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During the 1998/99 Asian crisis Solid Energy's export revenues collapsed from over US$70M to under US$40M. Simultaneously, domestic market uncertainty led to decreases in volumes and prices. A major new underground mine was not technically viable, and was closed, and several other mines were marginal. Less than two years later, Solid Energy and its JV partner closed a second new underground mine. The company was in financial crisis, and reported an $86M loss for 1998/99. After refinancing with stringent workout conditions it still had minimal returns due to low prices, unaffordable transportation costs and huge unrealised FX losses as the NZ dollar fell 40 per cent in value. The obvious scenario was to æcash upÆ û complete extraction at remaining mines, sell off any viable parts of the business, pay off debt and wind the company down.In 2002 Solid Energy has completed its recovery. Although margins remain slim and volatile in both export and domestic markets, it is achieving record volumes and revenues. It has paid off its shareholder loan, has minimal remaining FX losses, and cashflow is allowing further mine and infrastructure development. The key to the turnaround has been implementation of rigorous planning, analysis and decision-making in all aspects of the business. The company has a comprehensive, rolling 20-year plan used annually to update rolling five year and annual business plans. Solid Energy augments strong line management operations with rigorous standards and processes for mine planning and development, operational decision-making, and functional support. Detailed, quantitative risk analysis is used in all aspects of the business and allows comprehensive integration of opportunity and risk management across all activities in the company.Coal mining is widely perceived as an æold-economyÆ industry. But, like other successful æold economyÆ companies, the information systems and management processes used by Solid Energy are as leading edge as any in the high-tech sector. They are the key to managing to add and sustain maximum value for a company that has access to coal resources sufficient for hundreds of years.

Jan 1, 2002

HAPPENING to be in Cue recently the writer was unexpectedly called upon to make surveys of some diamond drill bores on the Big Bell mine on the Murchison goldfield. The owner of the mine Mr Herman Mandelstam. had brought such apparatus with himas he could lay his hands on. and no other was available without prohibitive delay.The usual method of making these surveys as is well known is by putting a glass tube half filled with gelatine or glue in a melted state down the hole with a small magnet freely suspended in the glue and having it there till the glue sets solid. When this tubeis withdrawn (its depth down the bore being noted) the bearing and inclination of the borehole at this particular point can be read - the bearing by the compass and the inclination by the angle between the tube and the surface of the glue which of course ishorizontal. By taking a number of these observations according to the degree of accuracy required the course of the bore can be fairly accurately plotted.In dealing with dry holes there is little trouble but when the holes are full of water great difficulty is experienced. In the case in point the first observation was made in water 300 ft. deep, corresponding to a pressure of 130 lb. per sq. in. The tube containing the gelatine and glue (a mixture was used) was found, when hauled to the surface, to be completely filled with a weak mixture of water, gelatine, and glue and there was no horizontal surface from which to measure the angle of inclination of the bore. The water had been forced through the corks and sealing wax with which the tube had been closed. After several attempts it became obvious that no method available would keep the water from getting into the air-space in the tube, and to a pressure-proof metal container was impossible, nothing remained but to do away with the air-space and this was accomplished by using two liquids of different specific gravity - mercury and melted glue. The tube...

Jan 1, 1930

A major new mine to be developed at Pike River during 2005 has been designed to have a minimal impact upon the environment, and an overall net conservation gain. The Pike River Coalfield is located on the West Coast of the South Island of New Zealand on the top of the Paparoa Range approximately 46 km north east of the coastal town of Greymouth. Pike River Coal Company Ltd (PRCC) holds a 40 year mining permit over the coalfield.   In October 2004, the Minister of Conservation granted PRCC access through 1.25 km of Department of Conservation land via an access agreement, and the Environment Court issued a number of consents for the development and operation of the mine, in addition to some existing consents.   The underground mine at Pike River is located under land administered by Department of Conservation, and has been designed to avoid or mitigate adverse environmental effects and integrate into the natural bush surroundings. The mine process has been designed to operate within an environmentally sensitive area and will incorporate technologically advanced methods of mining and processing. The mine process involves hydro mining of the coal, and transportation via a 12 km coal water slurry pipeline, to a dewatering complex located on PRCC land. This will ensure that traffic in the Pike River Catchment up to the mine is minimised.   An extensive series of management plans and monitoring programmes will be used to ensure that the environmental effects of the mine activities are minimised, by evaluating the performance of managerial procedures, and physical mechanisms in place to avoid or mitigate the effects. Trial mining and substance management plans in conjunction with an orthophoto and surface monitoring protocol will ensure that surface features, and water ways are protected from any adverse effects. The Blue Duck enhancement, and pest and predator control programme will help ensure that an overall net conservation gain is achieved.   Developing transparent working relationships and good communication with Department of Conservation, Iwi (Ngati Waewae and Ngai Tahu), and local environment groups has been and remains very important in the development of this project.

