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By Fradd WP

South Australia pioneered metal mining in Australia and was the main source of copper for several decades. Gold discoveries and mining also contributed significantly to the development of the Colony. Across the State can be seen the holes, the mullock heaps and, in some instances, the remnants of machinery of the past era. In this, the centenary year of the discovery of the Teetulpa goldfield, considered by some to he the most significant discovery of gold in the State, it is appropriate that we should present a paper on the history of gold mining in South Australia. South Australia has not been a major producer of gold with recorded production a little in excess of 15 million grams (15 t). This represents about 0.25 per cent of the Australian total and ranks last of the States of the Commonwealth. The outstand- ing feature of gold production in South Australia has been the succession of short periods of rela- tively high production immediately following a discovery, with payable dirt being quickly exhausted, a fact clearly illustrated by the graph of South Australian gold production (Figure 1).

Jan 1, 1987

By C Hedemann, N Silveste, H Davis, C J. Moran

For nearly two decades water scientists have been debating the need to use appropriate models for the questions being asked and the data available. This paper puts forward a rationale for a hierarchical framework for water balance modelling as it applies to mine sites. The hierarchy is based on the complexity of models and their data requirements. Scientific models are the most complex and require the most data; next is engineering models, then systems models and the simplest representations are given by conceptual models. A position is put forward that systems models have a range of uses that the others do not provide. A systems model, called SiteMiser, is described and its calibration illustrated. The model is applied to seven coal mines from the Northern Bowen Basin in Central Queensland. Currently, there is little relationship between total water use and coal production. This relationship is not any stronger when fresh (raw) water is compared to reused water. Leading practice water use levels are simulated for all sites. The simulation results demonstrate that there is considerable opportunity to reduce water consumption and, in particular, to import less fresh (raw) water to the sites.

Jan 1, 2006

Times are changing for the mining industry. Civil society is demanding that miners pay more attention to the ways they impact on, and engage with, communities around their mines. Miners, in turn, are being forced to adapt and learn new social skills for which they were not originally trained. They are doing so in the middle of a broad resources boom, which is adding short-term operating challenges at the same time as miners need to be developing thoughtful solutions to longer term community issues. This paper examines a number of the issues that now loom on the horizon of mining companies. These include: human resources challenges and the crisis in minerals education; continuing community and social expectations of the resources industry and the impacts they will have, for example, on product stewardship, greenhouse gas emissions and the use of increasingly precious water resources; and current impediments to mineral exploration spending.It is concluded that the greatest challenge for the minerals industry is to develop a stronger cadre of local leaders and for the larger global miners to empower their local management to take on stronger public leadership responsibilities. There is a need for executive leadership to remember both the longer term and shorter term cyclical nature of the mining industry in developing solutions to community problems. Above all there is a compelling case for mining industry leaders to be more actively engaged with the wider community in the resolution of these issues.

Jan 1, 2005

By M Foster

The new environmental legislation of 1986 was left incomplete and to date remains so. The 'missing' process by which environmental consideration should be applied was never embodied in law and has predisposition to a wide interpretation. The Resource Statutes which govern land use and development place demands on the environmental process without that definition. The Resource Statutes are themselves under review by Government. There is a new Government Department of Conservation. It is still in its early days and facing a challenge to compose its role as a steward over large tracts of land holding significant marketable resources, animal, vegetable, mineral, and abstract. It has also taken over numerous consent and advocacy roles in legislation beyond its own empowering Act. Enter the mining company, anxious if not able to get an easy passage for consents to prospect and mine, then at least to have a clear path to tread to get there, within a fixed time period. Whichever options appear available to process environmental approvals, public participation is that being favoured most by the regulatory bodies. Where a public notification of consent applications is mandatory, public participation should lead to the fastest track available.

