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"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M.J. Mitchell

Platinum-group minerals (PGM) are recorded from a number of localities along the Waiau River, western Southland, and the south coast of the South Island, New Zealand. At each locality, small amounts of PGMs were recovered as by-products of historical gold mining operations. During the period 1890-1950 an estimated 1000-2000 oz. of "platinum" were recovered from the region, the only area within New Zealand where PGM have been commercially exploited. The PGM suite of southern New Zealand consists of Pt-Fe alloys, IPGE (iridium subgroup, platinum-group elements) alloys, sperrylite (PtAs2), cooperite (PtS)and braggite ((Pt,Pd)S). The composition of Pt-Fe alloy exhibits considerable variation and two compositional populations are recognised. Some Pt-Fe alloy grains are chemically zoned. Iridium is the most abundant IPGE alloy phase and often contains considerable Pt, in contrast to osmium and ruthenium alloys. Cooperite and braggite grains are characterised by extremely low concentrations of Ni. R^~

Jan 1, 1995

By N Currey, G W. Wilson, P Ritchie

Kidston Gold Mine in Queensland, Australia has a 310 ha tailings impoundment that has undergone final closure rehabilitation. Kidston Gold Mine evaluated their closure options for this low acid generating tailings impoundment, and due to a lack of cover soils and the cost of importing material, the mine decided to investigate the possibility of direct vegetation onto the tailings impoundment surface. The mine subsequently embarked upon a well planned and detailed research program to determine the feasibility and sustainability of this closure option. The research program included vegetation trials, toxicology studies for metal uptake by vegetation, as well as a comprehensive closure water balance model for the tailings impoundment complex. This paper describes the results of the long-term closure water balance for the tailings impoundment complex for the pre-closure state of the impoundment, as well as predictions towards the impoundment performance once final rehabilitation of the tailings impoundment complex has been achieved. The water balance presented is unique in that it is founded on unsaturated flow principles and accounts in full the impacts of the surface flux boundary conditions. This novel approach enables the prediction of actual infiltration rates into the tailings impoundment surface, which in turn allows for the calculation of how much seepage will exit from the tailings dam toe drains.

Jan 1, 2003

By Kavetsky A

In surface mining operations, the ease with which a muckpile may be dug is a dominant factor in mining efficiency. Within broad limits, this is largely dependent on muckpile shape and looseness within a muckpile. Moreover, prediction of grade boundary movement and subsequent dilu- tion is of interest to most open cut mines. Such a predictive tool would enable blast design changes to be made to reduce mixing of certain grade regions. At the very least, a good knowledge of post-blast region bound- aries can reduce layout of the grade boundaries and decrease grade dis- crepancies between pit and plant. The model presented in this paper is able to consider various options for a production blast and predict consequent muckpile shapes and grade boundary movements in a three dimensional manner. The overburden geometry, hole patterns, hole inclination and charge distribution are all explicit model inputs. The model divides the rock mass into blocks and calculates a velocity for each block. Three controlling parameters are used in the model, which are related to the explosive energy per unit length of blast hole, energy attenuation of the rock mass and inter-row delay, respectively. The output of the model is a 3 dimensional muckpile shape (contour or any cross section) and a contour map of grade distribution within the muckpile. The model parameters are site specific, since their values depend on the rock condition and explosive-rock interaction which varies from site to site. In order to "tune" the model to a particular site, parameter values must be found which reproduce an observed muckpile profile shape from a given blast design. This calibration of the model requires at least one surveyed muckpile profile shape from a production blast. The model parameters which best reproduce that shape are found by a pattern search technique, and may then be used to predict the effect of changes in blast design on muckpile profile shape and grade boundary movement.

Jan 1, 1989

The knowledge in the field has been reviewed by literature studies, and using experience from personal research in sublevel caving. There is a lot of material regarding gravity flow of fine grained materials in bins, but the theory of flow for these materials are normally not applicable for coarse blasted rock. This study was therefore concentrated towards coarse rock fragments created after blasting in orebodies. The goal for this study was to make a report of known knowledge, and identify what we have to learn more about. The Bergmark-Roos theory, which was a paradigm shift in the science of gravity flow, is today the best mathematical theory for calculation of the drawbody for a homogenous material or when we wish to simulate the mean drawbody for a large number of draws. The Bergmark-Roos theory must however be improved, so it can take into account the flow pipe effect. When this is done it will be possible to construct a 3D computer model for calculation of ore extraction versus amount of loaded ore and waste. It is also necessary to find the 3D shape of the flow cone to be able to calculate the 3D ore rest that normally develops on footwalls. Calculations should be done for the draw on several sublevels including determination of the ore losses and temporary ore rests. First when this computer model is developed optimisation of ore recovery and waste rock dilution can start for a given orebody. The author points out the importance for international co-operation and standardisation of methods for determination of material properties. More field tests and model blasting tests should also be done. When enough knowledge is gathered, a handbook of the optimisation of sublevel and block caving should be written.

