Search Documents

This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

The stability of parallel underground coal mine galleries and pillars have been investigated using two- and three-dimensional (3D) numerical stress analysis. Anisotropic horizontal in situ stresses and the direction of the excavations have been considered in the numerical analysis. The stability of the tunnels driven in a coal seam at various working depths has been investigated taking into account different strata conditions and then results from two- and three-dimensional numerical modelling studies were compared. Maximum principal stress components have been chosen in three various directions: vertical, parallel and perpendicular to the tunnel axis. Analysis have shown that in the anisotropic in situ stress field, the favourable direction of underground mine openings which have different strata conditions depend not only on the horizontal in situ stresses but also on the vertical in situ stresses. Furthermore, 3D numerical modelling studies have been carried out to investigate stability of multiple entry longwall panel gate roads and pillars with various width-to-length ratios (W/L). Results of the modelling studies have shown that the critical dimension of coal pillars depends on their width and the direction of maximum horizontal stresses.

Dec 6, 2010

Marble deposits of dolomitic variety are available in large quantities in India and for extracting these deposits diamond wire saw cutting machine is mainly used. Cutting performance of the diamond wire saw machine depends on rock parameters, machine parameters and operational parameters. Rock parameters related to physico-mechanical properties, such as, compressive strength, tensile strength, shear strength, modulus of elasticity and abrasion resistance of marble play role in determining cutting rate and beads wear rate. Thus, this study was undertaken to determine the relationship between different physico-mechanical properties and cutting performance. This work also aimed at enhancing the cutting performance of diamond wire saw in dolomitic marble deposit. Study was conducted in the field at three different zones having deposit of soft, medium hard and hard dolomitic marble. During the study, cutting rates and wearing of diamond beads were recorded in the field. Physico-mechanical properties were determined in the laboratory. The results obtained were subsequently evaluated by using statistical analysis. Study revealed that these properties of marble play a significant role in the performance of diamond wire saw machine. Predictive equations for the wearing of diamond beads and cutting rate were developed based on regression models. Results of this study will be of ample use for operators of wire saw to achieve maximum cutting performance and for manufacturers in designing the diamond beads.

Dec 6, 2010

Authors have been conducting research on autonomous loading operation by wheel loader. Autonomous loading cycles has been demonstrated with real size experimental model. In V shape loading operation, travelling between scooping point and dumping point is dominant factor for cycle time of the operation. The positions of scooping point and dumping point changes with advancing the operation. In the developed system, path planning is performed at the beginning of every cycle. The path is formed by combination of curve and straight path elements. During travelling on the planned path, path following control is applied on the loader to keep position error in narrow range. Positioning of the loader is based on dead reckoning with correction by global positioning system (GPS) data. In a process of path following control, control value for steering angle is determined based on position error in lateral direction. Proposed method of path planning and position control is installed and tested in the real size experimental model. The detail and results will be described in the paper.

