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By R Garzon

For resources projects with healthy net present value (NPV) and low cash flow volatility, conventional discounted cash flow (DCF) analysis will continue to provide the dominant investment decision-making criteria. However, DCF analysis can be biased because it often applies a single risk-adjusted discount rate (RADR) to compare the value of projects with different risk characteristics. Many of the difficulties with DCF modelling arise from analystsÆ inability to determine appropriate risk discounts and to estimate expected spot prices inputs for the commodities produced over the life of the project. Modern asset pricing (MAP) is a very valuable complement to DCF analysis in addressing some of these issues. Most papers dealing with MAP, however, while academically rigorous, tend not to be explicit in terms of practical application of this methodology in routine project evaluation. This paper has the objective of reviewing the MAP methodology and of demystifying its complexity, by providing a simple but realistic step-by-step evaluation of a mining project, comparing its DCF and MAP NPV values. The paper concludes that MAP provides a minimum, risk-adjusted æfloorÆ value, thus representing a valuable complement to any DCF valuation.

Jan 1, 2007

A Loss of Strength of Gold Sulfide Concentrate Before Grinding and Cyanidation Using Magnetic Impulse Treatment Gold recovery from sulfide concentrates is going with cyanidation usually. The fine grinding to 95 per cent -0.020 mm is required for refractory concentrates, in which gold encapsulated by sulfides. According energy consumption is 10 and more kW h/ton. At this paper we suggested to use magnetic-impulse treatment with small energy consumption 0.1-0.2 kW h/ton for loss of sulfide strength before grinding and cyanidation. The object of studies was the gold-pyrite flotation concentrate which was produced from ores at the Kumtor Mine, Kyrgyzstan. The concentrate composition, physic-mechanical properties and loss of strength mechanism were studied there. The tested concentrate assayed, per cent: 62.5 pyrite, 10 feldspar, 10 mica, 5 quarts, 5 carbonates, 4 haematite and another. Haematite has intimate intergrowth with pyrite ? partially with quarts. The magnetic susceptibility of haematite and less pyrite causes in these grains and mineral complex the effect of magneticstriction. As a result numbers of deformations are increased and minerals and gold are also exposed. Lateral and longitudinal strains in the minerals by magneticstriction were calculated in this work. By quantitative analysis of pyrite mono fractions were showed next micro impurities: alumina, arsenic, nickel and others elements. These micro impurities are generated a charged dislocation, cracks and micro cracks. The inter-granular links at a boundary of haematite-pyrite, pyrite-quarts, haematite-quarts have disintegrated. The dislocation is depended from mineral modulus elasticity. It was determined an indicator of mineral electro-mechanic sensitivity which characterises a conversion of electro-magnetic energy to mechanic energy. Pyrite has most dielectric constant and electro-mechanic sensitivity as haematite and quarts. The dislocations in pyrite are account for clacks and a loss of mineral strength. Size analysis of the flotation concentrate after magnetic-impulse treatment is shown the increasing the content of thin fractions by comparison no treated concentrate. Magnetic-impulse treatment has increased the effect of the next fine grinding too. The electronic microscopy has confirmed a loss of strength of gold sulfide concentrate. The gold recovery by cyanidation increased too after preliminary magnetic-impulse treatment of concentrate by laboratory tests. The magnetic-impulse concentrate studies at the Kumtor plant have showed that a recovery gold increase in the processing of cyanidation. The consumption of energy also reduced.

