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By D Lautier, A A. Ndiaye, A Galli

Traditionally gold producers had built up hedge books to protect themselves against adverse changes in the commodity price, but diversified mining groups were staunchly opposed to hedging in any shape or form. The situation has evolved over the past few years. Gold miners have been reducing the size of their hedge books in line with the rising gold price. Commentators have talked about ædouble-digit dehedgingÆ and have suggested that this is the final countdown for gold hedge books. It sounded as if the era of hedging by mining companies was drawing to a close. But as appearances can sometimes be misleading, we decided to find out what mining companies were actually doing. Companies listed on stock exchanges are now obliged to give details of their derivatives holdings in their annual reports. Two or three years ago there was no such obligation. Our reality check was based on the latest annual report issued by three multinational mining groups; two with diametrically opposed views on hedging (Rio Tinto and Barrick) and the third (BHP Billiton) with an intermediate position. This snapshot of their derivative positions at a point in time revealed that Barrick and BHP Billiton have substantial derivatives positions (worth billions of dollars) to protect against adverse changes in foreign exchange rates and interest rates. Moreover Barrick has recently started hedging against increases in fuel prices. Despite its opposition to hedging, Rio Tinto has derivative positions worth several hundred million dollars, but these are primarily a legacy from various mergers and acquisitions over recent years or were entered into as a condition of project financing. Lastly we were surprised to discover that Barrick was holding asset-backed commercial paper (ABCP). So the idea that mining companies donÆt hedge their risks is just another urban myth.

Jan 1, 2009

All development proposals have to run the gauntlet of the approvals process. Major resource projects are generally subject to particularly intense scrutiny. The key element in the approvals process is that it is about making decisions that take into account the benefits or otherwise to society as a whole - the interests of any one group do not take precedence. Most groups tend to see their relatively narrow interests as representing those of the broader society. Each group develops their arguments for or against a project in isolation, and then presents these to an arbiter in an adversarial situation. From this mire of argument and counter-argument it is often difficult to discern just what the real benefits of a project are, and opportunities for agreement and constructive modification of proposals to meet real concerns are often missed. The contention made in this paper is that the inevitable differences between these various viewpoints should be harnessed to help the proponent to come up with a proposal that is clearly of overall benefit to society and which gains approval. It is better to accept that no one group has a monopoly on wisdom in this area and to engender an environment of creative tension in which the pros and cons can be broadly considered and good planning and design used to produce a proposal that has a high chance of success. There are a variety of ways in which this approach can be implemented. Some of these options will be discussed in terms of their likely applicability to energy projects and their potential for success.

Jan 1, 1992

Lower greenschist quartzo-feldspathic schists within the N-S trending Earnslaw Synform of the Upper Wakatipu area are pervaded by late-stage quartz filled extensional and extensional shear fractures, with quartz-scheelite lodes infilling normal faults. Exposed veins/lodes mapped over at least 1000 km2 define a paleoflow system developed during late metamorphic exhumation of the schist. Both veins and lodes have consistent angular relationships to the schist foliation independent of their location on the Earnslaw synform. Unfolding the synform leads to a regional subhorizontal foliation and a systematic set of subvertical quartz veins striking NNW extending over a depth interval >5 km, striking parallel to a set of normal faults hosting the quartz-scheelite lodes. The structures define an extensional regime with s1 sub-vertical, s3 oriented WSW-ENE, a low differential stress, and suprahydrostatic fluid pressures.   The quartz-scheelite lodes (<2 m thick) occupy faults which cross-cut the quartz veins, and are traceable for a few hundred metres, at most. The lodes consist of laminated and/or massive quartz, slivers of crushed and folded schist, random and discontinuous lenses of scheelite with clay selvages separating the lode from relatively undisturbed wallrock schist. Textural evidence suggests that slip developed incrementally with total displacement on faults during lode formation on the order of a few ten's of metres.   The distribution of Glenorchy veins demonstrates broad scale hydrothermal flow through low-permeability schist, channelled within dilatant mesh style structures comprising interconnected shear and extension fractures. Flow through the lodes was likely derived from the greater surrounding area via the interlinked network of fractures and focused into the low displacement shears. Available evidence suggests the system developed together in a uniform extensional stress regime toward the bottom half of the seismogenic regime.

