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By A Sinuhaji, R Poedjono, G Flumerfelt

PT Freeport Indonesia is currently building the DOZ mine. It is a 25 000 tonne/day block caving operation which is scheduled to reach designed production levels by the fourth quarter of 2002. This paper describes some of the issues and challenges faced by the operation when introducing a new undercut method part way through the project. Advantages and disadvantages are discussed as well as the expected benefits of the new method.

Jan 1, 2002

By A Hughes, J Agius, T Ferguson, A Parbhakar-Fox, D Lester, L M. Jackson

Management of historic tailings is a major challenge facing the mining industry and its regulators. However, through improved mineralogical and chemical characterisation of such materials the opportunity to develop better rehabilitation strategies arises. Microanalytical techniques including microscopy, mineral liberation analysis and laser ablation inductively coupled plasma mass spectrometry (ICPMS) allow for improved tailings characterisation – but the challenge posed by these techniques is how to use them effectively. Additionally, data sets collected by such techniques must be properly integrated, only then can they assist in the identification of the most appropriate rehabilitation strategies. A study conducted at the Old Tailings Dam (OTD) located at the Savage River Mine, Tasmania allowed for the integrated use of several microanalytical techniques to help evaluate the benefits of a shallow water cover as a potential rehabilitation strategy. Samples (n = 144) from 14 trenches and 11 boring cores (2 m maximum depth) were collected across the OTD. These were subjected to routine acid-base accounting, with a subset subjected to detailed mineralogy using a modified sulfide alteration index (SAI), X-ray diffractometry and mineral liberation analysis (MLA). In addition, representative samples (n = 6) from across the OTD were subjected to laser-ablation ICPMS to characterise the pyrite chemistry. Our results showed that tailings in the northern area submerged under a natural water cover were relatively unoxidised from approximately 1 m depth, with SAI values of 1 to 2. Tailings from the subaerial southern portion were extensively oxidised to approximately 35 cm depth (SAI = maximum 5.8), with fresher materials observed underneath (SAI = 5 to 5.8). Pyrite from across the OTD is enriched in Co, Cu and Ni. Through the integrated application of microanalytical tools, we determined that establishing a water cover of at least 1.5 m depth across the OTD is a suitable rehabilitation option for this historic site. However, consideration for the reprocessing of these tailings to extract Co should be further investigated.CITATION:Jackson, L M, Parbhakar-Fox, A, Hughes, A, Agius, J, Ferguson, T and Lester, D, 2015. Microanalytical evaluations of the savage river old tailings dam, north-?west Tasmania, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 111–124 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By S C. Dominy

For any gold deposit-based geometallurgical study, the collection and processing of representative samples for gold grade and recovery tests is critical. Sampling protocols should be designed to suit the style of orebody in question. The proportion and size of gold particles has a direct impact on the effectiveness of sampling protocols and metallurgical recovery processes employed. Studies focussing on ore mineralogy and gold particle deportment, size and distribution are required. Key issues are the presence of gold particle clustering (important for sampling optimisation) and proportion of coarse versus fine to refractory gold. X-ray computed tomography (CT) is a radiographic technique that produces high-resolution 3D computerised models of objects based on density distribution. The ‘virtual’ specimens are made up of voxels, the 3D equivalent of pixels each assigned a grey value based on X-ray absorption. This paper presents the results of recent research on the imaging of in situ gold particles in a coarse gold-bearing ore. The technique shows promise as a rapid non-destructive method for preliminary characterisation to facilitate more detailed studies. Early and rapid gold particle determination enables sampling protocol optimisation and metallurgical recovery parameters to be defined prior to detailed feasibility studies

Sep 5, 2011

By Berglin IK

Since 1962, ferro alloy production in Australia has been concentrated at Bell Bay, Tasmania with a major expansion occurring in 1976. This concentration was based originally on the perceived requirements of the expanding Australian steel industry, but recent stagnation within this industry has seen Temco become progressively more export oriented.In 1984, approval was given for a $47 million uprating of facilities which will allow for the introduction of the latest technology to ensure high quality, low cost production in a highly competitive export market.

