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Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By O Joneydi, J Viljoen, R Funnell

Computational Fluid Dynamics (CFD) modelling is a useful tool that can assist engineers in designing effective ventilation systems for the control of airborne dust generated during mining operations. Thistechnology can save time, effort and the costs associated with re-work or the traditional on-site experimental field trials by running desktop 3D simulations of the various proposed scenarios using state-of-the-art CFD analysis tools. Before implementing a dust management system, an understanding of the behaviour of airborne dust particles in the face zone can be achieved, which can improve the confidence in the secondary ventilation and dust management design. Usingadvanced numerical models, suitable dust extraction strategies can be foreseen, and multiple scenarios can be simulated and investigated quickly. As a case study, dry drilling operations in Kimberlite orebodies produce large quantities of fine dust which poses health and safety risks. An effective dust management system is required to achieve acceptable face conditions. A possible practical solution is a ducted exhaust ventilation system with a force fan in the face zone. This paper demonstrates how CFD analysis can be used as a tool to assist the design engineer with validating and optimising the proposed ventilation design by tracking the trajectories of different size dust particles, to determine the best equipment layout and appropriate flow rates which minimises airborne dust.

Oct 12, 2022

By M I. Pownceby

High temperature roasting studies on chrome-spinel contaminated ilmenite concentrates showed that sulfur, introduced through a sulfidising roast treatment, selectively reacted with the chromium in the spinels. The roast treatments were carried out in a laboratory scale rotating drum kiln using a standard Becher-style heating profile (10 h, 1075ºC), char as the reductant, and variable amounts of added elemental sulfur (0 - 3 wt per cent).After roasting, bronze-coloured grains were visible representing chrome-spinels that had undergone selective sulfidisation. SEM imaging of the products showed that sulfur was preferentially concentrated in ~5 - 15 µm thick rims fully enclosing the chrome-spinel grains. The sulfur-rich rims became a sink for manganese (Mn) from the ilmenite resulting in the rims being rich in Cr-Mn-Fe-sulfides. Quantitative electron probe microanalysis of phases present within the rims identified two sulfide phases. The first sulfur-phase (S-phase) was low in Mn (1 - 3 wt per cent) and high in Fe, Cr and S, while the second S-phase was considerably higher in Mn (30 - 35 wt per cent Mn) and lower in Fe and Cr. The dramatic change in the composition of the chrome spinels after sulfidisation is likely to significantly alter their physical properties (eg hydrophobicity, conductivity, etc). This should make their physical separation from the ilmenite potentially easier than roasting/magnetic separation methods.

Oct 5, 2011

By R Wynn, N Stoitis, R A. Lauten, H Liang

At the Century mine in North West Queensland, MMG produces lead and zinc concentrates. The current production rate is close to 500 000 t of zinc per annum. Graphite is the main gangue in the orebody and a substantial quantity of chemicals are used to achieve an acceptable depression of graphite and other gangue materials in the current operation. In the future, it is anticipated that the content of graphite in the orebody will increase while the zinc grade will gradually drop. This scenario illustrates the importance of an optimised suite of flotation chemicals to maximise concentrate grade and recovery. As an alternative to the current reagent suite where dextrin is used to depress graphite, laboratory test work and subsequent plant trials were conducted with alternative depressants. These depressants facilitated both graphite depression and elevated zinc grades in the rougher concentrate. As an added benefit, it was also observed that the silica content in the zinc concentrate was reduced in the presence of the biopolymer selected for the plant trials. Results from both laboratory tests and plant trials will be discussed to illustrate how this change of reagent suite improved flotation yield at the MMG Century Mine.CITATION:Wynn, R, Lauten, R A, Liang, H and Stoitis, N, 2014. A change in graphite depressant to improve the recovery of zinc at MMG Century mine, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 179–186 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By G Harbort

