Search Documents

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

Jan 1, 1994

By R Espinosa-G=mez

Industrias Pe±oles, S A de C V (Pe±oles) in Mexico, is a major silver producer. The Pe±oles mining division has eight operations and the flotation process in seven of them to concentrate the metal and mineral values. Common metal and mineral values are: metallic gold and silver; gold-silver alloy (electrum); silver sulfide minerals (acanthite, pyrargyrite, freibergite, proustite); lead sulfide (galena); zinc sulfide (sphalerite); and copper sulfides (chalcopyrite and bornite). This paper aims to share Pe±olesÆs mineralogical and metallurgical information on the seven operations where the flotation process is used. Some basic conclusions are drawn from this analysis. Some of the information presented includes: types of orebodies, concentration processes, concentrator throughputs, head grades, concentrate grades and recoveries. Importantly, grind size and liberation values for the main mineral species are presented along with the relationships between sphalerite liberation and its recovery, and galena liberation and its recovery. Also included are three mineralogical case studies: maximisation of silver recovery at the Fresnillo mine producing a silver-zinc concentrate; options to improve gold recovery at the Tizapa mine; and sphalerite iron content for the different orebodies.

Jan 1, 2005

By Conway KM

The traditional role of Australian Consultants in project development has been until recently restricted to the provision of discrete packages for survey and engineering services during the feasibility, design and construction phases of a project. Management of such projects was the province of the owner/developer or his agent. However, Australian Consultants are now being con- sidered for an expanded role on resources Projects.

Jan 1, 1983

By A Ruotsalainen

Mining industry sees a comprehensive future in optimisation and process control. High resource utilisation is a starting platform when lower operational costs with higher rate of return are the target. Simulation is quickly penetrating the mining industry as a planning tool. A discrete event simulation helps to visualise the reality of a mine and the various mining processes, which typically include a fair degree of complexity. What-if scenarios can help to determine the impact of occurring changes to production. Understanding of critical points in the layout and resource allocation at an early stage can help to optimise the material flow. The obtained information may then be used as proposal or confirmation of the system applicability and economy. Simulation is a way to fine-tune and optimise the resources within. It helps to predict system sensitivity to various aspects. Although simulation today is used typically in a feasibility stage, there is an opportunity to continue using simulation for further process enhancement. In the future simulation will without doubt be used increasingly as a dynamic simulation and continuous improvement tool. This paper discusses the use of OptimineÖ simulation tool in resource optimisation. Some examples describe the way the tool operates and how it helps to view the technology, mine layout and operational data.

Jan 1, 2003

By G C. Kiel, G J. Nicholson

Corporate governance has never been more topical. A glance at any major newspaper or business publication will reveal a litany of corporate failures based upon the governance of the organisations involved (eg Byrne, 2002; Hayes, 2002; The Economist, 2002). The increased compliance requirements and speculative nature of our industry means that corporate governance systems are, if anything, more important than in the general business community (Arthur, 2001). Rather than focus exclusively on the contribution of governance to corporate failure within the mining industry, however, our objective in this paper is to examine how boards can add value to the corporations that they govern. In order to highlight how a board can add value to a company, we commence by outlining the role of the board in the modern corporation in general and the mining industry in particular. We then introduce the concept of shareholder value and identify the steps on which a board needs to focus to enhance shareholder value through value tracking processes. Our discussion pays particular attention to the importance of organisational culture to the companyÆs activities and utilises three case studies from the mining industry. We conclude with an overview of what mining boards can do to enhance their culture and drive performance changes for the benefit of the companies they govern.

