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By L J. de Lange

As a material asset for mining entities, the resources and reserves (RR) estimation processes are surprisingly underrepresented in the assurance landscape. When press reports expose them being inaccurately reported, or in merger and acquisitions processes, their importance becomes clear. The impact of erroneous RR numbers (both positive and negative) could have a material impact on an entity’s reputation and value.The technical nature and ‘black magic’ connotations of the RR estimation processes are possibly reasons why audit committees are not actively involved with it. Internal auditors avoid the RR processes for similar reasons. Also the traditional approach to obtain assurance on RR is expensive and is therefore only performed when it is absolutely required.However, stakeholders’ expectations of good governance are growing. Part of this increased focus is based on attaining a higher degree of certainty about the current and forecasted position of the entity. Stakeholders are also increasingly more interested in non-financial areas of entities, as the future success of an entity is more than a set of financial metrics.Consequently, the RR estimation processes should be visible on the agendas of audit committees. Monitoring of key controls is required as part of the governance obligations for senior management and the audit committee. So once it is on the audit committee’s agenda, the question then becomes, how will that agenda be supported by an assurance process that is cost-effective?The main objective of the paper is to describe a model of RR assurance that has been effectively applied in some mining companies. The paper discusses one particular approach that provides an audit committee with the required assurance regarding RR processes. The approach ties the assurance needs of the audit committee to the needs of the technical experts in the entity, therefore involving two important figures. It also offers assurance providers with a model to audit ‘through’ the RR processes rather than ‘around’ them. The paper then discusses top-down and bottom-up approaches that provide assurance at different levels of an entity.A governance audit that focuses on the RR processes is suggested as a top-down approach. A bottom-up approach assesses the design adequacy of internal control processes. A hybrid model is described which meets the needs of diverse stakeholders including the audit committee and the RR community.The hybrid model combines the expertise of professionals in both internal audit and RR. The right balance of these skills directed by a singular approach ensures that a credible result is achieved.This approach is not as expensive as some verification approaches used in the industry and can, as a result, be performed on a more regular basis.The last element of the paper looks at implementation of the reporting mechanism. An assurance process aimed at continuous improvement further enhances the robustness and reliability of RR reported by an entity.CITATION:de Lange, L J, 2016. Resources and reserve assurance processes – a framework for improved governance, in Proceedings International Mine Management Conference, pp 21-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Grigorescu, J H. Hodgkinson, M Khanal

The mining industry often needs to operate in remote or climatically harsh locations. The industry has recently been forced to deal with extreme conditions including floods, heatwaves and droughts. As these are becoming progressively frequent occurrences, mines typically build ‘downtime’ into production schedules and expect to incur costs to manage the various risks arising from climate extremes. Importantly, many environmental conditions are becoming more extreme and consequently, risk management based on past data can become increasingly ineffective. Market and shareholder demand for fewer interruptions are another pressure on mines to avoid prolonged or frequent downtime. Hence, adaptation to climate is becoming an important strategic move for many companies, many of whom are using future climate scenarios and alternative risk evaluations.We present here a method that uses commonly available mine site data to assist decision-making for reducing vulnerability to sudden flood. The method, ‘climate-related adaptation from terrain evaluation results’ (CRATER), identifies a mine’s flood ‘hot-spots’ and presents them as a ‘traffic lights’ warning map. The process then requires a failure analysis process such as fault-tree analysis to identify both the cause of possible failures and a range of possible failure-avoidance adaptations. In the final stage, management can assess the most suitable option for the mine, based on the availability of capital such as time, facilities, labour and money in addition to social acceptability of the options. CRATER has been tested in an open cut mine environment and is now being further developed to identify how subsidence over underground mines may impact on flooding and ponding over the mining life cycle (CRATER II). Further work is continuing to test larger and more complex mine landscapes to deliver a method to extract more knowledge from existing data.CITATION:Hodgkinson, J H, Grigorescu, M and Khanal, M, 2016. Reducing mine site extreme rainfall vulnerability using climate-related adaptation from terrain evaluation results, in Proceedings International Mine Management Conference, pp 187-200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J P. Sykes, C Gemell, A Trench

