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By P M. Hetherington, F A. Pym, M P. Murphy, K E. Crook

Consultants in the mining industry have the opportunity to visit interesting deposits all over the world. Each deposit has its own set of challenges to face when it comes to defining and understanding the deposit geology and the economics to make it viable for extraction. Some of the challenges can include appropriate data capture, sampling techniques, structural characteristics, geochemistry, geophysics, lithology definition, and economic boundaries. It is essential that the practices used at each deposit (eg drilling, sampling, geological modelling, resource estimation etc) are documented and the results obtained are robust and defensible. The Competent Person is not always aware of instances where their resource estimation practices have not been substantiated. ‘You don’t know what you don’t know’ is a phrase frequently used during a mineral resource audit. Technical work to substantiate drilling, sampling, density, assaying, geological modelling and estimation processes is not always completed. Audited Competent Persons often comment: • ‘I was unaware that this was required.’ • ‘I have not had training in this area and do not know how to complete the checks required.’ • ‘This is how we’ve always done it.’ Examples of audits where it was found that geological practices were not substantiated are examined here. A discussion is included on why substantiation of these practices is important, and potential reasons as to why there are instances of unsubstantiated processes and practices are discussed.

Mar 22, 2022

By D Kentwell

For deposits where a full assay suite of elements/oxides is available and where several variables are critical to the evaluation of the deposit, it is desirable for the estimated block values of all elements/oxides to sum to 100 per cent of the weight per cent. This is difficult to achieve in practice and the estimation methods used need to be designed to minimise bias of the key elements/oxides by ensuring that block estimates are consistent with the individual assays and that the estimated totals are as close as possible to 100 per cent.This paper presents a case study of two domains within a magnetite hematite deposit, one with a high level of drilling classified as Measured and one with a lower density of drilling classified as Indicated. Several estimation methods were tested to evaluate their ability to maintain consistency of the proportions of each element/oxide and sum to 100 per cent. The following methods were evaluated: ordinary kriging, co-kriging, inverse distance and min/max autocorrelation factors (MAF) all as implemented in the Geovariances Isatis software.The comparisons showed that the MAF method produced the most robust estimates in terms of block totals and that grades and tonnages at the reporting cut-off were not significantly different between methods. At an individual block scale all methods produce artefacts that are less than desirable but can only be remedied by additional drilling.CITATION:Kentwell, D, 2015. Comparison of min/max autocorrelation factors, kriging, co-kriging and inverse distance block totals – a magnetite hematite case study, in Proceedings Iron Ore 2015, pp 465–474 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

The original and most basic relationship between mining company and explosive supplier was a simple one of consumer and product supplier. The divide between the two was quite clear-cut with neither taking much interest in the activities of the other. The explosive supplier had little understanding or share in the outcome, efficient rock breakage and therefore impact on mining and milling. Likewise, the mining company did not encourage the improvement or development of products. The transactions were limited to product and funds. This environment does not encourage any form of knowledge sharing, trust or optimisation of the mining process.Conversely, there are now a variety of relationships to the point that the mining company may simply be an asset manager whereby all æoperationalÆ aspects are contracted out. For the drill and blast aspect this takes the form of a æRock-On-GroundÆ contract whereby the explosives company takes on design, drill, load and fire responsibilities and is paid a rate per volume of broken rock. This removes the majority of risk to the mining company derived from having to produce broken rock and guarantees the cost of a portion of the overall unit cost of mining. The onus is now on the explosives supplier to break rock to a specification as efficiently as possible.There exist a number of variations between the æbasic supplyÆ and æRock-On-GroundÆ. These contracts may also include value sharing to encourage the explosive supplier to optimise the mining operation to maximise profit.This paper looks at some of the drivers for the change in explosive supplierûconsumer relationships and examines the æprosÆ and æconsÆ of a few of the options.

