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By Clark Woodland, William E. Stanley

Mining companies have been required to enter a "new era of management" in the 1980's as they strive to become more efficient in an increasingly competitive market place. One response for many companies has been to modify their mine accounting systems to make them more effective for cost control and decision-making. This paper discusses some of the major issues in developing and implementing a standard costing system as part of improved management reporting and cost control procedures. It describes the key features and benefits of a computerized standard costing system with particular emphasis on budget-setting and variance analysis. It also identifies important factors to be considered in order to achieve successful project planning and Implementation.

Jan 1, 1987

Staff turnover percentages on projects in the minerals sector are at levels that would not be accepted in business less than five years ago. While this is being driven in part by the shortage in skills to service the industry there are underlying factors, beyond the increases in remuneration, adding to the turnover. Having identified the five major reasons why people do not stay, this paper confirms that leaders and the various styles are common to all companies. The paper comments briefly on these major reasons and suggests the problem is firmly with management. It also offers possible remedies to reduce the attrition and therefore improve the opportunities for a quality project evaluation.

Jan 1, 2009

Education for the Mineral Industry in Australia developed in an uncoordinated but effective fashion till the mid 1960's, with recognised quality in graduates, with output matching demand, and with industry needs being fulfilled. Then in the space of a further 20 years, as company structures expanded, as the number, complexity, and costs of mineral projects escalated, as educational facilities, costs and politics increased, as community perceptions and aspirations changed, as government control of minerals and education increased, and as mineral sales cycles and markets fluctuated widely, the very fabric of Australian Mineral Education fell in tatters. Extractive Metallurgy Education suffered most in this collapse, and no compre- hensive remedies have been initiated. We are all the losers. In the 1990's, the extraction of Australian minerals and metals will increase in international significance, and the education of Extractive Metallurgists must meet this need. After examining the current situation, a series of management strategies are proposed to enable Extractive Metallurgical Education to survive and prosper in the next two decades and beyond. These strategic proposals involve industry, the government, the educational bodies, and individuals, in a range of short and long term objectives, policies, and actions.

Jan 1, 1984

Technological advances evolve in different ways; many are the result of years of application of scientific method. i.e. Observation Deduction Hypothesis Proof In the mining industry, better explosives, drill bits or reagents are likely to evolve in this way. The scientific method is suited to the application of conventional management structures. Other advances are simply the result of a "brainstorm", or building a better mousetrap. Such inspiration probably resulted in "Split Set" rock bolts, or the first use of a vacuum cleaner principle for shaft mucking. Individual consultants can apply lateral thinking to generate such inspiration. In gathering material for the presentation of this paper, I sent a.letter to all members of the Mineral Industry Consultants Association asking them to nominate problems in the industry requiring investigation. The answers have been divided into two classifications - contract research underway and identified problems requiring solutions.

