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The valuation of resources companies is open to a huge amount of subjectivity. Not only are valuations subject to fast changing assumptions, such as commodity prices, exchange rates, ore grades, etc., but there is also no common agreement on the methodology to be used. To borrow from Malcolm Fraser, life wasn't meant to be easy for the resource company valuer. I will demonstrate three recent examples of valuations carried out but where the market or actual transactions done show very different results.

Jan 1, 1989

The Snap Lake Phase I project initiated a subsampling campaign on the material (kimberlite/metavolcanic/granite) mined and treated for diamonds. The campaign was aimed at determining the optimum subsampling program to subsample the feed to the bulk sample plant (BSP) for the duration of a sampling campaign. This paper describes the application of GyÆs formula for determining the subsample size and other good sampling practices to determine this subsampling campaign. Three main issues are discussed: the use of a hammer sampler to sample off a moving conveyor and the practical experiment to determine the optimum subsampling program; bias introduced by laboratory equipment including two sizes rotary splitters; and variability of the feed material to the BSP over time.

Jan 1, 2005

By R S. Suglo, G-K Er

Mineral processing is an essential component of a mine production chain and it accounts for significant proportion of the production cost. Over the past decade, significant research progress has been made in processing plant efficiency using theoretical, experimental and simulation modelling techniques. However, these studies are limited to process plant system as stand-alone units with no interactions with the mining units. In order to maximise the total mining system efficiency and more accurately simulate the system, the processing plant must be modelled as part of an integrated mining system. This becomes increasingly important in continuous surface mining systems, with limited ore processing capacity. In addition, plant efficiency is roughly estimated with known parameters or with simplistic statistical data, without regards to the stochastic processes governing these parameters, such as processing plant feed introduction. In this paper, a comprehensive model of the ore processing plant system is given and the object-oriented design (OOD) of the system is briefly introduced. The joint operation of ore processing plant system and haulage system is analysed. Numerical modelling is used to analyse the ore processing plant system under different conditions. Analysis of the results show that the optimum plant capacity is 0.7 tons/sec (2520 tons/hour). The results also show that the plant system resources cannot be fully utilised because the production rate is always less than the plant capacity. When plant capacity reaches an optimum value 0.7 tons/sec, the production rate is about 0.64 tons/sec. The underlying stochastic processes associated with plant and mine capacities cause this variability. In order to reduce this variability, there is the need to tightly set tolerances for the function variables.

Jan 1, 2003

The Nelson province was chosen as the prime area for rhenium sampling, based on its mineral associations. Sample preparation involved benefication by grinding and flotation. A modification of published procedures for rhenium analysis was developed and the results compared with those obtained for molybdenum on the same samples using atomic absorption spectroscopy. The results of the analysis for both metals is discussed and the relationships between rhenium and the molybdenum mineralisation of this region is commented on. A metallogenic province is defined for molybdenum and rhenium and the tectonic setting for this is discussed. Some consideration has been given to rhenium possibilities in Fiordland and the Coromandel Range.

Jan 1, 1980

By D Morris

This presentation discusses a water filtration technology termed Fabric Media that is somewhat novel to the Australian market place and reports several recent mining industry installations. Like many novel household cleaning products, the Fabric Media technology applies the science of active washable micro fibres as the means of capturing contaminant solid particles. The simple Fabric Media water filtration product offers several attractive attributes when compared to the more traditional media bed filtration processes such as sand filters, and barrier filters such as micro membranes. A micro fibre based filtration media enables both superior adsorption for the contaminant and wash ability. Stronger adsorption capture enables a much higher flux and greater solids loading density for the filtration task, meaning that lower cost and smaller footprint equipment is available. For Fabric Media water filters, a textile weave is selected that minimises the flow backpressure for a given particle size separation. Thus for an equivalent filtration performance this provides a much lower operating energy requirement, generally between 50 and 80 per cent less than for a sand filter. A Fabric Media is not abrasive to itself or to the filter tank. The filtration performance remains constant and predictable. The equipment life is much longer and the asset value of the new filtration equipment should maintain throughout the project life. Fibres are extremely mechanically robust and chemically inert. Fabric Media survives repetitive exposure to a rapid mechanical washing event providing high wash efficiency with minimum equipment off-line time for the backwash. Dislodging captured contaminants by a high-speed mechanical agitation enables a minimum off-line time during backwash events. The vigorous backwash destroys adhering flocculant and eliminates the formation of mud balls, which can permanently foul sand filters. The mechanical agitation wash of the Fabric Media water filter ensures complete removal of grease and biofilm, which can adhere and block a membrane surface. In comparison to sand filters and micro filtration membranes, the Fabric Media product is applicable to a significantly wider range of solids concentrations without permanent damage. The technology is very forgiving to excursion in plant control and is therefore considered a very operator-friendly concept.

