Search Documents

Financial theory often takes some time to penetrate industry and when it does it can result in a paradigm shift in valuations and mental models. The Black Scholes option valuation was first published in 1973, although the authors were only awarded a Nobel Prize in 1997. The valuation of real options has been applied to the oil and gas industry for some time, however it has only recently been more widely applied to the non-oil, mineral resource sector. The use of real option valuation (ROV) for the valuation of marginal and short mine life resource projects is a more useful valuation tool than the conventional DCF, NPV valuation tool. The application of ROV has major implications for corporate strategy. It generally favours equity over debt funding and non-hedging over hedging. A retrospective assessment of the successful development of the Lennard Shelf Operations demonstrates the concepts of implementing real options and the value destruction of limiting operational flexibility through debt and hedging activities.

Jan 1, 2003

Recent exploratory work has greatly enlarged our knowledge of the geology of the sedimentary basins of Western Australia. The most pros-pective of these for oil explorati on are believed to be the Canning, Carnarvon, 'and Perth Basins.The search for oil. in, the Canning Basin has fora the most part been concentrated in" the western part, where four main structural units are now recognized - the Lennard Shelf, Fitzroy Trough, Jurgurra Terrace, and-South Cariizin.g Basin. Of these the Leonard Shelf may. be the'most prospective. The principal objective on the Shelf is the Devonian sequence, which in-cludes well'developed reef complexes. The Lower Carboniferous is regarded., as a further objective, as it contained small quantities of oil in theMeda No. I well.In the. Carnarvon Basin most explorati on has been conducted in the coastal belt of'Tertiary folding, especially in the Cape Range-Rough Range area. -The discovery of oil in the first test well. drilled.in the-basin - Rough Range no. 1 - raised great hopes, for the quick discovery of a ecmuercial field. However the other wells on Rough Range have been dry, and no discoveries have-been made in the-wells drilled on other anticlines.in the basin.

Jan 1, 1962

Traditional methods for monitoring, and hence controlling, pyrometallurgical processes rely heavily upon the skill and experience of operators. A skilled operator will usually achieve consistent, though often conservative, results, whilst an un-skilled operator will require considerable time and training to achieve the same results. Semtech Metallurgy AB have demonstrated that continuous and precise control of pyrometallurgical processes can be achieved through on-line analysis of pyrometallurgical flame off-gas using optical spectroscopy. The feasibility of the technology has been demonstrated on a large number of full-scale tests at production plants and by several commercial installations. Evidence suggests that installation of this technology, called Semtech Optical Production Control (OPC), has resulted in considerable economic benefits to the plant efficiency and asset life. These economic benefits are believed to be a direct result of improved objective on-line control. Technically the following benefits have been demonstrated: improved metal grade control, reduced metal losses, reduced processing time, and improved personnel safety. SemtechÆs OPC is a non-intrusive technology which relies on the fact that the composition of the vapour phase above a high temperature melt is closely related to the instantaneous status of the melt. This enables on-line real-time analysis of the furnace melt to accurately determine melt status and in particular reaction endpoints. Originally developed for on-line monitoring of copper converting in a Pierce-Smith vessel the field of applications for the technology is steadily growing. This paper introduces the Semtech OPC technology; discusses various applications and outlines the demonstrated benefits.

Jan 1, 2002

By C P. Kramers

The need to provide a sufficient quality and quantity of backfill continues to increase in South Africa, particularly as related to the increasing depth of mining. More and more applications require well designed fill systems either as classified or cemented backfill, and in some applications even tailings/aggregate based backfills. The paper discusses developments in backfill technology in South Africa with special emphasis on reliable system designs and operations, particularly as related to the preparation and hydraulic transportation aspects. Approaches for the alleviation of previous problems associated with premature pipe failures in vertical shaft columns for the distribution of tailings based backfills are discussed. Resulting from CSIRÆs developmental work, reliable full-flow systems, which can operate at low system pressures, have become a common practice, provided that backfill flowrates and internal pipe sizes are well matched. This aspect is reviewed. With regard to the tailings/aggregate based backfills the paper reviews some of the results of comprehensive in situ monitoring and the development of such systems. It is shown that a thorough understanding of the effects of aggregate top size, fines content and slurry relative density is required in order to ensure the restartability of temporarily shut-down pipelines. Some innovative technologies for the comminution of development waste underground to yield aggregate products potentially suitable or hydraulic transportation and backfilling, are briefly discussed.

