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Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002

By S Vearncombe

SpaDiSÖ is a revolutionary approach to the spatial analysis of point data using geometry to analyse geometry! SpaDiSÖ uses each and every spatial relationship and is not dependent on mathematical models. For n points there are n2 û n spatial relationships and, because of the square function, the method yields interpretable results for both small and large data sets. SpaDiSÖ is an alternative to variography for directional studies. At the regional scale, the analysis can assess distribution patterns of mineralisation and potential controlling structures. At the deposit scale, the characteristics of zones of mineralisation such as direction, spacing, high-grade ore direction and grade distribution can all be deduced.

Jan 1, 2000

By Adusumilli M. S, Subrahmanyam T. V, Rao V. D

Chance find of an economically important mineral on the sur- face and its exploitation without proper exploration work, has become the habit of humanity since the Bronze Age. The explora- tion and exploitation techniques have, however, been substan- tially improved in the technologically developed western world and system controlled major communist countries. Nevertheless, the greatest need is felt in the Third World countries where large mineral potential exists, but with inadequate investments in exploration and exploitation techniques, a handicap that has been beneficial to the more developed countries, since long. The great number of the Third World countries which are striv- ing hard to develop, need to formulate mineral exploration and exploitation strategies which could enable them to develop their resources. This requires planning and creating new concepts of ore deposit types and genetic models, rheology, economics and their innovation and integration. The following approach could help them to be economically "more independent" by the end of this century. 1. Bridging of pure and applied geology gap, and creating con- sciousness of research and development. 2. Revision of mineral resources concepts adopted to modern technological world. 3. Improved mineralogical research, and determinative miner- alogy as an important asset. 4. Creative research and establishing know-how, with philosophical base for regional exploration projects. 5. Indepth investigation into the origin and growth of earth as a system, and its importance in the association, quality, and quantity of metallic, non-metallic and energy resources con- centrations. 6. Mineral beneficiation, targets and strateties; methods of eco- nomic and improved recovery systems. Development of alter- native technology, and utilization of mineral technology strategies. 7. Theoretical and practical modelling by conventional and com- puter techniques of the existing and expected mineral resources, and mineral development. 8. Critical analysis of the status of mineral economics of the Third World and developed world with forecasts for the year 2000 based on problems faced by the developing world. 9. Minerals at cross roads of International Interdependence. 10. Philosophical, realistic, traditional and modern strategies for mineral development. The dynamic economic system opera- tion in national mineral sector.

Jan 1, 1988

By M M. Hilden, M S. Powell, B Foggiatto

In an environment of decreasing ore grade, increasing costs and uncertainty with respect to commodity prices, the industry could benefit from evaluating alternative technologies and innovative circuit configurations. The flexible circuit approach suggests that the design of grinding circuits can be adapted to changes in feed properties and economic conditions. Advances in modelling and simulation are enabling metallurgists to predict the performance of more complex circuit configurations with increased confidence. Ore variability information and processing costs may be used as modelling inputs to determine the optimum processing conditions at a given time. A case study has been completed demonstrating the value of combining a flexible circuit with a model-based optimisation of the process. Ore properties and equipment performance data obtained in operating plants have been used to model and simulate flexible circuit configurations.This paper explores strategies to introduce flexibility to existing circuit configurations when processing ores with high variability. Multicomponent models incorporated in the model developers’ kit (MDK) allow the simulation of more complex and flexible circuits. This capability enables demonstration of the potential to enhance metal production through adapting processing routes according to the ore type being processed. The simulation of different flow sheet configurations allowed the definition of the best option for maintaining the metal production when treating lower grade ores, highlighting the advantages of flexible circuit configurations compared with a one-process-fits-all approach.CITATION:Foggiatto, B, Hilden, M M and Powell, M S, 2014. Advances in the simulation of flexible circuits, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 391–398 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By T G. Vizcarra, B Wong