Jan 1, 2001

By R Daiyan, G Burge, M Haider Ali Khan

Australia’s mineral and metal exports have a substantial carbon footprint, twice that of its domestic emissions, mainly due to fossil-fuel-dependent downstream processes like processing into secondary metals and their transport. The country’s vast renewable energy and low-carbon hydrogen potential offer a promising alternative to mitigate this impact. These resources can be leveraged to displace fossil fuel use and become embedded into the metals value chain. Ultimately, it will yield ‘Green Metals’ that can be scaled to reduce the environmental footprint and provide an avenue for Australia’s vast green resources to be embedded (incorporated during production and supply) in green metals that can be exported. One potential green metal is copper, which is in great demand and likely to drive global decarbonisation through renewable electrification due to its role as an energy conductor. Given that Australia is a large producer and exporter of copper, this paper provides a techno-economic model of the copper value and applies it to Queensland (a hub of Australia’s copper production) as a case study. The results show that under incumbent hydrogen (A$8/kg) and renewable energy costs, the cost of green copper would be A$9704/t (~10 per cent higher than current copper costs). Further analysis revealed that the cost of hydrogen is a major cost driver; therefore, if the cost of hydrogen can be reduced to A$2/kg (a 2030 target of the Australian government), the cost of green copper would become competitive. Furthermore, if a carbon pricing regime ($54–79/kgCO2) is introduced, green copper would become competitive at a hydrogen cost of A$3/kg. Altogether, these findings provide insights for a future green copper export opportunity in Australia. Additionally, as the next step, the model can be extended to include other metals and released as an open-source resource for assessing global green metal opportunities.

Sep 1, 2024

By G J. Corbett, T M. Leach

Although hosted within an Ordovician magmatic arc, the Peak Hill high sulphidation system displays features typical of youngerPacific Rim high sulphidation epithermal gold deposits. Regional NW trending transfer structures are inferred to localise the magmatic source at their intersection of the NS trending arc. Fluids have migrated from the magmatic source along NW structures and thence exploited permeable horizons, which have become silicified. Alteration displays typical zonation from silicification through assemblages characterised by alunite, pyrophyllite and kaolinite and is followed by breccia/fracture controlled sulphide and gold deposition. Sinistral rotation on the NS arc has dilated NW trending fractures to produce the WNW to EW dilational fractures which host the higher grade ore. Mineral assemblages are typical of formation distal to the magmatic source in an epithermal environment. The combination of alteration and mineralisation zonation with structure provide fluid vectors which target a magmatic source to the SE of Peak Hill.

Jan 1, 1995

Avoca Resources LimitedÆs Higginsville Gold Project has a resource base of over 1 300 000 oz of gold. The Trident underground mine, which forms the basis of the project development, has a resource base of 927 000 oz of gold. Avoca is building the Higginsville Gold Project based on a minimum ten year vision, producing over 150 000 oz per annum. The project development has taken less than three years from the Trident discovery hole in October 2004 to the first ore production in June 2007. This paper discusses the background work associated with the development of the Trident underground mine in a difficult period for new project development in Western Australia. The resources boom, led by the iron ore industry in the Western Australian Pilbara region, is creating cost pressures and, combined with a lack of people and equipment, is placing cost and timing stress on a small developing project. Avoca Resources has developed a project execution management strategy aimed at mitigating cost blow outs and schedule delays.

Jan 1, 2008

Operational effectiveness is fundamental to any operation, becoming highly topical in those experiencing less than optimal output from their fleets. It is all encompassing aiming to identify those factors that could be improved within production and suggesting solutions in order to optimise the existing fleet and obtain the greatest capital return on expenditure.Argyle Diamond Mine (ADM) is a large open cut diamond mine located in the East Kimberley region of Western Australia, approximately 180 km south of Kununurra. It is owned and operated by Rio Tinto on a two week on/two week off roster fly-in/fly-out from Perth or drive in/drive out from Kununurra. Through benchmarking the operation between January and June 2002, a study was undertaken allowing identification of areas falling below target. Following this, analysis of annualised hours and production downtimes were undertaken to quantify the potential gains of improvements in these areas. Strategies were then identified as stated in the 2002 mine plan, in operational effectiveness meetings, and by staff members. This project aimed to maximise direct working hours through determination of the main issues hindering performance. External and internal factors were considered and a continuous improvement program (CIP) was developed. The CIP aimed at internal site-based improvement teams to identify and implement solutions for improvement on a day-to-day basis.

