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By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By S Russell

The completion of the $1.1 B Cape Lambert Upgrade project is the second ‘pillar’ in Rio Tinto Iron Ore’s expansion program that has enabled Rio Tinto Iron Ore to effectively double iron ore shipping capacity from the Pilbara between 2003 and 2009 to 220 million tonnes per annum (Mt/a), following the successful completion of the Dampier Port upgrade project two years earlier.The Cape Lambert Upgrade has built on and enhanced many of the engineering achievements of the Dampier Port upgrade project, as well as developing innovative and unique engineering solutions for this complex ‘brownfields’ project that presented its own challenges, particularly in this distinctive open-water port environment.The project was implemented in two phases to achieve an increase in port shipping capacity from 55 to 80 Mt/a – an enhancement phase and an expansion phase.The initial enhancement phase, which provided an increase to shipping capacity from 55 to 60 Mt/a, focused on increasing the utilisation and effi ciency of existing plant and equipment with a relatively small capital expenditure.The expansion phase, which provided the increase in shipping capacity to 80 Mt/a, included extending the existing iron ore wharf by 256 m to create four shipping berths, a new shiploader, an expanded stockyard (including a new fourth bucket wheel reclaimer) and a new surge bin facility to maximise outloading tonnage rates.The Cape Lambert Upgrade project was implemented whilst the port remained fully operational and continued to ship record tonnages of iron ore throughout the project duration. This achievement required signifi cant upfront planning and sequencing of construction activities to support the operation of the port. Innovative design and construction techniques were used to mitigate the impact and enable construction activities in and around the operating plant.Throughout the project, new benchmarks in engineering design and construction practices were established, which have since been adopted for new iron ore port facilities currently in planning phases.

Jul 11, 2011

By A Mooney, J Marsden, H Grosser, G Dunstan

Carrapateena is a copper-gold deposit hosted in a brecciated granite complex, located 500km North of Adelaide, South Australia. The deposit is being mined using the Sub Level Caving (SLC) Mining method at a rate of 4.25 MTPA. The Carrapateena SLC construction was completed in Q4 2019, with ramp up to a mine production rate of 4.25 MTPA completed within 12 months; ~ 6 months earlier than originally planned (OZ Minerals, 2020b). Traditional SLC designs have had issues with safety interactions on production levels, namely at the perimeter drive, as well as presented challenges for the application of automation due to frequency of activity required to achieve ring turnover rates. Safety in design provides an opportunity to learn from experience at recent modern SLC operations and by considering hazards early in the design process minimise exposure and improve safety, productivity and automation of mining activity. This paper discusses the work carried out during the Carrapateena feasibility study and optimised during project execution; to update the SLC production level mine design, with a layout known as the Carrapateena Crows Foot Level Layout. This paper focuses on: • An introduction to the Carrapateena Operation and mine plan. • An overview and historical challenges of traditional level layout. • An introduction to the Carrapateena Crows Foot level layout, including production level design parameters as well as development metres and productivity comparisons. • Outlines the benefits of the Crows Foot design for safety in design of SLC operations. Provides a roadmap for improved production efficiency, level operational philosophy and the application of automation within the SLC.

Mar 15, 2021

By É Lèbre, G Corder

The circular economy concept, as defined by the Ellen MacArthur Foundation (2015) and quoted by the recent International Council on Mining and Metals (ICMM) Guide to Responsible Sourcing, calls for shifting industrial systems from a linear take-make-waste model to a circular model (ICMM, 2015). In this model products are designed to optimise product and material recovery and reuse, and by-products of one system are used as inputs into other product systems. While the mining industry to date has made a limited contribution to the circular economy, the current market conditions, which are prompting calls for greater innovation, make the timing right for the industry to boost its contribution by utilising and generating value from mining waste, or making it available as a feedstock from which other industries can harness value.The first part of this extended abstract discusses the way the circular economy concept can be adapted to metal mining activities, contributing to a more sustainable resource extraction at the mine site level. The second part of this extended abstract presents a circular economy based framework revolving around non-renewable resources conservation. The third and final part examines the application of the framework to the Mount Morgan mine in Central Queensland.CITATION:Lèbre, É and Corder, G, 2016. Utilising mineralised mining waste – contributions to the circular economy, in Proceedings Life-of-Mine 2016 Conference, pp 132–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By I Gray