Jan 1, 1986

By Steve Karl

Introduction Technological advances in mining and processing have started the domestic mining and mineral industry back on the road to competitiveness. A massive trade deficit, however, coupled with foreign competition and more government regulations threaten to slow this recovery. So say mining executives in Colorado and Minnesota. These industry decision-makers agree that their challenge is to continue the technical innovations of their industry. The journey back to profitability and competitiveness means improved products, they say, but at lower production costs. At separate gatherings in January, officials in both states said that they believe their industry is up to the challenge. Worker attitudes will have to change, they understand, and management styles will need adjusting. And, while they are willing to make the necessary adjustments, they are going to need some help. Or, at the very least, less interference from the federal government. Foreign markets, all but closed to American products, must be opened up on a reciprocal basis. The nation's $170 billion trade deficit is a priority item that can no longer be ignored. And, closer to home, federal and state environmental regulations concerning mineral production must themselves be monitored. 1987 in Colorado While Colorado's service and trade industries should have a fairly good 1987, the state's mining industry can expect another disappointing year filled with layoffs and declining profits, according to the Colorado Mining Association. Once again, foreign competition and government regulations are seen as the main reasons for the mineral industry's woes. And state mining officials see little relief until at least the 1990s. Speaking to a group of reporters at its annual press briefing in Denver, CMA officials said Colorado's overall nonfuel mineral production is expected to fluctuate between a flat and declining growth trend. Mining employment in the state is expected to fall by 400 people this year, to about 7500. In 1981, Colorado mines employed as many as 17,800 people. During the 1970s and early 1980s, the employment rate in mining in the state grew by 12% annually, according to a summary report compiled by the CMA. Last year, worldwide molybdenum production continued to exceed demand US moly producers, therefore, were forced to continue their familiar path of production cutbacks, as well as workforce reductions. And some molybdenum mines in the US closed altogether, the CMA report stated. In Colorado, Amax's Climax and Henderson molybdenum mines operated at about 50% of combined capacity. Climax employed about 200 people at the beginning of 1987, producing about 5.4 kt/d (6000 stpd) or ore. Henderson employed about 700 people, producing about 24.5 kt/d (27,000 stpd) of ore. In coal, the number of licensed coal mines in Colorado has declined from 124 in 1960 to 43 in 1986, of which only 23 were producing. Once a stable source of employment and production, the metallurgical coal industry in the state has only one surviving metallurgical coal mine, Mid-Continent's Orchard Valley mine. High production and transportation costs, weakness in the US steel industry, and a weak market position have contributed to the decline, the summary reported. "The challenge facing most mining companies in the United States today is to survive," said

Jan 3, 1987

The Lennard Shelf Operations owned by Western Metals Ltd evolved from the Cadjebut Zinc Lead Mine (BHP) in August 1994. Original production of 0.5 mtpa will rise to 2.0 mtpa at the end of 1998. Employees work a multiple of fly-in/fly-out (FIFO) rosters from the Kimberley region and the WA Capital. The three underground mines, treatment and services departments will employ approximately 300 people by the end of 1998. The expansion of the Lennard Shelf Operations as a remote mining location was based on a fresh look at management systems and employee rosters which were generated from many years of mining experience. This paper will endeavour to summarise these experiences and analyse some of their outcomes. Dealing with several mining methods, engineering difficulties, logistical problems and climate extremes, the Lennard Shelf Operations has managed social/employee issues with excellent results. Much time has been spent to get this correct for the Lennard ShelfÆs own set of circumstances. Employees and associated companies must expect continuing changes and improvement as Western Metals strives to continually improve its management systems and employee rosters.

Jan 1, 1998

By Tim Mann

"Like other operating mine sites, Placer Dome Inc. - Campbell Mine has taken important steps over the last few years to address environmental issues.This paper will provide specific insights into the implementation of an environmental management system at Campbell. In particular, it will focus on how Campbell developed its plan of action; the lessons that have been learned; the over-all steps that are being taken to enhance environmental stewardship and effectively manage relationships with key stakeholders.IntroductionThe development of an Environmental Management System at Campbell Mine has been part of a general development in management practices which has taken place at the mine during 1990. This paper will discuss the components of the management system in the topic areas of: direction setting; environmental organization; issue assessment; emergency response plan; training ; monitoring/verification; reporting and data management; and relationship management.Although this paper focuses on environmental management systems, the development of this system has partly been a function of responses to other issues which have been addressed concurrently with environmental concerns. These other issues include development of operations management, human resources practices, and safety management practices at the mine. As the Environmental Management System developed, various stakeholders associated with local environmental concerns were identified. This group of stakeholders include the local community; municipal, provincial and federal governments; government agencies; Campbell employees; and the Placer Dome Inc. Corporation."

Jan 1, 1991

It is no longer adequate in running mines and quarries to simply select the best equipment. Today's competitive international commodity markets demand superior efficiency. This requires efficient production and commercial processes together with systematic involvement of people in continuous improvement of processes. True Total Quality of Management (True TQM) principles provide an operating philosophy for maximising productivity and minimising unit costs of output. Unfortunately, even though these principles are proven in all industry sectors worldwide, they have not always been used correctly. This paper describes basic methodology for correct use of these principles to successfully improve the productivity of rock breakage production processes.

