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By J P. Sykes, A Trench

Mineral commodity prices are subject to volatility over both the short and longer run – driving fluctuating operating margins for mining companies over time. Such market dynamics influence mine operating decisions depending on the interplay of company-specific and mineral market factors. The company factors include corporate financial strength and price-risk management strategy, as well as mining practices and methods at the operation level. The critical mineral market factor is the price of the ex-mine product. This results from underlying microeconomic and macroeconomic root-causes pertaining to mineral supply and demand, in addition to the activities of financial participants within commodity markets.Significant changes in commodity prices of an extended duration, either up or down, remain the principal influence upon mine economics – and therefore on mining practices too. Accurate and precise forecasting of commodity prices (and of relevant exchange rates) continues to prove elusive both to mineral economists and market analysts. Thus, at any given point in time, there are often widely differing price forecasts available for both the relevant commodity and currency. Companies as a result are unclear how to respond in practical operating terms to such price-side uncertainty – other than to manage incremental capital and operating expenditure. Typical company – and industry financier – responses to the difficulty in predicting future mineral commodity prices are to take measures to manage uncertainties in mining project revenues and costs. These operating practices are prudent – yet come at an economic cost: that is, lost revenue and margin opportunity is inevitable in any such system not easily capable of responding to price volatility in the market. The mine of the future will seek to capture this lost economic opportunity. This paper presents a three-stage framework for analysing commodity price forecasts to aide understanding of the commodity price cycle and the periods of high-margin opportunity.CITATION:Trench, A and Sykes, J P, 2014. Perspectives on mineral commodity price cycles and their relevance to underground mining, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 19–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

Although forty-seven years have passed since the by-product coke oven made its successful commercial appearance, it is only during the past fifteen or twenty years that this system of coal carbonisation has advanced rapidly to its present position ofabsolute supremacy.Early designs of by-product ovens proved more or less faulty, and the coke produced was so inferior to coke made in beehive ovens that there was a natural hesitancy on the part of coke producers to invest large sums of money in installations of by-productovens of doubtful utility-more especially in view of the fact that beehive ovens could be erected cheaply and operated by non technical labour for the production of high-grade coke under the most variable conditions of trade.Surely and steadily designers brought forward by-product ovens of improved type, coupled with more efficient apparatus for the recovery of by-products, but still the industry lagged, due almost entirely to the insistence on the part of coke users that the qualityof ordinary beehive coke was vastly superior for metallurgical operations to the best coke produced from by-product ovens. So deep rooted was this prejudice that only the passage of time could eradicate it. That it has successfully done so is strikingly illustratedin the following statistics:

Jan 1, 1928

By Rogers M, Sullivan B

Golden Crown Mine is a narrow vein gold mine producing 75000 tpa. Production has been predominantly by shrink stoping using hand held machine and airleg. Bogging from these stopes is done with Toro 150 LHD units.Previously the standard development method consisted of developing a sill drive, a footwall drive and millholes every 7 m. This meant that for every metre of ore development, 2 m of waste development was required.

Jan 1, 1993

By K White, R Hardie, J Merritt, B Kirsch, R Lucas

Constructed stream diversions are a common element of mine sites across Australia. A review of constructed stream diversion performance in the Bowen Basin funded by the Australian Coal Association Research Program (ACARP) in 1999 found over 80 per cent of constructed stream diversions failed to meet regulator and operator expectations. Since that time, improvements have been made in the assessment, design, monitoring and management of constructed stream diversions. Fundamental to these improvements has been the development of a better understanding of the regional stream systems and efforts to replicate the natural stream processes in the function and operation of constructed stream diversions.This paper discusses the history of constructed stream diversions through the Bowen Basin in central Queensland recorded in the outcomes of a series of ACARP funded research projects. Further, the paper reports on the outcomes of a current ACARP funded project that has reviewed the success or otherwise of constructed stream diversions in the region. The assessment has compared the performance of diversions that have been designed to replicate and provide for ongoing stream geomorphic processes with those diversions that were designed and built prior to the development of these design improvements. Based on these investigations we have identified design and construction successes and issues requiring further research and management attention.CITATION:White, K, Lucas, R, Hardie, R, Merritt, J and Kirsch, B, 2013. Challenges and opportunities for constructed stream diversions in the Bowen Basin, Central Queensland, in Proceedings Water in Mining 2013 , pp 73-82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By Fabjanczyk MW, Aziz NI, Hii J

The paper presents the results of a series of pull out tests performed on roof reinforcement systems currently being adopted in mines in Australia 7mm wire, dividag bar, 15.2mm strand cable, and birdcage cable. The study also investigated the load deformation chara- cteristics and the various design parameters controlling the effectiveness of a cable-grout system. Suggestions for continued work are Highlighted.