The perceived and actual impact of government mineral policy upon the government share from gold mining revenues is assessed for ten key countries in which the gold sector is of relevance in advancing economic growth. Five African and five South American jurisdictions are considered, namely Burkina Faso, Ghana, Mali, South Africa and Tanzania from Africa; and Brazil, Chile, Colombia, Guyana and Peru in South America.Both the headline corporate income tax rate and royalty level are identified as poor indicators for the total government share. In addition, significant differences between industry perception and actual government tax levels are identified by this study. The quantitative financial analysis shows that there is no clear relationship between individual taxation rates, taken in isolation, and the overall average effective tax rate (AETR) paid by the project over its life. Neither companies nor governments should use individual taxation rates, or industry perceptions, in isolation to assess the overall competitiveness or equity of a country’s minerals taxation regime – such analysis can be very misleading.In this study, the perceived impact is determined from the well-established Fraser Institute survey published each year, and in 2014 compared 122 minerals jurisdictions globally. The actual impact is determined from quantitative modelling of the financial performance of a hypothetical gold mining project in each country. The technical parameters of the project are held constant; instead the differing mineral policies in each jurisdiction are applied to determine the resultant impact upon the relative share of the economic rents delivered to both private and public sectors. In the quantitative analysis, the total government share varies from 36.3 per cent in South Africa to 66.5 per cent in Ghana.CITATION:Gemell, C, Sykes, J P and Trench, A, 2016. Is perception reality? Evaluating the fiscal attractiveness of international jurisdictions for gold mining investment, in Proceedings International Mine Management Conference, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By J Missen, P Currie, J Bohan, D Clark

AGL is one of Australia’s leading integrated energy companies and the largest ASX listed owner, operator and developer of renewable energy and thermal generation in the country. AGL owns and operates the 2210 MW Loy Yang A power station and adjacent 30 Mt/a brown coalmine in the Latrobe Valley, Victoria. It also supplies coal to the nearby 1050 MW Loy Yang B power station owned by the GDF Suez (Engie)/Mitsui partnership. The mine is currently nearly 5 km long, more than 2 km wide at the operating face and up to 200 m deep. AGL employs a large workforce at Loy Yang and a substantial amount of services are performed on-site by contractors and consultants.GHD provides mine planning, earth sciences, civil/geotechnical engineering, dam surveillance, plant engineering and environmental services to AGL Loy Yang through an alliance framework. GHD is one of the world’s leading professional services companies operating in the global markets of water; energy and resources; environment; property and buildings; and transportation. In addition to GHD’s global footprint, the company also has a significant Victorian presence, including a permanent, well-resourced regional office in Traralgon, approximately 10 km from Loy Yang, as well as a permanent site office.A joint paper on the Loy Yang mine professional services alliance model was written for the AusIMM International Mine Management Conference in 2006 by Woods and Wood. Now ten years on, this paper provides an overview of the present relationship and arrangements, including the continued transformation of the alliance model and maturing of the relationship contract.These are challenging times, with increasing cost and regulatory pressure driving change in the broader energy and resources industry, and locally including both the mining and power sectors at Loy Yang. Flexible models to achieve a balance between internal personnel and access to key external skills, whilst achieving value for money and transparency, is increasingly critical. The right drivers and performance measures are essential, particularly when confronted with potential major technical and environmental risks (considering significant ground failure and fire events that have occurred elsewhere within the Latrobe Valley over the last decade) within a sector that is reducing costs and optimising production.This case study discusses the alliance status and changes, reasons behind adjustments and what the future is likely to hold. The paper also explores the validity of the original objectives and the extent to which they have been achieved. The philosophy of the alliance is to continue closely aligning the objectives of the two companies in the best interests of the Loy Yang site and immediate surrounds/stakeholders. Quality of service, costs, timeliness, health and safety (H&S) and some operational activities (aquifer depressurisation) remain important aspects and are reflected in key indicators for which performance is measured.CITATION:Clark, D, Bohan, J, Currie, P and Missen, J, 2016. AGL energy, Loy Yang and GHD – a further case study in alliancing: ten years on, in Proceedings International Mine Management Conference, pp 321-330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M I. Roberts

