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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 W Herrmann, R R. Large

Volcanic-hosted massive sulfide (VHMS) deposits in ancient, submarine volcanic belts of Australia include mound, lens and sheet-style Zn-rich polymetallic deposits, massive and disseminated pyritic Cu-Au deposits and disseminated, stratabound Au-only deposits. Variation in morphologies, metal ratios, volcanic environments and alteration features indicates there exists a spectrum of deposits from the classic VHMS model, to hybrids between VHMS-porphyry Cu and VHMS-epithermal end members. Zn-rich, polymetallic deposits form eitheron, or just below, the seafloor, whereas the Cu-Au and Au-only deposits form sub-seafloor by replacement of specific volcanic lithologies. Alteration zoned outwards from quartz -> chlorite -> sericite ¦ carbonate is typical of VHMS deposits across the spectrum. Quartz and carbonate alteration is dominant in the Au-only systems,chlorite alteration is commonly developed close to Cu-rich ores, and sericite and carbonate alteration zones are well developed in the stratiform Zn-rich ores. The most useful geochemical vectors for Zn-rich ores are the alteration index [AI=100(MgO + K2O)/(MgO + K2O + CaO + Na2O)], the chlorite-carbonate-pyrite index [CCPI=100(MgO + FeO)/(MgO + FeO + K2O + Na2O)], Mn content of carbonate, Mg/(Mg+Fe) ratio of chlorite,whole-rock Tl, Sb and Ba/Sr ratio, S34S of pyrite, and whole-rock S18O. The most useful vectors for pyritic Cu-Au ores are AI, CCPI, S/Na2O ratio, Na content of white mica, and Fe content of carbonate.

Jan 1, 2002

The production of metallic titanium and titanium-rich alloys in forms useful to the engineer involves the use of certain techniques not usually necessary in fabricating the commoner metals and alloys. However, not all stages in the handling and shaping of titanium-base materials require the application of unfamiliar methods. It is the purpose of this paper to indicate where the well-known techniques are applicable as well as to outline the unusual operations which are necessitated by certain chemical characteristics of titanium.In brief, the characteristics just mentioned are manifestations of the very great reactivity of titanium, especially at elevated temperatures. Liquid titanium burns vigorously when brought into contact with air. It also reacts with practically all refractories, causing damage to the latter as well as undesirable contamination of the metal. Even solid titanium undergoes serious superficial contamination when heated above 800°C. in air for more than a few minutes. In addition to an oxide skin being formed, oxygen enters into solid solution in the surface of the metal causing the latter to become hardened and eventually embrittled.Up to date, titanium has been made only on a pilot plant scale by methods which produce a spongy or powdered product. Refractory problems have prevented the development of chemical reduction methods for making titanium in the form of a liquid pool from which ingots of useful size could be cast. Therefore the first part of this paper will cover the consolidation of powdered or spongy titanium. The latter portion will provide a brief description of...

Jan 1, 1950

Modelling Channel Scale Flow in Heap Leaching Using Smooth Particle Hydrodynamics (SPH)

Sep 13, 2010

In this address I look back over the past 40 years of mineral exploration in New Zealand û essentially the period since the Second World War (ie since 1945). It was the period of my personal involvement, and indeed of the personal involvement of a number of you. Luckily it was aperiod of great interest and activity. In the previous 50 years, virtually nothing had happened, and it is kindest to draw a veil over that period. In the very important earlier 40 years (1855 - 1895) the New Zealand gold rush occurred. That must have been a fascinating, rewarding period, which has been thoroughly documented by better historians than myself. I will simply comment firstly that its mineral explorers (gold-prospectors) were very successful indeed, and found most localities of the minerals they sought, in spite of using very different methods from ours of today. Secondly, they were preceeded by one of Maori exploration, which searched for a much restricted list of minerals, but succeeded in finding virtually every locality we know of today. The explorers of both of these early periods were obviously highly successful, but, in the time available, I must restrict myself to the period since 1945. I am currently editing the effective up-dating of Gordon WilliamsÆ 'Economic Geology of New Zealand' (1974). It covers the last 12 years or so. Many of you are contributing to that volume û both as authors and as referees û and I would like to take this opportunity of thanking you all. Although this new volume excludes the energy field, many of us have been involved in it, and I am therefore including energy minerals in this review, as Williams did in 1974.