Jan 1, 1988

By C Dowding, C Aimone-Martin, P Abeel

This paper presents measurement and analysis of the dynamic response of a five-storey building to very high frequency excitation (>100 Hz) from blasting vibrations originating from a contiguous excavation of rock. Velocity response measurements in the rock and on the structure were employed to calculate the time-correlated dynamic displacement response of the building to blasting. Time-correlated structure response measurements are needed to advance the understanding of the response of urban structures to high-frequency excitation. Current regulations and understanding are based upon measurements of the response of one- to two-storey residential structures by 10 to 40 Hz excitation. The extension of these observations to taller structures when excited by high-frequency excitation needs to be investigated further.Measurements show that the amplification patterns at the ground level and top of the structure match or are lower than that observed by the US Bureau of Mines (Siskind et al, 1980) for the shorter residential structures. They decrease with increasing peak particle velocity. From the measurements, the global transverse shear strains found by differentiating ground floor and top displacements were calculated to be 12 µstrains. Time-correlated bottom and top of structure displacements show that building response may be more reflective of wave propagation up the structure than whole-structure inter-storey drift.In addition, a 3D model was used to compare computed displacements and strains to measured results. Modelled responses varied considerably, both in magnitude and location of the maximum strain. No conclusion can be made regarding the best 3D model to employ to simulate building response. More data such as motions measured at many points in the structure are needed. Maximum inter-storey transverse shear strains calculated with the model were found through the acceleration excitation and were less than 12 µstrains for 37 mm/s rock motion excitation. The inter-storey transverse shear strains calculated with rock displacement input were less than that found with the acceleration excitation.CITATION:Dowding, C, Aimone-Martin, C and Abeel, P, 2015. Measured and modelled response of a multistory, urban structure to high-frequency blasting excitation, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 211–220 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By I M. Platten, S C. Dominy

The Clogau St DavidÆs gold mine has a recorded production of around 81 000 oz Au and it is the largest mine in the Dolgellau gold-belt and BritainÆs most prolific historical producer. The original mine was first worked for copper, however; in 1854, gold was found in waste material from the St DavidÆs section. In recent times the mine has operated intermittently between 1983 - 2007. The principal black shale-hosted gold-bearing reef (Main Reef) can be traced for about 3 km, striking approximately NE-SW and dipping steeply between 60¦ - 90¦ SE. The reef system pinches and swells, changes strike and splits into a number of smaller branches. Reef width is variable, ranging from over 6 m to a few cm and in places reducing to small irregular blobs. The reef is internally complex and composed of swarms of narrow (1 - 300 mm) subparallel veins separated by country rock sheets. The gold-bearing veins within the reef package are discontinuous; though generally possess bonanza grades running 10s - 100s oz/t Au. It has historically been shown that some gold-rich vein segments can grade up to 300 oz/t Au. The predictability of the gold-rich segments is poor, but has been shown to be related to presence of the Clogau (black shale) Formation, and/or the mechanical interactions of the reef with greenstone sills, reef branching and splitting and/or cross-fractures to form ore shoots. The mine is currently being re-evaluated as a potential small-scale selective operation.CITATION:Dominy, S C and Platten, I M, 2012. Geology, mineralisation and potential of the Clogau St DavidÆs mine, Dolgellau gold-belt, Gwynedd, Wales, in Proceedings Narrow Vein Mining 2012 , pp 101-120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By G M. Jones, J Rademan

Debswana, owned by the Government of the Republic of Botswana (GRB) and De Beers in a 50:50 joint venture partnership, operates the Jwaneng diamond mine in Botswana - the most valuable diamond mine in the world. The mine provides between 60 - 70 per cent of DebswanaÆs earnings, and about 30 - 40 per cent of the GRBÆs income. In 2008, the company embarked on the Cut 8 Project - an open pit waste cut-back to expose more diamond bearing ore to sustain mine life by another six to seven years. This undertaking was much larger than previous cut-backs; it increased the waste stripping ratio threefold, increasing significantly the waste handling fleet of trucks, shovels and infrastructure, and impacted a large part of the materials handling plant which required replacement with new facilities. The project coincided with the beginning of the Global Financial Crisis (GFC) and a slowdown in the economy. Its $4 billion total life cost was billed as æthe largest private investment project in BotswanaÆ which produced heightened expectations amongst stakeholders that it would redress some of the issues brought about by the GFC and leave behind a legacy of jobs, increased opportunities for citizen owned business and improved social infrastructure.Most of the big project challenges were non-technical and ranged from dealing with various stakeholders?at?all levels, a 25 per cent currency depreciation of the Botswana Pula against the South African Rand, obtaining work permits for non-citizens in a job starved environment, managing construction to world class safety standards, managing the low productivity of construction workers and producing a viable legacy program that satisfied the GRB and stakeholders. Whilst most of these risks were identified in front end studies, the magnitudes were in many instances underestimated. Managing this uncertainty on Cut 8 can provide valuable lessons to other projects in a similar environment, or at least provide the information to indicate that these factors should be adequately provided for in the financial evaluation of a project in the form of budget, schedule, contingency or risk mitigation.CITATION:Jones, G M and J Rademan, 2012. Reliability of expert judgements and uncertainty assessments, in Proceedings Project Evaluation 2012 , pp 109-116 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By D Yates, C C(te, M Rodgerson

