Search Documents

By Smith I. W

Australia has, and faces, a growing problem with regard to the ability to meet the demand for liquid fuels from indigenous petroleum resources. The position for natural gas is better but there is no room for complacency. Since the coal resources are relatively extensive, interest in the prospect of producing liquid fuels from coal is in- creasing. The approaches to the production of gaseous and liquid fuels are briefly reviewed and the present status of coal conversion technology is discussed. Many problems remain to be solved and it is estimated (in the USA) that another 8-10 years will be required before any of the processes for liquid fuel production are considered sufficiently efficient and viable to go to a demonstration plant. Coals represent complex feedstocks and the effects of variations in coal properties on oil-from-coal processes are not fully understood. The thermal efficiencies of various coal conversion processes are considered in relation to their impact on coal requirements. The production of Australia's present requirement for liquid fuels by the only commercial process in operation would require a four-fold expansion in the local consumption of coal. Any assessment of the suitability of oil-from-coal processes currently under development overseas for Austra- lian coals and requirements must take heed of the differences in coal properties and motivation. The economic via- bility of processes for producing oil from coal will continue to be uncertain because of the large difference between the World price for crude oil and the actual production cost.

Jan 1, 1975

By G Jones

The Singapore Land Transport Authority (LTA) has been procuring the expansion of their underground mass rapid transit rail network at a prodigious rate since the first line opened in 1987. Four lines (149 km) are currently operating and several more lines are at various stages of planning/construction; one of these is the Downtown line stage 2 (DTL 2).DTL 2 contract C917 was awarded in September 2009 for S$320 M. On 18 June 2013 the original contractor became insolvent, leaving the works incomplete. Following a fast-tracked tender process, McConnell Dowell was awarded the S$254 M contract on 29 August 2013 to complete the works. This contract includes two underground stations constructed by cut-and-cover methods and twin bored tunnels between the stations. Each tunnel is 1400 m long, excavated by earth pressure balanced (EPB) tunnel boring machines (TBM) at an average depth of 20 m and segment lined to 5.8 m inner diameter. The tunnel alignment is located under a busy five-lane road lined with prime residential real estate and congested with utilities.To compound the difficulty the tunnels are located within the notorious Bukit Timah Granite formation. This has a very wide range of strength, from below 1 MPa to over 300 MPa. This strength range is a consequence of six weathering grades, from soil to fresh rock, with the fresh granite causing severe abrasion problems. The various grades can occur within a very short distance of each other. Consequently, the problem of supporting a mixed face exists, particularly in the intermediate weathering grades where intact rock is encountered in the invert and corestones within a loose soil matrix in the crown, which can increase the instability by allowing the ground to flow into the TBM.The focus of this paper will be the excavation of the bored tunnels by EPB TBM used by McConnell Dowell to complete these challenging works.CITATION:Jones, G and Shepherd, J, 2014. Earth pressure balanced tunnelling in a dense urban environment, C917A, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 41–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Barber C, Buselli G

Detailed monitoring of point sources of groundwater pollution is expensive due to the high cost of drilling monitoring boreholes. Whether groundwater pollution is due to mining, industrial or domestic waste disposal, a universal difficulty when monitoring groundwater contamination is the placement of boreholes to adequately define the extent of the pollution plume. This paper reports groundwater 'resistivity variations determined from transient electromagnetic soundings at a domestic waste disposal site north of Perth in Western Australia. Together with available hydrogeological and water quality data, the geophysics provides a broad "plume scale" picture of groundwater contamination. A simple three dimensional model of plume development, which takes account of the dimensions of the wastes, has also been developed and shows good agreement with the spread of contamination indicated by the geophysics for relatively small values of the dispersivities. Better estimates of these parameters are still required. The work indicates that a combination of geophysics and modelling with ground-truth data from groundwater quality monitoring of boreholes is required to avoid difficulties in interpretation of data and to better define the extent and migration of pollution in Groundwater.

