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By A. C. Legg, M. T. Malema

Keywords: Pyrometallurgy, flash, smelting, furnace, nickel, copper, Botswana BCL Limited operates the only Flash Smelting Furnace on the African continent, at Selebi-Phikwe, situated in north-eastern Botswana. The furnace was commissioned in 1973 and produces a high-grade sulphide matte containing nickel, copper and cobalt, which is shipped to refineries in Zimbabwe and Norway for further processing. This paper outlines the recent process improvements and plant expansions that have resulted in a capacity increase from 40 000 to 60 000 tons per annum of metal production.

Jan 1, 2006

By Arthur A. F, MacKenzie I. H

Copper in zinc/lead sinter charged to the Imperial Smelting Furnace operated by Sulphide Corporation Pty Limited at Cockle Creek, New South Wales, concentrates in a complex lead dross which forms as the bullion is cooled to around 400°C. The 0.35 mm portion of this dross, containing approximatelY 67 per cent of the total copper, is treated via a hydrometallurgical route to produce 5000 tonne/yr of CuSO4 5H2O crystal.Around 3000 tonne/yr of copper-lead dross containing 49 per cent copper is leached at 55°C in continuous leach reactors with ammoniacal ammonium carbonate leach liquors to convert copper to soluble copper amine complexes. Leach ettlciencies of 80-85 per cent are obtained. Leach residues are repulped with ammoniacal liquid diluents from the plant and heated in a four stage steam distillation unit to reduce ammonia levels to between 0.5 and 1.0 g/Iitre. The resultant slurry is directed to an effluent treatment plant for final treatment, and separation and return of solids to the sinter plant.Copper is extracted from leach liquor by solvent extraction techniques based on the use of L1X 54 diluted 3:1 with Shellsol 2046 to give a nominal copper loading of 30 g/litre. The loaded organic is contacted with a sulfuric acid solution of pH 5 to remove the bulk of ammonia and zinc, then stripped at 55°C with a 60 g/Iitre H2SO4 95 g/Iitre copper solution to yield a 15 g/Iitre H2SO4 125 g/Iitre copper solution.This liquor is fed to an adiabatic vacuum crvstalliser operating at 35°C and 5 kPa vacuum where crystals of CuSO4 5H2O are formed. Crystals are separated from mother liquor and washed in a two stage pusher centrifuge, then dried in a hot air rotary drier. The crystal product obtained is of a high chemical purity and readily conforms to both Australian and overseas standards.

Jan 1, 1983

By G Dunstan

The Ridgeway gold mine has been an enigma of the international underground hard rock community for nearly 20 years. It nearly didn’t eventuate as it was more than 500 m below a farmer’s paddock in Central New South Wales when the exploration team, looking for open pit deposits, got a sniff on its last attempt and then drilled the high-grade discovery hole. It took separate studies to find an economic mining approach. Newcrest, then a mid-tier mining company, took the venture that set it on a path of growth and built what was to become the backbone of the company for the next 15 years.The initial mining method was sublevel caving (SLC) for the upper 300 m of the orebody. The nameplate production rate for the SLC was 4 Mt/a, which was reached in June 2002 shortly after the commissioning of the materials handling system. The ultimate production rate was subsequently lifted to around 6 Mt/a through a series of innovative and efficiency initiatives. In June 2007, approval was granted for the development of a block cave (BC) operation to extract the ore reserve situated immediately below the existing SLC operations, Ridgeway Deeps. The BC was designed at approximately 6 Mt/a to match the concentrator and a systematic improvement process through the entire underground system again saw delivery rates consistently around 10 Mt/a.In line with the production rate increases, Newcrest was also committed to advancing caving knowledge through a number of targeted research and development experiments and new processes. These were primarily related to improving cave ore recovery through systematic draw marker trials, cave propagation through preconditioning techniques with associated monitoring systems. New technologies were also developed to improve the safety and efficiency of the mine through data collection, cave establishment techniques, production dispatching and autonomous loading.CITATION:Dunstan, G, 2016. The truth is stranger than fiction – the story of Ridgeway gold mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 19–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By J. L. Gregg, J. L.

