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By J F. Carswell, G Cheshire

The Pajingo gold operation in Queensland is approximately 55 km south of Charters Towers and 134 km south-west of Townsville. The gold deposit was discovered on the northern end of the Drummond Basin in 1983 and first open pit production began in 1986. Mining progressed underground in the 1990’s and gold production peaked in the early 2000’s as the main Vera/Nancy lodes were extracted, producing 330k oz in 2003 (a record at the time). More recently, as Ore Reserves and grade have diminished, the mine has had to develop innovative mining practices to maximise recovery of the remaining Mineral Resource. This has included a modified sublevel caving method against previously mined/backfilled zones. The method has been coined modified sublevel shrinkage (MSLS). Full scale trials of the new mining method have been successfully completed. This has allowed the site to revaluate the Mineral Resource and include areas into the Ore Reserve that were once deemed sterilised, adding significant value to the operation and extending its life-of-mine. This paper describes the first of two large scale MSLS trials and key operational learnings from it.

Mar 15, 2021

By H Arvidson, V Chamberlain, J Joughin, N Pollock, F Cessford, T Flitton, T Rowl

Environmental, social and governance issues (ESG) have become a defining feature in the marketplace to differentiate preferred investments. With the sustainability commitment and reporting landscape anticipated to evolve exponentially, it is now imperative to rapidly develop the approach taken by mineral companies to adequately identify and address ESG risks and opportunities in the reporting of Mineral Resource and Mineral Reserve (MRMR). MRMR cannot be effectively reported as technically and financially assured and realistically executable, if ESG is not integrated into the strategy, business model, input assumptions and process that defines and drives robust MRMR public reporting. Regulatory reporting codes across the globe are presently in various stages of being updated and modified to ensure ESG factors are appropriately covered as a key part of diligent and transparent disclosure. Security exchanges are making it clear that companies must not omit ESG risks from reports to investors. This paper discusses associated challenges for MRMR reporting and suggests avenues for improvement. Key themes include: the importance of procedure rather than prescription and checklists; how ESG criteria impact Modifying Factors and determination of Reasonable Prospects for Economic Extraction (RPEE); the need for financial models to account for material ESG commitments; the uniqueness of each mineral asset; the need for education, upskilling and accreditation of both ESG experts about MRMR reporting and equally Competent Persons in ESG matters; and the need for clear and balanced reports that meet the needs of end users. (RPEE is adopted here for simplicity and consistency, recognising that some reporting codes still include ‘Eventual’ in the term (ie RPEEE). Whilst RPEE and RPEEE are subtly different the intent is to point to the process of assessing ESG factors in determining reasonable prospects.) The principles of transparency, materiality and competence remain paramount when considering the impact of ESG matters on MRMR reporting, and this necessitates an inclusive, cohesive, and integrated approach to assessing ESG issues to ensure the necessary expertise and diligence is applied.

May 24, 2023

By E Mare

Recent highly publicised incidences of disastrous containment failures, none more pertinent than the 2019 iron ore tailings dam failure in Brumadinho, have focused the world’s attention squarely on the often-challenging subject of tailings storage. Unwanted ultrafines, that are deemed to be unworthy of further treatment or not to have further saleable value, are therefore a significant issue for mine owners looking to reduce risks and perceptions associated with long-term storage of tailings. In this context, there are strong drivers to identify safer approaches to ultrafine tailings management, especially if it can also lead to increased revenue, together with better water stewardship and environmental outcomes. The better management of tailings needs to be considered from both containment challenge and processing opportunity perspectives. This paper focuses on the latter, reviewing from a technical and economic perspective, the feasibility of more extensive processing and/or reprocessing of specifically iron ore tailings, in a bid to reduce the overall volume for management in long-term storage. Herein the opportunity lies in recovery processing, as much as enhanced thickening and/or mechanical dewatering, and therefore the paper discusses both issues as equally important sides of the same coin. Recent interest in iron ore ultrafines processing and reprocessing studies suggests that the enhanced processing of iron ore tailings offers multiple perceived advantages. Apart from a potential reduction in tailings volume, associated with safer containment, lower environmental impact and improved water management, the prospect of increased revenue from additional Fe recovery presents supplementary motivation for iron ore players to embrace this approach, as further elaborated in this paper.

