Search Documents

By J E. Powalisz

"The application of automated sampling techniques can help to provide a representative sample of process fluids and slurries that provide data for controlling process, custody transfer and quality assurance and quality control purposes.The automation of sampling provides a more consistent and reliable sampling process and eliminates many of the human-induced errors. Automated sampling can also provide a higher degree of safety in the plant/processing environment as well as better bottom-line results.Automated, fixed volume samplers can provide a very representative sample by integrating many small ‘grabs’ of sample from a process. Automated samplers can be controlled in a variety of ways to optimise the sampling process, including:cycle ratedwell timetotal volume.Properly selected and applied, an automated sampler can effectively isolate the operator from the process fluid during sampling and, to a great degree, during sample container collection.A variety of materials of construction, including seals, are available to handle demanding mining applications. Alloy 625, alloy 2205, AL6XN® and even certain plastics are used successfully in mining slurry applications.This paper explores the application of automated, fixed volume, batch style samplers in copper/nickel and gold processing, specifically pregnant leach solution and extraction fluids.Several specific field applications are discussed, including process installation details, hardware and operation.CITATION:Powalisz, J E, 2014. The application of automated samplers in copper/nickel processing, in Proceedings Sampling 2014, pp 35–42 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 29, 2014

By R Paterson, A Christensen

The routine use of gravity gradiometry for the detection of orebodies with no outcrop is now being undertaken. The commodities and orebody styles range from banded iron ore formations to volcanogenic massive sulfide (VMS) style polymetallic deposits. This recent innovation of flying gravity gradiometry was pioneered by BHP Billiton and Lockheed Martin with the Falcon technology (Lee, 2001), and now two additional systems, also using Lockheed Martin instruments, are deployed. In South Africa, magnetic gradiometry is being developed and deployed with the same objectives in mind. In this case, a system from Institute of Photonic Technology (IPHT) is being used. The detectable wavelengths from such systems have decreased to less than 200 m in the last year, and it is expected in 2011 that wavelengths to less than 100 m, with anomaly signal strengths of less than 2 Eotvos for gravity gradiometry will be viable. The key to these advances lies in the improvements of processing software and geological modelling. In particular, methods using all the tensor components are starting to be routinely deployed to filter, level and grid the observed signal. These methods do, however, require full insight and understanding of the reference coordinate systems used by the various instrument designers and survey operators. The digital terrain models need also to be observed to an accuracy of better than 20 m cell sizes, using such techniques as Lidar. Then the terrain effects can be modelled. The topographic surface represents the largest and most proximal density contrast encountered in an airborne survey. Hence terrain effects can have significant impact on airborne gravity gradiometry data. A decorrelation of the terrain effect with the observed signal requires a method of best fitting with a regional surface density. A novel technique has been developed for this purpose. This technique uses a tensor algebra to estimate a density between 1 - 4 g/cc that explains the average observed signal. Armed with this result, the anomalous buried bodies can be revealed by subtraction.

Sep 26, 2011

By A S. Lund

Optimisation of the underground mining production process benefits from informed decision making during the process of explosive rock fragmentation. Selection of the most appropriate bulk explosive products for underground production blasting is an area of endeavour that offers significant economic upside if correctly and thoroughly undertaken. The explosive selection process is facilitated by a clear understanding of:the physical and detonic properties of the alternative explosive options available; the response of different rock masses to these different explosive options; and the importance of maintaining a clear focus on desirable blast outcomes in order to enhance value creation aspects of the mining production process. The level of understanding of these issues is raised through the application of measurement and modelling technology, quantifying the effects of blast design (and implementation) on process outcomes. Homestake Darlot and DynoConsult applied a range of dynamic blast measurement and outcome modelling techniques in order to explore the relationship between rock properties, explosive properties and mining process efficiencies. A campaign of vibration and explosive Velocity of Detonation (VoD) measurement produced feed data for use in vibration and fragmentation modelling during the extraction of one of the major stoping blocks at Darlot Gold Mine. The paper describes the use of these tools and discusses the understanding gained concerning the limitations and capabilities of, and the reconciliation between, a selection of analysis and modelling approaches.

