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The history of gold dredging in New Zealand, leading to the develop- ment of the `New Zealand Type' dredge is considered. Much of this infor- mation has come from contemporaneous publications by the New Zealand Department of Mines. Alluvial gold production declined after 1902, and ceased completely in 1982, but is now rising again. The progress of the New Zealand alluvial gold mining industry is considered, together with some of its more exceptional successes. Recent developments are com- pared to those of the past.

Jan 1, 1988

The Wattle Dam gold mine, located near Kambalda in the Goldfi elds region of Western Australia has recently progressed to an underground operation and is now believed to be Australia's highest grade operating gold mine. At end of March 2010, the deposit had reserves of 132 000 t @ 20.8 g/t for 88 000 oz and by the end of June 2010 had produced 110 000 oz from open-pit and underground mining. The Wattle Dam main lode is characterised by very coarse gold mineralisation. Gold occurs as cm to decimetre fracture fi ll veinlets, shear surface coatings and erratic fl akey clusters. The gold has no quartz or silica association and lacks adjacent low-grade mineralisation or alteration assemblage. Geologically it appears atypical of Archaean lode gold deposits and may represent an extreme end member of the type. Definition of the lode is largely dependent on effective geological identification of the host lode zone and an understanding of the erratic distribution and grade behaviour of a high-nugget, coarse gold deposit. Dependence on assay data to defi ne the lode zone would result in the deposit being mined incorrectly and much of the deposit being left unexploited. This paper discusses the geology, coarse gold characteristics and defi nition methods which are used to successfully defi ne and mine the deposit.

Aug 1, 2010

By A Bennett, S Arndt

Minerals and Metals Group Pty Ltd (Golden Grove Mine) commissioned a comprehensive study of the life of mine using advanced 3D stress modelling. Essential input into the modelling was the proposed mining sequence, itself the culmination of years of planning and geotechnical experience gained in comparing actual performance to predictions. The modelling approach addressed the whole of mine at a scale of 5 km. There were however several magnitudes of scale to address, from the scale of laboratory testing (0.05 m), to drive size (5 m), extraction size (50 m) and stope size (500 m). Scaling was therefore an integral part of the procedure. The constitutive rock properties in terms of peak and post-peak behaviour varied with the scale. At the laboratory scale, the constitutive relationships for all the main rock units were determined in 3D as well as recovering the in situ stress using the rock memory technique, deformation rate analysis (DRA), whereas at the larger scale the properties were varied to match observations.The modelling, using non-linear analysis to account for rock mass yield and peak-residual strength, demonstrated that if the planned extraction sequence and stope geometry had been pursued there was a high probability of large volumes of excess shear stress being released. However, it was not possible to identify whether the excess shear stress (ESS) will release as one large event or many smaller events. The mining approach was to modify the extraction sequence/stope geometry to manage the hazard. This is where the economic advantage can be realised.Alternatively or in combination with further modelling, the volume identified with the predicted high ESS or energy release could be intensively explored for structures having adverse orientation to the stress change and with sufficient areal extent to release the ESS. The microseismic data can be interrogated for the likelihood of a large event to support the hypothesis of a singular release versus multiple releases of smaller events. If the initial planned extraction sequence had to proceed as designed, changes to dimensioned stopes would be recommended for risk mitigation. Mine planning could as an option, modify the sequence and the extraction could then be remodelled.CITATION:Bennett, A, Arndt, S and Dight, P M, 2014. The economic advantages of detailed geotechnical assessments for extraction sequencing, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 243–250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By B Saunders, J Carpenter

