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During the 1998/99 Asian crisis Solid Energy's export revenues collapsed from over US$70M to under US$40M. Simultaneously, domestic market uncertainty led to decreases in volumes and prices. A major new underground mine was not technically viable, and was closed, and several other mines were marginal. Less than two years later, Solid Energy and its JV partner closed a second new underground mine. The company was in financial crisis, and reported an $86M loss for 1998/99. After refinancing with stringent workout conditions it still had minimal returns due to low prices, unaffordable transportation costs and huge unrealised FX losses as the NZ dollar fell 40 per cent in value. The obvious scenario was to æcash upÆ û complete extraction at remaining mines, sell off any viable parts of the business, pay off debt and wind the company down.In 2002 Solid Energy has completed its recovery. Although margins remain slim and volatile in both export and domestic markets, it is achieving record volumes and revenues. It has paid off its shareholder loan, has minimal remaining FX losses, and cashflow is allowing further mine and infrastructure development. The key to the turnaround has been implementation of rigorous planning, analysis and decision-making in all aspects of the business. The company has a comprehensive, rolling 20-year plan used annually to update rolling five year and annual business plans. Solid Energy augments strong line management operations with rigorous standards and processes for mine planning and development, operational decision-making, and functional support. Detailed, quantitative risk analysis is used in all aspects of the business and allows comprehensive integration of opportunity and risk management across all activities in the company.Coal mining is widely perceived as an æold-economyÆ industry. But, like other successful æold economyÆ companies, the information systems and management processes used by Solid Energy are as leading edge as any in the high-tech sector. They are the key to managing to add and sustain maximum value for a company that has access to coal resources sufficient for hundreds of years.

Jan 1, 2002

By A B. Christie, R Barker

Recent studies carried out to support the development of a strategy for the New Zealand mineral industry by the NZ Minerals Industry Association have included investigations of mineral potential, and the development of scenarios for realising this countryÆs mineral potential by 2010. New economic research is applying a general equilibrium model to quantify the opportunity cost of this potential. The model analyses separately four categories of land (private land and three categories of Crown land) and identifies four distinct mineral classes û precious metals, industrial minerals, coal and aggregate. It investigates the economic effect of the increased availability of mineral resources on the mining industry itself, on other industry sectors and on the NZ economy generally, including its impact on unemployment, GDP and household welfare.The analyses suggest that increases in the level of GDP of between 1.9 per cent and 3.4 per cent may be obtained by utilising New ZealandÆs mineral wealth to varying degrees. The mineral industry sectors are significant beneficiaries under all scenarios; mineral output increases by between two and five times its current level. However, the flow-on effects to the rest of the economy, and to households, are also significant. The analyses show that household income, adjusted for changes in consumer prices, can be expected to increase by between 1.6 per cent and 2.7 per cent. This results largely from increased employment.

Jan 1, 2002

By A D. Strand

The Coeur dÆAlene mining district in northern Idaho, USA is the second largest producer of silver in the world. The Proterozoic Revett Formation hosts most of the mesothermal Ag-Pb-Zn vein ore in the district; it consists of informally designated lower, middle, and upper members. All three members show up to an order of magnitude of southward thickening across the regionally significant Osburn fault. Changes in thickness of the Revett Formation across the Osburn fault reflect a major, down-to-the-south, crustal-scale fault that:was active during sedimentation, was periodically reactivated during the structural and metallogenic history of the district, and likely provided first-order control over regional fluid flow during mineralization events. Where vein structures intersect favourable strata, they produce rich ore; where vein structures cross unfavourable strata, they are poorly mineralised or barren. The most favourable host rock in the district is quartzite, which accounts for the large production from the quartzite-rich Revett Formation.The district has five main types of hydrothermal alteration:feldspar destruction, hydrothermal bleaching, carbonatisation, sulfidation, and silicification. Feldspar destruction is the most extensive and pervasive type of alteration, involving the district-wide absence of feldspar from Belt Supergroup rocks. Hydrothermal bleaching results from the destruction of hematite; it forms alteration envelopes that extend for tens to hundreds of metres into the wall rocks around many of the mineralised veins. Siderite alteration is most diagnostic of mineralisation, forming alteration envelopes that extend for tens to hundreds of metres into the wall rocks around all mineralised veins. Fine-grained arsenopyrite and/or fine-grained pyrite commonly form alteration zones adjacent to high-grade ore shoots that extend for metres to tens of metres into the wall rocks. Widespread silicification is most easily recognised by the presence of numerous quartz veins.

