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By D Hunter, N Cusworth, J Miller

"Recent project failures have called into question the use and relevance of benchmarking and independent reviews, forcing a rethink of traditional processes and procedures.With cost estimates and schedules dramatically varying from lows seen around the global financial crisis to peaks experienced in the recent mining boom, benchmarking has ranged between essential and misleading.Profound shifts are now underway in future project delivery strategies as the market moves away from cost-plus engineering, procurement and construction management. The current trends in project implementation are to utilise more lump-sum design and construct or fixed-price supply and construct contracts. This trend will remove transparency in detailed cost information by reducing the sources and clarity of cost data.Independent peer reviews (IPRs) of studies and investment recommendations performed over the last decade have both failed to prevent flawed or deficient projects from proceeding to approval and funding, and been successful in ensuring that owners did not proceed with doomed investments.In recent times, it has been recognised by some owners, contractors and engineers that traditional benchmarking checks or IPRs, or a combination of both, will not necessarily produce reliable assessments of study conclusions and of the forecasts of project outcomes. To be of value, the benchmarking process now also needs to recognise the highly volatile responses from the engineering and construction industry to the current and future markets for their services.Similarly, reviewers who draw upon benchmarks of past project experiences on an understanding of the things that shaped and influenced their outcomes need to be more aware of how a future dynamic market may impact the outcome of the projects and raise warning flags accordingly.With the commodity cycle currently approaching what is hoped is its bottom, ensuring that benchmarking and independent reviews evolve into reliable, transparent and worthwhile processes becomes even more important. This can only be achieved with more transparent and analytical benchmarking and business-orientated reviews that both recognise and calculate the impacts of dynamic markets on project implementation.CITATION:Cusworth, N, Hunter, D and Miller, J, 2016. The role of benchmarking and independent reviews, in Proceedings Project Evaluation 2016, pp 249–259 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By E J. Hancock, K H. B Chu

Failures within hard rock underground excavations have historically been defined by a depth of failure, estimated in the field or through individual measurements, with a simplified failure geometry; such as 1/3 span, cubic or paraboloid. This simplified shape, volume and mass of failure is typically used to estimate in situ demand as a simplified discrete point. However, the highly variable failure geometry indicates simplified methods to estimate the mass can be erroneous in comparison to high precision LiDAR scans. Advances in technology have enabled the accurate capture of failure geometry and allow a far more accurate analysis of failures to be completed. This case study investigates a number of real-life failures to accurately define the failure geometry, the distribution of the failure parameters and compares this to traditional methodologies. This paper also outlines a suggested means of standardising failure geometry parameters whilst accounting for their variability.

Nov 29, 2022

By A R. Bonani, M P. Pe±a

The optimisation of slope angles, that is to say, increasing them, compared to the original design is always the subject of analysis of stability for geotechnical engineers and economic analysis for planning engineers. Questions to be answered include: What is the acceptable risk? What factor of safety? What probability of failure or reliability? The Rosario Open Pit has a history of failure, poor quality rocks and high pore pressures. It was decided to deepen the pit below the programmed design to test the practicality of different design approaches, which if successful, could be used to improve the economics of mining at Collahuasi. The revised slope design has factors of safety in the range of 1.0 to 1.2, probabilities of failure of ten to 38 per cent, and increased slope angles of between 3¦ and 5¦ with respect to the original design. The pit deepening with these design slopes will deliver an extra two million tonnes of ore which will have a significant positive impact on mining economics.

Jan 1, 2007

By D J. Williams, S Islam

Worldwide production of black coal amounts to about 8 billion tonnes. Perhaps 20% of this annual production is washed to improve its quality, generating perhaps 250 million tonnes of coal tailings annually, generally in the form of a slurry. The coal tailings slurry is typically thickened to about 25% solids by mass prior to disposal to a tailings storage facility (TSF), and hence comprise mostly water (about 85% by volume), plus sand, silt and clay-sized mineral particles and carbonaceous material. While the tailings settle and consolidate on deposition in the storage facility, their high moisture content makes them prone to run-out should the tailings dam fail, and makes rehabilitation of the tailings difficult. Hence, it is important to understand the consolidation and shear strength of coal tailings. Laboratory consolidation testing of coal tailings from a slurry to a soil-like state has been carried out in a purpose-built, large-scale, slurry consolidometer, instrumented with load cells and pore water pressure (PWP) transducers. Laboratory vane shear testing of coal tailings produced at different gravimetric moisture contents has also been carried out. The test results have allowed a regression model to be developed relating the peak vane shear strength of the coal tailings to their gravimetric moisture content.CITATION:Islam, S and Williams, D J, 2018. Consolidation and shear strength of coal tailings slurries, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 62–71 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By S Jayakumari, E Ringdalen, V Canaguier

