Search Documents

This paper examines the integration of risk management into the design philosophy of a project to produce a æzero baseÆ design, which targets a minimum capital cost without adversely impacting upon the operating costs of the resulting plant. The concept of zero base design is similar to zero base budgeting and the desired outcome is to improve the economy of the design. Design requirements are questioned in an attempt to distinguish preference, prejudice and myth from necessity. Where doubt remains a risk management approach is adopted. The key to risk management is not risk elimination, but risk mitigation. Risks can be managed by designing them out, but often this involves considerable capital cost penalties and it is more attractive to accept the risk and design an operating strategy to deal with it. The paper discusses this with some examples of real world risk mitigation strategies that resulted in substantial capital cost savings. The paper concludes that as much as a quarter of project capital costs can be eliminated by a combination of zero base design and carefully crafted risk mitigation strategies.

Jan 1, 2004

The paper examines the value of very small-scale indigenous gold mining operations to developing countries. The paper looks particularly at this type of activity in two neighbouring countries, Papua New Guinea and the Philippines, considering technical, economic, social and environmental aspects.

Jan 1, 1990

By D Craw, P Upton

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Otago Schist belt of southern New Zealand hosts widespread orogenic gold deposits. Erosion of these orogenic gold deposits has led to the formation of numerous placer deposits distributed across and beyond the host schist belt. Numerical modelling of crustal scale deformation and geomorphic evolution has defined the key tectonic features that have controlled the severance of detrital gold deposits from their sources. Tectonic activity over the past 20 million years, during development of the modern Pacific-Australian plate boundary, has severed links between some placers and their sources. Detrital gold was transported south from the Otago Schist source region in two different river systems in the Miocene. Mesozoic orogenic gold deposits shed gold into rivers that flowed to the south. These rivers were terminated by the rise of north-west-trending basement ridges at the boundary between weak schist crust and strong greywacke crust, and the ridges were controlled by pre-existing faults at that rheological boundary. In contrast, rising mountains close to the developing plate boundary in the Miocene were the locus of new orogenic gold deposits hosted in extensional faults. These gold deposits were rapidly exhumed and contributed detrital gold to orogen-parallel Miocene rivers that flowed to the south-west. Pleistocene deformation on mainly north-west and north-east orientations, and associated river capture, has severed the links between these Miocene orogenic deposits and downstream detrital gold.CITATION:Craw, D and Upton, P, 2015. Tectonic severance of links between placer gold and its sources, southern New Zealand , in Proceedings PACRIM 2015 Congress, pp 541–544 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By M I. Pownceby, C M. MacRae, A Torpy

Electron probe microanalysis (EPMA) and quantitative X-ray diffraction (QXRD) techniques are capable of providing high-quality quantitative information regarding the phase mineralogy and distribution of alumina within iron ore samples. The techniques, however, use different methodologies in determining the mineralogical information (ie structural versus chemical), which introduces some limitations. In this study, EPMA was used to identify and quantify the deportment of alumina within mineral phases in iron ore samples (-1 mm crushed) sourced from different suppliers. Results were directly compared with quantitative mineralogical data derived from QXRD to provide an evaluation of the relative merits of both techniques. The four ores studied contained alumina either in the form of gibbsite, aluminosilicates (eg kaolinite), or associated with goethite.For minor phases, gibbsite and kaolinite, the abundance trends measured via QXRD were generally reflected in the EPMA data. Agreement was less satisfactory for the more abundant goethite phase (both low- and high-Al forms). The discrepancy may be the result of sampling issues arising from textural features such as grain size, and also a systematic overestimate in the amount of Al-rich goethite when hematite and Al-bearing phases are finely intermixed and the EPMA step size is coarse. A second difference in the EPMA results compared to the QXRD data was in regard to quantification of low-Al and high-Al goethite phases. The sensitivity of the chemical-based EPMA was better for distinguishing between high- and low-Al goethite although the results remain overprinted by potential errors introduced via sampling.Care should be taken when directly comparing results from each method, although in general the data should be considered complementary, as each approach provides slightly different results and interpretations regarding the overall mineralogy.CITATION:Pownceby, M I, MacRae, C M and Torpy, A, 2017. A comparison of X-ray and electron-based analysis techniques for characterising the mineralogy and alumina distribution in iron ores, in Proceedings Iron Ore 2017, pp 593–598 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

Future metal prices play a direct role in both the economic evaluation and short to medium planning of a mine scheduling sequence. It is difficult to predict with accuracy the future price of volatile metal commodities, however, it is possible to fix some future metal price, outside of long term contracts by the selling of futures contracts through a commodities exchange. The futures contract represents a fixed amount of a specified quality of a commodity for future delivery at a predetermined price. Several different types of hedging are possible, one in particular which is best suited for mining companies. There are relative advantages and disadvantages when trading in futures contracts and particular reference is made to gold contracts on the Sydney Futures Exchange.

