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By Sergeant G. D, Norman J. R

The importance of reducing the moisture content of fine coal, the nature of the retained water and the means of its removal are discussed. A statistical technique, using a balanced block design, was used to isolate the significant factors determining water content of a coal filter cake, The most significant factor was particle size distribution. A simplex evolutionary operation (evop) was used to determine the optimal quantities of additives required to produce the lowest moisture content for a selected coal size. For this optimum condition (18.6 lb xÇ20 per 100 lb dry coal), additions of 0.045 lb magnesium ion, 0.0026 lb separan A.P. 30, and 0.098 lb aerosol O.T., per 100 lb dry coal were required. The work illustrated the uses of statistical evop technique for the determination of optimal conditions in industrial research projects.

Jan 1, 1969

The CSIRO acid alumina employs the essential steps of digestion, hydrolysis and calcination to produce pure alumina from ores too high in silica or too low in grade for the Bayer process. The two latter stages have been described in some detail previously but the digestion stage requires separate dis-cussion since ores vary widely in composition and reactivity. Kaolinitic clays require. roasting to 8000C to render the alumina soluble in the 11 per cent sulphuric acid used in the process while some ferruginous laterites require roasting to reduce the reactivity of iron minerals. The iron content of pregnant solutions is kept at a low figure by digesting at temperatures where the solubilities of ferric oxide or basic ferric sulphates are small. A.two-stage, counter-current digestion is necessary to extract a high percentage of alumina from the ores and to pro-duce a basic pregnant liquor, with an S03:Al203 ratio of 1. 9 suitable for high temperature hydrolysis. The second stage of digestion, called the modification stage, treats slightly acid liquors with exces's of ore in the temperature range 1200- 1400C. The first stage operates at 1700-190 C to extract further alumina from modification residues, using recycled acid obtained from later steps of the process. Both temperature ranges are critical for economic operation and for proper con-trol of the iron content of solutions. In batch experiments, thirty minutes is regarded as a suitable retention time for digestion and modification; ores which require much longer than this are less suitable for the process. Impurities. such assilica, titanium and vanadium oxides are discarded in the residue along with iron oxide and do not contaminate the final product. Bivalent metallic sulphates such as MgSO4 can build up in the circuit to a very considerable degree without affecting. product purity.Comparison with other processes shows that the C. S. I. R. O. process is superior for control of contamination by iron, which is the major problem in acid processes. The pure intermediate product (3 A1203. 4 S03. 9 H2O) is also more convenient for cal-cination to alumina than the hydrated aluminium sulphate usually recovered in other processes. Detailed cost comparisons must await pilot-plant evaluation of the C. S. I. R. O. process.

Jan 1, 1963

By R Engle, R P. McMahan, D A. Bowman, S Schafrik, W Thabet

Preventing injuries and fatalities related to conveyor system use in the mining industry is important and increases uptime while decreasing lost time. The research presented here is funded by the National Institute for Occupational Safety and Health (NIOSH), and intended to accomplish this prevention by the use virtual environments (VEs) to improve training and help miners better understand the hazards of working around conveyor systems. Two conveyor system VEs designed to teach miners about hazards and to safely complete tasks around conveyor systems were developed for this project. The first conveyor system VE, called the instructional tour, gives the miner a semi-automated tour of a conveyor system and teaches the miner about possible hazards (eg, missing guarding) and how to safely fix conveyor problems (eg, a stuck idler) using lock-out, tag-out procedures. The second, called the virtual shift, allows the miner to freely navigate around a conveyor system to detect and avoid hazards. The miner is presented with equipment failures that need to be safely repaired during the virtual shift. If the miner fails to identify and avoid a hazard or fix a failure in a safe manner, an animation of the consequences is shown to the miner, who must start the virtual shift over. The models for the conveyor system VEs were created using 3DS Max. Desktop versions of the VEs were then created using Deep CreatorÖ, an authoring application for creating interactive 3D environments. Later, more realistic versions of the VEs were created for CAVEÖ, a room-sized visualisation system, using DIVERSE, an application programming interface. In initial evaluations of the conveyor system VEs, mining colleagues have indicated great interest in such training tools. According to their feedback, these and similar VEs would provide excellent alternatives to normal classroom training and serve as positive precursors to hands-on experience. These VEs provide new miners a chance to experience hazards associated with working around conveyor systems without being in possible danger.