Nov 8, 2021

By S H. Begg

There is strong evidence that many major oil and gas (O&G) projects are plagued by large cost and schedule overruns, or significant underperformance in productivity. Similar evidence exists for large mining projects. This paper claims that uncertainty is the underlying reason why projects fail to deliver the metrics used to justify their investment, or to deliver the economic value possible if alternative decisions had been made.Most technical and economic analyses are performed to reduce uncertainty to help make decisions. Decision-making is about ranking alternatives and choosing the best; rarely are precise predictions required, if this is even possible. Better uncertainty assessment is one of the keys to better decisions, thus better business outcomes. To get better decisions it is suggested that the focus or reward/penalty incentives be shifted away from the quality of outcomes to the quality of decisions. High-quality decisions are those that are generated from the skilled use of the tools, methodologies and processes from the discipline of decision analysis.Uncertainty is quantified by probability, which is a degree of belief in the truth/falsity of some proposition about a quantity relevant to a decision, such as volume of in-place resource, future price or action of a competitor. The probability a person ascribes to a proposition depends upon their information set; hence probability is subjective – it is not an inherent attribute of the quantity of interest or the physical system.The above simple observations have profound implications for modelling approaches, how they deal with uncertainty, the use of data to help assess uncertainty and the reliability of information provided by subject-matter experts. The limited circumstances under which frequency data (from spatial or temporal variables) can be used to assign probabilities is also reviewed.People, in general, are subject to a range of biases and cognitive errors. Research with O&G subject-matter experts shows that their expertise offers little or no protection from making errors in probability assessments and other judgements.CITATION:Begg, S H, 2016. Decisions, decisions – uncertainty, variability, modelling and psychology, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 9–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By S Worden, A Lee Zhi Yi, E Sellers, G Corder, A Littleboy

The global shift towards decarbonisation is driving competition for the extraction of critical minerals such as nickel, lithium, and copper. To meet this demand, new mines are being developed while mines approaching closure are being reimagined as sites of potential resources. This reimagining challenges how mine closure is being conceptualised. In the conventional case, when a mine reaches the end of its economic life, it is closed or put into care and maintenance until it transitions to the next land use, such as agriculture, native ecosystem corridors, solar farms or integrated eco – precincts (Murphy et al, 2019; Holcombe, 2020) (the authors acknowledge that unplanned mine closures have left a devastating legacy of contamination, safety and cultural heritage impacts). Extracting minerals from closed or closing mines will extend mine life and, therefore, delay relinquishment and transition. In this context, innovative technologies are needed to make mining economically viable. In the first year of her doctoral research on improving stakeholder engagement in mine transitions, Lee Zhi Yi has coined the term ‘mine life extension technologies’ (MLETs) to describe a class of technological solutions that optimise extraction of resources after a mine reaches the end of its economic life. Examples of MLETs include agromining (van der Ent et al, 2015), in situ recovery (Robinson and Kuhar, 2018), and reprocessing or reuse of tailings (Gou, Zhou and Then, 2019). MLET extraction offers several benefits compared with conventional mining processes, such as waste remediation, value recovery of minerals, a smaller footprint and less environmental impacts (Sellers, Picorelli and Salmi, 2022). What requires further investigation is the consequences of MLET implementation to host communities or community perspectives towards the proposed technology and subsequent delays in transition.

