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By Jürgen Kretschmann

The Islamic Republic of Iran is a very important producer of raw materials in the world. The country holds 68 types of minerals, including salt, sand and gravel, chrome, lead, zinc, copper, coal, gold, and iron-ore. With more than 37 billion tons of measured and indicated reserves and 55 billion tons of total mineral resources, Iran is ranked among the 15 major mineral-rich countries. Sangan iron-ore mines (SIOM) is one of the biggest iron ore mining complexes in Iran, located in a remote, but strategically important area near the Afghanistan border. The Iranian government has planned several mining projects in this region for a stepwise development over the next 5 years to satisfy the growing demand of the Iranian steel industry. In cooperation with private companies, these projects shall be realized as sustainable as possible. This paper introduces SIOM and describes socially responsible activities undertaken during the initial development of this mining complex. The effects of these activities will be demonstrated. Unique attributes of the Sangan area have a significant impact on the acceptance of SIOM by regional stakeholders. The government has made several social investments that benefit workers´ families and the community. They are attempts to build social capital for the mining operations and demonstrate a commitment for socially responsible mining to the communities and the local population. They aim to create a balance between the local and regional expectations and requirements and the necessity to secure the corporate profitability at a reasonable and sustainable level. Investment in socially responsible activities is not a choice but a necessity to improve the relations between mining companies and stakeholders in the communities. It is recommended that social investments should be carefully planned and implemented from the early stages of mining activities, and should proceed throughout the life cycle of the mines.

Aug 1, 2013

By S. Kapusniak

Specialist Machine Developments (SMD) is a design and manufacturing company involved in the design of Remotely Operated Vehicles (ROV?s), ploughs, trenchers and mining machines for use in submerged environments. Established in 1971, the company has made over 500 vehicles for subsea use. These range in size from small remotely operated swimming vehicles with a weight of less than a tonne to heavy duty seabed crawling machines with a weight of up to 310 tonnes (in air). Primarily, these machines have been designed for offshore vessel-based applications, but the machines are equally suited to other submerged mining applications onshore. Many onshore deposits can technically and theoretically be mined using currently available submerged mining ROV technology. Similar equipment to that in use subsea could easily be fast-tracked into use to extend the life of opencast mines facing severe hydrological problems. It could also easily be used to mine vertical ore-bodies where the stripping ratio has become uneconomical due to increasing depth. In some cases mining ROVs could even be suitable for use as the primary extraction method for a new mine. Exploration and extraction techniques used in oil and gas gradually developed and moved from land to offshore in the middle of the last century. Are we about to witness a similar shift with other minerals? This paper describes the design concepts of submerged mining equipment, targetted subsea mineral deposits, the suitability of submerged mining ROVs for onshore deposits, limits to their application and parallel research and development activities which will help to accelerate the use of such equipment in the emerging submerged mining sector.

Aug 1, 2013

By Mohamad Kharseh

There is general acceptance that climate change, which is the most important challenge facing humanity, is anthropogenic and attributed to fossil fuel consumption. Therefore, improving the performance of our existing energy systems and deploy more renewable energy resources is an urgent issue to be addressed. Geothermal refers to existing of heat energy in deep rock and sedimentary basins. This energy can be used to drive a power turbine to generate electricity. Traditionally, geothermal has been exploited in places with the plentiful hot water at relatively shallow depth. In the light of fact that ground temperature increases with the depth everywhere on the Earth, engineered geothermal systems (EGS) can be installed in any place to exploit the geothermal in generating energy. Unfortunately, the high exploration and drilling costs of boreholes is the main barrier to commerciality of EGS worldwide. In addition, there are technical problems associated with drilling big depth. In oil producing countries such problems can be addressed by utilizing whether active or abandoned oil or gas wells and, consequently, EGS can produce power at profit. The current study presents an analysis of a binary geothermal power generation system for commercial electricity generation in Qatar. For this purpose, two binary cycles are assumed the main difference between them is that the first one is air cooled while the other will be water cooled. The performance of the two cycles and the possibility of improvement has been shown. Economic analysis the power plant shows that the levelized costs of electricity is 3.6US¢/kWh and the pay-back time is less than 8 years.