Jan 1, 2001

By A Nigam, K Biswas, R Sarkar

Because of the problems with 1st and 2nd generations of Advanced High-Strength Steels (AHSS), a 3rd generation of AHSS steels has become prominent and these steels have properties in between the 1st and 2nd generations of AHSS. However, although the 3rd generation of AHSS is a promising candidate as a replacement for its predecessors, there remain some challenges in processing these steels which are essentially medium Mn (Mn content ~ 5–7 wt per cent) and high Al (Al content ~ 1– 3 wt per cent) steels. The use of conventional casting powders based on the CaO-SiO2 system is unsuitable for high and medium Mn/Al steels. This work investigates the development of CaO-Al2O3- based mold fluxes for casting third-generation AHSS steel. Mold fluxes, with otherwise similar compositions but different C/A ratios, are tested and their crystallisation behaviour is examined using differential scanning calorimetry (DSC). A calcium aluminate phase having a composition Ca12Al14O33 was found to be the main crystalline phase in the mold fluxes. A decrease in crystallisation temperature was observed as the CaO/Al2O3 ratio increased from 1.00 to 1.33. The effective crystallisation rate constant exhibited an increase with decreasing crystallisation temperature, indicating a potential influence of nucleation rate on the overall crystallisation rate and suggesting an anti-Arrhenius behaviour in the crystallisation process of these mold fluxes.

Aug 21, 2024

By B Dodd

This paper details how the Australian Securities and Investments Commission (ASIC), as a disclosure and conduct regulator, approaches regulation of continuous disclosure, capital raising and control transactions in the mining and resources sector, and the reasons for the approach. In examining this topic the paper considers the Joint Ore Reserves Committee (JORC) Code (JORC, 2004), the VALMIN Code (VALMIN Committee, 2005), the relevant ASX Listing Rules and the relevant provisions of the Corporations Act 2001 (Corporations Act). This paper discusses ASICÆs approach to expert reports and disclosure with reference to Regulatory Guides 111 Content of expert reports and 170 Prospective financial information.CITATION:Dodd, B, 2012. Issues in capital raisings and disclosure, in Proceedings International Mine Management 2012, pp 3-14 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By P Odins

Traditionally, stratigraphic deposits have been represented by a large number of gridded surface and product analytical models, related to each other by naming convention. This approach, though suitable for structurally simple stratigraphic deposits, does not lend itself well to addressing the complex style of stratigraphic deposits which are becoming more prevalent. In addition, the sheer number of individual gridded models involved makes it very difficult to keep a consistent audit trail of the overall deposit model. Recently, a new enhanced block model structure known as Horizon Adaptive Rectangular Prism (HARP) models was introduced to address these issues. An HARP model is specifically designed to allow stratigraphic units to be represented with virtually no loss of structural integrity, by allowing the tops and bases of the individual HARP blocks to ‘bend’ in concert with the input surfaces. By bringing together the best of grid modelling, triangulation modelling, block modelling and grade estimation, the HARP model opens up many exciting new opportunities for the stratigraphic geologist or engineer to take their model further than was previously possible. Examples of improvements in modelling methodology using a HARP model include: the ability to represent complex normal, reverse and thrust faulting; the ability to store thousands of additional analytical, geotechnical or calculated variables in each individual block; advanced visualisation, manipulation and plotting capabilities; and the ability to calculate volumes and resources against complex, three-dimensional (3D) solid pit designs. Finally, several ‘real world’ scenarios, illustrating how this advancement in modelling technology can benefit a wide range of mining professionals are detailed. These examples demonstrate how productivity gains can be made in both long-term resource modelling and short-term ‘week by week’ geological modelling as an adjunct to mine planning.