Jan 1, 1998

By C McInnes

The key to successful flotation plant design, production planning and mine/mill optimisation is a solid understanding of the resource to be processed. As advocated by the authors of this paper, the main components of geometallurgical modelling of an orebody and its associated flotation plant are: an ore sampling program and subsequent laboratory testing of these samples in order to extract process model parameters; geostatistical distribution throughout the resource model of the process parameters; calibration of the plant via benchmarking (for existing operations); and plant simulation using a system of process models and the distributed metallurgical parameters (from step two) as the data set.It is important that the grinding and flotation models are linked. For example, a laboratory test conducted on a drill core sample, intended to represent a portion of the orebody, is conducted at a specific grind (represented by a P80). However, when that ore is actually processed through the plant it may well be (and in many cases most likely will be) at another P80. Additionally, the flotation plant residence time will often be determined solely by the grinding circuit capacity and feed slurry density. In the case of SAG mill û ball mill circuits, the fluctuations in tonnage and grind are known to be high. The modelling approach described in this paper allows for changes in the measured flotation kinetic parameters in order to reflect the expected grind as determined by the comminution process.

Jan 1, 2005

By C Hertle, B Goebel, R Fabre

The mining industry maintains a ælove-hateÆ relationship with water. Dewatering, aquifer, water disposal, irrigation, process water, tailings water, run-off water, seepage, leachate and sumps are all terms that are used on a daily basis in the mining industry, highlighting the numerous water usages on site and their associated quality. According to the Australian Bureau of Statistics (2001), each year the mining industry consumes over 530 000 ML of water. The increasing recognition of water as a limited and valuable commodity, and the associated environmental concerns with the management of water disposal to the environment has led the industry into improving on-site water management. Progressively, water balance models and water reuse strategies are being developed, incorporating more sophisticated water treatment processes. By way of example, membrane technologies, once restricted to industries such as the pharmaceutical industry or the drinking water industry, are now entering the mining world with the aim of producing clean water of suitable quality for ore processing or for advanced treatment prior to release to the environment. This paper will provide a review of the threats and opportunities linked to water use and recovery/reuse in the mining industry in Australia. It will open with an overview of current water usage and associated quality for various mineral industries and continue with identifying the threats and limitations associated with the quality of available water. It will then present how newly developed water treatment technologies and assessment tools can be incorporated into the system to enhance the recovery and reuse of water on site, reduce the risks associated with securing long-term water supply and further improve production, environment and safety (health risk control).

Jan 1, 2006

Timestudy analysis of mining operations at North Broken Hill Limited has been carried out by dissecting operations into small elemental components, and accurately timing these elements. Over a wide range of observations, this has enabled standard time values to be calculated for all underground work.The application of the standard values is in calculating performances as a measure of work output and Performance Controls are kept on approximately two-thirds of underground employees. Through the Controls it has been possible to stimulate supervisory action to improve low performance, and to reduce delays and lost time.The values are used to calculate contract" prices, and anomalies in previous prices have been adjusted on work values and not on arbitrary standards. In out-of-the-ordinary circumstances, the request for a timestudy investigation has been made by both operatives and foremen, and the contract set following the timestudy analysis has been to the satisfaction of both parties.The range of values enables contracts to be applied to work which was previously performed on a day basis, resulting in improved performance.A natural corollary of timestudy is the analysis of methods, and in some cases method improvements have been introduced.It is anticipated that further investigations will be made on methods.INTRODUCTIONIn 1953, a Timestudy analysis of mining operations at North Broken Hill Limited was commenced under the guidance of management consultants. Its aim was, to determine standard time values for specific operations, which would provide management with a measure of productivity beyond the existing measures of tons or feet of advance, and also to determine whether increased output was available under existing operating conditions.

Jan 1, 1956

Anyone who has driven backwards using only their rear view mirrors knows how difficult it is to avoid spinning the steering wheel the wrong way. So why run your mine that way? Traditionally Reconciliation has focused on the past performance of the mine. In this paper we make a case for Prognostication û the act of forecasting or predicting something in the future from present indications or signs. Reconciliation is a common activity carried out at most mines around the world. Countless geologists and engineers spend hours poised in front of spreadsheets diligently comparing how their resource/reserve model, grade control, and survey pick ups compare to what was actually produced. The result is usually a group of factors, which are applied to future estimates in an attempt to better predict how the operation may perform. Unfortunately, if the road ahead isnÆt the same as what you have just been down, youÆll be æoff-roadingÆ in no time! An alternative is to constantly collect and analyse key measurements that are used to calibrate critical estimates in an iterative process. When variations occur, they are analysed and corrective action is taken to ensure the estimates and measurements realign. In this way the estimates become forecasts and can then form the basis for decision making to ensure that what does happen in the future will match the plan or schedule. By automating this process, some mines have been able to be proactive on a daily basis in order to improve the overall performance of the operation. This paper outlines the key estimates and measurements used for reconciliation, details the characteristics of an automated web based information management system to facilitate the process and provides some insights about how mining operations might move beyond reconciliation.