Jan 1, 2005

By Eupene GS

The valuation of exploration properties which contain no identified resources or reserves is the most subjective of all valuation tasks likely to be carried out by a geologist. The geoscience rating method proposed by Kilburn (1990) recognises this inherent subjectivity but also attempts to apply some discipline to the valuation process. Some other methods used for valuations of this type clearly lack discipline and are open to misuse and abuse. The Kilburn method essentially requires the practitioner to justify all aspects of the valuation process. The valuer must specify and, more importantly, quantify aspects which enhance or downgrade the intrinsic value of each property. The intrinsic value is called the ""base acquisition cost"" (BAC) and it represents the average cost to identify, apply for and retain a base unit of area of title. The BAC and base unit of area both vary with different types of exploration and mining title but remain constant for similar types of titles in the same mineral tenure regime. In the Kilburn Method the enhancement/ downgrading factors are determined by the geotechnical prospectivity (Kilburn Method) within the title. A modified version of the Kilburn Method presented here (""Modified Kilburn Method"") also focuses attention on other real variables besides the geotechnical attributes which influence valuations of this type, viz., competition for tenure and activity in the markets in which the exploration properties are being traded. The most active such market at present is the stock market. By utilising uniform BACs and base units of area (for similar titles) for all exploration properties (in practice in Australia this is only possible within a particular State or Territory), the method exposes the valuer's opinions of each of these variables to the scrutiny of the investor. The investor (or his professional adviser) is afforded the opportunity to directly compare valuations on different properties by different practitioners and can assess how the final valuation is weighted in respect of geotechnical prospectivity, competition for tenure, and stock/financial market sentiment. No other method currently employed in Australia to value mineral exploration properties affords the investor this `luxury', which some may argue is their right.

Jan 1, 1994

By J Emslie

Newmont AustraliaÆs Callie Underground Gold Mine is located on the Dead Bullock Soak Mining Lease, approximately 600 km NW of Alice Springs, NT, in the Granites-Tanami Goldfield. Dead Bullock Soak is part of NewmontÆs Tanami Operations, which also include the Granites Gold Mine and processing plant, Groundrush Open Pit and Tanami Mill. Callie is a world class Proterozoic gold deposit; production to date is in excess of 1.7 million ounces, with an additional Proved and Probable reserves at the end of 2002 of 10.8 Mt at 6.3 g/t. Gold mineralisation at Callie occurs in thin (1 - 30 mm) steeply dipping quartz-chlorite sheeted vein system that cuts across a 40¦ plunging folded sequence of medium to fine-grained metasediments. While the vein system is highly continuous, the gold distribution is highly variable and is controlled by the interaction of lithology, alteration, structure and vein density. The mineralisation is commonly coarse-grained and has a relatively high nugget effect, consequently the orebody is problematic to estimate and shows a high degree of sensitivity to drill hole density. Resource modelling at Callie is an example of a geologically driven model that has evolved with increasing data and understanding. Lithological and structural models are employed to define domains within which the grade estimation is undertaken using multiple indicator kriging. This gradual model evolution impacted greatly on the selection of the mining method. Uncertainty in the estimation of the orebody was a significant factor that led to sublevel open stoping with cemented aggregate fill being adopted as the mining method to improve extraction selectivity. Callie often shows strong positive reconciliation compared to the mill. The mine geologistÆs face the challenge of limiting the degree of underestimation of the core of stopes whilst ensuring that stope boundaries are not conservative. This can only be achieved through the mapping of subtle geological features in order to confirm the orebody model. The increased use of the geological mapping has improved our understanding of the controls on mineralisation and has been extended into the development of new models for near mine underground exploration.

Jan 1, 2003

There was a time, in the memory of some here tonight, when the annual meeting of The Institute was a nostalgic occasion. Often, in the 1920s, there was comment on the decline of Australian mining and on the lack of new mineral discoveries. When some of our Presidents prayed then for a new Bendigo, and instead were given a Mount Isa, they were justifiably disappointed because of the vastly different capital requirements.In 1967 the mining picture is very different. The recent mining developments in Australia are certainly as important as several Bendigos and several Kalgoorlies. The mining industry in Australia has never been more dynamic than today (Table 1). And if we ask why it is so dynamic, the answer lies in the role which overseas capital is playing in the industry. The contribution of overseas capital should concern us not only because we are members of the mining and metallurgical profession, but also because we have a duty to make our profession contribute as much as possible to the well-being of Australians. It is not sufficient to argue that overseas capital is good for the mining industry; we must also examine whether it is good for the economy and the nation. In this context the current criticism of the inflow of overseas capital into Australian mining is useful, for it gives us an opportunity to see what has resulted from the inflow.In discussing this question I do not suggest that we emulate Captain Hancock, that legendary Moonta mine manager who, according to Oswald Pryor's cartoon, used to say to his miners: "When I say a thing is, it is, even if it isn't". The question can only be discussed on a factual basis; and I would submit that many of the important facts relating to overseas capital in our mining industry are often overlooked or ignored. I would further submit, on the basis of these facts, that Australia's present day mining industry has been largely built on overseas capital and that the overall benefits of that capital to Australia have been enormous.

