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By D McKeon

In July 2006, ten Mining Engineering students and Associate Professor David Laurence from the University of New South Wales (UNSW) participated in the universityÆs inaugural overseas mining field trip. The ten-day trip to western Canada involved visits to two mines in British Columbia, the Diavik Diamond Mine in the Northwest Territories and the Syncrude oil sands operation in Alberta. Importantly, the groupÆs main objective was to gain a global understanding of todayÆs mining industry by observing the different cultural, legal, social and environmental setting found in Canada. It should be noted that the entire trip was planned, organised and directed by the students and benefited from extensive industry support both in Australia and Canada. This report intends to provide an overview of the field trip and describe to a limited extent the Canadian approach to mining.

Jan 1, 2007

By P G. Bourke, A Yáñez, G J. Jameson, N M. L Kupka

The kinetics of fine and ultrafine particles in conventional mechanical flotation cells are limited (Feng and Aldrich, 1999; Trahar, 1981; Wang et al, 2016). Accordingly, even limited recoveries with such machines require long residence times. Theoretical investigations into the rate of capture of fine particles by flotation, have indicated that a key parameter is the rate of shear in the fluid surrounding the bubbles and the particles. Achieving fast flotation rates of ultrafines requires a new method of bringing the particles and bubbles into contact, utilising the beneficial properties of highly dissipative flows to break through the water boundary layer. In 2010, a new type of flotation cell known as the Concorde Cell was described, in which bubbles and particles are brought together in a sonic shock wave (Jameson, 2010). Earlier research had shown that when a dispersion of fine bubbles in liquid passed through a converging nozzle at the local speed of sound, the resulting shock wave downstream generates a mass of even finer bubbles in the flow as it passes through the shock wave. The fluid within the shock wave is highly turbulent, and an environment is created that is very favourable to particle-bubble collision and capture. In this paper, we briefly describe the Concorde Flotation Cell and give examples of its use.

Aug 24, 2022

I am honoured and very pleased to have been given the opportunity this evening to say a few words of thanks not only on behalf of all the guests but especially for the delegates and accompanying persons attending the 13th Congress of the Council of Mining and Metallurgical Institutions. Firstly, I would like to congratulate Sir Hamilton Whyte,KCMG for his most interesting address. In his far ranging talk, when he showed knowledge of widely diverse subjects, I had a brief fear that he was going to be talking about the details of support methods in deep level mines, or how to avoid flotation problems in multi-metal mines. Although he did not go that far, he touched on subjects which have arisen this week - long term planning and secure supply of minerals at acceptable prices. The dire predictions of the Club of Rome have been debunked with a far more elastic supply of minerals having been proved. Combined with the importance of a falling birthrate in some parts of the world, this will lead to many changes in the future, when hopefully governments will take the long term view rather than look at the next budget or the next election. Maybe some of them are not too lazy to do this for all of us. However as a fellow Ukranian, I feel that he might have been called something different if he had been in Australia. Sir Hamilton, thank you for your talk. Once upon a time - and this is not a fairy story - there was a cobbler who had two sons; one very bright who became a professor of mathematics; the other, dim, who became a millionaire shoemaker. Asked for the secret of his success, the millionaire attributed it to a vital piece of economics which his father had imparted, "Be content with small margins on a large turnover." "So", said the millionaire, "I make my shoes for $2 a pair and sell them for $5. I am very happy with the three per cent profit."