Jan 1, 2006

Mine Dewatering for reoccupation of a flooded mine requires rehabilitation and recommissioning of shaft and sane level functions to provide safe efficient access, services and logistics, as well as securing connections with all exposed workings. The objective is the earliest secure reoccupation of the target depth horizon for minimum water pumping, consistent with an appropriate investment and optimum schedule of operating inputs to the dewatering, redevelopment, services and consolidation processes. Strategy must focus on recommissioning of relevant functions in the shaft and at stage pumping horizons, advance of logistics close to pumping and rehabilitation, management of the secured exposed workings. The progress must be systematic, sustained and integrated, and must be secured against risk and uncertainty. There must be a strategic capability to respond effectively, and manage interruptions to processes, conditions requiring higher or different resources, and contingencies which affect schedule, budget or risk profile for the continuing programme. Planning must aim to reduce or contain risk or uncertainty elements and contingencies, limit interruption frequency and severity, identify and provide the capability for efficient responses. It is appropriate to model and simulate the reoccupation analogous to a mine initial development production programme. Only minor changes to relationships and relativities of models for Capital works, Operations (Production and Development) and Services/Logistics are needed but the model for management of workings is more relevant than that for depleted workings in an operating mine because of the water and other transfers. An important difference is the unsteady state of operations which requires probabilistic modelling of availability and utilization of equipment and processes.

Jan 1, 1988

North Stradbroke Island is a large sand mass offshore from south east Queensland. Dredging for mineral sands commenced there in 1956 and the rehabilitation discussed in this paper was commenced in 1967. The frontal dunes have a long history of instability, with little vegetation prior to mining. Re-establishment of the naturally stable contours is essential, and their rehab- ilitation is described. Vegetated high dunes present different problems requiring attention to regeneration of the native species. Methods developed over the past eight years are proving successful.,

Jan 1, 1976

By Weller KR

Computer programs are described which help the metallurgist to process sample data from a plant survey; to carry out simple mass balance calculations; to present the results of circuit and equipment performance in convenient form; and to simulate the circuit response to changing operating conditions. The uses and limitations of these programs are explained by following through a case study of the sulphide flotation circuit at Cleveland Tin Ltd. The circuit was sampled, the data analysed, and some process inefficiencies established. Simulation calculations were then made to provide information on which to base decisions regarding possible circuit changes aimed at improving performance.

Jan 1, 1983

By S C. Dominy

A high nugget effect and the presence of coarse gold characterises many vein-gold deposits. The effective sampling of these deposits is often difficult because of the relatively low concentrations involved and erratic nature of the gold. Geological complexity often compounds this effect. Underground development, in-fill drilling and bulk sampling/trial mining are often required to delineate Ore Reserves. Winzing is an historical technique that was used to gather geological and sampling data during underground exploration. It permits access to the mineralised structure below the current datum to help determine viability. Winzing has always been considered an arduous and dangerous task. Modern technology has led to the development of the Mobile Supersucker, essentially a giant vacuum cleaner. This system permits safe and efficient winzing activities, and allows the collection of bulk samples for grade estimation. Bulk samples from horizontal development have long been collected to help define mineable grade. However, when defining blocks below current development, there has been over-reliance on ineffective æsmall sampleÆ drill data. The Mobile Supersucker permits safe and cost-effective development of winzes and off-winze sublevels.

Jan 1, 2003

By H Waterer, L Zheng, T Kalinowski

The Hunter Valley Coal Chain (HVCC) consists of mining companies, rail operators, rail track owners and terminal operators, together forming the worldÆs largest coal exporting facility. In 2008, the throughput of HVCC was about 92 million tonnes, or more than ten per cent of the worldÆs total trade in coal for that year. The coal export operation generates around $15 billion in annual export income for Australia. As demand has increased significantly in recent years, and is expected to increase further in the future, efficient supply chain management is crucial. The Hunter Valley Coal Chain Coordinator Limited (HVCCC) was founded to enable integrated planning and coordination of the interests of all parties, thus improving the efficiency of the system as a whole. One of the many planning challenges faced by the HVCCC is that of annual maintenance planning. Different supply chain elements, such as trains, railway track, terminal equipment and load points, must undergo regular preventive and corrective maintenance, leading to significant reductions in system capacity (up to 15 per cent). However good alignment of the maintenance tasks can reduce their impact, and the HVCCC undertakes an annual process to ensure the impact of maintenance on the supply chain capacity is as small as possible. This is achieved in an iterative negotiation process between HVCCC and individual service providers. In the past, maintenance schedule optimisation was largely manual, which for the more than 1000 tasks involved is quite labour-intensive.In this paper the authors describe an approach developed at the University of Newcastle in partnership with the HVCCC to automate this schedule optimisation process. We will discuss our experience in applying exact (mixed integer programming) and heuristic techniques from mathematics and computer science to address the problem. This work is anticipated to lead to new decision-support tools for the HVCCCÆs capacity planning team.

