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This paper provides a financial perspective to the valuation of Australian resource companies and projects. Valuation exercises need, however, to be seen in the broader context of a thorough business appraisal, one that incorporates all disciplines employed in the resources industry. Fine tuning a discount rate or determining a particular capital structure is likely to be less important to valuation than an adequate understanding of industry dynamics and a company's likely performance in future years.

Jan 1, 1989

Mining projects draw together stakeholders with various degrees of experience in managing and assessing financial risk. When this risk is not fully appreciated or quantified, the potential for making decisions not suited to investor requirements is significantly increased. A feasibility study provides key information on project development potential, requiring detailed technical investigations with thorough financial analysis. Centaur Mining and Exploration (CME) owned and operated Cawse Nickel Operations (CNO), one of three Australian projects to develop and process vast amounts of near surface nickel resources. A technical ædue-diligenceÆ and æbankable feasibility studyÆ confirmed the large resource base, newly applied yet tested technology and relatively low unit costs would produce nickel in the lower half of industry operating costs. A number of production variables including capital requirements, delayed start-up, nickel grade, processing, maintenance and product output were outside the feasibility estimate. This was combined with exchange rate fluctuations and lower Ni prices. The inability to generate adequate cash flow and service debt repayments ultimately led to receivership and liquidation of all assets. Following the sale of CentaurÆs gold and nickel divisions, $A 784 million remained outstanding to creditors. This paper aims to define key issues leading to CNOÆs collapse by reviewing feasibility parameters, valuation methodology and project development. Some methods of assessing project viability are discussed with the aim of increasing stakeholder risk awareness.

Jan 1, 2003

Fleet management systems have been adopted by many open pit mines throughout the world and the resulting improvement in truck cycle times has been one of the most significant contributors to mine efficiency. Ongoing enhancements to fleet management systems such as interfaces for vital signs monitoring have given incremental efficiency gains. Each incremental improvement is another step towards a grand vision of a totally automated mine. A relatively new fleet management system is being integrated with two other technologies to provide a highly reliable platform for a networked information system which monitors mine machinery and production. The paper reviews the integration project, the features of the new mine site information network platform and the contribution to productivity and safety. The new fleet management system has a predictive truck dispatch algorithm. It also has a distributed database that replicates rapidly so that each machine in the fleet has an identical database, thereby making each machine aware of other machinesÆ locations on the site. High precision systems for navigating and monitoring machinery such as drills, dozers, draglines and shovels provide individual machine operators with cockpit style real-time information to increase their operational efficiency. The integration of the new fleet management systems capabilities with the high precision systems that provide production information, machine vital signs data and operator information means that the mine operations and maintenance managers have real-time access to the whole mine siteÆs production data. Such a mine monitoring and reporting system is dependent on reliable wireless communications and reliable positions. Positions in fleet management and high precision systems for open pit mines are usually provided by global positioning system (GPS). Other global navigation satellite systems (GNSS) such as Glonass, and in the future Galileo, will provide additional satellite cover; however, some parts of open pit mines do not have enough sky visibility for reliable GNSS positioning and so a new centimetre level wireless positioning system called Locata is being integrated with the fleet and high precision systems to augment and backup the GNSS positions. The final integrated system will provide the highest levels of reliable position-based information to all stakeholders in a mineÆs operation, ensuring gains in productivity and safety.

Jan 1, 2008

It's a great pleasure to be here today, for a whole series of reasons. First of all, when I first went to Perth back in 1972, I shortly afterwards began auditing and one of the people to pick on me when I audited the West Australian Newspaper at that time was Patrick O'Connor's father. One way to win a person across when you're auditing and getting picked on is by showing an interest in their children, so I did that and employed Patrick in our firm. In those days, conflicts of interest didn't occur. When I started Normandy, Patrick was one of the first people I went to get to work with me. He very unwisely chose to leave at one stage and you can see he's done extremely well by not staying with us. So it's lovely to have you here today, Patrick. The difference between Patrick and me, now, is that he's kept his hair, and if you're tall enough you can see I haven't.