Jan 1, 1988

By Hutchings SG, Skimmings T

This paper describes the results of the field application tests at Miike Colliery on the integrated automatization of the longwall mining system for medium thick coal seam. The purpose of the research is to develop an automatic longwall mining system which can be controlled accurately from outside of the face, and the ultimate goal is an eliminate of men from the face. Presently, the field test is being conducted in Yotsuyama mine following to a success in the performance test on surface. Remote Batch Control System for shield supports has been adapted to operate all supports from the control panel located at the entrance of the face. Remote monitoring and control system of the drum shearer has also been tested. The system makes it possible to operate the shearer either at the main gate or full automatic. Productivity and safety will be substantially improved as those systems enable to eliminate all workers from the face under the severe working conditions with high ground pressure and hot and humid atmosphere due to increasing mining depth. So far, we have been satisfied with the results of the field test and those system will be an effective countermeasure to operate the face with a high risk of rock-burst.

Jan 1, 1987

By T Muzondo, C Prins, D De Vaux, R Schouwstra

The Mogalakwena Platinum Mine in the northern limb of the Bushveld Complex is Anglo American PlatinumÆs only open cast operation exploiting the Platreef. The Platreef, which extends along the basal contact of the Bushveld Complex, is geologically and mineralogically a much more complex orebody than the Merensky and UG-2 reefs. Changes in the footwall and the genesis of the Platreef translate into a number of rock types being present. These rock types vary in hardness and recovery potential and present challenges to metallurgical staff trying to optimise the concentrator. A true understanding of the implications of treating these rock types is required if the maximum value from this orebody is to be obtained.In order to more accurately forecast production and incorporate ore variation in the mine plan and comminution and flotation circuits, a geometallurgical approach to managing the operation has been used and is being further developed.CITATION:Schouwstra, R, De Vaux, D, Muzondo, T and Prins, C, 2013. A geometallurgical approach at Anglo American PlatinumÆs Mogalakwena Operation, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 85-92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By P Hayward a, P Evans, K Prince, F Radke

Operating efficiency is becoming paramount as the mining industry moves towards globalisation and conglomeration. Mining companies are continuously searching for new technologies that can improve plant efficiency, by reducing operating costs and maximising metal recovery. Identification of how gold losses occur within an operating plant is crucial for determining appropriate operating strategies for improved metallurgical performance. Classical mineralogical and metallurgical techniques enable the operator to identify where losses occur in terms of particle size and mineral associations, however how the gold is hosted within the mineral grains (for example, as solid solution or as fine micro-inclusions) is more difficult to determine. This paper provides details of the testwork methodology, and resultant laboratory study to improve gold recovery.

Jan 1, 2004

By C Parihar, R Garg, A Bhandari, S Bhandari

Blasting can impact the efficiency of entire downstream mining operation. Individual technology solutions for blasting have been available in the industry for many years but all of them only cater for certain aspects of blasting. Many of them are based on individual research and/or experiences. Some of the available software solutions are not suitable to be used in the field as that they need advanced skills or tools. Also, most do not take technology advancements like mobility, advanced data analytics, web solutions and integration into consideration. Hence, no technology platform is currently present in the industry that addresses all potential needs a blaster may need in an integrated manner.This paper presents an integrated solution that takes care of all aspects of blasting – design blasts according to mine plan; collect data after drilling has been carried out (as there is often difference in designed and actual drilled hole locations in the field); predict blast results in terms of fragmentation, flyrock, ground and air vibrations, wave front reinforcement and flyrock distance; and after assessment, allows changes in charging, delay timing and sequence. The technology solution is a secure, cloud-hosted, web-based software-as-a-service solution that can be accessed from anywhere. Also it has a mobile app, which is available for both Android and iPhone/iPad. The mobile app is also integrated with the web-based solution using application programming interface calls to the central data repository.Case studies for two limestone mines are presented where this solution is being used in its initial format. This software platform enabled analysis of the outcome from a previous blast pattern and then subsequently allowed optimisation of blasting operations based on historical data. Uses of this platform have resulted in improved key performance indicators in these two limestone mines. The mobile app as part of this platform enables extensive field blast data capture and analysis and also various predictions before a blast. Data collected include blast parameters, individual hole charging, initiation pattern, videos, photographs and vibration records for analysis/reporting. The key features of the solution are a blast designer, a detailed blast data collection/analysis and a series of environmental predictors. These predictors give blast results in terms of fragmentation, flyrock, ground and air vibrations and wave front reinforcement and take remedial steps before blasting to optimise and control adverse environmental impact. Many features, such as fragmentation predictor and mobility solution, are completely unique features that are not available elsewhere in such a field personnel-friendly manner.CITATION:Bhandari, S, Parihar, C, Garg, R and Bhandari, A, 2015. An integrated technology solution for optimised and environmentally-controlled blasts, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 393–400 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