Jan 1, 2002

THE writer of this paper well realizes that the majority of engineering and metallurgieal works have from time to time evolved mechanical devices which are of great value as regards application in an operating plant.Many of these deviees would not be apparent to an individual making a brief inspection of works such as these, and it is for this reason that the writer proposes to outline a few of the devices which have been evolved by the engineering department of the Broken Hill Associated Smelters Pty. Ltd.NOVEL METHOD OF MACHINING A SPHERICAL JOINTFig. 1 represents one half of a casing for a ball-joint coupling. In the ordinary methods of boring an external spherical casing, that is with a radius bar attached to the tool rest of a lathe, there is always an error in the bore. It has two flat sides, and this error is inherent in the ordinary orthodox method and cannot be corrected. The engineers of the Broken Hill Associated Smelters Pty. Ltd. undertook a job that had to be extremely accurate, and the tool shown in Fig. 2 was evolved. The tool is not exactly fool proof, but in the hands of an average mechanic an absolutely perfect FIG. 1. sphere can be bored. The casing has to be held in the lathe in such a manner that one half can be removed without affecting the setting of the work. The business end of the tool is then placed inside the...

Jan 1, 1922

The purpose of any feasibility study is to determine whether a particular investment or management program will enhance shareholder wealth by, for example, producing an economic return in excess of the cost of equity capital.The threshold rate of return conventionally used in gold feasibility studies is higher than the cost of equity capital, meaning that some viable projects are wrongly described as being sub-economic with their development deferred.Is the industry failing to fully realise its potential? Aside from important technical considerations that determine the cost of exploiting inground inventories, feasibility studies need to incorporate expectations about future gold prices, exchange rates, interest rates and tax rates.Rather than revert to speculation, insights from capital markets give a rigorous framework in which these parameters can be determined for feasibility purposes. Separate questions sometimes, and then inadequately, addressed by feasibility studies include: ò Is it optimum? Many projects are expanded soon after project commissioning - what does this say about the quality of the initial feasibility study? Moreover, does the rate of extraction really matter? ò What is it worth? Although feasibility studies are designed to address viability rather than valuation, such studies are never- theless used by the industry as further evidence that the equity markets have got it wrong again! More likely the problem is with the financial slide rule being used. ò Can it be debt financed? The bankable feasibility study has entered the vocabulary of the gold mining industry but what does it mean? Does it matter anyway how the project is to be Financed?

Jan 1, 1991

By Gray J, Krouse HR, Changkakoti A, Kwak TAP

The Dachang tin field with more than one hundred million tonnes of ore at 1% tin and 3% Zn is one of the largest tin fields in the world. It comprises five carbonate replacement tin deposits, of which the Changpo deposit containing about 80 million tonnes of ore at about 1% tin is the largest deposit. The deposit, hosted by middle Devonian limestone, argillaceous limestone and black shale, is genetically related to the Longxianggei granite.The oxygen, hydrogen and carbon isotope data of minerals, rocks and fluids suggest a magmatic fluid which evolved during the crystallization of the Longxianggei granite. Mass balance calculations show that the depletions observed in 180 and 13C values of calcites from the ore bodies to the country rocks were due to continous isotopic exchange reactions between the magmatic fluid and the marine limestones at different W/R ratios and between 300 and 600¦C.

Jan 1, 1990

By S Grano, M Fordham, H Manouchehri, J Curral

This paper focuses on the impact of high pulp temperature on sphalerite flotation after the zinc regrind circuit in the Zinc Plant of Somincor, owned and operated by Lundin Mining Corporation. In the zinc circuit, the zinc rougher concentrate is reground with forged steel media before flotation with one stage of roughing and scavenging, and three stages of cleaning to obtain a zinc final concentrate (zinc grade >50 per cent). After regrinding, sphalerite flotation has been found to be seriously affected by high pulp temperature which may occur during the summer months. Mineral recoveries were found to be seriously reduced at pulp temperatures above 60¦C. At this high pulp temperature, neither elevated copper sulfate concentration nor a decreased pH alone appreciably increased Zn recovery. However, a combination of these two (eg a decrease in pH from 11.5 to 10.8, and an increase in copper sulfate dosage from 400 g/t to 800 g/t) was found to reduce Zn depression at high pulp temperature. At pulp temperatures below 45¦C, the negative influence of pulp temperature on mineral recoveries was minimal. A systematic series of flotation tests and solution/surface analyses were performed to reveal causes for poor sphalerite flotation at high pulp temperature after regrinding. The decrease in mineral recovery was shown to be associated with variations in the surface species on mineral particles in response to the increased pulp temperature. These variations in the surface species include collector desorption and superficial oxidation to form lead/zinc oxide/hydroxides on mineral particles. The influence of the type of regrinding media on sphalerite flotation at high pulp temperature was also addressed in this work.

