) to 94% without downgrading concentrate grade. This 4% increase represents about 14,000 lbs or $500,000 worth of Mo each month at current metal prices.To provide a rational interpretation of the results, this study also examined whether the model of Gorain et al. (1997; 1998; 1999) could explain the increase of Mo recovery seemingly resulting from the decrease of bubble size. The data showed that the model predictions did not agree with the experimental data, i.e., for a given change (decrease) of bubble size, the predictions underestimated significantly the observed recovery increase. An interpretation based on the fundamental analysis of Finch and Dobby (1990) and Hernandez-Aguilar et al. (2005) is proposed to explain the discrepancy between measurements and predictions obtained from Gorain et al.’s model.INTRODUCTIONIt is generally accepted that the size of the bubbles generated in a flotation cell – a concept usually referred to as “bubble size” – has a significant effect on metallurgical performance. However, a significant number of mineral processing practitioners often question, with valid reasons, the practical benefits of implementing process improvement strategies based on controlling bubble size. “Small” bubbles are often considered to be “favourable”, but how small they need to be for a particular case, or how to adjust operating conditions to control a target bubble size, or whether the bubbles need to be smaller in the first place are questions that usually remain unanswered. Two reasons explain this situation."

Jan 1, 2009

By J. Basi, J. A. Finch

ABSTRACT Testing the effects of bubble size (Db) in a Mo cleaning ?otation column at Highland Valley Copper mine indicated that increasing the proportion of small (< 1 mm) bubbles signi?cantly improved column metallurgical response, compared to typical operation. The results were a three- to four-fold Mo recovery increase and a 1 to 2% Mo (absolute) concentrate grade increase. The improvedcolumn operation produced a 4% Mo plant recovery increase. This study also showed that modelling the ?otation rate constant (k) as an inverse square function of Db was more accurate than considering k to be inversely proportional to Db.

Jan 1, 2010

By S Mundell, A Atkins, S van de Water

Geoscientific information management enables the capture, management and delivery of the original geoscientific observations and measurements of the earth’s natural resources. However, original observations and measurements are worth nothing if the quality and integrity of the data can’t be guaranteed. Geoscientific information is one of the fundamental assets enabling miners to make confident and accurate business decisions, whether that is defining a resource model, performing reconciliation, delivering ore reserve reports or meeting environmental compliance requirements. Without access to reliable, validated or verified data it increases the risk of miners using incorrect information for reporting and compliance. Industry codes, such as JORC, or government regulations, such as environmental compliance requirements, must be adhered to and companies should be able to confidently report to these standards. Without having a robust information management framework in place, it becomes a challenge to make trustworthy decisions, report confidently and reduce the risk of non-compliance. As a key initiative, good data governance should form one part of a miner’s information management strategy. Within the mining industry it is common for companies to only consider technology tools as the key focus for compliance whereas a mature information management focus will additionally consider people and process. All three pillars are critical for a miner to have confidence in their data driven decisions. This paper discusses an industry framework for best-practice geoscientific information management based on the observations gathered from analysing data management practices within the mining industry. It focuses on how the three pillars of people, process and technology are crucial elements to improve operational decisions and ensure companies are compliant.

Nov 8, 2021

By C. M. van der Walt, J. F. van Rensburg, H. J. Groenewald

The South African platinum group metals mining industry faces considerable operational costs, with compressed air networks’ annual costs accounting for up to 35% of total electricity consumption. Amidst escalating electricity tariffs and volatile commodity prices, enhancing energy efficiency has become critical for economic sustainability. This study addresses the prevalent issues of mismanagement and inefficient use of compressed air on the demand side, such as leakages and unauthorised use for ventilation. While previous research has identified these inefficiencies, a gap exists in the continual monitoring and reporting of network performance to drive sustained improvements. This paper presents a practical solution developed and applied within a major South African platinum group metals mining group. The methodology focuses on a continual monitoring and reporting framework to improve demand-side management. The implementation of this solution has demonstrated significant financial and energy-saving potential. Key findings from case studies include: 1) the mitigation of R150,000 in costs over five days by rectifying a single instrumentation fault, 2) a potential annual energy saving of up to 5.6 GWh (R10.6 million) by enforcing valve closures during non-productive periods, and 3) an annual reduction of 3.7 GWh (R7.2 million) through improved underground ventilation controls. These outcomes underscore the value of a systematic, data-driven approach to managing compressed air consumption, offering a viable strategy for cost reduction and enhanced efficiency across the platinum group metals industry.