Jan 1, 1986

By C Muñoz, N Ortega, J Vergara, D Avilés

Mass blasts have been the subject of extensive studies because of their potential benefits in mining operations. However, it has not been possible to advance due to the paradigm that states that the blasts near the designed final wall or to critical structures have to be low tonnage. Another reason is the absence of specialised simulation programs to more precisely determine the influence of the energy released by blasting to the rock mass. There are some studies that demonstrate the possibility of massive blasting that maintain the design of the final slope (Farias and Santander, 2014). It should be noted that these studies develop the concept that the size of the blast should not increase the peak vibration in the rock mass.The study was carried out in partnership with Los Colorados Mining Company. Analysis, reconciliation and wall control for two types of blasts were performed:blasting production: approximately 850 000 t, with special wall control considerationsblasting of approximately 950 000 t over the entire width of the bench.Monitoring systems were used in the near field and far field using examination of holes in order to obtain information to assess the impact on the rock mass and then to compare these to conventional blasting combining production and contour blasting.The results show that for a large blasted volume, production and/or those generated from toe to crest on the bench did not produce more impact in the rock mass than the conventional blasting.The conclusions drawn from this study are:an improvement in the excavation rate of 7500 t/h that is higher than the maximum rates normally obtainedthe peak vibrations of the P wave generated by both blasts did not exceed the peak particle velocity criteria (Vergara and Muñoz, 2014)holes examination indicating no difference in their entire length, in pre- and post-blast reviewover US$2 000 000 savings generated in the year (estimated by the client) (Avilés, 2014).CITATION:Vergara, J, Muñoz, C, Ortega, N and Avilés, D, 2015. Benefits related to applications of a mass blast in open cut mining, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 625–632 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By R Zhang, X Huang, M Zhou, X Lv, C Bai

Iron ore sinter accounts for a large proportion of blast furnace ferrous burden in Chinese steel mills. Depleting high-grade iron ore resources and spreading complexity of iron ores in mineralogy and morphology have made it more difficult to utilise iron ores efficiently and economically. In this paper, the physical properties of iron ore particles were characterised using mechanical sieving, laser sizing and gas adsorption. From those measurements, two physical indices (fractal dimension of the particle size distribution and surface morphological factor) are defined as important variables for optimising the granulation performance of iron ores. The moisture capacity and the contact angle of iron ore particles with water were also measured to determine the strategy of water-feed in the granulation process. It can be concluded from the experimental results that an increase in the fractal dimension of the iron ore particles will lead to a better granulation performance, while an increase in moisture capacity with a range of 12.8 ~ 14.8 per cent would increase the optimum water content where the granule packed bed achieves its best permeability. Furthermore, the optimum permeability varies inversely with the moisture capacity of the sinter mixture.CITATION:Huang, X, Lv, X, Zhang, R, Bai, C and Zhou, M, 2013. Iron ore characteristics and their application in optimising the granulation process, in Proceedings Iron Ore 2013 , pp 261-268 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By E Amini, M Scott

Grade Engineering® involves the planning, integration and operation of coarse preconcentration techniques to reject uneconomic material as early as possible in the mining value chain to improve the quality of ore delivered to mineral processing activities. These preconcentration techniques include screening for natural and induced deportment of grade to finer size fractions during blasting and coarse breakage, sensor-based measurements of grade and mechanised sorting at particle or bulk scales and coarse gravity separation. Over the last decade, the Cooperative Research Centre for Optimising Resource Extraction (CRC ORE), with the support of its participants, has developed a framework for the holistic evaluation of economic and production impacts attributable to these preconcentration techniques. The framework combines the characterisation of preconcentration responses, geostatistical modelling, process modelling and simulation of downstream and upstream production impacts and the optimisation of strategic mine plans to quantify changes in net present value due to different preconcentration strategies. This framework has been applied to evaluate preconcentration techniques at numerous metalliferous operations and can also be used to quantify changes in the environmental metrics for energy, water and steel consumption and emission, tailings and waste rock production. This paper collates the results of these Grade Engineering® studies to show the range and magnitude of economic and environmental impacts attributable to preconcentration. The studies have shown that rejection of uneconomic material prior to mineral processing activities can have a pronounced improvement in energy, water and comminution steel productivity, emission intensity and the profitability of metalliferous mining.