Sep 26, 2011

By D Gericke, R Cooke

This paper presents an assessment of the status in design and operation of deep level backfill distribution systems by referring to case studies and practical experience. The improvements in design and operation of the systems can largely be attributed to an improved understanding of slurry flow behaviour and a corresponding integrated design approach that includes slurry flow modelling, system design and application of the latest technology. The conclusions summarise the lessons learnt from such case studies and stresses the importance of design reviews and audits of existing systems as a means to ensure that the mistakes of the past are not repeated in the future.

Jan 1, 1998

Against a background of deeper pits, the introduction of prestripping fleets and the need for closer control of operating costs (especially the waste removal component), Australian coal operations utilising draglines have in recent years become increasingly focused on:1. assessment of more efficient excavation methods; and2. application of explosive products and initiation systems which offer more flexibility than ever before.Additionally, developments in blast performance assessment techniques and equipment, and computer modelling and excavation monitoring systems have provided an improved opportunity to design a blast to achieve a desired profile suited to the excavation equipment and Sequence.

Jan 1, 1992

By L Lagoeiro

The samples studied in this paper were derived from the iron oxide facies of iron formations (IFs) of the Quadrilßtero Ferrffero, south-eastern Brazil. The rich-iron oxide varieties of the IFs can be regarded as Fe-O systems because they consist predominantly of aggregates of haematite and magnetite crystals. The study was based on carefully selected samples in which magnetite crystals occur as isolated large crystals set in a matrix of haematite grains. Optical microscopy and an electron microscope equipped with an electron backscattered diffraction (EBSD) system were used to investigate the microstructural and crystallographic relationships involved in the phase transformation between magnetite and haematite. The magnetite crystals in the IF samples are partially transformed to haematite and this process is also known as martitisation. This transformation occurs along the crystallographic planes {111} of the magnetite producing a characteristic triangular pattern of interlocking lamellae of transformed haematite crystals that are oriented parallel to octahedral plane {111}. This new generation of haematite is referred to martite because of the martitisation process. EBSD analyses show that the magnetite and the new haematite crystals, martite, share crystallographic planes of highest atomic density, eg {111} and (0001), respectively, possibly due to the ccp and hcp atomic arrangement of the two crystals. Stereographic projections of these two planes therefore coincide when the maxima of their poles are plotted. However, the crystallographic orientation of the haematite crystals in the matrix shows maxima of (0001) poles that do not coincide with those of {111} planes of magnetite. Consequently, it is concluded that the direct transformation to haematite crystals retains the crystallographic orientation memory of the former magnetite crystals, possibly due to the similar manner whereby their atoms are packed together in the crystal structures. On the other hand, no such relationships are observed between magnetite and haematite crystal in matrix. This suggests that haematite grains in the matrix may have been formed by other processes rather than those involved in the iron oxide transformation observed within the magnetite grains.

Jan 1, 2008

It has long been recognised that applications of the Net Present Value (NPV) investment decision making methodology can have serious deficiencies in situations where investment can be delayed and, once made, various options allow increases or decreases in the level of output. NPV valuation can undervalue the project if it does not incorporate future flexibilities or ""options"". It is important to realise that a proper valuation of a project (ie, valuation of its future cash flows) must incorporate an analysis of optimal future decisions involved in managing the project. Current valuation cannot be divorced from a consideration of future decision making. There is now a considerable amount of literature, mainly academic, identifying and exploring ways of remedying these deficiencies in the application of NPV. While the necessity of period by period analysis is sometimes acknowledged, little if any practical illustrative model building has been published to date, aside from algorithms using continuous time stochastic processes which deny access to the uninitiated.

