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By K Aikawa, M Ito, K Mitsuhashi, Y Ebisu, J V. Satur, I Park, N Hiroyoshi, T Suto

Copper concentration using flotation is becoming more difficult, because of an increase in ore complexity accompanied by smaller grain sizes of copper minerals than usual, requiring finer grinding in order to liberate them. Project Arqueros, located at the mid northern part of Chile, is a copper mine project with an orebody consisting of various sulfides such as chalcopyrite, chalcocite, and bornite. Some of the copper minerals in Arqueros show low floatability mainly because of their fine grain size and resulted fine grinding size, and also because of the complex mineralogical composition. For example, chalcopyrite in Arqueros floats less than the other copper sulfide minerals. In this study we carried out some kinetic flotation tests with the Arqueros ore using a laboratory-scale forced air type flotation machine by varying the regrinding size. The products were assayed and mineralogically analysed to compare the minerals in their flotation behaviour with respect to size classes and liberation classes. The results were compared with a model calculation according to bubble size measurement. From the flotation testing and mineralogical analysis, it was found that copper minerals of the same size and liberation class floated at the same rate even with different regrinding size. At the same time the comparison between experiment and calculation showed that the fine particles of less than 5 µm size floated faster in actual than in the model applied. These results suggested that interactions among minerals of different species and of different sizes had positive impacts on the flotation rate of the fine particles. It indicates that this phenomenon can be applied to improve copper recovery in the project.

Aug 24, 2022

About 90 per cent of the pre-mining BIF-hosted iron ore resource of the Hamersley Province of Western Australia is of the Phanerozoic supergene martite-goethite type. The remaining ten per cent formed as supergene deposits at ~2000 ¦ 200 Ma, and were later modified by burial to form the Proterozoic martite-microplaty hematite ores. The supergene-metamorphic segment of this general unified model has been challenged by three recently published hypogene-based genetic models for the hematite ores, all requiring meteoric oxidation to produce the ore. The most recent and detailed, by Taylor et al (2001), is based on data from the small Southern Batter and North deposits of the Mount Tom Price mine. The authors proposed that during Stage 1 æoverpressured bicarbonate-saturated basin brines from the dolomite aquifer of the Wittenoom FormationÆ at 150 - 250¦C, dissolved free silica from BIF to produce a stratigraphically thinned, magnetite-carbonate-silicate-apatite rock. In Stage 2, meteoric oxidation of siderite to secondary microplaty hematite + ankerite, and magnetite to martite, at unspecified elevated temperatures and pressures, was followed by carbonate leaching (Stage 3). Finally, during Stage 4, weathering with removal of apatite, produced the typical low-phosphorus, porous martite-microplaty hematite ores of the Tom Price-Whaleback type. However, evidence of both microplaty hematite and martite reduced to magnetite, and of infill silica, apatite, and ferroan chlorite, with late-stage pyrite, in the pore space of martite-microplaty hematite ore, shows that the hydrothermal activity at Mount Tom Price is a post-ore event. Neither pyrite nor ferroan chlorite could resist the oxidation required to form hematite ore. Recrystallisation of microplaty hematite in these infilled zones to a typically coarser form than present in most of the normal ores, is a further supporting factor. A more credible, post-ore alternative to the hypogene genetic model is suggested here. Re-exposure to leaching by ground water of the metamorphosed ore deposits in the Phanerozoic resulted in the partial removal of remnant goethite. Localised modifications in the porous BIF/ore contact zones were driven by exothermic oxygen/pyrite/carbon reactions in the footwall Mt McRae Shale. Cool descending oxygenated meteoric water in the permeable ore horizons, acted as one limb of a thermal convective cell. In the other limb, heated reducing solutions rose through the permeable contact zones, to produce the observed localised modifications of BIF and ore. Expelled silica from the carbonatised BIF invaded adjacent porous ore to form erratic silicified ore zones, and to produce the local quartz vein systems found in the associated overlying BIF.