Aug 1, 2013

By J. Palarski

Hard coal, mined in Silesia Region as well as in the eastern part of Poland, is a key national resource. In Polish underground coal industry, modern mining technologies have been successfully tested and used in the last 50 years. More than 98% of the coal produced underground is extracted by longwall mining method. Current underground coal mining expands into increasing depths. The use of conventional coal extraction methods ? room and pillar and longwall with caving - is becoming increasingly difficult. The coal mining is modifying existing methods and is testing innovative technologies. Backfill is an important component of modern underground mining operations. In Polish underground mines, backfill is recognized as an integral component for extraction of coal from greater depths in a densely populated environment. The modifying and innovative methods require the use of backfill or grouting of caving to provide structural support in underground excavations and to ensure that the mining operations are safe. Depending on the geological structure, mining conditions and environmental requirements there are several variations of longwall methods used in underground coal mining in Poland, in particular: longwall with caving, longwall with backfill, longwall with grouting of caving area. This paper will discuss the different components of an effective longwall production and filling process of caving area. The paper will give a overview of the current application of backfill technology, focusing on Polish coal mining operations. This paper will also briefly describe how backfill contributes to an innovative method ? underground coal gasification. The paper discusses specific requirements for fill materials and the technology of backfilling for underground coal gasification (UCG) operations and problems of implementation and correlation of backfill parameters with other processes that occur during thermal processing of coal.

Aug 1, 2013

By Kazem Oraee

Implementing stable final pit walls in open pit mines during the open pit design phase and mine exploitation has become one of the most important concerns of mining engineers in recent years. Failure of mine walls can potentially cause loss of life, roads blocks, and damage to mining machinery, temporarily or permanently halt production at the face and in the worst case scenario, close the mine. Thus, the role of creating stable mine walls is crucial to safety and general operations of mines and any effort to optimize this process has great economic value for mine operators. This paper aims to illustrate the technical aspects of use of the successful presplit blasting method in metal open pit mines. It also shows that using this approach not only increases safety in mines through wall stabilization, but also will boost economic profits by savings in stripping ratio. In this regard, appropriate practical concepts for designing the drilling and blasting patterns and the role of selecting the correct drilling rigs are elaborated in detail through conducting a case study in Chador Malu iron ore mine in Iran.

Aug 1, 2013

By Leslie McHattie

?Intelligent mine? conjures up a futuristic image of unmanned extractors and loaders working in harsh conditions in a remote lunar landscape. The promise of increasing mine fleet productivity and solving the problem labor shortages in mining regions can certainly be achieved today through remote controlled extraction and automated hauling. The technology is available and it doesn?t seem to be so much science fiction when Google?s self-driving cars hurtle down the freeway. ?Intelligent mining,? on the other hand, implies the application of information technology at every phase of the mining value chain, from exploration and geological modeling to equipment, operations and maintenance, and logistics and transportation. These are really industry-specific, enterprise-class software solutions focused on using information technology to support the business processes of mining and make them more efficient and effective. Overlaying the physical world with the digital or virtual world enables us to model and simulate our assets, giving us the ability to effectively design, build, and ultimately optimize the performance and reliability of our assets throughout the lifecycle. The digital asset, often a 3D model, is created initially during the engineering and construction phase, and is handed over to the operator before the mine goes into operation. Combined with geospatial or geographic information systems, the operator has a complete digital representation of the physical world, which forms the foundation for risk and performance management, along with compliance and regulatory reporting. Laser scanning and positioning technology can be used to create point clouds ? information models consisting of millions of data points ? which enable the visualization and representation of the ?as-operated? reality. But consider that once the mine is in operation, it throws off an endless stream of data in the form of performance and condition data from sensors and monitoring devices on fixed and mobile assets through networks, servers, and services. This ?big data? can be processed and analyzed to spot trends, help predict events, and formulate reliability strategies as early as the design stage (e.g., reliability-centered design). ?Intelligent mining? implies that massive amounts of data augment the reality of the physical mine, plant, and equipment. This embedded intelligence can be used to optimize operational efficiency, increase asset availability and utilization, improve safety and environmental integrity, and maximize return on investment. Lastly, the sweet spot for intelligent mining is seen in the convergence of consumerization and industrialization. The application of ?consumer? technologies that we use every day on our iPhones and Android devices, such as cameras, motion sensors, and positioning in an industrial context, are producing ?immersive? experiences. Overlaying the digital world on the physical world and connecting them accurately through intelligent positioning results in ?intelligent infrastructure,? which is safer and more sustainable. Bentley Systems works with many mining companies and engineering, procurement and construction companies involved in all aspects of mining infrastructure development. In fact, 10 of the top 20 mining companies ranked by market capitalization are users of Bentley software, including all of the top five. In addition, Bentley provides software solutions to the world?s leading engineering, procurement, and construction companies, as well as owner-operators, who design, build and operate the world?s infrastructure. Bentley?s solutions for mining and resource extraction industries help increase the efficiency of capital projects associated with the design, procurement, and construction of mines and processing plants, as well as the operation and maintenance of mining fleet and equipment.