Jan 1, 1967

It is usually the case that the short-term plannerÆs role is occupied by the younger site mining engineer. ThatÆs because mine scheduling is generally seen as a mundane and thankless task. But, short-term planners play an extremely important role in maximising the value of the mining resource, generally the companyÆs biggest asset. A look at any mining operation today will expose the competing drivers behind the operational and strategic plans. Operations are too often faced with pushing short-term constraints. It is the responsibility of the short-term engineer to answer the question of æWhere to next?Æ. In answering this question the young mining engineer is in an environment overflowing with urgency and constraints. Hasty decisions made at this time may have significant adverse consequences to the long-term value of the resource. Long-term strategy must address a broad and expanding number of issues that are generally overlooked by the short-term planner. It takes a holistic, rather than the prescriptive approach of short-term planning to determine the best strategic direction for the operation. To better understand the consequences of decisions made at the operational level short-term planners need better vision of the whole business. The key to improving the mining business is a planning process that integrates the short-term planners role with the overall mining strategy. Future developments in the mine planning process will focus on bridging this ædisconnectÆ between the operational objectives and the long-term goals. Improvements will come from the tools which planning engineerÆs use, and the planning methodology surrounding them. There will be significant hardware improvements to improve the speed with which a short-term planner can evaluate plausible options. Software that maximises the use of the improved hardware will be developed. Complimenting these technological improvements, conceptual methodologies of mine planning will improve to allow strategic planning to be brought within the focus of the short-term planning engineer. In todayÆs mining industry the young mining engineer is embarking on a career where business processes are paramount. This paper discusses the ædisconnectÆ that occurs today between the operational planning and long-term strategy and how this is driving developments in mine planning today.

Jan 1, 2003

By B McIntosh

Sustainability in its simplest assessment has been defined as æmeeting the needs of the present without jeopardising the needs of future generationsÆ. For the mining industry alone, this statement could indeed be interpreted by the many cynics in our community as an oxymoron; as miningÆs very existence requires the extraction and consumption of finite resources. However for the future of industry as a whole, the integration of mining, minerals processing and manufacturing presents us with a unique opportunity to achieve sustainability through the continued supply of metals and materials for society, in a manner which can achieve positive social outcomes through a triple bottom line approach.The Kwinana Industrial Area has been Western AustraliaÆs premier heavy industrial precinct for more than 40 years and its prevailing level of prosperity will ensure it remains a significant contributor to the State economy through the 21st century.The Kwinana industries depend on each other for the production of essential raw materials vital to their manufacturing and refining process, an innovation that also has significant environmental benefits.Formed in 1991, the Kwinana Industries Council strives to foster positive interaction between member companies and with the local community.The aims are:to co-ordinate the activities of Kwinana industries on a range of common issues; provide effective liaison with the local community; promote a positive image of Kwinana industries; highlight contributions to the community by Kwinana industries; and work towards the long-term viability of the Kwinana Industrial Area. The Kwinana Industries Council facilities these aims by focusing on developing and employing leading edge technology, giving workplace health, safety and environment top priority, and taking a committed, responsible and pro-active approach to environmental protection, whilst forging a two-way partnership with the local community.The sustainability of industry is the key objective for the Kwinana Industries Council and through the involvement of the 13 member companies industry strives to:achieve efficient processing of resources to provide a range of goods and services needed by the community; achieve acceptable and decreasing level of environmental impact; provide jobs and income for our community; and engage co-operative projects that benefit the local communities, the State and Australia.