Jan 1, 1985

By K Lee, L Mann, J Bygrave, G Sheldon

Ausmelt is supplying commercial quantities of an alkyl hydroxamate flotation collector AM28 for flotation of oxide and supergene base metal ores and tailings. AM28 is a non-hazardous product used as a ten per cent to 50 per cent solution in dilute potassium hydroxide. It is a selective flotation collector for oxide or oxidised base metal minerals and replaces conventional sulfidisation for oxide mineral flotation. At Radio Hill, the AM28 is used in conjunction with traditional sulfide collectors, which allows simultaneous flotation of oxide and sulfide copper minerals. The Fox Resources Radio Hill copper concentrator near Karratha, Western Australia, is currently configured to treat supergene copper ore sourced from the West Whundo open pit. This Archean VMS type copper deposit has been deformed and remobilised with uplift, erosion and weathering to form a significant supergene zone. The sulfide copper minerals present in the upper zone are digenite and chalcocite with lesser chalcopyrite and covellite. Oxide copper minerals present include cuprite, with lesser malachite and azurite. Gangue minerals include quartz, talc and chlorite. Plant trials at Radio Hill are reported for supergene West Whundo ore, where the AM28 was stage added into the circuit at nominally 80 g/t. Plant data over three months shows the copper recovery increased consistently from around 50 - 60 per cent to above 70 per cent when AM28 was added. This has been proven statistically. The grade of the concentrate was consistent with and without AM28, at nominally 22 - 24 per cent copper.

Jan 1, 2007

By Q Zhou, J Pan, D Q. Zhu, C C. Yang

Oxidised pellets have become an indispensable high-quality charge for blast furnaces (BF) due to their uniform particle size, high iron grade, high mechanical strength, good metallurgical performance, as well as relatively low energy consumption and gaseous pollutant emissions in pellet production. Nevertheless, due to the rapid development of the global steel industry, highquality pellet feeds are becoming more and more scarce. In order to broaden the source of pellet feeds and reduce the production cost of pellets, more and more steel mills are going to use coarse iron ore fines with relatively low iron grade and low impurities for preparation of desirable pellet feeds through a typical wet grinding-settling-filtering process. In this work, the grinding, settling and filtering behaviour of Brazilian and Australian iron ore fines are studied and compared, aiming at finding out the internal relationship between the mineralogical characteristics of different iron ore types and their grinding-settling-filtering performance. The results show that the grindability is heavily dependent on the hardness of iron ores, which is governed by the mineralogical characteristics of the raw materials. Usually the higher the hardness, the more grinding energy is required. Except for Brazilian specularite, Australian hematite-goethite type iron ore fines and Brazilian hematite ore fines exhibit good grindability with a Bond Work Index of about 10–15 kW•h/t. In addition, the settling and filtering performance of ground iron ores are largely affected by the density, mineralogical characteristics of iron ore fines (eg, quantity of clay minerals and goethite and porosity of ore particles), grinding fineness, etc. Generally, iron ore fines with higher density, lower quantity of soft minerals (clay and goethite) and larger particle size give superior settling and filtering performance. For iron ore fines with inferior grinding, settling and filtering performance, applying more energy-efficient grinding techniques, blending with ore types with good settling and filtering performance can reduce grinding energy consumption and improve settling and filtration rates to maximise the productivity of equipment and lower the operational cost

