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Completion of a project requires two separate money-focused activities, namely economic evaluation of the cash flows underlying the project (before financing) and if the economics look promising, how it can be financed. Economic evaluation might be best led by a person with a technical-operating background, whereas financing might be best led by an accountant. Both should be presented in simple language with easy to understand models. Economic evaluation has a sad and bad history because it evolved from the fringes of accounting. Anyone can become a self-appointed practitioner. Some still take pride in mathematical complexity without realising that they distance themselves from the decision-makers and alienate other team members. Today there is no evaluation modelling consistency across the mining industry and this reflects poorly on our discipline. It is not tolerated amongst our peers in engineering and accounting. In 2009 æbest practiceÆ economic evaluation modelling is well defined. It is:easy to follow;tailored to its purpose;transparent;discipline, rigour and consistency;recording of all source data; and hencequick to audit. Mantra: If you cannot readily understand my model you do not have a problem, I do! The task of the economic model is to make the range of business cases underlying the decision easy to understand. Intellectual power is used to simplify the decision to its key issues and risks and to present the full range of possible business outcomes in readily understood terms. Project team members, management and the board must be able to make their decisions with æeyes wide openÆ. A steering committee should be established to develop a set of standards and practices that could be adopted for economic modelling within the industry. The industry needs to purge itself of the undisciplined economic evaluation modelling that now characterises the discipline.

Jan 1, 2009

By J J. Cilliers, K Hadler

The potential of air rate profiling to significantly improve the flotation performance of a bank of cells has been shown by numerous studies. To date many profiles have been evaluated; balanced, increasing, decreasing and combinations of these. An increasing air rate profile, where the air rates are increased proportionally to each cell down the bank, has been typically found to yield improved flotation performance compared to other profiles. Air rate profiling has two distinct components; determining the correct total air rate for the bank, and determining the correct distribution of that air. This can be done simultaneously by finding the optimal air rate to each cell in the bank in turn through air recovery optimisation. Air recovery is the fraction of the inlet air which overflows the weir of a cell as unburst bubbles. The peak in air recovery (PAR) is a robust measurement of optimal performance for the operating conditions in the cell, and sets the PAR air rate. In this study, plant trials of different air rate profiles and profiling based on PAR, were evaluated. The total air rates to the bank for all profiles tested were approximately equal, allowing direct comparison. The highest cumulative mineral recovery was achieved by operating at the PAR air rates for each cell down the bank. Different distributions of the same total air rate to the bank gave the same cumulative upgrade ratio, but lower cumulative recoveries. In this work the upgrade ratio is defined as the ratio of the concentrate grade to the feed grade. The increase in cumulative mineral recovery, at the same upgrade ratio, in this study was greater than 33 per cent. Air recovery based optimisation of air rates to banks of cells significantly improves flotation performance as it simultaneously determines the optimal air rate to the bank, and the optimal distribution of that air.

Jan 1, 2009

By H Waterer, L Zheng, T Kalinowski

The Hunter Valley Coal Chain (HVCC) consists of mining companies, rail operators, rail track owners and terminal operators, together forming the worldÆs largest coal exporting facility. In 2008, the throughput of HVCC was about 92 million tonnes, or more than ten per cent of the worldÆs total trade in coal for that year. The coal export operation generates around $15 billion in annual export income for Australia. As demand has increased significantly in recent years, and is expected to increase further in the future, efficient supply chain management is crucial. The Hunter Valley Coal Chain Coordinator Limited (HVCCC) was founded to enable integrated planning and coordination of the interests of all parties, thus improving the efficiency of the system as a whole. One of the many planning challenges faced by the HVCCC is that of annual maintenance planning. Different supply chain elements, such as trains, railway track, terminal equipment and load points, must undergo regular preventive and corrective maintenance, leading to significant reductions in system capacity (up to 15 per cent). However good alignment of the maintenance tasks can reduce their impact, and the HVCCC undertakes an annual process to ensure the impact of maintenance on the supply chain capacity is as small as possible. This is achieved in an iterative negotiation process between HVCCC and individual service providers. In the past, maintenance schedule optimisation was largely manual, which for the more than 1000 tasks involved is quite labour-intensive.In this paper the authors describe an approach developed at the University of Newcastle in partnership with the HVCCC to automate this schedule optimisation process. We will discuss our experience in applying exact (mixed integer programming) and heuristic techniques from mathematics and computer science to address the problem. This work is anticipated to lead to new decision-support tools for the HVCCCÆs capacity planning team.

