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By W Stange

Assessing the risks in a mining project is a key aspect of project evaluation. This is an exacting and demanding task because of the complexity due to the need to deal with uncertainty over long time periods. The way risks are assessed and managed is critical to the long-term success of the projects and the business. Discounted cash flow (DCF) analysis is commonly used for project and risk evaluation. A discount rate is selected that accounts for uncertainties in the cash flows. However, it is difficult to determine an appropriate discount rate due to the large number of factors that need to be considered and the complex relationships between risk sources. Using a proven framework, ævalue at riskÆ (VaR), this paper proposes to rigorously model and quantify ærisk at sourceÆ. The approach was first employed to assess financial market risks and is now widely used in the banking sector for risk assessment. In project evaluation, all risk sources are identified and estimated separately to ensure the overall project risk is quantified accurately. A bottom-up approach has been proposed. Estimates are first carried out for risk factors at the bottom of the project structure. The assessment is then applied at increasingly higher levels until the overall project risk is estimated. Value at risk is a versatile methodology and can be used in a local or integrated manner. The final value is objective and the calculation steps can be easily justified and followed. Four case studies have been included to illustrate how the proposed approach can assist management in decision-making.

Jan 1, 2009

By Kim YC

An alternative development drilling strategy to the one currently in use at an open pit mine was investigated using geostatistics for a portion of the pit. The massive orebody, the 3-D nature of the problem, and the location of ultimate pit limit in the study area all created some unique problems in devising the development drilling strategy. Rather than using confidence interval of the global reserve estimate as the main criterion for development drilling, the confidence interval of short and medium range mine planning blocks was used as the objective. Based on somewhat arbitrarily selected level of confidence, the results from the study showed that a total of 50 diamond drillholes (DDHs) rather than the planned 62 DDHs is sufficient in the study area, if the selected confidence levels are acceptable to the management. The paper also emphasizes the importance of particular objectives being used in development drilling and how they influence the "optimal" placement of the development drillholes.

Jan 1, 1986

By Hall T. P, Taylor R. N

Fluid flow in a 1:14 scale water model of the shaft and settler of the Kalgoorlie Nickel flash smelter has been investigated by flow visualisation and numerical modelling. Detailed flow fields through the reaction shaft, settling chamber and uptake are presented for flow rates up to 800 Vm and a number of burner configurations. The predicted flow fields were compared with experimental data obtained from streak photographs and video recordings. The effects of cessation of flow through individual burners and changes in shaft dimensions were also Investigated.

Jan 1, 1992

By H Rouhullahi, E B. Veshki an, R Kottnauer

The Galandrud coalfield is located approximately 20 km south from the coast of the Caspian Sea, Ruyan town, on the north slopes of the Alborz mountain range, in the elevation between 500 m (the Galand River valley) and 1350 m. For the time being, 32 coal seams (generally of small thickness û 0.8 m on average) have been recognised within the. On the other hand 72 coal banks of balanced properties have been included in reserve calculation, which means that some of the seams consist of several banks. The general dip of strata belonging to the south limb is about 30¦ to the South (with drags close to the south overthrust, where the dip reaches 85¦), while the dip of beds at the north limb is rather steep and usually between 45 to 75¦ to the North. The coal quality is in a rank of high volatile bituminous coal. The steep dip, unstable lithological development, complicated tectonics and comparatively lower coal seam thickness are the characteristic features of the Galandrud deposit. Environmental protection of this area makes exploration and exploitation more complicated. During mine exploration several adits were driven at three levels with 50 m vertical distances. About 4000 m of gates and crosscuts were up to now driven. During mining test the down-cut mining method (with one cut), the strike cut mining method and the down-cut mining method with two cuts were tested. The paper describes outlines for the selection of mining methods on the base of classification of the effective hangingwalls and footwalls, hazards of mining operations, and possibilities of the mechanised mining.

Jan 1, 2003

By Haigh C. J

A process has been developed to recover at least 75% of the 2-naphthol contained in cobalt precipitate produced during the removal of cobalt from electrolytic zinc plant solution. The recovered material is in a form suitable for recycling to precipitate further cobalt from solution. The process consists essentially of two steps. The first involves leaching of cobalt precipitate in 400 g/l sodium hydroxide solution at 95¦C in the presence of an additive. The second step involves treating the filtrate from the leaching stage with sodium sulphide to precipitate cobalt as the sulphide thereby re- generating the sodium hydroxide for recycling. The process is only marginally profitable at present 2-naphthol prices, giving a net return of 20% on a capital investment of $1 200 000. A reaction mechanism is proposed which accounts for the 25% loss of the 2-naphthol in the recovery process.