Jan 1, 1997

By M Cooksey, Z Zhu, N Langrené, W Chen, T Tarnopolskaya

"Dynamic decision-making can significantly increase the value of mining projects and deliver better sustainability outcomes under conditions of uncertainty. Despite its benefits, dynamic decision-making is rarely used by the mining industry, possibly because of the complexity of the algorithms used to make sequential decisions under uncertainty and difficulties in visualising the optimal strategies. To achieve better outcomes in practice, decision-makers in industry would benefit from a tool that would help them to understand and implement the results of the analysis.CSIRO is developing innovative dynamic decision support tools that include an intuitive graphical display of the boundaries between the regions of different optimal decisions, which would significantly assist optimal sequential decision-making under uncertainty. The dynamic decision support tool is based on novel stochastic optimal control methodologies that can be used to optimise decisions in situations with multiple uncertain variables and decisions (Tarnopolskaya, Chen and Bao, 2015; Chen et al, 2015; Langrené et al, 2015). The types of market uncertainties that can be considered include commodity prices, interest rates and exchange rate, while the key orebody uncertainties include the reserves, boundaries between ore types and even geometallurgical parameters.The dynamic decision support tools have a number of benefits and can be used to:construct optimal operational strategies and to optimally manage resources projectsgain insight into optimal strategies under different market conditions and project settings compare expected project values under different project settings and to select the setting that provides best sustainability outcomes.This extended abstract demonstrates the use and benefits of the dynamic decision support tools using a synthetic case study of a gold mine.CITATION:Chen, W, Langrené, N, Tarnopolskaya, T, Zhu, Z and Cooksey, M, 2016. Dynamic decisions under uncertainty – a case study on a gold mine, in Proceedings Life-of-Mine 2016 Conference, pp 20–23 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 28, 2016

Although the flotation cell has been under continuous development over the past 80 years, an understanding of the precise roles of a cell in produc- ing the flotation result had evolved slowly. In fact, detailed studies of cell dynamics began only in the 1940s when flotation practice had almost reached the half-century mark. The earliest generalizations related cell capacity to power intensity (hp/vol- ume) (Rose, 1946), and specific operating features such as aeration and power ' consumption to impeller submergence and operating speed (Read, 1933). In the 1950s hydrodynamic characterization of cells through power coefficients and air flow numbers began (Arbiter and Harris, 1961) and has continued to the present, with increasing industrial use of these concepts (Degner, 1982; Degner and Treweek, 1976). Liquid flow measurements in Wemco cells (Degner, 1982) made liquid flow numbers and turnover frequencies available for more complete under- standing of cell dynamics. The present overview of flotation technology is a critique of cell design. The cell process represents the interactions between cell dynam- ics, cell geometry, and ores, with the latter prepared for that interaction through size reduction and reagent treatment. While previous invest- igations of flotation cells have accepted all cell designs uncrit- ically, the present study considers the physical process components that an effective cell must provide, and then compares a limited number of

Jan 1, 1984

Successful management is ultimately measured by return on shareholders' funds. This is the inescapable and inexorable discipline that ultimately rules every investment. Shareholders today are predominantly, and increasingly, the superannuation funds and insurance funds of almost all of us. We have already reached the situation in Australian investment history in which the best interests of employees can be very directly identified with the best interests of the owners of the capital invested.

Jan 1, 1992

The Electricity Commission of New South Wales is the largest single user of coal in the State, burning some 8.5 million tonnes during 1972-73. This coal is converted in power stations into electrical energy which is then distributed throughout the State and supplies the electricity requirements of 99% of users in New South Wales. Barring any major change in energy consumption growth, or change in the current mode of power generation, the consumption of coal by the Commission is estimated to have a doubling period of from 10 to 14 years. Coal is used to generate up to 87% of the electrical energy sold, the balance being obtained from hydro gen- eration, mainly in the Snowy Mountains, and, to a much smaller extent, from diesel generation at Broken Hill. A very large proportion of this coal is consumed in pulverised fuel boilers in the Commission's power stations, located mainly on the various coalfields of New South Wales. Coal supplies are drawn from a large number of mines, some owned or controlled by the Commission, others being owned by public companies. The coals used, originate from at least ten different seams located in the northern, western and southern coalfields of New South Wales, and therefore have a wide variety of properties and characteristics. To ensure an adequate fuel supply well into the future, the Commission is continuously engaged in coal prospecting in various areas. Bore data is used in assessing coal reserves and is also the basis of economic studies for their possible future exploitation. The numerous coal cores obtained during drilling operations are carefully tested and analysed in order to assess their suitability for power generation purposes, and to provide data for the design and operation of boiler plant using these coals. In existing power stations coal deliveries are systematically sampled and tested for quality control, for pay- ment of purchases based upon certain quality parameters and to check for any possible plant operating or main- tenance problems that might arise from the use of the particular coals. Almost all the properties of coal that may be necessary in the Commission's work are obtained using standard testing procedures carried out by the Commission's chemists, in laboratories located at the various power stations or at its Central Laboratories in Pyrmont. Where specialised analysis or testing is required, this is ordinarily undertaken on a commercial basis by outside bodies, expert in the particular field. The significance of the various properties of the coal for use in p.f. boilers is outlined and related to their proper application to boiler plant design and to plant operation.

