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The paper first outlines the conceptual basis for evaluating and controlling geological risk. Geological risk, the economic reflection of the uncertainties associated with tonnage, grade, and other pertinent deposit parameters, is evaluated in terms of economic risk criteria. Delineation provides the deposit information required to appraise and control this risk. The improved reliability of geological estimates resulting from additional delineation reduces the economic risk associated with mine development and production decisions. However, the benefits of delineation, subject to diminishing returns, have to be weighed up against the direct and time costs involved. These costs decrease base case economic values and shift the probability distributions of possible outcomes towards, lower values. The optimum amount of delineation normally is achieved short of the point where economic risk is minimised, depending on the mining company's relative preference for a higher base case value or a lower economic risk. Then, two open pit copper mine examples, based on actual situations, are analysed to illustrate the application of the concepts presented. The first case concerns the extension of ore reserves at an operating mine. Finally, a new mine development opportunity is considered.

Jan 1, 1994

By R Grogan

Nautilus Minerals (Nautilus) is a sea floor resource exploration and development company focused on developing the Solwara 1 Project, a copper-gold sea floor massive sulfide deposit in the territorial waters of Papua New Guinea, for which it holds a mining lease and associated environment permit.During the environmental impact assessment and project development phase, Nautilus completed a number of hydrodynamic modelling exercises in order to predict the nature, volume and extent of the plumes likely to be generated by the sea floor mining tools and return water discharge at the sea floor.The modelling was conducted using the suspended sediment fate model (SSFATE), developed by the United States Army Corps of Engineers and RPS APASA engineering consultants. The SSFATE model was originally developed in order to predict and manage dredging plumes, and has since been adapted for deep ocean sea floor mining. The model uses a Lagrangian approach to remove the limitations of grid resolution, and simulates far-field effects of sedimentation plumes by assuming that the average transport and turbulence associated with currents are dominant over the initial turbulence at the release point. The random walk procedure utilised in the model tracks particle size classes as they disperse and settle, and also takes into consideration any re-suspension that may occur following settlement (RPS APASA, 2014).CITATION:Grogan, R, 2016. Predicting, assessing and managing sediment plumes generated by sea floor mining, in Proceedings Life-of-Mine 2016 Conference, pp 124–127 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By Elford H. S, Hughes J. F

The object of this paper is to bring before Members of the lnstitute the very important and much discussed question of scientifically prospecting for ores, oil, coal, etc.The paper is divided into three sections:SECTION l - Description of Geophysical Prospecting methods.(1) Sound-Vibration.(2) Magnetic.(3) Gravitometric.(4) Electrical.(a) Equipotential.(b) Electro-magnetic.(c) Schlumberger.(d) General.SECTION II - General discussion of Cicophysical Prospecting.SECTION III - Appendices.(1) Systematic summary of methods of survey.(2) Table of electrical conductivities.(3) Bibliography.SECTION I - DESCRIPTION O:F GEOPHYSICAL PROSPECTING METHODS.(1) SOUND-VIBRATION.THE transmission of sound waves or vibrations underground will depend on at least three factors: (a) Type of Rock. - Hard, dense rocks wiII transmit sound waves much more quickly than softer, more porous rocks. In the former the speed may be eight times that of the latter.(2) Uniformity of Rock. - Any variation in the texture, hardness, etc, wiII have an effect on and direction of transmission of the waves.

