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By A J. Ryan

The Ernest Henry copper-gold Mineral Resource is the major asset heldby Ernest Henry Mining Pty Ltd, comprising A$6.4 billion of containedmetal. The case history presented below describing the evolution andevaluation of this resource generally observes best industry practice and is a good example of effective due diligence in the resource delineation and estimation process. Early reconciliation data from mine production confirms the accuracy and validity of the resource estimate, providing valuable assurance to the mine owners.

Jan 1, 1998

By D Duan

In this study, aimed at two kinds of ore (lump ore and iron ore fines) and four types of Australian iron ore resources (haematite iron ore, Mara Mamba iron ore, limonite iron ore, and mixed iron ore, such as Newman, MAC, Yandi and Pilbara iron ore), the physical and chemical properties and high-temperature properties were investigated in detail, to master their behaviour and effects in sintering, blast furnace, and non-blast furnace processes. Then, according to the individual properties of Australian iron ores, Chinese domestic iron ores and Brazilian iron ores, etc, the optimisation of ore-proportioning for sintering, blast furnace, and non-blast furnace processes was studied based on the interaction of the individual iron ores and their complementary properties, and the corresponding tests were carried out. The test work results indicated that this method not only improved the technical and economic indexes of sintering, blast furnace, and non-blast furnace processes, but also increased the addition of Australian iron ore. All of these provide the theoretical basis and technical support for highly effective use of Australian iron ore resources in iron and steel enterprises in China.

Jul 11, 2011

By W G. Rowley

The Fortescue Metals Group story began in 2003 with a vision to establish an infrastructure project that would connect the stranded iron ore deposits of the Pilbara region of Western Australia with the steel mills of Asia. Following exploration successes in the Chichester Ranges using their new exploration model, Fortescue established significant iron ore resources at Cloudbreak and Christmas Creek during 2004 and 2005. By May 2006 the definitive feasibility study for mine, rail and port was completed, many of the key government approvals had been obtained, product development and market acceptance were complete and 1.07 Bt of total proved plus probable iron ore reserves were defined to support a 20 year mine life from the Cloudbreak and Christmas Creek deposits. Project construction commenced in September 2006 following a successful $3.2 billion capital raising. By April 2008, the mine and processing plant at Cloudbreak were completed along with the Herb Elliott port facility at Port Hedland and 256 km of heavy haul railroad linking the mine with the port. Mining of overburden commenced at Cloudbreak in late 2007 and by 15 May 2008 the first shipment of iron ore had departed for China. In the first 12 months of operation total shipments amounted to 24.6 M wet metric tonnes with weighted mean composition of 58.9 per cent Fe (64.4 per cent Fe calcined), 4.3 per cent SiO2, 2.0 per cent Al2O3 and 0.047 per cent P. Exactly 3.5 years between the Cloudbreak discovery hole and commercial production. The project success depended on many technical breakthroughs including a new exploration model, application of the surface miner as the main mining production unit, design of a new marketable fines product called æRocket FinesÆ, a highly efficient ædesandÆ flow sheet for upgrading of 2.4 per cent alumina run-of-mine to 1.9 per cent alumina Rocket Fines, 40 t axle loads for the heavy haul railway and a high capacity-highly automated port facility.

Jan 1, 2009

By J T. Sharp, M A. Styler, D McGowan, P W. Mayne

Static liquefaction is a geotechnical hazard in mine tailings facilities. Soils that are contractive in shear are susceptible to static liquefaction. Tailings facilities are dynamic structures, typically growing in height each year. Dilative tailings may become contractive under increased effective stress. In this paper we show that Cone Penetration Test (CPT) data can be used to estimate the future state of in-place tailings under changes in effective stress. Susceptibility to static liquefaction is typically evaluated with the CPT by using a clean-sand equivalent normalized cone tip resistance (Qtn,cs) or by estimating the state parameter (?). An alternative approach is to evaluate the soil-state using the yield-stress-ratio (YSR = ?’y/?’v0). If the YSR equals one it is on the normal consolidation line and the soil-state is contractive. YSR values greater than three are typically dense of the critical state line (CSL) and the soil-state is dilative. In this paper we review how to calculate Qtn,cs, ?, and ?’y; and how the YSR can be used to screen for contractive soil behaviour. Unlike Qtn,cs and ?, it is very simple to estimate how the YSR will change due to an increase in overburden stress. This YSR approach was evaluated at three locations that saw increases in overburden of 10 m, 20 m, and 25 m. We show that the ?’y calculations are consistent and the increase in effective stress moves the soil state towards looser soil states. CITATION:Styler, M A, Mayne, P W, McGowan, D and Sharp, J T, 2018. Predicting changes in static liquefaction susceptibility using cone penetration test results, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 317–332 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