Jan 1, 1977

An understanding of the way that solutes are transported in mining or natural environments is essential to the development of sound strategies for managing waste disposal. Research on miscible pollutant movement in unsaturated porous media is carried out both experimentally and numerically. Results of numerical modelling are obtained by solving the groundwater flow equation and the solute transport equation. The finite element method is employed and comparisons between simulation results and experimental data are found in remarkable agreement.

Jan 1, 1995

By Tran T

The kinetics of cementation of silver chloro-complexes from sodium chloride solutions onto copper and zinc was studied using rotating disc electrode system. The activation energies were found to be 10.8 and 30.5 k7/mole, in a 3M NaCl solution on copper and zinc discs, respectively. Higher dissolution factors were obtained on zinc disc, due to hydrogen evolution, whereas, copper dissolved close to the predicted values. Scanning electron microscope studies were conducted both on copper and zinc- cdiscs-to evaluate the deposit morphology and its effect on reaction kinetics. Two stage deposit growth was observed both on copper and zinc discs. Smooth, coherent initial deposit followed by tree-like secondary dendrites formed on copper, whereas, scattered bulbous initial deposit followed by porous dendrites was typical on zinc disc.

Jan 1, 1992

By Matsuhisa Y, Sakurai W, Shimazaki H, Peiming H, Fukahori Y

Oxygen and carbon isotope mapping of hydrothermally altered wall rocks was applied to the blind ore prospecting of skam Pb-Zn deposits in the Kamioka mining district, central Japan, where the wall rocks consist of heterogeneous rock units. The results (8180sMow of -1.1 to +17.3%o and 613CPDB of -5.0 to +4.8%o for limestones, and 8180SMOW of -0.8 to +12.5%c for silicate rocks) show isotope zonations of the wall rocks with depletions in heavy isotopes (180 and 13C) toward the center of mineralization. The isotope zonations likely formed by interaction of migrating thermal waters with the wall rocks during the mineralization. The heavy-isotope depleted zone, which indicates higher temperature or higher water-to- rock ratio of the system, occurs in the footwall of a fault, indicating that the fault played the role of main conduit of the ore-forming fluids. A heavy-isotope depleted zone was also found in an area, where significant mineralization had yet to be identified. Recent drilling in this area has intercepted a zone with a grade of 16.0% Zn, 0.8% Pb, and 35g Ag per metric tonne at a depth of about 360m.

Jan 1, 1995

The ore deposits of the Oobar mining field are confined to sediments of the Early Devonian Cobar Supergroup. The mineralisation is discordant to bedding and parallel to cleavage. The structural association is variable with the deposits near the eastern margin of the Cobar Basin formed in zones of deformation and faulting. The Elura deposit located further to the west is in less deformed sediments within the core of a small anticline. There are wide variations in ore type fran lad sulphide chalcopyrite - pyrrhotite - pyrite to high sulphide sphalerite - galena - pyrrhotite - pyrite assemblages. The deposits ccnmonly contain an inner zone of quartz - sulphide - chlorite veining grading outwards into a chlorite halo containing quartz - carbonate veining. The Elura deposit differs in having an inner massive sulphide zone surrounded by a zone of big-Fe carbonate formation. The mineralisation probably formed during regional metamorphism and deformation in the Early Carboniferous. A possible genetic model involves the injection of metal bearing hydrothermal fluids formed in the upper mantle or lower crust up basement structures into the overlying Cobar Supergroup sediments. An alternate model proposes the leaching of metals from the sediments by brines formed during metamorphism and subsequent emplacement in favourable structural zones.

Jan 1, 1983

By Crawford G. R, Wold M. B

The application of the hydraulic fracturing technique to the measurement of in situ rock stress from underground excavation is discussed; including relevant theoretical considerations, equipmenl details, experimental technique and analysis procedures. Examples of the application of the technique at three Australian coal and metalliferous mining operations are given. The results obtained from these applications are compared with corresponding results obtained from overcoring tests conducted in close proximity at each site. Generally good correspondence in a wide variety of rock types is indicated. Experience gained with hydraulic fracturing at several underground mining sites has indicated it to be a quick, cost effective means of gaining an understanding of the in situ stress field in sufficient detail for many mine planning functions.

