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By P McCarthy

"This paper is based on 30 years of involvement in feasibility studies as a participant, study manager and the leader of a firm that provides study components and overall study management. The following topics are discussed:the purpose of feasibility studiesaligning the goals of the study team with those of the ownerthe difference between optimisation and designhow the types and levels of studies affect the organisation of the studythe relative merits of various management structures and contractual arrangementssetting scopes of work and tendering the work outthe selection of a study manager and the study management teamcommunications within the study team and externallythe project management trianglemanaging scope changes and maintaining flexibility to respond to study findingsprogress paymentsmanaging a study crisisinnovation, risk aversion and bankabilityreporting the resultsthe dangers and benefits of value engineering.CITATION:McCarthy, P, 2016. Making studies work – organisation, communication and management, in Proceedings Project Evaluation 2016, pp 20–30 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J T. Carswell, N A. Schofield

Fluctuations in periodic reconciliations between the mine and the mill are an expected and common experience in mining and processing operations. These fluctuations are caused in part by errors in the estimates of tonnage and grade of the mined material as well as errors in the millÆs assessment of the material processed. Keeping these errors small and unbiased is an important aspect of an efficient operation whose primary goal is to derive maximum benefit from the exploitation of the mineral resource.These fluctuations in periodic reconciliations can also mask subtle but economically important problems which may take years to identify and resolve. Such problems can result from a poorly-conceived model of the mineralisation which affects both the spatial distribution of the ore as well as the tonnage - grade distribution over the range of cut-off grades. Poorly conceived models of the mineral resources and ore distribution can arise as a result of insufficient and inadequate?drilling and sampling of the mineralisation, inappropriate?application of geological?constraints in the estimation process and the use of inappropriate methods to estimate the block grade distribution. This paper presents three case studies from gold and copper mining operations, two of which experienced significant problems with their mine to mill reconciliations over extended periods of time. For the gold mine in case study 1, sampling problems were ultimately considered to be the main cause of the poor reconciliations between grade control predictions and the mill which persisted over a period of 18 months. In addition, incorrect application of resource modelling methods contributed significantly to a mismatching of the mill capacity with the mine at the beginning of operations. For the underground copper mine in case study 2, a change in the approach taken to resource modelling brought marked improvements in ore definition and more accurate predictions of ore grade and better production forecasts.The third case study describes the background to the expansion of production to exploit a large tonnage of lower-grade stockwork mineralisation in an open pit gold mine. Several years of favourable Mine to Mill reconciliation data from the mining and processing of higher grade and lower grade stockwork styles of gold mineralisation provided the confidence in the approach to grade control to support the expansion plans during a period of low gold prices.The paper is intended to complement the discussion of mineral resource estimation methods and risks in Section 6.1.3 of the Mine ManagersÆ Handbook to be published by the Australasian Institute of Mining and Metallurgy (Schofield, 2012).CITATION:Schofield, N A, Moore, J and Carswell, J T, 2012. Mine to mill reconciliation - Three case studies, in Proceedings International Mine Management 2012, pp 161-172 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By E Philippa, J Vitanza, C Hawtin, B Miller

B Miller , E Philippa , C Hawtin and J Vitanza

Mar 22, 2022

By B Taylor, S Evans

Bulk explosive technology for underground mining has not seen any significant technological advances since the widespread transition from ammonium nitrate fuel oil (ANFO) to ammonium nitrate emulsions (ANE) commencing in the 1980s. The in-hole energy profile that conventional ANE systems deliver is limited by the physics of chemical gassing and simple control systems. This compromises the range, precision, and accuracy of energy delivery into the blasthole, and in some cases limits the length of charge that can be delivered. Orica’s 4D™ bulk system removes many of these constraints, enabling better blasting performance across all underground mining methods. This paper reviews work completed at three mining operations across Australia, the United States, and Chile with a focus on how this system can improve mining operations and deliver sustained commercial and productivity benefits into the future. These benefits include improved ore recovery, reduced dilution from waste rock, and reduced overall explosives consumption. This paper also reviews how this new technology can be applied for planning future mining operations.

