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By S C. Dominy

The gravity recoverable gold (GRG) parameter reflects liberated gold or gold-dominated composite particles that can be recovered by gravity separation. Recoveries depend upon mineralogy, in situ particle size and the comminution and extraction method used. Any ore bearing >15 per cent of gold greater than 50 ¦m in size is likely to have a GRG component. The principal characterisation methodology applied is the three-stage GRG (3GRG) test, based on a 40 kg to 100 kg sample. An alternative is the single-stage GRG test (SGRG), which is generally based on a 20 kg sample. Experience has shown that GRG values can vary throughout an orebody, particularly within different grade and/or mineralogical domains. Test programs must consider sample frequency and mass. This study demonstrates the variability of GRG results based on different sample masses. Consecutive underground faces on a coarse-gold dominated quartz vein were sampled taking five different masses from each. Each sample was processed using a SGRG approach. Subsequently, each development round was batched through a small gravity production plant. The results show that the small samples understate the plant GRG and show inter-sample variability. Large samples show less variability and a SGRG closer to the plant GRG. A high SGRG broadly correlates to higher gold grades, more coarse gold and larger gold particles. These results are intuitively correct, but indicate the likely challenges of sampling for gold recovery in heterogeneous systems.CITATION:Dominy, S C, 2013. Variability of gravity recoverable gold values in relation to test sample size, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 293-302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By P Klaric, N Swart, S Barnes

The recent advances in digital imaging technology, specifically around photogrammetry, have facilitated precision measurement in the difficult conditions encountered in an underground development mining environment. With the recent downturn in the resources industry, many mining houses have begun to focus on cost reduction projects and driving efficiencies. The application of digital photogrammetry has allowed greater insight into the development mining cycle and supported a focus on areas where efficiencies and cost savings can be achieved. Data collation, via digital image capture, can be completed with minimal disruption to the development mining cycle with analyses taking a nominal time to process and interpret. The result can be a stark visual representation of the result of blasting and associated activities of the development mining cycle. Many millions of dollars of benefit can be derived from understanding the impact of each component of the development mining process, with some of the biggest savings associated with conformance to drill design and the minimisation of overbreak during blasting. This paper will explain the image capture process, analyses and instigated improvement opportunities that were undertaken at a number of mine sites to improve efficiencies and drive savings in their development mining processes.CITATION:Klaric, P, Swart, N and Barnes, S, 2017. Digital imaging provides valuable insights into underground development mining, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 129–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By R Stimpson, B Johnson, B Hesse

During a period of twelve months between FY18-19, a series of trials were conducted to compare production drilling accuracy using two different methodologies, and the subsequent impact this had on stope performance (dilution and recovery). Testing was conducted at a series of underground mines in Australia. The drill rig’s existing alignment processes were compared to a new technology system, with the following observations: • The new technology was proven to limit rig alignment error, thereby reducing average blasthole deviation, resulting in an increase in the number of holes drilled within tolerance by up to 160%. • The increased accuracy reduced stope dilution significantly by reducing over-break of subgrade ore, whilst also increasing drilled meters (faster stope-cycle time), reducing the bridged tonnes ratio, and facilitating the capture of previously uneconomical stopes. A cost-benefit analysis extrapolated from each of the trials showed the extent to which the new technology, when applied to production data, reduced average dilution, increased ore recovery as well as general drill and blast productivity. In one such trial, the new technology was proven to have reduced average dilution by net 45.4%, which if applied to a full year’s production data, would result in AUD8.2M additional ore recovered, with AUD4.5M less spent on wasted cost of haulage and processing of diluted ore. As a result, return per tonne would increase 22%, from AUD87 to AUD106. This improvement was maintained over the following 12 months – reducing average dilution from 22% in FY17 to 12.1% in FY19.

