Search Documents

By H Kurth

High specification Prompt Gamma Neutron Activation Analysis (PGNAA) has been successfully applied to conveyed flows at iron ore operations since 2002 to representatively measure ore quality for improved quality management and process control. While the PGNAA technique has changed little since that time, significant improvements have been made in measurement capability. Elements previously unable to be measured well or at all using this technique are now measurable and one of these is phosphorus. Aluminium and magnesium are also key elements in addition to calcium and silicon in determining sinter basicity in ironmaking. Other elements measured routinely in iron ores include iron, carbon, potassium, sulfur and manganese. The benefits of representative measurement cannot be overstated as iron ore mining operations in South Africa, Europe, Australia, Asia and the Americas have discovered. The technology is applicable to any conveyed flow where elemental analysis in real time assists with quality management, from raw materials in ironmaking through to scrap steel in steelmaking and coal quality for coke-making. Major benefits are realised when raw material processing is optimised and this often includes diversion of material meeting a required quality so it can bypass unnecessary processing. This includes waste rock which can be diverted from a plant feed stream in 30 sec increments or ore that meets product quality being diverted to bypass beneficiation. Analysers are successfully utilised to identify ore types that assist with upgrade optimisation in jig plants; measuring feed, product and discard flows to also account for metal content. Product flows to stockpiles help manage production flows and stockpile qualities for different products and assist in blending ores into trains or ships to confirm specification compliance. Technologies can be used in magnetite processing but are predominantly used in hematite and goethite ore processing operations. The paper details examples of the above applications at various operational sites providing estimates of economic benefit as well as operational improvements.

Sep 18, 2023

By C R. Fountain, R J. Sinclair

The zinc industry is dominated by the electrolytic zinc (EZ) process. The EZ process has a low tolerance for impurities, resulting in tight concentrate specifications. Many mining companies sacrifice zinc recovery in order to meet smelter specifications. Some have ore-bodies that cannot be economically developed because too much metal has to be sacrificed, or it is just not possible to meet the specification. The BUKA Zinc Process (BZP) has been developed as a method of producing high-quality zinc from a wide range of concentrates. It can have lower capital and operating costs than the conventional zinc and lead production routes. Advantages accrue from increases in metal recovery during concentrating, smelting and refining; the elimination of most of the capital and operating costs associated with lead smelting; reduced transport costs; lower zinc refining costs; reduced refinery residue disposal costs; and reduced future environmental liabilities. This paper describes results of testwork that has been undertaken to demonstrate the viability of the BZP on both test rig and laboratory-bench scale.

Jan 1, 1998

By G R. Hancock, J F. Martín Duque

Post-mining landscapes are required to geomorphologically and ecologically integrate with their surrounds (Martín Duque et al., 2015). Designing and constructing an erosionally stable landform is the first and arguably most important part of the rehabilitation process. Without an erosionally stable landform topsoil and nutrients are lost, shallow groundwater is depleted as well as when excessive erosion occurs, expose suboptimal materials. Here we examine the ideas of geomorphic design and rehabilitation and how the landform can be tested and enhanced using computer based design and landscape evolution models. Specifically we evaluate the complementary capabilities of landscape modelling (SIBERIA) (Hancock and Willgoose, 2017) and geomorphic design software (Natural Regrade with GeoFluv) (Bugosh et al., 2016), in order to maximise erosional stability on post-mining landscapes (Zapico et al., 2018). CITATION:Hancock, G R and Martín Duque, J F, 2018. Geomorphic design and landscape evolution modelling for best practice mine rehabilitation, in Proceedings Life-of-Mine 2018, pp 119–121 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By M Freeman

In a visionary move, the Planning Commission and the Ministry for Planning in Western Australia decided to invite three extractive industry quarry operators, local government councils and State Government departments (Minerals and Energy, Environmental Protection, South West Development Commission) to contribute jointly to study the impacts of blasting on areas surrounding basalt quarries in the Bunbury region of WA. The results of the study will help establish suitable zones in which land uses will be controlled under a proposed Greater Bunbury Region Scheme and in local planning schemes, to minimise conflicting land uses. This paper discusses the blasting program conducted to characterise and model the vibration behaviour of the rock under the effects of pilot-scale and full production blasting, and highlights some of the benefits achievable when a thorough blasting impact program and assessment is conducted at the planning stages of land-use establishment.

