Search Documents

By J Gould, T Elkington

Mine operation strategies are commonly optimised with a net present value (NPV) maximisation objective. There are well known properties of a typical mining project optimised for NPV, including high production rates and declining cut-off grade schedules. In practice, however, frequently there are operations that diverge from such NPV-maximising properties. Although a range of reasons for this can be at play, one possible explanation is that operators intuitively adjust their strategies to compensate for the flaws inherent to NPV maximisation. In particular, NPV analysis does not reflect the benefits of managerial flexibility inherent in a mining plan. Real options valuation (ROV) is an alternative approach that addresses this issue. We compare the properties of NPV and ROV optimisation solutions generated for the same scenario. Our simple case study demonstrates that the presence of real operating options in the optimisation model not only entails increased project value as expected, but also tends to encourage lower processing capacity (with lower associated capital cost), higher cut-off grades and greater use of stockpiles.CITATION:Elkington, T and Gould, J, 2012. Real option value optimisation, in Proceedings Project Evaluation 2012 , pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By N McKenzie, E Taylor, S V. L Barrett, H Lagger, A Purwodihardjo

This paper discusses the temporary support design methodology for the largest road caverns ever built in Australia—the Lutwyche Caverns—part of the Airport Link project in Brisbane, Australia. The Lutwyche Caverns with a maximum excavated span of 27 m form a key component of this major road project, allowing on and off ramps merging with the underground highway. In addition to the two large span caverns, a 15 m soft ground tunnel with 5 m cover above the caverns and two 24 m deep burial chambers for the 12.4 m tunnel boring machines (TBMs) had to be built in record time at Lutwyche.The temporary support design methodology involved the use of a range of analytical approaches, including empirical methods to provide a starting point for design development, key block models to determine the potential influence of discontinuities on excavation stability and 2/3D continuum and discontinuum models to determine the potential influence of adjacent excavations and the proposed construction staging on the design. In addition, probabilistic analysis of potential kinematic instability using a discrete fracture network (DFN) approach was also undertaken to establish the critical block loads for the temporary lining, while the continuum and discontinuum models were used to design the support for the 1.5 m diameter rock pillar at the north end of the northbound cavern.The numerical modelling was undertaken in close conjunction with the contractor to develop the optimal construction sequence, considering the available construction equipment on-site and the overall project program requirements. Part of the presentation will further show the applicability of the developed design during construction (deformations, monitoring field observations) and lessons learned for future cavern construction in Australia.CITATION:Lagger, H, Purwodihardjo, A, Barrett, S V L, McKenzie, N and Taylor, E, 2014. Temporary support design for the largest road caverns ever built in Australia – the Lutwyche Caverns, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 399–410 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By G Bubner, C Gaughan

Magnetite mineralisation within the South Middleback Range has been known since the early 1930s; however, it was not until 1989 that BHP (then owners of the Middleback Ranges mining leases) drilled 10 700 m of diamond core into what was then known as the Iron Duchess low-grade deposit. In 2002 a review of Iron Resources left in the Middleback Ranges and the identification of downstream processing benefits using magnetite as a primary feed source led to the commencement of an 18 000 m resource drilling program of the high-grade core of the Iron Duchess low-grade orebody (renamed the Iron Magnet deposit). This paper describes the geology, processes and procedures used since drilling recommenced in early 2003. The Iron Magnet deposit is located 53 km southwest of Whyalla in the South Middleback Range, South Australia. It is a Paleoproterozoic stratabound magnetite deposit that lies down-dip and lateral to the Iron Duke hematite deposit, hosted within the Lower Middleback Iron Formation of the Hutchison Group meta-sediments within the Cleve subdomain of the Gawler Craton. Magnetite bearing host units within the Lower Middleback Iron Formation can be divided into a æmixedÆ basal sequence, a lower iron carbonate unit, a middle iron talc unit and an upper iron silica unit, all units grading up sequence and laterally into one another. The magnetite mineralisation is hydrothermal in origin. The strongest consistent mineralisation coincides with the iron carbonate unit, and the hematite orebodies of the Iron Duke are interpreted to represent up-dip supergene enrichment of the same unit. The Iron Magnet occurs within a large-scale parasitic syncline-anticline pair on the west limb of a larger syncline. Major bounding north-south shear zones occur on the east and west sides of the deposit. Cross-cutting west-northwest, northwest, northeast and east-northeast trending faults displace mineralisation. The commencement of drilling in 2003 lead to the migration of geological and geochemical databases, re-logging and re-assaying of all old cores that intersected the deposit, updating of logging codes and procedures, and strict Qa/Qc procedures to ensure the study satisfied JORC standards. External consultants were used for auditing and bench marking. The strong geophysical responses of magnetite and the wealth of close spaced ground magnetic and gravity data already completed over the Middleback Ranges allowed for refining of drill hole targets for the drilling program. It also provided an indirect method for ascertaining magnetite grade and tonnage volumes.