Jan 1, 2002

By C R. Stanley, D Lawie

The measurement of error in assays collected as part of a mineral exploration program or mining operation, including errors introduced during sampling, sample preparation, or geochemical analysis, historically has been undertaken in a variety of ways. Different parameters have been used to describe the magnitude of relative error and each of these parameters is related to the standard measure of relative error, the coefficient of variation. Calculation of the coefficient of variation can be undertaken in a variety of ways; however, only one produces unbiased estimates of measurement error: the root mean square coefficient of variation calculated from the individual coefficients of variation. CITATION:Lawie, D and Stanley, C R, 2012. Average relative error in geochemical determinations - Clarification, calculation and a plea for consistency, in Proceedings Sampling 2012 , pp 181-184 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By P J. Terbrugge

The concept of vertical pit mining has been developed as an alternative mining method for the exploitation from surface of small, vertical or near-vertical, massive orebodies down to depths of some 200 m, where ore extraction from conventional open pit excavations is rendered uneconomic due to high associated waste:ore mining ratio. Systematic lateral support maintains vertical pit sides, thereby minimising waste mining volumes. Stability analysis techniques have been developed for design of this lateral support, with the support quantum, primarily comprising long cable anchors, dependent upon country rock strength characteristics and pit configuration. Where the cost of support is less than the cost of the comparable conventional pit waste excavation, vertical pit mining becomes an economically viable alternative, additionally providing the benefit of reduced environmental impact and rehabilitation requirements for the mining area. The technique has been successfully applied for the mining of a chrome deposit in Zimbabwe to an 80 m depth, believed to be unique in the world, and a full feasibilty study for a 3000 m2 diamond pipe has been carried out for mining to 200 m depth.

Jan 1, 2000

By Low Russell

Mark Westfield, writing in The Australian on 16 May 1994 stated: The role of the independent expert is crucial to Australia's investment system. When it falls down, there can be very dramatic consequences. The scope of these consequences was dramatically illustrated in the decision of Rogers J. at first instance in Cambridge Credit Corporation v. Hutcheson (1983) 8 ACLR 123 when the auditors of the failed company were found liable for breach of contract and faced a damages award of $145 million, well in excess of their insurance cover. No comfort should be sought in the fact that this decision was overturned on appeal, for the result of the appeal rested on whether there had been a causal connection between the breach of contract which had occurred and the loss suffered, rather than on the fundamental principle of auditors' liability. Thus: Those who prepare experts' reports in company cases carry a heavy moral responsibility, whatever their legal duties may be... Unless high standards are observed by those who prepare these reports, there is a danger that systems established for the protection of the investing public will, in fact, operate to their detriment through reliance placed on those reports and on the reputations of those who furnish them. In lending his name, the expert will often, as in this case, be lending a name to conjure With.

Jan 1, 1995

By K H. Esbensen

The critical role of representative sampling is featured and illustrated by selected examples from the geosciences and beyond. As there already are many demonstrations of the potential (and potentially large) economic consequences of ignoring proper standards with respect to representativity, eg for mining and minerals processing companies, which æstand to lose millions of dollars by failing to optimise exploitation of their mineral resourcesÆ, such need no further iteration here.This keynote lecture, rather, takes a point of departure from the opposite perspective: what is to be gained by a scrupulous stand for representativity? Honesty, reputation, credibility, market advantage - is what!CITATION:Esbensen, K H, 2012. The critical role of representative sampling, in Proceedings Sampling 2012 , pp 9-12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By M I. Pownceby, M A. Rhamdhani, S Palanisamy, D Fellicia, B Satritama, G A. Brooks, A Ang

Metal production have long been using carbon sources as both reducing agents and energy sources. Consequently, the global extractive metal sector contributes significantly to greenhouse gas emissions, accounting for approximately 9.5 per cent. Hydrogen gas offers as a promising ecofriendly alternative to carbon in metallurgical processes, serving as both a reductant and energy supplier with a by-product being only water vapour. However, the implementation of molecular hydrogen faces certain challenges related to the thermodynamics and kinetics of metal oxide reduction. In addressing these challenges, researchers have explored the application of hydrogen plasma, generated by subjecting molecular hydrogen to high energy to produce atomic, ionic and excited hydrogen species. Hydrogen plasma offers thermodynamic and kinetic advantages over molecular hydrogen and carbon-based reductants, exhibiting lower standard Gibbs free energy of reaction and activation energy. Therefore, hydrogen plasma can produce metal in fewer steps, process any oxide feed and feed size and even be used to refine metals. Despite these advantages, challenges exist in utilising hydrogen plasma in extractive metallurgy, including electricity costs, potential reverse reactions and industrial-scale implementation. This study provides a mini review of prior research on hydrogen plasma for metal oxides reduction, particularly iron oxide, as well as state-of-the-art techniques for its use in extractive metallurgy applications by mentioning several reactor types. Future prospects and scale-up possibilities of the hydrogen plasma in extractive metallurgy will also be presented.