Nov 10, 2020

By J Zhou, L Crompton, K P. Galvin, J L. Sutherland, C P. Lowes, C Bezuidenhout, J Bijzet

Platinum Group Metal (PGM) bearing ores from the Upper Group 2 (UG2) reef often contain significant concentrations of chromite which can potentially be upgraded to produce a saleable product. A common approach is to implement gravity separation on the PGM flotation circuit tailings. However, where the particle size range of interest is broad and the lower size limit ultra-fine, the challenge is how to maximise the recovery at a saleable product grade without compromising throughput. This study was concerned with the performance of a REFLUX™ Classifier for beneficiation of a PGM bearing chromite ore and the benefits of size classification. The sample had a nominal top size of 0.5 mm and was processed over the complete size range and in two discrete size classes following classification at 106 µm. The primary goal was to produce a concentrate exceeding 40 wt. per cent Cr2O3, ideally approaching 42 wt. per cent Cr2O3, with minimal PGM losses above 106 µm. A major challenge was to process at the required solids throughput in a single stage with the feed pulp density constrained to a nominal upper limit of 30 wt. per cent solids. It was found that varying the controller density set point of the REFLUX™ Classifier produced strong control of the product grade. Products as high as 41.1 wt. per cent Cr2O3 were produced at 78.6 per cent recovery for the +106 µm material, while in the −106 µm portion the product grade was as high as 41.4 wt. per cent Cr2O3 at 83.2 per cent recovery. Processing the feed in discrete size classes enabled the volumetric feed and fluidisation rates to be optimised for a given application; hence, superior performance was achieved at the finer sizes. This work has demonstrated the value in considering feed preparation as well as technology selection in developing a robust process solution.

Aug 24, 2022

The Olympic Dam copper/uranium deposit was discovered in 1975 and subsequently commenced production in 1988 at a rate of 1.5 Mtpa using the sublevel open stoping mining method. In the following five years the operation underwent two optimisation programs that have increased mine output to the current rate of 3.4 Mtpa of ore. The pre-expansion requirements were annual development of approximately 10 000 m and the placement of around 500 000 m 3 /yr of cemented backfill. Previous to 1995 all hoisting was carried out by the Whenan shaft. The Robinson shaft was commissioned during that year to hoist increasing development mullock tonnages and to allow for increased ore hoist via the Whenan system. In 1996 WMC committed to expanding the output of the operation from 85 000 tpa (1996/97 budget) copper metal to 200 000tpa. The corresponding increase in mine ore production requires expansion to a nominal rate of 9.0 Mtpa. To achieve these increased tonnages, major hardware installations will include sinking of a third shaft capable of hoisting in excess of 9.5 Mtpa, a rail haulage horizon utilising automatic trains, expansion of the existing backfill plant to a production capacity of over 1.8 million m 3 /yr, increasing long term development rates to 15 000 m/yr and increasing the production drilling and blasting rates in line with the higher stope production output. This paper provides detail into the intended hardware (shafts, equipment, etc) of the mining system, and outlines the intended long-term operation and management of the operation. Of particular note is the background requirement of ensuring existing production targets are met to provide critical cashflows into the project during the period of expansion.

Jan 1, 1998

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

The epithermal silver-gold Red Rock Deposit is hosted in the Late Permian inter- mediate to silicic composition Drake Volcanics of New England, N.S.W. This deposit represents one of the few low sulfur epithermal precious metal systems in eastern Australia, and differ! from epithermal models in that the hydrotherma: system which produced mineralization was active in a shallow water marine environment. The Red Rock Deposit has a resource of 180,000 tonnes of 66g/t Ag and 0.9 g/t Au, and a Ag:Au ratio of 70:1. Mineralization is largely associated with hydrothermal brecciation, and occurs as disseminations, vein stockworks, and struc- turally controlled lodes. Ore minerals comprise acanthite (argentite), electrum, native Ag, Ag- sulfosalts and base metal sulfides, Alteration minerals associated with ore are quartz, cal- cite, adularia, pyrite, illite, illite-mont- morillonite, chlorite and sphene (leucoxene). Illitic and propylitic alteration zones sur- round the hydrothermal breccia. Bulk rock analyses indicate that alteration is character- ized by the addition of Si, K, Fe, Mg and the loss of Na and Ca. Ore was deposited from a boiling fluid in a temperature range of 222- 295¦C, and of 0.5-7 wt. Z NaCl equivalent sal- inity. An upper hydrostatic depth limit of about 800 m is implied for the boiling fluid ii an open vein. Sulfur isotopes indicate a mag- matic sulfur source, and oxygen isotopes imply a predominantly marine ore fluid. Modern analogs of the submarine hydrothermal system that formed the Red Rock Deposit occur in the Taupo Zone, New Zealand, and southern Kyushu, Japan.

