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By W Stange

Assessing the risks in a mining project is a key aspect of project evaluation. This is an exacting and demanding task because of the complexity due to the need to deal with uncertainty over long time periods. The way risks are assessed and managed is critical to the long-term success of the projects and the business. Discounted cash flow (DCF) analysis is commonly used for project and risk evaluation. A discount rate is selected that accounts for uncertainties in the cash flows. However, it is difficult to determine an appropriate discount rate due to the large number of factors that need to be considered and the complex relationships between risk sources. Using a proven framework, ævalue at riskÆ (VaR), this paper proposes to rigorously model and quantify ærisk at sourceÆ. The approach was first employed to assess financial market risks and is now widely used in the banking sector for risk assessment. In project evaluation, all risk sources are identified and estimated separately to ensure the overall project risk is quantified accurately. A bottom-up approach has been proposed. Estimates are first carried out for risk factors at the bottom of the project structure. The assessment is then applied at increasingly higher levels until the overall project risk is estimated. Value at risk is a versatile methodology and can be used in a local or integrated manner. The final value is objective and the calculation steps can be easily justified and followed. Four case studies have been included to illustrate how the proposed approach can assist management in decision-making.

Jan 1, 2009

The paper reviews some characteristic features of feasibility studies and discusses the need for a wide scope at the pre-feasibility stage. The performance of recent Australian gold mines against the predictions contained in their respective feasibility studies is examined, resulting in a recommendation that feasibility studies need to be improved The advantages to be gained from having a feasibility study reviewed by an independent authority are discussed, and some of the reasons for using consultants are listed. Two examples of successful optimisations in the early stages of pre-development studies are described briefly and the benefits achieved are presented. The paper concludes that feasibility studies need improvement to enhance the confidence of investors in the mining industry.

Jan 1, 1991

There are a number of methodologies which can be used for the preparation of environ- mental impact statements. Selection of a method depends upon the type of project and the environmental characteristics of the area where it is to be built. Most methods are satisfactory for assessing impacts on the physical environment but less so for the biological. Major problems may arise in deal ing with sociological issues because value judgements are involved. Several methods of approaching problems of this nature have been tried with some limited success.

Jan 1, 1976

Access to secure and reliable water resources is fundamental to the minerals industry. In recognition of that requirement, and cognisant of extensive contemporary public water debate and reform initiatives in Australia, the Minerals Council of Australia (MCA) approached the Ministerial Council on Mineral and Petroleum Resources (MCMPR) proposing the establishment of a Joint Working Group to prepare a framework of strategic principles to ensure responsible water management at a site and corporate level, manage risks and identify opportunities. The Framework provides high-level guidance on issues that should be addressed in water decision making across Australia in relation to mining and associated processing operations. It identifies principles and objectives for adoption in four areas, viz: valuing water, strategic water planning, implementation, and engaging stakeholders. Given the high level nature of the Framework, and its national application, it does not seek to replicate detailed guidelines already widely available in each state and territory on operational water management practices and associated regulatory issues at mine sites. The Framework includes a series of case studies from across Australia that demonstrate where strategic thinking, wise water management and close consultation with stakeholders has delivered better water use, more profitable operations and excellent community/stakeholder relationships. The Framework was formally launched on behalf of MCMPR by the Western Australian Minister for Resources at the MCAÆs Sustainable Development Conference in Perth in October 2006. No full paper available for this extended abstract

Jan 1, 2006

The ownership, policies, organisation, structure, market, financial considerations and communications of a large resource project vary significantly through its discovery, feasibility, development and production phases. The extent of these changes, from discovery in 1957 through to 1979, is examined for the Mt. Newman iron ore project in the Pilbara region of Western Australia and some of the factors that influenced it are detailed. This shows that only some of the influences are under the control of the mine owner/operator, despite their significant impact on the returns for the massive capital invested. The effect of the general business climate on the various phases is also examined.

