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By A G. Noble

Tunnelling for hydro-electric power projects can be a very challenging component of the overall development. In contrast to urban transportation tunnelling where the logistics for access and supply of power, water and other essentials are readily available, hydropower projects are usually in very remote locations and all necessary plant, equipment, spares and materials need to be brought in and the site must function as a self sufficient unit.For a large scheme the river diversion tunnel(s) are usually on the initial phase critical path in order to meet the non-negotiable deadline of river diversion before the onset of the wet season. A newly formed tunnelling crew, once mobilised to the site for the project, will face the first major learning curve of the project’s systems and logistics during this critical tunnelling activity.Power tunnels convey the water to the turbines in the powerhouse and are usually on the critical path for the main works, especially if the scheme comprises a powerhouse located within an underground cavern. A modern cavern arrangement requires a complex warren of various openings: access adits, ventilation/cable tunnels, shafts, surge tunnels, etc.Hydropower tunnel construction tends to be dominated by tunnel boring machine (TBMs) or drill-and-blast excavation techniques and each has its challenges in very remote locations. TBMs still have long lead times as for any type of project, but additionally require a thorough roads and bridges infrastructure assessment of the country from the port of entry to the site to ensure a problem-free delivery. In some cases the project also requires the establishment of a complete precast concrete segment production facility and the space for creation of laydown areas; there is no ‘just-in-time’ delivery mechanism applicable to typical remote hydropower sites.This paper highlights the technical and risk management considerations in the planning, design and construction of tunnels for hydropower projects. It contrasts the typical factors that govern the design of urban transportation tunnels with those for remote hydropower tunnels. The perspectives of stakeholders are provided including those of international lenders. With examples from large and small scale projects across the globe it provides an insight to all parties and in particular, those tunnellers that are working in the hydropower field for the first time.

Mar 8, 2011

Since the 1950's drilling has been rapidly mechanised. First from hand held drills with air legs to pneumatic jumbos, then to more effective hydraulic jumbos. Development of underground drilling equipment naturally could not have stopped here. Hydraulic drilling saw an improvement in drilling capacity and efficiency after the introduction of second generation drifters in the early 1980's. Also in the early 1980's a few equipment suppliers started to study how to improve the efficiency in operating the rigs. The first computerised rigs for tunnelling were delivered to work sites in mid 1980's. At the same time a few computerised longhole drills started drilling in mines.

Jan 1, 1988

Organisations are starting to develop processes for achieving sustainability principles they have defined for their organisation. The foundation for these principles is now well accepted. The definition of a sustainability framework is a good starting point for any project. The delivery of the framework requires the organisation to think differently about how project objectives can be met. New tools are becoming available to help achieve the sustainability outcomes for the projects. This paper will examine the project building blocks that are necessary to ensure the sustainability framework can be achieved for the project. These include new approaches to decision-making processes and evaluation tools and when to apply them. An integrated approach with shared expertise to project delivery, which is applicable to the whole supply chain, will be discussed. This will cover sustainability procurement, integrated waste management, cleaner production and eco-efficiency, sustainable products and disposal. A project toolkit will be presented and some key project tools identified. The need for management support in undertaking these new approaches is critical, as is the need to develop partnerships and cooperative management to facilitate delivery.

