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With the continued drop in export coal prices (as measured in US$) delivered to the Pacific Rim market, and a fixed annual 12 per cent increase in overburden, Usibelli Coal Mine Inc was faced with the need to reduce mining costs substantially or else forfeit its foreign coal contractual commitment which amounted to about half of annual mine output. Management made a difficult and fortuitous decision to proceed with an engineered plan to switch from a two seam, extended bench dragline operation to a two seam, cast blast and spoil side operation. While down-sizing and cut-backs became the rule in all departments of the mine, the drilling and blasting budget was more than doubled. Most will agree that this is contrary to what usually happens when a mine is faced with down sizing. The more common scenario would have management target the drilling and blasting budget for decrease as a first priority to cutting cost, and then later witness a decrease in equipment performance leading to an increase in the production cost per tonne. Although Usibelli Coal Mine more than doubled its annual drilling an blasting budget three years ago, the overall stripping cost has be, reduced by more then 37 per cent.

Jan 1, 1995

By Evans RH, Todd G

Statistical thinking and statistical process ppq;ro4 are essential adjuncts of total quality management aqd too continuous improvement of operating efficiency arid, p*Nc; a4 W,

Jan 1, 1991

This paper focuses on the significant impact that geological information has in relation to the valuation, both equity market and accounting records, of mining companies. There are many different measures adopted by investors and analysts in valuing mining companies. In particular, focus is primarily on calculation of profit as it is the authors primary expertise. The importance of geological information to the calculation of profit (and to many other measures of a mining company performance) is not always understood by the geologist. The aim of this paper is to raise the awareness of geologists (particularly those who are competent persons under the JORC code) of the impact that reserve statements û and changes to û have on profits. This is the first time that this subject has been presented directly to geologists. Similar versions of this paper have been presented at other forums where other important users (directors, auditors, accountants, analysts, investors) or preparers of financial statements have been made aware of the importance of the geological information. In essence, all mining companies prepare annual financial statements, which are adopted by directors and audited. The major items that require judgement generally revolve around two areas û commodity price outlook and the accuracy of reserves and resources. Reserves and resources are important, and that there is undoubtedly a lack of understanding about the assumptions and accuracy of reserves and resources by accountants, directors and auditors, and a general lack of understanding by geologists as to how the information that they prepare is used. Across the globe the majority of mining companies are listed on stock exchanges (with the main exception being nationally controlled mining companies û eg Codelco). In a very simplistic manner, I have divided all mining companies into three types: exploration plays û these companies are still in the finding or proving modeÆ and typically the stock market and investors rely on geological information and remaining cash in determining their assessment of the company; single mine companies û the major items that investors and the stock market look for are reserves, inferred resources, commodity price outlook and discounted cashflow calculations; and multiple mine companies û the investment community and stock market are looking at reserves, inferred resources (generally to a lesser extent at this stage), commodity price outlook, discounted cashflow calculations and profit and loss accounts. Regardless of the type of company, the equity markets, including analysts, try to determine appropriate valuations for mining companies. In doing this the major two areas that require judgemental consideration are the commodity price outlook and the level of reserves and resources. Generally speaking, most mining companies have a strong understanding of their cost structures û in particular their cash costs as distinct from their accounting costs of production û and therefore this area generally gets less consideration than the other two matters mentioned above.

Jan 1, 2003

Benchmarking of mining operations has been in vogue for a number of years: it seems teams are forever flying around the world to try to understand what other operations are doing. However, unless a benchmarking exercise involves data gathering at a fundamental level and a rigorous analysis process is applied, the trip will be nothing more than industrial tourism. When benchmarking is performed thoroughly, the range of comparisons that can be made is extensive and informative, and need not be restricted to sites with similar conditions and equipment fleets. This paper describes the detailed and rigorous process for benchmarking used throughout AMC benchmarking studies. The paper demonstrates how, through drilling down to the underlying drivers, the often heard cry of æyou canÆt compare us, weÆre differentÆ can be overcome. Included in the discussion are a number of significant issues that have been identified during AMC benchmarking studies. The paper then considers the types of opportunities that have been identified and the potential for improvement. The paper concludes with a discussion of the implications for planning, measuring and management of operational performance.

