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Present value maximisation studies are a useful aid in enhancing the economic performance of open pit mining operations. Maximising present value helps to reduce the risk of financial failure. Maximisation of present value also means that the capital invested is being used most efficiently. A characteristic step in determining the present value of an open pit mining operation is to set out the sequence in which increments of material (ore of various grades and waste rock) are mined. Traditionally, present value maximisation has been performed by selecting a cut-off grade for each increment so as to maximise the present value of the total operation, by an iterative process using computers. Kenneth F Lane has developed a method and applied it to many mining operations. An alternative method for determining the maximum present value of an open pit mining operation is given. In this method the maximum present value is determined by working backwards from the end of the operation life, progressively asking the question of each increment `what cut-off grade maximises the the present value at the start of mining of that increment?' The method allows calculations to be performed by a `spreadsheet' package. Present value determinations are characteristically performed under constant conditions (eg prices, costs) throughout the operation life. Unfortunately real life circumstances are rarely constant, with the costs of mining inputs rising at variable rates. The prices received for mineral products have been shown to broadly trend downwards with time in real terms. Treatment of such changes in the determination of the maximum present value of an operation is discussed.

Jan 1, 1994

In order to maintain an accurate survey underground, it is first necessary to connect all shafts used for the transferring of the survey to the levels below by a precise surface survey.This has been achieved at Mount Isa by a careful triangulation survey with stations adjacent to those shafts most suitably located for transferring the survey below.The precedure used is described herein.The Weisbach triangle commonly used is obtained by reading to swingirig wires, the theodolite being placed in line with them as nearly as is possible. The surveyor at the surface places the wires in the shaft as far apart as the size of the shaft will permit, with sufficient space between the wires and walls to ensure their swinging freely. The far wire is fixed in position, while the near one is movable by means of fine adjusting screws to facilitate its being brought into line with the fixed wire and the theodolite. When this is done the surveyor at the lower level is advised by pre-arranged signals and the survey can then commence.The surface portion of the survey is simple; all that is necessary being to read the angle from the backsight to the wires, measure their distance from the theodolite, and keep a check on them throughout the survey to make sure that no movement takes place.The lower portion of the survey is more difficult, the surveyor first qf all having to place his theodolite as nearly as possible in line with the wires.

Jan 1, 1953

By C J. Noack, P B. Ganza

The concept of large trucks underground has been around for some time. While the road train concept is gaining momentum, there are underground mining applications where these trucks have not been suitable. Unfortunately few of the ægreenfieldsÆ projects that are most suited to the road train concept have come æon lineÆ since the underground road train was first introduced to Australia in 2001 so that the trucks have generally been adapted to existing operations. As at December 2004, there were 17 road trains operating underground in Australia, one being rebuilt and one under construction. This paper addresses the necessity for the mining industry to have an integrated ore transport system that starts at the underground load haul dump unit (LHD) in the stope production area and finishes at the crusher feed at the processing plant. Chute and orepass designs are investigated, as well as feeders to determine the best load and haul system for large-scale trucking. The paper also discusses potential developments in the large truck scene. The paper highlights the cost and productivity gains by introducing large trucks and associated integrated ore transport systems underground. While 400 vertical metres was seen as the limit of vertical hauling in the 1970s, one kilometre is a common discussion point for trucking limits today. In real terms the cost of underground trucking (including ownership costs) has decreased from $1.50 - $2.00/t.km in the mid-1990s to $1.00 - $1.20/t.km at present.

Jan 1, 2005

Reservoir Engineering has developed into an art. One phase of this art is forecasting the futi. perf ormance of oil and gas reservoirs for property valuations. A discussion of the necessity for oil property valuation isgiven. A brief 'discussion of the four most common methods is included and the engineering method is explained in more detail. As an example of oil property valuations, a producing oil lease in Shackelford County, Texas, USA is evaluated.' The recommendations and conclusions arrived at frun the results obtained are presented.

