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By A Keogh, P Allen, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Private equity (PE) firms are comparatively free of mandatory requirements for the level and scope of due diligence applied prior to making investment decisions in minerals projects when compared to listed entities, sovereign funds or financial institutions adopting the Equator Principles (Equator Principles Association, 2013). While this freedom allows for flexibility, agility and innovation in making investment decisions, it can also expose PE firms to material risks that may impact their ability to successfully list the projects or attract later financing.Financial institutions and investors with mandatory due diligence and disclosure standards may refrain from investment in or acquisition of a project if it fails to meet various performance requirements. There are many high-profile projects that have suffered significant write-downs on book value after acquisition because specific non-mining issues were not adequately assessed. Thus, a PE firm may be left with an asset that is difficult to divest and incapable of securing development finance.PE firms can manage this risk by being aware of the growth trend in the adoption of ‘international standards’ in addition to host nation standards and legislative requirements. This paper outlines key issues for PE firms to address to maximise the chances of obtaining funding or successfully taking an exploration or mining project through to listing or divestment. Two steps are required: identification of gaps in performance and priority matters of interest to financial institutions and development of action plans to ensure that the priority requirements are met or capable of being met.A PE firm can set its project for success by understanding the social and environmental performance requirements of international standard financiers and by setting the project on the right path to meeting these requirements, and thus making it an attractive investment.CITATION:Allen, P, Stoker, P and Keogh, A, 2015. Setting for success – private equity exploration and mining project buy-in to listing and divestment , in Proceedings PACRIM 2015 Congress, pp 93–100 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

At Cliffs Natural Resources Ltd (CNR) crushing and shipping sample stations, precisions are estimated for the sampling, preparation and measurement stages of iron ore sampling in accordance with ISO 3085 (2002). In this Standard, gross duplicate samples are prepared at each of the three stages, yielding eight measurement assays. Appropriate calculations of the differences between assay pairs are then made to estimate precision of each stage of sampling. The International Standard for checking precision in iron ore sampling, ISO 3085 (2002) prescribes a method for identifying outliers that is ambiguous and possibly inappropriate. The procedure also makes an unnecessary implicit assumption, that the differences between assay pairs are normally distributed. The Anderson-Darling statistic is used to demonstrate that in some cases the assay pair differences have distributions significantly different from normal. When applied at CNR as specified, the Standard leads to precision estimates well below the expected values, thus overestimating the sampling method's capability and limiting the opportunity for real process improvement. This paper suggests an improved method of estimating sampling, preparation and measurement precision. A bootstrap procedure is used to estimate confidence limits for the calculated precision estimates. The proposed method would be suitable for testing blasthole precision. The discussion is supported by extensive simulation modelling of realistic data.

Mar 1, 2010

By Hare S. M, Griffin P. T, O&apos

Chalcopyrite ore and converter slag treatment to produce copper concentrates is undertaken at the Copper Concentrator of Mount Isa Mines Limited. This concentrator was commissioned in May 1973, replacing the original No 1 Lead-Zinc Concentrator, for the processing of all chalcopyrite ore coming from Mount Isa Mine.Treatment of chalcopyrite ore at rates of up to 125 000 l/week is described here; the treatment of converter slag is described later.

Jan 1, 1993

By G Chitumbura

Raise boring is a critical aspect of mining at Xstrata Copper’s Mount Isa Copper Operations (MICO). MICO’s internal raise boring department regularly develops ventilation rises, orepasses and stope cut-off rises and reams approximately 2500 m per annum. Developed, trialled and implemented as standard practice over the past two years, procedural changes in constructing the raise bore machine’s foundations have significantly reduced operator exposure to raise boring’s inherent risks of working around open holes and manual handling. An additional cost benefit of this newly-adopted procedure is derived from reducing the likelihood of damaging the machine while de-rigging.When conforming to standard industry raise boring practices, exposure to an open hole begins when the reamer breaks through the concrete pad and ends when it is removed from the hole – a process which, depending on the size of the hole and the raise boring machine, can take up to three days to complete. Although wearing fall restraint equipment, operators working on and around the raise bore machine during de-rigging are continually exposed to the risk of falling from heights. In contrast, MICO’s newly-developed and successfully-implemented presink raise boring system reduces this exposure to a maximum of four hours, regardless of hole size. Exposure to manual handling hazards is also substantially reduced as the presink procedure eliminates manual placement of a 100 kg drill bit under the machine to commence pilot-hole drilling. Outcomes of implementing the presink System at MICO have been so beneficial that it is now standard procedure for all reaming in excess of 1 m diameters.