Sep 26, 2011

By M Donatelli, E Grazio, A Heissenberger

The distribution of a contaminant in a bulk mass greatly influences the effectiveness of sampling procedures. Most currently used sampling guidelines for genetically modified organisms (GMO) testing have stringent distribution requirements. Specifically, all these protocols are based upon the assumption that GM material, if present, is randomly distributed. Yet, assuming randomness is risky because the applied sampling plan may not provide an accurate estimate of the content of the contaminant. Despite the general consensus that an evaluation of the possibility of non-random distribution of GM materials within lots is a pre-requisite for the definition of effective sampling protocols, no experimental data on the distribution of GMOs in kernel lots are available anywhere in the world. Additionally, to date there is no distribution-free statistical model to estimate sampling errors, thus making the theoretical definition of optimal sampling technique impossible when randomness cannot be assumed. Here we present preliminary results of the KeLDA project, which is the first study investigating the distribution of GM materials in large soybean lots imported within the European Union. The extensive variability of GM content, observable both within and among soybean lots, indicates that heterogeneity issues cannot be overlooked when defining sampling strategies for large lots of particulate material and that randomness cannot be assumed a priori. A new statistical model free from any distribution assumptions, developed in order to estimate the sampling error associated with different sampling protocols together with the risk of false-negative results, is also presented. The new model, which is applicable to any consignment of particulate material with respect to any kind of contamination, presents two novelties: first, freedom from any distribution assumption; second, the possibility of estimating the magnitude of the sampling error associated with different sampling protocols as a function of specific distributional properties.

Jan 1, 2005

Mineral policy is now generally regarded as a function reserved to government. Government is reponsible for the economic health and progress of nations, and must therefore interest itself in minerals as a basic national resource. Government should therefore identify objectives which it sees as suitable and necessary for the mineral industry so that the industry can play its part in achieving national goals. It should provide the legislative framework and policy guidelines to enable these objectives to be achieved. The essential objective of a national mineral policy should be rational development of the nation's minerals resources. To achieve this, it need not be too formal; broad guidelines are enough. But it must be dynamic, to keep pace with the changing circumstances of the mineral industry in the world scene and the changing requirements of government. It should be flexible, recognising that there is no such thing as a "typical" mineral deposit; above all it should represent the outcome of a continuing dialogue between government and industry. Both government policy and corporate planning need to be formulated on the practical understanding of the potential economic value of the mineral sector and what it can contribute to the nation's prosperity. There needs to be a common understanding of the wide range of the costs of risks that may arise through the exploration and development stages and of the uncertainties affecting ventures at the production stage. There needs to be a common understanding that the size and importance of the mineral sector is determined in the long run by the level of investment in exploration. The development of a continuing understanding between government and industry should lead to the formulation of ground rules which ensure the continuance of a strong industry able to adapt to the changing world scene and make its contribution to national growth and wellbeing.

Jan 1, 1986

We can look at the water treatment and management strategies at some recently commissioned mines and minerals processing sites to see the likely future of water in mining. The future of water in mining will be based on a holistic approach to understanding the site water balance, appropriate treatment, reuse where possible, and environmentally managed discharge where required. This paper describes advanced and innovative water treatment and reuse processes as used by mines and mineral processing operations from around the world. Underground mining can often require dewatering to prevent groundwater seeping into and flooding the mine workings. Mining and processing often accumulates wastewaters in a tailings dam. The mine water can contain contaminants such as dissolved salts, iron, arsenic, manganese, heavy metals and acidic and odorous sulfates. On-site reuse, environmental discharge requirements, as well as community needs for water, drive mine operators to consider the most appropriate water treatment process. Mining water treatment for the future is described using case studies of innovative processes. The case studies include treatment of mine dewatering water for beneficial application from Australian mines, Ballarat Goldfields and Bendigo mining, treatment of produced water from oil and gas projects, and treatment for arsenic removal of tailings water from mining and processing at Goldcorp mines in Canada. Advanced and innovative processes including membrane filtration, reverse osmosis at extreme conditions, advanced biological treatment and water management are all part of these case studies. This paper uses real case studies of advanced and innovative mine water treatment processes to explain and examine the technology and the reasons for designing specific processes. The focus is on innovative processes that may be more widely used in future mining û where the water is used for sustainable environmental discharge or treatment to a quality that can be beneficially used by the mine or the local community.