Jan 1, 1986

The Que River Mine is a small under-ground base and precious metals mine located in north-western Tasmania. Current production rate is 220,000 tonne/yr from reserves grading 0.37% copper, 7.1% lead, 12.2% zinc, 195 g/tonne silver and 3.4 g/tonne gold.Ore is mined using longhole open stoping techniques. Cemented fill is placed in primary stopes to permit safe and efficient recovery of pillars. The operation is trackless with both shaft and decline access from surface.Ore produced is trucked 40 km by road to be sold to the Electrolytic Zinc Company of Australia Ltd., for treatment at their Rosebery concentrator.

Jan 1, 1985

By Howarth W. J, Sowerby B. D, Watt J. S

On-line analysis systems have found widespread application in the metalliferous mineral and coal industries. The continuous analysis and rapid response of these systems has led to improved control of mining, processing and blending operations, with increased recovery of valuable minerals and coal combustibles.The paper reviews developments in on-line analysis by CSIRO and Mineral Control Instrumentation Ltd which led to the award of the Australia Prize 1992. These commercialised systems analyse mineral and coal slurries; determine the ash and moisture contents of coal on conveyors, and the moisture content of coke on conveyors; and determine the carbon content of fly ash. These gauges are estimated to have resulted in productivity increases valued at $50 million per year to Australia.

Jan 1, 1993

General Gold was discovered in quartz veins at Wiluna in 1896, and the first lode was discovered in 1904. Since 1896, some 2.5 million ounces of gold have been produced from the Wiluna area. The mining operations at Wiluna are 100 per cent owned by Wiluna Gold Pty Ltd, a wholly owned subsidiary of Wiluna Mines Ltd. Oxide and sulphide gold ore is extracted by conventional open pit mining techniques, and ran-of-mine ore is processed through two separate circuits. The oxide circuit has a capacity to treat 600 0(X) tonnes per annum and the sulphide circuit has a capacity to treat 400 (XX) tonnes per annum. Additional gold is won by dump leaching sub-grade oxidised ore and by retreating of primary ore flotation tailings from previous operations. Testwork carried out in 1990 indicated the viability of leaching dumps of run-of-mine oxide ore, and in June 1991 Signet Engineering of Perth, WA, was awarded an EPCM contract to construct a nominal 2.5 million tonne dump leach facility, for a total construction estimate of 51.75 million.

Jan 1, 1994

The basic flowsheet for the Kalgoorlie Nickel Smelter and Kwinana Nickel Refinery are discussed in relation to the mineral components of Kambalda produced nickel concentrates. Both processes handle violarite and pentlandite satisfactorily but the smelter has limitations where high copper recovery is required and in its ability to handle magnesia containing minerals. While the latter can be more economically handled at Kwinana the limitations of this tolerance are discussed together with problems arising from treating pyrrhotite, pyrite and precious metals by the Sherritt Gordon process.

Jan 1, 1973

By Brett J. R

Some recent and current research and development projects relating to strip type open cut coal mining are reviewed. The projects include a dragline-hopper-truck mining system, an overburden slusher system, improvement of dragline operations, continuous excavation and conveying of overburden materials, and a steep angle coal conveying system. Most of these projects offer prospects for reducing costs in deep strip mining operations, but only the overburden slusher project has the potential for large cost reductions. A project on highwall mining of coal has demonstrated that this coal mining system is viable and capable of achieving high productivity rates. Production highwall mining operations are now starting to become established in Australia.