Dec 6, 2010

The Earth Moving Equipment Safety Round Table (EMESRT) was established by mining companies in 2006 to influence manufacturer's equipment design through a process of engagement. 2010 EMESRT member companies include Anglo American, Barrick, BHP Billiton, Centennial Coal, Collahausi, Newcrest, Newmont, Rio Tinto, Vale and Xstrata.Driven by a persistent need for retrofits to new equipment, such as haul trucks, EMESRT initially engaged with Surface Equipment Manufacturers including Caterpillar, Komatsu, Leibherr, Hitachi, Le Tourneau and Terex. These OEMs responded positively to the EMESRT initiative, welcoming the opportunity for dialogue with an aligned industry regarding human factors issues related to equipment design, rather than needing to respond to the disparate range of demands for design modifications previously received from individual customers. This engagement process is about making global sustained changes within the OEM organisations and within the mining companies. It is a very international exercise. For example, over two weeks in September 2010, a total of 21 different miners from ten different companies travelled from Australia, South Africa, Canada, Brazil, Singapore and the United States to engage with OEM counterparts who assembled from the United States, Japan, France, Sweden, Finland and Germany. EMESRT Surface Group representatives completed a whirlwind tour of the major North American manufacturers of mining equipment. Starting in Dallas (Atlas Copco, LeTourneau), this tour passed through Gainesville (Sandvik), Newport News (Liebherr), Guelph - Ontario (Hitachi) and Milwaukee (P&H Mining/Joy Global; Bucyrus), before winding up in Peoria, Illinois (Komatsu, Caterpillar). Over nine meetings, this group engaged with 129 individuals from nine OEMs. The EMESRT group welcomed miners from four non-member companies to come along for the meetings. These companies are Syncrude Canada Ltd, the Kearl Oil Sands Project - Imperial Oil (ESSO), Suncor Energy Ltd and Teck Resources Ltd.Other mining industry sectors have now expanded the EMESRT scope from surface mining to include exploration and underground mining equipment. In 2009, EMESRT was organised into four Technical Groups, consisting of EMESRT member company representatives, to focus on engagement with OEMs of surface, underground coal and soft rock, underground hard rock, and exploration drilling equipment. An advisory group has been formed to coordinate activities between all workgroups and provide strategic direction and cohesion between all activities. The Minerals Industry Safety and Health Centre (UQ-SMI) facilitates and coordinates all EMESRT activities on behalf of member companies. Building on successes with individual Surface Mining OEMs, EMESRT now aims to help OEMs in their transition to a sustainable design process that will incorporate and address specific design philosophies at the concept phase of design, so that significant improvements can be made up front for little cost within the overall budget. EMESRT members plan to educate all stakeholders, internally, within their own companies, and externally, by addressing industry associations, regulators and other end users about new ways of evaluating equipment design based on EMESRT purchasing specifications. This presentation will outline the EMESRT approach and report on progress in 2010.

Dec 6, 2010

In mining industries, materials loading and handling costs represent a significant component of the total (capital and operation) costs. A variety of methods have been applied in surface mine equipment selection in order to select the suitable loading and haulage system with the lowest total cost. The optimal size and number of equipment calculation are very important task for mining engineering because loading and haulage equipment are major proportion of open pit mining cost. Capital and operating cost are considered in objective function with respect to interest rate, insurance and tax in non-linear form. Shovel and truck annual productivity constraint, fleet matching constraint and number of truck per shovel constraint are incorporated in this optimisation problem with continuous variables. This formulation will yield total cost minimisation per hour and good accuracy compared to previous methods.

Dec 6, 2010

Open pit mining has considerable damaging effects on the environment of the mining region. These harmful influences have to be controlled during mining operation until mine closure. Different sections of mined land, such as; pit(s), waste dump(s), tailing pond(s), roads, areas for onsite facilities and free land zones which are not mined, have to be reclaimed through treatment of environmental pollution and implementation of a permanent post mining land use (PMLU) after mine closure. Implementation of a permanent optimal post mining land use (OPMLU) is one the most decisive criterion which effects on reclamation procedure, mine closure and their costs. Therefore to define ultimate pit limit (UPL), mine closure and reclamation costs should be entered in the calculation iterations same as the other variable costs of the projects. Estimation of closure and reclamation costs of a mining project is carried out based on the attained OPMLU and the specifications of the mine site. In this paper, a model is developed to provide OPMLU for pit area through fuzzy multi-attribute decision making (FMADM) technique. The model was implemented on a hypothetical copper mine in northwest of Iran as a case study. Lumber production was selected as OPMLU for the pit area. It is finally concluded that through the developed model, OPMLU for different sections of mined land in an open pit mine project is defined. Also closure and reclamation costs are estimated based on the defined OPMLU to achieve a more accurate UPL.

