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Future metal prices play a direct role in both the economic evaluation and short to medium planning of a mine scheduling sequence. It is difficult to predict with accuracy the future price of volatile metal commodities, however, it is possible to fix some future metal price, outside of long term contracts by the selling of futures contracts through a commodities exchange. The futures contract represents a fixed amount of a specified quality of a commodity for future delivery at a predetermined price. Several different types of hedging are possible, one in particular which is best suited for mining companies. There are relative advantages and disadvantages when trading in futures contracts and particular reference is made to gold contracts on the Sydney Futures Exchange.

Jan 1, 1980

By S Moradi

The aim of this study was to investigate the possibility of leaching zinc from the tailing (-2 mm) of Angouran flotation plant using sulphuric acid. The tails were first calcined at 800¦C for one hour. The effect of factors such as stirring rate, temperature, initial acid concentration and solid/liquid ratio, on zinc extraction were studied. The results obtained show that at the best conditions, about 91 per cent of zinc were leached using a stirring rate of 800 rpm, a reaction temperature of 50¦C, a 30 minute reaction time, a 100 g/L initial sulphuric acid concentration and solid:liquid ratio 1:6 g/ml. The P85 of the feed material was about 150 ¦m and acid consumption was 600 kg/t.

Jan 1, 2002

By J C. Carlile

Many low sulphidation epizonal gold and zinc-lead vein deposits within magmatic arcs are situated on basement highs, and post-date both the main volcanic episode and porphyry copper (gold) mineralisation. These features are best explained by emplacement of a flat batholith a few kilometres beneath each mineral district, as recently demonstrated by geophysical data in the Baia Mare district of Romania. The batholith provides heat for the hydrothermal system, and results in extensional faulting both through up-doming of the overlying rocks, and in some arcs through incipient collapse of the thermally weakened crust under regional extensional stress. More water-rich magmas emplaced at greater depths could explain some deep epizonal and mesothermal gold deposits situated outside magmatic arcs.

Jan 1, 1995

By P Card

“Let’s get discipline and quality into easy to understand evaluations!” Project Managers and MetPlant Operators accept poor quality evaluations because they are generally unaware of what they should expect.The 2010 draft AusIMM ‘Guidelines for Techno-Economic Evaluations’ were collated by a subcommittee of practitioners and are regarded as best practice.They apply directly to projects and metallurgical plant evaluations, including those with a heavy technical basis. They can be applied to technical problem solving where there are no monetary computations. Project Managers and MetPlant Operators should demand that economic models and evaluations follow the six principles. They should become working tools which are easy to understand, fit for purpose, consistent, rigorous, record sources of input data, have key graphs and are rapid to audit.

Aug 8, 2011

By J Cook

In this paper we present a case study of the challenges and opportunities associated with the development of cultural heritage management strategies at the Lihir gold mine in Papua New Guinea. We discuss the contextual drivers and constraints, and outline the ways in which Lihir Gold Limited is aiming to set new industry bench marks for the region through the development of values-based best practice cultural heritage management programs. This approach is largely based upon a compliance partnership with a local stakeholder group. We argue that such partnerships are a prudent means of mitigating company risk, while constituting a far more necessary tool for local people in the reconceptualisation and negotiation of the experiences of significant social change and modernisation experienced in the context of recent resource development.

Jan 1, 2009

By Brosnan J. G

Simcoa Operations is the only silicon smelter in the region and since the plant was commissioned in late-1989, has progressed from supplying silicon metal to the secondary aluminium market to the current position of supplying in excess of 90 per cent of its production to the high quality chemical and primary aluminium markets. This position has been achieved through the unique advantage which Simcoa has developed within the industry, namely raw materials, people and Simcoa's ability to adopt and use modern technology. A quality culture was instilled into the workforce prior to commissioning which ultimately led to AS3902 qualification in 1992. Simcoa has continued its quality drive through the formation of 'Simcoa's Quality Leadership Process' which is planned to make Simcoa the best silicon producer in the world.

Jan 1, 1995

Sasol Roche Blasting Services (SRBS) and its former owners have been in the process of developing and utilising low-density explosives over the last ten years. Many blasts have been fired in varying strata types in a number of mining operations. This has led to a good understanding of the product and the best methods to exploit its characteristics when designing blasts. Unlike some other low-density products, SoftLOAD« is a homogeneous mix that is easily handled and able to be loaded at high load rates. This paper discusses the physics of SoftLOAD« low-density explosives and how through correct utilisation, blasting outcomes can be significantly improved. It also touches on the various side benefits that can provide the blast designer with a more controlled blast.

