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By B. Kweto, W. Legodi, C. van Buuren, R. F. Sandenbergh

Biooxidation, and especially the BIOX® process, is a viable, economical and environmentally attractive process to liberate gold hosted in refractory sulfides by oxidatively leaching the sulfides as soluble sulfates. The moderate to high cyanide consumption during the subsequent cyanidiation of the washed biooxidation residue is probably caused by the retention on the solids of labile sulfur species formed during the multi-electron oxidation process of sulfide to sulfate. In this work the nature and mode of transport of the cyanicides in the products from the mesophile BIOX® process, as well as that of the combined mesophile and thermophile bioxidation process, were considered and strategies to reduce cyanide consumption evaluated. It was found that labile sulfur species were the major cyanide consumers in the mesophile biooxidation product, forming predominantly thiocyanate during cyanidation. The transfer of labile sulfur species was only marginally decreased by more intensive and thorough washing of the biooxidation products with warm and hot water, intense stirring and warm caustic leaching. A major reduction in cyanide consumption was however achieved by using a combined mesophile and thermophile biooxidation process. Keywords: Biooxidation, refractory sulfide gold ores, cyanide consumption

Jan 1, 2020

By M. Khodadazadeh, K. G. van den Boogaart, T. Leißner, L. Tusa, J. Gutzmer, R. Gloaguen, M. Kern

Ore sorting is a technology that is increasingly used to process primary raw materials. Timeconsuming and expensive empirical state-of-the-art test work is carried out to assess whether the use of ore sorting for the enrichment of a particular ore makes technical and economic sense. With the innovative simulation-based approach presented here, it is possible to direct the selection of a suitable sensor based on quantitative mineralogical and textural data, thus avoiding much of the empirical studies. Required data can be collected quickly and cost-effectively using available methods of automated mineralogy. The obtained parameters such as mineral grain size distribution, modal mineralogy, mineral area and mineral density distribution have been utilised in this study to simulate the prospects of success of ore sorting, applying different types of sensors. Empirical tests with commercially available sensor systems have been conducted to experimentally validate the predictions of the simulations. The estimation of the target mineral grade can be further optimised by the use of machine learning algorithms for the integration of automated mineralogy data and sensor data. The approach can easily be adapted to other types of raw materials and thus has great potential to become a key technology for the optimisation of processing experiments. Keywords: Automated mineralogy, hyperspectral imaging, machine learning, ore sorting

Jan 1, 2020

By C. P. Naudé

Mechel, a large, integrated steel, stainless steel, and ferroalloy producer in Russia is committed to upgrading its facilities to world class pyrometallurgical process and environmental practice. Yuzhural Nickel currently uses shaft furnaces to produce a matte containing iron, nickel and traces of cobalt. This rather old technology is thermally inefficient and is characterized by high operating costs. Mechel has investigated suitable equipment and processes to upgrade the plant, and awarded a contract for the construction of a 12 MW DC smelter, located near the town of Orsk, to Bateman Engineering Projects in June 2008. The selection of DC furnace technology for laterite smelting can be considered as a strategic highlight for the pyrometallurgical treatment of low-grade lateritic ores, and could be the first industrial-scale implementation of this technology. This project has been designed to achieve multiple goals including the demonstration of the process and associated equipment technology at commercial scale, to confirm the scale-up design parameters of the forthcoming 2 x90 MW, twin electrode DC furnaces, and to prove the environmental emission superiority of closed furnaces. It also provides a valuable operator training platform. This paper deals with the process design, key technology building blocks and design features which have been incorporated to produce a pyrometallurgical vessel capable of (i) resisting slag superheat and chemical aggressiveness, (ii) process fine material without pre-agglomeration, (iii) achieve high nickel recoveries and(iv) being tolerant to the variations in chemical composition of laterite ore. The approach to increasing campaign lives between partial and complete rebuilds, through the use of composite furnace module (CFM) technology originally developed and patented by the University of Melbourne, is also followed in more detail. Unfortunately, results from hot commissioning and lessons learned from initial operation are not available because the project completion has been delayed due to the worldwide downturn in demand for commodities. Keywords DC furnace, ferronickel laterite smelting, corrosive slag, coppercooler technology.

