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By Y Xu, T Rowles, B Dareeju, A Dissanayake

Recent updates on tailings dam design guidelines require analysis of undrained (short-term) stability with the application of the SHANSEP model. The SHANSEP model, which was originally developed for alluvial soils, predicates that the Undrained Shear Strength (Su) increases with increasing effective stress. Residual soils by their nature do not necessarily follow this relationship. This paper examines an alternate method to define Su over a range of effective stress conditions for residual soils. Residual soils, formed by weathering of their parent rocks, are generally micro-structured in nature. The microstructural features, such as interparticle bonding, play a fundamental role in stress-strain behaviour of the residual soils. As interparticle bonding is independent of effective stress and void ratio, the undrained shear strength of residual soils is expected to be less dependent on effective stress than alluvial soils, especially at low stress levels. A series of triaxial tests conducted on residual soils, however, indicated that the undrained shear strength and the undrained shear strength ratio (Su/σv’) are to a degree dependant on effective stress. It was found that the undrained shear strength ratio is significantly higher under low stress levels and progressively reduces with increasing effective stress. Based on the laboratory testing data, a strength function with varying undrained shear strength ratios can be developed for the residual soils under the stress range anticipated for a design of a tailings dam. This includes capping the input undrained strength at lower effective stresses based on the drained (effective) and minimum undrained strength. The Factor of Safety (FOS) calculated for the embankment utilising the traditional limit equilibrium (LE) method indicated the application of undrained strength function for the residual soils can provide a significant optimisation for the embankment design compared to adopting a constant undrained shear strength ratio or constant undrained shear strength in the design.

Jul 1, 2021

By B Roache, J O’Brien, M Gray

Admixture use in cement products is commonplace in the construction and mining industries. Many Australian mines have an operational concrete batch plant and stock hydration control and water reducing admixtures. The benefits of admixture use, especially in shotcrete is understood and well documented. Cemented rock fill (CRF) is used to fill stope voids and create stable vertical and undercut surfaces at some Australian mines. These mines generally mix rock fill with a slurry of cement and water without the use of admixtures. Recently published work on optimisation of CRF mixes has mainly focused on the strength increases associated with changes to the mix grading proportions by the addition of fines, but not focusing on the potential benefits of admixture use. Admixture use in CRF may be the simplest CRF optimisation method, as the admixtures will often be added by the push of a button at the batch plant. A CRF testing program was undertaken to test the benefits of admixture use in terms of strength gain, using hydration control additives (HCA) and high range water reducer (HRWR) admixtures. Rock fill gradings were strictly controlled in the test process to allow clear definition of the difference admixtures provide in compression at 28 days. The testing results define admixture associated strength gains in a 6 per cent general purpose (GP) cement by dry weight CRF mix (131 kg of cement/m3). Costings have been developed to allow a mine operator to understand the cost benefits of admixture use in CRF due to reduced operating costs. Operational efficiency advances and a suggested admixture implementation plan for CRF optimisation is offered.