While in some cases it is vitally important to measure the virgin stress in rock prior to tunnelling there are a number of cases where such stress measurement is really not required. The concept of having to have a number to put in a numerical model representing a continuum is often quite inappropriate. This paper discusses the cases when virgin stress measurement is required and the most appropriate means to measure it. The techniques discussed cover all of the overcoring systems, hydrofracture and borehole breakout measurements. It also covers the use of rock surface stress measurement, which is easy to perform and should be used to check for changing stress conditions. Unfortunately this technique has been ignored in recent times because engineers are addicted to numerical models requiring far field stresses rather than measuring the real values that exist where they matter – at the tunnel wall. A case is presented in which the measurement of surface stress in a tunnel boring machine tunnel enabled the far field stress to be determined in what must be the world’s largest overcore.CITATION:Gray, I, 2014. The measurement of rock stress for tunnelling, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 153–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By E Amini, N Beaton

Application of ore pre-treatment technologies such as Grade Engineering and in-pit ore treatment require comprehensive analysis to show proven value is being generated by switching away from the current practices. Considering most mining operations last several decades; the pre-treatment technologies must be investigated over life of mine (LOM) to truly show value was generated or lost. Therefore, a value chain flowsheet model has been usually developed to run those analysis/simulations over LOM using a set of defined ore characteristics and the operating equipment capacities. The Integrated Extraction Simulator (IES) has been used for this type of LOM simulations as it has the necessary flexibility to accommodate the whole mining value chain flowsheet in one platform and provide essential computation power to run mass simulations for the given scenarios using the resource block model. This allows to forecast the value chain response over the LOM for all given scenarios in a feasible amount of time. The traditionally developed flowsheets for the analysis/simulations are usually limited to the mineral processing plant and were developed based on a single audit conducted on the plant in a very short time, e.g. several hours. The process plant is being operated with a certain ore at a certain condition during the short audits which would not reveal the true capacity of the operation equipment when ore characteristics changes. Therefore, it would be impossible to define the true capacity of the equipment and identify the constraints along the value chain. In this study, a methodology was developed to identify the constraints along the value chain and implement those in the IES flowsheet using process information. Also, the equipment models were fine-tuned to represent the true capacity of the equipment in the flowsheet using the same data set. The methodology was tested over five process plant in two operations and showed the performance forecast was significantly improved over the traditional methods being used so far. Then those high-fidelity flowsheets were used to evaluate the ore pre-treatment technologies proposed by the relevant resource company experts.

Nov 10, 2020

By Forrester P. I, Richardson W

Methane in coal mines is an ever present hazard resulting in loss of lives and serious economic consequences. For effective control of methane, ventilation alone may not be totally adequate in some situations. In order to deal with such cases, new methods for the control of methane are being researched. One such method based on biotechnology has been investigated in Canada in the past several years. This method involves bringing methane oxidizing micro- organisms into contact with coal to oxidize the methane released to non-flammable products.

Jan 1, 1988

By S Q. Liu, E Kozan

This paper proposes a new multiresource multistage scheduling problem for optimising the open pit drilling, blasting and excavating operations under equipment capacity constraints. The flow process is analysed based on the real-life data from an Australian iron ore mine site. The objective of the model is to maximise the throughput and minimise the total idle times of equipment at each stage. The following comprehensive mining attributes and constraints have been considered: types of equipment; operating capacities of equipment; ready times of equipment; speeds of equipment; block-sequence-dependent movement times of equipment; equipment-assignment-dependent operation times of blocks; distances between each pair of blocks; due windows of blocks; material properties of blocks; swell factors of blocks; and slope requirements of blocks. It is formulated by mixed integer programming and solved by ILOG-CPLEX optimiser. The proposed model is validated with extensive computational experiments to improve mine production efficiency at the operational level. The model also provides an intelligent decision support tool to account for the availability and usage of equipment units for drilling, blasting and excavating stages.CITATION:Kozan, E and Liu, S Q, 2014. An Open pit multistage mine production scheduling model for drilling, blasting and excavating operations, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 329–334 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By I Sucholutsky, D M. First, D Mogilny, F Yusufali

