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By S Love, M Anderson, M Boland

"The high rate of failure of new mine developments to meet feasibility study expectations has been the subject of many fine technical papers. Yet failure rates remain stubbornly high.Similarly, the common occurrence of disastrous acquisitions resulting from failed due diligence on projects is well known. Yet such mistakes continue to be made.The authors argue that project and due diligence failure are caused at least partly by cognitive biases. These biases pervade decision-making throughout project evaluations.A wider understanding of these biases (and their effects) is necessary. Only then can mitigating actions be taken.The opportunity for this wider understanding exists. A number of best-selling books have been published on the topic in recent years. With wider understanding of key concepts and terms, cognitive biases can be recognised and discussed. They can also be challenged and mitigated.The authors believe that these concepts should be entry-level, required knowledge for anyone evaluating, developing, reviewing or financing mining projects.Perhaps the most prevalent biases in project evaluation failure are the ‘over-optimism’ biases. In particular, the planning fallacy and confirmation bias.The anchoring effect is also pervasive. This bias propagates unrealistic assumptions from scoping and prefeasibility studies through to so-called definitive feasibility studies. Unrecognised anchoring biases also undermine the validity of many ‘independent’ due diligence reviews. They are also prevalent in corporate acquisitions.The availability heuristic refers to a mental shortcut that can lead to a number of biases. One of these is the narrative fallacy. The mind constructs coherent narratives and opinions, regardless of the amount and quality of the information that support them. Narrative fallacy commonly occurs in the evaluation of social and political risk. Another is disaster neglect, which is especially common in the failure to assess risks associated with tailings management.This paper outlines the relevance of these biases to mine project evaluations. It also provides examples where the authors have observed their effects.CITATION:Love, S, Boland, M and Anderson, M, 2016. Influence of cognitive biases on project evaluation, in Proceedings Project Evaluation 2016, pp 226–235 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By E Lounejeva, J A Halpin, A Chappaz, D D. Gregory, S Wu, T Lyons, P J. Sack, R R. Large, S W. Bull

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Newly published models suggest that some orogenic and Carlin-style gold deposits formed by the remobilisation of trace elements during interaction with hydrothermal or metamorphic fluids from early sedimentary pyrite that was enriched in Au, As and Te. The released trace elements are transported by the fluids to favourable trap sites where they are deposited. Therefore, early enrichment of Au, As and Te in source rocks (particularly in pyritic black shale) can be crucial to the formation of orogenic and Carlin-style gold deposits.The most important cause of the enrichment of gold and other trace elements in the sedimentary basins has been examined in this study to determine which basins are the most prospective for the development of orogenic gold deposits. An important influence for Au and other associated trace element accumulation in sedimentary pyrite is the temporal variation of trace element content in the oceans, as revealed by a database of over 1400 analyses of pyrite from black shale through geologic time. It is inferred that sediments coeval with those where sedimentary pyrite is enriched in Au and associated trace elements are more likely to be source rocks of orogenic and Carlin-style gold deposits.Factor analysis of the trace element content of pyrite through geologic time was conducted to investigate the multivariate relationships amongst trace elements and how these chemical factors explain the uptake of trace elements. One important factor includes Te, Au, Pb and Bi content. The incorporation of these large cations into pyrite is enhanced by As3+ substituting for Fe in pyrite lattice. The As3+ ion occurs in relatively oxidised environments and, thus, it is expected that shales deposited in non-euxinic waters are better source rocks for orogenic gold deposits.The examination of both the time in which the sediments were deposited and the redox conditions of the basin, and the ocean more broadly, can be used as a guide to approximate the extent of a basin’s fertility. To illustrate the use of this exploration tool, examples from the unmineralised Jet Rock Formation (UK) and the mineralised Castlemaine Group (Bendigo, Australia) are presented in this paper.CITATION:Gregory, D D, Large, R R, Halpin, J A, Lounejeva, E, Wu, S, Bull, S W, Sack, P J, Lyons, T and Chappaz, A, 2015. Accumulation of trace elements into black shale – how to identify a viable source rock for orogenic and Carlin-style gold deposits , in Proceedings PACRIM 2015 Congress, pp 59–64 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