Jan 1, 1995

Currently all engineering schools face a common problem, an ever expanding technological base which must be presented to students within a fixed time period. Traditionally the programmes of study taken by engineering students destined for employment within the mineral industry include formal instruction in aspects of management to an extent greater than that presented in other engineering disciplines. Providing an adequate coverage of an expanding technological base within a fixed time span can lead to a reduction in the time available for 'non-technical' subjects, such as 'management'. This situation calls for periodic review of course contents and allocations of time. Following consultation with an Advisory Committee representing the mineral industry, mining research establishments, and kindred teaching institutions, the University of Melbourne has revised its mining programme. This programme is offered as an example of how aspects of management such as communications, economics, labor

Jan 1, 1980

By Alan R. Gadberry

To resolve drilling and blasting problems, rather than treating symptoms and allowing problems to grow, the mine operator needs to change the way he operates. When a mine operator discovers a drilling and blasting result that he doesn't like, it is easy for him to think of that disappointing result as a problem. More often than not, however, that result is only a symptom of a problem, and the real, underlying problem cause can be seen when the operator looks in the mirror. Symptoms and problems relating to drilling and blasting are resolved when the mine operator makes appropriate changes in the way he manages his operations.

Jan 1, 1985

By William L. Batt

IT IS becoming increasingly evident to management that it has other obligations than merely to earn dividends for stockholders. The head of one of America's largest organizations has stated it in these words: "There rests upon them a far broader responsibility than the mere production of goods and services, or solely the interests of their stockholders. They must assume the important obligation, through proper policy, of attuning industry to a rapidly changing world, from social as well as economic standpoints." Stockholders might as well reconcile themselves, therefore, to the fact that management cannot always put their interests first in the obligation of business enterprise: and that the legitimate requirements of customers and employees have acquired a new significance which must be recognized if the business of today is to prosper.

Jan 1, 1938

By M. J. deBastiani

The uranium producing division of Denison Mines Limited operates a 6,000-ton-per-day integrated mining unit in the Algoma area of Ontario. The property is located approximately one and one-half miles from Highway I 08, eight miles north of the town of Elliot Lake. The property was staked in 1953, diamond-drilled in ?late 1954 and 1955, and put into production in 1957. Since that date, the operation has produced $250,000,000 worth of uranium oxide from approximately 11,000,000 tons of ore milled, and paid $18,000,000 in dividends to its shareholders. The operation employs about I000 people, and monthly operating costs are approximately one million dollars. From these figures alone, it is obvious that it was necessary to develop and institute an adequate set ?of controls for effective management at all levels of supervision over a period of four years, a system of production and cost control was developed that enables us to effectively measure the pulse of the various phases of the operation at any given time.

Jan 1, 1963

By R. L. Hills

America's industry uses about 44% of the total energy consumed by the nation directly as fuel burned in industrial plants or indirectly as fuel burned by utilities to provide electric power. In addition, industry requires raw materials or feed stocks derived from fuel sources or having fuel value. This represents about 11% of total U. S. energy consumption, bringing industry's portion to about 55%. Adding that portion of energy consumption required by the transportation sector to move raw materials, intermediates, and finished products, the total energy impact of industry approaches 213 of total U. S. consumption. It is obvious that American industry has the largest share in the task of balancing energy demand and supply. What are we going to do? -- We must increase the supply of energy and increase the beneficial results obtained from each unit expended. Both avenues, unfortunately, are limited in extent and speed. Increases in supply cannot occur without drastic and permanent increases in cost. These increases in cost are un- desirable and inflationary but do provide incentive for the rational businessman to expend the effort and money required to improve the effectiveness of energy in industry.

Jan 1, 1975

The 1990s present many challenges, not the least of which is in the area of health and safety. Integrating of safety and health into the management process to suit the overall needs of a company will require commitment. Organisations which consistently perform to high success levels do so because they plan it that way. By using tools of total quality management, the potential to continually improve all safety processes exists. The successful integration of total quality measurement principles used in the improvement of safety processes, and the measurement of performance-based activities allow for prevention of accident causing scenarios and performance improvement.