PanAust’s Phu Kham copper-gold operation (Phu Kham) in Laos is currently limited by throughput in the Semi Autogenous Grinding (SAG) mill. The ability to accurately predict SAG mill throughput (throughput) is therefore critical to accurately forecast copper and gold production. During the fourth quarter of 2016 the proportion of hard unweathered rocks in the mill feed increased, resulting in a period of lower than expected throughput. These low throughput rates prompted a study with the aim of identifying a practical solution for throughput predictions. The study identified an empirical modelling approach based on actual SAG mill throughput rates. The empirical model was then optimised by linear programming to identify the ideal feed blend of unweathered rocks to achieve a maximum SAG mill throughput.Rock strength was the initial focus of the throughput study at Phu Kham because previous studies had identified a strong link between rock strength and throughput. It was determined that there was insufficient valid data to adequately model but sufficient data to qualitatively characterise rock strength. The data identified that the weathering and lithology had a controlling influence on the rock strength. Complicating throughput predictions were operational improvements (changes to blasting and mill settings) implemented in response to the lower than expected throughput. This created uncertainty with the throughput equations. A self-learning empirical modelling method was developed to predict the throughput by incorporating fundamental rock properties with operational practices and improvements. The method is based on the proportion of mill feed with similar weathering and lithology (a proxy for comminution performance) and the actual mill throughput using the SAG mill as the analytical instrument. The modelling method simultaneously incorporated the sum and interaction of unmodelled influences including blasting, crushing and mill settings. The empirical modelling method worked at Phu Kham because the lithology and weathering has an intuitive and observable controlling influence on SAG mill throughput. The modelling method is described along with a worked example of feed blend optimisation using linear programming.CITATION:Carpenter, J and Saunders, B, 2017. Empirical mill throughput modelling and linear programming for blend optimisation at the Phu Kham copper-gold operation, Laos, in Proceedings Tenth International Mining Geology Conference 2017, pp 291–296 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By C M. Stewart

Lithium battery electric powered vehicles and machines (BEVs) continue to gain traction inunderground mining use, with predictions they will dominate the underground light and heavy vehicle fleets for some mines within the next decade. There are clear advantages for ventilation systems through reduced heat output and the elimination of harmful exhaust gases and diesel particulates. However, the risks and effects of BEV fire emergencies for underground personnel and ventilationsystems are still largely in the early stages of analysis and understanding. This paper conducts an industry review of a selection of lithium battery fire incidents and research.A research paper review on lihthium fire behaviour, intensity and toxicity will be analysed and comparisons made with equivalent diesel machinery fires for context. Guidelines for mine firemodelling parameters will be offered to assist in predicting the behaviour, heat and emissions from BEV fires, and recommendations and conclusions will be drawn on the specific hazards of lithium battery fires compared to conventional diesel powered machines.

Oct 12, 2022

By T Wang, D Wang

Photogrammetry-based techniques supported by traditional mapping tools are more frequently used for open pit geotechnical mapping. It fundamentally involves the collection of geological, structural and rock mass data from pit batters when safe to do so. These are essential components for refining and implementing continuous improvements to geotechnical models. The geotechnical model is used to review bench performance, optimise geotechnical design parameters, interpretation and analysis of pit slope stability. This paper is a case study of implementing different pit mapping methods at Mount Carlton gold mine, North Queensland. It critically reviews the tools required, including the Brunton compass, mobile application Clino, geotechnical data mapping software CloudCompare (2015) and Sirovision software. The review compares the image precision, structural measurements and data analysis. The review also underlines mine site management philosophy for safe geotechnical data collection to identify in-pit geotechnical hazards and the mitigation of potential slope instability. Sirovision is a remote sensing system for site geology mapping and interpreting geotechnical characteristics of exposed mining faces. The system utilises off-the-shelf digital SLR cameras to capture stereo photographs of the rock face and uses the latest image processing technology to generate accurate 3D models. These 3D models are digitally analysed using computational geometry to extract unbiased and accurate geological and geotechnical data. CloudCompare processes high accuracy 3D dense cloud rock surfaces reconstructed with photogrammetry software to extract the geological planes using the FACET or Compass plugins. The major discontinuity sets can be observed and the orientation (dip/dip direction) obtained from the algorithm is accurate and reliable for geotechnical assessment, including kinematic and rock slope stability analysis.