RECENTLY there has been considerable interest in the production and use of extra hard alloys composed primarily of tungsten and carbon. Dr. Hoyt's recent paper1 gives a good description of these alloys and describes their performance when used as tools. There are a number of these alloys on the market sold under various trade names, and it is the purpose of this paper to describe the results of an investigation of the structure of five of these alloys by means of microscopic and X-ray methods. The samples studied were in the form of small tools or wire-drawing dies, which were either purchased or supplied as samples. They were in some cases not supplied by the original makers but were furnished by the agents in this country, and we wish to call attention to the fact that they may not be truly representative of the materials supplied under the various trade names. No performance data are given and no inference as to the inferiority of one alloy as against any other is made. K. Schröter2 recently described methods for polishing alloys of this type for microscopic examination and has presented photomicrographs of several alloys. However, he did not identify their constituents or describe methods for their identification.

Jan 1, 1929

By R. W. Mei, R. A. Strombom, D. J. Moore

"Heat-shrinkable cable accessories are solving problems in the mining industry. This paper describes a range of products used by the industry, including low-voltage splices, high-voltage splices to 8.7 k V, cable repair sleeves, mining cable terminations used on system voltages up to 25 kV and motor connection kits up to 8 k V. Technical procedures and designs are illustrated.IntroductionThe development of high-performance heat-shrinkable materials slightly over 20 years ago proved to be one of the major technological breakthroughs in power cable accessories. Heat-shrinkable products were introduced initially for use as low-volt age cable accessories in the aircraft and electronics industry. A program of continuous development and product introduction now enables the manufacturer to offer a broad range of products for mining, industrial and utility electrical systems.With the advent of atomic energy, an important discovery was made-exposure of some plastic materials to high-energy electrons can cause the permanent crosslinking, or intermolecular joining, of adjacent molecules. Once the material has been crosslinked, it will not melt or flow at any temperature.The unique properties of heat-shrinkable products also result from the exposure of special thermoplastic formulations to high-energy electrons. Because of crosslinking, these products have perfect elastic memory. The heat-shrinkable products are supplied in expanded condition. When heated, they will shrink and tightly cover the object over which they have been placed. 'The functional and operating demands of mine cable accessories exceeded the classic electronic applications of heat shrinkable materials. These demands required a very sophisticated program to develop materials and adhesive systems that could endure the operational environment associated with the mining industry,Ease of assembly, low installed cost and operational reliability are among the main reasons for the acceptance of heat-shrinkable mine cable accessories in electrically powered mines. For over a decade, these systems have been demonstrating proven performance."

Jan 1, 1980

By David S. Yang

The construction of Oakland Airport Roadway Project for the airport expansion requires stabilization of subsurface soils for the construction of three grade separation structures at two roadway interchanges and the intersection of a roadway and taxiway serving the airport. Loose sandy fills and soft Bay Mud were improved by Cement Deep Soil Mixing (CDSM) for the construction of a soil-cement foundation under the MSE (Mechanically Stabilized Earth) walls of a roadway overcrossing and a soil-cement gravity retaining wall to maintain stability of a roadway undercrossing during and after a major earthquake. CDSM was also used to construct two cutoff walls for groundwater control. A test section was carried out prior to full production to verify that the CDSM equipment, installation procedures, and mix designs could produce the soil-cement with required strength, uniformity, and permeability to meet the design intent. Additional test sections were performed for the confirmation or modification of the mix design and installation procedure to cope with the complex subsurface conditions resulting from the historical development of the site. The test section revealed that the CDSM cutoff walls, retaining wall, and foundation improvements could be constructed to satisfy the design requirements and that the intermittent test sections alleviate the impact of the varying subsurface conditions. Based on the data obtained from the test sections, one CDSM cutoff wall was completed in July 2000. Full production of the CDSM retaining wall, cutoff wall, and foundation began in March 2001 and is expected to be complete in November 2001.

Jan 1, 2001

The treatment plant at Martha Mine was upgraded from a nominal throughput of 110tph (O.93mtpa) to 150tph (1.25mtpa) late 1999. Post-upgrade performance did not meet expectations when treating either the competent primary ore or the clay-rich oxide ore.   ò Plant throughput is constrained by milling capacity when treating the competent primary ore. This is not an issue at present as current plant feed is oxide ore from the top of the open-pit, but will become so in future years as the pit deepens. To counter this future threat, ball mill power has been restored to 1100kW through modifications to the drive train. The addition of a crushing circuit may also be necessary.   ò Plant throughput was originally constrained by thickener and leach/adsorption tank issues when treating the oxide are. Changes to plant equipment and operations has seen the removal of these constraints and throughput on this material is no longer a problem.   The most significant issue facing plant staff at present is the high silver grade and its impact on gold recovery. These high grades impact upon recovery through losses caused by insufficient leach and adsorption capacity. To counter this, the geology, mining, and milling teams are working together to blend the high grade silver zones with lower grade ores - this is seen to be the quickest and most cost effective way to deal with the issue. The plant design has also been evaluated with a view to modifying it to cope with the higher silver grades. The viability of these modifications will depend on cost and time (that is, the length of time to implement any modifications versus the length of time to mine out the high silver zones).