The ores described in this paper are from the two principal orebodies at Wiseman's Creek, a small village about 22 miles south-east of Bathurst in central-western New South Wales.The first official reference to mining at Wiseman's Creek is in "Mineral Statistics of New South Wales" of 1875, which reported that the Wiseman's Creek Copper Mining Company had proved a lode-later known as "North Wiseman's"-to a depth of 120 ft., where it was found to be 20 ft. wide. By 1876 the erection of a mill and smelting works had commenced, and the sulphide ore found to contain copper lead, zinc, silver and gold. Some oxidised ore was also being worked. Operations were, however, generally unsuccessful, and sporadic work up until 1907 produced only about 5,000 tons of ore. The other more important orebody of the locality-the Phoenix-was not opened until about 1895. By 1908, as reported by J. E. Carne, the shaft had been sunk 340 ft., with the extraction of both oxidised and primary ore. At the time of the slump in copper, pric'es in 1907 approximately 3,000 tons of, ore had been produced.Several smaller orebodies were discovered and worked during the same period as the North Wiseman's and Phoenix, but their output was more or less insignficant. THE OREBODIES AND THEIR GEOLOGICAL SETTINGIt is now impossible to examine the orebodies underground, but they appear to have formed a series of flat lenses, whose major axes were parallel to ,the foliation of the enclosing quartz-chlorite-muscovite schists. The largest ,of these lenses was worked as the North Wiseman's orebody, which was reported by Carne to vary in width from 1 ft. to 20 ft., and which probably extended discontinuously over a strike length of about 1,000 ft. The Phoenix orebody is stated to have varied from 1 ft. 6 in. to 3 ft. in width...

Jan 1, 1955

By A Scott, S Kanchibotla, J Segui

The æMine to MillÆ concept is not new. In fact, it is the underlying objective of every mine. Unfortunately, in many operations the management structure and reporting systems have created independent æbusinessesÆ within the overall mining enterprise. This has created incentives to optimise the performance of each component of the operation rather than the enterprise as a whole. The Mine to Mill Conference organised by The AusIMM in October 1998 documented a number of case studies where run of mine ore was not presented to the mill in the best possible form for subsequent stages of comminution and processing. A number of examples were quoted where modest expenditure in the mine had a very significant impact on downstream process efficiency and hence costs. Examples included:the minimisation of fines in the mining and handling of iron ore; the management of fines in blasting and crushing for a copper heap leach operation; the control of blast damage, mining recovery and dilution in open cut coal operations; and the optimisation of mine fragmentation to increase mill throughput in gold and copper operations. The latter topic has been trialed at a number of mines and is referred to as æMine to MillÆ fragmentation. A number of æMine to MillÆ type investigations have been reported in the literature including Pease et al, Simkus and Dance, Nielsen, Scott et al, Kojovic et al, Kanchibotla et al, Bulow et al and Hawkes from the 1998 Mine to Mill Conference. In addition, a number of studies are in progress or the results have yet to be published. These studies have demonstrated the feasibility of obtaining the data required to characterise the breakage behaviour of ores and to model the impact of changes to blasting practices on process efficiency. Characterising the breakage behaviour of ores is a vital step in the management of fragmentation and comminution in mines. The characteristics of importance to fragmentation fall outside the parameters conventionally required to describe the economic geology of a deposit. æMine to MillÆ optimisation of fragmentation means that the mining engineer needs information from the geologist in order to be able to help the metallurgist. Providing this information requires close interaction between these groups.

Jan 1, 2000

Is your company paying taxation on profits which are partly illusory?ò Are unions making wage demands based on erroneous notions of the real level of value added to your companyÆs production?ò Do you receive historic data on profit contributions by different products, or for different market areas, which you feel may be misstated?ò Do you find that cash is not always readily available to pay dividends out of reported earnings because, it is required to finance additional working capital without a real increase in the level of activity?ò Are your planning and budgeting routines hampered by the need to rely on historic financial data which bear little resemblance to what the future may hold for your company?ò Are you able to maintain your business at its optimum operating capability or do you feel each year that it becomes more and more difficult to achieve the same volumes of prdduction at the same level of return on assets employed without having to raise more capital?If your answer to any of these questions is "yes", then it is very likely that Current Cost Accounting (CCA) has something to offer you!characteristics of the mining industry and for single venture mining operations.