Sep 1, 2024

By T Roberts

The transition of mechanical cooling refrigerants from their inception in the 1800s through to the current day has been driven by several factors. Original refrigerants such as sulfur and carbon dioxide, chloromethane and ammonia, whilst effective came with toxicity and/or flammability issues. In 1930 DuPont trademarked a new synthetic refrigerant known as Freon® 12, this development was the introduction of ‘chlorofluorocarbons’ (CFCs).Throughout the 1930s and 1940s additional synthetic refrigerants were developed, namely Freon® 11 and Freon® 22. Due to their non-toxic and non-flammable characteristics, synthetic refrigerants were extensively used for domestic, commercial and industrial applications for the next 60 years.In 1985, one of the first scientific papers suggested a potential mechanism linking CFCs and areduction in the density of the ozone layer. In 1987 the Montreal protocol is ratified; it is the first UN treaty to be ratified by every country on earth. Due to CFC’s ozone depletion potential (ODP), the treaty required the consumption of CFC’s to be reduced by 50 per cent over the next ten years. By 1996 the phase out of CFC’s (Freon® 12) is completed, the phase out of HCFC (Freon® 22) refrigerants comes into effect.On 1 January 2018 the phase down of HFC’s begins. Whilst having zero impact on the ozone layer HFC refrigerants have high global warming potential (GWP). As we transition through the HFC phase down (2018–2035) we are beginning to see the emergence of what some consider to be the fourth synthetic wave, hydrofluoro-olefins (HFO’s). HFO’s and their blends have zero ODP and low GWP’s, ranging from 150 to less than 1. The reduction in GWP with HFO’s typically comes at the expense of flammability, which is not ideal. Each refrigerant has its optimal application, therefor when considering refrigerant choices for mining systems, a complete assessment of the environmental, health and safety, efficiency and commercial impacts should be considered now more than ever.

Oct 12, 2022

By G Harbort

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

Sep 5, 2011

By G Tsatouhas, R Newell, K Y. Wong

A sulfide ion selective electrode was used to control sulfidiser addition in the flotation testing of a synthetic and a naturally occurring ore containing malachite in order to compare the behaviour of sodium sulfide and calcium polysulfide. Both slug and controlled potential sulfidisation methods of addition were used. Under defined optimum CPS conditions, calcium polysulfide was a more effective sulfidising agent than sodium sulfide on the basis of both capital and operating costs. Surface and solution studies were used to compare the mechanism of each sulfidiser. For calcium polysulfide, XPS showed that polysulfide ions are adsorbed, whereas for sodium sulfide it is the hydrosulfide ions that are adsorbed on the mineral surface. For calcium polysulfide, the CuSx layer was believed to form on the malachite surface, which promoted the flotation of the malachite, by xanthate. Studies of surface morphology of the sulfidised malachite showed that a fairly uniform sulfidised layer is formed with both reagents. The use of sodium sulfide resulted in a thinner initial sulfidised layer compared to polysulfide at equivalent initial sulfur concentration.

Jan 1, 2005

By L S. Shekhawat, M P. Roy, R K. Paswan, P K. Singh, A Joshi

Blasting in the mining industry is being transformed, and can no longer be treated as an art or a practice purely dependent upon experiences of individuals. Examples of key drivers that have demanded consistent and more accurate blast results are initiatives to control pit-wall damage to help mine steeper pit slope angles, to control damage to underground opening operating in close vicinity of the open pit mine. Such situation exists at Rampura Agucha open pit lead zinc mine, which is producing 5.7 Mt/a of ore and has started its underground part, which is slated to produce initially 2–2.4 Mt/a and 4.5 Mt/a in the near future. The open pit mine is currently working at 326 m depth and is designed to reach 421 m deep. It has been planned to operate the underground mine maintaining 50 m parting from the planned ultimate level of the open pit mine.Presently, open pit and underground mines are being operated simultaneously. The present average depth of underground working lies between 370 and 410 m below the surface level. Sometimes explosives up to 95 978 kg are being detonated in a blast round in open pit mine. These blasts are often apprehended as a danger to the safety and stability of underground openings. It was decided to document the impact of open pit blasting in the openings of underground workings, so that preventive measures may be taken for the safety and long-term stability of the underground mine. The impact of 86 open pit blasts has been documented in the underground openings and 258 blast vibration data has been recorded. The vibrations were recorded simultaneously in the roof, side walls and at floor levels. The highest levels of vibrations were recorded in the roof and the lowest levels at the corresponding floor levels. The pillars experienced lower level of vibrations than the roof. Blast designs were optimised at open pit mine to control vibration in view of long-term safety and stability of the underground openings. The vibrations generated due to detonation of explosives with shock tubes and electronic delay detonators have been recorded in underground openings for comparative assessment. Ground vibration recorded at roof, pillar and floor were analysed separately and threshold value of the vibration for the safety of underground workings has been determined based on the rock mass rating of the roof rock.CITATION:Singh, P K, Roy, M P, Paswan, R K, Shekhawat, L S and Joshi, A, 2015. Protection of underground mine structures due to adjoining open pit mine blasting, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 279–288 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By E Amini, M Scott