Aug 1, 2013

By Hao Zhang

Site inspection is an important component of safety management system. In current practices, the inspectors evaluate the safety condition on a construction site with the assistance of a standardised checklist. However, the checklist emphasizes on evaluating the implementation of safety management system, but provides limited task-specific check items for assessing whether the individual construction tasks are conducted under safe condition and in a safe manner. To address this issue, the research presented in this paper aims to provide safety practitioners with comprehensive and taskspecific safety information to promote effective risk identification and facilitate strategic risk control during site inspection. Specifically, this research first builds a project-specific safety information database, which stores potential risks and control measures for each construction task. The research team then develops a mobile decision support tool to retrieve information from the database and support safer decision-making on site. The tool supports users in two ways: one is to provide daily risk checklists and risk control strategies to guide step-by-step inspection alongside the project schedule; the other is to let users input any safety-related keywords during the safety inspection process and the tool returns relevant safety information by applying text mining algorithms. It is ongoing research. This paper presents an overall research framework and discusses the progress in developing safety database and data retrieval concepts. The outcome of the project will help enhance safety management practices and reduce possible risky working conditions on a construction site.

Aug 1, 2013

By A. A. Goss

We investigate the relationship between corporate financial performance (CFP) and environmental and social performance (CSP) in a sample (n=165) of large, publicly traded U.S. mining and oil and gas firms. Using optimally scaled principal components analysis to generate aggregate measures of CSP strengths and concerns, we find higher concerns are related to higher volatility of unexpected earnings and discount rates. Furthermore, these earnings shocks are more likely to be negative as concerns increase. Decomposing this relationship shows that negative environmental performance dominates proactive environmental management as a driver of unexpected earnings, but proactive community efforts increase the magnitude of earnings shocks. We document some evidence of the strategic use of CSR, with those firms that have greater risk investing more proactively in CSR.

Aug 1, 2013

By Stephen G. Mlot

The evaluation of mineral projects involves the identification, mitigation and management of significant uncertainty. Benchmarking is an essential and effective way of increasing confidence and reducing uncertainty associated with input parameters and assumptions. Comprehensive and detailed benchmarking will ensure ?best practice? technologies, methods and systems have been considered and that the appropriate practices can be identified and incorporated into the project. In conjunction with the involvement of experienced industry practitioners, benchmarking is best employed throughout project evaluation to enable early identification of ?errors?, producing more accurate and predictable outcomes. Considerable time and effort is required to gather data and information, which should be benchmarked by the project evaluation team. There is a history of mining projects underperforming, on production, on costs and on return to the investors. The quality of mine plans and feasibility studies, and the quality of the input data is being questioned in many ways. Benchmarking assists sound project evaluation practices, by providing a database of actual results, to validate project inputs and outcomes, ensuring they are realistic and achievable. Benchmarking also provides unbiased, statistical support as the basis for sound investment decision making and ensures well considered decisions are made resulting in a more efficient study process. The evaluation of the quality of projects which are the subject of transactions also benefits from the use of real data obtained from a benchmarking database. Vendors are quick to highlight the benefits of their projects, and conceal the flaws, inflating the value. Buyers will want to quantify the potential of a project through the due diligence process relying on actual results from benchmarking. For the reasons broadly outlined above, benchmarking should be considered as an essential component of effective Project Evaluation.