The use of geological data for optimisation of operating plants has become a significant part of the modern process mindset. The underlying principle is to convert spatial geological data into metallurgical information to drive production and mine planning, blast design, blending strategies and plant set-up. Increasingly the process designer is required to interface with geological and mining staff to propose the best investment strategy for a project’s benefit.The geometallurgical model development for the Zafranal copper-gold project commenced in March, 2010, several months after the start of a major drilling campaign by AQM Copper Inc. The initial evaluation stage required review of historical Teck RC data to determine areas of metallurgical interest within the project. As drilling transitioned from RC to diamond drilling, core that was considered representative of the resource was selected and subjected to MLA mineralogy analysis. When coupled with sequential copper analyses this allowed calibration of an assay derived mineralogy model, allowing process concept options and a preliminary test program to be developed. This Phase 1 test program provided a preliminary process design, operating costs and anticipated concentrate grades and recoveries. Both this data and resource estimation were used to generate a preliminary Whittle pit optimisation based on maximising net smelter return, which in turn fed into a preliminary mine plan. The preliminary mine plan, in conjunction with geological logs and core results was used to develop a phase 2 metallurgical test program, where variability tests were conducted throughout the resource and composites formed to investigate specific years of the mine plan in locked cycle flotation. In addition comminution tests were modelled against geometallurgical domains allowing comminution components values to be calculated for 36?000 m of core. A flotation geometallurgical model was developed and incorporated into the resource model allowing concentrate grades and recoveries to be estimated on a block-by-block basis.

Sep 5, 2011

By M Bond, R R. Hargreaves, G W. Booth

There are numerous causes of speculative mineral resource and reserve inflation. Traditionally, these are linked to issues of data accuracy or misinterpretation, the use of overly optimistic estimation parameters or assumptions, an absence of independent expert verification, or the simple pressure to increase company value, covert or otherwise. Owing to its subjective nature, classification of resources and reserves remains an opaque process. Of necessity, Competent Persons rely on personal heuristic interpretations, ideally underpinned by appropriate estimation and classification experience across commodity and deposit types. Whereas independent verification of individual resource and reserve statements remains impractical, publicly available data can be interrogated for potential category inflation, particularly when viewed with exploration expenditure statistics included in annual company reports. Abrupt changes in category tonnages and market capitalisation without concomitant expenditure can aid in outlier detection. Consequently, a comparison of common exploration and resource reporting parameters offers a basis for risk assessing classification robustness, over time. In this introductory study, an analysis of globally listed companies was undertaken over a multi-year period, examining base and precious metal projects in both preproduction and operational asset classes. From these, a series of exploratory decision tree trigger points were generated against which target companies were anonymously identified and risk-ranked.

May 24, 2023

The amount of land subjected to coal surface mining in the United States has been reported at 1, 302, 000 acres (1). Latest National Coal Association estimates (1968) show that about 65, 000 acres are affected annually in the production of 186, 000, 000 tons of coal. Peabody Coal Company affects approximately 9500 acres annually in the ten States in which we are presently operating. Surface mining at Moura, Australia was begun in February 1961. In Marcy 1963, the Marion 7900 dragline with 35 cubic yard bucket went into operation and in 1967 the Marion 8900 dragline with a bucket capacity of 130 cubic yards was put into operation. In addition a third dragline, a 480W was added in 1969. It carries a 15 cubic yard bucket and is used to work areas that are too small to justify movement of the larger machines, In 1969 the Moura surface mine produced 3, 002, 774 short tons, and in 1970 3, 418, 933 short tons.

Jan 1, 1971

By M Sciortino, J Korczak, J Muinonen, A St-Jean

The Dumont deposit is a large (1179 Mt reserve), low-grade (0.27 per cent nickel) nickel sulfide project located in the Abitibi region 25 km west of Amos, Quebec. Royal Nickel Corporation (RNC) acquired the project in 2007 and has since taken the deposit through to feasibility. The disseminated nickel sulfide and alloy mineralisation is hosted within the serpentinised dunite subzone of the Dumont Sill; a differentiated, pervasively serpentinised, ultramafic sill of komatiitic affinity. Pentlandite ((Ni,Fe)9S8), heazlewoodite (Ni3S2) and awaruite (Ni2.5Fe) are the dominant nickel-bearing metallic phases and can be recovered by conventional methods (flotation, magnetic separation). Non-recoverable nickel is also present within serpentine and olivine of the silicate matrix.A detailed mineralogical program including 1420 QEMSCAN« samples and 4400 electron microprobe points was undertaken to increase the understanding of the nickel deportment in the various recoverable and non-recoverable phases in a spatial context across the deposit. A total of 105 metallurgical tests have been performed under a standard procedure which have linked the mineralogy to metallurgical performance. This has allowed the creation and modelling of geometallurgical domains on a block-by-block basis to understand the recovery variation and metallurgical performance throughout the deposit. Understanding the spatial variability of Ni deportment in recoverable and non-recoverable phases through mineralogy is the key to understanding metallurgical performance, thus unlocking the value of the Dumont deposit and other large tonnage low-grade ultramafic nickel deposits.CITATION:Sciortino, M, Muinonen, J, Korczak, J and St-Jean, A, 2013. Geometallurgical modelling of the Dumont Deposit, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 93-100 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By J MacDiarmid

