Search Documents

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Evans A. F

Arising out of the increasing demands for efficiency in modern ore-dressing operations has grown a requirement for fuller knowledge of the characteristics of the ore treated. In part, this is being met by improved methods of study of the mode of occurrence of the constituent minerals, and of the intricacies of their physical relationships.A typical instance of the need for such a study is the presence of some undesired mineral in a flotation concentrate or tailing, which may be due either to mechanical association through insufficient grinding, or to incomplete separation in the flotation operation.Again, with modern practice in fine grinding, which often requires that from 70% upwards of the ground ore shall pass a 200-mesh screen, it is obviously impossible to obtain data on comparative grinding efficiencies, for instance, unless there is adequate knowledge of the size-composition of the material passing the finest available screen.Studies like these can be made satisfactorily only after size-separation (which may be carried out conveniently by elutriation) and by actual visual examination with the aid of a microscope, and the minute size of the mineral grains to be examined has necessitated the development of a new technique of sizing and microscopic examination.

Jan 1, 1932

By S P. Suthers, J M. F Clout, J J. Campbe

An advanced technique for modelling hydrocyclone separation performance has been developed. This technique is based on the combined modelling of hydrocycloning parameters and ævirtualÆ iron ore feed. The virtual feed modelling was performed using a novel (in-house) software package called æRecognitionÆ, which uses data from optical image analysis to classify the particles in certain size fractions according to total iron content and calculates data for every grade class. These data include the average mineral composition and density of every liberation class in every size fraction. This information about every size fraction, representing the ævirtual feedÆ, was input to the mineral processing modelling package USIM PAC. The hydrocycloning process was then modelled for this virtual feed using the Plitt hydrocyclone model. Empirical calibration coefficients for the hydrocyclone model were calculated using an optimisation procedure in Excel. Pilot-scale hydrocyclone beneficiation experiments were performed on an iron ore blend, using different hydrocyclone pressures and per cent solids in the feed pulp. These experiments were modelled and the modelling results were compared with the experimental results. The new modelling approach enables prediction of the recovery of each mineral in the products, calculation of the total iron grade and recovery, and optimisation of iron ore beneficiation using hydrocyclones.

Jan 1, 2005

By H R. Phillips

The ventilation and refrigeration design of underground mines is an important aspect, when new or existing mines are considered and places a great responsibility on engineers tasked to do so. The current trend for both local and international underground mines is to extend their search for valuable ore reserves deeper below surface. In South Africa, the predictions are that about 40 kt of actual gold still lies in situ, ready for extraction. As mines extend their search for minerals of economic value deeper and deeper into the earthÆs crust, ventilation and refrigeration aspects of such mines become more prominent than before. The planning and design of the required ventilation and refrigeration within these mines, over their expected lifetime is important including the practical implications of such designs. Technology changes and improvements need to be incorporated into ventilation and refrigeration designs, where possible and advances in this specialised field explored. This paper explores ventilation and refrigeration design aspects within the underground mine sphere. Aspects such as mining depth, virgin rock temperature (VRT), mining methods, and different cooling applications available including ventilation supply are reviewed in design applications. Heat generally becomes a significant aspect to counter in these mines and they are not always necessarily deep mines.

Jan 1, 2005

By Kohra A, Shoji S

The amount of copper production by flash smelting process occupies about 17% (equivalent to 1.4 million t/year) of total free world production. In Japan, 650,000 tons of copper is produced annually by flash smelting. This is 65% of the gross copper production of Japan. To reinforce pollution control, promote energy saving, and enhance production efficiency by increasing the size of furnaces, conventional blast furnaces and reverberatory furnaces are being replaced with the flash smelters worldwide. The Ashio Smelter started copper production in 1884 and developed in association with the Ashio mine. In those days, the Ashio smelter produced copper by using the blast furnace process designed for the high-grade ore from the copper mine. At that time, this process was specialized in Japan. In 1956, for the first time in Japan, the Ashio Smelter introduced the flash smelting process developed by Outokumpu Oy of Finland (it is suitable for treating the copper concentrate, producing sulfuric acid and improving production efficiency). The flash furnace in Ashio, the first ever in Japan, had a capacity of 230 t/day for copper concentrate and was operated up to 1962. During this period, various operational troubles were solved, and further improvements were made; and, in 1962, a Furukawa-type flash smelting furnace was completed in Ashio. This improved version of a flash furnace had a capacity of 450 t/day. There was one flash furnace and one waste heat boiler, which were arranged in a unique pattern for that time. This furnace may be said to be the prototype of the present flash smelting process in the world.