Jan 1, 1991

By Ichinose M, Tsuru T, Gotoh K

Since 1980, the Department of Mining Engineering at Kyushu University, in co-operation with the Ikeshima Colliery, Matsushima Coal Mining Co. Ltd., has been conducting a research project into longwall gateroad designs applicable to deep and poor strata conditions. During this period, the economic environment has drastically changed the situation of the domestic coal mining industry. Conventionally, the retreat longwall method, with re-use of gateroad, has been employed as it achieves higher recovery. However, from the view point of production efficiency, this method is not suitable because it requires intensive work in side packing and roadway maintenance. Therefore an interpanel-pillar system, or a two-entry gateroad system, was adopted to identify the factors responsible for excessive vertical closure in longwall gateroads. Field measurements and non-linear finite element analyses were undertaken to confirm the performance of this system. Study results indicate that the stability of the gateroad employing the rib pillar system is comparable to that of the conventional system of re-using Gateroads.

Jan 1, 1992

By Will D

This presentation is to outline the current practice of mechanised stoping a one-metre wide, gold bearing ore body to optimise fragmentation, minimise dilution and reduce stoping costs.Coolgardie underground operations have historically been mined using traditional shrink stope methods, but in this recent economic environment (with falling gold prices and high costs of traditional methods) it was necessary to look for alternative methods in order to reduce costs and increase productivity.Although still in a learning and refinement phase, CGNL is satisfied that it is feasible, practical and more economic to use mechanised long up-hole stope and long-hole rising methods to significantly reduce the mining cost, reduce dilution, increase safety and increase productivity three-fold compared to traditional airleg methods used throughout the Fasten Goldfields.

Jan 1, 1993

The Fosterville goldfield, situated 25 km east of Bendigo, Victoria was at its peak between 1894-1910 with some 47 600 ounces produced (Figure 1). Since that time intermittent mining and tailings retreatment was undertaken until Bendigo Gold Associates delineated a viable resource and commenced an open cut heap leaching operation in early 1991. Unfortunately they encountered financial difficulties and Perseverance Exploration purchased the mine in April 1992. Perseverance operated a successful heap leach operation nearby Nagambie, 100 km east of Fosterville. Based on its acquired heap leaching experience, Perseverance Exploration was able to instigate operational changes to create a successful small gold heap leach operation. The major change was the using of the original multi-use leach pad as a single-use leach pad. The available data allows for a comparison of the two operating systems.

Jan 1, 1994

By B Hannah, M Uriarte, F Labarca, C Madore, G Ganapathi, L Martin, T Haase

BechtelÆs Mining and Metals projects across the globe are executed in remote arid and semi-arid countries where providing even basic water supplies impose considerable challenges. Opportunities for water conservation measures using a Six Sigma initiative were proactively pursued to address the potential business impacts of limited availability of water resources. The initiative investigated areas driving water-optimisation during concrete operations and camp management. This paper details the water conservation evaluation of alternatives and cost/benefit analysis based on current and predicted water usage for development projects. Optimisation of water consumption through institutionalising more prescriptive standards for camp design and defining water conservation requirements have resulted in a new standard specification. Based on our projected mining project workload across the globe, it is estimated that for the period 2012 - 2015, a potential 5.5 M m3 water savings resulting in US$11 M could be realised for construction camps and savings of 4 M m3 of peripheral concrete process water resulting in potential cost savings of US$8 M could be achieved as a result of these revised standards.CITATION:Haase, T, Hannah, B, Ganapathi, G, Martin, L, Madore, C, Labarca, F and Uriarte, M, 2013. Water conservation at construction projects, in Proceedings Water in Mining 2013 , pp 251-258 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By Hoppe AJ

Drilling and shooting techniques at Moura open-cut have evolved over a period of 16 years and are the result of hard earned experience combined with established practices and consul- tation with professional services. The wide range of overburden types encoun- ted in the field requires varying methods to achieve the best results at all times. Safe working conditions for the employees and protection of mining equipment is of para- mount importance and close liaison is maintain- ed with the Department of Mines Queensland to keep abreast with changing legislation. Drill patterns, charging profiles, types of explosives and ultimate results are des- cribed in detail along with a resume of equip- ment. Costs of drilling, labour and explosives are also analysed with a total of approximately 20c per cubic metre of shot ground. Future developments and improvements to facilities are also outlined.