Jan 1, 2003

By W L. Lane, T R. Yanske

The Doe Run Company and its predecessors have been mining for over 130 years utilising the room and pillar mining method. This method has left approximately 20 per cent of the orebody in the remaining pillars. The original design and planning for the mines did not include extensive pillar extraction. This paper summarises the introduction of the pillar extraction and backfill techniques which have been implemented since 1991. These techniques include the use of low cost fill walls up to 20 m in height and the use of slinger trucks for topping off the fill. In conjunction with these accomplishments, much experience and confidence has been gained in the use of numerical modelling as a method of predicting pillar stability as the mining of pillars progresses. These advances have led to pillar extraction becoming a major portion of the overall production and have added to the mine life of Doe RunÆs six operating mines.

Jan 1, 1998

Cannington is a Broken Hill type deposit discovered by BHP Minerals, now BHP Billiton, in 1990. The deposit is located south east of Cloncurry, Queensland, Australia. The deposit occurs in the Eastern succession of the Mount Isa Inlier within the Soldiers Cap Group. The mineralisation is interpreted to be confined to two limbs of a synform wrapped around a core amphibolite. The silver, lead and zinc mineralisation is zoned within silicic and mafic units. There is a strong association between silver and lead. The combination of mafic and silicic zoning, differing relative grades of silver, lead, zinc and iron, the relative position of the mineralisation on the synform limbs and differing metallurgical performances have resulted in the identification of ten different ore types, four of which are currently extracted. Ordinary Kriging (OK) is used as the resource estimation methodology for the silver, lead and zinc mineralisation. This modelling approach has performed quite well for resource reporting and long term mine planning. However the limitations of this modelling technique to adequately provide information on a local stope scale has lead to the geological staff to consider alternatives to this approach. Limitations of the current modelling method apply to both the geometry of the orebodies and the grade variability. Since early-2000 the Cannington geologists have been experimenting with modelling both the distribution of the mineralisation types using Probability Field conditional simulation (PF) and the distribution of grade using Sequential Gaussian Simulation (SGS). This approach to local modelling of mineralisation type and metal grades using conditional simulation (CS) has undergone a full evaluation by comparing grades estimated for stopes using both the (OK) resource model and conditional simulation (CS) models. The mine planning staff have used the CS derived models, and have found improvements in grade predictions over the currently utilised Ordinary Kriging û derived resource model.

Jan 1, 2003

Current NSW Government policy requires searching for more than just minerals during an exploration program û add endangered fauna and archaeological relics for a start.

Jan 1, 1995

Future metal prices play a direct role in both the economic evaluation and short to medium planning of a mine scheduling sequence. It is difficult to predict with accuracy the future price of volatile metal commodities, however, it is possible to fix some future metal price, outside of long term contracts by the selling of futures contracts through a commodities exchange. The futures contract represents a fixed amount of a speci- fied quality of a commodity for future delivery at a predetermined price. Several different types of hedginc are possible, one in particular which is best suited for mining companies. There are relative advantages and disadvantages when trading in futures contracts and particular reference is made to gold contracts on the Sydney Futures Exchange.

Jan 1, 1980

The inauguration of a geological department for the mines of North Broken Hill Limited necessitated the provision of accurate plans and sections upon which geological facts and projections might be plotted.Unfortunately, the basic data were very inadequate. For the British Section, sill survey plans were available, but no regular stope plans. Filling surveys had been preserved for many stopes, but on innumerable pieces of tracing linen, without heights of any kind, and not altogether reliable (as indicated by the finding of very inconsistent duplicates). For the bulk of the old stopes no plans exist at all. The expenditure of much time and patience has resulted in the co-ordination of most of the existing stope data, but the British Section must for the rest of its life continue to have surprises in store, as has been the case for many years past. Manufacture and preservation of stope records has, of course, been on a sound footing during recent years. No reliable cross-sections of the British Section were available.The Marsh, Junction, and Junction North Sections have for the most part very poor data. In the North Section, level plans were fairly reliable, and cross sections of the lode made for ore reserve purposes have been preserved for quite a few years. No floor plans of stopes were kept, however, until a couple of years ago.Diamond Drill records vary in quality. Practically none exist for the Junction and Junction North Sections. Logs have been kept for the British Section drill holes, but are...