Jan 1, 1987

By R L. Koenig

The rediscovery and recognition of the magnetite potential of the iron mineralisation at the Hawsons Project area 60 km south of Broken Hill has the potential for the development of a new series of magnetite iron-ore operations across the Braemar Iron Formation in New South Wales and South Australia. Despite the low-grade of 16 per cent magnetite, the Hawsons project feasibility studies are indicating a positive business case for a large-scale 20 Mt/a of magnetite project for the following reasons:• The mineralisation is on a huge scale, with a major potential for increases beyond the already very large established resource of 1.4 Bt.• The mineralisation is particularly soft for crushing and grinding, with a Bond work index of 6.3 and an overall comminution power requirement of 6.7 kWh/t of ore. This equates to 39 kWh/t of concentrate which is significantly less than for similar projects.• The mineralisation fractures easily, preferentially along grain boundaries.• Location is close to mining infrastructure and a skilled workforce at Broken Hill, 60 km to the northeast.• It is close to road and rail infrastructure for access to the resource.• A high-grade, clean magnetic concentrate can be produced, with the only contaminant being silica.The deposit is a sedimentary siltstone which is considerably different to other known magnetite deposits. This caused significant differences in Davis Tube Recovery (DTR) results between laboratories so that the softness of the ore has required a close focus on, and changes to the laboratory procedures. A DTR procedure has been developed to provide consistent results across the deposit.Crushing and grinding test work has established a clear advantage in the use of the high-pressure grinding rolls (HPGR) crushing and grinding circuit for this particular ore. The power required for comminution using the HPGR crushing circuit is about half the power required for the Autogenous milling circuit.Therefore, despite the low magnetite grades, the Braemar Iron Formation in New South Wales and South Australia has the potential be a new magnetite iron ore province.

Jul 11, 2011

State ownership of minerals results in domestic legislation regulating mining operations. The mining industry today is dominated by a number of transnational companies, each subject to internal and external pressures for a more responsible approach to resource management. Thirty to 40 major companies are responsible for the bulk of the worldÆs mineral production with the balance coming from state-owned, second tier and junior companies and from artisanal miners.Mining companies operating within competitive commercial environments formerly focussed on mineral production. Companies worked to standards and expectations then current which largely failed to recognise the impact of mining activities on community interests. The mining industry acquired a reputation for arrogance, and for placing profitability ahead of issues considered equally or more important by local communities. Current perceptions continue to reflect disquiet about industry attitudes towards traditional land-owners and access to their lands, to environmental contamination, handling and storage of waste materials, utilisation of water and electricity, and to rehabilitation of worked out areas. Major international mining companies concerned at continuing criticism sponsored a series of initiatives with the objective of providing guidance on working harmoniously within the community. Industry commissioned studies, performed through the agency of disinterested parties, resulted in May 2002, in a Declaration being issued at an International Conference in Toronto. The Declaration was based on, but did not reflect all of the recommendations of the MMSD Report, æBreaking New GroundÆ.This paper considers whether benefits would result from the negotiation of a legally binding and enforceable international protocol encompassing the objectives of the MMSD report or the Toronto Declaration. It attempts to identify the problems associated with implementing and enforcing international mining law, should it be introduced. Aspects of mining operations having cover under customary international law are reviewed, as are rights, obligations and remedies for breaches of national mining law. Conclusions are drawn based on established procedures relating to implementing international agreements. The continuing ability of mining companies to operate within communities will result from each satisfying the communityÆs expectations rather than by complying with largely unenforceable legislation.

