Search Documents

"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

Ilmenite (FeTiO3) is the primary global source of titaniumdioxide which is commonly used as a whitening agent in papermanufacture and a pigment in paint manufacture. In WesternAustralia ilmenite is processed by the Becher process (Becher,1963, Becher et al, 1965) where ilmenite particles are feddirectly into the furnace with coal and heated to form acomposite of elemental iron and TiO2. The mechanism of thecarbothermic reduction of ilmenite has been extensively studied(Grey, Jones and Reid, 1973; Jones, 1973; Grey and Reid, 1974;El-Tawil, Morse and Francis, 1993) and is reasonably wellaccepted.

Jan 1, 1997

The first hydraulic roof supports were installed underground in 1950s and ever since that time engineering developments have improved the supports in many different ways. However. advances in three main areas, the roof support mechanical design, hydraulic engineering and electronics have ultimately led to the point where, 35 years after that first installation. automation has been achieved and is now commonplace.The history of roof support automation has involved the continual integration of high technology engineering. Thera ate further possibilities for the future which combine to give some idea of the likelihood of there ultimately being a completely manless face.

Jan 1, 1991

By J Euston

In the 1990s round flotation tanks were introduced as a result of the lower fabrication costs for larger cells. It was soon observed that round tanks held a number of further advantages over the traditional rectangular cells, such as better hydrodynamics, lower costs and reduced footprint per unit volume.In the last twenty years flotation cell sizes have increased almost exponentially and designs of 250 to 300m3 are a well established standard with plans for full scale pilot installations of 500m3. The option to install these large cells gives flexibility in circuit arrangements and allows efficient and economic matching of flotation lines with modern mill designs. The benefits of scale up are well known with reduced numbers of cells required, lower power costs per unit volume, etc. These benefits will be briefly reviewed with specific reference to the installation of 300m3 to 350m3 flotation cells at the Copperton Concentrator of Kennecott Copper in Utah, USA.The sophisticated techniques required to model these ‘supercells’ have led to a critical review of the fundamentals of flotation science and engineering. In addition to outlining the advantages of large flotation cells, this paper will review the science which supports, and occasionally challenges, the ongoing trend to larger flotation cells.

Aug 8, 2011

By E J. Sellers, A Cocker

Movement of the fragmented rock mass is an inevitable consequence of open cut blasting. Uncontrolled, unaccounted movement from blasting commonly causes ore loss and dilution from waste mixing. Therefore, the prediction of the post-blast location of both ore and waste is vital in grade control and of direct interest to mining geologists. Direct measurement techniques have matured significantly over the past decade, but their use remains expensive and labour intensive. Access and safety issues are further disincentives to regular movement monitoring. What is needed is a combination of direct measurement to establish baselines and reliable predictive modelling.The W H Bryan Mining and Geology Centre of the University of Queensland has pioneered 3D blast movement modelling using ‘physics engines’ to handle in-flight collisions and predict the final resting place of blasted material. Open cut metalliferous mines are a demanding environment for this style of modelling as they can involve complex geometries and variable buffering, which leads to inconsistent confinement. A version of the model designed to deal with these complexities is under development. A well-controlled field trial was needed to validate this new version.A validation trial was completed at a gold mine in South-East Asia. The aim was to increase throughput by increasing the blast powder factor without losing grade through dilution and mixing with waste. Four blocks were blasted to identify the effect of bench height and face confinement on ore movement, fragmentation and process throughput. The powder factor and blast timing were kept constant. Movement of the broken rock was measured by placing blast movement monitors at known positions in the block and then locating them after the blast. The majority of sensors were recovered, providing a unique insight into blast movement dynamics and generating a substantial data set for model validation.The model (called ‘MetaMove ‘) was calibrated for one blast and applied to investigate the extent of grade loss and possible mitigation strategies. Conventional mining techniques that involved firing across the strike of the orebody, and no post-blast boundary adjustment of the ore/waste boundaries prior to digging, were found to cause up to 44 per cent loss of high-grade ore, depending on the grade distributions. Post-blast adjustment of the ore/waste boundaries can negate this loss. The model indicates that altering timing and ensuring that the block boundaries are well confined can further constrain the movement of ore/waste boundaries. Thus, the model can be successfully applied to minimise grade dilution and limit misclassification of ore as waste whilst using higher powder factors to increase mill throughput. Application of a calibrated model to move ore/waste boundaries prior to digging will enable the production geology team to add significant value to the mining operation.CITATION:Cocker, A and Sellers, E J, 2014. Modelling blast movement for grade control at an open cut gold mine, in Proceedings Ninth International Mining Geology Conference 2014 , pp 377–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By A Hosseinzadeh Barforoosh, A Abedi, M Taji

