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By E Widzyk-Capehart, C Hölck Teuber, S Steffen, V Rivero, O Fredes, E Sanchez, I Pedemonte, N Gonzalez

This paper summarises the research, development and initial application of a sensing platform that has the potential to monitor subsurface deformations, pore pressure and other variables simultaneously to gain a better understanding of rock mass behaviour. The platform is based on Networked Smart Markers (NSMs) devices, which, with their ability for wireless communication between individual sensors and the possibility of real-time data acquisition and processing, will assist in the development of predictive tools to better assess rock mass behaviour.A good opportunity to implement this technology is in the specific application of transitioning from an open pit mine to an underground caving operation. One of the key elements to maintaining the mining business during such a transition is having a good understanding of the unique geotechnical conditions of mutual influence created during the open pit to underground interaction. The knowledge acquisition will require the implementation of a robust platform for geotechnical monitoring, which could be enhanced by incorporating the NSMs. The integration of sensors within the NSMs would enable the collection of additional data about rock mass behaviour (ie caving propagation and crown pillar fracturing), which could be used to improve the management of mining operations and, specifically, allow the development of reliable predictive tools based on the data collected.CITATION:Widzyk-Capehart, E, Hölck Teuber, C, Fredes, O, Rivero, V, Sanchez, E, Pedemonte, I, Gonzalez, N and Steffen, S, 2016. Understanding rock mass behaviour through the development of an integrated sensing platform, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 275–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By S Rogers, D Stead, E Eberhardt

The last decade has seen a major increase in use of the discrete fracture network (DFN) approach applied to cave mining problems, often integrated within more complex geomechanical simulations. Because the value of the DFN model directly depends on the quality and quantity of available field data, there is the need to apply dedicated mapping procedures to collect sufficient structural data at the required engineering scale. This paper attempts to address several key questions about DFN modelling; for example: are current methods for fracture mapping suitable for DFN modelling? What are the critical parameters that we need to measure and what do we need to change in the current practice? Particularly at the earlier stages of a cave project, engineers may have to account for the lack of appropriate data, which manifests itself in the form of increased uncertainty and the difficulty to characterise variability in an objective manner using a limited set of data. DFN models could in principle be generated using limited data by assuming statistical distributions for the sampled parameters; however, engineers would need to be aware of the implications that such limited knowledge (and increased uncertainty) would have on stability analysis, fragmentation analysis and mine design. When used correctly, a DFN approach offers practitioners the opportunity to:maximise the use of fracture data collected from mapping of rock exposuresgenerate more realistic synthetic rock mass modelsprovide estimates of natural fragmentation that also account for rock mass variability.CITATION:Elmo, D, Eberhardt, E, Stead, D and Rogers, S, 2016. Discrete fracture network modelling – importance of accounting for data uncertainty and variability, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 845–852 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G Chitombo, A Perryman, A D. Campbell, J White, B Hollis

This paper describes the development and implementation of an optimisation tool developed as part of the Mass Mining Technology (MMT) Project. The tool, known as the SLC Schedule Optimiser, is capable of optimising the schedule of development and production activity for a sublevel cave, given a fixed draw strategy, for the life of the mine.This paper starts by describing the development and production scheduling problem for a sublevel cave, the geotechnical constraint that a schedule of activities must adhere to, and outlines the pre-existing manual planning procedures used to produce schedules.Following this, the paper then outlines the optimisation tool developed, describes the changes to the planning process it has enabled and finally quantifies the improvement to operations this tool has brought using Glencore’s Ernest Henry Mining Operations as a case study.CITATION:White, J, Perryman, A, Campbell, A D, Hollis, B and Chitombo, G, 2016. Life-of-mine development and production scheduling optimisation for sublevel cave operations, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 133–138 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J. Kemeny, J. Lyons-Baral

