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This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By Fairhurst RM

High pressure abrasive water jets have been shown capable of cutting a wide range of materials including steel, stone, rock and concrete. Acceptable performance can be achieved using relatively low pressures and expendable abrasives. The cutting head can be made small and abrasive feed systems have been developed that allow reliable pumping of slurries over long distances to supply such cutting heads. These features make abrasive water jets ideally suited to automated control in remote areas.Another major advantage of abrasive entraining water jet cutting heads is that they may be operated safely in potentially explosive environments due to their cold cutting ability. Therefore there are many possible applications for such equipment in mining.This paper gives an introduction to the abrasive water jet process and includes results of trials carried out at BHRA on a range of hard materials. Work is also described which investigated the operational safety of abrasive water jets in explosive environ-ments. In a special environmental chamber, cuts were made on steel and sandstone with atmospheres of methane/air and hydrogen/air, without caypsing ignition.

Jan 1, 1985

By Gray N. B, Floyd J. M

To gain further understanding of the operating efficiency of the BHP Slab and Plate Products Division (SPPD) RH vacuum degasser, physical and mathematical model studies of the process have been undertaken. The purpose was to investigate how the various process parameters affect the liquid circulation rate, to visualise the flow patterns, and to identify and eliminate the cause of localised wear in the downleg. In the physical model mixing times were measured using an acid tracer technique. The results were applied to predicting trends in times required to obtain homogenous melt composition under varying conditions. A 2-dimensional mathematical model describing the liquid metal flow has been developed using the PHOENICS fluid-flow package. The physical model results were simulated and incorporated into the mathematical treatment and an improved design for vessel geometry is proposed. The effect of rounding the downleg entrance or installing a baffle between the legs is discussed.

Jan 1, 1987

By Meyer T

Sunburst PCF (Penetrating Cone Fracture) technology has recently undergone extensive underground field trials at Leinster Nickel Operations, Western Australia. Trials with the Sunburst machine started in September 1994 and continued through to December 1994 during which approximately 130 metres of tunnel were developed. The Sunburst technology was used to excavate sub-levels through ultramafic nickel ore for future sub-level caving operations at the Perseverance nickel mine. The Sunburst machine demonstrated reasonable instantaneous advance rates, however, there are still a number of future developments/design changes which need to be addressed prior to the PCF technology being trialed again in a production environment. This paper benchmarks conventional drill and blast at Leinster against the Sunburst Excavator machine performance within similar tunnel dimensions and rock conditions. In addition to productivity and cost information; environmental considerations, support and labour requirements are also discussed. Problems with the current machine design are highlighted and possible future design changes are suggested. The Sunburst machine could be a suitable technology for advancing development through weak to moderate rock conditions and may also reduce overall support costs. With the potential for automation and the ability to reduce rock damage into the development tunnel walls, it is proposed that the Sunburst machine warrants further consideration.

Jan 1, 1995

By C Pypno, P Nowakowski, T Opasiak, C

Belt conveyors are machines for continuous transport with most applications in mining industry in Poland. This is a result of simple construction and cheap operating costs. But conveying materials by belt conveyors are often in the powder state (eg small coal, gypsum, etc) and during the transport there is a possibility of polluting the environment around conveyor route. A good solution for this problem is the pipe conveyor, where a belt is closed on the route in circular shape and flat on unloading point. Another problem which is indicated in the paper is dusting on the belt conveyor boosters. In Poland a new solution of booster has been designed, whereby dustiness of transportation powder materials is reduced by up to about 90 per cent.

Jan 1, 2003

By Seedsman RW, Duncan Fama ME

Mine design procedures will be revolu- tionised by technological developments in computers, software, database construction and management, and numerical modelling programs. Developments in geotechnical databases will be required which utilize geological and geomechanical tests to supply appropriate input for numerical models. Techniques utilizing sedimentological and structural modelling are described. The capacity of current numerical models in mine design is outlined and a program for developing a fully integrated mine design package proposed.

