Search Documents

All companies and individuals who embark on a business venture incur costs. For the most part these costs can be conveniently categorised, firstly into capital and operating costs and then into the various elements of these major cost centres. Although the nature of expenditure naturally differs as between industries certain broad cost types are characteristic of all heavy industries. The capital costs of gaining access to an orebody, equipping a new mine, building a treatment plant and perhaps refining and smelting facilities are likened to capital expenditure by a manufacturer on new plant and equipment required for an expansion or new product innovation. Similarly the day to day costs of labour and materials employed in the running of a mining operation can be likened to similar costs in other heavy industry. There is another group of costs that are not so easily categorised. Most industries incur unavoidable costs that do not form part of the direct or capital costs of physical production. These costs include taxes and other payments to government and research expenditure. The mining industry has a particularly heavy burden of non-production costs and it is the objective here to highlight and analyse a few of them. These costs are exploration expenditure, infrastructure expenditure, royalties and income tax. This is not to suggest that these are the only major non-production costs that the mining industry needs to bear. The industry may incur significant costs for environment protection, land tenure maintenance and on liaising with Government on a wide variety of matters. It is for reasons of subject manageability that the list is confined to the four costs mentioned. For the mining industry, exploration and infrastructure expenditure, royalties and income tax have several distinguishing features. Firstly, they are generally proportionately large costs. Exploration and infrastructure expenditure for example, could well exceed mine development costs. Depending on how royalties are levied, they may be very high in relation to profits earned and many in fact exceed profits. Secondly, except for income tax, they are costs that are generally not payable by other industries. Exploration expenditure is in some respects comparable with industrial research and development. However, because mines are wasting assets exploration is necessary for survival, and it is likely to form a larger part of costs per dollar of profits or sales than R&D. It can therefore be said that exploration is of far more significance to the miner than R&D is to the typical industrial company. Furthermore, unlike exploration expenditure, R&D results are transportable and patents permitting, transferable. The infrastructure burden that miners must carry is unique to the industry. Whereas urbanised industry is not usually liable for the capital cost of power, water, transport, townships and community facilities, the miner must finance these projects himself. Neither the payment of royalties, nor of course, income tax are unique to the mining industry. Royalties are more properly described as a unique charge on some primary industries but however described, they are a charge that manufacturing and service industries do not have to pay. Whilst we all pay income tax, the mining industry's uniqueness derives from the special problem that the industry has in arriving at annual net income in view of the capital intensity of the industry, partly due to expenditure on infrastructure, the indefinite life of capital equipment and its unpredictable residual value, funds expended on exploration and long lead times associated with a mine development. The third distinguishing feature of these costs is that, with the possible exception of exploration expenditure, they are heavily influenced by the policies and actions of Government. As such the industry has a responsibility to promote the industry by emphasising its potential to improve national product including exports and by requesting that the Government provide for the industry in its long term planning and seek its co-operation to prevent the industry incurring inequitable penalties relative to other industries.Finally, exploration and infrastructure expenditure are significant because they are front-end charges on a project. When due allowance is given the time value of money and the deferment of income from a mining development to which they relate, exploration and infrastructure expenditure assume greater importance than the raw money expenditure suggests. For all these reasons, exploration and infrastructure expenditure, mining royalties and mining income tax are worthy of detailed study. This is the purpose of this paper. The objective is to examine the determinants that give rise to them and provide some thoughts on their impact on on-going and potential mining developments and, where relevant, to make some suggestions as to how they may be minimised.

Jan 1, 1977

This paper summarises some observations regarding the way SAG and AG mills work based on the last ten years of pilot plant operation, grinding circuit design and operational reviews for various projects in Australia and overseas. The main purpose is to promote discussion on key factors influencing breakage in a SAG mill. The focus of the paper is on two questions: How do mill lifters and liners really work and have an effect on grinding? How does the mill charge composition impact on grinding performance? The focus of the paper is on observations of mill behaviour in both pilot plant trials and plant operation, particularly on Cadia ore. DEM, by others, and JKSimMet modelling of SAG mill performance have greatly assisted in forming the ideas expressed in the paper and both are valuable tools in developing our understanding of the comminution process. Put in the æextremeÆ form the major observations and conclusions expressed in this paper are that: the main purpose of mill lifters is to reduce mill liner wear and not to promote rock breakage; the often promoted theory that balls impacting the ætoe of the chargeÆ is a dominant form of breakage is incorrect; and fines production in a SAG mill is primarily a function of the rock load mass, with a secondary dependence on ball load for any given circuit configuration.