Aug 21, 2024

By C Parihar, R Garg, A Bhandari, S Bhandari

Blasting can impact the efficiency of entire downstream mining operation. Individual technology solutions for blasting have been available in the industry for many years but all of them only cater for certain aspects of blasting. Many of them are based on individual research and/or experiences. Some of the available software solutions are not suitable to be used in the field as that they need advanced skills or tools. Also, most do not take technology advancements like mobility, advanced data analytics, web solutions and integration into consideration. Hence, no technology platform is currently present in the industry that addresses all potential needs a blaster may need in an integrated manner.This paper presents an integrated solution that takes care of all aspects of blasting – design blasts according to mine plan; collect data after drilling has been carried out (as there is often difference in designed and actual drilled hole locations in the field); predict blast results in terms of fragmentation, flyrock, ground and air vibrations, wave front reinforcement and flyrock distance; and after assessment, allows changes in charging, delay timing and sequence. The technology solution is a secure, cloud-hosted, web-based software-as-a-service solution that can be accessed from anywhere. Also it has a mobile app, which is available for both Android and iPhone/iPad. The mobile app is also integrated with the web-based solution using application programming interface calls to the central data repository.Case studies for two limestone mines are presented where this solution is being used in its initial format. This software platform enabled analysis of the outcome from a previous blast pattern and then subsequently allowed optimisation of blasting operations based on historical data. Uses of this platform have resulted in improved key performance indicators in these two limestone mines. The mobile app as part of this platform enables extensive field blast data capture and analysis and also various predictions before a blast. Data collected include blast parameters, individual hole charging, initiation pattern, videos, photographs and vibration records for analysis/reporting. The key features of the solution are a blast designer, a detailed blast data collection/analysis and a series of environmental predictors. These predictors give blast results in terms of fragmentation, flyrock, ground and air vibrations and wave front reinforcement and take remedial steps before blasting to optimise and control adverse environmental impact. Many features, such as fragmentation predictor and mobility solution, are completely unique features that are not available elsewhere in such a field personnel-friendly manner.CITATION:Bhandari, S, Parihar, C, Garg, R and Bhandari, A, 2015. An integrated technology solution for optimised and environmentally-controlled blasts, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 393–400 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The An Shan iron ore deposit is the biggest low-grade oxidised iron deposit in China. Over the past ten years, about 120 SLon verticalring-pulsating high gradient magnetic separators units have been installed in An Shan to process oxidised iron ore. This paper describes how several plants have upgraded their old technologies to new technologies with SLon magnetic separators as the key equipment for controlling tails grades, including using reverse flotation as the key technology for iron concentrate cleaning, These plants have been modernised with beneficial results at low cost.

Jan 1, 2009

By M Berry

Many mining companies routinely use benchmarking to review their operational activities and associated costs. The aim is to measure operational performance against industry norms, and identify areas where a company is performing better or worse than industry best practice. The goal is continuous improvement.In general, mine technical services, including mining geology activities, are not routinely benchmarked. There are exceptions, such as the cost of drilling per metre and the average discovery cost per unit of metal, but generally mining geology activities are only included indirectly in mining benchmarking studies.Aspects of benchmarking can play a critical role in assisting mining geologists to improve the efficiency and effectiveness of the services they provide. Industry norms for many generic mining geology functions have not been developed and measured, and therefore it is impossible to use external benchmarking to assess performance against other mines. But when used in parallel with quantifying the value of mining geology functions and establishing strategic goals for the team, key components of benchmarking methodology can provide essential feedback on how a team is performing against these strategic goals.CITATION:Berry, M, 2014. Benchmarking – does it have a role in improving the performance of mining geology?, in Proceedings Ninth International Mining Geology Conference 2014 , pp 361–366 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

Following the Moura No 2 Wardens Court of Inquiry and subsequent changes to the Queensland Mining Legislation there is a requirement in Queensland coal mines for: a person with the recognised competencies to be appointed at each underground coal mine to the position Ventilation Officer; and the person is directly responsible for the implementation of the mine ventilation system and for the establishment of effective standards of ventilation for the mine. The Regulations require that an underground mine must have principal hazard management plans that provide for at the least the following: emergency response, gas management, methane drainage, mine ventilation, spontaneous combustion, and strata control. Other than strata control all the plans require the ventilation officer to have roles and responsibilities to develop, control, monitor and undertake actions in relation to these plans.There are also another 34 Regulations that either directly or indirectly requires the Ventilation Officer to take actions.The purpose of this paper is to outline the information that the regulators look for in sealing plans and the actions the regulators will take if the sealing does not go to plan (TARPs being exceeded).

