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By J Li, H Hooi, D Payne

Caval Ridge Mine (CVM) is one of the newly established open-cut coal mines of BHP in Queensland, where no tailings dam is planned to be built in order to minimise environmental impacts from mining activities. The waste streams from the Coal Handling and Processing Plant, including fine tailings dewatered by belt filter presses, coarse rejects, and mixed plant rejects, are co-disposed within waste dumps built with pre-strip and dragline spoils. Due to high rejects output (35 – 60% of feed) and low spoil to reject ratio (< 5) the large quantities of rejects bring significant geotechnical and operational challenges to CVM, which are exacerbated by increasing annual production rates and additional rejects from washing coal from an adjacent mine. Further in-house geotechnical review commenced in mid-2014 based on the initial geotechnical studies during the project stage of CVM between 2011 and 2013. The outcomes have enabled rejects disposal at CVM by constructing large belt filtered tailings cells, coarse rejects only dumps, and co-disposal of the mixed plant rejects at dump tip-heads. This paper presents the rejects disposal strategies at CVM from both technical and operational aspects. It also discusses future projects for belt filtered tailings moisture reduction including assessment of tailings clay mineralogy, as well as mixed plant reject co-disposal verification and optimisation.CITATION:Li, J, Payne, D and Hooi, H, 2018. Plant rejects disposal strategies applied at Caval Ridge open cut coal mine, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 50–60 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By M Hawkins

The Clem Jones Tunnel (formally known as the North-South Bypass Tunnel), a A$2.88 billion road tunnel project in Brisbane, Queensland, was successfully completed almost seven months ahead of schedule. The project included two parallel 4.7 km long road tunnels, 740 m of intermediate roadway access ramps and two auxiliary ventilation tunnels. The tunnels incorporate intelligent tunnel systems, best practice fire and life safety standards and typical civil tunnel elements.Over the duration of the project the Parsons Brinckerhoff (PB) and AECOM (formally Maunsell) design joint venture (MPB) were Lead Designers to the Leighton Contractors and Baulderstone Bilfinger Berger Joint Venture (LBBJV). Construction of the toll road commenced in September 2006 and was completed in March 2010, with the tunnel opening then. Contributing to the success of this project was the continued support the lead designers gave throughout the construction period.This paper will focus on some of the structural elements that contributed to the success of the project – in particular the cable tunnel structure, a small precast, culvert shaped element under the pavement of the mainline tunnel, and the fit-out of the Gibbon Street shaft which were designed to be constructed in a combination of precast and in situ concrete.The cable tunnel was incorporated early in the design phase and runs the length of much of the tunnel. This paper will outline the challenges faced by the designers with implementing this system which provided significant construction advantages, among which were being able to install a separate ventilation duct during construction and to start fitting out the mechanical and electrical conduits and drainage system while tunnelling was still underway.The Gibbon Street shaft had a length and width of 20 m by 40 m and an overall depth of 38 m. A 20 m high structure of precast and in situ concrete was constructed in the base to accommodate mechanical and electrical equipment and provide a take-off access for the southern ventilation tunnel. The construction purpose for this structure was to provide a junction between the tunnel boring machine (TBM) and the roadheader-style tunnels, a staging platform for commencing the roadheader tunnelling, and a platform where the TBMs could be dismantled and removed.The design was assessed and reviewed many times throughout the construction process to address the needs of each of these stages. Innovative use of precast concrete was used to minimise construction time.Additionally, the designers provided support to the construction team from the time of design completion through to the tunnel opening. This meant that the changes to the design and adjustment of construction loadings could also be assessed. The fi nal outcome resulted in an efficient construction sequence and a project that has provided an excellent outcome for the client, stakeholders and community.