Jan 1, 2010

By E. Kumar, L. A. Kumar

"A methodology is proposed to develop an optimization model to understand the impact of transporting minerals, from mines to the final destination, on air quality. Recently, there has been increasing concern about the combined effects of multiple activities over many years, and the regional environmental changes brought about by a single project. Environmental issues in the iron ore industry have highlighted the need to broaden the cumulative impact assessment. In this study, we simulated the optimal routes and quantity of materials needed to meet the destination plant demand based upon environment constraints (level of air pollution), as well as the cost of transportation and availability of materials. Multiple scenarios were developed to analyse the effects of changes in routes, alternative transport system (or multi-modal split), traffic congestion, and the cumulative impacts on air quality. The air quality impact zones of the study area were demarcated using a GIS technique. The expected outcome of the study is the selection of a suitable transport system for a particular site with the least impact on air quality, including the transportation route, relative to the minimum cost of transportation of the minerals from the mines to their final destination. The proposed methodology is evaluated with a case study. IntroductionIn India, the process of environmental impact assessment (EIA) has been focused primarily on the local impacts of projects, without considering regional environmental effects. Environmental clearances for proposed projects are based on reports of local impacts. However, any developmental project poses a potential risk to the environment as a whole, and not just in the immediate vicinity of the project. Recently, there has been increased concern about the combined effects of multiple activities over many years—the regional environmental changes due to development of a single project (Dutta, Mahatha, and De, 2004). Environmental issues throughout the country, particularly in the iron ore industry, have emphasized the need to broaden the analysis to include the combined impacts, or those forecast for a proposed region, on an existing environment. The most significant adverse environmental consequences of iron ore transportation are the deterioration of biodiversity and air quality (Kumar and Ajay, 2015)."

Jan 1, 2017

The depletion of favourably located and higher-grade mineral deposits, combined with more favourable metal prices and higher capital costs, has stimulated research into heap leaching of lower grade ores and wastes. This has resulted in renewed interest in heap leaching of uranium ores, and in the development of processes for the bacterial heap leaching of low-grade chalcopyrite ores and the acid heap leaching of nickel laterites. A complete programme of heap leach testwork typically involves a sequence of bottle roll tests and column tests, followed by piloting on test heaps. The initial testwork is aimed at determining the amenability of the ore to heap leaching, which depends on the characteristic of the ore with respect to porosity and permeability to leach liquor, acid consumption, metal recovery and percolation. Subsequent phases of the testwork focus on the development of the process design criteria for the treatment of the ore. Basic techno-economic models have also been developed as a tool for the initial estimation of heap leach viability. Mintek has also developed in-heap monitoring probes, coupled to an operator guidance system, in order to assist the operator in achieving optimal conditions for bacterial growth and heat preservation during pilot-plant operation.

Jan 1, 2009

By S. K. Murphy

A partial shaft pillar extraction project was embarked on at a mine in the West Wits mining region in South Africa. Prior to the extraction, a rock engineering assessment was conducted with the main objective being to establish which areas of the shaft pillar could be extracted without unduly affecting the stability of major infrastructure within the shaft pillar. Standard numerical modelling methods were used to conduct this assessment and several areas were identified for extraction. However, during the extraction process, it was found that the infrastructure was affected more than was originally predicted by linear elastic modelling. In addition to this, several large events resulted in far more large aftershocks than would normally be predicted. In order to gain an understanding of this phenomenon, seismic data was integrated with numerical modelling as follows: > The seismic data in the form of displacements was integrated in 3D space within the model to assess the effect of static stress changes associated with seismic activity > Data from large events was integrated onto specific structures, where displacements associated with large events were integrated onto the plane of structure in question. This paper describes the methodology and results obtained from each of the above processes and include insights into the mining process that were previously unfathomable using standard linear elastic numerical modelling. The way forward for this rock engineering assessment of partial shaft pillar extraction is also discussed.

Jan 1, 2012

By A. G. Royle

The reasons for constructing a model of an orebody for which both the parent population and the sampling distribution are known are discussed and details of the model are given. A brief summary of Matheron's theory of regionalized variables is included, with particular reference to his kriging estimators and their variances. Using the model, a comparison is then made between these kriging estimators and other commonly-used estimators. These are compared to find the one with the minimum variance, and an analysis is included to investigate whether any of the estimators is biased. Also included is a comparison between theoretical and experimental variances for some of the estimators.

