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By Goldie R

The use of options theory in business has become well established in recent years and is currently one of the most exciting areas of current finance research. The theory can be used to value levered firms, and streams of contingent payments. This technique also has very practical applications in the areas of capital investment analysis and the valuation of equities in the natural resource industry. The use of options theory has been well accepted and used for many years in the trading of commodity options and futures contracts, in banking and insurance and in other industries. It also can be used to value such diverse contingent claims problems as the income tax liabilities of the firm and share underwriting agreements.Its application to the more complex options, such as those present in the resource industry, is only now becoming known. This lag is, at least partially, due to the difficult mathematics involved in solving complex options problems. Another factor is the almost overwhelming abundance of uncertainties, such as grade, tons and other natural risks, which must be considered in the evaluation mining projects.

Jan 1, 1990

By Basillo CI

The adsorption mechanisms of various thiol collectors can be subdivided into four classes: chemisorption, EC-mechanism, catalytic oxidation and metathetical substitution. The chemisorption mechanism occurs at potentials below the thermodynamic potentials for the metal-thiol compound formation and is reversible. The EC-mechanism occurs when the mineral is sufficiently oxidised to liberate metal ions to form metal-xanthates; therefore, it is observed with more easily oxidisable minerals and/or with collectors having large pK values. Thionocarbamates adsorb on sulphide minerals via the EC-mechanism due to their large pK values. Although the adsorption occurs at very low potentials as compared to xanthates, it is irreversible with large overpotentials. On the other hand, the adsorption of modified thiophosphates and thiophosphinates occurs near the thermodynamic potentials because of the low pK values. The metathetical substitution is believed to occur only when a mineral is highly oxidised. These classifications are useful for studying the effects of electrochemical potentials and the molecular structure on the collector adsorption Mechanisms.

Jan 1, 1993

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

Jan 1, 1999

The behavior of a curved wall under earth pressures for a horseshoe shaped tunnel lining is considered to be closely related to the beha vior of a vertical beam with variable flexural sti-"ness on an elastic foundation. In stress analysis an approximate method which divides the axis of the tunnel lining into small finite lengths and replaces the integrals by summation is usually adopted. this method is extremely complicated and tedious. However the variations of the moment of inertia from point to point along the wall axis can be expressed by a power function inversely .eith the distance from the ll )ottom and the analytical method can still used. The equations for the calculation of deflection, rotation, bending moment, shearing urce, and soil reaction of the curved wall are derived in nondimensional forms in this paper.

Jan 1, 1987

By V Kainulainen

Sandvik Tamrock Corp has developed an underground rock flow simulation tool OPTIMINEÖ which is a direct simulation tool for matching suitable technology in rock material flow for underground mine layouts and production requirements. The tool gives the possibility of determining intersections, limitations and critical points in the layout and working procedures at an early stage of a new mine/mining area planning process. The tool combines the supplier machine knowledge with operational know-how and mine environment. It can be used for identifying the effect of an individual incident such as the effect of one additional turn in a continuous loading cycle to the daily capacity. This paper discusses the way the OPTIMINEÖ simulation tool operates, the benefits and restrictions, and reviews how it simulates some example cases and how the mines benefit from the tool in maximising the performance and optimising the mobile fleet, scheduling work and fine-tuning the layout.

Jan 1, 2000

By Boyce WH

Earthquakes are the most frightening and devastating natural phenomena known to mankind. They strike without warning and their consequences can be disastrous in terms of the toll of human life, financial crises related to the damage or destruction of man-made structures and the social and economic effects on a wide spectrum of the affected communities in the aftermath of the event. Such situations can be widely attested to by most areas around the Pacific Rim. Indeed, the threat of earthquakes is always imminent because of the geological-tectonic nature of the region as manifested by past experiences. It is patently obvious that earthquake occurrences are not only a geological hazard but also pose a serious social danger. When one considers the 19 September 1985 Mexico (Michoacan) earthquake (Mitchell at al., 1986), the necessity of continuing research is of paramount importance. An estimation . of earthquake risk encompasses both qualitative and quantitative aspects and demands a multidisciplinary research effort integrating seismology, tectonics, geology, enginering, sociology, economics, insurance and governmental policies (Bolt, 1978; Booth, 1984). These roles in mitigating such a hazard have been aptly discussed by Press (1985). A series of discussion papers based on an intergovernmental conference covering the whole scenario were published by UNESCO (1978). A comprehensive case history was provided through a workshop on the 1886