This paper describes how specific technical and regulatory issues related to water management have been dealt with at Anglo AmericanÆs Moranbah North mine. It compiles the collection of practices that have been implemented since 2010 in response to climatic and regulatory drivers. Operations must continually evolve as they face emerging challenges. For Moranbah North mine, one key challenge is the integration of its mine water system to that of its new neighbouring mine Grosvenor. The commitment to ongoing improvement has placed the mine in a good position to face this particular challenge.Water-related risks were identified then mitigated by technical practices, which have focused on improving underground water management, increasing storage capacity and installing a state-of-the-art control system for the management of water on-site and for releases of mine-affected water to the environment. These practices are supported by an extensive monitoring and audit system that provides confidence in the reporting of activities and outcomes. The strategy has helped the operation with its continual attempts to minimise reliance on high-quality third-party water and improving its interaction with the surrounding environment and community.CITATION:Rodgerson, M, Yates, D and C(te, C, 2013. Leading practice water management at Moranbah North Underground Mine, in Proceedings Water in Mining 2013 , pp 301-310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

Most people are familiar with Euclidean dimensions: zero for a point; one for a line; two for a plane; and three for a volume. Howeverbobjects are not actually Euclidean, but lie somewhere between Euclidean æend-membersÆ with a non-integer fractal (or æfractionalÆ) dimension. The fractal dimension D is a measure of the relative importance of large versus small. Consider the trace of a coastline on a map. It has a fractal dimension (1 =D =2) somewhere between a line (dimension = 1) and a plane (dimension = 2). The more tortuous the coastline, the higher the fractal dimension, and the closer it becomes towards a plane. The concepts of fractals and spatial geometry can be applied to a wide range of geologicaVmining problems as well as than those dealing with space. One commonly quoted fractal relation is the log-log relationship of ore-grade and tonnage. Until recently, we have never been able to define or measure spatial-geometry, but new developments in mathematics have provided a means by which to quantity and apply it to our problems.

Jan 1, 1992

The development and distribution of gold placers in Otago û Southland is related primarily to the evolution and architecture of three distinctly different drainage networks that developed during and since Gondwana breakup: +        Late-Gondwana û Pre-marine; +        Middle Tertiary Post-marine; and +        Modern. Late Gondwana û Pre-marine drainage was dominantly recti-linear and controlled by normal faults and sedimentary basins formed before or during Gondwana breakup. Placers formed dominantly in 2nd order transverse drainages with primary sources in their catchments. This drainage network was progressively destroyed by inundation and burial by marine strata during Late Cretaceous û Middle Tertiary marine transgression that ultimately covered most of New Zealand. Middle Tertiary Post-marine drainage evolved on and incised the newly emergent low-relief landscape during regional marine regression driven by development of the present plate boundary through South Island. Most of Central Otago was drained into Southland and to the southern coast via a large braided river system with an extensive network of tributaries in its Central Otago reach. East Otago was drained by several smaller systems. Placers formed dominantly in proximal and medial reaches of 1st and 2nd order drainages with primary or pre-existing placers in their catchments. This drainage network was destroyed by inundation and burial of the Central Otago reach of the major system by lacustrine strata following tectonic damning of its middle reach by range uplift and development of a lake complex that covered >5000km2 of Central Otago. The Modern drainage network evolved from the Middle Tertiary network through complex response, firstly to uplift of NW-trending and NE-trending ranges throughout the region since the Late Miocene, and secondly to the effects of major Pleistocene glacial advances in West Otago. Placers formed in alluvial fans at range margins, proximal and medial pre-glacial fluvial systems and glacial outwash sequences. Evolution of each of these drainage networks has been accompanied by widespread sedimentary recycling of alluvial gold from older to younger placers, augmented locally by input of first-cycle gold derived from erosion of primary sources in the repeatedly exhumed basement rocks.