Corporate and workplace culture, as many owners, directors, executives and managers know, is by far the most powerful determinant of productivity. It’s much more significant than buildings and equipment. Yet although no one today would build a building or machine without a plan, few leaders have a plan for building and sustaining a safer and more productive culture.Using practical ways, culture can be planned and shaped as desired. Success requires implementing a project plan for changing the systems that drive behaviours that in turn shape attitudes. The combination of behaviour and attitude together with leadership largely shape culture.To improve performance, leaders need to:1. improve the organisational systems that drive behaviour2. action a project plan for improving specific performance metrics 3. demonstrate leadership that is conscious, disciplined, committed and passionate for purposeful use of human energy.This paper explains all three factors in practical ways with operational and corporate examples. It details understanding and applying the power of fundamental statistical analysis tools to recalibrate, focus and drive proactive leadership that takes responsibility for process improvement, supporting people and ensuring accountability.Experience and practical understanding of human and organisational behaviour confirm that the Measurement ? Analysis ? Reporting system combined with conscious leadership is by far the most powerful driver of behaviour. This wisdom produces profound changes in leadership style and behaviour. It develops outstanding leadership to create and sustain a safe and highly productive culture reliably producing consistently high quality products. It is the key to developing accountability, employee retention and a sustained competitive advantage.CITATION:Roberts, M I, 2016. Building safe, productive cultures and leadership, in Proceedings International Mine Management Conference, pp 163-178 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By M Jones, G Corder, A C. Keith

"Sustainable development has become an issue of ever increasing importance to the mining industry. The Ernst & Young (EY) mining industry risk radar regularly shows several sustainability elements in the top ten risks, with social license the number three risk in the 2014/15 survey. This is supported by the Fraser Institute survey results of 2013 showing that 36 per cent of responding companies indicated public opposition had affected their permitting and approvals process.Addressing these issues in a strategic way across a mining business that is then translatable to actions at operational level has remained an elusive goal in the industry. In addition the environment and community issues are commonly viewed as somewhat separate from financial and production issues and as a compliance cost rather than a value add. In their Harvard Business Review paper of 2011, ‘Creating Shared Value’, Porter and Kramer outline changes in thinking required for companies to improve their business sustainably through considering the societal issues impacted by their operations and products. Along the lines of ‘doing more with less’ companies’ value chains can be redefined to reduce energy, transport, water or other resource usage leaving additional resource for societal usage and/or reducing environmental impacts. This paper explores the linking of the holistic Five Capitals-based approach with the creating shared value (CSV) concept to help businesses unleash the benefits of innovation. Previous papers have demonstrated the potential for Five Capitals approach to create strategic value through sustainable development. Building on previous work, this paper provides an overview of the current status of holistic approaches to mine management and presents the application of the CSV concept on an African mine currently undertaking capitals-based strategic planning. The paper also demonstrates the value that has been created through utilising this approach and proposes improvements for changing the way the industry tackles and delivers benefits related to sustainability issues.CITATION:Keith, A C, Corder, G and Jones, M, 2016. Strategic sustainable development – creating shared value in the mining industry, in Proceedings International Mine Management Conference, pp 249-264 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 22, 2016

By P J. Fairfield

This paper reflects on the author’s experience working in site-based technical and management roles over a 29 year period, and the past 12 years in internal and external consulting roles. It discusses the author’s experiences and observations of operations management, and the significant value of the technical specialist’s role in providing management with information on what to base tactical decisions, which may or may not be part of a defined strategy.The landscape of mine management changes with the cyclical nature of commodity prices driving operating and capital prudence, as operations change their focus from expansion and growth to staying in the game. The role of the mine manager and management team in navigating through these changing times, attitudes and stages of the project life can influence the success or otherwise of many projects.Technical knowledge is one of the key drivers in realising or destroying the value of a project or operation. As managers focus on people management, management systems and processes, recognising and understanding value in underlying technical knowledge, and getting back to the fundamentals/basics, can be overlooked. In reaction to the fluctuating commodity cycle, managers implement changes through optimisation, fast tracking or parallel streaming, expansion projects and changes in the application of technology. These responses occur against the background of changes in the appetite for risk, acceptance of project uncertainty and changes in personnel which result in a loss of knowledge and experience – often at critical times.This paper shares the author’s experiences and lessons learnt in dealing with and observing these issues. The author questions whether we really understand our projects and are valuing the most important asset, our people and, in particular, the technical specialist and their experience and knowledge.CITATION:Fairfield, P J, 2016. Staying in the game – the importance of engineering-based decisions, in Proceedings International Mine Management Conference, pp 67-74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By G I. Lumley