Jan 1, 2008

By Derham DW, Newcombe LA

The operations of the Mount Morgan gold tailings retreatment plant were significantly improved in 1984 by the desliming of the CIP plant feed, which reduced cyanide consumption and increased percent gold dissolution. Subsequently, the development of slimes treatment, incorporating gold leaching from slimes solids by copper cyanide complexes in the process water, and gold adsorption on to carbon in an environment lacking free cyanide was successfully implemented. Mount Morgan was initially mined for gold commencing in 1882 on the auriferous ironstone cap to the sulphide ore body. During the history of mining and processing at Mount Morgan the operations have developed through numerous phases of gold and copper production, operating almost continuously through until the final closure in late 1990. The final phase of processing was the retreatment of tailings, predominantly flotation tailings accumulated since the 1930s, for the recovery of gold and minor silver. Tailings retreatment commenced in 1982 with the commissioning of a 10 000 tonnes per day CIP plant to treat some 40 million tonnes of tailings at an average grade of 1.08 g/t Au. The initial operations were hampered by high cyanide consumption and poor gold dissolution on the mixed siliceous/pyritic tailings. The successful development and implementation of the desliming of the CIP plant feed in 1984 (as described by Parsons and Hampshire, 1986) reduced cyanide consumption by 40 per cent, and raised gold extraction by 13 per cent points by virtue of significantly higher dissolved oxygen levels. The finer portion of the reclaimed tailings were deslimed by eighty 100 mm diameter AKW cyclones, with the desliming cyclone overflow thickened in a Warman 30 in diameter thickener for water recovery and slimes disposal. Operation of the desliming plant involved the discarding of a slime fraction representing about 15 per cent of the reclaimed feed. Although gold-bearing, the high content of cyanicides and oxygen consumers within the slime negated any conventional treatment of this stream with free cyanide for gold recovery. The natural lixiviant behaviour of the soluble copper cyanide complexes for gold, which was extremely evident at Mount Morgan, directed efforts in this area. Enhancement of gold leaching with a deficiency or near absence of detectable free cyanide, but with significant levels of copper cyanide complex from recycled process water were examined. Adsorption of this solubilised gold onto carbon in a similarly difficult environment required close examination.

Jan 1, 1993

By F Mwijage

"The benefits of measuring blast movement to reduce ore loss and dilution have been recognised by many people for many years and various methods have been used with limited success. Geita Gold Mine is running the pilot study on the blast movement monitoring (BMM) system which is a revolutionary method developed and patented by the University of Queensland and Blast Movement Technology (BMT). The system consists of directional transmitters placed within the shot prior to blasting, which are then located after the blast with a special detector and then the data is processed with purpose-designed software.As part of continuous improvement on grade control, Geita Gold Mine is running a research project in all operating pits with the objective of: quantifying the three-dimensional blast muck pile movement and finally utilise the movement data to define post-blast ore polygons and incorporate the movement dynamics during block modelling,quantify the potential savings for ore loss and dilution,improve mine geologists knowledge of blast dynamics, andstimulate greater co-operation between drill and blast engineers and geologists to achieve optimum blast designs.To any operation with selective mining, it is critical to the economics of an operation to control ore loss and dilution; getting it wrong will result in significant lost revenue. Implementation of ongoing pilot study on electronic balls as determinant on blast movement dynamics on ore would be of longer term solution and big investment pay back.CITATION:Mwijage, F, 2012. Pilot study on blast movement monitoring at Geita gold mine, in Proceedings Narrow Vein Mining 2012 , pp 49-58 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 26, 2012

By Sullivan T. D, Lohe E. M

Geological structure is one of the main controls on ground conditions within mining. It has a significant impact on the mining conditions and productivity of coal mines within the Sydney - Bowen Basin. The three main types of faults common to this region, normal, reverse and strike-slip systems, each present distinct challenges to mining. These systems effect a wide range of geotechnical and mining conditions within the mines. These include coal quality, strata stability, goat and caving behaviour, productivity and maintenance schedules of mining equipment, mine design and mine-site stress fields. A better understanding of the regional, local and mine-scale structural setting, timing relationships of structural events and the mechanisms of fault formation will greatly aid industry's push for greater productivity and competitiveness.

Jan 1, 1991

By Tyson G. R

A novel system has been developed using computer imaging techniques to make on-line measurements of material on a moving conveyor. Meas- urements of the mass or volume of conveyor materials are important in large open pit mining operations such as those operated by the State Elec- tricity Commission of Victoria (SECV). Such on-line measurements can be used for monitoring and controlling the production and transport of coal or overburden, and to assist in maintaining production levels. This paper describes a conveyor burden volume measurement system which is currently under development at the Research and Development Department of the SECV and although targeted initially for use in the Commission's open cut mines, the system is suitable for use on any open conveyor system. A basic developmental system has been built to demon- strate the viability of the technique used and further work on the system is planned. The measurement technique and the major components which have been developed as part of the system are described, some comparisons are drawn with other existing measurement systems and potential errors and future development are discussed.