Jan 1, 2004

Improvements in mechanisation should not be considered independently of safety and of environmental hazards. The need to keep gas contents within statutory limits may make the time needed to partially drain a gassy seam the effective control on face development times. Dust levels may provide an effective control on coal extraction rates on any one face. The combination of gas and dust on high output longwall faces may make it necessary for each one to be treated as a separate mine in terms of ventilation, and the faceworkers may need special protection. Mechanisation and safety can be mutually beneficial when mechanisation combined with systematic safety assessment reduces accidents, and when a thorough study of how to reduce accidents and health risks indicates the best method to improve mechanisation.

Jan 1, 1988

Dragline performance drops considerably when chop-down and double handling of material is needed due to increasing overburden thick- ness or total pit depth. Beyond a certain pit depth the dragline needs support by a pre- stripping system in the upper portion of the overburden. In soft to medium hard ground the bucket wheel excavator can be used for pre- stripping, whereby several methods of material transport are investigated. Conveyor transport around the pit and dumping by stackers is the best solution from the technical point of view. Cross pit transport and dumping by means of a conveying bridge is the method with the lowest costs per volume moved. Cross pit transport by use of a beltwagon with overlong discharge boom is both, poor from the technical point of view and high in overall costs.

Jan 1, 1981

The key to the successful debt funding of a new mining project, whether in economically established or developing nations, is the submission of a comprehensive feasibility study. The feasibility study forms the basis from which the resource banker can construct financial models which govern the amount of available funds, the conditions which control the supply of such funds and the time period over which the loan may be repaid. The bank will wish to ensure that the feasibility study is the best representation and confirmation of reality possible because this model is the basis of the loan security package. Thus the study will be vigorously interrogated by independent experts in all its elements including the ore reserve, mineability, metallurgy, operating and capital cost profile, environmental factors and management.

Jan 1, 1995

By Bowra N

Working capital is best described as money that must be supplied from a company's treasury to buy inventories for raw materials and finished products and to provide credit to customers who have not yet paid for delivered products. Working Capital requirements for resource projects are to a large extent, dependent on specific characteristics of the projects concerned. Important variables are the nature of the project and speed with which sales can be realised. The project's location is also important as this will influence inventory levels. Working capital requirements have a time profile, the present value of which can represent a significant portion of a projects overall capital needs. A significant component of a project's working capital is not readily recoverable or able to be reassigned should the project fail or be deferred.

Jan 1, 1986

By Seedsman R. W

Good roads are essential in moving men and materials to and from the underground workplace. Coffey Partners International Pty Ltd (Coffey) has recently completed a underground coal industry funded project on underground mine road construction and maintenance. This paper discusses practical approaches to construction and maintenance of underground mine roads using transferrable civil technologies and innovative techniques. Mine pavements are generally low-cost (relative to civil roads), constructed to varying standards using locally available materials to best meet the mobility needs of the mine. Performance of pavements is thus largely dependent on the environmental conditions, quality of the available road making materials, maintenance policies and available resources. The paper will detail `what causes bad roads?' in various underground environments, available management strategies, construction and water control techniques, road maintenance and vehicle considerations.

Jan 1, 1995

By Thompson IR

This paper describes a Client Consultant Relationship and shows how an engineering team created an environ- ment which fosters the development of good, economical and sometimes unique solutions. A major factor in establish- ing this environment was the Client's instruction to the Consultant to "propose solutions which, in the Consultant's considered opinion, best satisfy the needs of the project - not necessarily solutions which reproduce methods adopted elsewhere in the past." The Consultant's experience in other projects and disciplines outside mining has contributed by providing a cross- fertilisation of ideas. The team approach also allows the Client's expertise to be applied positively throughout the design process. These factors and the Client's foresight in providing adequate time for planning, allow the Client-Consultant Team to apply sound fundamental engineering in developing effective solutions.

Jan 1, 1975

By OÆGrady P

Finite element analysis is becoming a routine component of design of longwall extractions, now superseding more traditional somewhat intuitive approaches. Finite element modelling is relatively inexpensive and provides an adequate degree of similitude to give satisfactory analysis. The physical modelling of two decades ago is now largely replaced by numerical methods of which finite element is the best known. Important data for finite element work are physical properties, including creep aspects, introducing the non-linearity of stress response.Various computer packages are available and some were used to model two specific UK examples, using both linear and non-linear approaches. It appears that non-linear approaches will yield most benefit. The use of materially non-linear analysis is merited by the greater similitude it provides between model output and real mine situations.

Jan 1, 1991

It is not often that mines have as much warning of the approach of bad ground conditions as was the case at the Western Mining Corporation, Kambalda Nickel Operations Lafranchi/Schmitz Decline. Most aspects of this operation are in fact quite unique and like the best solutions, the answer to the problem of weak and foliated ground conditions was relatively simple; requiring the use of readily available explosives although the idea of using it in this manner may not be the most obvious.The use of high shock energy POWERGEL 2131 cartridges proved to be the correct answer, in conjunction with small changes in drill pattern design. The resulting lack of overbreak bears testimony to the success of the concept and the commitment of the miners to achieving a safe working environment.