"Point cloud technology is now an indispensable tool in geological and geotechnical data collection, interpretation and analysis. Open-pit and underground mines of all sizes are regularly collecting point cloud data as laser scanning (LiDAR) and photogrammetry surveying devices have become affordable and the workflows fast and efficient. Past challenges of large data processing and manipulation are gone with recent technological advancements in computer hardware and software. These innovations reduce file sizes, ease rendering requirements and allow for the implementation of real-time 3D viewers and surface meshing tools. With its ability to remotely and safely, rapidly and accurately extract large quantities of georeferenced and 3D-oriented data, point cloud technology provides numerous applications to the geomechanical field. The list of uses is continuously growing. This article specifically focuses on digital outcrop modeling and digital terrain engineering. Point clouds. The high-resolution and increasing availability of point cloud technology is rapidly improving open-pit and underground mines’ investigation, interpretation and characterization of site geology and rock mass properties (Kemeny et al., 2015; Lyons-Baral, 2012). LiDAR and photogrammetry are common remote sensing methods employed to measure the coordinates of surfaces in three dimensions (3D), providing the X, Y and Z locations and typically the reflective intensity and/or the visible three-band color of each point (Fig. 1).LiDAR uses either a time-of-flight or phase-shift measurement of a laser beam reflected off targeted surfaces and received back into the device.Photogrammetry generates point clouds by merging multiple overlapping photographs and uses stereographic plotting to define the locations of object points in 3D space. These methods can be deployed from airplanes, unpiloted aerial systems (UAS or drones), tripods, land vehicles and even in a mobile backpack shown in Fig. 2. RADAR, Total Station-Prism and other remote sensing systems also offer very precise “point clouds,” but this article does not address these due to their higher cost and lower versatility and mobility."

May 1, 2016

By Georgene Renner, Chee Theng, William Gleason

"More than 6,300 people attended SME’s 2016 Annual Conference & Expo in Phoenix, AZ and many of them made the trip to the conference to take part in the excellent technical sessions that are presented on a yearly basis by the Society.Holding true to form, this year’s conference was full of options. In fact, this year there were 121 technical sessions and 751 presentations to chose from. The following is a sample of some of the technical sessions as seen through the eyes of the editors of Mining Engineering and SME technical papers.SME Sections Sharing Success: Changing thePublic Perception of MiningThis session was a workshop on how several local sections were effective in getting the message out to their communities and schools about the value of the extractive minerals industry. Several sections shared their outreach successes, including the Mining in Society merit badge activities by the Minnesota Section by Julie Lucas and SME’s participation in the World Scout Jamboree in Japan by Frank McAllister.Dan Alexander highlighted activities by the Pittsburgh Section, such as preparing minerals kits and pamphlets for elementary school classes and regional science fairs. The West Virginia University Student Chapter used the kits as handouts at their local gem and mineral show. School speakers in full mining gear were especially interesting to the young children.Other speakers were Michael Linn, Paradise Valley Unified School District — Business and School Partnerships; and Greg Kruse, Central Wyoming Section of SME — What makes a successful section?Engineering Competency ModelAmerican Association of Engineering Societies and the U.S. Department of Labor, with a grant from the United Engineering Foundation, developed a guide to the set of skills necessary for success in the engineering community -- Knowledge – Skills – Abilities — needed for all disciplines.Various engineering societies are now writing the Tier 5 occupation-specific requirements. The Competency Committee is charged to write concise and discipline-specific mining engineering, mineral processing engineering, geological engineering, and geophysical engineering by Sept. 30, 2017."