Aug 22, 2011

By C Hoffmann

Given that each year, 30–40 per cent of mining industry deaths are attributable to failures of vehicle interaction controls (EMESRT, 2023), the mining industry is now armed with a growing body of knowledge from EMESRT (Earth Moving Equipment Safety Round Table) and ICMM (International Council on Mining and Metals) global vehicle interaction initiatives over the past years, that enables mining companies, OEM’s and technology providers to work together to develop and implement more effective controls and drive the adoption of capable solutions. Leveraging 20 years of experience as a global technology provider of Proximity Detection System (PDS) and Collision Avoidance System (CAS) solutions for surface mining operations, Wabtec Digital Mine Technology shares key insights for ensuring the effective selection, implementation and integration of these technologies into existing mine site controls and mining operations for effectively reducing vehicle interaction risk enabling mines to drive towards ‘zero-harm’ objectives. Topics covered include: alignment with industry best practice for controlling vehicle interaction risk by EMESRT and ICMM, importance of the maturity of EMESRT levels 1–7 vehicle interaction (VI) control framework, managing expectations that PDS/CAS is a ‘silver bullet’, alignment with industry functional – performance – technical requirements, proximity detection versus collision avoidance, sensor performance and fusion and limitations, rules engine intelligence critical to mitigating nuisance alarms during normal operations, system health monitoring and reporting, human factors engineering and operator acceptance, implementation strategy, installation standards and quality control, change management program, training programs, reporting and data analytics with actionable insights and maintenance strategies. Insights will also be provided on the challenges moving from EMESRT levels 7 (operator awareness) and 8 (advisory controls) to level 9 (intervention controls) as it’s a journey not an out-of-box solution, the growing demand for coexistence of CAS and Autonomous Haulage Solutions (AHS), functional safety approach, value added systems integration and the applicability of new emerging technologies.

Apr 16, 2024

By E Hondros

Innovation and Business Skills Australia (IBSA) commissioned The Boston Consulting Group (BCG) to undertake a study into how the role of AustraliaÆs senior managers is likely to change between now and 2020 and to identify the skills and attributes that will be needed to respond to those changes. This report builds on a previous study prepared by BCG in the early 1990s for the Industry Taskforce on Leadership and Management Skills (Karpin Committee), which provided a snapshot of the Senior Manager in 2010. The following powerpoint slides summarise the 2020 Vision û The Manager of the 21st Century û outlining how the role of AustraliaÆs senior managers is likely to change between now and 2020 and to identify the skills and attributes that will be needed to respond to those changes. The presentation is summed up in the following quote from Jon Nicholson û Senior Vice President of BCG: We believe that to succeed in the years up to 2020, executives will need to master a range of hard and soft skills. Amongst other things, they will require to manage multi-generaional teams, the creativity to measure staff performance on outputs rather than inputs, and a high degree of technical and functional expertise in addition to their general management credentials. This paper is available as a PowerPoint presentation only.