Jan 1, 2004

By D J. Williams, G W. Wilson, S, A B. Tran

A comprehensive field program was implemented to evaluate the internal structure and hydrology of two full-scale waste rock piles. The excavation of waste rock dumps for in-pit disposal at the two mine sites provided an opportunity to characterise the in situ properties of the dumps given contrasting geologic and climatic settings. The internal structure and materials within the dumps were observed and sampled as the waste rock piles were being excavated and placed in the open pits for permanent closure. The field program was designed to fully characterise the structure and material properties of the waste rock. The alteration of the material by physical and chemical weathering was also observed. Samples were analysed for paste pH, water content, grain size distribution and geochemistry. In situ density and matric suction were also measured. Soil water characteristic curves and saturated hydraulic conductivity were measured for representative materials. These properties were used to predict seepage pathways through the waste rock and the resulting outflow geochemistry using the finite element model SEEP/W. The materials in the dump at Site 1 were predominantly fine-grained in texture and highly weathered. The presence of dipping beds with alternating coarse and fine materials was evident throughout the profile of the dump. The structure of the waste rock appears to have an impact on the hydrologic pathways within the waste rock pile. The material in the dump at Site 2 was found to be competent and resistant to particle size breakdown. The particles range in size from clay size to large boulders with the median particle size being approximately 125 mm in diameter. The coarse-grained texture of the waste rock resulted in a loosely packed arrangement of coarse particles with little matrix material infilling the pore spaces between the coarse-grained particles. Seepage modelling for Site 1 was completed to predict seepage paths based on observed structure and hydraulic properties measured in the laboratory. The modelling showed that materials with a fine grain size distribution become the dominant pathways for flow through the waste rock pile. The modelling also showed that layers with high silt and sand contents are subject to the highest flow rates. Finer grained clay rich layers have a low hydraulic conductivity and do not convey large volumes of water. Alternately, coarse gravel and cobble materials are unsaturated under values of matric suction that approach the residual water content of the material and do not transmit liquid water. The seepage modelling together with the results of the geochemical analysis show that the dominant particle size that receives the most fluid flow and flushing ranges from fine sand to silt, corresponding to materials with air entry values ranging between 5 kPa to 50 kPa.

Jan 1, 2003

By C W. Davis

Every diesel engine emits approximately 100 million nano diesel particles (nDP) per cubic centimetre of raw exhaust. Each nDP has a diameter of between 50 and 70 nano metres or 1/100th the size of red blood cells (diameter of between 6 and 8 microns). When inhaled, some nDP pass through the lungs and penetrate all body tissue [1]. Europe and North America have recognised and are addressing the long term health problems posed by nano diesel particulate matter (nDPM) across their societies [2.3]. Australia has been slow to recognise the issue, at both a societal and mining industry level. There are chronic health effects for every underground miner and serious legal issues for mining companies with increasingly stringent Occupational Health and Safety legislation being implemented at a state level across Australia. This paper will review progress within Australian society and more particularly the underground hard rock mining industry, particularly in Western Australia (WA).

Mar 15, 2021

This paper summarises the results of a study carried out for the Sustainable Minerals Institute, University of Queensland, aimed at identifying the major water-related issues facing the minerals industry internationally and the research required to support the development of practicable solutions. An overview is given of the sources and uses of the worldÆs water resources and of the regional and global sustainability of water supply and management. Agriculture is the worldÆs major user of water; it wastes more water than the minerals industry uses. Water reform and its potential impact on the minerals industry are discussed with particular reference to Australia and South Africa. The sources, uses and management of water on mine and processing sites are outlined. Particular attention is paid to the importance of groundwater as a source of often saline water that can be used in mineral processing and for other purposes. Aquifer storage and recovery has the potential to help conserve water resources. Generally, the major uses of water on mining and processing sites are for mineral processing and refining and for the associated tailings disposal. Water consumption for these purposes may be reduced by recycling process water, using saline water, paying close attention to water management, thickening tailings and using techniques such as dry stacking and paste. A change in the minerals processing paradigm in respect of water use could come through research into new, improved and less costly dry processing techniques. The treatment of mine and processing water will be required increasingly before water is reused, stored, discharged or sold, and before sites are decommissioned. Research and development are required to reduce costs and develop new treatment methods. Mine closure and decommissioning raise a number of long-term water issues requiring continuing generic and site-specific research and development.

Jan 1, 2003

By D Bradshaw, R Dunne, S Farrokhpay

It is well known that clays affect the flotation performance, and many of the refractory gold ores around the world contain clay minerals. Therefore, an ore sample from the Carlin Trend was selected for this study as these ores contain large quantities of clays. The presence of clay minerals in an ore makes it susceptible to a range of variables, such as the solution chemistry determined by pH and the chemistry of the rheology modifiers. The viscosity of the ore slurry was measured as a function of solid concentration and particle size distribution, in addition to using different rheology modifiers and pH regulators. The results were correlated with the ore flotation performance. It was found that various reagents known commonly as dispersants or rheology modifiers have different effects on the ore slurry viscosity. This study revealed that the gold flotation recovery can be improved by changing the pulp rheology.CITATION:Farrokhpay, S, Bradshaw, D and Dunne, R, 2013. Rheological investigation of the flotation performance of a high clay containing gold ore from Carlin Trend, in Proceedings World Gold 2013, pp 333-340 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By D Olwagen, C Stanton, J Gerber