Jan 1, 2004

By S M. Stewart

Building and Maintaining Community Relationships   In mining terms, the town of Waihi is distinctive with the Martha mine situated right in the heart of the town. MarthaÆs central location and other mining activity nearby means there is an increased community focus on the happenings at the mine and the effects and impacts of mining. While WaihiÆs proximity to the mine is unique, all mines have a community context that they operate within.   Issues of proximity simply heighten awareness and emphasise the need for building and maintaining good community relationships. In the three years we have been working alongside the Waihi community, we have worked together with concerned and supportive residents, representatives of Newmont Waihi Gold and representatives of Hauraki District Council, to develop a collaborative framework for addressing the economic, social, environmental, cultural and spiritual wellbeing of the people of Waihi. This could not have occurred without the genuine commitment of all participants.   This collaborative focus has resulted in some tangible progress in Waihi which, in part, stems from people taking an interest in the town because the town is taking an interest in itself. As we have worked and learned within the process of building and maintaining a collaborative and sustainable community environment, we have tried to adhere to a philosophy and a set of basic principles. We believe that this approach, combined with a teachable skill set, helped to create the opportunity to develop a truly collaborative community environment which continues to grow. Our paper will describe this philosophy, these principles and the skill set that we have applied.   The application of the process in Waihi has resulted in a series of outcomes unique to Waihi. These outcomes include formation of the Waihi Community Vision committee, the Vision Waihi Trust and the subgroups set up to further the interests of particular groups, for the collective benefit of all the community.   Based on our experience of other situations, and on the way the Waihi process has developed, we believe that the identified principles and skills can be transported and used in other cultures and contexts. While the resultant outcomes may differ, the underlying principles will still apply. Progress will come from creating a sustainable environment within which the community (including residents, industry and regulatory authority) can determine its own internal relationships and the vibrant growing sense it has of itself.

Jan 1, 2006

By P Holtham, K C. Runge, E Tabosa

Traditionally, comminution and flotation have been surveyed, analysed and optimised separately. This often results in less than optimal outcomes because of the complex interactions between the two processes. Flotation recovery is a strong function of the valuable mineral particle size distribution with lower recovery of ultra-fines due to poor flotation kinetics, optimum recovery for the intermediate sized particles and lower recovery for the coarser particles due to poorer liberation. Thus, to optimise flotation recovery and grade it is usually best to grind to a fine size. This requirement needs to be balanced by the cost of grinding finer and the revenue that results from an increase in grinding throughput, which often results in a coarsening of the flotation feed.This paper demonstrates a technique which can be used to predict the effect of a change in feed grind size on flotation performance. It can be used to determine the optimum grind size for a particular operation which optimises total circuit profitability. Analysis is relatively easy to perform, as a minimum, requiring only size by assay data of the feed and product streams of the process. Case studies will be presented that demonstrate the usefulness of this technique in feed grind applications. Potential use of the technique for regrind evaluation is discussed. The limitations associated with this technique in certain circuit scenarios will also be outlined.CITATION:Runge, K C, Tabosa, E and Holtham, P, 2014. Integrated optimisation of grinding and flotation circuits, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 77–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By A Wanninayake, E Novello, I Gillani

A residue storage facility (RSF) was designed to cater for Davidson Creek Area and Robertson Range Area operations under the FerrAus Pilbara iron ore development project in the Pilbara Region, Western Australia. Annual ore production was about 15 million tonnes over a period of up to 15 years. The RSF was designed to handle a tailings production rate of 2.2 Mt/a over the project life with ability to be expanded at a later date. The composition of tailings was predominantly -45 ¦ material with some spiral reject material. The fraction of solids was expected to be between 40 per cent and 50 per cent solids by weight.The RSF was designed as an above ground storage facility, integrating with a mine waste dump planned close to the selected RSF site. This integration helped to increase the stability of the RSF embankment and to reduce the construction cost. The main source of construction material for the remaining part of the RSF embankment was selected to be mine waste. The RSF was designed to be constructed in stages by considering the availability of mine waste according to the mining schedule. The use of mine waste for construction of RSF embankments has several benefits over use of borrowed material. These include less construction costs and less disturbances to the environment, by minimising borrowed areas and waste dump footprints.CITATION:Wanninayake, A, Novello, E and Gillani, I, 2013. Effective use of mine waste in the design of a residue storage facility, Pilbara region, Western Australia, in Proceedings Iron Ore 2013 , pp 39-44 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By A Valero, G M. Mudd