Jan 1, 1989

By Langham B. M

A chemical study of the petrographic components of Greta (Maitland) coal, carried out by the Metropolitan Gas Co. (Melbourne), has revealed an anomaly in the composition of the durain which was thought to warrant petrological investigation.The original study, by the Metropolitan Gas Co., extended over eight shipments of coal received during the winter of 1943.The percentages of the several petrographic components were eslimated by careful handpicking of large samples of each shipment, and analyses were made of the handpicked components, which were also tested as to their gas-making and coking properties.The results are summarised in Tables 1 and 2. At first sight the components of the Greta coal bear a general resemblance in composition to those of other bituminous coals of similar rank, apart from a notable richness in volatiles, which is a distinctive feature of Greta coal. The durain has a typically higher ash content, and lower volatile content than the clarain (Table 1); and the coking behaviour of the four components is typical (Fig. 4).When, however, the analyses of Table 1 are re-calculated on a dry, ash-free basis, an anomaly appears: the clarain and the durain, on this 'pure coal' basis, have practically identical compositions, with the durain containing a slightly higher proportion of volatiles than the clarain (cf. Table 3); but the tar yield of these two components is very different (Table 1). Re-calculated on a dry, ash-free basis, the yield from the clarain is 18.9 gallons of tar per ton, while, that of the durain is 29.0 gallons per ton. The gas derived from the durain is correspondingly richer in illuminants (CH etc) and poorer in hydrogen than that from the clarain (Table 2), and is also notably richer in nitrogen.That the composition of the Greta durain is consistent is proved by the analyses of Table 3, in which the compositions of the respective durains and clarains of eight separate shipments of coal are compared. In most bituminous coals, the durain contains several per cent less volatile matter than the associated clarain, and high volatile content in a durain usually indicates a durain rich in spores.

Jan 1, 1947

By N Boughen, P Ashworth, S Johns, C J. Yeats, A Littleboy

The ocean floor, often called the last frontier, is increasingly discussed in terms of its resource potential û from near shore building aggregate and placer deposits to massive sulfide orebodies in the deeper ocean. Consequently there is an increasing incentive to mine the seafloor. But, do we have the social license to explore and mine the seafloor? Does this nascent industry have support amongst the wider community? If not, why not? And what should be done? To answer some of these questions, the Wealth from Oceans National Research Flagship has explored the social viability of an expanded seafloor exploration and mining (SEM) industry inAustralia. The results show that there are significant geological and environmental data gaps and that, in the absence of sufficient information, stakeholder reaction to the prospect of an SEM industry expansion may be reactionary and negative. This uncertainty means that the perception of risk from the industry is variable and often dependent on individual values. The acceptability of an expansion to the SEM industry is currently precarious, in particular due to the high levels of uncertainty regarding the environmental impacts of seafloor activity. While there are existing federal regulatory frameworks and government processes for the licensing of seafloor mineral exploration and extraction, there is little precedent in the application and implementation of these regulations. The future viability of the industry will be highly dependant on AustraliaÆs ability to improve the knowledge-base underpinning its regulatory regime and also to generate open and transparent communication channels between stakeholders. It will also be dependent on the SEM industryÆs ability to communicate an acceptable value proposition to society. This proposition will need to include the relative impacts of terrestrial and marine mining, the alternative potential uses of the ocean and the multi-use conflict that SEM might engender. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