Sep 13, 2010

By A Self, B Robertson

During 2015 and 2016, the authors conducted a number of surveys, workshops and reviews of ventilation and gas management practices in Australian underground coalmines. The study was funded by ACARP with a brief to identify gaps in ventilation and gas management practices for current and future needs, and to prepare a road map for change that would assist in delivering improvements.The study found that despite many examples of leading practice, gas and ventilation management is not afforded the attention and priority that is warranted and that this must be remedied if future operational performance targets are to be achieved and the safety of the industry protected. This paper summarises the findings of the study and presents the recommendations proposed.CITATION:Robertson, B and Self, A, 2017. A review of ventilation and gas management in underground mines, in Proceedings Australian Mine Vent Conference 2017, pp 277–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By P Phelan

This paper presents the general background and development of raiseboring followed by case histories of circumstances where raiseboring equipment was used in a different manner to normal. Each project has been summarised for this paper as described below: Case 1: Retrieval of a 40 tonne truck from a stope at Peak Gold Mines. Case 2: Slot raising - Conventional, Uphole and Downhole Reaming at Peak Gold Mines. Case 3: Reamer recovery by Downreaming at Tower Colliery. Case 4: The importance of Mucking Raisebore Holes û Thalanga Project. Case 5: Pilot Drilling Dewatering Holes at Beaconsfield Gold Mines. Case 6: Low angle æcut offsÆ in vein at Telfer Gold Mine.

Jan 1, 1998

During a mineral exploration program in an environmentally sensitive area nearMount Painter in South Australia, a helicopter was used to position, construct and service drilling rigs in order to avoid the need to create new access tracks. The drilling program was designed to optimise the advantages of natural landforms in order to minimise the environmental impact of site construction and drilling activities. This minimisation of land disturbance reduced the required amount of rehabilitation measures to the extent where all impacts of the helicopter-supported programme had disappeared within 12 months of completion of work.

Jan 1, 1995

The use of scrapers in mining and earthmoving operations is not new, in fact they are one of the earliest methods of bulk earthmoving. A single machine which can load, haul, and dump material with a minimum of ancilliary support is a highly productive and cost-efficient method of earthmoving. In recent times scrapers have been unpopular due to perceived problems and operational limitations, but the last couple of years have seen a resurgence in the use of scrapers in the Bowen Basin as a primary prestripping tool. The main operational limitation of scrapers is the economic operating range. maximum productivity and lowest cost per bcm is achieved on short leads, as the lead distance increases the cost per bcm quickly reaches and then overtakes that of an truck-excavator fleet. The geometry of a ætraditionalÆ coal mine does not readily allow short leads for prestrip fleets due to the nature of dragline stripping operations. The strip arrangement means that material has to be taken around the end of the pit, meaning a longer haul distance than the actual point-to-point distance between load and dump. This can be alleviated by using pit bridges, however these can cause spoil problems for draglines if not properly planned and have been avoided by many mines. Due to the economic haul distance limitation of scrapers, truck-excavator fleets have become the normal method utilised. Currently more geologically complex mines are opening up, which do not allow traditional down-dip strip mining to occur. Cross-dip mining methods allow for short leads between prestrip loading and dumping areas, hence scrapers and bulk doze are realistic alternatives to a truck-excavator fleet in the prestrip environment. Keeping the lead distance to a minimum a fleet of 657Æs can move material at a very low cost. The other main operational limitation of scrapers is the type of material that can be economically excavated. Hard material can lead to damage to the bowl, free-flowing sand will not readily stay in the bowl leading to reduced load factors. Ripping the material with a dozer prior to excavating can lead to improved loading time, and greatly reduced GET consumption. When considering scrapers for prestrip operations a number of things must be considered: is the lead distance within the economic haul distance? should twin power (push-pull) or single power (dozer pushed) scrapers be used? do I need to rip, what should I rip with? what ancilliary support is required? is there another system already available on-site which is currently under utilised? This paper considers the parameters under which large twin power scrapers are the most effective way of undertaking prestrip operations.

Jan 1, 2003

By W J. Cowie

Several years of operating experience of over 100 gold recovery operations on the West Coast has provided a database from which the basic operating costs of these types of operations can be characterised. Using figures generated from the averaging of plant operating costs throughout the region and financial modelling using Lotus spreadsheets has been developed to analyse both existing and proposed developments. This type of modelling has several uses: 1. Identification of the impact on profitability of changes in management practices, finance costs, operating costs and revenue streams. 2. Project evaluation and planning. 3. Profitability projections for development financing. 4. Troubleshooting with existing operations. 5. Valuation of existing operations and properties.