Jan 1, 2002

Over the past 18 months the De Beers Consolidated Mines Ltd operations have made a concerted effort to move away from using the traditional shock tube initiating systems. These systems are being systematically replaced by the use of electronic delay detonators (EDD). Various trials were conducted in both host rock and kimberlite rock masses to improve tunnel advance as well as to optimise delay timing during trough openings (Ngoma et al, 1999; Mohle, 1999; Baltus, 2000). The high cost of EDDÆs, when compared with traditional initiation systems, led to a number of detailed studies being conducted on the mines where EDDÆs were being used. These studies aimed to quantify the additional benefits when blasting with electronic detonators. The studies showed that the change was justified on the basis of increased quality control and reliability gained through the use of EDDÆs. However, these benefits attract other related benefits, like fragmentation control, and backbreak reductions. When compared to the shock tube initiating systems the increased development face advance and the reduction of oversize during production blasting using EDDs, compared favourably to the less costly systems. As blasting engineers gained experience and confidence in the use of the system bigger blasts were initiated in mass under-cut blasts and slot raise development, by using multiple hole firing and second delay periods between holes. In the open pit and sublevel open stope mining methods the control of the fragmentation distribution and the effect of the mass of explosive detonated during a blast is detrimental to the loading and hauling production rates and the stability of the rock mass behind the blast. With a stable rock mass the bench cutting can be executed to establish steeper overall slope angles leading to large cost savings due to a reduction in waste stripping. It is the purpose of this paper to indicate through quantification that the use of the EDDs as an initiating system improves all-round blasting performances and assists in meeting customer requirements. The customer being the ore treatment plant.

Jan 1, 2001

By S Adamson

Morphological analysis of alluvial gold recovered from the same segment of a placer by four common commercial methods indicates that gold shape and the presence of quartz intergrowths or sulphide overgrowths substantially influence the recovery efficiency of each method. The amount and types of gold saved by each method varies according to the different hydrodynamic conditions under which each of the methods operates. Reverse circulation drilling has the lowest efficiency and preferentially loses moderate-high flatness gold and intergrown or overgrown gold particles with relatively low density. Gravity riffle, hydraulic riffle, and jigcentrifugal concentrator systems respectively save progressively more of these problematic gold morphotypes, but still lose significant and sometimes substantial amounts (of profit) to the tailings. Because of the differences in recovery efficiency, reverse circulation drilling probably underestimates the grade of most placers and may have resulted in bypassing several economic deposits. Losses to tailings by commercial recovery plants arise from inadequacies in fundamental plant design features. These inadequacies compromise plant efficiency by limiting the ability of plants to simulate the wide range of hydrodynamic conditions necessary to operate effectively throughout placer systems. Incorporation of sand pumps and multiple recovery methods into the more sophisticated plants only partly overcomes these inadequacies. At best, efficiency will be maximised in a few segments of the placer determined by individual plant design, and will decrease progressively upstream and downstream of those segments. Without prior knowledge of the morphological characteristics of the gold to be mined, it is difficult to choose the most appropriate plant design, or to estimate what proportion of the gold will be recoverable by any given plant. If the relevant relationships are not considered beforehand, the recovery plant is likely to lose a significant proportion of the gold, and sacrifice maximum profit.