Jan 1, 1940

By A J. Moore

The Australian Coal Association Research Program (ACARP) funded project, No C14057, entitled æEffect of Blasting on InfrastructureÆ, has been carried out with the objectives of providing methodologies for the assessment of the strength of infrastructure types and the establishment of responsible and realistic limits. Personnel from Melbourne, Newcastle and Swinburne Universities and Terrock Consulting Engineers conducted the project. Infrastructure types including: conveyors; power transmission towers; wooden power poles; electrical substations; pipelines, bridges; public access roads and underground workings have been investigated by both field studies and structural analysis. Railways, underground telecom cables, dams and industrial buildings have been reviewed using general structural analysis. This paper has been prepared for the mining industry to provide a progress report on the project.

Jan 1, 2007

The importance of orebody definition and optimisation in project development cannot be overstated. Inappropriate orebody definition is the single most important reason for project under performance and/or failure. Without the firm foundation of good orebody definition, the structure of a project cannot be assembled reliably. Many factors need to be considered in the process of orebody definition. These factors are well summed up in paragraph 123 of The Institute's Code and Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities (Valmin Code). The factors range from the initial geological data through assaying, geotechnical and hydrogeological factors to mining and metallurgical considerations. There are other factors which also need to be considered including marketing and environmental factors. This paper briefly reviews some of these factors and their impact on project development. Three examples are presented where one or more of these factors have had significant impact on the development of the Project.

Jan 1, 1997

Integrated chemical thermodynamic software and computerised databank systems have evolved over the last 15 years. The extent to which these systems have automated thermodynamic calculations relevant to extractive metallurgy is examined. The scope for further automation and the role of the expert consultant is discussed.

Jan 1, 1991

By Barnett LJ

The Kellogg slag fuming model is extended to apply to the Port Pirie plant which uses recuperative heating of secondary air. Exten- sive investigations of plant operations pro- vide parameters for use with the model, and verification that the resulting model provides simulation which is very close to actual plant performance. The model is used to_deter- mine optimum slag fuming operating conditions, and the results of several other investigations with the model are briefly described.

Jan 1, 1975

Modelling of Synergistic Effect of Cyanex 302 and D2EHPA in Zinc Solvent Extraction A comprehensive model is presented to predict the synergistic effect of D2EHPA and Cyanex 302 on co-extraction of zinc and manganese. The experimental results indicated that pH, temperature and the extractants ratio have strong effects on the extraction process. Correlations were proposed to predict the distribution coefficient of zinc and manganese between two phases at different conditions by multiple linear regression. The correlations were simplified by eliminating less important terms by analysis of variance. Optimum conditions (ie pH, temperature, extractants ratio and aqueous to oil phase volumetric ratio) for obtaining maximum separation of zinc from manganese at different zinc concentrations and number of extraction stages were determined. For finding the optimum condition genetic algorithm was used. Comparison the model estimations and the experimental data show that the presented model has good ability to predict the behaviours of zinc extraction system over Cyanex 302 and D2EHPA.

Sep 13, 2010

The limitations of the conventional practices, and their effects, in prospecting for and in the evaluation of alluvial gold deposits are briefly reviewed. Geophysical prospecting methods have demonstrated their complementary role in the delineation of deposits by reducing the number of boreholes which are primarily of a 'probing' type. Larger diameter boreholes, although more expensive on a linear basis, are much cheaper on a volume recovered basis. The need to have sufficient volume as well as number of samples is stressed. Classical statistical methods are not appropriate for such deposits as there is sufficient structure, or spatial correlation, to require the application of geostatistics. Quite reliable semi-variograms, but not in all cases, of the spherical scheme have been obtained. Subsequent kriging has, to date, been confined to unworked deposits: retrospective estimates to compare to production have not therefore been produced. However, the technique shows promise but indicates a considerably greater borehole density (of the conventional diameter) may be necessary to produce confident estimates. Used in conjunction with larger diameter boreholes, a lesser borehole density may be sufficient, through radical reductions of the sampling error.

Jan 1, 1977

Your Worship the Mayor, Ron McCullough; the Honourable Tony McGrady M.L.A., Minister for Minerals & Energy; distinguished guests, ladies and gentlemen.It's both a pleasure and a privilege to have been invited by the North West Queensland branch of the AusIMM to speak at a forum in Mount Isa to discuss the potential, and more importantly, the development of the great North West. I spent 25 years of my life proudly living and working in this part of the world, marvelling at its riches, exploring its potential, assisting in its development and responding to its challenges.As President of the North West Queensland branch of the AusIMM in the early 1970's I can clearly recall helping to organize a major symposium extolling the geological potential of the region, revealing the extensions of the Mount Isa copper orebody at depth and describing the potential of the then untapped Hilton Mine. Our optimism in the North West so obviously reflected two decades ago remains today.

Jan 1, 1993