Jan 1, 2000

Aberfoyle sought to reduce Hellyer project development risk to a greater degree than usual. Consequently the ore reserves estimate and feasibility study were particularly comprehensive. A detailed ore reserve study was completed based on extensive drill core and underground sampling, large scale pilot plant work and a detailed feasibility study. Leading external consultants were used for advice on commercial matters which impact on ore reserves and to audit major technical conclusions, including the results from pilot plant work and the ore reserve estimate. Other project risks were diminished by negotiating a State agreement covering security of title, royalty formula and environmental management procedures, by obtaining sales contracts, and by analysing Hellyer's position on an industry cost curve. The task of financing the project was much simplified by the extent and quality of information available from the ore reserves estimate and feasibility study report.

Jan 1, 1990

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

By Stevak D, Plesingerova B, Ellias K, Tkacova K

This paper presents information on the processing of minerals by decrepitation that can be an integral part of their mineral dressing. In the case of carbonates, processing by decrepitation is a special operation that has its objective as concentration of the oxide. Selective fragmentation of magnesite brought about by decrepitation uses pseudomorphosis which was observed at thermal decomposition of carbonates. By decrepitation of magnesite high-grade MgO concentrates were obtained with MgO contents above 80 per cent. With the sideritic ores a very important phenomenon was observed consisting in the removal of quartz in the fragmented fine-grained product which favourably affect pelletisation of the fines. The selective concentration of the MgO product brought about by thermal decomposition of dolomite accompanied with decrepitation was negligible.

Jan 1, 1993

Knowledge of the hydrogeological setting of a mine forms an integral part of a mining operation. Groundwater impacts, initially, on mine feasibility. Then, on commencement of mining, it interacts on the operational components of dewatering, water supply, tailings leachates, mine wall stability, stormwater run-off, water disposal, impact on regional environment and mine closure planning. The recording of hydrogeological information is frequently overlooked during resource and reserve definition as well as during the course of mining when prime opportunity exists for the collection and collation of this data. In recent times, the exclusion of hydrogeological data has been exacerbated by use of high air pressure drill rigs that exclude water inflow. The recording of water data has been further inhibited by the use of computer coded drill logs that do not include the site geologistÆs or drillerÆs comments on drilling problems and observations associated with groundwater intersections. Geologists now infrequently directly supervise drill rigs, but visit the rig only intermittently to evaluate drilling progress. They do not see first hand drill performance characteristics at water make zones. Drill cuttings, as drill chips and cores, are now mostly logged away from the drill site so that wet sample locations, visual water flow evidence and verbal comments from the driller are not recorded. As a result, mine geologists now do not direct adequate attention to the delineation of lithologies and structures that store and transmit water. This paper provides examples of water sighting and recording techniques applicable to a mining operation. Examples are also provided where hydrogeological conditions have been disregarded with serious impact on the progress of mining. The recording of hydrogeological data should be maintained and formatted by the site geologists into a useful database for review as and when required by specialists in hydrogeology, geotechnical and mining engineering and the environment. The information can be coded by the site geologist for inclusion into the mine database. A groundwater dataset, compiled during the progress of field investigations, will save the considerable cost of re-drilling and hole re-entry testing which would otherwise be required to provide base level hydrogeological information required for progress of mining. Apart from working mine use, a hydrogeological dataset is a necessary component for planning mining closure and mine legacy conditions.