Jan 1, 2003

By P Grieve, J L. Mauk

The Central Maratoto Valley in the Coromandel Peninsula contains a sequence of veins in pervasively altered dacite + andesites of the Waipupu Formation. We recognise at least eight different vein types: (1) pyrite stringers, (2) quartz + carbonate veins, (3) crystalline quartz veins, (4) carbonate veins, (5) chlorite + carbonate veins, (6) siderite veinlets, (7) siderite + carbonate veins and (8) carbonate + pyrite veins. The overall temporal trend of the veins is from early pyrite to quartz and then to late carbonate veins. Carbonate veins and pyrite stringers both form planar and irregular veins, whereas some carbonate veins have diffuse contacts with the wall rock. Gold and base metal sulphides are associated with some of the quartz + carbonate veins. Textures within the veins reflect open space filling and multi-phase reopening. A partial record of hydrothermal activity has been preserved by vein crosscutting relationships, hydrothermal alteration minerals and fluid inclusions. Hydrothermal alteration minerals display zonation from south to north. The alteration increases from unaltered to weak propylitic alteration of andesite in the south (MVRCDC1), to sericitic alteration of andesite and dacite in the north (MVRCDC3). The alteration assemblage is dominantly sericitic, with no adularia present, drawing parallels to the Thames region where there is no adularia.

Jan 1, 1999

Computation is believed to be a powerful tool in scaling-up chemical processes and in designing materials, however, is being challenged by low predictability and limited scalability. This presentation will discuss the promising future of multi-scale computation in solving these two problems to realise the real-time simulation of industrial processes. Multi-scale structures are a common nature of most chemical systems and the meso-scale phenomena are believed to be the road blocks not only in improving the predictability of physical modeling but also in extending the scalability of computation. Focusing on the meso-scale phenomena, a series of research has been carried out at the Institute of Process Engineering, Chinese Academy of Sciences, for the past three decades. Starting with a simple idea of modeling the meso-scale clusters in gas-solid two phase flows, the so-called EMMS (Energy-Minimisation Multi-Scale) model was established. In verifying the stability condition of the model, the pseudo-particle approach was proposed to explore the micro-mechanisms in particle-fluid systems, and the strategy of the EMMS model was extended to other six different multi-phase systems, resulting in a unified conceptual formulation of multi-phase complex systems expressed by a multi-objective variational problem. In applying this model to different multi-phase systems and to industrial problems, it was recognised that the EMMS model defined a new paradigm of multi-scale computation by realising the structural similarity between software, hardware and the problems to be computed. This paradigm of computation was implemented on a multi-scale supercomputer with a capacity of 1.0 petaflops by integrating CPUs and GPUs (Graphic Processing Units), showing high efficiency and low cost. Running the EMMS model on this computer, the simulation of hydrodynamics of multi-phase systems can be speeded up very much, indicating a promising future of virtual reality of process engineering. The presentation will review this series of work, introduce successful applications in industries, and will be concluded by emphasising the critical importance of the meso-scale phenomena as the bridge between macro-dominants and micro-mechanisms. This is an ABSTRACT ONLY. No full paper was prepared for this presentation.

Sep 13, 2010

By R E. Myers, G N. Phillips

Many of the worldÆs larger iron ore deposits are hosted by rock sequences of Archaean to early Proterozoic age. Most models for the genesis of these deposits are influenced, either directly or indirectly, by the nature of the atmosphere at the time of their formation, and more specifically by the presence or absence of oxygen in the early atmosphere. Since the early-1950s, the geological literature suggests that the Archaean atmosphere was æreducingÆ, and that it may not have contained significant amounts of free oxygen until ca 2 Ga. There are many different definitions of the term æreducingÆ, but the criterion adopted here is whether crustal iron was limited to Fe2+, or whether Fe3+ was also widespread, ie was there scope for redox changes in the state of iron? Significantly, major Australian banded iron formations span this period of inferred atmosphere transition, eg Mt Goldsworthy, Mt Tom Price, Middleback Ranges. Geological evidence for a reducing Archaean atmosphere is both ambiguous and controversial (see review by Phillips, Law and Myers, 2001). Many earlier ideas (eg no Archaean redbeds; all very large iron ore deposits being post-Archaean) have been disproved by dating, whereas other evidence (eg homogeneous detrital gold grains, inferred palaeosols) has not withstood geological scrutiny. The interpretation of some data sets (eg inferred detrital uraninite and pyrite in some Archaean meta-sedimentary rocks) is still controversial. In fact, some lines of evidence now suggest that oxygen was present in the atmosphere well before 2.5 Ga (eg sulfates in the Pilbara craton, carbon distribution in clastic sedimentary rocks). An oxidising Archaean atmosphere has important implications for the development of iron formations. First, the atmosphere is an obvious potential source of oxygen to stabilise ferric iron minerals. Second, reduced fluids in equilibrium with ferrous iron are commonly inferred to transport iron in solution to the depositional site. The redox state of the atmosphere thus provides critical constraints on the solution chemistry of surface waters, effective transport paths for iron and particularly on viable precipitation mechanisms. Iron formations developed from fluids in equilibrium with the atmosphere also have the potential to provide important constraints on the evolution of EarthÆs early atmosphere. If an oxygenated atmosphere is a necessary condition for the development of iron formations, then the Archaean atmosphere must have been oxidising since at least 3.5 Ga. If the redox state of the atmosphere is not a necessary condition, then the time distribution of iron formations cannot be used to provide constraints on atmospheric evolution. Given these uncertainties, models for the genesis of iron ore deposits of Archaean or early Proterozoic age should not rely on a reducing atmosphere in the absence of independent evidence and the alternative of an oxidising atmosphere should also be considered.

