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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By C E. J de Ronde, J L. Mauk

Sulfide chimney samples collected during the 1998 - 1999 R/V Atlantis û DSV Alvin 3 - 30 research cruise have been examined and classified into four types, based on common characteristics. Chimney morphology is the most important characteristic and resulted in the following groups: 1. flutes, 2. cones, 3. wide-flats, and 4. beehives. Other characteristics resulted in the classification of subgroups within the flute, cone and wide-flat groups. The combination of characteristics, including; the presence of an orifice, internal chimney fabrics, wall thickness, extent of weathering, and the presence of Alvinella worm casts, enable evolutionary trends between the different chimneys types to be established. These trends indicate that with time, flutes evolve from immature zoned chimneys with a central orifice and smooth thin-walls, into cone chimneys with thick walls and massive fabrics which have their orifices infilled by massive sulfides, and a rough exterior. Repeated mineralisation within, cones may result in the formation of wide-flat chimneys. Beehive chimneys can form at any time during chimney growth.

Jan 1, 2003

By G J. Corbett, T M. Leach

Although hosted within an Ordovician magmatic arc, the Peak Hill high sulphidation system displays features typical of youngerPacific Rim high sulphidation epithermal gold deposits. Regional NW trending transfer structures are inferred to localise the magmatic source at their intersection of the NS trending arc. Fluids have migrated from the magmatic source along NW structures and thence exploited permeable horizons, which have become silicified. Alteration displays typical zonation from silicification through assemblages characterised by alunite, pyrophyllite and kaolinite and is followed by breccia/fracture controlled sulphide and gold deposition. Sinistral rotation on the NS arc has dilated NW trending fractures to produce the WNW to EW dilational fractures which host the higher grade ore. Mineral assemblages are typical of formation distal to the magmatic source in an epithermal environment. The combination of alteration and mineralisation zonation with structure provide fluid vectors which target a magmatic source to the SE of Peak Hill.

Jan 1, 1995

By J K. Wright

In recent years the production of steel from directly reduced iron ore pellets has expanded rapidly. However, continued growth will depend on an adequate supply of suitable raw materials for the various commercial gaseous and solid reductant processes now in operation. Although at present Australia does not produce pellets primarily for direct reduction, there is an increasing awareness of Australia's potential role as a supplier of high grade ores for export and/or domestic use. The properties and quality requirements of iron ore pellets made specifically for direct reduction (DR) are reviewed and the laboratory techniques and test methods used at the CSIRO Division of Process Technology for the evaluation of potential DR feedstocks are described. At the present time most of the evaluation tests for DR pellets are extensions of those designed for existing blast furnace (BF) burdens. In the case of some physical parameters such as cold compression strength, abrasion index and cold strength after reduction this extension is quite satisfactory. In the measurement of parameters such as reducibility, swelling and sticking tendency, however, it is necessary to develop meaningful standardized tests so that ores and pellets can be ranked for DR performance. To do this, data from the laboratory tests and from operating plants must be correlated.

Jan 1, 1980

By Hellsten KJ, Butt CRM

Major Francis Hamilton Buchanan coined the term `laterite' (Latin; brick-rock) in 1807 for the red earths used for building blocks in southern India. Although these earths were actually weathered basalts, the term is now applied to weathering profiles developed upon a wide range of bedrocks. The Ni-laterites are a special class within the broad laterite family.