Nov 29, 2022

By T Gill, A Faragher, B Scott, V Kakebeeke

In 2000, after six year intensive exploration for high-grade haematite deposits, Rio Tinto included the channel iron deposits (CID) as a specific iron ore target in the Hamersley Province iron ore exploration program. The exploration model was simple and based on the then current understanding of CID genesis. Fundamental to the model was an interpretation that CID deposits after their final accumulation stage could be entirely concealed in their channels. Inversion to mesas and therefore exposure of the CID profile would only occur in areas where the modern drainages follow the ancient and have significantly incised their current bedrock. The model took encouragement from observations at Bungaroo Creek, where large CID accumulations occur in a deep valley incised in the Wittenoom Formation concealed below recent valley fills derived from the surrounding BIFs. Also, in the headwaters of the Yandicoogina system CID occurs below a more recent cover of calcrete and clay. After a number of failed or partially successful attempts, exploratory drilling in 2002 in the Caliwingina valley in the northern Hamersley Range identified significant CID mineralisation. Subsequent drilling programs from 2003 onwards revealed the presence of a large CID system, which stretches from the middle reaches of the Caliwingina Creek to deep under the sediments of the Fortescue Valley, a channel length of more than 30 km. Although the drilling is still somewhat sparse, the geological resource estimation suggests that Caliwingina is presently the third biggest CID system of the Pilbara (after Yandicoogina and Bungaroo Creek) and is of comparable size to the premining Robe River system (1.6 Bt), with comparable Fe-grades to the Yandicoogina global resource grade (57.7 per cent Fe). Large detrital and canga deposits overlie the Caliwingina CID, or interfinger with it, and although the economics of these are presently unfavorable, could ultimately present a low-grade iron resource of slightly smaller size to the CID mineralisation at Caliwingina Creek. Together with the recently discovered Serenity and Solomon deposits, as well as Cabbage Gum Bore and other smaller occurrences, the Caliwingina Creek deposit is part of a major new CID district in the central Hamersley Ranges, approximately halfway between Yandicoogina and Robe River. Although exploration in this new district is still underway, the preliminary indications are that this area will provide a total CID resource well over 3 Bt, and is on a par with the major known CID systems in the Hamersley Province.

Jan 1, 2009

By J Dwyer, G Turner, D Pridmore, M Urosevic

Due to their ability to produce high-resolution images of the subsurface to great depths, seismic surveys provide critical inputs to almost all oil and gas exploration projects. However, with some notable exceptions, seismic surveys have rarely been used in mineral exploration. In the past, this was due to both technical and financial reasons. Significant developments on both fronts mean that seismic surveys can now offer substantial benefits to mineral exploration and mining, and surveys conducted for exploration can provide important data sets for mine planning over the life of a mining project.We present case history data that show that seismic surveys can greatly assist with mapping the 3D distribution of lithologies and alteration and, in favourable circumstances, directly detect mineralisation in and around mineral systems. As a result of their high spatial sampling density, seismic surveys are also highly effective at mapping structures that can remain undetected or poorly characterised by drilling alone. These structures may host or provide important vectors to mineralisation. They can also be particularly important when planning shafts, raise bores, declines, stopes and open pit walls. A further benefit of seismic surveys is that they can remotely provide information on geotechnical rock parameters that are used for rippability, slope stability, blasting and ground support.CITATION:Turner, G, Urosevic, M, Pridmore, D and Dwyer, J, 2015. Exploration and mining unified through seismic imaging, in Proceedings Third International Future Mining Conference, pp 117–122 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By P B. Hills

Increasingly over the past couple of decades, the importance of understanding the in situ stress regime in underground hard rock mines has become accepted by all. Providers have responded to this requirement and various techniques for undertaking the measurements have been honed while others have slipped from use. It is a simple, though not inexpensive task to engage a provider to undertake the require measurements, and a comprehensive report will ensue. So, what has actually been obtained? What should the geotechnical engineer do next? What tools are necessary to do so? Regardless of the method of measurement, the report will describe the location of the measurement site and describe the basis of the methodology used in undertaking the measurements and a log of the measurement program. Finally, it will include the results, which should incorporate the normal and shear stress components of the full stress tensor. Ground control management plans (GCMP’s) and stress summary reports and spreadsheets prepared by site geotechnical engineers always include the magnitude, trend and plunge of the principal stresses. Remarkably few site-based summaries include the full stress tensor. This is a significant gap as the full stress tensor is vital for any further data manipulation. However, without the algebraic tools to undertake those manipulations, their value is diminished. This paper seeks to provide a checklist of ideas to be considered. It provides commentary on the options available to dissect the stress measurement report and ensure that the maximum possible value is derived from it. The manipulation and presentation of component stress data is also discussed. The various methods of stress measurement are not the focus of the paper but some of the strengths and weaknesses of them over which the site geotechnical engineer has some control, are highlighted.