Jan 1, 2005

A brief history of the significant haulage truck feature changes and the factors that influenced those changes during the 60's and 70's provide a basis for forecasting the changes that can be expected in the 1980's. A review of the impact factors and changing requirements that currently exist that will create changes. Define the critical requirements of a successful haulage truck design and discuss the availability of bigger engines and better electric drive componetry to provide deeper pit capability and improve reliability. The Unit Rig Trolley Assist System to provide improved productivity and diesel fuel savings and an economic analysis to evaluate the Trolley System is covered. The Unit Rig Automatic Truck System for a driverless truck is covered in concept and discussed from the point of view of the experience in a test in a New Mexico mine. INTRODUCTION A good basis for trying to forecast what is going to happen in the future is to go back a little bit in history, to see what the influencing elements were in different periods of time as a foundation for the forecast. INFLUENTIAL FACTORS IN THE 1960'S If you look at the truck development that occurred in the 1960's, there were some identifiable factors that give us insight. (See Fig. 1) Several things happened at the beginning of the 1960's. Mechanical drive haulage trucks were introduced that were

Jan 1, 1982

During the past three years Lurgi's Circulating Fluid Bed (CFB) technology has been successfully applied to roasting of refractory gold ores and con- centrates. In comparison with the so-called Stationary Fluid Bed roasting systems, a considerable improvement of gold recovery, to around 95 per cent, has been demonstrated and achieved on many occasions in pilot CFB units and in commercial CFB roasting plants as well. The major reason for such improved gold recoveries is the excellent controllability of the roasting process in the CFB reactor system. Here, temperature, gas atmosphere and solids residence time are more precisely controllable at optimal values during roasting operation in order to achieve the highest possible gold recovery in the subsequent leaching process step. Further dominant benefits of CFB roasting systems are their flexibility with regard to feed material, throughput capacity, dry or slurry feed, almost unlimited oxygen enrichment, direct fuel addition and in situ capture of SO2 in the presence of limestone and dolomite. The system will accept 50 per cent turndown ratio, large variations in feed composition and particle size, as well as a variety of different fuel types. The commercial applications of CFB roasting systems for gold con- centrates have been realized so far at Fimiston, Kalgoorlie/Westem Australia and for whole ores at Cortez, Nevada/USA.

Jan 1, 1991

By S Williams, N McBride

The aim of these analyses was to utilise the latest available production information for the Wandoo operation to determine the optimal blasting parameters, costing information and predicted results (fragmentation, muckpile shape and vibration). Much of the data used as input was made available from the information gathered during the excavation of the test pits during 1995. As with any æplanning stageÆ analyses, many assumptions were required to fill gaps in the available data. The calibration of computer blasting models was conducted using data from the last of the test pit blasts (this blast was carried out in material that closely resembled rock expected to constitute the bulk of the base case design pit). This calibration was refined using observation and experience based judgements to extend the accuracy of the predictions as far as possible. All the simulations were performed assuming that the blastholes will be wet (as instructed by BGM). This has consequently determined that the appropriate explosive for the simulations and the actual blasting will be a pumped emulsion/ANFO blend. The following blast design parameters were derived by determining a likely range of powder factor (from other similar scale gold mines) with a median value of 0.62 kg/m 3 being the powder factor arrived at through the field optimisation process conducted during the test pit excavation. The total swell/displacement percentage (volume after blast/volume before blast) largely determines the diggability of a well fragmented muckpile. Consequently where fragmentation is good any reduction of total swell will probably reduce diggabilty. Any reduction of diggability can and should be traded off against increased gold recovery. In most gold mines, diggabilty will be substantially compromised at the balance which produces the most profit. When these considerations are combined with the cost to drill and blast material, processing costs and the achievement of æacceptableÆ diggibility, the analysis becomes extremely complex and qualitative. Many trends are evident including:the relationship between powder factor (for each blast design) and maximum forward displacement (throw), see Figure 1; and the relationship between powder factor (for each blast design) and drill and blast cost per BCM, see Figure 2. The following blast designs are matched to each of three ore-tonnage alternatives (as supplied by BGM) (Table 1). They are all based on powder factor of 0.62 kg/BCM and are considered optimum from a mining æpoint of viewÆ. The costing of each design includes drilling, explosives and labour cost to load, stem and tie-in holes. Using the available rock data and relying heavily on the wall exposures in the test pit(s), it is the opinion of the author that between 20 per cent to 40 per cent of the final walls excavated in the Wandoo pit would be likely to have the angle between the dominant foliation and the wall plane that is well suited to presplitting and be cost-effectively served by presplit technique. The drilling cost for 125 mm blasthole is about $11.40 per drilled metre and the cost of 40 mm presplit explosive is about $140 per 25 kg (17 metre) case. This implies that the cost to drill and blast presplit on the above parameters would be about $10.90 per square metre of presplit face. The remaining wall area would be most cost-effectively delineated using modified production blasting techniques. This requires the use of modified parameters such as smaller hole diameters, smaller spacing/ burden, higher powder factor, free face firing, less rows per blast and longer delays. These altered blast parameters would usually be applied uniformly across the entire blast fired adjacent to the wall and this ætrimÆ blast would relieve burden away from the wall, into the pit. In simplest terms, this method relies upon maximised burden relief to minimise blast energy applied to the wall. It is only applicable where the material to be blasted is waste since the throw achieved is inconsistent with ore dilution control. The largest charge weight per hole for these analyses is 360 kg and the nearest domestic structure to the proposed Wandoo pit is about 6100 metres distant. From these parameters and assuming a worst case example of rock controlled site factor, the predicted ground vibration is 0.5 mm/sec that is about five per cent of the lower limit set down in AS 2187 part two (1993). This suggests that for the current location of neighbours, ground vibration will not be an issue for the Wandoo operation.