Jan 1, 2003

The value of water is defined by its marginal utility. Challenges arise where the marginal utility is difficult to estimate. Therefore, when two or more interested parties wish to access water and they cannot use commensurate units for marginal utility; other means of value comparison must be sought. It is asserted here that sustainability principles can be used to guide this valuation if this is supported by a transparent decision framework. This paper proposes that the ICMM sustainable development principles provide appropriate guidance. In addition, a generic framework for decision making is suggested as a complement. Indicators of water management are recognised widely as an integral part of the accountability of minerals companies towards meeting sustainability goals. Less widely recognised are the ways in which sustainability principles can be used to guide decisions on water management which demonstrate growing awareness of its value. This paper illustrates the use of this logic in water issues associated with global sustainability challenges. It then goes on to demonstrate, using examples, that these links exist at all levels of the minerals industry and that indicators of this type are potentially as powerful as those currently being used. The reason for this is that the path from cause to effect is transparent and direct.

Jan 1, 2006

By Qisu W

The ground vibration produced by the bench blasts of a single hole and a row of two or three holes is recorded in an iron mine. Using the seismic signal generated by a single-hole shot as the source function, we have developed a computer program of a simulating ground vibration by bench blast. The reasonable delay time of blast in the iron mine has been discussed tentatively with the Fourmap invented by Anderson, D.A. The seismograms measured from the single-row blasts of two or three holes have shown the method of simulating vibration is feasible on the whole. For large scale production blasts, a combination of the vibration simulation and the high-speed photograph is used to choose the delay Time.

Jan 1, 1990

By Miller JD, Ye Y

The Air-Sparged Hydrocyclone (ASH) has been developed for the fast and efficient flotation of fine mineral particles in a centrifugal field during the past decade at the University of Utah. Over the years, the air-sparged hydrocyclone unit has shown promising potential for the flotation of copper porphyry ore, low-grade placer gold and auriferous pyrite ores, various industrial minerals, and fine coal cleaning. Many fundamental studies including the X-ray computed tomography (CT) analysis have been carried out in order to understand the multiphase fluid flow phenomena associated with ASH flotation. With data available from these studies, it is now possible to construct more accurate ASH flotation models for different applications in order to analyse the behaviour of the system and to optimise design and operating variables. The ASH flotation model developed in this paper is based on the data given in `Air-Sparged Hydrocyclone/Advanced Froth Flotation Fine Coal Cleaning', Final Report, DOE Contract No DE-AC-88PC88853, submitted by Pennsylvania Electric Company (PENELEC), December 1989. Data from several hundred experiments with the two-inch ASH-2C air-sparged hydrocyclone (capacity 0.1 - 0.3 tph dry coal) are available from the report and have been used for this analysis. In the past, a preliminary model based on limited data had been developed. The current study, however, emphasises the global behaviour of the ASH system by utilising almost all the data from the report for the purpose of scale-up and industrial application. There are two parts in the current modeling and analysis effort for ASH flotation of fine coal. The first part is the modeling/analysis of dimensionless ratio of overflow opening area to underflow opening area, A*, and the dimensionless ratio of air flowrate to slurry flowrate, Q . The second part involves the modelling/analysis of all other variables in the system and an expert system for operation and control is introduced.

Jan 1, 1993

Access to land for exploration, development and mining purposes is extremely critical to the viability of the mining industry and subsequently the well being of society.The mining industry has been subject to environmental controls and considerations for the past 20 years. Today there is greater land use competition and more debate as to its use. To retain reasonable access the mining industry must comply with the rules and regulations by which it is governed.A new set of rules and regulations have been approved for use in Queensland, known as the Mineral Resources Act 1989. This Act clearly outlines the titles available and the requirements to obtain access.There are three main titles of interest to mining companies. These are an Exploration Permit, Mineral Development Licence and a Mining Lease.The Exploration Permit (EP) is for exploration purposes. Applications for EP's are assessed on their content and past performances. An EP is granted subject to a security deposit and conditions. Prior to entry the EP holder is required to inform the land owner of the proposed activities and times of entry.

