Search Documents

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By E Deucker, A White

Gold Fields Australia (Gold Fields) has identified that improving productivity through more detailed shift planning and operational control of mining activities is a key driver to the success of their business. The Hamlet mine was chosen as a pilot site to trial a system that would allow production engineers and shift bosses to align the execution of short-term activities with the longer-term goals of the organisation.Gold Fields partnered with Deswik to introduce an on-site, collaborative, web-based system to allow mine planners to quickly build-up a detailed, activity-based, shift schedule for the coming week from the 13-week plan. Multiple stakeholders could then review and alter the plan, and then track and manage the execution of the activities.The system is designed to be integrated with production data capture systems to allow tracking of progress towards completion for each activity, as well as to plan and monitor the equipment operating in the mine. Integration of systems allowed engineers to use the large quantities of production data being captured to make informed decisions in the operations environment.The system replaced a complex set of spreadsheets that required expert users in Gold Fields to maintain. By capturing the data in a central database, the planning process is transparent and historic data from the execution of activities is available for analysis to improve productivity in the future.The system has ensured that the highest priority and critical path activities for the business are completed at the right time, improving the efficiency of operations.CITATION:Deucker, E and White, A, 2017. Productivity improvement through collaborative shift planning and tracking, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 225–234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By B Saunders, J Carpenter

PanAust’s Phu Kham copper-gold operation (Phu Kham) in Laos is currently limited by throughput in the Semi Autogenous Grinding (SAG) mill. The ability to accurately predict SAG mill throughput (throughput) is therefore critical to accurately forecast copper and gold production. During the fourth quarter of 2016 the proportion of hard unweathered rocks in the mill feed increased, resulting in a period of lower than expected throughput. These low throughput rates prompted a study with the aim of identifying a practical solution for throughput predictions. The study identified an empirical modelling approach based on actual SAG mill throughput rates. The empirical model was then optimised by linear programming to identify the ideal feed blend of unweathered rocks to achieve a maximum SAG mill throughput.Rock strength was the initial focus of the throughput study at Phu Kham because previous studies had identified a strong link between rock strength and throughput. It was determined that there was insufficient valid data to adequately model but sufficient data to qualitatively characterise rock strength. The data identified that the weathering and lithology had a controlling influence on the rock strength. Complicating throughput predictions were operational improvements (changes to blasting and mill settings) implemented in response to the lower than expected throughput. This created uncertainty with the throughput equations. A self-learning empirical modelling method was developed to predict the throughput by incorporating fundamental rock properties with operational practices and improvements. The method is based on the proportion of mill feed with similar weathering and lithology (a proxy for comminution performance) and the actual mill throughput using the SAG mill as the analytical instrument. The modelling method simultaneously incorporated the sum and interaction of unmodelled influences including blasting, crushing and mill settings. The empirical modelling method worked at Phu Kham because the lithology and weathering has an intuitive and observable controlling influence on SAG mill throughput. The modelling method is described along with a worked example of feed blend optimisation using linear programming.CITATION:Carpenter, J and Saunders, B, 2017. Empirical mill throughput modelling and linear programming for blend optimisation at the Phu Kham copper-gold operation, Laos, in Proceedings Tenth International Mining Geology Conference 2017, pp 291–296 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By D Johns, L Murray

This paper discusses pore pressures in the embankments of tailings dams by comparing real world data with common design assumptions. Assessment of pore pressures has implications on material behaviour interpretation from CPT investigations and, therefore, on the design. For example, the assumption of hydrostatic pressure is conservative for limit equilibrium stability analyses but may be un-conservative in assessing the potential for contractive behaviour and strength loss during shearing. This paper presents some real world data, the investigation methods to determine the pore pressures, and subsequent interpretation of CPT data and material parameters such as the state parameter. It also examines the design implications of assuming a hydrostatic pressure distribution, by comparing results from that assumption with those obtained using the real pore pressures.CITATION:Johns, D and Murray, L, 2018. Characterisation of pore pressure in tailings dams and the implications for design, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 239–249 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By M Grigorescu, J H. Hodgkinson