Jan 1, 2003

By Ormsby W. R, Nicholson P. M

Woodcutters is a polymetallic vein-style deposit hosted by sediments of the Palacoproterozoic Whites Formation which forms part of the sedimentary sequence in the central Pine Creek Geosyncline. Past production and identified resources total over eight million tonnes at 5.5 per cent lead, 12.1 per cent zinc and 110 gA silver. The local geology is influenced by Archaean basement highs; the Rum Jungle and Waterhouse Complexes. Unconformably overlying basement are interbedded clastic and crystalline carbonate units (Batchelor Group) representing cyclic changes in the depositional environment. These exhibit onlapping features with the underlying rocks. Sediments of the overlying Frances Creek Group suggest a quiet period during subsidence and subsequent increase in water depth (the carbonaceous dolomitic shales and the interbedded dololutites of the Whites Formation) followed by proximal uplift resulting in the inundation of turbiditic flows (Acacia Gap Quartzite). All of the Palaeoproterozoic rocks show evidence of being affected by penecontemporaneous, basement circling faults with steep dips. The stress regime during the deposition of the Frances Creek Group was characterised by alternating episodes of thrusting and transpression. Periods of relaxation also occurred. The compression resulted in major NS strike-slip (transpressional) faulting, en-echelon NNE trending folds and NW-SE tensional cross faults. Thrusting produced N-S striking, steep dipping reverse faults and a possible decollement immediately above the Batchelor Group. Relaxation is evidenced by the intrusion of lamprophyre dykes and dolerite sills (Zamu Dolerite). Mineralisation at Woodcutters occurred in faults within the Whites Formation, probably synchronous with deformation and the deposition of the upper parts of the Frances Creek Group. Greenschist facies metamorphism occurred as the rocks were further buried. Several massive sulphide bodies occur at Woodcutters. A number of features influence the location and shape of these bodies. They are: ò the N-S transpressional faults and in particular associated dilation zones; ò intersection of the N-S transpressional faults with the axial plane of the NNE trending Woodcutters Anticline; ò intersection of the N-S transpressional faults with the NW-SE cross-faults; ò intersection of dololutite rich units with the NS transpressional faults where local replacement takes place; ò thickening of the lithological units in the vicinity of the anticlinal axis; and ò the anticline doubly plunging to both the north and south. The mineralisation exhibits vein-like features as well as epigenetic textures. Its boundaries are sharp, its thickness varies rapidly down dip and along strike, and no alteration halo exists though stringer veins of quartz-carbonate-pyrite ¦ sphalerite/galena occur in close proximity. A number of sulphide mineral assemblages have been recognised, each separated by periods of deformation and partially replacing the earlier assemblages. Vertically continuous zonation patterns highlight the presence of rich galena-sphalerite-silver in zones of maximum dilation and pyrite-arsenopyrite-gold concentrated at the along strike peripheries. The genetic model proposed has the mineralisation occurring whilst the transpressional regime was active. It was deposited from the same fluid that elsewhere in the Geosyncline formed the stratiform deposits higher in the sedimentary pile. Hydrocarbons sourced from the organic-rich Whites

Jan 1, 1994

Longhole open stoping was introduced in the zinc-rich 'B' lode at New Broken Hill Consolidated Limited (NBHC) during 1968. Since then one longitud- inal and a series of transverse longhole open stopes have been developed. The longholes are drilled using Gardner Denver airtrac drilling jumbos and the broken ore is loaded from drawpoints and transported to chutes using Wagner ST5 scoop- trams. The holes were drilled from sill stopes 160 ft apart. The width of an emptied transverse longhole stope was successfully widened by blasting rings of blastholes drilled parallel to the stope wall. Proposed stope and pillar designs for a series of transverse longhole open stopes were assessed using a method of finite element analysis, applied to a longitudinal section through the area. Blastholes have been surveyed for dip and bearing using an Eastman borehole survey camera. The data produced has provided the basis of a study of blast- hole deviation. Deviation of boreholes is considered to be the major cause of the formation of benches in longhole stopes.

Jan 1, 1971

By S Hapugoda, H Han, L Lu

Charcoal produced from Syzygium Zeylanicum trees was widely used in ancient Sri Lankan iron smelting practices. Charcoal made from Syzygium Zeylanicum tree trunks, branches and leaves were analysed by optical mineralogy and SEM and found to contain unusually high concentrations of calcium oxalate (CaC2O4.H2O – CaOx) crystals in plant cells. Partial and full reduction tests of a high-P Brockman ore were conducted at several temperatures with coke and coke doped with CaOx and CaCO3. It was observed that CaOx promoted reduction and generated comparatively more metallic iron in reduced samples. Furthermore, CaOx encouraged phosphorous partition into slag phases than into the metallic iron, suggesting CaOx can a potential alternative fluxing material to calcium carbonate for treating high-P iron ores in ironmaking processes.