Nov 29, 2022

By C Itotoh, K O’Halloran, L Karlson

Global methods used to explore for minerals have progressed relatively slowly since the development of the first diamond core drill in 1863. Since then, key developments such as wireline geophysics (1920s), the tricone drill bit (1930s) and aeromagnetic surveys (1940s) all occurred in response to global events. In this project, BHP’s WAIO Geoscience operations team hypothesise that a global movement towards a greener future as well as an increasing intolerance for safety events will drive another step change in exploration methods. We have leveraged our relationships with exploration contractor partners and industry leaders to develop a realistic vision for 2033 and beyond, where drill rigs, earthworks and geophysical units are operated and maintained remotely; emissions of dust and waste are eliminated; hazardous energy sources are controlled; procurement is based on sustainability rather than cost and carbon emissions are tracked with the same rigour as production metrics. We have combined these visions into a series of graphical illustrations with the aim of inspiring ourselves, our vendors and our peers to collaborate further on producing a step change in our industry.

Sep 18, 2023

By R Kroukamp, G Rech

CRONIMET Australia in cooperation with Speciality Metals International, the mining lease holder of the Mt Carbine Tungsten mine, have demonstrated the preconcentration and processing of large (>12 million tonnes) tailings and mine waste dumps on site in far north Queensland. The first stage of this project has proven the economic viability of preconcentration using sensor-based particle sorting whilst ensuring high recovery of industry critical tungsten minerals – wolframite and scheelite. Sensor-based sorting technology have enabled the production of a sorter product to feed the existing wet gravity plant ensuring higher recoveries and increasing concentrate production. Processing of 1,000 tonne low grade samples using the TOMRA x-ray transmission (XRT) ore sorter installed on site, has reduced the volume of material entering the downstream wet processing plant by up to 60%. The sorted 10-25mm size range produced the highest upgrade ratio (product/feed) of 24:1 and achieved sorter concentrate grade of 1.52% WO3, sorter waste grades below 0.014% WO3 and metal recoveries of up to 93.4%. The appropriately sized, barren sorter waste material is also sold as aggregate and other quarrying products and thus adding to the overall economic benefit of the project. The utilisation of the sorting technology on site has produced an economically viable project, significantly reduced capital cost, and reduced the time to market of the final tungsten concentrate. The next phase of the project includes design and installation of a larger two sorter plant capable of over 150t/h feedrate.

Nov 10, 2020

By F M. Weir, M Fowler

The design of excavations in rock must, implicitly or explicitly take into consideration the influence of small- and large-scale geological structures. For most sites the complexity of a fractured rock mass is best captured using a 3D fracture system model based on field data. A discrete fracture network (DFN) approach involves stochastic modelling of the ‘smaller scale’, nondeterministic structures. For slope stability or tunnelling projects DFN modelling provides a valuable geotechnical tool for characterisation of a rock mass and identification of likely failure mechanisms.This paper presents a suite of the DFN modelling undertaken for the design of a large open pit in Australia. The proposed pit is to encounter a 160?m thick, high strength, sheared shale unit, which overlies a crystalline basement. DFN modelling was undertaken separately for both the shale and basement units. While the model inputs and development for each unit are briefly presented, the focus of this paper is on the various applications of the DFN modelling.A key advantage of the DFN approach for design studies is its probabilistic application to structural analyses and results. Multiple realisations of the same model were generated for both the shale and basement units, with the stability analysis carried out on each iteration. The generation of a large number of DFN models and analyses allow assessment of wedge volume, factor of safety and proportion of unstable slope for a range of conditions. The DFN modelling at the case study site was also utilised for a number of other purposes. For example, investigation of likely fault lengths in the shale unit and combined rock mass and defect failure. The development of this tool has been influential in improving our understanding of fracture networks for excavation design.CITATION:Weir, F M and Fowler, M, 2014. Rock mass characterisation and analysis for excavation design – a discrete fracture network approach, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 445–456 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By N Pirouznia, F Rashidi Nejad, S Naraghi

Sungun Copper Mine, which is the second largest copper mining operation in Iran has a large tailings storage facility with a seepage control dam located downstream of the main dam. Surface and groundwater in surrounding area of the tailings storage facility has been monitored for ten years. This paper will discuss the results of the surface and groundwater monitoring and seepage control at the Sungun Copper Mine. The results of the study show that if the tailings storage facility influence the water quality of the rivers, this effect is not significant, so that the prevailing parameters of the measured parameters were within the permissible standard of drinking water in Iran.CITATION:Rashidi Nejad, F, Naraghi, S and Pirouznia, N, 2018. Surface and groundwater monitoring and seepage control at the Sungun Copper Mine, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 439–453 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By D Howe, J Conn, J G. McLellan, K Gates