Jan 1, 1927

By H Kurth

Mining geologists utilise many technologies to map, sample, measure, model and plan before and during the mining process. Predicted ore quality rarely corresponds with feed quality determined by process operators. Objectively measuring conveyed material quality accurately in real time avoids disagreements over mined ore quality and generates opportunities to improve mill feed quality.This paper discusses the well proven PGNAA (prompt gamma neutron activation analysis) technology used in the GEOSCAN-M elemental analyser that is ideally suited to measuring composition of primary crushed conveyed material in real time. Representative, continuous, fully penetrative measurements are unaffected by particle size, belt speed, mineralogy, dust or layering on the conveyor. Material can be directed to processes or stockpiles by utilising measurement increments of typically one to five minutes and then activating diverters to direct increments to the correct location. Waste, low-grade or deleterious material can be rejected to waste dumps or stockpiled for later processing. Material meeting a product specification can bypass unnecessary processing. Paybacks in weeks have been achieved for such applications. Process operators are able to control the blend of ores fed into the mill to improve processing performance and use measurements for ore reconciliation and metal accounting. Utilising the technology to upgrade ore quality after mining and before processing is beneficial in improving plant economics.The technology has been successfully utilised in base metals, ferrous metals and industrial minerals. Mining geologists can determine ore quality being produced in real time and modify the ore quality prior to milling. Ore feed quality measurements are also used by process operators in optimising plant performance. The elemental content can help identify geometallurgical domains as well as other major changes in quality, which may affect processing. This paper outlines proven applications and case studies and proposes some innovative applications.CITATION:Kurth, H, 2017. Measuring ore quality using real-time on-belt elemental analysis – more than grade control, in Proceedings Tenth International Mining Geology Conference 2017, pp 213–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By R Blin, R Walde, R Belli, D Inaudi

A fiber optic distributed sensing system allows the monitoring of parameters useful to determine the short- and long-term behaviour of the structure in response to the external actions, including, eg seismic activities as well as long-term phenomena such as seepage, tunneling, sinkholes, and other geo-structural movements. Monitoring of large retaining structures with such a system provides direct strain/deformation and temperature measurements on the broad interior area with an arrangement of several sensing cable lines, enabling early detection, localisation and sizing of subsurface damages. Measurements are provided every meter along the entire sensing cable, this is particularly important in such cases where the location of defects and damages cannot be predicted. Fiber optic distributed sensing cables are generally available for retrofit installation inside the dam structure using trenches on the downstream face or laid during construction below the geomembrane liner within the bedding sand layer. Mapping the cable route enables exact correlation between a linear coordinate on the cable length and a position in the dam. Cable installation is envisaged to be carried out during further raising of the embankment; additional cable sections are plugged to the previously installed cables and measured with the existing measurement system, requiring only an update of the mapping. The measurement system is placed remotely from the sensing area since a section of sensing cable can be used to link to the sensing area at the storage facility several kilometers away. The system is available for on-line, 24/7 real-time operational data management. Such fiber optic distributed sensing systems allow storage facilities to be monitored with long, accurate, continuous and precise data for geotechnical diagnostic purposes. This contribution will introduce the principles, benefits, and limitations of this technology.

Jul 1, 2021

By S Nowosad, A Binder, O Langefeld, M Bothe-Fiekert, F Apollo

The mining industry faces complex and urgent challenges driven by an increasing demand for raw materials, and a socially demanding globalised world. The extraction of primary raw materials is today more important than ever as one of the cornerstones towards a sustainable future since the increasing demand for the raw materials required for the energy transition. In the last three years, leading countries as USA, China, Canada, Australia, and the European Union (EU) have developed and adopted strategies to enhance domestic extraction capabilities, diversifying sources, fostering innovation in recycling, and promoting international collaboration related to critical raw materials. On 2022, the Inflation Reduction Act was signed into law in the USA, in June 2023, the Australian Critical Minerals Strategy 2023–2030 was published and in March 2024, the Council of the EU adopted the European Critical Raw Materials Act. On the other hand, raw materials extraction is facing higher environmental and safety standards and regulations, as well as scrutiny from the broader public. Regrettable environmental accidents as tailing dam failures or acid mine drainage occurrences have led to a general distrust of mining activities leaving mining companies with the dual imperative of increasing output while implementing sustainability, decarbonisation, and circularity as a core value in their production processes. This challenging environment offers the opportunity to enhance ‘blue mining’ (BM) as a sustainable holistic approach that integrates the principles needed to plan sustainable, reliable, and responsible mines for today’s and future generations by implementing the principles of circular economy (CE). This requires a fundamental shift from the traditional linear economy approach to a sustainable, circular economy strategy. At its essence, BM encapsulates four crucial aspects – energy, ergonomics, water, and circularity and integrates these four aspects into integrative mine planning, defining clear goals and objectives from the ‘blueprint’ of a mine towards a beneficial post-mining activity. Its implementation can lead to maximisation of resources beyond the life of the extractive mine and sustainable use of materials by integrating the principles of circular economy and multiuse mine, see Figure 1. These concepts complement and recognise the need to minimise environmental and social impacts while advancing economic development. Finally, this contribution explains the requirements and challenges of moving from linear to dynamic planning approaches under the BM concept. This way, BM stands as an approach that can contribute to the mining industry receiving necessary approvals and support from society leading to a long-term transformation of the industry’s image.