Mar 21, 2011

By C K. Boafo, J Visser

Obuasi Mine in Ghana, with more than 100 years of mining history, developed from a surface operation into a deep >2000 m underground gold mine. The challenge is to extract value from narrow veins left after extensive mining in the wider ore zones of the mine. Since the merger of AngloGold and Ashanti Goldfields in 2004 the mine strives to achieve optimum extraction through an integrated Mineral Resource management process from geological modelling, resource evaluation to mine design and scheduling. The shear hosted gold deposit displays complex secondary shears of variable thickness and continuity. There is an ongoing process of changes taking place in the way that geological modelling and resource estimation is done. Recent developments include the use of computerised systems that support the whole resource management chain from resource modelling to reserve optimisation. The change in thought and technology now allows for targeting narrow veins previously ignored in optimisation and mine design since moving into mechanised mining. The increased knowledge and confidence in the resource models now allows for flexibility in mine design, selection of mining method and scheduling and extraction of the reserves. The focus area for change is the way the orebody is evaluated and extraction designed. Since 2005 major changes were made to the process. This paper considers the historical approach of resource management. It looks at the individual process changes and qualifying the way ahead.

Jan 1, 2008

By Amanatidis A

In this paper, the kinetics of iron precipitation as sodium jarosite from aqueous solution is investigated. The determination of the reaction mechanism is attempted based on the experimental data of iron removal as a function of time, without using the characteristics of the precipitate.Experiments at the temperature range from 50° to 95°C were carried out with initial conditions of iron concentration IQ g/L, sodium sulphate concentration 25.44 g/L, sulphuric acid concentration 3.68 g/L, pH = 1.5 and agitation rate 600 rpm. Temperature greatly and positively influences iron precipitation from the solution and this is accompanied by pH decrease. The activation energy was determined using the maximum values of the precipitation rate, which were evaluated by polynomial fitting of the sigmoidal shape experimental curves, and it was found to be 44.37 kcallmole. The determination of the rate-controll ing mechanism was based on some criteria used for the discrimination among the three probable mechanisms of precipitation (diffusion, mononuclear nucleation, polynuclear nucleation). These criteria utilise various funetions of the recovery 'a' of iron precipitated versus time, the most important of which are the chronomals. The results of the kinetic analysis procedure showed that the polynuclear nucleation growth mechanism controls the precipitation of iron as sodium jarosite. This was confirmed by the high value of activation energy, excluding diffusion as the controlling mechanism.

Jan 1, 1993

Mount Gibson Iron Limited (æMount Gibson IronÆ) has made the difficult transition from a privately owned company with an iron resource to a publicly listed company owning and operating a profitable iron ore mine in the mid-west of Western Australia. The development of the company is described with particular emphasis on the Tallering Peak operations, resources, associated infrastructure and logistical arrangements; the Mt Gibson hematite and magnetite resources and the proposals to develop the magnetite resource as part of an integrated project through to iron pellet production. The concept of tailoring the relatively small ship capacity of the outturn port of Geraldton to appropriately sized inturn ports in China to allow direct delivery of product is discussed. The companyÆs philosophy of building shareholder value by progressive development of its relatively modest resources (compared with the Pilbara) is discussed. In pursuit of long-term business success Mount Gibson Iron has formed symbiotic relationships with strong business partners whose aims and objectives mirror or complement those of Mount Gibson Iron.

Jan 1, 2005

By S F. Rogers, K Doumis, J H. Graaf, B J. Barsanti

Advances in technology now allow geotechnical practitioners to better describe the properties and variability of a rock mass through advances in surface and underground mapping, borehole technology and geophysical imaging. Yet the way in which practitioners use this data is not being realised to its full potential and the quality and quantity of data that is collected is often superior to the conventional design approaches that are typically adopted. A discrete fracture network (DFN) approach provides the ideal basis for using this data to generate geologically-realistic rock mass models based on parameters derived from field data, which more effectively capture the variability and rock mass behaviour. However, until recently, the DFN approach has mainly been applied to cave mining and small-scale models associated with synthetic rock mass modelling or groundwater flow modelling for the nuclear waste and oil and gas industries.Ground support design for blocky rock masses in Australia is often dealt with in a rather traditional manner, adopting either an observational empirical approach through rock mass classification systems or conventional wedge stability analysis techniques. Using these methods requires several generalised assumptions about the rock mass fabric and excavation geometry. As such, the support system is often designed for a worst-case scenario based on a predetermined risk tolerance that the mine is willing to accept and a design block size that is generally determined by the proposed excavation dimension.A study by Doumis (2014) used conventional wedge stability analysis and the probabilistic key block analysis software JBlock (Esterhuizen, 1996) to estimate potential block sizes and support requirements. A DFN approach has also been adopted at Callie underground mine using FracMan™ software (Golder Associates, 2014). The methodology of the DFN wedge analysis will be compared with the key block analysis work undertaken by Doumis.CITATION:Graaf, J H, Barsanti, B J, Doumis, K and Rogers, S F, 2014. Towards the implementation of discrete fracture network modelling as a geotechnical design tool – case study of callie underground mine, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 399–408 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By A-M Fleury