Jan 1, 1987

By G Eastwood, C Joyce, P Ryan, G M. Johnston

Over the years, predictive techniques for Acid Mine Drainage (AMD) and the natural processes affecting acid generation have received considerable attention. Less emphasis has been placed on the sampling strategy and the integration of testwork results with the geological data base. The sampling strategy employed and the development of a geological model to determine the spatial distribution and volume of acid producing material are often crucial for developing cost-effective containment and mitigation measures. The geological model provides a link between the occurrence, timing, destination and placement of mined waste rock. Careful and accurate interrogation of a comprehensive geological database provides this linkage. The AMD testwork program at Cadia in NSW has been designed to identify the temporal selective handling requirements that will be required during operation. Sampling involved collection of representative combinations of all waste rock types identified within an extensive geological database. These samples were subjected to static, kinetic and accelerated weathering predictive tests. Preliminary results have been used to construct a waste block model for the deposit that identifies the quantity and distribution of acid producing material. Integration of the block model with the mine scheduling determines when the material will be mined.

Jan 1, 1996

By P Tzeferis

An exploratory laboratory work was carried out on microbial leaching of poor non-sulphide nickel ores, not amenable to conventional mineral processing operations. The results have shown that domestic low-grade lateritic ores of limonitic or haematitic type are amenable to bioleaching by fungal strains of Aspergillus sp and Penicillium sp. Maximum nickel and cobalt recoveries achieved were 60 per cent and 50 per cent respectively. Losses of soluble nickel in the fungal biomass were found in the range 3 - 11 per cent. Chemical analysis of the leach liquors showed the presence of significant amounts of citric, oxalic and other organic acids, indicating the role which certain metabolic products of fungal activity may play in the process. Possibilities for future investigations are discussed.

Jan 1, 1997

Suddenly, mining has been thrust into the limelight. It has a large image that casts its shadow over New Zealand. Is it any wonder that resistance has heightened and that an almost unprepared populous is currently struggling to protect the very land they hold dear. Next to the atomic bomb, mining has the demonstrated power to massively change the land and its side effects can pollute many miles beyond the operation. During the past year, New Zealand concern over the possible effects of the mining proposals has become acute. This was specially so in the areas of special environmental quality, such as the Coromandel, and here a very unhappy situation has arisen.

Jan 1, 1981

Australian rutile and zircon concentrates are refined raw materials and not manufactured products. The composition and properties of the grains are therefore fixed by nature. Specifications and assay certificates should take this into account by eliminating unnecessary provisions which only increase the time and cost of analysis.INTRODUCTIONThe raw material from which Australian rutile and zircon concentrates are isolated is beach sand on the coast of New South Wales and Southern Queensland. The principal current operations are in an area between Sydney and Brisbane.The sands consist principally of quartz particles, but they contain from 1 per cent to 50 per cent of a mixture of heavy minerals, including zircon, rutile, ilmenite, monazite, leucoxenic grains, chrome spinel, chromite, garnets, corundum, topaz, brown spinel, olivine, epidote, clinozoisite, tourmaline, magnetite, hematite, and cassiterite. The major components are zircon (25 to 60 per cent), rutile (25 to 50 per cent), and ilmenite (5 to 50 per cent).The so-called leucoxenic grains are not a definite mineral species but an alteration product of which the major components are titanium oxides and silica in varying proportions.Primary concentration is by gravity, using spirals or various forms of pinched sluice (Pullar, 1962), the resulting concentrates being redressed on wet tables. During these processes, some of the lighter heavy minerals including leucoxene and impure rutile, which tend to degrade the final rutile and zircon concentrates, are eliminated.The separation of heavy minerals from each other is...