From December 2013 to February 2014 the Southern Middleback Ranges magnetite concentrator went through a successful optimisation process that included the installation of extra grinding power to treat a wider range of ore types. After the initial improvements, sampling surveys were conducted to identify the mineral deportment through the concentrator. Samples collected during the survey were analysed using X-ray fluorescence, quantitative X-ray diffraction and QEMSCAN™ to cross-validate the analysis. Certain streams were also put through a laboratory-scale Davis Tube Recovery washing process to produce clean concentrates for analysis. The QEMSCAN™ analysis identified various metallurgical characteristics (mineral association, particle sizes, grain sizes, particle densities, etc) and these were evaluated for each separation and comminution stage to both understand the processes involved and identify opportunities for improvement. Key findings from the investigation indicated the importance of understanding the elemental deportment of target elements throughout the various minerals. The standard practice of tracking iron deportment through assay provided misleading results on losses to tail through the plant. The investigation provided insight into both wanted and unwanted minerals and the efficiency of each separation stage. The efficiencies of separation are critical due to their impact on downstream capacity, and the investigation provided insight into where opportunities exist to extract more benefit. The findings of the geometallurgical analysis have been implemented on the concentrator, and improvements in the rejection of non-magnetic minerals have been seen.CITATION:Gerber, J, Stanton, C and Olwagen, D, 2015. Using geometallurgy during process optimisation activities at the Southern Middleback Ranges magnetite concentrator, in Proceedings Iron Ore 2015, pp 561–566 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By D J. Williams, S Islam

Fine-grained coal tailings slurry undergoes only limited settling and self-weight consolidation, and tends to remain slurry-like and unsuitable for conventional laboratory consolidation testing. In addition, constant rate of loading consolidation testing is more representative of the continuous disposal of tailings slurry into a tailings storage facility (TSF) than conventional step loading. The laboratory consolidation testing of coal tailings slurry under a constant rate of loading has been carried out in a purpose-built, large-scale, slurry consolidometer, instrumented with load cells and pore water pressure (PWP) transducers. In the slurry consolidometer, the rate of loading may be varied to represent the actual rate of rise of the tailings in the TSF. A slow rate of loading increases the test duration, while too fast a rate of loading may build up very high excess PWP, without achieving significant consolidation. For the particular fine-grained coal tailings slurry tested, the rate of loading in the slurry consolidometer is varied to access its effect on the development and dissipation of excess PWP. The resulting consolidation parameters are evaluated and explained using the recorded settlement and PWP data.CITATION:Islam, S and Williams, D J, 2018. Optimisation of constant rate of loading slurry consolidometer testing of fine-grained coal tailings, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 72–80 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

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

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

May 24, 2023

By E Villaescusa, A Kusui, R Talebi, R Hassell, C Arcaro

Northern Star Resources (NSR) operates several seismically active mines as part of its Kalgoorlie Operations. In order to successfully continue mining at depth in increasing stress conditions, strategies need to be developed to reduce, control and manage the impact of seismicity causing damage to the rock mass. Consequently, a research partnership was developed with the WA School of Mines (WASM) through Mining3. The main aim of the project was to develop appropriate ground support standards that could withstand the expected dynamic response with minimal to no rehabilitation required for the life of that excavation. The project utilised a design methodology for determining the required energy demand based on detailed geotechnical mapping, probabilistic analysis of wedge formation and an estimate of rock ejection velocity based on uniaxial compressive strength of the intact rock (Villaescusa et al. 2016). The ground support scheme consists of high tensile chain link mesh, resin encapsulated de-coupled posimix bolts and plain strand cable bolts, in one, or multiple passes together with plain shotcrete. Implementation of the design posed several challenges including how to install the chain link mesh, maintaining the required productivity, ensuring quality control, and understanding the interaction of the several ground support components within the scheme. The implementation of the system within a trial area was successful from development mining to open stope extraction. The most significant field verification of the system occurred with near field M+1.9 seismic occurring in proximity to an operating long-hole drill. Despite large displacements exceeding 0.5m in places, there was no significant ejection of rock or failure of the ground support system. Following the successful trial, the ground support design methodology and standards have been implemented across several NSR sites. The system forms the basis for the successful extraction of resources in future high seismic risk areas.