Jan 1, 1984

By W A. van der Westhuizen

Selective mining played a major role in saving a mine and a communityÆs existence as well as creating a working culture that is the model for all KumbaÆs mines. The successes that resulted from selective mining led to receiving KumbaÆs highest award (it was the Gold Medal Breakthrough project of 2003) as well as the productivity award at the National Productivity Institute award ceremony in 2004. Kumba was established in November 2001 (previously Iscor Mining). The new company identified Mineral Resource Management (MRM) as one of its key drivers and an initiative was launched to define MRM in the Kumba way. Best MRM practices at the Kumba mines were included in the definition. Selective mining was born out of this initiative. One of the key principles of good MRM practice was identified as: æThere must be a balance in the operational processÆ. This principle was applied with great success at Thabazimbi Iron Ore mine in the Limpopo province, South Africa. The emphasis of this paper will be to show how value can be unlocked throughout the whole mining value chain. In the past (up to 2001) the mine went through a number of crisis situations: planned production performances were not reached, the stripping ratio was extremely high with two new pits, the product beds were not of constant quality, slope failures were big risks, flooding could and did cut off half of the ore supply, and restructuring demoralised staff.This paper focuses on: selective mining throughput drivers, and selective mining and its role in achieving this balance.The results were dramatic, with huge improvements in production results, stockpiles, plant yields and product bed specifications. The mine was brought into balance and a self feeding loop was created with positive spin-offs up to this day.

Jan 1, 2005

By Maloszewski J, Kidybinski A, Sawka B

A forecast of mining conditions in Upper Silesia collieries for the beginning of the 21st century has special focus on average depth of mining, energy of seismic tremors induced by mining and energy of dynamic loads on roadway supports. A method of dynamic loads calculation is based on volume of failed rock surrounding an opening and the seismic energy of tremors anticipated. New types of yielding steel arch supports have been designed to resist massive static and dynamic loads and a system of supports has been tested both on 1 : 10 scale models and in natural size. The support sections used are 29, 36 and 44 kg/m.

Jan 1, 1988

AustraliaÆs strong position as an aluminium producer and potential magnesium producer combined with rapid market growth in the automotive industry, proximity to Asia and other natural advantages points to considerable opportunity for downstream processing and manufacture with light metals in this country. Development of a vertically integrated light metals industry in Australia needs to be pursued with vigour, as does the continued development of global strategic alliances through the value adding chain.

Jan 1, 2000

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

A mining companyÆs approach to managing the risk of theft of explosives and initiating devices should be underpinned by an organisation-wide policy developed with internal and external consultation. It should be based on the principles of sound proactive risk management, planning, monitoring and remedial action. This paper aims to provide mining (and construction)organisations with the rationale and many of the tools they need to control explosive security risks. As with all legislative compliance, they are best managed by incorporating the statutory and legal requirements into company policies, management systems and plans, operating procedures and culture. This is the approach that has been adopted in this paper. Trends we should expect: more prescriptive legislation and stricter government regulations; enhanced enforcement and more prosecution; more sophisticated detection systems, eg airports; additional compliance costs; additional vigilance on record keeping; improved risk awareness and risk communication; wider use of explosives policies, management systems and plans; and additional security staff with investigative skills.It should be noted that mining companies will be required to play their part in reducing the likelihood of explosives, intended for mining purposes, being wrongfully used to threaten, hold to ransom or to injure individuals or members of the public or to produce property damage. This will be done by putting in place safeguards to reduce the risk of theft of explosives while they are under their control. On that basis, this is a business risk assessment rather than a hazard risk assessment. A conclusion of this paper is that mining companies can and should play their part in reducing the supply of explosive materials that can then be used for illegal activities. In fact, mining companies have always had this duty, but now the stakes are higher û æcomplacency no longerÆ.