Aug 1, 2013

By G. P. Kundargi

India is one of the fastest growing economies in the world. The role of the Iron & Steel industry is very important for the development of the country. Iron and steel are among the most important components required for the infrastructure development of the country. This is one of the fastest growing sectors. The demand drivers for the Indian Iron & Steel industry are increase in the activities of the manufacturing industry and infrastructure development. Indian Iron & Steel industry with its strong forward and backward linkages contributes significantly to overall growth and development of the economy. The industry today directly contributes 2% of India?s Gross Domestic Product and its weightage in the official Index of Industrial Production (IIP) is 6.2%. Manganese is a main ingredient for production of steel. Almost 90% manganese is being utilized by the steel industry worldwide. Globally, there is no substitute for manganese as on date. There is huge gap between demand and production of manganese ore in the country. To meet this demand gap and to support for growth of national economy, MOIL Limited (formerly Manganese Ore India Limited), a Government Enterprises, producing annually around 1.1 million tonnes (mt) of manganese ore and value added products, has geared up with various infrastructural activities to increase the present production capacity of 1.1?1.5 mt in 2016?2017 and 2.2 mt in 2020?2021. The paper deals with the technological improvements and infrastructural development activities of MOIL; this will help MOIL to become the market leader in manganese ore production globally in the coming years.

Aug 1, 2013

By J. Dubinski

This paper describes the key circumstances of the underground coal gasification (UCG) process, which is planned to be carried out in the Polish hard coal mine ?Wieczorek?. The construction and field tests of a UCG pilot plant have key issues that need to be addressed to realize the research project goal: the elaboration of a highly effective technology of fuel and electricity production. The project will conduct several monthly tests of gasification in the pilot geo-reactor, which will be constructed based on the results of laboratory tests. The realization of the process requires numerous appropriately prepared actions adjusted to natural conditions in the hard coal deposit. Based on scientific principles, it is necessary to elaborate the procedures related to the location of the UCG installation (including its legal and safety aspects), and to perform a technical risk analysis. In addition, it is necessary to determine the required mining, geological, technical, economic and organizational circumstances, while at the same time considering the real but constantly changing process conditions.

Aug 1, 2013

By M. Turek

Cost management in the conditions of increasing competition and unforeseen market turbulence constitutes one of the key areas of the enterprise?s activity. In the last two years the demand for hard coal on the domestic and global market of non-renewable resources has increased significantly. Polish hard coal mining industry, as an industry in the stage of decline, received a chance for rejuvenation. However, one of the most significant conditions of seizing this opportunity is the rationalization of mining costs and improvement of production effectiveness. Due to the significance of this issue, the main objective of the paper is to identify the possibilities of improving the production effectiveness in the hard coal mining industry. In order to meet such an objective, in the first part of the paper we measured effectiveness in the Polish hard coal mines in years 2006- 2011. The research encompassed three out of five mining enterprises operating in the country. Then based on the received results, guidelines concerning the improvement of effectiveness of production were created, taking into consideration infrastructural, technical, economic and organizational determinants. Furthermore, opportunities and threats for improving the production effectiveness, stemming from the external conditions have also been indicated.

Aug 1, 2013

By Yasser Mohamed

Daily field management of earthmoving operations requires quick and regular decisions for allocating available equipment to different jobs on a project. A general foreman?s day starts with matching several activities with a suitable set of available equipment to achieve the highest productivity and lowest unit cost. Usually, this decision-making process needs to be quick, and depends to a great extent on the foreman?s experience, which varies from one individual to another. Many analytical solutions with various degrees of sophistication and optimization exist to address such decisions. However, adopting any of these solutions is contingent on how accessible and easy-to-use the solution is. This paper discusses the development process of a webaccessible solution for evaluating earthmoving fleet composition and allocation scenarios. The solution relies on discrete event simulation and an optimization backend engine, but introduces the user with a simplified and easy-to-use interface that is accessible from any mobile device, and is customized to specific user?s needs. The developed system gathers most equipment and site-related input data from a company?s information systems to minimize user input. The user mainly needs to formulate equipment and job combinations and allocation scenarios (e.g. soil type, quantity, and hauling distance), according to equipment availability each day. Then the system will evaluate the productivity and unit cost estimates for each scenario, allowing the user to choose the most suitable one. It may also be used to automatically recommend the optimum solution given an available list of equipment. The paper presents the process followed in prototyping the proposed system in collaboration with a major Canadian earthmoving contractor, and customizing it to the user needs within the company. It also describes the overall structure of the developed system and its core simulation model.