Sep 18, 2023

By A Whaanga, W Vigor-Brown

IGO Ltd’s (IGO’s) Nova-Bollinger Deposit (Nova-Bollinger) is a magmatic nickel-copper-cobalt (NiCu-Co) sulfide deposit found 160 km east-north-east of the town of Norseman in Western Australia (WA). The deposit is hosted by the Mesoproterozoic rocks of the Fraser Zone, which is part of the Albany Fraser Orogen (AFO). Since mining commenced in 2016, IGO’s Nova Operation (Nova) has mined and processed to 31 December 2020, 5.63 Mt of ore grading 2.04 per cent Ni, 0.86 per cent Cu and 0.07 per cent Co. Nova’s mine geology team (MGT) has used commercially available implicit modelling (IM) and general-purpose resource modelling (RM) industry software systems, to prepare the 31 December 2020 (CY20) update of Nova-Bollinger’s JORC Code reportable Mineral Resource estimate (MRE). This CY20 MRE update was predominantly based on ~386 km of diamond core drilling, with the drill holes having a nominal grid spacing of 12.5 by 12.5 m throughout the mineralised zones of the deposit. Using IM tools, Nova’s MGT interpreted and modelled 22 separate domains from the drill hole logging, assaying results, and the MGT’s underground mapping. These IM closed volumes were then used to control the estimation of MRE variables into conventional industry digital block models using RM and other ancillary software systems. During 2021, a commercial machine learning (ML) software was trialled by Nova’s MGT for preparing block models of Nova-Bollinger’s MRE domains. The motivation for the trial was that the ML process could expedite modelling through the direct creation of a domain coded block model from the drill hole logging. Compared to the industry standard approaches of wireframing or IM, where the modeller usually makes many subjective choices to produce the domain model, ML offers a more objective ‘hands-off’ process for determining the connectivity of domains defined in drill holes. Additionally, the ML process provides a quantitative confidence metric associated with its output that may have utility in mine production and resource classification. In this paper, the results of the Nova-Bollinger ML modelling trial are compared to the MGT’s current workflow for MRE work. The MGT’s conclusions as to the advantages and disadvantages of the IM and ML methods for preparation of MRE domains are discussed. The ML software was also tested as a method of rapidly interpreting geology outside the principal zones of MRE interest. These testing results are also presented in this paper.

Mar 22, 2022

By T BoBo, D La Rosa, P Cameron

Efficient pre-concentration using natural and induced deportment starts with effective blast design. Leveraging these characteristics using Size-Based Grade Engineering® techniques requires detailed understanding and measurement of the particle size distribution (PSD) of the Run of Mine (ROM) ore. In turn, blasts must be designed to optimise fragmentation for the pre-concentration method. To be successful, fragmentation outcomes must be predicted and measured as part of the blast design process to account for the response ranking of the rock mass. The upgrade achieved using Size-Based Grade Engineering® methodologies will rely on the proportion of feed that reports to the screen undersize, so particle size distribution of the feed stock is of paramount importance if the potential benefits are to be achieved and maintained. Measuring actual fragmentation in the ROM ore and comparing with predictions allows the modification of subsequent blast designs to optimise fragmentation for pre-concentration scenarios. Automating this process can deliver significant increases in productivity and mine site profits. This paper discusses the importance fragmentation plays in Size-Based Grade Engineering® and explores technologies and methodologies used to measure it, consistently ensuring the best outcomes.

Nov 10, 2020

By K Faure

At Sams Creek a peralkaline granite porphyry dyke hosts gold-bearing sulfide-quartz-siderite veins. The granite dyke intrudes Ordovician-Silurian metapelite and quartzite, and has thin lamprophyre dykes along its contacts. The mineralised veins and the granite and lamprophyre dykes have been deformed during several phases of folding, the youngest of which is Early Cretaceous. The granite has been hydrothermally altered, with early magnetite-siderite¦biotite alteration overprinted by sulfide and quartz-siderite veins and quartz-perthite-albitesiderite-pyrite-rutile¦sericite alteration assemblages. The sulfide veins are composed of arsenopyrite + pyrite ¦ gold ¦ galena ¦ sphalerite ¦ chalcopyrite ¦ pyrrhotite ¦ graphite, with minor quartz and siderite. The gold contains significant silver (up to 30.8 wt per cent) and ranges in fineness from 692 to 844. Immiscible liquid-rich fluid inclusions, in quartz protected from recrystallisation by enclosing arsenopyrite, contain carbonic liquid that homogenised at temperatures of 320 - 355¦C. The Sams Creek gold deposit is distinguished from the orogenic gold deposit type by its stockwork veining, magnetite-siderite¦biotite alteration, high sulfide content, ore mineralogy and the absence of mineralisation in the metapelite country rocks. Features of the Sams Creek gold deposit do not fit neatly into existing classifications of granite-related gold-bearing deposits. The peralkaline composition of the Sams Creek granite and the absence of molybdenite and paucity of chalcopyrite, are major points of difference with gold-rich porphyry copper deposits. The presence of a lowsulf idation-state ore mineral assemblage, carbonate alteration and carbonic fluid inclusions at Sams Creek are typical of many of the reduced granitic intrusion-related type of gold deposit. However, notable differences are: the reduced type granites are metaluminous and calc-alkaline; and Sams Creek only has high As in contrast to elevated Bi, W, As, Mo, Te, and Sb in the reduced type. The Sams Creek deposit also shows affinities with gold deposits associated with alkaline magmatism, and it appears to be a new variant of this type as an As-Au deposit associated with a peralkaline granite and lamprophyre.