Jan 1, 2004

By A F. D C Varajpo, R C. Weba, C Volkmer-Ribeiro, C A. C Varajpo, N S. Gomes

This study relates to the spongillite deposits from the region of Jopo Pinheiro, in the north-west of the State of Minas Gerais, south-eastern Brazil. The deposits occur in shallow ponds (with a maximum depth of 3.5 m) on a karstic planation surface developed on rocks of the Spo Francisco Neoproterozoic Supergroup. Cenozoic detritic covers are associated with this surface. The field study of spongillite deposits from the Preguita and Avipo deposits revealed sedimentological and pedological similarities between the different deposits. They have a lenticular shape and contain different layers of sedimentary spicules intercalated with layers of quartz sand and clay minerals. Representative samples from the different layers investigated by X-ray diffraction, differential and gravimetric thermal analysis and infrared spectroscopy showed a range from three to 80 per cent of amorphous silica (opal) corresponding mostly to the sponge spicules in the sediments. Optical microscopic investigation determined that the spicules predominantly belong to the sponge Metania spinata. This species is represented by smooth megascleres (alpha type), prickly megascleres (beta type) measuring 240 to 450 mm in length, as well as the spiny microscleres; whereby the smooth megascleres are larger and thinner. The morphological variation of the spicules as well as the presence of more fragmented spicules towards the base of the deposits, portray a variation in texture and in the state of their preservation along the profile, suggesting environmental variations at the time of their formation and deposition.

Jan 1, 2008

By S Hapugoda, J R. Manuel, X Cao, B D. McDonald, N A. Ware, L Lu

Roy Hill is a large iron ore mining, processing, railing and port operation in the Pilbara region of Western Australia. Since delivering its first shipments to customers in December 2015, Roy Hill has quickly achieved a 60 Mtpa production rate of lump and fines products. The process plant, principally consisting of wet scrubbing, screening and de-sanding unit processes, was expanded from early 2020 to include operation of a Wet High Intensity Magnetic Separation (WHIMS) Plant. The WHIMS Plant treats tailings to recover approximately 4 Mtpa of ultra-fine (nominally -150 μm) high-grade hematitic concentrate which, after dewatering, is blended into the fines product. Unlike typical hematite concentrates, which consist largely of dense particles with smooth surfaces, the WHIMS concentrate is characterised by very finely microporous hematitic/goethitic particles, reflecting the overall characteristics of the Roy Hill deposit. Detailed test work has been conducted in collaboration with CSIRO to characterise the WHIMS concentrate in terms of its physical and mineralogical properties, and to determine its influence on the granulation and sintering performance of Roy Hill fines – from fundamental/lab-scale and sinterpot perspectives. The results demonstrate that blending of the high-grade hematitic Roy Hill WHIMS concentrate into the fines product can maintain overall sinter quality and positively influence granulation and sinter melt formation, as well as Fe grade.

Nov 8, 2021

By P Esteves, J L. Bechir, R Galery, C Senna, V Souto

The current moment experienced by the mineral industry is marked by a series of economic, social and environmental challenges. Among the main challenges, it is important to highlight the decreasing in ore grades with the gradual depletion of the existing deposits, the high volatility in international commodity prices and the operational inefficiencies in the mine, beneficiation, and metallurgical plants. In this context, mining companies are continuously looking for alternatives that minimize production costs and maximize overall production. In addition, recent tragedies involving tailings dam collapses in Brazil, reinforced the need for a more responsible, sustainable, and conscious mining, such as aiming the preservation and rehabilitation of the land environment. In this scenario, the Sensor-Based Sorting (SBS) technology is currently getting more space into the mining market. This separation technology aims the removal of gangue material in coarse particle size fractions, prior to comminution and concentration stages. As a consequence, the technology allows a smaller consumption of energy, water, chemical reagents and other inputs. Moreover, the sensor-based sorting is a dry processing technology and favors the reduction of fine material to be sent to the tailings. The aim of this paper is to provide information regarding the technical and economical evaluation of SBS technology applicability to a zinc silicate mining in Brazil. The project evaluation was performed in two stages: laboratory test work and the execution of a pilot plant. The execution of a pilot plant allowed the technology optimization, quantification of downstream process effects, such as a proper economic evaluation about the technology benefits. Keywords: Sensor-Based Sorting; Particle Sorting; Ore Sorting; Preconcentration; capital expenditure (CAPEX); operating expenditure (OPEX); zinc; comminution; dry processing.