Jan 1, 1987

The Golden Cross project was a joint venture between Coeur NZ Ltd (80 per cent) and Viking Mining Company (20 per cent). The site is located in the Waitekauri Valley, 8 km north-west of Waihi, on the Coromandel Peninsula, in the North Island. The mine-site is situated close to the Coromandel Range Divide between the headwaters of the Waitekauri River and the Martoto Stream. The site has a history of Gold Mining dating back to 1892. The more recent mine comprised an open pit and underground gold and silver operation from December 1991 to April 1998, MacGillivray, Maton and Goldstone (2000).Doug Hood Ltd commenced the first of three contracts on site in September 1997 and was responsible for completing the final stages of open pit mining, landslide remedial works mine closure and rehabilitation works. The Mill Closure and Rehabilitation and Drainage Works contract, for which this submission relates, commenced in September 1999 and was officially completed by Doug Hood Ltd. on the 26 May 2001.This paper endeavours to highlight the project objectives and backgrounds them against the difficulties experienced with respect to the site-specific conditions, the design complexities and risks associated with the contract, from a contractorÆs perspective.

Jan 1, 2002

By G Q. Xie, J W. Mao, Y B Cheng

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The East China Mesozoic metallogenic province hosts the world’s largest resources of tungsten, tin, molybdenum, antimony and bismuth, with additional important gold, silver, mercury, lead, zinc, copper, uranium and iron deposits. These deposits form several giant metallogenic belts, including South China, Middle-Lower Yangtze River Valley, East Qinling-Dabie, eastern North China Craton and North-east China. Available data demonstrate that these metallogeneic belts are the products of episodic magmatic and related hydrothermal events between ~240 and ~80 Ma. Each magmatic-hydrothermal episode has produced distinct deposit assemblages that can be readily linked to the Mesozoic geodynamic evolution of East China, involving continental collision between the North China Craton and South China Block at 220–200 Ma, oblique subduction of the Izanagi plate under the Eurasian continent at ca 170–135 Ma and post-subduction extension and lithospheric delamination at 130–80 Ma. Metallogeny in north-eastern China is more complicated due to prolonged tectonic evolution related to southward subduction of the Mongolian–Okhotsk plate and westward oblique subduction of the Izanagi plate, and subsequent continental collision and post-collisional processes.CITATION:Mao, J W, Xie, G Q and Cheng, Y B, 2015. Mesozoic metallogeny in east China and their geodynamic processes , in Proceedings PACRIM 2015 Congress, pp 631–636 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

Mine planning includes equipment selection as a subprocess because aging equipment must be replaced to maintain or improve productivity levels. The criteria used for decision-making in mine planning and equipment selection are often inextricably linked and inherently contradictory. For example, financial wisdom demands that development, which is an expense and locks up capital, be deferred as far into the future as possible yet on the contrary technical knowledge suggests that developing well ahead of stoping is practically desirable because it generates additional geological information required to improve planning of the unmined portion of the orebody and create better operating flexibility. Consequently, mine planning professionals have to delicately balance all decision criteria when executing mine planning in order to achieve optimal mineral extraction or when selecting equipment, so that capital is optimally deployed. These two processes can therefore be characterised as belonging to the multi-criteria decision analysis (MCDA) type of problems. MCDA problems are alternatively referred to as multiple attribute decision-making (MADM) problems and belong to a broader group of problems called multi-criteria decision-making (MCDM). There is now a gradual recognition and application of MCDA techniques in the minerals industry. This paper explores the theory, current and potential application of these techniques in decision-making in the minerals industry.