Sep 18, 2023

By J Hadjigeorgiou

Narrow vein mining, as most types of mining, faces important geotechnical challenges. The specificity of geotechnical challenges in narrow vein mines stems from the nature of the deposits, which are often inclined, discordant and found within fractured rock or faults or in shear zones within country rock. This complicates the construction of representative geomechanical models and limits the applicability of several engineering design tools. Furthermore, in certain cases, the severity of encountered geotechnical problems is considerably greater in narrow vein than in wider orebodies. This paper provides an overview of geotechnical and other challenges in narrow vein mines with a focus on how these are currently addressed. Of particular concern is the use of manual labour working close to the mining face where there is greater exposure to geomechanical hazards. This review concludes with a particular emphasis on understanding the limitations of commonly used engineering tools and techniques to address geotechnical problems in narrow vein mines.CITATION:Hadjigeorgiou, J, 2012. Geotechnical challenges in narrow vein mining, in Proceedings Narrow Vein Mining 2012 , pp 15-22 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By M Henderson, M Hudyma

Mining-induced seismicity at Junction Gold Mine became a serious operational problem in the late-1990s. Assessing the local seismic hazard is an important step in assessing the risk associated with potential rockbursting. This paper discusses the qualitative and quantitative means of assessing seismic hazard used at Junction. In qualitative hazard assessment, the role of the primary factors contributing to mining-induced seismicity and rockbursting are identified. These factors include: rock mass properties, geological structures, mine development, and stoping. A qualitative seismic hazard map has been developed considering these factors. In quantitative hazard assessment, seismic source parameters from an Integrated Seismic System are used to assess seismic hazard. The seismic source parameters found to be relevant to seismic hazard assessment at Junction are discussed.

Jan 1, 2002

By A I M Ritchie

The pyrite oxidation rate is a process central to both the performance of bio-oxidation heaps, used in the pre-treatment of some refractory gold ores, and to the levels of pollution in acid rock drainage (ARD) from pyritic waste rock dumps. A goal in bio-oxidation heaps is to achieve high oxidation rates in the heap as a whole. In comparison, one way to mitigate the environment impact of ARD, is to reduce the overall oxidation rate in the waste rock dump since pyrite oxidation is the primary pollutant generation process. In both bio-oxidation heaps and waste rock dumps the overall oxidation rate of the pyritic material (the intrinsic oxidation rate) at these sites. Much research has been conducted over the last 40 years or so on the oxidation rate of pyritic material with particular emphasis on the catalytic role played by bacteria. More recently mathematical models and field measurements have clarified the extent to which oxygen transport rates are rate limiting, what the dominant oxygen transport mechanisms are and the physical properties of the heaps which have most impact on these transport rates and on the overall oxidation rate. How the performance of bio-oxidation heaps can be optimised and how the pollution load in drainage from waste rock dumps depends on gas transport mechanisms is briefly reviewed. The sensitive of the overall oxidation rate in bio-oxidation heaps and waste rock dumps to details of the intrinsic oxidation rate is quantified.

Jan 1, 1994

By S Nkwanyana, I Govender

Batch experiments in a 0.6 m diameter mill have shown that improvements of about 13 per cent in the efficiency of energy utilisation can be realised in ball mills by replacing 25 per cent of the ball charge by an equivalent volume of cost-free critical size pebbles from AG/SAG mills. For a mill of a given size, speed and charge filling, the rate of size reduction of ore particles depends on (i) the frequency of grinding media collisions (ii) the probability of capture of ore particles between the colliding grinding media (iii) the probability of fracture of the captured particles. The probability of fracture depends on the magnitude of collision energy. The distribution of collision energy into shear and impact events determines the relative strengths of attrition breakage and impact breakage. The efficiency of energy utilisation depends on which of the two mechanisms of breakage is more desirable in a particular milling stage. In this paper collision data from a series of DEM simulations of a mill charged with steel media and a mixture of steel media and pebbles is presented in energy spectra and spatial distribution maps. The data provides the necessary detail to elucidate the improvements in the efficiency of energy utilisation in ball mills when using a mixture of pebbles and steel media.

Aug 24, 2022

By Pilkington T, Noy A

The Yallourn North Extension (YNX) open cut mine ceased mining operations in early 1989. YNX may be used again for coal supply at the discretion of the Coal Corporation Of Victoria (CCV); this has resulted in the need for interim rehabilitation of the site which may last many years, or indeed, permanently.The site has suffered substantial surface erosion over the years with large areas of bare clay and coal batters remaining exposed. The first priority is to reduce the quantity and improve the quality of stormwater runoff from the site. This is best achieved by appropriate revegetation and the use of existing landform depressions as silt trap/wetland areas. Proposed rehabilitation needed to take into account the sensitive fire safety of the open cut and the option to re-open the mine if CCV deems appropriate.The authors detail the factors involved in the rehabilitation proposal and the multi-disciplinary approach to planning including engineers, scientists, a forester, landscape architects and community input. The rehabilitation design included early consideration of land use and ongoing maintenance issues linked to water quality improvement factors including vegetation. Engineering input was required for reshaping and clay covering exposed coal batters and the design of silt traps which will revert to wetlands in future. The integration of each discipline has produced a rehabilitation design pleasing to both the SECV and community alike.