There is active debate and research around the most suitable indicators to assess the sustainability of mining. The most common approach is to report a range of data for a given mine site (or less preferably, a company total), such as inputs, outputs, benefits and potential costs. The most popular protocol in use (and growing rapidly) is the Global Reporting Initiative (GRI). However, these measures are numerous and still do not allow a single over-arching indicator to be developed. Other measures, such as known mineral resources over time, do not account for critical challenges such as declining ore grades, increasing wastes and poorer quality ores or more difficult mineralogy. By adopting a thermodynamic approach to sustainability, through the concept of æexergyÆ, it is possible to incorporate into a single measure the effective quality of mineral resources. Exergy involves the assessment of the minimum energy costs involved in producing a mineral resource with a specific chemical composition and concentration from common materials in the environment. The exergy of a mineral resource is evaluated from mineralogic composition, concentration (or ore grade) and, of course, quantity, by multiplying the unit exergies with the tonnes of the resource produced (or consumed). Since exergy is a thermodynamic quantity (ie energy or joules), it is additive across different minerals, such as iron ore to gold to copper or even oil and gas or coal û making it an ideal indicator to assess mineral resource sustainability at the industry scale rather than the individual mine scale. This paper briefly outlines the theoretical basis for exergy, and then presents a range of commodity case studies showing the application of exergy to the Australian mining industry. Overall, the usefulness of exergy is clearly demonstrated for use as a broad indicator of the sustainability of mineral resources at the national or even global scale.

Jan 1, 2009

Computation is believed to be a powerful tool in scaling-up chemical processes and in designing materials, however, is being challenged by low predictability and limited scalability. This presentation will discuss the promising future of multi-scale computation in solving these two problems to realise the real-time simulation of industrial processes. Multi-scale structures are a common nature of most chemical systems and the meso-scale phenomena are believed to be the road blocks not only in improving the predictability of physical modeling but also in extending the scalability of computation. Focusing on the meso-scale phenomena, a series of research has been carried out at the Institute of Process Engineering, Chinese Academy of Sciences, for the past three decades. Starting with a simple idea of modeling the meso-scale clusters in gas-solid two phase flows, the so-called EMMS (Energy-Minimisation Multi-Scale) model was established. In verifying the stability condition of the model, the pseudo-particle approach was proposed to explore the micro-mechanisms in particle-fluid systems, and the strategy of the EMMS model was extended to other six different multi-phase systems, resulting in a unified conceptual formulation of multi-phase complex systems expressed by a multi-objective variational problem. In applying this model to different multi-phase systems and to industrial problems, it was recognised that the EMMS model defined a new paradigm of multi-scale computation by realising the structural similarity between software, hardware and the problems to be computed. This paradigm of computation was implemented on a multi-scale supercomputer with a capacity of 1.0 petaflops by integrating CPUs and GPUs (Graphic Processing Units), showing high efficiency and low cost. Running the EMMS model on this computer, the simulation of hydrodynamics of multi-phase systems can be speeded up very much, indicating a promising future of virtual reality of process engineering. The presentation will review this series of work, introduce successful applications in industries, and will be concluded by emphasising the critical importance of the meso-scale phenomena as the bridge between macro-dominants and micro-mechanisms. This is an ABSTRACT ONLY. No full paper was prepared for this presentation.

Sep 13, 2010

By M.J. Mitchell

Platinum-group minerals (PGM) are recorded from a number of localities along the Waiau River, western Southland, and the south coast of the South Island, New Zealand. At each locality, small amounts of PGMs were recovered as by-products of historical gold mining operations. During the period 1890-1950 an estimated 1000-2000 oz. of "platinum" were recovered from the region, the only area within New Zealand where PGM have been commercially exploited. The PGM suite of southern New Zealand consists of Pt-Fe alloys, IPGE (iridium subgroup, platinum-group elements) alloys, sperrylite (PtAs2), cooperite (PtS)and braggite ((Pt,Pd)S). The composition of Pt-Fe alloy exhibits considerable variation and two compositional populations are recognised. Some Pt-Fe alloy grains are chemically zoned. Iridium is the most abundant IPGE alloy phase and often contains considerable Pt, in contrast to osmium and ruthenium alloys. Cooperite and braggite grains are characterised by extremely low concentrations of Ni. R^~

Jan 1, 1995

By Fradd WP

South Australia pioneered metal mining in Australia and was the main source of copper for several decades. Gold discoveries and mining also contributed significantly to the development of the Colony. Across the State can be seen the holes, the mullock heaps and, in some instances, the remnants of machinery of the past era. In this, the centenary year of the discovery of the Teetulpa goldfield, considered by some to he the most significant discovery of gold in the State, it is appropriate that we should present a paper on the history of gold mining in South Australia. South Australia has not been a major producer of gold with recorded production a little in excess of 15 million grams (15 t). This represents about 0.25 per cent of the Australian total and ranks last of the States of the Commonwealth. The outstand- ing feature of gold production in South Australia has been the succession of short periods of rela- tively high production immediately following a discovery, with payable dirt being quickly exhausted, a fact clearly illustrated by the graph of South Australian gold production (Figure 1).