Dec 6, 2010

The extent to which man's activities are influencing the earth's climate is subject to considerable debate. Internationally however, this debate has been put aside somewhat by the Kyoto Protocol. This international agreement is the political response to the threat of Global warming, predicated on the precautionary principle.NZ is seeking to be a leader in the Kyoto Protocol. Given our unique GHG emission profile and the structure of our economy, and the major uncertainties in both the science of climate change and the Kyoto Protocol itself, this desire to lead is absolutely inappropriate in this instance. We face a different, and often more severe, set of challenges in an economy that prices C emissions than virtually all of our trading partners. Unfortunately, these differences have not been reflected in climate change policy development to date. This represents a major threat to New Zealand's economy, wealth and jobs, particularly in the sectors that have been the core drivers of our economy over the last 20 years or so - agriculture, energy, primary processing. We do not, and should not, seek to avoid the issue but we must protect our economy and move with or follow our trading partners and competitors, not lead them.

Jan 1, 2002

Attempts to rationalise the geological environment of nickel sulphide deposits associated with Archaean ultrabasic rocks has produced much speculation as to the origin of the sulphides and the relative importance of geochemical, mineralogical, textural and structural characteristics of the host rocks. From an economic viewpoint the object of such work is to establish geological criteria which can be used as an exploration guide. Exploration procedure for nickel sulphide mineralisation of the 'Kambalda type' (Hudson, 1972), which occurs at or near the basal contact of Archaean ultramafic flow units and lenses consisted of geological mapping, surface prospecting with soil sampling and rock geochemistry.

Jan 1, 1987

By M Olsen, L van den Berg

Bowen Basin coalmines suffer from hot and humid ambient conditions during the summer period. The ambient conditions combined with high VRTs, increasing depth of working and significant equipment heat loads results in heat issues underground. Coalmines operate under heat stress management plans as required by legislation with associated trigger action response plans (TARPs). Some mines also employ refrigeration as part of their heat management strategy.A recent case study was conducted on a mine producing about 4.5 Mt/a from their longwall and experiences summer surface ambient temperatures of about 23.5ºCwb. The expected virgin rock temperature is 46ºC at 300 m depth. The mine currently introduces a modest amount of surface cooling at the portal using ‘off-the-shelf’ air conditioning units. This system does not effectively manage face temperature primarily due to positional inefficiency.Underground conditions remain hot in summer and work is typically undertaken in accordance with the Heat TARP. This has a direct impact on the productivity of crews, worker comfort and also negatively impacts the workforce morale. The mine commissioned a study to determine a refrigeration strategy aimed at maintaining underground conditions below TARP levels 90 per cent of the time.The ventilation network model was calibrated against actual temperature data to simulate the heat loads including longwall, conveyor system, strata and auxiliary diesel fleet. This model was then used to determine the cooling requirements for bulk surface cooling, bulk underground cooling, surface district cooling and underground district cooling strategies.These estimates were used to undertake a total owning cost trade-off for the different strategies. The study concluded that a chilled air shaft has the lowest technical risk but the highest total owning cost due to shaft development needs. Introducing chilled water to an underground cooler via boreholes offered the lowest total owning cost and was therefore recommended.CITATION:van den Berg, L and Olsen, M, 2017. Heat load assessment and mine cooling strategies for a longwall coalmine, in Proceedings Australian Mine Vent Conference 2017, pp 231–236 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

Minerals Industry - 5 Year Outlook AusIMM sponsored project Positioning the Minerals industry for the 21st Century Does this seem right for New Zealand?  To ascertain the industry's perceptions of issues and capacity to address them: Industry context and issues Capabilities of professional staff Access to professional staff Balancing supply and demand Industry must do it. Cannot wait for others.   Some observations... Negative image - constrains capacity to influence community and government Major repositioning of professional staff competencies required Existing organisational arrangements and capabilities are under pressure to change Difficult to access professional staff of required capability Facing significant external challenges - with real concern about capacity to address them Prevailing culture not suited to needs of the future High level felt need for change The industry has a choiceà We can define where we want to be and act decisively Or We can respond to the future as it unfolds.

