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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By H Aral

A rotating magnetic field can be produced in a magnetic separator by using a magnet rotor fitted with alternate north-south magnetic poles, similar to the rotors currently used in modern eddy current separators. Rotation of the magnetic field causes ferromagnetic particles to rotate during magnetic separation. The particle rotation can then be used simply to remove entrapment during a conventional attraction magnetic separation (RMF lift separation), or it can be used to roll particles away from non-rotating particles, and to move them out of the separator under their own rotation (RMF rotation separation). RMF (rotating magnetic field) separation is a separation for ferromagnetic particles. These particles have a very ordered magnetism that is locked into directions of easy magnetisation in the crystal. As a result, if the external field rotates, the particles attempt to rotate with it. RMF separation uses this fact to rotate the ferromagnetic particles in a rotating field. In contrast, paramagnetic particles have a magnetism that can point in any direction with almost equal ease, and these will not rotate in a rotating field. By making use of this difference in magnetic properties, RMF rotation separation can separate ferromagnetic particles from paramagnetic, even when the particles have similar susceptibilities. Some particles such as both chrome spinel and ilmenite can contain ferromagnetic regions within a paramagnetic matrix. These ferromagnetic regions can vary from very small regions dispersed throughout the crystal, through thin lamellae, to larger more bulky regions. Although most natural ilmenite is ferromagnetic and generally has a higher magnetic susceptibility than paramagnetic chrome spinel, the susceptibility ranges for the two minerals overlap considerably (Allen, 2000a) due to the presence of these ferromagnetic elements, frequently making the conventional magnetic separation of these two minerals impractical. It is known that roasting a mixture of ilmenite and chrome spinel particles increases the magnetic susceptibility of the ilmenite while leaving the spinel susceptibility substantially unchanged. This makes the use of conventional (susceptibility attraction) magnetic separation more practical for the separation of these two minerals. However, very little is known about the effects of roasting on the response of ilmenite and spinel particles to a rotating magnetic field. For example, although the optimal ilmenite roasting conditions for conventional magnetic separation are quite well established such conditions may or may not be optimal for RMF rotation separation. Low intensity conventional magnetic separation on the basis of magnetic susceptibility can be made more accurate if it is carried out in a rotating field, because the rapid spinning of the separating particles prevents the formation of magnetic flocs, and reduces entrapment and entrainment. Medium intensity RMF rotation-only separation (no attraction component) has the ability to separate rotating (ferromagnetic) from non-rotating (paramagnetic) particles, irrespective of their relative magnetic susceptibilities. RMF rotation separation is of particular interest in this case because ilmenite particles generally rotate much better than the mainly paramagnetic chrome spinel particles, and roasting could enhance this difference further. Further information on the use of RMF to separate minerals can be found in Allen (2000a; b and c). The aim of this series of tests on a number of Australian ilmenites was to compare some different oxidising and reducing roast methods and to establish whether the use of RMF rotation separation improves the chrome spinel rejection.

Jan 1, 2001

By K Nilsson, D Connelly

Troy Resources acquired the Karouni Gold Project in Guyana, South America in 2014 and immediately proceeded to a Pre-Feasibility Study and project implementation. The study considered two open pit mines feeding a conventional carbon in leach (CIL) gold plant with a capacity of 1Mtpa. The study assumed a total of 2.61 million tonnes of ore with an average grade of 3.84 g/t gold with a recovered gold production of 303,526 ounces over a three year mine life.The project development involved drilling metallurgical test holes, securing second-hand major pieces of equipment where suitable, and arranging shipping to Guyana. The remote location meant logistical considerations were paramount. The plant consists of conventional two-stage crushing with single stage ball milling and a gravity circuit. The tailings circuit includes DETOX.The extremely high rainfall presented challenges with water management and the necessity to dispose of clean water to the environment. The DETOX was also mandatory due to the highly sensitive environment and past history in the area. The criticality of this meant that in the design, any cyanide in the tailings would precipitate in a plant shutdown.Lessons were learned and the project has been both profitable and successful for Troy Resources in a new operating location. In addition, the project has created jobs, delivered royalties and brought new skills into an area where previously there was little current mining activity.CITATION:Nilsson, K and Connelly, D, 2015. Karouni Gold Project from drill core to commissioning, in Proceedings MetPlant 2015, pp 197–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

The Significance of Internal Recycle in Froth Flotation

Sep 13, 2010

Using DEM to Model Industrial Banana Screens

Sep 13, 2010

By K L. Brown

In the Waiotapu geothermal area only Champagne Pool, 109 ng/L, and Waiotapu Geyser, 7.6 ng/L, have dissolved Au concentrations greater than 5 ng/L and most springs have concentrations less than 2 ng/L. When Au concentration data are combined with other physico-chemical data from each spring including; pH, reduced sulphur concentration and temperature, the degree of Au saturation can be calculated. All samples sites except Champagne Pool, Waiotapu Geyser and the Artists Palette are under-saturated with respect to Au(s) by 1 to 3 orders of magnitude. This indicates that adsorption or co-precipitation or both are important processes depositing Au beneath hot springs. Deposition of Au by adsorption or co-precipitation beneath hot springs implies that dissolved Au may not have to reach saturation concentrations for ore to deposit. This interpretation is supported by the presence of substantial Au as sub-microscopic components within sulphide minerals in ore deposits and indicates depositional efficiency beyond that possible through precipitation of Au(s).