Machine learning is creating value in all facets of the mining industry, from exploration to production. The authors provide an accessible, high-level introduction to artificial intelligence (AI), machine learning (ML), and deep learning (DL); the latter being widely recognised as one of the most powerful forms of ML. In particular, the authors will introduce deep learning models known as convolutional neural networks (CNNs), how they are applied, and the economic considerations necessary for determining when DL may be the right solution to de-risking complex block modelling problems. The authors present preliminary results from the mineral resource modelling study of the Jundee orogenic gold deposit, Yandal belt/gold province, Western Australia. The primary goal was to identify the direction and location of the narrow gold veins more accurately and demonstrate how non-linearly correlated elements are used as direct inputs to the resource model to assist with the target element’s grade prediction. This demonstrates that: (1) existing techniques for finding correlations between assayed elements do not adequately reflect the complex geology of the asset, (2) nonlinear correlations that are difficult to model as simple mathematical functions are representative of geological patterns in a deposit, and (3) non-linearly correlated assayed data, fed as inputs, increase the performance of the resource model as reconciled through blind tests. To conclude, the authors hypothesise that the patterns represented by the DL block models may be revealing the results of overprinting geological processes that generated mineral deposits. For example, the primary hydrothermal processes that deposited metals created depositional patterns that become particularly complex as a result of being overprinted, in part or in whole, by secondary physicochemical processes. This may explain why non-linear geochemical relationships have the capacity to generate more accurate block models of mineral deposits.

May 24, 2023

By D Kepert, C Simpson, D Edwards

Channel iron deposits (CID) currently supply over 40 per cent of the seaborne iron ore trade out of the Hamersley Province. The two well documented producing systems (Robe and Marillana palaeochannels) were both discovered during early reconnaissance mapping principally by BHP Billiton (BHPB) and Geological Survey of Western Australia (GSWA) during the mid 1950s to early 1960s. Both crop out extensively over the majority of their length. Hot on the heels of Fortescue Metals Group 2004 - 2005 discovery of approximately 2.6 billion tonnes (Bt) of undercover iron ore mineralisation in the Chichester Range, the Fortescue Exploration Department turned its attention elsewhere throughout the Hamersley Province. Reappraisal and analysis of publicly available data and ground truthing of developing models led to the recognition of the Solomon palaeochannel system. Subsequent exploration defined a world-class Resource of some 1.9 Bt of iron ore mineralisation of which the great majority is buried CID. Apart from the Marillana CID system, the Solomon region is the only major CID with significant tonnes of sub two per cent alumina CID with over 500 Mt delineated to date. Exploration has also outlined significant supergene bedded and detrital iron ore mineralisation. Ongoing drilling is expected to increase the resource base both in terms of tonnes and confidence. This paper outlines the principal contributing factors which led to the discovery of the Solomon CID and compares its geology with the Robe and Marillana palaeochannel systems.

Jan 1, 2009

By T N. Little

The aim of any rock breaking activity is to achieve success by developing designs that are blasting objective-specific and geology-specific, and then implementing such designs. This paper targets mining geologists with the aim of extending their knowledge of the rock fragmentation processes and providing insights to the significant relationships between geology and blasting. There are two main relationships, and if mining geologists appreciate both these relationships, then they can play a key role in optimising production. The business risk continuum is introduced to support this understanding. The first relationship is between geology and potential blasting hazards, and the operational complexity required to manage those risks. The risks associated with eight different ground types are discussed in terms of ground conditions, hazards and controls. These types are: reactive ground, hot ground, geothermal ground, fibrous ground, cavernous ground, combustible ground, pyritic ground and conductive ground.The second relationship is between the bench geology and blasting results. The blasting results discussed include: muckpile characteristics, remaining rock faces and blasting emissions. In this regard, some detailed insights and graphical examples are given for the influence of geology on blasting emissions, in particular, vibration, airblast and flyrock.A detailed description of the geological materials themselves can convey much useful information for blasting operators provided they are able to utilise this knowledge. Geologists are ideally suited to provide this description more effectively if they are familiar with the blasting process and the rock mass properties that influence blasting hazards and blasting results. It is also important to have clear statements of blasting objectives and associated operational targets, and this will maximise the likelihood of achieving the desired outcomes. The main aim of the paper is to highlight that geology is currently not fully utilised in the blasting process. In this regard, geologists are often not entirely aware of the blasting process and how they can contribute. The two significant relationships discussed above are integral parts of this process, and thus they are discussed as separate issues in the main body of this investigation.