Nov 29, 2022

By McLennan T, Howells E, Zastawny H, Watt J. S

Nuclear techniques have been used to determine the solids weight fraction (W) and ash content of (fine) coal in slurries independent of voidage variations. The method is based on the correlation between W and the hydrogen concentration Hsl (wt/wt) of the slurry. Hsl is determined by combining measurements of neutron moderation and ?-ray transmission. Both Wand ash content are determined by combining the above measurements with the ash-sensitive measurement of X-ray backscatter compensated by a measurement of iron K X-ray intensity.The nuclear analysis system, called the SIRO coal slurry gauge, has been proved in a six-week plant trial at the BHP Steelworks washery at Newcastle, NSW. Several probes, each containing a radioisotope source and scintillation detector, were immersed directly into the coal slurry in the feed box upstream from the bank of flotation cells. For 140 samples W, ash and voidage varied in the ranges of 0 to 13 wt percent, 26 to 41 wt per cent and 0 to 4 vol. per cent, respectively. The r.m.s. difference in solids weight fraction, determined by probe measurements and conventional assay, was 0·52 wt per cent. Ash was determined with an r.m.s. difference of 2·0 wt percent in the coal. Better sampling techniques were used in the last half of the plant trial, and r.m.s. differences were 0.35 wt per cent solids and 1·5 wt per cent ash.

Jan 1, 1986

By J M. Nel

Richards Bay Minerals (RBM) has recently undertaken an exercise to improve orebody basal definition. Older mineralisation bases (pre-2005) were highly erratic using old protocol reverse circulation (RC) (also known as Air Core) drilling and interpretation. The erratic nature of this estimation tool, resulted in impractical modelling towards the end of mineralisation (EOM), difficult mine design and unrealistic reconciliation. New protocol drilling, which includes high definition SONIC drilling data, has provided more data to be available for more accurate interpretation. Recent advances in drilling methodology has allowed for better penetration depths for SONIC drilling, which was previously restricted to approximately 80 m (pre-2005). This improved data set allows more emphasis on geological interpretation with factors such as lithology, slime content, and mineral species distribution. These factors when in unique combination enable more accurate and realistic EOM data points. These points are modelled into surfaces using conditional simulation techniques and result in a vastly smoother surface and consequently, a more representative resource.

Oct 5, 2011

By Keele R. A

The Cambrian structure in the Mt Read Volcanics was produced by four deformational events: obduction of forearc-derived mafic/ultramalic complexes in the early Middle Cambrian, a middle Middle Cambrian extensional phase related to the post-collisional Mt Read volcanism and VHMS mineralisation, Middle Cambrian E-W folding, and Late Cambrian N-S folding and basin inversion. The major phase of VHMS mineralisation in western Tasmania is restricted to the very brief period of extensional tectonics within the middle Middle Cambrian. Within this period a N-S graben was produced with a complex series of transfer zones, largely striking E-W. Most VHMS mineralisation is restricted to the top of massive volcanic successions, with several mines close to Cambrian transfer structures. Many of the transfer structures continued to be active until the Devonian. The later compressional Cambrian events are not significant in localising orc formation. Within the Rosebery mine a complex pattern of minor Cambrian normal faults has a second order control on the distribution of the mineralisation.

Jan 1, 1997

Outline of situations when valuations required - from capital raisings and takeovers, stamp duty, rates and capital gains tax, to probate and litigation between joint venture parties. Definition of types of exploration and mining properties as background to discussion on what methodologies to use (from grass roots to operating mine). Discussion on nature of alluvial deposits in New Zealand and how their characteristics and tonnage/grade uncertainties affect choice of methodology. Assessment of risk factors in New Zealand û technical, financial and socio-political (legislation, access, Maori land rights, environmental). Discussion of appropriate methodologies.