Jan 1, 1980

Copper Extraction from Scrap Cables by Biotechnological Means

Sep 13, 2010

By P N. Holtham

As part of a long-term study of titanium minerals processing being undertaken by the Julius Kruttschnitt Mineral Research Centre (JKMRC), techniques have been developed to measure the electrical properties of the various minerals. The measured values will be used to model the behaviour of the various minerals in high-tension roll and electrostatic plate separators. The resistivities of ilmenite, rutile and zircon from a number of Australian producers have been measured by applying a DC voltage across a test sample and measuring the resulting very small current flow. By appropriate design of the measurement cell and attention to the experimental procedure, reproducible resistivity values have been obtained, ranging from 106Ωm for ilmenite to 1013Ωm for zircon. However, the conditions of measurement are radically different from those under which electrical separation takes place. It is not certain that the measured values reflect the resistivities seen under high-tension separation, during which the particles are subject to a high intensity corona field. Consequently, an alternative technique for measurement of resistivity under conditions of corona bombardment has been developed. It is based on the experimental procedure of Castle and Yelle (1979) used to measure the resistivity of fly ash under the conditions occurring in electrostatic precipitators. This paper describes the development of the segmented ground plane measurement surface and a high-voltage switched resistor network which comprises the in situ resistivity apparatus. Results are presented comparing the measurements made under corona bombardment with those made using the DC measurement cell. The equipment has also been used to study the current distribution from a corona wire, as a function of high-tension voltage and wire-to-plane spacing.

Jan 1, 2001

The Significance of Internal Recycle in Froth Flotation

Sep 13, 2010

The poor reconciliation between the values of estimated and actual grades can cause major economic losses to the mining industry. In a mining operation grade reconciliation is comparing the values of estimated grade calculated in exploration stage with actual grade obtained from blastholes' data. Many different factors affect the degree of reconciliation in a mining operation. In this paper we investigate the factors related to estimated grade which affects the reconciliation process in the exploration stage of the orebody. These factors are the sources of uncertainty in the rest of mine life. In this area the most important factors are inherent variability, statistical uncertainty and systematic uncertainty. A probabilistic model was presented to model each source of uncertainty. The implementation of proposed model was checked and its validity was investigated using real data in an iron open pit mine in Iran.

Dec 6, 2010

This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By D M. Marques, J F. C L Costa

The estimation of process plant head grade is not trivial and is a source of constant dispute within the mining industry. Grade estimates informed by the short term mine planning are frequently not reproduced by sampling the continuous flow of ore at the plant. Head grades are normally obtained by periodically sampling the continuous flow during a day or shift, and taking the average of the multiple increments collected. The standard error of this mean grade depends on the ore variability and the frequency (number) of aliquots extracted. The more increments are taken the higher is the precision on the calculated mean. Variographic experiments are normally used to map grade variability along a certain period of time and the extension variance is derived from this variogram. This experiment is time consuming, expensive and cumbersome. Mining industry personnel rarely apply this approach. Additionally, a temporal variogram can vary from day to day as different ores are mined along the life of the mine. This paper investigates a novel approach based on simulating the grades feeding the processing plant. In situ 3D grade models are built using geostatistical simulations. Grade spatial continuity and variability are reproduced in models that mimic the real deposit. These models are used in mine planning and scheduling transforming a 3D block model into an one dimensional string of values feeding the plant (one dimension flow). These grades have the statistical characteristics of the unknown real grades and can be sampled to emulate a variographic experiment. The results showed consistency and adequacy to estimate the sampling error (Gy, 1998 p 31) for various sampling intervals using the simulated grades. Also the results show a variographic experiment can change significantly from time to time, as ore changes and a selected sampling protocol can become obsolete if not adjusted for ore variability.CITATION:Costa, J F C L and Marques, D M, 2012. Defining a sampling strategy for a continuous flow supported by geostatistical simulations, in Proceedings Sampling 2012 , pp 3-8 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

The Use of Automated Mineralogy to Interpret the Batch Flotation Performance of Merensky Reef Ore