The effect of blast loads on beams is one of the main issues in the analysis of steel structure. In this study, experimental tests on steel beam under blast loading, and also numerical simulation by the Autodyn software to analyse these structures, is discussed. Experiments on steel beam size of 12 by Emulite4 explosive with 30 mm diameter and cortex is done. The patterns of cutting and bending generated in the two tests (empirical and simulation) show a good match.CITATION:Taji, M, Hosseinzadeh Barforoosh, A and Abedi, A, 2015. Comparison of experiment and simulation of blast loading on the steel beam, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 161–168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By Prosser AP

The large body of knowledge about the relation between chemical process efficiency and mineralogical features is of only limited use. The profession ought to try to improve the methods of using information as well as adding to the knowledge. One attempt isòdescribed. Correlations between process efficiency factors and the mineralogical features of low- grade concentrates have been developed from both a theoretical analysis and experimental measurements. The ultimate recovery of a reactive phase in an inert matrix can be calcu- lated from simple measurements of the particle size, porosity and pore size of the concentrate, and the grain size of the reactive mineral., The rate of recovery, up to 98% recovery, can be calculated from simple measurements of particle size, porosity, proportion of reactive mineral and tortuosity. Some details are given. The correlations are of potential use in process selection and preliminary design. Satisfactory predictions have been made for near-ideal systems. Improvements in the measurement of pore size and tests on more realistic materials are required. The ultimate benefit of the correlations will be determined by the magnitude and frequency of the effects of mineralogical features other than those specified above.

Jan 1, 1975

By M Pyle, R Ch, T Vizcarra, ramohan, G Lane, G Ballantyne

Preconcentration, through gravity separation (Wallace et al, 2015), magnetic separation and particle size (Clout, 2013), has been used in many historical projects to convert low grade material into ore. More recently, pre-concentration technologies such as bulk sorting (Kurth, 2017), screening (Bearman, 2014) and coarse particle flotation (Vollert et al, 2019) have also demonstrated their ability to progressively reject waste through the value chain. These technologies can not only deliver stepchange improvements to the economics of mining operations, but can transform the environmental and social aspects by minimising water and energy consumption and significantly reduce the quantity of fine tailings produced. However, implementing progressive waste rejection requires technologies and approaches to be combined and applied in the right way to capture the value. From a technical perspective, progressive waste rejection introduces challenges related to the orebody, equipment performance, engineering and understanding the value chain from the resource through to final product. From a management perspective, the key issues are related to people and processes, in particular; motivating the business, challenging the paradigms, and introducing new ways of operating within the constraint of existing management structures to manage risks and minimise lost opportunity costs. This combination of technical and management issues means that progressive waste rejection is a complex undertaking for mining companies, yet the reward for the business and other stakeholders is potentially high and should not be ignored. This paper presents how progressive waste rejection can offer step-change improvements to the business case for high and low grade greenfield and brownfield projects based on case studies completed by Ausenco. The paper then outlines different implementation approaches from concept studies to execution to address the various technical and management challenges outlined above.

Nov 10, 2020

By S R. Green, G D. Corder

The legacy issues from mining can, and have often, extended well beyond the closure of operations. However, conventional cost-benefit analysis provides little incentive to implement initiatives at the project development stages of a new mining project as the costs that will be incurred towards the end of the mine life, 20 years or longer, appear minor in net present value (NPV) terms. This analysis can be misleading as the true costs of managing post-mining land can continue for many years, or decades, after mining ceases and any resulting unfavourable legacy issues can delay or prevent government permits or licences to develop new resources. Proper upfront planning is critical for implementing successful rehabilitation and closure strategies. The investment in this planning needs to be done in a structured and rigorous manner taking into consideration the long-term and broad benefits of sustainable land uses after mine closure. The advantages of such an approach could include the streamlining of regulatory approvals by early advice to the regulator of identified issues and responses to those issues, and clear evidence that a strong social licence to operate ethic with local, regional and national benefits is included in the decision-making process. This paper investigates the potential closure options for two case studies at the early stages of project development - concept and prefeasibility. By using a sustainability framework that can identify opportunities and risks, prospective initiatives that deliver enhanced environmental, community and social benefits will be compared with compliance-orientated approaches. This comparison is made across the Five Capitals Sustainability Model - natural, human, social, manufactured and financial. The results of this analysis demonstrate that upfront planning during project development and due care and effort during the life of the working mine will reduce the risks of long-term detrimental legacy issues. This will ultimately benefit the mine operator, the local community and the state.CITATION:Corder, G D and Green, S R, 2012. Using a sustainability assessment framework to achieve enhanced legacy outcomes, in Proceedings Life-of-Mine 2012 , pp 311-318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By J McCluskey, N Barros