Jan 1, 2001

By Alan: Moore Richards

Effective control of airblast requires that significant factors be identified and satisfied by blast design and careful implementation. Significant factors include charge mass, distance, face height and orientation, burden, spacing, and initiation sequence, stemming height and type, topographical shielding, and meteorological conditions. This paper utilizes case histories of blasting in Australian open pit mines to demonstrate techniques that have been used to control airblast to applicable limits.

Jan 1, 2006

The point of the anode effect on carbon anodes of dcfincd surface area. during electrolytic decomposition of alumina dissolved in molten fluorides. has been determined from current-voltage curves. The reproducibility and accuracy was found to be better for cell voltage than anode current density. Results have been obtained for the effect of alumina concentration temperature and carbon type. The point of the anode effect was strongly dependent on both the alumina concentration and the carbon type. For high alumina concentrations it has been found that the anode effect approaches reversibility. From these results it is concluded that co-evolution of CO, and CF. occurs prior to the onset of the anode effect. The anode effect results when the CF, content becomes sufficiently high for the melt not to wet the electrode surface and is maintained because of the slow desorption of CF, and the high electrode potential that results.

Jan 1, 1967

By J Williamson, M Griessmann

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Watershed tungsten deposit is located in the Hodgkinson Province of north Queensland, Australia. The deposit is hosted by Siluro-Devonian flysch-type meta-sediments of the Hodgkinson Formation, which were subjected to four major deformation events. Mineralisation has occurred syn- to post-D4 and is related to the intrusion of S-type granitoids of the Permian Whypalla Supersuite.Watershed is located within a regional NW–SE-striking melange zone composed of brecciated and intermixed arenites and shales. The major NW–SE-striking Tullah fault zone is situated in close proximity to the east of the deposit.The Watershed deposit occurs within a tightly folded upright anticline with NW-plunging fold axis. The anticline contains a major package of coarse-grained to conglomeratic arenite, which harbours the Watershed mineralisation. Several alteration styles occur within the arenites, of which Fe-poor calc-silicate alteration dominated by clinozoisite/epidote is the most significant. Less widespread but locally important alteration styles comprise garnet-dominated calc-silicate alteration, albitisation and sericitisation. The arenites are enveloped by unmineralised carbonaceous shales and shale breccias.Tungsten mineralisation occurs solely as molybdenum-poor scheelite and can be found as three styles: disseminated mineralisation in calc-silicate altered arenites, vein-style mineralisation with quartz-albite-scheelite veins and minor but high-grade mineralisation in albitised felsic dykes.Contact metamorphic rocks and geophysical data indicate the proximity of an underlying granitic body. It is believed that this granitic body was the main driver of the hydrothermal system generating the Watershed deposit. An early mineralisation stage caused the selective calc-silicate alteration of the arenites, while a second stage caused the vein-style high-grade mineralisation. The folded shales enveloping the arenites worked as an effective barrier that kept the mineralising fluids in a confined rock volume.The scheelite mineralisation at Watershed is open to depth, with a granite-hosted porphyry or greisen-style mineralisation anticipated below the current resource.CITATION:Griessmann, M and Williamson, J, 2015. The calc-silicate-hosted Watershed tungsten deposit, far north Queensland, Australia , in Proceedings PACRIM 2015 Congress, pp 545–550 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Rameshwar Sreenivasan

This paper presents a sustainability analysis of Selective Laser Sintering (SLS) from an energy standpoint. Data of electrical power consumed by the system over an entire build were acquired using a LabVIEW 8.6 circuit. The power drawn by individual subsystems was also measured, and an energy balance was performed. These data were then used to arrive at a Total Energy Indicator of the process with the help of a specific type of Environmental and Resource Management Data (ERMD) known as Eco- Indicators, which indicates the level of sustainability of the process.