Jan 1, 2000

With the continued implementation of stricter limitations on the discharge of excess process water from all existing and future mining and metallurgical operations, the design and operation of the entire process water circuit must form an integral part of any total operational package. It is far better to æanticipate and circumvent the problemÆ rather than be forced into an expensive remediation program after the event. By far the greatest problem relates to the treatment and disposal of what is generically known as acid drainage. In simple terms, an acidic metal sulfate solution is generated by a series of chemical and biological reactions as soon as most sulfide minerals are exposed to air and water. Treatment of this solution by one or more of a wide range of chemical and physical options can involve substantial capital and operating costs, although there are recent processing options that yield saleable by-products, thereby reducing the financial liability of what is effectively a waste stream. This presentation provides an overview of the Australian situation compared with the rest of the world and outlines the basic features of a number of the more advanced passive and active acid drainage options.

Jan 1, 2004

The structure and tectonic setting has had a strong influence on gold mineralisation at the Porgera gold deposit. Here, the structural controls on the mineralisation at Porgera are discussed and placed in a regional tectonic context. The Porgera gold deposit is related to the emplacement of the Porgera Intrusive Complex. Prior to intrusive emplacement at Porgera,Papua New Guinea was affected by a major fold and thrust episode which occurred in response to arc-continent collision in the Late Miocene. After crustal shortening the region experienced a relaxation of compression which is expressed in the deformation accompanying mineralisation at Porgera. The first stage of mineralisation (stage I) is hosted by extension fractures, and is spatially associated with exposed intrusive stocks. A later episode of mineralisation (stage II) is hosted by the faults and fractures of the Roamane Fault Zone, which was active as a dip-slip normal fault during stage II mineralisation. Therefore a change in the tectonic environment from shortening to extensional tectonics can be seen at Porgera before and during mineralisation. Rapid fault-slip during stage II mineralisation may have aided high-grade gold mineralisation by subjecting hydrothermal fluids to changes in pressure, temperature, fluid-fluid and fluid-rock interaction. Uplift to form the highlands of Papua New Guinea occurred after mineralisation and was largely complete by 4.0 Ma.

Jan 1, 1995

By B Olsson, B Reynolds, R Norman

An unprecedented growth in demand for coal exports has placed pressure on multi-user coal chains to guarantee that their capacity expansion projects will meet the required demand. These projects, however, are taking place in an increasingly complex commercial and technical environment - competing rail and coal terminal service providers as well as a myriad of competing mine operators, all needing to operate in an increasingly integrated manner to get the most out of expensive shared assets.Increasing system complexity and integration has driven the need for more holistic and sophisticated analysis tools. The capacity of coal chain subsystems, such as mine, rail and port, can no longer be determined effectively in isolation. Understanding the nature of the interactions between these subsystems, their sensitivity to uncertainty and the resultant capacity of the integrated system is the key to both maximising value and minimising risk.Recently, TSG has worked closely together with the Integrated Logistics Company and a number of key stakeholders in the Dalrymple Bay Coal Chain to develop independent system master plans. These master plans have provided a quantitative and rational assessment of coal chain capacity in its current state and a prediction of its capacity once a pipeline of committed capacity improvements is in place. This paper provides an overview of the study and a comprehensive guide to the process required to effectively achieve valuable strategic insights in a challenging multi-user stakeholder environment.CITATION:Reynolds, B, Olsson, B and Norman, R, 2012. Using independent system simulation to mitigate risk in the Dalrymple Bay Coal Chain, in Proceedings Project Evaluation 2012 , pp 77-84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Use of Impact Crushing for the Enrichment of Low-Grade Colemanite Concentrates This paper presents the results of an investigation into the enrichment of -25+3 mm low grade colemanite concentrates exploiting differential breakage properties of various minerals associated within the ore sample. Boric acid production process requires concentrates containing at least 42 per cent B2O3, hence concentrates below this grade either stock piled or further treated to increase B2O3 content. The low grade concentrate is obtained as a by-product of Emet Colemanite Concentrator and the B2O3 content may vary around 37 - 38 per cent. The sample used in the experimental studies assays 37.52 per cent B2O3. In the experimental procedures the sample was crushed using a laboratory size horizontal shaft impact crusher and the products were classified into different size fractions by screening so that any improvement by size could be observed. In the tests the effects of parameters such as the revolution speed of the crusher and heat treatment was checked. Test results prove that boron contents show a tendency to increase as the particle size decreases. As a result of the experimental studies a colemanite concentrate assaying 42.13 per cent B2O3 is produced with 76.55  per cent recovery. Arsenic content is seen to change inversely proportional with the B2O3 content of the concentrate such that it drops from 1016 ppm from the as received sample to 676 ppm in the concentrate.