Mar 15, 2021

By R Crosbie, K C. Runge, E Tabosa, J K. McMaster

Flotation feed density is an operating parameter which is currently not well understood. Most models of flotation only incorporate its effect on particle residence time, but it is likely to have additional effects within both the pulp and froth phases of the machine. Test work was performed in MetsoÆs 3 m3 RCS test rig to investigate the effect of flotation feed density on metallurgical performance. The rig was operated at Rio TintoÆs Northparkes operation using flotation feed and scavenger tail. For each feed, tests were performed at different feed densities, and measurements were performed to estimate the pulp and froth recovery as well as other key flotation parameters (eg bubble size, turbulence and froth stability). Results of this test work have shown that the pulp density does affect key parameters of the flotation process in both the pulp and froth phases. Pulp phase kinetic rates decrease at high density and this is attributed to a reduction in the turbulence within the cell. Froth phase recovery, however, improves presumably because of a stabilising effect due to a greater loading of solids on bubble surfaces.There is a need for more research to be done to better understand these interactions so that metallurgists can determine the optimum flotation feed density to use at a particular operation, or within a section of a flotation circuit.CITATION:Runge, K C, Tabosa, E, Crosbie, R and McMaster, J K, 2012. Effect of flotation feed density on the operation of a flotation cell, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 171-178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By N Clarke, J Hunt, A Barros, L Keeney

The Gramalote orebody is a large low-grade gold deposit situated in the San Roque municipality, 124 km north-east of Medellin in Antioquia, Colombia. It is jointly owned by AngloGold Ashanti (AGA) and B2Gold and is currently in Feasibility Study phase. In 2013 AGA requested CRCORE to undertake a preliminary study of the potential application at Gramalote of pre-concentration by screening, part of the Grade Engineering suite. 160 samples of coarse assay rejects (-3 mm) were tested and showed one of the strongest responses seen worldwide to that time, suggesting that about 70% of the gold could be recovered into 40% of the mass. This was seen as potentially markedly improving the Gramalote economics. A large-scale testing program was implemented on site to follow up these results. A total of 18 samples of 17 t each were mined along a pre-existing exploration adit. A complex test flowsheet allowed size fractions to be generated from the as-received material as well as after crushing to 53, 23 and 3 mm, all from the same head sample. The procedures were designed after carrying out a heterogeneity study to measure sampling errors. The coarser size fractions were designed to study the effect of crushing on upgrade response and predict the response on open-pit run-of-mine ore. The finer size fractions were designed to investigate means of predicting the upgrade response across the orebody. The large-scale testing closely confirmed the average upgrade response as predicted from drill core assay rejects but found that only the -53 mm crushed material accurately predicted the upgrade response of individual samples. Ore geochemistry was able to usefully distinguish samples with good and poor response. A small study on drill core suggested that, for Gramalote, fine crushed material distinguishes vein associated and disseminated values but not other factors that control actual outcomes.

Nov 10, 2020

By D Davis

The prediction of ground-borne noise levels from tunnel construction activities requires knowledge of the input vibration forces from the vibration source(s) into the cutting face, knowledge of the vibration transmissibility through the surrounding medium, and knowledge of the receiver building’s vibro-acoustic response. The conversion of this vibration energy into sound pressure within the receiver building depends upon the vibration coupling of the soil and the building’s foundations, the structure’s response including floor-to-floor attenuation and amplifi cation due to resonance, the radiation effi ciencies of the internal structural elements, and the room’s acoustical properties. Beginning with a known input vibration spectrum at the cutting face, it is possible to predict the resultant ground-borne noise levels within a receiver building using either analytical and/or empirical techniques, or by numerical modelling. This paper presents an overview of the various methods available to estimate ground-borne noise levels from tunnel construction activities and discusses the advantages and limitations of each.