Jan 1, 2010

By J. L. Gillson

Joseph H. Birman (Chairman, Dept. of Geolcgy, Occidental College, Los Angeles, Calif.) Many thanks to J. L. Gillson for so comprehensive a survey of the titanium sand deposits of the world. Over the past two years, the writer studied rather carefully some of the Cretaceous ilmenite deposits in New Mexico and Colorado, including the Sanostee deposit shown in Gillson' s map, Fig. 6. The deposits were geologically mapped and sampled, surveyed by magnetometer, and the Sanostee deposit was drilled. Moat of the genetic interpretations made by Gillson concerning the recent sedimentary ilmenites can be clearly read in the Cre-taceous deposits in New Mexico. The deposits are in marine regressive members of the Mesaverde group. The deposits trend within a few degrees of N 55° W and persistence of this trend through both distance and time (the deposits are in different members of the Mesaverde group) implies that the deposits are offshore bar accumulations. Heavy mineral content ranges from about 10 pct to more than 50 pet. Thicknesses are from 4 ft to as much as 20 ft, widths range from 150 to 600 ft, and lengths range from a few thousand feet to a few miles. All are locally or completely overlain by carbonaceous shale and thin coal. The deposits are strongly altered, and from X-ray diffraction the principal titanium alteration product appears to be anatase. Drilling of the Sanostee deposit shows that the alteration is not related to the present erosion surface but took place at the site of deposition and before burial by the overlying sediments. Iron oxide derived from the alteration cements the grains and is the chief coloring agent in the immediately overlying shales. In the Sanostee deposit, there is virtually no feldspar, the gangue mineral being almost exclusively quartz. Sorting is excellent, but the quartz grains are subangular to angular. Petrographic examination reveals that the angularity is not due to overgrowths. Therefore, short distance transport is implied. The mineralogical composition suggests a low relief granitic terrane as the source area. Feldspar may have been decomposed by weathering at the source, but an alternative preferred by the writer is that each of the deposits represents a long-term concentration site (for example a large sand bar) which was continually being deprived of light minerals by wave action and selective transport. Feldspar may have been mechanically reduced in size more quickly than the quartz, and thus its rate of removal may have exceeded that of quartz. Concentration of heavy minerals would thus occur until the marine regression removed the zone of maximum wave energy from the site. Chemical alteration would then become the most important process until burial by encroaching swamp deposits.

Jan 1, 1961

By G. L. Oldwright, F. K. Shelton, W. E. Keck

"INTRODUCTION Zinc must be of high grade to satisfy the present demand. Even when the amount of premium paid is small, the purer metal as the buyers' preference. The following specifications for spelter were taken from the American Society for Testing Materials for 1927, Part I, pane 524. (The specifications for 1930, p. 582, are tile same.)Another specification for zinc of a much higher grade than any of the above has been established lately by the same society. The committee on zinc die-casting (Proc. Am. Soc. Test. Mat., vol. 31, 1931, p. 263) reached the following, conclusions: I. ""That the purest of zinc is necessary to produce stable zinc-base die castings, and as a result requested specifications for zinc spelter .with total impurities not over 0.02 percent."" Their tests showed that the die castings made of the purest zinc had the least elongation and the greatest tensile strength, and exhibited the least changes with temperature.Still more far-reaching claims are made for the properties of zinc containing over 99.99 percent metal. Zinc foil, for instance, may someday be made as a common commercial product. It would seem likely that the demand for zinc of high grades rill continue and that even purer varieties may be desired. This demand fits in with the modern trend in manufacturing plants of reducing the number of variables to a minimum by using pure materials, and of controlling the processing of metals during their various stages of fabrication by mechanical means instead of by expert laborers."

Jun 1, 1933

By B. Kahraman

About 70% of the world?s total boron reserves are located in Turkey. Boron minerals are typically concentrated by attrition scrubbing followed by screening and classification to remove clay minerals and other impurities. These wet concentration methods, however, result in a considerable amount of accumulated tailings in large tailings dams. The tailings are approximately 28% solids and contain 14% B2O3. Problems caused by these tailings can be minimized by employing dry beneficiation techniques involving heat treatment. This method has been successfully tested on laboratory and pilot scales. During heat treatment, borax undergoes expansion in volume. The amount of expansion is dependent on the particle size, temperature and duration of heat treatment. Because the optimum temperature and the duration of the heat treatment are not well defined, the boron ore acts as a calcined clay mineral and is discarded along with the gangue. It is important to predict such parameters using mathematical formulations. Thus, a mathematical model is used to predict the required temperature and duration period prior to heat treatment. In the experimental study presented here, a series of systematic thermal tests was carried out in a muffle furnace. Two variables, temperature and time, were studied in a response surface design. A quadratic regression model was chosen and regression coefficients were calculated. Using a regression equation, the volume expansion of the particles in various circumstances can be predicted. The mathematical test results are then correlated with the experimental results to relate the optimum expansion of borax with heating time and temperature and with borax grades and recoveries.