Aug 22, 2011

By A Keogh, P Allen, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Private equity (PE) firms are comparatively free of mandatory requirements for the level and scope of due diligence applied prior to making investment decisions in minerals projects when compared to listed entities, sovereign funds or financial institutions adopting the Equator Principles (Equator Principles Association, 2013). While this freedom allows for flexibility, agility and innovation in making investment decisions, it can also expose PE firms to material risks that may impact their ability to successfully list the projects or attract later financing.Financial institutions and investors with mandatory due diligence and disclosure standards may refrain from investment in or acquisition of a project if it fails to meet various performance requirements. There are many high-profile projects that have suffered significant write-downs on book value after acquisition because specific non-mining issues were not adequately assessed. Thus, a PE firm may be left with an asset that is difficult to divest and incapable of securing development finance.PE firms can manage this risk by being aware of the growth trend in the adoption of ‘international standards’ in addition to host nation standards and legislative requirements. This paper outlines key issues for PE firms to address to maximise the chances of obtaining funding or successfully taking an exploration or mining project through to listing or divestment. Two steps are required: identification of gaps in performance and priority matters of interest to financial institutions and development of action plans to ensure that the priority requirements are met or capable of being met.A PE firm can set its project for success by understanding the social and environmental performance requirements of international standard financiers and by setting the project on the right path to meeting these requirements, and thus making it an attractive investment.CITATION:Allen, P, Stoker, P and Keogh, A, 2015. Setting for success – private equity exploration and mining project buy-in to listing and divestment , in Proceedings PACRIM 2015 Congress, pp 93–100 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By M Robertson

3D photogrammetry is a powerful tool for data capture and interpretation, utilised at all Australian underground MMG sites. In personnel constrained mines, 3D photogrammetry can free up personnel time, improve data quality for resource modelling, as well as benefit other mining departments.At Rosebery one of the challenges faced by geologists was no longer data capture but, rather, avoiding paralysis by analysis from the sheer abundance of information currently available to the department. Although the data had been interpreted, the structural model was cluttered; the geological block model was not incorporating any geological domains captured by 3D photogrammetry, nor was it being utilised by other departments such as geotechnical engineering.The geology department is now focusing on utilising all the interpreted data gained from each photograph heading into an uncluttered, easily understandable model for geologists and other mining departments.Our solutions involve integrating the Leapfrog modelling suite into the process, streamlining the structural model, tailoring the data interpretations for future updates of the block model and training other departments to improve utilisation of the interpreted data. This process also uncovered other benefits for near-mine exploration, and improving our understanding of the deposit’s origin.CITATION:Robertson, M, 2017. The practical use of underground 3D photogrammetry data at MMG Rosebery polymetallic mine, Tasmania, Australia, in Proceedings Tenth International Mining Geology Conference 2017, pp 409–412 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By B Mohanty, D Zwaan

Systematic near-field vibration monitoring of stope blasts was carried out in a large, deep underground mine. A total of 31 production blasts were studied in order to investigate the effectiveness of existing blast designs. This involved the vertical retreat mining method, which requires drilling a raise bore or blasting a slot raise (typically 1.22 m in diameter) using large diameter boreholes (165 mm). The diagnostic technique employed multistation near-field monitoring of blasts with high-g (100 g) and high-frequency (>10 kHz) triaxial accelerometers. The amplitude of the vibrations is correlated with the strain energy transmitted from each explosive deck. The results showed that more than 30 per cent of the explosive decks contributed little energy to the rock breakage process in these blasts, and an equal number contributed only inadequately. These findings are indicative of serious blast malfunctions. The problems can be traced to inadequate deck blast design and possibly to drill hole deviation. The various causes for such malfunctions are discussed and remedial measures suggested.CITATION:Mohanty, B and Zwaan, D, 2015. Assessment of underground production blast designs and blasting performance, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 607–616 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

Jan 1, 2004

By J Planner

As Australia’s coal and iron ore export volumes increase to meet international market growth, port terminals, mining operations and rail transport systems can be the source of increased dust emission. Current and future sustainable expansion must minimise dust emission from bulk handling and transport operations located in close proximity to residential areas. Lower level dust emissions can be controlled by operational measures such as water addition to products, and use of water spray on stockpile surfaces. Recent research has shown that higher levels of dust emission can be more effectively controlled by understanding and treating the dust characteristics of each individual bulk product. Application of this research, progressively being applied at Australia’s coal and iron ore port terminals and rail transport systems, is achieving compliance with health standards and minimising dust nuisance effects to an acceptable level.