Grade Engineering® involves the planning, integration and operation of coarse preconcentration techniques to reject uneconomic material as early as possible in the mining value chain to improve the quality of ore delivered to mineral processing activities. These preconcentration techniques include screening for natural and induced deportment of grade to finer size fractions during blasting and coarse breakage, sensor-based measurements of grade and mechanised sorting at particle or bulk scales and coarse gravity separation. Over the last decade, the Cooperative Research Centre for Optimising Resource Extraction (CRC ORE), with the support of its participants, has developed a framework for the holistic evaluation of economic and production impacts attributable to these preconcentration techniques. The framework combines the characterisation of preconcentration responses, geostatistical modelling, process modelling and simulation of downstream and upstream production impacts and the optimisation of strategic mine plans to quantify changes in net present value due to different preconcentration strategies. This framework has been applied to evaluate preconcentration techniques at numerous metalliferous operations and can also be used to quantify changes in the environmental metrics for energy, water and steel consumption and emission, tailings and waste rock production. This paper collates the results of these Grade Engineering® studies to show the range and magnitude of economic and environmental impacts attributable to preconcentration. The studies have shown that rejection of uneconomic material prior to mineral processing activities can have a pronounced improvement in energy, water and comminution steel productivity, emission intensity and the profitability of metalliferous mining.

Nov 10, 2020

By M Watson, A V. Engelbrecht, E Murray-Hayden

Whereas mine reconciliation is a well-established month-end process for most modern mining operations, the resource sector has yet to endorse uniform reporting factors against which model accuracy and metal recovery can be formally assessed. Logically, any comprehensive reconciliation framework should facilitate comparison between period reserve, mine and mill and production figures. Historically, Parker’s F Series ratios (Parker, 2012) are often used in some form by mine operators, although they are rarely shared externally, as formal definitions have yet to be accepted. This paper presents a structural extension to the reconciliation process, wherein resource ratios (R Series factors) are used to quantify the long-term impact of the information effect, together with dilution and ore loss. A case study from the El Limón Guajes (ELG) Mine Complex in Mexico is used to demonstrate how an R Factor Series can be implemented to facilitate operation optimisation, over and above conventional F Series reconciliation treatments. This approach is applicable to any mining operation.

Mar 22, 2022

By A M. Barrett, P J. Chapman

As filtering technology improves and there is an increased focus on environmental impacts, the concept of managing fine coal rejects by filtering, mixing with coarse rejects and dry stacking them is being considered more seriously. In Queensland, there appears to be a desire from regulators to move away from wet rejects facilities towards dry-stacked facilities, resulting in a change in the risk profile for the facility.A coalminer has a site with many constraints, including limited area that is not planned to be undermined and nearby rivers that are prone to flooding. The design of a dry-stacked facility that meets the operational requirements and environmental compliance criteria is challenging in subtropical climatic settings, where there is a need to consider wet seasons with high-volume, sustained rainfall events. The impact of the rainfall is multifaceted, requiring careful surface water management to separate clean and contact water, adequate foundation preparation to limit seepage to groundwater, management of stack stability given a potentially high phreatic surface and the avoidance of potential flood zones. These design constraints were compounded by a limited area available for rejects storage that would not be undermined.This paper presents a summary of the conceptual design of a dry rejects facility, including consideration of regulatory and client requirements, provision for expansion while also considering progressive rehabilitation, diversion of clean water as much as practicable during operations and siting constraints. A step-by-step concept is presented that addresses each constraint during the life of the facility.CITATION:Barrett, A M and Chapman, P J, 2015. Conceptual design of a dry-stacked coal rejects facility in a subtropical climate, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 27–34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By A Dennis, T Hunter, R Coleman

For metallurgical plant design, it is necessary to progress through successive phases of test work, piloting and process development before involving all the other engineering disciplines and “freezing” the process design criteria and flow sheet. This process usually relies upon the experience, skills and personal preferences of various technology providers, study and engineering entities, test work and metallurgical laboratories and, most importantly, the owner’s team and its operators. Current industry trends include lower grades, more complex orebodies, geometallurgy in defining orebody variation and design envelopes, more common “hybrid” plant processes and the market demands for more reliable, timely and predictable early plant performance.This paper will discuss interaction of these trends and provide guidelines for the level of detail and technical complexity required for a number of different “typical” examples. The paper will pay particular attention to the study definition level translated into the required detail and certainty needed by the overall process “owner” and original equipment manufacturer (OEM) equipment suppliers to ensure the best real plant performance. Some recent case studies will be discussed. In many projects, at a late stage of project definition, it has become common practice to undertake a “value engineering” phase. Although it could be argued that this should be undertaken earlier, it is largely driven by an overall need to reduce capex and “optimise” the perceived “fat” built into the project during the detailed design process. This value engineering can be very counterproductive to project timing and operational performance and warrants discussion.The paper is intended to promote discussion on a topic of wide interest. The authors’ diverse backgrounds and experiences are integral to the views in this paper.CITATION:Dennis, A, Coleman, R and Hunter, T, 2017. Critical process design considerations from test work to operations, in Proceedings MetPlant 2017, pp 12–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By D Reid

