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By W Stange

Assessing the risks in a mining project is a key aspect of project evaluation. This is an exacting and demanding task because of the complexity due to the need to deal with uncertainty over long time periods. The way risks are assessed and managed is critical to the long-term success of the projects and the business. Discounted cash flow (DCF) analysis is commonly used for project and risk evaluation. A discount rate is selected that accounts for uncertainties in the cash flows. However, it is difficult to determine an appropriate discount rate due to the large number of factors that need to be considered and the complex relationships between risk sources. Using a proven framework, ævalue at riskÆ (VaR), this paper proposes to rigorously model and quantify ærisk at sourceÆ. The approach was first employed to assess financial market risks and is now widely used in the banking sector for risk assessment. In project evaluation, all risk sources are identified and estimated separately to ensure the overall project risk is quantified accurately. A bottom-up approach has been proposed. Estimates are first carried out for risk factors at the bottom of the project structure. The assessment is then applied at increasingly higher levels until the overall project risk is estimated. Value at risk is a versatile methodology and can be used in a local or integrated manner. The final value is objective and the calculation steps can be easily justified and followed. Four case studies have been included to illustrate how the proposed approach can assist management in decision-making.

Jan 1, 2009

By Dight P. M, Dugan K. J

Design approaches for the artificial support of open pit walls have been reviewed and the main factors affecting support performance have been identified. An example of passive support in a potentially unstable pit wall has been used to demonstrate the importance of slope displacement as part of the support design process.

Jan 1, 1989

The information requirements of the Australian Stock Exchange Ltd for listing and reporting seek to ensure that the market is fully and correctly informed in a timely manner. This discussion confines itself to the technical reports from mining companies required for prospectuses, information memorandum, quarterly, annual reports and any other announcements to the Exchange. The Exchange requires that technical reports are produced by suitably qualified and experienced personnel and, in the case of a company listing, that these personnel have no interest in the company to be listed. Further, the Exchange has draft prospectuses reviewed by other independent suitably qualified and experienced personnel.

Jan 1, 1987

Ore reserve estimates form a basis for strategic mine planning at Argyle Diamonds open pit and alluvial operations. Most ore reserve statements are mainly concerned with resource tonnage and grade. Because diamond deposits are low grade, high value resources, diamond quality ($/carat) is also an important parameter. Relatively large variations in quality and/or grade can occur. These variations must be taken into account before the resource potential can be fully assessed. Computers (HP9000 and PC's) are utilised to compile resource inventories. Resource inventories are then ranked on an economic basis. This paper discusses the methods used to compile resource inventories and explains how these are then used to present ore reserve estimates in terms of resource potential.

Jan 1, 1990

By A Coulson, J Hussey

Noranda Inc is a Canadian mining and metallurgical company with its activities managed through businesses in copper and recycling, zinc, aluminum, magnesium and various metals through its interest in Falconbridge Ltd. Noranda operates three base metal mines, three copper smelters, one copper refinery, one zinc refinery, one lead smelter and refinery, three copper recycling and sampling facilities seven aluminum producing facilities and one magnesium production facility in the construction stage. The mining side of Noranda has a strong history of open stope, cut and fill and shrinkage mining. The 1999 Noranda Annual Report lists a 206 million tonne resource located at Porphyry Mountain in GaspT, QuTbec. Mont Porphyre is a large tonnage, low-grade porphyry style Cu-Mo deposit that was discovered in 1994. It is located at a depth between 1.0 and 1.7 km below surface and characterised by a very competent rock mass. The Mont Porphyre resource is located adjacent to the town of Murdochville, close to NorandaÆs Mines GaspT operations. Mines GaspT closed its open pit and underground operations in 1999 after approximately 45 years of mining, but still operates a copper smelter near Murdochville. The low-grade and great depth of the Mont Porphyre resource suggested that mine design could not be based on the conventional Noranda open stoping mining practice. This paper will review NorandaÆs approach to evaluating the Mont Porphyre deposit. The approach included two definition diamond drilling campaigns, a review of current caving practice, an in-house scope study, a geotechnical logging program for diamond drill core and participation in an international study on cave mining. One interesting component of NorandaÆs approach was the scope study that involved a team of multi-disciplinary personnel drawn together for a short period of time. The objective of the scope study was to determine what conditions would be necessary to mine the deposit and to assess the merits of continuing with further exploration work. A review of current worldwide underground bulk mining practices, and in particular an evaluation of the applicability of caving mining methods, were key components of the scope study. The scope study team concluded that derivatives of caving could be applied to the mining of Mont Porphyre, but additional diamond drilling was recommended to further define the deposit and improve the level of geotechnical information. Following the recommendations of the scope study team, a diamond drilling campaign was completed during the summer and fall of 1997. The 1997 drilling campaign had two secondary objectives, in addition to the primary objective of defining the limits of the orebody. The first objective was to improve the level of geotechnical information available for the characterisation of primary block cave fragmentation. The second objective was to improve the delineation of a lower grade intrusive core. A geomechanical investigation was conducted and included particular emphasis on geotechnical data collection and analysis. A review of the actual data collection process, including several trials of different core orientation techniques, will be included in the discussion.