"Long-term strategic planning at BHP Billiton’s Western Australia Iron Ore business aims for sustainable value maximisation of its large, long-life, low-cost, expandable mineral inventory and supply chain infrastructure. While mine plans are key components of this value equation, this objective requires a whole-of-business approach through comprehensive consideration and optimisation of the full value chain. Only through a system view do we believe that the value proposition of a set of plans is truly optimised.The fundamental considerations include: mineral inventory information, given its intrinsic uncertainty and risk/knowledge horizon a marketing view of future quality premium/discount based on overall market quality load whole of supply chain optimisation on a throughput accounting basis alternative sequences of capital decisions closure costs with significant magnitude of total movement requiring optimisation as part of the plan. In addition, the plan provides a view of acceptable uncertainty levels at different times in the future.BHP Billiton Iron Ore uses a structured Life of Asset planning process that supports the business with the optimisation of its maximum value proposition through a non-deterministic scenario-based optimisation approach on an annual basis. This is a key input to each year’s medium-term plans and budgets, including activities identified through a value of information approach that resolve the key uncertainties and steadily improve confidence in the plan.CITATION:McCluskey, J and Barros, N, 2014. Life of asset planning, uncertainty and value optimisation of the iron ore business – from exploration, to market, to closure, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 33–40 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By D Craw

Middle and Late Cenozoic fluvial conglomerates and gravel in northeastern Southland record the transport of alluvial gold from Central Otago into Southland, and subsequent reworking and concentration of this gold into economic placer deposits. A corridor of geochemically distinctive, Hg-free gold derived ultimately from veins in Torlesse Terrane schist in Otago extends through the Caples Terrane and into Southland. The initial repository in Southland was fluvial sediment of the East Southland Group, specifically weakly auriferous, quartzose delta plain strata of the Gore Lignite Measures (GLM), a downstream equivalent of Dunstan Formation in Central Otago. Miocene uplift along the northwest trending Old Man Range beheaded the parent river system, isolating GLM from its Central Otago source area and establishing the proto-Waikaia River system. Rising topography between Otago and Southland increased fluvial gradients, and initiated erosion of cover strata and a sequence of tectonically induced gold recycling events. Auriferous GLM were recycled from the hinterland into broad braided fluvial channel and floodplain deposits of the Waikaia Group (new), specifically the highly auriferous Waikaka Quartz Gravels and equivalent Waimumu Quartz Gravels downstream (WQG), superimposing more proximal depositional environments over parts of the former GLM delta plain. WQG were deformed, and locally cannibalised during the later stages of their deposition by reverse movement on north-northeast trending faults of the Dunsdale System (NW side up). Increased tempo of uplift in the hinterland (Old Man, Garvie, Umbrella, and Blue Mountain Ranges) in the Pliocene and early Quaternary resulted in further reworking of GLM and WkQG from the hinterland as well as basement erosion. Progressively more basement-rich detritus was deposited as a locally auriferous piedmont (Gore Piedmont Gravels - GPG) over earlier channel and delta plain (GLM, WQG) strata, extending from the Blue Mountains to Waikaia, and southward through the Gore Gap to beyond Mataura. Southward propagation of the north-northeast trending ranges, local warping, and uplift of the Murihiku Terrane in Pliocene and Quaternary progressively deflected GPG fluvial systems and ultimately constrained them to the present valleys. Pre-existing auriferous strata (GLM, WQG, GPG) were reworked and deposited with or without basement detritus as these fluvial systems migrated toward their present positions. Auriferous remnants of these transitional deposits are preserved in local structural depressions on the uplifted blocks that deflected the systems (eg King Solomon Mine), and on locally abandoned floodplain segments on the lowlands (Pebbly Hills-Gore Gap). The present drainage has continued to incise and cannibalise its own and earlier deposits during late Pleistocene-Recent uplift to form confined channel placers within the present valleys.