Jan 1, 2004

By M Dorricott

This paper describes the design, construction and performance of sill pillars using cemented development mullock at the Crusader Gold Mine. The orebody is some 35 m - 60 m in length, 5 m - 8 m wide, dipping at 60¦ - 85¦ and plunging at about 40¦ to the north. It is accessed via a footwall decline. The ore occurs at the contact between basalt and ultramafic. This contact is characterised by shearing and alteration; and is prone to unraveling failure. The cut and fill mining method at Crusader extracts 25 m high ore blocks in four flat back lifts and one 8 m thick crown pillar. To enable full recovery of these high-grade crown pillars with minimal dilution, a 5 m thick sill pillar is constructed using cemented rock fill (CRF), after mining of the bottom two lifts in each block. Uncemented development mullock is used as rock fill (RF) for subsequent lifts. Development mullock and cement/water slurry is mixed underground to produce CRF. The fill is transported to the stope in LHDs and dumped on the floor. The sill pillar is advanced progressively, with compaction provided by the loader driving over the previously placed fill. Old jumbo rods are installed as shear pins along the flat dipping hangingwall to reduce the risk of rotational failure of the pillar. A fan of cable bolts is installed into the hangingwall to prevent unraveling failure in the sheared ground. Buffer blasting is used to minimise damage to the CRF sill pillar when the crown pillar below is extracted. At the time of writing, extraction of the crown pillar underneath the CRF has taken place at the 930 stope. The crown pillar was extracted successfully with dilution from the backfill and hangingwall minimised and 98 per cent of the gold recovered. This compares with pillars that were mined beneath uncemented backfill where only 70 per cent of the gold was recovered and where there was significant dilution from the backfill and from hangingwall failures. Where no CRF was placed, there were also numerous production delays caused by large rocks from the hangingwall blocking the stope brow.

Jan 1, 2002

By T Baard, A Pieters

This paper deals with the design and implementation of a 17 MW (nominal) surface cooling installation at Impala Platinum No 14 shaft located in Rustenburg, North West Province, South Africa.The cooling requirements included the installation of a surface ammonia refrigeration plant complete with the storage of hot and cold mine service water for underground use. It was also necessary to install a surface bulk air-cooling facility, which cools 400 kg/s of ventilation air going to the underground workings. Primary cooling is to the surface bulk air cooler. The cooling duty of a surface bulk air cooler is heavily dependent on the ambient wet-bulb temperature. Because of the daily wet-bulb temperature variation in this part of the world, use was made of a cold thermal storage facility of four million litres. The excess chilled water is stored during the night, for use by the main drilling shift during the day. This keeps the refrigeration machines as close as possible to full load during the summer, thus maximising the use of the capital expenditure. This paper discusses the control philosophy used to maximise the cooling output, as well as the thermal process. The project consisted of two phases resulting from the underground development phases of the mine. The first phase started in January 1999 and was commissioned by the end of the same year in record time. The final commissioning of the second phase took place at the end of 2002. The most difficult part of the construction phase was the tunnelling of a subsurface air duct from the bulk air cooler to the operating vertical shaft. This was done without disruption to the hoisting of men, material and ore in the shaft. Owing to the size of the refrigeration machines, the ammonia quantities involved and the application on a mine (no ammonia can go underground, either in the service water or in the mine air) special precautions had to be taken. South Africa has developed high standards for ammonia refrigeration plants used on mines, which will be partially dealt with in this paper.

Jan 1, 2005

By J J. Jiang, M Reimnitz

The Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston Open Pit is mining through a dense network of disused level workings and open stopes of greatly varying sizes. The condition of the stope crowns and remnants is often unknown, and ultimately these structures become a significant proportion of the production floor and pit walls. Significant seismic events and occasionally rock bursts often occur in the underground workings. Seismicity is becoming an issue to the viability of the KCGM Fimiston operations. KCGM needs to take a leading role in understanding mine-induced and regional seismicity. The seismic system trials were initiated in the Fimiston Open Pit in 1996 using the ISS system. The initial system included two triaxial geophone arrays and two triaxial accelerometer arrays installed into two boreholes. The main objectives of the trial were to investigate the suitability of the two types of sensors and the detectability of seismicity in the pit. The trial was regarded as a success and the system has been expanded and improved. The current system consists of 12 triaxial geophone and accelerometer arrays and nine uniaxial geophones. The 12 triaxial arrays are installed in nine boreholes drilled from the pit and the nine uniaxial geophones are installed from underground level workings about 660 m below the original surface elevation. The system is designed to provide seismicity coverage for the entire pit area that is about 2.7 kilometres long, 1.5 kilometres wide and about 300 metres deep. The accuracy of the source location has always been a challenge due to the existence of the dense concentration of stopes and lack of the sensors. It is uncommon to have direct ray path for the seismic waves to propagate to the sensors across the strike, hence sensors have been located along strike and under the old workings. This paper discusses some of the challenges associated with seismic monitoring near mine remnants and seismically active faults. The results of the seismic monitoring are presented, and contrasted to results of three dimensional boundary element numerical modelling. The impact of the seismicity upon pit slope stability is briefly discussed.