Jan 1, 2005

The demand for gallium has increased significantly over the last few decades due to the expanding use of Ga compounds in the electronics industry. Because it is widely dispersed and rarely found naturally in concentrations greater than 0.1%, Ga is expensive (approximately US$500/kg) and difficult to produce in large quantities.   A previous study of metals in geothermal systems reported significant quantities of Ga present in the muds on the northeast margin of Lake Rotokawa, an acidic lake associated with a high-temperature geothermal field situated in the Taupo Volcanic Zone of New Zealand. Similar muds are present in many other geothermal fields in the zone, suggesting that geothermal muds could be a commercial source ofGa.

Jan 1, 1994

By R L. Brathwaite

In New Zealand, volcanogenic massive sulfide (VMS) deposits are found in three main geological environments associated with: 1.   ophiolitic basalts of Oligocene age in Northland and East Cape (eg Pupuke, Pakotai, Parakao and Lottin Point); 2.   with chert and pillow lava in greywacke sequences of Permian-Jurassic age (Torlesse and Waipapa terranes; eg Kawau Island, Te Kumi and Maharahara) and their metamorphic equivalents (Haast Schist; eg Moke Creek and Waitahuna); and 3.   with greenschists (metabasalts) and metaserpentinite of Permian-Triassic age (Ponamu Ultramafics) in Westland (eg Bowen and Wilberg ranges). The deposits consist of small lenses of disseminated to massive sulfide minerals, mainly pyrite and chalcopyrite. Small quantities of copper ore were mined from some deposits in the 1800s (eg Kawau Island from 1846), with the last mining at Parakao from 1961 to 1966. Several deposits have been recently examined for their gold potential with assays on sulfide rock samples as high as 75 g/t Au (Lottin Point).

Jan 1, 2005

By M Norbert, D O’Connor

The mainline running tunnels for Legacy Way comprise two tunnel boring machine (TBM) driven tunnels. Both TBM drives commenced at the Launch Portal adjacent the Mt Coot-tha Road. Excessive surface settlement arising from tunnelling would have had a significant impact to the road infrastructure. The geological structure above the tunnel springline is a mixture of fill, residual soil and weak rock. Given the combination of low ground cover and weak ground materials, along with the use of an open face TBM, an oversize pipe umbrella system has been installed above the tunnels. This pipe umbrella system is similar to that commonly adopted in conventional mined excavation support in soft ground except that the steel pipes are substantially larger in geometry and filled with concrete. It is acknowledged that similar systems with oversize pipe umbrella have been adopted elsewhere in the world in other projects. These systems often comprise of a full arch formed by conjoining oversize steel pipes (in contact only). By aligning the pipes in contact, the arching behaviour of the steel pipe would have been enhanced. However, this poses a degree of construction difficulty due to excavation and installation method of the pipes. The Legacy Way pipe umbrella system only consists of a partial arch at the tunnel crown and each pipe is spaced approximately 1200 mm apart with 900 mm diameter pipe, leaving a gap of approximately 300 mm between pipes. A reinforced concrete portal block was used to support the exposed ends of the pipes.This paper reviews the design analysis, the recorded deflections from the pipe umbrellas and surface monitoring during TBM launch and revisits the analysis using the newly available RS3 program, from Rocscience for 3D analysis of geotechnical structures.CITATION:Norbert, M and O’Connor, D, 2014. Starting the journey – launching of the Legacy Way open face tunnel boring machines in mixed face ground conditions, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 307–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Miners and explorers in New Zealand are expected to consult with stakeholders, keep out of core conservation areas, and operate a high standard of environmental management and rehabilitation. These requirements are not difficult to meet, but many of the industry's own actions have brought it to a low level of general public esteem in New Zealand. Reasons for this are discussed, drawing examples from the Maruia Society's experiences with the industry since the mid-1980s. The boundary between core conservation areas and other land is not easily drawn, and the Maruia Society has sought to work with the mining industry to promote legislation for net conservation benefit trade-offs. However this initiative was not successful. Today the industry, unlike most other major industry sectors in New Zealand, has no accord with the country's conservation movement.