‘Every mine is a pilot’ is an attitude which encourages the mining paradox of optimistic mine plans and equipment under performance; propped up by an environment lacking accountability. The premise that ‘every mine is a pilot’, appears to underlie the development and operating approach to most mines. It is the hypothesis of this paper that many mining companies, development teams and their managers largely ignore what is done elsewhere. Anecdotally, most planners don’t know whether the selected rates are high or low (rates based on theoretical models tend to be high – certainly higher than what most companies can achieve). Mines then consistently operate the equipment at rates well below targets; often more than 20 per cent below. Further to this paradox, mine performance data demonstrates the average mine is currently operating their equipment at levels of output not much more than half the output of those in the top ten per cent. On the whole mines don’t know the potential of their equipment and therefore don’t put appropriate plans in place to do better. After all, when ‘every mine is a pilot’ there is little reason to look to one’s peers for an indication of potential. This paper will outline why every mine is not a pilot and how mines do value some knowledge, but not as much as they should. This paper proposes a two-pronged approach to address this issue in the area of equipment performance. This approach is to:1. engage in better forecasting of equipment rates and better subsequent performance through benchmarking against industry standards2. provide conditions for more accountability.These parameters are linked and proper implementation of them will address the losses which many shareholders and financiers have incurred when investing in companies with unrealistic mining plans.CITATION:Lumley, G I, 2016. Is every mine a pilot? In Proceedings International Mine Management Conference, pp 75-88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By A G. L Pratt

The record for autonomous haulage systems in underground mining over the past 15 years is patchy, marked by many trials and attempts, with few examples of sustained operation until relatively recently. The drivers for the introduction of this technology are variously listed as the occupational health and safety of people working in underground mines, reductions in direct operating costs and increases in productivity.This paper reviews the trends for operation of semi-autonomous and autonomous haulage achieved by underground mines and the defining features of the technology currently available. The inclusion of autonomous haulage as part of mining studies and the fundamental conditions for its successful application is discussed in the paper. The components required for an autonomous underground haulage system are outlined and the key aspects that need to support its effective implementation are examined together with their associated opportunities and risks. Special note is made of the critical role people, including executive leadership, have in ensuring the successful introduction of this technology.The paper draws on published case study material, equipment supplier information and research findings. The aim is to offer a high-level insight into what is required for the application of autonomous haulage technology and its successful implementation in underground mines.CITATION:Pratt, A G L, 2016. Autonomous haulage systems in underground mining – what is required for success? In Proceedings International Mine Management Conferenc, pp 35-52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By S Robinson, A Turner, R Dale, C Butler

"Sandfire Resources NL- (‘Sandfire’) DeGrussa definitive feasibility study (DFS) identified geometallurgy as a major factor in achieving optimum plant performance at the DeGrussa mine. A geometallurgical initiative was created to proactively investigate this issue, and a key initial achievement was the 2013 paper by Condon et al (2013) on developing a working geometallurgical model from first principles. Significant advancements in Sandfire’s geometallurgical understanding since that publication now shape how information is presented and communicated.The main geometallurgical parameters so far identified as critical factors affecting plant performance are Cu:S ratio, iron sulfide mineralogy, talc carbonate content and sphalerite content. Apart from specific mill strategies, geometallurgical issues have been managed through communication between departments and strategic run-of-mine (ROM) pad management.This paper uses the current theories of geological evolution of the volcanogenic massive sulfide (VMS) deposit at DeGrussa, to discuss the variability between the orebodies C1, DeGrussa (sea floor mounds) and C4, C5 (sub-sea floor replacement) to highlight the different issues each orebody is expected to encounter when processing.A zone of altered low-grade mineralisation surrounds the main orebodies at DeGrussa, referred to as a halo. Talc minerals are often patchy within this halo and often cause significant recovery issues during processing. This halo has been successfully modelled using MgO as a proxy. The ability to model the talc material assists with both identifying potentially problematic zones for processing and geological interpretation of the ore deposits evolution.Early in geometallurgy studies at DeGrussa it became apparent that it would be useful to identify processing performance prior to mining. This necessitated the incorporation of specific sulfide species into the mining block model. These attributes are interpolated from the logged sulfide estimates allowing a clear picture of the abundance of each mineral type within a defined area.In conjunction with the block model a geometallurgical factor (GMF) graph was developed, identifying sulfide mineralogy based upon mineral assays. These two recent additions to the model provide a clear picture of the nature of the ore sources that will be presented to the processing plant.The future of geometallurgy at DeGrussa will see these tools used to aid mine scheduling with a view to further improve processing recoveries.CITATION:Butler, C, Dale, R, Robinson, S and Turner, A, 2016. Geometallurgy – Bridging the Gap between Mine and Mill: a Case Study of the DeGrussa Geometallurgy Program, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 77–88 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By S Matos Camacho, K G. van den Boogaart, R Tolosana Delgado, U Mueller