Jan 1, 1990

By P McCarthy

Despite significant advances in the platform technologies that could form part of a system of mine automation, the goal of full automation in most underground mining applications remains distant. This is because the industry developed these platform technologies to achieve local improvements in safety, machine and labour productivity, and asset utilisation, rather than to work towards a goal of a complete system of automation for general application in underground mines. This paper reviews the history and current state of automation in the underground mining industry and uses lessons learnt from the automobile and general manufacturing industries to gain insight into the opportunities and pitfalls in the complex and uncertain path to automation of underground mines. It also evaluates the relevance of the current drivers of interest in the industry. From this, we hope to engender an attainable vision of automation in underground mining and determine the best development path, process and timeline to achieve this vision.

Jan 1, 2008

Case Study: Dragline Swing to Dump Automation By Peter Corke, CSIRO Manufacturing Technology/CRC for Mining Technology and Equipment (CMTE) Peter Corke presented a case study of a project to automate the dragline swing to dump operation. The project is funded by ACARP, BHP Coal, Pacific Coal and the CMTE and is being carried out on a dragline at Pacific Coal's Meandu mine near Brisbane. Corke began by highlighting that the minerals industry makes extensive use of large, mechanised machines. However, unlike other industries, mining has not adopted automation and most machines are controlled by human operators on board the machine itself. Choosing an automation target The dragline automation was chosen because: ò draglines are one of the biggest capital assets in a mine; ò performance between operators vary significantly, so improved capital utilisation is possible; ò the dragline is often the bottleneck in production; ò a large part of the operation cycle is spent swinging from dig to dump; and ò it is technically feasible. There has been a history of drag line automation projects, none with great success.

Jan 1, 1997

By S Henderson

The Otago Goldfield has produced approximately 8 million ounces of alluvial gold and over 2.5 million ounces of hard rock gold and is currently home to New ZealandÆs largest producing gold mine. In the eyes of explorers this production history makes the goldfield a good place to explore.   Modern exploration in the Otago Goldfield commenced in the late 1970s with the exploration for tungsten. However, a rapid rise of the gold price in the early 1980s saw the focus shift to the exploration for gold which lead to the discovery of the Macraes Gold Project in 1984, which since it came into production in 1990 has been New ZealandÆs largest producing gold mine. With the exception of the Macraes Gold Project, exploration continued in the Otago Goldfield for a further 20 years without further success.   In 2006, Glass Earth (NZ) Limited (Glass Earth) reviewed all the exploration technologies applied to the Otago region and available geological data, including the 1996 OceanaGold Helicopter Electro-Magnetic (HEM) data, and concluded that combined magnetics and HEM were able to delineate the Hyde Macraes Shear Zone (HMSZ) which hosts the Macraes Gold Project. Unlike previous explorers who explored the Otago region in a piecemeal manner, Glass Earth opted to collect a new, region-wide dataset which could be integrated with all previous collected geological information to come up with new exploration concepts and targets. As part of this process, Glass Earth applied in mid 2006 for New ZealandÆs largest on-shore gold Prospecting Permit, PP39-322 which was subsequently granted in November 2006. In mid January 2007, Glass Earth commenced acquisition of approximately 50 000 line kilometres of HEM data, making the Otago regional aerial geophysical survey (survey) the largest aerial geophysical survey ever undertaken in New Zealand.   This paper will report on the progress of the Otago Regional aerial geophysical survey and outline some of the preliminary findings from what is still a work in progress.

Jan 1, 2007

By Sullivan T. D, Lohe E. M

Geological structure is one of the main controls on ground conditions within mining. It has a significant impact on the mining conditions and productivity of coal mines within the Sydney - Bowen Basin. The three main types of faults common to this region, normal, reverse and strike-slip systems, each present distinct challenges to mining. These systems effect a wide range of geotechnical and mining conditions within the mines. These include coal quality, strata stability, goat and caving behaviour, productivity and maintenance schedules of mining equipment, mine design and mine-site stress fields. A better understanding of the regional, local and mine-scale structural setting, timing relationships of structural events and the mechanisms of fault formation will greatly aid industry's push for greater productivity and competitiveness.