Mar 8, 2011

By B Roache

Ground support installation into the face of development headings has become an accepted practice at many Australian hard rock mines. Ground support is installed in the development face to reduce personnel exposure to rockfall while conducting work tasks such as marking up, installing lifter tubes, charging, and face sampling. The ground support system installed in the face is typically friction bolts and mesh. This support system can be effective at reducing rockfall occurrence, but it also increases the cost of development per metre, in terms of capital for the ground support, jumbo and operator capital allocation and the installation time slowing each drill and blast cycle. Other issues associated with meshing and bolting the development face include management of rock bolts and mesh sheets in the fired dirt of every cut, damage to services such as vent duct, geometry issues when installing ground support onto irregular development profiles and operator error. Fibrecrete installation onto the development face for support is an option considered by many mines, but it can be difficult to manage due to the removal of visual indications of misfires and slowing the mining cycle due to the wait time for fibrecrete curing. The use of Thin Spray Liner (TSL) products in underground hard rock mines has been relatively infrequent in the past, mainly due to issues with cost, health and safety, and liner strength. Kanmantoo Mine investigated the use of TSLs for the purpose of development face support, while collecting data on the costs and practicalities associated with their use. Several TSL products were trialled and a preferred TSL product was selected for use as face support. Cost savings, drill and blast cycle timing improvements and other benefits were achieved while meeting the requirement to reduce rockfall risk.

Mar 29, 2023

By P Hagan, S Campbell

A study was undertaken using various methodologies to determine the optimum loading and hauling configuration for different haul routes at Callide Mine, a coal mine located in central Queensland. The study involved development of an effective flat haul model that was used to estimate production rates in truck and shovel circuits that employ two excavators of differing capacities then Queuing Theory to construct a capacity constraint model for scheduling purposes to assist in truck allocation and finally a cost model to determine the most cost effective fleet configuration.The model was calibrated using haul road design and performance data of trucks and excavators currently in use at the mine. The study examined the effects of cycle time for different truck and excavator fleet configurations on production rate and costs.The study found haulage cost was directly related to cycle time while production rate reduced with cycle time. The study indicates the approach taken in combining a cost model with a capacity constraint model offers a simple and effective method of scheduling an optimum number of trucks in a haulage circuit.CITATION:Campbell, S and Hagan, P, 2012. Selection of an optimum truck and shovel fleet based on effective flat haul and capacity constraint modelling, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 19-26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

By I M. Platten, S C. Dominy

The Clogau St DavidÆs gold mine has a recorded production of around 81 000 oz Au and it is the largest mine in the Dolgellau gold-belt and BritainÆs most prolific historical producer. The original mine was first worked for copper, however; in 1854, gold was found in waste material from the St DavidÆs section. In recent times the mine has operated intermittently between 1983 - 2007. The principal black shale-hosted gold-bearing reef (Main Reef) can be traced for about 3 km, striking approximately NE-SW and dipping steeply between 60¦ - 90¦ SE. The reef system pinches and swells, changes strike and splits into a number of smaller branches. Reef width is variable, ranging from over 6 m to a few cm and in places reducing to small irregular blobs. The reef is internally complex and composed of swarms of narrow (1 - 300 mm) subparallel veins separated by country rock sheets. The gold-bearing veins within the reef package are discontinuous; though generally possess bonanza grades running 10s - 100s oz/t Au. It has historically been shown that some gold-rich vein segments can grade up to 300 oz/t Au. The predictability of the gold-rich segments is poor, but has been shown to be related to presence of the Clogau (black shale) Formation, and/or the mechanical interactions of the reef with greenstone sills, reef branching and splitting and/or cross-fractures to form ore shoots. The mine is currently being re-evaluated as a potential small-scale selective operation.CITATION:Dominy, S C and Platten, I M, 2012. Geology, mineralisation and potential of the Clogau St DavidÆs mine, Dolgellau gold-belt, Gwynedd, Wales, in Proceedings Narrow Vein Mining 2012 , pp 101-120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By A Garvie, D Kentwell, J Chapman