Jan 1, 2001

By W J. Shaw

Mining operations must become more predictable to overcome the volatility that has characterised the mining industry. Comparisons of production against predictions will become more consistent as mining operations merge and expand, as personnel move from site to site, and as public reporting of reconciliations becomes more prevalent. More consistent approaches are already being seen in the industry using the terminology used in this paper and elsewhere.Examples are provided that show how use of the waterfall chart as a reconciliation management tool can provide objective analysis to improve practices.Geometallurgical modelling is becoming more useful and will continue to do so as we move from a few bulk samples to better interpretation of material properties from geological mapping and drill sampling. Reconciliation has evolved to the stage where predictions of geometallurgical properties to optimise mill performance, and of geotechnical properties derived from better 3D geological models, should also be reconciled.CITATION:Shaw, W J, 2014. Reconciliation – outcomes and expectations, in Proceedings Ninth International Mining Geology Conference 2014 , pp 123–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

The Quiruvilca district, located 80 km east of Trujillo in north central Peru (Fig. 1), has produced over eight million tons of Cu-Pb- Zn-Ag ore from approximately 60 veins since 1789. "Quiruvilca means "sacred tooth" in Quechua, the lingua franca of the Incas. The expression refers to a prominent volcanic neck exposed several kilometers northeast of the district. The district covers an area of approx- imately 24 km2. The mines occupy the eastern quarter; workings underlie 6.7 km2 with a developed vertical range of 280 m. All pres- ently operating workings are owned by Corpora- cion Minera Nor Peru S.A., a subsidiary of ASARCO Incorporated. The oldest rocks in the area are Lower Cretaceous clastic sedimentary rocks exposed 7 km to the east. Lithologies include sand- stone, siltstone, shale, coal seams, and carbonates (Cossio, 1964). These rocks were folded and affected by regional low-grade metamorphism during the early Tertiary, 40-65 m.y. (Hollister, 1977).

Jan 1, 1987

By C Dell

Hillgrove, situated on the New England plateau of New South Wales, is an area rich in history and resources. Key resources are predominantly antimony, gold and scheelite and the area surrounding the historical field is environmentally sensitive and topographically challenging. Since acquiring the Hillgrove leases, Straits Hillgrove Gold has undertaken a significant exploration program on these historical mining areas with the goal to return the field to production. This exploration program has enabled Straits to significantly increase the resource base and has subsequently enabled the planned redevelopment of Hillgrove to be realised. In October 2006, installation of mining infrastructure and the initial stripping of existing development had commenced. To successfully redevelop Hillgrove, Straits has had to adopt a highly mechanised, trackless, diesel mining operation which will see the production rate commence at an initial rate of 250 kt/a of ore from a narrow vein environment. This ore will be processed on site to produce antimony metal, gold bullion and a scheelite concentrate.

Jan 1, 2008

By H J. J Boshoff

Pit lakes, as a final void after completing open cut mining, are in most cases unavoidable. Initial mine designs and approvals require consideration and assessment of closure objectives, legislation and stakeholder acceptance to ensure suitable understanding of the closure liability. Mining companies undertake studies and engineering during the planning, operational and closure stages of mining to identify closure options for the final voids, which would be sustainable. Without adequate planning prior to and during the life of the mine, options during the closure stage become limited resulting in costly closure works or long-term liabilities. Engineering consultants provide a specialist service in the assessment of long-term pit lake water levels and characteristics. Ongoing advances in mining methodology and technology, coupled with improved data collection and data management aid in a better understanding of the complexities in estimating long-term pit lake water levels and characteristics. Closure objectives developed during the planning stage sets the requirements for long-term pit lake water levels, which could require maintaining a water level and pit water or discharge water quality. A variety of approaches could be used to assess these closure scenarios each requiring specific data and methodologies. Typically, limited data is available during the planning stage, which results in assumptions based on past experience and relevant case studies. Closure assessments are revisited during the life of mine and leading up to the closure stage, during which additional site-specific data is available improving the accuracy of the assessments.CITATION:Boshoff, H J J, 2018. Assessment of approaches, data requirements and methodologies for estimating long-term pit lake water levels, in Proceedings Life-of-Mine 2018, pp 28–31 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

From the mid-1970s ZC Mines at Broken Hill had a policy to increase ore production rates at progressively lower head grades. In the mid-1980s the mine suffered crippling losses at a time of low metal prices. An important contributory factor was the inherent geological distribution of metal grades in the seven defined ore lenses. Grades are bimodal, and perhaps, trimodal, in each ore lens. There is a tonnage deficiency in the critical cut-off grade zone of 7-10% Pb+Zn. Lowering the cut-off grade introduced siliceous and pyrrhotitic material which resulted in significantly poorer metallurgical performance. This example shows that the mine geologist needs to know the grade distribution of the orebody and to convey clearly the downstream implications of changes in the head grade.