Jan 1, 1987

By King D

Recent field experiments in the United Kingdom (Buchanan, 1979) have shown that the in-seam technique is capable of detecting a 1m fault in a 3m seam, at a range of 280m and with a resolution of ¦40m. Comparable tests in Australian collieries are proceeding. Although the practicality of an implementation of the technique on a routine basis remains to be demonstrated, the potential of the technique for the prediction of outbursts clearly warrants detailed examination. This potential will,depend, inter alia, on the level and scale of variations in elastic (and anelastic) properties of bodies of coal undergoing stresses associated with mining. Available data, mainly from studies of the seismic properties of gas saturated reservoir rocks, confirm the intuitive view that stress increases give rise to increases in seismic wave velocity and decreases in wave attenuation, markedly at low stresses (as pore spaces close with little resistance) but less so as stress increases. Such increases are of the same order as aniso- tropic effects, but should provide impedance contrast sufficient for detection by in-seam seismic methods. At higher stresses, cracks form within the rock mass. Results from research on earthquake prediction provide some clues to the behaviour of sedimentary rocks sub- jected to large stresses. In particular, the

Jan 1, 1980

By Rogis J

The basic parameters causing outbursts are rock pressure, gas characteristics and the physico-mechanical properties of the coal. The three sets of factors are to some degree interdependent. At Collinsville, the gas characteristics coupled with the physico-mechanical properties of the coal appear to be the major factors contributing to outbursts. The relative importance of rock pressure is uncertain. The following geological parameters appear to be necessary before outbursts can occur. 1. A coal rank greater than 1.2% vitrinite reflectance. 2. Thrust faults with throws greater than 3.Om or strike- slip faults with coal gouge wider than 0.3m. 3. Seam gas emission values greater than 1.1 cm3 /g. Igneous intrusions are the likely source of the carbon dioxide seam gas. Outbursts have occurred at depths ranging from 215m to 265m. They occur at these relatively shallow depths due to: 1. the high rank of coal at the present topographic surface and the high coalification gradient; 2. the relatively high degree of tectonic deformation of the strata; 3. the seam gas characteristics; and 4. the extent of igneous intrusions.

Jan 1, 1980

By Stanton RL

Stratiform lead-zinc mineralization in the Soldiers Cap Group and Kuridala Formation of the Mount Isa Inlier is closely associated with iron-rich sedimentary units or "iron formation", and has many similarities to the Broken Hill deposit in New South Wales. Both the Soldiers Cap Group and the Kuridala Formation have been intensively explored for deposits of this type since the early nineteen- seventies. A mineralized belt of at least eight significant prospects has been identified, of which the Pegmont deposit is the largest and best known example. In most cases the mineralized horizons contain banded galena and sphalerite within a gangue of predominantly quartz-garnet- pyroxene-amphibole rock, sometimes containing a variety of other metamorphic silicates, and apatite. Chemically, the mineralized horizons are distinguished by higher than usual levels of one or more of total Fe, MnO, CaO and P205. Interpretation of patterns of mineral- ization within the belt is based on the Pegmont deposit, where a model of base metal sulphide deposition within restricted basins of iron-rich chemical sediment has been developed (Stanton and Vaughan, 1979). Broadly, the model envisages the deposition of higher grade lead-rich mineralization in the basin centre position, lower grade zinc- rich mineralization in a basin intermediate position, and much weaker copper-rich mineralization in a basin edge position. These three positions reflect a laterally continuous arrangement of silicate microfacies within the original iron-rich sediment.