Jan 1, 1980

By G J. Butler

Since 2005 BHP Billiton Iron Ore has been working with the consulting company Runge to implement the software XPAC Advanced Destination Scheduler (ADS) in life-of-mine studies. The Mt Whaleback mine, being the single biggest open cut iron ore mine in the world, presents some special challenges in scheduling. The biggest challenge has been the slow run time and difficulty in targeting all ore and waste requirements. The high waste to ore strip ratio means that much of the cost of mining is tied up in waste dumping. It is therefore very important to schedule waste efficiently. At Mt Whaleback there is an additional challenge of managing two types of waste: inert and environmentally sensitive pyritic material. This paper shows how the XPAC destination scheduler is configured to achieve efficient and repeatable waste scheduling results at the Mt Whaleback mine. It also discusses proposed improvements to the process. The overall ore and waste schedule is configured to target mining parameters, crusher feed and grades. The schedule is run in two stages. The first stage is ore mining. The waste that needs to be mined is locked in a sequence. The second stage is the waste scheduling. The waste destination scheduler uses three inputs: source waste parcels locked in a sequence, a haul road and a waste dump block model. The process involves setting some rules for dump progression and haul path selection. These can be validated. The schedule is then run to target the shortest travel time. The results of scheduling are graphical and numeric and can be transferred into many different formats for reporting. The graphical result shows face positions in time that can be used for detailed dump design. The numeric results are used to estimate truck fleet size, fuel consumption, labour and equipment financials. The process has been successful in reducing the project time line, increasing the ability to do more scenarios and increasing schedule accuracy, transferability and repeatability.

Jan 1, 2007

The Prospero orebody is a part of the Helene mine at Cosmos and was scheduled to begin production in March 2008 after the exhaustion of the Tapinos orebody in the same mine. Treatment of the Tapinos orebody was challenging and it was envisaged that Prospero would have similar properties given that it was also anomalous in deleterious elements and would be of a similar mineral hosting. It was deemed necessary to undertake a metallurgical test work program to identify any potential processing issues, complex mineralogy or significant metallurgical domains. The paper discusses the processes which were employed to undertake the metallurgical test work program and describes the aspects that can be employed by other developers to quickly and effectively assess potential future orebodies. It will demonstrate that the work was successful at determining expected metallurgical behaviour, providing direction for mining operations and highlighting areas for more extensive research.

Jan 1, 2009

Mining in Guyana dates back into antiquity and a brief history of gold and diamond mining and of the small-scale miner, the pork-knocker, is given. The gold and diamond deposits found on the beds and in the flats of old and present rivers and the current methods of investiga- ting these deposits are briefly described. Methods of mining these deposits including the small-scale hand methods of pitting and diving with or without helmets are also briefly described. 'The small-scale method of dredging using a suction dredge in conjunction with a diver is described in more detail, from its develop- ment to current practice, without giving too much mechanical and technical details. The organisation of the industry and the mining titles, laws and policy relating thereto are reviewed. A brief account is given of the socio- economic role of the industry. Conclusions are made regarding the need for improvements in existing equipment and financing and for incentives to stimulate production. The future outlook of the industry is con- sidered.

Jan 1, 1986

In this paper, a subtle, but important, difference has been drawn between responsibility and mandate. Responsibility has a connotation of financial involvement assigned to an organ- isation as a result of some action it takes, the ramifications of which can be ascribed directly to the organisation. In contrast mandate relates to the power and authority to act. The paper outlines the role of poli- ticians as community decision-makers and the need for Government policy to be flexible in an advanced industrial society so that decision- making options are kept open for as long as necessary. Further, broad community objectives need to be understood and defined so that plans and policies can be consistent. Co-ordination through communication at all levels, especially at the public administration interfaces and with the private sector,is essential for effective resource allocation and efficient implementation. The paper discusses several aspects of the infrastructure responsibility question and some considerations which might be viewed as important by the community decision-makers in considering what responsibility the "community" should accept in providing infrastructure.