Dec 6, 2010

Many problems result when coal mine shafts are built in complicated geological conditions and serious shaft lining ruptures have often occurred in the eastern part of China since 1987. Grouting is applied as one of the major measurements for shaft lining ruptures. However, as the general location of reinforcement grouting for shaft lining is deep in or near the bottom aquifer, while using cement grout as the grouting material, the grouting mostly belongs to fracturing grouting in deep alluvium. In these conditions, the mechanism and behavior of fracturing grouting has not yet been understood. From these points of view, this paper describes the mechanism of shaft lining rupture and fracturing grouting and then discusses the effect of grout injection on the stability of shaft lining by means of numerical analysis and field data obtained so far.

Dec 6, 2010

Prefeasibility planning and cost estimation of conveyor systems has historically been undertaken by comparing fi xed plant transport requirements to that of similar systems in service. This paper describes the development of a prefeasibility conveyor technical design and cost estimation application using Microsoft Excel Visual Basic for Applications (VBA) platform. The application tool known as D-Convey (Dachshund Convey) was developed with the goal enabling the end user: to develop a technical model for conceptualised conveyor systems, to perform economic analysis on the developed technical model, and to conduct a comparative and risk analysis. An Excel VBA based platform was utilised to draw upon both the analytical and graphical capabilities of a spreadsheet. Some of the features of D-Convey system include a revolutionary dynamic graphical help system, known as the 'information pane' in lieu of traditional help fi les as well as the use of familiar graphical user interface elements such as the MS Offi ce 2007 task ribbon. The D-Convey system incorporates material database allowing for mass handling prefeasibility estimation in other industries; it has been validated at a local quarry.

Dec 6, 2010

The selection of the mining fleet can have as much of an effect on the efficiency and effectiveness of an operation as the mining method. This is not to say that inefficiencies are only attributable to inappropriate equipment selections, these aspects have many factors but are not the subject of this paper.This paper will give an overview of equipment selection processes that have been utilised to date. It will also look at the increase in application of study programs/simulations from an aspect of accuracy, as well as the importance of enabling the analysis of multiple sensitivity scenario planning. An aspect that is increasingly important in project planning with commodity market movements.Another aspect that is increasing in popularity is that of automation, what effect does this have on equipment selection? What additional aspects need to be taken into consideration when assessing Automation of equipment from the beginning of a project as well as introduction into an operating mine?Once the selection process has been finalised and equipment implemented, how do we, as an industry, 'close the loop' through analysis of estimated versus actual equipment application?

Dec 6, 2010

During underground mining, rock mass changes can occur as a function of the mining sequence and excavation processes. Mining-induced rock mass damage can occur due to redistribution of static stresses and the application of dynamic stresses from blasting and seismic activity. These rock mass changes can result in a degradation of strength of the bulk rock mass and the remaining rock surrounding existing excavations. Rock mass damage near existing excavations which lead to excavation-scale instabilities such as rock fall, excavation closure, or visible rock mass fracturing can detrimentally affect the safety and profitability of mining operations.The focus of the current work was the prediction and assessment of damage to mine infrastructure occurring in relation to the blasting of a sublevel open stope. The study case involved a 60kt stope located in a highly-competent rock mass at a large Australian sublevel open stoping mine. The mine infrastructure of interest for investigation included local stope access development, critical access and haulage development crossing a regional-scale fault, an explosives storage magazine and a ventilation return air raise. The methods used to predict or assess the blast-induced damage to each infrastructure element in response to stope extraction were:- intact rock strength testing,- discontinuity mapping,- linear-elastic static stress modelling,- blast-damage mapping,- near-field blast vibration monitoring and analysis,- geophysical assessment using inferred stiffness and wave velocity methods, and- post-extraction void assessment.The results of the detailed blast damage prediction and assessment program at the mine site have been discussed by the primary author elsewhere (Fleetwood, 2010). The current work will address blast-induced damage to mine infrastructure as a result of extraneous blasting vibrations from stope production blasting. A method for predicting the amplification of excavation surface motions from reflecting body waves will be discussed as well as the results of damage mapping around the study stope. The results of the damage mapping program identified blast-induced damage that occurred to the surface of the explosives storage magazine and local stope access development. No damage was observed at the main fault crossing or return air raise where higher vibration amplitudes were measured or predicted.