Jan 1, 2001

By B Ellis

Brunswick Mine is one of the largest underground zinc/lead mines in Canada, producing 3.4 million tones of ore annually. As mining activities advance to deeper levels, ground pressure also becomes greater. To cope with the highly stressed ground, the mine has taken some strategic measures to ensure the targeted production level. Such measures include the implementation of a pastefill system and transferring the mining method from primary/secondary stoping to pillarless pyramid stoping. With the pillarless mining method, stope sizes become smaller and the number of active stopes is also less than before. In addition, mining sequence and cycle time have to be strictly followed according to production schedule. The blasting project described in this paper tackles one of the steps in the mining cycle aimed at shortening the blasting cycle time in a stope. Furthermore, this project was conducted and managed with the Six Sigma initiative in Noranda which was implemented in the fall of 1999. Like a typical process review, the blasting operation was examined by breaking it down into many steps that can be quantified and measured. Each activity was then correlated with different factors associated with blast design as well as blast operations underground. It was found that the utilisation of voids plays a key role in the blasting cycle time. With improved void utilisation ratio, blasting cycle time has been reduced from an average of 12 shifts to ten shifts per stope. This improvement translates into approximately 180 000 tonnes of ore being blasted without any increase in manpower. This paper presents the technical aspects of the study, as well as some operational issues and improvements made during the project.

Jan 1, 2001

Gold mineralisation at the Macraes Gold Project is hosted in the Hyde-Macraes shear zone and can be traced for ~30 km along strike, although economic resources are confined to a seven kilometre section in the vicinity of the Macraes  township. The shear zone, which typically dips at a low angle (~20¦) to the NE, is bounded by an upper hanging wall shear and a lower footwall fault. Mineralisation occurs along the hangingwall of the shear zone as well as in low angle concordant shears and stockworks. Ore types include graphitic cataclasites with variable amounts of quartz veining, 'lode schists' and quartz-vein stockworks. Mine geology and grade control activities are designed to ensure accurate definition of ore and waste as well as the accurate prediction of ore grade. Grade control involves an integrated process of blast hole sampling, geological mapping and geostatistical modelling. Geological mapping is carried out post blasting by means of excavating trenches across are zones defined by assay data. Conditional Simulation is used to model raw assay data to define ore-waste contacts and estimate ore block grade, although, geologically defined contacts have precedence. Low angle ore zones impart a wedge shaped geometry to many ore blocks. These ore blocks are bounded by contacts that can be selectively mined to, thereby reducing misallocation of ore and minimising grade dilution.

Jan 1, 2001

By A S. Lund

Optimisation of the underground mining production process benefits from informed decision making during the process of explosive rock fragmentation. Selection of the most appropriate bulk explosive products for underground production blasting is an area of endeavour that offers significant economic upside if correctly and thoroughly undertaken. The explosive selection process is facilitated by a clear understanding of:the physical and detonic properties of the alternative explosive options available; the response of different rock masses to these different explosive options; and the importance of maintaining a clear focus on desirable blast outcomes in order to enhance value creation aspects of the mining production process. The level of understanding of these issues is raised through the application of measurement and modelling technology, quantifying the effects of blast design (and implementation) on process outcomes. Homestake Darlot and DynoConsult applied a range of dynamic blast measurement and outcome modelling techniques in order to explore the relationship between rock properties, explosive properties and mining process efficiencies. A campaign of vibration and explosive Velocity of Detonation (VoD) measurement produced feed data for use in vibration and fragmentation modelling during the extraction of one of the major stoping blocks at Darlot Gold Mine. The paper describes the use of these tools and discusses the understanding gained concerning the limitations and capabilities of, and the reconciliation between, a selection of analysis and modelling approaches.

Jan 1, 2001

By J P. van Dyk

A new crude ilmenite beneficiation process was recently proposed that allowed for the preparation of a smelter grade ilmenite from ilmenite with elevated chromium content. Magnetising roasting was not utilised in the process. As part of this circuit an ilmenite low susceptible reject stream was produced that had a low magnetic susceptibility. In this article a magnetising roasting process was investigated to beneficiate this material. Tests were conducted on material produced by pilot scale simulations on a typical South African East Coast heavy mineral reserve. The results obtained were compared to those published in literature for crude ilmenite. The small-scale experiments were used to define approximate operational limits for the oxidising roasting of a low susceptible ilmenite low susceptible reject stream, although industrial roasting conditions may differ significantly from those obtained in laboratory units. In a next phase these results will be confirmed on pilot plant scale.