As the mining sector increasingly embraces the sustainability agenda, and implements thorough environmental reporting in support of its case for a continued æsocial licence to operateÆ, there is a need for ever-clearer metrics for key areas of impact. It is clear that natural waters are both the predominant pathway and main recipient of the environmental impacts of mining. A new approach to summarising the impacts of mining operations on water quantity and quality is proposed, adapted from an existing generic framework, which is increasingly used to quantify the æwater footprintsÆ of cities and nations. This includes both direct water use and ævirtual waterÆ use, implicit in goods and services used by the mine. In contrast to the existing formulation of æwater footprintÆ, it is here argued that it makes hydrological sense to express the water footprints of mines in areal terms, as equivalent catchment areas. It is also important in the mining sector to capture systematic changes in the scale of impact, which can be anticipated and predictively quantified over the full life cycle. This includes the essentially infinite post-closure phase, during which æremanent water consumptionÆ occurs, either through physical water loss (eg by evaporation from pit lakes) or by ongoing contamination of sizeable flows of natural waters. Methods for assessing the water footprints of mines are now available, and the time is increasingly ripe for them to be applied in earnest in environmental reporting. An example application to a mine in a humid subtropical area of South America is presented. In that case, the mine site itself extended over 106 ha, whereas the maximum water footprint exceeded this by a factor of 27. Although the water footprint can be expected to decline by a factor of ten immediately after closure, sustained evaporation from pit lakes and tailings dams with water covers will gradually increase the remanent water consumption rate, such that the final post-closure water footprint remains about 25 per cent of that encountered during the peak of mining.

Jan 1, 2006

David Pollard will raise this matter in more aetail in a later paper, but mere are some obvious points that I wish to make. It is a relatively straightforward exercise to assess the competency at a low level in the workplace where the consequences of a worker's actions can be observed immediately. Assessing competency at higher levels which may involve creative, planning, design or supervisory functions is more difficult, especially where managerial responsibility and accountability for the output of others is involved. This is generally the case with the daily activities of most mining professionals, whether they be in operations, in a consulting capacity, in research, or in government.

Jan 1, 1994

The appearance of the Cornish miner in South Australia was, in the simplest terms, the result of resource development economics. In Cornwall in the middle of the 19th century tin and copper mining was declining, while in the new colony of South Australia copper mining was booming. Experienced hard rock miners in Cornwall there- fore escaped unemployment at home by accepting an assisted passage to South Australia. There, in a colony where they were needed, they made their skills available and received good wages. There are many testimonies which support this simple thesis. Take for example the following extracts from contemporary newspapers in Corn- wall: Persons of small capital will find this an excellent opportunity for emigrating to the young and thriving colony ... The miner will find a rich and unbroken field for his operations. The Colony abounds with minerals... (West Briton, 19 July 1844) Miners make a great deal of money here (South Australia). All of them earn ú2 to ú3 per week and in many cases when they have a portion of the mine on tribute one person has cleared ú100 in a couple of months or so. (Cornwall Royal Gazette, 21 July 1848)

Jan 1, 1987

By Sulanto J, Talonen T

In the mid 1960's Outokumpu considered building a lead Flash Smelter on the basis of Flash Smelting technology developed first in the late 1940s for smelting copper concentrates. Pilot scale tests were carried out and the process was found technically sound. The project was however not economically viable under Finnish conditions and it was cancelled. In 1981 pilot plant tests were restarted after many enquiries from the primary lead producers. All the know-how and development made in copper and nickel smelters was applied to the Lead Flash Smelting process and the tests were successful. Outokumpu has so far tested several types of lead concentrate with lead contents ranging from 28 to 75 per cent. The concentrate is oxidized and smelted to metallic lead and slag directly in the Flash Smelting Furnace using high oxygen enrichment of tonnage oxygen. Fossile fuel is used in the Flash Smelting Furnace in cases when the feed material does not contain enough latent heat to smelt the furnace products even though pure oxygen is used for oxidation. Thus the process results in a low consumption of extraneous energy. Use of oxygen results in a small gas flow but it is rich in sulphur dioxide. The gas treatment facilities and sulphur recovery plant will be small in size and low in investment cost. The process is flexible and can produce stable quality of products from different types of raw materials. Quality of lead bullion especially the sulphur content can be regulated over wide a range, from 0.1 per cent upwards according to the needs of the refinery.

Jan 1, 1984

By R Williams, P Godwin

In a time of changing rainfall patterns and in the light of recent tailings dam failures, there is closer environmental scrutiny for proposed tailings dam construction or expansion. Therefore the elimination of the traditional tailings dam could provide both environmental and cost benefits to an operation. One method to dewater tails is using pressure filtration to achieve lower moistures than what is currently available using other dewatering technologies. Further benefits include a higher rate of filtrate recovery, reuse of waste material and the potential for dry stacking of the filtered tailings cake, thereby minimising both risk and cost. This paper chronicles the replacement of two existing belt filter presses with a single McLanahan recessed plate filter press to dewater a tailings stream at a Bacchus Marsh site. It covers the slurry testing, equipment selection, installation, commissioning and operation of the filter press to achieve the following objectives:• removing the current tailings dam and slimes cells from the existing process to minimise failure risk and reduce the cost of a dam upgrade, as well as operational and maintenance costs• free up the surface area which was previously occupied by tailings dams and slimes cells• recover additional water to be returned to the process• reduce flocculent usage• reduce truck movements and handling.The project’s owner also expects to reduce carbon emissions by over 3000 t over the lifetime of operation as well as substantially reducing operating expenditure. By recognising the carbon reduction benefits, the project owner was able to successfully achieve partial funding through the Voluntary Waste Industry Protocol.An unanticipated, but as yet unquantifiable, bonus for the project was to seek an offtake agreement for the tailings thereby allowing the tailings to be considered a valuable source of beneficiated clay suitable for the construction industry.CITATION:Godwin, P and Williams, R, 2017. Pressure filtered tailings – environmental and cost benefits, in Proceedings MetPlant 2017, pp 324–334 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