Jan 1, 2007

The Ausmelt Catalytic Waste Converter (CWC) has been developed for use in the treatment of industrial wastes and for the recycling of secondary materials. Ausmelt Technology uses a top submerged lance system within a versatile and efficient slag bath reactor. High temperature pyrometallurgical reactions are carefully controlled within an oxidised molten siliceous slag such that metals can be extracted from waste feedstock for recycling, with non-volatile elements reporting to the slag, usually as oxides. Modification of the slag chemistry results in a final slag product that is stable, vitrified and is able to pass standard leach tests such that it is safe to discard or be used in civil engineering applications. Toxic components in the wastes such as organohalides can be completely destroyed and are prevented from reforming. Waste to energy conversion is practiced by the addition of a heat exchanger/steam generator in the converter offgas system. The Ausmelt CWC has been used for recovering zinc from residues and slags, treating spent potliner (SPL) from the aluminium industry and a wide range of electronic and other potentially valuable waste materials. Methods of monitoring the exhaust gases at different stages in the CWC gas handling system are discussed. The assay of these gases prior to emission is used to assist in the control of the converter chemistry to ensure the complete oxidative breakdown of the feedstock.

Jan 1, 2002

By McCarthy J

In both the U.S.A. and Canada regulations concerning the reporting on mineral resources and especially ore reserves have been established. The regulations are virtually identical for the two countries with the main exceptions being who is franchised to write the report and how the various reserve categories may be used in reports to the public. Both countries divide ore reserves into "proven", "probable" and "inferred" categories. "Proven" reserves are those for material for which tonnage is computed from dimensions revealed in outcrops, trenches, underground workings or drill holes and for which the grade is composed from the results of adequate sampling. "Probable" reserves are those which are less well defined than "proven" while "inferred" reserves are generally those which may exist through geological and geophysical interpretation. The AusIMM/AMIC draft guidelines as proposed for use in Australia define more rigidly the ore reserve categories into "proved" and "probable" terms, which can only be applied following a full and favourable analysis of economic, mining, metallurgical, marketing and sociopolitical factors. If the ore reserves are not supported by this analysis they are placed into a "resource" category. Proper application of this proposed Australian model could prove useful when dealing with grass-root prospects or mining properties in the pre-feasibility stage. Combined with competent reporting, use of the proposed guidelines should ensure standardised and more verifiable analysis/valuation of a company's mineral assets.

Jan 1, 1987

By Lightfoot BW, Foo KA, Conochie DS

Aberfoyle Limited operated a matte fuming pilot plant, incorporating a SIROSMELT furnace in 1980/81. This plant was a significant advance in both smelting and tin extraction technology. Important design, construction and commissioning aspects are discussed and some of the key points to emerge from this phase of the work are reviewed.

Jan 1, 1984

Extensive infrastructure construction works were required for the development of the underground and open-cut coal mine at Ulan to a production capacity of 5 million tonnes of steaming coal per annum. The Ulan Mine development project was constructed in a two year period at a cost of $240 million. The infrastructure component included the construction of the mine site building works, civil works and 150km of railway, valued at $105 million. These works were successfully completed under a construction management agreement within two years. The separate elements of the project are described in detail in the paper.

Jan 1, 1983

Prediction of large-scale underground opening stability in quite complex mining circumstances is being undertaken on a routine basis at The Zinc Corporation, Limited, (ZC) and New Broken Hill Consolidated Limited (NBHC) Broken Hill, Australia. A three- dimensional numerical modelling technique has been developed that gives good correspondence with the observed behaviour in many stopes. New insights into the rock mechanics of under- ground mining are flowing from this work. The modelling practice can be taught to engineers in a reasonable time-frame. In-house computing facilities including graphics workstations are needed. The RMS software is designed to be user-friendly and very robust.