Jan 1, 1987

By S Morrell, D Clark

æMine to MillÆ improvement involves optimising the chain of rock breakage processes from the in situ rock in the mine to the output of the concentrator. A growing number of paper studies and case histories from metalliferous mines (AusIMM, 1998; JKMRC, 1998; Clark and Scott, 2002) demonstrate that generating more breakage in the pit and the primary crusher can lead to benefits to milling that result in significant improvements to the economic performance of a mining project. However, unless the ævalueÆ of doing this (benefit over cost?) can be appropriately quantified, the approach cannot be effectively managed and the increases in blasting and monitoring costs cannot be justified.Mining operations have traditionally been organised into the separate departments of geology, mining and processing based on the specialist skills required and the different professional disciplines involved. Process optimisation across these boundaries has commonly been frustrated by management requirements to minimise the costs incurred by each department without adequate reference to the ævalueÆ being created. Companies have tended to discard positions that provide a technical over-view of the value chain, reducing the number of people with the opportunity to influence practices across these process boundaries.This paper discusses these issues and identifies measures required to quantify and manage the ævalueÆ provided by æMine to MillÆ improvement generated by the intense blasting of ore.

Jan 1, 2002

Experimentation with new methods, materials and machines to improve primary drilling and blasting is a continuing practice in the hard rock quarry operations of the BMI Group. These experiments will continue in the remote hope that one day we may produce a perfect feed for the primary crusher. As this day is still a long way off, the necessity to break oversize boulders will be a problem to be faced for the foreseeable future. To gauge the efficiency of primary blasting from this point of view, BMI monitor the tonnes of material crushed in the primary crusher for each boulder requiring secondary breaking. Over a period of about 10 years, this figure has improved from 30 tonnes througi the primary crusher per boulder, to 100 tonnes per boulder at our largest operation, which produces in excess of 2 million tonnes per year. Evan with this improvement, 25,000 boulders require secondary breaking each year This paper does not provide the solution to this problem, as like primary blasting, it will have to be constantly reviewed as new products and techniques become available. The paper sets out all of the methods tested or considered for test by BMI and our nnnn1iicinnq nn Chair PffPr.tivPness . Economic

Jan 1, 1978

Porphyry type mineralization of Lower Cretaceous age in eastern Queensland has been recognized only from the easternmost part of the northern New England Orogen (Day, Murray and Whitaker, 1978), within the northern Yarrol Province (Horton,1982). Recent work about the Mt. Suthers (Pb, Zn, Ag, Cu, Au), Lug-e-nor (Cu, Pb, Zn, Ag, Au, Mo), and German Tully (Cu, Au, Bi) prospects suggest that there has been a phase of porphyry type mineralization within the Gympie Province, of Lower Cretaceous age, overprinting earlier Permo-Triassic phases. About the Mt. Suthers Prospect surface samples of shallow, medium to heavy textured soils derived from marine sedimentary rocks of Permian age, and extrusive and intrusive igneous rocks of intermediate composition and Triassic age, were analysed for Cu, Zn, Pb, Co, Cr, Ni, Fe, V, Mn and Ag. Whereas strong iithological control determined the distribu- tion of Cu (diorite) and of Cr, Ni, Fe and V ,sedimentary rocks), the distribution of Pb, Zn, Ag and of Cu, were determined by mineralization of faults by a cavity fill hydrothermal process. Gold is associated with the Pb, Zn, Ag mineralization. Co and Mn showed distributions independent of lithology and structure. The fault controlled style of mineraliz- ation at Mt. Suthers is repeated at other localities to the south; Calgoa, Marodian, and German Gully. Relative dating of structural features and isotopic dating of nornblende porphyrites (134-135 m.y.) near and related to those mineralized at German c;ully suggest a previously unrecognized phase of porphyry copper style mineralization in south-east Queensland of Lower Cretaceous age (Fig. 1).