Mar 8, 2011

By D Symonds, S S. Kanchibotla, L Kennelly, G McNamara, J Gaunt, B Adiyansyah

Ban Houayxai is a gold-silver mine operated by Phu Bia Mining Limited in Laos since 2012. The first two years of operation processed predominately soft oxidised ore but subsequent years were expected to process more fresh hard ore. Fragmentation of the fresh primary ores was also expected to be much coarser than for the soft oxide ores. This coarser and harder ore is expected to significantly reduce mill throughput and mining productivity. The Ban Houayxai management realised the potential downside risk when processing fresh harder ores and implemented a blast optimisation project to deliver finer fresh ore to the mill without unduly increasing blast induced dilution and damage.JKTech and the Ban Houayxai drill and blast team began a joint blast optimisation project in April 2013 to achieve finer fragmentation from fresh ores. This was achieved by modifying the bench geometry, blast patterns and applying exceptionally high levels of quality control during implementation. Blast induced ore loss and dilution was controlled by adjusting the ore blocks for blast movement. Finer fragmentation from these modified designs improved mill throughput for the hard fresh ore by 46 per cent above design on average. These new practices have been embedded in site operating procedures and have provided a quick reference ‘cookbook’ document for the engineers.CITATION:Gaunt, J, Symonds, D, McNamara, G, Adiyansyah, B, Kennelly, L, Sellers, E J and Kanchibotla, S S, 2015. Optimisation of drill and blast for mill throughput improvement at Ban Houayxai Mine, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

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

Jan 1, 1992

By M Ogle

"Booster fans are relatively rare in Australian coal mines. However, as mines become progressivelydeeper it is likely that such fans will be increasingly adopted as a method to sustain or improve the ventilation of underground workings. The reasons why booster fans may be an att ractive alternative include: increased cost of sinking additional ventilation shafts with greater seam depths; environmental objections to shaft sinking projects; and increasing urbanisation and surface constraints limiting availability of potential ventilation shaft sites. As Tahmoor Colliery movedinto its northern lease the ventilation constraints became the limiting factor on production. Thelimitations of the old workings meant that the existing ventilation system would be inadequateto sustain the required production. Extensive ventilation modelling was carried out to evaluatevarious potential solutions and the recommended option was the installation of a booster fanor fans, to gain underground access to an already approved shaft site in the northern lease.Proposals were sought from recognised fan manufacturers and various alternative arrangements were tendered. Ultimately the choice was between one large centrifugal fan and a set (three or four) of smaller æauxiliary-likeÆ fans in parallel. The successful tender was for a single centrifugal, an arrangement very similar to the booster fans that have been operating eff ectively at Westcliff Colliery for a number of years. This paper describes the current ventilation network, evaluation of the ventilation options, the fan selection process, and the project status to date."

Jun 1, 2012

By Secis R

Northparkes Mines is located 27 km northwest of Parkes in central west New South Wales. The E26 deposit is the largest of all defined to-date in the area, containing over 50 per cent of Northparkes' resources and reserves. The combination of orebody geometry and geotechnical characteristics provide ideal conditions for the block cave method of mining of the first lift of the E26 deposit. Although this method of underground mining has been used for decades in other countries, E26 is the first example of its use in Australia. Copper-gold mineralisation at Northparkes is related to quartz monzonite porphyries that have intruded coeval Ordovician volcanics. Sulphide mineralisation (dominantly bornite and chalcopyrite) occurs principally within quartz veins associated with the porphyry intrusions. Veining and mineralisation occurs within both the porphyries and volcanics. To optimise the recovery of a resource within a block cave mine, a good understanding of the rock mass and ore flow characteristics is essential. These have a significant effect on the fragmentation size and range and on parameters such as the drawzone spacing, height of interaction zone and dilution entry. As ore within a cave column moves and mixes when material is extracted from below and beside it, the total reserve extracted is unique for a particular draw strategy/production history. Until recently, reserve estimates and production schedules were based on the application of a uniform dilution factor to the tabulated resource. However, given the complicated flow and mixing within the cave column, such a simplistic approach can produce erroneous results. Northparkes Mines purchased and sponsored the upgrading of a commercially available software package specifically developed for modelling removal of resource blocks under caving conditions. This Gemcom software package, PC-BC, has been used for mine planning, reserve reporting and production scheduling. Blocks within it resource block model are converted into a mineable reserve taking into account mixing and dilution during depletion of drawcolumns (by horizontal and vertical redistribution of insitu tonnage and metal). As PC-BC gives individual drawpoint reserves, it can be used during the planning stage to determine whether or not a drawpoint is economic. For E26 Lift I an optimal layout containing 130 drawpoints has been developed based on a nominal 14 m x 14 m drawpoint spacing and a 0.8 per cent equivalent copper (eCu) cut-off grade. Annual production schedules for the depletion of material above this layout are based on: I higher tonnage removal from higher grade drawpoints in the early years of production; and 2 drawpoint production rates proportional to the total tonnage of orr remaining in the drawcolumn up to the optimal height of draw tier subsequent years. The reserve is tabulated from the combined annual production schedules over the life of the lift. The pre-mining reserve for Lift I of E26 is 26.6 Mt at 1.43 per cent copper and 0.39 g/t gold, of which approximately 23.4 Mt will be extracted under caving conditions. By scaling down the annual production schedule, weekly drawpoint tonnage calls can be given for short-tern production scheduling.