Mar 6, 2026

By T. Strong

"Selectively recovering pentlandite from high levels of pyrrhotite presents a technical and operational challenge. The liberation characteristics and also the chemical environment is critical to performing a successful separation. Reviewing the mineralogy to understand the characteristics of the ore and the plant flotation behavior is fundamental to designing a successful improvement program.At Savannah Nickel the challenges presented by a falling nickel price required a rethink of the flowsheet to improve the project economics through improving the concentrate grade and recoveries. Glencore Technology reviewed the plant performance and proposed and tested solutions to improve the grade performance of the concentrator with the support of the plant team. A pilot plant comprising a M20 IsamillTM followed by an L500/1 Jameson Cell was operated on various plant streams. In addition to the pilot plant, flotation surveys and a plant based laboratory program was used to supplement the plant understanding and within two weeks significant improvements were identified and demonstrated. The combination of the pilot operation and the plant based laboratory program was able to quickly demonstrate the improvements and test with equipment that is fully scaleable from pilot plant to full scale.IntroductionPanoramic Resources Limited is a Western Australian mining company formed in 2001 for the purpose of developing the Savannah Nickel Project in the East Kimberley region of Western Australia. Panoramic successfully commissioned the $65 million Savannah Project in late 2004. The process plant at Savannah comprises a single stage crusher, SAG mill, flotation, thickening and filtering stages to produce a bulk nickel, copper, cobalt concentrate. Metallurgical recoveries average 86-89% for nickel, 94-97% for copper and 89-92% for cobalt. The plant was originally designed for a throughput of 750,000 tonnes per annum, but has consistently outperformed the design specifications.Due to low nickel prices the Savannah Nickel mine and processing plant were placed into care and maintenance in May 2016. Prior to suspending production Glencore Technology was engaged to investigate options to improve the concentrate grade. With the discovery of Savannah North in 2014 and the Savannah North Scoping Study demonstrating LoM ~8 years and Mining Inventory of 6.07Mt @ 1.26% Ni, 0.64% Cu and 0.09% Co significant future potential exists. By completing pilot plant studies prior to shutting down, the plant engineering studies can be completed and the plant readied for restart by the time the nickel price improves."

Jan 1, 2017

By M. Girard, C. Farsangi, N. Singh

"Canadian Royalties Inc. owns and exploits the Nunavik Nickel Project: a copper and nickel deposit in Nunavik, Québec. The nickel and copper concentrates are filtered by plate and frame filter presses, and are transported 100km north to Deception Bay by truck. As the site is situated in the far north, extreme weather can be detrimental to production: roads can close for significant periods of time, resulting in the concentrator using all its storage capacity. During the winter of 2017, this accounted for over 100 hours of unplanned mill downtime. Different solutions to this problem were evaluated and the most economically viable combination of solutions was determined to be the use of concentrate storage containers and upgrading the plate size of the existing nickel filter press. By satisfying new, increased utility requirements, the cycle times would not change, but produce 30% more filter cake. Simulations were developed to determine the number of concentrate containers needed in conjunction with the upgraded press to eliminate unplanned downtime due to road closures and secure production through the winter. This paper summarises these simulations, the commissioning and start-up of the upgraded filter press, container loading procedures, and how this was put together to achieve a record 2018 winter season with a 90 percent reduction in downtime. The payback period of the project was 4 months. A specialised side-tipping trailer emptied the containers during the fall of 2018.INTRODUCTION The Nunavik Nickel Project is a nickel/copper mining project located in Nunavik, Québec. The nickel and copper concentrates are stored in stock tanks after thickening and are then filtered by plate and frame filter presses at the concentrator before being transported 100km to the shipping port at Deception Bay by trucks. The region is prone to periods of extreme weather during the winter, with winds that can reach +100km/hr and blizzards that severely limit visibility. The roads to Deception Bay are often affected by this weather, causing closures that last an average of 18hrs and as long as 72hrs. Additionally, there is a 15% chance that road closures occur within 24hrs of the last event. This has been an issue for the concentrator team since start-up in 2013, causing unplanned mill downtime every winter (Table 1) due to filling concentrate storage capacity during prolonged closures of the roads to Deception Bay."