Jan 1, 1997

Large mining operations need equipment that consistently performs as expected. The most effective way of ensuring this is to have a defined life cycle with an optimised maintenance strategy. The determination of this life cycle is an economic decision, influenced by the construction and utilisation of the equipment. An effective life cycle costing (LCC) tool must be able to process the many variable factors involved.Many factors influence the costs that are associated with a machine over its life. The most variable of these are the costs of maintaining the equipment. Maintenance costs are dependant not only on the utilisation of the machine, but also on the strategy that has been developed to support the machine through its life. A combination of supplier support, component changes, regular servicing and unscheduled maintenance needs to be modelled, based on a variety of drivers. Traditionally spreadsheets have been used to model these factors, but the increasing complexity of the situation can make spreadsheets unwieldy and difficult to manage. A database solution that breaks each activity into its constituent components, links them to an associated mine plan driver and then aggregates the result is the ideal tool to provide a time based cost profile. The evaluation of a number of scenarios, representing different maintenance strategies/life cycles can be rapidly undertaken. Auditability through inbuilt tools is required to provide easy tracing of data. Use of the host company's account structure allows for reporting against the standard chart of accounts.

Dec 6, 2010

By Secis R

Northparkes Mines is located 27 km northwest of Parkes in central west New South Wales. The E26 deposit is the largest of all defined to-date in the area, containing over 50 per cent of Northparkes' resources and reserves. The combination of orebody geometry and geotechnical characteristics provide ideal conditions for the block cave method of mining of the first lift of the E26 deposit. Although this method of underground mining has been used for decades in other countries, E26 is the first example of its use in Australia. Copper-gold mineralisation at Northparkes is related to quartz monzonite porphyries that have intruded coeval Ordovician volcanics. Sulphide mineralisation (dominantly bornite and chalcopyrite) occurs principally within quartz veins associated with the porphyry intrusions. Veining and mineralisation occurs within both the porphyries and volcanics. To optimise the recovery of a resource within a block cave mine, a good understanding of the rock mass and ore flow characteristics is essential. These have a significant effect on the fragmentation size and range and on parameters such as the drawzone spacing, height of interaction zone and dilution entry. As ore within a cave column moves and mixes when material is extracted from below and beside it, the total reserve extracted is unique for a particular draw strategy/production history. Until recently, reserve estimates and production schedules were based on the application of a uniform dilution factor to the tabulated resource. However, given the complicated flow and mixing within the cave column, such a simplistic approach can produce erroneous results. Northparkes Mines purchased and sponsored the upgrading of a commercially available software package specifically developed for modelling removal of resource blocks under caving conditions. This Gemcom software package, PC-BC, has been used for mine planning, reserve reporting and production scheduling. Blocks within it resource block model are converted into a mineable reserve taking into account mixing and dilution during depletion of drawcolumns (by horizontal and vertical redistribution of insitu tonnage and metal). As PC-BC gives individual drawpoint reserves, it can be used during the planning stage to determine whether or not a drawpoint is economic. For E26 Lift I an optimal layout containing 130 drawpoints has been developed based on a nominal 14 m x 14 m drawpoint spacing and a 0.8 per cent equivalent copper (eCu) cut-off grade. Annual production schedules for the depletion of material above this layout are based on: I higher tonnage removal from higher grade drawpoints in the early years of production; and 2 drawpoint production rates proportional to the total tonnage of orr remaining in the drawcolumn up to the optimal height of draw tier subsequent years. The reserve is tabulated from the combined annual production schedules over the life of the lift. The pre-mining reserve for Lift I of E26 is 26.6 Mt at 1.43 per cent copper and 0.39 g/t gold, of which approximately 23.4 Mt will be extracted under caving conditions. By scaling down the annual production schedule, weekly drawpoint tonnage calls can be given for short-tern production scheduling.