Characterisation of non-plastic segregating tailings presents a number of challenges: the material cannot typically be sampled in an undisturbed state, remoulded samples exhibit different behaviour to undisturbed samples, penetration test interpretation methods suffer from uncertainty in their application to many tailings and the tailings gradation changes considerably over relatively small lateral distances and depth. In addition, the process liquor of many Western Australian tailings contains large quantities of salt and other dissolved solids, which can further complicate laboratory test programs. To provide an insight into the variability at a typical gold tailings facility, four gradations of the material were tested to obtain critical state parameters. Historic surficial tube samples were collated and organised by gradation to establish the range of densities typical after settling and air drying. These were then compared to laboratory-accessible densities. Finally, tube samples were tested in the laboratory to observe if the large-strain material behaviour was consistent with the inferred critical state parameters for similar gradations. Site pore fluid was used in the testing of the tube samples in an attempt to assess if the pore fluid modified the critical state conditions of the material.The tube samples tested all exhibited strongly dilative behaviour in undrained shear. Of the four samples tested, only one exhibited behaviour consistent with the inferred location of the critical state line relevant to the material’s gradation. The reasons for the unexpected behaviour of the other three samples include layering within the samples, the potential influence of large quantities of salt in the pore fluid and likely differences in the gradation of the fines components of samples taken from mid-beach and the decant area.CITATION:Reid, D, 2015. Observations on the behaviour of a gold tailings with hypersaline pore fluid, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 191–200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By M Russ, J Gediga

This paper shows an economic feasible approach to implement greenhouse gas (GHG) reduction measures into the mining and metallurgy industry (MMI). The goal to improve energy consumption is directly linked to the reduction of GHG emissions in the MMI. A baseline scenario of the considered reference system and of the respective reference year has to be designed and analysed. In a second step an analysis of the same operation using the best available technology (BAT) processes is carried out to generate a basis for a benchmark system. The identified gaps will be reported and the potential GHG emission reductions will be put into relation to the investment, running cost and generated carbon credits of the new process technologies to be implemented. This economic feasibility calculation is necessary to realise a cost efficient GHG reduction roadmap decision-making for implementing new technology into the companyÆs business operations. The GHG reduction roadmap is developed using the marginal abatement curve approach.

Jan 1, 2009

Early theories of coal formation are outlined, with special emphasis on the arguments for allochthony and autochthony. Various aspects of the nature, growth, and decay of the characteristic vegetation of the brown coal peat moors, their conversion into coal, the origin of banding, and the influence of tectonics are discussed.A description of the banding in Victorian brown coals is followed by a discussion of their vitrain, fusain, and natural carbonized coal; and concludes with the nature of the coal resin and the possibilities of its extraction.The nature and derivation of inorganic matter in brown coal, based on Lessing's classification, is described. Assimilation of mineral substances in specific plants with variations due to environmental factorsare illustrated by analyses of present day trees. Consideration is then given to possible sources of salt, marcasite, and quartz in brown coal.It is shown that part of the inherent and extraneous ash may have been removed during and after coal formation. The nature and abundance of the organically combined substances in brown coal emphasizes the anomalies that may arise from estimating the total inorganic matter from ash contents.After classifying deposits on external heating surfaces of boilers, theoretical and practical aspects of slag formation, alkali matrix deposits, and the effect of sulphur and chlorine are considered.Analyses of deposits in boilers burning Victorian brown coal are tabulated.Slagging at the Yallourn power station from sand in the Yallourn open cut, and difficulties with Yallourn North Extension coal at the Maryvale paper mills are described.Tests carried out on Morwell and Yallourn coals showed that with the former, impacted deposits formed on boiler heating surfaces, and left a high percentage of chlorides on probes. Morwell briquettescompared with Yallourn briquettes also reduced the running time of a semi-industrial boiler through deposits with sodium sulphate as...