Jan 1, 2008

By P Cepuritis, G Chitombo a, I Brunton

There is a significant amount of past evidence that links blasting and occurrences of slope failure. Particularly of great concern at Telfer Gold Mine is the effect of open pit blasting on the stability of the footwall slope above the underground portal and the stability of underground structures. For this reason, Newcrest Mining Ltd invited JKMRC to conduct necessary field measurements and numerical modelling with the following objectives:assess the dynamic stability of the footwall slope above the portal; assess the characteristics of current and future blasts in the open pit; and prepare open pit blasting guidelines that will minimise the detrimental effect of blasting on slope stability. To achieve these tasks it was necessary to develop a scaled distance attenuation curve for blast vibrations. In order to validate the developed vibration attenuation curves it was necessary to monitor vibrations from a production blast. Using JKMRC blast design software tools, the vibration of the production blast was also modelled from the blast design and vibration results from single hole blasts. The intention was, assuming that the observed and modelled vibrations were close in terms of frequency and amplitude, to use the software tools to model the vibrations of future blasts and assess their likely effect on slope stability. Numerical modelling of the dynamic stability of the footwall slope was done using the FLAC finite difference code and the UDEC distinct element code. The results of the numerical modelling and of the field measurements of the blast induced ground vibrations were combined into the blast design rules that relate distance between the slope and the blast, charge weight per delay and number of blasts necessary to cause failure of the slope.

Jan 1, 1999

By F R. A Jorgensen, G W. Jensen

A pilot scale experimental investigation of the condensation of zinc vapour from smelter off-gases was performed in conjunction with a mathematical modelling study of the system. The work investigated the feasibility of using the high heat and mass transfer rates associated with a fluidised bed to condense zinc directly from smelter off-gases containing zinc vapour. Of particular interest was whether zinc would revert to zinc oxide during the process of condensation, and whether a zinc fog would form and be carried out of the condenser. A 0.1 m diameter fluidised bed condenser was mounted on the top of a 200 kVA DC electric arc furnace in which mixtures of vapours and gases were generated at 1150 - 1300¦C. The gas/vapour mixtures investigated included Zn/N2, Zn/N2/CO/CO2 and Zn/N2/H2/H2O. Greater than 90 per cent of the zinc was deposited on the zircon sand bed of the condenser, and there was no sign of zinc oxide formation, suggesting that the rate of heat transfer was faster than the reaction rate for zinc oxide formation. There was also no evidence that fog was being formed in the condenser. Using the methods of Kunii and Levenspeil (1991), a mathematical model was developed to predict the behaviour of the fluidised bed condenser. The model enabled the distribution of gas/vapour temperature and bed temperature to be determined as a function of distance from the condenser inlet. Similarly the partial pressure of zinc vapour in the gas mixture, and hence the mass transfer rate of zinc to the particles, was determined. Experimental data allowed validation of the predicted bed and gas/vapour temperatures.

Jan 1, 2000

By I Ametov, G Levay

It is now common practice to use substantial amounts of recycled water in mineral processing plants to minimise both environmental discharge and withdrawal of fresh water from often limited water resources. Recycled water additions to process water are frequently obtained from sources such as tailings dams, tailings thickeners and concentrate dewatering. It has been suggested for some time that addition of recycled water to process water will impact the quality of the process water and that changes in water quality may influence flotation performance. To date, investigations of process water quality changes as a result of water recycling have been limited and as a consequence there are very few data available to substantiate these ideas. Thus the impact of recycling on process water quality remains largely unquantified. Over recent years we have conducted water quality studies at a number of mineral flotation plants with varying degrees of water recycle. This paper describes the results of these investigations, including data which suggest that build up of salinity due to recycling while it occurs, is reduced by fresh water make-up. The fate of flotation reagents such as collectors, promoters, frothers and flocculants during process water recycling has also been investigated. Results show that process water concentrations of these reagents vary from plant to plant, but that, with the exception of frothers, most reagents are generally removed from the system through mineral adsorption. In general, the results of these investigations suggest that recycling process water will not result in continuous increase in solute concentrations as appears to be the commonly held view.The effects of changing water quality on flotation can vary. In many cases, flotation conditions can be optimised to suit the water quality, while in others, treatment of the water may be necessary to obtain acceptable plant performance.