Silicomanganese (SiMn), containing approximately 16–30 per cent Si, is produced in submerged arc furnaces using various Mn sources and quartz as the primary raw materials, along with fluxes and reductants. In the high-temperature zone known as the coke bed, a silica-rich slag is formed. SiMn is produced through the reduction of SiO2 from the slag. Dissolution of quartz into slags with different compositions, the primary slag formed from the Mn sources and flux before any MnO reduction occurred, representing conditions at the top of the coke bed, and dissolution of quartz into a partially reduced slag to simulate conditions inside the coke bed has been investigated. Experimental investigations were carried out to study the dissolution of quartz particles of varying sizes, 5 mm and 25 mm in synthetic slags with different compositions at temperatures between 1400°C and 1600°C, with varying holding times. Observed results are compared with liquidus compositions and equilibrium phases for original and formed slags. Particle size has been shown to be of little importance for the dissolution. Quartz dissolved more easily in slag at top of the coke bed than slag in the coke bed. Complete dissolution was observed after 30 mins at 1600°C in all cases, but not after 0 mins.

Jun 19, 2024

By JSrvinen A, Yll÷ E

At Cominco's Zinc Refinery at Trail, British Columbia impurities are removed from zinc sulphate electrolyte by a two-stage purification process using zinc dust. Copper, cadmium and thallium are removed in the first stage whereas cobalt is removed in the second stage. Cobalt removal kinetics are affected by soluble antimony and copper additions to the electrolyte. This study was focused on the kinetics of cobalt removal by zinc powder cementation. Experimental variables included copper and antimony concentrations, pH and temperature. Common organic additives employed in zinc plants were studied to determine potential interactions with the cobalt removal process. Cementation products obtained from laboratory experiments and plant practice were studied using SEM. A number of significant results were obtained: 1. Copper and antimony ions were sustantially removed from solution during the early stages of the cementation reaction (within the first 15 minutes). Cobalt cementation kinetics are slow and follow a first order kinetic regime. 2. A drop in the cobalt removal rates can be correlated with a rise in the Eh of the slurry. 3. Ligninsulphonate, Percol 351 and animal glue at levels of 2 mg/L significantly impede cobalt cementation.

Jan 1, 1993

The mining of high-grade narrow vein deposits is a predominant field of activity in the precious metal sector. These types of deposits are located throughout the globe and have a significant presence in mining operations. The principle factor that has undermined the profitability and effectiveness of mining such ore zones is the substantial dilution that occurs when blasting with explosives during extraction. In order to minimise ore dilution, the thermal fragmentation mining method enables the operator to extract a narrow mineralised corridor, 30 cm to 1 m wide (according to the true width of the ore vein). By inserting a strong burner powered by diesel fuel and air into a pilot hole previously drilled directly into the vein, a thermal reaction occurs spalling the rock and enlarging the hole to 30 - 100 cm in diameter. This patented method produces highly concentrated ore, resulting in 400 - 500 per cent less dilution when compared to conventional mining methods. The mining method was conceived with the aim of mining ounces, not tonnes. This method of extraction, reduces the environmental impact of mining operations since much smaller quantities of rock are displaced, stockpiled, and treated using chemical agents. The fully mechanised equipment operated by a two-person team, maximises the effectiveness of skilled personnel, increases productivity, and reduces risks of injuries. Important economic benefits are generated for large- and small-scale mining operations alike. For large-scale operations, the mining method increases mining reserves, lowers the cost per ounce, and increases the total profitability of existing mine operations. The method also significantly lowers costs and risks of developing and mining small-scale deposits, requiring less investment capital, shortening the payback period, thus reducing the lending risk.  Combined with a small modular processing unit able to process between 100 - 300 tons per day, the method substantially lowers the financial break-even point for small-scale mining operations in a narrow vein environment. The company has been working with the technology at its Rocmec 1 mining site; results achieved and future developments are discussed.