Jan 1, 1990

By T Horberry

This paper describes work conducted as part of an overall research project that aims to identify current and emerging trends in the development of automation and remote mining technologies, and to provide an operator-centred perspective to the design and deployment of such systems. More specifically, this paper outlines a research and development process being constructed to examine the issues of the human skills and capabilities required to operate or maintain automated/remote controlled mobile mining equipment. A human factors approach presented here, where the focus is upon designing equipment interfaces to fit operators, rather than purely designing and deploying the equipment based on a technology-centred approach. However, the importance of training to help develop the required skills and capabilities is also emphasised.The work built on a full review of the literature about the effects of automation in mining and elsewhere, extensive interviews with different stakeholders in mining automation and recognised best practice regarding designing for the human element in automated systems. The human element research and development process proposed is in four stages, ranging from understanding the tasks involved in both manual and automated equipment operation through to user trials to ensure that the automated systems are acceptable to operators and are fit for purpose.It is outside the scope of the current paper to present the full data collection described by this four stage process, but an overview of what will be collected is presented. As such, this paper focuses on the broad methods being developed, rather than the specific results to be obtained. The ultimate objective is to apply a broad ‘technology assessment’ approach to the design, deployment and evaluation of automated mining technologies, in particular by considering the user-centred design implications of these technologies.

Nov 22, 2011

By D Hatton, S Wilson, F Orrante, M Taghimohammadi, F van der Walt, N Arslan, M Westcott

"Cayeli Bakir Isletmeleri is an underground copper-zinc mine in turkey. The ore is highly variable with feed grades ranging from 1–4 per cent copper and 1–10 per cent zinc. Due to this variability, ore characterisation and blending strategies are crucial for performance optimisation.This paper presents a case study for a multidisciplinary approach to process optimisation, integrating Geometallurgical and advanced control methods to achieve optimised plant performance. The results from comprehensive metallurgical tests and surveys were used to develop a mathematical model utilising SGS’s Integrated Geometallurgical Simulator® (version number 2.5.24.0). The model was employed to determine the most appropriate operational settings required to ensure that optimised grades and recoveries are achieved for each ore type.SGS’s Modular Expert Technology (MET) expert system was then implemented to target these optimum operational ranges utilising online grade and froth velocity measurements. The successful conversion and deployment of the modelled process parameters into an expert system has resulted in significant improvements in overall recovery and circuit stability.Citation:Arslan, N, Westcott, M, van der Walt, F, Hatton, D, Taghimohammadi, M, Orrante, F and Wilson, S, 2016. A Multidisciplinary Approach to the Optimisation and Control of a Copper-zinc Grinding and Flotation Circuit, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 115–122 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By P M. Hetherington, M P. Murphy, K E. Crook, F Pym

Resource characterisation is critical for informed decisions in both strategic and operational space. The sources of information for resource characterisation are limited by: direct measurement of resource attributes, such as grades, rock-types, mineralogy, and are available only from sparse locations, ie drill holes; or indirect geophysical measurements such as seismic, gravity or electro[1]magnetic survey. Data collection tools, methods, and processing technologies are constantly improving providing a broad spectrum of options for data collection strategies. The cost of each data survey varies from thousands to millions of dollars with the value of each additional data having diminishing return for a particular business decision. The value of information analysis provides the optimal decision on data collection strategy within a limited available budget. This work presents an example of value of information analysis for new Blast Hole Assay Tool (BHAT) and Reverse Circulation Grade Control (RCGC) data used in addition to the wider spaced exploration data. The value of information is quantified in terms of reduction of grade uncertainty, ore loss and dilution by comparing different combinations of data collection methods. Four different strategies were considered: exploration samples in addition to 50 per cent of blastholes surveyed with BHAT, exploration samples in addition to 33 per cent of blastholes surveyed with BHAT, exploration with wide-spaced RCGC data, and exploration without additional grade control. For each strategy the observed values have been simulated using advanced multivariate geostatistical simulations and compared with simulated ground truth models. The calculated uncertainty, ore loss and dilution informed the optimal data collection strategy. Opportunity to reduce sample density from the nominal 50 per cent of drill holes was evaluated.