Jan 1, 1997

Major Francis Hamilton Buchanan coined the term `laterite' (Latin; brick-rock) in 1807 for the red earths used for building blocks in southern India. Although these earths were actually weathered basalts, the term is now applied to weathering profiles developed upon a wide range of bedrocks. The Ni-laterites are a special class within the broad laterite family.

Jan 1, 1996

By B Reid

"Since the commencement of mining operations at the Cowal Gold Operations (CGO) in 2005, reverse circulation (RC) drilling has been the preferred method for grade control (GC) sample collection. This method was selected because it allowed:for multibench drilling (20 m hole depths for two benches of mining) to aid mine planning increased data density for comparison against the wide spaced ore reserve model angled drill holes to intersect perpendicular to the strike and dip of the shallow dipping mineralisation ability to take two metre sample intervals to enhance the understanding of the mineralisation’s short-scale variability and provide the ability to flitch mine.From June 2008 to December 2013, RC GC was performed using a UDR rotary cone splitter. The field duplicate data over the period displayed strong precision, with a correlation coefficient of 0.94 and an average relative per cent difference (RPD) of 21 per cent for gold. Up to 66.1 per cent of field duplicate data greater than 0.1 g/t fell within ±20 per cent RPD. This is within limits of industry best practice. The Mine to Mill reconciliations over the same period showed the estimated GC grade was 7.7 per cent lower than the calculated head grade (CHG).In December 2013, the Progradex sampling system (PGX) was introduced at CGO due to its advertised ability to capture 100 per cent of the drill cuttings for the complete sample interval, inclusive of fines. Analysis of field duplicate data indicates that since the introduction of the PGX, the sample precision has drifted. From January 2014 to February 2016, the correlation coefficient was 0.92 and up to 51.2 per cent of field duplicate data, greater than 0.1 g/t fell within the ±20 per cent RPD. Over the same 26 month period, the Mine to Mill reconciliation improved to one per cent lower than the CHG. Granulometric analysis of the RC samples collected from the PGX indicated the fines material(<212 µm) averaged up to 22 per cent of the samples mass and following assay determination, the fines material represented a weighted average of 31 per cent of the total gold content within the sample.This paper highlights the:importance of the complete capture of all drill cuttings during an RC drill programinfluence of fines material on the sample quality and accuracyimpact sampling of the fines material has on the Mine to Mill reconciliation performancechallenges experienced in commissioning a PGX system.Citation:Reid, B, 2016. A Fine Looking Sample - the Importance of Fines in Grade Control Sampling to Mine to Mill Reconciliation, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 28–38 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By X Tian, J Forster, A Olmsted, E R. Bobicki, M Goldbaum, D Boucher, C A. Pickles

As the global demand for metal values expands, it becomes increasingly important to create more sustainable mining operations. Consequently, considerable research and technology development is required to produce processes which are both more energy efficient and have a minimal environmental impact. One potential technology is the utilisation of microwave pre-treatment to reduce the energy requirements in comminution. Microwaves can preferentially heat the valuable mineral phases in an ore and the resulting differential thermal expansion leads to the formation of microfractures along the grain boundaries. As a result of the preferential heating, ore competency is reduced, mineral liberation is enhanced, a coarser grind size can be employed, and plant throughput can be increased. Furthermore, microwave pre-treatment can be combined with advanced ore sorting, to decrease the quantity of gangue material processed downstream and hence reduce tailings production. Previous studies on the microwave treatment of ores over the last 30 years have mainly been limited to low power bench-scale studies and there is a paucity of information on pilot and/or commercial scale studies. In the present research, the microwave heating behaviours of over 40 ores have been studied at the bench-scale. These results were used to generate a database, from which a unique classification system was developed. This system was used to rank the amenability of any given ore for microwave pre-treatment. This knowledge can be employed to predict the performance of the ores in the high-power pilot scale tests and thus can be used as a pre-screening tool. The effects of high-power microwave pre-treatment on grindability and liberation were reported. Additionally, the ore sorting potential was evaluated using a combination of X-ray transmission (XRT) and microwave infrared (MW/IR).

