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By M P. Sandy

Some Western Australian underground mines are challenged by very high stress gradients. This environment frequently results in poor induced ground conditions and damaging seismic activity. In some cases, rockbursting or squeezing ground has been observed as shallow as 250 m below surface. Very few mines operating at depths greater than 500 m experience no stress-related issues. As a general result of this difficult environment, there are a growing number of mines that are now challenged or have been closed by induced geotechnical problems. Often, the up-front savings or perceived advantage of an inappropriate mine plan may be entirely lost to the real cost of managing the hazards, or a write-down of reserves resulting from access difficulties will diminish the economic position of the mine. From an engineering perspective, it is best if stress-related hazards can be proactively minimised, because reactive measures offer less improvement in risk exposure. In this paper, some examples of sequencing techniques for managing difficult environments are contrasted with examples from mines where developing hazards have adversely affected production or the economic viability of the project.

Jan 1, 2003

By B Maybee

In underground mine planning, many potentially value-eroding decisions are made due to a lack of time and proper evaluation practices. The information required for mine planning decisions goes beyond external sources of uncertainty that are recognised by typical evaluation techniques used in the mining industry, to include technical factors (eg mine development layout) and the ability of a mineral extraction project to achieve its anticipated production levels. Due to the individual characteristics that define underground mining projects, each will exhibit a different risk profile, and thus advanced optimisation and evaluation techniques are required to capture this information.As underground mine planning tools become more sophisticated, mine planners have the capacity to investigate numerous mine sequencing options to identify the best strategy for a given project, creating higher value for shareholders. This paper describes a risk-based evaluation methodology (RbEM) that accounts for financial and technical risk in the evaluation of underground mining projects. While the use of the RbEM has been described in previous works, no benchmarking of the benefits that can be realised from a change in those decisions that are made early in the process has been undertaken. To show the benefits that can be achieved from using the RbEM, this paper updates a case study to which the RbEM was applied, and takes a retrospective look at whether additional value would have been gained by following the strategic recommendation of the RbEM versus a typical optimisation exercise that aims to maximise the net present value.CITATION:Maybee, B, 2012. Can a risk-based evaluation provide a more valuable mine design?, in Proceedings Project Evaluation 2012 , pp 53-58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Solid EnergyÆs project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholdersÆ risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

South Crofty's ventilation network is large and complex. Of the total exhaust air quantity 40% enters the mine by leakage routes through old workings, this air carries high concentrations of radon gas and results in the mine becoming a classified work place under the Ionising Radiation Regulations 1985. Improvements in the control of the ventilating air and dilution by increased air quantity have reduced the average contamination to aelow-0.2 WL. The major part of the radon originates from ground water inflows and from concentrations of radium within the mine with direct emanation from rock surfaces being negligible. Of 600 kBgs-1 total radon leaving the mine 93% cannot be accounted for from known and accessible sources.

Jan 1, 1988

The Knelson Concentrator is a centrifugal gold concentrator developed in Canada, which utilises the combination of high gravitational ("G") forces and a unique fluidising action to efficiently recover free gold particles from minus 6 mm to fine micron gold in both alluvial and hardrock applications.Operating parameters including water requirements, fluidising pressures and feed rates are given, as well as an indication of their various effects on gold recovery.Results include a Colorado School of Mines Research Institute (CSMRI) report comparing the Knelson concentrator with various other gravity concentrators.

Jan 1, 1984

The Queensland Magnesia Project is based on a unique cryptocrystalline nodular magnesite orebody which required an innovative approach to process design in order to economically exploit the characteristics of the ore and produce a marketable range of high quality refractory magnesias for a declining world market. High quality natural refractory magnesia must have an MgO content in excess of 95 per cent with a very strictly controlled content and ratio of residual impurities such as calcium, silica and iron. The natural products compete with magnesias derived by chemical extraction from sea water or brines which exhibit very high purity but often lack other characteristics which are of value to refractory brick makers. Since start up in late-1991 QMAG has achieved a remarkable market penetration for both its deadburned and electrofused products with sales for the 1993/94 financial year representing 92 per cent of deadburned capacity and 138 per cent of original electrofused capacity respectively, all at a time when the world steel industry has been in recession.

Jan 1, 1995

By Hatherly P, Dunn P

There are- several in-seam coal research projects currently under investigation by the Cooperative Research Centre for Mining Technology and Equipment (CMTE). The overall aim of the projects is to produce new technologies to enhance safety and the efficiency of in-seam gas drainage drilling. Results from high pressure waterjet rotary drilling trials indicate that by applying high pressure water to a rotary drill bit, the hole can be drilled to follow the planned trajectory very closely. Steerable drill bits for drilling long holes (>1 km) have been produced and trialed. A flexible high speed drilling system provides a capacity for rapid in-seam drilling, particularly suited to cross panel drainage. Geophysical tools are being developed to provide a geological steering capability and a better understanding of potential gas outbursts zones.