Jan 1, 2014

By Keith Rowley, Neal Harries, David Noon

The management of risks associated with slope instability is an essential process in the safe and economic operation of open cut mines. The ?slope stability radar? (SSR) has been developed to better manage those risks. The SSR remotely scans rock slopes to continuously measure any surface movement and can be used to detect and alert users of wall movements with sub-millimetre precision. The high level of movement precision and broad area coverage of the rock face can allow for a better understanding of the geomechanics of slope deformation, including magnitude of potential failures and additional warning time of impending instability. Additionally, radar waves adequately penetrate through rain, dust and smoke to give reliable measurements, 24 hours a day. SSR systems have been deployed in many mines in Australia, Indonesia, South Africa, Zambia, Chile and the United States. Greater than 70 rock falls and waste dump failures (from several to millions of tonnes) have been monitored, and on every occasion precursor ?warning? movements were recorded by the SSR. This technology enables a radical change in the management of risks in open cut mining. This paper will present recent case studies of the SSR operation in coal and metalliferous mines.

Jan 1, 2006

By Thomas V. Fame, William E. Porter

"As geological and mining conditions become more complex, and as overall mining economics become more marginal, short- and long-range decision-making regarding multiple-seam surface mining becomes more difficult. The decision-making problem involves a study of economics, cut-off grades and ratios, equipment capabilities, sequencing and selective mining practices.This paper is concerned primarily with multiple-seam mining of bituminous coal. The research has led to the development of an economic decision-making model for use as a day-to-day tool to aid mine operators and pit geologists to decide what and how to mine.The model is designed as an aid for feasibility decision-making in multiple-scam situations and for situations where selective mining is needed or desired. In effect, a simulation of the feasibility and preliminary mine planning phases has been developed. The model is divided into four separate segments: decision-making, simulated mining, cost calculations and the determination of the discounted cash flow return on investment."

Jan 1, 2014

By B. van Beek, J. H. Zietsman, A. Lexmond, N. J. Andrew

"In platinum group metals (PGMs) smelting, the slag-to-matte ratios are very high (approximately 4:1 to 9:1). The slag temperature therefore has a strong influence on matte temperature, which is a continual concern due to the low matte melting temperature and its resultant high superheat. Maintaining a stable slag temperature is therefore a critical safety and operational issue. This project aims to improve the understanding of the slag bath temperature drivers so that a more effective slag bath temperature control strategy can be implemented.With the aim of developing a multiphysics model of the furnace, extensive data analysis was performed to develop an in-depth understanding of the process before the start of modelling work. In this work, the effect of fluctuating furnace feed composition on slag temperature was examined. The results are based on equilibrium calculations using FactSage, implemented with ChemApp.A method was developed, using an equilibrium calculation at 25°C, to convert the available chemical assays to approximate mineralogical assays in order to determine the feed enthalpies. Actual 2013 furnace feed data was used and the average specific energy requirement to produce slag and matte at 1600°C was calculated to be 671 kWh/t concentrate. The furnace energy input was then kept constant, and it was found that the slag temperature varies significantly as a function of the feed composition. These results were compared to actual slag temperatures measured on site. It was found that close management of the furnace energy balance is important for maintaining a stable slag temperature."

Jan 1, 2014

By G. A. Georgalli

A control philosophy to be applied by Lonmin to maintain constant electrode immersion in their no. 1 circular smelting furnace is put forward. This control philosophy is facilitated though a combination of thermodynamic models used to predict the slag composition and empirical correlations to estimate the furnace geometric factor as well as the slag conductivity. The model can determine the operating resistance set point required in order to maintain a desired electrode immersion as a function of the feeds to the furnace, slag level and temperature. If modifying the resistance set point cannot maintain the desired immersion without moving out of the furnace P-V-I operating envelope, the model can be used to determine the amount of slag modifiers (silica or lime) required to shift the slag chemistry back into a region where the immersion can be controlled though resistance set point manipulation.