Jan 1, 1987

By Jarvis ST

Colliery spoil is the major constituent of colliery spoil 'rockpaste' which has been used to infill abandoned limestone mines in the West Midlands of England since the early-1980s. The other constituents of rockpasle are pulverised fuel ash, lime and water. A key property of the rockpaste is its ability to flow within the mine workings over considerable distances before setting. This paper describes the work carried out to identify suitable sites as sources of colliery spoil for making rockpaste and goes onto consider the flow properties of the material and the monitoring methods used on-site. A full-scale trial comprising mulling a 6600 nt' section of an abandoned mine was conducted prior to the mulling of the Littleton Street Mine which had a volume of about 500 000 m'. As well as describing the methods used for monitoring the movement of rockpaste material, a description is also given of a dip-meter developed specifically for the purpose of measuring the level of paste in the mine. This paper shows how a colliery spoil based paste has been successfully rued for infilling abandoned mine workings. The monitoring systems developed for use in the two case studies presented in this paper are now being used extensively for infilling other abandoned mine workings. To-date over I I mines with a total volume exceeding two million cubic metres have been backfilled.

Jan 1, 1998

By T O&apos, Beirne

The paper focuses on explosibility conditions in underground coal mines, the behaviour of explosions from initiating gas ignitions to violent dust explosions and the effectiveness and limits of operation of current designs of passive explosion barriers in suppressing the flame front. Areas of particular emphasis include: passive explosion barriers are not designed to protect personnel in the flame initiation zone and its immediate surroundings; passive dust and water barriers are generally considered ineffective against methane ignitions of the magnitude that can occur at the working face; dispersal of suppressant from passive barriers is adversely influenced by equipment, including conveyor belts, located in the barrier zone; current regulations in Australia do not specify the installation of barriers in all roadways leading to the face, so their use has a limited capacity to contain explosions; a manifest design limitation is that passive barriers are restricted to one operation and are therefore ineffective against repetitive fire gases explosions; and the practice of stone dusting in roadways inbye the barrier zone could conceivably adversely affect the operation of passive barriers. The paper discusses performance evaluations made in full scaleexplosion galleries and the use of alternatives to passive barriers,including the installation of active barriers under some circumstances.

Jan 1, 1997

By M A. Wells

A new approach to more reliably predict the Ni (and Fe, Mg) composition of Ni laterites was tested for RC samples from the (siliceous) oxide–style, Siberia North deposit, Kalgoorlie Nickel Project (KNP), in the north-eastern Yilgarn (WA) using partial least squares regression (PLSR) analysis of diffuse reflectance spectra over the 380 - 2500 nm wavelength range with a multi–element chemistry data set. PLSR cross-validation models were developed to predict FeO, MgO and Ni contents in composite samples with bulk composition limits of >0.08 wt per cent Ni and <6 wt per cent MgO. Calibration and validation models showed a strong, linear trend for predicting FeO and, to a lesser extent, Ni content, whereas PLSR models for predicting Mg content were less reliable. This reflected the prevailing mineralogy and associated element deportment within the oxide laterite profile. For example, Fe and Ni distribution is controlled by relatively few minerals, predominantly goethite and, to a lesser extent, the Fe3+-bearing smectite, nontronite. Magnesium is associated with a range of Mg-bearing minerals, some of which are compositionally complex (eg serpentine, talc, chlorite, smectite and carbonates). Magnesium chemistry alone does not reflect the varied mineralogy of samples with relatively high (5 - 6 wt per cent) MgO contents, which can be spectrally distinct. Hence, samples with similar Mg contents, though comprising Mg-bearing minerals with distinct reflectance spectra, were difficult to model (eg smectite versus Mg-carbonates). The findings of this study demonstrate that characterisation of Ni laterite composition may be achieved as part of routine logging of either drill chips or diamond drill core using PLSR analysis, but that a detailed understanding of the mineral-element association is essential for reliable predictive analysis. This has particular relevance to characterising the geometallurgy of Ni laterites, especially where deposits may be classed as the same type, but have distinct compositional and mineralogical differences.