"The precise formulation of a geometallurgical optimisation problem is by necessity a simplification of reality. It includes implicit choices such as data availability or mining block geometry. Additional data can be orebody data, production data or market data. Often these choices are predetermined by the software, the workflow or the corporate culture, and as such are not even queried. There are several aspects that might play a role in the optimisation. They include not only the spatial model on which the selection of mining blocks and the potential mining sequence are based, but also the complexity of the processing model, the way in which uncertainty is treated, the scope of responsibility and the complexity of the model. In addition the timing of the optimisation and the availability (or lack thereof) of information will influence the outcome of any optimisation.We show that different modelling choices and different model formulations for the same mine can lead to very different processing choices, substantially different net present values (NPV), opposite investment decisions and so to overall different values for the entire operation. The selection of adequate simplifications and corresponding formulations for the optimisation problem is thus an important task in itself.For this purpose we introduce a method for quantifying the impact of certain simplifications prior to the optimisation. For example, the effect of mining block choices depends mainly on the spatial structure and the structure of the processing gain function. Both can be quantified beforehand. Based on the outcome, appropriate simplifications can be selected for the geometallurgical optimisation.CITATION:van den Boogaart, K G, Tolosana Delgado, R, Mueller, U and Matos Camacho, S, 2016. How Details of the Geometallurgical Optimisation Influence Overall Value, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 303–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By S Oliver, D Willingham

"Although a resource model is central to the mineral resource value estimation process (Glacken and Snowden, 2001), creating it is a labour intensive task and in the end it is a limited representation of the actual orebody. Creating this resource model is a labour intensive task that requires inputs from geology, mining, metallurgical and commercial disciplines. It requires thousands of samples from hundreds of drill holes to be verified, grouped in geological domain, interpolated and then valued. Even after all this effort, a model is only an estimation; therefore further significant effort has gone into quantifying uncertainty in the model and subsequently risk around any value estimates derived from the model. Further risks to model quality are introduced through poorly conditioned data or incorrect assumptions.This paper proposes the application of machine learning to automate the resource model development. Machine learning is applied to the traditionally manual tasks of geological formation, domain identification and validation of the block model mineralogy. Through automation the resource estimation process can be accelerated, allowing more drill holes or a larger resource body to be processed in a given time frame, or allowing the process to be more agile to changes in input data and assumptions. A case study based on drill hole data from a Western Australian iron ore deposit (Government of Western Australia, Department of Mines and Petroleum, 2015) is used to demonstrate the application of machine learning in this process.CITATION:Oliver, S and Willingham, D, 2016. Maximise Orebody Value through the Automation of Resource Model Development Using Machine Learning, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 295–302 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By R Berry, J Lett, C L. Harraden

"In the past decade, increased processing capacity combined with precision robotics in high resolution spectrometers has resulted in a new generation of high-speed hyperspectral core logging systems. The application of these multisensor automated platforms provides a key advancement in the characterisation of metal resources. The development of this technology has allowed for comprehensive, drill core-based, mine-scale rock mass characterisation studies. Here we propose a new method for the extraction of parameters that seek to more accurately quantify ground conditions, including quantified rock mass rating (RMR) and the Rock Tunnelling Quality (Q) Index. Data inputs include rock quality designation (RQD), number of joint sets, joint roughness, joint alteration and joint spacing. Geologists and geotechnical engineers have historically collected these inputs by manually logging drill core. With automated core scanning technologies, these parameters can be estimated from the acquired image data and used to objectively calculate RMR and Q-index values for oriented core.Corescan is an automated hyperspectral core scanner that uses a 3D laser profiling system to measure the height of the surface of drill core. This technology allows for rapid core analysis to produce detailed fracture and rock condition data. Through an integrated geometallurgical approach, the proposed methodology will test the accuracy of joint measurement using the height profile Corescan data from oriented drill core. This will be combined with joint roughness and alteration mineralogy measured from the hyperspectral images to calculate the RMR and the Q-index continuously downhole. The values obtained can then be compared to the traditional, manual geotechnical log data. If the precision is sufficient, these techniques can then be applied site-wide to automate the collection and modelling of key ground condition classification indices across an entire deposit. Compared to the laborious manual geotechnical logging procedures that currently form the industry standard, utilisation of core laser profile data and high resolution red-green-blue (RGB) images provide an opportunity to collect large volumes of consistent geotechnical data, which can increase the efficiency and accuracy of deposit scale geotechnical models.CITATION:Harraden, C L, Berry, R and Lett, J, 2016. Proposed Methodology for Utilising Automated Core Logging Technology to Extract Geotechnical Index Parameters, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 119–124 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By A Parbhakar-Fox, B G. Lottermoser, N Fox