Optimisation projects are regularly undertaken without knowing the root cause of an issue. It is all well and good to trial a multitude of flotation reagents, change the operating characteristics of your flotation cells, or add more media into your ball mills, but time and again, root cause analysis traces issues back to the performance of hydrocyclones. In JKTech's experience, hydrocyclones are poorly operated and maintained (in both primary grinding and regrind circuits), exacerbating issues that many operations commonly experience.Recent case studies are presented where JKTech has been engaged to improve the process only to discover that the hydrocyclones were the main issue. At one operation it was found that the hydrocyclone feed density gauge was reading significantly lower to the actual density. Following re-calibration of the gauge, and with further improvement of cyclone operational and design parameters using JKSimMet, a significantly sharper efficiency curve was achieved. This resulted in improvements to downstream recoveries while alleviating pumping capacities that were previously constrained by fines and water caught up in recirculating loads.Several other case studies are presented which may seem to be relatively basic, but many basics seem to be getting lost in the day-to-day responsibilities of the modern plant metallurgist. Simple fixes to hydrocyclones can result in significant production increases, but more focus is needed in monitoring these to sustain the benefits.CITATION:Wong, B and Vizcarra, T G, 2018. What category cyclone is devastating your plant?, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 665–673 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By M Goers, M Almond

"The use of reverse circulation (RC) drilling for grade control sample collection was selected by the Pueblo Viejo Mine Geology department at the recommencement of the operation in 2010. This method was selected because it allows: for multi-bench drilling (60 m hole depth, four benches of mining) to aid mine planning and provide a detailed close spaced drill data comparison with the reserve model angled drill holes to optimise the drill hole interception of the vertically controlled mineralisation dry sample collection in areas of excessive surface and groundwater mining operations to commence with the long assay return period (due to the need for the samples to be shipped overseas for analysis) until the on-site laboratory is operational.To date, 118 302 m of drilling has been completed throughout the operations of two open pits: Monte Negro and Moore. Two drill rigs (contractor and site-owned and operated) with three generations of sampling systems have been used to date. Throughout the drilling a 20 per cent quality assurance, quality control (QAQC) sample check (blanks, field duplicates and standards) have been used to check the drilling and laboratories performance. In addition, a total of 1104 fines samples were collected to compare the drill chip samples collected and the fines lost with two of the sample systems used.The drilling to date has highlighted the need for a complete and coordinated system to be used before sufficient confidence in the quality of the samples collected is achieved.The complete system must be set-up and coordinated to obtain the best quality sample possible. This complete package includes: drill bit size and shape for the rock being drilled and mineralisation targeted face sampling hammers with the correctly sized hammer shrouds sample hose routing to reduce sample flow turbulence and choking blow-down valves to eliminate drill hole water that has entered the drill string during rod changes correct drilling techniques targeting sample quality a sample system that captures the fines for inclusion into the sample.These improvements can be obtained without reducing the drilling rates.The measurements required to demonstrate the improvement in the sample quality will be the focus of future work within the department.CITATION:Goers, M and Almond, M, 2012. Bit to bag - The importance of a total coordinated system in reverse circulation drilling, in Proceedings Sampling 2012, pp 65-72 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 21, 2012

By Bonsall EM, Schwabe MR, Hamlyn DA

Historically, most of the gold produced from Kalgoorlie has been derived from the gold and gold telluride Golden Mile lode systems dominantly hosted within the Golden Mile Doler-ite and to a lesser extent, Paringa Basalt. In more recent times the gold-quartz stockwork ore bodies within Unit 8 of the Golden Mile Dolerite at Mt Charlotte have become increasingly imp-ortant.Extensive low grade gold mineralisation has now been defined to the north and east of Kalgoorlie within rock units of the Golden Mile sequence not generally considered to be highly prospective.Two main types of mineralisation have been defined. The first comprises variably mineralised and altered quartz-albite porphyr-ies emplaced within talc-carbonated Hannans Lake Serpentinite (Mystery deposit). There is intense fuchsitic, pyritic and carbonate alter-ation of the serpentinite adjacent to the porphyry bodies. Gold mineralisation is assoc-iated with fine-grained disseminations and veinlets of pyrite and narrow quartz and quartz-tourmaline veining within the porphyry and adjacent fuchsite-carbonate rock. Several sets of vein directions are present, some of which typically exhibit sulphide alteration haloesnnA H] rhina_