Jan 1, 2008

By Carlos F. Perucca, Maria Virginia Ramírez A.

"Chile based SQM S.A., exploits potassium chloride rich salts at the Salar de Atacama, in northern Chile. The process includes the solar evaporation of natural brines existing in the Salar salt bed, followed by conventional flotation to recover Muriate of Potash (MOP) for fertilizer use.This paper describes a structured method developed to aid in understanding the metallurgical response of the solar evaporated salts to conventional flotation. The method uses classical metallurgical data analysis combined with laboratory and plant-scale testing, and rudimentary mineralogical studies.As a result of the study, several changes were made to the flotation circuit which produced an operation that is much more consistent and easier to control, and has an increased recovery. An optimized circuit, currently being financially evaluated, has also been conceptually designed based on the findings of this work.INTRODUCTIONSQM S.A. is the world’s largest producer and distributor of specialty fertilizers, iodine, lithium, as well as a wide array of industrial and specialty chemicals. SQM is a public corporation whose shares are traded in the Santiago and the New York Stock Exchanges.SQM S.A. exploits the mineral rights at the Salar de Atacama in northern Chile. Its production processes involve the solar evaporation of natural brines existing in the Salar salt bed, aimed at the recovery of Potassium, Lithium and Boron compounds."

Jan 1, 2004

By T. Maejima, K. Aoki, T. Mori, K. Iwano

Concerning the excavation of rock cavern, it is one of the most important issues to evaluate the behavior of rock joints. But few detailed measurements for joint behavior had been conducted. Therefore, in order to evaluate the stability of rock cavern, effective approach for monitoring and analyzing the joint behavior needs to be developed. In this paper, authors described the results of analysis for joint behavior during the excavation by comparing with both results of the in-situ measurement by BTV and the numerical analysis by MBC model. Bei Ausschachten von Gesteinshöhlen ist es von besonderer Bedeutung, das stark von den Verbindungsteilen beeinflusste Gesteinsverhalten zu bewerten. Jedoch wurden bisher nur wenige Beobachtungen über das Öffnungsverhalten von Verbindungen durchgeführt. Daher muss ein effizientes Verfahren zur Überwachung der Stabilität unterirdischer Höhlen und der Analyse des Verhaltens von Verbindungsstellen entwickelt werden. In der vorliegenden Studie beschreiben die Autoren das Verhalten von Verbindungsstellen während der Ausschachtung durch Vergleiche sowohl mit den Ergebnissen von in situ Messungen mittels BTV als auch numerische Simulation mit dem MBC Modell, welches auch Diskontinuitäten berücksichtigen kann. Quand il s’agit d’excaver une caverne dans une roche ayant des joints très développés, il importe fort d’évaluer le comportement de la roche. Cependant, le nombre d’observations du comportement des roches effectuées au niveau de joints est loin d’être suffisant. Par conséquent, pour s’assurer de la stabilité des parois des cavernes souterraines, il a fallu mettre au point une méthode fiable de détection et d’analyse du mouvement des joints. Dans cet article, les auteurs décrivent leurs études de comportement des joints pendant l'excavation, en comparant les résultats des mesures effectuées in-situ, dans un chantier d’excavation par BTV , avec ceux d’analyse de la simulation numérique par MBC permettant de tenir compte des discontinuités.