Of all of the processes in the mining cycle, blasting has the greatest impact on the efficiency of both mining itself and the initial stages of ore processing. The cost of blasting can be readily accounted for, but the true benefits of an effective blasting operation are seldom measured or reported. This means that blasting is seldom optimised in terms of its overall economic impact on an operation. Blasting operations have evolved according to the environment provided by mine management. Most operations seek to minimise the unit cost of each component process (overburden removal, blasting, excavation and transport, crushing or grinding) without recognising the impact that blasting performance has on subsequent activities. The creation of æcost centresÆ or æmanagement unitsÆ that isolate blasting from its downstream impacts reinforce this trend. Modern blasting technology is regarded as sophisticated by virtue of the mechanical design of the drills, the chemistry of the explosives and the flexibility and reliability of modern blast initiation systems. However, blast performance is controlled by the nature of the rock mass and there is generally an inadequate appreciation of how blast designs should be tailored to suit different rock mass conditions or to meet different blasting objectives. Most operations utilise a limited suite of standard designs without routinely tailoring designs to suit the actual conditions at hand or the objectives of each blast. Mining operations would benefit from tackling the following specific challenges:What is the appropriate target performance for blasting operations to generate the maximum economic benefit for the operation as a whole? How should designs be configured to suit the changing rock mass conditions and operating constraints? What compromise (if any) should be allowed from the ideal to assist conflicting scheduling or other operational requirements? How can blast performance be measured and reported to provide appropriate guidance to future operations? These challenges can be tackled through the process of æblast engineeringÆ. This paper discusses the potential impact of blasting performance on the economics of mining operations and the author argues that very considerable benefits over and above those currently being achieved could be realised by improving the routine engineering of mine blasts. The paper then explores how the industryÆs failure to recognise the economic importance of blasting has resulted in the engineering of blasting operations receiving less management and technical support than is appropriate. Finally, a simple approach to the engineering of routine blasting operations is described as an example of how these challenges can be tackled.

Jan 1, 1999

Aluminium, the third most abundant element in the earth's crust, has been regarded by some people as the metal of the 20th century. A metal symbolising another great leap forward in man's technological development.From the stone age man advanced to the bronze age, the iron age and now the age of aluminium.The 19th Century discovery of elec-tricity was quickly followed by the discovery of the Hall-Heroult process of smelting aluminium. It is this same basic process we use today.

Jan 1, 1985

By D Bradshaw

The recovery of molybdenum at Kennecott Utah Copper (KUC) has become increasingly important as its demand and price have risen dramatically in the last few years. Consequently, the flotation behaviour of the molybdenum bearing mineral, molybdenite, has received a significant amount of attention. The flotation performance of molybdenite generally lags that of the copper sulfide minerals and is much more variable. There are many factors including particle size, liberation, surface slimes and oxidation that contribute to this and also much speculation as to the relative contribution of each of these factors. This paper discusses the morphology of the molybdenite found at KUC, the mineral associations in the different lithogical ores types and the effect that each of these has on flotation performance. Quantitative mineralogical analysis and an assessment of particle shapes are used to explain that flotation behaviour does not necessarily follow expected trends and that some behaviour is counter-intuitive. This unique behaviour can be explained by the morphology and anisotropic nature of molybdenite.