Jan 1, 2004

By J Ta’ala, M Handyside

Mechanical sampling from conveyors has historically been a staple in the iron ore industry when information related to chemistry, sizing and moisture is required. In order to comply with ISO 3082:2009, samples can be taken either on a mass or time basis provided no bias is introduced by periodical variation in quality or quantity. With the introduction of mechanical sample carousels, you also have the opportunity to collect samples on a mass or time basis. In order to optimise automatic sample stations in a changing production environment, BHP Billiton Iron Ore (BHPBIO) has developed a simulation model that enables the various combinations of mass–mass, mass–time, time–time and time–mass to be investigated.The sample station model can utilise actual (variable) feed rates to achieve high resolution and enables the simulation of sample size variation. Cutter speeds and other settings can then be adjusted to better optimise the performance of the sample station with regards to optimal sample size as well as ensuring the sample station is in compliance with ISO 3082. The model can also assist process engineers in adjusting settings to better optimise the sample station and reduce unwanted events such as blockages. The model can be easily modified to conform to various sample station designs. This paper demonstrates the use of the model and the benefits that can be achieved.CITATION:Handyside, M and Ta’ala, J, 2014. Simulating time versus mass basis?sampling, in Proceedings Sampling 2014 , pp 155–164 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By Rowlands N. J, Zimmermann D. O

The Engel Model search simulator is described with particular emphasis on preparation of input parameters. The computer has a "black box" role in the same way a telephone or radio is a "black box" in communications. A search technique (sensor) is selected and applied in two stages of'search, namely, reconnaissance and detailed. The model relies on knowing and quantifying the parameters of the target sought and the search technique; this is usually done by analogy studies from available literature and experience. The parameters are then balanced by feasibility studies on the search area. Case histories show that the study makes the user aware of what he is likely to find rather than what he wants or needs to find to be viable. Two case histories are presented: one for Mississippi Valley type lead- zinc deposits and another for stratiform copper. The first study showed particular benefits in the input stage and highlighted the fact that one could expect a lot of encouragement by way of interesting results but with little chance of finding the high-grade,

Jan 1, 1974

By L Kormos, V Lawson, G Hill, G Marrs

"In sulfide nickel deposits throughout the world, pentlandite and pyrrhotite are commonly found together along with varying amounts of chalcopyrite and platinum group minerals (PGMs). The mafic or ultramafic host silicates associated with the sulfide mineralisation commonly exhibit a complex assemblage of magnesium bearing silicates, many of which themselves contain significant nickel. Four types of ore are proposed, each presenting their own processing challenges. These are: economic grades of Ni, Cu and PGE (platinum group element) in a pyrrhotite-bearing sulfide deposit, with low pyrrhotite to pentlandite ratios  economic grades of Ni, Cu and PGE in a pyrrhotite-bearing sulfide deposit, with moderate to high pyrrhotite to pentlandite ratios uneconomic high pyrrhotite: low tenor deposits low-grade low sulfide, high MgO ± PGE deposits that can sometimes be economically mined and processed.The grades and recoveries of nickel concentrates produced from sulfide ores can be significantly impacted by the ore mineral texture, the nickel tenor of the sulfides, and the polytype of pyrrhotite which may be either hexagonal (non-magnetic) or monoclinic (magnetic). The mineralogy of the silicates is also of great importance, especially the magnesium silicates and those which tend to produce particles which are asbestiform or which affect slurry viscosity. Other magnesium silicates such as serpentine carry nickel in solid solution, limiting the recovery entitlement of nickel by flotation because serpentine is not amenable to sulfide flotation mechanisms. Differences in plant flow sheets and reagent assemblages are required to effectively separate these minerals.Experience from a variety of plant operations and from extensive flow sheet development programs are discussed. Examples are given of where significant improvements in nickel circuit performance can be made by adjusting plant physical processing conditions or process chemistry to compensate for measurable ore properties and characteristics.CITATION:Lawson, V, Hill, G, Kormos, L and Marrs, G, 2014. The separation of pentlandite from chalcopyrite, pyrrhotite and gangue in nickel projects throughout the world, in Proceedings 12th AusIMM Mill Operators’ Conference 2014, pp 153–162 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 1, 2014