The expansive, open cut iron-ore mines in Western Australia typically experience few days of rain per annum, often amounting to less than 250 mm. Unlike mines where rainfall is frequent, they may be less prepared for extreme rainfall events. Such events can cause erosion, flooding and sedimentation, drainage alteration, spoil and stock heaps wetting and effect slope stability. Such impacts may threaten personnel safety, infrastructure, and production. The CRATER (‘Climate Related Adaptation from Terrain Evaluation Results’) framework collates and interprets a mine’s pre-existing data and semi-quantitative information to assess vulnerability to, and ultimately plan to avoid or minimise, flood-related hazard to infrastructure, people, downtime, environment and revenue. Outputs assist decision makers to design investment strategies for minimising mining operations’ vulnerability to climate. Previously developed for smaller, wetter mines in Queensland’s coal region, the outputs provide a hot-spot map, fault tree analysis and an assessment of the mine’s capacity to adapt. The multicriteria evaluation (MCE) within a geographic information system (GIS), equally suits iron-ore mines’ siteconditions (elevation, slope, drainage, soil and vegetation) to identify critical inundation areas. Hotspot results provide target zones for in-depth fault-tree analysis that, in turn, present a range of sitespecific adaptation options. Rainfall-intensity and the number of rain days since the 1970s have increased over central and eastern parts of the Pilbara Region. While tropical cyclones may become less frequent, they are projected to increase in intensity. Although some parts of the Hamersley Ranges receive more than 500 mm per annum, rainfall in the Pilbara is generally very low. Therefore, experience of the impacts of extreme rainfall events in the constantly changing topography of Western Australia’s iron ore region may be sparse. Minimising potential effects can be proactively assisted using CRATER.

Nov 8, 2021

By G Davison, C Rossimel, M Bouazza

Expanding rock bolts anchor within a rock mass more efficiently than non-expanding varieties. This is of great importance in weak ground conditions, where grouted friction bolts perform less efficiently than in good ground conditions. Filling a Split Set with demolition concrete has been shown to double the load-carrying capacity when compared to conventional use of Split Sets. This report details verification of these results by installing and pull-testing 14 Split Sets of varying grout conditions within in a fault zone. These Expanding Split Sets achieved loads double and triple that of ungrouted and normally grouted conventional Split Sets. A literature review and chemical analysis were conducted to understand the expansion process better. It was found that 20 per cent more calcium is included in expanding cement, which is responsible for its growth. Factors most affecting the expansion process were identified. Furthermore, the expansion rate of a bolt outside a borehole was measured and 6 mm of expansion across its diameter was found. The compressive properties of the cement were compared with other types, due to expanding cement becoming uncohesive after the expansion process is complete. When confined within a Split Set, compression testing demonstrated that this grout is just as strong and rigid as normal grout. Finally, the bolts were tested by shear and it was found that the Expanding Split Set (ESS) has a similar shear capacity to grouted Split Sets, which is 70 per cent higher than that of ungrouted Split Sets. These results enabled the mechanism for improved performance in weak ground conditions to be verified. Expanding grout will expand the Split Set into its borehole of varying diameter and lock it into place, creating increased friction and resistance to pull-out. This paper shows that ESSs can be a useful reinforcement technique in weak ground conditions.CITATION:Rossimel, C, Davison, G and Bouazza, M, 2014. An investigation of expanding split sets in weak ground, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 159–170 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

The King River Power Development on the West Coast of Tasmania has involved the storage of the waters of the King River in the new Lake Burbury and their diversion through a 7 km tunnel to a 144 MW power station. The last kilometre of this tunnel descends through 160 m under a ridge before emerging from the bank of the King River at the power station site. The decreasing cover over the tunnel as it approaches the power station meant that a steel lining was required in the last few hundred metres of the tunnel. This paper describes the geotechnical investigations which were carried out to establish the necessary length of the steel lining.

Jan 1, 1993

By A J. Daniels

Macraes Mine is a large-scale open-cut and underground gold mine located in Central Otago, on the South Island of New Zealand. This paper presents the role of geological mapping in the grade control process at Macraes Open Pit as a case study, and demonstrates how systematic geological mapping can add significant value to the mining cycle. Geological mapping has proved to be a valuable foundation for orebody interpretation and analysis.Practical applications and lessons learnt are summarised, including predictive control of the orebody, improvement of geotechnical modelling, and identification of further exploration targets.