Mar 22, 2022

By S Leichliter

La Colosa, Colombia is a large gold-porphyry deposit currently undergoing feasibility studies by AngloGold Ashanti. This period of development allows the opportunity to apply innovative and emerging testing and modelling methods to provide a predictive geometallurgical recovery model for the deposit. By partnering with the AMIRA P843A Geometallurgical Mapping and Mine Modelling (GeMIII) research project, the geological and mineralogical data are analysed with respect to liberation and recovery methods. This will allow the variability in the geology and mineralogy of the deposit and key relationships recognised in the data to be included in the development of a model to help predict recoveries of the gold. Many aspects of the gold mineralisation such as gold paragenesis, associations, grain size and texture are determined and analysed using optical microscopy, Mineral Liberation Analysis (MLA), and laser ablation (LA-ICP-MS). At La Colosa the gold has been located in sulfides (eg pyrite, pyrrhotite, and chalcopyrite), silicates, along silicate phase boundaries, and among the pyrite-rich intermediate argillic alteration. Further testing and analysis will also determine if ‘invisible’ gold is present in the pyrite, pyrrhotite, and chalcopyrite. Recovery methods can also be determined and tested after combining the results of mineralogy tests with other data (eg results of comminution tests). Indices for the mineralisation and recovery are developed using image analysis and analytical testing. These indices are correlated with recovery data from the company to develop a predictive block model for recovery. The goal is to develop cost-effective, efficient methods to analyse the mineralogy and geology of the deposit; understand the variability in the mineralogy, geology, and recovery; and construct a predictive geometallurgical recovery model.

Sep 5, 2011

By Harvey T, Kizil M, Bride J

Hydrogen sulphide (H2S) as a seam gas has occurred in several locations in the German Creek seam at Southern Colliery. This paper overviews the techniques developed to quantify the H2S content of the seam, overviews research into controlling and reducing H2S emissions from the seam, and details the procedures used to mine through the HZS zone in 702 longwall panel. Learning points from research and mining experience are reviewed for application in the next longwall block.