Aug 2, 2023

By R Long

The founder of social psychology is sometimes identified as Kurt Lewin. In a 1947 article, Kurt Lewin coined the term ‘group dynamics’. He described this notion as the way that groups and individuals act and react to changing circumstances. Lewin theorised that when a group is established it becomes a unified system with unique dynamics that cannot be understood by evaluating members individually. The discipline of social psychology really emerged out of World War II and tackled questions associated with human judgement and decision-making by the Nazis. For a comprehensive look at the development of social psychology look at Abelson, Frey and Gregg (2004).Social psychology is concerned with the way social arrangements affect human judgement and decision-making. What the author has done is apply the knowledge of this new discipline to an understanding of risk, safety and leadership. This paper will explain some of the developments in social psychology, such as the discovery of the bystander effect, Groupthink, bounded rationality, heuristics, risk homeostasis and the Milgram effect.The social psychology of risk tackles the way decisions are made about risk in their social context. Unless organisations understand that decision-making is socially conditioned, they are unlikely to be able to tackle the complexities of culture change or the development of risk maturity.The paper will offer a new understanding of why people do what they do, how risk makes sense and why a ‘dumb down’ approach to safety is dangerous. A model will also be presented that shows the pathway to risk maturity.CITATION:Long, R, 2016. The social psychology of risk, safety and leadership maturity, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 31–42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By I Thomson, L D. Black, R G. Boutilier

The social license to operate (SLO) began as a metaphor for the ability of communities to stop mining projects. Soon people began to speak of levels of social license and the ability of communities to raise costs without completely stopping exploration or mining activities. Today the concept has spread to other industries and is evolving towards becoming a general management perspective on the socio-political rights and responsibilities of the corporation. The business case underpinning the SLO perspective on management is the need to assess and manage socio-political risk. For mining companies, socio-political risk has been steadily rising for several reasons, including the efforts of non-government organisations (NGOs) to pre-empt government policy options; the entry of mining companies into jurisdictions weak in the rule of law; and the weakness of global economic and financial regulation. In this perilous world beyond the comfort zone of effective government, mining companies must build their own socio-political stability by engaging directly with stakeholders to develop a strong SLO. In order to become a practical management perspective, the SLO needs to be measurable, which amounts to measuring the socio-political risks and opportunities presented by stakeholders. We present the results of efforts since 2009 to develop a globally reliable and valid measurement tool at the project and industry levels, validated in studies in Australia, Bolivia, Mexico and the USA. A factor analysis suggested four factors that mine management can address to raise their SLO level. The most chronically neglected factor involves the political right of the corporation to foster more equitable social contracts locally and regionally in both developed and developing countries. We conclude with recommended steps to earn and maintain the social license at the project and industry levels.CITATION:Boutilier, R G, Black, L D and Thomson, I, 2012. From metaphor to management tool - How the social license to operate can stabilise the socio-political environment for business, in Proceedings International Mine Management 2012, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By S Paciornik

Computer-controlled microscopes with digital image acquisition and analysis led to the creation of the new field of digital microscopy. These techniques not only allow a certain degree of automation but have also brought new possibilities to microstructural characterisation. One of these new and promising possibilities is co-site microscopy, which links different kinds of information obtained from different microscopy techniques. The present work presents the development and implementation of a co-site microscopy methodology that combines images obtained by reflected light microscopy (RLM) and scanning electron microscopy (SEM). This methodology can improve the SEM analytical capacity by adding colour information from RLM. It involves the whole sequence, from image acquisition at the microscopes to the analysis of the phases using pattern recognition techniques. An automatic registration procedure for the two kinds of images was developed, allowing the adjustment of magnification, translation, rotation and pixel size, and the correction of local distortions. Thus, the images from RLM and SEM can be combined to build a multidimensional data set of each field, which can then be used in a pattern recognition approach to discriminate different phases. The methodology was tested with a copper ore sample, aiming at the discrimination of minerals that are not distinguishable with either RLM or SEM.