Aug 24, 2022

By Woodhouse M, Andrews D, Drew G

The nickel deposits within the Honeymoon Well project area (26¦ 40'S, 120¦ 25'E), located 45 km south of Wiluna, occur in the northern part of the Agnew-Wiluna belt (Figure 1; Hill et at, 1990). The project area is covered by up to 50 m of transported material which greatly hampers both exploration and an understanding of the bedrock geology. Since 1990 intensive exploration has increased the resource from 10 Mt at one per cent Ni to 134 Mt at 0.76 per cent Ni in five deposits (0.4 per cent Ni cut-off, resources above 300 m depth, December 1994). This includes a massive sulphide resource of 2.5 Mt at 3.4 per cent Ni.

Jan 1, 1996

By Liu Wenyong, Huang Yucheng, Yang Ba

High-water rapid-solidifying material, called æhigh-water materialÆ, is a new material developed by the authors over many years. The material can solidify nine times its volume of water into solid. The material is a fine kind of binder with special properties. The solidifying body of high-water material with water has quite a high early strength. The compressive strength of the material within three days can reach the same strength as conventional Portland in 28 days. One ton of the material can replace three tons of conventional Portland cement as binder. Some important achievements have been made in application of high-water material. In metal mines, based on the material, a new full-tailing cemented backfill technology has been developed. The characteristic of the new technology is that high-water material is used as binder and full tailing or alluvial sand is used as backfill aggregate. Because of the application of the new technology, major technical problems in backfill technology such as classifying of tailing, dewatering, transportation of pulp, low strength of backfill body, environmental contamination and so on, have been solved.

Jan 1, 1998

By C J. Unger, A M. Lechner, A Walton, V Glenn, M Edraki, D R. Mulligan

In Australia, responsibility for abandoned mines can be unclear. With a few exceptions, state and territory governments have become responsible for abandoned mines on Crown land and private landholders are responsible for abandoned mines on freehold land. Abandoned mines pose risks and opportunities across the full suite of sustainability themes (environmental, human health and safety, socio-economic and community development) after mining ceases.Across Australia, there are more than 50 000 abandoned mines recorded, ranging in size from individual shafts to large polluting open cut mines. Addressing the safety and environmental impacts of these sites, as well as the socio-economic development opportunities of significant rehabilitation projects, requires the implementation of effective policies and programs. Qualitatively defined graded scales or ‘rubrics’ have been used for many years in student assessment and increasingly in the performance assessment of other sectors (Davidson, 2005). While risk-based maturity models have been used for safety prioritisation (Westrum, 1993; Hudson, 2007; DRET, 2008; Hancock, 2010) and evaluation of organisational development (Esteves et al, 2010), this paper is the first to adapt maturity models for the evaluation of abandoned mine rehabilitation programs in Australia.In this paper, we used indicators based on the national policy for abandoned mines to assess the maturity of abandoned mine programs. Fourteen elements of maturity were identified (Unger et al, 2012) under the five chapters of the national policy for abandoned mines (MCMPR and MCA, 2010). Jurisdictions were then evaluated and ranked on their maturity on the basis of information that was web-accessible. Information transparency of abandoned mines policies and programs is in itself one element of the maturity chart. Each jurisdiction in Australia was compared with one another and with a Canadian jurisdiction; the British Columbia (BC) Crown Contaminated Sites Program (CCSP), which represents leading practice (Unger, 2009; Unger et al, 2012).Our research found that in some jurisdictions in Australia there is little or no information on abandoned mine programs or individual abandoned mine sites on government websites, while other jurisdictions provided very detailed program information on planning, funding and implementation. Each jurisdiction in Australia, for which web-based information was available, had some elements where they were more mature than other Australian jurisdictions. For some elements, maturity ranked equivalent to the BC CCSP, but most Australian jurisdictions were less mature. There was only one element where a single Australian jurisdiction ranked higher than the BC program in maturity. Legacy mine policies, programs, priorities and funding information via departmental websites are easier to find in some jurisdictions, indicating progression toward greater transparency and more mature programs. A systematic approach to monitoring and evaluating abandoned mines programs is essential for accountability as it can demonstrate liability reduction over time and continual improvement. The maturity model approach can provide both a measure of progress over time as well as a tool to support the implementation of the national policy for abandoned mines (MCMPR and MCA, 2010).CITATION:Unger, C J, Lechner, A M, Walton, A, Glenn, V, Edraki, M and Mulligan, D R, 2014. Maturity of jurisdictional abandoned mine programs in Australia based on web-accessible information, in Proceedings Life-of-Mine 2014 , pp 467–480 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By I Jabouri