"Determining the deportment of economic and environmentally significant elements in sulfidic mine materials (eg ore, gangue and waste) requires the use of advanced microanalytical techniques, including electron microprobe analysis (EMPA) and laser ablation inductively coupled plasma mass spectrometry (LA-ICPMS). Sulfidic boulders were sampled from an acid rock drainage impacted ephemeral stream adjacent to historical copper-silver workings at Baal Gammon, northern Queensland. The abundance and deportment of a range of trace elements and precious metals were analysed in these samples. Whilst many of these elements represent a potential environmental risk if leached from sulfidic rocks into streams in the surficial environment, significantly some of these elements (eg In, Sb and Co) represent specialised metals that are currently considered to be in critical supply.Sulfidic waste rock material at Baal Gammon is dominated by chalcopyrite, arsenopyrite, pyrrhotite and pyrite. Microanalytical investigations revealed that chalcopyrite contains significant quantities of In, Sn, Ag and Zn either substituted directly into the crystal lattice or occurring as discrete sphalerite and stannite inclusions. Arsenopyrite, which may comprise more than 50 per cent of some boulders, is notably enriched in Sb, Co and Ni but also contains inclusions of sphalerite, chalcopyrite and stannite. In contrast, pyrrhotite contains no trace elements of economic significance, but instead represents a likely contributor to acid generation during oxidation in the surficial environment. Trace metals (eg In, Sb, Co, Ni, Zn) are liberated during sulfide oxidation of these boulders in the surficial environment, generating a metal-rich, low-pH leachate.Fe-oxides precipitated as rinds on the surface of these boulders under low pH conditions also contain abundant As, Bi, Sn, Cu and Zn. Abandoned or historical mines represent potential sources of metalliferous drainage that poses potential environmental risks to water and habitats. However, sulfide-rich historical waste rock, stockpiles and processed waste (eg tailings) at abandoned mines may also represent significant sources of critical (eg indium) or other significant metals (eg Sn) that if liberated economically could improve environmental conditions in and around abandoned and historical mines.CITATION:Fox, N, Parbhakar-Fox, A and Lottermoser, B G, 2016. Critical and Deleterious Metal Deportment in Sulfidic Waste Rocks, Baal Gammon, North Queensland, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 173–182 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By J L. Macdonald, G S. King

"The development of a predictive geometallurgical model is a multidisciplinary and iterative task that involves both discovery and integration aspects. In this paper, the authors discuss the concepts of geometallurgical modelling in terms of the underlying relationships that are used to connect geology, metallurgy and economic value, and how the early-stage preparation of a spatial geometallurgical model enhances project value and provides a sound basis for future studies and test work programs.Hot Chili’s (copper-gold-molybdenum) Productora Project, which is located in northern Chile, is a porphyry-copper style deposit that can be exploited using open pit mining and preparation of a saleable concentrate from fresh ore, as well as heap leaching, solvent extraction and electrowinning (SX-EW) extraction of copper from oxide ores. To enhance project value in the Productora prefeasibility study (PFS), Hot Chili developed a geometallurgical model that was used to predict the process responses of both sulfide and oxide ores. The Productora model incorporates test results from mineralogical, metallurgical and comminution testing, as well as other studies completed on a suite of samples collected from the many geological domains of the deposit.Using Bond Work Index and Abrasion Index proxies in the geometallurgical model, Hot Chili estimated the variability of sulfide ore throughput and comminution costs. Heap leach acid consumption in oxide ore was estimated from drill hole calcium concentrations. The model was then used in mine scheduling to identify high and low throughput or high and low acid ore zones so that the processing of these zones could be advanced or deferred to improve net present value (NPV). Additionally, the cost benefits of preparing an early-stage geometallurgy model were quantified through a comparison to a conventional model that was based on test work averages.CITATION:King, G S and Macdonald, J L, 2016. The Business Case for Early-stage Implementation of Geometallurgy– an Example from the Productora Cu-Mo-Au Deposit, Chile, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 125–134 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By P Gomez, R Baumgartner, G Escobar