Jan 1, 1987

By E Ben-Dor, D Bakun-Mazor, Y Ben-Ari

Determining the mechanical properties of rocks is important for various civil engineering fields, including the mining of raw materials for aggregates used in the construction and paving industries. Traditionally, the mechanical properties of rocks are obtained through in situ and laboratory tests during geotechnical surveys. However, these time-consuming surveys involve many resources. In contrast, hyperspectral remote sensing methods make it possible to identify the mineralogical composition and crystallographic structure of the rock; properties that control the mechanical properties of the rocks. In this work, we characterise the mechanical properties of carbonate rocks by using a hyperspectral sensor in laboratory conditions. We collected about 150 cylindrical samples of carbonate rock, with a wide range of strength values from several rock outcrops in Israel. We used a point spectrometer in the range of 0.4–2.5 μm and a spectral image sensor in the range of 3.0–12.0 μm, scanning the samples to obtain the signature of their light reflections and spectral emissivity. We then measured the samples’ density, porosity, water absorption, and uniaxial compressive strength (UCS). We used sophisticated data mining to find statistical relationships between the hyperspectral signatures of the samples and their mechanical properties. We used this data to identify the most dominant wavelengths for predicting mechanical properties. We found that the density, porosity, and water absorption of carbonate rocks could be confidently predicted based on spectroscopy data, while the UCS of the rock could also be predicted, but less significantly. The results of the study pave the way for the development of measuring tools for the mechanical properties of rock, based on non-destructive tests of quarrying materials.

Nov 29, 2022

By S Nie, I Bergqvist, F Ouchterlony

In blasting, a few or many cracks are driven from the borehole into the rock. But what causes the cracks? The most common theory of breakage consists of two stages; first the shock wave causes radial cracks to form around the hole then the gases penetrate into the cracks, and widen them and make them longer. Another theory presented by Brinkmann suggests that the back damage is primarily controlled by shock and that the gas penetration is the mechanism controlling breakout of the burden. He did his experimental work using blasthole liners. Recent research at SveBeFo has examined this matter further. In a quarry a number of benching holes have been blasted simultaneously. In some of these holes tubular Swellex bolts were inflated and decoupled charges put inside the tubes without stemming. Other holes were identically charged but without the lining. Finally some holes were also stemmed. After blasting the cracks in the remaining rock were studied. There was no difference in crack lengths between holes charged normally (no stemming) and holes where the charges were inside the bolts. On the other hand when stemming was used, the crack lengths increased for some explosives but remained the same for an emulsion explosive. In another set up blasted granite blocks were charged in the same way as above. Then we could also measure the bore hole pressure. The pressure gauge consists of a small carbon resistor inside a steel cylinder. It is called LHM (Location-fixed Hydrodynamic Measuring Cup) and is placed at the bottom of the hole. A smaller exit hole from the bottom is drilled for the cables. The paper presents the technique and the results obtained from both the quarry blasting and the blasting of the blocks.

Jan 1, 2001

By C A. Fleming, C J. Ferron, P T. OÆ

A new process is described which allows for direct recovery of base and precious metals (Au and PGMÆs) from sulphide concentrates or other feedstocks. The process was developed initially for application to ores or concentrates that are too low-grade for economic treatment by the conventional smelting and matte leaching process (for PGMÆs). It is now believed that the process may be widely applicable to a variety of materials including PGM concentrates containing high amounts of chromium or magnesium. Operating conditions have been identified under which gold, the PGMÆs and the base metals dissolve simultaneously in a pressure leaching autoclave. The product of this leaching process can then be treated by one of several flowsheets, of which the preferred will likely involve solid/liquid separation, followed by precipitation (or adsorption on activated carbon) of gold and the PGMÆs, followed by copper solvent extraction/electrowinning. Depending on the concentrations of nickel and cobalt, the copper raffinate would either be partially recycled to the autoclave to allow Ni/Co concentrations to build up, or it would proceed directly to a Ni/Co refinery. This paper deals with the pressure leaching process and the recovery of gold and the PGMÆs from the pressure leach product.