Jan 1, 2001

By M Freeman

In a visionary move, the Planning Commission and the Ministry for Planning in Western Australia decided to invite three extractive industry quarry operators, local government councils and State Government departments (Minerals and Energy, Environmental Protection, South West Development Commission) to contribute jointly to study the impacts of blasting on areas surrounding basalt quarries in the Bunbury region of WA. The results of the study will help establish suitable zones in which land uses will be controlled under a proposed Greater Bunbury Region Scheme and in local planning schemes, to minimise conflicting land uses. This paper discusses the blasting program conducted to characterise and model the vibration behaviour of the rock under the effects of pilot-scale and full production blasting, and highlights some of the benefits achievable when a thorough blasting impact program and assessment is conducted at the planning stages of land-use establishment.

Jan 1, 2001

Whilst the wider community is both a large consumer of mineral products and relies on mineral exports for much of the wealth which sustains it, the community generally has a poor perception of the minerals industry.   The role of professionals and The AusIMM in the "New Economy" minerals industry is reviewed. The new structure of The Institute is vital as we move forward in times of globalisation, rationalism, increasing litigation, criminalisation of risk and increased focus on corporate governance. This address looks forward to ways The AusIMM and professionals of the future are positioning themselves for these and other challenges.

Jan 1, 2001

By D Gelling

Mineral sands dry plants consist of a large number of repetitive unit operations with significant transport delays, in the form of stream pipes, conveyors and elevators. As part of the P255 mineral sands sponsorship and using the JKMRC developed conductor/non-conductor (CNC) gauges, control loops have been implemented at the multi-duty dry plant of Cable Sands Limited at Bunbury. This paper describes the loops for kV control on a rougher high tension roll machines (HTR). The options available are product grade control and ratio control using the JKMRC CNC gauges, which measure the percent conductors in a stream. The purpose of control is to stabilise the circuit operation against disturbances such as atmospheric and feed disturbances.

Jan 1, 2001

Quartz, adularia and clay minerals from low-sulfidation epithermal veins at Hishikari were analyzed for their oxygen and hydrogen stable isotope compositions to establish the source of paleohydrothermal waters. Positive correlation between Au-Ag and adularia: quartz ratio, the presence of quartz pseudomorphs of bladed calcite, and Au-bearing smectite and vermiculite is indicative, but not definitive, evidence for the control of boiling on ore mineralization. Oxygen isotope equilibrium temperatures between quartz and adularia are about 220¦C and average homogenization temperatures of fluid inclusions vary between 190 to 210¦C. The calculated d18OH2O and dDH2O values (from quartz, adularia and early smectite) are consistent with paleohydrothermal fluids that were a mixture of magmatic and meteoric waters, or alternatively, the values could derive from heated meteoric water which had undergone isotope exchange during circulation through basement rock. Overall, d18Oqtz values in veins increase toward the north, most likely reflecting palaeo-fluid flow (source).