Arrow Energy NL has been operating a number of coal seam gas wells in the Darling Downs region of Queensland. At the time of writing this paper, the region is enduring an extended drought period. The local aquifers are depleting and have not been significantly recharged in over a decade. The local communities (both rural and townships) are struggling to obtain water. Currently, coal seam gas (CSG) operators (under licence) draw water from the coal seams as part of the gas production process and the majority of operators choose to evaporate this water, as it is characteristically brackish to saline in quality and as such must be contained. Although the water produced from one CSG operator is not sufficient to drought-proof the greater area of the Darling Downs, there is potential to supply smaller local areas and contribute to the sustainability of these communities. This paper outlines the work completed by Arrow and its local community partners on the Darling Downs to date, and discusses the application of the produced formation water for:stock watering in feedlots, as a feedstock for coal washing, as a potable water supply for Dalby, as an agricultural water supply for cotton farming, and use as a medium for growing salt-water fin fish.

Jan 1, 2006

By J Pan

In this paper, the technology of producing fluxed pellets by using hydrated lime as binder instead of bentonite was carried out. The properties of the two types green balls (0.8 per cent bentonite and 2.0 per cent hydrated lime) were as follows: drop numbers of 4.8 - 5.0 times/0.5 m, compressive strength of 19.7 - 24.2 N/pellet and thermal shock temperature of 280° - 385°, respectively, under the same conditions of 1.5 per cent coke, 1.45 basicity and balling at 8.5 per cent moisture for 13 min in disc pelletiser. Comparing with bentonite as binder, the compressive strength of fired pellets with hydrated lime is elevated by 13.8 per cent and climbs up to 3113 N/pellet under the following conditions: preheating at 1050°C for ten minutes and fi ring at 1300°C for 15 min. In the mean time, the hydrated lime also improves the metallurgical performance of fired pellets. The reduction index was enhanced from 68.6 - 70.6 per cent, RDI+3.15+ increased from 90.1 to 98.8 per cent and reduction swelling index dropped from 22.4 - 7.4 per cent, respectively. The mineral compositions and microstructure of fi red pellets shows that the fired pellets containing 2.0 per cent possess more calcium ferrite and magnesium ferrite and compact microstructure, leading to the higher compressive strength.

Jul 11, 2011

By I Canbulat, G Si, Y Duan, X Luo

The presence of unfavourable geological structures such as faults and dykes often can contribute to coal burst risk. Seismic events associated with rock fractures tend to cluster around these structures and it is important to understand the characteristics of seismicity for coal burst risk management. In an Australian underground longwall coalmine, two clusters of seismic activities close to the longwall face and within a section of the maingate roadway which was intersected by a major dyke were respectively identified. The induced seismicity in the dyke-roadway area was closely related to the longwall mining. These seismic events were located and the distribution of seismic events shows that more fractures were distributed on the inbye side of the dyke. The spatial-temporal changes of the seismic event locations delineate the fracture propagation as the longwall mined through the dyke. The frequency-magnitude relationship of seismicity was analysed and it was found that it changed significantly when the longwall was mining towards, through and past the dyke. The monitoring results demonstrate that because of the stiff dyke, the seismicity was intensified in the roadway section. It proves that the dyke promoted stress re-distribution and seismicity in its vicinity. More fractures were induced in the hanging wall of the dyke, whereas less strain energy was accumulated and released in the footwall of the dyke.