Jan 1, 2003

By G Solly, S Parsons, P Leevers, S Ni

Hematite ore has been mined in the Southern Middleback Ranges as blast furnace feed for the steelworks at Whyalla, by what was then BHP, since 1991. With the floating of BHP Integrated Steel as OneSteel in 2001 and the subsequent loss of key mining personnel, breakdowns in grade control methods and procedures occurred. These were compounded by changes in orebody characteristics and grade distribution leading to poor reserve recovery and poor grade control, both which resulted in loss of control of ore specification and severe deviation from the mining schedule. As a result, a total review of grade control, mining method and scheduling procedures was undertaken as well as a review of contractor quality assurance. It was found that sampling methods were poor and unrepresentative, grade control blocking processes were outdated and did not reflect the geology of the deposit, the ore mining method was outdated and did not respect the geometry of the orebody, reconciliation methods were being completed globally and were not reflective of individual areas of the deposit, and that deviations from the mine plan were occurring due to access to high-grade areas outside the schedule in order to bring stockpiles back on grade. Based on these findings, updated sample splitter systems were fitted to drill hole rigs, double bench sampling was implemented (2 + 4 m samples as opposed to 1 + 8 m sample) and a three-dimensional cellular grade control system introduced to better reflect the geology and orientation of the deposit. At the same time ore mining was changed from front end loaders mining on 8 m benches to excavator mining on three lifts on 8 m benches; this aided selectivity and respected the geometry of the orebodies aiding cleaner recovery. Reconciliation is now completed on a blast-by-blast basis, which allows for quick and easy identification of poorly performing areas of the resource model that can then be incorporated back into resource model updates. Regular daily and weekly meetings are also held with emphasis on the mining schedule to ensure no deviation from the schedule in the long term. These improvements have resulted in a lift in reserve recovery both globally and locally associated at the same time with improvement in grade.

Jan 1, 2005

By M Zhu, J Safarian

Understanding the slag composition-structure-property relationship remains challenging due to the amorphous nature of slag melts and the difficulty of high-temperature experimental investigations. Since the CaO-Al2O3-SiO2 slag system is maybe the most important slag system for various hightemperature metallurgical process, the present research employed high-throughput molecular dynamics (MD) simulations on the entire composition region of the CaO-Al2O3-SiO2 slag system to determine physical properties like molar volume, density and diffusivity, structural properties such as distribution of different oxygen types for each simulated slag melt. The obtained slag properties result from the simulations displayed good consistency with experimental data, underscoring the reliability of the MD simulation as a novel tool to predict reasonable slag properties and to study slag behaviour from atomistic insight. The simulated results demonstrate a near-linear relationship between molar volume changes and composition, highlighting the predominant role of oxygen atoms, which is attributed to the significantly larger size of oxygen compared to other cations in the slag melts. This disparity in size leads to oxygen ions occupying most of the space in slags, thereby playing a major role in determining the overall molar volume. The simulation results of slag density revealed a decreasing trend with increased SiO2 content and identified a local minimum at constant SiO2 when Al2O3 content increases, also consistent with established slag density models. Furthermore, the simulated oxygen self-diffusion coefficients reveal a strong composition-structureproperty relationship, where an increase in CaO content enhances slag diffusivity, while a minimum in diffusivity is observed near a CaO/Al2O3 ratio of unity. The diffusivity minimum also corresponding to the local viscosity maxima, indicating effective simulation of charge compensation effects and dynamic characteristics of slag melts. The simulated distribution of oxygen types in slag — bridging oxygen (BOs), non-bridging oxygen (NBOs), free oxygen (FOs) and tricluster oxygen (TOs) — reveals a composition-dependent pattern: BOs peak near CaO/Al2O3 = 1, NBOs and FOs are abundant in CaO-rich areas with NBOs peaking near the Ca3SiO5 composition, FOs in the CaO corner, and TOs predominantly in the Al2O3 corner, highlighting the complex interplay of network formers and modifiers for the charge compensation effects on the slag’s structural properties. The successful application of MD simulations in this study paves the way for a powerful approach to explore the complex relationships in multicomponent slag systems and bridges the gap between mathematics modelling and experimental observations in high-temperature metallurgical processes.