Jan 1, 2008

By Moyes A. J

The Intec Copper Process uses a strong chloride electrolyte at atmospheric pressure and 80 - 85¦C to produce high purity, 99.99 per cent copper granules and elemental sulphur. A recent, exhaustive study by an independent, major Australian corporation has shown the capital cost of an Inter plant to be approximately half that of a copper smelter at the 200 000 tpa capacity level and approximately half the operating and capital cost at the 50 000 tpa level. The Inter process costs were also shown to be greatly superior to the best available leach/SX/electrowin technology. The process utilises a multi-stage counter current leach at 80 - 85¦C with the addition of air at atmospheric pressure to precipitate iron as a goethite type compound, followed by a two-stage purification process separating impurities in metallic- and other forms. Purified cuprous chloride/sodium chloride solution is fed to an electrolytic diaphragm cell where high purity copper granules are produced at current densities of 1000 - 1500 A/m2 withoutthe need for conventional electrode stripping. Power consumption is approximately half that of the cupric route. The product is suitable for the direct powder metallurgical conversion of the granules to products such as wire or strip. All the steps in the 'furnace free' conversion of copper mineral to product have been demonstrated The process can treat low grade and contaminated concentrates without penalty, thereby offering greater returns to the miner. Lead, zinc and silver may be recovered as metals, with the high oxidation potential of the electrolyte allowing extraction of gold at high efficiency. The gold is selectively precipitated on activated carbon with negligible copper and silver contamination.

Jan 1, 1992

Pasminco is actively addressing the optimal utilisation of the known orebody at the Broken Hill mine, in addition to actively exploring for economic mineralisation in the region. As part of the policy of better utilising the known mineralisation a major upgrade of geological systems at the mine was initiated. The software chosen for this change was Maptek's Vulcan, mainly because of the ease of use of this package. Rather than having numerous data sources in varying software packages the mine aimed to limit interfaces and packages. The decision to upgrade the mine's software was not taken lightly, especially in view of the inature stage of Broken Hill mining operations. However, the current mine life of Pasminco Broken Hill mine is I I years, which is longer than many new mines setting up in Australia today. Also, a more sophisticated system brings with it a better understanding of the economic mineralisation, possibly extending the mine life further. The process of moving the Broken Hill databases into Vulcan was a huge task which included, database transfer, digitising, wire framing, modelling and eventually ore resource calculation. To ensure the validity of the new ore resource accounting system, the existing system was run as a duplicate for the introductory year, providing a comparison and if necessary a safety net. The benefits of such a change, however, became apparent almost immediately. Area geologists realised the opportunity to revise geological interpretations in their areas of responsibility, enabling them to obtain a better understanding of orebody morphology. Three- diniensional analysis provides an excellent method by which review of ore targets both in the underground and mine lease exploration areas can he made. As each new find of mineralisation enters the system and hopefully extends the mine life, the opportunities for further mineral exploration in Broken Hill area by Pasminco are enhanced.

Jan 1, 1997

The decision to contract or owner mine should be independent of, and should be made before, definitive estimated cost comparisons could be available. There is substantial potential risk of estimated cost comparisons being flawed due to difficulties in compiling comparable estimates for differing business objectives, errors and omissions or because of significant bias. In the current economic environment, escalating cost pressures potentially lead to increased incidence of disputes in mining contracts. The apparent cost of contractorÆs profit and overheads has tended to become more significant to owners. Economy-driven trends towards higher levels of performance and commercial risk for contractors, and the potential for more adversarial, difficult management; with attendant disputation between contractors and owners, have encouraged development of so-called ærelationship contractsÆ û partnering or project alliance contracts. The paper discusses the issues, circumstances when owner mining or contract mining is favoured and perceived advantages and disadvantages of contract mining. The implications of owner-perceived core business and core skills and outsourcing are also discussed. Techniques of introducing objectivity into the decision to owner or contract mine using matrix analysis or benefit comparisons are described. A disciplined procurement process should deliver a decision to owner or contract mine independent of, and prior to, any definitive comparison of estimated costs. A generic procurement process model is provided as a basis for discussion. Risk is discussed generally and as a significant factor in comparison of estimated operating costs. Consideration of risk and any prudent cost treatment are promoted as necessary pre-requisites to any comparison of estimated costs. The paper develops the concept that the decision to owner or contract mine should be based on real benefits that become obvious in the early stages of the development, particularly the procurement process; and before definitive estimated cost comparison can be available. In the context of this concept estimated cost comparisons tend to be confirmatory. Problems with comparing estimated ownerÆs operating costs with tendered contract prices are also discussed, particularly recovery of capital cost of equipment; and the owner minerÆs trade-off of operating risks for the residual contractorÆs margin attributed to overheads and profit. The paper concludes that sole reliance on a comparison of estimated ownerÆs operating costs with tendered contract prices in deciding to owner or contract mine is questionable and likely driven by a need to satisfy specific in-house customers.

Jan 1, 2003