Jan 1, 1962

By Dawes S

Efficient roof control in colliery operation is a factor that must be maintained for· the maximum reQovery and economic extraction of the mineral. It must be carefully considered in each of the following stages in the life of a mine.1. The primary development and the first working of the mine.2. The maintenance of access roads, intake and return airways.3. The extraction of pillars.FACTORS IN ROOF CONTROLThe main objects of roof control are: The support of the roof in working places, the relief of roof pressure from the workings during pillar extraction, and in some instances the prevention of subsidence of the surface.The support of the roof during development operations and first working, and the subsequent maintenance of these is influenced by:-1. The depth of the seam below the surface.2. The thickness of the seam.3. The dip of the seam.4. The condition of the roof and floor.5. The method of extraction-mechanical or by hand.6. The method of. working-Iongwall or bord and pillar.7. The availability of material.As a general rule, the pressure exerted by the superincumbent strata may be taken as one pound per square inch for each foot of cover, and the crushing strength of coal as 1,500 to 2,000 lb. per square inch; this, of course, varies, but from these figures it may be assumed that seams below 2,000ft. in depth are liable to crush. If any part of the seam is removed, added weight is thrown onto the remaining coal. It is therefpre essential that for effective working this extra weight must be removed or supported as soon as possible.The outstanding principle in the support of mining excavations is to ensure that the supports are set as soon as possible after the natural support has been removed.Where a system of bord and pillar is applied, the early setting of supports reduces the extent to which the roof bends, thereby reducing the liability to ·tension fractures at the centre of the road.

Jan 1, 1947

In 1953, Dr N Fisher of the Bureau of Mineral Resources, acting on behalf of the Society of Economic Geologists, which is considering the sponsoring of a uniform system of nomenclature for ore reserves, enquired from The Australasian Institute of Mining and Metallurgy whether it had ever considered this subject and particularly whether it had ever set up any standard definitions or specifications with regard to ore reserves.As this had not been done, but was thought to be desirable, the Council of The Institute appointed a Committee consisting of H H Dunkin, Associate Professor of Mining Engineering, University of Melbourne (Convenor); E A Rudd, Professor of Economic Geology, University of Adelaide; J D Campbell, Chief Geologist of Western Mining Corporation; and the writer, to consider the report on this subject.In December 1953, the Committee submitted its frrst report to the Council and this report (reproduced here as an Appendix) was widely circulated among member companies and engineers, with an invitation to comment on the proposals. A large number of replies was received and studied.After studying the replies the Committee issued a second report, in part as follows:From these replies we have learned that the suggestions made in the frrst report of the Committee are unacceptable to most of those interested, on one or all of the following grounds:a. number of categoriesb. defmition of categoriesc. nomenclature.It is also apparent that all alternatives suggested in the various replies would likewise be unacceptable to the majority of those replying.As a result, we have come to the conclusion that neither this Committee nor any other could at present and in the present state of opinion on the subject make recommendations regarding classification and nomenclature of ore reserves which would be acceptable to a sufficiently large proportion of members.It seems to us now that the objective of a widely applicable and acceptable system of classification and nomenclature, one that could be endorsed by The Institute and ultimately become standard practice in the industry, requires more than compromise between present conflicting views... it requires first a foundation of substantial agreement on the essential facts, implications and range of ore reserve estimation. This does not yet exist and it is evident that much additional analysis of present practice and opinion must be undertaken before any further systhesis is attempted.

Jan 1, 1994

IT is generally accepted that for transport of coal underground from different collecting stations, the system of endless rope haulage with remote control is not only one of the safest and most economIcal, but is also one of the most'efficlent in dealing with output.When the coal measures lie in regular planes, the work of laying down such a haulage presents no difficulties. When, however, the dip of the measures is Irregular, or dislocated by faulting, the management is faced with the problem of constructing vertical curves of such a radius that the sag of the rope will correspond with the road bed, and thus obviate the danger of the rope rising and throwing the skips off the track.The direction of the main roads for haulage purposes being ascertained from the plan of the royalty to be worked, the faults or dislocations in the seam are determined for these roads with the greatest possible accuracy by means of bore holes from the surface.From the data thus obtained the haulage road can generally be so graded that the rope will keep on the floor during haulage operations, although the grades may in places be synclinal.The writer confesses that he knows of no accurate formula for calculating the sag of the rope under varying tensions and so determining the safe radius of the curve, and he had to depend upon past experiences under somewhat sImilar conditions.The accompanying sections illustrate a case where the writer has recently installed an endless rope underground approximately 5000 ft. in length, from the foot of a tunnel in which an endless rope delivers the output to the screening plant, and having to negotiate, first a 400-ft. downthrow fault, and later a 32 ft. upthrow.