Jan 1, 1974

By G Wood, B Lumsden

A statistical ærandomised block designÆ full plant trial of magnetic conditioning of flotation feed was undertaken at Rio TintoÆs Northparkes Mine in New South Wales. Magnetic conditioning of flotation feed has been shown to improve the flotation of 20 38 ¦m fraction for either metal. Approximately half the copper and gold losses at Northparkes are in the

Jan 1, 2007

By Kelly BJ, Smith GA

The recommendations of a recent American report on "Better contracting for Underground Construction" are considered in relation to Contracting practices on major Australian projects by representatives Of the "classical trilogy" - the Owner, Engineer and Contractor.

Jan 1, 1976

By Dight P. M, Dugan K. J

Design approaches for the artificial support of open pit walls have been reviewed and the main factors affecting support performance have been identified. An example of passive support in a potentially unstable pit wall has been used to demonstrate the importance of slope displacement as part of the support design process.

Jan 1, 1989

By Flloyd J. M

A continuous oxygen probe,incorporating a SIRO2 solid electrolyte oxygen sensor which measured the oxygen potential of a small volume of gas enclosed above the melt's surface,was constructed and tested. The oxygen potential of iron-silicate slags in equilibrium with solid iron in the temperature range 1250 to 1300¦C were measured continuously for tests of up to 40 hours duration. Results were in agreement with those of previous workers using gas equilibration techniques. Tests on non- iron buffered slags proved unsuccessful due to corrosion of the probe's component in contact with the slag and an alternative material is Required.

Jan 1, 1987

By Adhikari G. R, Raju N. M

The breaking of rock by explosives occurs so rapidly that the details of the phenomenon cannot he observed by the unaided eye. High resolution cameras and VCRs offer a means of slowing down the blasting action. A high resolution super video camera with digital zoom and a variable shutter speed was imported and used for the first time in India as a tool for blast optimisation studies at Malanjkhand Copper Project. Slow motion play-back revealed that the gases vented out through the fissures. The crest moved prior to the lower portion of the bench when initiated with detonating cord. The delay timing between the rows was not enough to provide sufficient relief and rock movement. This inadequate delay timing resulted in flyrock from the back rows. Stemming ejection was observed from practically all the holes. The muck profile was not satisfactory. A trial was carried out using 450 ms in hole delays and 25 nis surface delays. The front row holes were drilled based on the observations made from the laser profiling survey system. The video of the monitored blast showed that the rock started moving prior to the stemming ejection. It could be clearly seen that the entire block was completely initiated through the surface delays before the onset of the burden movement, thus eliminating any chance of misfires. Viewing blasts in high quality slow motion was useful to arrive at modified design parameters, resulting in uniform fragment size distribution and controlled rock movement.

Jan 1, 1995

Corrosion is a chemical or electro-chemical attack on a metal by the surrounding medium, and it can be stated in general terms that a non-corrodible metal possesses that property either because there is no chemical action between it and the medium, or because the medium reacts quickly with the metal to produce a thin protective coating.When iron or steel is attacked by dilute mineral acids, for example, the products of the reaction are soluble and the formation of a protective film cannot take place; on the other hand, rusting produces a porous film which flakes away and offers little protection to the underlying metal. However, when chromium is alloyed with iron, its resistance to corrosion is improved because the films produced on such alloys become more adherent and tenacious as the proportion of chromium is increased. Chromium is thus an essestial constituent of the corrosion- and heat-resisting steels.During the 40 years which have elapsed since their initial development, these alloys have made an important place for themselves in in<lustry and commerce, and it is the object of this paper to 'describe typical examples of the many types which are available; also, to give some indication of their particular properties, and applications in the mining industry.NOMENCLATUREVery few of the alloys which are about to be described can strictly be considered stainless, and most are not steels in the sense that they can he hardened by quenching from...