Jan 1, 2006

By R Barritt, P Scott, K Albano

Successful closure of tailings storage facilities (TSFs) is an environmental issue faced globally by metalliferous mines. During the initial feasibility and design phase of the mine life importance is placed on the physical stability of above ground TSFs, largely driven by legislative requirements, whilst closure planning is often a secondary consideration. However, as the landform is further developed and constructed attention must be paid to regularly revisit the original closure plan and update it to achieve the best (sustainable) possible outcome for both the environment and stakeholders. A mine in northern Queensland is in the process of developing a closure strategy at their TSF. Appropriate closure measures for the TSF are required to mitigate the impact of any seepage emanating from the TSF on the groundwater and surface water receptors. O’Kane Consultants Pty Ltd (OKC) have provided the mine assistance with the development of a TSF cover system design in order to appropriately manage tailings during operations and to prepare for the facilities’ closure. OKC has collected data since 2007 from cover system field trials located on the TSF. To enhance engineering judgement in the design of future cover systems, calibration of soil-plant-atmosphere numerical models to field data (referred as ‘field response modelling’) were completed. Calibrated model inputs can be used to provide insight into long-term cover system performance as well as a tool for design of the final landform.Following a site investigation, materials characterisation and numerical modelling program various cover system alternatives were developed. Two of the preferred cover system alternatives referred to as Test Plot #1 (TP#1) and Test Plot #2 (TP#2) (Figure 1), were constructed at the site and instrumented. Monitoring instrumentation comprised several nests of in situ volumetric water content and thermal conductivity sensors to measure changes in water content, temperature and matric suction within the cover system materials and underlying tailings waste. Run-off collection buckets and a fully-automated meteorological station were also installed. CITATION:Barritt, R, Albano, K and Scott, P, 2016. Findings and conclusions following ‘long-term’ cover system monitoring – refinement of the conceptual design for tailings storage facility closure, in Proceedings Life-of-Mine 2016 Conference , pp 85–88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By P K. Wong, D A. F Oliveira, F M. Azad

In situations where foundation piles are located in proximity to existing or future tunnels, it is typical for the tunnel owner to require that sleeving of the piles be carried out to at least the invert of the tunnels to minimise any load transfer to the tunnel lining. In competent rock, this practice may be sometimes unnecessary, thus uneconomical. This paper presents an assessment of the effect of pile loading from one of the multi-storey buildings at Barangaroo South in Sydney on the adjacent future Sydney Metro tunnels. It was originally required by Transport for NSW (TfNSW) that the piles be sleeved below the tunnel invert level; however, the building developer wanted to reduce the pile sleeving depth to achieve a more economical solution due to the large number of load transfer piles being required for the project. To assess this feasibility, a full 3D commercial numerical code, FLAC3D, was used to carry out this complex soil-structure interaction analyses. Based on these assessments, it was demonstrated successfully to the TfNSW that the pile sleeving may be terminated at 2 m above the tunnel invert level. For this arrangement, the investigations found that the loading on the piles should have negligible adverse impact on the tunnel lining design. As a result of such an assessment, the proposed pile sleeving level was approved by TfNSW, thus offering an economical foundation solution for the project.CITATION:Azad, F M, Oliveira, D A F and Wong, P K, 2014. The impact of pile loading on adjacent metro tunnels – Barangaroo South, Australia, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 355–360 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By M Dietrich

The paper describes an efficient method for analysing the different attachment kinematics of excavators and other linkages by taking into account digging forces, the workspace and the stability of the machines. The different attachment kinematic systems of hydraulic excavators and a æclassical analysing methodÆ will be presented. The method was integrated as a plug-in for the multibody simulation (MBS) software MSC.ADAMS to create an easy to use solution for design engineers. A comparison of the new MBS-solution with the classical static analysis is a part of this paper and shows the advantages of the new method. This takes into account the manifold and new dynamic analysing opportunities, as well as more detailed models leading to more accurate results.

Sep 26, 2011

By J Bolen, I Cameron, M Huerta, M Okrutny, K O’Leary

As greater amounts of fine iron ore concentrates enter the marketplace, new investments in iron ore pelletising capacity are inevitable to deliver these concentrates to steel industry consumers. When investors assess the two well-proven pelletising technologies, the straight grate and grate-kiln, the most appropriate choice may not be immediately evident. Certain technical, market and site-specific factors will favour one technology over the other; investors need to be aware and understand these factors in order to make the best investment decision. Hatch has compared the merits of both technologies regarding plant configuration; type of iron ore processed; energy consumption and flexibility to use a variety of fuels; ability to produce the required pellet quality; required plant capacity and scale; operating and capital costs and environmental performance. A technology assessment checklist that investors should consider when making a new pellet plant investment decision is presented.CITATION:Huerta, M, Bolen, J, Okrutny, M, Cameron, I and O’Leary, K, 2015. Guidelines for selecting pellet plant technology, in Proceedings Iron Ore 2015, pp 45–52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By B Lumsden, R Smiles