"Most new mining projects require an initial assessment of the locations and volumes of potential acid forming (PAF) waste that is likely to be moved and dumped in surface waste stockpiles. This requires sampling of the waste rock zones and submitting the samples for a series of tests. Key to the outcome of the waste characterisation process is obtaining sufficient samples that are representative of the various rock types both in number and spatial distribution.Various regulatory bodies throughout Australia and the rest of the world are currently struggling with how to define minimum amounts of sampling to achieve realistic estimates without imposing excessive costs and time constraints on a project.This paper addresses two aspects of the process: what constitutes a æsufficientÆ number of samples how to use those samples in determining volumes of likely PAF material.Geostatistical methods of characterising orebodies with large numbers of samples are routinely used in the mining industry by geologists and geostatisticians to estimate and classify Mineral Resources. In theory exactly the same methods can be used to estimate PAF waste locations and volumes.In practice the number and spatial distribution of dedicated PAF waste samples at feasibility stage is typically so small that it is almost impossible to estimate the spatial distribution of PAF material with any degree of confidence at all. Consequently, the common approach is to characterise a few samples from a lithological unit and then assume that they represent the unit as a whole. This approach, however, can be fraught with risk.This paper describes some of the findings of SRKÆs evaluation of several coal projects with respect to PAF waste evaluation and highlights some common misconceptions held by people working in this area that do not have a knowledge of statistics or geostatistics.CITATION:Kentwell, D, Garvie, A and Chapman, J, 2012. Adequacy of sampling and volume estimation for premining potential acid forming waste evaluation using statistical and geostatistical methods, in Proceedings Life-of-Mine 2012, pp 79-88 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 10, 2012

By Y Xu, T Rowles, B Dareeju, A Dissanayake

Recent updates on tailings dam design guidelines require analysis of undrained (short-term) stability with the application of the SHANSEP model. The SHANSEP model, which was originally developed for alluvial soils, predicates that the Undrained Shear Strength (Su) increases with increasing effective stress. Residual soils by their nature do not necessarily follow this relationship. This paper examines an alternate method to define Su over a range of effective stress conditions for residual soils. Residual soils, formed by weathering of their parent rocks, are generally micro-structured in nature. The microstructural features, such as interparticle bonding, play a fundamental role in stress-strain behaviour of the residual soils. As interparticle bonding is independent of effective stress and void ratio, the undrained shear strength of residual soils is expected to be less dependent on effective stress than alluvial soils, especially at low stress levels. A series of triaxial tests conducted on residual soils, however, indicated that the undrained shear strength and the undrained shear strength ratio (Su/σv’) are to a degree dependant on effective stress. It was found that the undrained shear strength ratio is significantly higher under low stress levels and progressively reduces with increasing effective stress. Based on the laboratory testing data, a strength function with varying undrained shear strength ratios can be developed for the residual soils under the stress range anticipated for a design of a tailings dam. This includes capping the input undrained strength at lower effective stresses based on the drained (effective) and minimum undrained strength. The Factor of Safety (FOS) calculated for the embankment utilising the traditional limit equilibrium (LE) method indicated the application of undrained strength function for the residual soils can provide a significant optimisation for the embankment design compared to adopting a constant undrained shear strength ratio or constant undrained shear strength in the design.

Jul 1, 2021

By C Balci, D Tumac, A Sheterpour-Mamaghani, E Dogan, A Kocbay, T Erdogan, A Gumus, H Copur, E Altintas

Excavation of vertical and/or inclined shafts in the underground structures requiring careful design and planning. Raise Boring Machines (RBMs) are commonly used for excavation of shafts for different purposes such as ventilation, orepass, and human-material transportation. Proper selection and accurate performance prediction of RBMs are two main parameters affecting the cost estimation and planning/scheduling. Indentation test is one of the most preferred methods that can be used to predict advance rate of RBMs. This study aims at suggestion of new prediction model for instantaneous penetration rate of RBMs based on indentation tests. Different rock (core) samples (with different geological origins) are obtained from the raise boring application projects in Turkey; then, the indentation tests are carried out on them by using a real-life insert (button), which is used in reamerhead cutters investigated in this study. Finally, the statistical relationships between the field performance and the indentation indices are investigated. The study indicates that the brittleness index (the ratio of maximum applied force to corresponding penetration) can be used to predict instantaneous penetration rate of RBMs used in the vertical raise bored shafts excavating rocks having uniaxial compressive strength lower than 100 MPa.