Jan 1, 2004

By B Belle

In a predrained gassy coalmine, ventilation control plays a secondary role to the longwall (LW) goaf drainage systems to safely manage panel return gas levels. Typically, the LW specific gas emission (SGE) estimation models provide anticipated goaf gas emissions and arriving at required gas drainage capacity for various coal production scenarios. A study comparing the various LW goaf gas hole spacing patterns with weekly production rates of up to 270 kt/w of an operating mine with high SGE rates (~20 m3/t) was carried out. The goaf capture efficiency of LW panels ranged from 64 per cent to 85 per cent. For the first time, gas content of upper seam data post LW retreat were used to verify the current SGE prediction models. This study has shown that an average of 50 m goaf spacing is optimal for management of high production retreat gassy LW panels in presence of multiple upper and lower seams with gas emission zone influence reaching up to 200 m above workings. Due to the horizontal stress direction related geotechnical issues, goaf hole failures just behind the LW face is a recurring challenge resulting in significant and immediate increase in LW panel return gas levels. This paper highlights the shortcomings of current SGE prediction models for goaf gas estimation, and evolution of 50 m goaf hole spacing embedded in design process in managing the LW tailgate gas levels.CITATION:Belle, B, 2017. Optimal goaf hole spacing in high production gassy Australian longwall mines – operational experiences, in Proceedings Australian Mine Vent Conference 2017, pp 15–26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By A M. Sherwood

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.

Jan 1, 2005

By S E. Munro, P D. Munro

The commonly traded base metals concentrates of copper, lead, tin and zinc are sold by miners to custom smelters using contracts whose terms were generally established at the beginning of the 20th century or even earlier. Technical clauses in these concentrates for items such as payable metals and penalty elements do not reflect current realities of extractive metallurgical technologies and hygiene/environmental issues.It is an axiom that the miners and smelters have a symbiotic relationship. While the existing antique and arcane commercial arrangements serve the purpose of transferring money from the buyer to the seller, they are not likely to result in the industry achieving better overall technical and economic outcomes. By examining the cases for copper concentrates and zinc concentrates in particular, it will be shown that the practical application of these antiquated technical clauses does not drive the miners to produce the better quality concentrates that should be desired by the smelters. This is despite development of mineral beneficiation and hydrometallurgical technologies that would allow the miners to make better products.The adage that any extractive metallurgical problem in the smelter is cheaper to solve in the concentrator still generally holds.While nickel concentrates are only touched on lightly in this discussion because sales terms are more opaque than those for the other base metals, it is expected that the same conclusions will apply.CITATION:Munro, P D and Munro, S E, 2015. Base metals concentrate sales contracts – change Pavlov and the dog, in Proceedings MetPlant 2015, pp 46–60 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

The use of walk-through inspections, approvals and ad hoc investigations to ensure risk is kept within acceptable levels is reaching its limits of effectiveness. Further improvement in occupational health and safety requires a systems approach, and the use of Quality Management principles is an obvious basis for this. SafeGuard, a æbest practiceÆ model health and safety management system and audit criteria based on AS/NZS ISO 9001:1994, has been produced by the Department of Mines and Energy. Quality style audits of mine and quarry health and safety systems are now being carried out by the Inspectorate.

Jan 1, 1998

The extractive industry has been faced with a situation where there has been no systematic and formalised training and education structure available. Previous structures which were available, e.g. the quarrying diploma and the mining papers as a part of an engineering degree, have suffered the same fate as the Dodo. They are now extinct.   In providing for a training strategy, the past strategies need to be examined and reasons behind their demise examined. This paper examines the reasons for past failures in education and training in the extractives industry, the factors that need to be taken into account in creating an education and training culture, the strategies required, the Government regulations and trans-Tasman agreements, and the quality management which must surround the entire training programme.