Jan 1, 1996

Cyclone Process for Heavy Metals Decontamination of Sediments

Sep 13, 2010

The Small Pebble Process for Reducing Ball and Power Consumption in Secondary Grinding Ball mills are used widely for secondary grinding. A mixture of ball sizes can be used to optimise grinding efficiency, but the use of balls smaller than about 30 mm in diameter is not normally viable, particularly when alloy steel is required. Preliminary testing of the grinding efficiency of various combinations of 40 mm steel balls and crushed stone in the size range 7 to 25 mm was carried out in a 300 mm diameter mill, which has accurate power measurement.The primary interest was to assess the potential benefit of adding small pebbles (from a primary circuit crusher or mill) to a secondary ball mill, to reduce ball consumption and to improve grinding efficiency. The optimum proportion of pebbles was found to be about 25 per cent by volume. This mixture produced about the same amount of fines as balls alone, but with lower power consumption, due to the lower density of the pebbles. The net result was a 12 per cent saving in power and a 25 per cent saving in ball consumption. The production of fines was partly due to pebble wear. The use of portions of 15 mm balls, (ceramic and steel), was also tested for comparison. A few batch pilot-scale tests were conducted in a 1.2 m diameter, 0.31 m long mill to test the viability of the pebbles at a larger scale. The pilot-scale tests confirmed the reduction in power and that the rate of production of fines was the same as that obtained with balls. The same residence time was used and this implies that pebbles can be added to an existing full-scale ball mill, with no loss in capacity. Samples of secondary mill feed and pebbles were obtained from a copper mine and the steady-state consumption of pebbles was determined by locked-cycle laboratory-scale tests. These tests demonstrated that mill power could be reduced by up 13 per cent and that the consumption of 40 mm balls could be reduced by up to 38 per cent, while maintaining the same throughput and product size. The rate of pebble addition was about 4 per cent of the primary circuit feed rate. Application has been made for patent protection.

Sep 13, 2010

By P M. Black, T Itaya

Arc-type volcanic activity has been a major feature of the late Cenozoic geological evolution of the Pacific-Australian plate boundary in the northernNew Zealand region. The time/space distribution patterns of arc-type rocks reflect changes in the nature of the plate boundary as it has evolved. Inception of volcanism began in the north during earliest Miocene times (26 Ma) following ophiolite emplacement and during the next 10 Ma developed into a volcanic arc segment extending south to the present position of the central North Island. The northern part of the arc became extinct about 15Ma ago, but activity continued in the central (Coromandel) part of the arc until about 5 Ma ago. In late Pliocene and Quaternary times volcanic activity has become concentrated in a northeast trending zone which is collinear with the Tonga-Kermadec Arc.   These time/space patterns can be interpreted in two ways. Firstly, if relative plate motion was essentially transform in the region prior to 26 Ma then a small change in the relative plate vectors may have initiated subduction and the associated volcanism. Southward evolution of the arc can then be seen as the straightening and extension of a single arc. Alternatively, the distribution of volcanic rocks can be interpreted as the capture of a relatively short lived arc by southward migration of the dominant Tonga-Kermadec subduction system.

Jan 1, 1995

By P Thwaites

The mining industry uses many types of mineral and metallurgical plants to produce saleable product from ore mined. Plant design history has left current operations with a mixture of manual operation and various forms of automated process controls. Consequently, we typically see high-variability in the continuous operations together with a shortfall in the attainment of full capacity or higher utilisation of consumables.At a level of best practice, ‘operational performance excellence’ focuses on process control, using automation and control systems to deliver process optimisation. This more sophisticated delivery is a great deal more difficult than the first stage of equipment selection/installation. It includes the appropriate selection of the right instrumentation and control system, key process knowledge, individuals with a solid control engineering background/experience and the essential backing/support of the operations management team together leading to higher-value delivery. Robust solutions can be realised, considerably minimising process variation, thus leading to process optimisation. This approach results in an easier, efficient and safer process while providing considerable returns for the plant owners.How variable are your processes, and do you maintain optimised process performance with dedicated resources, modern instrumentation, ‘best practice’ control systems and performance monitoring tools? In this paper, these questions and their possible answers are discussed.I say we can do much more and be ‘more efficient’ in our efforts to remain competitive. This area remains a major opportunity for improved efficiency, minimising tailings losses and other milling costs.CITATION:Thwaites, P, 2014. Manual control, process automation or operational performance excellence – what is the difference?, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 13–40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

I would take this, opportunity of thanking you for the high honour you have conferred on me in electing me to the responsible position of President. You may rest assured I will use my best endeavours to promote the interests of the Institute in every way that lies in my power. In reviewing the work of the past year, it is a matter for congratulation to find the Institute in a position at once so healthy and robust, and that notwithstanding the acute depression which has prevailed in the mining industry.Owing to deaths or departures from the colony, the names of six members have disappeared from the roll of membership, but you will be pleaed to learn that several new members have been elected, the register now, showing 56 Members, 25Associates and 2 Students. A complete record of the papers read and the discussions that took place will be found embodied in the splendid volume of Transactions which has just been issued, and which I am sure will be welcomed by mining engineers in all parts of the world.