Jan 1, 1975

The restructuring of the minerals industry has created new challenges for the design and delivery of professional development, and difficult decisions for potential participants. New technologies offer some new methods of delivery, but fall short in providing all of the benefits of face-to-face participation. This paper is intended to be a catalyst for discussion of the issues involved in delivery and participation in cost-effective, relevant and timely professional development.

Jan 1, 2000

By Jianmin H, Shuqin L

This paper analyses problems associated with cement based technique in metal mines, and provides a new mining technique of packing the tailing sand and water into solidified material. In the new technique, the cementing agent is a solidifying material containing a high percentage of water and tailing sand. The sand and water solidify into the packed body at the same time. The slurry of the packed body varies widely in concentration and suitability for different mining conditions. It consists of two liquid materials, each composed of a cementing agent, tailing sand and water. The thick liquids are transported to the packing place at the same time. Their pumping property is good; they do not solidify or block up the pipe during transportation. At the packing place, the two liquids are evenly mixed.The mixed liquid flattens out well and its solidifying speed is so fast that it solidifies into a packed body within a very short period of time. The compressed strength of the packed body can reach 1.2-5MPa in one day, which satisfies the requirements of different mining conditions. By using the new mining technique, all the tailing sand can be used again in the packed body and it is low in cost and investment. The mechanisation is easy and thus the working efficiency is increased and the use of labour decreased. Contamination problems caused by i. Dr & Prof. Beijing Graduate School, China University of Mining Science and Technology,Beijing,China 2 Northern .Jiaotong University, Beijing,China 3. Beijing Graduate School, China University of Mining, Science and Technology

Jan 1, 1992

By Braes J. R, Neale J. R

The New Broken Hill Consolidated Limited (NBHC) mine currently produces 1.42 million tonnes of silver, lead and zinc ore annually. All of this ore is treated by the NBHC milling ccx[plex. This paper describes the crushing, grinding, flotation and filtration circuits used in the treatment of this ore and lists the major items of equignent used in these circuits. Metallurgical results, manning levels and consumption rates of reagents and grinding media are shown.

Jan 1, 1983

Large scale open pit mining at Ok Tedi and Misima are described in this paper. The paper also presents the socio-political problems encountered in the construction, operation and waste disposal of high technology, high output gold and copper mines in very remote and rugged terrains. Despite these handicaps, mining companies from all over the world have established top class mining facilities including huge open pits, underground mines and mineral processing plants to extract rich mineral deposits of gold, silver and copper.Papua New Guinea is the sixth largest gold and copper producer in the world. New projects likely to come on stream before the end of this century would make it the world's third largest gold producer. The mining industry is the largest organised industry in the country employing over 10 000 persons and investing over US $1000 million on these mega projects per year.

Jan 1, 1992

By Radenkovic C, Ivkovic S, Minic I

The model, already tested and applied, enables a highly efficaceous solution of the problem of issuing instructions for interested services on the basis of known contents of in- dividual stages of mine mechanization repair and known time intervals between repairs for specific machines and total mechanization. Application of the model provides work orders for all types of repairs for specific machines or systems, and orders for the commercial department regarding spare parts Supply.

Jan 1, 1977

By H Rose, T J. Sheer, M Dumka

Whenever rock is tipped from above, severe eruptions of airborne dust occur into the airways connected to tipping stations of rock passes (ore and waste) on the lower levels of a gold mine in the North West Province of South Africa. An investigation was undertaken to understand the nature of the physical phenomenon, in order to propose possible solutions. Accordingly, measurements were taken underground, involving the simultaneous logging at two levels of the transient pressures produced in the orepass by tipping from various levels. Two portable data loggers with associated transducers were custom-built for this purpose. Measurements were taken during a tipping program in which rock quantities and levels were controlled. Pressure pulses that are generated by the falling rock drive the airborne-dust eruptions. When tipping from a specified level, recorded pressure pulse waveforms were found to be repeatable on any given level, irrespective of the amount of rock falling, but measurements were conspicuously different on different levels. It was recognised that a pressure pulse is generated as the falling rock passes through the constricted region û a relatively narrow neck û at each tipping station. In passing through the constricted areas the mass of falling rock acts as a æleaky piston in a cylinderÆ and compresses the length of the air column in the orepass below that level. Once the rock has passed through the constriction, the pressure is released and this behaviour causes a regular train of pressure pulses that are separated by the time taken for the rock to move from one level to the next. Based on this physical understanding of the dust eruptions, a computational model has been developed that can reproduce all the main features of the measured phenomena. The model has been verified adequately against the measurements and can now form the basis for simulating a range of possible engineering solutions.