Jan 1, 2002

By S B. Fitch, S A. Wilson, A J. R Barr, P R. Searle

Improving the safety culture and performance of any operation is a fundamental goal of every mine operator. Methods of implementing, or changing a culture have developed from the early methods of operant conditioning, for example rewarding crews for achieving nominated safety milestones i.e. 3 months Lost Time Injury (LTI) free through to the current model of engaging a workforce through education and empowerment. As a large scale and mature operation with multiple contractors, Telfer has been exposed to numerous programs throughout its history. This has provided the opportunity to build on and complement these systems by integrating key elements from each. SAFE 360° is a new approach developed to engage the workforce in a holistic approach to encourage positive behaviours across all facets of an individual’s life which results in a focus on situational awareness at all times, rather than being workplace specific. It is based on three key modules: • Emotional Intelligence • Mindfulness • Situational Awareness Each module has a series of modules that help enhance the individual’s sense of self, leading to an ability to self-reflect and self-manage whilst empowering them with the moral courage to challenge their peers to raise standards. Since commencing this SAFE 360° behavioural safety risk management journey in November 2017, we have witnessed a change in the way our workforce engages with each other, their workplace and with management. There has been an increase in hazard perception, identification and ownership of issues, and we have seen a significant decrease in site TRIFR rate from 13.7 to 5.7 (as of April 2019). This paper will provide an overview of the program, how it has been implemented, case studies to demonstrate outcomes and KPIs used to measure effectiveness.

Mar 15, 2021

One of the earliest and continuing challenges in driving sustainable development in large scale resource industry projects is around the issue of assessment û how do you measure the sustainability of a mineral operation? One of the key road blocks when confronted with this challenge is the temptation of technical folks to reach for a definition of sustainability or sustainable development. But definitions, by definition, have boundaries and limitations that serve to constrain thinking û they limit the thinking of what we can achieve with sustainability (it also acts as a barrier that constrains innovation). Rather than seeking definitions, better understanding of the core perspectives around sustainability and their application to the minerals industry provides a much more powerful platform from which to conduct assessments. But it is only when these perspectives are combined with the right framework and supporting techniques that the complex becomes doable. With the support of the perspectives and the framework, various assessment and measurement methodologies can be used; the challenge is communicating to stakeholders the sustainability character of the project in ways that are meaningful and to which people can connect. Assessment is not about finding the best or most accurate methods that fulfil strictly academic and possibly abstract requirements. The challenge is to help people understand what the impacts are, and what the value contributions will be, in a format and language that make sense in their world-view.

Jan 1, 2009

During the middle of this century, exploration and mining reached a low ebb in New Zealand. Tas McKee did his utmost to rejuvenate the mining industry, using the latest technology and an understanding of the environment far ahead of his time. Today, advances in the geosciences enable sophisticated exploration to proceed to the drilling stage before any significant environmental disturbance is created. Thereafter developments are now carried out with integrated management of the environment and rehabilitation so that disturbed land can be used for other purposes once mining is finished. Thus, we now have environmental engineers and scientists taking their place as professionals in our Institute.

Jan 1, 1987

As Pliny commented two millennia ago, The only certainty is that nothing is certain. Despite the many breakthroughs, advances and promises, the way we each live and work remains awash with technological, economic and political uncertainty. The resources sector is no exception in this regard. Mining itself is much more than a complicated process or recipe; it is a complex adaptive system. The way we adopt and adapt new technologies, the way we evolve data into corporate wisdom, the way we make decisions and even the way we view our concept of rationality should each be the subject of intense review. Translating these sentiments into sustainable company growth is indeed the challenge. This is unlikely to be achieved within convention, but through innovation. The game is changing!

May 1, 2010

AustraliaÆs strong position as an aluminium producer and potential magnesium producer combined with rapid market growth in the automotive industry, proximity to Asia and other natural advantages points to considerable opportunity for downstream processing and manufacture with light metals in this country. Development of a vertically integrated light metals industry in Australia needs to be pursued with vigour, as does the continued development of global strategic alliances through the value adding chain.