Sep 5, 2011

By G van Niekerk, M Wortley

Screening is a critical part of many mineral processing circuits and keeping the aperture of the screening media within specification is vital to ensure efficient performance of the processing plant. Typical ways of estimating and/or measuring the wear of the screening media vary from very subjective methods (for instance, using the human eye) to manually checking the width of a few of the more severely worn gaps with a measurement device. Subjective methods can be flawed by human error while manual checking can distort the polyurethane or rubber materials that are used in several types of screening media. All of these errors can cause either premature replacement of panels or, even worse, poor screening of the material.Metso Process Technology and Innovation (PTI) and Metso Screening Media Solutions (SMS) have developed an innovative method that measures screen aperture using advanced image processing techniques. Field trials of the device are presented in this paper, which shows the comparison between the different methods of measuring apertures. Case studies demonstrate how the system, when combined with ScreenTrack, MetsoÆs industry leading maintenance system, and screening media, is providing users with the best possible screening solutions.

Sep 26, 2011

By S Hapugoda, J R. Manuel, M P. Ma, L Lu

Iron ore sinter quality depends heavily on the mineralogy, textures and physical structure of the sinter, which is formed upon solidification of the primary sinter melt. The interactions of the initial sinter melt with its surrounding materials will impact on the properties of the primary sinter melt and consequently the solidified structure of the sinter. By using a high-temperature visualisation system, in situ studies have been conducted on the effects of melt compositions (Al2O3, SiO2 and MgO) on the interfacial phenomena of the sinter melt on a natural iron ore substrate. It was found that the melt composition significantly influenced the wettability between the sinter melt and the iron ore substrate. The interactions between the sinter melt and the natural iron ore substrate were also examined. Such interactions can lead to further changes of sinter melt composition and hence the sinter melt properties that, in turn, further affect the wetting behaviour of the sinter melt.CITATION:Ma, M P, Lu, L, Hapugoda, S and Manuel, J R, 2013. Effects of melt composition on the interactions of sinter melt on a natural iron ore substrate, in Proceedings Iron Ore 2013 , pp 431-440 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By B Belle, M Biffi

Cooling of coal mines in the Bowen Basin, characterised by steep geothermal gradient, is presently achieved mostly through rental surface bulk air cooling in summer months. This paper argues that future mines will be required to focus their cooling resources more intensively to manage a challenging thermal environment where virgin coal temperatures of over 50¦C at a depth of 500 m are expected. Currently, mine cooling systems are employed to maintain the wet bulb temperatures (WBT) to below 27¦C at which point the risks of heat stroke or other heat-related issues are manageable. The capacities of these systems are in the range of 6 MWR to 10 MWR. The relationship between high working temperature environments and injury frequency rates is well established. Therefore, provision of appropriate cooling strategies and understanding their optimum performance and suitability are important to Australian coal mines of the future. This paper evaluates the underground temperature profiles of deep, gassy coal mines with propensity for spontaneous combustion and proposes the long-term cooling pathways to effectively manage thermal hazards. Thermodynamic modelling is performed on a longwall face and includes air leakage effects from goaf streams at various locations along the longwall face. The strategy summarises the application of underground bulk air cooling, chilled water sprays on the shearer and the resulting temperature profiles. Considering the new mining projects planned for the Bowen Basin region, a review of implementable cooling strategies such as mid-gate mobile bulk air coolers (BACs), spot coolers, underground bulk air cooling and the use of chilled water to enhance the positional efficiency of cooling plants, are discussed in this paper. Finally, the comparison of ærentalÆ versus æownershipÆ of cooling plants is analysed as part of long-term cooling strategies.CITATION:Belle, B and Biffi, M, 2013. Cooling pathways for deep Australian longwall coal mines of the future, in Proceedings The Australian Mine Ventilation Conference , pp 223-236 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By E Corpuz, J Weissman, S Winter, R Evans