Jan 1, 1984

By D Gagnon, P Bouchard, F Vanier, E Soares de Lima Filho, J El-Haddad, M Sabsabi, G J. Wilkie, A Beauchesne, A Hamel, A Blouin, T Vaillancourt, F Boismenu, A Harhira, A Plugatyr, C Padioleau

Quantitative mineralogy is an established discipline in the geosciences and is aimed at providing mineral grade and texture information for geological and mineral processing applications. The two core technologies underpinning Quantitative Mineralogical Analysis (QMA) are Scanning Electron Microscopy (SEM) in combination with Energy-dispersive X-ray Spectroscopy (EDS). Technologies such as QEMSCAN and MLA are now routinely used to optimise the performance of large-scale mineral processing plants in the base and precious metal sectors. One of the major disadvantages of the QMA methods used today is extensive sample preparation requirements which make application of this technique to real-time mineralogical characterization not feasible. A breakthrough has been achieved by the National Research Council Canada in collaboration with CRC ORE by developing a novel Laser Induced Breakdown Spectroscopy (LIBS) based technology capable of real-time mineralogical characterization of process streams without sample preparation. The potential applications of this technology include, but not limited to, in-pit muck piles, underground draw points, cross-belt analysis as well as slurries. This paper describes the development of the LIBS-based technology from a proof-of-concept (TRL2) to the construction of a prototype sensor and its validation in a simulated environment (TRL5). Future work is being planned to test and further validate the LIBS sensor on a mine-site which will progress the technology to its next readiness level (TRL6).

Nov 10, 2020

By E S. Weiss, S P. Harteis

The Pittsburgh Research Laboratory (PRL) of the National Institute for Occupational Safety and Health (NIOSH) has conducted full-scale explosion experiments, to evaluate the strength characteristics of various seal designs, used for safely isolating worked-out areas in underground coal mines. Large-scale explosion tests conducted within the multiple entry section of PRLÆs Lake Lynn Experimental Mine (LLEM) is currently the only accepted test method used by the Mine Safety and Health Administration (MSHA), for deeming a seal design suitable for use in American mines. These explosion tests are labour intensive, expensive to conduct, and can interfere with other critical underground safety and health research programs conducted by NIOSH. The PRL has developed an alternative seal evaluation method, based on a hydrostatic pressure loading concept, that can facilitate the in situ testing of seals in an operating mine. Two chambers within LLEM and one within PRLÆs Safety Research Coal Mine (SRCM) were used for hydrostatic pressure loading various seal designs. The results from these chamber tests compare favourably with those from the large-scale explosion tests in the multiple entries. In addition to testing seal designs at the required 20 psi static pressure level, the chamber test approach also allows for the determination of the sealÆs ultimate design strength. Size-scaling relationships for predicting the strength of seal designs as a function of entry size are also presented.

Jan 1, 2005

The Bellambi Coal Company Limited com menced longwall mining at South Bulli Colliery in 1965. At present it operates three long- wall units in two seams. Although results to date have been less successful than planned, it is apparent that this type of mining has tremendous potential in the particular conditions at South Bulli. Massive sandstone strata above the Bulli seam is the controlling influence on face conditions. The earliest equipment proved to be inadequate and the Company has progress- ively replaced and upgraded the roof supports and ancillary equipment so that the present units are capable of producing high and consistent outputs.