Nov 29, 2022

The New Zealand Minerals Industry Association was incorporated as the NZ Mineral Exploration Association in 1982, with a membership that consisted of the gold exploration companies then active in New Zealand . As its membership broadened, it changed its name to the Mining and Exploration Association in 1994, and more recently the Minerals Industry Association. It is a non-profit-making incorporated society relying on voluntary membership, and is not funded by industry levies.   It has employed a full time executive director since 1988 when Robyn Ross was appointed, followed by John Pfahlert (1991 - 1996) and now with Doug Gordon managing the Association.   The Association is one of a number of organisations that represent the mining industry in New Zealand. Others include the Coal Association of NZ (CANZ), the Aggregate and Quarry Association (AQA), The West Coast Commercial Gold Miners Association and Minerals West Coast.   NZMIA membership comprises the main exploration and mining companies that account for over 80 per cent of New Zealand Æs mine output, and nearly all of its exploration investment. Its membership has expanded from gold exploration to encompass exploration and mining companies active in coal, gold, aggregates and industrial minerals.   The Association has developed a National Minerals Strategy that determines its priorities, implemented via a Minerals Industry Advisory Committee. This group was established six years ago to advise the Associate Minister of Energy on issues relating to the long term development of the minerals sector in New Zealand.

Jan 1, 2006

Rope guides, consisting of ropes spanning between anchor points at the top and bottom of shafts, have frequently been considered as a viable alternative to fixed guides, comprising buntons and guides. However, their design has generally been based on empirically derived rules, arising from European hoisting practice of 50 to 100 years ago. This paper describes a recent technology development project aimed at defining and quantifying the important forces acting on rope guided conveyances, calculating the resulting displacement of the conveyances and assessing whether the displacements are acceptable or not. The paper describes the derivation of aerodynamic force coefficients based on CFD analyses and other significant forces acting on the conveyance and rope system. The conveyance displacements may be calculated using computer simulation of the mechanical system, or approximately using simplified equations given in the paper. Measurements taken to confirm the suitability of the proposed formulation are described. The combination of displacements and assessment of the rope guide system design are proposed, based on the ratio of design clearances and the predicted displacements.

Jan 1, 2005

By M S. Reston

The Tonkolili banded iron formations (BIF), Sierra Leone, host extensive iron ore deposits which are of economic signifi cance to the seaborne iron ore trade. The deposits are dominated by a strategic JORC compliant mineral resource of 11.6 Bt grading 30.1 per cent Fe comprised of primary magnetite mineralisation in the form of a fresh metamorphosed BIF featuring a uniform mineral assemblage of quartz-magnetite ± ferro-silicate minerals. Pilot plant metallurgical test work has demonstrated that the production of a magnetite concentrate is achievable using the established beneficiation techniques of magnetic separation and flotation. The concentrates arehigh-grade, and suitable for blast furnace or direct reduced iron pellet feed. The major challenge facing the development of such magnetite deposits at industry competitive production rates is the significant capital investment required for process plant and associated infrastructure.Two well-developed weathering zones exist within the deposits, and are associated with the progressive development of a tropical weathering profile overprinting the primary BIF. These zones feature a near surface hard indurated duricrust up to 60 m thick, and a soft progressively developed saprolite between duricrust and fresh BIF. These zones have been found to be amenable to producing iron ore products including DSO lump and sinter fines from the duricrust, and concentrate from the saprolite. Mineral resources sufficient to support commercial production of such iron ore products were defined by an intensive exploration program in 2010.African Minerals Limited has developed a three phase production strategy to progressively self fund the development of the Tonkolili strategic magnetite project by:• commencing a Phase I 12 Mt/a DSO operation in Quarter 4 2011,• increasing production in Phase II to 35 Mt/a with the commissioning of a saprolite beneficitation plant and associated infrastructure upgrades, and• developing a 45 Mt/a Phase III operation producing high-grade magnetite concentrate.The comparatively low capital and operating costs of a duricrust DSO lump and sinter fines operation coupled with its proximity to ground surface make it highly attractive for the generation of early cash flow for the Tonkolili project. Revenue from this early production may be used to selffund the subsequent development of phases requiring progressively more significant beneficiation plant and infrastructure.