Atlas Copco is a leading provider of industrial productivity solutions (Atlas Copco, 2007) and one of the worldÆs largest suppliers of rock drilling equipment. The business division of Atlas Copco Construction and Mining Technique is based in +rebro, Sweden with the majority of their equipment produced in a number of facilities within the area. As part of the 2006 AusIMM/Atlas Copco Scholarship I was fortunate enough to visit these facilities to experience first hand this truly unique global company. Through numerous presentations on the various divisions and products manufactured by the company, I saw the broad range of products and services offered by the company and came to realise it is much more than just selling drills. Other highlights included a brief love affair, a tour of EuropeÆs largest underground mine (or factory depending who you ask), a drink at the ice bar at the ice hotel in JukkasjSrvi, and a number of dinners of reindeer. Overall this it was a truly amazing experience with all involved with the program going out of their way to ensure I got the most out of the trip. More importantly, through no effort at all, everyone naturally conveyed their passion for the industry and the company which is a great credit to the æAtlas Copco WayÆ thereby creating a company æcommitted to your superior productivity through interaction and innovationÆ.

Jan 1, 2007

By Gillies A. D S

The active history of foreign investment in the mining industry has resulted in Australia emerging as a major world producer of a range of mineral commodities. The current contribution to the national economy represented by mineral production and export revenues would not have occurred without both capital and expertise provided by foreign investors in the past. The initial foreign investment has led to the formation of Australian majority owned and controlled multi-national mining groups such as BHP Limited, CRA Limited and MIM Holdings Limited. These Australian companies, and others, are playing a significant part as foreign investors in the mining industries of Papua New Guinea (PNG) and Indonesia. The study examines issues of importance in foreign investment in each of the countries. It concludes that in Indonesia, the nationalisation of the Dutch mining industry in 1957 did much to deter foreign investment. The remarkable degree of policy stability brought about by the Contract of Works system since 1967 has gone a long way to restoring that confidence. The level of investment in the Indonesian mining sector is steadily increasing. Its attraction to Australian investors is a combination of policy stability, favourable fiscal terms, geological prospectivity for a range of commodities and proximity to Asian markets to the north. PNG has a stable policy regime which until recently has been free from political interference at the administrative level. As such, investors were developing confidence in the system and investment was progressively increasing as evidenced by growing exploration expenditures up to 1988. The 1989 Bougainville revolution caused a re-assessment of PNG's investment and country risk. The recent Mt Kare incident has further raised concerns over the government's ability to guarantee internal security. Foreign investors are faced with weighing concerns with the risks of operation in PNG against the undoubted geological prospectivity of the country. The fiscal regimes of Australia, Indonesia and PNG were compared by means of a simulated open pit gold mine in each country. The effect of taxation is examined by reference to the relative change in project internal rates of return (IRR). The comparison of the relative differences between pre-tax and post-tax IRRs provides a measure of the relative attractiveness of each fiscal regime.

Jan 1, 1994

Using Dynamic Simulation Throughout a Process Plant's Life Cycle

Sep 13, 2010

By J Johansson, J Lööw

Attractive mining workplaces are good, safe and healthy environments. They are also workplaces that the workforce of the future wants to work in. As skilled miners and engineers are already scarce, this is important both for today and for the future. However, the future of mining will also be subject to increased international competition. In attempting to become more competitive, many mining companies turn to rationalisation, looking to both rationalise their production and organisation as well as optimise their processes. Work organisation is important in both rationalisation and providing attractive mining work. As a result, this paper investigates a ‘lean production’ (LP) philosophy for the organisation of future mines. The aim of the paper is to investigate to what extent LP can be used to organise for attractive mining. It first defines what attractive mining work is and to what degree it can be influenced by work organisation. A short insight into the LP concept will be given as well as a review of how it is discussed and utilised in mining today. In conclusion, a summary of LP’s potential to realise future attractive mining is given.CITATION:Lööw, J and Johansson, J, 2015. Work organisation for attractive mining – lean mining and the working environment, in Proceedings Third International Future Mining Conference, pp 197–204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