Jan 1, 1976

By Minchinton A

CPeX is a non-ideal explosive performance prediction model. The model takes into account the rate of energy release, the extent of chemical reac- tion and the effect of confinement on energy release. The model resolves the explosive energy into `shock' and `heave' com- ponents as a function of explosive type, hole diameter and rock type. The predictions of the model are compared for a bulk emulsion, and a prill-doped bulk emulsion in soft rock. The predictions, based on calibra- tion of the model with simple unconfined detonation velocity measure- ments, show the significant effect of non-ideality on explosive Performance.

Jan 1, 1988

By K L. Olzard

At the WMC Resources Phosphate Hill operation, monitoring the quality of the ore delivered by the mine to the beneficiation plant is of prime importance to ensure the fertilizer is produced cost-effectively through the various stages of production and meets customer quality requirements. P2O5 and Fe2O3 are among the critical-to-quality elements. Fe2O3 is a key performance driver as it is an impurity that adversely impacts some of the chemical processes. The ore is supplied to the plant on a conveyor belt that is equipped with an automatic sampler. Increments are taken off the flowing ore stream at regular time intervals. A variographic experiment was conducted to investigate sampling strategies capable of estimating ore properties over a 12-hour shift to a nominated level of precision. The combination of individual increments into a shift composite was included among the strategies that were assessed. The experiment involved collecting data at regular time intervals and preparing variograms to characterise the feed-grade variability on the conveyor belt. Duplicates were also collected to assist in quantifying the precision of the subsampling stages of the sampling protocol and assay accuracy was monitored with matrix-matched standards. Various sampling schemes were evaluated by combining geostatistical techniques and the sampling theory of Pierre Gy. The following parameters were varied: the number of increments, the increment-size reduction leading to the composite, the masses of the subsequent sampling stages and the number of analytical determinations. This paper describes the planning of the variogram experiment, the various phases of data collection and the methodology used to process the data. It discusses the development of some of the sampling schemes that were considered.

Jan 1, 2005

By M I. Roberts

As Australia’s mining industry painfully retrenches, mining executives and managers strive to remain viable by seeking significant productivity increases directly through process improvement and indirectly by improving leadership and workplace culture, the most powerful determinant of productivity. Culture is the combination of people’s attitudes and behaviour, together with leadership values and focus.Comprehensive new and automated data collection and management systems promise much for improving productivity, yet despite rapid advances in measurement and sharing of data, the use of data can reduce productivity unless behavioural aspects are considered and designed as part of implementation. This is because systems drive behaviour that in turn shapes attitudes to determine culture.Experience from many mine sites and other industries in three countries confirm that the most powerful drivers of people’s behaviour are the Measurement-Analysis-Reporting system and business leadership.This paper discusses fundamentals of practical, statistically valid process measurement, analysis and reporting systems before discussing associated leadership considerations for sustained improvement in safety, productivity, employee retention, leadership, accountability and commercial returns.The key to productivity improvement is improving core processes and important support processes. In turn, the key to process improvement is identifying the major process components and their interaction by measuring and then analysing their variation and level of performance. Understanding variation is often neglected yet is usually highly significant. It is essential that the fundamentals of statistically valid yet practical process and data analysis are understood and incorporated into system design to ensure productive, informed behaviour.The design and use of Measurement-Analysis-Reporting systems influences behaviour most profoundly and determines people’s effectiveness. Behavioural aspects are detailed by focusing on six primary drivers of human behaviour and five basic systems for managing businesses. These are integrated in a seven-step process and productivity improvement methodology that combines statistical, analytical, systems and behavioural factors.The paper includes development, implementation and tracking of a project plan for improving management and leadership systems to drive aligned behaviours. This key leadership responsibility is essential for improving performance to get the most from capital while providing people with the opportunity to develop greater autonomy, which is essential for self-discipline, responsibility, initiative and accountability.CITATION:Roberts, M I, 2015. Integrating measurement, systems and leadership to build safe, productive cultures, in Proceedings Third International Future Mining Conference, pp 73–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By C Taylor, E Retz