Jan 1, 1998

By Beeforth C. G

The use of Non-Linear Programming to obtain improved schedules of future activity in two specific cases of mining and treatment of minerals is described. The two cases were (i) reclamation of gold, uranium and sulphur from old surface tailings dams and, (ii) underground mining of gold. The method used an augmented Lagrangian device to reduce a constrained Non-Linear Programme to a sequence of unconstrained hill- climbing procedures. The main advantages of the method appear to be those of (a)flexibility of modelling of industrial characteristics and constraints and, (b) reasonably modest computation times.

Jan 1, 1977

By D Matthews

With a brownfield project comes control integration challenges. The Khumani Iron Ore Mine’s second phase expansion posed a number of challenges as there was substantial brownfields work conducted. The fi rst phase was the compilation of the modifi ed process functional specifications for the project. The second phase was an audit on all of the operational sequences; this included a comparison between the SCADA sequences, sequential starts analysed from the historian data (with the potential for improvements made by the plant operators in manual start-ups) and what was proposed in the process functional specification. Differences, inclusions and missing equipment were highlighted. The third phase was the comparison of interlocking and control in the PLC with the updated process functional specification; this was done during the coding process. Running parallel to the three phases was the SCADA integration; tie-ins to the existing SCADA were conducted on maintenance days and shutdowns, in many instances with ‘dummy’ equipment to get the operational staff accustomed to the new interface. This paper details each of the phases, the success of this methodology as well as the pitfalls experienced.

Jul 11, 2011

TUNGSTEN occupies an outstanding position amongst metals to-day, for by its use modern manufacturing methods have received a wonderful impetus. The important part played by tungsten in the recent war is not generally recognized. It was tungsten steel, in the shape of highspeed tools, that kept our soldiers supplied with munitions of war at more than one critical period. Tungsten added the necessary hardness and durability to various metals which were indispensable for carrying the war to a successful conclusion. In the words of...

Jan 1, 1921

AXTAT is a computerised system developed by the Western Australian Department of Minerals and Energy in conjunction with the local mining industry for recording and retrieving information about fatalities and work related injuries. Since its inception, the system has gained considerable recognition by consistently demonstrating its usefulness as a tool, not only to the Department, but for the entire industry nationwide. AXTAT has played an important role in the continuous improvement process in management of occupational health and safety in the Western Australian mining industry with gains in both human and financial terms, by regularly providing timely and accurate statistical feedback on fatalities and lost time injuries to industry.

Jan 1, 1996

By G K. Robinson

The existence of bias in samples taken by cross-stream sample cutters has been investigated using three-dimensional discrete element method (DEM) modelling. Detailed quantitative information on overall extraction ratios, size specific extraction ratios, missed and extra sample components can be made by comparing a reference sample to the actual sample. A key advantage of using this modelling approach over physical experimentation is that the reference sample can be measured on precisely the same portion of the stream of material as the actual sample, thereby allowing the elimination of a significant fraction of the variability and allowing statistically significant results to be obtained using many fewer replicates. Quantitative analysis of results broadly supports the commonly-used rule that the cutter aperture should be at least three times the nominal top-size of the material being sampled, but does not support the commonly-used rule requiring increase in cutter aperture if the cutter speed exceeds 0.6 m/s. Sampler performance can be understood in terms of the balance of forces in the congested region of material formed by the slowing of the particle stream due to collisional interactions around the mouth of the cutter.

Jan 1, 2008

When a thin film of volatile matter is deposited under vacuum on a polished coal surface, and the coated surface is examined microscopically in piano--polarized reflected light, colour changes are observed characteristic of the various macerals present. The colour changes appear to be mainly due to interference between light reflected at the upper surface of the film and at the film/coal interface. A variety of source materials for the volatile matter required have been tested, including powdered bituminous coal, coal tars, boron oxide, and certain resins.

Jan 1, 1969

By Chia A. H

This paper presents an overview of the development and operation of the PT Adaro Indonesia coal mining project. This operation is an initial two million tonne per annum mine, located in South Kalimantan, Indonesia.The paper places emphasis on some of the more unique infrastructure development and operational challenges that exist in such a remote location environment.A brief summary is also given of the Indonesian coal industry, its direction and position as a significant coal producing competitor for Australia.

Jan 1, 1992

Syferfontein Colliery, part of the Sasol group of companies which specialises in the field of petro-chemical production, was established in 1990. The mine is situated about 150 km east of Johannesburg, South Africa. Two coal seams are mined, utilising two 75 m3 draglines, shovels and a fleet of 177 ton rear dump trucks. The mine will reach its full production capacity of seven million tonnes per annum in 1992. During the planning period, prior to the establishment of the mine, management were confronted with the unstable socio-political environment in South Africa which could jeopardise the eventual success of the mine. They consequently conducted a strategic planning exercise to determine guidelines for mine planning to improve the chances of success in this unstable third world environment.The strategic guidelines formed the basis for specific actions taken during the planning and commissioning of the mine. Specific actions were taken in the field of operating cost, labour relations, working environment, logistics and the general environment. First results indicate that these actions have played a major role in the success of the mine to-date. This process can be utilised by others facing similar or even totally different uncertainties.