Jan 1, 1997

By I P. Hodkinson

SMC Resources Limited is implementing a selective mining approach at the Hadleigh Castle mine, formerly operated by Aurora Gold Limited. The main ore zone has a length of 250 metres and dips at 40 - 45¦ to the south. Gold mineralisation occurs in a variety of quartz-sulphide lodes in sericitised granodiorite. Shallow dips, alteration intensity and mineralisation style combine to make mining relatively difficult. Previously unworked, high-grade, shallow dipping (30 - 45¦), narrow quartz-sulphide lodes within the hanging-wall of the deposit are also being selectively exploited. Annual production of 35 000 oz Au is forecast from 185 000 tpa ore grading 6.5 g/t Au over a currently envisaged mine life of six years. Operations completed to-date include deepening the decline and access development of the first two levels beneath the previous workings. Longhole stoping operations have commenced in the main ore zone with air leg stoping also underway in the hanging wall lodes.

Jan 1, 1998

By M Pizey, C Ross

Rehabilitation approaches, methods and outcomes have changed markedly over the last 100 years, and especially over the last 20 years. Alluvial gold dredges have moved from creating a legacy of boulder fields and ponds to radiata pine plantations and highly productive dairy pastures. The rehabilitated farmland has reduced flood risk, improved drainage and efficient paddock design. The next challenge is to include areas of environmental diversity in these projects, for example, shelter belts, patches of native trees, and wetlands that were part of the original landscape.   West Coast coal mines have also come from a legacy of leaving it to nature to rehabilitate damage by mining to establishing native ecosystems or plantation forests. Developments in techniques at Stockton Mine are used to illustrate the changes in approach to rehabilitation of native forest and tussock heathland ecosystems. The proposed Cypress Mine will adopt a full range of avoidance, remediation through rehabilitation, and off-site mitigation techniques in a æthree-prongedÆ approach.   We propose a coordinated extractive industry approach to mitigate for the impacts of mining on native ecosystems and achieve nationally important conservation benefits that individual projects cannot afford. This approach is particularly beneficial in New Zealand, as our native ecosystems must be actively managed to conserve native plants and animals. Currently, some important species and ecosystems are not being actively managed for conservation.

Jan 1, 2004

By P Holtham, K Duffy, W Valery, A Jankovic

In the face of increasing energy costs, limited water resources, more stringent legislation, and lower feed grades, the mining industry is searching for more sustainable technologies and practices. Metso Process Technology and Innovation (PTI) is undertaking a research project, ‘improving the resource and eco-efficiency of mining operations’, to help the industry meet these challenges. The project is investigating alternatives in mining and processing that reduce energy and water consumption, minimise emissions and waste, and maximise the value recovered from the deposit. The targets are to reduce energy usage by more than 30 per cent and greenhouse gas emissions by more than 50 per cent compared to current practice.Key areas of interest were identified across mining and processing operations. These were grouped into the following interrelated work areas for investigation: high intensity selective blasting, in-pit crushing and conveying, preconcentration, energy efficient comminution circuits and technologies, coarse particle flotation, and water recovery optimisation. Investigations have included reviews of industrial data, modelling, simulation, and laboratory and pilot scale trials. In some areas industrial scale trials will commence shortly. This paper discusses the investigations and key findings from the project so far; highlighting the possibilities for reducing energy consumption, water usage and carbon emissions. A particular mining process may incorporate any combination of the alternatives identified and requires tailored solutions based on a detailed understanding of the ore deposit, the process and local conditions. The focus is on improving resource efficiency; creating more value with less impact and consequently a better economic return from the available resource. Technologies exist today that can transform mining into a more efficient industry for tomorrow.CITATION:Duffy, K, Valery, W, Jankovic, A and Holtham, P, 2015. Resource efficient mining processes of tomorrow, in Proceedings Third International Future Mining Conference, pp 227–238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By R M. Arellano, D M. W Harney, M Makhuvha