Jan 1, 1984

By A Logan, B Cuthbert

Brown and Chitombo (2007) indicated that during the last two decades, the international mining industry has been using mainly mass mining methods to extract safely and economically some of the important commodities such as copper, diamonds, gold, iron and nickel. Mass mining may be implemented either on the surface through large open pits or underground using mining methods such as sublevel, block and panel caving. Developments in the last ten years have demonstrated that caving methods can be applied successfully in strong orebodies at greater depths and in increasingly challenging geotechnical environments for which more traditional mining methods would be unsuitable, unsafe and/or uneconomic. These underground mass mining challenges require æfront endÆ investigation and analysis, robust engineering design and disciplined implementation and operation. Newcrest Mining Limited has focused its efforts on the development of gold/copper projects of substantial scale and margin. To help achieve this, the company is applying and further developing mass mining methods. These include large-scale open pits (OP) and underground mining methods such as sublevel (SLC), block (BC) and panel caving (PC). Block and panel caving now offer economies of scale opportunities for Newcrest to achieve high production rates at lower production costs; thus enabling the exploitation of mineral endowments at higher margins. This paper discusses the practical aspects of caving technologies that Newcrest continues to develop through its expertise at Telfer and Ridgeway SLC operations, Ridgeway Deeps BC and Cadia East PC projects.

Jan 1, 2008

Resource rent tax is a form of taxation or royalty, which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax (APT). The implications of the current form of Additional Profits Tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine, if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of Additional Profits Tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation. Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional Profits Tax is both time and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory. A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with Additional Profits Tax. The review includes examples based on the structure of Additional Profits Tax which is levied in Papua New Guinea.

Jan 1, 1997

By Donchak PJ, Lang SC, Hammond RL, Bultitude RJ

The Hodgkinson and Broken River Provinces form the northern part of the Tasman Orogen. They are separated by a broad belt of Late Palaeozoic igneous rocks, but were probably originally continuous. They are bounded to the west by a system of major faults (Fig. 1) which separate them from the Georgetown Province. Although largely Precambrian, the Georgetown Province includes probable Siluro- Devonian granitoids, and in the south adjacent to the Broken River Province, metamorphosed Early Palaeozoic(?) volcanics and sediments of the Greenvale Subprovince. South of the Broken River Province, the Lolworth-Ravenswood Province includes probable Precambrian rocks, Cambro-Ordovician volcanics and sediments, and voluminous Ordovician to Early Devonian granitoids. The first systematic studies of the provinces were the 1:250 000 scale mapping programs by the Bureau of Mineral Resources and Geological Survey of Queensland (White, 1965; de Keyser and Lucas, 1968). These and subsequent regional studies were reviewed by Arnold and Fawckner (1980). Remapping by the Geological Survey of Queensland since 1982, and a concurrent regional study of the deformation by Hammond (1986) have provided much new data. We acknowledge the contribution of other members of the GSQ field parties - L. Cranfield, J. Domagala, B.G. Fordham, P. Green, R. Halfpenny, R. Hegarty, L. Hutton, S. Law, D. Macansh, T. McLennan and M. Scott.

Jan 1, 1987

By LaBrooy S. R

Crushing for the gold industry involves fine crushing and a degree of primary milling, and this presents new problems and challenges, partiuclarly on many of the new ore-bodies now being opened up. All of this calls for a better understanding of some of the basics of fine crushing and milling. Accordingly, in this paper the "typical" contemporary Australian gold mining operation is firstly delineated, in terms of representative ore types and typical crushing and milling tasks. Then some of the technical and economic basics related to fine crushing are re-examined, including: energy relationships in crushing and milling; concepts of reduction ratio; recirculating load controversies; and questions of realistic economics in crushing gold ores. The economics of the typical gold mining operation are shown to be rather marginal; not the lavish "bonanza" many may imagine. Likewise, crushing cost expectations are frequently quite Unrealistic.

Jan 1, 1987

The original leases making up today's North Kalgurli Mines were developed by independent companies on an ad hoc basis. The major disadvantage which now arises is the varying levels of mining horizons. From Kalgurli Shaft in the south, through main Shaft and to Croesus Shaft in the north, there are three separate sets of levels. work has commenced to link the three areas with either common levels or new development which will facilitate common access and haulage via Main Shaft.Generally, the workings at North Kalgurli were established at the turn of the century. The introduction of techniques and equipment to bring the mine into the 20th Century has been difficult and slow. The general size of openings, a widespread workforce and complex ore distribution often make innovation and change more than a challenge.