Jan 1, 2001

Australia has a long history of underground mining. Even withadvances in open cut mining equipment, techniques andeconomics, many orebodies are still best mined by undergroundmeans. In addition, modern exploration tools are æuncoveringÆorebodies that are at increasing depths. South African mines arecurrently producing from below 3 km, and developing down to5 km depths û it is likely that Australian mines will also becomemuch deeper over the next 20 years. One of the most significanttechnical challenges in deep mines is the problem of heat.Community expectations and legislated standards continue todrive operations towards improving the working conditions inmines. The hazards and costs associated with chronic hotworking conditions (heat illness, poor safety, poor productivity,higher operating costs and poor morale) are also becomingincreasingly recognised (Brake, Donoghue and Bates, 1998). Theexposure of miners to many other occupational hazards has beenreduced over the past 50 years. However, despite air-conditionedcabins greatly reducing the heat stress on mobile plant operators,there are still many Australian mine workers subject to levels ofthermal stress that existed a century ago. There are severalreasons for this, including a frequently-poor understanding of thephysiology of working in heat by mine management, no agreedmining code of practice for working in heat, the lack of a robust,practical-sized instrument to measure heat stress, the costpressures on the industry and, to some extent, deep-seatedtraditional management and worker practices. Howeversignificant progress has been made in many of these areas (Brakeand Bates, in press), with the net result that there is likely to be a trend towards installation of refrigeration of some form in manyAustralian mines in the future. This will add directly to the costof operation, but will also have direct and indirect benefits,including cost benefits. It should also be noted that Australia isnot at the forefront of adopting practices to manage temperaturesin the workplace: South African metal mines usually haverefrigerated cooling, and Canadian mines spend large sums onheating, with heating costs (averaged over a full year) of up to$A1 per tonne mined (Bandopadhyay et al, 1997). The history of mine refrigeration dates back to 1919 when thefirst plant was installed at Morro Velho, Brazil. By 1965, the totalinstalled capacity (worldwide) reached about 100 MW(R)i. Since 1965 the growth in mine refrigeration capacity has beenexponential, with a doubling every six or seven years (Howes andNixon, 1997). South Africa is by far the largest user of minerefrigeration, with over 300 refrigeration machines installed. This paper discusses the key design issues associated with theapplication of refrigeration in underground metal or coal mines.Whilst the emphasis is on large, surface plants, small, surface orunderground refrigeration plants can also be very effective in thecorrect application and many of the principles of design andoperation are the same.

Jan 1, 2001

Hydrometallurgy has a history of over 300 years with copper leachingand cementation having been exploited in Spain as far back as 1670.Since then, hydrometallurgy has become an integral, expanding branch of extractive metallurgy. This paper reviews major developments in hydrometallurgy over thepast century with emphasis on recent commercial developments and their impact on the mining and metals industries. The environment in which these developments has taken place has changed significantly in the past two decades and many factors, often non-technical, have emerged as constraints on the operation of existing plants and the expansion and development of new hydrometallurgical operations. Finally, a number of possible new developments that will shape thefuture of hydrometallurgy in the new millennium are discussed,particularly as they relate to the assimilation of technical advances in other areas of science and engineering. The impact of current trends in the education of hydrometallurgists and the provision of research in support of these future developments is also addressed.

Jan 1, 2001

Determining the environmental consequences of green field projects is becoming an increasingly important component of new projects. Feasibility studies are regarded by potential investors as incomplete if a comprehensive Environmental Impact Assessment (EIA) has not been completed. These EIAÆs need to meet various local and international requirements in order to achieve bankability. Heavy mineral mining projects are often located in ecological sensitive coastal zones, and bring with them a suite of social impacts in the mainly developing countries within which they are usually located. This paper draws on experience gained in undertaking EIAÆs for heavy mineral mining projects in Kenya, Mozambique and South Africa, and uses these case studies to identify potential pitfalls. Important lessons include the need to initiate the EIA process as early as possible in the project, in order to develop management systems to mitigate the environmental impacts of exploration. Close and on-going consultation with affected communities is also seen to be critical to the success of the EIA. Proactive participation on the part of the environmental consultants with the project team and all interested and affected parties (IAPs) is important. An EIA commissioned later in project planning makes it difficult for the EIA to contribute in a positive manner to the project. Early engagement with environmental consultants allows the environmental assessment to develop from a report to an actual process, and to become fully integrated with project planning. The proviso is that an initial æfatal flawÆ assessment is required to identify any potential æshow stoppersÆ, in order to meet one of the important objectives of EIA, namely an assessment of whether or not the proposed project is the preferred development intervention in the study area. For more controversial proposals this may require the commissioning of a Strategic Environmental Assessment (SEA), which circumvents some of the limitations of the project level EIA. Whilst confidentiality is a constraint to full disclosure, an open participatory approach to public consultation is essential to add credibility to the EIA process and to gain, at least, the acceptance of the process from the majority of IAPs. Full disclosure is encouraged by organisations such as the International Finance Corporation, who acknowledge that good public consultation costs a lot of money, but bad public consultation costs a lot more! An open approach to disclosure presents understandable difficulties for proponents, as they are required to give up some of their control over the project, and to trust the social scientists engaged in the process. However, independence in the EIA process is critical to its success. This paper will highlight these and other issues by drawing on five case studies to identify lessons learnt, and explore the above themes in more detail.