Mineral resource and ore reserve estimates are founded on two sources of data: tonnage and grade. The tonnage is a product of volume and density; both of which are estimates. Density impacts numerous operational factors, which include, but are not limited to, mine design, mine planning, equipment selection and operational performance. Hence, density is a significant parameter and its determination requires similar care as the measurement of grade. Selecting an appropriate method to determine density, and ensuring its rigorous application, thus reduces risk and can improve operational performance, which in turn increases profit margin.Different Anglo American sites use a variety of practices and protocols to determine density, which is highly dependent on the physical characteristics of the orebody, local conditions and historical practices. Also, individual sites sometimes execute the same method in a slightly different way, which may also affect the outcome of the measurements. In order to gain a better understanding of how density is determined at Anglo American projects and operations, a review of these techniques was undertaken. The objective of the study was to identify and share good practices across the company, as well as to look for improvement opportunities, where applicable. Ten different methods of measuring density, applied to nine different commodities, were identified and described. An additional technique was recently developed by Anglo American Technical Solutions. The core pycnometer is a large gas displacement pycnometer capable of measuring density at high accuracy on full pieces of intact core.This paper provides an overview of methods used to determine density within the Anglo American Group, including quality control and quality assurance aspects. It is not the purpose of this paper to identify a preferred method, but to highlight the importance of choosing the best suited practice for a project or mine site. In addition, a case study comparing two different density determination methods applied to the same rock samples from the Los Bronces Copper mine was undertaken and the results of that study are presented here.Selecting the most appropriate method to determine density and comparing results from two or more techniques against each other, together with other suitable quality control procedures, is considered to be of utmost importance for all mining operations and exploration projects.CITATION:Makhuvha, M, Arellano, R M and Harney, D M W, 2014. Determination of bulk density in Anglo American plc, methods and impacts, with a case study from Los Bronces Mine, in Proceedings Ninth International Mining Geology Conference 2014 , pp 85–96 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By L Nienaber

Mines, after becoming operational, often retain the same support and reinforcement designs developed in the feasibility study. These designs are conceived from limited drilling data and regional experience, thus having an empirical flavour. Empirical designs are perceived to be conservative, catering for a variety of failure mechanisms, which are not always present in mine development drives.This begs the question: If you were to invest in the necessary resources to obtain sufficient data and complete the required analyses for the different development drives in the mine, to engineer a support and reinforcement scheme with the capacity to match the demand of the rock mass, what is the difference in cost when comparing an empirical design to an engineered design?To answer this question, mine tunnels with different geometries and orientations, where detailed structural data was available, were selected for a comparative design exercise. Material cost, development cost, cycle time and professional fees for engineered and empirical designs were estimated. The outcome is summarised in the following paper that discusses the process followed and the results of the design comparison.

Mar 8, 2011

By K B. Quast, A Schuurmans

Laboratory batch rod and ball milling tests were conducted on samples of Heavy Medium Separator (HMS) sinks from Renison Limited. The effects of mill rotation speed, rod volume and ball size on the resulting product size distribution were investigated. Between 48 and 69 per cent of critical speed, the product sizing distribution curves remained very similar, with a finer grind resulting from increasing the speed of rotation at constant grind time. Increasing the rod loading from ten to 53 per cent by volume caused the product size to become finer and more closely sized with a transition occurring at approximately 29 per cent. This was interpreted as a change of dominant grinding mechanism from abrasion to impact. No preferential grinding of the cassiterite was observed. The effect of increasing ball size at constant charge weight was to preferentially grind the coarser particles and generate more intermediate sized particles, whereas the product from a mixed ball charge gave a distribution similar to that obtained when a charge containing only smaller balls was used.

Jan 1, 1998

By L A. Martinez Tipe, J McKibben, S Barry

"Metal prices are central to a mineral investment decision and have a profound impact on the financial performance of companies in the mining industry. At its most basic level, metal prices are influenced by the disequilibrium between international metal volume supply and demand. That is, the commodity price is a regulator that equates international metal supply and demand where inventories act as a buffer between the emergence of this disequilibrium and its dissolution through a price change.From this viewpoint, mining companies are required to forecast metal and bulk commodity prices when evaluating minerals projects through discounted cash flow (DCF) analysis. While supply-demand models are instructive, many companies use historical prices, spot prices, futures/forward pricing and consensus opinion (or a combination of all of these) to develop price forecasts.This paper discusses the definition, fundamentals and differences between futures/forward and consensus pricing and the appropriateness of each in a DCF model for mine project economic evaluation.Our results demonstrate that great care is required when using either futures/forward or consensus pricing and that the decision to use one rather than the other requires consideration of other important elements in the DCF model (ie the risk-adjusted discount rate).CITATION:Martinez Tipe, L A, McKibben, J and Barry, S, 2016. Metal prices and the differences between forward and consensus pricing – which one is better for use in a discounted cash flow model?, in Proceedings Project Evaluation 2016, pp 149–158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By P K. Wong, D A. F Oliveira, F M. Azad