Jan 1, 1992

By Gomm SA

The Mount Tom Price Concentrator, which contains a heavy medium cyclone plant for beneficiation of the -6+0.5mm fraction of low grade iron ore, is described. Testwork was carried out on an opportune basis over a period exceeding twelve months, to evaluate the separation performance of the heavy medium cyclones. Plastic density tracers were used and ore samples were taken and analysed. The effect of operating medium specific gravity (S.G.) on the separation parameters, the iron grade of the sinks product, and the mass and iron recoveries were investigated. Also examined were the differences in perform- ance between particles of different size. The implications of the findings for plant oper- ation are discussed.

Jan 1, 1987

The underground coal mining industry in Australia has, in the last 30 years, undergone a revolution in production methods, techniques and results probably unparalleled elsewhere in the world. It can lay claim not only to leading the fight against pneumoconiosis and setting high safety standards generally, but has at the same time recorded comparatively high rates of increase in output per man shift. The latter has been achieved as a result of progressively matching the latest in production and underground transportation equipment with significant changes in seam development and extraction techniques and the introduction of stress-relieving extraction methods unique to the world scene. However, the seam recovery factor is still too low. Apart from the overall objectives of maximising production and commercial returns with the greatest safety, there must be a concentration towards maximising seam recovery, particularly in high seams. The search will continue for systems which are more completely continuous mining operations than the present stop-go operations, with longwall having long term potential in this regard, but as yet not sufficiently developed to engender confidence for its more general use. Techniques developed in the last 10 years make the development and extraction of deeper seams, perhaps to 2500 feet or more, feasible with continuous miners as well as longwall. The future will see a greater use of continuous shifts at mines, larger mines with more sophisticated management organisation, extensible belts at the face, better systems of immediate roof support at the face, remote operation of face equipment, greater use of roof bolts and the longer roof cables. With commercial confidence in coal mining now virtually assured to at least the turn of the century, the stage is set for heavy capital development in the industry which will undoubtedly include major research into the whole area of mining methods and equipment. We must ensure that our contribution to such research equitably matches other coal producing countries.

Jan 1, 1975

By Swift D. G

For some time the Electricity Trust of South Australia (ETSA) has been investigating the application of new mining methods and equipment to minimise the cost impact of the steadily increasing depth of mining brought about by the 20¦ dip of the coal seams at the Leigh Creek Coalfield. Exhaustive examination of all suitable mining systems showed that highly mechanised systems involving belt conveyors displayed no eco- nomic or operational advantages over shovel and truck methods. However, the configuration of the Leigh Creek coalfield allows for two quite different approaches to mining by shovel and truck. The current strip mining method involves removing overburden from the highwall in 60 m to 200 m wide strips to progressively expose the coal down dip, and requires all waste to be hauled to the surface. The alternative ter- race haulback method involves opening a boxcut to full depth at one end of the coalfield, then mining the full section along strike and placing the spoil in the mined out area. On a strictly economic basis, the latter is clearly advantageous, but the former has significant less tangible advantages. In deciding between the two methods ETSA is faced with the need to examine the applicability of each method under a wide range of possible future demands on the coalfield, and to assess the importance of many intangible factors.

Jan 1, 1989

The design and construction of a 2.5 million tonne per annum ship unloading system at the PWCS export coal terminal in Newcastle, NSW, has further increased the flexibility and sophistication of Australia's largest coal export facility. The system comprises a new unloading wharf serviced by a self unloading vessel, conveyor stream and multi compartment ground level storage shed. Coal is reclaimed from this shed by the largest portal scraper ever installed under cover. The system also provides additional flexibility by receiving coal from the existing PWCS road receival to improve scheduling. The PWCS can now simultaneously handle 11 coal types and receive from rail, road and sea at almost 15000 tonnes per hour.

Jan 1, 1987

By Poplawski R. F

A 32-channel PSS seismic monitoring system was commissioned at Mt Charlotte mine in 1994, and at the time it was the first such system in Australian mines. The system continuously observes the occurrence of seismic events and locates them accurately in space and time. Mt Charlotte has a history of seismicity, with the largest event in recent years of Richter magnitude 4.3. The decision to 'go seismic' was made despite some uncertainty regarding its potential usefulness. However after the first year of operation, benefits have been realised in terms of less production downtime, improved mine safety and mine planning, and better understanding of the nature of Mt Charlotte seismicity. The seismic network has performed well, recording 550 events in its first year of operation to a location accuracy averaging ¦ 12 metres. System reliability is excellent, with very little downtime, and acceptable operation and maintenance times and costs. Observations show major distinct changes in the rate of mining induced seismicity over time periods of weeks and months. Events have tended to cluster in specific mine areas and on particular faults and structures. Case examples of pillar preconditioning, breakout around an orepass, and a major stope rockburst, illustrate the role of seismic data and the benefits it brings to safety, productivity and planning.

Jan 1, 1995