Jan 1, 1992

By L Köresaar, J Moilanen

With lower and increasingly variable Fe grades in iron ore resources, the monitoring of Si, Al, Mg and other light elements to meet quality requirements is gaining importance in the iron ore beneficiation industry. The high cost per manual assay and associated manpower requirements often limit the frequency of shift composite samples and laboratory assays. Furthermore, the shift composite assays represent past performance of a plant but are not useful for immediate reactions to feed variations, detection of equipment malfunctions or process control. Automated online analysis of light elements radically reduces the cost per assay and provides repeatable, timely data for process analysis, control and optimisation.A light element online slurry analyser, based on laser-induced breakdown spectroscopy (LIBS) optical emission technique, will be presented. This paper discusses the analyser design for the iron ore industry and also reviews the performance of the analyser against the manual laboratory. Additionally operator safety, user friendliness and maintenance requirements are discussed.A case study will also be discussed in this paper. The sophisticated measurement technique has been implemented in an industrial automated analyser and sampling system to allow for slurry measurement for up to 12 sampling points. However, careful selection of the sampling points and implementation of the sampling system is required for smooth operation.CITATION:Köresaar, L, Timperi, J and Moilanen, J, 2015. Optimised process control in iron ore via online analysis of light elements, in Proceedings Iron Ore 2015, pp 511–518 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Cooke D, Large R

The Cambrian structure in the Mt Read Volcanics was produced by four deformational events: obduction of forearc-derived mafic/ultramalic complexes in the early Middle Cambrian, a middle Middle Cambrian extensional phase related to the post-collisional Mt Read volcanism and VHMS mineralisation, Middle Cambrian E-W folding, and Late Cambrian N-S folding and basin inversion. The major phase of VHMS mineralisation in western Tasmania is restricted to the very brief period of extensional tectonics within the middle Middle Cambrian. Within this period a N-S graben was produced with a complex series of transfer zones, largely striking E-W. Most VHMS mineralisation is restricted to the top of massive volcanic successions, with several mines close to Cambrian transfer structures. Many of the transfer structures continued to be active until the Devonian. The later compressional Cambrian events are not significant in localising orc formation. Within the Rosebery mine a complex pattern of minor Cambrian normal faults has a second order control on the distribution of the mineralisation.

Jan 1, 1997

By J Crosbie, M Lord, R Bitencourt, P Defferrard

The MMG Century mine, which is the largest zinc/lead mine in Australia, began operating in 1999 and ceased mining from the open pit in July 2015, with processing completed in early 2016. Closure plans were developed from 2006, and detailed planning for closure commenced in early 2011 with the appointment of a dedicated closure planning resource. The site will continue to be managed during the active and passive closure phases to complete rehabilitation commitments and demonstrate that closure completion criteria have been achieved.Completion of the mining/processing phase of the project provides an opportunity to reflect on successes, missed opportunities and lessons learnt with respect to planning and execution of mine closure. This paper highlights examples of success at Century and also identifies key learnings and areas for improvement in progressive closure outcomes. Specific examples examine mine planning and execution involving bulk movement of waste rock and construction of permanent waste encapsulation landforms. The paper also provides recommendations for other sites that are planning for closure.Decisions made during the operational phase of the project life can result in a significant increase in closure liability and reduce the likelihood of achieving lease relinquishment. Likewise, it is of paramount importance to assess the consequences and thoroughly understand the risks associated with changes or deferral of closure plans, progressive rehabilitation targets and closure related key performance indicators.CITATION:Lord, M, Bitencourt, R, Crosbie, J and Defferrard, P, 2016. Closure planning lessons Learnt from the Century mine, in Proceedings International Mine Management Conference, pp 207-216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Joy, A Bye, G V. Kizil