Jan 1, 1992

By Kramadibrata S

Over the years many attempts have been made to develop a means of assessing the excavatability of rock. Most of them are based on an empirical rating system while some authorities still propose the use of seismic velocity as a direct predictor of the rippability of a rock mass. On the other hand there are a number of classical models which have been developed to define the cutting force required at the pick or tooth of continuous miners.While these methods have been applied with various degrees of success to the design of excavation systems there is no generally acceptable method of defining the excavatability or cuttability of a rock mass in terms of the machine power required to generate a particular rate of production.The authors have attempted to overcome this deficiency by recording the intact and rock mass properties at a number of surface mines where continuous miners were in use and to use this data to examine the relationships between the relevant dimensionless groups developed from a dimensional analysis of the problem.The results obtained are encouraging and it appears that this new approach to the problem could lead to civil and mining engineers having a means of predicting the cutting power required to excavate rock at a given rate at any site.While this paper does not include a review of past work it refers to a number of key publications which will give the reader an excellent introduction to the subject.It is important to point out that the research work reported in this paper is part of a doctoral research project at Curtin University of Technology on the Influence of Intact Rock and Rock Mass Properties on the Design of Surface Mines. One of the major objectives of this project is to explore the possibility of developing a technique for predicting the excavatability of rock in surface mines at the design stage.This paper therefore commences with a brief reference to the continuous surface miners in use at the test sites followed by some original work by the authors in applying Dimensional Analysis to analyse the macro-performance of mechanical excavators. Following an analysis of the experimental data the authors validate the wider use of the model by referring to its successful application in predicting the power required to excavate rock by continuous surface miners at other sites.

Jan 1, 1995

By B J. Monaghan, R J. Longbottom, S Prabowo, D Del Puerto, B Maisuria, C W. Bumby

The use of hydrogen as a reducing agent can substantially reduce carbon dioxide (CO2) emissions from the ironmaking process. Iron ore fines can be reduced in a fluidised bed (FB) using hydrogen (H2) at high temperatures (>800°C), although several studies have reported the sticking of particles which causes the bed to defluidise, effectively shutting down the process. Here, we report results from the reduction of New Zealand (NZ) titanomagnetite (TTM) ironsands in a small-scale laboratory FB (100 g) at temperatures between 800–1000°C using H2 flow rates up to 5 standard L/min. No sticking phenomena are observed under any of these conditions, which is attributed to the formation of a stable titanium-bearing oxide layer on each particle’s exterior, preventing iron-iron contact at the particle surfaces. Pre-oxidised NZ TTM ironsands have also been studied and shown not to stick. Interestingly, at lower reaction temperatures the reduction kinetics for pre-oxidised ironsands is faster than for as-received ironsands. This increased kinetic rate can be attributed to the preoxidation stage inducing micro-fractures that create a void for the hydrogen to diffuse into the inner regions of the particle. In addition, oxidation of TTM appears to segregate the particle into two distinct phases, a high Aluminium-Magnesium (Al-Mg) phase and a high Titanium (Ti) phase. The findings are important as increasing the operating temperature of the FB reactor results in a faster reaction rate and higher gas utilisation, making the process more economically attractive. Furthermore, oxidation of NZ TTM ironsands results in a faster reduction rate at lower temperatures (800°C– 900°C) opening the opportunity to reduce the reaction temperature which might be beneficial in a final commercial-scale process.

Sep 18, 2023

By H Jalalifar, N Aziz

In the ten years since the University of NSW proposed a pillar design methodology for bord and pillar operations, the Australian coal mining industry has changed substantially. What was primarily a bord and pillar design approach is now being applied to chain pillar design in longwall mines where the requirements are substantially different. The dimensions of chain pillars can impact on tailgate conditions (roof, rib and floor), seal performance, and surface subsidence. The status of chain pillar design practice in Australia is reviewed, with a focus on defining pillar strength, chain pillar loading, and assessing the performance of the roof/pillar/system. A new pillar strength equation is proposed for Australian coal that applies for all width/height ratios. An alternative analysis of probability of failure of chain pillars is presented.

Jan 1, 2005