Independence Group’s Jaguar Mine treats a polymetallic ore producing a copper concentrate and zinc concentrate. Effective separation of the sulfides requires relatively fine grinding with flotation feed P80 of about 75µm. Zn losses to final tails are greater than 60 per cent and <32 µm. When magnetic conditioning was first installed in 2010 it showed about an 8 per cent reduction of zinc in final tail and on some ores a similar benefit for silver as well. Current testwork is showing about a 12 per cent reduction in zinc and silver in final tail, consistent with the original testwork. Sizing of the final tail during the tests showed that the reduction of zinc and silver losses were only in the <32 µm fraction, as would be expected from an aggregation process. However, the most surprising result was about a 4 per cent reduction in zinc and silver in the plant feed with a >99 per cent statistical certainty. The reduction in zinc and silver in the feed is also only in the <32 µm fraction. Therefore, because the magnetic conditioning of Zn flotation feed cannot impact plant ore feed grade the hypothesis is that the magnetic conditioning is reducing the fine mineral from downstream processes, like filtering and thickening, returning to the plant feed in the recycled process water. This hypothesis is consistent with plant observation of dirty concentrate thickener overflow and measurements of solids in the overflow, as well as the average % Zn grade in cyclone overflow that correlates with the magnetic conditioning ON and OFF days. This paper presents these plant test results.CITATION:Smiles, R and Lumsden, B, 2018. Improving fine sulfide mineral recovery in Independence Group’s Jaguar Mine zinc circuit, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 433–440 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By K Gardner, R Fraval, V Singh

Using new technology to create optimised infill drill programs in underground or open pit settings, it is possible to quantify the value of a drill program. The computer designed programs are optimised to uplift the most amount of resource possible into the specified resource classification, while honouring geological, spatial, equipment and budgetary constraints. When designing ‘by hand’ balancing all these factors is a time-consuming effort with no real way to determine metrics on ‘how good’ a program will be. The optimisation considers many factors allowing geologists to apply critical thinking and domain knowledge to constrain the optimisation, letting the computer do the heavy lifting of determining hole placement. Once programs have been created, they can be integrated into a production schedule. This is a critical step in determining the correct sequencing and balancing of resource availability and seeing how a program will interoperate with other tasks in the mine. For example, if drill drives are a requirement for part of the program, will they be developed in a time frame that is useful for the goals of the program? Do we risk drilling infill holes too late to add value? Do we put production at risk by not classifying parts of the model ahead of time, thus adding to uncertainty? Using software to assist with optimising and scheduling of drilling is a useful technique to save the geologists from the mundanity of manually designing drill programs and puts metrics around the effectiveness of a program and has the potential to add quantifiable value to a program. Examples will be presented that demonstrate the effective use of drill hole optimisation, comparing manual designs with optimised designs, as well as the examples that show the effective use of scheduling.

Mar 22, 2022

By D Reid

Run-out analyses of tailings storage facilities are typically undertaken using methods based on rheological theory. These are reasonable techniques to model the behaviour of tailings that, through significant run-out and possibly mixing with supernatant water, are generally acting in a fluidised manner. Such modelling often follows on from two-dimensional continuum analysis models where, if failure is predicted, grid failure often occurs when deformations begin to increase. This results in a disconnect between the prediction of failure and the modelling of the potential extent of the failure.Recently, rezoning methods have been incorporated into commercially available two-dimensional soil mechanics deformation codes. Rezoning techniques enable large deformations to be modelled within a two-dimensional continuum analysis framework; however, while promising, the use of such tools is not yet widespread, and a consensus is yet to develop on how they should be applied to tailings dam run-out modelling.This paper uses FLAC rezoning techniques to model the flow behaviour of two historic tailings dam failures. The purpose of these analyses is to critically assess the performance of rezoning against some available historic failures. The required data to undertake such an analysis is outlined, along with the inherent limitations and assumptions required. Parametric analyses are outlined to address some of these issues. In general, the analyses undertaken underestimated the flow distance observed in the historic failures by varying degrees; however, in some instances, the analysis reasonably reproduced the qualitative shape of the initial failure zone. A variety of potential reasons for the discrepancy between historical observations and the models undertaken are provided.CITATION:Reid, D, 2015. The use of rezoning techniques to model historic tailings failures, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 201–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By I M. Platten, Y Xie, B W. Cuffley, S C. Dominy