Aug 22, 2011

By B Davis, M Wallace, J Stewart, C F Burrett, J B. Cannell

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Sepon district in Lao PDR contains 1.8 Mt of JORC (2012) compliant contained Cu resources in addition to >4.5 Moz of Carlin-like Au in a Palaeozoic sedimentary package. The Cu deposits are proximal to an EW lineament of Permian rhyodacite porphyry (RDP) intrusive centres that are characterised by intense barren quartz stockworks. The Khanong deposit (42 Mt at 3.0 per cent Cu mineral inventory) is a carbonate replacement intermediate sulfidation deposit verging on a high sulfidation environment, where abundant pyrite, copper sulfides (chalcopyrite, bornite, trace enargite), copper sulfosalts (including tennantite – tetrahedrite, colusite), and base metal sulfides (sphalerite and galena) have replaced low dipping dolomite and limestone layers, forming a manto-style orebody fed by steep dipping intensely silica-pyrite altered structures. The Thengkham deposits (54 Mt at 1.5 per cent Cu) are composed of prograde skarns (garnet, clinopyroxene) and mineralised retrograde skarns (chlorite, magnetite, hematite, epidote, sericite, talc, serpentine, carbonates, sulfides) which are irregularly and semi-continuously distributed around an elongate 4 km long intrusive centre. Thengkham and Khanong have been strongly supergene enriched, forming secondary chalcocite breccias and exotic malachite zones.The Carlin-like Au deposits display a range of stratigraphic and structural controls and lie outboard of the Cu deposits. Similar structural controls, alteration assemblages and trace mineralogies suggest that gold and copper mineralisation are temporally and genetically related. It is hypothesised that the differences in style of Cu and Au deposits across the Sepon district are related primarily to palaeodepth and proximity to the intrusive centres.CITATION:Cannell, J B, Stewart, J, Williams, P, Wallace, M, Burrett, C F and Davis, B, 2015. The Sepon copper deposits (Laos) and their relation to Carlin-like gold mineralisation, in Proceedings PACRIM 2015 Congress, pp 399–408 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Waghorne E. P

The State Electricity Commission of Victoria is Australia's largest single coal producer. Approximately 19 Mt of coal will be produced in 1989 from the SEC V's newest mine, Loy Yang Open Cut (LYOC), which com- menced overburden stripping operation in October 1982. When the adja- cent Loy Yang Power Station is completed in the late 1990's, LYOC will supply between 35 to 45 Mt/a, depending on power station performance and demand of coal for non-power generation uses. LYOC has been a major challenge for the SECV. It is the biggest single open pit coal mining development undertaken in Australia, with a whole of life capital cost approaching A$1 billion. The mine has supplied a very rapidly growing demand for coal from the expanding power station while developing in breadth, length and depth. Coal demand has consistently been above the figures anticipated during the initial planning because of the substantially improved performance of the 500 MW units of the Loy Yang A Power Station. The superior performance of the LYOC and power station has generated additional electrical energy during the first 5 years of power station operation compared with the initial planning targets- at almost no additional capital cost. This has been a major benefit to the SECV. LYOC will continue to present major challenges for the SECV, particularly in achieving overburden removal and coal reserve targets as development of the open cut continues to full depth over the next 15 years.

Jan 1, 1989

By J T. Woodcock

This paper discusses characterisation techniques that can be applied to complex waste products from metal production and processing operations with the aim of devising treatment methods for upgrading the metal content for recycling. Two waste streams were selected to illustrate the role of characterisation in adapting mineral processing techniques to provide an effective recycling strategy. Waste products chosen were:aluminium dross, which contains metallic aluminium particles in a coarse matrix of many components; and steel shredder sludge that contains copper wire and other metallics in a matrix of plastic and natural fibres, iron oxides, metallic iron, and other compounds. Characterisation methods discussed include chemical analysis (XRF, ICP-AES, and selected specialised techniques), phase analysis (XRD, SEM, TEM, and optical microscopy), morphology (IFESEM), sizing analysis (screening, Cyclosizing, Infrasizing, Malvern sizing), and general techniques such as particle shape, surface area, and porosity determinations. The applicability of these techniques to the waste products is considered in relation to their advantages and disadvantages, and sampling issues.Treatment techniques considered for the two waste products included comminution, screening, air or water classification, simple water leaching, gravity separation, magnetic separation, flotation, and eddy current separation.Tentative flow sheets were developed for the two wastes. For aluminium dross, it was proposed to use fine crushing followed by water washing to remove soluble chlorides and aluminium nitride, and then desliming followed by flotation of the granular fraction to give a metallic aluminium-rich concentrate. For shredder sludge, it was proposed to use wet screening, water classification, and gravity concentration to produce a copper-rich product and magnetic separation to produce a metallic iron-rich product.