Jan 1, 1999

By J Zhao, C E. Loo

The flame front is a narrow region in the iron ore sintering bed where coke particles combust. The maximum flame front temperature is as high as 1400°C. At high temperatures, the sinter mix components react to form melts, which facilitates material coalescence and the formation of dense sinter particles. It is well-established that flame front speed is an important factor influencing sinter productivity, sinter quality and fuel rate. In this work, the effect of suction, coke addition and mix moisture on flame front speed was studied in a pilot-scale sinter pot and also using the outputs of a recently developed theoretical model, which takes into account most of the significant physicochemical processes in sintering. Airflow through the bed has a large influence on flame front speed. A power law relationship between these two parameters means that increasing sintering airflow rate will lead to increased flame front speed, but the increases become smaller at higher airflow rates. Sinter pot test results showed that increasing coke addition decreased green bed permeability and increased flame front temperature, which resulted in increased flame front resistance and decreased flame front speed. Studies also showed that green bed properties are sensitive to sinter mix moisture level. The changes in green bed properties further influence the flame front speed and temperature.CITATION:Zhao, J and Loo, C E, 2015. Dependence of flame front speed on iron ore sintering conditions, in Proceedings Iron Ore 2015, pp 83–90 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

The Australasian Institute of Mining and Metallurgy (AusIMM) is a professional society for all those associated with the activities of the mineral industry. Differences of opinion exist within the membership of the AusIMM on the role it should play in the future as a professional society in a changing industry and world environment. This same dilemma is concerning other professional societies of which the author is a member. Some of the activities and priorities of the AusIMM are reviewed in order to clarify a frequently expressed opinion that it identifies with and supports industry at the expense of representing the interests of its individual members. By definition and by action this is certainly not the case and it is concluded that all activities whether seen to be industry or member orientated serve to benefit both. The AusIMM plays a most important role in integrating and promoting the interests of all sections of the mineral industry whether corporate or individual and the Presidential activities in education this year provide an excellent example of this.

Jan 1, 1997

By R Dunne, W McCallum

Continuous improvement might be defined as seeking incremental improvement over time through improved equipment, processes, technology and the efforts of people. Most people working in ore processing facilities embrace the general principles of continuous improvement. However, given the industry-wide issues with skilled personnel and the constantly changing environment in ore processing facilities, it is often difficult to identify improvements in a facility over a given time period. The driver for these outcomes is the use of basic principles and technology to achieve best practice targets. The process involves four stages: develop standards of practice to define best practice in specific areas; write procedures to guide the organisation towards these best practices; implement the procedures and develop a review process to provide a method of measuring performance against best practice.By reviewing performance against best practice on a regular basis, the organisation measures progress towards the best practice targets and the incremental improvement between these regular reviews is a measure of continuous improvement.This paper provides the background for developing standards of practice for metal accounting, metallurgy and metallurgical management. The paper also describes how standards of practice can be used to develop continuous improvement and the skills set of the departmentÆs leadership team.CITATION:McCallum, W and Dunne, R, 2012. Metallurgical management tools for continuous improvement, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 225-230 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By H Hy÷tyniemi