Jan 1, 1901

The New Zealand Steel Ironsand Slurry Pipeline was successfully commissioned in February 1986. The project includes 18 km of high pressure, polyurethane lined buried pipe. McConnell Dowell Constructors Limited has developed a coupling which has allowed this pipeline to be fully welded. The design and development of the coupling and its application on this project is discussed.

Jan 1, 1986

Study on the Interaction Mechanism of Flotation Reagents and Rare-Earths-Bearing Phosphate Ore

Sep 13, 2010

By R Whittering, C Greet

High chrome grinding media has been used in the mining industry for quite some time, as it often proves economical on a wear basis. However, it is unusual for an operation to change to high chrome solely due to its metallurgical benefits. KagaraÆs Mount Garnet operation made the change from forged steel to high chrome media after laboratory testwork indicated that copper grades and recoveries would improve. The outcome was remarkable with positive changes in pulp chemistry throughout the circuit accompanied by marked improvements in copper, lead and zinc grades and recoveries. Reagent dosage rates were reduced, often by more than half, and the grinding media wear rate dropped to less than a third of the wear rate of the forged steel media. The economic analysis showed that out of the total increase of revenue and savings from metallurgical improvements and reagent and media consumption reductions the metallurgical improvements made up approximately 73 per cent, the reduced reagents saved 25 per cent and the savings through reduced media wear contributing by just over one per cent. This indicates that the popular view of high chrome media only being trialled in the plant for wear economics is outdated and the focus of operations should be shifted to using high chrome media for the metallurgical benefits.

Jan 1, 2006

This paper sets out to discuss how alluvials - particularly mineral sands, tin and gold have adjusted to meet the problems of lower grade and more difficult physical political and economic conditions. The mineral sands industry seems to have adapted satisfactorily but less so with tin and gold.

Jan 1, 1996

By J F. C L Costa, J C. Koppe, C Diedrich

Currently mineral resources evaluation is firstly expressed in terms of volume. Next the resources are transformed into tonnes by using an average bulk density applied to the whole deposit or, in some other circumstances, various different densities to distinct geological domains. Previous work in uranium, copper and nickel deposits used linear correlation between grades and bulk density to derive the density. Geophysics methods are also another good way to obtain density indirectly.These approaches do not take into account that two samples with the same grade but with different bulk densities can characterise different sample supports, leading to severe bias in grade and tonne estimates. It is important that the systematic measurements of bulk density are included into the estimation process, particularly when density is not correlated with the grades. Additionally, the extra time and costs involved in obtaining the bulk density data have made the mining industry disregard it.This study reports the impact in resource estimates by using a methodology that includes the bulk density variability. It involves the determination of a variability model for the bulk density and another model for the composite that was weighted by density as well as by its length. Next, these variables are estimated by kriging and the final grade estimates are obtained. The tonnages are obtained with the bulk density estimates. The conventional methodology was also applied and both estimates are compared to the reconciliation data from a major copper deposit. The results show a significant difference between the tonnage and grade estimates obtained from these two methodologies.The results show that considering density variability when compositing leads to a more accurate methodology resulting in better grade and tonnage estimates locally and globally.

Sep 26, 2011

By P J. Minehan

The investigation of the potential of the Webb/Baynes block of the Buller coalfield for anode carbon manufacture has generated much information on the physical beneficiation characteristics of the Buller coals in general. A further 36 drill holes of the block in question and several other samples have been analysed by sink/float analysis, either at a single density or over a range of densities. In addition, many samples have been beneficiated on a laboratory shaking table or by flotation. The ash content can be reduced by a variable factor. The reduction factor of between two and four by sink/float analysts is understandably less for tabling where separation is not perfect. All Buller coals behave similarly, there being greater ash reduction factors for higher ash coals.