Jan 1, 2008

By J Rayner, R P. Langmead, J A. R Coote

Gosowong is situated within the Neogene magmatic arc of Halmahera island in the Maluku province of eastern Indonesia. It was discovered as the result of a rigorous ground reconnaissance program in an area with no previous mining activity. The broad structural setting in the Gosowong District comprises an elongate dome formed by the forceful upward intrusion of magma along a deep-seated structure, resulting in associated tensional fracturing trending parallel to the long axis of the dome. Four copper-gold porphyries and numerous low-grade epithermal veins occur within this mineralised corridor, with the Gosowong Deposit being the only economic occurrence discovered to-date. Gold mineralisation is hosted within multiphase epithermal quartz-adularia and quartz-chlorite fissure veins, breccias, and stockworks. High-grade gold mineralisation is emplaced in two gently south-plunging ore shoots along a 400 m section of the north-striking, east-dipping, Gosowong Fault, the primary control on mineralisation. The Gosowong Fault is believed to be a tensional fracture associated with uplift of the dome. Lithological variation and structural intersections play a large role in grade distribution within the vein zone. Host rocks comprise a wide range of shallow marine, intermediate-basic volcanic and volcaniclastic rocks of ?late Miocene age. The Gosowong gold deposit is a classic example of a low-sulphidation epithermal gold deposit, based on the abundance of adularia and illite in the alteration assemblage, and low base-metal sulphide content within quartz-adularia veins. The indicated resource is estimated at 0.99 Mt at 27 g/t Au and 38 g/t Ag for a total of 870 000 ounces Au, using a cut-off grade of 2 g/t Au.

Jan 1, 1999

By S Talu, E Savage, P Sturm, A van As

It is estimated that substandard ground support installations and elements cost the Rio Tinto Copper Group millions of dollars between 2000 and 2014. These issues have also created significant safety and financial risks in Rio Tinto mines. As a result, Rio Tinto Copper has developed CaveCAD, an integrated system to collect, store and analyse all ground support-related data. The CaveCAD system stores geotechnical data and has the ability to automatically import data, collect data through tablet applications, report processed/analysed data and present this data through 3D visualisation software.The CaveCAD Ground Support module closes the design–implementation–verification loop by providing a method of verifying the compliance of all installed ground support, recording manufacturer specifications, recording quality control test compliance and rectifying any non-conformant areas. The module uses innovative technology to create value through cost saving, safety improvements and data collection efficiency. Cost savings will be achieved by a decreased need for excavation rehabilitation, less ‘waste’ due to faulty installation and quality assurance checks reducing the likelihood of substandard support units being used. Data collection will be improved through the use of a mobile tablet application that can be used underground in ‘off-line’ environments.CITATION:Savage, E, Talu, S, Sturm, P and Van As, A, 2016. Development and implementation of the CaveCAD ground support module for cost and safety improvements in block cave mines, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 769–772 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G S. Beros, K M. Edwards

Over the past 20 years drum scrubbers have become a widely adopted technology within iron ore beneficiation plants. Generally, the drum scrubbers in use are considered high-capacity machines capable of accepting larger-sized feed material. Together with a water addition to a desired pulp density and a mild energy input, these large rotating machines effect an attritioning action that removes water soluble clays and other deleterious materials. Within the Western Australian iron ore industry, drum scrubbers have been successfully applied to Channel Iron, Marra Mamba, Bedded and Detrital orebodies. The introduction of drum scrubbers has enabled Western Australian producers to satisfy the substantial increase in demand for iron ore from Chinese steelmakers by making the lower-grade sections of the above orebodies economic. However, despite being a relatively simple unit process, the requirements for successful design and operation of these machines are not fully understood. This paper draws on the collective experience of both authors to provide some points to consider for incorporating drum scrubbers into iron ore beneficiation plant flow sheets.

Sep 18, 2023

By J E. Moffatt, N A. Spooner, T J. de Prinse, D J. Ottaway, E Klantsataya, L d. S Teixeira, B W. Smith, T B. Payten, G Tsiminis