Jan 1, 1951

By M P. Sandy

Some Western Australian underground mines are challenged by very high stress gradients. This environment frequently results in poor induced ground conditions and damaging seismic activity. In some cases, rockbursting or squeezing ground has been observed as shallow as 250 m below surface. Very few mines operating at depths greater than 500 m experience no stress-related issues. As a general result of this difficult environment, there are a growing number of mines that are now challenged or have been closed by induced geotechnical problems. Often, the up-front savings or perceived advantage of an inappropriate mine plan may be entirely lost to the real cost of managing the hazards, or a write-down of reserves resulting from access difficulties will diminish the economic position of the mine. From an engineering perspective, it is best if stress-related hazards can be proactively minimised, because reactive measures offer less improvement in risk exposure. In this paper, some examples of sequencing techniques for managing difficult environments are contrasted with examples from mines where developing hazards have adversely affected production or the economic viability of the project.

Jan 1, 2003

In presenting size analysis data, one has the choice of various graphical techniques; each no doubt has been developed to highlight a particular aspect of the data. A frequency size distribution plot is used quite extensively to illustrate the importance of the finer size particles in iron ore granulation. However, the basis for such a plot is often not appreciated. As a result, cases of incorrect use can be cited. The aim of this paper is to extend the work of Alien (1981) and to provide, using examples and figures, a basic understanding of the implications of the various size distributions. A simplified method of presenting sizing data on a linear scale graph paper is presented and recommended. This involves a simple construction of a histogram of mass fraction versus particle size (in geometric progression).

Jan 1, 1992

Silver and gold bearing ore from the Palmarejo mine, located within the Mexican state of Chihuahua, contains a complex mix of electrum, native silver, silver sulfides and silver chlorides. This paper presents a case study that describes the selection, development and engineering of a tailored process plant for the recovery of silver and gold from this ore. Process circuit feasibility study modelling, metallurgical test work and engineering studies are outlined. Options considered to optimise the recovery of the contained silver and gold are compared, based upon cost, operability, recovery and engineering aspects. Concentration by flotation was found to be the preferred primary recovery route. Intensive leaching of the flotation concentrate resulted in solution grades sufficient to allow direct electrowinning to be evaluated against the more traditional Merrill Crowe process. The flotation tailings stream is processed through a separate leaching stage as there is sufficient economic metal extractable from this stream. The processing flow sheet, which is designed to maximise the recovery from both the flotation concentrate and tailings, and to utilise a common metal production facility, is presented.

Jan 1, 2009

By Thompson P, Sharma Y

The paper describes the methodology and results from a study carried out by Telfer Gold Mine to optimise the materials and costs involved in construction of the pad for their dump leach operations. The investigation involved large-scale field testing of five different types of liner and a number of different cushion and drainage layer configurations. The aim was to identify the most cost effective construction methods to allow the final dump height to be increased from 45 in to 60 in without causing significant damage to the liner. The effects of dump height on permeability were also investigated. These methods are described and results presented. The findings indicated that modifications to the existing liner/cushion layer/drainage layer configuration used previously at Telfer would actually reduce overall construction costs rather than increase them despite an increase in overall dump height. Relative construction costs are presented.

Jan 1, 1994

Capital expenditure on sampling and blending is often very difficult to justify. The costs are easy to estimate but the benefits likely to be obtained by constructing good sampling and blending facilities are generally difficult to estimate. For instance, improving blending of the ore feed to a smelter would improve throughput, yield and controllability ... but by how much? Similarly, better sampling would allow processing conditions to be dynamically adjusted and would improve extraction ... but by how much? Predicting benefits often requires the use of simulation models which carefully distinguish between true grades, predicted grades and observed grades. The parameters of these simulation models must often be estimated from rather inadequate information. These difficulties are illustrated using three scenarios.

Jan 1, 2005