Jan 1, 1983

By R A. Pax, B Cornish

Increasing the throughput of the MMG Century operation by over 25% from past practice to preserve cash flow close to the end of life of mine has revealed new throughput and load dynamic instabilities in the SAG mill causing significant time averaged loss of production. A twelve microphone array around the SAG mill (Pax, 2014) using the non-contact acoustic measurement methodology (Pax, 2011, 2012) has been used to diagnose the new dynamics. Dynamic acoustic noise signal information allows discrimination of the behaviour of the steel balls and the rock. Determination of mill load, toe and shoulder angles, water holdup, and proxies for mill load are possible.The instability was diagnosed with the help of an abnormality in the liners/lifters of the SAG mill with one row of lifters having a slightly increased in-mill life compared to the rest. The steel shoulder angle is observed to be disturbed cyclically at a rate of precisely one revolution at low throughputs of 750 t/h. However, at throughputs closer to 1100 t/h, the cyclic signal disappears indicating additional dynamics to randomise the repetitive behaviour of the mill charge. The cyclic signal has been used to operate the SAG mill with improved stability at 1100 t/h by adjusting the feed water addition rate.This paper presents and discusses these results and proposes the suggested origin of the extra dynamics. A small consistent aberration of the lifters circumferentially provides a useful detector of stable mill operation and a novel sensor for the dynamics of the internal operation of a SAG mill.CITATION:Pax, R A and Cornish, B, 2015. A novel measurement for the internal operation of a semi-autogenous mill using acoustic sensors – a case study, in Proceedings MetPlant 2015, pp 120–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By T Wambeke, J Benndorf

A risk-robust development of a heavy mineral resource requires an assessment of the geological uncertainty and spatial variability of the key factors impacting the mining and processing operation. Attributes of interest are the total heavy mineral grade, the slime content and the amount of oversized particles. The modelling of a mineral sand deposit presents two main challenges. Firstly, the exact location of the geological boundaries are obscure due to the complex interaction of the deposit formation processes. Secondly, the properties of interest exhibit a rather complex transitional behaviour across the so-called soft boundaries. Traditionally, the modelling exercise is restricted to a consecutive stochastic simulation of distinct geological facies and orebody properties. This results in different zones separated by hard boundaries, ignoring the typical transitional behaviour.This contribution presents an alternative approach which models the entire sand body as a single domain while accounting for the complex trends present. Error curves are used to infer covariance model parameters without the need of a prior removal of the trend. The principle is based on minimising the differences between empirical and theoretical errors resulting from two methods of prediction calculated for different rings of influence. The added value results from the unambiguous decomposition of the spatial variation into a deterministic trend and a stochastic residual. The trend model neither overfits nor underfits the data. The calculated residuals are thus unbiased and the uncertainty can be correctly assessed.The effort results in a characterisation of the resource uncertainty which provides a more realistic image of the spatial variability of the key properties in and across the geological domains of an existing heavy mineral sand deposit.CITATION:Wambeke, T and Benndorf, J, 2014. Optimal inference of modelling parameters to simulate complex trends across soft boundaries – a case study in heavy mineral sands, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 73–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

Continuous pH and Pulp Potential Measurements During Complex Sulfide Ore Flotation

Sep 13, 2010

By Y G. Anoman

This paper discusses the operating model within Endeavour Mining Corporation regarding the options of owner mining against contract mining. It’s based on the concept of ‘are we carrying out the most efficient mining’ regarding cost and performance. This question can only be answered through an extensive contract mining tender process and conducting a comprehensive comparison to evaluate the transition viability. Karma mine, located in Burkina Faso, is the subject of this paper. The Tender model included sales of equipment, parts and tooling associated with the traditional Load and Haul Schedule of Rates (SOR). The methodology focused on the structure of the tender process, which consists in the development of a SOR based on haulage profiles and mining schedule. This is a new Endeavour framework that allowed the bidders to compete on an even level. This was performed using a systemic analysis which encompassed all the elements involved in a transition such as the Human Resources (HR), taxes and customs implications, directs and non-direct costs (Finance and interest on assets, depreciation, insurance), contractor risk profiling. It was assessed against the normalised internal pricing tender-based. This paper gives an insight into how a West African mining operation addressed the sensitivities of the HR functions against the commercial aspects. This was one of the most successful transitions in West Africa and was carried out during the COVID crisis. The outcome of this project has created value by detailing a lesson learned model for both commercial and HR aspects. This discusses the commercial comparisons along with the internal model with the underlying HR functions as a risk factor that could have jeopardised the continuation of the operation. This resulted in a smooth transition with the additional cash flow generated by the sale of the parts and equipment turned Karma into a viable operation.

Jun 22, 2022