Jan 1, 1992

By E Christodoulou, L Zoumpoulakis

The kinetics of the thermal decomposition of MgCO3 was investigated using isothermal experiments performed in a thermogravimetric analyzer under a nitrogen atmosphere at 380¦, 400¦, 450¦ and 480¦C. The weight loss data as a function of time were modified to give the fraction that reacted (ß) and the rate of reaction (dß/dt) vs. time (t). Kinetic analysis of the experimental results, using three different methods, showed that diffusion predominates the MgCO3 decomposition over the investigated temperature range, with the data being best fitted by JanderÆs equation ([1−(1−ß)1/3]2=kt). The activation energy was estimated by Arrhenius plots using both the initial reaction rates and rate constants from fitting the above equation. The values estimated were 27.1 and 171.4 kJ/mol respectively.

Jan 1, 2001

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

Beneficiation of Iron Ore - Washing with Surface-Active Agent The stability of the dispersed phase in 10 wt per cent slurry of iron ore slime and fines was studied at pH 5 and different concentrations of surface-active agents. The behaviour of the dispersed phase of iron ore slime and fines is different for different surface-active agents. The improvement of iron value of slime and fines in the presence of surface-active agent is best realized at pH 8, where the Al2O3/Fe and Al2O3/SiO2 ratios in the concentrates are appreciably reduced. The polar functional group like -COO- interacts with hematite surfaces and forms outer- and inner-sphere surface complexes depending on the suspension pH and adsorbate.

Sep 13, 2010

By G Lumley

PlannersÆ optimism (or maybe commercial necessity) means that most mine plans use equipment rates that are rarely achieved (Lumley and Beckman, 2009). This lack of understanding of what equipment actually moves is causing erroneous equipment forecasts, leading to incorrect mine development plans and economic evaluations. Compounding this problem is a downward trend in actual equipment performance in some areas. Consequently, the presentation of realistic mine plans that are actually achieved in practice is not a common occurrence. However, rational, fact-based mine planning is available to those who want it. Hundreds of millions of cycles of data from open cut mining equipment has been collected from mines around the world since 1992. This unique and highly valuable databank is growing at an exponential rate and is being used by a number of our big miners to support rational and fact-based decision-making. However, neither the use nor the appreciation of the value of this data is universal. There is a challenge to everyone in the mining industry - how do you access value from it? The databank was drilled into and the results analysed for, the Australasian Mining and Metallurgical Operating Practices (AMMOP) publication (Lumley, in press). For this paper the analysis has been extended to include interpretation of trends for draglines, shovels, excavators and trucks. It investigates trends between coal and non-coal mines and across geographic areas. It is known that mining equipment performance in most sections of the industry is falling. This paper attempts to quantify the fall and provide explanations. The trends are analysed to extract the reasons behind the changes and most importantly, what can be done about it.CITATION:Lumley, G, 2012. Understanding trends in performance of open cut mining equipment, in Proceedings Project Evaluation 2012 , pp 203-224 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By A Dennis, T Hunter, R Coleman

For metallurgical plant design, it is necessary to progress through successive phases of test work, piloting and process development before involving all the other engineering disciplines and “freezing” the process design criteria and flow sheet. This process usually relies upon the experience, skills and personal preferences of various technology providers, study and engineering entities, test work and metallurgical laboratories and, most importantly, the owner’s team and its operators. Current industry trends include lower grades, more complex orebodies, geometallurgy in defining orebody variation and design envelopes, more common “hybrid” plant processes and the market demands for more reliable, timely and predictable early plant performance.This paper will discuss interaction of these trends and provide guidelines for the level of detail and technical complexity required for a number of different “typical” examples. The paper will pay particular attention to the study definition level translated into the required detail and certainty needed by the overall process “owner” and original equipment manufacturer (OEM) equipment suppliers to ensure the best real plant performance. Some recent case studies will be discussed. In many projects, at a late stage of project definition, it has become common practice to undertake a “value engineering” phase. Although it could be argued that this should be undertaken earlier, it is largely driven by an overall need to reduce capex and “optimise” the perceived “fat” built into the project during the detailed design process. This value engineering can be very counterproductive to project timing and operational performance and warrants discussion.The paper is intended to promote discussion on a topic of wide interest. The authors’ diverse backgrounds and experiences are integral to the views in this paper.CITATION:Dennis, A, Coleman, R and Hunter, T, 2017. Critical process design considerations from test work to operations, in Proceedings MetPlant 2017, pp 12–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017