Jan 1, 2008

By A Scott, A C. Torrance

Explosive properties are typically summarised on manufacturers’ technical data sheets. The values most commonly referred to are the density of the explosive, the energy it is expected to release and its velocity of detonation (VOD). This information is provided so that blasting engineers can make a considered selection of the most appropriate product for a particular blasting application. As an example, a lower VOD and energy product is better suited to blasting in soft, weathered material. In contrast, blasting hard, competent material generally requires a higher energy product which is usually characterised by higher VOD and energy.A review of the technical information supplied by manufacturers shows a wide range of methods of reporting both VOD and energy. A meaningful comparison between products from different suppliers is almost impossible to achieve based on these data. For a similar product, one supplier may have a VOD range of 2800–5800 m/s and a relative bulk strength of 1.34 while a corresponding product from another supplier is quoted with a VOD range of 3100–6300 m/s and a relative bulk strength of 192. In the end, the user has to rely on the level of confidence available from their experience using a certain type of explosive in the type of rock to be blasted at that mine.This paper reviews some of the technical and supporting information that is freely available in the literature and attempts to provide some clarity as to what the numbers that are reported actually mean for the end user. An alternative approach to the evaluation of the suitability of a given explosive to blast a given rock mass is proposed.CITATION:Torrance, A C and Scott, A, 2015. What is relative about energy?, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 447–454 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By Hellsten KJ, Butt CRM

Major Francis Hamilton Buchanan coined the term `laterite' (Latin; brick-rock) in 1807 for the red earths used for building blocks in southern India. Although these earths were actually weathered basalts, the term is now applied to weathering profiles developed upon a wide range of bedrocks. The Ni-laterites are a special class within the broad laterite family.

Jan 1, 1996

Major Francis Hamilton Buchanan coined the term `laterite' (Latin; brick-rock) in 1807 for the red earths used for building blocks in southern India. Although these earths were actually weathered basalts, the term is now applied to weathering profiles developed upon a wide range of bedrocks. The Ni-laterites are a special class within the broad laterite family.

Jan 1, 1996

By P Mesquita, A Nolan

Using a scientific-principled definition of global socio-ecological sustainability can be a useful basis for planning precious and base metal mining projects. The mining industry faces key challenges of; viability of the minerals industry; the control, use and management of land; national and local socio-economic development; environmental management; materials stewardship; and access to information. Using a framework for strategic sustainable development to assess the current reality of mine project development has resulted in identifying areas of strength and opportunities for improvement between current best practices and a desired vision of sustainability constrained by science based principles. These gaps indicate opportunities to strengthen current strategies, tools, and actions with a deeper understanding of socio-ecologic systems and a first-order, principled definition of sustainability, enabling success in moving towards achieving a sustainable society, ie sustainability. Evaluation of mine project development and their impacts on ecological and social systems using a systems perspective which recognises the underlying principles of operation, delays, feedback loops and response to change highlight specific opportunities to create value for social, economic and ecologic systems. Envisioning this future for mining projects within a sustainable society can be done by evaluating their development and operations guided by the sustainability principles. Performance indicators play a key role in measuring progress towards achieving sustainability goals yet it is necessary to consider whether indicators capture the whole systems perspective. Connected to this broader view, indicators can contribute much value to the mining industryÆs sustainability journey. This paper examines how current processes for mining projects can be developed using a whole systems perspective and measured using holistically designed performance indicators.