Jan 1, 1983

I would like to start by thanking The AusIMM and CSIRO for organising this excellent conference and inviting me to give a keynote address. Today I will focus on some broad observations of our industry, and leave the technical discussion to my colleagues who are presenting specific papers covering a wide range of topics. In preparation for this paper, I did a little research into the early history of the Pilbara iron ore industry. I was fascinated to read a quote attributed to Harry P Woodward, the Government Geologist in the late 19th century, before Federation. Mr Woodward described the Pilbara as an iron ore country and observed that æthere is enough to supply the whole world should the present sources be worked outÆ. Mr WoodwardÆs prediction could be viewed as wishful thinking and certainly at Hamersley Iron I would gladly envisage the Pilbara supplying the worldÆs entire iron ore needs! In reality, Western Australia accounted for 162 million tonnes or 36 per cent of seaborne trade in 2001. An impressive effort, but not quite the total world supply as Mr Woodward imagined. But we shouldnÆt dismiss these historical musings out of hand û perhaps we could see it as a challenge for the industry to æwork outÆ the present sources. We all know there is abundant iron ore in the Pilbara, and I expect it is only a matter of time until our collective technical expertise and sheer hard work will enable us to utilise its greater range of ore types. Opening up new markets will be a key pathway to creating additional value from the Pilbara ores. Today I will examine the state of play of our industry and the major influences that shape our business at present, before considering what the future might hold for us. I canÆt guarantee the accuracy of my crystal ball, but the stability and long-term nature of our industry does enable some reasonable hypotheses on where we are heading. I will also spend some time examining the way in which the iron ore producers are working to maximise the value of their resource base and obtain more from their existing capital assets.

Jan 1, 2002

By Wauchope AMH

Arsenic residues from BHAS Refinery operations are currently treated to form a calcium arsenic compound and stored in lined dams on site. Laboratory and large scale work on these residues has resulted in the development of a hydrometallurgical process for production of arsenic trioxide. The process also recovers the material from the storage dams. The residues are hot water leached to produce an alkaline arsenic liquor. This liquor is mixed with material from the storage dams and lime to form a calcium arsenic precipitate. The precipitate is then reacted with sulphuric acid to form gypsum for return to the main plant, and an acidic arsenical solution. Metallurgical gas containing 3-6% sulphur dioxide is bubbled through the solution and on cooling arsenic trioxide is precipitated. The product contains in excess of 95% arsenic trioxide. Installation of a plant at Port Pirie based on this process is being evaluated by BRAS.

Jan 1, 1984

Most internationally traded iron ore resources are derived from multiple mine sites, transported to a port facility where they are blended and possibly further processed prior to shipping. Provided the proportion of contributions varies over a number of shipments an estimate can be made of the bias introduced by mine site sampling, analysis and materials handling systems, using zero-intercept multiple linear regression. Further regression applied to the residuals allows the error variances for the source mines to be estimated. Various sampling strategies are used by the industry. All have shipment-loading sampling on which payment or at least provisional payment is based. In most cases sampling prestockpile is used at mine sites to verify estimated production grades. Train grades are estimated from mine stockpile grades and in some cases train grades are verified by port input sampling. The methodology used is presented in this paper. Simulated data have been used and do not reflect the actual performance of any operator. The merits of the various systems and the implementation and potential limitations of our method are discussed more fully in a companion paper (Ziegelaar and Everett, 2010).

Mar 1, 2010

By H R. Watli, K L. Davies, J A. Johnson

Novel microbial isolates that readily oxidise iron and sulfur were recovered from samples collected from a spent chalcopyrite/pyrite test heap. Methods were developed to enrich and isolate microbes that thrive in low pH environments and utilise iron and/or sulfur as sources of energy. Screening of these isolates revealed diverse substrate utilization (sulfur, ferrous ion, chalcopyrite, pyrite, glucose) as well as growth at temperatures between 30 - 50¦C. When native isolates were employed, shake flask leaching tests of chalcopyrite concentrate resulted in higher copper yields in comparison to laboratory reference strains Acidithiobacillus ferrooxidans (DSM 583) and Sulfobacillus thermosulfidooxidans (DSM 9293). After 700 hours several native isolates had leached between 20 - 30 per cent more copper than laboratory reference strains during experiments conducted at 45¦C. This research has established a unique culture collection of mining microbes that readily adapt to Australian conditions. Exploitation of these microbes may result in improved leaching kinetics and copper recovery from Australian chalcopyrite ores as demonstrated from shake flask leaching tests. Whilst this research provides a capability for Australian mineral sulfide ores, this technology can be easily adapted to suit ores of any origin resulting in more effective and efficient microbial leaching.