Jan 1, 1963

Reconnaissance geochemical exploration in the vicinity of low angle detachment faults which bound the core of the Paparoa metamorphic core complex yielded Au up to 14 ppm, with 35% of greywacke, granitoid and quartz vein samples in the northern range exceeding the 0.01 ppm detection limit. Au is associated with Ag, As, Sb and Cu anomalies consistent with epithermal-type mineralisation. The Ag and Cu anomalies also distinguish this mineralisation from older, mesothermal Au deposits widespread in the Ordovician 'slate belt' greywackes, which comprise much of the upper plate of the core complex. Baryte, molybdenite, fluorite and stratiform U mineralisation in the northernPaparoa Range may also be related to hydrothermal activity along the detachment fault zones.

Jan 1, 1995

By N Hungerford, A Coote, S Doyle, D Henderson, F Della-Pasqua

A systematic, detailed airborne geophysical programme carried out in the Taupo Volcanic Region (TVR) in 2005 by Glass Earth NZ Ltd culminated in the identification of 21 epithermal gold targets. In this paper we present the follow up ground-truthing results from the first target drilled, Tahunaatara (TAH).   The Tahunaatara target was identified by means of a multi-disciplinary integrated approach (ôdata interventionö) that defined and ranked the target as being highly prospective for epithermal gold mineralisation. A follow-up ground resistivity survey over the target area revealed the presence of a ôresistorö buried beneath an extensive cover of recent volcaniclastic material. Geochemical soil sampling carried out in conjunction with the resistivity survey yielded anomalous gold values.   The host unit at TAH consists primarily of flow banded rhyolitic lavas, volcaniclastic deposits and tuffs of the Ohakuri Ignimbrite with small outcrops of silicified bedded breccias forming local topographic highs. Results from the first orientation drill hole show wide zones of intense silicification, clay alteration and mineralisation. Sulphide mineralisation is disseminated throughout the core in association with hydrothermal replacement and also occurs in association with quartz veins and infill in fractures (sulphide-only veinlets as opposed to quartz + sulphide veinlets). Textural evidence from drill core indicates that hydrothermal fluid flow was multi-staged with potential for multi-stage gold, and other elements. The presence of polymictic hydrothermal eruptive breccias indicates a hydrothermal vent system.   Alteration varies from argillic to silicic, with pervasive adularia and vuggy silicification also present. Chlorite is minor and associated with quartz, illitic clay and adularia. Assay results currently available confirm the presence of anomalous gold values in association with zones of vuggy silica deposition and intense silicification.

Jan 1, 2006

IN concentrating mills, where several millerals are recovered for realisation in more than one product, various systems are used to express the relative economic value of the work done, and, in the hope that it may prove of use to other operators, the writer will describe a system which, in his opinion, is more complete than any other that he has seen published.The controlling factor in all mill work must be based on the economic result represented by the greatest margin possible between the realizable value of the products and the cost of obtaining same.From a mill-man's point of view these are affected by the following factors:1. Metal contents of ore.2. Grade of products.3. Recoveries.4. Working costs.The grade of ore milled is usually outside the mill-man's control, but this may exercise a considerable influence on the grade of his products, metal recoveries, and revenue per ton of ore. Higher grades or recoveries may be obtained by using a more expensive process, or by additional grinding or reagents, and the economic comparison can only be arrived at by obtaining an analysis showing the monetary value of each variation within the possible limits.In the system to be described, the value of unit variations of metal contents of the ore, grade of products and recoveries are calculated in terms of a monetary unit per ton of ore with the returning charges ruling, and any suitable metal prices. To do this it is necessary to assume what, for convenience, is termed a "standard" set of results from the mill, preferably representing about average conditions, and having calculated the effect of unit...