Jan 1, 2008

By K Zic, P Pickering, P Fraser

Water is a defining feature of the Pilbara. Its management was and remains vital for the pastoral industry which European settlers established when they first came to the Pilbara, and for the mining industry which now dominates economic activity in the Pilbara. Water availability in the Pilbara is, however, problematic. Severe droughts and major floods can occur at close intervals. In response to this uncertainty, the Department of Water undertook a Prefeasibility Study to determine, at a high level, the water requirements and opportunities in the Pilbara region. This paper reports on the outcomes of this study and the water integration opportunities in the region, identifying the sources of water supply and offers possible options for managing this water sustainably for the present and future demand. A range of supply opportunities is reviewed including: dewatering from mining operations, surface water, and desalination. All opportunities were subject to order of magnitude costing, including capital, whole of life and retail unit pricing with preferred options receiving further interrogation through triple bottom line (TBL) analysis to prioritise solutions. Options were also subject to intangible quantification (IQ) including benefits from the reduction of carbon emissions to ensure that the preferred option is based on factors other than just the least cost. Demand analysis was undertaken to identify current and future requirements and were assessed through review and integration of regional and sub regional master plans and consultation with mining, agriculture, industry and the community. The paper concludes that the viability of a Pilbara integrated water supply scheme depends on the development of a financial mechanism involving both government and industry participation models. The agreed scheme formed the basis of a submission to Infrastructure Australia for funding assistance.

Jan 1, 2009

In 1556, Agricola noted that "a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him"(1). In today's world, the owner rarely has the opportunity to visit the mine and, instead of reading about the `nature of the vein' in annual reports, prospectuses, government publications, et cetera he sees the words `reserves' and `resources'. Unfortunately, the subject of reserves and resources has become increasingly complex and Canadians, along with their counterparts in Australia and elsewhere, are still struggling with definitions which will attempt to cover all conceivable circumstances from national or regional resource endowment to the material to be extracted next week from a given stope or open pit bench. The providers and recipients of reserve and resource data are: - Government agencies who are concerned with questions of national endowment, strategic use of raw materials and other questions of public policy. - Stockholders who have a vested interest in the basic assets of their companies. - Financiers who are concerned about the security of their loans. - Regulatory bodies whose function is to protect a frequently naive investor from unscrupulous practices. - Management, at head office and on-site, who need basic information for decision-making, whether it be to open up a new mine, expand or close an existing operation, acquire or merge with other entities, or, more mundanely, for routine mine planning. To satisfy their demands with unanimously accepted definitions is a formidable task but, it is my impression that, little by little, a concensus appears to be growing within the industry.