Jan 1, 2019

By Harovel G. Wheat

It has been shown that the incorporation of fly ash into concrete as a replacement for part of the cement can be beneficial. In some cases, the strength of the concrete can be increased and the permeability can be decreased. This latter property can lead to a reduction in the migration and/or penetration of aggressive species into reinforced concrete. Some of these species, such as chlorides from deicing salts or marine environments, can subsequently result in accelerated corrosion of the steel reinforcement, a loss of the protection provided by the passive film on steel, and a loss of structural integrity of the concrete. Care has to be taken so that the appropriate compositions of the components of the fly ash are utilized in order to ensure maximum benefit to the concrete structures. This will be discussed as it relates to fly ash generation and treatment.

Jan 1, 2002

By M Boon, M Franklin

This paper outlines the journey of cultural maturation and management system development at the Mt Rawdon (MRO) gold mine from its acquisition by Evolution Mining Limited (Evolution) in late 2011 to 2016.Evolution embarked upon a series of projects that aimed to improve the operational consistency and implementation of change on-site, while leveraging off the existing strengths of the operation. This document describes the gaps that were identified, the processes used to close them, and the resulting cultural change and production outcomes, with a specific focus on how to optimise the culture at any mining operation.MRO had a history of four owners in less than three years when it became a key asset of Evolution. The site leadership team (SLT) decided to influence the culture at MRO by reviewing and upgrading the existing management processes.The first priority was to improve transparency and collaboration at the SLT level, followed by improving competency in project management. The next phase was to strengthen the internal communication using a deliberately designed network of meetings, communication screens and other initiatives. Once there was some traction, the focus moved toward increasing production volume and decreasing cost per unit by improving short-term planning and execution capability. Together with other initiatives, this resulted in improved collaboration between all functions, which in turn netted over 37 per cent mining production uplift.Following solid success, a process of prioritisation and alignment management was implemented. This supported the ‘Mine to Mill one operation’ ideal and allowed the SLT to decide month-by-month what actions were to be prioritised. These priorities incorporated production realities and longer term imperatives of the balanced business plan.Much of this work was completed during a period of declining gold prices and a relentlessly strong Australian dollar, making it difficult to justify spending money on improvement projects. This work proved critical for the operation’s long-term survival.CITATION:Boon, M and Franklin, M, 2016. Improving consistency of delivery at Mt Rawdon Operation, in Proceedings International Mine Management Conference, pp 305-320 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By H. Golzarpoor

Life Cycle Analysis (LCA) is a methodology for evaluating the environmental impacts associated with a product during its life cycle. LCA is identified as the most reliable method for verifying environmental impacts; however, current LCA-based approaches have certain limitations for environmental analysis of construction products. Integration of the LCA methodology with Discrete Event Simulation (DES) provides a sound framework for modeling and analysing the environmental impacts of construction products. LCA and DES is one possible combination for analysing the cause and effect of various scenarios where time, resources, and randomness of input variables affect the outcome and, therefore, has the potential to address the shortcomings of LCA in construction. Recent studies in disciplines other than construction such as manufacturing systems have revealed positive effects on evaluation of environmental metrics while integrating LCA with DES; however, this integration has not yet been applied for environmental analysis of construction products. By implementing LCA data in a DES model, this research proposes an environmental model of earthmoving operations in a case study. Environmental variables are simultaneously assessed with production variables in the same simulation model and the integration of DES and LCA is discussed.

Aug 1, 2013

By Thomas R. Kuesel

In simpler times, construction was a cooperative undertaking. The frontier tradition of barn-raising is the construction equivalent of the academic ideal of a single student seated on a log with Horace Greeley. In a more complex world, ideals become more elusive. Still, it was only a generation ago that toll revenue bond financed projects generally involved a team composed of investment bankers, engineers, and construction contractors, who all shared a common objective -- to create something useful, at minimum cost and in minimum time, with fair compensation to all involved. In an increasingly contentious public climate, the team has too frequently been splintered into separate camps of owners, engineers, and contractors, who have lost the old objective of creation and have, under the guidance and control of the lawyers, substituted two new primary objectives: 1. To protect one&apos;s own skin. 2. To detect and punish culpable negligence of one of the other parties. This process has become so ludicrous that a number of thoughtful observers from all of the camps (including even some lawyers) have come to recognize that there must be a better way to undertake construction works than to use them as wrestling arenas. The road to improved contracting methods starts with mutual understanding of each other&apos;s problems and viewpoints. To this end, discussions such as this RETC session make a useful contribution. To