Mar 15, 2021

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 Miller RJ, Eager DT, Lama RD

For safe and efficient mining operations, it is essential that environment and equipment status be monitored. A system that gives quick access to status at any given time, and also permits quick analysis of their history, is required. Such a computer based monitoring system has been installed at West Cliff Colliery.The system is based on 2 super mini computers. Three major sub-systems monitor conditions in the longwall operations, environmental conditions in the intake and return roadways, status of the underground and surface installations, and mining and transport equipment.

Jan 1, 1985

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

By F Sinaga, E Widijanto

PT Freeport IndonesiaÆs Deep Ore Zone (DOZ) mine is the new underground block caving mine within the East Ertsberg Skarn System (EESS) which started production in mid-2000. The DOZ will produce 25 000 tpd using mechanised block cave mining method and will be the fourth underground mine opened within the EESS deposit. A review of the DOZ extraction bolting design was conducted in November 2000. The aim of this review was to re-evaluate the effectiveness of the current design in relation to bolt length and spacing and to challenge some questions about the technical background of the design. For instance, the influence of the rock condition on the design. To review this bolting design, several books and papers are reviewed and several experienced people have been contacted to give their opinion. The methodology used for this review is:reviewing the technical background of current design; collecting ideas and alternatives; collecting data from books and personal communication and conducting analysis; and conclusion and proposed design.

Jan 1, 2002

By J L. Macdonald, G S. King

"The development of a predictive geometallurgical model is a multidisciplinary and iterative task that involves both discovery and integration aspects. In this paper, the authors discuss the concepts of geometallurgical modelling in terms of the underlying relationships that are used to connect geology, metallurgy and economic value, and how the early-stage preparation of a spatial geometallurgical model enhances project value and provides a sound basis for future studies and test work programs.Hot Chili’s (copper-gold-molybdenum) Productora Project, which is located in northern Chile, is a porphyry-copper style deposit that can be exploited using open pit mining and preparation of a saleable concentrate from fresh ore, as well as heap leaching, solvent extraction and electrowinning (SX-EW) extraction of copper from oxide ores. To enhance project value in the Productora prefeasibility study (PFS), Hot Chili developed a geometallurgical model that was used to predict the process responses of both sulfide and oxide ores. The Productora model incorporates test results from mineralogical, metallurgical and comminution testing, as well as other studies completed on a suite of samples collected from the many geological domains of the deposit.Using Bond Work Index and Abrasion Index proxies in the geometallurgical model, Hot Chili estimated the variability of sulfide ore throughput and comminution costs. Heap leach acid consumption in oxide ore was estimated from drill hole calcium concentrations. The model was then used in mine scheduling to identify high and low throughput or high and low acid ore zones so that the processing of these zones could be advanced or deferred to improve net present value (NPV). Additionally, the cost benefits of preparing an early-stage geometallurgy model were quantified through a comparison to a conventional model that was based on test work averages.CITATION:King, G S and Macdonald, J L, 2016. The Business Case for Early-stage Implementation of Geometallurgy– an Example from the Productora Cu-Mo-Au Deposit, Chile, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 125–134 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By D Connelly

Quartz deposits are common in nature but the presence of quartz suitable for yielding high purity quartz is exceedingly rare. This paper describes a test work study on producing high purity quartz (HPQ) product to meet the tight product specifications of greater than 99.97per cent, including four and even five nines, for uses including, lighting and fibre optics and modern-day high efficiency solar panels. Due to demand in renewable energy applications the market for high purity silica solar panels known for their increasing efficiency and durability is rapidly growing. Demand continues to rise for the use of high purity quartz in semiconductors, electronics, imaging and sensor markets. Microelectronic components are created by chemically fabricating wafers of semiconductors such as silicon to obtain the desired transport of electrical charge and control of the current. The production of silicon metal from high purity quartz has been designated a Strategic Mineral by the European Commission and by the US Department of Justice due to the growing significance of this metal in various industries. The subsequent processing of quartz is the key step to adding value and aiding technological advances. Overall, the high purity quartz market is a highly secretive, specialised market with increasing opportunities for stakeholders. The attempt to produce HPQ in this work was carried out using an Australian quartz ore following a typical HPQ process flow sheet. The unit processes included primary crushing, scrubbing, magnetic separation, flotation, acid leaching followed by hot chlorination. The results indicate that grinding of quartz requires specialist equipment due to the hardness and extreme abrasiveness of the ore leading to additional iron contamination in the ground ore. The critical impurities were aluminium, iron, sodium, potassium, lithium, titanium, zircon, calcium and magnesium. The chemical refining was found effective. The hot chlorination process needed to be done at 1200°C in a chlorine – hydrogen chloride gas atmosphere. The risk of any gas being released during this stage is very serious and only specialist companies should and can carry out this step. More recent studies reported many new options that appear to facilitate the production of HPQ with the requisite purities more easily, but costly equipment along with highly trained operators are required and hence unlikely to become available in standard metallurgical laboratories any time soon.