Jan 1, 1987

By Daniels E. J, Morgan W. A

In response to the increase in consumption of galvanised steel for automobiles in the last decade and the problems associated with remelting larger quantities of galvanised steel scrap, a process is being developed to separate and recover the steel and zinc from galvanised ferrous scrap. The zinc is dissolved from the scrap in hot caustic using anodic assistance and is recovered electrolytically as dendritic powder. The dezinced ferrous scrap is rinsed and used directly. The process is effective for zinc, lead, and aluminum removal on loose and baled scrap and on all types of galvanised steel. The process has been pilot tested for batch treatment of 900 tonnes of mostly baled scrap. A pilot plant to treat continuously loose scrap, with a design capacity of 48 000 tonnes annually, has been in operation in East Chicago, Indiana since early in 1993. The first 450 t of scrap degalvanised in the pilot plant have residual zinc below 0.01 per cent and sodium dragout below 0.01 per cent. Use of degalvanised steel scrap decreases raw materials, environmental compliance costs, and opportunity costs to steel- and iron-makers. Availability of clean degalvanised scrap may enable integrated steel producers to recycle furnace dusts to the sinter plant and EAF shops to produce flat products without the use of high quality scrap alternatives such as DRI, pig iron, or iron carbide. Recycling the components of galvanised steel scrap saves primary energy, decreases zinc imports, and adds value to the scrap. The quantities of zinc available by the year 2000 from prompt and obsolete automotive scrap will approach 25 per cent of zinc consumed in the major automotive production centres of the world. Zinc recycling from galvanised steel scrap, either before or after scrap melting, will have to be Implemented.

Jan 1, 1993

This presentation addresses the sources and weighting of project risk in coarse gold deposits with relevance to experiences at the Ballarat mine and Castlemaine goldfield. With sample representation and reliability often a source of great error in the resource estimation of coarse gold deposits, it follows that this matter should be of greatest risk to a mining project - but is it? What are the costs and efforts required to best quantify the sampling error due to nuggetty effect? After all, the main problem in Victorian gold mining ventures in the current decade is not the amount of gold available, but defi ning which portion of it can be converted to Ore Reserves or more so profitable gold bars. The author postulates that greater risk to the project lies in the geological interpretation and matching resource spatial parameters to mining methods, than the degree of uncertainty related to grade due to nuggetty gold. Recent experience in the Victorian goldfi elds is that the investor market has already severely discounted Mineral Resources reported in accordance with The JORC Code - so if they don't believe in the capacity to upgrade the resource why should we? To this end, Castlemaine Goldfi elds Ltd at its Ballarat gold project does not intend to estimate its gold mineralisation for public release, instead choosing to focus on the geological interpretation and mine planning elements. So with coarse gold deposits, is your Mineral Resource reported with The JORC Code a glass half full or half empty? Our mining forefathers in Victoria had no predictive tools which could define resources to any degree and yet were successful. By over emphasis on the definition of mineral resources and particularly the sampling error, are we ignoring the basics of cost control, solid geological interpretations and maximum mining flexibility. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Aug 1, 2010

By P Cameron

The Julius Kruttschnitt Mineral Research Centre (JKMRC) has recently commercialised a variety of new products for the mining industry through its commercial division (JKTech). Although the products cover a wide variety of niche applications, a common thread runs through the Research, Development and Commercialisation (RD and C) process: they have emerged from industry sponsored projects. The development history of JigScan (a control system for the mineral-processing jig) is a good example of how this RD and C process works in practice. It involves building mutually beneficial partnerships between the JKMRC and the mining industry through several incremental projects with one or more industry sponsors. All research projects have objectives to demonstrate but these projects also feature a degree of product development to actively encourage and support the longer-term vision for the mature commercial technology. The process to develop JigScan as a commercial product worked because each incremental project recovered costs, provided an immediate benefit for the sponsor and contributed to the longer-term development objectives of the JKMRC. Integrating development with research need not greatly increase the cost of research objectives generally provides a more robust research outcome for the sponsor and greatly reduces the overall development risk. Successful projects often feature industry mentors actively participating in the RD and C process. Additional funding from government appears to be easier to obtain when such close partnerships with industry are apparent. Finally, the business structure of the JKMRC within the University of Queensland ensures that commercial outcomes, developed within the contractual arrangements of the underlying RD and C projects, are used to benefit and support further RD and C with the mining industry. This paper tells the story of the development and commercialisation of JigScan, and draws conclusions about this kind of RD and C model.