Jul 11, 2011

By D Cork, R Peet

"Methane is a signifi cant greenhouse gas. Methane is released from coal seams during the mining process, both in surface and underground operations. This uncontrolled release is termed æfugitive emissionsÆ and in underground mines is transferred to the atmosphere in ventilation air, known as ventilation air methane (VAM). The global VAM emissions are over 369 Mt of CO2-e/a (Butler, 2011; US EPA, 2010). Coal mines may abate this VAM or consider abatement should there be a price on carbon. These fugitive emissions are heading towards ten per cent of AustraliaÆs emissions by 2020 (Department of Climate Change, 2011).There are safety issues involved in VAM destruction. Due to the nature of coal, and coalextraction, unpredicted methane spikes above the lower-explosive-limit (LEL) can occur in theventilation air; for example outburst events or ventilation failure. This could lead to a mine fi re ifthe mine ventilation air was connected to a VAM abatement plant and the risks are left unmitigated.CorkyÆs is working with the mining industry to directly address these safety issues. CorkyÆs calltheir technology VAM RAB, which stands for ventilation air methane regenerative afterburner(VAM RAB). VAM RAB utilises the principles of a thermal oxidiser.This paper discusses fi ve independent layers of protection (ILPs) to fi rst stop methane reachingthe thermal oxidiser and secondly prevent the fl ame front from burning away from the VAMRAB. The test work completed or contemplated includes safety integrity level (SIL) assignmentto various vents, barriers and door systems to prevent a fl ammable mixture reaching the VAMRAB, proven rapid response methane monitoring sourced from the petrochemical industry, anddefl agration experiments to test the eff ectiveness of the passive geometry and active engineeringcontrols. These experiments and SIL assessments indicate that it is possible to safely connect theVAM RAB to a working coal mine.Further work is required to upscale the pilot safety work. Refi nement to the design is possible;for example improvement to safety duct controls once trialled at demonstration scale plus thermalenergy capture for power generation or other applications to provide heat. Nevertheless, thispaper shows how safety issues can be managed by a multilayer of protection approach usingvents, barriers and doors, and appropriate thermal oxidiser geometry."

Jun 1, 2012

By I T. Ross

In the last 50 years there have been tremendous improvements in equipment used in development on underground mines. Compressed air powered jacklegs have been replaced by high powered electro-hydraulic drifters on sophisticated drill jumbos and load haul dump units have taken over from small shovels and rail cars.Despite the increase in power applied in key parts of the development cycle, average advance rates have fallen and costs have increased. The factor that is most often regarded as the main contributor to slowing advance rates is increased support requirements. Whilst there is no denying that the drive to improve safety has resulted in the requirement for more bolting and the installation of a skin support (mesh or shotcrete), this is not the only factor.Within the industry as a whole, many of the basic principles of development appear to have been lost over time. This paper looks at a historical case study and discusses some of the features of old development cycles that are no longer in use. This highlights some of the basics that appear to have been forgotten. These may be indicators to what may provide improvements in the conventional drill and blast development cycle.CITATION:Ross, I T, 2014. Development – back to basics, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 67–74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

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

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By A J. Moore

Blasting operations in open cut mines results in airblast, ground vibration and rock movement with the potential for wild flyrock. In some mines there is a trend towards blasting closer to established infrastructure as extraction boundaries alter with increased resource prices and changed economic circumstances. Mine infrastructure in close proximity to blasting has the potential to be damaged by ground vibration and wild flyrock especially. To provide guidance for the determination of appropriate buffer distances and blast specifications, this paper describes methodologies that may be used to determine the potential for damage to infrastructure by predicting:dynamic blast;near field ground vibration levels;dynamic blast strains induced in infrastructure by consideration of ground vibration,ground strain and response amplification;potential for damage by comparing induced strains with allowable working strainsfrom structure design codes and serviceability requirements; andflyrock throw distances based on models developed from flyrock investigations.This report demonstrates the use of strain prediction methodologies developed during Australian Coal Association Research Programme (ACARP) Project C14057 for infrastructure such as conveyor belts, transmission poles and towers, buildings and bridges.

Nov 8, 2011