Sep 1, 2024

By P Craig, I Canbulat, J Naylor, J Emery, A Sykes

Longwall mining is by far the most common method of underground coal extraction in Australia. Industry trends and expectations are placing increasing emphasis on the reliability and productivity of these operations. Longwalls are becoming wider and longer while retreat rates are continuously increasing due to significant improvements achieved in longwall equipment reliability and automation. This increased longwall productivity is placing significant emphasis on the reliability of longwall panel development.Although there have been significant improvements in the reliability of continuous miners and hydraulic drill rigs, the traditional resin-encapsulated bolt installation is still the principal method used in all major coal producing countries around the world. Anglo American realised that an opportunity existed to introduce an alternative roof bolt installation technique called ‘spin-to-stall’ (STS) into Australia. STS was first introduced by Anglo American Coal in South Africa, where it has been successfully used for over a decade, though implementation of South African STS resin in Australia has proven to be near impossible. Therefore, a new STS development project was initiated between Anglo American Coal and Jennmar Australia. This paper summarises the journey of this project, the results achieved and the successful implementation of STS at Grasstree mine.CITATION:Emery, J, Canbulat, I, Craig, P, Naylor, J and Sykes, A, 2014. Development and implementation of spin-to-stall resin at Anglo American’s Australian Underground Coal Operations, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 287–294 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By G Byrne, A Bowden

There is often a difference in opinion about the allocation of risk in the establishment of mine closure bonds or financial assurances. From the State’s perspective, protection is needed to ensure that the broader community is not left with the liability of properly closing a mine in the event of a default by the mine operator. Such a default might occur where an operator decides to abandon a site, perform incomplete rehabilitation, becomes insolvent or claims limited liability. On the other hand, mine operators who can demonstrate a strong financial position plus a record of social and environmental commitment and performance, argue that there should be some recognition of this in setting a bond that is less than the full cost of early closure. They argue that a mine rehabilitation bond based on the full cost of early closure is overly conservative and ignores the actual risk of the operator being in default. This paper examines an approach that incorporates the risk of default into the establishment of mine closure and rehabilitation bonds. CITATION:Bowden, A and Byrne, G, 2018. Mine closure bonds (financial assurances) – the ‘how much?’ conundrum, in Proceedings Life-of-Mine 2018, pp 32–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By R L. Grogan

Mining is currently undergoing a progressive expansion into novel environments (such as the deep ocean), commodities (such as tantalum, rare earths, and other ‘green economy minerals’), and new methods (such as the autonomous underwater cutting machines required to operate in the deep ocean environment, or the use of expanding grouts to deliver a blast-free mining method). The advent of novel mining, environments and commodities heralds an era that will undoubtedly start with much discomfort on the part of regulators and stakeholders, due to a feeling of overwhelming uncertainty. These proposed mining scenarios have few precedents, few examples of successful implementation, short baseline monitoring periods, and few examples of legacy sites that may assist with understanding long term risk and exposure. The evolution of the environmental and social impact assessment (ESIA) process in many regulatory environments recognises stakeholder engagement in a formal and facilitated manner. This is a positive step, and allows stakeholders to be much more meaningfully involved in the permitting process than they historically were. However, with this advance comes the challenge of identifying and communicating with stakeholders; sharing information in a meaningful way, fostering relationships with what can be an extremely large group, and delivering on commitments that inspire confidence to permit operations that have never been permitted before. In order to meet this challenge, it is suggested that changes to collection of data, communication of data, the nature of commitments, and the reporting of performance need to be made in order to effectively communicate management of new technologies, and the impacts that mining may have in new environments (such as the deep ocean). The communication challenge is necessarily greater when describing technology that has never been used, or environments that have never previously been accessed by humans on an industrial scale. CITATION:Grogan, R L, 2018. Permitting in the face of uncertainty – how to deliver confidence to regulators and investors, in Proceedings Life-of-Mine 2018, pp 46–48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018