Sep 13, 2010

Nickel-bearing ores in North-east Dundas have been described by A. McIntosh Reid1 as occurring at the margins of narrow dykes of gabbro, norite, peridodite and pyroxenite, which are intrusive into the Dundas series of slates, quartzites and breccias. They occur chiefly in the neighbourhood of the Five Mile, near Zeehan, as small, narrow ore-bodies which are mostly less than 100 ft. in length.The ores are massive sulphides containing pyrrhotite, chalcopyrite, pyrite and the nickel sulphide, pentlabdite.A less common nickel-bearing mineral, gersdorffite, has been recently found in an adit, which is marked on Reid's geological plan of Dundas as the Hecla mine, 30 chains south of the crossing of the North-east Dundas tramway, over the Great Northern Creek, and at an, elevation of about 350 ft. above the tramway. The occurrence is in a lode traversing the Dundas slates and quartzites, and is situated, according to Reid's plan, about 20 chains beyond the northern extremity of a narrow basic dyke which is continuous for a distance of two miles in a south-westerly direction.The mine eonsists of a prospecting adit following the course of a lode for about 275 ft. in a direction a little west of south. The low values of the lode are indicated by a bulk sample from a shallow winze about 100 ft. from the entrance which is reported by Reid to contain:

Jan 1, 1935

The Sams Creek gold deposit near Takaka in northwest Nelson was discovered in 1974 by CRA Exploration (CRAE) geologists. CRAE recognised the potential of the area and subsequently undertook a comprehensive exploration programme of geological mapping, soil and rock-chip sampling, geophysical surveys and diamond drilling. Exploration defined sporadic gold mineralisation contained entirely within a deformed and hydrothermally altered, peralkaline granite porphyry dyke with a seven kilometre strike length, and up to 60 m thickness. Rock chip samples indicated extensive and economically significant gold grades over approximately one kilometre strike of the dyke at Main Zone prospect. CRAE completed 30 diamond drill holes at this prospect and defined a limited resource. Oceana Gold Limited recommenced active exploration at the Sams Creek Project in late 2002, focusing on improving the geological understanding and known resource at Main Zone. Completion of 1041 m diamond drilling successfully increased the estimated resource to 10.7 Mt @ 2.12 g/t Au containing 729 000 oz at a 0.7 g/t cut off. A further campaign of 1560 m diamond drilling was undertaken in 2003 - 2004 to extend the resource and test the continuity of high grade mineralised zones. Deeper intersections of the porphyry dyke indicated geometrical complexity and grade variability similar to that observed at shallow levels. Recent research suggests that Sams Creek can be geologically classified as a variant of intrusion-related gold systems, and therefore comparable to some other, very large gold deposits. However, due to the rugged terrain and dyke geometry, surface drilling is reaching the limits of viability at Main Zone. If infill drilling continues to be successful then an underground decline may be developed to facilitate further exploration. Potential also exists along strike, where other significant gold anomalies are known but largely untested by drilling.

Jan 1, 2004

Power Plant. The power for the metallurgical operations is supplied by the company's own power plant, which is centrally situated. Power is also supplied to Metal Manufactures Ltd. and Australian Fertilizers Ltd., both being adjacently situated to this company'sworks.The power supplied is direct current, 250 volts, and is obtained from direct-current generators coupled to turbines and to Belliss & Morcom triple expansion engines.The steam supply is obtained from Babcock & Wilcox water tubular boilers, the fuel used being drawn from the South Coast coal mines.Transport. - The works are connected by standard broad gauge railway to both the jetties and the Government railway. Two steam and three electric locomotives are employed in this service.In addition to its own requirements, transport is provided to Metal Manufactures Ltd. and Australian Fertilizers Ltd.The various operating departments are connected by a 2-ft. gauge railway operated by Jeffrey electric locomotives.Ore Storage and Sample Mill - These departments are connected by broad gauge line to the Government railway and jetties. All material which is railed or shipped to the works from the various centres is weighed, sampled and placed in the ore store, or outside gantries, before being treated.Since the whole of the material received is either purchased or treated on a toll charge, great care is necessary in the weighing and sampling of all the receipts.Assay Oflice--The assay office is divided into several laboratories, where analyses of the various purchased materials and works samples are carried out.

Jan 1, 1938

By K A. Bunker, A D. Campbell, E Ah Mu, A R. Penney

The Ernest Henry mine is a transverse sublevel cave (SLC), which is relatively unique due to the 45 degree inclination of the orebody. To economically recover ore, each sublevel is horizontally offset from the previous level by around 25 m, depending on the orebody geometry. Mine development, slotting and initial production within this zone occurs in a high stress abutment that increases in magnitude at depth. These areas are seismically active and close to the hanging wall where cave propagation is yet to initiate. High stress conditions and the close proximity to the cave seismogenic zone results in challenging geotechnical conditions in the step out zone of each level and requires management of hazards including stress driven rockfalls, rock bursts and pillar failure.This paper outlines how these hazards were forecast using numerical modelling and geotechnical monitoring. Risk management techniques included dynamic ground support design, development of a new mine layout and extraction sequence as well as delayed re-entry into seismically active areas. Ongoing monitoring, instrumentation measurements and field observations were used to track the effectiveness of the controls.Future production levels are forecast to experience increasing stress and seismicity, which will increase demand on excavations and installed ground support. Ensuring the techniques and controls for monitoring, measuring and mitigating stress and seismic hazards are enforced is essential for continued safe production.CITATION:Campbell, A D, Bunker, K A, Ah Mu, E and Penney, A R, 2016. Managing stress and seismicity in an inclined sublevel cave, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 319–328 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