Jan 1, 1991

By Ash M

The world-class iron ore mines at Mt Whaleback, Torn Price and Paraburdoo located in the Hamersley Province of Western Australia must mine the Mt McRae Shale to obtain high grade ore from the Dales Gorge Member of the Brockman Iron Formation. The Mt McRae Shale contains a black pyritic shale lithology that reacts with ammonium nitrate-based explosives. This paper provides an overview of the problems associated with mining this reactive rock type as well as the development of a comprehensive procedure to safely and efficiently blast, excavate and dispose of this material. The strategy used to develop the procedure involved raising the awareness of relevant site personnel to the risks associated in mining the Black Pyritic Mt McRae Shale, obtaining the commitment of these personnel that a detailed procedure was required and that any procedure developed must be followed, otherwise the potential risks such as premature detonation were high. It was also necessary that an on-going training program be implemented so that all relevant new employees would be educated as to the reasons for adhering to the Black Pyritic Shale Procedure.

Jan 1, 1995

Sample preparation for gold samples, where the distribution and size of gold particles is often irregular, usually demands that a relatively large sample weight is taken to produce a representative sample for analysis. Traditional sample preparation of gold samples incorporated multiple stages of coarse particle size reduction followed by subdivision of the sample prior to final fine pulverising. This technique developed because of the limited equipment options available to laboratories. As a result significant errors are introduced and the final sample size being pulverised is a small fraction of the original sample weight. Three significant developments have occurred in the last 25 years to significantly improve sample preparation of gold samples: 1.  large capacity fine pulverising,2.  fine jaw crushing, and3.  whole sample coarse pulverising. In the mid-1980s an Australian manufacturer developed large capacity pulverising bowls which had the ability to reduce samples with a mass of 1.5 - 3.5 kg to a nominal 0.075 mm product in approximately three to five minutes. Laboratories were able to produce a large homogeneous pulverised sample which significantly reduced the error in sampling. However, exploration and mine samples are usually 7 to 10 kg and the sample requires a subdivision stage following crushing to produce the 3.5 kg for the pulverising step, thus introducing potential for significant error. The development of fine jaw crushing allowed particle size reduction to -2 mm which reduced the subdivision error of the bulk sample prior to fine pulverising. Subdivision of the crushed sample at -2 mm still results in potential sampling errors, where the gold particles are not sufficiently liberated to be representatively sampled. Clearly the best option would be to reduce the particle size small enough to ensure a representative sample prior to final pulverising. Continuous mills offer a partial solution but are relatively slow and subject the sample to differential pulverising prior to subdivision. Clearly this does not provide the best solution for routine laboratory applications where high volumes of samples are to be processed. The recent development of a large capacity coarse pulverising system allows samples of up to 10 kg to be reduced to -0.25 mm prior to subdivision, and fine pulverised to -0.075 mm. Laboratories now have the necessary equipment to perform reliable large capacity sample preparation of gold samples. The exact choice of a sample preparation scheme may still depend on particular ore types but the need for multiple crushing and subdivision stages is redundant.

Jan 1, 2008

By G Munro

he Melbourne City Link project will complete a missing link between two existing major freeways in the Melbourne road network, providing a much needed bypass of the Central Business District for through traffic. The project, which is being financed under a BOOT arrangement with the Victorian State Government, involves the upgrading of significant stretches of existing freeway and the construction of new sections involving viaducts and tunnels. The tunnel sections, which are the focus of this paper, are beneath residential and business areas, the Yarra River, the Royal Botanic Gardens and significant sporting facilities where surface construction would be either impossible or unacceptable (reference Figure 1). The shorter, 1.62 km west bound Domain tunnel comprises two cut and cover sections through Olympic Park then the Yarra River, the driven section of 0.68 km length and exits through a common cut and cover section with the east bound tunnel under St Kilda Road and Sturt Street. The longer 3.76 km east bound tunnel commences at the common portal, through cut and cover under St Kilda Road then 2.86 km of driven section before exiting at a cut and cover section at Burnley. The longer Burnley tunnel has an access and ventilation shaft at approximately its mid point.