Sep 1, 2024

By R Justa Cámara, J María Bertrán Llop

"The need for suitable geotechnical characterisation of the rock mass for underground construction is evident. The enlargement project of Railways of the Generalitat of Catalunya (FGC) in Sabadell is a patent example.In general, it is uncommon to encounter problems in the identification and characterisation of certain relevant weak rock formations, which affect project designs. However, all materials should be properly studied, as mischaracterisation can lead to a suboptimal design, resulting in construction problems during the course of the work.Good quality rock is generally not difficult to characterise, but this is not the case for Quaternary or Tertiary cemented soils. Geotechnical investigations based on boreholes do not provide enough information because samples are often badly damaged during the drilling process, if appropriate techniques are not taken. The samples can be altered and may not be representative of the in situ?material.The design and construction of the extension to the FGC line in Sabadell highlighted the importance of the characterisation of Quaternary and Tertiary cemented soils, in particular their rigidity and its underestimation. The twin tunnel project had a total length of 5.1 km, including five stations with 3.5 km excavated by tunnel boring machine (TBM). The remaining 1.6 km was constructed using cut and cover methods. The TBM portion of the tunnel had a bored diameter of 6.83 m with an internal radius of 3 m and 0.25 m thick precast concrete segments. Much of the tunnel alignment passed through and was affected by the presence of certain stiff layers of Quaternary cohesive materials.In this paper the TBM challenges faced will be discussed in detail. In particular:  TBM excavation rate reductions and overheating problems due to the required excessive thrust and torque floating problems in the lining due to nil earth pressure over the rings and the development of an improved, controlled setting time mortar to address this issue block-in and block-out methodology for each station, in some cases with internal blocks to prevent earth pressure drops and soil scouring the relevance of performing simpler solutions, for example, hyperbaric interventions to examine the cutter wheel tools when it has been shown that interventions under atmospheric conditions were equally feasible the implementation of conventional bivalve machines as standard procedure for excavation of diaphragm walls in stations, where in fact, hydrocutter machines or pile boring machines may have been required, given the mechanical characteristics of the materials to be dug out.CITATION:Justa Cámara, R and María Bertrán Llop, J, 2014. Underground extension of the FGC line in Sabadell through cemented soils, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 161–170 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 17, 2014

By A Gibbs

Culture and leadership go hand in hand, especially when it comes to investing in safety. But the reality is that most safety leaders haven’t been taught the fundamental soft skills needed to lead effectively. In fact, only one in four safety leaders demonstrate effective skills and behaviours. Furthermore, when compared to its peers in other high-risk industries, our research indicates mining has the most room for improvement when it comes to effective safety leadership. In this presentation safety culture, climate and leadership will be outlined. Additionally, research data collected from our clients, across a variety of industries, will be shared to inspire reflection on the value of safety leadership. Finally, strategies to empower leaders and increase safety leadership behaviours will be described.

May 5, 2022

By L Hussey

Mt Keith concentrator treats low grade disseminated nickel sulfide ore supplied from the adjoining open pit mine. It is a traditional crushing, two-staged closed circuit grinding circuit (SAG & Ball Mills), followed by a complex split-size rougher, scavenger and cleaner flotation circuit. In 2016, 10.5 Mt was milled, at an average head grade of 0.54% Ni, yielding 35 000 nickel metal tonnes in concentrate.Historical analysis of the plant data indicated that of all the nickel lost in the fines rougher circuit tails stream, 25.6% was recoverable in an eight minute laboratory scale flotation test. These results implied that this fine nickel was readily available for recovery in the plant, either through operational improvements or additional flotation capacity. With operation optimisation ongoing, and capital within the business focused elsewhere, plant personnel were challenged to think differently about improving recovery.In 2012, a separate project to improve plant recovery when treating high talc ore was completed. Amongst other vessels, this project saw the installation of two 150 m3 Outotec Cells to the scavenger section of the fines rougher, middlings and scavengers (RMS 1) circuit. Since installation, the operation of these cells resulted in difficulties immediately upstream with instability in the scavenger cells. It was therefore decided that these cells would be better suited to treating the fines rougher circuit tails.The alterations required to divert these flows were minimal, with the capital project totalling $220 000.In the two years since installation, the fines rougher tailings nickel grade has dropped by 9.9%. The scavenger circuit has also seen a 2.8% reduction in tailings nickel grade, and instability issues were immediately resolved. This project serves as a lesson in how existing plant infrastructure may be better utilised to maximise recovery. Although this is especially applicable when capital constrained, such re-appropriation can be considered at any point to maximise return on existing assets. CITATION:Hussey, L, 2017. Repurposing flotation capacity at Mt Keith nickel concentrator, in Proceedings MetPlant 2017, pp 254–258 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By Read T. A