By Kirkhouse C. B

Soon after the Broken Hill Limited started operations at their Iron and Steel Works at Newcastle, NSW, it was found necessary to install a mill for rolling small merchant bars, rounds, etc.An arrangement of the first mill laid down is shown on Plate 1., Fig. 1. This mill commenced operations on the 18th July, 1917.The feed for this mill was rolled in the existing 18-in. mill and sheared to the lengths required before being delivered to the billet storage yard. The billet storage yard is 90 ft. span, and is served by one 10-ton electric overhead travelling crane. Billets were placed on the billet bed preparatory to being charged into the heating furnace.The heating furnace was of the continuous recuperative with end discharge and had a hearth 40 ft. long by 10 ft. wide. The billets were pushed through the furnace by means of two hydraulic rams, which could either act together and push one row of billets, or act singly and push two rows of billets. This furnace was fired by producer gas from the producers shown on Plate I., Fig. l.The gas was conveyed to the furnace by means of a brick underground flue.

Jan 1, 1935

Good morning ladies and gentlemen, and may I extend a particularly warm welcome to our shores to those of you who have travelled from overseas to attend this conference. I trust that you will find your visit to New Zealand both rewarding and enjoyable.   This is now my fourth appearance at a New Zealand minerals conference, the second of which has been jointly co-hosted by AusIMM and Crown Minerals. Since taking on the role of Associate Minister of Energy, I have had the opportunity to meet most of the industry players, and to visit a good number of the major mining operations. Through all of this I have become increasingly aware of not only how dynamic the minerals and coal industry is but also the array of factors that affect investment decisions in this business. Many of these factors, such as commodity prices and availability of investment funds, are determined primarily on the international stage. Others however, such as the allocation, regulatory and the fiscal regimes for minerals, are closer to home and are directly influenced by government policy decisions. I will talk more on what the government proposes in this area shortly.   But first, I would like to commend you all on your industryÆs continuing contribution to New Zealand Æs economy. 2004 has seen New Zealand Æs mineral and coal output top $1 billion for the second consecutive year. To put this achievement in perspective, it represents a staggering 47 per cent increase over the national output value recorded just five years ago. Notable contributions over the year came from gold which increased production to 10.2 tonnes (up nine per cent), ironsand production at 2.3 Mt (a 20 per cent increase), and industrial rocks and building stones (up six per cent) with rock for building, cement and roading showing significant rises on the back of strong regional growth and infrastructure development. Many regions, in particular Auckland, Bay of Plenty, Wellington and Southland, recorded significant increased regional activity with supply often struggling to meet demand. By contrast the coal sector had a relatively steady year with production remaining stable at just over five million tonnes for the second year running. Coal exports however are now consistently exceeding two million tonnes annually, generating export earnings of over $200 million, and could well be higher with rail capacity improvements. Many countries throughout the world are now importing our high quality bituminous coal for steel manufacturing and other industrial uses.

Jan 1, 2005

By Y K. Leong

Occasionally additives are used in the wet processing of iron ore tailings and slurries, for examples, in the thickening of tailings with flocculant to recover process water, and in the smooth pumping of concentrated slurries. They can mitigate slurry behavioural issues that could significantly affect the plant operation and production. The nature of iron ore business requiring the plant to have a high throughput to be economical, large amounts of slurries are therefore processed every day. The quantity of additives needed will correspondingly be large and so are the associated costs. This could have a significant impact on the plant profitability. If additives are used they must be very costeffective. NaOH is among the lowest cost chemicals available, at ~US$400 per ton. In this paper we will look at use of composite additives involving phosphate compounds with NaOH added to reduce the cost, for the control of iron ore slurries rheology. The NaOH worked synergistically with the phosphate compounds. The effectiveness of these composite additives in viscosity reduction can be neutralised by another cheap additive such as lime or a Ca(II)-based salt turning the slurries back to being a paste. Tailings paste is an ideal material for safe storage in the dam. These composite additives can also be used to facilitate the recovery of iron ore at commercial grade from tailings (Leong, 2020a, 2021a).