Jan 1, 2000

Capital expenditure on sampling and blending is often very difficult to justify. The costs are easy to estimate but the benefits likely to be obtained by constructing good sampling and blending facilities are generally difficult to estimate. For instance, improving blending of the ore feed to a smelter would improve throughput, yield and controllability ... but by how much? Similarly, better sampling would allow processing conditions to be dynamically adjusted and would improve extraction ... but by how much? Predicting benefits often requires the use of simulation models which carefully distinguish between true grades, predicted grades and observed grades. The parameters of these simulation models must often be estimated from rather inadequate information. These difficulties are illustrated using three scenarios.

Jan 1, 2005

By Tapp BA

Australia, considered an energy and mineral resource rich country, is poised on the verge of a major mineral industry 'boom'. It has been repeatedly emphasised that this growth in the mineral industry will form the basis of future economic development. Currently the mining and mineral processing industries use some 32% of the annual primary energy consumption in Australia. This share, although large even now, will increase with the realisation of the 1980's production expansions to 40% by 1985. Two metal industries dominate the energy scenario; iron and steel and aluminium. Major expansions in the local industry will be dominated by the aluminium industry. This highly energy intensive industry has planned major increases in metal production throughout the eighties. The implications of exporting cheap energy to pay for expensive oil imports, the ramifications on Australia's infrastructural ability to supply these major energy needs and the other options that might be

Jan 1, 1981

By Thompson P, Sharma Y

The paper describes the methodology and results from a study carried out by Telfer Gold Mine to optimise the materials and costs involved in construction of the pad for their dump leach operations. The investigation involved large-scale field testing of five different types of liner and a number of different cushion and drainage layer configurations. The aim was to identify the most cost effective construction methods to allow the final dump height to be increased from 45 in to 60 in without causing significant damage to the liner. The effects of dump height on permeability were also investigated. These methods are described and results presented. The findings indicated that modifications to the existing liner/cushion layer/drainage layer configuration used previously at Telfer would actually reduce overall construction costs rather than increase them despite an increase in overall dump height. Relative construction costs are presented.

Jan 1, 1994

By M P. Sandy

Some Western Australian underground mines are challenged by very high stress gradients. This environment frequently results in poor induced ground conditions and damaging seismic activity. In some cases, rockbursting or squeezing ground has been observed as shallow as 250 m below surface. Very few mines operating at depths greater than 500 m experience no stress-related issues. As a general result of this difficult environment, there are a growing number of mines that are now challenged or have been closed by induced geotechnical problems. Often, the up-front savings or perceived advantage of an inappropriate mine plan may be entirely lost to the real cost of managing the hazards, or a write-down of reserves resulting from access difficulties will diminish the economic position of the mine. From an engineering perspective, it is best if stress-related hazards can be proactively minimised, because reactive measures offer less improvement in risk exposure. In this paper, some examples of sequencing techniques for managing difficult environments are contrasted with examples from mines where developing hazards have adversely affected production or the economic viability of the project.

Jan 1, 2003

In this paper, a subtle, but important, difference has been drawn between responsibility and mandate. Responsibility has a connotation of financial involvement assigned to an organ- isation as a result of some action it takes, the ramifications of which can be ascribed directly to the organisation. In contrast mandate relates to the power and authority to act. The paper outlines the role of poli- ticians as community decision-makers and the need for Government policy to be flexible in an advanced industrial society so that decision- making options are kept open for as long as necessary. Further, broad community objectives need to be understood and defined so that plans and policies can be consistent. Co-ordination through communication at all levels, especially at the public administration interfaces and with the private sector,is essential for effective resource allocation and efficient implementation. The paper discusses several aspects of the infrastructure responsibility question and some considerations which might be viewed as important by the community decision-makers in considering what responsibility the "community" should accept in providing infrastructure.