Sep 13, 2010

By E Westthorp, J Phillips

The detection of ethylene in mined-out ‘goaf’ areas of underground coalmines is an industry standard indicator of accelerated oxidation where the coal temperature has exceeded 100°C. If uncontrolled, this naturally occurring process can lead to spontaneous combustion and catastrophic mine explosions, such as the Moura No 2 mine explosion. Spontaneous combustion trigger action response plans (TARPs) typically use the detection of ethylene as a trigger for definite change requiring immediate reaction, which can include the withdrawal of coalmine workers.Following the completion of sealing of longwall goaves at Crinum North Mine, ethylene was often detected in trace quantities. These trace quantities were below 1 ppm and detected via the bag sampling regime, with the use of a gas chromatograph. Any ethylene detected in these instances was not associated with increased quantities of carbon monoxide to conclusively indicate a heating within the sealed area.Ethylene was only detected in a newly sealed goaf and would not remain present for a period following the sealing. As part of the longwall recovery process, the predominant roof support mechanism during the recovery was the use of timber cribs. It was decided to investigate the possibility of this timber generating ethylene.Preliminary tests were completed by placing timber specimens from several species of Australian native hardwoods in gas bags in air. Over time, some of the samples showed significant levels of ethylene within the bags.CITATION:Westthorp, E and Phillips, J, 2017. Findings from preliminary testing to determine alternative sources of ethylene within sealed areas of underground coalmines, in Proceedings Australian Mine Vent Conference 2017, pp 203–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

Future climate variability and change will impact on mining operations and their attendant communities. To minimise this impact, early and informed risk management is warranted. However, research into the risks posed by climate to the Australian mining industry has so far been limited. We are conducting a systematic study of the mining life-cycle to identify the main areas of vulnerability and adaptive capacity of operations and communities. This project aims to assess what adaptation activities are currently being undertaken within the mining industry and its communities across Australia and to develop a risk management approach that will aid the adaptation of practices in and around the industry, better assuring the security of people, jobs, revenue and the environment under changed or extreme climate conditions. The Canadian mining industry was recently assessed through a similar study, which found that many mining companies perceive a real risk to mining from climate change in the future, despite few companies being actively involved in managing such risk. At a workshop held by CSIRO involving mining specialists, the most vulnerable stage in the mining process in the Australian context was assessed to be production. In particular, impacts on water and energy supplies and also transport and infrastructure were of high concern. Additionally, heat stress on workers and equipment, changes in groundwater flow and increases in geohazards were also identified as important factors in the short and long term if problematic climate events become more extreme or more frequent. Risks in the planning and post-mine stages were also identified. Based on literature reviews and preliminary discussions with mining experts, here we present an initial assessment of the climate adaptation issues relating to mining and its associated communities and describe our future work plans in this area.

Jun 1, 2010