There has been much progress on the issue of acid drainage over the past 20 years; however, significant challenges remain. The International Network for Acid Prevention (INAP) is attempting to address them by globally coordinating acid drainage information sharing and research. INAP pursues three branches of activities: it links AD research, practice, and people; it organises, sponsors, and participates in regional workshops as a forum for technology transfer; and it instigates and funds key acid drainage research projects. Through these activities INAP is helping the industry deal with what is arguably its most serious legacy issue.

Jan 1, 2003

By M Andrew, D McTiffen, M Adams

A major Ventilation Upgrade Project commenced at the Fosterville Gold Mine (FGM) in 2017 to service the ongoing ventilation requirements of the underground mining operation. The project consists of three large diameter ventilation raises totalling 1100 metres, and new axial primary ventilation fans to upgrade the mine ventilation system. With a mining depth of 1200 metres and a thermal gradient of approximately 2.7 °C per 100 metres of depth, the completion of the Ventilation Upgrade Project is key to the ongoing success at FGM. The Ventilation Upgrade Project will allow continued mining, including high-grade gold deposits, lower in the mine where heat is increasing. Figure 1 below illustrates the underground workings at FGM, and provides a general view of the ventilation upgrade works to establish the new exhaust system from the lower workings to surface. Whilst raisebore pilot drilling the H4760 Return Air Rise (RAR) from surface to 395 metres, the raisebore drill string became stuck in the raisebore pilot hole at approximately 300 metres down hole, presenting a significant technical problem and delays to the project. This Case Study provides an overview of the recovery process undertaken at FGM including the recovery of the stuck drill string. The value of the stuck in-hole equipment, the investment in the shaft site preparation, the collar stabilisation, the underground development to the base of the ventilation raise, the surface footprint prepared for the Primary Fans construction and the limited available space on the site were all motivations to recover the raisebore drill sting and ultimately recover the ventilation raise location. More importantly, the long lead-time required should a new shaft location be the final solution, and the delay this would incur to the ventilation upgrade was unacceptable. Recovery of the drill string was not possible using the capability of the Contractor’s Raise Drill. An alternative method for freeing the drill string was required. A significant amount of engagement with industry was undertaken to seek out potential solutions and draw from the experience of others. All methodologies available were considered and assessed. Ultimately, after several attempts at freeing the raisebore drill string using various methodologies, Adams Drillers and Clear Cut Interventions were engaged to provide a turnkey recovery solution.

Mar 15, 2021

In any strip coal mining operation the aosL important single operating unit is the dragline. Because the capital and operating costs of a dragline are high, it is desirable to operate these machines at their maximum efficiency. Thiess Bros. Pty. Limited operate a Bucyrus-Erie 1350 Walking dragline at their Callide coal mine. The operating conditions at the Callide Mine are different from those of other coal mines situated in Central Queens ,nd. The topography is rugged, the coal seam is thick, and the overburden is hard and inter- HH,inded. Several different operating techniques for a large dragline working under these con- ditinns arc discrossmd it tt