Jan 1, 1927

Permian ultramafic and associated rocks form a belt in East Nelson and contain widespread, but minor, chromite and copper mineralisation and some mining was carried out last century. Since mining ceased, about 1910, little mapping of the belt has been carried out although its origin has been debated vigorously. Recently it has been inferred to form part of a ophiolite sequence, which has been tectonically disrupted to form a melange, and several 'plate -tectonic' models have been proposed. Mapping in the central part of the belt has shown that mTlanges are to the east of the ophiolite sequence. Faulting is widespread so that in anyone section part of the sequence may be absent. Some of the faulting is difficult to recognise and probably took place during or soon after the sequence accumulated. Other faulting is clearly of Cenozoic age and includes major NNE striking faults, with large horizontal displacement, and approximately east-west striking faults with almost entirely vertical movement. The writer agrees that 'plate tectonics' could provide an acceptable explanation for the origin of the ophiolite sequence but the models so far proposed do not take into account the nature and field relationships of the rock units present. Copper Mineralisation is largely controlled by the younger faults, particularly those striking about north-east, and is largely confined to the western part of the ultramafic rocks particularly where slivers of the volcanics of the adjacent Lee River Group are enclosed. Mineralisation, along NNE striking shear zones, has recently been found in the volcanics some distance from the ultramafic rocks. The chromite mineralization is in the form of primary layering in the basal part of the ultramafic belt although in places it has been concentrated into lenses probably during serpentinisation.

Jan 1, 1977

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 T Hodgkin

The WA Goldfields is a highly productive gold and nickel mining area, but is arid with highly saline groundwater. Groundwater is widely used to supply process water to mines in the region but high groundwater salinity, commonly exceeding 50 000 mg/L TDS, tends to increase processing costs, limit end uses for the water, cause problems with disposal and potentially increase impacts on a sensitive arid environment. The area has low rainfall (200 - 270 mm/year) but run-off, particularly during cyclonic events, is high. Our experience suggests that stream flow from catchments in the area can produce a divertible yield of 8 - 17 ML/km2/year. An evaluation of stream flow harvesting using AnglogoldÆs Jubilee Pit predicted that 1000 ML/year of good quality water could reliably be supplied to the Sunrise Dam Gold Mine. Because of high rainfall variability, it is likely that an alternate source of water supply will be necessary when operating a surface-water harvesting scheme in the WA Goldfields. However, a combination surface/groundwater supply could have substantial cost, operational and environmental benefits compared to traditional supply systems that utilise groundwater only.

Jan 1, 2003

By M P. Schwarz

In recent years, computational fluid dynamic (CFD) modelling of mechanically stirred flotation cells has been used to study the complexity of the flow within the cells. In CFD modelling, the flotation cell is discretised into individual finite volumes where local values of flow properties are calculated. The flotation effect is studied as three subprocesses including collision, attachment and detachment. In the present work, these subprocesses are modelled in a laboratory flotation cell. The flotation kinetics involving a population balance for particles in a semi-batch process has been developed. From turbulent collision models, the local rates of bubble-particle encounters have been estimated from the local turbulent velocities. The probabilities of collision, adhesion and stabilisation have been calculated at each location in the flotation cell. The net rate of attachment, after accounting for detachments, has been used in the kinetic model involving transient CFD simulations with removal of bubble-particle aggregates to the froth layer. Comparison of the predicted fraction of particles remaining in the cell and the fraction of free particles to the total number of particles remaining in the cell indicates that the particle recovery rate to the pulp-froth interface is much slower than the net attachment rates. For the case studied, the results indicate that the bubbles are loaded with particles quite quickly, and that the bubble surface area flux is the limiting factor in the recovery rate at the froth interface. This explains why the relationship between flotation rate and bubble surface area flux is generally used as a criterion for designing flotation cells. The predicted flotation rate constants also indicate that fine and large particles do not float as well as intermediate sized particles of 120 - 240 ¦m range. This is consistent with the flotation recovery generally observed in flotation practice. The magnitude of the flotation rate constants obtained by CFD modelling indicates that transport rates of the bubble-particle aggregates to the froth layer contribute quite significantly to the overall flotation rate and this is likely to be the case especially in plant-scale equipment.