Single wavelength fluorescence sensing has been used in the preconcentration of ores for many years in situations where it is typically specific to the mineral of interest. Examples of fluorescence sensing include the sorting of diamonds in diamond mines and the sorting of scheelite in tungsten ores. However, the number of minerals that show useful single wavelength fluorescence properties in the visible spectrum is relatively small, so the application of fluorescence sensing is currently limited to niche application in the minerals industry. Recent developments at the University of Adelaide have focussed upon extending fluorescence signal measurements into the infrared spectrum, as well as investigating multi-wavelength fluorescence known as up-conversion fluorescence. These techniques may not only significantly increase the number of minerals that exhibit fluorescence properties suitable for both identification and sensor-based sorting, but also provide mineral-specific signatures of higher quality than previously attainable. This paper details the research work carried out by the University of Adelaide and funded by CRC ORE to develop a mineral-specific fluorescence sensor. The sensor targets two fluorine bearing minerals, fluorite and fluorapatite, that are common in many base metal ores such as porphyry copper ores and silver/lead/zinc ores. Fluorine is a known penalty element in mineral products derived from these ores, so mining companies need to monitor and control the amount of fluorine in their final product to keep it below commercially agreed specifications. Currently there is no real time sensor capable of monitoring fluorine in the ore feed so monitoring and control is carried out using time-consuming standard sampling and off-line laboratory measurements. The development and application of a real time fluorine sensor will enable the mining companies to monitor and control fluorine levels in the plant, greatly reducing the time and cost associated with producing their mineral concentrates within the prescribed specifications.

Nov 10, 2020

By D FitzGerald

A critical component of any new tunnel design in a complex geological setting is the development of an integrated three-dimensional (3D) geology model with a full set of geotechnical properties of the rocks present. A novel means of predicting the geology based upon sparse observations of structural geology at the surface and from drill holes has been developed and used in several major tunnel studies in Europe.An example of this is the Lyons-Turin twin rail tunnel which is still in a development phase. This tunnel has been in planning and development for over 15 years already. An important aspect of this work is to characterise geological uncertainty along various possible tunnel paths as an input into early design optimisations for time, cost and risk avoidance strategies. Once the tunnel works commence and more detailed geological data is collected by daily mapping, progressive refi nement of the geological model is desirable; geological conditions still to be encountered can be more accurately predicted. Faults and their offsets, dykes, geological unconformities, folding, as well as standard sedimentary processes are all correctly modelled in the software. It is important to allow for seamless interchange of geological models at various scales with CAD workflows so that sufficient detail can be readily accessed at the required scale. Also, the proposed tunnel in its correct geometry can become a ‘section’ in its own right. Progressive detailed local geology models in the vicinity of the advancing head are created from the regional scale work by cutting and pasting a starting model, then adding all the extra detail for the required engineering geology work.For all rocks, most standard geotechnical quantities such as sonic velocities, Young’s modulus and Poisson’s ratio are handled. These and any other phenomena from borehole observations can have variograms calculated and stratigraphically constrained estimations made in a least biased geostatistical manner, in advance of the tunnel. RQD, or a prediction of rock fractures, is handled by the faulting and folding modelling facilities. This is probably the more interesting issue to pursue, as the fractal nature from small scale fractures and joints, to large-scale faults, can now be characterised more convincingly.

Mar 8, 2011

By E Kabwe, E Chanda, M Karakus, S Akdag

The Convergence Confinement Method (CCM) is one of the frequently used methods that considers the ground response to the advancing tunnel face. The CCM analytical solutions represent stress relaxation on circular tunnel walls in a rock/soil media. The CCM analytical solutions is based on circular tunnel geometry and consider a hydrostatic stress field in a homogeneous isotropic rock mass condition. However, noncircular tunnel geometries, non-hydrostatic stress field, staged excavation process in a discontinuous anisotropic non-linear rock mass conditions are usually ignored in these analytical solutions. In this paper, we investigate the performance of the existing CCM analytical solutions developed for elastic and elastoplastic ground behaviour for circular tunnels. For this purpose, a finite difference analysis is conducted to compare the analytical results with the results obtained from Finite Difference Method (FDM) for a chosen rock mass condition. Results obtained from the investigation shows that floor, crown and wall displacement are 30%, 10% and 23% more, respectively, in a horse-shoe relative to a circular tunnel. This indicates that the application of analytical formulation tailored for circular tunnels would lead to inaccurate quantification of wall convergence in horseshoe-shaped tunnels. CITATION:Kabwe, E, Karakus, M, Chanda, E and Akdag, S, 2018. Investigating the tunnel closure using convergence confinement method and 2D plane strain finite difference analysis, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 152–159 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By Chappell B

Backfill in the form of mine waste tailings has inherent problems associated with attaining adequate strengths upon placement. Fines are usually removed to ensure adequate drainage, which lowers the cohesive strength of the fill, leaving the fines to he placed in a tailings darn. Electro-drainage and electro-chemical grouting is examined to investigate its effects on densification and shear strength within a silty clay tailing having low permeability and shear strength. Two separate grouting mechanisms are observed for the iron and silica grouts used. Electro- osmosis is associated with iron grout that deposits within the tailing matrix under a converging pH gradient, and increases the permeability of the tailing. This process initiates cation exchange and causes cementing of the granular contact points between the clays. Electro-phoresis causes sodium silicate solution to deposit silica grout in the voids of the tailings. The resultant effect of these mechanisms results in an increase in cohesion, leaving the void ratio of the iron grouted tailings as it was but significantly reducing the void ratio of the silica grouted tailings.