"Geometallurgical programs require the collection of representative samples for geochemical, mineralogical and metallurgical test work. Such protocols must be designed to suit the style of orebody in question. The distribution, proportion and size of gold particles have a direct impact on the effectiveness of sampling and test work protocols, and the gold recovery processes employed. Characterisation studies focusing on ore mineralogy, and gold particle deportment, size and distribution are required. High resolution X-ray computed tomography provides a non-destructive method for analysing the 3D nature of gold in rock samples. It can be used to calculate the modal abundance, particle size and distribution of gold in the sample volume. This paper presents a case study of the imaging of in situ gold particles in a high-grade gold ore. The Nick O’Time reef system comprises laminated quartz veins, which locally bear extreme grades of up to 100 oz/t gold. The mineralisation has previously been characterised from both a mineralogical and metallurgical perspective. Eight visible gold-bearing vein samples were scanned using X-ray microtomography. Microtomographic data were integrated with previous mineralogical and metallurgical test work outputs.CITATION:Dominy, S C, Platten, I M, Xie, Y, Cuffley, B W and O’Connor, L, 2016. Characterisation of Gold Ore from the Nick O’Time Shoot (Tarnagulla, Australia) Using High Resolution X-ray Computed Tomography, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 241–254 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

The borehole televiewer is a downhole geophysical logging device that produces continuous, oriented, 360¦ images of the drill hole wall. Two types of borehole images are currently being generated at the BHP Billiton Mount Whaleback deposit. The optical televiewer (OTV) tool captures a ærealÆ image of the borehole wall whereas an acoustic televiewer (ATV) generates an image through variations in physical borehole size, scattering the energy from an acoustic beam. Orientation of the resulting ævirtual coreÆ is derived through magnetometers and accelerometers, providing values within one degree for both inclination and azimuth. Downhole structures such as fractures, joints, foliations and bedding planes are selected directly off the borehole image, recorded and displayed in a 3D modelling package along side adjacent drill holes. Measurements are corrected from apparent to true dip and magnetic to true north. Strata-bound magnetic anomalies are identified and corresponding measurements excluded. The importance of borehole imaging increases substantially with its ability to integrate the OTV and/or ATV data with other forms of lithological and structural data. At Mount Whaleback, the borehole televiewer has been implemented to provide information for geotechnical exploration including structural analysis, lithological characterisation and rock-mass conditions. Within the large area in and around Mount Whaleback, drilling may intersect a number of different geological formations with various rock types and conditions. With the application of the borehole televiewer, reverse circulation drilling can provide information traditionally obtained by diamond drilling.