Jan 1, 2008

By B. Aydin, A. S. Aloglu, S. Kahraman, E. Saygin

"The coal strength parameter is used in operations such as the selection and design of mechanical excavators and coal crushing/grinding equipment. However, coring or cutting prismatic specimens from coal for the standard strength tests is difficult, and sometimes not possible. For this reason a method for the indirect determination of coal strength from easy tests would be useful. In this study, the predictability of coal strength from the needle penetration test was investigated. This is a very easy and practical test method. Point load and needle penetration index (NPI) tests were carried out on coal specimens from Çayirhan coalfield in Turkey. The point load indexes were converted to the uniaxial compressive strength (UCS) values by using the general conversion factor. The UCS and NPI values were evaluated using regression analysis. A strong linear relationship was found between the two parameters. The conversion factor for the UCS-NPI ratio is 0.35 for the tested coal samples. It is concluded that the UCS of coal can be predicted from the NPI.IntroductionKnowledge of coal strength is important for the selection and design of mechanical excavators and coal crushing and grinding equipment. Uniaxial compressive strength of coal is used in designing pillar dimensions in room and pillar mining. Coals always contain bedding planes and cleats; they are also brittle and fragile. Therefore, coring or cutting prismatic specimens from coal for the standard strength tests is difficult, and sometimes not possible. For this reason, a method for the estimation of coal strength from easy tests would be useful.The needle penetration test is a nondestructive index test that is applicable both in the field and the laboratory and does not require any special sample preparation. The test has been used for the estimation of physical and mechanical properties of weak or soft rocks (Okada et al., 1985; Yamaguchi et al., 1997; Takahashi, Noto, and Yokokawa, 1988; Uchida et al., 2004; Aydan et al., 2006; Aydan, Watanabe, and Tokashiki, 2008; Aydan, 2012; Erguler and Ulusay, 2007; Park, Obara, and Kan, 2011; Ulusay and Erguler, 2012; Aydan and Ulusay, 2013; Aydan. Sato, and Yagi, 2014). This study investigates the predictability of coal strength from the needle penetration test."

Jan 1, 2017

By K. Andres

This paper presents the vibrating mill technology and summarizes the grinding principle of ultra fine grinding. In addition, a variety of operations is described and the benefits of these different operating modes? product size and efficiency are specified. A case study of an industrial application is presented to show the integration of vibrating mills into grinding circuits. The primary focus is the overall process scheme of this technology, the installation and operating costs, as well as the design parameters required for best performance. The vibrating mill can be used in a wide range of applications for process engineering duties. For a wide range of applications, from soft to extremely hard products, which require ultra fine grinding, surface activation or homogenization, the vibrating mill is well proven. Due to its easy operation, versatility and operation efficiency, the PALLA? vibrating mill gains in importance in the mineral processing industry. Keywords: Coal, comminution, grinding, mineral processing

Jan 1, 2010

By G. Chunnett

Platinum metal prices have risen significantly during the past 18 months, and have remained at elevated levels. Driving these bullish prices are sustained jewellery demand, mainly from the Far Eastern markets, and ongoing autocatalyst usage in response to ever more demanding global environmental legislative requirements. Within South Africa, the areas north and south of the Steelpoort River in the Eastern Bushveldare well known for their significant resources of platinum. The bulk of the resources have lain dormant in anticipation of the very situation that is currently occurring in the marketplace. Anglo Platinum is the largest primary platinum producer in the country, and is uniquely positioned to take advantage of the current elevated metal prices and shortfall in supply of platiniferous metals. In addition to its production capabilities, Anglo Platinum holds an extensive portfolio of mineral reserves and resources which underpin its ability to implement expansion projects to continue growth in platinum group metal production. It also has access to, and is actively expediting, the exploration of a range of properties where the company can further expand current production capacity or supplemented depleted production levels.

Jan 1, 2006

By S. Krishnannair

Singular Spectrum Analysis (SSA) is an effective data-adaptive multimodal tool for monitoring chemical processes. However, monitoring multiscale signals using principal component analysis obtained from the multilevel decomposition of process signals using basic SSA assume the upper control limits of monitoring charts (" ) to have a Gaussian distribution. This assumption deteriorates the performance of basic SSA when applied to the monitoring of nonlinear processes. To address the issue in this paper, the kernel density estimation (KDE) was used to estimate upper control limits of monitoring charts for basic SSA based nonlinear process monitoring techniques. The monitoring performance of the resulting basic SSA-KDE approach was then compared with a basic SSA approach of which upper control limits of the monitoring charts were determined based on a Gaussian distribution. Application on nonlinear dynamic simulated process and base metal flotation plant chemical processes showed that the SSA-KDE approach provided better overall performance than the SSA approach with Gaussian assumption-based upper control limits for its monitoring charts. Keywords: Fault detection, singular value decomposition, singular spectrum analysis, kernel density estimation