Jan 1, 1931

Andesites are a major source of aggregate for much of the North Island of New Zealand. There are regional differences with respect to some important properties of the andesites. Some are reactive with cement and are designated as potentially deleterious or deleterious by the concrete industry. Other andesites, particularly those that are slightly altered or weathered, have rather high Plasticity or Clay Indices and perform poorly in road construction.   The performance of the andesites has been investigated and can be shown to be determined by: +        the chemistry of the rock which in turn determines the chemistry of the glass in the rock; +        the presence of large amounts of groundmass glass in the rock; and +        the nature of the superimposed alteration processes. Environment of extrusion and how rapidly the rock has been cooled or chilled are also important as they determine the fabric of the rock and how much glass will be present in the rock.   There are three main types of alteration that affect the quality of the aggregate: 1.   hydrothermal alteration, 2.   late magmatic alteration associated with the devitrification of glass, and 3.   weathering.   Each of these alteration types produces different alteration minerals. In fresh andesites the devitrification of glass has an important affect on the rockÆs properties. The Taranaki andesites are shown to have unusually (in comparison with other North Island andesites) high Na2O contents, held in the groundmass glass, which is the fundamental reason for the high alkali û silica reactivity of these andesites.

Jan 1, 2005

A combination of the needs of business, employee desires and safety and health considerations is stimulating increasing attention to the time spent by people at work and the timing of that work. Particularly we are seeing: - innovative work schedules for 24-hour mining businesses; and - response from industry to accommodate the needs, even the desires, of employees in return for systems which are more productive and more capital efficient. There appears to be an evolutionary trend for business management to become more sophisticated and responsive to the need for achieving close to best cost work schedules to sustain continuous improvement. The underlying motivating forces driving this trend for improved techniques in organising attendance at, and time spent at work, is the seemingly inseparable combination of technological advance and ever-increasing accumulation of capital. The mining industry has not remained untouched by this thrust for ever-increasing need for best use of labour, to adopt advances in technology and to provide attractive opportunities for putting accumulated capital to work. An essential component of this on-going thrust is a substantial effort by the mining industry to improve the performance of labour by providing most-productive work schedules.

Jan 1, 1996

The role of government and the community has changed significantly over the last two decades in relation to environment protection, particularly in the mining sector. Increased community expectations have moved well ahead of regulatory requirements, and there is now a much greater appreciation generally of the concepts of ecologically sustainable development and intergenerational equity, and the gap between current practice and practices which would be in harmony with these concepts. Besides providing a `safety net' through regulations to ensure that basic environmental performance standards are met, government is now working proactively with the mining industry to encourage higher levels of environmental performance. This paper describes some initiatives between the Commonwealth government and the industry designed to achieve these higher levels of environmental performance, through programs aimed at the paradigms of best practice environmental management and continual improvement.

Jan 1, 1997

Responsibility for the administration of mineral resources is divided between federal and provincial governments. The paper traces the evolution of mineral policies at both levels of government, from the end of World War II to the present. In the immediate post-World War II years, the emphasis was on supplying the raw material needs of a rapidly growing world economy. Policies favouring growth and development of the Canadian mining industry were instituted during this period. Two decades of uninterrupted expansion (the 1950s and 1960s) ensued. The decade of the 1970s was a turbulent one for Canadian mineral producers. Governments intervened more substantially than ever before. Moreover, the industry suffered from an intense period of competition for resource revenues by the two levels of government. At the same time, far reaching changes were taking place in the structure of world mineral markets. To date in the 1980s, the mineral industry has, perforce, adapted to existing mineral market structures. Mineral policies, too, have shown signs of adapting to the needs of the mineral industry. Whether the resulting mix of policies will permit the revitalization of the Canadian mining sector remains to be seen.