The Winton Basin is one of three Southland sub-basins. The oldest known sediments are Early Oligocene terrestrial shales, sands and lignites deposited in half grabens formed as a result of oblique extension. A marine transgression in the Oligocene deposited mid-outer shelf to upper bathyal mudstones. Shallowing of the basin and tectonic quiessence lead to limestone deposition in the Early Miocene. Regional tilting led to uplift in the north and east and deposition of terrestrial lignites and gravels across the basin and the basement high to the south.

Jan 1, 1992

The quantity, quality and detail of project information increases as project development moves from initial scoping level studies, to pre-feasibility and option studies, then definitive feasibility study and basic engineering stages. Data accumulates from metallurgical and vendor testing from various ore types and composites carried out to assess physical characteristics and processing responses of the ore. Over-simplification or assumptions about the orebody for flow sheet development can result in using æaverageÆ information for design. Use of averages of data can have adverse implications on sizing of plant and equipment and consequently on definitive study cost estimates and detailed engineering. In practice, the treatment plant workforce is faced with managing a non-homogeneous or non-average orebody in a variable operating environment that is not always predictable. This paper presents views on how to use the data generated from testwork in project development and for process and plant design. Examples of process design risk or operating risk are presented. Although this topic is applicable to the broad range of process design decision making in the minerals industry, this discussion references comminution, flotation and extraction processes for gold and base metal ores.

Jan 1, 2004

By T Nassis, H M. Nel, T du Toit

Assmang Khumani Iron Ore Mine is exploiting the iron ore deposits that can be found in the Bruce-King-Mokaning farm areas in the Northern Cape, South Africa. The Bruce, King and Mokaning (Khumani) deposits are approximately 10 km south of the town Kathu, adjacent to the Sishen Mine. Assmang Limited is jointly owned and controlled by African Rainbow Minerals Limited and Assore Limited.Measurement, calculation and trending of plant throughput and chemical ore properties are critical in maintaining a successful beneficiation operation due to these values forming the basis of decision-making and thus promotion of efficient ore extraction. The Khumani management and engineering information system (MEIS) supplies information on key process parameters to an operational team and is required to do so within an optimal time frame, for maximum impact.Diverse data is put into the MEIS from multiple specialist systems, with interfaces that require manual intervention. Manual intervention is resource and time intensive to the point which limits the effect on the process and decreases the potential for value addition.Automation of interfaces decreases resource and time requirements, standardising plant wide data sources and providing the opportunity to provide specialist system data to decision-makers in a timely fashion, resulting in maximum impact on the process output.Engineering and metallurgical management systems were interfaced at Khumani Iron Mine by means of an automated table which facilitates the transfer of production data validated within the engineering system as input to the metal accounting system. This interface effectively assigns a master to each specialist data set employed for decision-making and delivers accurate process parameters to the production team within an optimal time frame, resulting in increased potential to improve beneficiation efficiency.CITATION:Nel, H M, Nassis, T and du Toit, T, 2013. The role of metallurgical and engineering information systems in the optimisation of iron ore beneficiation processes, in Proceedings Iron Ore 2013 , pp 453-458 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By C Adams

Reports of delays and cost blowouts in major study and construction projects are becoming increasingly prevalent in the resources industry. This is mainly being attributed to an escalating cost environment associated with the increased number of projects in the development to construction pipeline and a scarcity of competent skilled resources to deliver these projects. However, not all this effect can be directly attributed to the current environment. Historically the mining industry has not performed well in its ability to deliver projects according to the financial and physical parameters forecast in the feasibility study process. To manage the risks associated with delivery of major projects, resource companies need to ensure they use a standardised approach to management of their project development to satisfy project objectives and enable more efficient use of the increasingly limited available resources. Each discrete step in advancing the project from scoping study to operations needs to be integrated, reducing the amount of rework and duplication. This paper is primarily a consolidation of existing ideas on project management systems but also introduces new concepts to solve current issues. It describes the basic components of a typical mining project, the issues that commonly arise, the key attributes, and critical steps required for an effective integrated project management system covering projects from initial scoping studies through to project commissioning and operation. This paper focuses on technical study components of the mine development project with allowance for transitioning to design and construction and operation phases.

Jan 1, 2006