Jan 1, 2000

By J Rostami, D Tadic

While hard rock tunnel boring machines (TBMs) have an established track record in the tunnelling industry, accurate estimation of TBM performance for each specific project remains critical. Machine performance prediction is required to assist planning activities, including costing and schedule preparation, machine specification and effective planning of maintenance and repairs. In addition, monitoring machine performance during the construction period is required to assess and manage excavation progress, and to achieve optimal advance rates based on specific geotechnical conditions exposed during excavation. TBM performance analysis can also contribute to the development of more accurate performance prediction models for future applications. Rock mass characteristics play a dominant role in machine performance. This paper offers a review of the impact of rock mass characteristics on TBM penetration rates for two specific tunnelling projects. A discussion is provided on the results of statistical analysis of available field data, including geological back mapping, rock properties and measured rates of penetration (ROP). The analysis offers a comparison of the achieved and predicted ROPs to provide a better understanding of the influence of rock mass properties on the performance of hard rock TBMs. A new rock mass adjustment factor is introduced to enhance the accuracy of an existing prognosis model for use in jointed rock masses.

Jan 1, 2008

The Crown Minerals Act 1991 has introduced some significant changes to the New Zealand mining industry, not the least of which relate to the ability of miners to obtain access to land to conduct mining activities. This paper briefly reviews the relevant provisions of the Crown Minerals Act dealing with access arrangements, considers some typical features of access arrangements and examines a number of areas where problems may arise.

Jan 1, 1992

Environmental leaching methods such as the toxicity characteristic leaching procedure (TCLP) test or the ASLP test are used to assess wastes including mining and mineral processing by-products. These tests were initially designed as regulatory tests simulating conditions in a co-disposal municipal landfill waste facility and do not allow leaching performance to be predicted in site specific scenarios. Further, the assumptions underlying these tests tend to define worst-case scenario leaching conditions for by-products from the mineral industry disposed of outside a co-disposal scenario.   Recently some characterisation leaching test methods have been issued as ISO/TS standards (ISO/TS 21268-3:2007 and ISO/TS 21268-4:2007) that aim to define the leaching performance of soil type wastes and to predict the leaching performance of these wastes over long time frames. In this preliminary work these standards are trialled for by-products from the mineral industry and the quality of information that can be obtained from them compared to TCLP/ASLP tests.   Where clear comparisons were possible, the TCLP/ASLP tests were typically found to extract a similar, or often greater, amount of component than (i) tests conducted at the same pH but without the acetate buffer or (ii) for test conditions aimed at simulating long-term leaching in an eluate defined by the waste type. While further work is required, the preliminary results indicated that the tests may provide reliable long-term estimates of leaching performance of wastes in soil types of variable pH and provide a suitable basis for long-term planning for optimal waste handling, treatment or even re-use.

Jun 1, 2010

By Boyling A

United Collieries Pty Limited is an Australian mining company operating one underground coal mine, United Colliery at Warkworth in the Hunter Valley district of New South Wales. Centrally positioned, United Colliery is adjoined by other coal mining operations and is located 80km north - west of Newcastle and 20 kilometres south - west of Singleton. (Fig. 1) High standard road and rail links provide ready access to customers and suppliers.

Jan 1, 1998

During the life of a mining project in Papua New Guinea (PNG), the greatest impact is on the people of the project area and the most intense, day-to-day contact is between these people and the project's field staff. Yet formal structures at present emphasise contact between much higher levels of national government and company personnel. Whilst understandable, this is unfortunate particularly since, given the nature of PNG politics, villagers do have a powerful influence on project success, as recent dramatic events on Bougainville have indicated. A greater role for local views and greater attention to such views by other parties is clearly required. But to achieve a successful marriage between informal village politics and the formal structures of investment procedures will require considerable patience and adjustment. This should be reflected in the cost of project development and be regarded as being as of a significance equal to that currently accorded to the technical aspects of project development.