Sequential Gaussian conditional simulation of wide-spaced exploration data has been completed in order to optimise a drilling grid at Fortescue’s Eliwana deposit. The aim of this drill grid is to improve the confidence in the Inferred Mineral Resource. A mineralised domain within the Joffre Member of the Brockman Iron Formation was selected to be tested as it makes up a large proportion of the Inferred Mineral Resource and is drilled at a reasonable spacing.One hundred realisations of Fe, SiO2 and Al2O3 grades were completed in the domain. Three realisations were selected for each analyte to represent the range of equiprobable values and a further realisation was selected to represent the truth data set. These realisations were used to flag theoretical drill holes on varying spacings and patterns. The theoretical drill holes were used to estimate into block models using ordinary kriging.These estimates were analysed and the accuracy and precision of each drill spacing was assessed. It was concluded that the greatest improvement in estimation results was noted at either a 100 m × 50 m or 50 m × 50 m spacing.CITATION:Taylor, C and Retz, E, 2015. How much do we need to drill?, in Proceedings Iron Ore 2015, pp 491–500 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Yigit E, Royston D, Winborne DA

Semi-bulk concentrates of 45% zinc at 80% recovery have been produced from the McArthur River mineral deposit. Selective leaching of these concentrates to recover lead and a commercial grade zinc concentrate has the potential to increase significantly the recovery of zinc (as zinc concentrate) and lead (as lead metal) over conventional flotation methods producing lead and zinc concentrates.

Jan 1, 1986

By H Kurth

Oyu Tolgoi copper and gold mine in the southern Mongolia holds mineral resources that make it one of the largest known copper and gold deposits in the world. The project is operating an open pit mine on the near surface of Southern Oyu deposit and developing underground block-caving mine at the Hugo Dummet North where 80 per cent of total resources exists. Oyu Tolgoi (OT) commenced open pit mining in 2011 and implemented an industry standard blasthole sampling, and ordinary kriging grade control estimation with block-out process. Since 2017, grade control improvement projects have successfully completed that have led to the implementation of current, improved grade control system. Geological model is updated by blasthole logging on Leapfrog® and used for daily grade estimations. GC estimation is proceeded solely on Vulcan® by running Lava script and integrating with a relational database. Combination of block-out procedure produces GC model which is updated in Vulcan® and as well as in the database simultaneously. Switching to the integrated database eliminated many manual processes such as importing and exporting data and enabled access to the database anytime, anywhere and from any device. Thereby, these improvements allowed to increase an efficiency, create a comprehensive reconciliation system and reduce operational risks. We are looking forward to expanding applications of integrated grade control data stored in the database. This paper outlines how the grade control system was developed at OT’s open pit mine, and how it is integrated into the short range mine planning, mine reconciliation workflow and ultimately enabled development of various automated reporting systems.

Mar 22, 2022

By R Daiyan, G Burge, M Haider Ali Khan

Australia’s mineral and metal exports have a substantial carbon footprint, twice that of its domestic emissions, mainly due to fossil-fuel-dependent downstream processes like processing into secondary metals and their transport. The country’s vast renewable energy and low-carbon hydrogen potential offer a promising alternative to mitigate this impact. These resources can be leveraged to displace fossil fuel use and become embedded into the metals value chain. Ultimately, it will yield ‘Green Metals’ that can be scaled to reduce the environmental footprint and provide an avenue for Australia’s vast green resources to be embedded (incorporated during production and supply) in green metals that can be exported. One potential green metal is copper, which is in great demand and likely to drive global decarbonisation through renewable electrification due to its role as an energy conductor. Given that Australia is a large producer and exporter of copper, this paper provides a techno-economic model of the copper value and applies it to Queensland (a hub of Australia’s copper production) as a case study. The results show that under incumbent hydrogen (A$8/kg) and renewable energy costs, the cost of green copper would be A$9704/t (~10 per cent higher than current copper costs). Further analysis revealed that the cost of hydrogen is a major cost driver; therefore, if the cost of hydrogen can be reduced to A$2/kg (a 2030 target of the Australian government), the cost of green copper would become competitive. Furthermore, if a carbon pricing regime ($54–79/kgCO2) is introduced, green copper would become competitive at a hydrogen cost of A$3/kg. Altogether, these findings provide insights for a future green copper export opportunity in Australia. Additionally, as the next step, the model can be extended to include other metals and released as an open-source resource for assessing global green metal opportunities.