In situations where foundation piles are located in proximity to existing or future tunnels, it is typical for the tunnel owner to require that sleeving of the piles be carried out to at least the invert of the tunnels to minimise any load transfer to the tunnel lining. In competent rock, this practice may be sometimes unnecessary, thus uneconomical. This paper presents an assessment of the effect of pile loading from one of the multi-storey buildings at Barangaroo South in Sydney on the adjacent future Sydney Metro tunnels. It was originally required by Transport for NSW (TfNSW) that the piles be sleeved below the tunnel invert level; however, the building developer wanted to reduce the pile sleeving depth to achieve a more economical solution due to the large number of load transfer piles being required for the project. To assess this feasibility, a full 3D commercial numerical code, FLAC3D, was used to carry out this complex soil-structure interaction analyses. Based on these assessments, it was demonstrated successfully to the TfNSW that the pile sleeving may be terminated at 2 m above the tunnel invert level. For this arrangement, the investigations found that the loading on the piles should have negligible adverse impact on the tunnel lining design. As a result of such an assessment, the proposed pile sleeving level was approved by TfNSW, thus offering an economical foundation solution for the project.CITATION:Azad, F M, Oliveira, D A F and Wong, P K, 2014. The impact of pile loading on adjacent metro tunnels – Barangaroo South, Australia, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 355–360 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By W. M. LONIE

Address by the President of the Institute (Mr W M Lonie) in making the presentation of the Certificate of Honorary Membership to Sir Ian McLellan, K.C.G.M, K.B.E. Address by Sir Ian McLellan after accepting the award.

Jan 1, 1979

By J Say, M Hawtin, L Carlon, P Cann

Historically, production from sublevels of the Ernest Henry Mine (EHM) started from blind uphole rises at the end of slot drives. Where previous investigations considered removing these slot drives and starting production with independent ore drives, any development savings were consumed when drives were extended to minimise ore loss. Since 2017, EHM and Orica have been investigating opportunities to optimise drill and blast practices by implementing Orica’s Wireless Electronic Blasting System (WEBS). To reduce ore drive development metres, a novel design was proposed utilising the WebGen™ 100 system to combine a rise with pre-charged widening firings. Initially these new rise and widening firings achieved results similar to previous EHM designs, achieving on average 81 per cent of design height and width. Due to poor performance of the fourth trial a significant re-design was required. Modifications included drill hole re-positioning, in-hole primer relocation and initiation delay adjustments. Since the re-design a step change in rise performance has been observed with rise and pre-charged widening shots averaging 95 per cent of design height and width. With rise and widening performance exceeding expectations, the removal of slot drives has allowed a substantial reduction in lateral development. Development savings of 165 m and 169 m from the RL1325 and RL1300 levels have been achieved. Primary draw and ore recovery has also increased due to the later addition of pre charged forward stripping rings. Level design changes have also significantly improved the mining cycle by allowing for a reduction in required ground support, improved secondary ventilation, a reduction of critical path development, simpler production scheduling and less wear and tear on machinery. Future mine level designs now incorporate key learnings and are proving beneficial to a variety of scenarios including changing orebody boundaries at depth.

Mar 15, 2021

By L Dyer, A Keith, G D. Corder

As mining activity moves to remote and less developed locations globally, a holistic approach to mine development is fundamental for achieving a balance between strong financial returns and corporate social responsibility and transparency. Key inter-related fundamentals such as social licence to operate, life-of-mine operational planning, minimising environmental impacts and, most importantly, attractive investment returns for the mining company all contribute to the viability of any new mining project.However, the typical practice in the mining industry is often to treat environmental and social/community aspects as separate compliance issues that are dealt with at minimum cost and disruption to the project and resulting operation. This often results in less than optimum environmental and social outcomes, and presents considerable liabilities at the time of closure when rehabilitation programs continue to require funding when all revenue has ceased.The five capitals model seeks to identify each of the key contributors to sustainable development as financial, manufactured/physical, social, human and natural to formulate a type of triple bottom line approach balancing these often competing project factors. The SUSOP® sustainability risks and opportunities framework, developed by the mining industry, bases its approach on the five capitals model and proposes an approach that breaks down enterprise silos to identify innovative solutions for life-of-mine sustainability. This framework has been developed with the nature of mining projects in mind in order to produce approaches and outcomes relevant throughout the life cycle from the planning phases, through project design and construction into operation and closure.This paper argues the need for a more holistic approach to the development and operation of mining projects, and presents case studies where a holistic approach has been applied, in whole or part, and discusses the lessons learned from these case studies.CITATION:Corder, G D, Keith, A and Dyer, L, 2014. A capitals based approach – leading innovation in planning for life-of-mine sustainability, in Proceedings Life-of-Mine 2014, pp 499–512 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014