Jan 1, 1990

By C G. Ferguson, S L. Makin

The Cawse nickel project is a new generation pressure acid leach (PAL), solvent extraction and electrowinning process used to produce LME grade nickel metal and cobalt sulphide concentrate containing 40 per cent cobalt by treating nickel and cobalt oxide ores from a lateritic ultramafic profile. The project is located 50 kilometres NW of Kalgoorlie in Western Australia. The commercial success of the Cawse nickel operation is dependent in part upon the ability of the principal ore type to be beneficiated. A simple process of rejecting lower grade material on the basis of particle size achieves this. The process is called upgrading and allows subgrade material to become commercial ore grade and also allows higher ore grades to be processed in the early parts of the operation. The success of the upgrade process is dependent upon the physical and chemical properties of the ore being processed and the nickel grade of the ore. The upgrade ore type represents >80 per cent of the Cawse nickel resource and is hosted mostly within a limonite unit, represented by goethitic clays in the upper saprolite zone. In the upgrade processing circuit the ore is crushed and slurried. It is then passed over a series of screens that remove all material over 0.5 mm. This ensures that coarse material is removed from the main ore stream. Upgrade is reliant on selectively rejecting lower grade or barren material, which can include silica, magnesite and relict saprock. To predict leach feedgrade, the grade control estimates the head grade and upgrade percentage for all ore delivered to the run of mine ore pad. To do this reverse circulation (RC) drill holes are logged for ore type, assayed for a range of elements and undergo simulated upgrade testwork. The percentage and grade of material rejected through the upgrade circuit has the most influence on upgrade per cent. This reject is determined by the physical properties of the rock mass and drum scrubber parameters. The correlation between nickel upgrade and reject can be established to predict upgrade from the known mass reject. Parcels of upgrade ore milled to date closely follow projected correlation trends. Upgrade circuit results have been excellent, with average nickel grades upgrading by 34 per cent, cobalt by 23 per cent, with 55 per cent mass passing.

Jan 1, 2000

By Holly J

Mr. Champness: I wish to congratulate the authors on their paper, which covers a large variety of subjects. Not every mine is in the fortunate position to effect cost reductions by the sinking of a new shaft, but, as the authors have endeavoured to show in their paper, with improved techniques further reductions are possible. I would like to ask two questions. Can the authors give me an approximate idea...

Jan 1, 1956

This brief introduction tries to introduce delegates to this conference to the almost unbelievable attributes possessed by many microbes which might be relevant to geomicrobiology, and how most of these remain unexploited by us. It introduces some of the terminology which will be used and tries to suggest that there are rewarding times for those who set out to discover the natural biodiversity of bacteria in nature. Although we have exploited microbes, usually unwittingly, and suffered at their hands for millennia, it is only recently that we have begun to become aware of how they dominate our planet (most of the earthÆs biomass is bacterial) and are responsible consequently for most of what happens here. A few can cause us harm and occasionally kill us, but most bacteria are beneficial, impacting positively for example on how we grow our food and in cleaning up the pollution we create. They are simply indispensable to how we live. They have been responsible for many of the geochemical changes which have taken place on this planet and play major roles in the transformation of elements so essential to our existence (Newman and Banfield, 2002). No one should dismiss them as minor players in our game of life.

Jan 1, 2004

By L Richards, R L. Brathwaite, C Mazenga

Underground mining of gold-silver bearing quartz lodes was carried out in the great mines at Martha Hill, Waihi over 70 years from 1882 until 1952. Shafts and stopes reached a total depth of 600 m on 16 levels, with workings extending laterally some 1.6 km, and as new reefs were discovered the workings extended beneath parts of the township. Over their long life the mines produced 1217 tonnes of gold-silver bullion from processing 12.2 million tonnes of mined ore. In the early-1980s drilling proved large reserves of gold and silver ore remaining in stock-work zones between the previously mined lodes. This led to a new era of mining at Waihi with the opening of the Martha Hill open pit in 1988. A series of three sink holes have formed above unfilled stopes of the Royal lode. In 1999 a sudden collapse crater 40 m in diameter occurred near an occupied part of Waihi, placing in danger several houses and a busy street. This crater formed close to a similar crater that occurred in 1961. The 1999 collapse resulted in subsurface investigations and risk assessment studies being commissioned by the local Hauraki District Council. However, a further 50 m diameter collapse crater in December 2001 formed in a residential area, swallowing and wrecking an occupied house, fortunately without injuring its five occupants. Two other houses were perched on the crater rim. The 2001 collapse led to an acceleration of the work being carried out by the Institute of Geological and Nuclear Sciences Ltd. (GNS) to identify the extent of the old underground workings at Waihi. For the risk assessment detailed rock mechanics analyses were made to consider the stability of the underground mine stopes, in terms of the stope back, hangingwall, footwall and crown pillar failure mechanisms, as well as void migration. The collapse crater areas were analysed using using several methods, including analysis to simulate the probability of void migration from unfilled stopes to the surface using the @Risk program. The analyses show that in the cases of the actual collapse craters, the voids have a high probability of migrating to the surface, thus providing a method of testing the void migration modelling. Modelling analysis applied to the remaining stopes of the old underground mines show there are further areas where void migration from unfilled stopes has a high, medium and low probability of reaching the surface as a collapse crater. The locations of these probabilistic hazard zones were outlined using the @Risk modelling and deterministically by using the dimensions of the historical collapses applied along the length of the stopes. Consideration of the æincubation periodÆ (the time interval between the cessation of mining and the occurrence of collapse) and comparisons with mine subsidence histories overseas, indicates that further collapses are likely to occur over the next 50 years. Risk assessment estimates made using property values and occupancy levels within the three hazard zones, were compared with Societal and Individual Risk criteria. Results indicate that safety within the high and medium zones may be unacceptable.