PART 1The quantity of dust present and the methods used for suppression of dust in metalliferous mines has, in recent years, received considerable attention from mining engmeers in various parts of the world. Shortly after the publication of the General Report of the Miners' Phthisis Prevention Committee, South Africa, in 1916, the officers of the Broken Hill South Limited started investigations into the conditions of the dustiness of the air in the underground workings. As the methods used are not generally known in Australia, the writers are of the opinion that the present is an opportune time to place them before members of the Institute. A large amount of the subject matter of this paper has been drawn from the 1916 and 1919 reports of the Miners' Phthisis Prevention Committee, South Africa, the paper of Mr. Innes published in "The Chemical, Metallurgical and Mining Society of South Mrica"; also various articles appearing in the Journal of Industrial Hygiene, and the American Journal of Public Health. A great deal of research work into the cause, prevention and estimation of mine dust has been made by the Miners' Phthisis Prevention Committee of South Africa, and officials of the United States Bureau of Mines. The writers considered it advisable to begin the investigation at the South Mine with apparatus and methods developed by the South African Committee.Through the Australian agent of the Cape Explosives Company, inquiries were made preliminary to procuring the necessary apparatus for the determination of dust, from South Africa. The writers then learned that the older gravimetric method used by the Phthisis Prevention Committee was likely to be superseded by the konimeter...

Jan 1, 1922

By M J. Pejovic, S BoÜevski, I Miljanovic, M Hudej, A Milutinovic, A Petrovski

The paper deals with the problem of managing the supplies of consumables (energy resources, lubricants, explosives, explosive supplies, tires, spare parts, etc) in mines. After the introductory remarks and comments, a general stochastic model of supply, relating in general to the dynamic programming method is presented. A selection of stochastic supply model for experiments and research by the authors of this paper is not a coincidence, based on of their long experience, showing that this type of model is the most suitable to provide support for decision-making and management of supplies of consumables in mines.In order for the problem?of?consumables?supply?management to be reviewed, in whole and objectively from the aspect of risk, experimental tests of the stochastic model in real conditions were performed at the limestone open pit mine æZelenikovecÆ near Skopje, the capital of Macedonia. The scope of the experimental research enabled reliable analysis. The results obtained confirm the efficiency and reliability of the stochastic model and two separate manipulative-operational positions regarding its application, which may have an important influence on the optimisation of supplies.

Sep 26, 2011

By A Finch, C Pridmore

The Cosmo Project falls within the Archaean to Palaeo-Proterozoic Pine Creek Orogen, one of the major mineral provinces of Australia.The Cosmo Deposit is interpreted to be a series of steep north-west-plunging gold mineralised vein, breccia and shear systems within the tight Howley Anticline and hosted within interbedded siltstones, mudstones, banded iron, phyllites, dolerite sills and greywacke.A folded environment poses a number of technical challenges, particularly for estimation.Handling of tightly folded and in some cases narrow domains might include subdomaining for orientation, omni-directional three-dimensional (3D) estimation within constrained domains or software-enabled unfolding/un-wrinkling procedures (transformation of the data and estimate space into a two-dimensional environment). Each technique has its own unique set of advantages and disadvantages.A further method (one applied at Cosmo) is where the estimation parameters (specifically search and variography orientation) are modified in a frequent or ‘dynamic’ sense to suit the orientation of the domain whilst maintaining 3D space. Control of the resource estimation orientation can be done in several ways, including the use of sectional panels of a specific size or, alternatively, orientation sector divisions. The sector approach provides some significant reductions in processing time over the panel technique and could be applied in a number of software packages.Three-dimensional ‘dynamic’ interpolation reconciles well with production data from Cosmo, whilst the sector method provides a practical technique that can be executed without the complications of transformation or the need for labour-intensive orientation subdomaining and with acceptable resource estimation run time.CITATION:Finch, A and Pridmore, C, 2014. Dynamic interpolation – estimation in a folded environment at the Cosmo Deposit, Northern Territory, Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 107–114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By R A. Pakhomov, L V. Krupnov, P V. Malakhov, I M. Dymov