Jan 1, 1990

Over the last five years Du Pont (Australia) Ltd has developed a commercial range of new generation emulsion based explosives concurrently with the development of new explosives-placement systems. The paper outlines Du Pont's emulsion technology and history of product development from the initial emulsions (Tovex E & EL) to emulsion/ANFO blends (Tovex BE) through to the most recent development of Du Pont's SOL emulsion component. The paper also outlines the development of materials handling systems on site to load waterproof bulk explosives from the original pumper trucks through to the multipurpose agitator bowl blending and pumping units at the heart of Du Pont's SOL emulsion system currently available within Australia. The last section deals with some of the more important features of enhanced agitator bowl truck designs and outlines examples of the complete SOL emulsion system and methods of operations currently practiced at specific mines within the Bowen Basin coalfields.

Jan 1, 1986

Mining, like most other businesses, is based upon capital assets; and the primary cap- ital of any mining company is its ore reserve. A company's survival and growth is, thus, dep- endent upon its ability to replace, increase, redistribute and to diversify its ore reserves. A Kennecott executive addressing a group of geologists in 1957 stated, "Management expects a geologist to find ore! That is the primary objective and the justification of the geologist in the minerals industry. There is no other function that we can rationalize." This is, however, a restricted point of view, and one which I an sure is not fully shared by mining executives or mine operators at the present time. Ore reserves are 'made' as well as 'found' and the geologist contributes to this process. A mining geologist engages in activity in- volving the study of geology in connection with the total mining operation. His major task is the adaption of geological knowledge of ore de- posits and rock behaviour to mining needs, and the application of principles of the science of geology to specific problems of finding, develop- ing and extracting of ore bodies.

Jan 1, 1975

By Bruce P, Luyendyk

The South Island of New Zealand comprises a collage of distinct tectonostratigraphic terranes. Some tectonic models predict that these terranes formed on or near the margin of Gondwanaland. However, geologic evidence suggests that some of these terranes may be exotic. Over 400 samples from 30 sites were collected from the Brookstreet terrane within the Takitimu Mountains. The section includes the early Permian Takitimu Group and the late Permian White Hill Intrusive Suite. Over 80% of the rocks show a partial or complete regnetization in the present field due to recent acquistion of VRM. Although some remagnetization of the Takitimu Group occurred during the emplacement of the White Hill Intrusives, both early and late Permian direction have been isolated. These directions indicate a mid-latitude origin for the Brookstreet terrane, and suggest a strong clockwise rotation between early and late Permian time. A published paleomagnetic result from the younger, but related, Murihiku terrane suggests that the Brookstreet terrane was sutured to the margin of Gondwanaland by the late Triassic, or that the Brookstreet and Murihiku are two distinct terranes.

Jan 1, 1987

An improved method of sample recovery for use with rotary percussion drilling has been developed. Cuttings can be recovered continuously from either dry or wet drilling, and the recovery under dry conditions is seldom below 99% of the cuttings brought to the surface by the rig. The system is designed for use with top drive drilling rigs using flush-jointed drill rods. The key feature of the system is a self-aligning mechanical seal around the drill rods. The sealing unit is removably fixed to a collar section of cas ing. the cuttings are recovered in a plastic bag attached to the bottom outlet of a cyclone. A valve at the bottom of the cyclone permits the cuttings representing various depths to I,e recovered separately for examination eind 0(iclysis. [u the Iron Monarch quarry, two percussion holes were drilled to depths if 30 metres and 28 metres using the unproved sample recovery system, and diamond drill holes bored 1 metre from each percussion hole. Samples from each hole were sectionalized over metre intervals and analysed for iron, silica, alumina and loss on

Jan 1, 1976

By Mirabediny H, Whitchurch K

A computerised simulation model has been developed to select the most suitable digging method of a dragline operation for a given geological condition. The developed procedure uses a geological ore body model as the basis for the geologic database. The simulation selects the most cost effective dragline digging method from a database of various dragline digging methods The database consists of common and innovative dragline methods currently used in Australian open cut mines. A generalised computer package, DSLX, was extensively used to simulate various dragline digging methods. The DSLX software uses predefined functions to build strip geometry, working benches, blast profiles and spoil piles. The outputs from DSLX in form of volumetric, swing angles and hoist distances data are then aggregated with dragline specifications and site time study data to compare productivity of selected digging methods. The result of a case study showed that this procedure lends itself to the 'optimum' selection a dragline digging method for a given coal deposit.