Jan 1, 1974

Gold recovery by catalytic copper ammonium thiosulphate solution has been studied. Such a process strategy is very attractive for leaching certain difficult-to-treat ores and presents lessened lixiviant toxicity compared to cyanide. Newmont Gold Company has evaluated the ammonium thiosulphate heap leach process for gold recovery from low-grade carbonaceous sulphidic refractory ores following biooxidation. The ammonium thiosulphate leach process has been studied in laboratory, pilot plant and demonstration scale. Satisfactory test results support the continuation of process development. However, the thiosulphate leach chemistry was found to be very complex. Maximum control of the stability of the leaching system is a key factor for success, especially for the heap leach process. Important solution chemistry is discussed in this paper.

Jan 1, 1997

By Granholm S

The current emphasis within the mining industry to reduce the cost of production has stimulated interest in the fields of maintenance and operational reliability of capital intensive mining equipment. From an economic point of view, high reliability is desirable to reduce the maintenance costs of the systems. Two graphical methods consider reliability analysis. The first one, the method of Total Time on Test (177)-plotting deals with the reliability data which are free from trend and serial correlation. The second method which is based on time dependent modelling approach deals with the data which are not free from trends and serial correlation. The examples show how these graphical methods can be used to calculate the optimal maintenance intervals for components or systems.

Jan 1, 1991

By Masszi D

INTRODUCTION The association of methane with coal has been known almost since coal was first mined and in general it has been considered the curse of underground coal mining. Historically, most of the effort to handle this methane has been directed at diluting it to a safe level and preventing an explosive mixture of methane and oxygen from forming in any part of the mine. This is generally achieved by in-mine activites. This approach has two principal drawbacks, the severity of which are dependent on local conditions. The first is that the activity associated with the handling of the methane is undertaken in the mine and there- fore competes with the mining activity for the limited space available. The second drawback is that the whole methane handling activity is generally a cost to the coal because methane is so diluted that it cannot be used. With the value of energy increasing thi; second drawback is gaining importance so th.u several mines in Europe and North America ;it,, now installing systems to recover the methane in a useful form. Two approaches are

Jan 1, 1982

Cerro Matoso (CMSA) in Colombia produces ferro-nickel from lateritic ore containing approximately three per cent nickel, using a Rotary Kiln - Electric Furnace (RKEF) process, in which the calcining of the mineral within the kiln is second in importance only to the smelting of the mineral in the Electrical Furnace. This article discusses the installation and operation of an expert system to control the kiln of CMSA. In the CMSA process, the run-of-mine ore is crushed, homogenised, dried and mixed with a small percentage of coal, before being heated up to 900¦C in a rotary kiln in the presence of natural gas mixed with air in a controlled proportion (air/gas constant ratio). The final objectives of the process are the following: ò To reduce to a minimum the iron and nickel oxides in order to convert these into metallic ions; this is a reduction process to facilitate largely the smelting in the electric furnace. Since the reduction is made with natural gas, it is much more economical than the subsequent complete reduction in the electric furnace, since electrical energy is much more expensive by unit of processed mineral. ò To heat the mineral as much as possible to facilitate the subsequent smelting. ò To eliminate totally the moisture content of the ore. An expert system with fuzzy logic was commissioned in 1994 for the control of the kiln and it has operated with good results ever since.

Jan 1, 1996

By R R. Lovel

In this paper, life cycle assessment methodology has been used to assess the variations in water use associated with different metal production and processing routes and provide insights into the value derived from water usage in the minerals sector. Using water consumption data derived from the literature it has been shown that the æcradle-to-gateÆ water consumption (or embodied water) for production of the various metals considered in the study ranged from 2.9 m3/t for steel up to 252 087 m3/t for gold. The results largely reflect the grade of the initial ore used to produce each metal, and can be approximated by the following equation:W = 167.7 G - 0.9039 where: W = embodied water (m3/t refined metal) G = grade of ore used to produce metal (per cent metal) The study showed that indirect water consumption in the metal production life cycle, in particular that due to electricity generation, can make a significant contribution to the embodied water value, eg aluminium production. When expressed in terms of m3/t ore, the results for all metals considered indicated that the embodied water is roughly, on average, three times the water consumption of the mining and concentration stage. It was also shown that the economic value per m3 of water consumed for the minerals industry exceeds that for the agricultural and industrial sectors, supporting the view that allocating water resources to the minerals industry has a strong underlying economic basis. Water reforms currently taking place in Australia aim to address issues such as competition for water access, reduced security of supply and increase in cost. Consequently the minerals industry, along with others, can be expected to come under increasing pressure to reduce fresh or raw water use and to integrate water use across sectors. While water recycling is an obvious candidate to help reduce water consumption in the minerals industry, issues such as water quality, among others, will influence the extent to which this can be achieved. In addition, wastewater volumes can be minimised using techniques such as pinch analysis to establish and use the minimum water requirement for the process. The use of dry or near-dry processing technologies, for which the demand for water is small or zero, may be a more radical solution to the water consumption problem; however, it is possible that the introduction of dry processing would bring with it a new set of problems, including dust.