Analysis of Electrostatic Separation for Rutile Cleaning Duty Using a Plate Electrode Assisted High Tension Roll Separator A plate assisted electrostatic high tension roll separator has been used for the removal of impurity mineral grains from a rutile rich product stream. A laboratory study and a subsequent production study explored the effect of machine conditions with a view to the optimisation of the separation performance of the separator. The performance requirement was that the TiO2 grade in the non-conductor stream was to be less than ten per cent whilst at the same time the ZrO2 grade in the conductor stream had to be less than 0.5 per cent at mass recoveries of greater than 90 per cent to the conductor stream and less than 5 per cent to the non-conductor stream. Mineralogy data was utilized to determine the feasibility of achieving the production targets with the feed under study. Since the feed stream mineralogy was dominated by rutile, leucoxene and zircon, it was possible to use an approximation to the actual mineral assemblage as well as the raw X-ray fluorescence data to understand the separation duty of the Carrara machine. Since there were four conflicting criteria used for the performance requirement, an index was devised that incorporated all the requirements simultaneously. This new index was the sum of the squares of the difference between the achieved and desired values, weighted with respect to the variance of each variable. If the desired value for a particular criterion had been met its contribution to the sum was set to zero, no matter how well the criterion had been met. For the production machine the strict requirements were almost achieved. As expected, the achievement of the target performance was dependent of the feed conditions at the time of measurement. This paper reports the results of this study.

Sep 13, 2010

By Kelly D, Moore C

The Golden Mile, which has been mined continuously for the past 100 years by both underground and more recently open pit methods, occupies an area of 1.2 km by 4 km adjacent to the city of Kalgoorlie Boulder in Western Australia (Figure 1). Large-scale open pit mining at the Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston operations is currently extracting 7.8 million tonnes of oxide and sulphide ore for a total production of 522 000 oz per annum. The effectiveness of grade estimation techniques at KCGM has been examined with reference to existing 10 m bench sample data from all operating areas within the Eastern Lode System of the Main and North pits. The aim of the study was to recommend practical parameters for grade control estimation. The review included comprehensive variography and comparison of nonparametric estimation methods (Joumel, 1983) such as indicator kriging and probability kriging with ordinary kriging, leading to the development of improved grade control parameters and procedures for both daily quality control and short term mine planning. This paper reviews the geological, statistical, geostatistical, mining and modelling features studied in order to present KCGM's Mining Department with recommendations for improving grade control.

Jan 1, 1994

Separation of Iron Particles from Banded Haematite Quartzite (BHQ) Ore by Selective Magnetic Coating The separation of fine iron particles from banded hematite quartzite (BHQ) has been studied using selective magnetic coating. The BHQ ore assays as 38.9 per cent Fe, 42.5 per cent SiO2 and 1.0 per cent Al2O3. Mineralogically, the ore contains hematite and quartz as the major mineral phases where as goethite and magnetite is present in minor entities. Natural magnetite of very fine size and oleate-magnetite in colloidal form, prepared synthetically in the laboratory are used as the coating material on the surface of hematite particles. The selective coatings of oleate-magnetite on BHQ surfaces followed by magnetic separation studies have indicated that, it is possible to achieve 62.3 per cent Fe with 8.5 per cent SiO2 at 85.4 per cent iron recovery. The recovery of iron values is found to be superior in comparison to the conventional magnetic separation techniques. The selectivity of coating for enhancing the magnetic response of iron particles is achieved by controlling the surface properties of the particle via electrokinetic potential adjustment by controling pH and addition of oleate-magnetite. In the separation process, the effects of pH, magnetic intensity and addition of oleate-magnetite are studied to achieve the maximum grade and recovery of iron values. The optimum separation is observed at pH of 7.5, oleate-magnetite concentration of 0.25 ml/g of BHQ ore and a magnetic intensity of around 0.8 Tesla. The X-ray diffraction (XRD), Infra-red spectroscopy (IR) and UV-visible spectroscopic studies strongly suggest preferential coating of magnetite on hematite surfaces. Scanning electron microscopy (SEM) studies have brought out the semi-quantitative features of BHQ ore. The recovery of iron values from a lean grade ore such as BHQ is carried out looking into the future needs of this ore in India for iron and steel making.