Nov 29, 2022

By Kazis JV

The beneficiation of fine coal has been the major problem facing the coal preparation engineer in recent years. The influence of clay slime, particle size and reagent type are but a few of the many factors that affect the recovery of fine coal. Laboratory test work has indicated that substantial increases in recovery could be achieved by improvements in technology in all these areas. Unfortunately, in most cases this technology has not carried through to the operating plants.

Jan 1, 1984

By R N. Humphries

The aim of this paper is to question the need to develop bespoke monitoring and assessment methodologies and criteria, thereby ‘reinventing the wheel’, when designing and assessing the success of important natural habitat and ecosystem restoration schemes at mine sites in the UK and Australia. It draws attention to the existence and applicability of the Phase I Habitat, National Vegetation Classification (NVC) and Condition Monitoring methods in the UK and similar approaches used in Australia. These are long accepted established methodologies and have published accounts for describing, assessing and managing natural vegetation communities, habitats and ecosystems. They are often used at the environmental impact stage, but seemingly rarely, if at all, in restoration design and management at mine closure. Their application to mine restoration and closure is illustrated and discussed by reference to a surface coalmine in South Wales, UK.It is concluded that the application of a combination of the Phase I Habitat, NVC and Condition Monitoring methods is highly relevant to the expectations of the Convention on Biological Diversity (CBD) and its implementation in the UK, and probably in Australia too. The methodology and criteria described could be incorporated into the guidance and specified in the mining permits so that there is clarity as to the expectations and requirements for monitoring and assessment for bond release. Their use could be of wider application where there is a requirement to assess the success of restored CBD assets and ecosystems.CITATION:Humphries, R N, 2014. Why reinvent the wheel when there are established methodologies to aid the design and assessment of restored natural ecosystems on mined land?, in Proceedings Life-of-Mine 2014 , pp 675–692 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By C Muñoz, N Ortega, J Vergara, D Avilés

Mass blasts have been the subject of extensive studies because of their potential benefits in mining operations. However, it has not been possible to advance due to the paradigm that states that the blasts near the designed final wall or to critical structures have to be low tonnage. Another reason is the absence of specialised simulation programs to more precisely determine the influence of the energy released by blasting to the rock mass. There are some studies that demonstrate the possibility of massive blasting that maintain the design of the final slope (Farias and Santander, 2014). It should be noted that these studies develop the concept that the size of the blast should not increase the peak vibration in the rock mass.The study was carried out in partnership with Los Colorados Mining Company. Analysis, reconciliation and wall control for two types of blasts were performed:blasting production: approximately 850 000 t, with special wall control considerationsblasting of approximately 950 000 t over the entire width of the bench.Monitoring systems were used in the near field and far field using examination of holes in order to obtain information to assess the impact on the rock mass and then to compare these to conventional blasting combining production and contour blasting.The results show that for a large blasted volume, production and/or those generated from toe to crest on the bench did not produce more impact in the rock mass than the conventional blasting.The conclusions drawn from this study are:an improvement in the excavation rate of 7500 t/h that is higher than the maximum rates normally obtainedthe peak vibrations of the P wave generated by both blasts did not exceed the peak particle velocity criteria (Vergara and Muñoz, 2014)holes examination indicating no difference in their entire length, in pre- and post-blast reviewover US$2 000 000 savings generated in the year (estimated by the client) (Avilés, 2014).CITATION:Vergara, J, Muñoz, C, Ortega, N and Avilés, D, 2015. Benefits related to applications of a mass blast in open cut mining, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 625–632 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Field