Aug 21, 2024

By P J. Colbert, P D. Munro

OZ Minerals' Prominent Hill copper-gold concentrator in South Australia was built in 2008 with commercial production commencing in early 2009. In addition to recovery of valuable minerals, the flow sheet for this iron oxide-hosted copper-gold deposit has to address the issue of producing a good quality saleable copper concentrate by high selectivity against non-sulfide gangue. Detailed mineralogical studies integrated with the metallurgical test work highlighted that liberation of fluorine-bearing minerals and subsequent very efficient rejection in cleaner flotation was necessary to produce a commercial quality copper-gold concentrate. Bench scale laboratory metallurgical tests and mineralogical studies identified the need to regrind rougher concentrate to a P80 of 20 -25 microns or finer for adequate liberation of the fluorine-bearing minerals. Satisfactory separation of the fluorine-rich gangue material from the valuable copper sulfides requires highly efficient cleaner flotation. This is done by a combination of washed froth cleaning and conventional dilution cleaning. Proven equipment developed to meet similar taxing liberation and separation duties for the treatment of the refractory zinc-lead-silver ores of the Carpentaria-Mount Isa Mineral Province have been selected. The combination of Xstrata Technology's IsaMillÖ and Jameson Cell technologies addressed both the liberation and separation issues in the Prominent Hill concentrator. The energy efficient IsaMillÖ technology both regrinds the rougher concentrate while its inert grinding environment prevents contamination of mineral surfaces with 'debris' ensuring subsequent optimum flotation performance. Heading up the cleaner circuit with a 'scalping' Jameson Cell followed by conventional flotation equipment allows this section to take advantage of the Jameson Cell's high intensity flotation environment and froth washing capability to achieve maximum concentrate grade (at minimum fluorine levels) while maximising recovery through the use of conventional flotation machines. This paper looks at the development of the Prominent Hill flow sheet from the initial mineralogical and laboratory test work to the design, scale-up and early operation of the Prominent Hill regrind and cleaner flotation circuits. The mineralogically-based approach of domaining metallurgical ore types combined with the axiom of size-by-size mineral particle behaviour by liberation class gave a clear understanding of the liberation and separation issues involved in the processing of Prominent Hill ore. Technologies developed to meet much more onerous liberation and separation duties for the treatment of the refractory zinc-lead-silver ores of the Carpentaria-Mount Isa Mineral Province were successfully used to improve concentrate quality by rejecting non-sulfide gangue containing impurities. An IsaMillÖ and a Jameson Cell are included in the circuit for fine grinding and for additional concentrate cleaning. Plant performance since commissioning has justified the approach for metallurgical test work and equipment choices for the flotation circuit.

Jan 1, 2009

By R Polmear, G Mauger

You wouldnÆt start excavating before testing core samples, so why would you approve a project plan before all factors have been identified, reviewed and addressed? Even a champion sports team made up of the best players canÆt produce optimal results without a well understood and agreed game plan. Could an F1 racing team produce their outstanding performance without rigorous evaluation and testing of the factors for successful performance? Why would we expect a capital works project team to be able to get it right without an understanding and an involvement in setting and implementing the overall game plan and without an understanding of all stakeholder requirements? For International PowerÆs Hazelwood (IPRH) mine in Victoria, the challenge was development and delivery of a 40 year mine plan, ultimately involving relocation of existing mine operations into an adjacent new coal field, land acquisitions and major environmental and other approvals to allow diversion of three streams, a highway, an Over Dimension route and other infrastructure in a political and environmentally sensitive atmosphere. The lessons from International Power HazelwoodÆs (IPRH) experience are: that the clear set of project principles and guiding values ensured delivery of a robust plan; a robust plan can withstand significant change; and value management (VM) played an important role in providing assurance, to all, that the plan was sound at both the strategic and micro levels. This Hazelwood mine project included five major VM workshops. The first was a critical review process in addition to design and cost reviews. This VM workshop was used to analyse, at a high level, the preferred coal mining sequence and design concepts, together with the interaction between design elements, risks and costs. In addition to this, the workshop provided an agreed common pathway for all downstream decisions. A second VM study was conducted to ensure that the proposed plan and design for relocation of the conveying systems from the existing mine into the new field were planned for optimum achievement from a whole of life cost, time, operational and maintenance perspective, plus the logistics of continuing operations while relocating assets. A third study followed to review the Conveyor Transfer Alliance and review functional design. A fourth VM study workshop was formed at the start of Phase 2 Alliance to ensure that the best value for money was being achieved through the current design, schedule and project arrangements and that all interfaces between parties had been reviewed and responsibilities were clear and understood. Other studies are outlined later in this paper. This paper details the evaluation criteria and processes used in the project evaluation that led to the WestField Mine Development.