Jan 1, 1985

By Baohm C, Barker T

There have been significant changes in the Australian mineral sands industry in recent years due to changing supply and demand conditions, new product opportunities and opportunities for rationalisation of operations. Earnings within the industry have typically been volatile and this has been reflected in the share prices of listed mineral sands companies. Apart from the effects of variations in the state of the economy on the industry, share prices have also reflected the extent to which a company's earnings volatility is due to capital structure, the relative proportion of fixed costs to total costs and the nature of th'- sales mechanism. At the time of writing, the high prevailing share prices for industry participants and the current outlook for the industry would suggest that the time is opportune for raising equity capital. The immediate outlook for the industry and its various product segments appears favourable but beyond this the usual uncertainties remain. The new tax environment will cause most companies in the industry to have to rethink their dividend and capital structure policies. Most shareholders will now be concerned to maximize dividend receipts and minimise exposure to capital gains tax. Companies in the industry that have relied fairly strongly on earnings retention to help finance growth in the past will- need to look to increased equity raisings in the Future.

Jan 1, 1986

In process industries, time-dependent random fluctuations of raw material characteristics and mass flow rates in bulk material or pulp flows cannot be always prevented for different reasons, eg because of the geological situation (no uniform formation of the deposit) or/and because of technological reasons (segregation in bunkers or on stockpiles). Since a long time, there has been practical experiences that such fluctuations can have negative consequences, eg: ò fluctuations of the final products characteristics, ò higher expenditure for process control, and ò worsening of technological characteristics (recovery, sharpness of separation etc). In the literature, there can be found a lot of details as to, eg the improvement of the sharpness of separation in a jig in dependence on the raw material blending (Kubitza, 1981; Gathen, 1983) or the decreasing flotation recovery with increasing raw material characteristics fluctuations in iron and potash ore processing plants (Bubnova, 1978). Up to now, however, these consequences of random fluctuations, eg on the separation efficiency were not predictable theoretically. It could be shown by means of the general model for mechanical macroprocesses (Graichen, 1989), that the reduction of input fluctuations passing a blending facility can be calculated in this way. In this example, the steady state of the process is the wanted one, but, in general, the model is able to describe also non-steady states of the process regarded. On the other hand, the general model of mechanical macroprocesses has been used successfully for modelling separation processes, eg cross-flow and air classification (Molerus, 1969; Neesse, 1991; Senden, 1979; Tichonov, 1973). That is why it was tried to model the influence of input fluctuations on the separation efficiency, that means, the impact of non-steady states - as a consequence of random fluctuations - on a separation process. The models discussed in the literature are related nearly exclusive to the steady state of the process. The reasons for that lie in the (relative) simplicity of the models and the fact that the steady state is aimed at by means of blending processes under practical conditions - because of the advantages mentioned above. These models cited have proved to be superior to other models, since the basic general model for mechanical macropocesses makes possible the consideration of turbulence acting in the process unit and influencing the separation process essentially. This is valid also for modelling the turbulent cross flow classification, applied to mechanical classifiers and hydrocyclones, where the correspondence between the separation characteristics (cut size, separation sharpness) calculated and determined experimentally is much better than for other models.