Many aspects of water use in mining are driven by the technical requirements for water. There has been little consideration given to both the safety and the health requirements. Workers in the mining industry are exposed to water from a range of treated and untreated sources. The intended use of this water dictates the required quality of the water, sometimes with limited consideration for contact with miners. Particularly for underground workers, there is exposure while working in and walking through groundwater possibly contaminated by hazardous substances. Where controls are inadequate the outcomes of this exposure can result in disease, illness and injury û the costs of which can be significant. The situation could also arise where, due to the lack of human exposure, the controls are unwarranted and the financial cost unjustified from a health perspective but warranted from an equipment management standpoint. In addition to the health aspects, water can impact on a range of safety issues resulting from high pressure usage, dust suppression, fire fighting and other processes. The protocols and procedures in place need to consider the safety issues in addition to managing water usage. The current state of water management in mines from an occupational health and safety perspective has been ascertained from a survey targeting underground and surface coal and metalliferous mines. This survey considered the health and safety issues associated with water use, the types of surveillance, control protocols and the strategies that the mines have in place to manage the health and safety risks associated with water systems. The results assisted in the identification of potential occupational health and safety risks associated with water systems and the management processes that may be appropriate from a risk management perspective. Health and safety issues are often neglected but remain critical issues affecting the value of water to the mining industry.

Jan 1, 2006

By S Robinson, R Perkins, D Barrett, D Kepert, C Fowers

The discovery and delineation of significant mineralisation in the Eliwana region continues Fortescue Metals Group’s strong exploration success. In the decade after the first hole was drilled into Christmas Creek in mid-2004 a total of over 11 Bt of hematite-goethite mineralisation have been delineated supporting the raising of $13 B, construction of five mines, 620 km of rail and a five-berth port. As of June 2014, Fortescue was shipping at the rate of 155 Mt/a. The area including the Eliwana and Flying Fish deposits is one of a number of future growth opportunities that Fortescue is currently evaluating.The Eliwana and Flying Fish deposits occur on the south dipping limb of the Brockman Syncline/Jeerinah Anticline. The Eliwana group of deposits are hosted by the Brockman Iron Formation with the Flying Fish/Broadway group hosted by the Marra Mamba Iron Formation.Structurally the area is dominated by moderate southerly dips of the regional dome and keel style folding. The regional limb is locally cross-cut at a small angle by asymmetric north facing Ophthalmian folds trending 110°. These fold sets, in part, preferentially host subsequent supergene mineralisation. Faulting is only locally apparent.Early phases of exploration commenced in 2006, with mapping of Flying Fish and reconnaissance drilling in 2007. However, due to the concurrent discovery (Clarke et al, 2009) and subsequent fast tracked development of Solomon channel iron deposit and Firetail bedded iron deposit (Simpson et al, 2011) priority was placed on developing Solomon due to its relative proximity to existing Fortescue infrastructure. Staged follow-up drilling of both Marra Mamba and Brockman targets at Eliwana was progressively undertaken from 2008 onward.As of 20 May 2014 a total of 1494 reverse circulation (RC) holes for 54 248 m and 13 diamond holes had been completed, resulting in the delineation of a Mineral Resource of 740 Mt. Exploration via mapping, drilling and metallurgical evaluation of adjacent prospects continues with additional resources expected in the future.CITATION:Barrett, D, Perkins, R, Kepert, D, Robinson, S and Fowers, C, 2015. Geological setting of Eliwana and Flying Fish deposits along the north limb of the Brockman Syncline, Hamersley Province, Western Australia, in Proceedings Iron Ore 2015, pp 219–228 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

Methods for ore reserve estimation are classified. The amount of information needed to asses ore reserves is analysed. Reference is made to gold sampling. Consideration is given to nugget effects and ore reserve estimation procedures where they are significant. Computer methods are discussed