Jan 1, 2004

By E Kozan

The paper presents new developments of the methodology of open pit coal production scheduling optimisation. They deal with the specific features of the exploitation of single coal seam and utilisation of truck-shovel and dragline systems. A production scheduling optimisation model is developed as a linear programming problem. The objective function maximises the net present value of the mining project under the technological constraints for meeting the demand function of the coal processing plant and effective utilisation of the available production equipment. Both principles of mine planning, coal quality optimisation and waste deferment are incorporated in the model. Results of a case study are provided to illustrate the applicability of the optimisation model.

Jan 1, 2003

By D H. Bell

The potential for extracting gravel materials from active floodplain and channel areas has been investigated for three West Coast rivers û the Grey, Inangahua and Whataroa. Studies have focused primarily on resource availability and replenishment, but there are clearly also environmental management issues associated with such a proposal. The potential uses for of extracted materials include roading and concrete aggregates, as well as railway ballast, whilst a major benefit would be in assisting with flood control and channel maintenance in a naturally aggrading system. Sediment movement in the rivers has been examined at three scales; long-term (>100 years), medium-term (10 - 100 years) and short-term (<10 years). Long-term sediment movement is based on geological and geomorphological information, such as cyclic fan development and down-cutting in the Whataroa River where sediment input appears to be largely controlled by Alpine Fault rupture events. Medium-term assessment relied on air-photo interpretations over a period of about 50 years, with the mapping of channel changes and bank migration. Short term changes were evaluated from gauging records and other hydrological data, and took account of the development of an armour layer in these gravel-bed river systems. It was concluded that sediment in the lower reaches of each river was suitable for most aggregate uses, although input of more weathered Greenland Group materials in the upper reaches (eg of the Mawhera-iti or Little Grey) resulted in product that was not satisfactory for sealing chip or railway ballast. Of greater importance was the fact that short-term studies showed that a minimum threshold of flow was required for gravel entrainment, and that significant sediment movement only occurred above the one-year return period flood. Ongoing monitoring of river profiles, with accompanying flow gauging, would clearly be necessary were a substantial increase in river bed extraction to be permitted by The West Coast Regional Council.

Jan 1, 2003

This paper is essentially an address, rather than a detailed presentation of facts, because the third edition of `Nuclear Electricity - An Australian Perspective' has just been completed and will be available for the seminar. That 96-page booklet contains a lot more information than The AusIMM would be prepared to print in the seminar proceedings. Hence I have kept this paper brief, and ask readers to obtain a (free) copy of Nuclear Electricity at the seminar or from The AusIMM. It can be read as a supplement to the paper (or vice versa). According to one of Australia's well known critics of nuclear power, Professor Ian Lowe, `the pro-nuclear lobby's predictions of the future use of nuclear energy .... have been regularly and consistently wrong by large amounts, always overestimating the future demand for uranium" (Aust. Society, April 1989). While I do not accept this as a bald statement applying to all those in favour of increased use of nuclear power, there is sufficient truth in it for it to be credible. Certainly in the 1950s and the 1960s, when the new technology for producing controlled power from atomic fission was first being commercialised, there were some very exaggerated projections of the role of nuclear power. Many people thought that it would take over from fossil fuel fired electricity generation in much the same way as the motor vehicle took over from horse-drawn transport. And these early projections were not simply concerned with electric power generation, they included excavating harbours and digging canals with nuclear explosives.

Jan 1, 1989

TSG Consulting works with many of the major global mining companies using simulation modelling as an integral component in their development teamÆs processes to determine which combination of infrastructure options, operating performance and operating rules best achieve project goals. All systems can be divided into a series of subprocesses. Conventional management and design practices focus on the optimisation of these system components. However, the interaction between subprocesses means that improvements made to the individual components do not necessarily translate into total system performance improvement.TSG Consulting advocates a ætotal integrated system approachÆ to understanding the behaviour and performance of complex interacting systems. In a constraint-based integrated set of processes, the instantaneous system capacity is limited by the subsystem component capacity that is the bottleneck at that point in time. Additionally, real world stochastic and dynamic influences tend to have knock-on effects across subsystem boundaries. This necessitates the requirement for simulation modelling to develop and validate solutions that are sufficiently robust to deliver sustainable outcomes. The key to maximising production is to understand the causes and effects the inherent variability has on component performance, subprocess performance and most importantly, the total integrated system performance. The correct use of simulation modelling techniques allows study teams to evaluate the relative merits of different capacity enhancement proposals. Put simply, when done well, simulation modelling provides a quantitative and rational process to enhance the knowledge and insight needed to make informed decisions.