Jan 1, 1962

By W D. Rech, K W. Keskimaki

As an integral part of the conversion from rail haulage to conveyor haulage at Henderson, over six kilometres of drifting and several large complex openings were mined. The deepest of these areas was nearly two kilometres beneath the surface, bringing all of the challenges of rock stress and heat that come with mining at these depths. Though many mines operate at these depths, the development of the infrastructure necessary to support a 36 000 tonne per day caving operation brought some unique challenges to the development mining activity. The issues handled include: finding experienced staff for a æfast trackÆ development program; rock bursts and ground conditions; inflow of 50 degree centigrade water; acceleration of the project completion; large diameter raise boring and difficult muck handling.

Jan 1, 2000

By K W. Mills, N R. P Baczynski, J Mylvaganam, D A. Prado, M F. Lee, I A. de Bruyn

"This paper presents the second part of a study of the assessment of rock stress inputs on the performance of various new mining designs at the Ok Tedi large open pit mine in Papua New Guinea. Over the years, four programs of rock stress measurement have been completed at Ok Tedi, each providing different interpretations of the in situ field stresses. Details of three of these programs and interpretations are provided in the precursor to this paper, entitled ‘Rock Stresses at Ok Tedi, Papua New Guinea’ (Lee et al, 2014).This paper explains how the various stress interpretations were utilised in the modelling of the proposed new open pit and underground mining excavations, comparing where possible their expected effects on stability. The modelled performance of three specific mine components have been discussed here as case studies, including: the below-pit drainage tunnel, as the floor of the open pit workings is mined down from 350?m above, to within just 75?m above the crown of the tunnel the stability of the 1000?m high slope of the proposed West Wall cutback the proposed sublevel open stoping extraction sequence in the Gold Coast orebody beneath the East Wall, for which only the likely ‘worst-case’ stress regime was used to assess sequencing and stability issues.The benefits of scheduling the collection of detailed rock stress measurements and other input data from a range of different sources at various stages of the projects are discussed.Alternative in situ stress models have less stability impact on open pit slopes than on underground mine excavations.CITATION:de Bruyn, I A, Baczynski, N R P, Lee, M F, Mills, K W, Mylvaganam, J, and Prado, D A, 2014. The application of rock stress inputs to stability assessments at Ok Tedi Mine, Papua New Guinea, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference, pp 43–54 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 5, 2014

By D Davis

The prediction of ground-borne noise levels from tunnel construction activities requires knowledge of the input vibration forces from the vibration source(s) into the cutting face, knowledge of the vibration transmissibility through the surrounding medium, and knowledge of the receiver building’s vibro-acoustic response. The conversion of this vibration energy into sound pressure within the receiver building depends upon the vibration coupling of the soil and the building’s foundations, the structure’s response including floor-to-floor attenuation and amplifi cation due to resonance, the radiation effi ciencies of the internal structural elements, and the room’s acoustical properties. Beginning with a known input vibration spectrum at the cutting face, it is possible to predict the resultant ground-borne noise levels within a receiver building using either analytical and/or empirical techniques, or by numerical modelling. This paper presents an overview of the various methods available to estimate ground-borne noise levels from tunnel construction activities and discusses the advantages and limitations of each.

Mar 8, 2011

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

By T Ireland, S Eratne, W Newns, P Spies

The approach to risk management during the procurement of major projects often has a significant outcome on the ultimate delivery of a project. The NZ$1.4 B Waterview Connection project is the largest and most complex project yet undertaken by the New Zealand Transport Agency (NZTA) and the procurement process for an alliance contract was refined to provide compliance with the International Tunnel Insurance Group (ITIG) Code of Practice for Risk Management of Tunnel Works (TCoP). The principle of shared risk within an alliance incentivises a common understanding of project risks prior to finalising the alliance agreement and therefore enables superior risk management through design, construction and beyond. Risk management practices need to be instigated well in advance of commercial phases, so that commercial competition does not lead to a significant elevation of project risk. In particular the practice of gaining commercial advantage by taking on a potentially unmanageable level of risk is one of the outcomes to be avoided by the TCoP.During the procurement phase the NZTA placed high value on design and construction mitigation measures proposed in order to address ground risks, as is appropriate for a major tunnel project. In order to achieve alignment on the level of geotechnical risks an Alliance Geotechnical Baseline Report (AGBR) process was developed.This paper describes the measures taken during the procurement process to achieve certainty with respect to outcomes and minimise project risks whilst also achieving value for money. Refinements to the procurement process to ensure compliance with the TCoP prepared by the International Tunnel Insurance Group (ITIG) are described along with the AGBR process applied as part of a suite of measures to achieve a successful procurement outcome.CITATION:Ireland, T, Spies, P, Eratne, S and Newns, W, 2014. Risk management and use of a geotechnical baseline report for a competitive alliance procurement?process, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 553–562 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014