ADDRESS BY THE PRESIDENT OF THE INSTITUTE (MR. J. G. SYMONS) IN PRESENTING THE CERTIFICATE TO ROBERT COLVILLE BRADSHAW, O.B.E.Today it is my privilege and pleasure to introduce to you, Robert Colville Bradshaw. O.B.E., the third New Zealander to be honoured with Honorary Membership of The Institute. Sir William Hudson and Mr. C. H. Benney were the others.Mr. Bradshaw has been an Affiliate Member of The Institute since the formation of the New Zealand Branch in 1966. Like his friend Matt Benney. Bob Bradshaw is an accountant by training. Last June he retired as senior partner of the firm of chartered accountants, now known as Wilkinson Wilberfoss, with which he served from January 1929.Mr. Bradshaw grew up in New Zealand attending the Terrace School in Wellington, the New Plymouth Boys' High School where he was a boarder, and completing a Bachelor of Commerce at the university now known as the Victoria University of Wellington. He is an elected Fellow of the New Zealand Society of Accountants and an Associate of the United Kingdom Institute of Cost and Works Accountants.

Jan 1, 1977

Declines for both access and rock haulage are replacing shafts for mining relatively shallow deposits of down to 1000 m below surface. Where the orebody does not outcrop and where surface access may be restricted, it is often necessary to drive long dead end headings before a connection can be made back to surface and a ventilation circuit created. In hot tropical areas and where large diesel powered equipment is used for mining, heat may also be a problem at these relatively shallow depths. The normal design criteria based on statutory limits and good practice used to evaluate ventilation and cooling requirements in terms of air velocity, dust, gases, diesel exhaust dilution, re-entry after blasting and heat stress are described in this paper. These are then used to design and cost alternative auxiliary ventilation systems that include leakage based on general fan performance curves and typical duct systems. The implications of the current European Community recommendations regarding nitrous fumes are also briefly considered. The actual problem relates to a 2100 m long decline that may have to be extended to 3000 m long without a connection to surface or through ventilation and is located in a hot tropical area where the surface wet bulb temperatures may exceed 25¦C for more than a third of the summer period. Once the preliminary ventilation design is completed, the auxiliary ventilation system can be modelled and simulations undertaken that incorporate heat and moisture transfer routines with the objective of determining the cooling load and amount of refrigeration required. Cognisance is taken of cyclic diesel operations and the thermal flywheel effect of the surrounding rock on the wet and dry bulb temperatures resulting from these operations.A suitable modular cooling system located at the portal is described and optimised with capital and operating costs of both the ventilation and cooling systems provided.

Jan 1, 2005

By G Hancock, A Kemp, I Taylor

The mine site is situated south east of Port Hedland in the Pilbara region of Western Australia. A detailed engineering design was undertaken for six irregularly shaped waste rock dumps at the site. The design was undertaken to ensure long-term stability of the dumps and optimise material movements for closure construction. The Watershed Erosion Prediction Program (WEPP) and SIBERIA landscape evolution modelling was undertaken for the landforms using regional and site-specific material characteristics to provide an indication of the maximum allowable slopes and corresponding slope lengths for long-term stability.The majority of the waste materials present in the waste rock dumps are considered likely to be subgrade banded iron formation (BIF) and chert, which is generally competent material. The presence of a large number of dolerite dyke swarms indicates appreciable volumes of dolerite were produced as waste from the pits. Geological records also indicate that the dolerite is logged as being heavily kaolinised in the geological logging, hence kaolinite is very likely to be present within the waste dumps on-site. This material has an elevated risk of being highly erodible/dispersive. Clays and shales are also likely to be present in the dumps and are considered to be less competent material (relative to the BIF/chert).The final design configuration of the largest existing ‘unplanned’ waste rock stockpile is compared to a hypothetical continuous ten degree outer embankment alternative. This paper will present a brief description of the alternatives for closure of three waste dumps in close proximity to each other and how the detailed design based on site-specific materials and conditions compare to an alternative approach blankly assuming that most materials will be erosionally stable at less than ten degrees.CITATION:Kemp, A, Taylor, I?and Hancock,?G,?2014. Landform design for Pilbara mine site – why plan and design waste rock dumps for closure based on site-specific conditions?, in Proceedings Life-of-Mine 2014 , pp 47–54 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By H Wen