Jan 1, 1978

Heatings, fires and explosions in New South Wales (NSW) and Queensland coal mines since 1972, are reviewed. Geological and mine settings are outlined. Where available, gas analysis and critical decisions are discussed. This paper updates work by NSW Department of Mineral Resources (1995) and the Queensland Department of Mines and Energy in a report on fires and explosion in Queensland coal mines (Richardson and Ham, 1996). Incident data has important applications in terms of evidence-based risk assessment and identifying key issues to be integrated into competency based training programs. Predictive indicators are reviewed in terms of coal parameters in seams where the incidents occurred.

Jan 1, 2005

By Shrivastava P, Humphreys M, Guibal D, Deraisme J

Customer requirements concerning the final products of iron mines are extremely stringent. Because of this, there is an ever-increasing need for mine operators to monitor and strictly control the quality of their product. This quality, as measured by the stockpile grade variability, is the result of a very complex process, where natural characteristics (the orebody and its geology) are transformed through the mining technique (open pit, shovel and truck fleet, blending into stockpile). The only way to reproduce and hence to control the variability of such a system, which is composed of several interactive sub-processes, is by simulation. A complete simulation of a Hamersley Iron Pty Ltd (HI) ore deposit has been undertaken to forecast the impact and cost of various mining methods, mining schedules and product stockpile sizes on variability of chemical and physical characteristics of the products. The mining simulation was made on a conditionally simulated orebody. On a range of criteria, the simulation was considered to fulfil the objectives set and was a valuable aid to analysis of product grade variability, operating and capital costs, selection of equipment, mine scheduling and setting of product grade targets.

Jan 1, 1994

By Smith PE

The main components of face design are the power loader, face conveyor and powered support system and the interaction of these components determines the effectiveness of strata control. A major influence upon the interrelationship of this equipment is the geological environment, of which seam thickness appears to play an important role. Recent thick seam experience indicates a significantly different characteristic behaviour pattern from that observed in thin seams The structural integrity of the face wall is particularly influenced by seam discontinuities such as natural joint planes and mining-induced fractures in the yield zone ahead of the faceline. In addition, the presence of stone bands or dirt partings in the seam offers interfaces for uncontrolled release of blocky material. Some case study experience at British collieries provides a comparison with performance data at a specific location, that highlights the importance of coal face layout and design.

Jan 1, 1986

By Jones KW, McClelland RA, Denholm WT, Taylor RN, OÆShea J

Associated Tin Smelters, Sydney, are developing tin smelting operations in a prototype commercial SIROSMELT plant comprising two furnaces of 5 to 8 tonnes capacity. Features of the plant and its operation are discussed and results of its application to tin slag reduction and high-grade tin concentrate smelting are presented. Development work is still in progress but experience indicates that the technology has potential for lowering the costs of tin smelting and relieving constraints on grade and iron content of concentrate imposed by conventional technology.

Jan 1, 1984

By B Lavin, R Sanford

This paper examines the application of Lean Manufacturing in a mining environment, based on experience within the Rio Tinto entities: Rio Tinto Aluminium, Northparkes Mines and Hunter Valley Operations. The three applications have tested the flexibility of the Lean methodology. Within Rio Tinto, Rio Tinto Aluminium was the first group to introduce Lean. The rollout began in late 2004. It was introduced firstly at Boyne Smelters, Gladstone, as a model site with the initial application in the Carbon Bake Furnace area. It was later extended to other sites including the Weipa Bauxite Mine. LeanÆs successful application within Rio Tinto Aluminium was in part responsible for its recent adoption by other Australian-based Rio Tinto business units including Northparkes Mines, a copper mining operation in Central New South Wales, and Hunter Valley Operations, a group of four coal mines in the Hunter Valley region of New South Wales. Lean is also being adopted by Rio Tinto Iron Ore. Rio Tinto Aluminium introduced Lean Manufacturing to complement an existing Six Sigma business improvement program and to achieve continuous improvement activities at a workplace level. Lean provides a similar level of rigour and discipline to Six Sigma but its application is everyday and for everyone, everywhere in the workplace. It is a valuable management tool. In a short time, Lean has achieved good and sometimes spectacular results improving productivity and efficiency at all sites, including our mining site. Within Rio Tinto Aluminium, it has also had beneficial impacts on our ability to develop and retain employees.

Jan 1, 2006