Jan 1, 1998

By S D. Fox, P B. Swart

Statistics showing that mine rehabilitation is falling behind rates of disturbance continue to be reported in the media. Unfortunately, most reported statistics do not account for the large growth-cycle that mining in Australia experiences, where there are typically significant new disturbances with large portions of these areas not being available for rehabilitation for a number of years. Many commentators assert that better planning is required to ensure that rehabilitation will be able to achieve a safe, stable, non-polluting landform that meets the agreed post-mining landuse.This paper focusses on the revegetation aspects of mine rehabilitation and in particular the matters that need to be addressed in the planning stage so that revegetation success is ultimately able to be demonstrated to regulators and other stakeholders.CITATION:Fox, S D and Swart, P B, 2018. Planning revegetation for relinquishment, in Proceedings Life-of-Mine 2018, pp 113–115 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By H Jones

The paper outlines the adoption and evolution of ‘sustainable development’ as a concept in tailings management practices in the mining industry over the last 30 years. Over 500 lives have been lost in tailings facility accidents since World War 2. The paper outlines commonalities in many of these accidents, particularly the role of excess water. It considers the role effective tailings management can play in enhancing the social acceptability of mining in the future.Tailings management is a major operating cost at many mines while the cost of successfully closing tailings facilities is also very high. Current tailings management practices in the industry are outlined. The technical and engineering challenges of reducing potential risks associated with tailings by reducing water entrainment are described. The successful development of practical techniques to better manage tailings and reduce water consumption and wastage are described. For example, water removal in the alumina industry to produce a paste for dry stacking is now a reality.The future adoption of these new risk reducing techniques by the industry is discussed and the implications of the adoption or non-adoption of these techniques on the industry’s future ‘social licence’ is considered.

Nov 22, 2011

By R van Wyk

In today’s mining environment the use of heavy mechanical devices and other high-tech electronic devices like two-way radios, cellular phones and even automated mining systems, form a vital part of the daily operations of a mining site. These human-made devices and some of the naturally occurring events, like lightning and gamma radiation, can have negative effects on electronic detonators and the associated control equipment.On larger mining operations the necessity to move the point of safety for blasting further away from the blast area, introduced remote firing via radio frequencies for electronic detonator systems. Other influences on electronic detonators can be abuse or ignorance. To ensure the safety of the end-user, an electronic detonator must be resistant to some common mistakes that users can make. One of main concerns here is resistance to static discharge or incorrect wiring. Despite the daily use of electronic detonator solutions, scepticism and concern still exists amongst those who believe the system raises the risk of a premature initiation of the blast through some form of interference trigger.This paper will help users understand how electronic detonators and the associated control equipment protects itself from external influences. Focus will be on protection schemes to counter static and over-voltage discharge and methods to ensure protection of secure wireless radio links and detonator communications. With well engineered communication systems and solid static and over-voltage protection, an electronic detonator system can be more reliable and safer than other detonator systems. The following main points will be discussed:what makes a detonator an electronic detonator,static electricity and over-voltage protection,the general influence of electromagnetic energy on the detonator,the influence of lightning on detonators,the protection of radio communication’s links as used by remote firing equipment, andthe safety protection features built into remote firing equipment.

Nov 8, 2011

By B Tutmez

Determination of stress-strain behaviour of rocks plays a crucial role in understanding the response of rocks during loading. However, it is a tedious, expensive and a time-consuming process to obtain such characteristics both in the laboratory and in situ. On the other hand, non-destructive testing methods such as ultrasonic velocities can produce a reliable and fast solution to indentify state of strain and stress in rocks. The present paper aims to provide insight into the relations amongst ultrasonic wave velocities, amplitudes and deformability properties of porous siltstone under compressive loading. For this purpose, pulse (vP) and shear wave velocities (vS) along with amplitudes (AP - AS), and applied loads with resultant strain were measured simultaneously so that response of siltstone to compression can be evaluated. In addition, initial vP and vS were recorded at the beginning of each test to calculate dynamic elastic properties of the specimens. This provided a comparison between static and dynamic elasticity properties of siltstone. Crack damage associated with the onset of dilation was also investigated. The results showed that there is a non-linear logarithmic relation between velocities and stress-strain level for siltstones.