LongWangGou coalmine auxiliary inclined shaft heading face has a large section, fast heading speed, and large dust production. The problems of high concentration and wide distribution of dust in the roadway air are very prominent. To improve the efficiency of roadway ventilation and dustremoval, long-compression and short-suction (after this referred to as LCSS) are adopted. The dust concentration and airflow field distribution in the roadway are numerically simulated by FLUENT. The change of the position between the pressure duct and the exhaust duct and the different pressure-extraction ratios affect the distribution of airflow velocity, the formation of vortex zone, and the distribution of dust concentration in the roadway. When Ly = 25 m, Lc = 5.0 m, W = 1.2, a wind curtain is formed at 5 m in front of the heading face to prevent dust from spreading deeper into the roadway.

Oct 12, 2022

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 D Gericke, R Cooke

This paper presents an assessment of the status in design and operation of deep level backfill distribution systems by referring to case studies and practical experience. The improvements in design and operation of the systems can largely be attributed to an improved understanding of slurry flow behaviour and a corresponding integrated design approach that includes slurry flow modelling, system design and application of the latest technology. The conclusions summarise the lessons learnt from such case studies and stresses the importance of design reviews and audits of existing systems as a means to ensure that the mistakes of the past are not repeated in the future.

Jan 1, 1998

By I Sucholutsky, D M. First, D Mogilny, F Yusufali

Machine learning is creating value in all facets of the mining industry, from exploration to production. The authors provide an accessible, high-level introduction to artificial intelligence (AI), machine learning (ML), and deep learning (DL); the latter being widely recognised as one of the most powerful forms of ML. In particular, the authors will introduce deep learning models known as convolutional neural networks (CNNs), how they are applied, and the economic considerations necessary for determining when DL may be the right solution to de-risking complex block modelling problems. The authors present preliminary results from the mineral resource modelling study of the Jundee orogenic gold deposit, Yandal belt/gold province, Western Australia. The primary goal was to identify the direction and location of the narrow gold veins more accurately and demonstrate how non-linearly correlated elements are used as direct inputs to the resource model to assist with the target element’s grade prediction. This demonstrates that: (1) existing techniques for finding correlations between assayed elements do not adequately reflect the complex geology of the asset, (2) nonlinear correlations that are difficult to model as simple mathematical functions are representative of geological patterns in a deposit, and (3) non-linearly correlated assayed data, fed as inputs, increase the performance of the resource model as reconciled through blind tests. To conclude, the authors hypothesise that the patterns represented by the DL block models may be revealing the results of overprinting geological processes that generated mineral deposits. For example, the primary hydrothermal processes that deposited metals created depositional patterns that become particularly complex as a result of being overprinted, in part or in whole, by secondary physicochemical processes. This may explain why non-linear geochemical relationships have the capacity to generate more accurate block models of mineral deposits.

May 24, 2023

It is a very great pleasure indeed to participate in this interesting and important seminar. My two visits to Australia in the past have been extremely pleasant and this one is equally so. My task is to tell you what has been happening in the United States, in these past few years especially, in regard to the management of our air resources and to present in some detail the difficulties we in the copper, lead and zinc smelting industries have been experiencing. The sudden upsurge in interest in air pollution in the United States is a strange phenomenon indeed - strange because we've had air pollution a long time, just as long as there have been large cities using fossil fuels for heating purposes. And the problem has been studied for quite a long time. As early as 1919 studies by the U. S. Bureau of Mines were done in Salt Lake City, where I .live. In the winter of that year extensive measurements were made of airborne particles - dust and smoke. The average concentration of particles found was 870 micrograms per cubic meter of air. A very large number compared to levels we find today. A microgram of course is a very small unit, one twenty-eight millionth of an ounce. A fine human hair two inches long weighs about 100 Micrograms.

Jan 1, 1971