Jan 1, 1987

By M Noy, P Hawkes

Improvements in the drill and blast process can impact on loader performance in a number of ways. The main effects being improved loading cycle times, less non-productive cycles such as oversize removal, clean-up and face raking and better bucket fill factors. The impact of improved loading cycle times on the overall cost and productivity of the load and haul cycle is very much dependent on the loader truck match and the management of the haul fleet. Previous work has shown that a 20 per cent improvement in dig cycle times may only lead to three per cent or less improvement in the overall productivity of the load and haul process. However, improving the mass loaded per pass by five per cent will lead to a five per cent improvement in productivity for any given haul fleet situation, assuming sufficient truck capacity. Work by Orica Explosives at Lab ChrysotileÆs Thetford Mine, Quebec, Canada showed a relationship between muckpile fragmentation and truck payload. With this in mind, work was carried out to determine the effect differing muckpile fragmentation distributions can have on excavator bucket fill factors. This work was performed in the laboratory to a 1:100 scale. Nine different distributions were used. These were characterised by the Rosin Rammler parameters, xc the characteristic size, and n, the uniformity index. The values of xc and n used were modelled on those previously measured at a Sydney quarry. For the range of distributions measured, it was found that the fill factors were lowest at a low characteristic size and a high uniformity index and highest at a high characteristic size and a low uniformity index. In other words the best fill factors were achieved with a more dispersed muckpile distribution with a larger characteristic size. The difference in fill factors was 16 per cent indicating that controlling the drill and blast process to produce a specific muckpile distribution can have a significant impact on the overall cost-efficiency and productivity of the load and haul process. Field measurement by Orica Explosives at a quarry in Canada supports this conclusion showing improvements of up to seven per cent in average bucket load by either increasing the characteristic size or decreasing the uniformity index of the muckpile.

Jan 1, 1999

Productivity of mines can be improved by taking fewer, but larger blasts. The initial blasts taken in starting a mining block are restricted by the low amount of void or space to fire into. Block cave mines are using a blasting technique to blast areas that have less than the normally accepted minimum void to establish drawbells for their orebody development. This technique used in block caving mines can be used to improve productivity in mining operations that utilise other mining methods. Some larger blasts have been done in mines, using open stoping methods, which have had void ratios as low as 13 per cent. This has been possible with the use of the explosive gases to transport the broken rock out of the area normally considered to be available to blasts. This trapping of the explosive gases in the broken rock has allowed rock to be moved over 30 m, horizontally, to allow for more void to be available in the blast area. This gives the necessary void ratio allowable to fire larger blasts. This paper will discuss the blasts where this technique has been used in mines to increase the tonnes fired in low void situations. It will also discuss where this type of blasting may improve the productivity of underground mines. Figure 1 shows the how explosive gases have enabled the broken rock to flow out of a draw point without the typical air blast and fly rock that would normally cause a rope suspended sign to be damaged beyond use.

Jan 1, 2008

By P M. Downes

Porphyry-related skarns are common around thePacific Rim. Examples include Cadia and Goonumbla (Australia) Ok Tedi (PNG) and Ertsberg and Grasberg (Indonesia). Although usually treated as separate to the adjacent porphyry copper-gold (Cu-Au) deposit, skarns near porphyry deposits are commonly inextricably part of the larger Cu-Au system(s). Using Cadia as the primary example, we demonstrate that large, zoned, calc-silicate skarns necessitate very large porphyry systems. The Big Cadia and Little Cadia Fe-Cu-Au skarns are associated with the Late Ordovician to Early Silurian high-K calc-alkaline to shoshonitic Cadia Intrusive Complex (CIC). Together, these skarns total ~40 Mt of Cu-Au ore but are much smaller than the adjacent Cadia EastûFar East, Cadia Hill, and Ridgeway porphyry-related Cu-Au deposits. Historically these skarns were large, economically significant and highly controversial deposits. Porphyry-related skarns typically have well-developed calc-silicate and ore zonation. At Cadia, classic skarn zonation has been mapped between Cadia Quarry (proximal) and Big Cadia (distal). Over this 800 minterval, mineralogy trends from: proximal garnet > pyroxene, grading to; fe-oxide-rich skarn; and distal haematite-epidote-rich skarn. At Little Cadia, analogous but symmetrical alteration zonation is present. Big Cadia formed from fluids that migrated laterally within calcareous units and were sourced from strongly altered quartz monzonite phases of the CIC at Cadia Quarry. Isotope studies and mass-balance calculations suggest that prograde and retrograde skarn alteration was caused by magmatic dominated fluids. They also indicate that the mapped alteration system at Cadia Quarry is insufficient to account for the total volume of Fe present at Big Cadia. Despite the typically oxidised nature of many porphyry systems, not all skarns in the porphyry environment are oxidised. Assimilation of carbonaceous sediment by hydrous, alkaline intrusions could lead to reduced Au skarns rather than porphyry deposits. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By M S. Gallagher

In todayÆs high tech world, systems are getting bigger, faster, better. To remain at the leading edge, in any business, depends on accuratebut flexible design thereby allowing operational managers to providealternatives to improve their operations. The ultimate goal is to deliver to plan, with optimum economics. Mining is no different; with falling prices and escalating costs,improved margins become the focal objective. There are many ways toachieve this, ranging from operational efficiency improvements through production scenarios to planning initiatives. Of all, planning usually receives the least attention, yet it is the area of most influence on the Net Present Value (NPV) of the reserve. With computer technology, numerous concepts and iterations are possible thereby closing the gap between optimal and actual design. This paper discusses the application of the split shell design at the De Beers Venetia open pit in South Africa.