Jan 1, 2007

By A Chadwick, J de Ross, C Adams

Imagine a æshinyÆ new mine, $1 B in the bank and record commodity prices. So how does a company and its management team create enough tension to maximise profit and to establish a culture that can weather the good and bad times?That was exactly the situation the team at OZ MineralsÆ world class Prominent Hill mine in South Australia faced in 2009.Three years later, the harder times have come - lower though still healthy commodity prices, rising industry costs, fierce competition for talent, geological and technical issues (common to developing mines). However, the company was able to maximise profit during the good times and equip the culture to deal with the tougher times with minimal turnover.Through the combination of simple systems and processes, people development, application of commercial technical acumen and a combination of yin and yang leadership, OZ Minerals has achieved something quite rare - sustainable continuous improvement.The journey started with a vision. The EGM Operations created the æsparkÆ. The dream was to create a æfranchise mineÆ that could be rolled out to new mines and acquisitions as the company grew. However, the real leadership came from his lieutenants who provided the important yin and yang. The GM commercial provided the tools, processes, systems and the bottom line focus. The GM operations focused on culture, leadership, training and sustainability. This powerful combination (along with some good old persistence) was able to create the critical mass required to make continuous improvement go æviralÆ.This paper explores this unique case to uncover the essential ingredients that were created and mixed together. It will touch on the key human, technical and system elements that helped achieve significant improvements in plant recoveries, mine throughput and operational efficiencies, while overcoming human capacity, geotechnical and contractual challenges.CITATION:de Ross, J, Chadwick, A and Adams, C, 2012. How to create a perfect storm, in Proceedings International Mine Management 2012, pp 239-250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By P J. Fairfield

"This paper reflects on the author’s experiences in undertaking mining studies and reviewing mining projects and technical reports, particularly over the past five years, and the impact of recent changes in reporting standards and listing requirements pertaining to mining-related evaluation and valuation exercises. It also discusses contemporary changes in the expectations of the investment community and the implications for the role of the technical specialist in providing advice to such stakeholders.Not for the first time in history, the resources industry has experienced a significant downturn after a period of strong, sustained growth in line with the traditional view of the cyclical nature of commodity markets. The resource industry is currently faced with capital austerity in the wake of projects ‘failing’ (not delivering to expectations). In response, the industry has experienced changes in investment behaviour (slowing of investment) and an increasing regulatory burden as stakeholders seek a greater understanding of mining project risks.This paper discusses this response and uses case studies to highlight the key learnings (perhaps re-learnt) by the industry. It also discusses the challenges faced by technical specialists in communicating the results of technical and valuation studies to the investment community.As investors seek to take advantage of the current stage in the investment cycle, the key challenge of the technical specialist is to effectively communicate the uncertainty in technical assumptions, risks and opportunities that drive project value.CITATION:Fairfield, P J, 2016. Managing expectations – from buyer beware to buyer be aware, in Proceedings Project Evaluation 2016, pp 66–74 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

The Pongkor Gold Mine employs 678 staff. The mine is owned by the Indonesian state company PT Antam Tbk and is located 100 kilometres south west of Jakarta, in Java, Indonesia. Mine and infrastructure development started in 1992 following intensive geological exploration over 15 years. First gold production was in June 1994. The mine comprises three main orebodies: Ciguha, which is nearly mined out, dips at 75¦ from surface to 150 m. Kubang Cicau, dipping at 80¦ from surface to 230 m, and averages 3.5 metres thick at a grade of 10 g/t Au and 128 g/t Ag; and Ciurug, dipping at 60¦ from surface to 300 m and averages eight metres thick at a grade of 14 g/t Au and 172 g/t Ag. Present global ore reserves are 4.6 million tons at a grade of 12.3 g/t Au and 133.6 g/t Ag. Exploration is continuing for new veins. Initial mining was by manual cut and hydraulic fill at Ciguha, followed by Kubang Cicau. In 1996, it was proposed to convert Ciurug to a mechanised cut and fill operation. Two single boom jumbos and three load-haul-dumps (LHDs) were purchased with the assistance of a gold loan from NM Rothschild and Sons. Implementation of this upgrade was delayed by both a national economic crisis and an invasion of the concession by illegal miners. It was not until May 1999 that raise bore vent rises and access drift infrastructure commenced. Major underground development started in 2000 and is continuing. Production cut and waste fill stoping started in July 2001. The change from manual to mechanised methods has required a total change in work practices and attitudes. However, the process has resulted in a production increase from 600 tpd to 1200 tpd. A three-month compliance test (a condition of the financing loan) was successfully completed, from July to September 2001, with an average production of 700 tpd at Ciurug and 500 tpd from Kubang Cicau.

Jan 1, 2002