May 1, 2016

By T. R. Ellis

"In August 2013, the Appraisal Practices Board of the U.S. Appraisal Foundation issued its “APB Valuation Advisory #4 - Identifying Comparable Properties,” which contains analysis and examples that may suggest a broader meaning of the term “comparable properties” than is current convention in real property value appraisal in the United States and internationally. The advisory is directed at the appraisal of real property of all kinds, including interests in mineral properties, as indicated by the inclusion of two mineral property appraisal papers in the appendix that lists suggestions for further reading.This paper firstly reviews as background the historical meaning of a comparable property, with its perceived constraints, against real-world examples of transacted mineral properties that are adjusted to subject properties to provide market value indications. The advisory’s findings are then examined and evaluated as to whether they may influence and benefit the work of mineral property appraisers, particularly in situations where their sales comparison analyses may be challenged. The conclusion is that the combination of constraints that the advisory’s findings specify for use of the term “comparable” will for mineral properties be met infrequently or rarely. As a result, mineral property appraisers are advised to avoid using the terms comparable or “comp” when referring to transactions of mineral properties that they analyze to derive data for appraising the value of their subject mineral properties. IntroductionA mineral property appraiser rarely finds a sale of a mineral property that meets the literal meaning of the term “comparable sale,” by being directly comparable to the subject property of the appraisal in all factors of significance in the determination of the value of the property interest being appraised. Real estate appraisers have long used a more liberal interpretation of the meaning of comparable sale and its commonly used abbreviation, “comp.” Real estate appraisers compare sales to their subject property on the basis of price per hectare or acre of land and price per square meter or square foot of building floor area. Adjustments totaling to within the range of +30 to -30 percent from the sale property to the subject, before factoring in the property area, have generally been viewed as appropriate for the sale to be considered a comparable sale."

May 1, 2016

By N. A. Karl, D. R. Wilburn

"This summary of international mineral exploration activities for the year 2015 draws upon information from industry sources, published literature, SNL Metals & Mining (SNL) (Charlottesville, VA) database and specialists in the U.S. Geological Survey (USGS) National Minerals Information Center. The summary provides data on exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry, and presents analyses of exploration activities performed by the mineral industry.Three types of information are reported and analyzed in this annual review of international exploration: budgetary statistics expressed in U.S. dollars provided by SNL; regional and site-specific exploration activities that took place in 2015 as compiled by the USGS; and regional events that affected exploration activities including economic, social and political conditions, which were derived from published sources and discussions with USGS and industry specialists. Commodity and regional compilations are presented in this summary. Because multiple sources were used to develop commodity and regional compilations, statistics may vary depending on the source and type of data that are being reported.The SNL data summarize planned company budgets for worldwide exploration activities in 2015 for 24 nonfuel mineral commodities and metal alloys and are based on company surveys. Surveys focused on precious metals (gold, platinum-group metals and silver), base metals, (cobalt, copper, lead, molybdenum, nickel, tin and zinc), bulk commodities (bauxite, chromite, iron ore, manganese, phosphate and potash), and other commodities (diamond, graphite, heavy-mineral sands, lithium, niobium, rareearth elements (REE), tantalum, tungsten and uranium).USGS data compilations and analyses are based on information provided by USGS mineral commodity and country specialists, as well as industry contacts and published trade journals. The USGS data summarize exploration site data collected for more than 80 minerals and materials, with a focus on base metals, diamond and precious metals. The USGS analyzed available information to assess the level of exploration activity in 2015 and to report trends in mineral exploration activity for the period 2005 through 2015. These analyses identify where mineral exploration is occurring by commodity and region and the intensity of activity that is taking place in each region for selected mineral commodities, and determines those factors that most affect changes in exploration activity."