Jan 1, 2006

Silver and gold bearing ore from the Palmarejo mine, located within the Mexican state of Chihuahua, contains a complex mix of electrum, native silver, silver sulfides and silver chlorides. This paper presents a case study that describes the selection, development and engineering of a tailored process plant for the recovery of silver and gold from this ore. Process circuit feasibility study modelling, metallurgical test work and engineering studies are outlined. Options considered to optimise the recovery of the contained silver and gold are compared, based upon cost, operability, recovery and engineering aspects. Concentration by flotation was found to be the preferred primary recovery route. Intensive leaching of the flotation concentrate resulted in solution grades sufficient to allow direct electrowinning to be evaluated against the more traditional Merrill Crowe process. The flotation tailings stream is processed through a separate leaching stage as there is sufficient economic metal extractable from this stream. The processing flow sheet, which is designed to maximise the recovery from both the flotation concentrate and tailings, and to utilise a common metal production facility, is presented.

Jan 1, 2009

By T R. Gibbons, I Grayand

Geotechnically massive strata may lead to a host of problems during longwall mining. These include windblast on initial goaf fall, sudden loadings on powered supports, periodic weightings, fractures that may propagate to surface, and extreme subsidence problems. It is essential to identify these problems prior to mining and to appropriately deal with them. The problem is essentially that the rock mass does not breakup evenly and when it does so it tends to produce large blocks which may suddenly move. The rock types that produce these problems tend to be massive sandstones, massive siltstones and sometimes igneous sills. The fundamental problem with these is that they do not breakup readily. This is because the ratio of stress they are subject to compared to their strength is low. Thus, the shallower mines with lower stresses are more subject to this problem than deep highly stressed ones with similar strength rock.

Nov 29, 2022

Anglo Platinum recognised with its expanded operations the need to change its evaluation strategy due to increased sample volumes and the pressure it created at laboratories. The sender/receiver analytical scenarios had to change in order to curb costs and to prevent substantial investments in new sampling and analytical facilities. Given the high cost associated with correct sampling systems and sampling protocols and the shortage of technical resources a strategy of single point sampling and analysis was introduced. The analysis was then done at an ISO17025 accredited laboratory with ten per cent checks, subjected to careful statistical scrutiny. Logistical problems increased with respect to weighbridge congestion, maintaining sampling quality, throughput of samples in the sample preparation areas, manual quality control systems in place, audit trails and analytical capacity throughout all operations. This required the expedited improvement of existing sampling practices and the development of new sampling methods and equipment. Anglo Platinum is classifying and standardising sampling equipment, sample preparation and analytical procedures for all process streams with the view to minimise overall uncertainties. Major investments were made into a customised LIMS and automated equipment for data management, reduction of manual transcription errors and streamlining of sample processing. Anglo Platinum is committed in rolling out the enhancements to all sites as priority dictates.

Jan 1, 2008

By Kelly BJ, Smith GA

The recommendations of a recent American report on "Better contracting for Underground Construction" are considered in relation to Contracting practices on major Australian projects by representatives Of the "classical trilogy" - the Owner, Engineer and Contractor.

Jan 1, 1976

BlIP Minerals is a large, diversified, international mineral producer. This paper describes the company's operating strategy, and identifies the role of mineral processing in this strategy through three examples: the column flotation installation at Escondida in Chile, the leach-SX-electrowinning plant, proposed for Escondida, and the whole-ore roasting process being constructed for the Syama gold operation in Mali. It is concluded that the application of appropriate and sometimes novel mineral processing technologies can achieve significant benefits in reduced operating cost, improved product quality, and in some cases the exploitation of previously uneconomic deposits, thereby providing strategic advantages to the company.

Jan 1, 1993