Sep 1, 2024

The production of synthetic rutile from ilmenite using hydrochloric acid leaching is investigated. Previously published data is used to comment on the optimum process conditions. It is shown that the most important aspect to consider is the maximisation of impurity dissolution and the minimisation of titanium losses.

Jan 1, 2001

Project delivery in our current market is not as efficient as it could be. Industry at large (both client and consultant), is diligently following the engineer, procure, construct, manage (EPCM) or engineer, procure, construct (EPC) delivery models and not necessarily appreciating the underlying principles that make them the effective tools they were to start with. We often misinterpret project management with EPCM and end up with a literal and superficial interpretation instead of the disciplined risk reduction and business value capture exercise it is intended to be. One of these underlying principles is the project team as resource or commodity depending on which perspective we follow. Some of us understand this principle only too well and succumb to the temptation to take advantage of the imbalance in the understanding of EPCM by selling bodies and hours. Value and return on investment do not always come into the equation. The latecomers and aspirants are struggling with this as a barrier of entry into this lucrative market, since as we all know - people as commodity was becoming and still is a scarce resource. Clients are also waking up and asking why 1000 engineers on the floor are better than 100, when engineering design in all aspects of industry, new technology aside, is mature. Why is it that we start with a clean sheet of paper with every project or that neighbours in the same industry segment and location just happen to have completely unique conditions and circumstances that require totally original design (Local conditions aside)? The answers to this question appear when we explore the role of the project team and how it is structured. We will need to investigate team culture and levers for success. Then we will formulate a business case for a team to be able to follow traditional project management practices with EPCM delivery models but yet end up with an alternative look, feel and result. An outcome where more input is not necessarily better and the client and consultant both are aligned with success measured in dollars and a win-win outcome for both parties.

Jan 1, 2009

By R Pozo, F Reyes

Codelco Chile is currently developing the El Teniente û New Mine Level Project (NMLP) in order to increase ore production by seeking to mine the ore deposit located under the current operational orebody. Reserves of 2000 million tonnes (Mt) have been quantified, which will be extracted as from the year 2017 by using the panel caving and progressive sinking method. Codelco and SKM Minmetal (SKM) jointly developed the project prefeasibility stage (PFS), closing these studies in March 2008. The first part of the project approach is to replace mine production currently feeding the Colon concentrator facilities with 137 000 tonnes per day (t/d), focusing attention on a production increase from the year 2026 up to 180 000 t/d. Project efforts have also been centred on maximising the contribution of new technologies for both construction and operational phases of the New Mine Level, together with selecting the best mine infrastructure to keep El Teniente operations going on for the next 50 years. Implicit in this is the inherent improvement of a variety of current Mina El Teniente process and management practices. The plan is to reduce actual mine operational risks and take advantage of new opportunities afforded by the project, which is in effect a greenfield project with respect to the implementation of fundamental changes in the labour and business environment. In addition, issues related to human resources, maintenance and management, materials handling, establishing centralised operations and accesses, automation and remote operations control and power efficiency could also be addressed. The project, beyond the New Mine Level exploitation, considers the mineÆs future potential, with a second deeper exploration in prospect named Deep Level. Finally, the project identifies features that would add value to the mine operations, in an initiative named æSpace for Future TechnologiesÆ. This will allow the eventual implementation of new electrical equipment and the application of mechanised technologies and other process improvements for the mine development.

Jan 1, 2008