Jan 1, 1997

The mining industry is the largest source of foreign income for South Africa. It is also the main source of employment in the country and, as an industry; it is also one of the largest. Due to the labour-intensive nature of the industry, labour costs in South African mines make up nearly 50 per cent of the total mine cost. It is thus imperative to have optimum labour planning and labour management systems in place.The focus of this study was to investigate current underground labour-planning models. It is shown that there are serious limitations. The range between an oversupply and undersupply of labour can be as high as ten per cent. A new system was therefore developed to ensure a constant labour demand and supply on a daily basis. One of the main objectives was to determine the existing labour supply range and thus the requirements to fill the undersupply. For this purpose, a specific methodology was designed to capture and process all the relevant information. Mine personnel was involved throughout the entire process to ensure ownership of the new model. This buy-in was achieved through planning workshops, interactive presentations and discussions. The improved frequency of daily blasts validated the new system by providing the correct amount and mix of the labour force. The new labour-planning model was then extended to optimise revenue. Implementation on a mine resulted in increased income of R95 million.

Dec 6, 2010

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.Low-sulfidation epithermal gold mineralisation at Ridge Mountain occurs within the Oligocene to Miocene volcanic rocks comprising andesite, porphyritic dacite and diatreme breccia. A diatreme breccia complex with a NE–SW elongated orientation covers an area of 3.0 × 1.7 km. Four main stages of mineralisation were identified, comprising: E–W- to NW–SE-trending quartz-chalcedony veins with disseminated pyrite, chalcopyrite and gold. N–S- to NNE–SSW-trending breccia veins with quartz matrix and disseminated pyrite and accessory sphalerite, galena, chalcopyrite and gold. NE–SW-trending quartz and calcite veins with disseminated pyrite and accessory sphalerite, galena, chalcopyrite and gold. ESE–WNW- to ENE–WSW-trending quartz veins with disseminated pyrite. This stage is only mineralisation that is hosted by diatreme breccia and clearly postdates.Quartz veins of the first, third and fourth stage are less than 2 m wide. Only breccia veins of the second stage are up to 10 m wide. Gold is present in all stages as microscopic inclusions in quartz and sporadically in pyrite. Macroscopic gold can be seen in the first and second mineralisation stages. Gold commonly occurs in association with sphalerite, galena and chalcopyrite in the second and third mineralisation stages.CITATION:Kucera, J, 2015. Diatreme breccia-hosted epithermal gold deposit at Ridge Mountain, eastern Mindanao, Philippines, in Proceedings PACRIM 2015 Congress, pp 587–592 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

Drill blasting is a widely used method for rock fragmentation in mining, quarrying and construction industries. Environmental effects such as air shocks, dust, flying rocks and ground vibration are unavoidable results and undesired effects of blasting. Among these ground vibrations can have a damaging effect and may influence on long distances. Therefore various researchers have developed mathematical models to predict ground vibration after blasting. These models take into account the amount of explosive, distance and several coefficients related to the field under investigation. The developed models to predict ground vibration may yield different results for the same case. Selection of the most suitable model requires engineering judgment and evaluation of models. At this point, a computerised system helps the engineer to evaluate and select the most suitable model in order to design and plan a blasting pattern. The safe charge of explosive and magnitude of vibration after blasting should be predicted beforehand. Therefore a computer program namely 'prediction of blast induced vibration' (P-BIV) has been developed. This paper introduces and presents a computer program (P-BIV) which includes the set of models developed to estimate ground vibration to provide blasting engineers a tool to determine the amount of explosive for safe blasting.

Dec 6, 2010

Bioremediation of Acid Mine Water Using Fly Ash and Desulfotomaculum nigrificans One of the major concerns for the mining industry especially after the mine closure is the generation of acid mine drainage (AMD), and its discharge into the environment surrounding the abandoned mines, leading to serious environmental pollution. AMD is usually characterized by high concentration of dissolved metal ions, sulfate and low pH. The efficacy of fly ash was assessed for the removal of metal ions such as iron, zinc and copper as well as sulfate from synthetic acid mine water. Complete removal of ferric and ferrous, 80 per cent of Zn, 83 per cent of Cu and 62 per cent sulfate removal could be achieved, with a concomitant increase in the pH value from 2.3 to 7 using fly ash as an adsorbent under appropriate conditions. The free energy of adsorption of the metal ions onto fly ash was found to be negative, while the adsorption process was endothermic and adhered to the Lagergren pseudo-first order rate equation. Bioremediation studies using a typical sulfate reducing bacterium namely Desulfotomaculum nigrificans, after pre-treatment of the synthetic acid mine water with fly ash, cumulatively resulted in about 94 per cent zinc, 100 per cent copper and 90 per cent sulfate removal. The possible mechanisms of metal ion removal and sulfate reduction from acid mine water utilising Desulfotomaculum nigrificans are discussed.