Jan 1, 2020

By Nelson Sánchez

The Los Bronces Development Project (LBDP) was approved in October 2007 by the Anglo American plc Board at a capital cost of some US$1.74B, and is scheduled to be completed by the end of 2010. The project represents a big step forward for the Los Bronces mine since it will increase the treatment rate by 140%, the mining rate by 64% and almost double copper production during the first four years of the project. This economy of scale will also position Los Bronces as a much bigger and efficient mining operation, better prepared to face adverse market scenarios and allowing Anglo to consolidate its position in base metals. The project addressed numerous scope alternatives such as plant capacity vs mine capacity, cut-off grade strategy to maximise value based on the existing flotation and leaching process, cutback strategy, etc. Main infrastructure aspects of the project are as follows: ?Dump area with 2400Mt capacity for waste and low grade material ?Mining equipment: 1 x electric shovel, 12 x 300t trucks, 1 x drill ?Primary crusher: 60? x 89? ?Three new power lines (144MW capacity) ?Grinding plant at 87kt/day nominal capacity (includes a 4.3km tunnel with a regenerative conveyor belt) ?Grinding plant: 1 SAG mill 40? x 25?, 2 ball mills ?Slurry pipeline (52 km from grinding to flotation plant) with five choke stations ?Flotation plant (rougher, cleaning, regrinding circuits and molybdenum flotation). The history of Los Bronces started in 1867 when it was discovered. In 1978 ENAMI (Government company) sold Los Bronces to Exxon for US$112M. The same year a snow avalanche destroyed San Francisco Flotation Plant. In 1979 the plant was rebuilt at 4.9kt/day and from 1979 to 2002 several plant expansions were made up to 54kt/day capacity. In 2002 Anglo acquired Los Bronces for US$1.3B. The 2002 resource and reserve statement showed reserves at 459Mt at 1.02%CuT and resources at 780Mt at 0.80%CuT. The 2007 statement shows reserves at 1,480Mt at 0.67%CuT and resources at 1,644Mt at 0.45%CuT. Defining the size of a plant expansion is the key challenge that any expansionary project faces. The scope of this paper is a general review of the project, describing all the mining techniques that were used to define the best options that maximise value. In this context, a range of plant capacities (from 58 to 230kt/day) combined with a range of mining capacities (from 83 to 166Mt/a) were evaluated in detail, defining for each option a mine plan, Capex and Opex, and cut-off grade strategy for flotation and leaching processes and the associated Net Present Value (NPV) that was used as the selection criteria. The Los Bronces mineral resources potential provides good growth opportunities for the mine beyond LBDP implementation, offering an exciting invitation to continue studying new initiatives that maximise the value of this deposit.

Jan 1, 2008

By T. Copland

"The decreasing availability of resources amenable to surface operations has led to increasing numbers of underground mines, with trends indicating this will continue into the future. As a result, there is a need for additional optimization processes and techniques for underground mines, with many analogous methods having already been developed for surface mining. Current methods for design and optimization of stope boundary selection and scheduling mainly involve heuristic methods which focus on a single lever. Individual optimality may be approached, but globally optimal results can be obtained only by an integrated, rigorous approach. In this paper we review previous methodologies for stope boundary selection and medium- to long-term scheduling and highlight the need for an integrated approach. Previous integrated approaches are reviewed and an improved modelling system proposed for shorter solution times and greater applicability to mining situations. Randomly generated data-sets for gold-copper mineralization are used to investigate the model performance, describing solution time as a function of data complexity.IntroductionThe increasing need for mineral resources is driving an increase in underground mines. Lower grade mineralization with larger amounts of overburden is becoming economically viable due to technological advances; however, the software and tools available for strategic underground mine planning are not well developed. Advances in the methods used to determine underground layouts and scheduling must occur to ensure underground mining is as optimized as open pit operations, as underground mining involves many more technical restrictions.The process of determining stope boundaries and scheduling is an example of an aspect of underground mining amenable to optimization (Topal and Sens, 2010). The current industry standard for medium- and long-term planning for sublevel stoping (SLS) is to exclusively determine stope outlines and then determine an appropriate sequence and schedule accordingly. This process violates the concept of optimality as integrating the constraints imposed by pre-determining stope outlines does not allow for considerations in scheduling to influence boundary planning (Ataee-Pour, 2005). An integrated planning process that combines both stope outlines and scheduling would approach the optimal solution and hence generate more value for operations. This investigation specifically deals with the underground sublevel stoping (SLS). Other underground mining methods such as block caving, sublevel caving, and room and pillar mining have unique characteristics and therefore require specific stope boundary/production scheduling considerations."