The Red October Gold Mine, owned by Saracen Gold Mines Pty Ltd, is located approximately 80 km south of Laverton, Western Australia. It is considered to be of a similar nature to many of the Archaean granite-greenstone deposits in the Laverton Tectonic Zone, and presents as an intriguing and relatively young deposit in terms of developed structural and genetic models. Regional deformation events have been proposed for the area, and are relatively well accepted. The most important of these deformation events in the region were the D4b (WNW–ESE sinistral transpression) and D5 (ENE–WSW dextral transpression) which have been attributed to the main Au mineralising phases. At the local scale there appears to have been a rotation of the regional stress field to provide the optimum orientation of maximum principal stress for sinistral movement on the main shear zone.Fully coupled 3D finite element analysis (FEA) was used to simulate the geomechanical response of the system based on structural observations. The geomechanical modelling resulted in highlighting anomalous patterns of stress and strain and subsequent fluid flow as a result of the two main deformation events. The D4 simulation provided a good correlation with the known distribution of subsidiary structures on the main shear zone, and furthermore provided several geomechanical targets that suggested locations of additional subsidiary structures. The D5 simulation provided a great insight into the response of the main shear zone and known subsidiary structures also highlighting additional targets indicating potential for further mineralisation. These targets have since been followed up with a 732 m deep surface reverse circulation (RC) drill hole, resulting in the discovery of two high-grade shoots, with follow up testing currently planned for mid-2014.CITATION:McLellan, J G, Conn, J, Howe, D and Gates, K, 2014. Structural controls and strain partitioning in the Red October Gold Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 315–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

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

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

Jan 1, 2007

By M Lak, R Amiri, A Haratian, M Asghari, S Haji

Dry magnet separators are used to upgrade and beneficiate a wide variety of minerals such as hematite and magnetite materials. In recent years advances in dry magnetic separators have improved their performance. Fine particle separation is one of the main areas which still remain weak. This paper will present a new design of fine particle drum separators which used for particle size less than 3 mm. A big problem in processing of iron ore is the grade and recovery of mineral values in the fines fraction. The new design high efficiency drum separator is developed to handle fine feeds. In this drum separators both of the drum shell and magnetic yoke rotate in opposite direction. the results showed that when the material feed size was = 1298 μm, drum shell speed was 42.5 rev/min, magnetic yoke speed was 100 rev/min and the maximum intensity of magnetic field was at = 30° the feed grade increased from 50.87 to 65.67 in concentrate box, increase to 60.45 in middle box and tail grade was 24.44. The total achieved recovery for both concentrate and middle box was 81.89 per cent.

Nov 8, 2021

By J de Witte

When used in suitable ground conditions, rock bolts can have advantages over other permanent tunnel lining solutions. Permanent rock bolts offer flexibility in tunnelling profile and rapid rock bolt installation can enable time and cost savings. There are also disadvantages when considering the suitability of rock bolts for permanent support installations. These generally concern achieving the specified durability requirement over the specified design life. By investigating alternate approaches to rock bolt installation, quality assurance (QA), monitoring and design life it may be possible to alleviate some of these concerns.The design and construction benefits that can be realised through the use of rock bolts are primarily related to reducing project program time. This time reduction could be realised if rock bolts are considered as a permanent solution, with the installation being completed as a part of the primary excavation cycle. Any reduction of the program could allow direct and indirect cost savings and in the case of a major project, allow the revenue stream to be realised earlier.Currently ambiguity exists where the treatment of rock bolts as permanent support components is inconsistent with that of (often identical) ground anchors, as utilised in stabilising cut and cover structures. The ground support design process, implementation and testing are generally similar, though the acceptance of rock bolts as long-term support elements is treated differently to ground anchors in technical specifications.This paper discusses some of the benefits available through the use of rock bolts. It offers different solutions to the concerns surrounding durability, including alternate approaches to installation, Quality Assurance practices and monitoring solutions. The selection of an alternate design life is also investigated as another means of alleviating concerns around long-term durability. The paper will also provide an indication of savings that could be expected through the use of rock bolts as part of a long-term support system.