There are many physical factors that can affect the self-heating rate of coal. The presence of seam gas has often been referred to as inhibiting coal self-heating due to the limited access of oxidation sites created by the presence of the gas adsorbed on the coal pores. Similarly, the presence of bed moisture in the coal also acts as an inhibitor of oxidation by blocking access of air into the pores. Gas drainage of a coal seam prior to mining removes both gas and moisture from the seam. Bulk coal self-heating tests in a two-metre column on both gassy, as-mined and gas-drained, dried high volatile bituminous coal show that removal of gas and moisture from the coal accelerates the rate of self-heating to thermal runaway from 8.5 days to 4.25 days, from a start temperature of 30¦C, with an airflow of 0.25 L/min. The corresponding gas evolution pattern for each of these situations is different. Therefore, it is necessary to take this change in coal condition into consideration when developing a spontaneous combustion management plan.

Jan 1, 2005

By R J. Soriano, S Ciutina

The Masbate gold deposits are situated on the island of Masbate, 350 km south of Manila. A new plant was commissioned in April 2009. The grinding circuit consists of one semi-autogenous (SAG) mill Ø9.75 m × 4.27 m, two ball mills Ø5.6 m × 7.1 m and a pebble crushing circuit, which is usually called a SAG-ball mill-crusher configuration. The SAG mill was originally equipped with radial pulp lifters. The mill runs at fixed speed of 10.9 rev/min, which is approximately 80 per cent of critical speed (per cent CS). Due to the high speed of the mill the original radial design pulp lifters presented a high volume of recirculating load inside the chamber and consequently heavy wear on the outer circle (bottom pan).In order to address the high wear on the pulp lifters a number of avenues were considered in early 2011. The chosen solution was to change the geometry of pulp lifters from radial to curved design. The pre-existing drilling pattern on the discharge end of the mill was a major constraint. A number of designs were considered. The selection of the most suitable option was to be made based on 3D discrete element modelling (DEM) and smoothed particle hydrodynamic (SPH) simulations.The original radial design and two potential solutions for curved pulp lifters were simulated with 3D DEM and SPH software. The main three objectives were predicting the charge dynamics, the expected wear patterns and discharge efficiency. One of the solutions was chosen and implemented during 2012.Observations carried on after installation of the curved pulp lifters have confirmed, as expected, a reduction in wear intensity on the outer pulp lifters. In addition to this, at early stages of operation with curved pulp lifters, the mill operator noticed a reduction in energy consumed by the mill with no detrimental effect on mill performance.This paper is intended to further study the effect of curved pulp lifters on mill energy consumption.CITATION:Ciutina, S and Soriano, R J, 2014. Curved pulp lifters – can they save energy?, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 109–116 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By J Edman, RáBeamish, G Cambourn, B Beamish

Moist Adiabatic Benchmark (MAB) and R70 testing have been applied to core samples of a multiple seam sequence from a borehole at the Doyles Creek Project. The coal samples range in rank from high volatile B bituminous to high volatile A bituminous, with a general increase in coal rank as depth increases in the borehole. The intrinsic coal reactivity to oxygen decreases with coal rank as indicated by the R70 values. The time taken to reach thermal runaway shown by the MAB testing however is strongly modified by the interaction between the intrinsic coal reactivity, the moisture content of the coal and the retained gas content of the coal. This is clearly demonstrated by the lowermost seam of the sequence. The MAB test for coal from the Whynot Seam took 20 days to go to thermal runaway, which projects to heating issues taking between eight to 12 months to occur for loosely piled coal found in coal roof falls or a longwall goaf and uncompacted stockpiles, assuming sufficient air is available for coal oxidation. The results from this project illustrate leading practice for the operational planning and development of an appropriate spontaneous combustion management plan (SCMP).CITATION:Beamish, B, Cambourn, G, Lewis, G, Edman, J and Beamish, R, 2013. Application of leading practice spontaneous combustion assessment to exploration at the Doyles Creek Project, in Proceedings The Australian Mine Ventilation Conference , pp 293-298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By P Ridley