Sep 13, 2010

Commercialisation of Ni Heap Leaching at Murrin Murrin Operations

Sep 13, 2010

By M Fitzgerald

Fimiston Open Pit is operated by Kalgoorlie Consolidated Gold Mines (KCGM) as a joint venture between Barrick Gold and Newmont Mining. Over 110 years of underground mining resulted in the development of nearly 3500 km of underground workings including backfilled and open stopes up to half a million tonnes in size. These voids significantly complicate blasting processes at KCGM, influencing blast movement direction and magnitude. Blast movement monitoring to improve mine reconciliations was identified as an improvement project in the business plan for the geology team in 2008. Following successful trials in 2008 to 2009, blast monitoring and translation of ore blocks were implemented as a permanent grade control program from late 2009 and is now part of the Management Operating System (MOS) of the mine. This paper presents a summary of results from the Blast Movement Monitoring (BMM®) data collected to date. Ore blocks at KCGM are translated primarily using BMM® data. This data is obtained from the BMM® system which measures the movement of a radio transmitter installed in a blast pattern from a preblast position to a post-blast position. The application of the data collected by the BMM® tends to be both mine site and blast specific. At KCGM, an average distance obtained from the BMM® data within a given shot is the primary method used for translation. In the case that BMM® data is unavailable, a theoretical movement vector established from Orica Shotplus with distances gained from the historical BMM® database is used. Data is presented in an ore loss and dilution exercise for a bench undertaken at KCGM to understand the potential effects on reconciliations. Improvements that have flowed from implementing blast monitoring include improved reconciliations when combined with other grade control improvement projects. The increase in liaison between the geology and blast personnel at KCGM has been a significant improvement gained from the implementation of the blast monitoring program. This has allowed a better understanding of blast movement and the effects on ore dilution and ore loss by the mine geology team. In addition, the discussion of blasting tie-in plans between geology and blasting personnel has been improved which leads to more favourable blasting practices that take ore movement into account.

Aug 22, 2011

The New Technology of Enrichment of a Fine Low-Grade Tungsten from Complex Multi-Metallic Ore

Sep 13, 2010

By Y Zhu, W Liang, P Knights

In recent years, Chinese companies have invested billions in Australian mineral exploration, development and processing. In 2008 - 2009 alone, the Foreign Investment Review Board approved $26.4 B of investment. Much of this investment has been by merger and acquisition (M&A) of Australian resources companies. This paper sets out to investigate how Australian CEOs perceive the cultural and institutional challenges in operating Australia mining companies recently acquired by Chinese interests. HofstedeÆs cultural dimensions and institutional theory from management science were used to develop a structured questionnaire, which was subsequently used to conduct telephone interview of the CEOs of six recently acquired mining companies. Analysis of the survey results indicated that, in all cases, few changes were made to the operational management of the Australian companies post-M&A. The three major benefits for Australian companies as a result of the M&A are the ability to; access long-term debt at lower cost; secure finance for growth plans in financially volatile times; and maintain existing management structures. Some perceived negatives involved longer and more convoluted decision-making as a result of Chinese state approval required for investment decisions. The study identified building æGuanxiÆ and an aversion to losing æfaceÆ as important cultural learnings for Australian CEOs. Maintaining effective communications is regarded as key for successful cultural integration.CITATION:Liang, W, Zhu, Y and Knights, P, 2012. Cultural challenges in Chinese/Australian mining mergers and acquisitions - A CEOÆs perspective, in Proceedings International Mine Management 2012, pp 251-260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By P Lindsay