Jan 1, 2000

By E Holloway

The optimisation of an open pit mine can be broadly split into two stages, the first being the ultimate pit optimisation (and subsequent stage designs), and the second being schedule optimisation. Macroeconomic uncertainty clearly impacts on both however interrelationships do also exist. Generally, the opportunity exists for the ultimate pit to be revised during each planning cycle, however when this reprieve is removed the uncertainty for the underlying business increases. As one example, the introduction of an in-pit waste dump can be seen to significantly limit the option to revise the ultimate pit. When in this situation there are two potential risks that present: (i) the long-term price used for the ultimate pit selection is optimistic, and too large of a pit is selected resulting in waste being mined which uncovers material not of a significant value to deliver a profit; (ii) the long-term price used for the ultimate pit selection is pessimistic, too small of an ultimate pit is selected, and ore of realisable economic value left behind. Both of these outcomes are risks and as such can be assessed and quantified. CITATION: Holloway, E, 2018. Incorporating economic variability into a strategic planning framework, in Proceedings Complex Orebodies Conference 2018, pp 88–90 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By C Harwood, EáWestman, K Luxbacher

Testing of in situ seals in underground coal mines is critical to determine seal integrity and to provide safe working conditions. In the wake of the 2006 Sago Mine explosion, the United States of America (USA) promulgated the Mine Improvement and New Emergency Response (MINER) Act (USDOL, 2006) which required mines to install 827 kPa (120 psi) rated seals or monitor and maintain the atmosphere behind existing 345 kPa (50 psi) seals. The purpose of developing the regulations was to prevent the breaching of seals in the event of an explosion in the sealed area.While seal design and construction is carefully regulated in practice, the construction of seals is difficult to monitor, as many are constructed under various mine conditions and the methods rely on prescribed placement of the seal material. Further examination of installed seals is limited to two-dimensional visual inspection and atmospheric and convergence measuring devices. These methods do not accurately reflect the integrity of the seal and cannot detect changes, deterioration, or defects within the seal.If detection of defects, deterioration and damage is not possible, unexpected communication between the active and sealed areas may result. Additionally, the ability of the seal to withstand explosions may be compromised. Non-destructive testing (NDT) of underground mine seals is necessary to investigate if the seal properties have been altered and if the seal remains functional as a barrier between active areas and sealed areas of the mine. This paper gives a preliminary assessment of proposed NDT methods for seal evaluation using radio frequency (RF) technologies and tracer gas methods.CITATION:Harwood, C, Luxbacher, K and Westman, E, 2013. Non-destructive testing of in situ underground mine seals - Initial technology assessment, in Proceedings The Australian Mine Ventilation Conference , pp 299-306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By B King

A large number of mineral deposits contain regions in which it is economically beneficial to extract ore both via open pit and underground mining techniques. Current industry practice lacks an effective means to establish the extent of the open pit and underground mining areas for an individual deposit. We present a mixed integer programming model for scheduling both the open pit and underground mine that can be used to create a holistic extraction sequence for a specific deposit. The model considers both spatial and temporal elements of the open pit and underground mines in order to maximise the net present value of the entire deposit, while adhering to its production, processing and block sequencing constraints. By doing so, we can schedule the open pit and underground in concert.CITATION:King, B, 2014. Modelling open pit and underground production scheduling in concert, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 369–374 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J J. Boshoff

This iron ore mine site, located in the Pilbara region of Western Australia, commenced operations in 1998, with ore derived by mining of open-cut pits in Channel Iron Deposits (CIDs). A portion of the ore extracted at the mine is processed at wet processing plants that produce both ore saleable product and waste fines (i.e. tailings) slurry. The waste fines produced at the wet plants are presently stored within Waste Fines Cells (WFCs).Waste fines cells A (WFCA) and B (WFCB) are located within an Autonomous Haul System (AHS) area and consist of embankments that span the width of the pit in east-west alignments. Technical studies and design analyses were carried out to support embankment raises and ongoing development of the WFCs. During operation and development of the WFCs, a multitude of simultaneous activities took place to the immediate north and south of WFCA respectively. These activities included the construction of the embankment raises using the AHS fleet, mining of the CID to not only mine the ore but to also create future deposition space for WFCB, blasting next to the WFC embankments as part of the mining activities, seepage collection and dewatering of the pit in the vicinity of the WFC.This paper discusses the material characteristics, design approach, construction staging and equipment requirements, blasting near embankments, water management, facility consequence category and closure concept.CITATION:Boshoff, J J, 2018. A waste fines cell with a multitude of concurrent activities, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 39–49 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018