Jan 1, 2001

By Baafi E. Y

In this paper, impact of expert systems development is examined from the coal mining point of view. Some introductory concepts about expert systems are explained with a view to identifying possible beneficial applications of expert systems in coal Mining.

Jan 1, 1988

This paper shows how small calculators can be used for ball mill simulations. Two calculations are examined, the first to calculate the mill parameters and the second to predict the mill product. In the case of small programmable calculators the programs for two common models are given.

Jan 1, 1976

The article presents methods of testing and recording of water amount pumped out in surface mining. The authors describe necessary recommendations how to carry out measurements so that one can separate the surface run-off and groundwater inflow from the total inflow. They demonstrate methods of evaluation of these kinds of inflow in open pits when water amount testing is carried out every eight and 24 hours as well as simple methods when only monthly records of water are available. The authors also describe procedures for evaluating the water inflow when an open pit is dewatered gravitationally and measurements in discharge channels are irregularly carried out.

Jan 1, 2003

By D Gericke, R Cooke

This paper presents an assessment of the status in design and operation of deep level backfill distribution systems by referring to case studies and practical experience. The improvements in design and operation of the systems can largely be attributed to an improved understanding of slurry flow behaviour and a corresponding integrated design approach that includes slurry flow modelling, system design and application of the latest technology. The conclusions summarise the lessons learnt from such case studies and stresses the importance of design reviews and audits of existing systems as a means to ensure that the mistakes of the past are not repeated in the future.

Jan 1, 1998

Western Deep Levels, a seismically active deep level gold mine, started placing backfill in their narrow tabular workings as part of the regional support strategy in 1986. Over the years the percentage of working places being backfilled has been gradually increasing. At the end of 1995 the support efficiency and the labour productiveness relating to support installation were scrutinised to determine if resources were being optimised. Owing to financial, safety and productivity constraints it was decided to redesign stope support to be less labour intensive, safer and provide an integrated stope support system. This new integrated system will thus combine the previously used temporary, permanent and back area support consisting of mechanical props, hydraulic props and backfill respectively. Backfill previously formed an integral part of the regional support in conjunction with strike stabilising pillars. To design the integrated support system the backfill placement quality has to be exceptionally good and placement must be done as close as possible to the working face. The backfill to face distance was reduced by 30 per cent and in some areas by more than 50 per cent with an increase of square metres filled to increase the effect of the backfill even more. This paper addresses the design and successful implementation of an integrated stope support system based on the optimisation of backfill to the extent where installation of mechanical and hydraulic jacks could be eliminated.

Jan 1, 1998

Although laterite ores already provide a significant proportion of the world's nickel and cobalt production it is anticipated that they will surpass sulphide ores as a source of nickel in the next century. The most recent period of greenfield nickel project construction was during the 1970s when it was notable that all of the eight new plants were based on treating laterite ores. This was because of the relatively large selection of available high grade laterite ore deposits amenable to cheap open cast mining and a paucity of high grade sulphide ore prospect alternatives. Of the three processing options for treating laterite ores: 1. smelting for the lower horizon saprolite ore, 2. ammonia; and 3. acid leach for the upper horizon limonite ore, smelting currently accounts for about 80 per cent of nickel production. In the future, as saprolite ore grades decline because of relatively high exploitation rates, the incentive to process the large untapped reserves of limonite ore will increase. The high cobalt content of limonite ore also makes it ideally suited to processing by a hydrometallurgical rather than smelting route. With only two exceptions, all saprolite smelting operations have a Class 2 nickel end product (largely ferronickel) and do not produce a cobalt by-product. As a result of technological advances, the modified ammonia leach process for limonite and transition ore as undertaken at Yabulu, now allows the production of pure nickel metal as a Class 1 product, along with significant tonnages of cobalt by-product. The mixed Ni-Co sulphide intermediate product of the pressure acid leach processing of limonite ore at Mon is converted to Class 1 nickel and cobalt metal at Fort Saskatchewan, Canada.

Jan 1, 1996

In recent times there has been a marked increase in public awareness of air pollution. Some of this has been induced by the Press but our own senses tell us that there is a visible haze over our cities on many mornings. The people are now demanding a clean environment and will no longer tolerate smoke and dust fall or gaseous and odorous emission which either soil building and furnishings or interfere with comfort and well being.

Jan 1, 1971