The article presents results of thermodynamic calculations and laboratory studies, focusing on the cobalt behaviour during oxidative smelting of copper-nickel mattes. The compositions of the studied solutions are related to the products formed during the second stage of the converting process of copper-nickel matte at the Nadezhdinsky Metallurgical Plant (NMP) of MMC Norilsk Nickel company. These sulfide products typically contain from 1.5 to 12 wt per cent of iron. The obtained experimental results and thermodynamic calculations indicate that adjusting the CaO ratio to increase the proportion of CaO or complete replacement of SiO2 with fluxes containing CaO leads to a significant increase in cobalt recovery rates in the matte phase (with an iron concentration of 2.5 wt per cent) raising them from 30 per cent to 45 per cent. Meanwhile, the recovery rates of copper and nickel remain constant.

Aug 21, 2024

Operating metallurgists spend a significant part of their time running plant trials to compare two or more conditions in order to improve the process, such as a new reagent, flow sheet or piece of equipment. The best way to conduct such a trial is as a paired experiment when testing two conditions (eg 'old' and 'new') or a randomised block design when testing more than two conditions. These experimental designs should always be preferred over alternatives if their requirements can be met, because they block the effect of uncontrolled variables ('covariates') and are the most statistically efficient, ie they will lead to the required level of confidence in the outcome faster than other methods. Sometimes, however, it is not possible to switch condition easily, which is a prime requirement of these methods. In such cases the only option may be to switch condition once only, and compare the process performance before and after the switch. Examples are testing grinding media, large equipment, or long residence time processes such as leach trains or CCD thickeners. This paper considers some data analysis methods to deal with this situation. Modelling with intervention analysis (IA) uses regression models with a dummy variable to indicate the presence or absence of the test condition. IA with a time series model ensures that the residuals are uncorrelated. IA with a process model helps to deal with the problem of covariates. The reference distribution is a method free of any statistical assumptions but is less powerful than the other methods. Cusum charts are a helpful visual aid to interpreting time trends. A combination of these methods can help improve the confidence in the final decision. None are as good as a formal experimental design such as a paired trial.

Jan 1, 2008

In February 1995, Falconbridge Limited approved the construction of a nickel mining and milling facility on its Raglan property situated in the Nunavik region of northern Quebec, Canada. The construction period successfully terminated with the commissioning and start-up of the plant and concentrator in early-December 1997. The estimated life of the project is 20 years with an annual mining rate of 800 000 tonnes of ore, producing 21 000 tonnes of nickel per year. This paper discusses the subject of æRemote Mining in the Canadian ArcticÆ as it applies to the Raglan mine process and people. During the feasibility stage of the project, many assumptions were made which influenced the design and operating parameters of the facilities and the equipment. Transportation, communication, remote logistics techniques and standard industry practices required to support a æfly-in/fly-outÆ operation were reviewed and either adopted or rejected for use at Raglan. These assumptions were æmade to fitÆ the uniqueness of our planned operation. It was also acknowledged that many of them would ultimately impact on the people required to staff the operation following construction. Therefore, their suitability and applicability were examined from an economic, operational and human perspective. In a continuing effort to improve the quality of life for Raglan employees, as well as the economics of our mine operations, these assumptions are under constant review and scrutiny. There is no doubt that experiences gained, and willingly shared by other North American arctic mining operations, proved invaluable and are a big reason for RaglanÆs overall success thus far. The mining industry is being challenged technically to develop lower grade orebodies at the lowest possible cost. In addition to environmental constraints, serious social, political and moral questions are being asked and added to this list of challenges. Miners throughout the world must improve their operating standards and public image if we want to attract the best possible employees. Remote mining operations provide a unique opportunity to experiment with various human resource concepts as well as demonstrate the industryÆs commitment to environmental and community concerns.