Jan 1, 1998

By P Joyce, D R. Cooke

The Dinkidi Cu-Au porphyry deposit is situated in the Caraballo Range of North Luzon, Philippines. Although comparatively small, Dinkidi has unusually high gold grades with drilling by Climax-Arimco Mining Corporation delineating a 110 Mt orebody at 1.2 g/t gold and 0.5 per cent copper. The magmatic-hydrothermal evolution of Dinkidi records a distinctive switch in mineralisation from an early orthoclase-dominated Au-rich assemblage, typical of alkaline porphyry systems, to a later quartz stockwork Au-Cu rich assemblage typical of most calc-alkaline to shoshonitic porphyry systems. The early orthoclase-dominated stage is associated with the intrusion and crystallisation of a variably-textured clinopyroxene-syenite dyke that contains high-grade (5 - 20 g/t) gold mineralisation. We consider this dyke to be a Cu-Au porphyry analogue to the pegmatites found in granitic systems. Dinkidi is hosted within the Early Miocene Didipio Igneous Complex. This alkaline igneous complex is comprised of early unmineralised gabbros (pyroxene-plagioclase cumulates), clinopyroxenites (pyroxene cummulates), diorites and monzodiorites that have been intruded by a large, weakly mineralised monzonite pluton. The Dinkidi deposit is located at the southern margin of the monzonite pluton. Mineralisation is hosted within a composite monzonite stock. Within the stock, an 800 metres by ~200 metres (plan section) elongate monzonite stock (Tunja Monzonite) predates and hosts the bulk of the Au-Cu mineralisation. This has been intruded by the thin (10 to 30 m wide), highly mineralised variably-textured magnetite- and clinopyroxene- phyric syenite pegmatite (the Balut Dyke). The youngest phases of the composite stock are leucocratic quartz-monzonite porphyry (Quan Porphyry) that grades texturally, in its core, into a post-mineralisation crystal-crowded quartz-syenite (Bufu Felsite). The late-stage Bufu Felsite is inferred to be the source of much of the Cu-Au mineralisation. The Didipio Igneous Complex has intruded a sequence of Late Oligocene alkaline andesitic lavas and volcaniclastics and overlying potassic dacitic lavas. Whole rock geochemical analyses indicate that the intrusions and the potassic dacite lavas in the surrounding region are co-magmatic. Five main stages of hydrothermal activity are recorded at Dinkidi. An unmineralised K-silicate (biotite-magnetite) alteration assemblage formed during the intrusion of the Tunja Monzonite stock. The diorites surrounding the stock display intense selectively pervasive biotite and magnetite alteration and are cut by an extensive network of orthoclase veins and monzonite dykes. The orthoclase-dominated assemblages of Stage Two carry substantial high-grade Au mineralisation and are associated with the intrusion of the Balut Dyke. The emplacement of this unusual dyke is associated with emplacement of pegmatitic clinopyroxene-orthoclase-magnetite¦sulphide dykes, localised orthoclase flooding along the margins of the dyke, and subsequent emplacement of an extensive orthoclase-actinolite-bornite¦chalcopyrite-fluorite stock-work, and development of widespread selectively pervasive actinolite alteration. The main stage of Au-Cu mineralisation at Dinkidi is intimately associated with the intrusion and initial crystallisation of the leuco-monzonite porphyry (Quan Porphyry) and emplacement of a quartz stockwork followed by carbonate-sulphide deposition and intense vein-related sericite and carbonate alteration assemblages. The quartz stockwork formed synchronous with the deposition of the æBugoy QuartzoliteÆ, a very coarse grained mosaic of quartz-orthoclase-perthite along the walls and top of the crystallising intrusion. Stage 3 was terminated by crystallisation of the distinctively vuggy Bufu quartz-syenite phase in the core of the intrusive, with associated antiperthite veins, and the subsequent explosive brecciation of the roof of the intrusion, forming a quartz-fragment breccia from the Bugoy Quartzolite. Retrograde metasomatism during Stage Four was intimately associated with the emplacement of extensive, late-stage carbonate, silica and zeolite veins and widespread selectively pervasive carbonate alteration. The last hydrothermal stage at Dinkidi, Stage 5, is comprised of strong selectively pervasive clay alteration and is associated with fault-related brecciation of the Dinkidi stock.

Jan 1, 1999

By P Malkin, S Thomas, P M. Stone, D Kostyuk

In open pit mining, it is common that the bottleneck to productivity and profit lies in the truck-shovel mining operation, especially as strip ratios and mining intensity have increased with resource depletion and advances in mining equipment capabilities. This paper outlines a study of truck-shovel productivity using a new proprietary discrete event simulation platform for truck-shovel operations called MineDES. The study will specifically address the issue of whether truck queuing at shovels should be considered productive or not, and how mining engineers can determine the optimal truck fleet size for specific operational configurations.The MineDES simulation platform will be described and illustrated, highlighting the features that make it an appropriate tool for conducting the experiments at the heart of this study. The study encompasses a set of experiments, consisting of a number of simple truck-shovel operational scenarios for a benchmark open pit mining operation, which are simulated using MineDES. Each experiment is designed to highlight different factors, which are most important in calculating the ideal truck fleet size and for understanding the marginal productive impact of each additional truck added to the fleet. The scenarios will principally address the issues of how different types and levels of unscheduled equipment downtime and process variation, combined with the traffic delays/congestion arising in more intense mining operations, will affect productivity. The results of the experiments are interpreted using a simple fit-for-purpose cost and revenue model in order to highlight the indicative cost of over- or under-trucked configurations.The study has found that the optimal fleet size that maximises productivity and value will, in the presence of even small process variation, lead to non-zero trucks queuing at shovels on average. As process variations and unscheduled downtime events increase in the truck-shovel system, the required fleet size to optimise productivity and value increases. MineDES provides a convenient platform for quantifying this for real operations.CITATION:Kostyuk, D, Thomas, S, Malkin, P and Stone, P M, 2014. Is truck queuing productive?, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 267–274 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By Y Xu, J Hacker, D J. Williams