May 1, 2016

By A. Moergeli, Philip Sander, John J. Reilly

"Estimating and managing the costs of complex infrastructure projects – in the planning/design and construction phases, for both owners and contractors – has been a challenge for decades. The more complex and technologically advanced the project, the greater the uncertainty, including potential risks that are important to owners and contractors, such as:• Cost risks to owners – meeting budget and schedule, maintaining public credibility.• Cost risks to contractors – profit, consequences of loss, impacts to reputation/future work.This concern has been addressed in various ways by the underground construction industry for some time (Reilly, 2001). In particular, while significant advances have been made in cost estimating for the planning and design phases (Reilly et al., 2004), that are important to agencies and political decision-makers, it is not apparent that these advances have been widely adopted for construction cost estimates. The reasons for this may relate to lowbid considerations – any method that tends to increase the contractor’s cost estimate, by including risk or likely costs, could lead to an erosion of the contractor’s competitive position – if others are not similarly required to include such costs.Different cost estimating methods produce different levels of information. Specifically, there is a large difference in the character and depth of information if a deterministic (quantities times price plus a contingency) and risk-based cost methods are used. It is this difference in character and depth of information that is the reason that risk-based cost estimating has potential value for owners and contractors. Figure 1 presents hypothetical cost results from deterministic and risk-based methods and illustrates some of these differences.In Fig. 1, the results for deterministic and risk-based cost estimates are given related to the potential profit or loss for a typical project. As is evident in this example, there is significant potential for costs to be realized that are higher than the proposal/bid value estimated using a deterministic approach, with a 15 percent probability of a loss. There is a 30 percent probability that the project will have a reduced profit. There is a 55 percent probability that the project will return a good profit. Using a risk-based approach, it is possible to better recognize this potential outcome in the bid phase and, as a consequence, develop a strategy to:"

Apr 1, 2016

By P. B. Moran, J. W. Rozelle, J. Forbort

"The Mount Todd gold mine is located approximately 50 km (31 miles) north of the town of Katherine in the Northern Territory (NT) of Australia just off the Stewart Highway, and was operated in the 1990s until 2000 (Fig. 1). After cessation of mining operations, meteoric precipitation and acid rock drainage (ARD) associated with surface water runoff continued to report to the retention ponds across the mine site. In 2000, the mine site entered receivership and the NT government became responsible for the care and maintenance program. In 2006, Vista Gold Corp. (as Vista Gold Australia) acquired the rights to resume exploration on the mine site without the financial responsibility of the environmental liability. In January 2007, Vista Gold assumed the care and maintenance activities on behalf of the NT government, with the environmental liability remaining with the NT government, with the goal of reinitiating mining operations. A critical path component of the planned upgrades to the existing mine/milling facilities and infrastructure was the development of a cost effective treatment and dewatering program for the approximately 11 GL (2,900 million gal) of ARD stored in the Batman Pit (RP3), which has a maximum capacity of approximately 12 GL (3,200 million gal). The Batman Pit must be dewatered in order for Vista Gold to restart mining activities. The Batman Pit Lake had reached a maximum water depth of 104 m (341 ft) when Vista Gold initiated water level monitoring. It is important to note that the ARD water in the Batman Pit has been pumped into it from 2000 to 2012 under an NT government-approved environmental control program.The Batman Pit has virtually no connection to the local ground water regime due to the intensive silicification that accompanied the mineralizing event. In October 2012, just prior to treatment, the pit lake profile was characterized by uniform acidic pH (approximately pH 3.2) and oxic conditions (dissolved oxygen greater than 7 mg/L with depth (Fig. 2). The temperature decreased by approximately 4 °C (39 °F) between the lake surface and approximately 20 m (66 ft) deep, and remained near constant with increasing depth. This temperature difference is believed to be associated with an existing shallow mine bench at approximately 20 m (66 ft) deep around the perimeter of the pit. Similarly, electrical conductivity, an estimate of total dissolved solids, decreased by about 85 microSiemens per centimeter (µS/cm) from 2,800 to 2,715 µS/cm between 10 and 20 m (33 and 66 ft)."