Jan 1, 1998

By S S. Kanchibotla, S Morrell

In recent years there has been a growing recognition of the impact that mining practices have on the efficiency of mineral processing operations. Head grade, dilution, particle size distribution and their variability are known to have a significant effect on the throughput and recovery achieved in mineral processing plants. Improved process monitoring and modelling have provided the opportunity to identify and quantify some of these impacts and to define very significant incentives to optimise the overall operation from the mining face through subsequent comminution and processing. The Julius Kruttschnitt Mineral Research Centre has been undertaking research to optimise æMine to MillÆ performance through a major AMIRA research project and through individual research contracts with mining companies. This work has resulted in a broad range of field and laboratory experience in terms of both the challenges and the opportunities encountered when tailoring blasting operations to suit the overall æMine to MillÆ production chain. This paper describes the objectives of æMine to MillÆ blasting to optimise the system of rock breakage involved in the blasting, crushing and SAG milling of hard, brittle ores. The design of such blasts falls outside the conventional envelope of experience for most engineers and requires the consideration of some critical factors if the objectives of such blast are to be met and some of the potential problems are to be avoided. Experience to-date has also found that the quality of implementation is critical to the success of æMine to MillÆ blasts.

Jan 1, 1999

By Crawford M

During the initial development of Mount Isa Mines power was supplied from a temporary power plant situated near the Man & Supply Shaft. The main power plant was placed in service early in 1931 and then comprised two Babcock and Willcox boilers, fired by pulverised fuel, and two British General Electric Company's turbo-alternators of 5,000 kW. each. Both plants have been described by A. F. McAskill in the Journal of the Institution of Engineers, Australia.From 1931 power demand progressively increased due to greater production, further mine development in the harder sulphides increased pumping for mine drainage and additions to mill and smelter until, by 1935, the plant was inadequate for further output commensurate with a reasonable safety margin.Coincident with the added power demand, operating conditions involved a fuel problem which could not have been anticipated. The ash content of the fuel supplied gradually increased from 13% to 16-5%, while the melting point of the ash decreased with higher pyrite content.Temperature conditions in the furnace required careful control to cope with ash formation and slag accretions.Consequently brickwork, excessively stressed on water walls, was constantly under repair, and required suspension periods of 50% of operating time for cleaning and overhaul.Load conditions varied continually, therefore the high heat liberations in the furnace, necessary to accommodate peaks in fluctuating output, resulted in ash fusion.

Jan 1, 1939

The Tom's Gully gold mine is located 90km ESE from Darwin, in the Northern Territory of Australia. The orebody is the auriferous portion of a large sulphide rich quartz reef, hosted in the Wildman Siltstone Formation of the Early Proterozoic Pine Creek Inlier, at the NH extremity of the Mount Bundey granite-syenite intrusion. It was discovered by Carpentaria Exploration Company Pty Ltd on November 17th, 1986, using stream sediment geochemistry.The reef is 800m long at surface, strikes E-H and dips approximately 300 to the south, becoming progressively less steep. Only the eastern half of the reef is auriferous, with gold grades averaging 9 g/t plus anomalous silver, base metals and arsenic.The enclosing siltstone is a dark grey banded carbonaceous and pyritic metapelite, showing areenschist regional metamorphism and thermal effects from the adjacent pluton. Local folding plunging gently SW is cut by a south dipping fault, probably a thrust, in which the reef was later formed at about the time of the granitic intrusion. The main sulphides in the reef are pyrite and arsenopyrite, with gold occurring as microscopic particles in...