Jan 1, 2007

A new gold cyanidation assay technique has been proven for a range of ores, where it has demonstrated benefits of being: ò Accurate (reduces the typical range of assay scatter almost three-fold, and avoids common fire assay interferences). ò Fast (under one hour, providing a quantum shift in space requirement and equipment utilisation each bottle roll can provide over 15 determinations per day). ò Simple (suitable for field application, no high skill or experience requirements). ò Profitable (reduced drilling, drilling time, ore misclassification and/or double handling after mining). ò Cheap (far lower cost than Fire or Aqua Regia Assays, ie LeachWELLTM costs around 10ó for a 20 g sample at 50 per cent solids, proportionately greater for larger samples eg $1 for 200 g samples which address most nugget effect problems). ò Relevant (distinguishes economic. ie cyanide-extractable gold, the only unequivocal value to use for true resource definition, mine planning and grade control). ò Robust (rough bucket chemistry of samplers does not seriously affect results). A new development is the provision of LeachWELLTM CAS, a solution, which also contains optimum cyanide and stabiliser concentrations; and offers greater: ò Safety (the dilute cyanide solutions are stabilised to avoid generating toxic HCN vapours; and present no cyanide dust or flying chips to deal with). ò Ease (a single squirt dispenses precise quantities of the entire reagent suite, avoiding multiple weighings). ò Reduction in total reagent costs. An inter-laboratory comparison on nine ore types, using two assay techniques (Fire Assay and Aqua Regia) involving 45 laboratories, has demonstrated that LeachWELLTM 60X assays for the samples tested, were equally or more reliable than typical Fire or Aqua Regia Assays. There is particularly great benefit in applying LeachWELLTM 60X assays to richer ores in comparison to Aqua Regia assays, which appear to be prone to very significant underassaying depending on individual analyst skills, and which often suffer greater nugget effects. The major impacts for heap leaching are that: ò Using the LeachWELLTM assay technique for grade control, ore of marginal grade is not accidentally discarded to waste or visa versa due to the scatter of assay data inherent in typical small charge (25 g) fire assays. ò LeachWELLTM assays very importantly report only that gold which will be recoverable in the heap, viz that which is liberated - an important factor where the coarse crush often leaves ten per cent of gold unliberated. These impacts are of particular importance for many ores (ie most of those recovered from open pit operations and at the margins of rich ore subject to slurry processing) subjected to heap leaching as the oxide zones often present major problems of nugget effects as well as mineralisation that cannot be accurately assigned through interpretation of clear structural controls.

Jan 1, 1994

I am honoured to be given the opportunity to share with you my thoughts on what will be the essential characteristics of æThe Mining Company for the 21st CenturyÆ. For me the 21st century is all about globalisation and the challenges and the opportunities that globalisation presents for the mining industry. To play on the global stage the successful mining companies must develop profiles that are global in: their operations diversity, their partnership relationships diversity, their customer relationships diversity, their workforce diversity, and their shareholder diversity. In my view æbigÆ will count in the 21st century, but big overlaid with quality: quality assets, quality people, quality partners, quality customer relationships, and quality image and reputation. Last year, Rio TintoÆs Leon Davis said when he addressed the Minerals Council of AustraliaÆs annual conference that Australian resource companies that wish to become global operators must develop an unequivocal international identity that will make that company a known and trusted quality wherever it seeks to do business. He went on to say that structuring and operating a business in a way that consistently manifests the qualities that inspire respect and evoke confidence is vital. I absolutely concur with what Leon said. Unfortunately, the fact is that, as we stand at the beginning of the 21st century, our industry and many of our companies are no better accepted by the world community than was the case five, ten, 15 or even 20 years ago. In fact, in some cases, the warmth of the acceptance may have subsided. To some extent the demonstrations that we saw recently in Seattle and Davos reflect a growing distrust, disquiet and cynicism in our communities. Here, however, I see an opportunity. While on the one hand the mood of disquiet presents many challenges, it also provides those of us who are willing to get out on the front foot in addressing the issues, and engaging in the dialogue, with a very significant opportunity to create a major competitive advantage. It provides the opportunity to earn respect and the opportunity to develop a reputation as a company that is sought as a joint venture partner and a company that is welcomed by governments and communities. Importantly, also, people will seek employment with such a company and will invest in such a company. The challenge is to change the way we behave and the way we are perceived by all the key stakeholders. Many of our industryÆs traditional skills are now commodities à many can be à and are out-sourced. The new critical skill for the 21st century à the real competitive advantage à will come from creating a real and genuine understanding of our role and what we stand for. Everything we do should demonstrate not only sound business principles, but also an understanding of the political, social, cultural and environmental impacts of our activities - at an international and a local level. This concept isnÆt new - but for large companies such as BHP, where we operate in more than 20 countries with diverse cultures, languages and religions - it requires enormous energy and dedication. It is complex. It is difficult. But I believe it is absolutely fundamental to our future.