This paper demonstrates an application of a recently developed Risk-Cost-Benefit (RCB) Framework to environmental risk management in the mining industry. The environmental application of the RCB Framework as part of an ACARP project (Kizil, Bye and Joy, 2012) involved a thorough selection process with site visits and in-depth discussions with the case study siteÆs environmental management team. Under their guidance, the highest risk of environmental impact at the case study site was identified as æroad subsidenceÆ at the time when the project work was undertaken. This paper presents the unique application of the RCB Framework to examine the risk of mining-induced subsidence and its impact on one of AustraliaÆs busiest highways, with a traffic volume of 38 000 vehicles per day (NSW RTA AADT, 2008). The RCB Framework was employed to assess the optimum group of controls for road subsidence risk management to ensure highway availability while mining occurs. Whilst this paper focuses on road subsidence, the methodology employed can be directly applied to other environmental concerns including preparation for mine closure, rehabilitation planning and waste management. The RCB Framework incorporates mathematical modules which were developed to enable complex yet tightly integrated RCB calculations. The process integrates the risk-control effectiveness assessment to determine that the selected safety initiative is financially beneficial to the mine site and company. This concept has been applied to a number of high-risk mining areas targeting safety, productivity and environmental issues. This paper introduces the five-staged RCB Framework, incorporating the RCB tools RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control-Effectiveness Method), and demonstrates its practical application to the risk management of a road subsidence case study. The case study looks at potential pavement damages, in particular, the occurrence of pavement stepping on the surface of the highway as a result of vertical subsidence. This type of road damage was previously experienced at another major inter-city route while underground mining occurred in the region where the case study site is located. The RCB Framework has been successfully applied to the analysis of the road subsidence case study and determined the risk reduction and financial benefits of implementing a range of risk-controls. User-friendly RCB Charts to provide an aid for decision-making were produced. The value of using the RCB charts to achieve balance between risk, cost and productivity in the decision-making process for risk management has been explained. The case study determined that pavement slots and fibre-optic cable monitoring were relatively low-cost and effective controls applied in the mining industry for the first time at a global level.This paper supports the industryÆs ongoing efforts to manage risk to ALARP (as low as reasonably practicable) and achieve æzero harmÆ by providing a new Framework to more effectively establish the adequacy of controls.CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Application of risk-cost-benefit analysis to highway subsidence due to mining, in Proceedings Life-of-Mine 2012 , pp 197-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By P A. Tilyard

There have been enormous changes in mineral processing in the past four decades. For example grinding mill power has increased by an order of magnitude, regrinding is done to -10 microns and flotation machines are 100 times bigger. Operating staff have unprecedented opportunities for online monitoring and performance control of mineral processing plants. Sophisticated instruments can provide a plethora of data characterising the mineralogy and surfaces of particles. Digital computers allow complex calculations on huge amounts of data including modelling and simulation of machine and plant performance. However, all these changes have not necessarily lead to better metallurgical results. An analogy can be drawn with the thoroughbred racing industry in Australia. Significant advances in scientific knowledge in animal genetics, physiology, biomechanics and nutrition applied to the business have resulted in only a two per cent reduction in winning times for the Melbourne Cup and Caulfield Cup since the 1920s. A critical look at some mineral processing metrics suggests similar failures to improve performance despite putting in more resources. In fact certain parameters such as operating times and plant start-up performance are considered to have remained static or even deteriorated. There has been an emphasis on 'process' at the expense of 'outcomes'. The industry's strength has been in finding technical (or 'hardware') solutions while its weakness has been at the people end of the business in maximising and consolidating the gains from the technologies. Some trends in plant design over these years have exacerbated the apparent deskilling of operating and technical staff. Despite unparalleled options for communications, some staff are embarrassingly uninformed about technical developments in their fields. The 'boom and bust' cycles of the industry, together with trends in tertiary education and the effects of fly-in, fly-out (FIFO) operations, raise serious questions about the sustainability of human capital in the mineral processing sector. This paper by two experienced mineral processing engineers, with contributions from other senior practitioners, reviews these trends. While there may be an element of 'the older we are, the better we were', it is an attempt to identify the issues and propose solutions.