Jan 1, 2004

By Blair J. R, Barrett J. R

In many underground mining applications where-dry fill is used, only a token acknowl- edgement of the fill properties is given. It is the aim of this paper to induce mining engineers to consider dry fill as an engineer- ing material rather than a mass to place in unwanted voids. Dry fill is generally cheap, inert and readily available, but it can still contribute to mining performance. In particular, the choice of the dry fill becomes more critical as stope sizes increase, controlled choked draws are used or pillar recovery introduced. Selection must be initiated from an evaluation of the role of the fill in the mining operation. In most cases the fill must be chosen before quarrying begins and an investigation must be made of available sources and appropriate quarrying methods. Some of the properties of fill are described together with evaluation techniques. A com- parison of placement conditions is limited by the complexities of material flow and degrada- tion: However, field and model tests can aid interpretation in these cases. Examples are given of aspects of dry fill selection and their incorporation in mining design.

Jan 1, 1973

By Lu T. K

A new type of rockbolting system, the self drilling rockbolt, has been studied to develop a 'single pass' bolt for use in rockbolt installation in underground engineering. This single pass bolt forms the basis of a Rapid Face Bolting system which will reduce the amount of time spent in securing a roof during the operation of a continuous miner in the development of a panel.The installation efficiency and anchorage tests were performed in the laboratory on the self drilling bolt and the traditional resin anchorage. bolt. The results of both bolts are cmmnared.

Jan 1, 1993

This paper deals with the evolution of Canadian shaft sinking technology over the last 15 years. Most, if not all, shaft excavation projects in Canada prior to 1990 were sunk using traditional benching methods with labour intensive equipment. In the late-1980s, J S Redpath Limited of North Bay, Ontario, Canada, were contracted to deepen the shaft at Atomic Energy of Canada LimitedÆs Underground Research Laboratory (URL) located in southern Manitoba. The laboratoryÆs role was underground hydrological and geomechanical research, so the project offered both time and opportunity to conduct additional experiments while sinking. The offshoot of the research program was the true birth of the Canadian version of full-face, long round shaft sinking technology. Throughout the 1990s, this sinking method has been further refined over a number of shafts. The results have been faster sinking rates, a safer work environment and an overall improvement in project economics.

Jan 1, 2002

By C Jenkins, J Jasper, Y Suryaputradinata, S Lozyk, M J. Hartmann

The primary objective of mining companies is to function as a profitable business by delivering products that fit customer requirements in a safe and sustainable manner. Optimum resource utilisation is a critical focus area to achieve this objective, and the long-term sustainable business performance of a mining company is determined by the extent to which this is achieved. Technology improvements and/or new technology development could improve resource utilisation. However, adding new projects to a Brownfield operation carries risk. Overall project schedules, tie-in schedules and safety risks normally receive adequate attention, but the introduction and integration of new technology to a Brownfield site also carries the significant risk of failure to achieve design performance (quality or throughput). This risk must be addressed via rigorous design phase risk assessments and piloting. Post commissioning, the effective metallurgical integration of any new technology/circuit/process plant into an existing process plant calls for critical assessment, through circuit performance testing, and optimisation to ensure alignment with design criteria. In addition, this approach provides clear focus areas for further optimisation of the new plant and additional opportunity for overall plant optimisation. Roy Hill recently navigated this process successfully, and this paper provides feedback on the journey that led to improved resource utilisation.

Nov 8, 2021

Joint ventures exist as a means of sharing risks and obeying regulations. An unincorporated joint venture allows a company to take a share only of a project yet allows that company to treat such share as though it were an integral part of the company. The nature of the risks inherent in many ventures is described and comparisons made with alternative corporate vehicles. Different procedures for managing joint ventures are also reviewed and the types of problem encountered in establishing and operating joint ventures are discussed. The basic characteristics of successful joint ventures, in Australia, are listed and a conclusion reached that, despite its difficulties, the joint venture will continue to proliferate as a corporate vehicle for project development.