Dec 6, 2010

The objective of a mine planning exercise is to plan a safe mine that maximises net present value (NPV) for the project. Two primary elements are key to design of a mine plan optimised to maximise profit: selection of an optimised production rate and selection of an optimised equipment fleet. Both depend upon accurate estimations of capital and operating costs for the equipment and for the life cycle of the mining operation. Once a trial production rate is determined, a primary equipment fleet, ie excavators, haulers, and blasthole drills, can be determined based on material characteristics and haulage distances and gradients. An auxiliary fleet, dozers, road maintainers, service trucks, etc can be determined using less rigid productivity criteria. With an equipment fleet determined, operating and support personnel can be assigned based on shift requirements and equipment operating needs; and material and supply requirements can be estimated. Knowing the areal dimensions of the major equipment items, road widths and repair shop dimensions can be determined. Personnel numbers and supply requirements determine the square metre sizes of offices, change rooms, and storage facilities. Reliable sources of capital and operating unit prices and costs for all these items are referenced in the paper. Once preliminary capital and operating cost estimates are calculated by applying unit costs to equipment, personnel, material and supply needs, potential profit can be tested using DCF techniques. An optimised mine plan can then be determined by testing the potential profitability of multiple mine production rates. Because of the economies of scale, full capital and operating cost estimates must be completed for each production rate in order to produce meaningful comparisons.

Dec 6, 2010

Japan is the largest coal importer in the world, importing from Australia, China, Indonesia, Canada, Vietnam, etc. In Indonesia, most of the produced coal is extracted from open cut mines. More open cut coal mines will be developed to fill the demand for coal in Indonesia and the world. Many surveys and projects for developing new coal mines and transferring mining technology are being conducted in tropical counties such as Indonesia and Vietnam with the aid of the Japanese Government. It has, however, been pointed out that excessive and precarious development of mines in tropical areas will damage the environments around the mines including cultivated lands, and reduce the precious rainforest. This would undoubtedly exacerbate the instability of the global climate and the food crisis in the world. This paper describes the effects of flyash on the control of acid mine drainage in order to avoid potential negative impacts on the environment caused from open cut coal mines.

Dec 6, 2010

Failure of rock materials is a process of crack propagation. Crack initiation takes place when the crack tip stress intensity K reaches a critical value called fracture toughness, K1C. The rock fracture toughness is known to be affected by the surrounding environment such as temperature, confining pressure and humidity. In order to examine the effect of humidity, a series of semi-circular bend tests were performed under various water vapour pressures in a rock material that is known to be anisotropic. Water vapour promotes stress corrosion of rock and therefore the fracture toughness was found to have a decreasing trend with increasing water vapour pressure. The rate of decreasing the fracture toughness depends on the microcrack density that promotes the migration of water vapour into the rock. Also in an anisotropic rock, the fracture toughness depends on the direction of crack in relation to the anisotropy of the rock material.

Dec 6, 2010

This paper presents a study about reopening of a quarry near to the geothermal region of Kntahya, Turkey. The production method was gallery blasting which resulted in very high ground vibrations. Therefore the quarry had been closed down by the local authorities about 12 years ago due to possible damages to the geothermal resources. In order to reopen the quarry, reserve estimation and production planning studies needs to be carried out as well as applying environmentally sensitive production method. The result of reserve estimation studies showed approximately 12.5 Mt reserve in the area. The market studies indicated that annual production of 600 000 tonnes could be sold. These results justify to reopen the quarry. In order to overcome environmental problems, bench blasting production method instead of gallery blasting has been planned. This method enables to design a drilling blasting pattern that will almost result in no ground vibrations.

Dec 6, 2010

Principles of management in ore preparation before process of enrichment of chrysotile ores are discussed. The formulas, which were tested in industrial conditions, are offered, which may be used for averaging of chrysotile-asbestos fibres by content in ore and grade.