Jan 1, 1993

By R. G. Eggert, M. R. Walls

A mining CEO's willingness to participate in risky investment opportunities significantly affects a company's strategic-investment decisions. Decision-analysis techniques provide a mechanism for measuring a CEO's risk tolerance and ability to make formal comparisons of risk propensity among mining firms. The authors developed a methodology for measuring CEO risk tolerance. The findings from a confidential survey of mining CEOs are presented. The results from the survey suggest that: •mining CEOs are overwhelmingly risk averse when considering investment decisions; •CEOs of small mining firms are significantly more risk averse than CEOs of large mining firms; and •there appears to be some differences between Australian and non-Australian CEOs regarding their willingness to participate in risky investments. The results of this survey suggest that CEOs are pursuing objectives other than, or in addition to, maximizing shareholder wealth and that they act to reduce the financial exposure associated with strategic investments.

Jan 1, 1997

By Paul D. Tomlingson

The difficult and often harsh working environment of the mining industry can stress both personnel and equipment to the extreme. Often, the unintended consequences of this environment lead to confrontations between departments, as each goes about its tasks of mining, maintaining or supporting these activities. On occasion, the confrontations may result in criticism of other departments for perceived or real sins or omissions. The offended department may not be able to change the circumstances, but can only complain while frustration persists. The most effective solutions are the actions of the mine manager. By establishing mutually supporting roles of each department and specifying conditions for the interactive conduct of maintenance, the mine manager can better assure that the inherent problems of the mining environment are neutralized.

Jan 1, 2011

Cost reduction programs can focus on total cost or unit cost, but unit cost is usually the principal objective. The production cost per unit is: [Unit cost = Total cost Production volume] Consequently, any activity that reduces the total cost or increases the production volume will reduce the unit cost. Production volume is increased by (1) maximizing the availability of the production equipment and (2) maximizing equipment performance during periods of operation. Most operations managers routinely focus on volume because the factors influencing volume are generally well understood and congruent with the managers' technical skills. In fact, production volume (as a percentage of maximum achievable capacity) is widely recognized as one of the most significant measures of operational performance.

Jan 1, 1999

By John MacDonald

An unstable economy has shown businesses what the mining industry has known for decades ? a successful business location today may not succeed in the future. Unexpected expenses, natural events and workforce changes have a big impact on the costs of production. To help focus production and maintenance budgets, mining executives are increasingly turning to production metrics to make key decisions. Role of mine and mill data Companies employ a variety of information systems to allow employees to accomplish their operational tasks, and each worker is focused on the metrics, or key performance indicators (KPI), for his or her individual function. For example, machine operators monitor throughput and cycle time to keep the machines running continuously and to meet daily production quotas. Meanwhile, the maintenance teams monitor machine performance, overall equipment effectiveness (OEE) and meantime between failure to predict and help prevent downtime.

Jan 1, 2013

By L. R. Stace

Arguably, one of the most significant technological breakthroughs that had been experienced during the period when British Coal was the major coalmine operating company in the UK, the use of rockbolts as principal support in underground roadways brought with it the need to re-assess the technical knowledge, management controls and legislative frameworks associated with the support of mine workings. Following a major roof fall in a roadway supported principally using rockbolts in which fatalities occurred, the process of the design of rockbolted support and the systems and procedures that had been put in place to control its use in the UK were further reviewed. The paper discusses the outcome of these reviews, and how the incident initiated a major new interest in strata control research in the UK against the background of the fragmentation of the ownership of the mines following the sale of the former British Coal assets at the end of 1994, together with the proposed introduction of new strata control legislation in 1996.

Jan 1, 1996

By Prodipto Ghosh

This paper is prepared as a review of existing and traditional methods related to electrical maintenance strategy. Its primary focus is to explore newer ideas and how they point the way to a more efficient and effective manner of electrical maintenance. This discussion is primarily related to large electrical distribution assets typical of heavy industry such as mining.

Aug 1, 2013