"The Cerro Corona mine consists of a Cu-Au porphyry deposit located in the Andes of northern Peru. The deposit comprises a typical Cu-Au multiphase porphyry mineralisation that has been overprinted by an epithermal event. This has generated a complex pattern of argillic alteration facies, which was accompanied by a locally structural-controlled Au-Cu mineralisation with the presence of gold and limited Cu sulfides and sulfosalts. These features, along with the porphyry-style mineralisation, produced a multifaceted occurrence of gold.Since the beginning of operations at Cerro Corona in 2008 there has been a continuous improvement of the geological and mineralogical knowledge. All mineralogical studies have mainly focused on host rock types and, to a lesser extent, alteration minerals, but little work has been done on the mineralisation itself. As a consequence, limited mineralogical information was available for use in the process optimisation initiatives.In the last two years, a series of mineralogical characterisation studies were undertaken with two main goals. First, to gain an understanding of the mineralisation genesis and second, to obtain a detailed characterisation of copper and gold minerals to support ongoing process optimisation. The first goal was achieved by conventional optical microscopy while the second required electronic microscopy and other microanalyses due to the necessity of quantifying several minerals of interest for the processing.The results were used to refine pre-existing geometallurgical domains, explain copper and gold losses in the flotation process and to some extent, improve copper and gold recoveries. The mineralogical characterisation is an ongoing work. Mineralogy provides the basis for any optimisation exercise since it looks in detail at the material to be treated and therefore, should be part of all geometallurgical programs.CITATION:Baumgartner, R, Gomez, P and Escobar, G, 2016. Comprehensive Mineralogical Characterisation at the Cerro Corona Cu-Au Porphyry Mine – the Fundamental Key for Geometallurgical Applications, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 221–230 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By L Jackson, A Parbhakar-Fox, N Fox

"Characterisation of sulfide minerals (eg pyrite, sphalerite) in historic tailings can assist in determining whether there are economic benefits of reprocessing such materials using modern metallurgical practices. In addition, there are associated environmental advantages if the historic tailings are actively generating acid and metalliferous drainage (AMD). At the Old Tailings Dam (OTD), Savage River, Western Tasmania, 38 Mt of pyritic tailings were deposited from 1967 to 1982; consequently it has been recognised as an AMD source. Long-term management options considered for this site have included the establishment of either a water, hard-engineered or vegetation cover. However, due to geotechnical challenges posed and the lack of success demonstrated by previous pilot studies, these strategies have not been implemented. Instead, resolving the pyrite chemistry can allow for a first-pass assessment of whether reprocessing these tailings is a feasible option as part of a long-term management strategy for this legacy site.Tailings samples (n = 144) were collected across the OTD from up to 2 m depth from five facies (A–E), and four zones (1 to 4; defined by hydrological regime and grain size). These materials were subjected to acid-base accounting (ABA) and mineralogical evaluations to determine their geoenvironmental characteristics. Following this, 26 samples were selected for in-depth laser ablation inductively coupled plasma mass spectrometry (LA-ICP-MS) investigations to evaluate pyrite chemistry across different tailings facies. The results revealed enrichment of Co and Ni in these materials. Specifically, Co content was up to 3.0 wt per cent, particularly within facies C to E, and Zones 3 and 4. Cobalt is recognised as a critical metal, therefore, reprocessing should be considered as a future rehabilitation option for the OTD, pending resource definition using established codes and practices.CITATION:Parbhakar-Fox, A, Fox, N and Jackson, L, 2016. Geometallurgical Evaluations of Mine Waste – an Example from the Old Tailings Dam, Savage River, Tasmania, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 193–204 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By R Schiller, E Chait