Aug 1, 2013

This paper aims to increase our understanding about existing capacity-building approaches and their implications for obtaining a social license to operate in the mining industry. The notion of ?capacity building? is gaining increasing currency in the mining sector in developing countries due to a rapid rise in the globalisation of mining operations. Capacity-building is conceived here as a process that lasts after the mine-cycle, intended to provide local mining communities with tangible skills and knowledge to gain meaningful employment in mining or other industries relevant for the local economy. Building community capacity to understand and effectively respond to these transformations is vital for obtaining a social license to operate, as it promotes sustainable and locally relevant development. Accountability mechanisms such as global norms and international standards increasingly highlight the need to build capacity among stakeholders, particularly among local communities adjacent to mining operations. International frameworks and mining companies have embraced the notion of capacity-building as a driver to assist corporate social and operational performance. However, this narrow understanding of capacity-building through the prism of corporate social responsibility and ?best practice? is preventing the industry from meaningfully impacting communities and maintaining a social license to operate. This latter notion is being widely embedded across multiple industry sectors, as a social and economic reward from mining companies to compensate communities for natural resource extraction and gain social acceptance. Although both concepts are widely recognised in the minerals industry, insufficient attention has been paid to the implications of applying a top-down (mining-orientated) or a bottom-up (community-orientated) capacity-building approach for obtaining a social license to operate, or indeed how these two concepts are linked and applied in practice. At times, communities lack the necessary capacities in the form of education and skills to deal with mining-led livelihood transformations. This is preventing both mining companies and communities from forging sustainable livelihoods and responding to mining-led livelihood transformations, a situation that is creating discontent among communities and reducing the possibility of obtaining and renewing a social license to operate for the industry. Based on a review of current scholarly debates, accountability mechanisms in the mining industry and fieldwork findings in Colombia, this paper will contribute to an understanding of the implications of existing capacity-building approaches that support a social license to operate.

Aug 1, 2013

By S. Kursunoglu

The aim of this study was to investigate the effectiveness of Ascorbic (C6H8O6) Acid (AA), Activated Carbon (AC) and Guar Meal (C6H12O6) (GM) as a reductant for the simultaneous complete dissolution of zinc (Zn) and manganese (Mn) from a spent and mixed Zinc-Carbon (Zn-C) and alkaline battery powders in sulphuric acid (H2SO4) leaching. AA was tested previously as a reductant by other researchers while AC and GM were tested as a reductant for the first time in battery recycling. The effects of H2SO4 concentration, AA/AC/GM dosages, reaction temperature and leaching time on the Zn and Mn dissolutions were investigated according to 2k full factorial experimental design and Central Composite Design (CCD) technique; then, a simple optimization study was carried out for comparing the reductants. The optimum reductive acid leaching conditions for AA were determined at 3 hours leaching time, 70°C leaching temperature, 0.5M H2SO4 concentration, 13 g/L AA dosage, 1/20 g/mL solid/liquid (S/L) ratio and 200 rpm stirring speed. Under these conditions, the dissolution efficiencies were 99.9% for Zn and 99.3% for Mn. The best reductive acid leaching conditions for AC were determined at 3h leaching time, 80oC leaching temperature, 1M H2SO4 concentration, 3 g/L AC dosage and 400 rpm mixing speed. Under above conditions, Zn and Mn dissolutions were not complete. At 2M H2SO4 concentration, 10 g GM dosage, 700C leaching temperature, 200 rpm stirring speed, 1/20 g/mL solid/liquid (S/L) ratio and 3 hours leaching time, full dissolution of both Zn and Mn was achieved. As a result, three different reductants were evaluated in this study for complete simultaneous Zn and Mn dissolutions. This paper also compared present test results with previous spent battery recycling studies for Zn and Mn dissolutions. Full valuable metals dissolutions from spent batteries were achieved at low H2SO4 concentrations with AA and high concentrations with GM. Selective precipitations of Zn and Mn from acid solutions were carried out using NaOH and KOH. Using 3M NaOH as precipitating agent at room temperature and at pH 8; 95.4% of Zn and at pH 10; 93.7% of Mn were precipitated from the leach solution. Under the same conditions, using 3 M KOH at pH 8; 91.6% of Zn and at pH 10, 96.4% of Mn were precipitated. Based on the experimental results obtained, an appropriate flow sheet was proposed to recover both Zn and Mn.