Mar 8, 2011

By G F. Johansen

The erratic and localised occurrence of economic gold grades is a common feature of high-nugget effect gold veins. The nugget effect is a consequence of small-scale geologically controlled enrichment, and the inclusion or exclusion of sparse gold particles because of the sampling process. Such deposits do not always contain visible or coarse gold, and can be characterised by fine gold particles. Economic grade accumulations are generally contained within discrete oreshoots, which are surrounded by barren to low-grade material. Problems are often encountered where small sample types (eg drill core or channel samples) often vastly understate in situ grade, due to their general inability to intersect rare gold particles. As a result, the definition of grade and its distribution is often challenging, and leads to substantial resource uncertainty. Proxies, or indicators for grade, can help the geologist gain a better understanding of grade distribution and grade potential. These are based upon geological (eg mineralogical, textural, etc) and/or geochemical (eg specific elemental ratios, fluid inclusion compositions, elemental correlations, etc) criteria. The paper discusses the use and application of such proxies through three case studies.

Jan 1, 2004

By R Millar

A frequent challenge in mine water management and mine design is estimation of precipitation and extreme rainfall given a short record of site meteorological data. For remote mine projects, typically only a few years of rainfall data are available, which is far too short for estimation of design rainfall event, such as the 1-in-100 year storm. A frequency-paired approach is presented for comparing daily precipitation records from a mine site with a long-term regional station and provides the basis to transpose the long-term record to the mine site. This allows a long-term synthetic precipitation record to be developed for the mine site that can be used to undertake site water balance studies, determine pond storage requirements, assess water supply options and address other surface water management issues. Conventional approaches are based on chronologically-paired data and when applied to daily data generally yield poor correlations between stations. In the frequency-pairing approach, statistical distributions (two-parameter gamma distribution) are fit to daily data from two stations and used to calculate daily and extreme precipitation values for the short-term site (which is typically a mine or other project site). The method is demonstrated using data from two meteorological stations located along the south coast of British Columbia, Canada. Use of a fitted two-parameter gamma distribution (or other distribution) provides a sound theoretical approach to comparing precipitation data from two sites and the basis for transposing a long-term record to generate synthetic precipitation series and extreme rainfall values at mine sites.CITATION:Millar, R, 2013. A statistical approach for deriving project design rainfall, in Proceedings Water in Mining 2013 , pp 273-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

By C J. Unger, T Baumgartl, C J. Bond, P Sabourenkov, V C. Glenn

Social licence to mine is influenced by society’s perception of the mining sector’s ability to effectively rehabilitate mined land and for governments to appropriately regulate that process for the broader community benefit. In Queensland, Australia, many mine rehabilitation personnel working for active coalmines, as either staff, consultants or contractors, belong to the Central Queensland Mine Rehabilitation Group (CQMRG). The CQMRG was established 23 years ago with the aim of sharing informal knowledge related to practical aspects of rehabilitation in order to leave as positive a legacy as possible from mined land. This voluntary group of professionals also includes members from regulatory agencies and civil society. Within the dynamic regional mining environment, mine rehabilitation professionals benefit from sharing their informal knowledge.CQMRG is currently a group in transition. Mining boom and downturn cycles have exacerbated the loss of accumulated knowledge in the core CQMRG membership due to rapid changes in personnel at mines in the region. Additionally, some of the most experienced CQMRG-affiliated rehabilitation practitioners are approaching the end of their careers and want their valuable and less formal knowledge retained. This paper discusses the development of a research project that emerged in response to the anticipated loss of several decades’ worth of valuable knowledge as rehabilitation practitioners in CQMRG left the region or the workforce.CITATION:Unger, C J, Bond, C J, Baumgartl, T, Glenn, V C and Sabourenkov, P, 2016. ‘MRC-wiki’ – a mine rehabilitation and closure knowledge management tool for Central Queensland coalmine practitioners, in Proceedings Life-of-Mine 2016 Conference , pp 39–42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