Jan 1, 2003

By Y B. Kang, Y J. Park

Ti-added ultra-low carbon (ULC) steel is produced by adding Al and Ti during the secondary refining process to deoxidise molten steel and to bind C and N which are detrimental to the deep drawing quality of the steel product. However, the production of Ti-added ULC steel faces challenges, including submerged entry nozzle clogging and surface defects on cold rolled coils. The troubles were often attributed to ‘Al-Ti complex inclusions’ in the molten steel. However, the evolution of oxide inclusions including their stability has been still unclear. In the present study, the evolution of these inclusions in Ti-added ULC steel was investigated by phase diagram measurement, CALPHAD thermodynamic modelling, high-temperature stability test for the oxides, and observation of transient behaviour of oxide inclusions in the steel. The phase diagram of the Al-Ti-O system was elucidated with an emphasis on oxygen potential, which significantly controls the stability of the oxides. CALPHAD thermodynamic models and a self-consistent database were developed. The transient behaviour of Al-Ti complex inclusions in Ti-added ULC steel was observed in situ using a confocal scanning laser microscope. This was additionally validated by the new thermodynamic model. The equilibrium phases of the oxide inclusions were investigated using a high-temperature resistance furnace, and were analysed using a secondary electron microscope, energy dispersive spectrometer, and electron back-scattered diffraction. By considering the morphology and crystal structure of these inclusions, the evolution of Al-Ti oxide inclusions was elucidated. Various behaviour of Al-Ti inclusions and their influence on steel cleanliness are discussed.

Aug 21, 2024

By B Banerjee, N Kumar, S Parihar

Rampura Agucha Pb-Zn Mine (RAM) is located about 200 km to the south-west of Jaipur in the state of Rajasthan, India. Open pit mining operations commenced in 1988 and continued to 2018. RAM open pit footprint is the largest in India with length of 2000 m, width 1500 m and depth of 400 m. Development of an underground mine under the operating pit commenced in 2013, through trial mining longhole open stoping with cemented backfill was established as a preferred mining method. Nine years in operations underground mine has reached the production capacity of 4.5 MT, which represent more than 70 per cent of the ore volume mined by the pit. RAM is currently the world second largest underground Pb-Zn mine.

Nov 29, 2022

By R Ashworth, S J. Hall

During trials which began in May 2005, traditional steel dump bodies for transporting iron ore on 220-tonne haul trucks at a Labrador iron ore mine were compared to a novel rubber suspended dump body. Loads were measured and compared over some 93 700 loads, representing more than 20 Mt transported. Maintenance costs and downtime were also measured over the course of the trial, which lasted nearly one year. This paper outlines the parameters and results of the trials. Parameters measured included payload and production improvements, carry-back reduction, downtime due to body maintenance, and wear on the floor of the suspended dump body. These parameters were then compared to those for conventional steel dump bodies in use at the mine, and conclusions were drawn. The resulting comparisons were significantly positive in favour of the new suspended dump bodies, confirming that each truck could haul an additional 41 000 tonnes per year, that downtime hours could be considerably reduced, and that body availability and service life can be extended through use of the suspended dump body. There was also a high level of operator acceptance of the suspended dump bodies due to less loading shock and a smoother ride.

Jan 1, 2007