"Quebrada Blanca is a porphyry copper deposit located in the Eocene-Oligocene belt of Chilean Andes. Operation started in 1994 and original reserves for supergene mineralisation gave a life-of-mine (LOM) of 20 years; however, further exploration extended the LOM until 2020.In order to optimise the remaining five years of supergene resource, geometallurgical variables were added to the geological model including copper recovery and acid consumption. LOM plan encompasses finishing the phase number eight and the future development of phases 11 and 13.LOM lithologies include diorites, quartz monzonites, porphyries, igneous and tourmaline breccias. Main alterations are: potassic, phyllic and argillic. Litho-alterations or geometallurgical units were formed by combining five types of rocks with three types of alteration. According to statistical information, the deposit can be represented with 12 litho-alteration units, which cover 98 per cent of the LOM volume.For copper recovery information, there were 40 mini-columns tests made in order to obtain kinetics curves and copper recovery values after comparing the difference between head and tails grades. Acid consumption was obtained using an automatic neutraliser device-based test.Historical data said that copper recovery in pads after 450 days of irrigation is around 75 per cent of recoverable copper while acid consumption is around 5.5 kg/t.According to this study, lower recoveries are related with potassic-altered diorites and argillic-altered quartz monzonites with values around 60 per cent. On the other hand, best recoveries could be found in potassic-altered quartz monzonites and argillic-altered diorites with values closer to 80 per cent.It was also revealed that the most reactive rock is the potassic-altered diorite with 12 kg/t of acid consumption. This rock covers approximately 40 per cent from phases 11 and 13.The final geomet model was calculated using a program that relates each geometallurgical unit with a specific copper recovery and acid consumption value. Results found after comparing model-obtained information with historical leached pads data were used to validate the model.CITATION:Chait, E and Schiller, R, 2016. Adding Copper Recovery and Acid Consumption Variables to the Geological Model of Quebrada Blanca, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By V Lishchuk, C Lund

"Geometallurgy aims to improve resource efficiency by creating a spatial model of an orebody in order to forecast ore processing behaviour. This enables calculation of the economic value of each ore block and the use of this information for production optimisation and hence an improved economic return. Modelling uses different approaches to link geological information with mineral processing: traditional approach uses chemical elements; proxy approach – small-scale geometallurgical tests; and mineralogical approach – minerals.A geometallurgical model is obtained during execution of a geometallurgical program encompassing the entire value chain of ore processing. Available methods for establishing a geometallurgical model are in many cases limited and not yet comprehensively validated. Some of the limitations include: sampling density, assaying methods and quality, forecast accuracy block model content, geostatistical solutions for non-additive components, blending and assessment of positive impact of geometallurgy on the project. Synthetic ore models combined with process simulations and production scheduling, based on strong case studies, present a viable way to address these shortcomings. Such synthetic ore models will have realistic elemental and mineral distribution, textural attributes and 3D variability for input into the design of an appropriate geometallurgical program.A synthetic orebody was created for an apatite-bearing iron deposit. Variability in modal mineralogy was described by geostatistical parameters combined by a set of linear and trigonometric functions. The generated synthetic deposit model was used to develop a mine production plan to generate a simulated process feed. The process feed had detailed information required for beneficiation process simulation: modal mineralogy, chemical composition of minerals, grain size and specific gravity. The synthetic system was used to measure benefits that a geometallurgical program developed for real cases could provide, compared to production where only head grade is optimised. These include a reliable sampling strategy and confidence in the feed-quality forecast for economic evaluation.CITATION:Lishchuk, V, Lund, C and Lamberg, P, 2016. Development of a Synthetic Ore Deposit Model for Geometallurgy, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 275–286 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By E Vargas, A Egana, M Alarcon, X Emery, A Barberan, A Lopez, N Morales, C Friedrich

"As the cost in time and money of data from sensors and small-scale tests has reduced, additional challenges have arisen. Although many mine data sets are not big relative to those in other disciplines, they are complex in other ways, and becoming too large to manage efficiently on personal computers. In order to take advantage of the opportunity offered by increased data, a diverse team from Universidad de Chile and CSIRO Mineral Resources has developed a virtual geometallurgical laboratory to support the computational requirements linking data acquisition with data-driven business decisions. A particular focus to date has been the development of user-guided workflow ensembles to enable comparison between plausible geometallurgical hypotheses.A case study has been undertaken using publicly available data from the Rocklea Dome iron deposit in Western Australia. A hypothetical mining schedule was produced from geochemical and hyperspectral drill core/chips data via the following steps: data preprocessing, exploratory data analysis, geochemical interpolation, block modelling, ultimate open pit design and scheduling. The key outcome of this study was the integration of workflow stages through new plug-in methods or modification of existing software. Outcomes from this study will be described in the paper in terms of geological and metallurgical data quality, analytical software support and ongoing computing infrastructure requirements.CITATION:Lopez, A, Barberan, A, Alarcon, M, Vargas, E, Ortiz, J, Morales, N, Emery, X, Egana, A, McFarlane, A and Friedrich, C, 2016. Progress towards Data-driven Mine Planning via a Virtual Geometallurgical Laboratory, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 287–294 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016