Dec 6, 2010

The poor reconciliation between the values of estimated and actual grades can cause major economic losses to the mining industry. In a mining operation grade reconciliation is comparing the values of estimated grade calculated in exploration stage with actual grade obtained from blastholes' data. Many different factors affect the degree of reconciliation in a mining operation. In this paper we investigate the factors related to estimated grade which affects the reconciliation process in the exploration stage of the orebody. These factors are the sources of uncertainty in the rest of mine life. In this area the most important factors are inherent variability, statistical uncertainty and systematic uncertainty. A probabilistic model was presented to model each source of uncertainty. The implementation of proposed model was checked and its validity was investigated using real data in an iron open pit mine in Iran.

Dec 6, 2010

This study is to compare reinforcement of rebar and spiral bolts using laboratory pull-out test. For this purpose, the pull-out test was performed in laboratory for a curing period of 7- and 28-days. Based on the results of the laboratory pull-out test, the pull-out load of two support members rapidly increased with displacement until the breakpoint and then gently increased with displacement. The maximum pull-out load of spiral bolt was larger than that of rebar bolt. This implies that a spiral bolt is more stable than a rebar bolt for securing the stability of a ground or rock mass when a support was installed in a ground or rock mass under the same condition. In addition, the maximum external pressure of two support members increased with pull-out load and with displacement and the distribution of external pressure was commonly larger at the upper part than at the lower part of specimen. This indicates that the bond failure location by pull-out load should be mainly occurred at the surface portion of specimen. In conclusion, the reinforcing effect of a support depends on a curing period and a type of support member, and reinforcement of a spiral bolt is more effective than that of a rebar bolt.

Dec 6, 2010

Open pit mine plans define the complex strategy of displacement of ore and waste over the mine life. Various mixed integer linear programming (MILP) formulations have been used for production scheduling of open pit mines. The main problem with these models is the inability to solve real size mining problems. We present a mixed integer linear programming formulation for the open pit long-term production scheduling problem. To reduce the number of binary integer variables in the formulation, we aggregate blocks into larger units referred to as mining-cuts. We present a semi-supervised clustering algorithm which aggregates smaller blocks based on rock types and grade ranges into mining-cuts without introducing an error in the grade estimated values. The cluster-based aggregation algorithm is fully integrated into an MILP mine production scheduling prototype software. We have implemented, verified, and validated our models. The efficiency of the new platform is evaluated through iron ore mine case study.

Dec 6, 2010

This paper describes new research and development currently being undertaken by the CSIRO Mining Technology Group to advance the automation capability of continuous mining equipment in underground coal mining operations. The effort aims at increasing the overall rate of roadway development as well as providing a safer working environment for underground mine personnel. The activity is funded by the Australian Coal Association Research Program (ACARP) and forms part of a larger underground development initiative, known as the CM2010 project. The CM2010 is managed via a consortium of leading mining industry representatives through the Roadway Development Task Group (RDTG). The Task Group has identified three research areas requiring new development in order to realise the CM2010 project objectives: self-guiding (autonomous) continuous miner capability, an enhanced drilling and bolting process and improved mesh deployment. CSIRO's primary role in the CM2010 project is in the development of the autonomous continuous miner guidance capability.This paper reports on outcomes achieved at the half-way mark of a three year research and development project. It details the technical developments undertaken towards demonstration of a 'self-steering' capability to enable a continuous miner to automatically maintain a given mining heading and mining horizon under production conditions. A primary technical requirement of this automated functionality is the means to accurately determine both the location and orientation of the continuous miner in real-time. Testing and validation of the guidance system solution has been implemented using a combination of an instrumentation-grade inertial navigation unit and radar technology. Comprehensive performance evaluations have been conducted using a scale skid-steer mobility platform known as the Phoenix. Results achieved to the present stage of the project are highly promising and suggest that an automated self-steering functionality is achievable under production conditions. This new outcome represents an important move towards implementing a step change improvement for future underground roadway development.

Dec 6, 2010