Jan 1, 2005

By G Harbort, T Georgiev, M Phillips

Phu Bia Mining Ltd, a subsidiary of Pan Australian Resources Ltd owns and operates the Phu Kham copper concentrator located in the Xaysomboun District, Lao PeopleÆs Democratic Republic. Construction and commissioning of the 12 Mt/a copper concentrator and associated facilities was undertaken by Ausenco Ltd and handed over to Phu Bia Mining Ltd in April, 2008. The first copper concentrate was produced in April 2008 and the ship carrying the first shipment of copper concentrate set sail 27 July 2008. Nameplate mill throughput was reached in August, 2008 when 1 020 000 dmt of ore was treated in the milling and flotation circuit. The Cu-Au mineralisation is contained in skarn and stockwork mineralisation and is interpreted as a distal expression of a conventional porphyry copper-gold system. Copper mineralisation is principally in the form of chalcopyrite with lesser bornite. Gold occurs as small grains, typically associated with copper minerals. In the upper portions of the orebody, oxidation and water table movements have resulted in near surface leaching of the copper and below the leached zone, supergene enrichment resulted in chalcocite mineralisation. The circuit operates with a semi-autogenous grinding (SAG) û ball mill circuit, feeding a bank of OK200 rougher cells. Rougher concentrate is reground in an IsaMill prior to entering a cleaner circuit consisting of three stages of cleaning and one stage of cleaner scavenging. The concentrate typically assaying 24 per cent Cu and 6 - 7 g/t Au is hauled for over 1000 km across the border to the Port of Sriracha in Thailand, and stocked in sheds at the wharf from which it is shipped to various Asian smelters. This paper discusses the successful commissioning and ramp up to design tonnage and metallurgical performance. In addition, a program to optimise both the comminution and flotation circuit is detailed with reference to grinding efficiency, flotation residence time and size by size mineral recovery.

Jan 1, 2009

IT is intended herein: to make some brief comments on geophysical 'work in general and on the various methods, and then to refer to that branch which, perhaps, is of the greatest importance and interest to the metalliferous mining engineer, i.e., the variousmethods of electrical prospecting.The term geophysics was originally applied to those larger physical and geodetic studies and methods concerned with such purely scientific subjects as the investigation of the true figure of the earth and the determination of the stability relations resultingtherefrom. Applied geophysics and geophysical methods of prospecting are concerned primarily with the search for, and investigation of, useful mineral deposits concealed within the earth's crust and not readily detectable by the normal methods employed bythe mining geologist and prospector. The methods employed have been devised as a result of co-operation between mining men, geologists, and physicists, and, although steady progress has been made during the past 20 years or so, it is within the last four orfive years that the importance of these methods has been acknowledged by the mining world in general. Although many of these methods are still in, or have barely emerged from, the experimental stages, a steadily increasing list of important discoveries is attributable to their employment-more particularly in Europe and America than elsewhere. The various methods have each their own limitations regarding the class of work they can undertake, and no one method is capable of general application. The greatest care should be exercised in selecting the method, or methods, to be employed in any particular area, the...