Jan 1, 1983

By R. Shields

"Hard rock mines move large volumes of material, which can cause the conveyors that are essential to this movement to suffer lots of problems, including carryback, spillage, dust and belt wander. Many of these issues are created at the transfer points where the belts are loaded.This article provides an overview of the latest transfer point systems that incorporate safety and serviceability by design as well as a report on recent projects. One project is the Conveyor B Transfer at the Coeur Rochester silver mine near Lovelock, NV. Here, performance was improved with the installation of belt support cradles, engineered chute walls with external wear liner, and a compact dust collector. A second project is the improvement of belt support idlers and skirtboard sealing in a long loading zone of a conveyor under the concentrator at an Arizona copper mine.The importance of transfer pointsConveyors are essential in mine material handling. Their performance will often make the difference in mine productivity and profitability. A key to conveyor performance is the transfer points where the conveyor belt is loaded and discharges. At these transfer points, many of the problems encountered with the conveyor system are created.The problems that arise at the transfer stations include off-center and segregated loading, mistracking, blockages and plugging. And there are a variety of problems originating with fugitive material — cargo released in the form of carryback, spillage or airborne dust — that are created or exacerbated in the transfer points. These fugitive materials turn into other conveyor-related problems, including shortened component life, unplanned outages for conveyor maintenance, unexpectedly high labor costs for maintenance and cleanup, worker health and safety problems and issues with community relations. The U.S. Mine Safety and Health Administration estimates that 85 percent of conveyor maintenance is a result of fugitive material at conveyor transfer points.Technologies to improve transfer pointsA number of techniques to improve the performance of conveyor transfer points have been developed. They include:"

Jan 11, 2017

By T Hirsi, M Weatherseed, T Ritasalo

Cooling tower design has not advanced significantly in the last decade. Recognising this, Outotec has developed an innovative horizontal outflow cooling tower with increased performance compared to conventional design cooling towers.Outotec&#174; Cooling Towers operate today in applications such as spent electrolyte cooling in zinc plants and for gypsum removal before copper solvent extraction. In such applications the use of this latest design has enabled increased production and lower maintenance costs in the downstream operations.In actual operations, the cooling performance has been confirmed at start-up, and has demonstrated that the towers operate in accordance with the CFD modelling. In the last three years these towers have proven themselves in commercial operation to operate with high efficiency and availability.This case study will outline comparative data, collected over two years at a site where both Outotec and conventional cooling towers are operating. The data shows that Outotec cooling towers require less than half the maintenance time of conventional cooling towers, when adjusted to a total solution flow basis. A close partnership approach with the site has allowed continual development, ensuring high availability and high performance.Experience with previous cooling tower installations guided the development of maintenance philosophies and procedures; this resulted in a design where maintenance intensive components were accessible from the top of the cooling tower. This allows safe access to components and maintenance with little or no downtime.CITATION:Hirsi, T, Ritasalo, T and Weatherseed, M, 2015. Improving cooling tower performance with innovative horizontal outflow design, in Proceedings MetPlant 2015, pp 396–402 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By T Walton, C Perring, M Pepper, G Gerber

The Yandicoogina Channel Iron Deposit (CID) is an accumulation of iron pisolites cemented by a goethite-rich matrix. The Yandicoogina CID’s are found in a palaeochannel that meanders within a broad structural basin of the Yandicoogina Syncline in Pilbara region of Western Australia. RTIO Yandicoogina Mine Geology team contributed to a number of strategies maximising the iron ore reserves mined by Rio Tinto. Two strategies are discussed: the replacement of the Batter-Berm final pit walls by contour dozing; and upgrading the lower grade material to crusher feed. 1. Contour dozing – traditional Batter-Berm pit final wall configuration left kilometre long wedges of ore sterilised around bench margins. Contour dozing final walls (ie dozing of ore down the ore-waste contact) as internally defined by RTIO Yandicoogina Mine Geology (Mine Geology), enabled recovery of additional crusher feed. 2. Upgrade of lower grade material – the lower ore domain (GVL) within the Yandicoogina orebody contains numerous clay pods. Contaminant Al2O3 inherent within clay pods can result in CID material outside of crusher feed grade specifications, causing it to be flagged as ‘internal waste’ in mining models and permanently lost to waste dumps. In 2011, after multiple tests, Mine Geology demonstrated that this material could be upgraded to crusher feed via wet processing. With the support of the RTIO Metallurgical Development team new grade specifications were defined. The resulting material has been used to supplement higher grade ore. While increasing the mining ore output, these ongoing value-adding strategies also promote more sustainable mining via better use of the non-renewable iron ore commodity. The initiatives extend mine life, reduce waste movement, improve strip ratio and increase productivity