Jan 1, 1997

By S Utili, A Agosti

The Overall Slope Angle (OSA) of pitwalls plays a crucial role in the financial return of an open pit mine. In current practice, pitwall profiles are designed to be planar in cross-section within each rock layer, ie the profile inclination across each layer tends to be constant. A new slope design software, OptimalSlope, has been recently proposed to determine the geotechnically optimal profile shapes for the pitwalls of mines. OptimalSlope seeks the solution of a mathematical optimisation problem where the overall steepness of the pitwall to be designed is maximised for an assigned stratigraphy, rock properties (unit weight and strength) and Factor of Safety. The geometry of the benches is provided as input to OptimalSlope. The results obtained so far on three mine case studies in isotropic rock masses (Utili et al, 2022; Agosti et al, 2021a, 2021b) show that optimal profiles are up to 5° steeper than their planar counterparts – ie the planar profiles exhibiting the same FoS – leading to realising significant saving on waste rock and as a consequence Net Present Value increments and carbon footprint reductions. OptimalSlope algorithms have been modified to deal with anisotropic rock masses characterised by direction dependent shear strength. In the paper, the case of rock masses in banded iron formations (BIF) is tackled. A data set of anisotropic rock shear strengths typical of Western Australia is considered. The Snowden modified nonlinear model was employed to characterise the anisotropy of the rock mass shear strength. From the OptimalSlope simulations performed emerges that optimal pitwall profiles can increase significantly the Overall Slope Angle in comparison with planar profiles featured by the same Factor of Safety. LEM stability analyses of all the profiles were also performed by Rocscience Slide 2 to independently verify the FoSs of the optimal profiles obtained.

Nov 29, 2022

By Rankin W. J

Increasing concern with the emission of sulphur dioxide from smelters and roasters has caused renewed interest in processes which can use waste sulphur dioxide, such as the sulphation of nickel laterite ores. The process described here proposes to by-pass the production of sulphuric acid and react laterite directly with a sulphur dioxide containing atmosphere. A thermodynamic analysis identified operating windows in which nickel sulphate forms while iron oxide (the major impurity in most laterite ores) remains stable. The initial assumptions included unit activity of all species except nickel oxide. The lowest possible nickel oxide activity (while maintaining selectivity) increased with increasing temperature, indicating that selective sulphation is favoured by low temperatures. The temperature of interest was found to be between 500 and 800¦C. Calculations show that a feed gas containing ten per cent SO2, five per cent 02, balance N2 requires a temperature greater than 650¦C for selective sulphation of nickel. Laboratory experiments showed that the assumption of unit activity of ferric sulphate was unrealistic above about 680¦C due most likely to the formation of solid solutions which decreased the ferric sulphate activity. Results are presented which illustrate the limiting equilibrium sulphur trioxide partial pressures at 700 and 730¦C below which selective sulphation occurs. Cobalt extraction was usually between 80 and 95 per cent under conditions yielding selective sulphation, whilst nickel extraction was about 50 to 75 per cent depending on temperature and choice of upper limit of iron extraction. An operating diagram is presented for a limonite ore and shows that the optimum reaction conditions are 680¦C and an input gas containing 20 per cent SO2. Under these conditions nickel, cobalt and iron extractions are 73, 95 and two per cent respectively.

Jan 1, 1996

By Shoobridge PH

Operating difficulties during 1977 with the Imperial Smelting Furnace operated by Sulphide Corporation Pty. Limited at their Cockle Creek zinc-lead smelter were found to be caused by premature softening of sinter in the upper shaft of the furnace. This soft- ening was shown to be a consequence of raw materials and operating policies which led to unusually high levels of both lead and silica in a sinter of low basicity. A programme of softening tests and micro-examination of a range of sinters established that premature softening occurred when lead and silica increased to the point where a lead-calcium silicate with a low lime content became the major continuous phase in the sinter. This information was used to define a range of compositions which kept the softening temperature acceptably high for furnace operations.

Jan 1, 1978

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011