Jan 1, 2009

By S Dunham

A cross-discipline approach combining geology, metallurgy and mine planning, geometallurgy is seen as the next logical advance in improving the design and operation of mining businesses. This rapidly evolving field is focused on realising the value that has often been lost in the chasms between the aforementioned technical silos. When successful, the geometallurgical approach promises the ability to tailor mining and mineral processing development and operational options more closely to the characteristics of the resource with resulting lower costs (both capital and operating), improved recoveries and fewer project failures.As with any technological (or managerial) change, there will be side effects from the success of the geometallurgical approach that will impact areas beyond obvious linkages between geology and processing. Some of these effects have the potential to be beneficial to the resource industry and society in general. Beyond the basic geometallurgical promise of closer alignment between processing design/strategy and the multivariate 3D spatial characteristics of the mineralisation, this paper discusses the broader implications and ramifications of the emergent geometallurgical approach: enhancing exploration and discovery; improving project development success; achieving sustainability in an industry working with non-renewable resources; in a world of increasingly hard won license to operate, improving the management of potentially harmful by-products and waste materials (with knock on effects for proactive management of closure issues); smarter approaches to energy management and thus optimisation of projects with respect to carbon footprint; and potential to re-value assets and thus realise a strategic advantage in the area of acquisitions, divestments, mergers and take overs. The authors strongly believe that companies that actively engage with the above issues (and ensure that technical efforts in the area of geometallurgy are not isolated from the larger value chain activities of the firm) will be able to exploit the opportunities that consequentially arise. These early adopters will gain first mover advantages. Firms taking the broad view of geometallurgy will have an opportunity to maximise stakeholder value and win greater success than their less insightful competitors.

Sep 5, 2011

By S Worden, P A. Kirsch, A Kirsch

Despite the current downturn, coal remains an important commodity in the Australian economy. Increasing coal resource development has resulted in increasing competition for land use in coal mining regions across the country with communities and other stakeholders becoming more adept at articulating their concerns regarding this competition in a range of traditional and social forms of media. In this environment, obtaining and maintaining a social licence to operate (SLO) is problematic and has been identified as the fourth greatest risk facing the international mining industry.This research presents the findings from a longitudinal study on how Australian newspapers frame the views of coal mining stakeholders across each stage of the coal mining life cycle. News stories from national, state and regional newspapers in 2000, 2006 and 2013 were analysed.Over the study period, there have been significant changes in the coal mining themes being covered by Australian newspapers, the number of stories being published, the number of newspapers covering coal mining stories, and the diversity of stakeholders being quoted. How do the dominant themes in media communication change over time? How do these changes impact mining across the life-of-mine?The research confirmed that Australian journalists use framing, priming, labels and bias to conceptualise and understand the events that they report, and that this behaviour has a profound effect on public opinion.CITATION:Worden, S, Kirsch, A and Kirsch, P A, ?2014. Moving beyond economic framing of the Australian coal industry, in Proceedings Life-of-Mine 2014 , pp 365–376 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By K Morrison

Australia’s ageing population means that by 2050 there will be 2.7 people of working age to support each Australian aged 65 years and over compared with five working people per retiree today and compared with 7.5 in 1970 (Swan, 2010). This means that there is going to be a greater demand on social services – for medical and aged care – from a smaller private income base. How will this gap be met? Australia is fortunate in that it has vast resources of mineral wealth; from iron ore, nickel and gas in Western Australia to the giant copper and uranium deposits at Olympic Dam in South Australia.The prospect of a meaningful profit based tax on this vast mineral wealth has been lost through Australian government’s handling of the issue in 2010 and with an industry fiercely opposed to the prospect of a mining tax. Hence, new ways of thinking are required. This paper looks at the issues facing the implementation of a novel scheme whereby Australia leases the mineral resources it extracts and thus derives income over the decades the metals are in-use in pipes, wires and structures with a premium paid for unreturned material or that used in dissipative applications. Applicable minerals could include copper, aluminium, nickel and rare earths. If Australia simply digs up and sells the metals once, the buyer becomes custodian of that resource and they benefit from controlling the future ‘above-ground’ resource stock.A complementary driver for a leasing scheme is the increasing importance of chain-of-custody following initiatives of the Responsible Jewellery Council with gold and diamonds, now with the potential to extend across commodities. The Australian minerals sector could thus position itself as a premium supplier with high social and environmental credentials.Recognising the implementation challenges, this paper includes a review of how such a system could be enforced to ensure that the metal is tracked throughout its life. It concludes with a discussion of the rates and terms should such agreements hold and suggestions for institutional arrangements for enforcing compliance.