Jan 1, 2000

The æProfit Driver ModelÆ is a tool which builds costs from first principles and integrates revenue, costs and physical mining parameters and, hence, can quantify the impact and leverage on profit. In this paper an æexample mineÆ has been created to represent a typical Australian Open Cut Coal Mine. This has then been input into the Profit Driver Model to allow different variables to be tested. A series of variables were tested to determine which ones had the highest impact on profit and results are useful to management as a guide to the areas in which they can focus effort to achieve better profitability. Whilst the highest profit drivers are those external to the control of management and include selling price and exchange rate, the next most sensitive are those variables related to the geology of the mine and the mining method. These included coal quality, yield and strip ratio. Site management has some control of these. For example, the ability to vary the sequence of mining or improve the yield by a more efficient coal washing process. The efficiency of the workforce and management has similar impact to the mining variables. Finally, there are the supply variables, such as fuel, labour and explosives which are the least sensitive although, cumulatively, still significant. Each mine is different and the results of the example mine will not apply to all mines. However, the approach taken is universal and the tool illustrates a simple method to quantify the profit impact when changing variables. The benefit of the approach is the short time taken to get a set of results. This allows the more detailed and time consuming work to be more focused. The results illustrate that management has a significant influence on profitability.

Jan 1, 2000

In Finland fogging in mine ramps is a common problem. Fog forms when warm and humid exhaust air moves upwards the ramp, where the skin temperature of surrounding wallrock decreases to about 10¦C. Changes in fog thickness and lengths of fog-filled parts of the ramp depend at least on climatic conditions outside, diesel equipment usage in the mine, and the length of working sequence at a time. In this study fogging problems in three different mines, namely Orivesi mine, Louhi mine and PyhSsalmi mine, with different ore types, different layouts, and different depths are presented and compared. All these mines use diesel equipment and the ramp is used as an exhaust air route. In two of these mines the ramp is used as a haulage road and in the other for supply and repairing, checking, and surveying purposes. Measurements of humidity, temperature, air velocity, and dust content were performed in these mines. The measurement results, as well as field observations are presented, compared, and discussed. The results show that fog is observed in areas with high relative humidity values when air temperature and dew point temperature are less than 3¦C apart from each other. Air velocity values were high in many areas. In addition, measured particle concentration values were mainly high in areas, where fog was observed. A short literature review of recent fog formation studies is also presented. It demonstrates the complicacy of the fog formation process. Similarities and differences concerning fog problems in the ramps are found and presented. As already a lot of new information is gained, the continuation of research is considered plausible to find more economical ways of solving and preventing this problem in the future.

Jan 1, 2005

Just as Australia is part of the Pacific Rim, so the Pacific Rim should be viewed as part of the whole world. That applies in particular to that scarce commodity û money. There are five main factors of production in any mining development û mineralisation, materials, manpower, management and money. LetÆs focus on the upstream input û mineralisation, and the downstream input û money, especially in the area of communications. Unknown to many, the Competent Person reporting on Mineral Resources and Mineral Reserves has a direct and unavoidable impact on the companyÆs financial statements û the profit and loss account and balance sheet. With respect to reporting of the major asset of most mining companies û the resources/reserves û investors are getting a better deal now than at any time in memory as regards flow and adequacy of information. Australia has been a world leader in this regard. The outlook is for even more informative and useful reporting. The more rigorous reporting requirements for Exploration Results and Mineral Resources/Reserves, which have become a worldwide phenomenon over the last five years, will continue. This will be positive for the mining industry as a whole and for Australia in particular. However competition for the scarce investment dollar will also increase. Put simply, mining has many competitors, unconnected with mining, for the capture of the investment dollar. It behoves all participants to recognise that there are three investment factors which influence strongly the willingness of investors to put money into mining. These are Confidence, Credibility and Consistency. AustraliaÆs investment image stands high in these three respects, but the competition will continue to grow. AustraliaÆs lead must be maintained. However, some investment decisions should not necessarily be based on fundamental, quantifiable facors. Some of these are outlined.