Jan 1, 2001

As mines become deeper, the problems of heat in the workplacebecome more acute. An important response from the industry hasbeen the widespread adoption of microclimate cooling such asair-conditioned cabins. However, not all work in mines can becompleted from inside an air-conditioned cabin, and in any event,it is still important to keep the ambient air in the mine outside ofany microclimate to a safe temperature. An important method forbringing workplace temperatures under control is the appropriateuse of refrigeration. The application of refrigeration inmechanised mines has been recently described (Brake, 2001;Brake and Fulker, 2000). This paper provides an overview ofsome of the important engineering considerations in thespecification and selection of mine refrigeration plants. Thepurpose is to provide a basic understanding of refrigerationprinciples, practices, terminology, hazards and opportunities formining engineers or other personnel who may need to beinvolved in the introduction of refrigeration onto a mine site.

Jan 1, 2001

By R Wedmaier

Henty Gold Mine is an underground operation producing 100 000 ounces of gold per annum. The original mining method used was flatbacking with paste fill. However, a non-entry method û uphole benching û was introduced in 1998 to recover the deteriorating crown pillars. Initial challenges were encountered, including poor drilling accuracy, difficulty in charging holes and poor rise performance. These challenges were overcome by a Continuous Improvement Team, consisting of mining engineers, supervisors and miners. Following this, the Team implemented further changes aimed at reducing ore loss and dilution. A second area addressed by the Team was development blasting, where innovative detonator technology known as the ExelTM DevelDetTM was introduced and rapidly accepted by the operators. Continued use of the ExelTM DevelDetTM resulted in a number of benefits, such as easier bogging, less perimeter damage, faster charging and hook-up and decreased wastage. Finally, improvements were made in the area of explosive handling, where competency-based training of operators was conducted and manual handling of ANFO has been significantly reduced by the introduction of the MiniMoverTM into the underground magazine.

Jan 1, 2001

By C T. Dunbar, P A. Walker, G E. LeJuge

A programme of blast improvement was initiated at the Mt Whaleback iron ore mine by BHPIO management in early-1998. One component of that work was the need to improve wall control blasting practices to better achieve the designed pit slope elements. This paper describes the geological conditions in which pit walls are developed, the mine operating equipment, the blast design concepts applied to minimise blast damage, the techniques applied in an assessment of the blast performance and the operational procedures developed to ensure that the blast concepts are effectively implemented in the production environment. Substantial changes have been implemented in both technical and operational aspects of the mining operation in order to achieve the improvements in pit wall condition, in particular recognising the need for a more flexible approach to limits blasting in response to highly variable and complex geology. The benefits to the mine are not only an improved wall condition, but increased confidence on the part of mine management that mine plans may be implemented on design and on schedule.

Jan 1, 2001

The pressure of low commodity prices forced the design process for the second lift of Northparkes E26 Mine to adopt a continuous improvement philosophy. The emphasis was to minimise capital expenditure while still maintaining the excellent low operating costs achieved on Lift 1. Although the first block cave lift at Northparkes is the most productive underground mine in the world and is held up as a benchmark for the use of technology in mining, areas for improvement were identified. Every area was critically assessed and investigated for the possible application of new techniques and technologies. Key learnings from the construction and production phases of Lift 1 were captured, documented and used as the starting point for the Lift 2 design. This paper shows how and why the design parameters initially used onLift 1 were changed to become the current E26 Lift 2 developmentproposal. The main differences between the two block caves arehighlighted. The alternative techniques and equipment that wereconsidered are also discussed. * Originally published in the Proceedings of MassMin 2000,published by The AusIMM.

Jan 1, 2001