Jan 1, 2009

By J Westh, S Rashleigh, L Gallagher

Mining companies are moving towards automated haul trucks and other equipment. One reason for this is that if automated trucks can operate in a standard pattern over and over again without variation, then human error is reduced, if not eliminated.The challenge for mining production leaders/managers is to ensure operators follow standard operating procedures for load and dump operations, with each operator doing the same thing, every time. However, operators are only human and inconsistent performance is rife at every mine site. The finger may be pointed at the operators for not doing as instructed. The clarity and variability of trainer instructions may be considered causal to the problem. Herein lies the problem. Almost all operators believe they are following the procedure very closely; moreover, they all demonstrate a strong desire to conform to instruction.Using video analysis and feedback, each operator can be shown where and by how much they differ from the benchmark set by their company. Operators, often for the first time, can see definitively what they are doing, compared to industry best practice.The technology utilised by real-time video (RTV) crews measures time, distance and angles. It can overlay the video of the operator at the load site, with video of the perfect pass. Operators are amazed when they see how near to, or how far they are from best practice.The footage and data gathered by RTV assists operators in understanding exactly what adjustments are required to increase proficiency. It also assists load and dump superintendents to identify where in the process they are losing time. When translated to overburden removal or mineral/resource extraction, the result is large production economies without the need for large capital investment in new automated technology.CITATION:Westh, J, Gallagher, L and Rashleigh, S, 2012. Improving safety and mine productivity using real-time video technology, in Proceedings International Mine Management 2012, pp 173-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By H Hoogvliet

The Goondicum Crater industrial minerals deposit is located about 30 km east of Monto, Central Queensland, Australia. Early exploration programs in the 1990s found alluvial ilmenite along the banks of the Burnett River. This mineralisation was traced upstream to the Goondicum Crater. The Goondicum Crater is a topographic feature centred on a roughly circular 6 km diameter layered gabbro complex. Significant ilmenite, apatite, titano-magnetite and feldspar mineralisation are present in a weathered horizon up to 25 m thick. After several drilling campaigns in the Crater and subsequent feasibility studies, the project was developed by Monto Minerals Ltd, an ASX listed company, in 2007. However, the project never achieved production performance expectations and ran out of commissioning funds. The company subsequently went into voluntary administration in August 2008.In 2009, the RMM Capital group, of Brisbane, took control of Monto Resources Pty Ltd, and renamed the company Belridge Enterprises Pty Ltd (Belridge). Belridge commissioned a redevelopment study aimed at recommencing mining and processing operations. As part of the redevelopment study the authors planned a drilling campaign, managed a quality control program and developed a block model. This paper describes the drilling program, analytical procedures, quality control procedures and the preparation of the block model.The block model for the resource estimate was created using 1 m high blocks, wireframes defining the main material types, and 2.5 m thick horizontal search ellipsoids with a radial pattern. The deposit was ‘flattened’ prior to modelling. To assist with the economic evaluation of the project, each block in the model was assigned a net dollar value based on economic parameters provided by Belridge, including anticipated revenues and costs. This modelling technique allowed for efficient investigation of various scenarios and was used extensively in the development and optimisation of the project’s financial model. At a zero net value per block, comparable to a break-even cut-off grade of four per cent ilmenite equivalent, the Indicated plus Measured resource is estimated at 51 Mt, averaging 4.1 per cent ilmenite, 1.9 per cent apatite and 2.5 per cent titano-magnetite.

Oct 5, 2011

By C Hawtin, B Miller, D Ashton

Ernest Henry mine (EHM) is an Iron oxide copper-gold sublevel cave mine located 30 minutes north of Cloncurry in North-West Queensland. The underground mine lies beneath open pit excavations, which were in operation from 1999 to 2011. Fault structures carry large quantities of water from the cover sequence aquifer into the underground mine area. The open cut excavations exacerbates vulnerability of the underground mine to the high intensity wet season storms of northern Queensland. These factors combine to make hydrogeological issues high priority for mine operation. Water-related risks include the cost of removing water from the mine, flooding risk and mud rush potential.Turnover of key technical staff in late 2015 at EHM resulted in the mine being left in an untenable position of losing the primary source of technical knowledge. Due to encouragement of cross-disciplinary activity coupled with workload and resource sharing, the management team were confident in utilising on-site personnel to offset loss of experienced personnel.Remaining geology personnel took additional responsibility for hydrogeological monitoring equipment and planning of upcoming work. Consultant input was limited to review only and an emphasis was placed on knowledge transfer to the geology team. Using this strategy, a 13 hole dewatering program was successfully implemented, achieving a significant water level drop in areas of elevated hydrological risk, whilst also upgrading the hydrological monitoring sensor array.Through a development program centred on cross-disciplinary exposure, the technical team was able to retain key technical knowledge despite staff turnover and produce strong results outside traditional training and roles. This paper serves as a case study on the methods, strengths and drawbacks of putting a focus on cross-disciplinary exposure as a method to combat staff turnover.CITATION:Ashton, D, Miller, B and Hawtin, C, 2017. Go with the flow – managing hydrogeological staff turnover at Ernest Henry mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By B E. Hall, J Poniewierski, A J. Hills