Jan 1, 2006

By J B. Collier, R M. Fraser, O Dahl, I M. Platten

Grade control is a process of maximising value and reducing risk, through the delivery of quality tonnes to the mill via the accurate definition of ore and waste. It essentially comprises data collection, integration and interpretation; local resource estimation; stope design; supervision of mining and stockpile management. The foundation of all grade control programs should be that of geological understanding led by high-quality mapping and sampling to drive appropriate estimation strategies and mining. Gold veins show various complex features relating to erratic grade distribution (nugget effect), variable geometry and internal architecture. These include variations in dip, strike and width, late-stage faulting/shearing effects and geometallurgy. Such variations generally require close geological understanding to ensure optimum grade, minimal dilution and maximum mining recovery. A well designed grade control program will prove to management and stakeholders that by applying geological knowledge, the mining process can be more efficient and cost effective. This paper reviews the issues of grade control in underground gold mines and focuses on integrated mapping and sampling through three case studies.

Jan 1, 2009

The problem of stability of the development working at the great depths of coal winning is of great seriousness. Numerous researches of the problem were carried out in the USSR, the results of which determined that raising of resistance of existing support will not lead to a considerable rise of working output. It is necessary to try to find ways at the expense of heightening the support ability of rock massif. For these purposes it is necessary to direct it correctly and in proper time. While carrying the development working the most intensive deformations of rock occur at a depth of 30m from the entry face. The zone of destruction of rock around the work is realised here for 60 to 70 percent. These facts show that in influence zone of entry face a kind of embryo of the working steadiness is forming, which greatly determines its following conditions. Therefore, it is necessary to begin direction of mining pressure around the work directly in a face.Complex research of the mechanism was carried out starting with the effect of moving face upon the surrounding rock massif. It was ascertained, that the zone influenced by the face is a section of 5 equivalent diameters of the work by the length within which the rock of the sides, roof and floor, experience the cyclical influence of stresses at the time of cyclical shift of the face. The elastoplastec deformation is occurring with it at the moments of rock removal and the deformation of creeping takes place at such intervals.

Jan 1, 1991

By Mahyera A, Sakashita B, Ahmed U, Abou-Sayed AS

Gas in U.S. coals is primarily composed of 90 to 99 percent methane and up to 10 per- cent carbon dioxide. In composition and heat- ing value, this coal-bed gas is similar to natural gas and can be introduced directly into commercial pipelines after standard condition- ing. The high permeability cleat system in the virgin coal can be exploited in order to drain the coal gas well in advance of mining. Two premining drainage methods have been extensive- ly evaluated in the U.S.; they are 1) horizon- tal boreholes collared from within the mine, and 2) vertical drilling from the surface with fracturing. Limited-size fracture treatments are advocated in order to prevent potential roof damage and the need for added support. An engineering approach to predicting gas flow for different drainage techniques near mining locations is presented. Results can be used in design, i.e. pipeline, compressor. Coal gas drainage from a horizontal borehole and a treated (contained fracture) vertical well for a 6 foot seam have been evaluated. Based on these results, it was concluded that selection of gas drainage techniques will depend primar