Jan 1, 1978

By J G. McLellan, B Miller

Copper and Gold mineralisation at the Ernest Henry deposit is bound by two controlling shears along the hanging wall and footwall margins. The shear zone geometries have been influenced by a large diorite intrusion, dated at ca. 1660 Ma, which lies to the north-east and south-west of the main orebody. The shear zones, which partitioned strain prior to the main mineralising event ca. 1514–1504 Ma, and in conjunction with adjacent regional structures, have been a critical factor in the deposit location and geometry. Conventional exploration techniques have been utilised proximal to the current deposit since the initial discovery in order to expand upon known resources, with limited success. However, new geomechanical modelling techniques have now been employed to target structurally controlled mineralised zones in three dimensions. The main aim of the geomechanical modelling was to simulate the effects of regional deformation events to highlight areas of anomalous strain, which indicate areas with a higher likelihood of fluid focusing and mineralisation potential. This project was focused on testing the latter stages of a D3 event (NE-SW compression) to examine preconditioning of the system, and a D4 event (SE-NW compression) which have ultimately been responsible for the current location of the mineralisation.CITATION:McLellan, J G and Miller, B, 2017. Geomechanical modelling of the Ernest Henry iron oxide copper gold deposit – identifying fluid pathways to predict potential mineralised zones, in Proceedings Tenth International Mining Geology Conference 2017, pp 75–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By H Yuan, H Tian, Y Zhang, Z Wang, C Wang

Submerged arc welding (SAW) is one of the significant metal-joining processes for manufacturing marine vessels, steel pipes, and offshore structures with high deposition rate and engineering reliability. Welding flux serves several essential functions, including atmospheric shielding, arc stabilisation, bead morphology control and weld metal (WM) refinement. Therefore, from a thermodynamic point of view, the focus for flux design and WM compositional/microstructural modification has been placed to elucidating the transfer pathways and mechanisms of major alloying elements, such as Si, Mn, Ti and O during welding. To this end, a thermodynamic model has been established to predict alloying element contents in the WM. Such functions are enabled by the physicochemical properties of the fluxes, which are inherently rooted in the nature of the fluxes. A unique yet systematical investigation, including physicochemical property changes and structural evolution behaviours, has been conducted over the wide range of fluxes applied to actual welding of EH36 shipbuilding steels. Combined with spectroscopic methods, structural behaviours of network formers such as SiO2, Al2O3 and TiO2 and network modifiers such as MgO, MnO and CaO have been illustrated. Viscosity and ionic conductivity have been found to be positively associated with the degree of polymerisation.

Aug 21, 2024

By B Murphy, T Mattsson, R Crosbie, T Maksimainen

"An Outotec e500 TankCell, with 500 m³ of actual flotation volume, was commissioned at the Kevitsa Cu-Ni-PGE concentrator in northern Finland during 2014. This flotation cell was implemented at the head of the existing copper circuit as the first Cu rougher flotation cell. This was the first flotation cell of this size to be run under production conditions by any supplier anywhere in the world.The cell has been in continuous operation since start-up in October 2014 and has provided improvements in metallurgical performance at very low specific power consumption. On average, the cell has recovered 71 per cent of copper contained in the 0.37 per cent Cu flotation feed at a concentrate grade of 17 per cent Cu. The specific power consumption for the cell (excluding blower power) is typically around 0.4 kW/m³.After start-up, the impeller speed and superficial gas velocity were varied and the impact on metallurgical performance measured. In this paper a review of the cell operation at Kevitsa is given. Furthermore, the impact of mixing and gas dispersion on metallurgical performance is presented.Citation:Crosbie, R, Mattsson, T, Murphy, B and Maksimainen, T, 2016. Metallurgical Performance of Outotec's e500 TankCell at the Kevitsa Cu-Ni-PGE Concentrator, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 127–134 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By I Canbulat, J Emery, L Yao and C Zhang

This paper documents a process of data analytics and machine learning applied to coalmine roof convergence data. It follows a publication documenting the formation of the database. For each set of analyses Python scripts were utilised to extract data from an SQL database, with subsequent analyses also executed in Python, utilising open-source tools such as scikit-learn. Preliminary analyses with classic machine learning algorithms included multiple logistic regression, K-nearest neighbours, decision tree, random forest, support vector machine, kernel support vector machine, artificial neural network (ANN), naïve Bayes and multiple linear regression. Results indicated that relationships were complex and non-linear, with the artificial neural network most suitable. An ANN model was then refined through a standard process of hyperparameter optimisation and data augmentation to arrive at a final model. Due to the black box nature of the ANN further insight into how the parameters interacted was sought and found with Shapley additive explanations (SHAP values). SHAP values utilise Game Theory, where each input parameter or feature is a ‘player’ while the data set is the ‘team’. The SHAP value is the impact of each player on the target value, essentially establishing the contribution of each input parameter. The results from all analyses are delivered in the paper, together with insights, applications, strengths, and limitations of the methodology.