Jan 1, 2003

By Matthias Pulsfort, Markus Herten, Rolf Breitenbücher, Claudia Fierenkothen

"Secant bored pile walls are frequently used as retaining walls in watertight excavations to cut off ground water aquifers and are subsequently exposed to ground water pressure loading in addition to earth pressure loads. To avoid extra loading from ground water pressure in soils with limited permeability, it can be useful to arrange drainage windows within secant bored pile walls by means of single primary piles filled with porous concrete without reinforcement cages, which usually have to be placed within casings in submerged conditions. This concrete may serve as a horizontal arch between the reinforced secondary piles, but it must however enable vertical draining between load carrying construction beams and the bottom of the excavated pit. In the present submission, the results of several material tests with different mix designs of porous concrete with certain admixtures are presented together with first and important experiences with a wellsuited placement technique for porous concrete casings in small- and large-scale laboratory tests. It can be shown that the usual placement technique of employing a tremie pipe is not suited for this type of unsaturated concrete. Instead, pouring with a particular kind of cone and an open conductor pipe has proven successful.Additionally, special testing methods are currently developed for judging the suitability of the desired concrete mix design in preparation for an upcoming real-scale experimental pile installation in Germany.1. INTRODUCTIONRetaining walls are often built as secant bored pile walls in order to cut off aquifers saturated with groundwater against deep building pits. In soil types with relatively low permeability, however, seepage flow may be permitted, because the quantity of groundwater to be pumped is limited, and the range of influence due to dewatering is not reaching far. Thus, the hydrostatic water pressure on the retaining wall can be considerably reduced, leading to a more economic design (see Fig. 1).In unsaturated soils, the dewatering effect can be achieved by means of porous pervious concrete with a uniform grainsize distribution of aggregates typically placed in a borehole under dry conditions. With regard to the use of porous concrete to be placed at the ground surface in road pavement applications, experience is sufficiently available as shown, for instance, by Neithalath et el. (2010). However placing the porous concrete in a bored pile using a tremie pipe under submerged conditions is a challenge and a completely new approach, because there is a considerable risk of segregation of the fresh concrete, separating the cement lime paste from the aggregates when in contact with water and leaving only neat gravel on the one hand as well as a tight cemented area at the bottom of the pile on the other hand. If this concrete placement is successful, additional dewatering by means of extra wells behind the retaining wall can be avoided. Of course the seepage flow in the adjacent soil needs to be regarded seriously."

Jan 1, 2017

Many mining operations generate seismic signals. They come from blasting and from underground mine failures such as rockbursts, longwall first caves, coal bumps and pillar collapses. Traditionally, seismic motions have been of concern on a local scale because they could create damage to structures at the mine site or at neighboring locations. Recently, there has been much interest in the Comprehensive Nu-clear-Test-Ban Treaty (CTBT). It prohibits any kind of nuclear explosion, anywhere. So distinguishing signals of mining operations from a possible nuclear explosion becomes important. An international monitoring system (IMS) is being implemented to verify the Treaty when it is ratified. It includes a large number of seismic stations capable of recording signals at regional (200 to 2,000 km or 124 to 1,240miles) and teleseismic (more than 2,000 km or 1,240 miles) distances.

Jan 1, 2000

SOME notes on the works of the Electrolytic Refining and Smelting Company of Australia will no doubt be of interest to members of the Institute, more especially as much of the work is new to Australasia. As many of the members who may read this paper have not been in a position to visit works of this kind, and are consequently not thoroughly acquainted with all the operations carried on, the author has taken the liberty, in some cases, to enter into explanation which would otherwise be unnecessary. The works are situated at Port Kembla (New South Wales), about fifty miles south of Sydney, and are approachable both by rail and water. The Government has recently built a low-level jetty upwards of five hundred feet long, and intends installing at an early date an electrically operated portable crane to facilitate the handling of material to and from the boats. This will mean: a considerable reduction in the length of time that boats are laid up at the jetty. There are also under construction two breakwaters, which, when complete, will materially assist shipping operation...

Jan 1, 1910

Northern Iron Ltd (NIL) is an Australian listed company that recently brought the historic Sydvaranger open pit Magnetite Mine (the Project) in Northern Norway successfully back into production. NIL made the decision to operate the Project on an owner mining basis, due to limited large scale mining expertise amongst Norwegian mining contractors, a long mine life, a limited range in planned mining rate and to minimise costs. As a new mine operator in a country where labour practices are strictly regulated, there was the desire to reduce the risk associated employing and managing skilled personnel. This was achieved by coupling the purchase of the required mining equipment from the original equipment manufacturer's (OEM) regional dealers with OEM supported Maintenance and Repair Contracts (MARC). This paper examines the process that was followed to implement an owner mining operation in a short time frame; approximately 12 months from the initial requests for quotation to actual delivery of mining equipment to site, and some of the challenges faced. By following a formal and well-tested process, not only was the implementation achieved in the set time frame, but significant value was added through the cost savings achieved in the equipment purchase price and MARC rates that were negotiated through this process.

May 1, 2010