A numerical model has been developed to simulate the effectiveness and costs of a number of conceptual remedial measures aimed at reducing acidity and metal concentrations in the Ngakawau River and its tributaries near the Stockton Coal Mine, situated on the West Coast of New Zealand. The Stockton Coal Mine has been in operation over the past 100 years. During that time, seepage from waste rock dumps has contributed to elevated acidity and metal concentrations in the Ngakawau River and some of its tributaries. The yearly mean rainfall at the mine site is 6000 mm. The model, developed using GoldSim software, simulates rainfall, run-off and stream discharge for 26 tributaries. It then calculates acidity and metal concentrations in the mine impacted tributaries and the dilution downstream from the mine. The model has been calibrated to measured flow and acidity and metal concentrations in the Ngakawau River and some of its tributaries. Acidity and metal loads are removed from the system in accordance with specified efficiencies and capacities of the respective conceptual remedial measures. The user can compare specific remedial measures, or a combination of conceptual remedial measures. The model predicts the acidity and metal concentrations at a number of monitoring stations for any remedial strategy selected by the user. It also calculates the capital and operational costs for that particular remedial strategy. This paper presents the development of the numerical model and describes how the end-user can use it to compare the efficiency and costs of various remedial strategies by running different æwhat ifÆ scenarios.

Jan 1, 2006

By P J. Marsh, P J. Bartsch, N J. Semler

Iron Road Limited is currently studying the feasibility of producing 20 Mt/a of high-grade (67 per cent Fe) magnetite concentrate from a 2.6 Bt resource (JORC) located at Warramboo on the central Eyre Peninsula in South Australia. Bulk concentrate has been tested at a relatively coarse grind size of -106 ¦m. The preliminary flow sheet has been confirmed based on initial mine plans and comprehensive metallurgical testing across the range of mineralisation. Extensive Davis tube testing to predict magnetite recoveries has been conducted over the resource, however this was completed at settings different to the optimised settings developed in the metallurgical test work program.This paper outlines the development of an ore treatment simulation in SysCAD which utilises the mine production plan, the Davis tube test data from the resource, data from metallurgical test work and process design criteria to predict magnetite concentrate deliveries. Mineralogical data, including QEMScan results and metallurgical assessments, were a fundamental basis of the process models which enable predictions of concentrate yield and quality. Power and water requirements are also calculated within the model. SysCAD dynamic simulation has been used to assist with the design of the process plant and downstream infrastructure. The simulation has been set-up to allow iterative integration and optimisation of the mine plan when it becomes available.CITATION:Semler, N J, Marsh, P J and Bartsch, P J, 2013. Iron RoadÆs prediction of magnetite concentrate production from the Central Eyre Iron Project, in Proceedings Iron Ore 2013 , pp 539-546 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

Continuous pH and Pulp Potential Measurements During Complex Sulfide Ore Flotation

Sep 13, 2010

By McKay AD

The bulk of Australia's uranium resour- ces was delineated in the last 18 years when a total of $563 million (1984 dollar values) was spent on uranium exploration. Australia's share of the low-cost Reasonably Assured Re- sources in the World Outside the Centrally Planned Economies Area (WOCA) increased from 1.5% in 1967 to 29% by the end of 1984 and its share of the low-cost Estimated Additional Resources (Category I) then stood at 25%. As of December 1984, Australia's uranium resour- ces were estimated by the BMR to be: Cost range US$80/kg U (US$30/lb U301) Reasonably Assured Resources 463 000 t U Estimated Additional Resources(I) 251 000 t U Cost range US$80-130/kg U (US$30-50/lb U308) Reasonably Assured Resources 63 000 t U Estimated Additional Resources(I) 126 000 t U The increases in Australia's resources was sustained by a group of large and rela- tively high-grade deposits which were disco- vered during the period 1969 to 1975. Austra- lia's share of the low-cost resources was also enhanced by a contraction of WOCA's low-cost resource base due to escalation of production costs for smaller low-grade deposits. Most of Australia's uranium resources are contained in the Proterozoic unconformity- type deposits of the Alligator Rivers uranium field and the stratabound deposit at Olympic Dam on the Stuart Shelf. Most of the remain- der of Australia's uranium resources is con- tained in calcrete-type deposits. Less than 10% of Australia's uranium resources are in sandstone-type deposits. Total Australian production to the end of 1984 amounted to 26 241 t U, representing 3.4% of WOCA's cumulative production. Aus- tralia's share of WOCA's annual production has steadily increased from 1.3% in 1977 to 11.2% in 1984 (4390 t U). The increases in Austra- lian production took place in the face of reductions of production in WOCA countries, principally the US, from a record level of 43 988 t U in 1980 to about 39 000 t U in 1984. New low-cost production centres, mainly in Australia and Canada, have partly compen- sated the decline in US production. The Department of Resources and Energy (1985) reported that Australian exports of yellowcake are expected to reach 10 000 t U308 (8480 t U) by 1993/94, representing an in- crease of about 13% oer annum.