Nov 22, 2011

By I Auranen, J Raatikainen

IMA Engineering (IMA) and Mine On-Line Service (MOLS) companies have used on-line sensors for analysing ore and waste rock in mining for more than 25 years. Today IMA on-line sensors are used in various stages of the mining process including on-line analysis of drill cores, drill chips, ore and waste in loader bucket, ROM ore analysis on belt conveyor belt and in bulk ore sorting and in slurry analysis in concentrators. During years of extensive field experience and testing we have found that the waste rock dilution and ore losses create much larger economic and environmental losses than has been previously recognized. According to our studies the main reason is limited number of analysis already in exploration when drill cores or drill cuttings are used in block modelling. The same happens in production because too few and biased samples from benches are used to estimate the ore grade. Much more than today estimated amount of waste enters the mill and considerable volumes of ore losses happen at the same time. The ore grade on the benches and in muck piles is averaged and “homogenized” with averaged and biased samples. These are the main root causes of waste rock dilution and ore losses. Sensor based preconcentration can be the remedy to waste rock dilution and ore losses. This presentation will show examples of the use of on-line sensors in preconcentration when analysing ore and waste rock in drill cores, drill cuttings, on conveyor belt and in bulk ore sorting. Waste rock removal in preconcentration has direct effect on energy consumption in crushing and grinding and chemicals in concentrator. In concentrator waste is separated and goes to tailings pond, however, preconcentration directly reduces the volume of the tailings. In our presentation we will cover cases in base metals and in gold mines.

Nov 10, 2020

By A Marta

Geomembrane (GMB) liners are being used more frequently for the storage or capping of mine waste due to stricter regulatory requirements relating to environmental protection. The longevity of any liner system will be a function of environmental conditions, design (including materials selection), construction and condition monitoring during operations or closure. Based on experience and case studies, this paper presents a review, from design to handover, of some of the smaller and often overlooked details that can have significant impacts on the performance of the GMB and the project overall.The topics covered will include approaches to selecting and testing GMBs to ensure they are suitable. Design considerations to aid installation and quality assurance during construction. Understanding action leakage rates and the consequences of leakage when it creates whales. Construction quality control and assurance procedures, including a brief discussion on non-destructive liner integrity testing. CITATION:Marta, A, 2018. Geomembranes – from design to handover and some of the lessons learnt, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 190–207 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By P Minkkinen, J Lohilahti, T Korpela, B McPherson

Concentrator plants intake the ore from the mine and produce concentrates by extracting valuable minerals in a succession of process steps. Controlling the extraction process and detecting changes in the process requires updated information on a minute basis. Moreover, due to economical reasons, one must also collect metallurgical samples on a daily basis for monthly reporting.In this paper, we present how slurry samplers were installed in a Cu-Ni flotation plant to accomplish the aforementioned tasks. An on-stream elemental analyser at the plant is used for flotation process control by taking samples from selected process streams. Two process streams, the flotation feed and tail, are also equipped with metallurgical samplers. The metallurgical samplers were designed to have low head loss, be robust and easy to maintain and to collect slurry samples in a reliable way for the metallurgical accounting.Samples were collected by different sampler types and we discuss the uncertainty arising from sampling in the assays. Variographic analysis was carried out on the process data in order to find periodic components in the process, and estimate the correct number of shift sample increments and measurement error components. The metallurgical samplers were proven to be reliable devices with zero downtime and no sanding issues in the main process flows. In addition, we show that the tail measurement is the most important one for the plant recovery calculation, which emphasises the importance of the sampling accuracy in the tail stream.CITATION:Lohilahti, J, Korpela, T, Minkkinen, P and McPherson, B, 2014. Analysis of slurry sampling arrangements at a froth flotation plant, in Proceedings Sampling 2014 , pp 91–98 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By E Kabwe, M Karakus

Deep hard rock underground mines tend to experience high stress as such drives exhibit dynamic responses attributed to a rock burst variant (strainburst). This dynamic behaviour is difficult to predict, and every effort is made to devise the appropriate dynamic support system for its associated failure restraint. This paper outlines the back analysis and the support scheme design for an underground decline that exhibited damage from a dynamic strainburst occurrence. It employs a decline section that experienced a dynamically loaded strainburst that initiated rock fragment ejections. The procedure involves a preliminary structural analysis, a seismic intensity measure, and a rock mass simulation to determine the static stress concentration and ground support system response. The numerical simulation is conducted in FLAC3D which employs the advanced strain-softening IMASS constitutive model governed by two Hoek–Brown (HB) bounding yield surfaces. To account for the post-peak brittleness response associated with strainburst the plastic strain multiplier () is adjusted to 0.0 < < 1.0. The back-analysis shows that the occurrence was initiated by a low-intensity seismic wave that superimposed an extra stress component to the initial static stress which triggered rock fragment ejections. Additionally, the appropriate support scheme comprised of Weldmesh, Fibrecrete, static (split set) and yieldable (Kinloc) reinforcements is recommended and implemented. Thereafter, the bolt’s efficiency is evaluated based on the axial force and elongation capacities and then compared with the published bolt performance data. The evaluation results show that the maximum bolt axial force (0.1 per cent) and elongation (0.006 per cent) are below the designed capacity and rupture strain.

Nov 29, 2022