Shear strength parameters of compacted clay liners are needed to analyse the stability of mine waste dumps containing compacted clay liners as sealing layers for potentially acid forming waste rock. A representative clay sample was supplied by McArthur River Mine from the mine site in the Northern Territory, Australia, with an average as-supplied gravimetric moisture content of about 13.6%. The clay was compacted in a 100 mm by 100 mm direct shear box at the as-supplied moisture content to a dry density of 1.85 t/m3, representing the field compaction specification adopted by the mine. To determine the peak and ultimate shear strengths of the compacted clay, single-stage direct shear testing was carried out at nominal initial normal stresses of 50 kPa, 100 kPa and 200 kPa, representing shallow depths of burial in the North Overburden Emplacement Facility of about 2.8 m, 5.6 m and 11.1 m, respectively (assuming a waste rock wet unit weight of 18 kN/m3). Three shearing rates of 1 mm/min (rapid), 0.1 mm/min (intermediate) and 0.01 mm/min (slow) were applied to study the influence of shearing rate on shear strength. In addition, the development of a residual shear plane was tested by reversal and re-shearing in the direct shear box. In the first shearing, the peak and ultimate shear strengths are determined. The normal load was then removed and the box rewound to its starting position. The normal load was then re-applied and the specimen re-sheared. Two reversals were applied to each specimen, and it was found that there was no significant reduction in shear strength. Finally, based on a range of shear strengths obtained in the laboratory for McArthur River Mine clay and other materials by various laboratories over time, shear strength parameters for the compacted clay were recommended for use by the mine.CITATION:Xu, Y, Williams, D J and Hacker, J, 2018. Shear strength of compacted clay liner at McArthur River Mine, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 208–219 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By M E. Karmis

Traditional coal mining planning seldom considers key æsustainability factorsÆ such as: societal impacts in the area; jobs (both created and lost); dislocation of towns and residences; impact on neighbouring communities and individuals; infrastructure concerns; post-mining land use (except when limited by law or other factors); habitat disruption and reconstruction; long-term economic impacts in the community; and net long-term community benefit. This paper presents a systems engineering approach based on the premise that systems can only be optimised if all factors are considered at one time. In theory, coal mine designs can be optimised for return on investment, environmental protection and sustainability. Using this approach, the permitting process may be quicker and less costly, relationships with neighbours, communities, environmental groups may be improved, the mining industry may be seen as a positive for the short-term and long-term and the mining industry may increase profits. This paper discusses geographic information system (GIS) tools that may be used to incorporate ecological and other sustainable development concerns into models of coal mine sustainability performance. Along with coal production cost and value information obtained from past and present coal mining operations, GIS data are used to develop mathematical cost and equation models. By analysis of on-the-ground data, the parameters to be included in these models are identified, the relationships between these parameters quantified and the models developed. The paper also discusses the next phases of the work to be completed once the data is obtained and the models are adjusted and validated. At that time, site-specific information will be input into the models and the approach to mining a particular property evaluated and optimised for financial rate-of-return and other desired outcomes, such as preservation or enhancement of sustainability values. Finally, the paper will examine how this approach can be combined with traditional mining engineering considerations in order to develop an optimised mine plan for a specific mining property.

Jan 1, 2009

By G McCullough, J Bassan, d P. Knights, C T. Farrelly

By 2045, carbon-neutral mines will be economically producing products that are vital for the world’s transition to renewable energy. After overcoming significant technical challenges (and the investment of significant capital), leaders have successfully eliminated the use of diesel and other fossil fuels by introducing a wide range of new decarbonisation technologies. These leaders will be reaping the benefits of lower production costs (resulting from elimination of diesel), stable and predictable operations, and easier access to capital for their future projects. This paper describes a future scenario of how a net zero carbon and zero-entry mine could operate by taking maximum advantage of technologies in development or already proven in other industries. Some miners have been unsuccessful in their efforts to reach decarbonisation targets. Instead, they have been forced to close or offload their assets to be acquired by operators with better sustainability credentials, or, in some cases, to indigenous or community-based enterprises with vested interest in making operations viable and sustainable. Regardless of ownership structure, all successful mining operations will have fostered strong and positive community relations that bring education, health, security and economic development opportunities to the communities while respecting their traditions, land-uses and culture. As shallow, easy to mine deposits have become scarce, the majority of new mines are underground. Advancements in electric underground technology and the feasibility of ‘zero entry mining’ (with no personnel in active mining zones) has made it increasingly possible to economically operate underground mines, even at shallow depths. The newest mines have a near zero footprint on the surface, produce no harmful by-products, and are employing in-place or in situ methods of extraction that are efficient and low impact. Surface land-uses, such as agriculture and renewable energy generation, continue in the immediate vicinity of the mine, with no significant ground disturbance, community impact or environmental footprint.

Sep 1, 2024

By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016