Jan 1, 1986

By D J. Kilkenny, D A. O’Toole, P B. Hills, K L. Seah

An investigation was undertaken to critically analyse the use of fibre reinforced shotcrete (FRS) for a variety of applications in large diameter shafts. Those applications included the use of FRS with or without the addition of subsequent rock bolting in the temporary support cycle prior to the installation of a permanent lining, most likely cast in situ concrete or as the final lining medium.Numerous authors have considered the early re-entry and strength characteristics of FRS in recent years. The current study has investigated the practical application of the recommendations of many leading authors in an endeavour to establish practical and acceptable risk-assessed procedures for the use of FRS for rapid, safe, efficient and cost-effective shaft sinking.Shaft sinking is regarded as a specialist and potentially higher risk activity due to the confined work environment, exposure to ground conditions and a high degree of manual handling associated with getting materials to the sinking face. The use of robotically applied FRS as a primary lining in shaft sinking has significant safety advantages in reducing manual handing associated with mesh safety support and bolting, as well as reducing direct exposure to ground conditions.The study involved both field testing and a literature review. The study established an initial set of criteria for the use of FRS in the development of large diameter shafts and demonstrated a number of scenarios where the technique of robotically applied FRS provided significant safety and cycle time advantages. The opportunity for a fully sprayed single pass lining was also investigated as part of the project.CITATION:Hills, P B, O’Toole, D A, Kilkenny, D J and Seah, K L, 2014. Exploring the use of fibre reinforced shotcrete in large diameter shafts, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 295–306 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By A Llewellyn, M Varvari

The ventilation circuit at the FrogÆs Leg Mine was originally designed to permit mining to progress down to 440 m below surface at a maximum production rate of 500 kt/a, as per the feasibility study. The FrogÆs Leg resource has now been defined down to 640 m below surface at a maximum production rate of 750 kt/a. In order to allow for this increase in production depth and tonnage, it was necessary to upgrade the ventilation circuit.This paper outlines the upgrades to the ventilation circuit that were undertaken and the underlying rationale behind them.CITATION:Llewellyn, A and Varvari, M, 2013. Ventilation upgrade at the FrogÆs Leg Mine - Case study, in Proceedings The Australian Mine Ventilation Conference , pp 95-102 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By V Lawson

Vale’s Sudbury Clarabelle Mill processes Cu/Ni ores from a number of mines in the Sudbury basin in Ontario, Canada. Bulk sulphide flotation produces a copper-nickel concentrate with pyrrhotite as the major diluent. After successful commissioning of the Voisey’s Bay Cu/Ni Mill (VBN) in Labrador, a miniplant campaign on Clarabelle ore with the VBN flow sheet produced a significant recovery improvement over current performance. In 2001, the Mill Redesign Project moved grinding energy into rock/sulphide and pentlandite/pyrrhotite separation and in 2006 Cu/Ni separation was re-introduced to Clarabelle Mill to produce a saleable Cu concentrate. The projects were a great success. What remained was to simplify the Clarabelle flow sheet by introducing the missing components found in the VBN flow sheet. This project known as CORe has evolved through many stages including the mining boom and surviving the 2008 economic downturn and it is scheduled for completion in mid 2013. This paper outlines some of the challenges faced in this major brownfields project – organizational, technical, financial and operational.