Mar 22, 2022

By Frank Baczek, R. Q. Honaker, D. P. Patil, B. K. Parekh

Fine refuse slurry impoundment is a requirement for the coal industry to dispose the fines. Impoundment maintenance is an on going problem for the coal industry and its breakage creates environmental as well as financial problems. Deep Cone thickener technology which has been successfully applied in the alumina industry to dewater red mud was evaluated for fine refuse slurry. Preliminary obtained in a pilot-plant test showed that properly flocculated conventional thickener underflow slurry could be thickened to about 52.5 wt % solids and could replace belt filter press. The Deep Cone thickener was also found to dewater clean coal slurry to about 70 wt % solids. Further testing of the unit at other coal preparation plant is in progress.

Jan 1, 2004

By Dwayne C. Kicker

This paper introduces the concept of design theory and methodology as applied to rock mechanics for more innovative and efficient design. This is a "frontier" research area in rock mechanics because although design is a fundamental foundation to all engineering branches, very little attention has been paid to this aspect in mining. In discussing the theoretical premise of design, this paper identifies the principles which form the basis of design activity. Also, from a practical viewpoint, the findings from a series of interviews with mine design engineers are presented. These findings lead to the identification of needs arising from overlooked design methodology in practice.

Jan 1, 1989

By R. L. Miller

"Why should we care about diesel quality amidst the complexity of mining for minerals? Mining companies use a large amount of diesel fuel in their worldwide operations, both for moving ore from the mine to the processing mills or transportation hubs, and to generate power for onsite processing. This creates a large carbon footprint and poses both environmental risk with the production of emissions, and public perception of how those companies do their business as stewards of the environment while incurring a huge fuel expenditure. To improve diesel quality and create incremental value and greater environmental stewardship, the opportunity is broken down into several segments: 1. Mining industry diesel consumption 2. Fuel quality issues 3. Impacts on operations, economics, and emissions 4. Potential solutions 5. How improved fuel quality saves fuel expenditures 6. Economics of improved fuel quality 7. Recommended testing process 8. Fuel quality analysis checklist MINING INDUSTRY DIESEL CONSUMPTION The average grade of mined Australian ore bodies has halved, while the waste removed to access the minerals has more than doubled over the last 30 years, thus increasing energy consumption by 70%, (http://eex.gov.au/industry-sectors/mining/). Energy consumption and intensity in mining and mineral processing is rising at around 6% per annum. The mining industry is a huge consumer of diesel fuel worldwide, and the SRS Rocco Report of 4 August 2014 gives a better picture of recent trends. To better understand the reasons to reduce both fuel costs and consumption, we need to compare metrics on the amount of diesel consumed per each ounce of gold produced over the last decade. The rate of diesel consumption in gallons per each ounce of gold produced for the top five worldwide gold producers has doubled in the last 8 years from 12.7 gallons per ounce in 2005 to 25.8 in 2013 as shown in Figure 1 below.This is caused by 1) lower ore grades requiring more hauls to get same amount of finished gold product, and 2) haul trucks moving ore from deeper sources in open pit and underground mines. For one large multi-national gold mining company, the 2005 waste rock / production ratio was 52 metric tons/gold ounce; by 2013 that ratio had grown to 113 metric tons/gold ounce per the same SRSrocco 4 August 2014 report. Using the metrics above, the top 5 gold miners used over 591 million gallons of diesel fuel in 2013. The cost of diesel in dollars per ounce of gold has increased from $30.48 in 2005 to $101.14 in 2013, an annual appreciation of 16.2% as shown in Figure 2 below."

Jan 1, 2017