Jan 1, 1982

By C G. Sweeney

The underground mining industry is seeing unprecedented shortages in skilled labour. Migration to Australia being at an all-time low is a leading concern, with pandemic-induced border closures and lockdowns only exacerbating the skills shortage, not causing it. The skills shortage is forecast to peak in 2023 and remain high beyond 2025. With this skills shortage in mind, mining companies throughout Australia are trying to deal with stricter protocols around Health and Safety (H&S) legislation, as well as more stringent controls on quality assurance, particularly as underground mines are reaching greater depths and extending into ‘unchartered territory’. The cumulation of this is proving to be a major hurdle in ‘effective’ operational geotechnical management. The drive for automation in mining is bringing another level of complexity. However, ‘once automation is up and running, it presents the opportunity to access talent pools that may not normally be available. There is also a change in skillset that will be required to drive automation. ‘The top two emerging roles that will be critical for the future of the mining industry are artificial intelligence and machine learning (AI/ML) specialists, and process-automation specialists’ (Writer, 2021). If anything positive has come from the pandemic, it has shown that remote working can be effective and that the drive for automation and critical evaluation of skills required on-site should be given greater priority. UQ acknowledges that the industry is changing, and that digital technology is required to be offered in mining related disciplines. Industry and academia need to do more to promote geotechnical engineering in mining and balance the curriculum to suit the future of mining and make it more enticing. The average cost of a geotechnical failure is about $5 million in coalmines and can be into the hundreds of millions of dollars if production is affected (Cartledge Mining and Geotechnics, 2020). The cost of a good geotechnical design far outweighs the potential losses if a failure were to occur. This alludes to the growing importance of experienced geotechnical consultancies playing a pivotal role in managing mine site geotechnical hazards, while the industry is developing the next generation of geotechnical engineers.

Nov 29, 2022

By W Polkowski, M Tangstad, M Wallin, J Jiao

Fe-26Si-9B (wt per cent) alloy has been identified as a potential high-temperature phase change material (PCM) due to its attractive properties, such as its high latent heat of fusion and low volumetric change during solid/liquid transition. For the successful utilisation of this alloy into thermal energy storage (TES) systems, the development of a cost-effective production method is essential. Presently, the Fe-26Si-9B alloy is produced by mixing FeSi alloys with either pure boron element or FeB alloys. However, the use of pure boron is financially prohibitive, and the carbothermic reduction results in high greenhouse gas emissions and high energy consumption in the production of FeB alloys. In this regard, our study proposes a silicothermic reduction method to produce Fe-26Si-9B PCM by using FeSi alloys and B2O3-based oxides. Accordingly, the influence of various parameters on the production process was investigated, including operating temperature, holding time, B2O3 content in the added oxides, and initial Slag/Metal (S/M) ratio. Based on the experimental results, the optimal parameters for producing FeSiB alloys with over 9 wt per cent boron were determined. Consequently, it was documented that the FeSi alloys and the added oxides enriched with 50– 65 wt per cent B2O3 should be subjected to temperatures ranging from 1550–1650°C, maintain an initial S/M ratio exceeding 1, and ensure a holding duration beyond 1 hr. Moreover, the energy consumption of this process was estimated to be ~1.86 MWh/t metal and the mass loss was lower than 7 per cent. Therefore, silicothermic reduction offers a sustainable approach for producing FeSiB alloys with a boron content above 9 wt per cent.

Jun 19, 2024

By W Baguley

Attritioning has been a method of improving mineral extraction for over 60 years, however it is only recently that an understanding of the mechanism employed and the improvement in efficiency that have been achieved.The paper will discuss these improvements and how to overcome the problems that have been raised. At present there is a dearth of information on the correct design and operation of these machines.The paper will address these issues as well as fluid on the Zeta potential, micro shear, retention residence time and pilot plant operation.A study on the hydrodynamics of attritioner operation has been identified and will be discussed.Surface chemistry, clean lines of attrition material and the treatment of fines significant advances in the understanding of attritioning highlighted.CITATION:Baguley, W, 2013. Attrition scrubbers, in Proceedings MetPlant 2013 , pp 229-246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By J J. L du Plessis, A Spaeth