Jan 1, 2007

By Jin C, Shi X

The electrochemistry of leaching gold with thiosulphate has been studied systematically by using electrochemical techniques. Results show that the current peak of anodic dissolution of gold occurs at about 50 mV(SCE) and there is passivation in the polarisation curve in the thiosulphate solution in the absence of ammonia. Ammonia markedly improves the anodic dissolution rate of gold and reduces the passivation as well as making the current peak shift negatively. Results also show that there is no current peak for a cathodic process in the range of 0 -900 mV(SCE) in the thiosulphate solution in the presence of oxygen but absence of cupric ions and ammonia. In the solution containing 0. 1 mol/L cupric-ammonia ions, the peak occurs at about -400 mV (SCE) and the cathodic process is characteristic of a catalytic reaction. Oxygen presents a predominate effect on the cathodic process. Based on the electrochemical investigation, the following mechanism of leaching gold with ammoniacal thiosulphate has been proposed. Ammonia reacts primarily with gold ions on th anodic surface of gold and the formed A (NH3)2+ rea~s then with S2O 3 in solution to form the stabler Au(S203) 2 . Cu (NHS) 4 gains electrons on the cathodic surface and is reduced to CU(N) ? which is then oxidised by oxygen and regenerated into Cu(NH3) 4 after entering the solution.

Jan 1, 1993

By H Han, X Wang, T Li, D Duan

"In this paper, the reduction and separation behaviour of iron and slag in carbon composite iron ore pellets has been investigated experimentally using an electric resistance furnace simulating a rotary hearth furnace process. The factors that affect the formation of iron nuggets, such as temperature, holding time, molecular ratio of C/O and basicity, are discussed. Results show that the reduction of iron ore, carburisation of reduced iron and the composition and quantity of slag are very important for producing iron nuggets. Through optimisation of process parameters, iron nuggets can be formed below 1300¦C when holding time is 20 minutes, C/O is 0.7 and basicity less than 0.5. This study provides a theoretical and technical basis for iron nugget production.CITATION:Duan, D, Han, H, Wang, X and Li, T, 2013. Iron nugget production technology in rotary hearth furnace process at lower temperature, in Proceedings Iron Ore 2013, pp 363-368 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

I wish that in addition to being a Pro- fessional Engineer I was also a communications expert. My principal task this morning, and yours after this meeting, is to convince a wide variety of individuals that steel industry slags are a high quality material that can be used for many purposes; and that their use can significantly alleviate some of the problems facing engineers, public officials, and the general public in our countries. By actual in- place performance over a long period of time steel industry blast furnace slags have proven that they are as good as the best natural aggregates, and better than some, for any type of construction or purpose for which natural aggregates are used. Steel furnace slags have many unique favorable characteristics and prop- erties when compared to other types of aggre- gate even though they cannot be used for all types of construction. We have the facts, all we have to do is present them to the right people in the proper manner.

Jan 1, 1979

By Bell MG

At various decision points in the development of a project, a developer, joint venture partner or financial institution may require an independent review of the basic assumptions and technical aspects of the project. This type of review or technical audit is becoming a more common feature of the project development process. This feature has evolved because of the need of investors and lenders to be more confident of the viability of a project by the confirmation of its technical and cost aspects. Technical Audits offset some uncertainties introduced by the combination of longer development periods for, projects and the highly dynamic world economic scene. This paper reviews the place, nature and process of the technical audit by examining the circumstances when it might be needed, the typical scope of work or brief, the responsibilities of and relationship between the auditor and the client, and the auditing procedure. Detailed aspects of technical audits are discussed followed by a case study of the Hail Creek Coal Project Audit.

Jan 1, 1983

In this paper, a subtle, but important, difference has been drawn between responsibility and mandate. Responsibility has a connotation of financial involvement assigned to an organ- isation as a result of some action it takes, the ramifications of which can be ascribed directly to the organisation. In contrast mandate relates to the power and authority to act. The paper outlines the role of poli- ticians as community decision-makers and the need for Government policy to be flexible in an advanced industrial society so that decision- making options are kept open for as long as necessary. Further, broad community objectives need to be understood and defined so that plans and policies can be consistent. Co-ordination through communication at all levels, especially at the public administration interfaces and with the private sector,is essential for effective resource allocation and efficient implementation. The paper discusses several aspects of the infrastructure responsibility question and some considerations which might be viewed as important by the community decision-makers in considering what responsibility the "community" should accept in providing infrastructure.

Jan 1, 1974