Jan 1, 1983

By Baxter D. A

This paper, one of two written about the Queensland Railways Brunswick Street tunnels presented at the VIII Australian Tunnelling Conference, 1993, describes the design and monitoring aspects of the railway tunnels built between Central Station and Brunswick Street Station.The design was mainly influenced by the need to minimise settlement of buildings above the route. The performance of the design details and the monitoring of the tunnels are briefly described.Appendices include extensions to the work of Curtis in the analysis of circular tunnels in a viscoelastic ground.Reference: Asche, H R and Baxter, D A, 1993. Design and ground support monitoring of the Brunwick Street rail tunnels, Brisbane, VIII Australian Tunnelling Conference.

Jan 1, 1993

By C Xuan, J H. Park, Q Wang, C Shen, D Kumar, W Mu

Dissolution of non-metallic inclusions in the metallurgical slag is of vital importance for cleanliness control of the steel manufacturing. With the development of high temperature confocal laser scanning microscope (HT-CLSM), new insights have been obtained due to its in situ observation characteristics, higher resolution and precise control. However, HT-CLSM measurement has the limitation, eg the slag composition cannot include high amount of transition metal oxides. In addition, it is time consuming for the experimental procedure and not so simple to succeed for every measurement. It is known that digitalisation has made a significant progress in recent years. Machine learning (ML), a sub-domain of artificial intelligence (AI), is the key enabling technology for the digitalisation of the material science and industry. The database for ML model is collected using almost all available HT-CLSM experimental data and subsequently the established database is trained by different ML methods. Unseen data is used as the benchmark of the ML model. Al2O3 dissolution is the main process to be predicted in the current study. A good agreement between the HT-CLSM data and the ML model prediction results show the possibility to apply ML in process metallurgy.

Jun 19, 2024

By R Brown

The Singapore Land Transport Authority Contract C917A is for the design, construction and completion of all outstanding works under the original Contract 917, including taking over the design and construction responsibility for the works carried out by previous contractor. Construction works connect the bored tunnels between the stations at King Albert Park and Sixth Avenue on the Downtown Line two in Singapore.The original contractor became insolvent leaving the works incomplete. On 29 August 2013 McConnell Dowell were awarded the completion contract following a fast-tracked tender process. The completion contract required a quick start and therefore the recruitment of some of the original workforce. A large majority of the original workforce was from Malaysia, Indonesia, China, Philippines, Bangladesh, India and Thailand. In order to ensure that the safety standards were upheld, and that the new workforce embraced a safety culture, a behaviour based safety (BBS) approach was implemented.The BBS approach was implemented to overcome the existing poor cultural safety behaviours, and to ensure that high standards and expectations for safety were implemented. This ensured that the workforce were comfortable in identifying hazards, avoiding shortcuts, and changing poor safety behaviours.This article outlines how a BBS program was delivered on the C917A project, containing defined goals, communication tools, and assessment and feedback models.CITATION:Brown, R, 2014. Behaviour-based safety with a foreign-based workforce, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 65–68 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A McGann, P J. Coghill, D Miljak

"It is widely accepted that bulk ore sorting could provide a step change in processing of low-grade ores. For this to be achieved a rapid, accurate bulk sensor of grade is required as well as sufficient natural variation of grade in the ore stream. CSIRO trialled a magnetic resonance (MR) sensor capable of measuring chalcopyrite, and by inference total copper grade, on the 1300 t/h Ridgeway portal conveyor. The gauge produced an unprecedented set of data down to a 1 t scale for months at a time. This paper analyses the measured variation and compares it to a simple model derived from the bore core data and mixing within the block cave mine.The model of the small-scale (<1000 t) variation is developed using fractal methods which have successfully been used in the past for copper porphyry deposits showing a power law or near power law distribution of copper grade and vein sizes. These fractal distributions have two features highly favourable for segregating ore, a large proportion of low-grade pods and the large-scale spatial clustering of grade. We show the presence of fractal ordering in bore core data at short range in the Cadia Ridgeway porphyry deposit and measure its persistence in the crushed rock produced by the Ridgeway block cave mine over one month. The model is then extended to demonstrate the effect of varying head grade, mixing and pod (or diversion) weight on bulk sorting efficiency.CITATION:Coghill, P J, Miljak, D, McGann, A, 2016. Modelling Grade Variation in Crushed Ore at Cadia Ridgeway and Its Potential Consequences for Bulk Ore Sorting, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 77–88 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016