Jan 1, 2009

By D A. Williams

The conventional method of transporting mine tailings from a process plant to a tailings storage facility (TSF) is in the form of a low to medium density1 slurry, which can be pumped using centrifugal pumps. Over the past several decades, therefore, mine operators have generally adopted this default approach. There are, however, some convincing arguments why consideration should be given to thickening the tailings slurry to a higher density paste consistency. In particular, the minimisation of environmental impacts, the reduction in water consumption and the cost savings relating to TSF closure make paste an attractive option for the life of mine tailings disposal. There are several environmental impacts that are associated with a conventional slurry TSF, such as land sterilisation, aesthetics, dust, seepage and acid mine drainage. Some of these impacts, such as dusting, may be difficult to mitigate while the TSF is in operation. Others can be influenced by adjustments made to the tailings slurry density at the plant. Unplanned fluctuations in slurry density and/or viscosity can have a significant influence on TSF performance and can exacerbate the environmental impacts relating to the facility. Relatively minor changes in the solids content of the slurry can affect tailings beaching behaviour, degree of segregation, position of the phreatic surface, amount of freeboard, consolidation behaviour, placed (settled) density (and hence TSF capacity) and in situ strength of the tailings. Paste is a non segregating slurry and many of these effects can be minimised at the TSF when the tailings slurry is thickened to a paste. These improvements are manifested by reduced seepage, flexibility in selecting an appropriate final landform, ability to rehabilitate progressively and reductions in plant water usage. It is possible to minimise environmental impacts of a TSF through the use of tailings paste. Ideally the paste production plant should be part of the initial design of the process plant. However, significant benefits can be gained by adding a paste production plant at some time later in the operational life of the mine to reduce environmental impacts and facilitate an environmentally acceptable TSF closure.

Jan 1, 2002

A mining joint venture presents a real management challenge to achieve harmony with the other participants in the successful development and operation of a mine. This can best be facilitated by a detailed agreement and guided by a set of joint venture principles which recognise the differences of the interests of the parties and seek to establish sound business and personal principles by which differences not anticipated in the agreement might be resolved. The major and minor co-venturers can and do present potential difficulties to one another. This paper, one of the pair in the joint venture panel discussion session, predominately presents the minor's viewpoint. Usually commercial matters such as project finance, areas of interest, divestment, pre-emptive rights and decision-making can be adequately covered in the agreement. However, when the parties disagree and have difficulty in resolving their differences, the joint venture principles should be used to advantage to resolve relationship difficulties.

Jan 1, 1997

By L Ryan, S Halley

The use of a field spectrometer to systematically analyse drill samples from over 200 holes around the Permian-Carboniferous Ravenswood gold deposits in north-east Queensland has successfully identified both small and deposit-scale changes in the alteration mineral chemistry. Changes in chlorite composition within the tonalite host rocks are evident at the district scale, with Fe-rich chlorites seemingly more common in the vicinity of the deposits. Significant variations in white mica chemistry also occur, but mostly on the vein selvage scale, with no clear distinction between near-mine and distal compositions. The results indicate that chlorite compositional maps produced from regional field or airborne spectrometer data could potentially be used as a vector to ore in exploring for similar deposits in the area. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