Jan 1, 2004

The paper deals with the taking of soundings in connection with coal mining operations under part of the Pacific Ocean adjoining John Darling Colliery.INTRODUCTIONIn the early days of mining in the Newcastle District there did not appear to be any definite law specifying the limits to which mine workings, other than certain borings, could extend under tidal waters.As time went on, a figure of 120 ft. was fixed as the minimum thickness of strata between the roof of the seam and the sea bottom; beyond this mining operations are disallowed. The laws relating to working coal under tidal waters are as follow:-The minimum width of pillars to be left shall be eight (8) yards and the maximum width of bords or other excavations shall be six (6) yards, but the lessee may at his discretion increase the minimum width of the pillars or decrease the maximum width of the bordsor other excavations so as to increase the general safety.The eight (8) yard pillars shall be left unwrought.In on-road of every pair of Winning-off or leading headings, a bore shall be kept going ten (10) feet in advance for the purpose of foretelling the presence of any fissure, wash-out, open joint, fault, dyke, or otherwise, and all winning-off headings shall be driven atleast one hundred (100) yards in advance of the working bords.The most accurate and trustworthy information shall be obtained by the lessee not only' of the depth and character of the ocean bed, river, lake, or estuary deposit, but also of the strata overlying the coal seam.When working under the ocean, strata shall be bored through and proved a minimum thickness of thirty (30) feet at the face of the leading headings or levels immediately such headings or levels are under the ocean, and...

Jan 1, 1947

COAL constitutes such a gigantic item in modern industry, either for direct heating, production of coke for smelting, or for the generation of power, that its quality and price play a very significant part in economic industrial progress. Australia is still a very young country industrially, and is groaning under many disabilities compared with competitors overseas, not the least of which is the quality of coal. Linked with the word "quality" should be that of "utility," for high-ash content prevents efficient utilization of the fuel.The marketing of good quality coal is a very important matter indeed, and if industry in Australia is to progress in the way that it should, this matter must receive keen attention.New South Wales, above all the other Australian States, has been blessed by nature with vast coal-fields, from which fuel is shipped to every State, and provides the base for power for most of our railroads and industries.Experts frequently refer to the fact that in some districts only partial extraction of thick seam coal is being made, without a care or thought for the future. Ranking next in importance to this is the fact that much of the coal is being carelessly marketed.Very few collieries in Australia are equipped with coal-washing plants for dealing more particularly with small coal grading which most industries require, and to which coal producers as a whole pay the least attention. In England each year nearly20,000,000 tons of coal is being water-washed before sale, and is marketed as a fuel of far greater utility once it has been freed from extraneous ash.Investigation proves that a great many pits in New South Wales are marketing coal (more particularly small coal) containing a considerable quantity of extraneous ash, due to the admixture...

Jan 1, 1926

The desire for minimising impacts of mining activities on the environment, and in particular, water resources; is usually tempered by the costs and practicalities of implementing æbest practiceÆ measures. This paper briefly discusses the theoretical and practical options for water management for typical mines and quarries in a range of environments to assess if adverse impacts can be completely eliminated or at least be perceived as doing so. The regulatory requirements for water resources management are usually an essential part of mine planning and operations that can be a primary focus for all stakeholders. As such they can distract attention from implementing best practice in water management for the benefit of the environment and the community for altruistic reasons that have a long-term benefit for the mining industry as a whole. Cost-effective options for supply, demand and quality management of water that comply with basic regulatory requirements are readily available. Making a mine æinvisibleÆ in a practical sense, in terms of impacts on water resources would require eliminating potentially contaminated discharges, minimising demand, maximising reuse and recycling and putting back a healthy proportion of the clean water that is taken out of the natural environment for use in mine operations. This may sound simple enough and there are many well-known standard approaches that are usually applied. But which are the most effective, and who benefits? New approaches to water management are becoming more affordable and can benefit the bottom line as well as the environment, but can they make a mine ædisappearÆ? The perception of whether a mine is æinvisibleÆ in terms of its impacts on water resources is as important as the actions taken to try to achieve such an objective. The viewpoints and thresholds of perceptions of the different stakeholders are therefore relevant to how ævisibleÆ mining activities become.