Jan 1, 1999

By J McCluskey, N Barros

"Long-term strategic planning at BHP Billiton’s Western Australia Iron Ore business aims for sustainable value maximisation of its large, long-life, low-cost, expandable mineral inventory and supply chain infrastructure. While mine plans are key components of this value equation, this objective requires a whole-of-business approach through comprehensive consideration and optimisation of the full value chain. Only through a system view do we believe that the value proposition of a set of plans is truly optimised.The fundamental considerations include: mineral inventory information, given its intrinsic uncertainty and risk/knowledge horizon a marketing view of future quality premium/discount based on overall market quality load whole of supply chain optimisation on a throughput accounting basis alternative sequences of capital decisions closure costs with significant magnitude of total movement requiring optimisation as part of the plan. In addition, the plan provides a view of acceptable uncertainty levels at different times in the future.BHP Billiton Iron Ore uses a structured Life of Asset planning process that supports the business with the optimisation of its maximum value proposition through a non-deterministic scenario-based optimisation approach on an annual basis. This is a key input to each year’s medium-term plans and budgets, including activities identified through a value of information approach that resolve the key uncertainties and steadily improve confidence in the plan.CITATION:McCluskey, J and Barros, N, 2014. Life of asset planning, uncertainty and value optimisation of the iron ore business – from exploration, to market, to closure, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 33–40 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By N M. Rana, A Take, N Ghahramani, S McDougall, S G. Evans

A critical issue associated with mining operations has been the stability of tailings impoundments. Some breach events have produced catastrophic tailings flows that have caused significant economic damage, mass casualties and long-lasting environmental impact in the downstream environment. This paper reports independently estimated values of runout distance, inundation area and fahrboschung of 16 tailings flows. The adopted methodology involves the geospatial analysis of satellite and aerial imagery to classify each tailings flow into a primary impact zone (Zone 1: main overland flow) and a secondary impact zone (Zone 2: along-creek diluted flow) to characterise runout. Only Zone 1 runout values are reported herein given the greater significance in relation to downstream impact. The fahrboschung is calculated using elevation data from global 30 m digital elevation models (DEMs) and source literature. The results show that all the selected tailings flows travelled long distances (2.4 km to 98.5 km) and inundated large areas (0.35 km2 to 27.0 km2) over very low fahrboschung values (0.04° to 4.8°). This indicates very high flow mobility that is largely governed by the high water content sourced from interstitial waters and, in many cases, supernatant ponds. Scatter plots display poor correlations owing to the complexity and variability in travel path characteristics (confinement, slope angle and obstructions) and the inherent properties of the flowing mass. The slope angle of the travel path exerts a strong control over the flow velocity which has implications on kinetic energy and downstream geomorphological impact. Mean tailings flow velocities may range from ~6 m/s on near-flat, open terrain to over 30 m/s in relatively steeper, channelised travel paths, indicating that tailings flows fall within the extremely rapid and high mobility spectrum of global mass movements. The presented work forms an inceptive part of the CanBreach tailings project, a major component of which is to develop a comprehensive database of case histories to examine the role of geotechnics, failure modes and downstream terrains in influencing tailings flow behaviour.

Jul 1, 2021

By D Stow, R Goodridge, K J. Molloy

A range of explosives has been specifically developed for soft ground blasting. These explosives can be used in both wet and dry blasting conditions, range in density from 0.3 - 1.2 g/cc and range in VoD from 2 - 4.5 km/s. This range of explosives has the potential to be tailored to ground type and is predicted to be suitable for a variety of applications which include: blasting in soft to medium overburden, coal blasting, wall control, and low vibration blasting. Trials have been conducted in several applications with encouraging results. Several cast/throw blasts have been conducted with these products partially replacing either ANFO or Heavy ANFO. The results from the blast have been equivalent in cast (per cent) and at reduced cost per unit volume. These products have also been used in presplit blasting and have again achieved equivalent or better results when compared to conventional presplit blasting at a lower cost per unit volume. This product has also been used in a vibration sensitive area replacing traditional explosive products, and generating excellent fragmentation and digging whilst maintaining vibration limits. This new range of products, NOVALITE, has shown great potential in many applications either reducing cost per unit volume, improving wall quality or improving productivity in environmentally sensitive areas.

Jan 1, 2001

It is well known that in most areas of Central Europe it is not difficult to find water - usually at shallow depths - and to recover and use this water. What is much more difficult, however, is to find water sources that offer both sufficient in quantity and qual- ity. Far too often, there are sources that offer abundant quantities but of poor quality or vice versa, i.e. high quality water but insufficient volumes. In the former case where water quality is not adequate - which is more often than not due to anthropogenic factors and only very rarely a result of geogenic effects - the application of treatment techniques can help to turn such water into potable water that is suitable for human con sumption.

Jan 1, 1988

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011