The mining industry has had lengthy experience with risk management involving technological situations imposing risks to people and property. In such situations the relevant parameters can be fairly well defined, the outcomes can be broadly predicted and probabilities of these can be estimated. Accordingly quantitative risk assessment can be applied. In recent years there has been increased emphasis in risk management on a broader set of potential consequences. These include potential impacts on the flora and fauna of ecosystems. These are typically poorly understood and this is especially true in Australia where the vast size of the continent and sparse population make gathering a comprehensive data base on biological resources a difficult task. The resulting scientific uncertainty and ignorance regarding the potential for serious or irreversible harm to the environment mean not only that quantitative risk analysis techniques are not appropriate, but also that the precautionary principle (PP) needs to be applied as a complement to qualitative ecological risk analysis. The potential for significant impacts is particularly high in Australian ecosystems. These comprise one of the 12 æmegadiverseÆ regions of the world in terms of biodiversity and, hence, have global significance. Moving from risk management to application of the PP by the mining industry provides a significant challenge. Application of the PP has no clear guidelines to follow and, to-date, has been highly unpredictable. However, there is much to be gained for industry in embracing this challenge and taking a pro-active approach in exploring methods that will provide for clearer guidelines and hence more certainty in outcomes of environmental management decisions involving precaution. As well, there could be considerable other advantages for the mining industry in terms of reputation assurance, community acceptance and greater certainty in terms of access to resources.

Jan 1, 2000

By Biswas AK, Hayes P

During the reduction of iron oxide pellets in the blast furnace it has been found that catastrophic swelling (up to 300% volume increase) can occur. Although the burden preparation conditions can be designed to avoid this phenomenon the exact reason and mechanism of the swelling has yet to be clearly identified. Swelling of the burden is undesirable since it reduces the interparticulate voidage in the blast furnace thus reducing gas flow through the stack resulting in low production rates of iron. The present study differs significantly from previous experiments in that reduction is carried out on single crystals of wustite thus the problems of control of gas composition and specimen preparation are minimised. The microstructures formed on reduction have been examined by optical and scanning microscopy. Pure wustite and wustite doped with various levels of CaO have been examined after reduction in controlled CO-CO 2 gas mixtures at 968¦C. The catastrophic swelling on reduction coincides with the formation of an unusually open iron structure in which the iron appears as whiskers or needles as previously reported. The spacing and thickness of the needles are shown to vary with impurity content and gas composition. Metallographic examination has shown in addition, however, that the whiskers do not necessarily constitute the only product form of the iron produced and in CaO containing wustites with less than - 2% CaO there is a transition from needle growth to porous growth of iron. Thus the % swelling of the oxide particles is dependent on the initial size of the oxide grains. Samples of FeO - 10% CaO exhibited a previously unreported product inorphology associated with the nucleation of 2CaO.Fe203.

Jan 1, 1980

This paper provides an insight into the current status of risk management practices within our industry, based on an industry wide survey, with deliberate cross-reference to quantitative analysis. This survey showed that quantitative assessments appear to be mainly hampered only by the lack of reliable data and industry expertise to carry out such assessments. A short case study will illustrate some of the necessary basic tools and data types that would enable the industry to tap into an additional range of business improvement dimensions to more effectively manage the diverse and changing risk profile of the mining sector.

Jan 1, 2003

This paper deals with the Australian taxation laws, and in particular the income tax laws, as they apply to mineral exploration and development both in Australia and off-shore. The Australian tax laws are imposed principally at a Commonwealth level. The most important Commonwealth taxes are Income Tax, including Capital Gains Tax, Fringe Benefits Tax, Sales Tax, Customs Duty, Excise Duty and Bank Accounts Debits Tax. The States of Australia impose Stamp Duties and Financial Duties, Payroll Tax and Land Tax. The Australian Income Tax Law including Capital Gains Tax, is the most significant tax in the country. The principal features of the income tax law are as follows: tax is imposed on a taxable income being the assessable income less allowable deductions; a full imputation system of company tax applies; a foreign tax credit system applies to both companies and individuals; capital gains are taxed as income and subject to income tax rates but the gain is inflation adjusted. Australia has negotiated tax treaties with most of its trading partners based on the OECD model; and special tax concessions apply to the mining industry.

Jan 1, 1987

This paper passes on some personal insights into what helps to make a well-executed feasibility study. Lessons learned are illustrated with examples from the authorÆs experience. Lessons include the place of the preliminary feasibility study, credibility, ore reserves, the use of expert consultants, responsibilities and challenges for the ownerÆs representative, technical tools for the study manager, the human side of project organisation and dealing with technical auditors.

Jan 1, 1998