Jan 1, 2016

By P. L. Crouse

"SynopsisFluorine – in the form of hydrofluoric acid, anhydrous hydrogen fluoride, elemental gaseous fluorine, fluoropolymers, volatile inorganic fluorides, and more – has played, and still plays, a major role in the nuclear industry. In order to enrich uranium, the metal has to be in the gaseous state. While more exotic methods are known, the standard and most cost-competitive way of achieving this is by means of uranium hexafluoride (UF6). This compound sublimates at low temperatures, and the vapour is enriched using centrifugal processes. The industrial preparation of uranium hexafluoride requires both elemental fluorine gas and anhydrous hydrogen fluoride (HF). HF is prepared by the reaction of sulphuric acid with fluorspar (CaF2). Fluorine gas in turn is prepared by the electrolysis of HF. Yellowcake is first converted to uranium tetrafluoride (UF4), using HF, after which the compound is treated with fluorine to yield UF6. After enrichment, the UF6 is reduced to UO2 for use in fuel elements in pellet form.South Africa has the largest reserves of fluorspar internationally, and is the third largest producer after Mexico and China. Fluorine technology has many associated difficulties, because of the reactivity of fluorine and the toxicity of HF. The main barriers to entry into the fluorochemical industry are thus the abilities to produce both HF and F2. Both these substances are produced locally, at the industrial scale, at Pelchem SOC Ltd. Should South Africa contemplate developing its own nuclear fuel cycle as part of the awaited new-build nuclear project, it will be imperative to leverage the existing skills with respect to fluorine technology, resident at both Pelchem and Necsa, for this purpose. This paper summarizes the fluorochemical skills developed locally over the past several decades, and suggests strategies for maintaining the technology base and developing it for the next generation of scientists and engineers.IntroductionFluorine chemistry has always had a very close relationship with the nuclear industry. Although the first mention of fluorspar was recorded in the sixteenth century, and the fundamentals had been well-developed by the Second World War, it was only during the Manhattan Project (Banks et al., 1994), when almost unlimited funds were made available for the large-scale industrialization of fluorine and related compounds, that the technology took off. Expertise in both the chemistry and the engineering aspects of fluorine is essential for the design and running of several of the unit processes in the nuclear fuel cycle."

Jan 1, 2015

By H. Vuthaluru, O. Kavianipour, C. -Z. Li, N. Suresh, D. Sahu

The paper describes a CFD model developed for 76mm Dense Medium Cyclone (DMC) using Ansys Fluent Software to gain insights into the separation of particles according to their size and density. The simulation used in this paper includes the Reynolds stress model to predict the turbulence inside the cyclone body. An Eulerian-Eulerian multiphase CFD model was applied to model a number of physical aspects such as the separation of coal particles and the segregation of magnetite media solids. The experimental results generated in a laboratory scale DMC were used for the validation purpose and the predicted results of CFD have been validated for the flow splits of water, magnetite and coal. The simulation results obtained from the Eulerian-Eulerian multiphase model revealed that the prediction agreed with experimental results, and matched reasonably well in terms of the mass flow rates of water, magnetite and coal. Furthermore, the partition curve of the DMC when mapped for the separation of - 3.0+0.50 mm size also showed to be in agreement with the experimentally obtained curves. The gravity of cut (SG50), also predicted by the Eulerian-Eulerain multiphase CFD model, was found to be in the vicinity of observed experimental value of SG50. Keywords: Dense medium cyclone, Eulerian-Eulerain multi-phase modelling, computational fluid dynamics, cut gravity (SG50)

Jan 1, 2020

By B.E. Hall

Maximizing shareholder value has become a common aim for mining companies. This paper discusses the results of a number of studies developing strategic mine plans, covering a wide range of commodities, styles of mineralization, mining methods, and processing facilities, for single and multiple deposits. It has become evident that traditional methods and conventional wisdom often do not in fact achieve these goals. Operating policies at many mines ensure that shareholder value is not maximized. Changing the overall strategy can provide significant value gains. Typically, the new optimal plan involves a significant increase in the cutoff grade, at least in the earlier years. An increase in the underground development rate or open cut stripping rate is often associated with this, at least in the short term, to establish the new strategy. Cost minimization is found to be counter-productive. Counter-intuitive plans are often found to be optimal. For example, optimal cutoffs for different parts of an underground mine may be significantly different, even if mineralisation and cost structures are similar. Sub-optimal strategies are also frequently found to have a significantly greater financial risk than optimal plans, which have been found in many cases to be relatively insensitive to changes in major value drivers, such as metal prices. This paper shows how identifying and then operating within the framework of an optimal strategic plan can have substantial benefits over being continually driven by short-term tactical issues.

Jan 1, 2009