Jan 1, 2002

Exploring the Breakage Environment in Mills with Discrete Element Methods

Sep 13, 2010

By Wilson G. L, Lord J. H

A detailed analysis of faulting indicatcs that blocks of "greenstone" have been thrust beneath the southern end of the Mt. Isa orebodies.This "greenstone" basement is considered to be a major structural control in the localization of these orebodies.INTRODUCTIONThis paper is based on exploration carried out by Mining Corporation (Aust.) N.L. from 1956 to 1960 in the area immediately south of Mt. Isa, Queensland. During this period over 20,000 ft of diamond drilling was completed together with costeaning and geochemical exploration.Early in 1959, it became apparent that diamond drill information could not be correlated with the current geological concepts of this area and a detailed geological appraisal became necessary. In all, sixty square miles were mapped at a scale of 1 in. to 500 ft, using enlarged aerial photographs. All drill core was logged and sections re-interpreted.Professor K. C. Dunham of the University of Durham consulted on this project and contributed through valuable discussion. Dr. A. Day of the University of Sydney carried out a gravity survey in February 1960 and Dr. H. Wilshire of the same University undertook microscopic examination of rocks from the area. Certain sections of the area were investigated geochemically by Mr. K. K. Hughes of New Consolidated Gold Fields (Asia) Pty. Limited in 1960.In outlining a theory of ore genesis in the area the writers have drawn heavily on the invaluable data published by many previous workers on the Mt. Isa field, in particular...

Jan 1, 1963

By N Cusworth

The development of a resource project inevitably requires the investigation of a vast range of issues across most engineering disciplines û mining, metallurgical, chemical, civil, electrical, mechanical and environmental û as well as the geosciences. It is also a characteristic feature of the resource industry that no two orebodies û and hence no two development projects û are the same. So these technical issues have to be addressed to a greater or lesser extent in evaluating any resource projectÆs development potential. Not surprisingly then, technical issues tend to predominate when assessing the development potential of a project in the process typically referred to as ædoing a feasibility studyÆ. But the principal purpose of a æfeasibility studyÆ is to determine whether a development opportunity makes good business sense, not just whether it is technically possible. Resolution of technical issues is often seen as the primary focus of a feasibility study, whereas in reality, these technical issues are the basis upon which an asset delivery and business plan is built. This is not to say that technical issues are unimportant û they are a prerequisite to the demonstration of a projectÆs viability. The feasibility study process must therefore demonstrate that not only have the technical issues been satisfactorily addressed, but also that the broader commercial, economic and social issues have been considered in the development of a comprehensive business plan, which includes an assessment of the risk-reward profile of the proposed development. This paper will present a framework for the conduct of æfeasibility studiesÆ and provide guidance to minimum standards and best practice.

Jan 1, 2007

By J M. Parr, P M. Herzig, J B. Gemmell, S D. Scott

PACMANUS is an actively-forming seafloor analogue of volcanic-hosted massive sulfide orebodies, situated on the crest of an andesite-dacite-rhyodacite ridge overlying rifted older arc crust in a back-arc basin. Hydrothermal deposits range from Mn-oxide crusts to Cu-Zn-rich massive sulfide mounds and chimneys containing significant Au and Ag. Preliminary data suggest a substantial magmatic component to fluids and metal sources, and we speculate that PACMANUS is the cap to a complete hydrothermal system including subvolcanic and intrusive-related mineralisation.