Jan 1, 1990

Since the early 1990s it has been evident that electricity demand has outstripped investment in generation and transmission. At the same time, concerns were being expressed about the risks associated with the run down of the Maui gas field. It is axiomatic that the necessary investments firstly require a stable and supportive regulatory and fiscal environment, and secondly that such investments have long lead times. A unwillingness by successive Governments to fund the necessary infrastructure, however, lead to the profound restructuring of the electricity with the ultimate objective of transferring the investment risk from Government to the private sector. Successive power crises since 1992 result from a failure to put in place a regulatory framework necessary to provide the environment to allow the private sector to make the needed investments within the necessary timeframe. The electricity sector has now stabilised to the extent that the regulatory risks associated with generation investment have been reduced. This does not mean that risk has been eliminated, however, and both economic and environmental issues will continue to constrain investment in some power proposals particularly those in the South Island and especially any South Island coal or gas thermal proposal. This is firstly because of several very simple economic issues:  1. while the South Island may have significant coal resources it lacks a significant electricity market; 2. except for a six to ten week period in a dry year, low cost hydro will price any large-scale South Island thermal out of the market which will restrict any large scale thermal station to a dry year and/or peaking load; 3. except for a six to ten week period in a dry year, export capacity on the HVDC link to the North Island is constrained to around 964 MWe (and 482 MWe from North to South in dry years); and 4. construction of any new thermal plant in the northern half of the North Island will price any South Island thermal station out of the market. There are also significant environmental issues associated with the establishment of a large scale thermally based power station in the South Island. Because the South Island lacks any large scale economically proven gas reserves, the environmental constraints considered are those associated with coal production. A coal mine dedicated to power generation will have significant on-site impacts associated, in particular those associated with disposal of opencast overburden and visual impacts. These will, however, be partially offset by the relative remoteness of such sites to population centres. What cannot be offset, however, is the off-site impacts, in particular, CO2, SOx and NOx emissions, water disposal and acid mine drainage.

Jan 1, 2003

By J Missen, P Currie, J Bohan, D Clark

AGL is one of Australia’s leading integrated energy companies and the largest ASX listed owner, operator and developer of renewable energy and thermal generation in the country. AGL owns and operates the 2210 MW Loy Yang A power station and adjacent 30 Mt/a brown coalmine in the Latrobe Valley, Victoria. It also supplies coal to the nearby 1050 MW Loy Yang B power station owned by the GDF Suez (Engie)/Mitsui partnership. The mine is currently nearly 5 km long, more than 2 km wide at the operating face and up to 200 m deep. AGL employs a large workforce at Loy Yang and a substantial amount of services are performed on-site by contractors and consultants.GHD provides mine planning, earth sciences, civil/geotechnical engineering, dam surveillance, plant engineering and environmental services to AGL Loy Yang through an alliance framework. GHD is one of the world’s leading professional services companies operating in the global markets of water; energy and resources; environment; property and buildings; and transportation. In addition to GHD’s global footprint, the company also has a significant Victorian presence, including a permanent, well-resourced regional office in Traralgon, approximately 10 km from Loy Yang, as well as a permanent site office.A joint paper on the Loy Yang mine professional services alliance model was written for the AusIMM International Mine Management Conference in 2006 by Woods and Wood. Now ten years on, this paper provides an overview of the present relationship and arrangements, including the continued transformation of the alliance model and maturing of the relationship contract.These are challenging times, with increasing cost and regulatory pressure driving change in the broader energy and resources industry, and locally including both the mining and power sectors at Loy Yang. Flexible models to achieve a balance between internal personnel and access to key external skills, whilst achieving value for money and transparency, is increasingly critical. The right drivers and performance measures are essential, particularly when confronted with potential major technical and environmental risks (considering significant ground failure and fire events that have occurred elsewhere within the Latrobe Valley over the last decade) within a sector that is reducing costs and optimising production.This case study discusses the alliance status and changes, reasons behind adjustments and what the future is likely to hold. The paper also explores the validity of the original objectives and the extent to which they have been achieved. The philosophy of the alliance is to continue closely aligning the objectives of the two companies in the best interests of the Loy Yang site and immediate surrounds/stakeholders. Quality of service, costs, timeliness, health and safety (H&S) and some operational activities (aquifer depressurisation) remain important aspects and are reflected in key indicators for which performance is measured.CITATION:Clark, D, Bohan, J, Currie, P and Missen, J, 2016. AGL energy, Loy Yang and GHD – a further case study in alliancing: ten years on, in Proceedings International Mine Management Conference, pp 321-330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016