Nov 22, 2011

By A Golsby

Although much talked about, social licence to operate (SLTO) is a relatively new concept that has been deemed as one of the four biggest business risks to a mining project over the life-of-mine. There is no accepted single definition of SLTO and this author understands SLTO to be stakeholder perception of the legitimacy of a project, a company or an industry. At a specific site, and across different sites within the same organisation, SLTO ranges through different levels according to stakeholders’ degrees of acceptance in time and space. Management of SLTO is vital for the mining sector but is difficult as it is informal and intangible. Although there are no key performance indicators, there are certain indicators that enable relative measurement of the ‘level’ of the SLTO. Because of the importance of the SLTO, information management during the entire life-of-mine, from exploration to rehabilitation, becomes crucial for the continued operation of a project. This paper identifies ten basic principles for the management of information to support the SLTO.CITATION:Golsby, A, 2014. Managing information to support a social licence to operate, in Proceedings Life-of-Mine 2014 , pp 389–398 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M Pyle, R Ch, G Lane, ramhan

Data is the most valuable commodity in the information age. The use of data enables productivity, opportunity, and safety in various sectors and industries. In the late 1950s, Alan Turing coined the term artificial intelligence (AI) to describe the ability of computing machines to think and behave like humans through simplified reasoning and logic (Turing, 1950). This concept of mimicking human behaviour is the building block of machine learning algorithms used in most AI software. The ‘learning’ aspect in machine learning requires data, that is, information on the environment or the objective, to be modelled or predicted using AI. An AI-enabled system aims to predict the unknown faster and intuitively. Intuition in software algorithms can be described as probabilistic, learned through the data that the AI system is trained on; indeed, the AI software cannot predict the future, but it can provide the likelihood of an event/action occurring, thereby enabling decisions or responses to prevent it or take action. Just as various industries have adopted AI as the tool of choice to seek new opportunities (examples: medical research, self-driving cars, financial modelling), the mining industry, too, has been receptive to embracing AI for problem-solving and maximising the value of its business.

Sep 1, 2024

The criterion for assessing the accuracy of coal reserve estimates proposed by Philip and Watson (1982) is criticized.Following Royle (1977), it is suggested that the global estimation variance found by geostatistical methods is more appropriate.This method is applied to coal data from the Bowen Basin. This shows that two factors (the inherent variability of the variable under study and the total number of drill holes) have more influence over the accuracy of the reserve estimate than the form of the drilling pattern. Comparisons between the relative errors for different sized regions demonstrate that the spacing between drill holes is of secondary importance. The dominant factor is the total number of holes.Comparisons between the relative errors show that some variables such as sulphur need a much denser sampling than the others to obtain the same level of precision.

Jan 1, 1983

By L Mottola

Three decades ago mining companies, principally in North America, aided by machine and explosive manufacturers, started significant attempts to develop and implement automated mining systems, mainly underground. These tended to be motivated by decreasing cost, increasing productivity, reducing labour requirements, and improving safety. These are important business drivers, however, little attention was given to the underlying goal of mining automation, namely to bring upstream processes in control and reducing variation, as seen in downstream mineral processing plants.This paper first reviews the nature of Lean Thinking and its application in the context of the growing commitments by industry to develop future automated mine production systems. The paper then makes reference to prior and current experiences in open pit blasthole drill and shovel performance monitoring, to demonstrate the principle that machine performance data offers as a means, not only to characterise the dynamic geological and working environment, but also to provide a foundation for automation. In this case, drill and shovel monitoring was originally motivated as a means to optimise blast fragmentation through more effective drill and blast designs that are based on an accurate determination of the bench geological and geotechnical characteristics, hence managing variation in the drilling and blasting process. This paper considers how automating and integrating such components of the mine production system would bring processes into a controlled state, creating value at the face, within a framework of Lean mining.

Nov 22, 2011