Jan 1, 2004

By J C. de Vries

When times are tough in the mineral industry û as they have been for some time û typical responses by mining companies are to cut costs and/ or increase production. The latter is seen to spread fixed costs, thereby also reducing unit costs per tonne mined. However, most mineral deposits respond to increased production rates by lowering ore grades, so the reduction in cost per tonne of ore does not necessarily result in a reduced cost per unit of metal produced. The authorsÆ experience is that this process often leads to a mine plan that is a long way from optimal. Producing to the point where marginal cost equals marginal revenue may work well in a manufacturing operation, but it is not necessarily the best strategy for a mining company with a depleting resource. Variations in tonnage and grade with depth, ore reserve optimism and a variety of other factors conspire to produce variations in production rates and grade that often result in suboptimal outcomes and potential mine failure. Added to this is the focus of industry analysts and senior corporate management on such measures as unit costs and ounces in reserves. This is perceived to have the perverse effect of driving the share price down when strategies are adopted that actually improve the value of the mining operation, and vice versa! Many mine failures can be prevented by a close examination of the tonnage grade curve and an understanding of how margins, net cash flows and resulting business risk change with cut-off grades and rates of production. A few relatively simple analyses early in the evaluation of a project can demonstrate the tradeoffs between the main decision parameters, leading to right-sizing of the operation. Once major commitments to major capital items have been made, and reserves have been publicly reported, optimisation of the operation becomes much more difficult than if it had been done earlier. Such investigations can also identify the upside potential and downside risks associated with factors outside the companyÆs control. Many strategies that may enhance value in the good times significantly increase the downside risk in the bad times. What is often called risk analysis typically looks at superficial issues, and does not evaluate the major factors leading to the potential for financial disaster. This paper illustrates some of these major risks, and demonstrates how they may be fully evaluated so that corporate decision makers can make fully informed decisions that take account of the real risks.

Jan 1, 2003

Electromagnetic methods used in geo- physical prospecting for conductive ore bodies have proved successful in Canada,Sweden and other countries. In Australia however the depth of weathering generally exceeds 30 metres. This introduces a problem of highly conductive overburden and renders equipment useful elsewhere virtually ineffective. A discussion of several EM prospecting techniques is presented and a new system under development at James Cook University using V.L.F. transmissions capable of indicating changes in impedance (not only highly conducting media) is outlined.

Jan 1, 1974

By Pati±o A

The Argentine pyroclastic loess arevulcanogenic deposits, which have their sources in the circumnpacific rim. The object of this work is to realize a de-tailed mineralogical characterization of this sediments, to use it like a geo logic outline which regiters discordance or similarity in them, The sampling zone extend from 714N-4125 to 622W-339S. The descriptions of these sediments was considered like basic, mesobasic or acid rocks. The basic sediments, looking like andesite-basaltic composition, are fill-ing the andean valley. The mesobasic one have a similar composition with a pyro-clastic dacite rock, and have been found in marshy pleistocene sediments in the intermountain valley and in the pampeana prairies. The acid ashed conform rhyoda-cite-rhyolite sediments which form the pampeana loess covers in the prairie.

Jan 1, 1990

To enable ammonium nitrate-fuel oil (AN-FO) to be used on an equal weight basis with nitroglycerine explosives, smaller diameter bore holes became necessary with consequent modifications to drill steel and burden on holes. Detonation of AN-FO in small diameter holes proved successful both with and without primer charges but some alterations were required to adapt anoloders to the smaller holes.Important factors in training all operators in the new charging method were the retention of improved fragmentation, avoidance of excessive overbreak and keeping wall rock dilution to an absolute minimum. The successful storage of ammonium nitrate in climatic conditions with daily temperature fluctuations above and below the critical 90°F has been achieved.INTRODUCTIONTechnical aspects of ammonium nitrate-fuel oil (AN-Fa) blasting agent are well covered in recent literature. This paper deals primarily with the manner of its introduction as the principal explosive underground at Great Boulder Gold Mines Ltd. and with the many problems encountered in the process. Following reasonably successful experimental firings in June 1962', using granular ammonium nitrate and an anoloder, permission was granted by theWestern Australian Mines Department to carry out test work in selected areas of the mine. The permit allowed for fuse firing only, and for a mixture of AN-Fa containing between 5t and 6 per cent fuel oil, with an adequate primer.The use of AN-Fa on an equal weight basis with nitroglycerine explosives, involved smaller diameter holes with alteration to ground burden and modification to drill steel.Initial tests indicated that it was apparent that AN-Fa could not replace gelignite on an equal weight basis if the...