Jan 1, 1995

Like almost any other 19th century mining area, the West Coast saw its 20th century scrapping era when machinery which had been installed in seemingly inaccessible places was somehow dragged out again. Fortunately there were some spots so remote that they defied even the most zealous of these pioneering recyclers. One of these was Big River, a mining locality in a rugged landscape straddling the headwaters of the Grey and Inangahua rivers. As a result there remains an internationally important collection of mining equipment including a poppet head, two steam winding engines, a pair of boilers, part of an aerial cableway with its loading system, and remnants of a stamp battery along with its associated gold smelter, cyanide tanks and zinc boxes. There are also assorted building remains associated with 60 years of mining and settlement. Since their abandonment in 1942, these relics have all somehow survived a further half century in a far from favourable climate with two or three metres of rain a year, frequent snowfalls and hot summer temperatures. The rate of decay during the past few years has been alarming.

Jan 1, 1996

By N Harries

The management of risks associated with slope instability is an essential process in the safe and economic operation of open cut mines. The æslope stability radarÆ (SSR) has been developed to better manage those risks. The SSR can remotely scan a rock slope to continuously measure any movement of the face. The system can detect and alert users of wall movements with submillimetre precision. The high level of movement precision and broad area coverage of the rock face can allow for a better understanding of the geomechanics of slope deformation, including magnitude of potential failures and additional warning time of impending instability. Additionally, radar waves adequately penetrate through rain, dust and smoke to give reliable measurements, 24 hours a day. SSR systems have been deployed in many mines in Australia, Indonesia, Africa, Chile and the United States. Greater than 100 rock falls and waste dump failures (from several tonnes to millions of tonnes) have been monitored, and on every occasion precursor æwarningÆ movements were recorded by the SSR. This technology enables a radical change in the management of risks in open cut mining. This paper presents recent case studies of how the SSR technology has provided safety and productivity benefits to large open cut metalliferous mines.

Jan 1, 2007

By Unver B

Longwall advance mining is still the predaninant system of coal extraction in the U.K., contribiiting to sane 70 % of underground coal production. Gate roadways providing access to a longwall advancing coal face are maintained adjacent to a rib pillar under high strata abutment pressures and the caving rock mass. It is very difficult to realistically model such access roadways using mathematical or numerical techniques and hence, predict roadway closure. For the past 15 years, a research group in Nottingham University has been engaged in the study of longwall gate roadway stability using observation methods. Gate roadway deformations have been measured in 224 gate roadways and a comprehensive data base has been established. The paper describes the statistical analysis of this database and presents sane. predictive equations which will enable a forecast of the gate roadway closure to he made. Further field work to validate these equations. is described together with an error analysis. The results are very promising and indicate that it is possible to predict gate roadway closure in the U.K. within practical limits of Accuracy.

Jan 1, 1986

By Forsythe DJ, Sun S-S Andrew AS

Paragenetic, fluid inclusion, stable isotope, and 87Sr/86Sr and 143Nd/144Nd isotope studies of the Mt Carbine tungsten deposit in North Queensland provide information on the sources of the mineralising components and record the history of fluid-rock interaction during the hydrothermal process. The ore minerals , wolframite and scheelite , are contained in quartz veins which post-date the major deformations in the Siluro-Devonian Hodgkinson Formation . Mineralisation was immediately preceded by the emplacement of the Mossman Batholith (280 ¦ 7 Ma). Two major stages of mineralisation are present and separated by a brittle fracturing episode . The stable isotope and Sr and Nd isotope data suggest that the ore fluids during stage I and most of stage II mineralisation were a mixture of magmatic water and non-magmatic water (connate or metamorphic) which had experienced a long residence time and had extensively exchanged with the sediments at high temperature. Subsequent mineralisation events were dominated by fluids of meteoric derivation with a short residence time. The data imply that other solutes, such as W, were probably derived in minor part from local country rock sources with the major contribution coming from a magmatic source related to the granite batholith.

Jan 1, 1987

By Ito H, Noguchi F, Ueda Y

DTA curves of synthesis lead sulfide and commercial. lead concentrates during oxidation were measured to clarify the mechanism of ox- idation of lead sulfide. The oxidation reac tions could be divided to elementary reactions with production of basic lead sulfates such as 2PbO PbSO4. An existance of iron sulfide played an important role of the oxidation of lead concentrates. The oxidation rates of lead sulfide were measured in the wide range of oxygen potenti- als using IR type SO2 gas-meter. The oxidation rates under low Po 2 which corresponds to the direct oxidation smelting were much lower than those obtained under high Pot. The combustion temperatures of lead sulfide were also measured by hot thermocouple method. Those values were extremly low compar- ing the oxidation temperatures obtained by DTA.

Jan 1, 1987