Sep 18, 2023

By C Hawtin, B Miller, D Ashton

Ernest Henry mine (EHM) is an Iron oxide copper-gold sublevel cave mine located 30 minutes north of Cloncurry in North-West Queensland. The underground mine lies beneath open pit excavations, which were in operation from 1999 to 2011. Fault structures carry large quantities of water from the cover sequence aquifer into the underground mine area. The open cut excavations exacerbates vulnerability of the underground mine to the high intensity wet season storms of northern Queensland. These factors combine to make hydrogeological issues high priority for mine operation. Water-related risks include the cost of removing water from the mine, flooding risk and mud rush potential.Turnover of key technical staff in late 2015 at EHM resulted in the mine being left in an untenable position of losing the primary source of technical knowledge. Due to encouragement of cross-disciplinary activity coupled with workload and resource sharing, the management team were confident in utilising on-site personnel to offset loss of experienced personnel.Remaining geology personnel took additional responsibility for hydrogeological monitoring equipment and planning of upcoming work. Consultant input was limited to review only and an emphasis was placed on knowledge transfer to the geology team. Using this strategy, a 13 hole dewatering program was successfully implemented, achieving a significant water level drop in areas of elevated hydrological risk, whilst also upgrading the hydrological monitoring sensor array.Through a development program centred on cross-disciplinary exposure, the technical team was able to retain key technical knowledge despite staff turnover and produce strong results outside traditional training and roles. This paper serves as a case study on the methods, strengths and drawbacks of putting a focus on cross-disciplinary exposure as a method to combat staff turnover.CITATION:Ashton, D, Miller, B and Hawtin, C, 2017. Go with the flow – managing hydrogeological staff turnover at Ernest Henry mine, in Proceedings Tenth International Mining Geology Conference 2017, pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By I M. Platten, Y Xie

Sampling protocols that are designed to suit the mineralisation style will result in a reduction of the nugget effect and hence resource risk. The a priori need for all sampling programs is the effective characterisation of the mineralisation type(s) to support optimisation. This requires a program of sampling for sampling followed by holistic characterisation. At each end of the coarse-gold to fine-gold spectrum, the samplability of a deposit ranges from relatively simple for fine-grained disseminated gold particles, through to extremely difficult for coarse nuggety mineralisation. Many deposits contain a proportion of both particle size types. The proportion and size of coarse gold particles has a direct impact on the effectiveness of sampling, where coarser particles will require larger samples and more specialised protocols. The nature of mineralisation geology/mineralogy and associated gold particle sizing can only be determined by sampling to facilitate optimised protocols. Mineralogical studies, focusing on particle size, particle clustering and distribution in host minerals, are required as part of wider paragenetic and metallurgical investigations. This paper discusses the role of mineralogical studies in the characterisation of gold ores for sampling optimisation through a series of case studies.

Jan 1, 2008

By Snowden D. V, Standing C. A, Ryba A, Bywater A

McKinnons open pit gold mine, located within the Cobar Basin in New South Wales, is characterised by complex mineralisation controlled by the intersection of steep faults in the hinge zone of an anticline. Resource estimation using indicator variography and indicator kriging was based on RC drilling on 25 in sections together with grade control RC drilling on 12 in by 12 in and 6 m by 6 in patterns. Rigorous sampling and checking procedures were used to verify the reliability of the drill hole data. Blast hole data was used to assist grade control in defining ore block boundaries.

Jan 1, 1997

By D E. Thorp

The mining and concentration operations of New Zealand Steel have been carried out initially from the Waikato North Head (WNH) deposit since 1969 and subsequently from the Taharoa deposit since 1972. Over the years the WNH operation has produced about 1.2 million tonnes of concentrate which has been converted into steel, while total exports to the Japanese Steel Industry from Taharoa reached five million tonnes in February of this year. Recent expansion plans both in domestic steel production and in the ironsand concentrate export market have made it necessary for the company to look closely at, among other areas, the mineral processing of the titaniferous ironsands in both deposits. This paper deals with the recent test work carried out at WNH and Taharoa on the use of the cone concentrator unit as a primary gravity concentrating unit ahead of the magnetic separation stages and as a cleaner concentrator following the primary magnetic separation.

Jan 1, 1977

By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016