Apr 1, 2016

By Howard Lum, Sergio Valles, John Bednarski, Gordon Enas, Jay Arabshahi

"Water drawn from the Sacramento-San Joaquin Delta provides water supply to 66 percent of California’s population and supports the state’s agriculture industry. The existing through-Delta water system is outdated and unreliable with environmental risk to some fish and wildlife species. The Bay-Delta Conservation Plan (BDCP) has been established to environmentally retrofit and modernize California’s water delivery system through the Delta by restoring habitats, constructing new diversion points in the north Delta and providing a means to transport water supplies under the Delta, rather than through sensitive natural channels.Under BDCP, the Delta Habitat Conservation and Conveyance Program (DHCCP) has developed several alternatives to convey water from the Sacramento River in the north to the existing pumping facilities in the south Delta through an isolated conveyance system. The new conveyance system would become an integral part of the State Water Project (SWP) and the federal Central Valley Project (CVP) by transporting water to the export pumping plants for each of these projects. The DHCCP is managed by the California Department of Water Resources (DWR), while state and federal water contractors provide technical support to the program.The initial conceptual study efforts on the overall program commenced in 2007 and examined various options for the proposed conveyance system. Several conveyance alternatives were analyzed at that time. The Conceptual Engineering Report published on Oct. 1, 2013 identified the modified pipeline/tunnel option (MPTO) as the preferred alternative to be included in the BDCP environmental documents. MPTO includes three river intakes and pump stations along the Sacramento River, various sizes of pipelines and tunnels, junction structures and two forebays that are capable of delivering up to 4 million gpm (9,000 cfs) from the Sacramento River to the SWP and CVP. The river intakes are located near Hood in Sacramento County approximately 64 km (40 miles) from Clifton Court Forebay (CCF) in Contra Costa County. This route would cross portions of Sacramento, San Joaquin and Contra Costa counties. Figure 1 depicts the configuration of the MPTO alternative."

Apr 1, 2016

"A commercially available through-the-earth (TTE) communications system was evaluated at an underground coal mine in eastern Kentucky. This field study was conducted as part of a larger multisite evaluation of available TTE systems. The mine detailed in this paper was idled at the time of the study, which provided the nearest practical representation of a postevent mine shutdown environment. For this study, surface-to-underground and undergroundto- surface communications were tested. Standard deployments of the TTE system using the manufacturer’s recommended procedures were able to achieve clear communications between underground and surface locations. Other arrangements of the units yielded mixed results. Future experimentation is planned to further examine the phenomena observed at this mine IntroductionThe ability to establish effective communication between surface and underground personnel after a mine event is essential for both evacuation and rescue efforts. Current wireless underground communication technologies are reliant on intermediary physical infrastructure, such as antennas and repeaters, to enable underground communications. As such, communications are easily disabled during a mine event because of the inherent vulnerabilities to physical damage (Damiano, 2012; National Academy of Engineers, 1970; Yenchek et al., 2011). A true emergency communications system would function regardless of a mine’s physical state. Through-the-earth (TTE) wireless communication technology only requires the use of a single transmitter and a single receiver to achieve point-to-point communication through solid strata. With this capability, TTE systems have the potential to serve as a true emergency communications platform."

Apr 1, 2016

By Todd Schrauf, James Scott, Mark Smith

"Cyanide heap leaching of gold ores in areas with extremely low winter temperatures requires special considerations to prevent freezing of the leach solution. Factors that impact the solution temperature include ore temperature at the time of stacking and during operation, burial of drip irrigation lines, use of geomembrane covers and heating of the leach solution. Thermodynamic modeling was performed to simulate expected ore and solution temperatures under different operating strategies for Kaminak Gold’s Coffee gold project in the Yukon Territory. Mean monthly temperatures at the site ranged from a low of -22.5 °C (-8.5 °F) to a high of 13.6 °C (56.4 °F), while in situ ore temperatures ranged from -0.5° to about -1.5 °C (31 ° to 29 °F). The modeling results were used to optimize the operational parameters and indicated that a combination of drip line burial and heating of the leach solution during the winter months was required to maintain solution temperatures above freezing during the initial years of stacking, although as the size of the heap increased, heating was no longer necessary.Modeling objectivesThe successful operation of a cyanide heap leach under extremely cold winter temperatures requires the implementation of operational strategies to prevent freezing of the leach solution and the ore within the heap. Thermodynamic modeling of the heap provides the means to quantify the effectiveness of these different operational parameters on maintaining the required operating temperatures to avoid freezing within the heap. The operational parameters that were evaluated with the model included:"