Sep 26, 2011

By S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

Uncertainty about the future and orebody should significantly impact evaluation of mining projects. Scenario planning, widely used in other industries, for example in the petroleum industry, can provide organisations with an opportunity to explore the consequences of uncertainty on their future plans. By developing plausible scenarios, scenario planning assists decision makers by allowing them to make systematic and possibly effective decisions for the future. This paper reviews existing mine project evaluation in the context of a new framework called scenario-based project evaluation (SBPE) (Vann et al , 2012) that addresses many shortcomings of existing approaches. SBPE uses conditional simulations (CS) models as inputs which are evaluated against future alternative project pathways (æalternativesÆ). These alternatives are evaluated using multiple plausible images of the deposit (CS realisations) which capture realistic variability and as an ensemble, map uncertainty of various orebody attributes at fine scale. The alternatives can involve different mining, stockpiling, blending and processing strategies. The ultimate output is a (stochastic) set of cash flows for each alternative from which financial measures, such as NPV, can be derived. Alternatives can then be explored in the presence of against external scenarios such as changes in prices, costs, and taxation. The obvious problem with such data rich results is knowing which scenarios or group of scenarios are optimal.An innovative approach to robust stochastic optimisation (RSO) suited to the SBPE framework is presented here for the first time. This approach to RSO aims to deal with the large number of alternatives generated from SPBE. The goal of applying the RSO approach to SBPE is to identify robust strategic alternatives (project configurations) which have the flexibility to deal with variability and uncertainty of geological and processing inputs such as density, grade and process performance. By applying the proposed RSO method, it is possible to deal with uncertainty and identify the best project configuration in the face of a large number of envisaged scenarios. A case study is provided, in which we have tested the application of the proposed method and compared the result with conventional methods. An important conclusion from this research is that selecting the value of the penalty coefficients in the RSO approach proposed is (as is all optimisation) an exercise of trade-offs; a higher net present value (NPV) is generally associated with a higher risk and a lower risk is associated with a lower NPV. Indeed, this is a strong argument for considering the RSO approach outlined here over more conventional approaches.CITATION:Moayer, S, Vann, J, Coward, S, Jackson, S, Bye, A and Wolff, R, 2012. An innovative approach to robust optimisation for scenario-based mineral project evaluation, in Proceedings Project Evaluation 2012 , pp 141-148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By N Madani, S Abulkhair, N Morales

Conventional geostatistical algorithms cannot reproduce bivariate complexities such as inequality constraint, nonlinearity and heteroscedasticity. Poor reproduction of these features may decrease the accuracy and reliability of mine planning results. For example, it is not unusual to have an inequality constraint between primary and disturbing elements in a metalliferous deposit. Implementation of traditional methodologies for such complex data sets can lead to the incorrect reproduction of a bivariate relationship, which will affect the validity of NPV results. In this paper, an iron data set containing iron and silica grades with an inequality constraint between variables is introduced as a case study. This study proposes an algorithm based on a hierarchical sequential Gaussian cosimulation integrated with inverse transform sampling. The proposed methodology considers the linear inequation between two variables in the hierarchical cosimulation process to reproduce an inequality constraint. As a comparison, conventional sequential Gaussian cosimulation is also applied to the same data set to demonstrate the difference in bivariate relationships from both models. Unlike the proposed algorithm, the conventional cosimulation cannot reproduce an inequality constraint and slightly overestimates silica grades. The modelled realisations are then used to assess the uncertainty of a plan and generate a stochastic strategy that adapts the destination of the blocks depending on the scenario. Two-stage stochastic long-term production scheduling takes extraction decisions using average information (ie e-type model) and ore/waste destinations based on geostatistical realisations. As a result, the proposed strategy is closer to the upper bound, highest possible NPV for each realisation, than to the lower bound, deterministic strategy that does not manage the risk of sending extracted material to wrong destinations. Furthermore, Comparing production schedules resulting from proposed and conventional geostatistical methodologies shows the importance of inequality constraint reproduction and more accurate long-term mine planning.

Nov 8, 2021