The objective of this paper is to demonstrate the efficiency of machine-mounted active explosion suppression systems (AESS). Their proven effectiveness against methane explosions is highlighted, as well as their additional potential when used as an early warning system should frictional sparks occur during the coal-cutting operation at the coalface.Methane and coal dust explosions remain one of the primary and unpredictable risks in underground coal mining. Although technologies such as proactive ventilation, methane monitoring and wet-head cutting systems are widely used as preventative measures, there are no fail-safe controls able to reduce the risk to zero. None of these controls is designed to be able to counter the negligence associated with human error or to deal with rapidly changing face conditions which could lead to flammable gas ignitions. Machine-mounted AESS have been installed on various continuous miners as an additional control to further reduce the risk of ignitions and to act as a safety shield when all the other precautions taken have failed. This was the primary motive for the development of AESS. As an additional feature, the ExploSpot® AESS is being enhanced to identify frictional ignition sources at the coalface that reach a predefined monitoring level. This functionality may serve as a further effective preventative measure.As part of ensuring coalmine operational safety, the detection of frictional ignitions can play a huge role in creating heightened awareness of potentially dangerous situations. By being able to process the frictional spark burning pattern, the AESS could support the decision-making process regarding whether to continue the coal-cutting operation, whether there is a need for maintenance or whether the operation should be stopped completely due to the increased risk of a flammable gas ignition and an ensuing explosion.CITATION:Spaeth, A and du Plessis, J J L, 2015. Enhanced risk reduction using early warning technologies embedded in active explosion suppression systems, in Proceedings The Australian Mine Ventilation Conference, pp 315–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By E Philippa, J Vitanza, C Hawtin, B Miller

B Miller , E Philippa , C Hawtin and J Vitanza

Mar 22, 2022

Incidental to the progress of a geological survey of the Kalgoorlie goldfield during 1927 - 1928 a number of specimens of telluride minerals were obtained, chiefly with the help of Mr F G Brinsden, general manager of the South Kalgoorlie mine, and Mr Ernest Williams, general manager of the Boulder Perseverance mine. This collection was supplemented by a number of small specimens, including the rare copper telluride, which were collected and preserved from the Kalgoorlie mine by Mr A E Paton, and also by a few miscellaneous specimens from the collection of MrS F C Cook, of the Palace Hotel, Kalgoorlie.An extensive knowledge of the rare tellurium-bearing minerals was compiled during the last century from occurrences in Transylvania and Colorado. The recognition of different species has been based on chemical analyses and crystallographic measurements. In a few species there has been an absence of crystalline form, and these, together with the discoveries in this century of rickardite and 'weissite', muthmannite and empressite, have depended chiefly on the chemical analysis for identification. On the other hand, the crystalline form of nagyagite and stiitzite has been described in detail, while their precise chemical formulae were doubtfully defined.The announcement of the occurrence of tellurides at Kalgoorlie by A G Holroyd in the Kalgoorlie Mine on 29 May 1896, followed by their discovery in comparative abundance, stimulated the further study of these minerals. In this locality there is a general absence of well-formed crystals, and the knowledge gained has been confined to the record and description of previously known, but exceedingly rare, species.No new species has been recorded, but the intimate association of various species resulted in early description of two supposedly new species, kalgoorlite and coolgardite. These have been discredited since the investigation by L J Spencer in 1903, based on a collection of specimens donated to the British Museum.Spencer's list of species at Kalgoorlie comprises calaverite, sylvanite (or krennnerite), petzite, coloradoite, 'and altaite, and does not include hessite, previously mentioned by Krusch. In 1912 melonite and a copper telluride were added by J A Thomson and the presence of hessite confirmed. In 1912 there also appeared a full and detailed account by E S Simpson on behalf of the WA Geological Survey, which embraced his earlier notes on the tellurides, and which represents the state of our knowledge of the Kalgoorlie minerals, practically as far as can be attained without the use of the reflecting microscope.The position has been stationary for about 18 years, and it was thought. that the best use to which the present collection of tellurides could be devoted was an attempt by mineragraphic methods to study the mineral relationships, not only of the tellurides among themselves, but also to gold and other associated minerals. The precise mineral content and relationships become a factor of added importance with the development of flotation methods of treatment at Kalgoorlie.Moreover, the study would supplement the description of the ore deposits of the Boulder Belt that has recently been published.

Jan 1, 1994

"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016