Nov 29, 2022

This paper addresses the unique environ- mental programmes which prevail at Ranger and their importance in the future profitability, of Ranger Uranium Mines Pty Ltd. (RUM) Industrial relations, general safety, and occupational health have long been regarded as part and parcel of the concept to 'manage for profits'. More recently, the need for environmental protection has also become an important management consideration. This is particularly so at the Ranger Uranium Mine where environmental protection is very closely and continuously regulated. Since the commencement of operations at Ranger some three years ago the company has operated within these regulations and demonstrated clearly that yellowcake can be produced efficiently, economically and safely. The company also recognises that in order to ensure continuity of production, it will have to continue to operate within these strictly supervised Regulations.

Jan 1, 1984

By J A. Meadows, M G. Annandale, G Castelain

Bauxite mining on Cape York Peninsula (CYP) commenced in the early 1960s in the region surrounding the town of Weipa. Rio Tinto Alcan (RTA) operates its bauxite mines on the homelands of 11 Indigenous Traditional Owner groups. The mining activity currently operates under three Aboriginal Agreements including an Indigenous Land Use Agreement – the Western Cape Communities Coexistence Agreement (WCCCA) – which provides RTA with access to the land in return for a range of benefits to the Traditional Owners, including employment, training, royalty payments and future relinquishment of the land (Klimenko and Evans, 2009). Despite reports of some ‘good progress’ in meeting the terms of the WCCCA (Klimenko and Evans, 2009, p 5), many of the region’s Traditional Owners remain dissatisfied. Two key areas of Indigenous community concern are the current premining management practices and the outcomes of post-mining landscape rehabilitation efforts.CITATION:Annandale, M G, Castelain, G and Meadows, J A, 2016. Sustainable mining – indigenous community benefit, in Proceedings Life-of-Mine 2016 Conference, pp 173–175 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By D Semini, B Newcombe

Base-metal sulfide refractory gold ores often contain a portion of ‘free’ gold that is amenable to recovery using gravity concentration methods, whilst the refractory portion of the gold is better recovered using flotation. The decision as to whether a plant treating a refractory gold ore should utilise gravity concentration or a flash flotation circuit (or a combination of both) within the grinding circuit is usually made at the design stage of flow sheet development. Very limited data is available in the published literature which provides an industrial scale comparison on which to base such a decision and conventional laboratory testing methods are often the only way of obtaining such data. The optimum processing route will also be mineralogy dependent.This paper presents the findings of operating a refractory gold plant with either flash flotation (normal operation) or a combination of flash and gravity recovery methods treating the cyclone underflow stream and will demonstrate the regions of the recovery profile that each contributes to. Size-by-assay analysis has been performed on a number of streams around the operating plant to gain an insight into the changes that occur when the gravity circuit is in operation in addition to the flash flotation circuit. A discussion around the implications to overall plant operation in combining the use of a batch process (gravity concentration) with a continuous process (flotation) is presented.CITATION:Newcombe, B and Semini, D, 2014. Interactions between flash flotation and gravity concentration – an industrial case study of a refractory gold concentrator, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 427–436 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By B Lance, D O’Brien

The Hidden Secret ore body is located within the Mt Charlotte underground mining system in Kalgoorlie, Western Australia. Mineralisation of the Hidden Secret ore body is lode style and therefore differs from the typical economical mineralisation mined at Mt Charlotte and consequently demanded a novel approach to the mining methodology. The ore body is lens like in shape, extending 200m along strike, 210m vertically, and dipping at 55 degrees. The lode width varies from 1.5m at the extremities to over 22m in the central zone of the ore body. Average grade is 3.4 Au grams per tonne. The initial mining methodology was Modified Avoca utilising Longhole Open Stoping with pillars, in a bottom up stoping sequence. However, as Hidden Secret became better defined and wider than initially modelled, it was identified that a high portion of gold would remain in the pillars and other mining concerns emerged such as remote backfilling large open voids and potentially unsafe vertical standoff distances between levels and wide open stopes. A re-evaluation of this method was undertaken and a new approach adapting a variation of Avoca methodology was identified to remove the rib pillars and replace them with a sill pillar separating the 4 levels into 2 distinct blocks. This new approach provided an immediate advantage by removing the bogger backfilling activity from the same level of the active stope front, enabling stope drilling and prepping to occur during the backfilling cycle. Bogging productivity has also improved as the fired ore is funnelled to the draw point by the backfill rill, significantly reducing the requirement for remote bogging thus improving bogging productivity. This mining method is currently in progress in the first of the two mining blocks and is on track to realise the targeted recovery of 7,700 ounces from the rib pillars.

Mar 15, 2021