Apr 1, 2016

By E.C. Jong

Resumen ¦ Un sistema de comunicaciones “a través del suelo” (TTE) comercial y disponible fue evaluado en una mina de carbón subterránea en la zona Este del Estado de Kentucky. Este estudio de campo fue realizado como parte de una evaluación multisitio mayor de sistemas TTE disponibles. La mina detallada en este estudio se encontraba paralizada al momento de la evaluación, lo que proporcionó la representación más cercana a la realidad del medio ambiente en una mina luego de una operación de cierre. Para este estudio se probaron las comunicaciones superficie a subterráneo y subterráneo a superficie. El despliegue estándar del sistema TTE usando los procedimientos recomendados por el fabricante logró obtener comunicaciones claras y nítidas entre el socavón y la superficie. Otras disposiciones de las unidades arrojaron resultados mixtos. Existen planes para examinar más los fenómenos observados en esta mina.

Apr 1, 2016

By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P McCarthy

"This paper is based on 30 years of involvement in feasibility studies as a participant, study manager and the leader of a firm that provides study components and overall study management. The following topics are discussed:the purpose of feasibility studiesaligning the goals of the study team with those of the ownerthe difference between optimisation and designhow the types and levels of studies affect the organisation of the studythe relative merits of various management structures and contractual arrangementssetting scopes of work and tendering the work outthe selection of a study manager and the study management teamcommunications within the study team and externallythe project management trianglemanaging scope changes and maintaining flexibility to respond to study findingsprogress paymentsmanaging a study crisisinnovation, risk aversion and bankabilityreporting the resultsthe dangers and benefits of value engineering.CITATION:McCarthy, P, 2016. Making studies work – organisation, communication and management, in Proceedings Project Evaluation 2016, pp 20–30 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By A A. Roberts, R F. Dewhirst

"Extensive literature surveys, research in the project environment and personal experiences both within and consulting to project teams have revealed some consistent ‘people factors’ that contribute most to ultimate project success. Outside of purely technical and business case issues, there are a small number of leadership characteristics – probably only ten – that if correctly applied can positively leverage a team’s impact on project success.Of the top seven project success characteristics that were consistently highly rated in a recent study, five of them were around leadership. The authors have focused on this topic, noting that good leaders need to display the following traits:passionate commitment to deliveryconsistent modelling and reinforcement of correct values and behaviourfocus on managing relationships well and energising teams and individualscarefully clarifying project vision from front-end loading stages onwardseffective decision making.Not every project manager can and does practise these behaviours all of the time, but being aware of them and receiving training or facilitation in improving their application of these skills can equip project managers with the essential tools to markedly improve their own performance and that of their teams.This paper draws upon experiences in the field and provides lessons – both good and bad – to illustrate. As well as examining leadership traits, the way in which a leader can establish, organise, motivate his or her team and ultimately lead them to success is examined. The paper shares methodologies that have been successfully used to track status within a team and generate appropriate recovery plans where required.In particular, the paper will examine a case study based on an amalgamation of real project issues in some challenging situations using virtual teams (ie physically distant teams located in different centres) to illustrate the importance of strong and positive leadership in achieving success across geographies, time zones and languages.CITATION:Roberts, A A and Dewhirst, R F, 2016. Leadership in projects – a recipe for success, in Proceedings Project Evaluation 2016, pp 49–58 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D J. Logan, J Jackson