Jan 1, 1995

Valuable Components Recovery from Lead-Zinc Metallurgical Slag

Sep 13, 2010

By R A. Binns, S Murao

The PACMANUS and Jade deposits are two active hydrothermal fields that are forming massive sulphide deposits at the Pacific rim margin. Both are associated with felsic submarine volcanic rocks and both occur in back-arc settings. However, PACMANUS is associated with almost sediment-free dacites and lies on the crest of a volcanic ridge, whereas Jade occurs in a heavily-sedimented tectonic depression associated with a basement of pumiceous rhyolite. The PACMANUS deposit is richer in Cu and Au, and Jade in Pb. Zinc, Ag, As and Sb contents are similar. Sulfide textures at PACMANUS suggest formation of Cu and Zn sulfides by simultaneous double-diffusion involving inwards-moving seawater mixing with outwards-moving hydrothermal fluid. By contrast, at Jade there is a more complex history of formation where initial growth of barite on the sediment surface, probably associated with microbial activity, formed an impervious cap which trapped higher temperature hydrothermal solutions.  

Jan 1, 1995

By R P. Langford, T A. Moore

Indonesia over the last 15 years has experienced a surge in coal exploration, which has led to the development of a major export industry. This coal exploration has improved the understanding of the geology of the Indonesian coal deposits. The main economic coal deposits are of Eocene and Miocene to Pliocene age, which mainly occur in Kalimantan and Sumatra and were formed from peat deposits in an equatorial paleoclimate similar to that prevailing today. Some of these peats were domed peats, which grew above the normal water tables, under a climate of year-round rainfall; these peats grew above the level at which waterborne mineral matter can enter the system, resulting in low ash and sulphur, and locally very thick coal. It is believed that such peats have formed the unusually thick, low ash, and low sulphur Miocene coals of Indonesia. Coal deposits of Eocene age are typically characterised by thinner seams, with relatively higher contents of ash and sulphur. The Miocene coals and Eocene coals both appear to have formed in lacustrine, coastal plain or deltaic depositional environments, similar to the modern peat-forming environments of eastern Sumatra and parts of Kalimantan. The Eocene coals formed mainly in extensional tectonic settings. Miocene - Pliocene coal deposits formed in a range of tectonic settings; the most significant, for large economic coal deposits, are the foreland basin setting of the large Neogene coal deposits of South Sumatra.

Jan 1, 1999

By K S. Smith, J Woodhead, K Olson Hoal

Mineralogy is the link between ore formation and ore extraction. It is the most fundamental component of geomet programs, and the most important aspect of a life-of-project approach to mineral resource projects. Understanding orebodies is achieved by understanding the mineralogy and texture of the materials, throughout the process, because minerals hold the information required to unlock the value they contain. Geomet mineralogy programs absolutely require the appropriate expertise and at least three steps of mineral characterisation prior to using semi-automated or other methods: field examination, thorough core logging, and optical microscopy. Economic geological inputs for orebody characterisation are necessary for orebody understanding, and are exemplified by current research in the Zambian Copperbelt, where revised sequence stratigraphy and understanding of alteration, metasomatism and metamorphism can be used to predict topical issues at mine sites. Environmental inputs for sustainability characterisation are demonstrated by recent work on tailings from the Leadville, Colorado, USA area, including linking mineralogy to water quality issues. Risk assessments need to take into account the technical uncertainties around geological variability and mineral extractability, and mineralogy is the only metric that can be used to make this risk contribution.CITATION:Olson Hoal, K, Woodhead, J and Smith, K S, 2013. The importance of mineralogical input into geometallurgy programs, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 17-26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

The Mineralogical Researches of Gold Ores and Technological Products at Operating Factory in Olympiada Mine (Russia)

Sep 13, 2010

By A Brzovic, E Córdova

In an underground mine, different mining activities such as undercutting and cave progression generate redistribution in the present in situ stress field, and these changes are represented in the rock mass through induced seismicity.In order to study and analyse the induced seismicity generated in El Teniente, a block model was developed to account for the dissipated seismic energy through different areas of the mine from 1992 to 2015. More than 2.1 million seismic events were unified and classified in 3D in order to be used for the interpolations. The resultant model variables account for the accumulated energy releases in a monthly time resolution, and provide the ability to intersect different 3D entities with the stored information in the blocks, and estimate the energy evolution inside these entities.The generated model was used to analyse the geotechnical variables that determine the seismic response for the rock mass in the mine, such as geometry and direction of advance of the undercut fronts, lithological domains, and to study the ‘work’ the rock mass needed to go through in order to generate caving in areas with different stress settings.A specific area of the mine under high-stress conditions was analysed by studying the seismic energy associated with two subsidence caves interacting around the project, the modelled lithology. Using the same approach two adjacent projects are analysed to understand the released energy from the rock mass based on different stress and geotechnical settings for each project.CITATION:Córdova, E, Brzovic, A and González, R, 2016. Analysis of progressive seismicity and its correlation with geotechnical variables at the El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 835–844 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016