In this paper multivariate data analysis performed on a new multi-camera system implemented to zinc flotation circuit of PyhSsalmi mine is presented. Image-analysis-based system was developed to take advantage of the commonly known fact that the changes in the flotation process are reflected to the visual appearance of the froth surface. Most often the changes are seen first in the froth and later in other process measurements. The image variables are already utilised in closed loop control and considerable savings are achieved with the current setting, but the results coming from the separate cells are used individually. This is clearly not the optimal way to take advantage of the many measurements coming from different locations of the process. A better approach would be for example to use the measurements coming from the early stages of the process to predict the behaviour (or improve the quality of measurements) in the later stages. The methods described in this paper are aimed to improving the situation in this sense.

Jan 1, 2005

The arbitration process, and its drawbacks: Any time you have taken part in a major arbitration, and the decision, when it comes out, is not what you thought it would be (which is bound to happen occasionally), the normal reaction is something like æthe arbitrator got it wrongÆ. Again normally, when you have cooled down a bit, and you look in more detail at the decision, you can see, probably, æwhere he got it wrongÆ (it is only male arbitrators who get it wrong). Ultimately, when reason prevails, and you reflect on it, you can see that what really happened was that you failed to get the arbitrator to see what you were getting at in the point or points concerned. This is doubly frustrating, when you consider what has been involved in getting to this point, having been through it all at least twice. An alternative to this process may be the dispute review board.

Jan 1, 1999

By C Tapia, B Hay

There is a close relationship between the mining industry, economic growth, and technological and social development. Mining activities benefit all economic agents, but only during a timespan determined by available reserves, primarily driven by internal factors such as production rate, technology and costs, and external factors such as prices determined by the market and taxes and royalties controlled by governments (Gordon and Tilton, 2008; Henckens, 2021; Tapia Cortez et al, 2018). The intense use of Mineral Commodities (MC) needed to maintain the current lifestyle has placed ore depletion as one of the main threats to sustainable economic, social and technological development. However, ore depletion does not only arise due to the finite nature of MC, price fluctuations or technological challenges. It is also triggered by the ‘economic limits of extraction’, determined by the optimisation of financial factors and technical restrictions within the regulatory framework (Henckens, 2021). Most reporting standards – if not all – define ore reserves as ‘the economically mineable part of a Measured and/or Indicated Mineral Resources’ determined by the technical and economic viability of extracting, processing and commercialising MC having the NPV as the fundamental decision – making tool (JORC, 2012; Krzemień et al, 2016). However, is the NVP an ‘economically’ basis index able to capture the complexity of economic phenomena? No, it is not, and it is crucial to define what is economic and financial. Although related, they are different disciplines. Economics studies the behaviour of the different market agents, including human behaviour and policies and explains the factors involved in the scarcity (or surplus) of goods and services. Finance focuses on financial systems and managing funds considering the time, cash available, and risk. It involves banks, loans, investments, and savings and can be considered a small subset of economics (Simon, 1959; Tapia Cortez et al, 2018). Given the economic nature of ore Reserves, endorsed by governments (Figure 1), NPV is an incomplete tool to determine ore Reserves as it limits the problem to simply maximising cash flows instead of optimising the economic benefits for all economic agents. In addition, using the rigid scheme of controlling taxation – unable to adapt to new market or economic conditions and systematically increasing – within the NPV framework only increases the sub-optimisation of ore reserves, mainly due to the systematic taxation rise. Short-term benefits of higher taxes and royalties are unlikely to offset the impacts of reducing exploration and project development in the long-term, which not only boosts ore depletion concerns but also reduces competitiveness, threatening economic and social welfare (Fisher, Cootner and Baily, 1972; Gordon, Bertram and Graedel, 2007; Lilford, 2017; Mardones, Silva and Martínez, 1985; Radetzki, 2009; Rodrik, 1982; Tan, 1987; World Bank, 2000). Holistic methods and collaborative tools, able to dynamically simulate and assess how changes in the technical settings, regulatory framework (taxes and royalties), and financial factors affect the availability of ore reserves and the impact for all economic agents, should be incorporated into the evaluation process to fill the gap.

Aug 2, 2023