The surface-to-inseam (SIS) directional drilling technique has been utilised at Oaky Creek Coal for more than a decade to predrain both the Oaky No 1 and Oaky North mining areas. The cumulative drilling program constitutes a total of 140 lateral and 200 vertical holes, and 405 km of lateral drilling.The use of SIS gas drainage has been successful with the following site-specific benefits being recognised:ability to drain German Creek seam gas contents to residual gas levels of new mining areas within an 18-month period from commencement of well productionstructural geological verification of the mine design well in advance of development mining occurring in an areaability to conduct successful predrainage of the overlying Aquila seam to reduce subsequent goaf emissions.Appropriate and up-to-date geological knowledge during the design and drilling process is a significant influence to achieving success. Vertical production wells need to be located in a position that is most effective to remove water from hole. The lateral hole should not include intersections with significant geological structure.SIS drilling provides continuous seam roof/floor data to help define seam geometry and locate geological hazards with high accuracy. In faulted ground and with variable seam gradients, SIS data can resolve geological ambiguities from seismic sections and enhance seam correlation that would otherwise be available only from discrete and closely-spaced infill vertical exploration drilling.Here, we review some examples of SIS configurations and practice to highlight key learnings in drilling long inseam holes (up to 1900 m per arm) ahead of development and mining. Aspects on prerequisites, evolution of network design, tolerances and drainage outcomes in a variety of geological situations are discussed as technical basis towards a viable and effective SIS drilling program.CITATION:Corpuz, E, Evans, R, Weissman, J and Winter, S, 2015. Surface-to-inseam (SIS) drilling at Oaky Creek coal mine – SIS design aspects and drilling environment, in Proceedings The Australian Mine Ventilation Conference, pp 93–104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By Recepoglu O, Tolun R, Yavasoglu N, Bulutcu AN

Scheelite was floated from a low-grade (0.28 per cent W03) calcitic (96.30 per cent CaCO3) scheelite ore using oleoyl sarcosine as collector and alkylated 8-hydroxyquinoline as modifier. Compared to oleoyl sarcosine alone, the grade and the recovery of scheelite concentrate were increased from 8.07 per cent to 33.54 per cent and from 55.1 per cent to 73.4 per cent, respectively. Infrared studies with pure calcite and scheelite minerals showed that while alkyl oxine is adsorbed on the scheelite surface, it is not adsorbed on the calcite.

Jan 1, 1993

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022

By G A. Blengini, S V. èolar

The minerals industry is faced with choices beginning in the exploration phase and extending over the life cycle of the mine. Firms examine the technical feasibility of alternative actions and typically rank them based on economic performance. Increasingly firms also consider alternativesÆ contribution to sustainable development. There are many visions of what a sustainable future should look like and much debate about what should be sustained. Sustainability is a process, a series of incremental actions, and each alternative course of action has the potential to further progress toward one or more sustainability goal. However, because it is not possible to sustain everything everywhere simultaneously, trade-offs and choices inevitably have to be made.Sustainable decision making before investment (ex ante decisions) should incorporate a broad suite of quantitative and qualitative information. One approach is to utilise an integrated sustainability assessment (ISA) framework that supplements traditional technical and financial tools with other tools such as objectives hierarchies (OH) and life cycle assessments (LCA). OH is a problem framing method that captures stakeholder and decision maker interests, objectives and values. LCA addresses material and energy flows, and environmental impacts. The outputs of these tools can be combined with additional qualitative measures and analysed using multi-criteria decision analysis (MCDA). MCDA models facilitate comparison of different alternatives on the basis of a set of criteria and indicators. Some can incorporate information on risk attitudes and preferences ( multi-attitribute value theory models) and others uncertainty about outcomes (multi-attribute utility models). Studies have been published describing and comparing tools for minerals sector decision analysis. Our paper extends this literature, discussing how a combined OH-LCA-MCDA can support ex ante sustainability assessment by incorporating preferences, risk attitudes, and monetised or non-monetised social and economic variables, in a manner that captures their inherent complexity. We also discuss how such a combined model would support trade-off analysis.

Jan 1, 2009