Jan 1, 2006

The recent trend of installing flotation cells with volumes as large as 200 m3 in concentrators is driven mainly by economic considerations such as lower capital, operating and maintenance costs. Despite the economic advantages, the metallurgical benefits from these large cells have not yet been fully realised by the industry. This is mainly due to the lack of understanding of cell operation, viz cell mixing and hydrodynamics, gas dispersion and froth transportation behaviour in large cells. There is still no rational basis for selecting optimum cell operating conditions and down-the-bank operating profiles. The relationship between cell operating conditions and metallurgy is not well established. This has resulted in poor utilisation of cell capacity in many operations. The present trend of installation of fewer cells in a bank requires each cell to be operated very efficiently. Optimisation of cell operation provides an opportunity for significant metallurgical improvements in a flotation circuit with minimal capital expenditure. Extensive work on optimising of cell performance has been carried out at various Teck Cominco operations in Canada, Peru and USA. Three different levels were involved in this work. The first level was aimed at identification of cell operating conditions for optimum mixing and hydrodynamics, gas dispersion, entrainment and froth flow behaviour in individual cells. The objective of the second level was to identify the optimum bank operating profile for cells down the bank in a circuit. The third level then focused on controlling these cell operating conditions and bank operating profiles for tighter control of concentrate grade and recovery for optimum bank metallurgy. This paper presents some of the major findings at all three levels and demonstrates the importance of each level in optimising the performance of flotation banks installed with large cells.

Jan 1, 2005

By S Brochot

In cases where coarse gold is present in a deposit, it is usual to use the screen fire assay (SFA) method to analyse the samples. There is no doubt that this method is more accurate than the standard fire assay (FA) and reduces the risk to have a systematic bias. Nevertheless, the difference between the analytical errors of both methods can be glossed over when the overall sampling error is added to obtain the measurement error. In that case, the advantage of the SFA cannot justify its higher cost.The current paper attempts to address this question in the case of a gold ore deposit with visible coarse gold in various sampling situations (drill core sampling in exploration, blasthole or chip sampling in mining exploitation). The overall measurement error is estimated taking into account the analytical error and all the sampling error components following the Pierre GyÆs theory of sampling.Firstly, only the last sampling stage is considered when the pulverised sample is processed either to obtain one analysis sample for a FA or to be screened and subsampled for a SFA. The calculated measurement error clearly shows the advantage of the SFA specifically in presence of coarse gold. Secondly, the half core sampling is studied to explain the observed discrepancies when controlling the second half core. Finally, the blasthole sampling is treated using in situ heterogeneity models to show that the relative advantage of the SFA is hidden by the large overall sampling error.In conclusion, the choice of the assaying method is discussed at the light of the overall measurement error and in accordance to the analysis objective.CITATION:Brochot, S, 2012. Standard fire assay or screen fire assay? Application of the overall measurement error approach to choose the most appropriate method, in Proceedings Sampling 2012 , pp 135-142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By J D. van Wees

Preliminary project evaluation is relevant to the evaluation process of the decision makers (or executives) prior to making the critical business choices. Important to the assessment is an integrated sensitivity, scenario and risk analysis at every stage of a mining project. This should include the evaluation of different options taking into account uncertainties. Construction of interactive financial computer models where each element is functionally integrated into a fully integrated life-cycle allows rapid and automatic study of the sensitivity of each element through changes in the value of an input. The scenario analysis is the effect of changing more than one input at a time, organised through scenarios in a decision tree. Risk analysis is an integrated analysis of the effect of all uncertainties of the parameters, using Monte Carlo simulation. Key to the asset decisions process is that the decision maker is provided with the essential integrated decision information. We have clustered this information into several scenario groups. Within each group, two levels of uncertain information are distinguished: discrete scenarios critical for the decisions; and remaining uncertainty within the scenario (risk analysis) which can be modelled by continuous probability density functions (pdfÆs). For an asset, the relevant scenarios in each group and the associated continuous pdfÆs need to be defined. When the scenario groups and associated pdfÆs have been defined for the asset, the decision process can be started by structuring the different scenario groups in a Scenario Tree. A Scenario Tree contains decision and end nodes. Each end node corresponds to a completely defined mine project or asset model. The calculations for each end node result in a set of stochastic realisations for the reserves, production forecast, cash flow, and profitability indicators (NPV, IRR, DPR). Thus, a deterministic and fully probabilistic multi-commodity analysis tool is provided to investigate the sensitivity and robustness of decisions.

Jan 1, 2003