Jan 1, 2000

The United StatesÆ reporting standard for the mining industry for securities purposes is contained in the Security and Exchange CommissionÆs Industry Guide 7. It defines proven and probable Reserves using its own definitions, and prohibits the disclosure of quantitative estimates, for all mineralisation other than those two Reserve categories (though disclosure of Measured and Indicated Resources as quantitative mineralised material estimates is now informally allowed). Similarly, it restricts disclosure of value estimates to Reserves only, which SEC policy generally requires to be on an historic cost accounting basis. The SEC does not maintain a formal Competent or Qualified Person policy. In March 1999, the US-based Society of Mining, Metallurgy and Exploration (SME) released an update of its 1991 guidelines for definitions to be used in reporting of Mineral Resources, Reserves and Exploration Information, closely abiding by the 1997 CMMI recommendations. However, without SEC recognition, reporting under the SME and CMMI definitions is effectively barred for US companies. The SEC intends to adopt the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB). This will occur within just a few years, when the convergence project for development of the IFRS has reached a satisfactory point. The US is the largest financial supporter and participator in IASB. The Extractive Industries Standard of the IFRS will likely terminate Industry Guide 7. However, the effect of this international replacement will likely be equally restrictive. This could possibly neutralise the benefit of a CMMI-based global reporting standard. SME, the US society encompassing the widest range of mining industry professionals, does not have a Code of Ethics. It has no mechanism for requiring members to abide by a professional standard. SME is presently looking into possible solutions for this deficiency. US-based professional societies that do have a binding Code of Ethics, generally cater to a single profession, and are not just mining industry related. The American Institute of Professional Geologists (AIPG) and the American Institute of Minerals Appraisers (AIMA) are examples. The SME is considering creating a subsidiary body with an enforceable Code of Ethics. To support a CMMI-based global reporting standard, competent persons will need to work across international borders. A standardised mechanism for qualifying and registering competent persons will be needed. National rules and laws must allow competent persons to easily enter countries to perform their work. State issued licenses are increasingly required for much of the work performed in the US mining industry by engineers, geologists and minerals appraisers (valuers). Such licenses are not required by the SEC for Reserve reporting in the US, may not be required for valuation of mineral properties under certain circumstances, and except for real property valuer licenses, they generally do not have a binding code of conduct. However, state licensing of professionals forms a substantial and increasing barrier to interstate trade in professional services, and can be a prohibitive barrier to professionals from outside the US. Any rationalisation of this confusing patchwork of regulations confronting US minerals industry practitioners will only occur as part of larger, national change, hopefully aimed at compliance with international standards and protocols. The US does not have a valuation standard aimed specifically at the mining industry. The Uniform Standards of Professional Appraisal Practice, the national valuation standards, often must be applied to mineral property valuation, but contains no specific instructions for minerals. The author has campaigned against development of minerals valuation standards proposed by US minerals institutes. Instead he encourages the mining industry worldwide to place its support behind the initiative of the International Valuation Standards Committee (IVSC) to include an extractive industries section in its International Valuation Standards (IVS). This should provide a global set of valuation standards for the mining and petroleum industry within two years. This addition to IVS will provide essential valuation standards reference support for the extractive industries financial reporting standard of the International Accounting Standards Board. The IVS has achieved a high level of acceptance in the developed and lesser developed countries of the world. It provides a comprehensive framework of Generally Accepted Valuation Principles for the valuation profession internationally, for valuation of all property or asset types. IVSC is effectively a sister organisation to IASB. The IASBÆs International Financial Reporting Standards (IFRS), previously known as the International Accounting Standards (IAS), reference and quote IVS in some instructions for determination of fair value. IVSC is a non-governmental organisation (NGO) member of the United Nations and maintains liaison with many important international economic, accounting and financial agencies, such as the OECD, IMF and WTO.

Jan 1, 2002

This paper outlines the role of commissioning in the project cycle, shows how to get organised for commissioning and describes the principal commissioning activities. Emphasis is placed on appointing key commissioning staff early in the project to coordinate the preparations for commissioning and on detailed planning and tracking to ensure that the required commissioning activities are performed satisfactorily. The management of safety during commissioning is reviewed.

Jan 1, 2005

This paper discusses the requirements for a successful simulation modelling study, and the steps involved in the modelling process. Advantages and disadvantages of simulation are described, and a case study highlights how not to go about it. Two other case studies, for a decline truck haulage and a block caving production operation, are used to illustrate the types of variables whose impact may be investigated. Typical results are presented to indicate the sorts of presentation styles the author has found useful for conveying study results to project sponsors. Standard spreadsheet charting techniques can be very useful in this respect, but the possibilities are limited only by the imagination of the study team.

Jan 1, 2000