EnergyAustralia’s Sydney Central Business District (CBD) cable tunnel network will form a loop 6.2 km in length. The 3.2 km long, 3.5 m, diameter city east cable tunnel (CECT) currently in design, will complete the loop in 2014. This paper discusses the ventilation design of the CECT, considering operation for four functions:1. normal (unmanned),2. access (manned),3. purge, and4. emergency fire modes.The dominant design criterion which determines the required ventilation capacity for CECT is the specification of an upper air temperature limits of 35°C (dry bulb) and 24°C (wet bulb) for manned access, during all ambient weather conditions and cable heating loads. Simplistic static heat transfer analyses do not yield a sufficiently accurate calculation of tunnel air temperature and humidity to provide a safe and yet economical design. The primary refinement in the analysis discussed in this paper is associated with modelling of the system’s dynamic behaviour.Our means of analysis is through a thermo-fluid-dynamic simulation of the interactions between the diurnally and seasonally varying loads (cable heat generation, ambient air conditions and groundwater inflow), tunnel airflow and the resulting tunnel air temperature and humidity. These simulations are validated using experimental data from the existing city south and city west cable tunnels.Fire life safety scenarios are also analysed and discussed in association with the ventilation design. Ventilation strategies are developed for dealing with such emergency fire situations.The understanding and insight provided by the work offers the ability to optimise ventilation plant provisions in future cable tunnels, particularly long and high energy density tunnels.

Mar 8, 2011

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each projectÆs feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

I have headed this paper with a question and for the impatient among you ûthe answer is no we have not run out of developments but, and it is a big æbutÆ, we need to be innovative and ahead of the game or ænoÆ will be æyesÆ before we know it.Why do I believe that our future lies in innovation? Thirty years ago, knowledge doubled every 14 years. It is now doubling every seven years. In 1965, Gordon Moore, one of the founders of the chip maker Intel, made an observation that growth in memory chip performance is doubled every 18 months which became known as MooreÆs Law. Now there is fibre law, where the transmission line capacity doubles every nine months and storage capacity, under disc law, doubles every 12 months. What does this mean? Well, firstly there is a massive rise in information flow and availability with no limits in growth for at least the next ten years. Secondly, unlike our grandfathers, we are most unlikely to be employed by the same firm for our working career - we may not even have the choice to stay with the same company. In a phenomenon Richard Foster and Sarah Kaplan (2001), borrowing from Schumpeter, termed æcreative destructionÆ, companies are unable to sustain market-beating levels of performance for more than ten to 15 years. In the 1920s the turnover rate of companies in the United States was 1.5 per cent, so a company could employ almost three generations from the one family. A company had a half life of 60 years. In other words, you could well be in the same working environment as your grandparents. Today the churn rate is estimated to be eight to ten per cent. A company has a half life of five to six years. So for large companies, as an employer or employee or as a contractor, your working environment has a 50 per cent chance of changing in five years. Innovation is the driver of this rapid rate of change. Innovation is not for the faint hearted (Cutler, 2001) but it is the core for success in the global economy. The rate of change in our world is not going to decrease. We must learn, not only to manage change, but to enjoy the process of changing û to ride the tsunami of the knowledge economy.

Jan 1, 2002

During 2009 the technical services staff at Barrick Gold Corporation's Australian Business Unit conducted a review of their five underground mines that utilise pastefill as the backfill component for these operations. Of the five mines reviewed three use dry tailings and two use wet tailings plants. The primary aim for these reviews was to determine whether pastefill was the right option to be used, and if not, what where the alternatives. The reviews undertaken focus on several areas including, paste plant operation, reticulation and barricade techniques, the geotechnical requirements for pastefill in regards to the current mining methods, the consideration of alternative methods, capital and operating cost histories compared to initial estimates, and a cost benefit analysis of pastefill against other mining methods. The main benefits from the use of pastefill is increasing the extraction of the resource, reducing or eliminating the need to leave pillars. In some mines the use of pastefill is geotechnically driven, to manage high stress environments or mining induced seismicity. A third benefit of using pastefill in some circumstances is that it reduces dilution, however it is considered that this is not a valid argument for most of the mines reviewed. At two mines no alternative to pastefill was determined, whilst differing extraction and filling strategies were potentially identified at the other three mines. The reviews developed cost benefit curves for those sites that had alternative mining methods to assist in determining whether pastefill is the right option to use for any particular stope. At the grades typically mined in each operation, pastefill was the preferred option to use. In all mines, pastefill was determined to be the best option at this time.

Nov 25, 2010