"As of 1 December 2014, the 2012 edition of the JORC Code requires Ore Reserves to be defined by studies at the pre-feasibility or feasibility level. This paper examines how the pathway for most mining developments is determined in the Pre-Feasibility Study and how a trade-off must be made between the need to make the best decision, the constraints of limited time and resources, and the level of the project’s accuracy and uncertainty in terms of value. Issues considered include framing the scope of the study, planning for robust decision-making and ensuring effective communication between the diverse disciplines within the team.An inherent conflict exists between the immediate value added to a mining business from an increase in ore reserves resulting from a ‘quick’ Pre-Feasibility Study and the long-term value of pursuing a development strategy based on proper investigation and evaluation of the options. Recognition and resolution of this conflict is necessary if a project is to progress into future development stages, both in a timely manner and with the optimal development alternative and strategy.The challenge for project developers and those conducting the Pre-Feasibility Study is to understand what the key deliverables are (ie an Ore Reserve statement, option selection, business evaluation, forward work plan or risks) and how to follow good practice to ensure that these deliver value.CITATION:Logan, D J and Jackson, J, 2016. The pre-feasibility study – big choices, little time, in Proceedings Project Evaluation 2016, pp 122–132 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J Coombes

"In today’s challenging climate of reduced staffing, limited funding and uncertain markets, we are called on to operate more productively and ‘be more innovative’. As an industry, we are quick to identify our practice areas as a mark of our role in the machinery of the mine value chain. We proudly note our profession – ‘geologist’, ‘mining engineer’ or ‘accountant’ – and demarcate our responsibilities and even our physical space. We even subdivide our disciplines into sacred entities such as ‘logging geologist’, ‘resource geologist’ or ‘structural geologist’ to prevent any blurring as though somehow the confusion will cost valuable disciplinary ground. How can we function professionally to heed the call to be more productive and more innovative?The purpose of this paper is to underscore what is expected from project evaluation, examine the ways in which we work as an industry and explore alternatives used in other industries and environments.The paper begins with a summary of project evaluation expectations and the ways in which disciplines typically interconnect when conducting project evaluations. Next, the paper examines alternative work frameworks and making a distinction between multidisciplinary, interdisciplinary and transdisciplinary frameworks. In-practice examples of these frameworks in alternative industries and contexts provide evidence for application as well as an opportunity to examine their pros and cons.The paper closes with a call to re-examine working practices in the mining industry, with a view to enhancing productivity and heeding the call for greater innovation.CITATION:Coombes, J, 2016. Transcending the mining discipline divide – multidisciplinary, interdisciplinary or transdisciplinary?, in Proceedings Project Evaluation 2016, pp 2–10 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J Evans-Wheeler

"The mandate of the 2005 VALMIN Code to provide ‘(all) reliable, thorough, understandable material information required by investors and their advisers when making investment decisions’ requires that due diligence for tenure be full and thorough. Yet a published due diligence would often appear to be simply a list of tenures allegedly held without any commitment as to the standing of the tenure as safe and secure or otherwise.The value of due diligence for tenure, as mandated in the 2012 JORC Code and the 2005 VALMIN Code, must focus on compliance rather than simply on ‘vital statistics’. Enforcement in every jurisdiction in Australia focuses on penalties (some more harsh than others) for non-compliance, which, in turn and most importantly, reflects directly on security of tenure. Some 22 Acts (on average) impinge on security of tenure and fundamentally underpin the security of any mineral asset.This paper will outline regulatory processes to demonstrate how tenure compliance is achieved and argue that the rigorous application of good practices in tenure evaluation will lead to more of this information being made available on a regular basis.The paper will then focus on further practical examples of tenure compliance failures, the application of these to the requirements of the JORC and VALMIN Codes and due diligence that failed to fulfil the mandate. Examples will be given that alerted other professionals using the JORC Code to complex geological and mining situations of which they were unaware in their valuations.Finally, the author will make a personal plea for tenure to be considered at the commencement of any reporting process.CITATION:Evans-Wheeler, J, 2016. The VALMIN code and tenure compliance – not just a list, in Proceedings Project Evaluation 2016, pp 112–121 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016