Jan 1, 1965

By P Jackson, J Rea, M D. Goodz

The Morning Star Gold Mine has operated over a 101-year period, producing gold from narrow quartz veins and sulfide stockworks hosted mainly within a dioritic-gabbroic dyke. The deposit has been developed over a vertical depth of 980 m with drilling extending the vertical depth to greater than 1200 m. Currently there is a total Inferred Resource of 4.6 million tonnes at a grade of 6 g/t for 910 000 ounces of contained gold resources, which comprises an underground project and a surface project. Significant variation exists between the grade of drill core intersections and that observed in face sampling and subsequent production reconciliation (250 - 650 per cent). Studies were carried out on ten major production reefs, where the grades of drill intercepts were compared with face samples collected during development and mining. The implications of this study have been used as justification to assign production or stope/development grades where applicable to resources that are direct extensions of the historical development headings. Grade assignment and its impact on sensitivity for gold resources are detailed and show a 40 per cent variation in the gold resource, depending upon whether a production or calculated stope grade is used in grade assignment for the major reef deposits. Recent diamond drilling has intersected approximately 40 new gold bearing quartz reefs and sulfide zones that contain all the key mineralogical and structural indicators, and traditional large variations in gold grades similar to the historical major production zones. The implications of grade factoring and grade assignment are the greatest challenges confronting the resource estimation team in defining grade for these new zones. Grade assignment is seen as a method of balancing known historical production observations with the irregular grade distribution inferred from drill core assay results. Ongoing mine development and bulk sampling works are planned to validate the grade assignment process. The first stage of this process is the trial mining of the newly discovered Maxwell Reef (MR). The stope drawpoints were completed in August 2008 and the MRS1 stope is scheduled for completion in September. The stope reconciliation results will be presented at the October 2008 conference.

Jan 1, 2008

This paper describes the new iron and steelmaking process recently commissioned at NZ Steel. Ironsand mined and concentrated at Waikato North head is slurry pumped 18 km to the company's Glenbrook works. Ironmaking includes the direct reduction process pioneered at Glenbrook in the 1970s and a new continuous electric melter. The molten, high carbon pig iron produced is then fed to a vanadium recovery unit and on to the KOBM oxygen steelmaking vessel. Steel is cast into billets or slabs. The new plant, which is the first stage of a fully integrated works at Glenbrook, raises New Zealand Steel's production capacity from 150 000 t/y to 750 000 t/y.

Jan 1, 1986

By J L. Macdonald, G S. King

"The development of a predictive geometallurgical model is a multidisciplinary and iterative task that involves both discovery and integration aspects. In this paper, the authors discuss the concepts of geometallurgical modelling in terms of the underlying relationships that are used to connect geology, metallurgy and economic value, and how the early-stage preparation of a spatial geometallurgical model enhances project value and provides a sound basis for future studies and test work programs.Hot Chili’s (copper-gold-molybdenum) Productora Project, which is located in northern Chile, is a porphyry-copper style deposit that can be exploited using open pit mining and preparation of a saleable concentrate from fresh ore, as well as heap leaching, solvent extraction and electrowinning (SX-EW) extraction of copper from oxide ores. To enhance project value in the Productora prefeasibility study (PFS), Hot Chili developed a geometallurgical model that was used to predict the process responses of both sulfide and oxide ores. The Productora model incorporates test results from mineralogical, metallurgical and comminution testing, as well as other studies completed on a suite of samples collected from the many geological domains of the deposit.Using Bond Work Index and Abrasion Index proxies in the geometallurgical model, Hot Chili estimated the variability of sulfide ore throughput and comminution costs. Heap leach acid consumption in oxide ore was estimated from drill hole calcium concentrations. The model was then used in mine scheduling to identify high and low throughput or high and low acid ore zones so that the processing of these zones could be advanced or deferred to improve net present value (NPV). Additionally, the cost benefits of preparing an early-stage geometallurgy model were quantified through a comparison to a conventional model that was based on test work averages.CITATION:King, G S and Macdonald, J L, 2016. The Business Case for Early-stage Implementation of Geometallurgy– an Example from the Productora Cu-Mo-Au Deposit, Chile, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 125–134 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By S DeKruijff

The Mount Isa Mines Copper Mine in Mount Isa started producing copper in 1966. The Copper Mine gradually increased production rates to nearly six million tonnes per year. Over the last three years the mine has been in a gradual ramp down due to the reduction of primary ore sources and head grade. The majority of ore sources are predominantly in pillar retreat sequences bounded by multiple fill masses. There also a substantial lower grade resource delineated to the south of the main orebody. These remaining ore sources present significant engineering challenges to obtain a safe and cost-effective extraction. Stope designs have become increasingly complex and require additional engineering and operations input and analysis. This paper describes the major planning and operational challenges and issues associated with the stope design and extraction of an orebody in the later stages of mine life.

Jan 1, 2000