Sep 13, 2010

By C S. Szentesy, K Howie

The Rosia Montana gold deposit is located within the æGolden QuadrilateralÆ area in the Apuseni Mountains of Transylvania, Romania. The deposit is situated approximately 85 kilometres north of the regional centre of Deva, within the province of Alba, at elevations of up to 1100 metres above sea level. The Rosia Montana deposit contains a current resource of 344.07 million tonnes at an average grade of 1.3 grams per tonne (g/t) gold (Au) and 6.0 g/t silver (Ag) for a total (measured, indicated and inferred) contained resource of 14.29 million ounces of gold and 67.00 million ounces of silver. The resource was calculated using a 0.6g/t Au cut-off, a 10 x 10 x 10 metre block size and multiple indicator kriging. The low sulfidation style epithermal mineralisation at Rosia Montana is hosted within Tertiary age dacite intrusions and related vent breccias. Mineralisation is generally disseminated and associated with silica, adularia, illite, pyrite and carbonate alteration of host rocks, with minor late carbonate-base metal veins. Precipitation of precious metals is generally considered to have occurred as a result of over-pressurization, boiling and subsequent brecciation. The dacite intrusions are hosted in Cretaceous shallow marine and deltaic shales and slates, which overlie older Paleozoic sedimentary and metamorphic rocks within uplifted sections of oceanic sea floor.

Jan 1, 2002

Triboelectric Separation - Beneficiation of Coal The performance of triboelectric separators is highly sensitive to the selectivity of the particle charging process. This paper presents a quantitative study on triboelectric coal beneficiation. The performance of different charging media was studied. Stainless steel was identified as having a work function between that of coal and silicate gangue and found to be the optimum charging medium for coal beneficiation. Recent results from separation tests were performed where silicate gangue was separated from crude coal using a parallel plate free-fall separator are illustrated.

Sep 13, 2010

Rheological Behaviour of Clay-Rich Gangue Mineral Dispersions During Hydrometallurgical Treatment Alumino-silicate minerals invariable may present an intractable challenge in hydrometallurgical operations employed in low grade nickel, copper and gold ore leaching or high level nuclear waste (HLNW) processing. The interactions and reactivity of alumino-silicate clay gangue minerals such as muscovite/sericite, chlorite, kaolinite and smectite under acidic (eg pH <3) or alkaline (pH >13) conditions can have a striking impact on the particle interactions. These may manifest in undesirable pulp rheology, poor extraction rates and challenges in the subsequent "handleability" and solid-liquid separation processes (eg dewatering). In the present work, a review of investigations involving the interfacial chemistry, interactions and rheological behaviour of aqueous dispersions of mica-group, layered alumino-silicate clay (muscovite / sericite) and chalcocite minerals as a function of pH in the range 2 - 9 and time at 25¦C, is presented. Particle zeta potential, reflecting interfacial chemistry, indicated a strong pH-history and particle volume fraction dependency. Pristine particles' zeta potentials measured from high to low pH indicated mineral-specific isoelectric point (iep) at pH range 2 - 5. Subsequent measurements from low to high pH showed pH-history dependency with iep shift to higher pH values, the extent of which also depended upon particle volume fraction and aging time. Pulp pH-mediated particle interactions revealed by shear yield stress analysis displayed a bifurcation behaviour and good compliance with DLVO theory. The maximum pulp yield values occurred at the iep whilst weak rheology was observed where the magnitude of the particle zeta potential was greatest. The pivotal role played by both pulp chemistry and suspension conditions in regulating the particle interactions and concomitant rheological behaviour is highlighted. The implications of the findings with regards to clay-base pulps' handleability and its control during aqueous processing are discussed.  

Sep 13, 2010

By C Adams

Reports of delays and cost blowouts in major study and construction projects are becoming increasingly prevalent in the resources industry. This is mainly being attributed to an escalating cost environment associated with the increased number of projects in the development to construction pipeline and a scarcity of competent skilled resources to deliver these projects. However, not all this effect can be directly attributed to the current environment. Historically the mining industry has not performed well in its ability to deliver projects according to the financial and physical parameters forecast in the feasibility study process. To manage the risks associated with delivery of major projects, resource companies need to ensure they use a standardised approach to management of their project development to satisfy project objectives and enable more efficient use of the increasingly limited available resources. Each discrete step in advancing the project from scoping study to operations needs to be integrated, reducing the amount of rework and duplication. This paper is primarily a consolidation of existing ideas on project management systems but also introduces new concepts to solve current issues. It describes the basic components of a typical mining project, the issues that commonly arise, the key attributes, and critical steps required for an effective integrated project management system covering projects from initial scoping studies through to project commissioning and operation. This paper focuses on technical study components of the mine development project with allowance for transitioning to design and construction and operation phases.

Jan 1, 2006

The Direct and Indirect Effects of the Reagent Suite on Froth Stability in Laboratory Scale Batch Flotation Tests

Sep 13, 2010