Jan 1, 1928

By G W. Croft, L E. Krause

The current copper ore handling systems in use at Xstrata CopperÆs Mount Isa Copper Operations are up to 33 years old and have hoisted over 160 Mt at a rate of around 6 Mtpa. The mineÆs production profile is increasing in line with the optimum life of mine plan to over 6.6 Mtpa, which requires a system utilisation and reliability above that previously achieved. Copper ore is hoisted up the U62 shaft, which forms the central part of the U62 ore handling system. In theory this system can cope with the duty planned if the bottleneck is only the U62 winder. To achieve the planned production rate will require increased focus on reliability of each component in the ore handling system so that ore is available at the shaft for hoisting whenever the shaft is available, and the shaft is available for the maximum practical time. Increased availability will be achieved through the outcomes of the study of each component in the U62 system, and the internal ore handling systems that deliver ore from as far as 2 km laterally and 700 m vertically from the U62 shaft. The true capacity of each component is being determined and current performance is being measured with the aim of improving performance through root cause analysis and engineering out the causes of delays. The program began in March 2004 and this paper describes the progress achieved as of April 2005.

Jan 1, 2005

By Robson L. C

The developing countries whether they be in Africa, Asia or the Pacific, are a potentially vast market for the technologies of the more developed countries.Conducting business in the less developed countries however requires a keen understanding of their culture. A keystone of the culture of the Pacific Island Nations is kinship with the land. Without an appreciation of the implications of the land rights debate, a business venture into these countries is likely to be delayed or even doomed to failure.The European heritage, with its notions of private ownership of land, have frequently been a stumbling block to a proper understanding of the concepts of customary lands. According to our laws, ownership of land confers a number of definite rights: principally the right to use the land, the right to exclude others from its use, the right to transfer it and the right to receivF income from the property independent of use.

Jan 1, 1990

This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

The liquid products of low-temperature carbonisation of coal are of variable composition, very much influenced by the rank and type of coal, and process parameters. In general the tar contains a high proportion of phenols and a low proportion of bases. The neutral oil is more analogous to a thermally cracked petroleum oil than to a high temperature tar. Present practice and possible future trends in the production of chemicals and liquid fuels from low temperature tar are reviewed in the light of recent work on the detailed composition of the tar The phenols and aromatics will probably continue to be of most value, with the bases a useful source of spec- ialty products. However the high aliphatic content of the neutral oil (particularly 1-olefins and n-paraffins) is bound to receive more attention for chemicals as well as for liquid Fuels.

Jan 1, 1969

By P W. Cleary, M D. Sinnott

Cross-belt cutters are commonly used for sampling coal. They are generally cheaper than falling-stream cutters, particularly when a cutter must be retrofitted. The major mechanisms thought most likely to lead to sample bias are being investigated by discrete element modelling (DEM) in a project funded through the Australian Coal Association Research Program. This paper describes a benchmark run and the current direction of research.

Jan 1, 2008

The impact of moves to introduce Abori- ginal land rights was felt in the Northern Territory as early as 1972 when the Federal Government froze the processing of all appli- cations for mining interests over vacant Crown land. The Aboriginal Land Rights (Northern Territory) Act was finally proclaimed on Aust- ralia Day 1977 and since that date the mining industry and the Territory legislature have struggled to make the Act work. Despite these efforts long delays have been experienced by those required to negotiate mining and explor- ation agreements under the Act. In fact explor- ation on Aboriginal land has been effectively stiffled since the introduction of the Abori- ginal Land Rights Act. The Northern Territory government and the mining industry have both sought amendment to the Act to remedy some of its more onerous problems. These efforts have generally been fruitless. Some of the recommendations put forward by Mr Justice Toohey following his recent review of the Act would provide relief in some important areas. However, any such improvements are more than offset by a number of Mr Justice Toohey's recommendations which would severely disadvantage the vast majority of Territorians. A recent survey of mining companies seeking exploration licences over Aboriginal land indicates that many of the existing diffi- culties could be overcome without significant amendment to the Act but rather by the adoption of a positive administrative approach by the Land Councils. It is now up to the Commonwealth and the Land Councils to demonstrate that their Act can work without crippling the Northern Territory economy and its mining industry.

Jan 1, 1984

By Collier D

The topaz resource at Torrington in northern N.S.W is currently the subject of a joint research and development programme managed by Pacific Copper Ltd, This programme has culminated in a pilot topaz calcination plant, located at Parramatta, which, through its operation, will establish the commercial viability of developing this mineral as an industrial raw material for both the refractory and fluoride chemical industries.

Jan 1, 1989