Jan 1, 1993

Looking back 25 years, the role of the drill and blast engineer in an Australian mine seemed relatively simple, with the primary focal points being scheduling of the drill rigs, oversize control, and budget control with respect to consumption of both explosives and drill consumables. The choice of explosive selection was relatively simple, though many mines were becoming involved in trials of slurry explosives, emulsion blends, and low density ANFO blends. Guidelines to assist the engineer towards specific fragmentation targets were scarce, environmental constraints were light, and computers were rarely found on the desks of any mining engineers. Wall control blasting was in its infancy, with the bulk of attention being given to appropriate slope design and little real attention given to factors such as explosive distribution, and optimum delay timing and sequencing. Quantitative measurement of blasting performance was rare. The science of blasting, for fragmentation control, wall control, and environmental impact control was about to be born, and was heralded in those years by intense efforts by the explosive manufacturers and a proliferation of research centres throughout the world. Since the early 1980s, the role of the Australian drill and blast engineer has gone through a major metamorphosis, and currently requires a greater depth of scientific understanding than any other specialisation within mining engineering.

Jan 1, 2004

By Slechta JJ

The performance of a hydrocyclone treating fine coal has been examined over a wide range of feed and operating conditions.The results were expressed in terms of partition curves from which the water split to the oversize flowstream,the corrected separation size and reduced partition curves were determined-.The following conclusions were obtained. (a) The water split to the oversize flowstream was found to be dependent upon the vortex finder and spigot diameters of the cyclone and the flowrate and solids content of the feed slurry. (b) The corrected separation size was dependent on the solids content of the feed,and the vortex finder and spigot diameters.The hydraulic pressure (or flowrate) of the feed slurry did not have a significant effect.This phenomenon could be explained in terms of crowding of the particles at the Spigot.

Jan 1, 1984

By P Benjamin, H Bohannan, C Farr

Geoffrey Blainey's historical account of the mining activity on the west coast of Tasmania, æThe Peaks of LyellÆ documents the changes over 130 years of activity in the region. Commissioned by the Mount Lyell Mining and Railway Company, emphasis is placed upon the development of the Mount Lyell Mine in Queenstown. Chapter 19 æWidening HorizonsÆ details the review the Mount Lyell Company undertook in 1904/05 to ensure the future of the operation, following the pessimistic outlook regarding diminishing reserves and poor grade ore. The analogies documented between the Mount Lyell Company at that time, and Gold Mines of Australia 90 years on are remarkable, with both companies demonstrating a commitment to the Mount Lyell area through active exploration, the proactive search for alternative technology and the recognition of the valuable human resource. As Blainey writes (Blainey, 1993), æwith its expanding chemical works, its huge Tasmanian mines, its railways and smelter, its coke works and its mine crusade, Mount Lyell was probably one of the nation's five great industrial companies in 1906 or 1907. This brief phase of industrial and mining expansion had its seed in the threat of extinction . . .Æ After a number of reprieves, the Mount Lyell mine did stop production in 1994, but that only provided an impetus for a review and rebirth.

Jan 1, 1998

By M F. Navarrete

During 2003, different plastic stemming plugs (Cats«, Stemtite«, and Taponex«) were tested in EscondidaÆs Mina Sur, to determine the effect on gas retention time when used in conjunction with drill cuttings in production shots with a blasthole diameter of 10 5/8ö. Longer retention times were expected to provide greater fragmentation and muckpile looseness. In order to determine which plug showed the greatest enhancement of stemming retention, 17 trials were carried out û in the first seven tests, only the Cats were used, in the following five tests, a combination of Cats, Taponex and Stemtite were used, and in the last three tests, only the Taponex plug was used. In the last two blasts, drill cuttings were used without stemming plugs as a benchmarking exercise. Blasts were filmed with a high-speed camera, which could record the detonation times of holes using rolls of shock tube tied to stakes at the hole collars, to act as flash indicators. The camera allowed measurement of the time between charge detonation and the commencement of stemming ejection. In order to obtain the statistical parameters of each one of the stemming plugs used in the 17 trials carried out, the Minitab software was used and a data base was created for it, corresponding to each stemming configuration with the retention time obtained from the filming. Once it was determined which stemming plug provided the greatest enhancement of stemming retention, the impact on the fragmentation was analysed using the WipFrag image analysis software to estimate the muckpile size distribution.

Jan 1, 2004