Aug 8, 2011

By M McCarthy

Over the last six years Mandalay Resources has increased production rates and improved safety outcomes at its Costerfield mine in Victoria, Australia. This mine is an underground operation utilising narrow mining techniques to extract vertical veins, and produces up to 80 000 equivalent ounces of gold per annum, in both gold and antimony value.The operational challenges of narrow vein mining include controlling overbreak when veins being mined are only 300 mm wide. The mine has developed methods and modified equipment to suit extraction of these veins. Productivity improvements over the period have involved development of a stoping method and equipment to suit 1.8 m wide development drives. Over the last five years and during a skills shortage, recruitment, training and retention of personnel has been key to keeping corporate knowledge and skills to execute a careful efficient mining technique to minimise overbreak.Managing an underground operation close to nearby residents has unique challenges. Historically Victorian residents had family members work as underground miners; however, in the current day with few underground operations in this jurisdiction, community knowledge of mining has decreased. The Costerfield Operations are only 100 m from the nearest residence and the company values community engagement, partnership and investment with local Heathcote organisations.The mine has invested substantially in executive coaching of its leadership team early, which has paid dividends in problem solving potential of that team and ensuring the operation delivers on its promises to all stakeholders. The operation has become safer and employees are now more aware of their individual contribution in producing safe, efficient gold and antimony that benefit the whole operation, community and the region.CITATION:McCarthy, M, 2016. Costerfield – a narrow vein case study, in Proceedings International Mine Management Conference, pp 331-338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

Au-Ag Recovery from Complex Ore by Flotation

Sep 13, 2010

Removal of Arsenic in Fluorite Ore by Simultaneous Grinding-Leaching with NaHS Generally speaking, a high-grade fluorite ore is converted into hydrogen fluoride (HF), which is essential for the semiconductor manufacturing. With the continuous depletion of resources, novel technologies for processing low-grade fluorite ores are urgently needed, in order to lower the arsenic concentration to less than 100 mg/kg. In this study, a low-grade fluorite ore was upgraded by removing arsenic, which is difficult to remove by conventional method. The mechano-chemical leaching of fluorite ore (i.e. the sample was ground in presence of NaHS, using a beads mill) was carried out to investigate the removal of arsenic from the low-grade fluorite. Experimental results showed that the arsenic concentration was reduced to 73.2 mg/kg.

Sep 13, 2010

By V S. Mutton, M J. Shearer

"The current economic challenges faced by the mining industry led to a review of options for reducing the cost of ventilation control devices (VCDs). The VCDs at the Mount Isa Mines site operated by Glencore in Queensland typically experienced significant damage on the operating levels and required expensive replacements. Ventilation controls can become damaged by the effects of stope firings. This paper discusses the nature of blast wave effects, giving consideration to distance from the firing and changes in mine geometry. The time taken to adjust the airflow on the operating levels with the current VCDs resulted in the loss of productivity opportunities. The mine site engaged an equipment supplier to collaborate on the development of a high-strength regulator to control the required airflows within its underground workings.The strengthened regulator proved to be cost-effective and provided additional benefits, including ease of use, simplicity of installation and speed of change in the control of available ventilating airflow. An added advantage of the re-engineered regulator compared to contemporary VCDs is its flexibility, which includes the ability to easily move mobile equipment into different ventilation districts where required without the need to remove the VCD from its location. This paper describes both the innovation and environmental sustainability approaches followed when developing the new regulator for its implementation at the site.CITATION:Shearer, M J and Mutton, V S, 2015. Advanced ventilation control – an analysis of innovation and environmental sustainability, in Proceedings The Australian Mine Ventilation Conference, pp 55–62 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 31, 2015