Jan 1, 1994

Porgera is located in the Central Highlands of Papua New Guinea. Porgera Joint Venture treats a high grade epithennal gold deposit. Most of the gold occurs as submicroscopic particles in a sulphide matrix although there is some quite coarse free gold. Anticipated gold production is 900 000 oz per year for the first six years of operation.Stage I of the treatment plant consisted of a concentrator and leach/CIP Circuit. It was commissioned in August 1990. Design throughput was 1500 tpd with an anticipated gold recovery of 60 per cent. Throughput achieved was actually 1850 tpd with an average gold recovery of 69 per cent. CIP tails were accumulated in a pond awaiting retreatment by pressure oxidation.

Jan 1, 1992

By Reifenstein A

ACIRL's petrographers apply microscopic techniques to coal exploration, production, preparation and processing problems and research investigations as well as provide a commercial service for quality control of export coal shipments. This paper describes a number of case studies of applications of petrography to coal industry problems and coal research, including

Jan 1, 1989

By M Reisi, H Waterer, M Savelsbergh, F Engineer

The Hunter Valley Coal Chain Coordinator (HVCCC) Limited is the primary planning organisation responsible for the export of coal through the Port of Newcastle, Australia. HVCCC stakeholders include producers (mining companies), rail track owners, above rail operators, and terminal operators. The HVCCC is tasked with coordinating the activities of all the corresponding parts of the coal export supply chain so as to maximise the system efficiency. The HVCCC also has a forward looking planning role: with demand for coal expected to double in the next decade, strategic capacity planning is a core activity for the HVCCC. Optimisation and simulation models are key aids in such activity. They are used to suggest and evaluate infrastructure expansions and operating policy changes. These models require input data in the form of shipping stems, which are arrival streams of ships at the port, together with their cargo types and composition, and date and time of arrival.Although everyone is familiar with the expression ægarbage in equals garbage outÆ, relatively little research is dedicated to the issues surrounding input data generation. In this research we seek to redress this, and have developed a method for generating high quality shipping data. Shipping stems used as input should be realistic, reflecting key characteristics of historical patterns. They should accurately represent future demand scenarios. Yet they should also have controllable parameters that can be used to test what-if scenarios, such as are required by the HVCCC to answer questions about future infrastructure or operational plans.Here we review our process for achieving this, and give a case study analysing the effects of different shipping stems on the performance of the coal chain, as measured by a capacity assessment tool. The latter is an optimisation model that takes shipping stem and infrastructure data as input, and calculates key supply chain performance metrics. The potential benefits of alternative demand management strategies are analysed by measuring the performance of the coal chain given different shipping stems obtained via the stem generatorÆs controllable parameters.

Sep 26, 2011

By M.E. Crump

Gallium occurs at above background levels in most samples collected from 11 of the major geothermal areas in the Taupo Volcanic Zone. Concentrations of Ga in the 48 samples ranged from 8 to 144 mg kg-' and varies widely from place to place within each geothermal area. Gallium is contained within the alumino-silicate structure of clay in the mud, having substituted mainly for Al. Suggested deposition mechanisms for Ga also involve co-precipitation with Sb, As, and SiO. colloids. Digestion trials, carried out to determine extraction conditions for possible commercial exploitation, showed that heating the mud to 500 -600¦C for 1 hour followed by acid/alkali treatment gave complete recoveries.

Jan 1, 1995

Mine geologists have access to an economic mineral deposit, production parameters and secure exploitation title. They are well placed to understand ore formation and should contribute to the effective exploration of company mine property. Application of their special skills has been curbed by pre-occupation with production duties and by company re-engineering, including staff reductions. Contributions to exploration have been diminished and personal development inhibited. Modified management is required. Participation in mineral system studies and in exploration research comprise part of the basis for the re-emergence of mine geologists on the exploration scene. Changes in investment strategies in the minerals industry may create new employment opportunities. With regard to estimation of resources and reserves, the competence of practitioners who are incapable of disclosing their methods in transparent terms is under question. Ethical standards are also under public scrutiny because of some notable malpractice. Independent auditing may hecome more intrusive. While understandable in a market context, it reflects poorly on the profession. More substantial effort in public communications can improve the credihility ofthe industry and equip practising mine ceolouists for snider responsihility.

Jan 1, 1997

By P W. Cleary, M D. Sinnott

Cross-belt cutters are commonly used for sampling coal. They are generally cheaper than falling-stream cutters, particularly when a cutter must be retrofitted. The major mechanisms thought most likely to lead to sample bias are being investigated by discrete element modelling (DEM) in a project funded through the Australian Coal Association Research Program. This paper describes a benchmark run and the current direction of research.

Jan 1, 2008