Following a review of life-of-asset work at MMG’s Rosebery mine in which a proposal to increase production from 0.8 Mt/a to 1.2 Mt/a was mooted, questions were raised as to the seemingly arbitrary reasoning for the production increase. They included: Did the proposal actually add value? Was the production rate from the mine sustainable? Was it the best identifiable value-adding configuration?A multiple scenario analysis study commenced to model how various cut-off grade values against mill throughput, along with associated capital expenditure, would impact on the potential value of the operation. This was carried out utilising the ‘hill of value’ approach promoted by AMC Consultants.The traditional approach to these studies uses a constant cut-off value (NSR – net smelter return) for the whole mine analysis. This was thought to potentially introduce a large amount of variability to the model as different ore types were thought to have different processing costs and different underground lenses were thought to have different mining costs. With the aim of developing a consistent value measure that would be comparable between the lenses, an alternative measure was suggested for all ore block values in this model, irrespective of lens location.The new measure used was a mine variable value (MVV). This allowed for the variable factors of final metal concentrate production to be removed from the ore value. From a mining point this was the haulage distance from ore source to run-of-mine (ROM). For the mill it was the amount of reagents required, varying based on grade together with the amount of power required for crushing, grinding and tailings handling.From the initial run of the model, preliminary results lead to a conclusion of increased value being gained by either increasing cut-off grade or increased mill throughput rate. The validity of the result was tested using alternative price scenarios, which although changed the absolute value achieved did not significantly change the identified value-adding strategies. The realisation of these value increases identified are however contingent on higher sustainable development rates being able to be achieved mine-wide, higher backfilling rates being able to be achieved and overcoming recognised ventilation constraints. Further detailed studies are being put in place to identify the practicality of overcoming these recognised constraints and achieving the higher-value strategies identified.The ongoing objective of the hill of value model built is to keep the model alive as a life-of-asset planning tool and to continue refining the foundation data, such that various mining strategies can be analysed with increased confidence.CITATION:Hills, A J, Hall, B E and Poniewierski, J, 2014. Mining scenario analysis and mine variable value, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 111–118 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By J Jackson, D C. Curry, A C. Keith

Australian Bureau of Statistics (ABS) data shows that since 2006 the balance of capital costs associated with mine development has become weighted greater than 75 per cent to enabling infrastructure and less than 25 per cent on process plant, equipment and machinery. The well-developed mine planning techniques including pit optimisation and scheduling and process plant design and optimisation have typically proceeded in a linear fashion from geology, mine planning, through processing, with some iterations back to the mine. Only then is attention paid to planning and costing of enabling infrastructure in any detail.Optimisation has typically involved developing cut-off grades, mine plans and schedules and ore processing that produces maximum economic ore. Infrastructure has then been sized æto suitÆ the mining and processing core business drivers.What the ABS data, together with global trends, indicates is that infrastructure can no longer be an afterthought if miners wish to achieve robust project value estimates, realistic ore to market costing and resource statements based on achievable economic cut-off grades.In addition, with such a large proportion of the costs originating from non-mining or processing activities, a mining operation can only be truly optimal if these aspects are given due consideration in the mine design stages, based on quality geometallurgical inputs so that the size and cost of enabling infrastructure is optimised to maximise project value.This paper outlines an iterative holistic approach to mining project development, which integrates the geometallurgical approach and enables infrastructure planning into project design and evaluation. It presents case studies showing reduced overall costs, increased net present value (NPV) and reduced project delivery timelines.CITATION:Curry, D C, Keith, A C and Jackson, J, 2013. Is a 2.5 per cent success rate good enough? Traditional mine development methods have the tail wagging the dog, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 113-128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013