Aug 1, 2013

By K. Iturralde

The article discusses the possibility of automation in refurbishment processes of social dwelling built from 1950 to 1970. These massively produced buildings were mostly designed prior to the law enforcement regarding thermal insulation or accessibility. Nowadays, many of these buildings are being retrofitted. The article focuses on the works in the external envelope. The task of renewing the whole social building stock is big and it requires a systematic process that facilitates a rapid upgrading, without neglecting the specific situation of each case. How could an automatic refurbishment process of these buildings be defined? The process should start with the data collection of the building and the creation of a 3D model using software such as BIM. The project, drafted in 3D, should facilitate the manufacture of building elements by robotics. In turn, it should be noted that during the assembly at the site, the pieces must be fixed quickly and efficiently. Is it possible to implement an automated process for the refurbishment of apartments built in the second half of the twentieth century? To approach the answer, a virtual refurbishment project is performed. The article focuses on the rehabilitation of the building envelope. Furthermore, it gives special attention to the double skin facade. It is well known that a second skin in this type of building can be an element that integrates several functions. Finally, needless to say that refurbishment of residential buildings is a need in our society. By extending its life cycle, robotic refurbishment provides more favorable socioeconomic and environmental capabilities than the sole construction of new buildings.

Aug 1, 2013

By A. Khan

The purpose of this paper is to demonstrate the value of identifying and optimizing throughput constraints by utilizing a Constraint Model. This will be achieved by first understanding the overall concept of Operational Excellence, Continuous Improvement and Theory of Constraints as practiced within Vale Canada Limited. Next, the value of utilizing a Constraint Model is demonstrated by primarily identifying constraints. The applications in utilizing Constraint Models will be demonstrated, including the primary benefit of identifying constraints. The remainder of the paper will focus on how to properly setup a Constraint Model using discrete simulation (regardless of simulation software). Benefits of understanding the severity of constraints and movement of the bottleneck will be recognized. The paper will conclude with the summary of real applications within Vale Canada Limited.

Aug 1, 2013

By Tim Deans

This paper will address methods to manage hydraulic hose and coupling inventory so that parts will be available to build assemblies for the vast majority of equipment with as little inventory as possible. Topics also to be covered will include some basic hose assembly tagging techniques that will help keep equipment running by tracking problem hoses and building ?band aid? kits, having problem hoses premade in stock, and inventory usage tracking (one of the biggest problems for any inventory manager is knowing which couplings have been used so they can re-order). Cradle to grave tracking of hydraulic and industrial hoses insures reliable service of vehicles and ethical disposal of old hoses and couplings. With accountability for disposal of hose products that may contain chlorine (neoprene tube material in some hydraulic hoses) and carbon black that will be scrutinized more closely in the future, a proactive approach should be adopted in order to minimize maintenance facility problems.

Aug 1, 2013

By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013

By Margaret Anne Stephenson

Today, in Australia, it is increasingly common to see agreements between Indigenous peoples and resource companies being achieved generally as Indigenous Land Use Agreements or agreements pursuant to the ?right to negotiation? process under the Native Title Act 1993 (Cth). Despite progress in this area, resource development on Indigenous lands is not without its challenges for both the resource proponents and the Indigenous parties. History demonstrates that resource development on Indigenous lands has produced struggles between the traditional owners of the land and the resource proponents. In Australia their relationship is generally defined by issues of access to land and assuring continued access to the land for the life of the project. In this context, divisions in Indigenous communities often emerge. The proposed resource project can have the effect of polarising members of an Indigenous community. It may be regarded by some traditional land owners as an advantageous opportunity for the community and by others as a hazard to country and culture. The process of agreement making has proved not only a test for the Indigenous community but also for the resource proponent. In this paper we undertake a contemporary case study of a proposed Australian resource related-development project on Indigenous lands. This project involved a multi-billion gas hub precinct proposed at James Price Point in the Kimberley region in Western Australia. The James Price Point proposal produced a litany of challenges for all parties. The traditional owners faced fundamental social and human rights issues, including a minority opposition to the project, the project's potential cultural heritage impact, the threat of compulsory acquisition of their native title interest by a State government due to an initial failure to settle an agreement, a fracture of their unsettled land claim and a minority rejection of the agreement ultimately reached. Additionally, the ?green? lobby also rejected the proposed gas hub on environmental grounds bringing the green lobby into direct conflict with both the traditional owners in favour of the project and the resource proponent. Ultimately, Woodside announced its decision not to proceed with the proposed gas precinct at James Price Point, in April 2013. In this paper we analyse the complexity of the James Price Point gas hub negotiations with the traditional owners which resulted in an Agreement that promised to deliver substantial benefits for the Indigenous communities. We question why such a favourable and beneficial agreement for the Indigenous community also produced the plethora of challenges and concerns and we consider how future negotiation processes could be better structured to avoid the difficulties that have confronted Indigenous land owners and resource proponents alike.

Aug 1, 2013