Nov 10, 2020

In todayÆs evolving and globalised world, mining companies are being pressured to move beyond compliance towards long-term sustainability and sustainable development. Companies are expected to æengageÆ communities and measure the success of these engagements without a clear understanding of æhowÆ to do this. This move, away from compliance, develops more of a focus on sustainability and æcommunityÆ social responsibility rather than corporate social responsibility. This shift leads to the development of world-class projects that provide sustainable development for people, reduce the incidence of costly delays, and promote good global citizenship for companies. The process of æengagingÆ communities in mining project design and development leads to sustainable development, a stronger license to operate, and a reduction in social and political risk. To create this mutually beneficial relationship between communities and companies, communities must be æengagedÆ in the project development and risk assessment processes as early as possible, preferably during the exploration or the concept phases. How to create this æengagementÆ and manage this risk will be discussed.

Jan 1, 2007

By B Jones, M Chappell

Installing ground support correctly is not an easy task, whether lack of operator training, poor ground conditions or underperforming equipment. Confirming the quality of installation can help with planning and remedial works and help to maintain a safe working environment. A 2?m bolt with 700?mm of encapsulation will pass a 10?t pull test (assuming ground conditions permit); however, it will not provide any data of the unencapsulated length and thus the ability to withstand corrosion. Complimentary testing in the form of non-destructive testing (NDT) can provide factual data that leads to the assessment of the quality of the encapsulation. By improving the quality of the encapsulation, the risk of corrosion is reduced, the ground support durability is improved and hence the asset life is enhanced.This paper presents a case study of a trial using the NDT system RokTel™. Installations of varying quality were installed and tested. The characteristics tested were corrosion, load and free length. These characteristics can be tested and assessed for cable bolts, thread bar bolts and split sets. The aim of this paper is to present NDT testing as a viable method for assessing installation quality and ongoing performance of the ground support.CITATION:Jones, B and Chappell, M, 2014. A non-destructive testing method for measuring bolt condition, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By D Connelly

Silver and gold bearing ore from the Troy Resources NL Casposo Gold-Silver Project, located within the San Juan Province of Argentina contains a complex mix of gold, silver, electrum and silver sulphides in the ore. Casposo is a typical low sulphidation epithermal style gold–silver deposit where mineralisation is hosted within rhyolite – andesite flows and breccias. Veins are typically banded quartz–chalcedony colloform - crustiform banded with quartz - carbonate infill. Mineralisation is associated with an assemblage consisting of quartz, chalcedony, adularia, calcite, illite, sericite and trace sulphides. Gold and silver occur as electrum, native silver, sulfosalts and silver sulphides. This paper presents a case study that describes the process selection, development and engineering of a tailored process plant for the recovery of gold and silver from this ore.The original feasibility study, modelling, metallurgical testwork and engineering studies are outlined. The final flowsheet was based on minimising capital cost, operability, recovery and minimising technical risk.The process flowsheet uses the traditional Merrill Crowe route because of the high silver to gold ratio in the feed and achieves maximum gold and silver recovery while providing a common facility for future ore body treatment.

Aug 8, 2011

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

Establishing the link between the solid, cold rock of dikes, sills, plutons, and lavas and hot, active magma chambers is the quest of igneous petrology. Differentiation of Earth, the diversity of the igneous rocks, and the spectacle of volcanism are ample evidence that magmatic processes are fundamental to our understanding of planet formation and evolution. Single gabbroic plutons, on the other hand, often show intricate and abundant evidence of the effects of crystal growth and sorting. It has not proven simple, however, to establish the basic principles of magmatic behavior leading to this crucial evidence. Because of their abundance, exposure, simple geometry, large range in size, and often straight-forward petrology, sills are excellent examples of the magma chambers. Physical and chemical processes operating in sills can be recognized that also routinely operate in many other bodies. Understanding the dynamics of sill solidification is essential to understanding the genetic links between lavas and plutons.

Jan 1, 1990