Jan 1, 1986

The global economic, political, sociological, and technical environment has become extremely volatile and unpredictable. Price and demand patterns for fuel and non-fuel minerals have become highly variable. Increasingly militant environmental movements now have a material effect on the price, cost and availability of energy sources and indirectly also on non-fuel minerals.The pace of political change in the U.S.S.R., Eastern Europe, and China has accelerated. Western Europe, Japan, and the U.S. are reacting to these changes with varying degrees of confidence or timidity.Technical and economic developments continue to have a substantial effect on the fortunes of the mineral industries. However, they are increasingly influenced by social and political factors. Supply, demand, and trade patterns in the Pacific Rim Region will continue to be influenced by developments in other regions, such as southern Africa

Jan 1, 1990

The theme of this Conference is 'The Future of Mining in New Zealand' to be addressed at a time of deepening economic concern. To ensure the assessment and development of our mineral resources in a competitive, safe and environmentally acceptable way a modest supply of a rare commodity û the professional mining engineer û must be assured. This paper briefly' reviews the history of mining education in New Zealand, discusses relevant overseas academic concerns and actions and discusses recent local trends which have led to a most serious recruitment position in the Department of Mining Engineering at the University of Auckland. Conclusions are drawn and proposals made which may remedy this situation which could have serious economic and sociological consequences for New Zealand.

Jan 1, 1991

By Gillies A. D S

Rail, port and shipping charges represent 30 to 50 per cent of landed costs for Australian coal mines selling to Asia. This proportion is higher for sales to Europe, yet it is in Europe where Australian producers are aiming for increased market share. The landed cost of coal to the international customer is the key parameter which determines market competitiveness. The objective of this study is to examine Australian export coal competitiveness in terms of transport distance. The approach used examines world coking coal and steaming coal production and the transport distances between major exporting regions and importing countries. Reference is made to the importance of land transport costs and a comparative approach for emphasising the relative magnitude of this factor is developed. Models developed are examined in terms of Australia's exports and a conclusion is reached that a reduction in rail freight costs would be an effective measure for improving the competitiveness of Australia's coal industry.

Jan 1, 1994

By P Mitchell, S Pushpan, G Ferres, K Bobbermien, L Hudson

"Falling commodity prices and a rising supply surplus have ushered in a period of restraint in capital project investment across the global mining and metals sector. Competition for capital project funding has seen fewer projects progress through investment gates and a stronger focus on projects that deliver gains in capital productivity and strategic outcomes.Over the course of the 2015 financial year, EY conducted a study of 108 projects in the global mining and metals sector (EY analysis; Larsson and Ericsson, 2014; SNL Financial, 2015). The projects studied were at various life cycle stages and related to the development of copper, iron ore, gold, coal, nickel and other commodities. Each individual project investment exceeded US$1 B, and the studied group represented a cumulative investment value of US$367 B.The research found that the majority of projects were delayed and/or over budget when measured against the initial estimates made during the early stages of the project life cycle. Of the surveyed projects, 69 per cent were identified as facing cost overruns with an average overrun of 62 per cent above the initial estimate and 50 per cent reported schedule delays, even after remedial acceleration initiatives.The analysis found that budget and schedule overruns could be attributed to five key causes:project management factorsstakeholder conflictsresource constraintsregulatory, and policy-related challengesunfavourable external environment.Improving project delivery performance starts with successful planning, followed by rigorous management during delivery. From global experience on large and complex capital programs, EY has observed a consistent theme of underinvestment and a lack of focus in three often-overlooked but critical areas:implementing effective governance and reporting frameworks with lead indicators that reliably flag emerging risks while they can still be mitigatedallocating adequate cost and time contingency to account for risks across the life cycleenhancing the value of contingency by aligning contingency plans with scenario plans.This paper explores the surprising findings of the study, proposes a root cause model and examines key considerations in applying these critical enabling techniques.CITATION:Hudson, L, Mitchell, P, Ferres, G, Bobbermien, K and Pushpan, S, 2016. Are your megaproject schedules and costs under – or out of – control?, in Proceedings Project Evaluation 2016, pp 75–85 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016