Improved roof control in high deformation tailgate environments has been achieved over the last decade through development of stiffer and increased capacity standing support products. æThe CanÆ is one such development, being a steel cylinder containing a weak cementitious fill, designed to essentially fold in upon itself whilst maintaining strength. A laboratory study to better define the relative load contributions of the steel cylinder and fill, the confining interaction between these components and most importantly, the potential impact of varying the steel and/or fill properties is described. This would enable the support engineer to ædial-upÆ the desired strength and stiffness properties and optimise the standing support design with respect to load capacity, stiffness, weight (handling) and cost. Design curves to optimise strength based on steel casing thickness, fill strength (confined and unconfined) and æCanÆ geometry were established. Scaled-down (one-third) samples were used in the test program and found to adequately reflect the loading behaviour of full-scale versions, thereby providing significantly greater scope for further product development at less expense compared with testing full-scale products.

Jan 1, 2005

The state of sampling practice in South African minerals industry must be appreciated in the context of the changes that the country has recently lived through. These include the entrepreneurship and investment in local mineral developments, the 'unbundling of mineral assets', the rising foreign control of South Africa's mineral assets, developments in the regulatory environment, and the training that has come to the industry through international experts. In terms of their financial contribution the five most important commodities in the South African mining industry include gold, platinum, non-ferrous metals, ferrous metals, and coal. International Organization for Standardization (ISO) standards form the basis for international trade in two of these commodities and have had a steadying influence on sampling practice over the years. The contribution of the minerals industry to the economic well-being of South Africa and the strong financial links between good sampling practice and minerals marketing, has acted as a driver for improved sampling practice. The state of sampling practice at mining operations of the five main commodities was found to be quite widely divergent with 'pockets of sampling excellence' in each of the commodities. The stages of mineral development at mines for each of the commodities have been described in terms of the sampling sites, sampling mechanisms, and associated problems at different stages of mineral production from exploration, through face sampling, blasthole sampling, and in-mine grade control, ore processing and handling, metallurgical subsampling, process subsampling, and subsampling in the laboratory. In each case the principal errors were identified and their potential impact on value erosion was estimated. In the final analysis it is evident that the greatest problems arise in the early stage of mineral development, and that ferrous metals and coal are particularly susceptible to loss of value through poor sampling practice. Several examples of value lost through poor sampling at the marketing stage that arise from breaching contract specifications, either in terms of grade or sizing, are described. The conclusion is that larger companies with larger ore deposits and greater human, financial, and capital resources are probably more compliant with 'best sampling practice' than smaller companies. Finally the message that equipment suppliers are sending is that business is booming and the awakened awareness of the issues around sampling practice are translating into rands and cents spent on improved sampling equipment.

Mar 1, 2010

By E Lima, D Gregory, C Faria, A Lapworth

Open pit mine enterprises are complex systems that depend on multiple parameters such as mineral grade distribution, geotechnical characteristics, economic conditions and engineering requirements, all of which vary in time and space with a different degree of uncertainty. The unpredictable nature of these inputs imposes a risk to mine owners and shareholders which in the worst case can lead to highly undesirable financial outcomes.Desktop studies commonly examine a set of scenarios based on adjusting variables such as commodity prices, mining costs, processing costs, and metal recoveries to understand their relative impact on the economics of a project. It is less common to systematically explore and simulate hundreds of alternative physical designs to understand and compare the financial risk associated with one or more mining projects.This paper presents a risk assessment tool set and methodology that uses web based cloud computing to enable multiple simulations of mine designs to be rapidly and efficiently executed. The methodology includes generating random sets of prices and costs values within their respective probability distributions. Pit designs are then created to maximise the profit for each set of input variables. Various approaches to analysing the results are discussed. Use of the same high performance computing environment for understanding the financial risk associated with the variability of the underlying geological resource model is also discussed, with provided examples using case studies from two of the major mineral producers.CITATION:Lima, E, Gregory, D, Lapworth, A and Faria, C, 2014. Simulating extraction shapes to understand financial risk using high performance computing, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 351–360 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014