Jan 1, 2005

By Mernagh T, Large R. R, Ryan C. G, Huston D. L

The Tennant Creek goldfield is one of the largest gold producing districts in Australia, and major deposits, including Gecko, Juno, Orlando, Peko, Warrego, Nobles Nob, Golden Forty, Argo, TC 8 and White Devil have produced more than four million ounces of gold over the past two decades. Gold-copper-bismuth mineralisation at Tennant Creek occurs in lenticular, ellipsoidal or pipe-like bodies of magnetite-hematite ironstones which are hosted in turbiditic sedimentary rocks of Proterozoic age (Large, 1975; Wedekind, Large and Williams, 1989; Le Messurier, Williams and Blake, 1990; Morrison, Donnellan and Hussey, 1992).

Jan 1, 1994

Evaluation of tyre chains has been taking place at King Island Scheelite for several years. Results indicate that tyre life has been greatly improved in all cases. Good cost sav- ings are resulting on small loaders. The worth of chains is difficult to prove on larger loaders under the conditions at King Island Scheelite. However, the dramatic decrease in the number of punctures has convinced the Company that chains are worthwhile on some larger loaders.

Jan 1, 1977

By Nixon J

Open pit mining began in 1978 at the Woodlawn base metals deposit. For its ten years as an open pit the mine was financially unsuccessful as a combined result of difficult metallurgy and industrial unrest. In 1985 CRA bought out two American joint venturers with a view to going underground and a prerequisite to expending capital on developing an underground operation was to improve the industrial climate, work practices and mining methods.Following feasibility work, continuous production from the underground mine began in 1986 using mechanised cut and fill methods and a workforce trained under a multiskilling program. Men with no previous underground experience were trained by supervisors with backgrounds as miners to undertake all the work that is required with increases in skill levels being rewarded with increases in pay.

Jan 1, 1992

After reviewing the many excellent papers being delivered here, it is apparent that we are all concerned with the same general subjects of commodity agreements, international cartels, and anti-trust problems as well as the impact of governments on resource management and minerals pricing. Accordingly, as a relative newcomer to the mining business, I feel that my most meaningful contribution can be made by taking a more philosophical look at the future of our system of democratic capitalism. Unfortunately, governments the world over seem intent on jeopardizing the high standards of living resulting from the Industrial Revolution and furthered by the emergence of its by-product, capitalism. This tendency is particularly germane to the basic natural resource field, since government regulations, controls, and intervention in mining far exceed even the constraints normally imposed on hard-pressed consumer-oriented businesses. Increasingly, many governments seem to feel that natural resources no longer belong to private individuals but rather are the property of the state to be developed in a regulated manner and usually in a way directly contrary to the functioning of the free market system.

Jan 1, 1978

A number of mines in Australia have experienced premature detonations caused by bulk explosives reacting with the rock type being blasted. Premature detonations are extremely high risk events as they are unplanned, occurring at any place, at any time, potentially resulting in high loss (personnel and equipment). Many Australian mines have also experienced spontaneous combustion where spilt explosive reacts vigorously with the rock type. Premature detonation in these cases does not occur due to the lack of confinement and the volume of explosive present, but these reactions could impinge on the surface initiation system and provide an early warning of future premature detonations. The explosive ground reactivity phenomena is not restricted to Australia with similar incidents being reported in North and South America, South Africa, China and South East Asia. All reported incidents have two common denominators, being the presence of sulphide rock types and nitrate based explosives. Both premature detonation and spontaneous combustion result from the same series of reactions of partially weathered sulphides that ultimately result in the violent decomposition of the ammonium nitrate based explosive. A number of relatively easily observable indicators can be used to assess a particular minesiteÆs potential for explosive ground reactivity. The presence of two or more of these indicators means that minesite personnel should contact their explosives manufacturer for assistance in determining if a problem exists and if so then developing strategies to overcome the situation. The paper describes the indicators as well as discussing, via a case study, the holistic approach required to efficiently develop a relevant æSafe and Efficient Blasting ProcedureÆ to deal with explosive ground reactivity problems.

Jan 1, 1999

By D MacKay, W J. Bruckard

One of the mining worldÆs greatest challenges is to effectively use consumables (ie reagents and grinding media) to maximise metallurgical response, while minimising operating costs. It is anticipated that this paper will provide a logical frame work within which this can be achieved. The current study, at PerilyaÆs Broken Hill concentrator in the lead primary grinding/roughing circuits, examines the dependency of collector adsorption on Eh. The data demonstrates clearly that under the right grinding chemistry the addition of a xanthate collector during grinding can improve galena flotation. Further, operating the ball mill under the desired grinding chemistry regime leads to significant reductions in collector consumption whilst maintaining the metallurgical benefit.

Jan 1, 2008